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Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
Q3 Earning Report of BB&T Corporation
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Q3 Earning Report of BB&T Corporation

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  • 1. BB&T Corporation Superior Relative Performance Investor Presentation Fourth Quarter 2009 Daryl N. Bible Chief Financial Officer
  • 2. Forward-Looking Information This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of BB&T. These forward-looking statements involve certain risks and uncertainties and are based on the beliefs and assumptions of the management of BB&T, and the information available to management at the time that this presentation was prepared. Factors that may cause actual results to differ materially from those contemplated by such forward- looking statements include, among others, the following: (1) 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 or other services; (2) changes in the interest rate environment may reduce net interest margins and / or the volumes and values of loans made or held as well as the value of other financial assets held; (3) competitive pressures among depository and other financial institutions may increase significantly; (4) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which BB&T is engaged; (5) local, state or federal taxing authorities may take tax positions that are adverse to BB&T; (6) adverse changes may occur in the securities markets; (7) competitors of BB&T may have greater financial resources and develop products that enable them to compete more successfully than BB&T; (8) costs or difficulties related to the integration of the businesses of BB&T and its merger partners may be greater than expected, including the integration of our acquisition of Colonial Bank; (9) unpredictable natural or other disasters could have an adverse effect on us in that such events could materially disrupt our operations or the ability or willingness of our customers to access the financial services we offer; (10) expected cost savings associated with completed mergers and acquisitions may not be fully realized or realized within the expected time frames, including our acquisition of Colonial Bank; and (11) deposit attrition, customer loss or revenue loss following completed mergers and acquisitions, including our acquisition of Colonial Bank, may be greater than expected. The forward-looking statements included in this presentation have not been examined or compiled by the independent public accountants of BB&T, nor have such accountants applied any procedures thereto. Accordingly, such accountants do not express an opinion or any other form of assurance on them. Best Bank in Town Since 1872 1
  • 3. Non-GAAP Information This presentation contains financial information 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. BB&T’s management believes that these non-GAAP financial 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 operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. BB&T’s non-GAAP disclosures include cash basis results, which adjust GAAP performance to exclude the amortization of intangibles and purchase accounting mark-to-market adjustments. BB&T’s management uses these measures to evaluate the underlying performance and efficiency of its operations. BB&T’s management believes these measures reflect core trends of the business, excluding purchase accounting amortization that will cease in the future, while the acquired business will remain. Tangible common equity and Tier 1 common equity ratios are Non- GAAP measures. BB&T uses the Tier 1 common equity definition used in the SCAP assessment to calculate these ratios. 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. Best Bank in Town Since 1872 2
  • 4. Investment Highlights Values are the foundation of BB&T. Values drive culture. Culture drives performance. Established history of prudent risk management. Diversified, stable business mix resilient in all operating environments. Uniquely positioned within Southeast landscape amid current turmoil. Proven and disciplined M&A executor. 15 Year Annualized Total Return of 10.6% vs. S&P of 7.6% and Peers of 5.3% Best Bank in Town Since 1872 3
  • 5. BB&T • Overview • Strategically compelling and financially-attractive FDIC-assisted Colonial transaction • Financial Strength – Superior profitability – Sound credit quality – Strong capital and liquidity position • Future Prospects Best Bank in Town Since 1872 4
  • 6. BB&T Corporation* WV MD IN 78 Branches 130 Branches 2 Branches $5.3bn Deposits NYSE Traded BBT $0.08bn Deposits #1 Rank $6.6bn Deposits #6 Rank #90 Rank KY Headquarters Winston Salem, NC 90 Branches DC $4.2bn Deposits 12 Branches $1.2bn Deposits Founded 1872 #3 Rank #7 Rank Market Cap 1 $19.4 billion VA 392 Branches Branches 1,859 $20.0bn Deposits #3 Rank FTEs 32,821 TN Headquarters 57 Branches Winston- $2.6bn Deposits Salem, NC #6 Rank Asset Size $165 billion NC Deposits $114 billion 359 Branches $33.7bn Deposits Loans $107 billion AL #2 Rank SC 93 Branches Total Invested Assets 2 $ 60. billion .2 $5.8bn Deposits 116 Branches $6.3bn Deposits BB&T #4 Rank #3 Rank Clients 6.31million Colonial GA 178 Branches $11.1bn Deposits 1. As of October 15, 2009 #5 Rank 2. BB&T standalone information Committed to Community Banking Model Texas FL • 37 Banking Regions and Regional Presidents 308 Branches Branches: 22 $16.4bn Deposits Deposits: $810 mm • Local decision-making #5 Rank State Rank: 48 • Centralized support systems • Foundation for our sales and service culture model *Deposit Market Share as of June 30, 2009 Best Bank in Town Since 1872 Source: FactSet, SNL Financial 5
  • 7. Culture Matters – Values are Consistent and Important Value System Value System Attract / Hire the Right People Low Turnover Perfect Client Experience High Client Service Scores Revenues Best Bank in Town Since 1872 6
  • 8. Balanced, Diversified Business Model... All the Products that Matter RETAIL COMMERCIAL Asset Management Bank Card Capital Markets Consumer Finance Commercial Finance Home Equity Deep client relationships Commercial Middle Market Home Mortgage Commercial Mortgage Extensive product set Insurance Institutional Trust Services drives cross-sell and Insurance Investment Services wallet share Insurance Premium Finance Payment Solutions International Sales Finance Leasing Small Business Merchant Wealth Management / Payment Solutions Private Banking Payroll Processing Real Estate Lending Supply Chain Management Venture Capital Best Bank in Town Since 1872 7
  • 9. …Offering Less Volatile, More Predictable Revenue and Earnings Stream Diverse Revenue Mix 1 Strong Fee Income Ratio Treasury 45.0 5.6% Financial Services 43.4 8.6% 43.0 Insurance Services 41.3 11.2% 41.0 40.6 40.3 (%) Banking Network Specialized Lending 56.4% 39.1 7.5% 39.0 Sales Finance 1.1% Residential 37.0 Mortgage Banking 9.6% Net Revenue: $4.7 billion for 35.0 1H09 2005 2006 2007 2008 YTD3Q09 1. Net revenue excludes other and parent/reconciling items Best Bank in Town Since 1872 8
  • 10. Successful and Disciplined M&A Integrator As of June 30, 2009, completed 150 acquisitions BB&T M&A deals by year in the past 15 years; 34 bank acquisitions 20 Proven track record of achieving cost savings targets Colonial meets or exceeds all acquisition 16 criteria Criteria Result 12 Expanding and diversifying the franchise in terms of revenues, Meets 8 profitability, and asset size 15% IRR required for bank deals Exceeds 4 Cash EPS accretive by Year 2 Immediate 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1H09 GAAP EPS accretive by Year 3 Immediate Banks Financial Services Insurance Specialized Lending Other Best Bank in Town Since 1872 9
  • 11. Key Areas of Focus for M&A Pursue banks and thrifts with compatible cultures that will enhance BB&T’s banking Banking network and customer delivery system Networks Maintain conservative approach to avoid dilution and risk to balance sheet Completed Haven Trust Bank acquisition 4Q08 from FDIC Important segment in diversifying operations and providing stable fee income business Insurance Extent of segment focus demonstrated with recent acquisitions Services Acquired 12 insurance businesses during 2008 and Q1 2009 Long-term interest in niche markets with products and services that can be offered Specialized through existing distribution system Lending Completed the acquisitions of Cananwill’s US assets and Live Oak Capital in 2009 Consider strategic nonbank acquisitions that are economically attractive and provide Financial long-term benefits Services Acquired Ramsay Title Group on Dec. 31, 2008 Source: Company filings, FactSet and SNL Financial Best Bank in Town Since 1872 10
  • 12. Colonial Transaction Update Strategically compelling and financially attractive transaction enhances BB&T's franchise in key markets Integration: • Merger Charges and Cost Savings (Pretax): – Reducing estimate of merger-related charges to $205 million from $245 million – Confirming annual cost savings of $170 million; expect to achieve full run rate by 4Q10 • Systems Conversions and Other Integration Issues: – Leadership teams in place in new Florida, Alabama and Texas regions – Implemented BB&T’s credit review process for all new loan originations – Converted payroll, securities, fixed assets – Remaining systems to be converted by 2Q10 – Evaluated mortgage-warehouse business and will continue to operate in our footprint – Evaluated association services business and will continue and expand in our footprint – Will have available deposit and loan servicing in all branches for all BB&T/Colonial clients by 4Q09 – Reached agreement to sell 22 branches in Nevada in 1Q10. No material earnings impact expected Loans will stay with BB&T and remain covered by loss share Best Bank in Town Since 1872 11
  • 13. Colonial Transaction Update • Securities: – Sold $2.4 billion of securities acquired – Retained $1.2 billion of non-agency mortgage backed and municipal securities » Non-agency mortgage backed and municipal securities are covered by loss share agreement • Deposits and Long-Term Debt: – Paid off $1.6 billion of higher-cost brokered deposits – $815 million of mortgage warehouse business-related escrows were paid down – Prepaid $2.8 billion of Colonial’s FHLB advances – Used $4.1 billion proceeds from FDIC to reduce BB&T’s borrowings – Client deposit balances are stable • Goodwill and Other Intangibles: – Acquisition resulted in approximately $690 million of goodwill and $176 million of core deposit intangible • Opportunity to sell BB&T’s broad array of banking products and services to the existing Colonial customer base • Anticipated cost savings and integration expense: – Approximately $170 million annual (pre-tax) expense reduction, ~30% of Colonial’s cost base – Merger and integration costs of $205 million (pre-tax) • Financially attractive – Exceeds BB&T merger criteria for IRR and earnings accretion with conservative assumptions – Includes the impact of the capital raise • FDIC loss sharing substantially eliminates credit risk from legacy assets Best Bank in Town Since 1872 12
  • 14. Enhanced Franchise in Alabama, Florida and Georgia Pro forma Alabama, Florida and Georgia footprint Top MSAs(1) ($ in billion) Colonial Pro forma Deposits Deposits Rank Mkt Share Branches MSA Miami $3.2 $3.5 11 2.4% 68 Orlando 2.2 2.5 4 8.0 47 Montgomery 2.0 2.0 1 29.0 11 Tampa / St. Petersburg 1.4 2.7 5 5.8 61 Lakeland 1.1 1.1 2 18.9 12 Birmingham 1.0 1.0 5 4.5 27 State Alabama $5.6 $5.8 4 7.7% 93 Colonial Florida 10.4 14.1 5 3.8 306 BB&T Georgia 0.6 9.4 5 5.1 176 Source: SNL Financial, as of 6/30/08. Best Bank in Town Since 1872 (1) Based upon Colonial’s 6/30/08 deposit geographic profile. 13
  • 15. Total Shareholder Return: BB&T vs. Peers As of September 30, 2009 1 year TSR 3 year TSR 5 year TSR 10 year TSR 15 year TSR 20 year TSR CMA ‐7.4% PNC ‐9.1% PNC 1.5% MTB 5.3% USB 14.8% USB 14.9% 1st  FITB ‐14.3% USB ‐9.3% USB ‐1.4% PNC 2.8% COF 14.7% MTB 13.6% Quartile BBT ‐22.6% BBT ‐9.5% BBT ‐2.6% USB 2.3% MTB 11.8% BBT 10.6% MTB ‐26.4% CMA ‐15.5% MTB ‐5.5% BBT 2.3% BBT 10.6% ZION 10.5% 2nd COF ‐26.7% MTB ‐16.6% CMA ‐8.9% CMA ‐1.3% PNC 8.2% CMA 8.6% Quartile PNC ‐32.3% COF ‐21.2% COF ‐12.2% COF ‐.02% CMA 7.0% PNC 7.9% RF ‐32.7% STI ‐30.7% STI ‐17.2% STI ‐7.1% ZION 6.1% FITB 5.9% 3rd USB ‐37.8% FITB ‐33.1% ZION ‐19.7% KEY ‐8.9% MI 2.5% STI 5.9% Quartile HBAN ‐39.4% ZION ‐37.4% MI ‐21.6% MI ‐7.4% STI 2.3% MI 5.3% KEY ‐44.5% MI ‐38.1% KEY ‐23.9% ZION ‐8.7% FITB 2.3% KEY 2.4% 4th STI ‐48.2% HBAN ‐38.6% FITB ‐24.3% HBAN ‐11.4% KEY ‐1.5% HBAN 2.3% Quartile ZION ‐52.6% RF ‐41.4% RF ‐24.7% FITB ‐10.5% HBAN ‐1.6% RF 0.9% MI ‐58.8% KEY ‐41.5% HBAN ‐24.9% RF ‐10.2% RF ‐3.5% COF NA Average ‐35.1% ‐27.7% ‐15.2% ‐4.6% 5.3% 7.1% S5CBNK ‐25.9% S5CBNK ‐21.1% S5CBNK ‐9.7% S5CBNK ‐0.4% S5CBNK 6.9% S5CBNK NA S5FINL ‐23.4% S5FINL ‐21.9% S5FINL ‐9.5% S5FINL ‐1.4% S5FINL 7.0% S5FINL NA SPX ‐7.0% SPX ‐5.4% SPX 1.0% SPX ‐0.2% SPX 7.6% SPX 8.0% Best Bank in Town Since 1872 14
  • 16. BB&T • Overview • Strategically compelling and financially- attractive FDIC-assisted Colonial transaction • Financial Strength – Superior profitability – Sound credit quality – Strong capital and liquidity position • Future Prospects Best Bank in Town Since 1872 15
  • 17. Financial Strength First Nine Months 2009 Highlights Strong Underlying Performance and Strengthened Balance Sheet Result Commentary Net Income $683mm Strong net interest income growth (up 11.6% from 2008) and margin expansion EPS $0.88 Strong low cost deposit growth Record mortgage production and earnings Record insurance revenues Efficiency Ratio 1 50.2% Pre-tax, Pre- Provision $2,748mm 3% increase Earnings 1 Reserves $2.4bn Increased by $805mm or 87 bps from Q4 2008 Capital Ratios Tier 1 Common: 8.4% Industry leading capitalization Tier 1 RBC: 11.1% Total Capital: 15.6% 1. Excludes securities gains / losses Best Bank in Town Since 1872 16
  • 18. Superior, Stable Net Interest Margin… Stable Net Interest Margin 3Q09 Strong Risk-Adjusted Yield1 (%) 4.00 3.89 3.90 3.80 3.74 4.00 3.83 3.73 3.50 3.38 3.50 3.70 3.05 3.63 3.00 3.71 3.61 2.53 3.60 3.66 3.57 2.50 2.33 2.13 3.52 2.00 1.82 1.76 1.68 1.64 3.50 1.50 0.87 3.40 3.47 1.00 0.50 3.30 3.38 0.00 3.31 H u n tin g to n F ifth T h ird S u n T ru st C a p ita l O n e R e g io n s Z io n s U S B a n co rp C o m e rica BB&T K e y C o rp M&T M&I P NC 3.20 3.10 3.00 2005 2006 2007 2008 1H09 YTD909 1Net BBT Peers interest income less net charge-offs as a percentage of Earning Assets Peer data based on June 30, 2009 Best Bank in Town Since 1872 17
  • 19. … and Delivering all Components of Profitability… Strong Efficiency Ratio Strong Fee Income Ratio1 (%) (%) 61.0 48.0 57.7 59.2 56.4 57.0 55.3 56.0 44.0 43.4 53.0 41.3 53.2 40.3 40.6 40.7 51.4 50.9 40.0 40.7 49.0 50.5 50.2 40.1 39.2 39.2 37.9 45.0 36.0 2005 2006 2007 2008 YTD909 2005 2006 2007 2008 YTD909 BBT Peers BBT Peers 1Cash basis excludes securities gains / losses Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION – Data based on June 30, 2009 Source: SNL and Company Reports Best Bank in Town Since 1872 18
  • 20. … Drives Strong Earnings Power… Consistent Long-Term Best in Class Earnings Power1 Pre-tax, Pre-provision ROA2 4.00 2.80 3.4 2.60 3.50 3.1 2.60 2.45 2.41 2.44 3.00 2.8 2.42 2.7 2.39 2.6 2.40 R 2.3 G 2.50 A 2.1 ($ billion) C 2.20 2.23 4% 2.00 2.21 (%) . 1.7 22 2.13 1.4 2.00 1.50 1.1 1.80 1.00 0.8 0.7 1.79 0.5 0.4 0.4 1.70 0.50 0.2 1.60 0.00 1.40 1993 1996 1999 2002 2005 2008 2005 2006 2007 2008 1H09 YTD090 BBT Peers 1. Pre-tax, pre-provision earnings 2. Pre-tax, pre-provision earnings / Avg. Assets Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION - Data based on June 30, 2009 Source: SNL and Company Reports Best Bank in Town Since 1872 19
  • 21. … and Industry Leading Returns Superior ROA Superior ROACE 20.0 2.00 16.1 1.58 14.2 14.3 1.60 1.46 15.0 1.37 15.0 1.47 11.4 1.20 1.34 1.11 13.4 10.0 (%) 1.05 10.5 (%) 0.80 0.71 5.8 0.60 5.1 5.0 0.40 0.0 0.00 -0.12 -1.5 -0.27 -2.9 -0.40 -5.0 2005 2006 2007 2008 1H09 YTD909 2005 2006 2007 2008 H109 YTD909 BBT Peers Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION – Data based on June 30, 2009 Source: SNL and Company Reports Best Bank in Town Since 1872 20
  • 22. Superior Profitability Flight to Quality and Colonial Transaction Have Driven Loan and Deposit Growth Average Loans Average Deposits 104.0 103.3 110.0 107.0 h th wt 102.0 ow 105.0 ro Gr % G 7% .2 7. 19 99.7 99.6 ($ billion) ($ billion) 100.0 100.0 94.4 93.9 98.0 97.2 95.0 92.0 95.9 90.0 96.0 90.0 94.0 85.0 92.0 80.0 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 Loan growth has been 1.6% excluding acquisitions Deposit growth has been 7.9% excluding acquisitions Best Bank in Town Since 1872 Source: Company Reports 21
  • 23. Sound Credit Quality BB&T Difference: Values Drive Credit Strategy • Strategy, structure and process matter – Adherence to practices, policies and procedures – Company-wide accountability for credit • BB&T’s conservative lending strategy has not waivered • Key points of differentiation – Better client selection and long-standing relationships – Underwriting discipline – Geographic diversification – Product mix – Granularity – Strict house limits – Strong analytical capabilities and workout team • Continue to leverage BB&T’s risk management strengths to manage through the cycle and drive superior long-term, risk-adjusted returns Best Bank in Town Since 1872 22
  • 24. BB&T’s Long Term Lending Strategy Strategy Execution Portfolio Results Corporate values drive strategy Select clients that identify with Lower risk; broader, deeper and “value” promise more profitable relationships Relationship focused Target market = prime credit Very little sub-prime exposure Originate to hold Work through problems vs. quick charge-off Compete on value, not price Maintain risk-based pricing Better risk-adjusted returns (vs. discipline peers) Serve local communities in Target market = local In footprint portfolio Southeast Branch based delivery High % direct origination loans Deliver sustainable, predictable Intense focus on transaction risk Very granular exposure results over the long term mitigation High % of loans secured and Avoid “trendy” lending and control guaranteed exposure in “hot” markets No concentrations, except SFR RE Traditional, non-exotic products Best Bank in Town Since 1872 23
  • 25. BB&T’s Long Term Lending Strategy (continued) Strategy Execution Portfolio Results Everyone in lending process is Chief Risk Officer involved in No surprises (“we know what’s accountable transaction approvals, problem going into the portfolio”) loans and approves charge-offs > Conservative transactions $100k Lenders “own the loan” Concurring co-approval (2 signatures) One company Shared culture, objectives and Balanced quality, profitability and incentives for credit and sales growth Consistent training, lending tools and systems Improve financial security of clients Don’t do if you don’t understand it Increased customer willingness and or can’t define client benefit ability to pay Lower losses (frequency and severity) Best Bank in Town Since 1872 24
  • 26. What’s Not in the Portfolio Loans in high risk geographies outside Exotic products our footprint – No Option ARMS, negative – No exposure to CA, NV, AZ (sand states), rust amortization, reverse mortgages belt, or Northeast – Limited low doc (risk layered) mortgages, sub-prime mortgages Loans generated through high risk – No CDS business models – No leveraged finance – No “stand alone” national products exposure – No large condo, other CRE projects – No 3rd party/broker channel exposures in – No large PUDs home equity, CRE – No fully underwritten syndicated Re-intermediation risk loans (best efforts only) – No SIVs, other off balance sheet portfolios – No covenant lite or enterprise value – No “hung loans” from originate-to-distribute corporate loans capital markets structured product businesses, e.g., RMBS, CMBS, CDO/CDO2 Large counterparty exposures – No large ones; limits very similar to Risky securities valuation marks Commercial segment – Investment portfolio used for liquidity & interest rate risk management, not leverage Best Bank in Town Since 1872 25
  • 27. Sound Credit Quality Benefits of Differentiated Risk Management Credit quality consistent relative to peers in good times Superior in challenging times Nonperforming Loans / Loans Net Charge-offs/Average Loans1 3.00% 3.00% 2.75% 2.50% 2.50% 2.40% 2.38% 2.02% 2.08% 2.00% 2.00% 1.70% 1.73% 1.50% 1.50% 1.39% 1.43% 1.00% 0.84% 1.00% 0.89% 0.50% 0.39% 0.36% 0.50% 0.30% 0.27% 0.38% 0.55% 0.31% 0.26% 0.35% 0.31% 0.25% 0.00% 0.00% 2005 2006 2007 2008 6/30/09 9/30/2009 2005 2006 2007 2008 1H09 YTD909 BB&T Peers BB&T Peers Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION – data based on June 30, 2009 1Excludes covered loans Best Bank in Town Since 1872 26
  • 28. Sound Credit Quality Maintaining Strong Reserves Reserves / Loans Reserves /Nonperforming Loans 3.00% 220% 2.80% 200% 2.60% 2.49% 180% 2.17% 2.19% 2.20% 170% 2.04% 144% 140% 124% 1.80% 1.94% 115% 111% 1.62% 108% 1.56% 124% 1.43% 100% 101% 1.62% 1.40% 1.28% 92% 1.45% 99% 1.33% 92% 87% 84% 81% 1.19% 1.00% 1.10% 60% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 BB&T Peers BB&T Peers Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION – Data based on June 30, 2009 1Excludes covered loans Best Bank in Town Since 1872 27
  • 29. Sound Credit Quality Our Loan Portfolio Reflects Our Approach $107.0 Billion Total Loans1 Diversified Geographic Mix Diversified Product and Channel Mix Other Covered Loans WV 7% 8% 4% SFR ADC C&I 6% TN 3% 29% KY 4% Other CRE NC 12% MD/DC 28% 9% VA Sales Finance SC GA 17% 6% 8% LHFS 12% 3% Revolving Credit 2% FL 8% Specialized Lending Direct Retail Lending 7% 13% Mortgage 14% Total Commercial: 50% Total Retail: 50% 1. Includes Loans Held for Sale Best Bank in Town Since 1872 28
  • 30. Sound Credit Quality Results of Exceptional Firm-wide Risk Management Lower risk balance sheet Superior credit performance relative to peers Stable net interest margin – limited interest rate risk Investment portfolio emphasizes liquidity – credit risk is taken in the loan portfolio Solid core funding and liquidity Controlled operating risk Strong capital position Best Bank in Town Since 1872 29
  • 31. Superior Capital Levels vs. Peers 10.0% Tier 1 Common Ratio 8.9% 8.5% 8.4% 8.4% 8.0% 7.6% Strong historic 7.2% 7.1% 7.4% 7.0% focus on common 7.0% equity component 6.0% 6.5% of capital 6.0% 6.0% 4.0% 2004 2005 2006 2007 2008 2Q09 3Q09 BBT Peers 14.0% Tier 1 Capital Ratio1 18.0% Total Capital Ratio1 17.4% 12.3% 16.0% 15.2% 15.6% 12.0% 14.6% 14.3% 14.2% 14.4% 11.2% 15.1% 11.1% 14.0% 10.6% 14.3% 10.6% 10.0% 9.2% 9.3% 9.0% 9.1% 12.0% 12.6% 12.0% 12.0% 8.9% 8.0% 11.2% 8.3% 8.2% 10.0% 7.5% 6.0% 8.0% 2004 2005 2006 2007 2008 2Q09 3Q09 2004 2005 2006 2007 2008 2Q09 3Q09 BBT Peers BBT Peers 1. 2Q09 reflects TARP repayment for BB&T and applicable peers Peers include CMA, COF, FITB, HBAN, KEY, MI, MTB, PNC, RF, STI, USB and ZION – data based on June 30, 2009. Current quarter regulatory information is preliminary. Tangible common equity and Tier 1 common equity ratios are Non-GAAP measures. BB&T uses the Tier 1 common equity definition used in the SCAP assessment to calculate these ratios. 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. Risk-weighted assets are determined based on regulatory capital requirements. Under the regulatory framework for determining risk-weighted assets, each asset class is assigned a risk-weighting of 0%, 20%, 50% or 100% based on the underlying risk of the specific asset class. In addition, off balance sheet exposures are first converted to a balance sheet equivalent amount and subsequently assigned to one of the four risk-weightings. 30
  • 32. Strong Capital Position Dividends are Core to BB&T Decision to reduce dividend 68% to $0.15 quarter was difficult, but prudent – Saves ~$725 million of capital annually – 65 bps of Tier 1 Common Repaying TARP allows us to revisit dividend level as soon as appropriate Management and Board understand importance of the dividend to all shareholders – New level of dividend right for the times Best Bank in Town Since 1872 31
  • 33. BB&T • Overview • Strategically compelling and financially-attractive FDIC-assisted Colonial transaction • Financial Strength – Superior profitability – Sound credit quality – Strong capital and liquidity position • Future Prospects Best Bank in Town Since 1872 32
  • 34. Future Prospects Superior profitability and balanced performance Best positioned for return to fundamental banking – Benefit from flight to quality Experienced management focused on driving results – Executive Management average years of experience with BB&T is 28 – Team’s average age is 50 – Team members have essentially all their net worth invested in BB&T Our business model and consistent strategy have been proven in all operating environments Achieving greater efficiencies is fundamental to long-term success Maintain focus on revenue generation and long-term future – Will continue to lend and invest in people and technology Best Bank in Town Since 1872 33
  • 35. Comments Regarding Disclosure BB&T Corporation does not provide earnings guidance, but does discuss trends regarding the factors that influence potential future performance in both its quarterly earnings release and its quarterly earnings conference call. Subsequent to the discussion of such information in any quarterly earnings release, BB&T undertakes no responsibility to update that information should facts and circumstances change. This presentation repeats information that has been previously disclosed. It should not be interpreted as providing new information, nor as confirming or updating previous disclosures. Best Bank in Town Since 1872 34
  • 36. Appendix Reconciliations of Non-GAAP Financial Measures
  • 37. Cash-Basis Results Sept. 30 2009 2008 2007 2006 2005 Efficiency ratio - GAAP 54.3 % 52.0 % 53.9 % 55.6 % 53.3 % Effect of securities gains (losses), net 1.6 .7 - (.6) - Effect of merger-related and restructuring charges, net (.5) .1 (.3) (.3) .2 Effect of foreclosed property expense (3.3) (1.2) (.5) (.3) (.4) Effect of amortization of intangibles (1.2) (1.4) (1.5) (1.6) (1.9) Effect of other special items (.7) .7 (.2) .4 (.7) Efficiency ratio - reported 50.2 50.9 51.4 53.2 50.5 Fee income ratio - GAAP 45.1 % 42.5 % 41.3 % 39.9 % 39.2 % Effect of securities gains (losses), net (1.7) (.8) - .7 - Effect of Visa ownership gains - (.6) - - - Effect of leveraged lease settlement - (.4) - - - Fee income ratio - reported 43.4 40.7 41.3 40.6 39.2 36
  • 38. BB&T Corporation Established 1872 Best Bank in Town Since 1872

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