Slide 1: Third Quarter 2010 Earnings Conference Call
BB&T Third Quarter 2010 Earnings Conference Call October 21, 2010 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
a 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 s
Slide 3: Non-GAAP Information
Ne 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 perf
Slide 4: 2010 Third Quarter Highlights
vv v 2010 Third Quarter Highlights Strong improvement in earnings compared to 3Q09 3Q10 net income available to common shareholders of $210 million, up 38.2% Q 3Q10 EPS totals $.30, up 30.4% Net revenues' up 4.2%; up 1.1% annualized linked quarter excluding securities gains a Pre-tax pre-provision e
Slide 5: Items Affecting Quarterly Earnings
Na Items Affecting Quarterly Earnings $ in millions, except per share amounts Pretax Income (Expense) Per share Impact Securities gains, net Earnings impact related to NPL transfer Merger-related charges
Slide 6: Strong Underlying Community Bank Performance
Na Strong Underlying Community Bank Performance > BB&T’s Community Banking Model provides best value proposition in our markets » Historically high client service results; #1 among in-market peers eect SS Wachovia suntust 7) i —— Bank of America [TE] sak anes al 40 45 50 55 60 65 65 70 7s 80 85 > Co
Slide 7: Significant Progress in Revenue Growth Strategies
Vv Significant Progress in Revenue Growth Strategies C&l vs. CRE mix improvement Deposit mix improvement Small Business Q 20% growth in total households compared to last year; 4.9% growth excluding Colonial Q Double-digit growth in most services Q Bundling sales efforts 34% more effective compared t
Slide 8: Growing Non-Real Estate Loan Portfolios
Na Growing Non-Real Estate Loan Portfolios Average Loans Held for Investment Average Loan Growth Highlights! $110 (Sin billions) ($ in millions) $103.4 3Q10vs.2Q10 3Q10 vs. 2Q10 ain $1026 $1023 $1023 $ Annualized % Increase Increase $100 (Decrease) (Decrease) cal $483 6.0% ah Other CRE (171) (55) Sa
Slide 9: High Growth Niche Business
He High Growth Niche Business $ in millions Annualized 3Q10 Linked Quarter Average Growth Sales Finance (Automobile) - Prime - Nonprime Revolving Credit (Bank card) Insurance Premium Finance Small Ticket Finance Asset Based Lending Mortgage Warehouse Lending Commercial Factoring (factored volume*) >
Slide 10: Making Progress in Long-term Strategy to Improve Mix of Deposits
Le Making Progress in Long-term Strategy to Improve Mix of Deposits Average Client Deposits Average Deposit Growth Highlights 3Q10 vs. 2010 Annualized % A Increase = (Decrease) 2 Noninterest-bearing deposits 15.4% Interest checking (43.0) Pm a ‘0 a0 sa10 Other client deposits 20 Hi Noninterest-beari
Slide 11: Accelerating Pace of ADC Workout
He Accelerating Pace of ADC Workout > Residential ADC portfolio has been and remains our primary credit Total ADC Portfolio challenge. 6 = > We have worked through most exposure in Florida and Georgia. > Excluding the impact of the disposition strategy, ADC held for investment totaled $3.8 billion.
Slide 12: Strategy Results in Reduction in Nonperforming Assets
ee Strategy Results in Reduction in Nonperforming Assets NPAs Decrease in 3Q10* $4,700 $4,500 4307 g $4,300 427 2 4.47 = $4,100 = $3992 ~ $3,900 $3,700 $3,500 + 3Q09 4Q09 1910 2Q10 3Q10 1 Excludes covered assets. = Accelerated momentum in de-risking strategy Sold $451 million of nonperforming assets
Slide 13: Strategy Results in Additional Charge-offs and Stronger Reserve Coverage
Ne Strategy Results in Additional Charge-offs and Stronger Reserve Coverage Net Charge-offs / Average Loans' 2.259% 1.50% 1.79% 1.99% 206% 075% 0.00% + 3008 4q08 ta10 2010 2010 Losses and Writedowns on Loans Transferred to LHFS and Sold Core charge-offs Reserves / Nonperforming Loans Held for Invest
Slide 14: OREO Trends
ee OREO Trends OREO Inflows and Outflows* $400 $381 $3504 5320 $330 $300 = $281 rd $244 $148 3009 409 1010 2a10 gato Inflows —=-Outflows OREO Expense 3000 4000 1010 2010 aar0 m Foreclosed Property Maintenance Costs 1 Valuation Write-downs and Net Losses on Sale 1 Excludes covered assets. > OREO bala
Slide 15: Underlying Credit Trends Improve
A Underlying Credit Trends Improve Total Performing TDRs' ($in millions) eae $1,964 — : : $1,715 u » Performing TDRs decreased 8.8% $1,500 > 79% of TDRs are performing Cee sali > 86% of performing TDRs are current $537 | > The increases in early stage $500 +. delinquencies result in part from 3909 4
Slide 16: Underlying Credit Trends Improve
Na Underlying Credit Trends Improve Inflows to Nonaccrual Assets (Sinmillions) te te te 3009 4009 1010 2010 3010 = Total Commercial 4 Mortgage +Other > Commercial inflows primarily reflect aggressive efforts to resolve watch list credits, not new additions to the watch list. > Inflows for consumer p
Slide 17: BB&T Operates a Lower Risk Foreclosure Mortgage Business
Eee BB&T Operates a Lower Risk - coreclosure Mortgage Business Q Values-based lending culture — focused on working with clients Q Recognized by J.D. Power and Associates for “Highest in Customer Satisfaction With Primary Mortgage Servicers” Q Completed internal reviews — no issues of concern oO Know
Slide 18: Net Interest Margin
Net Interest Margin 4.20% 4.00% 3.80% 3.82% 3.83% 3.78% 3.60% 3.40% 3Q09 4Q09 1010 2Q10 3Q10 —*-Margin —mAdjusted Margin’ > Our goal is to produce a stable margin over time. | Agjusted to reflect FDIC indemnification asset as an eaming asset. > Margin is benefiting from a more favorable asset and fu
Slide 19: De-risking the Investment Portfolio
Ne De-risking the Investment Portfolio Securities Book Value Net Gains Purchases $12.4 billion - Sales $10.7 billion $239 million’ . a 4.00% > We have executed a strategic 3.56% de-risking of the investment portfolio. - Q Shortening effective duration from 4.1 3.00% years to 2.9 years. » We signific
Slide 20: Fee Income
Fee Income $ in millions Strong Fee Income Ratio’ Se 3010 v. 3009 3010 v. 20107 Increase (Decrease) _Increase (Decrease) 8.0% Noninterest income Insurance income (0.8% $135) 410% 4 41.9% 23% Service charges on deposits (18.3) ie 40.8% Morigage banking income 278 os Investments banking and (45) 20.0%
Slide 21: Noninterest Expenses and Efficiency
A. Noninterest Expenses and Efficiency $ in millions . etl Efficiency Ratio 60.0% es 55.0% 53.1% sh 524% soon) 520% 514% 45.0% 4 3009 4009 1010 2010 3a10 Vv FTE employees decreased 1,490 compared to 3Q09 and decreased 272 compared to 2Q10. > We generated positive operating leverage on a linked quart
Slide 22: Capital Levels
Na Capital Levels’ Tier 1 Common Ratio 95% > Industry leading capital 20%. ses > Upon assessment of preliminary ex Basel III requirements, we believe asm} 8am a that BB&T will meet the required capital levels aol > BB&T is evaluating U.S. regulatory 3009 4009 1a10 2010 3010 response on Basel Ill and
Slide 23: 3Q10 Earnings Call Summary
3Q10 Earnings Call Summary > The underlying performance of our businesses is strong. > Our client service metrics are at historic highs. >» Loan growth accelerated this quarter in our non-real estate portfolios and we generated overall loan growth. Vv Maintaining positive revenue growth in a very ch
Slide 24: Comments Regarding Disclosure
A 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-looki
Slide 25: Appendix
Appendix
Slide 26: Non-GAAP Capital Measures
Non-GAAP Capital Measures (Dollars in mittions) As of / Quarter Ended Sept. 30 June 30 March 31 Dec. 31 Sept 30 2010 2010 2010 2009 2009 Selected Capital information * Risk-based capital Tier $13,828 $13,594 $13,657 $13,456 $12,851 Total 18,463 18,327 18,658 18,470 18,012 Risk-weighted assets 117,76
Slide 27: Non-GAAP Capital Measures
AA, Non-GAAP Capital Measures (Dollars in millions) ‘As of | Quarter Ended Sept 30 June30 March 31 Dee. 31 ‘Sept:30 2010 2010 2010 2010 2008 Calculations of Tier 1 common equity and tangible assets and related measures: Tier 1 equity S 388 $ 135% © § «13657 S$ 13458 © S12,851 Less: ‘Qualified restri
Slide 28: Non-GAAP Reconciliations
SR Non-GAAP Reconciliations Quarter Ended Sept. 30 June30 March 31 Dec. 31 Sept. 30 2010 2010 2010 2009 2009 Efficiency ratio- GAAP 57.3% 61.7% 61.2% 585% 59.8% Effect of securities gains (losses), net 56 Ea (4) - 8 Effect of merger-related and restructuring charges, net (4) (16) (7) (4) (8) Effect
Slide 29: Non-GAAP Reconciliations
Re Non-GAAP Reconciliations As of / For the Quarter Ended Sept. 30 June 30 March 31 Dec. 31 Sept. 30 2010 2010 2010 2009 2009 Asset Quality Ratios (including amounts related to covered loans and covered foreclosed property) Loans 30-89 days past due and stil accruing as a percentage of total loans a
Slide 30: Non-GAAP Reconciliations
I Non-GAAP Reconciliations As of / For the Quarter Ended Sept. 30 dune 30 March 31 Dec. 31 Sept. 30 2010 2010 2010 2009 2009 Asset Quality Ratios (excluding amounts related to covered loans and covered foreclosed property)? Loans 30-89 days past due and still accruing as a percentage of total loans
Slide 31: Best Bank In Town
Best Bank In Town BB&T Since 1872 BB&T Corporation