SunTrust 2006 Annual Report Download - page 115

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
computations of diluted EPS because they would have been antidilutive. A reconciliation of the
difference between average basic common shares outstanding and average diluted common shares
outstanding for the twelve months ended December 31, 2006, 2005, and 2004 is included in the
following table:
(In thousands, except per share data)
Twelve Months Ended December 31
2006 2005 2004
Diluted
Net income $2,117,471 $1,987,239 $1,572,901
Preferred stock dividends 7,729 --
Net income available to common shareholders $2,109,742 $1,987,239 $1,572,901
Average basic common shares 359,413 359,066 299,375
Effect of dilutive securities:
Stock options 2,261 2,723 2,154
Performance and restricted stock 1,128 1,665 1,780
Average diluted common shares 362,802 363,454 303,309
Earnings per average common share - diluted $5.82 $5.47 $5.19
Basic
Net income $2,117,471 $1,987,239 $1,572,901
Preferred stock dividends 7,729 --
Net income available to common shareholders $2,109,742 $1,987,239 $1,572,901
Average basic common shares 359,413 359,066 299,375
Earnings per average common share - basic $5.87 $5.53 $5.25
Note 14 - Capital
The Company is subject to various regulatory capital requirements which involve quantitative measures
of the Company’s assets.
(Dollars in millions)
2006 2005
Amount Ratio Amount Ratio
SunTrust Banks, Inc.
Tier 1 capital $12,525 7.72% $11,080 7.01%
Total capital 18,025 11.11 16,714 10.57
Tier 1 leverage 7.23 6.65
SunTrust Bank
Tier 1 capital 12,832 7.97 11,715 7.49
Total capital 17,454 10.85 16,483 10.54
Tier 1 leverage 7.35 7.04
Substantially all of the Company’s retained earnings are undistributed earnings of the Bank, which are
restricted by various regulations administered by federal and state bank regulatory authorities. Retained
earnings of the Bank available for payment of cash dividends to the Bank Parent Company under these
regulations totaled approximately $1.8 billion and $854 million at December 31, 2006 and 2005,
respectively. The Company also has amounts of cash reserves required by the Federal Reserve. As of
December 31, 2006 and 2005, these reserve requirements totaled $901.2 million and $863.6 million,
respectively.
102