Slide 1: First Quarter 2011 Earnings Conference Call
First Quarter 2011 Earnings Conference Call April 21, 2011 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 certain forward-looking statements with respect to the financial condition, results of operations and businesses of BB&T. Statements that are not historical or current to facts or statements about beliefs and expectations are forward-looking sta
Slide 3: Non-GAAP Information
Non-GAAP Information This presentation 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 “non-GAAP” measures in their analysis of the Co
Slide 4: 2011 First Quarter Highlights
2011 First Quarter Highlights 1 Strong improvement in earnings 1Q11 net income available to common shareholders of $225 million, up 19.7% compared to 1Q10 1Q11 EPS totals $.32, up 18.5% compared to 1Q10 Solid average loan growth linked quarter 22.7% growth in Residential Mortgage 3.8% gr
Slide 5: Balance Sheet and Revenue Highlights
Balance Sheet and Revenue Highlights C&I vs. CRE mix improvement Growing Niche Lending Businesses 1Q11 new production mix 85% Small ticket consumer C&I / 15% CRE in Community Prime automobile Banking segment Commercial leasing Deposit mix improvement Commercial mortgage Net new tran
Slide 6: Loan Growth Driven by 8.7% Increase in C&I
Loan Growth Driven by 8.7% Increase in C&I Average Loans Held for Investment $110 ($ in billions) $102.6 $102.3 $102.3 $102.4 $102.6 Average Loan Growth Highlights1 ($ in millions) $100 1Q11 vs. 4Q10 1Q11 vs. 4Q10 1Q11 $ Annualized % Average Increase Increase $90 Balance (Decrease) (Decrease) C&I $3
Slide 7: Driving Growth in Lower Cost Deposits
Driving Growth in Lower Cost Deposits Average Client Deposits ($ in billions) $110.0 $104.8 Average Deposit Growth Highlights $102.2 $101.6 $99.9 $99.4 ($ in millions) $100.0 1Q11 vs. 4Q10 1Q11 1Q11 vs. 1Q10 Annualized % $90.0 Average % Increase Increase Balance (Decrease) (Decrease) $80.0 Nonintere
Slide 8: Credit Trends Improve Across the Board For Second Consecutive Linked Quarter
Credit Trends Improve Across the Board For Second Consecutive Linked Quarter1 2.6% Watch list 2.0% NPLs 20.0% Delinquencies2 4.2% OREO 11.3% Performing TDRs 2.7% NPAs 8.3% NPL inflows 24.9% Net charge-offs Credit trends improved for all metrics in the resolution cycle Continuing to aggressively
Slide 9: Inflows of New Problem Assets Clearly Improving
Inflows of New Problem Assets Clearly Improving 1 Total Loans Past Due and Still Accruing ($ in millions) $2,000 $1,500 2.6% decrease in watch list credits on a linked quarter basis $1,577 $1,638 $1,000 $1,488 $1,408 $1,099 Total delinquencies declined $500 20.0% to lowest level in 3 years1 $295
Slide 10: Formation of New Problem Assets Clearly Improving
Formation of New Problem Assets Clearly Improving Total Performing TDRs 1,2 ($ in millions) $2,000 $1,891 $1,715 $1,639 Performing TDRs decreased 11.3% $1,476 $1,500 $1,309 linked quarter Performing commercial TDRs $1,000 decreased 27.2% 73% of TDRs are performing $500 90% of performing TDRs
Slide 11: NPAs Decrease for 4th Consecutive Quarter
NPAs Decrease for 4th Consecutive Quarter Total Nonperforming Assets1 ($ in millions) $4,500 $4,394 Continued strong 1Q11 results in $4,327 NPA disposition strategy $4,300 $4,147 Sold approximately $500 million of $4,100 nonperforming assets this quarter $3,971 $3,900 $3,863 Average sales pric
Slide 12: Charge-offs Decrease Substantially for 2nd Consecutive Quarter
Charge-offs Decrease Substantially for 2nd Consecutive Quarter 1 Net Charge-offs / Average Loans 3.75% Total charge-offs decreased 24.9% 3.00% compared to 4Q10; represents the .60% 1.74% .08% lowest level in two years 2.25% Maintained strong NPL coverage at 1.50% 1.99% 2.06% 2.07% 103%. Allocate
Slide 13: BB&T Operates a Low Risk Mortgage Business
BB&T Operates a Low Risk Mortgage Business Foreclosure process Values-based lending culture – focused on working with clients Recognized by J.D. Power and Associates for “Highest in Customer Satisfaction With Primary Mortgage Servicers”* Completed reviews of servicing processes and standards
Slide 14: Margin Outlook Improves
Margin Outlook Improves Net Interest Margin Margin is benefiting from more favorable 4.20% funding mix, lower cost of funds, and 4.12% 4.09% wider credit spreads 4.04% 4.01% The impact on net interest income related 4.00% to assets acquired in the Colonial transaction was a decrease of $23 milli
Slide 15: Fee Income
Fee Income 45.0% Fee Income Ratio1 Noninterest Income 43.0% ($ in millions) 1Q11 v. 1Q11 v. 42.3% 1Q10 4Q102 41.0% 41.8% Increase Increase 40.8% 1Q11 (Decrease) (Decrease) 39.0% 40.1% Insurance income $ 250 (1.2)% 1.6% 39.0% Service charges on deposits 135 (17.7) (22.7) 37.0% Mortgage banking income
Slide 16: Noninterest Expenses and Efficiency
Noninterest Expenses and Efficiency Efficiency Ratio1 60.0% Noninterest Expense ($ in millions) 57.1% 1Q11 v. 1Q11 v. 55.0% 1Q10 4Q102 55.3% Increase Increase 54.1% 1Q11 (Decrease) (Decrease) 53.7% 52.4% Personnel expense $ 694 7.4% 9.0% 50.0% Foreclosed property expense 143 (19.7) (47.6) Occupancy
Slide 17: Capital Among Industry Leaders
Capital Among Industry Leaders 1 Tier 1 Common Ratio 9.5% 9.3% 9.1% 9.0% 9.0% 8.9% 8.6% Capital levels increased during the 8.5% first quarter BB&T’s internal capital generation is more than adequate to maintain 8.0% 1Q10 2Q10 3Q10 4Q10 1Q11 capital targets BB&T’s current projection of Tier 1
Slide 18: BB&T Among First Group to Increase Dividend
BB&T Among First Group to Increase Dividend Current Dividend Yield of Stress-Tested Banks 1 BB&T received no objection 2.5% 2.4% to our proposed capital plan 2.3% 2.3% from bank regulators We have announced a 2.0% 2.0% target dividend payout of 1.8% 1.8% 30% - 50% of earnings 1.7% 1.6% 1.6% We
Slide 19: BB&T is Well-Positioned for the Future
BB&T is Well-Positioned for the Future We expect meaningful declines in credit costs in coming quarters Our client service metrics and value proposition in our markets are at historic highs Our outlook for loan growth is steadily improving We expect stronger revenues throughout the remainder
Slide 20: Comments Regarding Disclosure
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. These statements constitute “forward-looking
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Capital Measures
Non-GAAP Capital Measures (Dollars in millions) As of / Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2011 2010 2010 2010 2010 Selected Capital Information 1 Risk-based capital Tier 1 $14,100 $13,959 $13,828 $13,594 $13,657 Total 18,385 18,319 18,465 18,327 18,658 Risk-weighted assets 2 1
Slide 23: Non-GAAP Capital Measures
Non-GAAP Capital Measures (Dollars in millions) As of / Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2011 2010 2010 2010 2010 Calculations of Tier 1 common equity and tangible assets and related measures: Tier 1 equity $ 14,100 $ 13,959 $ 13,828 $ 13,594 $ 13,657 Less: Qualifying restric
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2011 2010 2010 2010 2010 Efficiency ratio – GAAP 67.4% 60.9% 57.3% 61.7% 61.2% Effect of securities gains (losses), net - 2.4 5.6 5.1 (.1) Effect of merger-related and restructuring charges, net .1 (.2) (.4) (1.6) (.7)
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of / For the Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2011 2010 2010 2010 2010 Asset Quality Ratios (including amounts related to covered loans and covered foreclosed property)1,2 Loans 30-89 days past due and still accruing as a percentage of total loans
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations As of / For the Quarter Ended March 31 Dec. 31 Sept. 30 June 30 March 31 2011 2010 2010 2010 2010 Asset Quality Ratios (excluding amounts related to covered loans and covered foreclosed property)1,2,3 Loans 30-89 days past due and still accruing as a percentage of total loan
Slide 27: Best Bank In Town
Best Bank In Town OE ince 1872 BB&T Corporation