Truist Financial Corporation · NYSE:TFC
Truist Financial — BB&T — Investor Day (February 2006)
67 slides from Truist Financial's investor day presentation, Feb 15, 2006
Slide 1: Targeted Performance
ws BB&T TARGETED PERFORMANCE RICKY BROWN Banking Network Manager Way . x = 2006 Analyst Conference X February 14, 2006
Slide 2: Agenda
AGENDA We ~~ © Organic Growth Strategies * Community Banking ¢ Metrics by State * Performance Variation ¢ Performance Trends — De novo branching — Sales — Service
Slide 3: Community Banking
COMMUNITY BANKING * Concept is the foundation for local decision making ¢ Allows personal, responsive, reliable and empathetic client service ¢ Advantaged over a community bank because we have resources of a large organization — Better trained employees — More sophisticated technology — Superior pro
Slide 4: Slide 4
Slide 5: Branches by State
BRANCHES BY STATE STATE # OF OFFICES # OF CITIES # OF COUNTIES NC 334 195 75 sc 99 56 24 VA 404 200 80 DC 9 1 MD 127 80 19 GA 119 79 51 KY 92 38 wy 80 49 ™N 47 30 14 AL 2 2 1 IN 1 1 1 FL 90 34 26 TOTAL 1,404 785 342
Slide 6: Ricky Brown
RICKY BROWN Banking Manager MANAGER REGIONAL BRANCH OPERATIONS MANAGER SENIOR CREDIT OFFICER CORPORATE BANKER
Slide 7: Group/State Presidents
GROUP/STATE PRESIDENTS ¢ Mission —To assume a leadership role in defining, shaping, and delivering the client and employee experience of BB&T that results in double digit revenue growth. « Administrative role —Reduce Banking Manager’s direct reports — Provide leadership for Regional Presidents
Slide 8: Group/State Presidents
GROUP/STATE PRESIDENTS ¢ Leadership role —Learn and demonstrate the expectations important to the client and the employee — Integrate expectations and knowledge learned with other areas of the bank — Proactively define and influence strategic initiatives — Actively execute the developed strategic in
Slide 9: Regional Presidents
REGIONAL PRESIDENTS ¢ Chief integrator, coach and leader ¢ Sales and service manager of all client segments — Private Banking * $250,000 - $1,000,000 income producing assets + 1.23% of total retail households —Core Retail + All other retail households * Segmented into 5 Life Stage Segments * 98.6% o
Slide 10: Regional Presidents
REGIONAL PRESIDENTS — Corporate Business * Segment qualifications (any of the following) — Sales >$50MM — Loans $10MM+ — Deposits $2.5MM+ * 1% of total business households —Commercial Business ¢ Segment qualifications (any of the following) — Sales $5MM - $50MM — Loans $1M - $10MM — Deposits $250K -
Slide 11: Regional Presidents
REGIONAL PRESIDENTS — Small Business + Segment qualifications (any of the following) — Sales $500K - $5MM — Loans $100K - $1MM — Deposits $100K - $250K — Business DDA > $50K ¢ 19% of total business households — Micro Business + All other business households * 77% of total business households
Slide 12: New Partnership
NEW PARTNERSHIP BETWEEN BANKING NETWORK, MARKETING AND OPERATIONS
Slide 13: New Partnership Roles
NEW PARTNERSHIP ROLES ¢ Marketing — Sales and service support * Operations — Process support for sales and service ¢ Banking Network —Client sales and service delivery
Slide 14: Channel Management
CHANNEL MANAGEMENT The Banking Network does not stand alone Growing more dependent on: —Call Center direct calling and fulfillment —E-Banking/Online Banking improved capabilities —ATM Network and its expanded capabilities
Slide 15: Metrics by State
METRICS BY STATE
Slide 16: Regions by State Key
REGIONS BY STATE KEY « NORTH CAROLINA + VIRGINIA — Triangle — Hampton Roads — Western — Blue Ridge — Triad — Virginia South Central — Charlotte Metro — Central Virginia — Southeast — Southwest Virginia — Eastern « WEST VIRGINIA — South Central — West Virginia Central — Northeast — West Virginia Nort
Slide 17: Regions by State Key
REGIONS BY STATE KEY « MARYLAND « GEORGIA — Baltimore — North Atlanta — Chesapeake — South Atlanta “DC. — Mid-South — Washington. D.C. — North Georgia — Fairfax « KENTUCKY — Battlefield — Louisville Metro ¢ FLORIDA — Western Kentucky — Gulf Coast — Central Kentucky — North Florida — East Florida
Slide 18: Total Deposits
17,853 NC TOTAL DEPOSITS Dollars in Millions @anking Network = 63,812) I CORE STATES C1 NEW STATES 10,317 9,505 4926 4,803 1.447 VA pe GA sc WY MD KY FL
Slide 19: Total Deposits per FTE
TOTAL DEPOSITS PER FTE Dollars in Thousands @anking Network Average = 4,590) 7,000 + 6498 6,000 +} I CORE STATES C] NEW STATES 5,000 + 4808 4748 4602 4.601 4,62 J 3978 3.941 4,000 1 3,854 3,162 De NC w Mo sc VA FL KY GA 1N
Slide 20: Deposit Production per Selling FTE per Month
DEPOSIT PRODUCTION PER SELLING FTE PER MONTH Dollars in Thousands (Banking Network Average = 182) 32 I CORE STATES CI] NEW STATES 214 207 193 194 169 163 461 Wea | 139 Dc FL KY SC GA NC MD Ww TN VA
Slide 21: Total Loans
18,003 TOTAL LOANS Dollars in Millions @anking Network = 52,248) I CORE STATES C1 NEW STATES 6912 5,156 S788, ar18 I 215T 2616 7351 2.326 1,523
Slide 22: Total Loans per FTE
TOTAL LOANS PER FTE Dollars in Thousands @anking Network Average = 3,758) 5,000 7 see See I CORE STATES 4,000 son CL] NEW STATES 3319 3128 3,070 3,000 2823 2.789 An 2,000 + 1,000 0+ Ne sc GA oe 1™N FL w MD VA Ky
Slide 23: Gross Commercial Loan Production per Lender per Month
4,000 GROSS COMMERCIAL LOAN PRODUCTION PER LENDER PER MONTH Dollars in Thousands (Banking Network Average = 3,068) 7 3742 3,500 + 3,000 + 2,500 + 2,000 + 1,500 + 1,000 + 500 + 0+ NC 3441 3377 3412 3,099 salen THE} I CORE STATES C1 NEW STATES 2577 2.418 2,020 sc we GA pe VA 1N KY MD FL
Slide 24: Number of Commercial Loans Produced per Lender per Month
SCANHwoETANDMOS SS NUMBER OF COMMERCIAL LOANS PRODUCED PER LENDER PER MONTH oanting Network average = 5.85) T 9.33 9.27 I CORE STATES C1 NEW STATES Ur sc NC 1N w VA KY GA FL MD pe 6.63 6.14
Slide 25: Gross Small Business Loan Production per Lender per Month
700 + 600 + 500 + GROSS SMALL BUSINESS LOAN PRODUCTION PER LENDER PER MONTH Dollars in Thousands (Banking Network Average = 509) 695 619 609 554 ok 451 412 I CORE STATES C1 NEW STATES 364354 a
Slide 26: Number of Small Business Loans Produced per Lender per Month
NUMBER OF SMALL BUSINESS LOANS PRODUCED PER LENDER PER MONTH panting Network average = 3.04) eee I CORE STATES CI] NEW STATES 2.63 244 186 1.67 0.93 GA w NC sc VA 1N KY Mp FL pe
Slide 27: Retail Loan Production per Lender per Month
RETAIL LOAN PRODUCTION PER LENDER PER MONTH Dollars in Thousands (Banking Network Average = 394) 500 pe ee 439 I CORE STATES 400 + 30 ay C1 NEW STATES 343 300 303 301 297 SKA 200 + 100 + 04 Ne De sc FL w MD VA GA 1™N KY
Slide 28: Number of Retail Loans Produced per Lender per Month
NUMBER OF RETAIL LOANS PRODUCED PER LENDER PER MONTH (Banking Network Average = 7.8) 97 i CORE STATES Cay, LJ NEW STATES J 104 68 68 62 64 6.0 53 wy Ne sc KY VA GA pe 1N MD FL
Slide 29: Mortgage Loan Production per Lender per Month
MORTGAGE LOAN PRODUCTION PER LENDER PER MONTH Dollars in Thousands (Banking Network Average = 1,341) 2,200 + 2.118 2,000 +! I CORE STATES 1,800 + 1,668 LI NEW STATES 1,600 + 1,400 + 1254 1,244 1,194 wy Ss Ss 1,038 826 600 +) ae 400 + | | Dc NC FL sc w MD VA 1N GA KY
Slide 30: Number of Mortgage Loans Produced per Lender per Month
NUMBER OF MORTGAGE LOANS PRODUCED PER LENDER PER MONTH anting Network Average = 6.6) o4 i I CORE STATES 8 il C NEW STATES 7 65 64 64 64 64 i [| 45 an il | 5 4 3 | al a] 0 wv NC FL sc 1™N VA pc wp GA KY
Slide 31: Net Revenue per FTE
NET REVENUE PER FTE Dollars in Thousands @anking Network Average = 340) 500 + Pa a7 att wf li CORE STATES 4 L NEW STATES 330 ie ae 300 4 278 242 734 232 200 + 100 + 0+ NC De sc GA w MD VA KY 1N FL
Slide 32: Net Revenue per Branch
NET REVENUE PER BRANCH Dollars in Thousands (anking Network Average = 3,362) 5,000 - a 4,500 - 4368 4308 4,000 - 3,500 + Be | 2531 2401 336 , = 2,452 IB CORE STATES 3462 3,432 C] NEW STATES 1,992
Slide 33: Efficiency Ratio
EFFICIENCY RATIO (Banking Network = 40.41%) % 9 60.00% CORE STATES , 56.70% 50,00% + [1 NEW STATES 49.59% — ao07% 423%, 287% MOHe 40.00% - Pye eh 30.00% + 20.00% + 10.00% + 0.00% ' po 86NC) | 6SC)|6OWVCOGAsCSAMDKY, TNL
Slide 34: Return on Equity
40.00% + 30.00% 20.00% 10.00% RETURN ON EQUITY (Banking Network = 30.58%) 38.18% li CORE STATES pee 2255% CL) NEW STATES 30.71% 30.42% 28.87% 25.96% 21.91% 19.88% 17.13% 0.00% De Ne sc wD VA WGA KY 1N FL
Slide 35: Performance Variation: Core Regions vs. New
- PERFORMANCE VARIATION CORE REGIONS VS
Slide 36: Retail Loan and Mortgage Loan Production per Lender
RETAIL LOAN PRODUCTION PER LENDER PER MONTH (Dollars in Thousands) MORTGAGE LOANS CLOSED PER LENDER PER MONTH @ollars in Thousands) 500 oi 304 4005 346 300 200 | 100 | o+ New Core Banking Network 2,000 1,598 1,500 ‘ foes 1,341 1,000 500 New Core Banking Network
Slide 37: Small Business and Commercial Loans per Lender
SMALL BUSINESS COME TOUSE LOANS LOANS CLOSED PER CLOSED PER LENDER LENDER PER MONTH PER MONTH (ollars in Thousands) (Dollars in Thousands) 600 581 Pe 3,674 509 J 3,068 500 460 3,000 -| 2,757 400 2,500 4 a 2,000 1,500 a 1,000 100 500 0 0 New Core Banking New Core Banking Network Network
Slide 38: Net Revenue per FTE; 5+ Services Households
NET REVENUE PER 5+ SERVICES FTE HOUSEHOLDS @ollars in Thousands) 410 35.00% 400 340 30.00% 303 300 25.00% 20.00% 200 15.00% 10.00% 100 5.00% 0 = 0.00% + New Core Banking New Core Banking Network Network
Slide 39: Net Revenue per Branch; Return on Equity
NET REVENUE PER RETURN ON BRANCH EQUITY @ollars in Thousands) 4,500 4,466 35.00% ae 30.58% 4,000 3,362 30.00% + 28.30% 3,500 e 2 25.00% 3,000 2,863 2.500 20.00%. 2,000 15.00% ‘ipebo 10.00% 1,000 500 5.00% 0 0.00% + New Core Banking New Core Banking Network Network
Slide 40: Performance Trends: New Region Improvement
We PERFORMANCE P TRENDS ~ NEW REGION IMPROVEMENT (Excluding Florida)
Slide 41: New Region Improvement
NEW REGION IMPROVEMENT NET REVENUE PER NON-INTEREST INCOME BRANCH PER BRANCH (Dollars in Thousands) (Dollars in Thousands) 774 3,000 2/930 BOD Gs o* 2 2,500 47 00 |” 556 2,000 + 1,795 4,500 400 1,000 200 500 o+ - - 0 2003 2004 2005 2003 2004 2005
Slide 42: New Region Improvement
NEW REGION IMPROVEMENT NET REVENUE PER FTE (oolars in Thousands) RETURN ON EQUITY 350 300 250 200 2003 2004 2005 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2003 2004 2005
Slide 43: Organic Growth Strategies: De Novo Branching
wi t ‘ ORGANIC "f GROWTH STRATEGIES DE NOVO Pe BRANCHING
Slide 44: De Novo Branching
DE NOVO BRANCHING * Commitment —50 de novo branches initiated in 2005 —60 de novo branches to be initiated in 2006 * De novo branch leadership established — High level leadership (Banking Network, Marketing, and Facilities) — Centralized coordination ¢ Investment in market research staff and tools
Slide 45: De Novo Branching
DE NOVO BRANCHING ¢ Customized marketing plans ¢ Specialized training program ¢ Additional incentives —Two year program ¢ Land banking — Capture premium sites early and at lower prices — Jump start on due diligence and permitting ¢ Master broker partnership
Slide 46: De Novo Branching
DE NOVO BRANCHING * Fast track builders —To market faster —To market cheaper ¢ Prototype branches —3,900 square feet —7 teller stations, 7 offices, 2 lobby positions, 3 to 5 drive-thru lanes (includes 1 ATM lane) ¢ Track results — Ensure accountability
Slide 47: De Novo Program Pilot
DE NOVO PROGRAM PILOT ¢ 7 de novos opened in 2004 — Atlanta Market — Limited success ¢ Implemented new process in 2005 — Regional/branch leadership —Team selection — Special incentives — Marketing program
Slide 48: De Novo Program Pilot
DE NOVO PROGRAM PILOT ¢ Five elements of de novo branch success —Hire the right Financial Center Manager — Regional leadership/ownership and intense focus — Promotional products — Promotional activities (pre-opening, at opening, post-opening) — Special incentives * Success in 2005 — Deposits grew $1
Slide 49: 2005-2006 De Novo Markets
2005-2006 DE NOVO MARKETS STATE 2005 2006 LAND | TOTAL Florida 18 2 19 59 Georgia 1B 5* 22 North Carolina 6 9 20 Washington, D.C. 0 5 10 South Carolina 5 4 0 9 Maryland 3 2 2 7 Virginia 2 3 0 5 Tennessee 0 3 0 3 Kentucky 2 1 0 3 Indiana (Louisville) 1 0 0 1 Wildcards 0 6 0 6 TOTAL 50 60 35 145 * Low
Slide 50: Organic Growth Strategies
ORGANIC GROWTH STRATEGIES
Slide 51: Organic Growth
ORGANIC GROWTH Recommitment to excellent sales management by Regional Presidents and their staffs Commercial Bank « Adopted the Consultative Sales and Retention Model focusing us to: —Become the trusted advisor — Deepen relationship management —Increase value to the client
Slide 52: Consultative Sales Process: The Five Buckets
CONSULTATIVE SALES PROCESS “The Five Buckets” i CAPITAL FORMATION i CASH MANAGEMENT Ci EMPLOYEE BENEFITS in RISK MANAGEMENT in PERSONAL FINANCIAL NEEDS
Slide 53: Organic Growth
ORGANIC GROWTH * Rolled out with training —BOTB I (Best of the Best) training in 2005 —Re-commitment with BOTB II training in 2006
Slide 54: Consultative Sales & Retention Process
Consultative Sales & Retention Process [==] Contact Management ieee Call Execution = WARM UP AND BUILD TRUST Warm up and build trust Client Retention juoweseueyy diysuonepey paye1soyuy ui OVERCOME OBJECTIONS
Slide 55: Consultative Sales & Retention Leadership Process
Consultative Sales & Retention Leadership Process Establish | [ Benchmark] [provide | | Revogulze stellar Hirethe 1) sucein | | expectations and| | Identify | | format and | | performance) igst | | atu | | perksrmence | |-sheutacnd| | Geter | | Deal with peer People metrics weaknesses | | coaching p
Slide 56: Organic Growth
ORGANIC GROWTH Retail Bank ¢ Adopted “Store Ownership”-- the Financial Center Manager is the owner/leader ¢ Five “Store Ownership” traits — Own the market — Own the client and client experience — Own the team (coaching and leadership) — Own the processes and compliance — Own the economics
Slide 57: Organic Growth
ORGANIC GROWTH * Optimize the branch —Cross-sell at every interaction with the client — Develop micro-business client strategy —Cross-training and cross functionality —Integrate core retail, micro and small business into the branch ¢ Support all client segments ¢ Build relationship value through a s
Slide 58: Integrated Relationship Management
ORGANIC GROWTH INTEGRATED RELATIONSHIP MANAGEMENT @ ome
Slide 59: Other Organic Growth Strategies
OTHER ORGANIC GROWTH STRATEGIES BB&T@Work Free Checking (Personal and Small Business) Advertising Student market Emerging markets (Hispanic/ethnic) Small Business initiative Micro Business strategy Enhanced emphasis on deposits
Slide 60: RAP: Retention / Acquisition / Penetration
“RAP” RETENTION / ACQUISITION / PENETRATION * Converted 26,789 households to 5+ services households in 2005 ¢ Net new transaction accounts per branch improved from -0.99 accounts in 2004 to 5.46 in 2005 ¢ New household cross-sell ratio of 2.6 services ¢ Overall household cross-sell ratio of 3.5 serv
Slide 61: Decathlon Process
DECATHLON PROCESS Monday sales meeting — Create, move and close — Pipeline management Daily “quick start” Thursday PCE (Perfect Client Experience) service meeting Friday sales week debrief
Slide 62: Organic Growth Strategies: Service Focus
~~ Wa ~ Yn. ORGANIC GROWTH STRATEGIES y SERVICE FOCUS N 7) 7 ~.
Slide 63: Service Excellence
SERVICE EXCELLENCE * Service differentiation creates value Q P * Quality differentiation must be real * Reliable _ * Responsive oe a Empathetic SERVICE * Competent
Slide 64: Service Excellence
SERVICE EXCELLENCE ¢ Improved CSM (Client Service Measurement) Program ¢ Mystery shopping — 15,637 shops in 2005 — 86% overall score in 2005 —31% perfect scores in 2005 ¢ Problem resolution ¢ PCE (Perfect Client Experience)
Slide 65: Banking Network Focused on Targeting Improved Performance
= BB&T hy BANKING , NETWORK FOCUSED ON TARGETING IMPROVED PERFORMANCE
Slide 66: Moments to Momentum
Moments to Momentum THE MOMENTUM IS BUILDING
Slide 67: Questions
BB&T BANKING NETWORK QUESTIONS