Slide 1: Best Bank In Town – Fourth Quarter 2012 Earnings Conference Call
Best Bank In Town BB&T Since 1872 Fourth Quarter 2012 Earnings Conference Call January 17, 2018 Kelly S. King Chairman and Chief Executive Officer Daryl N. Bible Chief Financial Officer
Slide 2: Non-GAAP Information
2 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 these “non - GAAP” measures in their analy
Slide 3: 2012 Fourth Quarter Performance Highlights
3 2012 Fourth Quarter Performance Highlights 1 1 Linked quarter growth rates are annualized, except for credit metrics. 2 Available to common shareholders . 3 Fully taxable equivalent . 4 Excludes securities gains (losses), the impact of FDIC loss share accounting and other selected items. See non -
Slide 4: Broad-based Loan Growth
4 Broad - based Loan Growth $105.8 $107.5 $109.2 $112.7 $113.6 $100 $105 $110 $115 4Q11 1Q12 2Q12 3Q12 4Q12 Average Loans Held for Investment ($ in billions) » Experienced strong growth in C&I, Direct Retail and Residential Mortgage » Average commercial loans, excluding CRE - ADC, increased $715 mil
Slide 5: Improved Deposit Mix and Cost
5 Improved Deposit Mix and Cost » Strong organic growth in noninterest - bearing deposits, up 24.7% » Effectively reduced interest - bearing deposit cost by 18bps during 2012 » Average CD maturity is 12 months » Management currently expects more modest deposit growth in 1Q13 with continued improveme
Slide 6: Diverse Sources of Revenue
Diverse Sources of Revenue » Expanding corporate banking initiative in key national markets with continued expansion of vertical lending teams » Expanding advisor capacity of wealth management and the broker - dealer in targeted markets » Realize revenue synergies from acquisition of Crump Life » Ex
Slide 7: Broad-based Credit Improvement
1.45% 1.33% 1.09% 0.97% 0.85% 0.50% 1.00% 1.50% 2.00% 4Q11 1Q12 2Q12 3Q12 4Q12 Total Nonperforming Assets as a Percentage of Total Assets 7 Broad - based Credit Improvement 1 » 10.6% reduction in NPAs vs. 3Q12 □ Commercial NPLs down 16.4% □ Lowest NPAs since 2Q08 » Management expects NPAs to improve
Slide 8: Broad-based Credit Improvement (Cont'd)
8 » Performing TDRs increased 21.2% vs. 3Q12 » Recent regulatory guidance related to debt discharge in bankruptcy (BK7) resulted in $226 million increase in performing TDRs across all portfolios □ FICO scores have increased approximately 50 points on average since debt discharge □ 77% current for tw
Slide 9: Margin Remains Strong
4.02% 3.93% 3.95% 3.94% 3.84% 3.44% 3.41% 3.45% 3.51% 3.42% 3.00% 3.50% 4.00% 4.50% 4Q11 1Q12 2Q12 3Q12 4Q12 Net Interest Margin Reported NIM Core NIM 1 9 Margin Remains Strong » Margin expected to be in the mid 3.70s % range in 1Q13 driven by: □ Lower rates on new earning assets □ Runoff of covered
Slide 10: Fee Income Growth
10 Fee Income Growth 38.4% 41.0% 42.4% 42.4% 44.1% 32.0% 36.0% 40.0% 44.0% 48.0% 4Q11 1Q12 2Q12 3Q12 4Q12 Fee Income Ratio 1 1 Excludes securities gains (losses), the impact of FDIC loss share accounting and other selected items. See non - GAAP Reconciliat ions included in the attached Appendix. 2 L
Slide 11: Noninterest Expenses and Efficiency
11 Noninterest Expenses and Efficiency 4Q12 4Q12 v. 3Q12 2 Increase (Decrease) 4Q12 v. 4Q11 Increase (Decrease) Personnel expense $ 823 13.0 % 21.2 % Foreclosed property expense 48 (44.2) (86.1) Occupancy and equipment expense 172 14.4 8.2 Loan - related expenses 73 (56.2) 23.7 Regulatory charges 35
Slide 12: Capital Strength
12 Capital Strength 1 9.7% 10.0% 9.7% 9.5% 9.7% 8.0% 9.0% 10.0% 11.0% 4Q11 1Q12 2Q12 3Q12 4Q12 Basel I Tier 1 Common Ratio 1 Current quarter regulatory capital information is preliminary. Risk - weighted assets are determined based on regulatory capital r equirements. Under the regulatory framework
Slide 13: Community Banking Segment
13 Community Banking Segment Net Interest Income Noninterest Income 1 Loan Loss Provision Noninterest Expense 2 Income Tax Expense Segment Net Income $ 857 348 129 729 127 $ 220 $ 6 19 37 34 (16) $ (30) $ (30) 66 11 (248) 103 $ 170 Total Noninterest Bearing Growth Noninterest Bearing / Total Deposit
Slide 14: Residential Mortgage Banking Segment
14 Net Interest Income Noninterest Income 1 Loan Loss Provision Noninterest Expense 2 Income Tax Expense Segment Net Income Retail Originations Correspondent Originations Total Originations Loan Sales Loans Serviced for others (EOP) 30+ Days Delinquent (HFI only) % Non - Accrual (HFI only) Net Charg
Slide 15: Dealer Financial Services Segment
15 Net Interest Income Noninterest Income 1 Loan Loss Provision Noninterest Expense 2 Income Tax Expense Segment Net Income 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 n
Slide 16: Specialized Lending Segment
16 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 Inter
Slide 17: Insurance Segment
17 1 Noninterest Income includes intersegment net referral fees. 2 Noninterest Expense includes amortization of intangibles and allocated corporate expense. Insurance Segment Comments Highlighted Metrics Net Interest Income Noninterest Income 1 Loan Loss Provision Noninterest Expense 2 Income Tax Ex
Slide 18: Financial Services Segment
18 Financial Services Segment Comments Highlighted Metrics Net Interest Income Noninterest Income 1 Loan Loss Provision Noninterest Expense 2 Income Tax Expense Segment Net Income $ 4 15 (20) 9 11 $ 19 $ 9 16 (17) 24 7 $ 11 Average Loan Balances Average Deposits Total Assets Invested Operating Margi
Slide 19: Best Bank In Town
Best Bank In Town BB&I Since 1872
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Capital Measures
21 Non - GAAP Capital Measures (Dollars in millions, except per share data) As of / Quarter Ended Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Selected Capital Information 1 Risk - based capital Tier 1 $ 14,373 $ 13,593 $ 12,383 $ 15,207 $ 14,913 Total 18,146 17,536 16,433 19,342
Slide 22: Non-GAAP Capital Measures
22 Non - GAAP Capital Measures (Dollars in millions, except per share data) As of / Quarter Ended Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Calculations of Tier 1 common equity and tangible assets and related measures: Tier 1 equity $ 14,373 $ 13,593 $ 12,383 $ 15,207 $ 14,913
Slide 23: Non-GAAP Capital Measures – Basel III Estimates
Non - GAAP Capital Measures 1 1 The Basel III calculations are non - GAAP measures and reflect adjustments for the related elements as proposed by regulatory auth orities, which are subject to change. BB&T management uses these measures to assess the quality of capital and believes that investors ma
Slide 24: Non-GAAP Reconciliations – Asset Quality Ratios
24 Non - GAAP Reconciliations Applicable ratios are annualized. 1 Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. 2 Excludes mortgage loans guaranteed by the government. As of / Quarter Ended Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31
Slide 25: Non-GAAP Reconciliations – Asset Quality Ratios
25 Non - GAAP Reconciliations Applicable ratios are annualized. 1 Excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. 2 Excludes mortgage loans guaranteed by the government. 3 These asset quality ratios have been adjusted to remove the impact of covered l
Slide 26: Non-GAAP Reconciliations – Efficiency and Fee Income Ratios
26 Non - GAAP Reconciliations Quarter Ended Efficiency and Fee Income Ratios 1 Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Efficiency ratio – GAAP 58.8 % 61.6 % 57.9 % 59.0 % 67.1 % Effect of securities gains (losses), net - - - (0.2) 2.4 Effect of merger - related and restructur
Slide 27: Non-GAAP Reconciliations – Return on Tangible Equity
27 Non - GAAP Reconciliations 1 BB&T’s management believes investors use this measure to evaluate the return on average common shareholders’ equity without t he impact of intangible assets and their related amortization. (Dollars in millions) Quarter Ended Dec 31 Sept 30 June 30 March 31 Dec 31 Retu
Slide 28: Non-GAAP Reconciliations – Net Interest Margin
28 Non - GAAP Reconciliations Quarter Ended Reported net interest margin vs. core net interest margin 1 Dec 31 2012 Sept 30 2012 June 30 2012 March 31 2012 Dec 31 2011 Reported net interest margin - GAAP 3.84 % 3.94 % 3.95 % 3.93 % 4.02 % Adjustments to net interest income for Colonial assets: Effec
Slide 29: Best Bank In Town
BBS&T Best Bank In Town Since 1872 29