UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________

 

Form 8-K

Current Report

______________

 

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

January 21, 2016

Date of Report (Date of earliest event reported)

 

 

BB&T Corporation

(Exact name of registrant as specified in its charter)

 

Commission file number : 1-10853

______________

 

North Carolina 56-0939887
(State of incorporation) (I.R.S. Employer Identification No.)

 

 

200 West Second Street  
Winston-Salem, North Carolina 27101
(Address of principal executive offices) (Zip Code)

 

(336) 733-2000

(Registrant's telephone number, including area code)

______________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

ITEM 2.02 Results of Operations and Financial Condition

 

On January 21, 2016, BB&T Corporation issued a press release reporting fourth quarter 2015 results and posted on its website its fourth quarter 2015 Earnings Release, Quarterly Performance Summary and Earnings Release Presentation. The release contains forward-looking statements regarding BB&T and includes a cautionary statement identifying important factors that could cause actual results to differ materially from those anticipated. The Earnings Release, Quarterly Performance Summary and Earnings Release Presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively.

 

 

ITEM 9.01 Financial Statements and Exhibits
   
Exhibit No. Description of Exhibit
   
99.1 BB&T Corporation's Earnings Release issued January 21, 2016.
   
99.2 BB&T Corporation's Quarterly Performance Summary issued January 21, 2016.
   
99.3 BB&T Corporation's Earnings Release Presentation issued January 21, 2016.

 

 
 

 

S I G N A T U R E

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  BB&T CORPORATION
  (Registrant)
   
  By: /s/ Cynthia B. Powell
   
  Cynthia B. Powell
  Executive Vice President and Corporate Controller
  (Principal Accounting Officer)

 

Date: January 21, 2016

 

 

 



Exhibit 99.1

January 21, 2016

 

FOR IMMEDIATE RELEASE

 

Contacts:      
ANALYSTS    MEDIA
Alan Greer  Tamera Gjesdal  Cynthia A. Williams
Executive Vice President  Senior Vice President  Senior Executive Vice President
Investor Relations  Investor Relations  Corporate Communications
(336) 733-3021  (336) 733-3058  (336) 733-1470

 

 

BB&T reports revenue up 6.9% following acquisitions

Diluted EPS of $0.64 ($0.68 adjusted)

 

WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) today reported quarterly earnings for the fourth quarter of 2015. Net income available to common shareholders was $502 million, or $0.64 per diluted common share for the fourth quarter of 2015. Excluding merger-related and restructuring charges, net income available to common shareholders was $535 million, or $0.68 per diluted share.

 

Net income available to common shareholders was $492 million ($0.64 per diluted share) and $551 million ($0.75 per diluted share) for the third quarter of 2015 and fourth quarter of 2014, respectively.

 

“We are pleased to report solid results for the quarter, driven by strong net interest income following our acquisition of Susquehanna Bancshares during the third quarter,” said Chairman and Chief Executive Officer Kelly S. King. “Our fee income remained steady and our net interest income was up more than 12% from the fourth quarter of last year.

 

“Revenues were $2.6 billion, up $164 million compared to the fourth quarter of 2014, reflecting our strategic acquisitions during the year. Revenues for the year were $9.8 billion, up 4% over 2014, led by record fee income of $4.0 billion,” said King. “With a strong balance sheet and cost reductions from acquisitions, I am looking forward to our continued success during 2016.

 

“After the successful conversion of Susquehanna’s systems in the fourth quarter, we were pleased to receive approval from our federal and state banking regulators for our acquisition of National Penn, which is expected to close April 1st and significantly expand our presence in the mid-Atlantic region,” said King.

 

- 1 - 
 

Fourth Quarter 2015 Performance Highlights

 

·Taxable equivalent revenues were $2.6 billion for the fourth quarter, up $68 million from the third quarter of 2015
oNet interest income was up $41 million, primarily driven by a full quarter of Susquehanna activity
oNet interest margin was 3.35%, flat compared to the prior quarter
oNoninterest income was up $27 million primarily due to insurance income
oFee income ratio was 41.8%, compared to 42.1% for the prior quarter

 

·Noninterest expense was $1.6 billion, essentially flat compared to the third quarter
oPersonnel expense and occupancy and equipment expense increased primarily due to the full quarter impact of Susquehanna’s operations
oMerger-related and restructuring charges were $27 million lower as Susquehanna related charges declined
oThe adjusted efficiency ratio was 58.8%, down from 59.2% in the prior quarter

 

·Average loans and leases held for investment increased $4.3 billion compared to the third quarter of 2015; annualized growth of approximately 2.0% excluding acquisitions
oAverage C&I loans increased 13.5% annualized; or 7.8% excluding acquisitions
oAverage direct retail loans increased 38.8% annualized; or 11.2% excluding acquisitions
oAverage other lending subsidiaries loans increased 13.7% annualized; or 7.3% excluding acquisitions

 

·Average deposits increased $4.7 billion compared to the prior quarter
oAverage noninterest-bearing deposits increased an annualized 15.0%; or 7.5% excluding acquisitions
oAverage interest-bearing deposit costs were 0.24%, flat compared to the prior quarter
oDeposit mix remained strong, with average noninterest-bearing deposits representing 30.9% of total deposits, compared to 30.7% in the prior quarter

 

·Asset quality remained strong
oNonperforming assets decreased $32 million during the quarter
oLoans 90 days or more past due and still accruing were 0.23% of loans held for investment, compared to 0.28% in the prior quarter
oLoans 30-89 days past due and still accruing were 0.76% of loans held for investment, compared to 0.67% in the prior quarter
oThe allowance for loan and lease losses was 1.07% of loans held for investment, compared to 1.08% in the prior quarter
oThe allowance for loan loss coverage ratio was 2.53 times nonperforming loans held for investment, versus 2.49 times in the prior quarter

 

- 2 - 
 
·Capital levels remained strong across the board
oCommon equity tier 1 to risk-weighted assets was 10.2%, or 10.0% on a fully phased-in basis
oTier 1 risk-based capital was 11.8%
oTotal capital was 14.2%
oLeverage capital was 9.8%
oTangible common equity to tangible assets was 7.7%

 

EARNINGS HIGHLIGHTS                   Change   Change
(dollars in millions, except per share data) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
      2015   2015   2014 (2)   Q3 15   Q4 14
Net income available to common shareholders $  502    $  492    $  551    $  10    $  (49)
Diluted earnings per common share    0.64       0.64       0.75       ―         (0.11)
                                 
Net interest income - taxable equivalent $  1,542    $  1,501    $  1,371    $  41    $  171 
Noninterest income    1,015       988       1,022       27       (7)
  Total revenue $  2,557    $  2,489    $  2,393    $  68    $  164 
                                 
Return on average assets (%)    1.03       1.04       1.28       (0.01)      (0.25)
Return on average risk-weighted assets (%)    1.29       1.32       1.68       (0.03)      (0.39)
Return on average common shareholders' equity (%)    8.06       8.14       9.99       (0.08)      (1.93)
Return on average tangible common shareholders'                            
  equity (1) (%)    13.37       13.23       15.45       0.14       (2.08)
Net interest margin - taxable equivalent (%)    3.35       3.35       3.36       ―         (0.01)
Efficiency ratio (1) (%)    58.8       59.2       55.6       (0.4)      3.2 

 

(1)Excludes certain items as detailed in the non-GAAP reconciliations in the Quarterly Performance Summary.
(2)Applicable Q4 2014 amounts were revised as a result of the January 1, 2015 adoption of new guidance related to the accounting for investments in qualified affordable housing projects.

 

Fourth Quarter 2015 compared to Third Quarter 2015

 

Total revenues were $2.6 billion for the fourth quarter of 2015, an increase of $68 million compared to the prior quarter, which reflects an increase in taxable-equivalent net interest income of $41 million and an increase in noninterest income of $27 million.

 

The net interest margin was 3.35% for the fourth quarter, flat compared to the prior quarter. Average earning assets increased $4.7 billion and average interest-bearing liabilities increased $3.0 billion, which primarily reflect the inclusion of Susquehanna’s operations for a full quarter.

 

The annualized yield on the total loan portfolio for the fourth quarter was 4.31%, flat compared to the prior quarter. The annualized fully taxable-equivalent yield on the average securities portfolio for the fourth quarter was 2.30%, up three basis points compared to the prior quarter.

 

The average annualized cost of interest-bearing deposits was 0.24%, flat compared to the prior quarter. The average annualized rate paid on long-term debt was 2.11%, a decrease of one basis point compared to the prior quarter.

 

- 3 - 
 

 

Excluding acquired from FDIC and purchased credit impaired (“PCI”) loans, the provision for credit losses was $128 million and net charge-offs were $130 million for the fourth quarter, compared to $100 million and $107 million, respectively, for the prior quarter. The current quarter included net charge-offs of $7 million related to the sale of approximately $50 million of nonperforming residential mortgage loans.

 

Noninterest income increased $27 million, primarily driven by higher insurance income and other income, partially offset by lower investment banking and brokerage fees and commissions.

 

Noninterest expense was $1.6 billion for the fourth quarter, essentially flat compared to the prior quarter. Higher personnel expense, occupancy and equipment expense and other expense were partially offset by lower merger-related and restructuring charges and lower professional services.

 

The provision for income taxes was $251 million for the fourth quarter, compared to $222 million for the prior quarter. This produced an effective tax rate for the fourth quarter of 31.7%, compared to 29.4% for the prior quarter. The increase is primarily attributable to a reduction in federal tax credits and higher pre-tax income.

 

Fourth Quarter 2015 compared to Fourth Quarter 2014

 

Total revenues were $2.6 billion for the fourth quarter of 2015, up $164 million compared to the earlier quarter. This increase was driven by a $171 million increase in taxable-equivalent net interest income, largely the result of the Susquehanna and The Bank of Kentucky acquisitions.

 

Net interest margin was 3.35%, compared to 3.36% for the earlier quarter. Average earning assets increased $20.6 billion, or 12.7%, while average interest-bearing liabilities increased $13.3 billion, or 11.4%, both of which were primarily driven by the Susquehanna and The Bank of Kentucky acquisitions. The annualized yield on the total loan portfolio for the fourth quarter was 4.31%, an increase of two basis points compared to the earlier quarter, which primarily reflects the impact of the current year acquisitions, partially offset by runoff of loans acquired from the FDIC. The annualized fully taxable-equivalent yield on the average securities portfolio for the fourth quarter was 2.30%, compared to 2.45% for the earlier period. This decline reflects lower rates on mortgage-backed securities, runoff of securities acquired from the FDIC and larger holdings in U.S. Treasuries.

 

The average annualized cost of interest-bearing deposits was 0.24%, a decline of one basis point compared to the earlier quarter. The average annualized rate paid on long-term debt was 2.11%, compared to 2.22% for the earlier quarter. This decrease was primarily due to early extinguishments of higher cost FHLB advances.

 

- 4 - 
 

Excluding acquired from FDIC and PCI loans, the provision for credit losses was $128 million, compared to $84 million in the earlier quarter. The earlier quarter included a $24 million allowance release related to the sale of nonperforming mortgage loans, which also resulted in $4 million of net recoveries. Net charge-offs for the fourth quarter of 2015, excluding loans acquired from the FDIC and PCI, totaled $130 million, compared to $102 million for the earlier quarter.

 

The $7 million decrease in noninterest income was driven by lower insurance income, mortgage banking income and investment banking and brokerage fees and commissions, partially offset by improved FDIC loss share income and higher other income.

 

Noninterest expense was $1.6 billion for the fourth quarter of 2015, an increase of $203 million compared to the earlier quarter. This increase was primarily driven by the Susquehanna and The Bank of Kentucky acquisitions, which resulted in higher personnel expense, occupancy and equipment expense, merger-related and restructuring charges and other expense. These increases were partially offset by a decrease in loan-related expense.

 

The provision for income taxes was $251 million for the fourth quarter of 2015, compared to $277 million for the earlier quarter. This produced an effective tax rate for the fourth quarter of 2015 of 31.7%, compared to 31.5% for the earlier quarter.

 

NONINTEREST INCOME                   % Change   % Change
(dollars in millions) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
      2015   2015   2014   Q3 15   Q4 14
                        (annualized)      
Insurance income $  380    $  354    $  409       29.1       (7.1)
Service charges on deposits    165       167       160       (4.8)      3.1 
Mortgage banking income    104       111       128       (25.0)      (18.8)
Investment banking and brokerage fees and                            
  commissions    91       105       112       (52.9)      (18.8)
Trust and investment advisory revenues    64       63       56       6.3       14.3 
Bankcard fees and merchant discounts    56       57       52       (7.0)      7.7 
Checkcard fees    47       45       41       17.6       14.6 
Operating lease income    33       32       29       12.4       13.8 
Income from bank-owned life insurance    27       29       30       (27.4)      (10.0)
FDIC loss share income, net    (52)      (58)      (84)      (41.0)      (38.1)
Securities gains (losses), net    ―         (2)      ―        NM     NM
Other income (1)    100       85       89       70.0       12.4 
  Total noninterest income $  1,015    $  988    $  1,022       10.8       (0.7)
                                 
(1) The Q4 2014 amount was revised as a result of the January 1, 2015 adoption of new guidance related to the accounting for investments in qualified affordable housing projects.
NM - not meaningful.

 

- 5 - 
 

Fourth Quarter 2015 compared to Third Quarter 2015

 

Noninterest income was $1.0 billion for the fourth quarter, an increase of $27 million compared to the prior quarter. This increase was driven by higher insurance income and other income, partially offset by lower investment banking and brokerage fees and commissions.

 

Insurance income increased $26 million, primarily due to seasonality. Other income increased $15 million, primarily due to a $25 million increase in income related to assets for certain post-employment benefits, which is offset in personnel expense. The increase in other income also reflects a $12 million improvement in client derivative income. These increases were partially offset by a decrease of $20 million in partnership and other investment income, which was the result of an opportunistic sale that resulted in a $28 million gain in the prior quarter.

 

Investment banking and brokerage fees and commissions were $14 million lower due to higher capital markets activity in the prior quarter.

 

Fourth Quarter 2015 compared to Fourth Quarter 2014

 

Noninterest income for the fourth quarter of 2015 decreased $7 million compared to the earlier quarter. This decrease was driven by lower insurance income, mortgage banking income and investment banking and brokerage fees and commissions, partially offset by improved FDIC loss share income and an increase in other income.

 

Insurance income declined $29 million primarily due to the second quarter sale of American Coastal, which resulted in a $36 million reduction in revenue, partially offset by higher commission income in the property and casualty insurance business.

 

Mortgage banking income declined $24 million, driven by $11 million of lower mortgage servicing rights valuation adjustments and lower saleable loan volume.

 

Investment banking and brokerage fees and commissions declined $21 million, primarily due to higher capital markets activity occurring in the earlier quarter.

 

FDIC loss share income improved $32 million primarily due to lower loan accretion. Other income increased $11 million primarily due to higher income from client derivatives and higher income related to assets for certain post-employment benefits (which is offset in personnel expense), partially offset by lower partnerships and investment income.

 

- 6 - 
 

 

NONINTEREST EXPENSE                   % Change   % Change
(dollars in millions) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
    2015   2015   2014   Q3 15   Q4 14
                      (annualized)      
Personnel expense $  893    $  882    $  794       4.9       12.5 
Occupancy and equipment expense    192       183       168       19.5       14.3 
Software expense    52       50       45       15.9       15.6 
Loan-related expense    37       38       71       (10.4)      (47.9)
Outside IT services    41       35       27       68.0       51.9 
Professional services    29       42       38       (122.8)      (23.7)
Amortization of intangibles    32       29       22       41.0       45.5 
Regulatory charges    28       25       24       47.6       16.7 
Foreclosed property expense    11       15       10       (105.8)      10.0 
Merger-related and restructuring charges, net    50       77       18       (139.1)      177.8 
Other expense    232       218       177       25.5       31.1 
  Total noninterest expense $  1,597    $  1,594    $  1,394       0.7       14.6 
                               
NM - not meaningful.

 

Fourth Quarter 2015 compared to Third Quarter 2015

 

Noninterest expense was $1.6 billion for the fourth quarter, up $3 million compared to the prior quarter. This change was driven by increases in other expense and personnel expense, as well as smaller increases in various other categories, partially offset by lower merger-related and restructuring charges and a decrease in professional services.

 

Other expense increased $14 million primarily reflecting higher operating charge-offs, charitable contributions and travel.

 

Personnel expense increased $11 million, driven by $14 million of higher salary expense due to a full quarter of increased headcount resulting from the Susquehanna acquisition. The higher personnel expense also reflects a $25 million increase in certain post-employment benefits expense (offset in other income). These increases were partially offset by an $18 million improvement in employee medical and insurance benefits and a $12 million reduction in equity-based compensation due to the acceleration of expense for retirement eligible employees in the prior quarter.

 

Merger-related and restructuring charges declined by $27 million, primarily due to the impact of the Susquehanna acquisition in the prior quarter. Professional services declined $13 million due to lower volume.

 

Fourth Quarter 2015 compared to Fourth Quarter 2014

 

Noninterest expense for the fourth quarter of 2015 was $1.6 billion, an increase of $203 million compared to the fourth quarter of 2014. This increase reflects higher expense in a number of categories primarily resulting from acquisition activity, partially offset by a reduction in loan-related expense.

 

- 7 - 
 

 

Personnel expense increased $99 million, driven by a $72 million increase in salaries, which reflects an increase in FTEs of approximately 3,800 primarily resulting from the current year acquisitions. Employee benefits expense increased $35 million, primarily due to $19 million of higher pension expense due to changes in actuarial assumptions as well as $9 million of higher expense related to certain post-employment benefits (offset in other income). These increases in personnel expense were partially offset by a $13 million reduction in incentives.

 

Other expense increased $55 million primarily due to a $15 million franchise tax benefit recognized in the earlier quarter and increases in various categories of other expense including taxes and licenses, depreciation on assets subject to operating leases, outsourced services, marketing and advertising. These increases and other smaller increases were partially offset by a reduction in business referral fee expense primarily due to the sale of American Coastal.

 

Merger-related and restructuring charges increased $32 million, primarily due to the Susquehanna acquisition and expenses related to the planned acquisition of National Penn.

 

Outside IT services increased $14 million due to ongoing information system enhancement projects and initiatives. Occupancy and equipment expense and amortization of intangibles both increased as a result of the current year acquisitions.

 

Loan-related expense decreased $34 million largely due to a $27 million charge in the earlier quarter related to a review of mortgage lending processes.

 

LOANS AND LEASES - average balances     % Change   % Change
(dollars in millions) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
      2015   2015   2014   Q3 15   Q4 14
                        (annualized)    
Commercial and industrial $  48,047    $  46,462    $  40,383     13.5     19.0 
CRE - income producing properties    13,264       12,514       10,681     23.8     24.2 
CRE - construction and development    3,766       3,502       2,772     29.9     35.9 
Dealer floor plan    1,164       1,056       1,053     40.6     10.5 
Direct retail lending    10,896       9,926       8,085     38.8     34.8 
Sales finance    10,533       10,386       9,194     5.6     14.6 
Revolving credit    2,458       2,421       2,427     6.1     1.3 
Residential mortgage    30,334       30,384       31,046     (0.7)    (2.3)
Other lending subsidiaries    13,281       12,837       11,351     13.7     17.0 
Acquired from FDIC and PCI    1,070       1,052       1,309     6.8     (18.3)
  Total loans and leases held for investment $  134,813    $  130,540    $  118,301     13.0     14.0 

 

Average loans held for investment for the fourth quarter of 2015 were $134.8 billion, up $4.3 billion compared to the third quarter of 2015. Excluding acquisitions (which comprises Susquehanna, The Bank of Kentucky, both branch acquisitions in Texas and BankAtlantic), average loans held for investment were up approximately 2.0% on an annualized basis.

 

- 8 - 
 

Average commercial and industrial loans increased $1.6 billion during the fourth quarter of 2015. Approximately $740 million of the increase was the result of acquisitions while the remaining increase reflects continued growth in large corporate lending. Average commercial real estate – income producing properties loans increased $750 million and average commercial real estate – construction and development loans increased $264 million, with the majority of both of these increases being attributable to acquisitions. Dealer floor plan average loans, which were not significantly impacted by acquisition activity, were up $108 million or 40.6% annualized, due to strong organic growth.

 

Direct retail lending average loans increased $970 million; approximately $735 million of the growth was due to acquisitions. Other lending subsidiaries average loans increased $444 million, with approximately half of the increase due to acquisitions.

 

Excluding acquisition activity, average sales finance loans declined approximately $400 million, which is partially due to dealer pricing structure changes implemented during the third quarter. Average residential mortgage loans decreased approximately $430 million excluding acquisitions, which reflects the continued strategy to sell conforming residential mortgage loan production.

 

DEPOSITS - average balances                   % Change   % Change
(dollars in millions) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
    2015   2015   2014   Q3 15   Q4 14
                    (annualized)      
Noninterest-bearing deposits $  45,824    $  44,153    $  39,130       15.0       17.1 
Interest checking    24,157       22,593       19,308       27.5       25.1 
Money market and savings    61,431       59,306       51,176       14.2       20.0 
Time deposits    16,981       16,837       20,041       3.4       (15.3)
Foreign office deposits - interest-bearing    98       948       660      NM      (85.2)
  Total deposits $  148,491    $  143,837    $  130,315       12.8       13.9 

 

Average deposits for the fourth quarter were $148.5 billion, an increase of $4.7 billion compared to the prior quarter. Average noninterest-bearing deposits increased $1.7 billion, with approximately $870 million of the increase due to acquisitions. Interest checking grew $1.6 billion (approximately $220 million excluding acquisitions) and money market and savings grew $2.1 billion (approximately $535 million excluding acquisitions. Excluding acquisition activity, time deposits declined approximately $650 million, or an annualized 18.5%.

 

The growth in noninterest-bearing deposits and lower-cost deposits drove continued improvement in mix during the quarter. Noninterest-bearing deposits represented 30.9% of total average deposits for the fourth quarter, compared to 30.7% for the prior quarter and 30.0% a year ago.

 

The cost of interest-bearing deposits was 0.24% for the fourth quarter, flat compared to the prior quarter.

 

- 9 - 
 

 

SEGMENT RESULTS                     Change   Change
(dollars in millions)   Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
Segment Net Income   2015   2015   2014   Q3 15   Q4 14
Community Banking   $  272    $  263    $  250    $  9    $  22 
Residential Mortgage Banking      49       59       82       (10)      (33)
Dealer Financial Services      42       44       34       (2)      8 
Specialized Lending      71       69       65       2       6 
Insurance Services      36       21       65       15       (29)
Financial Services      103       82       79       21       24 
Other, Treasury and Corporate      (31)      (5)      28       (26)      (59)
  Total net income   $  542    $  533    $  603    $  9    $  (61)
                                 

 

Fourth Quarter 2015 compared to Third Quarter 2015

 

The financial information related to Susquehanna’s operations was included in the Other, Treasury & Corporate segment until the systems conversion, which occurred during the fourth quarter of 2015.

 

Community Banking

 

Community Banking serves individual and business clients by offering a variety of loan and deposit products and other financial services. The segment is primarily responsible for acquiring and maintaining client relationships.

 

Community Banking net income was $272 million for the fourth quarter of 2015, an increase of $9 million compared to the prior quarter. The higher net income reflects the inclusion of Susquehanna’s operations in segment results for approximately half the quarter due to the November systems conversion. Segment net interest income increased $83 million, driven by the inclusion of Susquehanna since conversion and higher funding spreads on deposits, partially offset by lower interest rates on new commercial loans. Noninterest income decreased $3 million, primarily due to lower checkcard fees and letter of credit fees, partially offset by higher service charges on deposits and commercial loan fees. The allocated provision for credit losses increased $35 million primarily as a result of higher loss estimates. Noninterest expense increased $22 million driven by higher salary and employee insurance expense, primarily attributable to the Susquehanna acquisition, and higher operating charge-offs, partially offset by lower legal expense.

 

Average loans grew $5.8 billion, or 44.4% on an annualized basis and average transaction account deposits grew $4.8 billion, or 33.3% on an annualized basis, primarily attributable to the Susquehanna acquisition.

 

- 10 - 
 

Residential Mortgage Banking

 

Residential Mortgage Banking retains and services mortgage loans originated by BB&T as well as those purchased from various correspondent originators. Mortgage loan products include fixed and adjustable-rate government guaranteed and conventional loans for the purpose of constructing, purchasing or refinancing residential properties. Substantially all of the properties are owner-occupied.

 

Residential Mortgage Banking net income was $49 million for the fourth quarter of 2015, a decrease of $10 million compared to the prior quarter. This decrease was primarily the result of a $14 million decline in noninterest income, which was driven by lower gains on mortgage loan production as a result of lower saleable production volumes and margins. Noninterest expense decreased by $6 million, which primarily reflects lower incentive, professional services and loan processing expense.

 

Dealer Financial Services

 

Dealer Financial Services originates loans to consumers for the purchase of automobiles. These loans are originated on an indirect basis through approved franchised and independent automobile dealers throughout BB&T's market area through BB&T Dealer Finance, and on a national basis through Regional Acceptance Corporation. Dealer Financial Services also originates loans for the purchase of recreational and marine vehicles and, in conjunction with the Community Bank, provides financing and servicing to dealers for their inventories. The consumer auto leasing portfolio was moved to the Dealer Financial Services segment from the Other, Treasury, and Corporate segment in connection with the systems conversion during November.

 

Dealer Financial Services net income was $42 million for the fourth quarter of 2015, a decrease of $2 million compared to the prior quarter. Segment net interest income increased $9 million, primarily due to the consumer auto leasing business moving into the segment. The allocated provision for credit losses increased $11 million, primarily due to seasonally higher net charge-offs in the Dealer Finance and Regional Acceptance loan portfolios.

 

Dealer Financial Services' average loans increased by $695 million, or 20.3%, on an annualized basis as a result of the Susquehanna acquisition, partially offset by lower average balances in the core prime automobile loan portfolio.

 

- 11 - 
 

Specialized Lending

 

Specialized Lending consists of businesses that provide specialty finance alternatives to commercial and consumer clients including: commercial finance, mortgage warehouse lending, tax-exempt financing for local governments and special-purpose districts, equipment leasing, full-service commercial mortgage banking, commercial and retail insurance premium finance, and dealer-based financing of equipment for consumers and small businesses. The small business equipment finance business unit, a former subsidiary of Susquehanna Bancshares, was moved to the Specialized Lending segment from the Other, Treasury, and Corporate segment in connection with the systems conversion during November.

 

Specialized Lending net income was $71 million for the fourth quarter of 2015, an increase of $2 million compared to the prior quarter. Noninterest income increased $13 million driven by higher commercial mortgage income and operating lease income and higher gains on finance leases. Noninterest expense increased $8 million, primarily due to higher incentive expense, higher depreciation of property under operating leases and lower recoveries of operating charge-offs compared to the prior quarter.

 

Specialized Lending average loans were up $99 million, or 2.2% on an annualized basis, primarily due to the Susquehanna acquisition, partially offset by mortgage warehouse lending.

 

Insurance Services

 

BB&T's insurance agency / brokerage network is the fifth largest in the United States and sixth largest in the world. Insurance Services provides property and casualty, life and health insurance to businesses and individual clients. It also provides small business and corporate products, such as workers compensation and professional liability, as well as surety coverage and title insurance.

 

Insurance Services net income was $36 million in the fourth quarter of 2015, an increase of $15 million compared to the prior quarter. Insurance Service's noninterest income increased $35 million, which primarily reflects seasonality in the commercial property and casualty insurance business and higher life insurance commissions as a result of seasonality and improved production. Noninterest expense increased $11 million driven by higher salary and incentive expense, merger-related charges and operating charge-offs.

 

- 12 - 
 

Financial Services

 

Financial Services provides personal trust administration, estate planning, investment counseling, wealth management, asset management, employee benefits services, corporate banking and corporate trust services to individuals, corporations, institutions, foundations and government entities. In addition, Financial Services offers clients investment alternatives, including discount brokerage services, equities, fixed-rate and variable-rate annuities, mutual funds and governmental and municipal bonds through BB&T Investment Services, Inc. The segment also includes BB&T Securities, a full-service brokerage and investment banking firm, the Corporate Banking Division, which originates and services large corporate relationships, syndicated lending relationships and client derivatives, and BB&T Capital Partners, which manages the company's SBIC private equity investments. Various financial-related business units of Susquehanna moved into the Financial Services segment on a post-merger basis, with the financial history prior to systems conversion remaining in the Other, Treasury and Corporate segment.

 

Financial Services net income was $103 million in the fourth quarter of 2015, an increase of $21 million compared to the prior quarter. Segment net interest income increased $10 million driven by Corporate Banking and BB&T Wealth loan and deposit growth and higher funding spreads on deposits. Noninterest income decreased $16 million primarily due to lower capital markets fees and lower income from SBIC private equity investments, partially offset by higher investment advisory fees. The allocated provision for credit losses was a benefit of $3 million in the fourth quarter of 2015, compared to a $21 million charge in the prior quarter as a result of lower loss estimates for the Corporate Banking loan portfolio as well as changes in the portfolio mix and risk expectations related to the oil and energy sector in the prior quarter. Noninterest expense decreased $9 million compared to the prior quarter, primarily driven by lower professional services expense.

 

Financial Services generated significant loan growth, with Corporate Banking's average loan balances increasing $887 million, or an annualized 29.2%, over the prior quarter, while BB&T Wealth's average loan balances increased $61 million, or 15.6% on an annualized basis. BB&T Wealth’s average transaction account deposits grew $194 million, or 20.7% on an annualized basis.

 

Other, Treasury & Corporate

 

Net income in Other, Treasury & Corporate can vary due to the changing needs of the Corporation, including the size of the investment portfolio, the need for wholesale funding and income received from derivatives used to hedge the balance sheet.

 

- 13 - 
 

In the fourth quarter of 2015, Other, Treasury & Corporate generated a net loss of $31 million, compared to a net loss of $5 million in the prior quarter. Segment net interest income decreased $59 million driven primarily by an increase in long-term debt, lower funding spreads and the inclusion of Susquehanna in the segment for a greater period in the prior quarter. Noninterest income increased $11 million, primarily due to improved FDIC loss share income. Noninterest expense decreased $28 million, due to lower personnel expense primarily attributable to the post-conversion move of the Susquehanna business units into the operating segments and lower merger-related charges, partially offset by higher occupancy and equipment and IT professional services expense.

 

Fourth Quarter 2015 compared to Fourth Quarter 2014

 

Community Banking

 

Community Banking net income was $272 million for the fourth quarter of 2015, an increase of $22 million compared to the earlier quarter. Segment net interest income increased $125 million, driven by higher commercial and retail loans and deposits, partially attributable to acquisitions, and higher funding spreads on deposits, partially offset by lower interest rates on new commercial loans. Noninterest income increased $5 million, primarily due to higher service charges on deposits, bankcard and merchant services fees and commercial loan fees. The allocated provision for credit losses increased $19 million as a result of loan growth and higher loss estimates in the commercial loan portfolio. Noninterest expense increased $67 million driven by higher personnel and occupancy and equipment expense and merger-related charges, primarily attributable to the acquisitions.

 

Residential Mortgage Banking

 

Residential Mortgage Banking net income was $49 million for the fourth quarter of 2015, a decrease of $33 million compared to the earlier quarter. Segment net interest income decreased $9 million primarily resulting from lower average loan balances. Noninterest income decreased $22 million driven by lower net mortgage servicing rights valuation adjustments and lower gains on mortgage loan production and sales as a result of lower saleable production volumes and margins. The allocated provision for credit losses was $8 million in the fourth quarter of 2015, compared to a benefit of $38 million in the earlier quarter. The earlier quarter included a $24 million allowance release related to a loan sale. Noninterest expense decreased $27 million compared to the earlier quarter, which primarily reflects a charge related to a review of mortgage lending processes in the earlier quarter.

 

Dealer Financial Services

 

Dealer Financial Services net income was $42 million for the fourth quarter of 2015, an increase of $8 million compared to the earlier quarter. Segment net interest income increased $20 million, primarily attributable to Susquehanna’s consumer auto leasing business and growth in the Regional Acceptance loan portfolio. Noninterest expense increased $10 million driven by higher personnel and other expense, partially related to the acquired consumer auto leasing business.

 

- 14 - 
 

Specialized Lending

 

Specialized Lending net income was $71 million for the fourth quarter of 2015, an increase of $6 million compared to the earlier quarter. Segment net interest income increased $18 million, primarily attributable to Susquehanna’s small business equipment finance business and growth in the small ticket consumer finance portfolio, partially offset by lower interest rates on new loans. Noninterest income increased $4 million driven by higher operating lease income and higher gains on finance leases, partially offset by lower commercial mortgage income. Noninterest expense increased $13 million, primarily due to higher personnel expense and higher depreciation of property under operating leases.

 

Insurance Services

 

Insurance Services net income was $36 million for the fourth quarter of 2015, a decrease of $29 million compared to the earlier quarter. Insurance Service’s noninterest income decreased $33 million, primarily due to the sale of American Coastal in the second quarter of 2015. Noninterest expense increased $14 million driven by higher salary and pension expense, merger-related charges and operating charge-offs as well as a reduction in certain actuarially-determined loss reserves in the earlier period, partially offset by lower business referral expense attributable to the sale of American Coastal.

 

Financial Services

 

Financial Services net income was $103 million in the fourth quarter of 2015, an increase of $24 million compared to the earlier quarter. Segment net interest income increased $24 million driven by Corporate Banking and BB&T Wealth loan and deposit growth and higher funding spreads on deposits. Noninterest income decreased $10 million primarily due to lower capital market fees and lower income from SBIC private equity investments, partially offset by higher investment advisory fees, trust income and brokerage commissions. The allocated provision for credit losses was $20 million lower than the earlier quarter as a result of lower loss estimates in the Corporate Banking loan portfolio, partially offset by loan growth.

 

Other, Treasury & Corporate

 

In the fourth quarter of 2015, Other, Treasury & Corporate generated a net loss of $31 million compared to net income of $28 million in the earlier quarter. Segment net interest income decreased $8 million driven primarily by lower funding spreads on deposits. Noninterest income increased $46 million, primarily due to improved FDIC loss share income and higher service charges on deposits and checkcard fees primarily related to the inclusion of Susquehanna in operating results until the systems conversion in early November. Noninterest expense increased $120 million, primarily due to higher personnel and occupancy and equipment expense primarily related to Susquehanna, as well as higher IT professional services, software expense, franchise taxes and merger-related charges. Amortization of intangibles increased $12 million primarily due to core deposit intangible amortization related to 2015 acquisitions. Allocated corporate expense decreased by $11 million compared to the earlier quarter, reflecting modest increases in corporate expense allocated to the operating segments.

 

- 15 - 
 

 

CAPITAL RATIOS (1)                  
      Basel III   Basel I
  Q4   Q3   Q2   Q1   Q4
  2015    2015    2015    2015    2014 
Risk-based:                  
  Common equity Tier 1 (%)  10.2     10.1     10.4     10.5    N/A
  Tier 1 (%)  11.8     11.7     12.1     12.2     12.4 
  Total (%)  14.2     14.2     14.2     14.4     14.9 
Leverage (%)  9.8     9.9     10.2     10.1     9.9 
Tangible common equity to tangible assets (%) (2)  7.7     7.7     8.1     8.0     8.0 
                       

 

(1)Current quarter regulatory capital ratios are preliminary.
(2)Tangible common equity and related ratios are non-GAAP measures. See the calculations and management's reasons for using these measures in the Capital Information – Five Quarter Trend of the Quarterly Performance Summary.

 

Capital levels remained strong at December 31, 2015. BB&T declared total common dividends of $0.27 during the fourth quarter of 2015, which resulted in a dividend payout ratio of 42.2%. Risk-based capital ratios were up slightly compared to the prior quarter as earnings in excess of dividends was partially offset by higher risk-weighted assets.

 

BB&T’s estimated common equity Tier 1 ratio under Basel III, on a fully-phased in basis, was approximately 10.0% at December 31, 2015 and 9.9% at September 30, 2015.

 

BB&T’s liquidity coverage ratio was approximately 130% at December 31, 2015, compared to the regulatory minimum of 90%. In addition, the liquid asset buffer, which is defined as high quality unencumbered liquid assets as a percentage of total assets, was 13.5% at December 31, 2015.

 

 

 

 

- 16 - 
 

 

ASSET QUALITY (1)                   Change   Change
(dollars in millions) Q4   Q3   Q4   Q4 15 vs.   Q4 15 vs.
    2015   2015   2014   Q3 15   Q4 14
Total nonperforming assets $  712    $  744    $  782    $  (32)   $  (70)
Total performing TDRs    982       976       1,050       6       (68)
Total loans 90 days past due and still accruing (2)    312       381       535       (69)      (223)
Total loans 30-89 days past due    1,028       906       896       122       132 
                               
Nonperforming loans and leases as a percentage of                            
  loans and leases held for investment (%)    0.42       0.43       0.51       (0.01)      (0.09)
Nonperforming assets as a percentage of total assets (%)    0.34       0.36       0.42       (0.02)      (0.08)
Allowance for loan and lease losses as a percentage of                            
  loans and leases held for investment (%)    1.07       1.08       1.23       (0.01)      (0.16)
Net charge-offs as a percentage of average loans and                            
  leases (%) annualized    0.38       0.32       0.39       0.06       (0.01)
Ratio of allowance for loan and lease losses to net                            
  charge-offs (times) annualized    2.83       3.44       3.21       (0.61)      (0.38)
Ratio of allowance for loan and lease losses to                            
  nonperforming loans and leases held for                            
  investment (times)    2.53       2.49       2.39       0.04       0.14 

 

(1)Excludes amounts related to government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase. See footnotes on the Credit Quality pages of the Quarterly Performance Summary for additional information.
(2)The Q3 2015 amount has been revised from the previously reported amount. See the footnotes on page 14 of the Quarterly Performance Summary for additional information.

 

Nonperforming assets totaled $712 million at December 31, 2015, a decrease of $32 million compared to September 30, 2015. The decrease was driven by the fourth quarter sale of nonperforming residential mortgage loans, partially offset by a residential mortgage and direct retail lending policy change to move loans to nonaccrual status at 120 days past due instead of 180 days. At December 31, 2015, nonperforming loans and leases represented 0.42% of loans and leases held for investment, compared to 0.43% at September 30, 2015.

 

Loans 30-89 days past due and still accruing, excluding government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase, totaled $1.0 billion at December 31, 2015, an increase of $122 million compared to the prior quarter. This increase was primarily driven by a $31 million increase for residential mortgage loans, which was primarily the result of conforming the delinquency calculation methodology of Susquehanna loans to BB&T’s method upon conversion of the related loan system. The increase is also driven by a $30 million increase in the other lending subsidiaries portfolio, which reflects seasonality in the nonprime portfolio.

 

Loans 90 days or more past due and still accruing totaled $312 million at December 31, 2015, a decrease of $69 million compared to the prior quarter, primarily driven by loans acquired from the FDIC and PCI loans. Excluding acquired from FDIC and PCI loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.15% at December 31, 2015, a decline of one basis point compared to the prior quarter.

 

- 17 - 
 

 

Net charge-offs during the fourth quarter totaled $130 million, an increase of $23 million compared to the prior quarter, partially due to the previously mentioned nonperforming residential mortgage loan sale. As a percentage of average loans and leases, annualized net charge-offs were 0.38%, compared to 0.32% in the prior quarter.

 

The allowance for loan and lease losses, excluding the allowance for loans acquired from the FDIC and PCI loans, was $1.4 billion, essentially flat compared to the prior quarter. The allowance for loans acquired from the FDIC and PCI loans was $61 million, also essentially flat compared to the prior quarter. As of December 31, 2015, the total allowance for loan and lease losses was 1.07% of loans and leases held for investment, compared to 1.08% at September 30, 2015.

 

The allowance for loan and lease losses was 2.53 times nonperforming loans and leases held for investment, compared to 2.49 times at September 30, 2015. At December 31, 2015, the allowance for loan and lease losses was 2.83 times annualized net charge-offs, compared to 3.44 times at September 30, 2015.

 

Earnings presentation and Quarterly Performance Summary

 

To listen to BB&T’s live fourth quarter 2015 earnings conference call at 8 a.m. (ET) today, please call 1-888-632-5009 and enter the participant code 5184622. A presentation will be used during the earnings conference call and is available on our website at www.bbt.com. Replays of the conference call will be available for 30 days by dialing 888-203-1112 (access code 4313363).

 

The presentation, including an appendix reconciling non-GAAP disclosures, is available at www.bbt.com.

 

BB&T’s fourth quarter 2015 Quarterly Performance Summary, which contains detailed financial schedules, is available on BB&T’s website at www.bbt.com.

 

About BB&T

 

As of December 31, 2015, BB&T is one of the largest financial services holding companies in the U.S. with $209.9 billion in assets and market capitalization of $29.5 billion. Based in Winston-Salem, N.C., the company operates 2,139 financial centers in 15 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by the U.S. Small Business Administration, Greenwich Associates and others. More information about BB&T and its full line of products and services is available at www.bbt.com.

 

#-#-#

 

Capital ratios are preliminary. Credit quality data excludes government guaranteed GNMA loans where applicable.

 

- 18 - 
 

This news release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). BB&T’s management uses these “non-GAAP” measures in their analysis of the Corporation’s performance and the efficiency of its operations. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges in the current period. The company believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. BB&T’s management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the types of non-GAAP measures used in this news release:

 

·Tangible common equity and related ratios are non-GAAP measures. The return on average risk-weighted assets is a non-GAAP measure. BB&T's management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation.
·The ratio of loans greater than 90 days and still accruing interest as a percentage of loans held for investment has been adjusted to remove the impact of loans that are or were covered by FDIC loss sharing agreements and PCI loans. Management believes that their inclusion may result in distortion of these ratios such that they might not be comparable to other periods presented or to other portfolios that were not impacted by purchase accounting.
·Adjusted fee income and adjusted efficiency ratios are non-GAAP in that they exclude securities gains (losses), foreclosed property expense, amortization of intangible assets, merger-related and restructuring charges, the impact of FDIC loss share accounting and other selected items. BB&T’s management uses these measures in their analysis of the Corporation’s performance. BB&T’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges.
·Return on average tangible common shareholders’ equity is a non-GAAP measure that calculates the return on average common shareholders’ equity without the impact of intangible assets and their related amortization. This measure is useful for evaluating the performance of a business consistently, whether acquired or developed internally.
·Core net interest margin is a non-GAAP measure that adjusts net interest margin to exclude the impact of interest income and funding costs associated with loans and securities acquired in the Colonial acquisition and purchased credit impaired (“PCI”) loans acquired from Susquehanna. Core net interest margin is also adjusted to remove the purchase accounting marks and related amortization for non-PCI loans and deposits acquired from Susquehanna. BB&T’s management believes that the adjustments to the calculation of net interest margin for certain assets and deposits acquired provide investors with useful information related to the performance of BB&T’s earning assets.

 

- 19 - 
 

A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in BB&T’s Fourth Quarter 2015 Quarterly Performance Summary, which is available on BB&T’s website at www.bbt.com.

 

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the financial condition, results of operations, business plans and the future performance of BB&T that are based on the beliefs and assumptions of the management of BB&T and the information available to management at the time that these disclosures were prepared. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify these forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Such factors include, but are not limited to, the following:

 

·general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit, insurance or other services;
·disruptions to the credit and financial markets, either nationally or globally, including the impact of a downgrade of U.S. government obligations by one of the credit ratings agencies, the adverse effects of recessionary conditions in Europe and the impact of recent market disruptions in China;
·changes in the interest rate environment, including interest rate changes made by the Federal Reserve, and cash flow reassessments may reduce NIM and/or the volumes and values of loans made or held as well as the value of other financial assets held;
·competitive pressures among depository and other financial institutions may increase significantly;
·legislative, regulatory or accounting changes, including changes resulting from the adoption and implementation of the Dodd-Frank Act may adversely affect the businesses in which BB&T is engaged;
·local, state or federal taxing authorities may take tax positions that are adverse to BB&T;
·a reduction may occur in BB&T’s credit ratings;
·adverse changes may occur in the securities markets;
·competitors of BB&T may have greater financial resources and develop products that enable them to compete more successfully than BB&T and may be subject to different regulatory standards than BB&T;
·natural or other disasters, including acts of domestic or foreign terrorism, could have an adverse effect on BB&T in that such events could materially disrupt BB&T’s operations or the ability or willingness of BB&T’s customers to access the financial services BB&T offers;
·costs or difficulties related to the integration of the businesses of BB&T and its merger partners may be greater than expected;
·expected cost savings or revenue growth associated with completed mergers and acquisitions may not be fully realized or realized within the expected time frames;
·significant litigation could have a material adverse effect on BB&T;

- 20 - 
 
·deposit attrition, customer loss and/or revenue loss following completed mergers and acquisitions may be greater than expected;
·cyber-security risks, including “denial of service,” “hacking” and “identity theft,” could adversely affect BB&T’s business, financial performance, or reputation;
·higher than expected costs related to information technology infrastructure or a failure to successfully implement future system enhancements could adversely impact BB&T’s financial condition and results of operations and could result in significant additional costs to BB&T;
·failure to execute on the Company’s strategic or operational plans, including the ability to successfully complete and/or integrate mergers and acquisitions, could adversely impact BB&T’s financial condition and results of operations; and
·widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties, could adversely impact BB&T’s financial conditions and results of operations.

 

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those expressed in or implied by any forward-looking statement. Except to the extent required by applicable law or regulation, BB&T undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

 

 

 

 

 

 

- 21 -

 

 

 



 

 

 

 

 

 

 

 

BB&T Corporation

Quarterly Performance Summary

Fourth Quarter 2015

 

 

 
 

 

 

BB&T Corporation      
Quarterly Performance Summary      
Table of Contents      
         
         
         
         
    Page
Financial Highlights 1
Financial Highlights - Five Quarter Trend 2
Consolidated Statements of Income 3
Consolidated Statements of Income - Five Quarter Trend 4
Lines of Business Financial Performance - Five Quarter Trend 5
Consolidated Balance Sheets 7
Consolidated Balance Sheets - Five Quarter Trend 8
Average Balance Sheets 9
Average Balance Sheets - Five Quarter Trend 10
Average Balances and Rates - Quarters 11
Credit Quality 14
Credit Quality - Supplemental Information 17
Preliminary Capital Information - Five Quarter Trend 18
Selected Items & Additional Information 19
Non-GAAP Reconciliations 20

 
 

 

BB&T Corporation                  
Financial Highlights                  
(Dollars in millions, except per share data, shares in thousands)                                          
    Quarter Ended         Year-to-Date      
    December 31   %   December 31   %
    2015   2014    Change   2015   2014    Change
Summary Income Statement                                          
Interest income $  1,733      $  1,554       11.5  %   $  6,473      $  6,286       3.0  %
Interest expense    191         183       4.4         735         769       (4.4)  
  Net interest income - taxable equivalent    1,542         1,371       12.5         5,738         5,517       4.0   
Less:  Taxable-equivalent adjustment    38         36       5.6         146         143       2.1   
  Net interest income       1,504         1,335       12.7         5,592         5,374       4.1   
Provision for credit losses    129         83       55.4         428         251       70.5   
  Net interest income after provision for credit losses    1,375         1,252       9.8         5,164         5,123       0.8   
Noninterest income    1,015         1,022       (0.7)        4,019         3,856       4.2   
Noninterest expense    1,597         1,394       14.6         6,266         5,852       7.1   
Income before income taxes    793         880       (9.9)        2,917         3,127       (6.7)  
Provision for income taxes    251         277       (9.4)        794         921       (13.8)  
  Net income    542         603       (10.1)        2,123         2,206       (3.8)  
Noncontrolling interests    3         15       (80.0)        39         75       (48.0)  
Preferred stock dividends    37         37       ―           148         148       ―     
  Net income available to common shareholders    502         551       (8.9)        1,936         1,983       (2.4)  
Per Common Share Data                                          
Earnings:                                          
  Basic $  0.64      $  0.77       (16.9) %   $  2.59      $  2.76       (6.2) %
  Diluted    0.64         0.75       (14.7)        2.56         2.72       (5.9)  
Cash dividends declared    0.27         0.24       12.5         1.05         0.95       10.5   
Common equity    31.66         30.09       5.2         31.66         30.09       5.2   
Tangible common equity (1)    19.82         19.86       (0.2)        19.82         19.86       (0.2)  
                                             
End of period shares outstanding    780,337         720,698       8.3         780,337         720,698       8.3   
Weighted average shares:                                          
  Basic    780,261         720,418       8.3         748,010         718,140       4.2   
  Diluted    790,244         730,652       8.2         757,765         728,372       4.0   
Performance Ratios                                          
Return on average assets    1.03  %      1.28  %            1.08  %      1.19  %      
Return on average risk-weighted assets    1.29         1.68               1.35         1.58         
Return on average common shareholders' equity    8.06         9.99               8.34         9.32         
Return on average tangible common shareholders' equity (2)    13.37         15.45               13.34         14.68         
Net interest margin - taxable equivalent    3.35         3.36               3.32         3.42         
Fee income ratio (3)    41.8         46.2               43.9         44.7         
Efficiency ratio (3)    58.8         55.6               58.9         57.7         
Credit Quality                                      
Nonperforming assets as a percentage of:                                          
  Total assets    0.34  %      0.42  %            0.34  %      0.42  %      
  Loans and leases plus foreclosed property    0.52         0.65               0.52         0.65         
Net charge-offs as a percentage of average                                          
  loans and leases      0.38         0.39               0.35         0.46         
Allowance for loan and lease losses as a percentage                                          
  of loans and leases held for investment    1.07         1.23               1.07         1.23         
Ratio of allowance for loan and lease losses to                                          
  nonperforming loans and leases held for investment    2.53  X      2.39  X            2.53  X      2.39  X      
Average Balances                                          
Total assets $  209,217      $  186,462       12.2  %   $  197,347      $  185,095       6.6  %
Total securities (4)    43,468         40,817       6.5         42,103         40,541       3.9   
Loans and leases    136,190         119,912       13.6         127,802         118,830       7.6   
Deposits    148,491         130,315       13.9         138,498         129,077       7.3   
Common shareholders' equity    24,736         21,895       13.0         23,206         21,280       9.1   
Shareholders' equity    27,378         24,574       11.4         25,871         23,954       8.0   
Period-End Balances                                          
Total assets $  209,947      $  186,834       12.4  %   $  209,947      $  186,834       12.4  %
Total securities (4)    43,827         41,147       6.5         43,827         41,147       6.5   
Loans and leases    136,986         121,307       12.9         136,986         121,307       12.9   
Deposits    149,124         129,040       15.6         149,124         129,040       15.6   
Common shareholders' equity    24,703         21,686       13.9         24,703         21,686       13.9   
Shareholders' equity    27,340         24,377       12.2         27,340         24,377       12.2   
Capital Ratios - Preliminary                                          
Risk-based: Basel III   Basel I         Basel III   Basel I      
  Common equity Tier 1    10.2  %     N/A              10.2  %     N/A        
  Tier 1    11.8         12.4  %            11.8         12.4  %      
  Total    14.2         14.9               14.2         14.9         
Leverage    9.8         9.9               9.8         9.9         
Tangible common equity to tangible assets (1)    7.7         8.0               7.7         8.0         
NM - not meaningful.
Applicable ratios are annualized. Risk-based and leverage capital ratios for the first quarter of 2015 and later are determined in accordance with the Basel III Standardized Transitional Approach, which became effective January 1, 2015. Ratios for earlier periods were determined in accordance with Basel I.
(1) Tangible common equity per share and tangible common equity to tangible assets ratios are non-GAAP measures.  See the calculations and management's reasons for using these measures in the Capital Information - Five Quarter Trend section of this supplement.
(2) Return on average tangible common shareholders' equity is a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement.
(3) Excludes certain items as detailed in the Non-GAAP Reconciliations section of this supplement.
(4) Excludes trading securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.
 
 
1

 

BB&T Corporation            
Financial Highlights - Five Quarter Trend                                      
(Dollars in millions, except per share data, shares in thousands)                                      
                                         
    Quarter Ended
    Dec. 31   Sept. 30   June 30   March 31   Dec. 31
    2015    2015    2015    2015    2014 
Summary Income Statement                                      
Interest income $  1,733      $  1,687      $  1,525      $  1,528      $  1,554   
Interest expense    191         186         177         181         183   
  Net interest income - taxable equivalent    1,542         1,501         1,348         1,347         1,371   
Less:  Taxable-equivalent adjustment    38         37         36         35         36   
  Net interest income       1,504         1,464         1,312         1,312         1,335   
Provision for credit losses    129         103         97         99         83   
  Net interest income after provision for credit losses    1,375         1,361         1,215         1,213         1,252   
Noninterest income    1,015         988         1,019         997         1,022   
Noninterest expense    1,597         1,594         1,653         1,422         1,394   
Income before income taxes    793         755         581         788         880   
Provision for income taxes    251         222         80         241         277   
  Net income    542         533         501         547         603   
Noncontrolling interests    3         4         10         22         15   
Preferred stock dividends    37         37         37         37         37   
  Net income available to common shareholders    502         492         454         488         551   
Per Common Share Data                                      
Earnings:                                      
  Basic $  0.64      $  0.64      $  0.63      $  0.68      $  0.77   
  Diluted    0.64         0.64         0.62         0.67         0.75   
Cash dividends declared    0.27         0.27         0.27         0.24         0.24   
Common equity    31.66         31.56         30.64         30.48         30.09   
Tangible common equity (1)    19.82         19.77         20.21         20.13         19.86   
                                         
End of period shares outstanding    780,337         780,150         733,481         723,159         720,698   
Weighted average shares:                                      
  Basic    780,261         764,435         724,880         721,639         720,418   
  Diluted    790,244         774,023         734,527         731,511         730,652   
Performance Ratios                                      
Return on average assets    1.03  %      1.04  %      1.06  %      1.18  %      1.28  %
Return on average risk-weighted assets    1.29         1.32         1.32         1.48         1.68   
Return on average common shareholders' equity    8.06         8.14         8.20         9.05         9.99   
Return on average tangible common shareholders' equity (2)    13.37         13.23         12.76         14.00         15.45   
Net interest margin - taxable equivalent    3.35         3.35         3.27         3.33         3.36   
Fee income ratio (3)    41.8         42.1         46.3         45.8         46.2   
Efficiency ratio (3)    58.8         59.2         59.2         58.5         55.6   
Credit Quality                                      
Nonperforming assets as a percentage of:                                      
  Total assets    0.34  %      0.36  %      0.38  %      0.40  %      0.42  %
  Loans and leases plus foreclosed property    0.52         0.55         0.60         0.64         0.65   
Net charge-offs as a percentage of average                                      
  loans and leases      0.38         0.32         0.33         0.34         0.39   
Allowance for loan and lease losses as a percentage                                      
  of loans and leases held for investment    1.07         1.08         1.19         1.22         1.23   
Ratio of allowance for loan and lease losses to                                      
  nonperforming loans and leases held for investment    2.53  X      2.49  X      2.55  X      2.45  X      2.39  X
Average Balances                                      
Total assets $  209,217      $  203,531      $  189,033      $  187,297      $  186,462   
Total securities (4)    43,468         43,048         40,727         41,133         40,817   
Loans and leases    136,190         132,499         122,056         120,235         119,912   
Deposits    148,491         143,837         131,868         129,531         130,315   
Common shareholders' equity    24,736         23,957         22,210         21,883         21,895   
Total shareholders' equity    27,378         26,612         24,888         24,566         24,574   
Period-End Balances                                      
Total assets $  209,947      $  208,809      $  191,017      $  189,228      $  186,834   
Total securities (4)    43,827         43,494         40,620         42,089         41,147   
Loans and leases    136,986         136,967         124,770         122,027         121,307   
Deposits    149,124         147,827         132,783         131,229         129,040   
Common shareholders' equity    24,703         24,621         22,477         22,039         21,686   
Shareholders' equity    27,340         27,264         25,132         24,738         24,377   
Capital Ratios - Preliminary                                      
Risk-based: Basel III   Basel I
  Common equity Tier 1    10.2  %      10.1  %      10.4  %      10.5  %     N/A  
  Tier 1    11.8         11.7         12.1         12.2         12.4  %
  Total    14.2         14.2         14.2         14.4         14.9   
Leverage    9.8         9.9         10.2         10.1         9.9   
Tangible common equity to tangible assets (1)    7.7         7.7         8.1         8.0         8.0   
Applicable ratios are annualized. Risk-based and leverage capital ratios for the first quarter of 2015 and later are determined in accordance with the Basel III Standardized Transitional Approach, which became effective January 1, 2015. Ratios for earlier periods were determined in accordance with Basel I.
(1) Tangible common equity per share and tangible common equity to tangible assets ratios are non-GAAP measures.  See the calculations and management's reasons for using these measures in the Capital Information - Five Quarter Trend section of this supplement.
(2) Return on average tangible common shareholders' equity is a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement.
(3) Excludes certain items as detailed in the Non-GAAP Reconciliations section of this supplement.
(4) Excludes trading securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.

2

 

BB&T Corporation  
Consolidated Statements of Income                        
(Dollars in millions, except per share data, shares in thousands)                        
                                               
      Quarter Ended             Year-to-Date        
      Dec. 31   Change   Dec. 31   Change
      2015    2014    $ %   2015    2014    $ %
Interest Income                                          
  Interest and fees on loans and leases $  1,449    $  1,272    $  177   13.9  %   $  5,347    $  5,163    $  184   3.6  %
  Interest and dividends on securities    237       237       ―     ―           941       939       2   0.2   
  Interest on other earning assets    9       9       ―     ―           39       40       (1)  (2.5)  
    Total interest income    1,695       1,518       177   11.7         6,327       6,142       185   3.0   
Interest Expense                                          
  Interest on deposits    62       58       4   6.9         233       239       (6)  (2.5)  
  Interest on short-term borrowings    1       1       ―     ―           4       4       ―     ―     
  Interest on long-term debt    128       124       4   3.2         498       525       (27)  (5.1)  
    Total interest expense    191       183       8   4.4         735       768       (33)  (4.3)  
Net interest income    1,504       1,335       169   12.7         5,592       5,374       218   4.1   
  Provision for credit losses    129       83       46   55.4         428       251       177   70.5   
Net interest income after provision for credit losses    1,375       1,252       123   9.8         5,164       5,123       41   0.8   
Noninterest income                                          
  Insurance income    380       409       (29)  (7.1)        1,596       1,643       (47)  (2.9)  
  Service charges on deposits    165       160       5   3.1         631       632       (1)  (0.2)  
  Mortgage banking income    104       128       (24)  (18.8)        455       395       60   15.2   
  Investment banking and brokerage fees and commissions    91       112       (21)  (18.8)        398       387       11   2.8   
  Trust and investment advisory revenues    64       56       8   14.3         240       221       19   8.6   
  Bankcard fees and merchant discounts    56       52       4   7.7         218       207       11   5.3   
  Checkcard fees    47       41       6   14.6         174       163       11   6.7   
  Operating lease income    33       29       4   13.8         124       95       29   30.5   
  Income from bank-owned life insurance    27       30       (3)  (10.0)        113       110       3   2.7   
  FDIC loss share income, net    (52)      (84)      32   (38.1)        (253)      (343)      90   (26.2)  
  Securities gains (losses), net    ―         ―         ―    NM        (3)      (3)      ―     ―     
  Other income    100       89       11   12.4         326       349       (23)  (6.6)  
    Total noninterest income    1,015       1,022       (7)  (0.7)        4,019       3,856       163   4.2   
Noninterest Expense                                          
  Personnel expense    893       794       99   12.5         3,469       3,180       289   9.1   
  Occupancy and equipment expense    192       168       24   14.3         708       682       26   3.8   
  Software expense    52       45       7   15.6         192       174       18   10.3   
  Loan-related expense    37       71       (34)  (47.9)        150       267       (117)  (43.8)  
  Outside IT services    41       27       14   51.9         135       115       20   17.4   
  Professional services    29       38       (9)  (23.7)        130       139       (9)  (6.5)  
  Amortization of intangibles    32       22       10   45.5         105       91       14   15.4   
  Regulatory charges    28       24       4   16.7         101       106       (5)  (4.7)  
  Foreclosed property expense    11       10       1   10.0         53       40       13   32.5   
  Merger-related and restructuring charges, net    50       18       32   177.8         165       46       119  NM  
  Loss on early extinguishment of debt    ―         ―         ―    NM        172       122       50   41.0   
  Other expense    232       177       55   31.1         886       890       (4)  (0.4)  
    Total noninterest expense    1,597       1,394       203   14.6         6,266       5,852       414   7.1   
Earnings                                          
  Income before income taxes    793       880       (87)  (9.9)        2,917       3,127       (210)  (6.7)  
  Provision for income taxes    251       277       (26)  (9.4)        794       921       (127)  (13.8)  
    Net Income    542       603       (61)  (10.1)        2,123       2,206       (83)  (3.8)  
  Noncontrolling interests    3       15       (12)  (80.0)        39       75       (36)  (48.0)  
  Preferred stock dividends    37       37       ―     ―           148       148       ―     ―     
    Net income available to common shareholders $  502    $  551    $  (49)  (8.9) %   $  1,936    $  1,983    $  (47)  (2.4) %
                                               
Earnings Per Common Share                                          
    Basic $  0.64    $  0.77    $  (0.13)  (16.9) %   $  2.59    $  2.76    $  (0.17)  (6.2) %
    Diluted    0.64       0.75       (0.11)  (14.7)        2.56       2.72       (0.16)  (5.9)  
                                               
Weighted Average Shares Outstanding                                          
    Basic    780,261       720,418       59,843   8.3         748,010       718,140       29,870   4.2   
    Diluted    790,244       730,652       59,592   8.2         757,765       728,372       29,393   4.0   
NM - not meaningful.                                          

3

 

BB&T Corporation    
Consolidated Statements of Income - Five Quarter Trend                            
(Dollars in millions, except per share data, shares in thousands)                            
                                 
      Quarter Ended
      Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Interest Income                            
  Interest and fees on loans and leases $  1,449    $  1,412    $  1,249    $  1,237    $  1,272 
  Interest and dividends on securities    237       232       232       240       237 
  Interest on other earning assets    9       6       8       16       9 
    Total interest income    1,695       1,650       1,489       1,493       1,518 
Interest Expense                            
  Interest on deposits    62       61       55       55       58 
  Interest on short-term borrowings    1       1       1       1       1 
  Interest on long-term debt    128       124       121       125       124 
    Total interest expense    191       186       177       181       183 
Net interest income    1,504       1,464       1,312       1,312       1,335 
  Provision for credit losses    129       103       97       99       83 
Net interest income after provision for credit losses    1,375       1,361       1,215       1,213       1,252 
Noninterest income                            
  Insurance income    380       354       422       440       409 
  Service charges on deposits    165       167       154       145       160 
  Mortgage banking income    104       111       130       110       128 
  Investment banking and brokerage fees and commissions    91       105       108       94       112 
  Trust and investment advisory revenues    64       63       57       56       56 
  Bankcard fees and merchant discounts    56       57       55       50       52 
  Checkcard fees    47       45       43       39       41 
  Operating lease income    33       32       30       29       29 
  Income from bank-owned life insurance    27       29       27       30       30 
  FDIC loss share income, net    (52)      (58)      (64)      (79)      (84)
  Securities gains (losses), net    ―         (2)      (1)      ―         ―   
  Other income    100       85       58       83       89 
    Total noninterest income    1,015       988       1,019       997       1,022 
Noninterest Expense                            
  Personnel expense    893       882       864       830       794 
  Occupancy and equipment expense    192       183       166       167       168 
  Software expense    52       50       46       44       45 
  Loan-related expense    37       38       37       38       71 
  Outside IT services    41       35       29       30       27 
  Professional services    29       42       35       24       38 
  Amortization of intangibles    32       29       23       21       22 
  Regulatory charges    28       25       25       23       24 
  Foreclosed property expense    11       15       14       13       10 
  Merger-related and restructuring charges, net    50       77       25       13       18 
  Loss on early extinguishment of debt    ―         ―         172       ―         ―   
  Other expense    232       218       217       219       177 
    Total noninterest expense    1,597       1,594       1,653       1,422       1,394 
Earnings                            
  Income before income taxes    793       755       581       788       880 
  Provision for income taxes    251       222       80       241       277 
    Net Income    542       533       501       547       603 
  Noncontrolling interests    3       4       10       22       15 
  Preferred stock dividends    37       37       37       37       37 
    Net income available to common shareholders $  502    $  492    $  454    $  488    $  551 
                                 
Earnings Per Common Share                            
    Basic $  0.64    $  0.64    $  0.63    $  0.68    $  0.77 
    Diluted    0.64       0.64       0.62       0.67       0.75 
                                 
Weighted Average Shares Outstanding                            
    Basic    780,261       764,435       724,880       721,639       720,418 
    Diluted    790,244       774,023       734,527       731,511       730,652 

4

 

BB&T Corporation          
Lines of Business Financial Performance - Five Quarter Trend (1)                            
(Dollars in millions)                            
      Quarter Ended
Community Banking Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  493    $  450    $  432    $  426    $  435 
Net intersegment interest income (expense)    362       322       305       283       295 
  Segment net interest income    855       772       737       709       730 
Allocated provision (benefit) for credit losses    39       4       11       13       20 
Noninterest income    301       304       290       271       296 
Intersegment net referral fees (expense)    30       35       39       31       33 
Noninterest expense    404       382       373       358       337 
Amortization of intangibles    5       5       7       6       7 
Allocated corporate expenses    309       305       306       305       301 
  Income (loss) before income taxes    429       415       369       329       394 
  Provision (benefit) for income taxes    157       152       135       120       144 
    Segment net income (loss) $  272    $  263    $  234    $  209    $  250 
                                 
Identifiable assets (period end) $  68,245    $  57,494    $  56,911    $  55,277    $  55,495 
                                 
                                 
      Quarter Ended
Residential Mortgage Banking Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  336    $  337    $  343    $  341    $  357 
Net intersegment interest income (expense)    (225)      (221)      (227)      (232)      (237)
  Segment net interest income    111       116       116       109       120 
Allocated provision (benefit) for credit losses    8       10       3       (12)      (38)
Noninterest income    78       92       101       84       100 
Intersegment net referral fees (expense)    1       1       ―         ―         1 
Noninterest expense    77       83       75       79       104 
Amortization of intangibles    ―         ―         ―         ―         ―   
Allocated corporate expenses    25       22       23       23       23 
  Income (loss) before income taxes    80       94       116       103       132 
  Provision (benefit) for income taxes    31       35       44       39       50 
    Segment net income (loss) $  49    $  59    $  72    $  64    $  82 
                                 
Identifiable assets (period end) $  33,407    $  32,973    $  34,218    $  34,323    $  34,463 
                                 
                                 
      Quarter Ended
Dealer Financial Services Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  231    $  221    $  216    $  213    $  214 
Net intersegment interest income (expense)    (39)      (38)      (38)      (38)      (42)
  Segment net interest income    192       183       178       175       172 
Allocated provision (benefit) for credit losses    78       67       48       61       80 
Noninterest income    4       3       ―         ―         1 
Intersegment net referral fees (expense)    ―         ―         ―         ―         ―   
Noninterest expense    40       38       41       32       30 
Amortization of intangibles    ―         ―         ―         ―         ―   
Allocated corporate expenses    10       10       10       9       8 
  Income (loss) before income taxes    68       71       79       73       55 
  Provision (benefit) for income taxes    26       27       30       28       21 
    Segment net income (loss) $  42    $  44    $  49    $  45    $  34 
                                 
Identifiable assets (period end) $  15,130    $  13,794    $  13,906    $  14,012    $  12,821 
                                 
                                 
      Quarter Ended
Specialized Lending Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  178    $  172    $  154    $  147    $  148 
Net intersegment interest income (expense)    (52)      (49)      (43)      (42)      (40)
  Segment net interest income    126       123       111       105       108 
Allocated provision (benefit) for credit losses    12       10       7       19       13 
Noninterest income    73       60       74       64       69 
Intersegment net referral fees (expense)    ―         ―         ―         ―         ―   
Noninterest expense    71       63       65       57       58 
Amortization of intangibles    2       1       1       1       2 
Allocated corporate expenses    17       16       16       15       16 
  Income (loss) before income taxes    97       93       96       77       88 
  Provision (benefit) for income taxes    26       24       26       19       23 
    Segment net income (loss) $  71    $  69    $  70    $  58    $  65 
                                 
Identifiable assets (period end) $  20,732    $  20,098    $  19,561    $  18,661    $  18,218 
(1) Lines of business results are preliminary.
   
5

 

 

BB&T Corporation      
Lines of Business Financial Performance - Five Quarter Trend (1)                            
(Dollars in millions)                            
      Quarter Ended
Insurance Services Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  ―      $  1    $  ―      $  1    $  1 
Net intersegment interest income (expense)    2       2       1       2       2 
  Segment net interest income    2       3       1       3       3 
Allocated provision (benefit) for credit losses    ―         ―         ―         ―         ―   
Noninterest income    388       353       425       442       421 
Intersegment net referral fees (expense)    ―         ―         ―         ―         ―   
Noninterest expense    295       284       310       302       281 
Amortization of intangibles    12       12       11       12       13 
Allocated corporate expenses    24       25       25       25       29 
  Income (loss) before income taxes    59       35       80       106       101 
  Provision (benefit) for income taxes    23       14       27       34       36 
    Segment net income (loss) $  36    $  21    $  53    $  72    $  65 
                                 
Identifiable assets (period end) $  2,804    $  2,668    $  2,907    $  2,811    $  2,965 
                                 
                                 
      Quarter Ended
Financial Services Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  58    $  53    $  53    $  49    $  50 
Net intersegment interest income (expense)    86       81       74       72       70 
  Segment net interest income    144       134       127       121       120 
Allocated provision (benefit) for credit losses    (3)      21       23       24       17 
Noninterest income    209       225       212       201       219 
Intersegment net referral fees (expense)    11       5       3       3       7 
Noninterest expense    167       176       176       161       171 
Amortization of intangibles    1       1       ―         1       ―   
Allocated corporate expenses    34       34       34       33       31 
  Income (loss) before income taxes    165       132       109       106       127 
  Provision (benefit) for income taxes    62       50       41       40       48 
    Segment net income (loss) $  103    $  82    $  68    $  66    $  79 
                                 
Identifiable assets (period end) $  16,374    $  15,436    $  14,486    $  14,012    $  12,849 
                                 
                                 
      Quarter Ended
Other, Treasury & Corporate (2)(3) Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  208    $  230    $  114    $  135    $  130 
Net intersegment interest income (expense)    (134)      (97)      (72)      (45)      (48)
  Segment net interest income    74       133       42       90       82 
Allocated provision (benefit) for credit losses    (5)      (9)      5       (6)      (9)
Noninterest income    (38)      (49)      (83)      (65)      (84)
Intersegment net referral fees (expense)    (42)      (41)      (42)      (34)      (41)
Noninterest expense    511       539       590       412       391 
Amortization of intangibles    12       10       4       1       ―   
Allocated corporate expenses    (419)      (412)      (414)      (410)      (408)
  Income (loss) before income taxes    (105)      (85)      (268)      (6)      (17)
  Provision (benefit) for income taxes    (74)      (80)      (223)      (39)      (45)
    Segment net income (loss) $  (31)   $  (5)   $  (45)   $  33    $  28 
                                 
Identifiable assets (period end) $  53,255    $  66,346    $  49,028    $  50,132    $  50,023 
                                 
                                 
      Quarter Ended
Total BB&T Corporation Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Net interest income (expense) $  1,504    $  1,464    $  1,312    $  1,312    $  1,335 
Net intersegment interest income (expense)    ―         ―         ―         ―         ―   
  Segment net interest income    1,504       1,464       1,312       1,312       1,335 
Allocated provision (benefit) for credit losses    129       103       97       99       83 
Noninterest income    1,015       988       1,019       997       1,022 
Intersegment net referral fees (expense)    ―         ―         ―         ―         ―   
Noninterest expense    1,565       1,565       1,630       1,401       1,372 
Amortization of intangibles    32       29       23       21       22 
Allocated corporate expenses    ―         ―         ―         ―         ―   
  Income (loss) before income taxes    793       755       581       788       880 
  Provision (benefit) for income taxes    251       222       80       241       277 
    Segment net income (loss) $  542    $  533    $  501    $  547    $  603 
                                 
Identifiable assets (period end) $  209,947    $  208,809    $  191,017    $  189,228    $  186,834 
(1) Lines of business results are preliminary.
(2) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.
(3) Includes financial data related to Susquehanna Bancshares, Inc. until the completion of the systems conversion, which occurred during the fourth quarter of 2015.

6

 

BB&T Corporation    
Consolidated Balance Sheets                      
(Dollars in millions)                      
                             
                             
                             
        As of December 31   Change
        2015    2014    $   %
Assets                      
  Cash and due from banks $  2,123    $  1,639    $  484     29.5  %
  Interest-bearing deposits with banks    1,435       529       906     171.3   
  Federal funds sold and securities purchased under                      
    resale agreements or similar arrangements    153       157       (4)    (2.5)  
  Restricted cash    456       374       82     21.9   
  Securities available for sale at fair value    25,297       20,907       4,390     21.0   
  Securities held to maturity at amortized cost    18,530       20,240       (1,710)    (8.4)  
  Loans and leases:                      
    Commercial:                      
      Commercial and industrial    48,430       41,454       6,976     16.8   
      Commercial real estate-income producing properties    13,421       10,722       2,699     25.2   
      Commercial real estate-construction and development    3,732       2,735       997     36.5   
      Dealer floor plan    1,215       1,091       124     11.4   
    Direct retail lending    11,140       8,146       2,994     36.8   
    Sales finance    10,327       9,509       818     8.6   
    Revolving credit    2,510       2,460       50     2.0   
    Residential mortgage    30,533       31,090       (557)    (1.8)  
    Other lending subsidiaries    13,521       11,462       2,059     18.0   
    Acquired from FDIC and PCI    1,122       1,215       (93)    (7.7)  
      Total loans and leases held for investment    135,951       119,884       16,067     13.4   
    Loans held for sale    1,035       1,423       (388)    (27.3)  
      Total loans and leases    136,986       121,307       15,679     12.9   
  Allowance for loan and lease losses    (1,460)      (1,474)      14     (0.9)  
  Premises and equipment    2,007       1,827       180     9.9   
  Goodwill    8,548       6,869       1,679     24.4   
  Core deposit and other intangible assets    686       505       181     35.8   
  Residential mortgage servicing rights at fair value    880       844       36     4.3   
  Other assets    14,306       13,110       1,196     9.1   
    Total assets $  209,947    $  186,834    $  23,113     12.4  %
Liabilities and Shareholders' Equity                      
  Deposits:                      
    Noninterest-bearing deposits $  45,695    $  38,786    $  6,909     17.8  %
    Interest checking    25,410       20,262       5,148     25.4   
    Money market and savings    60,461       50,604       9,857     19.5   
    Time deposits    17,558       19,388       (1,830)    (9.4)  
      Total deposits    149,124       129,040       20,084     15.6   
  Short-term borrowings    3,593       3,717       (124)    (3.3)  
  Long-term debt    23,769       23,312       457     2.0   
  Accounts payable and other liabilities    6,121       6,388       (267)    (4.2)  
    Total liabilities    182,607       162,457       20,150     12.4   
  Shareholders' equity:                      
    Preferred stock    2,603       2,603       ―       ―     
    Common stock    3,902       3,603       299     8.3   
    Additional paid-in capital    8,365       6,517       1,848     28.4   
    Retained earnings    13,464       12,317       1,147     9.3   
    Accumulated other comprehensive loss    (1,028)      (751)      (277)    36.9   
    Noncontrolling interests    34       88       (54)    (61.4)  
      Total shareholders' equity    27,340       24,377       2,963     12.2   
      Total liabilities and shareholders' equity $  209,947    $  186,834    $  23,113     12.4  %
 
7

 

BB&T Corporation        
Consolidated Balance Sheets - Five Quarter Trend                            
(Dollars in millions)                            
                                   
        As of
        Dec. 31   Sept. 30   June 30   March 31   Dec. 31
        2015    2015    2015    2015    2014 
Assets                            
  Cash and due from banks $  2,123    $  1,538    $  1,607    $  1,452    $  1,639 
  Interest-bearing deposits with banks    1,435       1,115       824       325       529 
  Federal funds sold and securities purchased under                            
    resale agreements or similar arrangements    153       127       190       222       157 
  Restricted cash    456       578       379       513       374 
  Securities available for sale at fair value    25,297       24,249       21,183       21,674       20,907 
  Securities held to maturity at amortized cost    18,530       19,245       19,437       20,415       20,240 
  Loans and leases:                            
    Commercial:                            
      Commercial and industrial    48,430       48,095       43,607       42,294       41,454 
      Commercial real estate-income producing properties    13,421       13,313       11,132       10,719       10,722 
      Commercial real estate-construction and development    3,732       3,807       2,874       2,655       2,735 
      Dealer floor plan    1,215       1,093       1,066       1,008       1,091 
    Direct retail lending    11,140       10,626       8,675       8,288       8,146 
    Sales finance    10,327       10,772       9,427       9,605       9,509 
    Revolving credit    2,510       2,429       2,407       2,390       2,460 
    Residential mortgage    30,533       31,070       30,054       30,533       31,090 
    Other lending subsidiaries    13,521       13,235       12,067       11,304       11,462 
    Acquired from FDIC and PCI    1,122       1,075       992       1,110       1,215 
      Total loans and leases held for investment    135,951       135,515       122,301       119,906       119,884 
    Loans held for sale    1,035       1,452       2,469       2,121       1,423 
      Total loans and leases    136,986       136,967       124,770       122,027       121,307 
  Allowance for loan and lease losses    (1,460)      (1,458)      (1,457)      (1,464)      (1,474)
  Premises and equipment    2,007       2,038       1,900       1,879       1,827 
  Goodwill    8,548       8,498       7,141       6,950       6,869 
  Core deposit and other intangible assets    686       700       514       530       505 
  Residential mortgage servicing rights at fair value    880       848       912       764       844 
  Other assets    14,306       14,364       13,617       13,941       13,110 
    Total assets $  209,947    $  208,809    $  191,017    $  189,228    $  186,834 
Liabilities and Shareholders' Equity                            
  Deposits:                            
    Noninterest-bearing deposits $  45,695    $  44,700    $  42,234    $  41,414    $  38,786 
    Interest checking    25,410       23,574       20,843       21,070       20,262 
    Money market and savings    60,461       61,689       55,269       53,198       50,604 
    Time deposits    17,558       17,864       14,437       15,547       19,388 
      Total deposits    149,124       147,827       132,783       131,229       129,040 
  Short-term borrowings    3,593       2,581       3,883       3,130       3,717 
  Long-term debt    23,769       24,883       23,271       23,437       23,312 
  Accounts payable and other liabilities    6,121       6,254       5,948       6,694       6,388 
    Total liabilities    182,607       181,545       165,885       164,490       162,457 
  Shareholders' equity:                            
    Preferred stock    2,603       2,603       2,603       2,603       2,603 
    Common stock    3,902       3,901       3,667       3,616       3,603 
    Additional paid-in capital    8,365       8,344       6,667       6,524       6,517 
    Retained earnings    13,464       13,172       12,891       12,632       12,317 
    Accumulated other comprehensive loss    (1,028)      (796)      (748)      (733)      (751)
    Noncontrolling interests    34       40       52       96       88 
      Total shareholders' equity    27,340       27,264       25,132       24,738       24,377 
      Total liabilities and shareholders' equity $  209,947    $  208,809    $  191,017    $  189,228    $  186,834 

8

 

BB&T Corporation                      
Average Balance Sheets                                              
(Dollars in millions)                                              
                                                       
                                                       
                                                       
          Quarter Ended               Year-to-Date        
          December 31   Change   December 31   Change
          2015    2014    $   %   2015    2014    $   %
Assets                                              
  Securities at amortized cost (1):                                              
    U.S. Treasury $  2,794    $  2,118    $  676     31.9  %   $  2,650    $  1,969    $  681     34.6  %
    U.S. government-sponsored entities (GSE)    5,165       5,394       (229)    (4.2)        5,338       5,516       (178)    (3.2)  
    Mortgage-backed securities issued by GSE    32,442       29,706       2,736     9.2         30,683       29,504       1,179     4.0   
    States and political subdivisions    2,019       1,818       201     11.1         1,913       1,827       86     4.7   
    Non-agency mortgage-backed    201       235       (34)    (14.5)        215       246       (31)    (12.6)  
    Other    64       654       (590)    (90.2)        477       547       (70)    (12.8)  
    Acquired from FDIC    783       892       (109)    (12.2)        827       932       (105)    (11.3)  
      Total securities    43,468       40,817       2,651     6.5         42,103       40,541       1,562     3.9   
  Other earning assets    3,493       1,830       1,663     90.9         2,768       1,881       887     47.2   
  Loans and leases:                                              
    Commercial:                                              
      Commercial and industrial    48,047       40,383       7,664     19.0         44,648       39,537       5,111     12.9   
      CRE-income producing properties    13,264       10,681       2,583     24.2         11,806       10,489       1,317     12.6   
      CRE-construction and development    3,766       2,772       994     35.9         3,196       2,616       580     22.2   
      Dealer floor plan    1,164       1,053       111     10.5         1,068       985       83     8.4   
    Direct retail lending (2)    10,896       8,085       2,811     34.8         9,375       8,249       1,126     13.7   
    Sales finance    10,533       9,194       1,339     14.6         9,975       9,022       953     10.6   
    Revolving credit    2,458       2,427       31     1.3         2,406       2,385       21     0.9   
    Residential mortgage (2)    30,334       31,046       (712)    (2.3)        30,252       31,528       (1,276)    (4.0)  
    Other lending subsidiaries    13,281       11,351       1,930     17.0         12,291       10,848       1,443     13.3   
    Acquired from FDIC and PCI    1,070       1,309       (239)    (18.3)        1,083       1,613       (530)    (32.9)  
      Total loans and leases held for investment    134,813       118,301       16,512     14.0         126,100       117,272       8,828     7.5   
    Loans held for sale    1,377       1,611       (234)    (14.5)        1,702       1,558       144     9.2   
      Total loans and leases    136,190       119,912       16,278     13.6         127,802       118,830       8,972     7.6   
        Total earning assets    183,151       162,559       20,592     12.7         172,673       161,252       11,421     7.1   
  Nonearning assets    26,066       23,903       2,163     9.0         24,674       23,843       831     3.5   
  Total assets $  209,217    $  186,462    $  22,755     12.2  %   $  197,347    $  185,095    $  12,252     6.6  %
Liabilities and Shareholders' Equity                                              
  Deposits:                                              
    Noninterest-bearing deposits $  45,824    $  39,130    $  6,694     17.1  %   $  42,816    $  37,327    $  5,489     14.7  %
    Interest checking    24,157       19,308       4,849     25.1         22,092       18,731       3,361     17.9   
    Money market and savings    61,431       51,176       10,255     20.0         56,592       49,728       6,864     13.8   
    Time deposits    16,981       20,041       (3,060)    (15.3)        16,405       22,569       (6,164)    (27.3)  
    Foreign office deposits - interest-bearing    98       660       (562)    (85.2)        593       722       (129)    (17.9)  
      Total deposits    148,491       130,315       18,176     13.9         138,498       129,077       9,421     7.3   
  Short-term borrowings    2,698       3,095       (397)    (12.8)        3,221       3,421       (200)    (5.8)  
  Long-term debt    24,306       22,139       2,167     9.8         23,343       22,210       1,133     5.1   
  Accounts payable and other liabilities    6,344       6,339       5     0.1         6,414       6,433       (19)    (0.3)  
    Total liabilities    181,839       161,888       19,951     12.3         171,476       161,141       10,335     6.4   
    Shareholders' equity    27,378       24,574       2,804     11.4         25,871       23,954       1,917     8.0   
  Total liabilities and shareholders' equity $  209,217    $  186,462    $  22,755     12.2  %   $  197,347    $  185,095    $  12,252     6.6  %
Average balances exclude basis adjustments for fair value hedges.
(1) Excludes trading securities.
(2) During the first quarter of 2014, $8.3 billion of loans were transferred from direct retail lending to residential mortgage.
 
9

 

BB&T Corporation    
Average Balance Sheets - Five Quarter Trend                            
(Dollars in millions)                            
                                     
                                     
                                     
          Quarter Ended
          Dec. 31   Sept. 30   June 30   March 31   Dec. 31
          2015    2015    2015    2015    2014 
Assets                            
  Securities at amortized cost (1):                            
    U.S. Treasury $  2,794    $  2,745    $  2,561    $  2,497    $  2,118 
    U.S. government-sponsored entities (GSE)    5,165       5,395       5,400       5,394       5,394 
    Mortgage-backed securities issued by GSE    32,442       31,329       29,245       29,679       29,706 
    States and political subdivisions    2,019       1,975       1,834       1,823       1,818 
    Non-agency mortgage-backed    201       211       220       228       235 
    Other    64       579       623       643       654 
    Acquired from FDIC    783       814       844       869       892 
      Total securities    43,468       43,048       40,727       41,133       40,817 
  Other earning assets    3,493       2,917       2,645       1,999       1,830 
  Loans and leases:                            
    Commercial:                            
      Commercial and industrial    48,047       46,462       42,541       41,448       40,383 
      Commercial real estate-income producing properties    13,264       12,514       10,730       10,680       10,681 
      Commercial real estate-construction and development    3,766       3,502       2,767       2,734       2,772 
      Dealer floor plan    1,164       1,056       1,010       1,040       1,053 
    Direct retail lending    10,896       9,926       8,449       8,191       8,085 
    Sales finance    10,533       10,386       9,507       9,458       9,194 
    Revolving credit    2,458       2,421       2,365       2,385       2,427 
    Residential mortgage    30,334       30,384       29,862       30,427       31,046 
    Other lending subsidiaries    13,281       12,837       11,701       11,318       11,351 
    Acquired from FDIC and PCI    1,070       1,052       1,055       1,156       1,309 
      Total loans and leases held for investment    134,813       130,540       119,987       118,837       118,301 
    Loans held for sale    1,377       1,959       2,069       1,398       1,611 
      Total loans and leases    136,190       132,499       122,056       120,235       119,912 
        Total earning assets    183,151       178,464       165,428       163,367       162,559 
  Nonearning assets    26,066       25,067       23,605       23,930       23,903 
  Total assets $  209,217    $  203,531    $  189,033    $  187,297    $  186,462 
Liabilities and Shareholders' Equity                            
  Deposits:                            
    Noninterest-bearing deposits $  45,824    $  44,153    $  41,502    $  39,701    $  39,130 
    Interest checking    24,157       22,593       20,950       20,623       19,308 
    Money market and savings    61,431       59,306       53,852       51,644       51,176 
    Time deposits    16,981       16,837       14,800       17,000       20,041 
    Foreign office deposits - interest-bearing    98       948       764       563       660 
      Total deposits    148,491       143,837       131,868       129,531       130,315 
  Short-term borrowings    2,698       3,572       3,080       3,539       3,095 
  Long-term debt    24,306       23,394       22,616       23,043       22,139 
  Accounts payable and other liabilities    6,344       6,116       6,581       6,618       6,339 
    Total liabilities    181,839       176,919       164,145       162,731       161,888 
  Shareholders' equity    27,378       26,612       24,888       24,566       24,574 
  Total liabilities and shareholders' equity $  209,217    $  203,531    $  189,033    $  187,297    $  186,462 
Average balances exclude basis adjustments for fair value hedges.
(1) Excludes trading securities.

10

 

BB&T Corporation    
Average Balances and Rates - Quarters                              
(Dollars in millions)                              
                                       
          Quarter Ended
          December 31, 2015   September 30, 2015
          (1)   Interest (2)   (1)   Interest (2)
          Average   Income/ Yields/   Average   Income/ Yields/
          Balances   Expense Rates   Balances   Expense Rates
Assets                              
  Securities at amortized cost (3):                              
    U.S. Treasury $  2,794    $  12   1.67  %   $  2,745    $  11   1.60  %
    U.S. government-sponsored entities (GSE)    5,165       27   2.12         5,395       29   2.13   
    Mortgage-backed securities issued by GSE    32,442       156   1.94         31,329       147   1.89   
    States and political subdivisions    2,019       28   5.42         1,975       27   5.49   
    Non-agency mortgage-backed    201       5   8.53         211       4   8.45   
    Other    64       ―     1.25         579       3   1.42   
    Acquired from FDIC    783       22   11.34         814       24   11.57   
      Total securities    43,468       250   2.30         43,048       245   2.27   
  Other earning assets    3,493       8   0.90         2,917       7   0.97   
  Loans and leases:                              
    Commercial:                              
      Commercial and industrial    48,047       387   3.20         46,462       386   3.30   
      Commercial real estate-income producing properties    13,264       135   4.02         12,514       118   3.74   
      Commercial real estate-construction and development    3,766       36   3.80         3,502       33   3.73   
      Dealer floor plan    1,164       6   1.89         1,056       4   1.91   
    Direct retail lending    10,896       108   3.97         9,926       105   4.18   
    Sales finance    10,533       76   2.86         10,386       83   3.14   
    Revolving credit    2,458       55   8.81         2,421       53   8.70   
    Residential mortgage    30,334       316   4.17         30,384       319   4.18   
    Other lending subsidiaries    13,281       287   8.57         12,837       276   8.56   
    Acquired from FDIC and PCI    1,070       56   20.85         1,052       40   14.87   
      Total loans and leases held for investment    134,813       1,462   4.31         130,540       1,417   4.31   
    Loans held for sale    1,377       13   3.73         1,959       18   3.75   
      Total loans and leases    136,190       1,475   4.31         132,499       1,435   4.31   
        Total earning assets    183,151       1,733   3.77         178,464       1,687   3.76   
  Nonearning assets    26,066                 25,067           
  Total assets $  209,217              $  203,531           
                                       
Liabilities and Shareholders' Equity                              
  Interest-bearing deposits:                              
    Interest checking $  24,157       6   0.09      $  22,593       4   0.08   
    Money market and savings    61,431       32   0.21         59,306       30   0.20   
    Time deposits    16,981       24   0.58         16,837       26   0.61   
    Foreign office deposits - interest-bearing    98       ―     0.34         948       1   0.13   
      Total interest-bearing deposits    102,667       62   0.24         99,684       61   0.24   
  Short-term borrowings    2,698       1   0.17         3,572       2   0.15   
  Long-term debt    24,306       128   2.11         23,394       123   2.12   
    Total interest-bearing liabilities    129,671       191   0.59         126,650       186   0.59   
  Noninterest-bearing deposits    45,824                 44,153           
  Accounts payable and other liabilities    6,344                 6,116           
  Shareholders' equity    27,378                 26,612           
  Total liabilities and shareholders' equity $  209,217              $  203,531           
                                       
  Average interest-rate spread            3.18                 3.17   
                                       
  Net interest income / net interest margin       $  1,542   3.35  %         $  1,501   3.35  %
                                       
  Taxable-equivalent adjustment       $  38              $  37     
                                       
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Yields are on a fully taxable-equivalent basis.
(3) Excludes trading securities.

11

 

 

BB&T Corporation                    
Average Balances and Rates - Quarters                                              
(Dollars in millions)                                              
                                                       
          Quarter Ended
          June 30, 2015   March 31, 2015   December 31, 2014
          (1)   Interest (2)   (1)   Interest (2)   (1)   Interest (2)
          Average   Income/ Yields/   Average   Income/ Yields/   Average   Income/ Yields/
          Balances   Expense Rates   Balances   Expense Rates   Balances   Expense Rates
Assets                                              
  Securities at amortized cost (3):                                              
    U.S. Treasury $  2,561    $  10   1.56  %   $  2,497    $  9   1.49  %   $  2,118    $  9   1.54  %
    U.S. government-sponsored entities (GSE)    5,400       28   2.13         5,394       29   2.13         5,394       29   2.13   
    Mortgage-backed securities issued by GSE    29,245       149   2.05         29,679       153   2.04         29,706       148   2.01   
    States and political subdivisions    1,834       27   5.80         1,823       26   5.80         1,818       27   5.81   
    Non-agency mortgage-backed    220       5   7.88         228       4   7.87         235       5   7.81   
    Other    623       2   1.11         643       2   1.39         654       2   1.42   
    Acquired from FDIC    844       24   11.36         869       31   14.46         892       31   13.77   
      Total securities    40,727       245   2.41         41,133       254   2.47         40,817       251   2.45   
  Other earning assets    2,645       7   1.19         1,999       16   3.13         1,830       9   1.92   
  Loans and leases:                                              
    Commercial:                                              
      Commercial and industrial    42,541       335   3.15         41,448       326   3.19         40,383       332   3.27   
      CRE-income producing properties    10,730       90   3.37         10,680       89   3.39         10,681       93   3.43   
      CRE-construction and development    2,767       23   3.31         2,734       22   3.32         2,772       24   3.38   
      Dealer floor plan    1,010       5   1.81         1,040       5   1.80         1,053       5   1.83   
    Direct retail lending    8,449       86   4.04         8,191       82   4.08         8,085       78   3.89   
    Sales finance    9,507       64   2.70         9,458       63   2.72         9,194       64   2.77   
    Revolving credit    2,365       51   8.68         2,385       52   8.85         2,427       54   8.72   
    Residential mortgage    29,862       308   4.14         30,427       312   4.11         31,046       324   4.17   
    Other lending subsidiaries    11,701       255   8.72         11,318       249   8.92         11,351       252   8.81   
    Acquired from FDIC and PCI    1,055       38   14.66         1,156       45   15.85         1,309       52   15.93   
      Total loans and leases held for investment    119,987       1,255   4.19         118,837       1,245   4.24         118,301       1,278   4.30   
    Loans held for sale    2,069       18   3.48         1,398       13   3.61         1,611       16   3.91   
      Total loans and leases    122,056       1,273   4.18         120,235       1,258   4.23         119,912       1,294   4.29   
        Total earning assets    165,428       1,525   3.69         163,367       1,528   3.77         162,559       1,554   3.80   
  Nonearning assets    23,605                 23,930                 23,903           
  Total assets $  189,033              $  187,297              $  186,462           
                                                       
Liabilities and Shareholders' Equity                                              
  Interest-bearing deposits:                                              
    Interest checking $  20,950       4   0.08      $  20,623       4   0.07      $  19,308       4   0.07   
    Money market and savings    53,852       23   0.18         51,644       22   0.17         51,176       21   0.17   
    Time deposits    14,800       28   0.72         17,000       29   0.71         20,041       32   0.66   
    Foreign office deposits - interest-bearing    764       ―     0.09         563       ―     0.08         660       1   0.08   
      Total interest-bearing deposits    90,366       55   0.24         89,830       55   0.25         91,185       58   0.25   
  Short-term borrowings    3,080       1   0.16         3,539       1   0.11         3,095       1   0.14   
  Long-term debt    22,616       121   2.14         23,043       125   2.18         22,139       124   2.22   
    Total interest-bearing liabilities    116,062       177   0.61         116,412       181   0.63         116,419       183   0.62   
  Noninterest-bearing deposits    41,502                 39,701                 39,130           
  Accounts payable and other liabilities    6,581                 6,618                 6,339           
  Shareholders' equity    24,888                 24,566                 24,574           
  Total liabilities and shareholders' equity $  189,033              $  187,297              $  186,462           
                                                       
  Average interest-rate spread            3.08                 3.14                 3.18   
                                                       
  Net interest income / net interest margin       $  1,348   3.27  %         $  1,347   3.33  %         $  1,371   3.36  %
                                                       
  Taxable-equivalent adjustment       $  36              $  35              $  36     
                                                       
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Yields are on a fully taxable-equivalent basis.
(3) Excludes trading securities.

12

 

BB&T Corporation    
Average Balances and Rates - Year-To-Date                              
(Dollars in millions)                              
                                       
          Year-to-Date
          December 31, 2015   December 31, 2014
          (1)   Interest (2)   (1)   Interest (2)
          Average   Income/ Yields/   Average   Income/ Yields/
          Balances   Expense Rates   Balances   Expense Rates
Assets                              
  Securities at amortized cost (3):                              
    U.S. Treasury $  2,650    $  42   1.58  %   $  1,969    $  30   1.51  %
    U.S. government-sponsored entities (GSE)    5,338       113   2.13         5,516       116   2.10   
    Mortgage-backed securities issued by GSE    30,683       605   1.98         29,504       589   2.00   
    States and political subdivisions    1,913       108   5.62         1,827       106   5.78   
    Non-agency mortgage-backed    215       18   8.17         246       19   7.55   
    Other    477       7   1.31         547       8   1.43   
    Acquired from FDIC    827       101   12.22         932       125   13.35   
      Total securities    42,103       994   2.36         40,541       993   2.45   
  Other earning assets    2,768       38   1.39         1,881       40   2.13   
  Loans and leases:                              
    Commercial:                              
      Commercial and industrial    44,648       1,434   3.21         39,537       1,325   3.35   
      CRE-income producing properties    11,806       432   3.66         10,489       366   3.49   
      CRE-construction and development    3,196       114   3.57         2,616       92   3.51   
      Dealer floor plan    1,068       20   1.85         985       18   1.87   
    Direct retail lending (4)    9,375       381   4.07         8,249       338   4.10   
    Sales finance    9,975       286   2.86         9,022       253   2.80   
    Revolving credit    2,406       211   8.76         2,385       208   8.70   
    Residential mortgage (4)    30,252       1,255   4.15         31,528       1,325   4.20   
    Other lending subsidiaries    12,291       1,067   8.68         10,848       985   9.08   
    Acquired from FDIC and PCI    1,083       179   16.57         1,613       278   17.22   
      Total loans and leases held for investment    126,100       5,379   4.27         117,272       5,188   4.42   
    Loans held for sale    1,702       62   3.63         1,558       65   4.19   
      Total loans and leases    127,802       5,441   4.26         118,830       5,253   4.42   
        Total earning assets    172,673       6,473   3.75         161,252       6,286   3.90   
  Nonearning assets    24,674                 23,843           
  Total assets $  197,347              $  185,095           
                                       
Liabilities and Shareholders' Equity                              
  Interest-bearing deposits:                              
    Interest checking $  22,092       18   0.08      $  18,731       13   0.07   
    Money market and savings    56,592       107   0.19         49,728       74   0.15   
    Time deposits    16,405       107   0.66         22,569       151   0.67   
    Foreign office deposits - interest-bearing    593       1   0.12         722       1   0.07   
      Total interest-bearing deposits    95,682       233   0.24         91,750       239   0.26   
  Short-term borrowings    3,221       5   0.15         3,421       5   0.13   
  Long-term debt    23,343       497   2.13         22,210       525   2.36   
    Total interest-bearing liabilities    122,246       735   0.60         117,381       769   0.65   
  Noninterest-bearing deposits    42,816                 37,327           
  Accounts payable and other liabilities    6,414                 6,433           
  Shareholders' equity    25,871                 23,954           
  Total liabilities and shareholders' equity $  197,347              $  185,095           
                                       
  Average interest-rate spread            3.15                 3.25   
                                       
  Net interest income / net interest margin       $  5,738   3.32  %         $  5,517   3.42  %
                                       
  Taxable-equivalent adjustment       $  146              $  143     
                                       
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Yields are on a fully taxable-equivalent basis.
(3) Excludes trading securities.
(4) During the first quarter of 2014, $8.3 billion of loans were transferred from direct retail lending to residential mortgage.

13

 

BB&T Corporation    
Credit Quality                            
(Dollars in millions)                            
                                   
        As of
        Dec. 31   Sept. 30   June 30   March 31   Dec. 31
        2015    2015    2015    2015    2014 
Nonperforming assets (1)                            
  Nonaccrual loans and leases:                            
    Commercial:                            
      Commercial and industrial $  237    $  211    $  198    $  230    $  239 
      Commercial real estate-income producing properties    38       45       59       63       74 
      Commercial real estate-construction and development    13       24       16       18       26 
      Dealer floor plan    ―         7       7       ―         ―   
    Direct retail lending    43       39       41       47       48 
    Sales finance    7       6       6       7       5 
    Residential mortgage (2)    173       196       188       183       166 
    Other lending subsidiaries    65       57       57       51       58 
      Total nonaccrual loans and leases held for investment (2)    576       585       572       599       616 
  Foreclosed real estate    82       85       86       90       87 
  Foreclosed real estate-acquired from FDIC and PCI    26       45       47       53       56 
  Other foreclosed property    28       29       24       23       23 
      Total nonperforming assets (1)(2) $  712    $  744    $  729    $  765    $  782 
Performing troubled debt restructurings (TDRs) (3)                            
    Commercial:                            
      Commercial and industrial $  49    $  54    $  75    $  54    $  64 
      Commercial real estate-income producing properties    13       12       21       15       27 
      Commercial real estate-construction and development    16       14       23       25       30 
    Direct retail lending    72       75       81       84       84 
    Sales finance    17       18       18       18       19 
    Revolving credit    33       34       36       38       41 
    Residential mortgage-nonguaranteed    288       275       273       269       261 
    Residential mortgage-government guaranteed    316       321       328       325       360 
    Other lending subsidiaries    178       173       172       168       164 
      Total performing TDRs (3) $  982    $  976    $  1,027    $  996    $  1,050 
Loans 90 days or more past due and still accruing                            
    Direct retail lending $  7    $  12    $  10    $  9    $  12 
    Sales finance    5       4       4       3       5 
    Revolving credit    10       9       9       10       9 
    Residential mortgage-nonguaranteed    55       61       60       59       83 
    Residential mortgage-government guaranteed (4)    121       128       154       157       238 
    Acquired from FDIC and PCI (5)    114       167       124       154       188 
      Total loans 90 days past due and still accruing (4)(5) $  312    $  381    $  361    $  392    $  535 
Loans 30-89 days past due                            
    Commercial:                            
      Commercial and industrial $  36    $  26    $  16    $  20    $  23 
      Commercial real estate-income producing properties    13       6       4       7       4 
      Commercial real estate-construction and development    9       2       3       2       1 
    Direct retail lending    58       46       41       40       41 
    Sales finance    72       63       53       49       62 
    Revolving credit    22       20       19       19       23 
    Residential mortgage-nonguaranteed    397       368       362       356       392 
    Residential mortgage-government guaranteed (6)    75       73       74       68       80 
    Other lending subsidiaries    304       274       230       151       237 
    Acquired from FDIC and PCI    42       28       31       47       33 
      Total loans 30-89 days past due (6) $  1,028    $  906    $  833    $  759    $  896 
Excludes loans held for sale.
(1) Loans acquired from the FDIC and PCI are accounted for using the accretion method.
(2) During the fourth quarter of 2015, approximately $50 million of nonaccrual residential mortgage loans were sold.
(3) Excludes TDRs that are nonperforming totaling $146 million, $154 million, $127 million, $127 million, and $126 million at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively. These amounts are included in total nonperforming assets.
(4) Excludes government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase that are past due 90 days or more totaling $365 million, $353 million, $338 million, $361 million and $410 million at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively.
(5) Approximately $93 million of PCI loans 90 days or more past due and still accruing as of September 30, 2015 have been reclassified to current based on a correction to the aging methodology for these loans.
(6) Excludes government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase that are past due 30-89 days totaling $2 million, $3 million, $3 million, $2 million and $2 million at December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, respectively.

14

 

 

BB&T Corporation    
Credit Quality    
(Dollars in millions)                            
                                   
        As of/For the Quarter Ended
        Dec. 31   Sept. 30   June 30   March 31   Dec. 31
        2015    2015    2015    2015    2014 
Allowance for credit losses                            
  Beginning balance $  1,551    $  1,535    $  1,532    $  1,534    $  1,567 
  Provision for credit losses (excluding loans acquired from FDIC and PCI)    128       100       97       105       84 
  Provision (benefit) for loans acquired from FDIC and PCI    1       3       ―         (6)      (1)
  Charge-offs:                            
    Commercial:                            
      Commercial and industrial    (19)      (16)      (32)      (14)      (27)
      Commercial real estate—income producing properties    (3)      (4)      (4)      (9)      (4)
      Commercial real estate—construction and development    (1)      (1)      ―         (2)      (2)
    Direct retail lending    (14)      (15)      (13)      (12)      (14)
    Sales finance    (10)      (5)      (5)      (6)      (7)
    Revolving credit    (16)      (17)      (19)      (18)      (18)
    Residential mortgage-nonguaranteed    (14)      (7)      (8)      (11)      (10)
    Residential mortgage-government guaranteed    (2)      (3)      (1)      ―         ―   
    Other lending subsidiaries    (85)      (77)      (57)      (67)      (71)
    Acquired from FDIC and PCI    ―         ―         ―         (1)      (14)
      Total charge-offs    (164)      (145)      (139)      (140)      (167)
  Recoveries:                            
    Commercial:                            
      Commercial and industrial    8       8       13       8       13 
      Commercial real estate—income producing properties    1       3       1       2       7 
      Commercial real estate—construction and development    2       3       2       4       4 
    Direct retail lending    6       8       7       8       7 
    Sales finance    2       2       2       3       2 
    Revolving credit    5       5       5       5       5 
    Residential mortgage-nonguaranteed    1       1       1       ―         5 
    Other lending subsidiaries    9       8       10       9       8 
      Total recoveries    34       38       41       39       51 
  Net charge-offs    (130)      (107)      (98)      (101)      (116)
  Other    ―         20       4       ―         ―   
  Ending balance $  1,550    $  1,551    $  1,535    $  1,532    $  1,534 
Allowance for credit losses                            
  Allowance for loan and lease losses (excluding loans acquired from the FDIC and PCI) $  1,399    $  1,398    $  1,400    $  1,407    $  1,410 
  Allowance for loans acquired from the FDIC and PCI    61       60       57       57       64 
  Reserve for unfunded lending commitments    90       93       78       68       60 
    Total $  1,550    $  1,551    $  1,535    $  1,532    $  1,534 
   
                             
                            As of/For the
                            Twelve Months Ended
                            December 31
                            2015      2014 
Allowance for credit losses                            
  Beginning balance                   $  1,534    $  1,821 
  Provision for credit losses (excluding loans acquired from FDIC and PCI)                      430       280 
  Provision (benefit) for loans acquired from FDIC and PCI                      (2)      (29)
  Charge-offs:                            
    Commercial:                            
      Commercial and industrial                      (81)      (131)
      Commercial real estate—income producing properties                      (20)      (31)
      Commercial real estate—construction and development                      (4)      (11)
    Direct retail lending (1)                      (54)      (69)
    Sales finance                      (26)      (23)
    Revolving credit                      (70)      (71)
    Residential mortgage-nonguaranteed (1)                      (40)      (82)
    Residential mortgage-government guaranteed                      (6)      (2)
    Other lending subsidiaries                      (286)      (269)
    Acquired from FDIC and PCI                      (1)      (21)
      Total charge-offs                      (588)      (710)
  Recoveries:                            
    Commercial:                            
      Commercial and industrial                      37       42 
      Commercial real estate—income producing properties                      7       14 
      Commercial real estate—construction and development                      11       19 
    Direct retail lending (1)                      29       29 
    Sales finance                      9       9 
    Revolving credit                      20       19 
    Residential mortgage-nonguaranteed (1)                      3       7 
    Other lending subsidiaries                      36       33 
      Total recoveries                      152       172 
  Net charge-offs                      (436)      (538)
  Other                      24       ―   
  Ending balance                   $  1,550    $  1,534 
(1) During the first quarter of 2014, $8.3 billion of loans were transferred from direct retail lending to residential mortgage.

15

 

 

BB&T Corporation    
Credit Quality                            
                                 
      As of/For the Quarter Ended  
      Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Asset Quality Ratios (including acquired from FDIC and PCI)                            
  Loans 30-89 days past due and still accruing as a                            
    percentage of loans and leases (1)  0.76  %    0.67  %    0.68  %    0.63  %    0.75  %
  Loans 90 days or more past due and still accruing                            
    as a percentage of loans and leases (1)(3)  0.23       0.28       0.29       0.33       0.45   
  Nonperforming loans and leases as a                            
    percentage of loans and leases  0.42       0.43       0.47       0.50       0.51   
  Nonperforming assets as a percentage of:                            
    Total assets  0.34       0.36       0.38       0.40       0.42   
    Loans and leases plus foreclosed property  0.52       0.55       0.60       0.64       0.65   
  Net charge-offs as a percentage of average loans and leases  0.38       0.32       0.33       0.34       0.39   
  Allowance for loan and lease losses as a percentage of                            
    loans and leases  1.07       1.08       1.19       1.22       1.23   
  Ratio of allowance for loan and lease losses to:                            
    Net charge-offs  2.83  X    3.44  X    3.71  X    3.60  X    3.21  X
    Nonperforming loans and leases  2.53       2.49       2.55       2.45       2.39   
Asset Quality Ratios (excluding acquired from FDIC and PCI) (2)                            
  Loans 90 days or more past due and still accruing                            
    as a percentage of loans and leases (1)  0.15  %    0.16  %    0.19  %    0.20  %    0.29  %
                                 
                        As of/For the
                        Twelve Months Ended
                        December 31
                        2015    2014 
Asset Quality Ratios                            
  Including acquired from FDIC and PCI:                            
    Net charge-offs as a percentage of average loans and leases                    0.35  %    0.46  %
    Ratio of allowance for loan and lease losses to net charge-offs                    3.36  X    2.74  X
Applicable ratios are annualized. Loans and leases exclude loans held for sale.
(1) Excludes government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase. Refer to the footnotes in the Credit Quality section of this supplement for amounts related to these loans. The prior quarters have been revised to include government guaranteed mortgage loans consistent with the current presentation.
(2) These asset quality ratios have been adjusted to remove the impact of assets acquired from the FDIC and PCI.  Appropriate adjustments to the numerator and denominator have been reflected in the calculation of these ratios.  Management believes the inclusion of assets acquired from the FDIC and PCI in certain asset quality ratios results in distortion of these ratios and they may not be comparable to other periods presented or to other portfolios that were subject to different accounting requirements.
(3) Approximately $93 million of PCI loans 90 days or more past due and still accruing as of September 30, 2015 have been reclassified to current based on a revision to the aging methodology for these loans.

16

 

BB&T Corporation        
Credit Quality - Supplemental Information                                  
(Dollars in millions)                                  
                                       
      As of December 31, 2015
                Past Due 30-89   Past Due 90+      
      Current Status   Days   Days   Total
Performing TDRs: (1)                                  
  Commercial:                                  
    Commercial and industrial $  45   91.8  %   $  4   8.2  %   $  ―     ―    %   $  49 
    Commercial real estate—income producing properties    13   100.0         ―     ―           ―     ―           13 
    Commercial real estate—construction and development    16   100.0         ―     ―           ―     ―           16 
  Direct retail lending    70   97.2         2   2.8         ―     ―           72 
  Sales finance    16   94.1         1   5.9         ―     ―           17 
  Revolving credit    28   84.9         4   12.1         1   3.0         33 
  Residential mortgage—nonguaranteed    236   81.9         44   15.3         8   2.8         288 
  Residential mortgage—government guaranteed    174   55.1         64   20.2         78   24.7         316 
  Other lending subsidiaries    146   82.0         32   18.0         ―     ―           178 
    Total performing TDRs    744   75.8         151   15.4         87   8.8         982 
Nonperforming TDRs (2)    61   41.8         23   15.7         62   42.5         146 
    Total TDRs $  805   71.4      $  174   15.4      $  149   13.2      $  1,128 
                           
        Quarter Ended
        Dec. 31 Sept. 30 June 30 March 31 Dec. 31
        2015  2015  2015  2015  2014 
Net charge-offs as a percentage of average loans and leases:                    
  Commercial:                    
    Commercial and industrial  0.09  %  0.07  %  0.18  %  0.06  %  0.13  %
    Commercial real estate—income producing properties  0.05     0.03     0.11     0.28     (0.13)  
    Commercial real estate—construction and development  (0.10)    (0.25)    (0.20)    (0.36)    (0.18)  
  Direct retail lending  0.30     0.29     0.29     0.18     0.36   
  Sales finance  0.28     0.12     0.11     0.14     0.21   
  Revolving credit  1.85     1.88     2.24     2.32     2.27   
  Residential mortgage  0.19     0.11     0.12     0.15     0.06   
  Other lending subsidiaries  2.30     2.12     1.60     2.07     2.20   
  Acquired from FDIC and PCI  0.14     0.19     ―       0.10     4.19   
    Total loans and leases  0.38     0.32     0.33     0.34     0.39   
                           
                           
                    Year-to-date
                    Dec. 31 Dec. 31
                    2015  2014 
Net charge-offs as a percentage of average loans and leases:                    
  Commercial:                    
    Commercial and industrial              0.10  %  0.22  %
    Commercial real estate—income producing properties              0.11     0.16   
    Commercial real estate—construction and development              (0.22)    (0.28)  
  Direct retail lending              0.27     0.49   
  Sales finance              0.16     0.16   
  Revolving credit              2.07     2.20   
  Residential mortgage              0.14     0.24   
  Other lending subsidiaries              2.03     2.18   
  Acquired from FDIC and PCI              0.10     1.33   
    Total loans and leases              0.35     0.46   
Applicable ratios are annualized.                    
(1) Past due performing TDRs are included in past due disclosures.
(2) Nonperforming TDRs are included in nonaccrual loan disclosures.
   
                                                             
17

 

BB&T Corporation      
Preliminary Capital Information - Five Quarter Trend          
(Dollars in millions, except per share data, shares in thousands)          
                                           
                                           
                                           
        As of / Quarter Ended  
      Dec. 31   Sept. 30   June 30   March 31   Dec. 31
      2015    2015    2015    2015    2014 
Selected Capital Information                                      
  Risk-based capital: Basel III   Basel I
    Common equity tier 1 $  17,081      $  16,822      $  16,031      $  15,755        N/A  
    Tier 1    19,682         19,422         18,633         18,320      $  17,840   
    Total    23,755         23,612         21,896         21,654         21,381   
  Risk-weighted assets (1)    166,784         165,990         154,493         150,092         143,675   
  Average quarterly tangible assets    209,131         195,623         182,444         180,790         179,785   
  Risk-based capital ratios:                                      
    Common equity tier 1    10.2  %      10.1  %      10.4  %      10.5  %     N/A  
    Tier 1    11.8         11.7         12.1         12.2         12.4  %
    Total    14.2         14.2         14.2         14.4         14.9   
  Leverage capital ratio    9.8         9.9         10.2         10.1         9.9   
  Equity as a percentage of total assets    13.0         13.1         13.2         13.1         13.0   
  Common equity per common share $  31.66      $  31.56      $  30.64      $  30.48      $  30.09   
                                           
Selected non-GAAP Capital Information (2)                                      
  Tangible common equity as a percentage of tangible assets    7.7  %      7.7  %      8.1  %      8.0  %      8.0  %
                                           
  Tangible common equity per common share $  19.82      $  19.77      $  20.21      $  20.13      $  19.86   
                                           
                                           
Calculations of tangible common equity, tangible assets and related measures: (2)
                                           
Total shareholders' equity $  27,340      $  27,264      $  25,132      $  24,738      $  24,377   
Less:                                      
  Preferred stock    2,603         2,603         2,603         2,603         2,603   
  Noncontrolling interests    34         40         52         96         88   
  Intangible assets    9,234         9,198         7,655         7,480         7,374   
Tangible common equity $  15,469      $  15,423      $  14,822      $  14,559      $  14,312   
                                         
Total assets $  209,947      $  208,809      $  191,017      $  189,228      $  186,834   
Less:                                      
  Intangible assets    9,234         9,198         7,655         7,480         7,374   
Tangible assets $  200,713      $  199,611      $  183,362      $  181,748      $  179,460   
                                           
Tangible common equity as a percentage of tangible assets    7.7  %      7.7  %      8.1  %      8.0  %      8.0  %
                                           
Tangible common equity $  15,469      $  15,423      $  14,822      $  14,559      $  14,312   
                                           
Outstanding shares at end of period (in thousands)    780,337         780,150         733,481         723,159         720,698   
                                           
Tangible common equity per common share $  19.82      $  19.77      $  20.21      $  20.13      $  19.86   
(1) Risk-based capital, risk-weighted assets, leverage capital and related ratios for the first quarter of 2015 and later are determined in accordance with the Basel III Standardized Transitional Approach, which became effective January 1, 2015. Amounts and ratios for earlier periods were determined in accordance with Basel I.
(2) Tangible common equity and related ratios are non-GAAP measures.  BB&T's management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation.  These capital measures are not necessarily comparable to similar capital measures that may be presented by other companies.

18

 

BB&T Corporation            
Selected Items & Additional Information                                      
(Dollars in millions, except per share data)                                      
                                             
                                Favorable (Unfavorable)
Selected Items                         Pre-Tax     After-Tax  
                                             
Fourth Quarter 2015                                      
  None                  
                     
Third Quarter 2015                  
  None                                      
                                             
Second Quarter 2015                  
  Gain on sale of American Coastal, excluding goodwill     $  23      $  15   
  Allocation of non-deductible goodwill to American Coastal        (49)        (49)  
    Net loss on sale of American Coastal Other income      (26)        (34)  
                                             
  Loss on early extinguishment of debt Debt extinguishment charges      (172)        (107)  
  Income tax adjustment Provision for income taxes     N/A        107   
                                             
First Quarter 2015                                      
  None                  
                                             
Fourth Quarter 2014                  
  Mortgage reserve adjustments Loan-related expense      (27)        (17)  
  Franchise tax adjustment Other expense      15         9   
  Allowance release related to loan sale Provision for credit losses      24         15   
                         
Third Quarter 2014                  
  Loss on early extinguishment of debt Debt extinguishment charges      (122)        (76)  
  Allowance release related to loan sale Provision for credit losses      42         26   
  Income tax adjustment Provision for income taxes     N/A        50   
                     
Second Quarter 2014                  
  FHA-insured mortgage loan reserve adjustment Other expense      (85)        (53)  
  Mortgage loan indemnification reserve adjustment Loan-related expense      (33)        (21)  
  Income tax adjustment Provision for income taxes     N/A        (14)  
                         
First Quarter 2014                  
  Reallocation of partnership profit rights Noncontrolling interests     N/A        (16)  
                                             
                                             
        As of / Quarter Ended
        Dec. 31   Sept. 30   June 30   March 31   Dec. 31
        2015    2015    2015    2015    2014 
                                             
Selected Mortgage Banking Information                                      
  Income statement impact of mortgage servicing rights valuation:                                      
    MSRs fair value increase (decrease) $  31      $  (89)     $  142      $  (71)     $  (105)  
    MSRs hedge gains (losses)    (24)        94         (119)        81         123   
      Net $  7      $  5      $  23      $  10      $  18   
                                             
  Residential mortgage loan originations $  3,535      $  5,039      $  5,498      $  4,035      $  3,888   
                                             
  Residential mortgage servicing portfolio (1):                                      
    Loans serviced for others    91,132         90,446         89,235         89,192         90,230   
    Bank-owned loans serviced    31,037         32,134         31,927         31,887         32,027   
      Total servicing portfolio    122,169         122,580         121,162         121,079         122,257   
                                             
  Weighted-average coupon rate    4.12  %      4.13  %      4.15  %      4.18  %      4.20  %
  Weighted-average servicing fee    0.286         0.287         0.289         0.291         0.292   
                                             
Selected Miscellaneous Information                                      
  Derivatives notional amount $  67,525      $  72,978      $  76,205      $  77,592      $  72,321   
  Fair value of derivatives, net    178         286         177         185         109   
  Accumulated other comprehensive income related to securities,                                      
    net of tax (2)    (330)        (51)        (148)        8         (99)  
                                         
  Common stock prices:                                      
    High    39.47         41.90         41.70         40.17         39.69   
    Low    34.24         34.73         37.33         34.95         34.50   
    End of period    37.81         35.60         40.31         38.99         38.89   
                                             
  Banking offices    2,139         2,150         1,903         1,875         1,839   
  ATMs    3,181         3,361         3,077         3,026         2,977   
  FTEs (3)    36,059         35,002         32,598         32,109         32,265   
   
                                Quarter Ended   YTD Ended
                            Dec. 31, 2014   Dec. 31, 2014
Impact of Retrospective Adoption of New Accounting Guidance for Affordable Housing Investments  
  Increase to other income                         $  35      $  141   
  Increase to provision for income taxes                            41         161   
    Increase (decrease) to net income                            (6)        (20)  
                                             
  Cumulative impact to retained earnings at end of period                            (49)        (49)  
                                             
(1) Amounts reported are unpaid principal balance.
(2) Includes the impact of the FDIC loss sharing agreements on the acquired securities.
(3) Represents a quarterly average.

19

 

BB&T Corporation            
Non-GAAP Reconciliations                                        
(Dollars in millions, except per share data, shares in thousands)                                        
                                           
      Quarter Ended    
      Dec. 31     Sept. 30     June 30     March 31     Dec. 31  
Efficiency and Fee Income Ratios (1)   2015      2015      2015      2015      2014   
Efficiency ratio - GAAP    62.4  %      64.1  %      69.8  %      60.7  %      58.3  %  
  Effect of merger-related and restructuring charges, net    (1.9)        (3.1)        (1.1)        (0.5)        (0.7)    
  Effect of loss on sale of American Coastal    ―           ―           (0.8)        ―           ―       
  Effect of mortgage reserve adjustments    ―           ―           ―           ―           (1.1)    
  Effect of loss on early extinguishment of debt    ―           ―           (7.1)        ―           ―       
  Effect of franchise tax adjustment    ―           ―           ―           ―           0.6     
  Effect of FDIC loss share accounting    ―           ―           (0.1)        (0.1)        (0.1)    
  Effect of foreclosed property expense    (0.4)        (0.6)        (0.6)        (0.6)        (0.4)    
  Effect of amortization of intangibles    (1.3)        (1.2)        (0.9)        (1.0)        (1.0)    
Efficiency ratio - reported    58.8         59.2         59.2         58.5         55.6     
Fee income ratio - GAAP    39.7  %      39.7  %      43.0  %      42.5  %      42.7  %  
  Effect of loss on sale of American Coastal    ―           ―           0.6         ―           ―       
  Effect of FDIC loss share accounting    2.1         2.4         2.7         3.3         3.5     
Fee income ratio - reported    41.8         42.1         46.3         45.8         46.2     
                                           
                              Year-to-Date Dec. 31  
                            2015      2014   
Efficiency ratio - GAAP                            64.2  %      62.4  %  
  Effect of merger-related and restructuring charges, net                            (1.7)        (0.5)    
  Effect of mortgage loan indemnification reserves                            ―           (0.4)    
  Effect of loss on sale of American Coastal                            (0.2)        ―       
  Effect of mortgage reserve adjustments                            ―           (0.3)    
  Effect of loss on early extinguishment of debt                            (1.8)        (1.3)    
  Effect of franchise tax adjustment                            ―           0.2     
  Effect of FDIC loss share accounting                            ―           (0.2)    
  Effect of foreclosed property expense                            (0.5)        (0.4)    
  Effect of FHA-insured mortgage loan reserve adjustment                            ―           (0.9)    
  Effect of amortization of intangibles                            (1.1)        (0.9)    
Efficiency ratio - reported                            58.9         57.7     
Fee income ratio - GAAP                            41.2  %      41.1  %  
  Effect of loss on sale of American Coastal                            0.2         ―       
  Effect of FDIC loss share accounting                            2.5         3.6     
Fee income ratio - reported                            43.9         44.7     
                   
                Quarter Ended  
              Dec. 31   Sept. 30   June 30   March 31   Dec. 31
Return on Average Tangible Common Shareholders' Equity (2)   2015    2015    2015    2015    2014 
Net income available to common shareholders         $  502      $  492      $  454      $  488      $  551   
Plus: Amortization of intangibles, net of tax            21         18         14         13         14   
Tangible net income available to common shareholders         $  523      $  510      $  468      $  501      $  565   
                                                   
Average common shareholders' equity         $  24,736      $  23,957      $  22,210      $  21,883      $  21,895   
Less: Average intangible assets            9,224         8,666         7,496         7,366         7,385   
Average tangible common shareholders' equity         $  15,512      $  15,291      $  14,714      $  14,517      $  14,510   
Return on average tangible common shareholders' equity            13.37  %      13.23  %      12.76  %      14.00  %      15.45  %
                                                   
                          Year-to-Date Dec. 31,
                          2015    2014 
Net income available to common shareholders                                 $  1,936      $  1,983   
Plus:                                              
  Amortization of intangibles, net of tax                                    66         57   
Tangible net income available to common shareholders                                 $  2,002      $  2,040   
Average common shareholders' equity                                 $  23,206      $  21,280   
Less:                                              
  Average intangible assets                                    8,194         7,388   
Average tangible common shareholders' equity                                 $  15,012      $  13,892   
                                                   
Return on average tangible common shareholders' equity                                    13.34  %      14.68  %
(1) BB&T's management uses these measures in their analysis of the Corporation's performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges.
(2) BB&T's management believes investors use this measure to evaluate the return on average common shareholders' equity without the impact of intangible assets and their related amortization.
                                                                   

 

 20

 



Exhibit 99.3

 
 

Forward - Looking Information This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 19 95, regarding the financial condition, results of operations, business plans and the future performance of BB&T that are based on the beliefs and assumptions of the management of BB&T and the information available to management at the time th at these disclosures were prepared. Words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “projects,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify thes e f orward - looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. Such factors include, but are not limited to, the following:  general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, amo ng other things, a deterioration in credit quality and/or a reduced demand for credit, insurance or other services;  disruptions to the credit and financial markets, either nationally or globally, including the impact of a downgrade of U.S. g ove rnment obligations by one of the credit ratings agencies and the adverse effects of recessionary conditions in Europe;  changes in the interest rate environment and cash flow reassessments may reduce NIM and/or the volumes and values of loans ma de or held as well as the value of other financial assets held;  competitive pressures among depository and other financial institutions may increase significantly;  legislative, regulatory or accounting changes, including changes resulting from the adoption and implementation of the Dodd - Fran k Act may adversely affect the businesses in which BB&T is engaged;  local, state or federal taxing authorities may take tax positions that are adverse to BB&T;  a reduction may occur in BB&T’s credit ratings;  adverse changes may occur in the securities markets;  competitors of BB&T may have greater financial resources and develop products that enable them to compete more successfully t han BB&T and may be subject to different regulatory standards than BB&T;  natural or other disasters could have an adverse effect on BB&T in that such events could materially disrupt BB&T’s operation s o r the ability or willingness of BB&T’s customers to access the financial services BB&T offers;  costs or difficulties related to the integration of the businesses of BB&T and its merger partners may be greater than expect ed;  expected cost savings or revenue growth associated with completed mergers and acquisitions may not be fully realized or reali zed within the expected time frames;  significant litigation could have a material adverse effect on BB&T;  deposit attrition, customer loss and/or revenue loss following completed mergers and acquisitions may be greater than expecte d ;  cyber - security risks, including “denial of service,” “hacking” and “identity theft,” could adversely affect our business and fin ancial performance, or our reputation;  h igher than expected costs related to information technology infrastructure or a failure to successfully implement future syst em enhancements could adversely impact BB&T’s financial condition and results of operations and could result in significant additional costs to BB&T;  f ailure to execute on the Company’s strategic or operational plans, including the ability to successfully complete and/or inte gra te mergers and acquisitions, could adversely impact BB&T’s financial condition and results of operations; and  widespread system outages, caused by the failure of critical internal systems or critical services provided by third parties, co uld adversely impact BB&T’s financial conditions and results of operations. Readers are cautioned not to place undue reliance on these forward - looking statements, which speak only as of the date of this r eport. Actual results may differ materially from those expressed in or implied by any forward - looking statement. Except to the extent required by applicable law or regulation, BB&T undertakes no obligation to revise or update publicly any forwar d - l ooking statements for any reason. Non - GAAP Information This presentation contains financial information and performance measures determined by methods other than in accordance with ac counting principles generally accepted in the United States of America (“GAAP”). BB&T’s management uses these “non - GAAP” measures in their analysis of the Corporation’s performance and the efficiency of its operations. Management believes that these non - GAAP measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods as well as demonstrating the effects of significant gains and charges in the current period. The c omp any believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. BB&T’s management believes that investors may use these non - GAAP financial measures to analyze financial performanc e without the impact of unusual items that may obscure trends in the company’s underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they nece ssa rily comparable to non - GAAP performance measures that may be presented by other companies. Below is a listing of the types of non - GAAP measures used in this presentation:  Tangible common equity and related ratios are non - GAAP measures. The return on average risk - weighted assets is a non - GAAP measure . BB&T's management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation.  The ratio of loans greater than 90 days and still accruing interest as a percentage of loans held for investment has been adjusted to remove the impact of loans that are or were covered by FDIC loss sharing agreements. Management believes that their inclusion may result in distortion of these ratios such that they might not be comparable to other periods presented or to other portfolios that were not impacted by purchase accounting .  Adjusted fee income and efficiency ratios are non - GAAP in that they exclude securities gains (losses), foreclosed property expen se, amortization of intangible assets, merger - related and restructuring charges, the impact of FDIC loss share accounting and other selected items. BB&T’s management uses these measures in their analysis of the Corporation’s per formance. BB&T’s management believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significa nt gains and charges.  Return on average tangible common shareholders’ equity is a non - GAAP measure that calculates the return on average common shareholders’ equity without the impact of intangible assets and their related amortization . This measure is useful for evaluating the performance of a business consistently, whether acquired or developed internally.  Core net interest margin is a non - GAAP measure that adjusts net interest margin to exclude the impact of interest income and fun ding costs associated with loans and securities acquired in the Colonial acquisition and purchased credit impaired (“PCI”) loans acquired from Susquehanna. Core net interest margin is also adjusted to remove the purchase acc oun ting marks and related amortization for non - PCI loans and deposits acquired from Susquehanna. BB&T’s management believes that the adjustments to the calculation of net interest margin for certain assets and deposits acq uir ed provide investors with useful information related to the performance of BB&T’s earning assets. A reconciliation of these non - GAAP measures to the most directly comparable GAAP measure is included in BB&T’s Fourth Quarter 2015 Quarterly Performance Summary, which is available on BB&T’s website at www.bbt.com.

 
 

3 3 2015 Fourth Quarter Performance Highlights 1 ▪ Net income totaled $502 million 2 and diluted EPS totaled $0.64 ▪ Adjusted diluted EPS totaled $0.68 excluding merger - related charges ▪ GAAP ROA was 1.03 % and ROTCE was 13.37 % ▪ Adjusted ROA 3 was 1.09% and adjusted ROTCE 3 was 14.19% Earnings 1 Loans ▪ Average loans and leases held for investment totaled $134.8 billion in 4Q15 vs. $130.5 billion in 3Q15 ▪ Excluding acquisitions 5 , average loans held for investment grew approximately 2.0% annualized vs. 3Q15 ; or 4.5% excluding residential mortgage ▪ Organic loan growth led by C&I, Direct R etail and Equipment Finance Strategic Highlights 1 Returns and linked quarter growth rates are annualized, except credit metrics 2 Available to common shareholders 3 Refer to the Appendix for appropriate reconciliations of non - GAAP financial measures 4 Revenues presented on a taxable equivalent basis ▪ Received regulatory approval for National Penn Bancshares  Expected closing April 1 ▪ Successful systems conversion of Susquehanna Bancshares in November Revenues 4 ▪ Revenues totaled $ 2.6 billion, up $164 million vs. 4Q14, primarily due to the Susquehanna acquisition ▪ Full year revenues totaled $9.8 billion, up 4.1%; record fee income for 2015 ▪ Net interest margin remained stable at 3.35% Expenses 3 ▪ Efficiency improved to 58.8% ▪ Achieved positive operating leverage 5 “Acquisitions” include Susquehanna, Bank of Kentucky, BankAtlantic and certain other smaller acquisition activity

 
 

4 4 Pre - Tax After Tax Diluted EPS Impact Merger - related and restructuring charges $ 50 $ 33 $ (0.04) Selected Items Affecting Earnings ($ in millions, except per share impact)

 
 

5 5 Record Loans Following Successful Acquisitions 1 ▪ Average loan growth, excluding acquisitions 3 , was 2.0% annualized and 4.5% annualized excluding residential mortgage, vs. 3Q15 ▪ Experienced strong loan growth vs. 3Q15 in several categories (excludes acquisitions):  C&I, up 7.8% annualized 3  Direct Retail, up 11.2% annualized 3  BB&T Equipment Finance, up 13.5 % annualized ▪ Loan growth, excluding acquisitions, continues to reflect runoff in residential mortgage ($432 million lower) and sales finance ($406 million decline) 1 Excludes loans held for sale 2 Other lending subsidiaries consist of AFCO/CAFO/Prime Rate, BB&T Equipment Finance, Grandbridge Real Estate Capital, Sheffield Financial, Regional Acceptance, among others 3 Excludes the impact of acquisitions. See non - GAAP reconciliations included in the Appendix. $118.3 $118.8 $120.0 $130.5 $ 134.8 $100.0 $108.0 $116.0 $124.0 $132.0 $140.0 4Q14 1Q15 2Q15 3Q15 4Q15 Average Loans Held for Investment ($ in billions) C&I $ 48,047 13.5% CRE – IPP 13,264 23.8 CRE – C&D 3,766 29.9 Dealer floor plan 1,164 40.6 Direct retail lending 10,896 38.8 Sales finance 10,533 5.6 Revolving credit 2,458 6.1 Residential mortgage 30,334 (0.7) Other lending subsidiaries 2 13,281 13.7 Acquired from FDIC and PCI 1,070 6.8 Total $ 134,813 13.0% 4 Q15 Average Balance 4 Q15 v. 3Q15 Annualized Increase (Decrease) Average Loans Held for Investment ($ in millions) ▪ Oil and gas portfolio totals $1.4 billion, or 1% of total loans  No delinquencies, nonaccruals or losses this quarter ▪ Management expects loan growth of approximately 1% in 1Q16, slowed by seasonal portfolios

 
 

6 6 Improved Deposit Mix and Cost $130.3 $129.5 $131.9 $143.8 $ 148.5 0.25% 0.25% 0.24% 0.24% 0.24% 0.20% 0.25% 0.30% 0.35% 0.40% $105.0 $115.0 $125.0 $135.0 $145.0 $155.0 4Q14 1Q15 2Q15 3Q15 4Q15 Total Interest-Bearing Deposit Cost ▪ Average total deposits grew $4.7 billion, or 12.8% annualized ▪ Excluding acquisitions 1 , average noninterest - bearing deposits increased approximately $800 million; or 7.5% annualized ▪ Excluding acquisitions, average noninterest - bearing deposit mix was 32.3% in 4Q15 vs. 31.7% in 3Q15 1 ▪ Time deposits continue to decline ($650 million lower excluding acquired balances) 1 Average Total Deposits ($ in billions) $39.1 $39.7 $41.5 $44.2 $ 45.8 $30.0 $34.0 $38.0 $42.0 $46.0 4Q14 1Q15 2Q15 3Q15 4Q15 Average Noninterest - Bearing Deposits ($ in billions) Noninterest - bearing deposits $ 45,824 15.0% Interest checking 24,157 27.5 Money market & savings 61,431 14.2 Subtotal $ 131,412 16.9% Time deposits 16,981 3.4 Foreign office deposits – Interest - bearing 98 NM Total deposits $ 148,491 12.8% 4Q15 Average Balance 4Q15 v. 3Q15 Annualized Increase (Decrease) Average Deposits ($ in millions) 1 See non - GAAP reconciliations included in the Appendix

 
 

7 7 Credit Quality Remains Excellent 1,2 ▪ Loans 90 days or more past due and still accruing decreased $69 million vs. 3Q15 ▪ Loans 30 - 89 days increased 13.5% vs. 3Q15  Reflects conversion of Susquehanna mortgage portfolio to MBA methodology ▪ Management expects 1Q16 net charge - offs to be in the range of 35 to 45 bps, reflecting normal retail seasonality ▪ NPAs decreased 4.3% vs. 3Q15  Decline driven by mortgage loan sale (no gain or loss), offset by a methodology change for mortgage and HELOCs ▪ Management expects NPA levels to remain in a similar range in 1Q16 0.42% 0.40% 0.38% 0.36% 0.34% 0.00% 0.20% 0.40% 0.60% 4Q14 1Q15 2Q15 3Q15 4Q15 Total Nonperforming Assets as a Percentage of Total Assets Annualized Net Charge - offs / Average Loans 1 Includes acquired from FDIC and PCI; excludes loans held for sale 2 See non - GAAP reconciliations included in the Appendix 0.39% 0.34% 0.33% 0.32% 0.38% 0.00% 0.20% 0.40% 0.60% 4Q14 1Q15 2Q15 3Q15 4Q15

 
 

8 8 Allowance Coverage Ratios Remain Strong 3.21x 3.60x 3.71x 3.44x 2.83x 2.39x 2.45x 2.55x 2.49x 2.53x 1.00 2.00 3.00 4.00 4Q14 1Q15 2Q15 3Q15 4Q15 ALLL to Net Charge-offs ALLL to NPLs HFI ▪ Coverage ratios remain healthy at 2.83x and 2.53x for the allowance to net charge - offs and NPLs, respectively ▪ The ALLL to loans ratio was 1.07%, compared to 1.08% last quarter  Loan portfolios have a remaining mark of approximately $750 million  Total ACL is $1.55 billion ▪ Oil and gas - related loans reflect an allowance for credit losses of approximately 5%. ALLL Coverage Ratios

 
 

9 9 Net Interest Margin Expected to Increase 3.36% 3.33% 3.27% 3.35% 3.35% 3.20% 3.18% 3.16% 3.15% 3.12% 2.50% 3.00% 3.50% 4.00% 4Q14 1Q15 2Q15 3Q15 4Q15 Reported NIM Core NIM ▪ 4Q15 NIM stable at 3.35% as a result of:  Purchase accounting impact (+3 bps)  Impact from rate, volume and earning asset mix changes ( - 3 bps) ▪ 4Q15 core NIM was 3.12%, down 3 bps vs. 3Q15  Due to lower loan yields and larger balances held at the FRB ▪ Management expects GAAP and core net interest margin to increase modestly in 1Q16, assuming no changes in interest rates ▪ Asset sensitivity decreased slightly from 3Q15 due to investment and borrowing mix changes offset by loan mix and an increase in free funds Net Interest Margin 1 - 0.69% 0.78% 1.58% 2.23% - 0.01% 0.97% 1.89% 2.71% -1.00% 0.00% 1.00% 2.00% 3.00% Down 25 Up 50 Up 100 Up 200 Sensitivities as of 12/31/15 Sensitivities as of 9/30/15 Rate Sensitivities 1 See non - GAAP reconciliations included in the attached Appendix

 
 

10 10 Fee Income Increases 10.8% ▪ Insurance income increased $26 million vs. 3Q15 primarily due to seasonality  Decline vs. 4Q14 results from American Coastal sale ▪ Investment banking and brokerage fees and commissions decreased $14 million due to higher capital markets activity in the prior quarter ▪ Other income was up $15 million primarily due to:  $25 million increase in income related to assets for certain post - employment benefits, which is offset in personnel expense  $12 million improvement in client derivative income Offset by:  A decrease of $20 million in partnership and other investment income 46.2% 45.8% 46.3% 42.1% 41.8% 35.0% 40.0% 45.0% 50.0% 4Q14 1Q15 2Q15 3Q15 4Q15 Fee Income Ratio 1,3 4Q15 4Q15 v. 3Q15 2 Increase (Decrease) 4Q15 v. 4Q14 Increase (Decrease) Insurance income $ 380 29.1 % (7.1) % Service charges on deposits 165 (4.8) 3.1 Mortgage banking income 104 (25.0) (18.8) Investment banking and brokerage fees and commissions 91 (52.9) (18.8) Trust and investment advisory revenues 64 6.3 14.3 Bankcard fees and merchant discounts 56 (7.0) 7.7 Checkcard fees 47 17.6 14.6 Operating lease income 33 12.4 13.8 Income from bank - owned life insurance 27 (27.4) (10.0) FDIC loss share income, net (52) (41.0) (38.1) Securities gains (losses), net - NM NM Other income 3 100 70.0 12.4 Total noninterest income $ 1,015 10.8 % (0.7) % Noninterest Income ($ in millions) 1 Excludes securities gains (losses), the impact of FDIC loss share accounting and other selected items. See non - GAAP reconciliations incl uded in the attached Appendix 2 Linked quarter percentages are annualized 3 Effective 1/1/15, BB&T retrospectively adopted new accounting guidance for Qualified Affordable Housing investments. Prior period infor mat ion has been revised to conform to the current presentation ▪ Management expects modest growth in fee income in 1Q16 led by insurance and investment banking, offset by lower mortgage and service charges on deposits

 
 

11 11 Noninterest Expense Reflects Acquisitions 4Q15 4Q15 v. 3Q15 2 Increase (Decrease) 4Q15 v. 4Q14 Increase (Decrease) Personnel expense $ 893 4.9 % 12.5 % Occupancy and equipment expense 192 19.5 14.3 Software expense 52 15.9 15.6 Loan - related expense 37 (10.4) (47.9) Outside IT services 41 68 .0 51.9 Professional services 29 (122.8) (23.7) Amortization of intangibles 32 41.0 45.5 Regulatory charges 28 47.6 16.7 Foreclosed property expense 11 (105.8) 10.0 Merger - related and restructuring charges, net 50 (139.1) (177.8) Other expense 232 25.5 31.1 Total noninterest expense $ 1,597 0.7 % 14.6 % Noninterest Expense ($ in millions) 1 Excludes certain items as detailed in non - GAAP reconciliation section 2 Linked quarter percentages are annualized 3 Effective 1/1/15, BB&T retrospectively adopted new accounting guidance for Qualified Affordable Housing investments. Prior period infor mat ion has been revised to conform to the current presentation 55.6% 58.5% 59.2% 59.2% 58.8% 50.0% 55.0% 60.0% 65.0% 4Q14 1Q15 2Q15 3Q15 4Q15 Efficiency Ratio 1,3 ▪ Personnel expense increased $11 million vs. 3Q15 primarily due to:  Higher salary expenses from increased headcount from acquisitions and  I ncrease in post - employment benefits Offset by:  Improved expenses related to medical insurance benefits and  A reduction in equity - based compensation due to timing of expense recognition for retirement eligible employees ▪ Other expense increased $14 million primarily due to operating charge - off adjustments, charitable contributions and travel ▪ Average FTEs increased 1,057 primarily due to the Susquehanna acquisition ▪ 4Q15 effective tax rate was 31.7%. Management expects the effective tax rate for 1Q16 to be similar to this quarter. ▪ Management expects 1Q16 expenses to be flat vs. 4Q15 due to higher FICA / employee benefits expenses offset by lower merger - related costs

 
 

12 12 Capital and Liquidity Strength 10.6% 10.5% 10.4% 10.1% 10.2% 9.0% 9.5% 10.0% 10.5% 11.0% 4Q14 1Q15 2Q15 3Q15 4Q15 ▪ The common equity tier 1 ratio was 10.0% on a fully phased in basis. ▪ BB&T’s 4Q15 LCR was 130% driven by strong deposit growth and the acquisitions ▪ BB&T’s 4Q15 liquid asset buffer was 13.5% (high quality liquid assets as a percentage of total assets) 1 C urrent quarter regulatory capital information is preliminary. Risk - weighted assets are determined based on regulatory capital requirements in effect for the period presented. The ratio for periods prior to 2015 is the Tier 1 common equity ratio, which was based on the definition used for the SCAP assessment. This ratio was a non - GA AP measure. BB&T's management used this measure to assess the quality of capital and believes that investors found the measure useful in their analysis of the Corporation. This capital measure was not necessarily comparable to similar capital measures that may be presented by other companies. Management believes this measure was fairly comparable to Common Equity Tier 1 capital, which is required under Basel III . 2 Under Transitional Approach Common Equity Tier 1 1 Basel I Basel III 2

 
 

13 13 ($ in millions) Inc/(Dec) vs 3Q15 Inc/(Dec) vs 4Q14 4 Q15 Comments 3 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics $ 855 331 39 718 157 $ 272 $ 83 (8) 35 26 5 $ 9 $ 125 2 19 73 13 $ 22 ($ in billions) 4Q15 Like Total Commercial Loans Direct Retail Lending Money Market and Savings Noninterest Bearing Deposits 14.1% 27.3% 16.7% 15.9% Link 3 40.9% 66.4% 31.0% 25.3% Change Community Banking Segment ▪ Commercial production increased $617 million, or 16.7%, compared to 4Q14 ▪ Direct Retail Lending production increased $325 million, or 44.7%, compared to 4Q14 ▪ Approximately $47 million of the Net Interest Income increase on a linked quarter basis was attributable to the Susquehanna acquisition ▪ Noninterest Expense increase on a linked quarter basis was primarily due to the Susquehanna acquisition ▪ BB&T has received regulatory approval for its merger with National Penn, which is expected to close April 1, 2016 and systems conversion in the 3 rd quarter Serves individual and business clients by offering a variety of loan and deposit products and other financial services 4 $43.8 $10.1 $44.5 $40.3 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense 3 Linked quarter growth rates annualized except for production 4 Community Bank’s financial results include the impact of the Susquehanna Bank branch performance from the system conversion date of No vem ber 9 th . Prior to conversion the banking performance was included in Other, Treasury & Corporate Segment

 
 

14 14 Retains and services mortgage loans originated by the Residential Mortgage Lending Division and through its referral relation shi p with the Community Bank and referral partners as well as those purchased from various correspondent originators ($ in millions) Inc /(Dec) vs 3Q15 Inc/(Dec) vs 4Q14 4Q15 Comments 4 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics $ 111 79 8 102 31 $ 49 $ (9) (22) 46 (25) (19) $ (33) ($ in billions) 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense 3 Credit quality metrics are based on Loans Held for Investment Change Residential Mortgage Banking Segment $ (5) (14) (2) (3) (4) $ (10) 4 Linked quarter growth rates annualized except for production and sales 4Q15 Link 4 Like Retail Originations $ 1.5 (17.3%) (14.8%) Correspondent Purchases $ 2.0 (37.5%) (3.8%) Total Production $ 3.5 (29.9%) (9.1%) Loan Sales $ 3.1 (36.8%) (16.9%) Loans Serviced for others (EOP) $ 91.1 3.0% 1.0% ▪ The production mix was 58% purchase / 42% refinance in 4Q15 vs . 67% / 33% in 3Q15 ▪ Noninterest income decreased vs. 3Q15 due to lower production ▪ Decrease in net interest income vs. 4Q14 driven by lower HFI balances due to current strategy of selling substantially all conforming originations ▪ Decrease in noninterest expense vs. 4Q14 primarily reflects a charge related to a review of mortgage lending processes in the earlier quarter ▪ Credit quality 3 :  30+ days and still accruing delinquency of 2.70%  Nonaccruals of 0.57%  Net charge - offs of 0.19%

 
 

15 15 Primarily originates indirect loans to consumers on a prime and nonprime basis for the purchase of automobiles and other vehi cle s through approved dealers both in BB&T’s market and nationally (through Regional Acceptance Corporation) Comments 4 ($ in millions) Inc /(Dec) vs 3Q15 Inc /(Dec) vs 4Q14 4Q15 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics 4Q15 Like $ 192 4 78 50 26 $ 42 $ 9 1 11 2 (1) $ (2) $ 20 3 (2) 12 5 $ 8 Retail Loan Production Loan Yield Operating Margin 3 Net Charge - offs $ 1.0 6.57% 74.5% 2.02% (3.3%) (0.37%) (3.5%) 0.10% 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense 3 Operating Margin excludes Provision for Credit Losses 4 Linked quarter growth rates annualized except for production and sales ($ in billions) Link 4 (12.7%) (0.02%) 0.3% 0.18% Change Dealer Financial Services Segment ▪ Asset quality in Dealer Finance continues to exhibit strong performance compared to industry norms  Regional Acceptance continues to perform within management’s risk appetite and seasonal expectations ▪ Regional Acceptance continues to generate solid loan growth  Regional Acceptance average loans increased 5.8% vs. 4Q14 ▪ Hann Financial auto leasing, part of the Susquehanna acquisition, is now included in Dealer Financial Services segment  These balances have started to run off as BB&T has ceased originations in this business  BB&T is expanding indirect auto lending in the Northeast

 
 

16 16 Provides specialty lending including: commercial finance, mortgage warehouse lending, tax - exempt governmental finance, equipment leasing, commercial mortgage banking, insurance premium finance, dealer - based equipment financing, and direct consumer finance Comments 4 ($ in millions) Inc/(Dec) vs 3Q15 Inc /(Dec) vs 4Q14 4Q15 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics 4Q15 Like $ 126 73 12 90 26 $ 71 $ 3 13 2 10 2 $ 2 $ 18 4 (1) 14 3 $ 6 ($ in billions) Loan Originations Loan Yield Operating Margin 3 Net Charge - offs $ 5.0 4.53% 54.8% 0.25% 11.5% 0.12% (2.3%) 0.04% 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense 3 Operating Margin excludes Provision for Credit Losses 4 Linked quarter growth rates annualized except for production and sales 4.7% 0.12% (1.5%) (0.01%) Link 4 Change Specialized Lending Segment ▪ Sheffield Financial’s loan growth continues to be solid:  Average loans increased 14.0% vs. 4Q14  4Q15 production increased 6.9% compared to 4Q14 ▪ Grandbridge continued strong commercial mortgage banking production  4Q15 mortgage banking fees increased $7.7 million compared to 3Q15 ▪ Equipment Finance experienced strong new business volume  4Q15 production increased 7.3% compared to 4Q14

 
 

17 17 Comments 4 ($ in millions) Inc/(Dec) vs 3Q15 Inc/(Dec) 4Q14 4Q15 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics Noninterest Income Number of Stores 3 EBITDA Margin 5 4 Q15 Like Provides property and casualty, life, and health insurance to business and individual clients. It also provides workers comp ens ation and professional liability, as well as surety coverage and title insurance $ 2 388 - 331 23 $ 36 $ (1) 35 - 10 9 $ 15 $ (1) (33) - 8 (13) $ (29) $ 388 197 19.2% (7.8%) (1) (3.6%) Change 39.3% 1 5.3% Link 4 ($ in millions ) Insurance Services Segment 5 Excludes American Coastal and merger related and restructuring charges 6 Excludes American Coastal ▪ BB&T Insurance generated insurance commission revenue 6 growth vs 4Q14:  (0.9%) for Retail / 4.4% for Wholesale  1.6% for Total Insurance ▪ Higher noninterest income vs 3Q15 was primarily due to seasonality in property and casualty commissions ▪ Lower noninterest income vs. 4Q14 quarter was primarily due to the sale of American Coastal ▪ Insurance produced P&C and EB YTD new business growth vs 2014 :  1.8% for Retail / 4.1% for Wholesale  3.3% for Total Insurance ▪ YTD same store sales growth 6 of 1.4% vs 2014 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles, allocated corporate expense, and $2.6 million of one - time merger related charges 3 U.S . Locations, count includes shared locations 4 Linked quarter growth rates annualized except for production and sales

 
 

18 18 Provides trust services, wealth management, investment counseling, asset management, estate planning, employee benefits, corporate banking, and capital market services to individuals, corporations, governments, and other organizations Comments 4 ($ in millions) Inc/(Dec) vs 3Q15 Inc/(Dec) vs 4Q14 4Q15 Net Interest Income Noninterest Income 1 Provision for Credit Losses Noninterest Expense 2 Income Tax Expense Segment Net Income Highlighted Metrics Average Loan Balances Average Deposits Total Invested Assets Invested Assets Noninterest Income ($ in millions ) Operating Margin 3 4 Q15 Like $ 144 220 (3) 202 62 $ 103 $ 10 (10) (24) (9) 12 $ 21 $ 24 (6) (20) - 14 $ 24 $ 14.6 $ 29.9 $ 130.6 $ 131.1 44.5% 1 Noninterest Income includes intersegment net referral fees 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense 3 Operating Margin excludes Provision for Credit Losses 4 Linked quarter growth rates annualized except for production and sales ($ in billions) Link 4 27.5% 6.0% 26.8% 10.2% 2.5% Change 28.6% 9.2% 5 9.8% 5.9% 2.9% Financial Services Segment ▪ Average loan and deposit growth was driven by :  Corporate Banking, which generated - 29.2% loan growth vs . 3 Q15 - 29.2% loan growth vs . 4Q14  BB&T Wealth, which generated - 15.6% loan growth and 20.7% transaction deposit growth vs. 3Q15 - 26.9% loan growth and 17.9% 5 transaction deposit growth vs. 4Q14 ▪ Decrease in noninterest income vs. 3Q15 was driven by lower SBIC partnership income and Investment Banking revenues ▪ BB&T Retirement and Institutional Services received the #1 distinction for client satisfaction for the 2nd year in a row and received 42 Best in Class Awards in the annual PlanSponsor survey ▪ Susquehanna acquisition provided $4.9 billion in invested assets and was the primary driver of the 4Q15 increase 5 Adjusted to exclude the 2015 inclusion of BB&T Wealth trust and other personal deposits residing in commercial products

 
 

19

 
 

20

 
 

Capital Measures 1 (Dollars in millions, except per share data) 1 2 Current quarter regulatory capital is preliminary Risk - weighted assets are determined based on regulatory capital requirements in effect for the period presented 3 4 Tangible common equity and related ratios are non - GAAP measures. BB&T's management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation. These capital measures are not necessarily comparable to similar capital measures that may be presented by othe r c ompanies . Under transitional approach 21 As of / Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2015 2015 2015 2015 2014 Selected Capital Information Risk - based capital: Basel III 4 Basel I Common equity tier 1 $ 17,081 $ 16,822 $ 16,031 $ 15,755 N/A Tier 1 19,682 19,422 18,633 18,320 $ 17,840 Total 23,755 23,612 21,896 21,654 21,381 Risk - weighted assets 2 166,784 165,990 154,493 150,092 143,675 Average quarterly tangible assets 209,131 195,623 182,444 180,790 179,785 Risk - based capital ratios: Common equity tier 1 10.2% 10.1% 10.4% 10.5% N/A Tier 1 11.8 11.7 12.1 12.2 12.4% Total 14.2 14.2 14.2 14.4 14.9 Leverage capital ratio 9.8 9.9 10.2 10.1 9.9 Equity as a percentage of total assets 13.0 13.1 13.2 13.1 13.0 Common equity per common share $ 31.66 $ 31.56 $ 30.64 $ 30.48 $ 30.09 Selected non - GAAP Capital Information 3 Tangible common equity as a percentage of tangible assets 7.7% 7.7% 8.1% 8.0% 8.0% Tangible common equity per common share $ 19.82 $ 19.77 $ 20.21 $ 20.13 $ 19.86

 
 

Non - GAAP Reconciliations 1 22 (Dollars in millions, except per share data) 1 2 Current quarter regulatory capital is preliminary Tangible common equity and related ratios are non - GAAP measures. BB&T's management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation. These capital measures are not necessarily comparable to similar capital measures that may be presented by oth er companies. Calculations of tangible common equity, tangible assets and related measures 2 : Total shareholders' equity $ 27,340 $ 27,264 $ 25,132 $ 24,738 $ 24,377 Less: Preferred stock 2,603 2,603 2,603 2,603 2,603 Noncontrolling interests 34 40 52 96 88 Intangible assets 9,234 9,198 7,655 7,480 7,374 Tangible common equity $ 15,469 $ 15,423 $ 14,822 $ 14,559 $ 14,312 Total assets $ 209,947 $ 208,809 $ 191,017 $ 189,228 $ 186,834 Less: Intangible assets 9,234 9,198 7,655 7,480 7,374 Tangible assets $ 200,713 $ 199,611 $ 183,362 $ 181,748 $ 179,460 Tangible common equity as a percentage of tangible assets 7.7% 7.7% 8.1% 8.0% 8.0% Tangible common equity $ 15,469 $ 15,423 $ 14,822 $ 14,559 $ 14,312 Outstanding shares at end of period (in thousands) 780,337 780,150 733,481 723,159 720,698 Tangible common equity per common share $ 19.82 $ 19.77 $ 20.21 $ 20.13 $ 19.86 As of / Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 2015 2015 2015 2015 2014

 
 

Non - GAAP Reconciliations 1 23 1 BB&T’s management uses these measures in their analysis of the Corporation’s performance and believes these measures pro vide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges. Quarter Ended Dec. 31 Sept. 30 June 30 March 31 Dec. 31 Efficiency and Fee Income Ratios 2015 2015 2015 2015 2014 Efficiency ratio - GAAP 62.4% 64.1% 69.8% 60.7% 58.3% Effect of merger - related and restructuring charges, net (1.9) (3.1) (1.1) (0.5) ( 0.7) Effect of loss on sale of American Coastal - - (0.8) - - Effect of mortgage reserve adjustments - - - - ( 1.1) Effect of loss on early extinguishment of debt - - (7.1) - - Effect of franchise tax adjustment - - - - 0.6 Effect of FDIC loss share accounting - - (0.1) (0.1) ( 0.1) Effect of foreclosed property expense (0.4) (0.6) (0.6) (0.6) ( 0.4) Effect of amortization of intangibles (1.3) (1.2) (0.9) ( 1.0) ( 1.0) Efficiency ratio - reported 58.8% 59.2% 59.2% 58.5% 55.6% Fee Income ratio - GAAP 39.7% 39.7% 43.0% 42.5% 42.7% Effect of loss on sale of American Coastal - - 0.6 - - Effect of FDIC loss share accounting 2.1 2.4 2.7 3.3 3.5 Fee Income ratio - reported 41.8% 42.1% 46.3% 45.8% 46.2% Note: Effective 1/1/15, BB&T retrospectively adopted new accounting guidance for Qualified Affordable Housing investments. Pr io r period information has been revised to conform to the current presentation

 
 

24 1 BB&T’s management believes investors use this measure to evaluate the return on average common shareholders’ equity withou t t he impact of intangible assets and their related amortization. Non - GAAP Reconciliations 1 (Dollars in millions) Quarter Ended Dec. 31 Sept. 30 June 30 March 31 2015 Dec. 31 2014 Return on Average Tangible Common Shareholders' Equity 2015 2015 2015 Net income available to common shareholders $ 502 $ 492 $ 454 $ 488 $ 551 Plus: Amortization of intangibles, net of tax 21 18 14 13 14 Tangible net income available to common shareholders $ 523 $ 510 $ 468 $ 501 $ 565 Average common shareholders' equity $ 24,736 $ 23,957 $ 22,210 $ 21,883 $ 21,895 Less: Average intangible assets 9,224 8,666 7,496 7,366 7,385 Average tangible common shareholders' equity $ 15,512 $ 15,291 $ 14,714 $ 14,517 $ 14,510 Return on Average Tangible Common Shareholders ' Equity 13.37% 13.23% 12.76% 14.00% 15.45% Note: Effective 1/1/15, BB&T retrospectively adopted new accounting guidance for Qualified Affordable Housing investments. Pr io r period information has been revised to conform to the current presentation

 
 

Non - GAAP Reconciliations 1 Quarter Ended Reported net interest margin vs. core net interest margin Dec. 31 2015 Sept. 30 2015 June 30 2015 March 31 2015 Dec. 31 2014 Reported net interest margin - GAAP 3.35% 3.35% 3.27% 3.33% 3.36% Adjustments to interest income for assets acquired: Effect of securities acquired from FDIC (0.03) (0.04) (0.04) (0.06) (0.06) Effect of loans acquired from FDIC and PCI (0.11) (0.07) (0.08) (0.10) (0.11) Effect of purchase accounting marks on non - PCI loans acquired from Susquehanna (0.07) (0.08) - - - Adjustments to interest expense: Effect of purchase accounting marks on time deposits assumed from Susquehanna (0.02) (0.01) - - - Effect of interest expense related to acquired assets - - 0.01 0.01 0.01 Core net interest margin 3.12% 3.15% 3.16% 3.18% 3.20% 25 1 Core net interest margin is a non - GAAP measure that adjusts net interest margin to exclude the impact of interest income and funding costs associated with loans and securities acquired in the Colonial acquisition and purchased credit impaired (“PCI”) loans acquired from Susquehanna. Core net interest margin is also adjusted to remove th e p urchase accounting marks and related amortization for non - PCI loans and deposits acquired from Susquehanna. BB&T’s management believes that the adjustments to the calculation of net interest margin for cert ain assets and deposits acquired provide investors with useful information related to the performance of BB&T’s earning assets

 
 

Non - GAAP Reconciliations 1 26 1 BB&T’s management uses these measures in their analysis of the Corporation’s performance and believes these measures provide a g reater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges. (Dollars in millions) For the Quarter Ended Adjusted return on average assets Dec. 31, 2015 Net income $542 Plus: merger - related and restructuring charges, net of tax 33 Adjusted net income $575 Average assets $209,217 Plus: impact of merger - related and restructuring charges, net of tax 17 Adjusted average assets $209,234 Return on average assets (excluding merger - related and restructuring charges), as adjusted 1.09%

 
 

Non - GAAP Reconciliations 1 27 (Dollars in millions) 1 BB&T’s management uses these measures in their analysis of the Corporation’s performance and believes these measures provide a g reater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges. Adjusted return on average tangible common shareholders’ equity For the quarter ended December 31, 2015 Net Income Available to Common Shareholders $502 Plus: Amortization of intangibles, net of tax 21 Merger - related and restructuring charges, net of tax 33 Adjusted tangible net income available to common shareholders $556 Average common shareholders' equity $24,736 LESS: Average intangible assets 9,224 PLUS: Average merger - related and restructuring charges, net of tax 17 Adjusted average tangible shareholders' equity $15,529 Adjusted return on average tangible common shareholders' equity 14.19%

 
 

Non - GAAP Reconciliations 1 28 1 BB&T’s management uses these measures in their analysis of the Corporation’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges. (Dollars in millions) Loans December 31, 2015 Link Qtr Reported Acquired Adjusted Adj Growth Ann. Commercial and industrial $ 48,047 $ (4,070) $ 43,977 $ 848 7.8 % CRE - income producing properties 13,264 (2,381) 10,883 67 2.5 CRE - construction and development 3,766 (863) 2,903 12 1.6 Dealer floor plan 1,164 - 1,164 108 40.6 Direct retail lending 10,896 (2,255) 8,641 237 11.2 Sales finance 10,533 (1,710) 8,823 (406) (17.5) Revolving credit 2,458 (7) 2,451 37 6.1 Residential mortgage 30,334 (1,828) 28,506 (432) (5.9) Specialized lending subsidiaries 13,281 (744) 12,537 227 7.3 Subtotal 133,743 (13,858) 119,885 698 2.3 Purchased credit - impaired loans (PCI) 1,070 (229) 841 (98) (41.4) Total average loans and leases HFI $ 134,813 (14,087) $ 120,726 $ 600 2.0 % September 30 , 2015 Reported Acquired Adjusted Commercial and industrial $ 46,462 $ (3,333) $ 43,129 CRE - income producing properties 12,514 (1,698) 10,816 CRE - construction and development 3,502 (611) 2,891 Dealer floor plan 1,056 - 1,056 Direct retail lending 9,926 (1,522) 8,404 Sales finance 10,386 (1,157) 9,229 Revolving credit 2,421 (7) 2,414 Residential mortgage 30,384 (1,446) 28,938 Specialized lending subsidiaries 12,837 (527) 12,310 Subtotal 129,488 (10,301) 119,187 Purchased credit - impaired loans (PCI) 1,052 (113) 939 Total average loans and leases HFI $ 130,540 (10,414) $ 120,126 Link Quarter Average Balance Growth Adjusted for Acquisitions

 
 

Non - GAAP Reconciliations 1 29 1 BB&T’s management uses these measures in their analysis of the Corporation’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods, as well as demonstrating the effects of significant gains and charges. (Dollars in millions) September 30 , 2015 Reported Acquired Adjusted Noninterest - bearing deposits $ 44,153 (1,988) $ 42,165 Interest checking 22,593 (2,624) 19,969 Money market and savings 59,306 (3,397) 55,909 Subtotal 126,052 (8,009) 118,043 Time deposits 16,837 (2,949) 13,888 Foreign office deposits - interest - bearing 948 - 948 Total deposits $ 143,837 (10,958) $ 132,879 Deposits December 31, 2015 Link Qtr Reported Acquired Adjusted Adj Growth Ann. Noninterest - bearing deposits $ 45,824 $ (2,860) $ 42,964 799 7.5 % Interest checking 24,157 (3,966) 20,191 222 4.4 Money market and savings 61,431 (4,986) 56,445 536 3.8 Subtotal 131,412 (11,812) 119,600 1,557 5.2 Time deposits 16,981 (3,742) 13,239 (649) (18.5) Foreign office deposits - interest - bearing 98 - 98 (850) NM Total deposits $ 148,491 (15,554) $ 132,937 58 0.2 % Link Quarter Average Balance Growth Adjusted for Acquisitions

 
 

 

BB and T (NYSE:BBT)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more BB and T Charts.
BB and T (NYSE:BBT)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more BB and T Charts.