Slide 1: Second Quarter 2012 Earnings Conference Call
Best Bank In Town Since 1872 Second Quarter 2012 Earnings Conference Call July 19, 2012 Kelly S. King Chairman and Chief Executive Officer Daryl N. Bible Chief Financial Officer Clarke R. Starnes Chief Risk Officer
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking statements with respect to the financial condition results of operations and businesses of BBA&T. Statements that are not historical or current fats or statements about beliefs and expectations are forward-looking statements. Wor
Slide 3: 2012 Second Quarter Performance Highlights
2012 Second Quarter Performance Highlights" apis fe vVVY Net income? totaled $510 million, up 66.1% vs. 2011 EPS totaled $0.72, up 63.6% vs. 2011 Represents record quarterly net income2 Broad-based strong performance across the company's operating segments Total revenues? totaled $2.5 billion, up 20
Slide 4: Continued Strong Loan Growth
Continued Strong Loan Growth Average Loans Held for Investment (Sinbillions) $110 $109.2 $105 $100 2ait 3att 4ait 1012 2012 >» Experienced strong growth in direct retail, sales finance, C&l, mortgage and other lending subsidiaries (e.g. equipment finance, insurance premium finance and consumer finan
Slide 5: Improved Deposit Mix and Cost
Vv Vv Improved Deposit Mix and Cost Average Deposits (Gin bilions) $125.3 0.65% $124.6 $121.9 zat 3am 4Qit 1012-2012 ==Total —d-Interest-Bearing Deposit Cost Strong growth in noninterest-bearing deposits, up 22.6% Effectively reduced deposit cost from 0.72% in 2Q11 to 0.44% in 2Q12 Average CD maturi
Slide 6: Diverse Revenue Mix
Diverse Revenue Mix! Segment Revenue Community > 2Q12 segments produced Banking balanced, diversified revenue stream > Alllines of business performing well and contributing to revenue growth Spee. > We continue to invest in systems ik and resources to drive future revenue growth \ est Mortgage Banki
Slide 7: Strong Profitability Trends
Strong Profitability Trends 14% Return on Average Assets 1.3% 1.2% 1.1% 1.0% 0.9% 0.8% 0.7% 211 3011 411 1012 2a12 Returns on Equity 12.0% 18.85% 15.884 14.36% 80S 13.71% 8.0% 6.0% 4.00% 2a11 -3Q11 4Q11 1012, 2a12 M@MROCE ~l ROTCE' > Continued improvement in profitability towards BB&T’s long-term ob
Slide 8: NPAs Decrease 15.9%, Lowest Levels Since 3Q08
$3,500 $3,000 $2,500 $2,000 $1,500 250% 2.00% 1.50% 1.00% NPAs Decrease 15.9%’ Lowest Levels Since 3Q08 Total Nonperforming Assets! {Sin millions) $3,353 3a 4a 1012 2012 Total Nonperforming Assets as a Percentage of Total Assets! 2.18% 1.83% 1.45% 1.33% 1012 2012 "Excludes covered assets. il ied > 1
Slide 9: Foreclosed Real Estate Decreases 41.5%
Foreclosed Real Estate Decreases 41.5% Sales and Inflows of Foreclosed Real Estate’ $320 (Sin millions) $247 $255 $213 $220 pat > Significant reduction in $143 foreclosed real estate, down $120 41.5% vs. 1Q12 > Successful quarter executing $86 Pa aggressive OREO reduction $20 + strategy 2011 3Q11 4Q
Slide 10: Lower Losses and Strong Reserve Position
Lower Losses and Strong Reserve Position’ 2.00% 1.50% 1.00% 0.50% 1.60x 140K 1.20x 1.00x 0.80x 0.60x + “Core charge-offs Net Charge-offs / Average Loans 2011 3011 4011 1012 2Q12 ™ Writedowns on Transferto LHFS Allowance for Loan and Lease Losses / Nonperforming Loans and Leases Held for Investment 1
Slide 11: Margin Improves
Margin Improves Net Interest Margin 40% 4.02% > Management expects the margin to oom ie ee be in the 3.90% - 3.95% range in 2H12 driven by: Q Improving asset mix as specialized lending grows faster than other 3.50% + portfolios 2a11 3Q1t 4Q11 1012 2Q12 Q Slowing CRE runoff will drive improving asset
Slide 12: Low-Risk Securities Portfolio
Low-Risk Securities Portfolio Portfolio Composition UST & Federal. Agency 22% Other. 19% Vv Vv Vv BB&T plans to be selective in cash flow reinvestment in 2H12 Earning assets are expected to grow more slowly than loans as securities trend lower Duration of securities portfolio is 2.8 years The portfo
Slide 13: Fee Income Growth
Fee Income Growth Fee Income Ratio" 48.0% 44.0% 42.4% 40.0% 36.0% 32.0% + 2011 3a aan 1912 2a12 > Insurance income increased $122 million vs. 1012. Crump insurance produced $77 million of the increase combined with seasonally stronger insurance commissions resulting in a $45 million increase > Mortg
Slide 14: Noninterest Expenses and Efficiency
Noninterest Expenses and Efficiency Efficiency Ratio’ 60.0% 55.8% 55.0% 50.0% + 2011 3011 4Qtt > Produced positive operating leverage > Personnel expense increased $45 million due to a $69 illion increase in personnel costs from the Crump insurance acquisition and higher incentives offset by a $23 m
Slide 15: Capital Strength
Capital Strength’ >» Tier 1 common remains strong following the acquisition of Crump insurance 7 i, > The Tier 1 common ratio for 3Q12, 11.0% eg Commeniete including BankAtlantic, is expected to be approximately 9.5% 10.0% aoc0ee 5 9.8% ove a > BB&T’s currently estimates Tier 1 5 ee a ale common und
Slide 16: Community Banking Segment
Community Banking Segment Net Interest Income $856 $(8) $ (46) > Direct Retail lending increased $1.4 billion, or 9 : 9 Noninterest Income! 323 16 (3) 10.2%, compared with 2Q11 and grew 10.1% compared with 1Q12 roan Lose proweten ee) 2 > Commercial Loan pipeline increased by 35.5% Noninterest Expens
Slide 17: Residential Mortgage Banking Segment
Residential Mortgage Banking Segment Retains and services mortgage loans originated by the Community Banking segment as well as those purchased from various correspondent originators Net Interest Income $92 $4 $30 Noninterest Income! 162 (32) 100 Loan Loss Provision 38 60 (108) Noninterest Expense?
Slide 18: Dealer Financial Services Segment
Dealer Financial Services Segment Primarily originates indirect to consumers on a prime and nonprime basis for the purchase of automobiles and other vehicles through approved dealers both in BB&T’s market and nationally (through Regional Acceptance Corporation) Net Interest Income $ 156 $5 $13 > Rec
Slide 19: Specialized Lending Segment
Specialized Lending Segment 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 Net Interest Inc
Slide 20: Insurance Segment
Insurance Segment Provides property and casualty, life, and health insurance to business and individual clients. It also provides workers compensation and professional liability, as well as surety coverage and title insurance Net Interest Income $- $ (2) $ (1) Noninterest Income! 393 123 96 Loan Los
Slide 21: Financial Services Segment
Financial Services Segment 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 Net Interest Income $112 $5 $24 > High
Slide 22: BB&T
BB&T Investing to drive revenue growth Underlying fundamentals in loan and deposit growth exceptionally strong Successfully accomplishing our diversification and risk mitigation strategies Re-conceptualizing our business to drive revenue and expense optimization Providing best value proposition in o
Slide 23: Best Bank In Town
Best Bank In Town Since 1872 23
Slide 24: Appendix
Appendix
Slide 25: Non-GAAP Capital Measures
Non-GAAP Capital Measures (Dollars in mitions) As of / Quarter Ended ‘June 30 March 31 Dec. 31 Sept. 30 June 30 2012 2012 2011 2011 2011 Selected Capital Information * Risk-based capital Tier 4 $ 12,382 $15,207 $14,913 $14,696 $14,363, Total 16,432 19,342 18,802 18,837 18,641 Risk-weighted assets *
Slide 26: Non-GAAP Capital Measures
Non-GAAP Capital Measures (Dollars in millions) As of / Quarter Ended ‘June 30 March 31 Dec. 31 Sept. 30 June 30 2012 2012 2011 2011 2014 Calculations of Tier 1 common equity and tangible assets and related measures: Tier 1 equity $ 12,382 $15,207 $14,913 $14,696 $14,363 Less: Preferred Stock 559 =
Slide 27: Non-GAAP Capital Measures
Non-GAAP Capital Measures June 30 March 31 (Dollars in millions) 20121 20122 Tier 1 common equity under Basel 1 definition $ 11,823 11,957 Adjustments: ther comprehensive income related to AFS securities, defined benefit pension and other postretirement employee benefit plans (365) (457) Deduction f
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of / Quarter Ended June 30 March 31 Dec.31 Sept. 30 June 30 2012 2012 2011 2011 2011 Asset Quality Ratios (including amounts related to covered loans and covered foreclosed property) Loans 30-89 days past due and still accruing as a percentage of total loans and leases '2
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of / Quarter Ended June 30 March 31 Dec. 31 Sept. 30 June 30 2012 2012 2011 2011 2011 Asset Quality Ratios (excluding amounts related to covered loans and covered foreclosed property)? Loans 30-89 days past due and stil accruing as a percentage of total loans and leases'?
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended June 30 March 31 Dec. 31 Sept. 30 June 30 Efficiency and Fee Income Ratios* 2012 2012 2011 2011 2011 Efficiency ratio— GAAP 579% 59.0% 67.1% 66.1% 64.1% Effect of securities gains (losses), net - (02) 24 (1.0) - Effect of merger-related and restructuring charge
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Doltars in millions) Quarter Ended June 30 March 31 Dec. 31 Sept. 30 June 30 Return on Average Tangible Common Shareholders’ Equity* 2012 2012 2011 2014 2014 Net income available to common shareholders $ 510 $431 $391 $366 $307 Plus: Amortization of intangibles, net of tax
Slide 32: Best Bank In Town
Best Bank In Town Since 1872 32