TRUIST FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.3 - EXHIBIT 99.3 - TRUIST FINANCIAL CORP	ex993-earningsdeck_1q18.htm
EX-99.1 - EXHIBIT 99.1 - TRUIST FINANCIAL CORP	ex991-earningstext_1q18.htm
8-K - 8-K - TRUIST FINANCIAL CORP	form8k-earnings_1q18.htm

Quarterly Performance Summary

BB&T Corporation

First Quarter 2018



Table of Contents
Quarterly Performance Summary
BB&T Corporation




		Page
Financial Highlights		1
Financial Highlights - Five Quarter Trend		2
Consolidated Statements of Income		3
Consolidated Statements of Income - Five Quarter Trend		4
Segment Financial Performance - Five Quarter Trend		5
Consolidated Ending Balance Sheets - Five Quarter Trend		6
Average Balance Sheets		7
Average Balance Sheets - Five Quarter Trend		8
Average Balances and Rates - Quarters		9
Credit Quality		11
Preliminary Capital Information - Five Quarter Trend		15
Selected Items, Selected Mortgage Banking Information & Additional Information		16
Non-GAAP Reconciliations		17



Return to Table of Contents



Financial Highlights
BB&T Corporation
(Dollars in millions, except per share data, shares in thousands)
	Quarter Ended
	March 31						%
	2018			2017			Change
Summary Income Statement
Interest income	$	1,944		$	1,815		7.1	%
Interest expense	288			166			73.5
Net interest income - taxable equivalent	1,656			1,649			0.4
Less: Taxable-equivalent adjustment	23			40			(42.5	)
Net interest income	1,633			1,609			1.5
Provision for credit losses	150			148			1.4
Net interest income after provision for credit losses	1,483			1,461			1.5
Noninterest income	1,180			1,171			0.8
Noninterest expense	1,686			2,102			(19.8	)
Income before income taxes	977			530			84.3
Provision for income taxes	186			104			78.8
Net income	791			426			85.7
Noncontrolling interests	3			5			(40.0	)
Preferred stock dividends	43			43			—
Net income available to common shareholders	745			378			97.1
Per Common Share Data
Earnings per share-basic	$	0.96		$	0.47		104.3	%
Earnings per share-diluted	0.94			0.46			104.3
Cash dividends declared	0.375			0.300			25.0
Common equity	34.06			33.19			2.6
Tangible common equity (1)	20.86			20.33			2.6

End of period shares outstanding	779,752			811,370			(3.9	)
Weighted average shares outstanding-basic	779,617			809,903			(3.7	)
Weighted average shares outstanding-diluted	791,005			822,719			(3.9	)
Performance Ratios
Return on average assets	1.45		%	0.79		%
Return on average risk-weighted assets	1.81			0.98
Return on average common shareholders' equity	11.43			5.72
Return on average tangible common shareholders' equity (2)	19.36			9.98
Net interest margin - taxable equivalent	3.44			3.46
Fee income ratio	41.9			42.1
Efficiency ratio-GAAP	60.0			75.6
Efficiency ratio-adjusted (3)	57.3			58.0
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.30		%	0.36		%
Loans and leases plus foreclosed property	0.47			0.56
Net charge-offs as a percentage of average loans and leases	0.41			0.42
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.04
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	2.49x			2.05x
Average Balances
Assets	$	221,419		$	219,961		0.7	%
Securities (4)	48,374			44,607			8.4
Loans and leases	143,906			143,698			0.1
Deposits	157,138			161,383			(2.6	)
Common shareholders' equity	26,428			26,807			(1.4	)
Shareholders' equity	29,528			29,903			(1.3	)
Period-End Balances
Assets	$	220,729		$	220,501		0.1	%
Securities (4)	47,407			44,877			5.6
Loans and leases	144,206			143,896			0.2
Deposits	158,196			161,333			(1.9	)
Common shareholders' equity	26,559			26,928			(1.4	)
Shareholders' equity	29,662			30,025			(1.2	)
Capital Ratios - Preliminary
Risk-based:
Common equity Tier 1	10.2		%	10.3		%
Tier 1	12.0			12.0
Total	14.0			14.1
Leverage	9.9			10.0
Applicable ratios are annualized.
(1) Tangible common equity per share is a non-GAAP measure. See the calculations and management's reasons for using this measure in the Preliminary Capital Information - Five Quarter Trend section of this supplement.
(2) Return on average tangible common shareholders' equity is a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement.
(3) The adjusted efficiency ratio is a non-GAAP measure and excludes certain items as detailed in the Non-GAAP Reconciliations section of this supplement. See the calculations and management's reasons for using this measure in the Non-GAAP reconciliations section of this supplement.
(4) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.

Return to Table of Contents



Financial Highlights - Five Quarter Trend
BB&T Corporation
(Dollars in millions, except per share data, shares in thousands)
	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
	2018			2017			2017			2017			2017
Summary Income Statement
Interest income	$	1,944		$	1,936		$	1,918		$	1,864		$	1,815
Interest expense	288			254			230			189			166
Net interest income - taxable equivalent	1,656			1,682			1,688			1,675			1,649
Less: Taxable-equivalent adjustment	23			38			41			40			40
Net interest income	1,633			1,644			1,647			1,635			1,609
Provision for credit losses	150			138			126			135			148
Net interest income after provision for credit losses	1,483			1,506			1,521			1,500			1,461
Noninterest income	1,180			1,225			1,166			1,220			1,171
Noninterest expense	1,686			1,855			1,745			1,742			2,102
Income before income taxes	977			876			942			978			530
Provision for income taxes	186			209			294			304			104
Net income	791			667			648			674			426
Noncontrolling interests	3			9			8			(1		)	5
Preferred stock dividends	43			44			43			44			43
Net income available to common shareholders	745			614			597			631			378
Per Common Share Data
Earnings per share-basic	$	0.96		$	0.78		$	0.75		$	0.78		$	0.47
Earnings per share-diluted	0.94			0.77			0.74			0.77			0.46
Cash dividends declared	0.375			0.330			0.330			0.300			0.300
Common equity	34.06			34.01			33.92			33.73			33.19
Tangible common equity (1)	20.86			20.80			20.78			20.86			20.33

End of period shares outstanding	779,752			782,006			788,921			808,093			811,370
Weighted average shares outstanding-basic	779,617			783,764			794,558			808,980			809,903
Weighted average shares outstanding-diluted	791,005			795,867			806,124			819,389			822,719
Performance Ratios
Return on average assets	1.45		%	1.19		%	1.16		%	1.22		%	0.79		%
Return on average risk-weighted assets	1.81			1.50			1.45			1.53			0.98
Return on average common shareholders' equity	11.43			9.10			8.82			9.30			5.72
Return on average tangible common shareholders' equity (2)	19.36			15.35			14.89			15.60			9.98
Net interest margin - taxable equivalent	3.44			3.43			3.48			3.47			3.46
Fee income ratio	41.9			42.7			41.4			42.7			42.1
Efficiency ratio-GAAP	60.0			64.7			62.0			61.0			75.6
Efficiency ratio-adjusted (3)	57.3			57.2			58.3			58.6			58.0
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.30		%	0.28		%	0.31		%	0.31		%	0.36		%
Loans and leases plus foreclosed property	0.47			0.44			0.48			0.48			0.56
Net charge-offs as a percentage of average loans and leases	0.41			0.36			0.35			0.37			0.42
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.04			1.04			1.03			1.04
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	2.49x			2.62x			2.44x			2.43x			2.05x
Average Balances
Assets	$	221,419		$	222,525		$	220,732		$	221,018		$	219,961
Securities (4)	48,374			48,093			45,968			45,410			44,607
Loans and leases	143,906			144,089			144,181			144,327			143,698
Deposits	157,138			157,959			157,414			160,263			161,383
Common shareholders' equity	26,428			26,759			26,857			27,208			26,807
Shareholders' equity	29,528			29,853			29,948			30,302			29,903
Period-End Balances
Assets	$	220,729		$	221,642		$	220,340		$	221,192		$	220,501
Securities (4)	47,407			47,574			46,631			45,283			44,877
Loans and leases	144,206			144,800			144,011			145,116			143,896
Deposits	158,196			157,371			156,135			156,968			161,333
Common shareholders' equity	26,559			26,595			26,757			27,254			26,928
Shareholders' equity	29,662			29,695			29,853			30,349			30,025
Capital Ratios - Preliminary
Risk-based:
Common equity Tier 1	10.2		%	10.2		%	10.2		%	10.3		%	10.3		%
Tier 1	12.0			11.9			11.9			12.1			12.0
Total	14.0			13.9			14.0			14.1			14.1
Leverage	9.9			9.9			9.9			10.1			10.0
Applicable ratios are annualized.
(1) Tangible common equity per share is a non-GAAP measure. See the calculations and management's reasons for using this measure in the Preliminary Capital Information - Five Quarter Trend section of this supplement.
(2) Return on average tangible common shareholders' equity is a non-GAAP measure. See the calculation and management's reasons for using this measure in the Non-GAAP Reconciliations section of this supplement.
(3) The adjusted efficiency ratio is a non-GAAP measure and excludes certain items as detailed in the Non-GAAP Reconciliations section of this supplement. See the calculations and management's reasons for using this measure in the Non-GAAP reconciliations section of this supplement.
(4) Includes AFS and HTM securities. Average balances reflect both AFS and HTM securities at amortized cost. Period-end balances reflect AFS securities at fair value and HTM securities at amortized cost.

Return to Table of Contents



Consolidated Statements of Income
BB&T Corporation
(Dollars in millions, except per share data, shares in thousands)
	Quarter Ended
	March 31				Change
	2018		2017		$			%
Interest Income
Interest and fees on loans and leases	$	1,605	$	1,501	$	104		6.9	%
Interest and dividends on securities	291		258		33			12.8
Interest on other earning assets	25		16		9			56.3
Total interest income	1,921		1,775		146			8.2
Interest Expense
Interest on deposits	118		69		49			71.0
Interest on short-term borrowings	20		2		18			NM
Interest on long-term debt	150		95		55			57.9
Total interest expense	288		166		122			73.5
Net Interest Income	1,633		1,609		24			1.5
Provision for credit losses	150		148		2			1.4
Net Interest Income After Provision for Credit Losses	1,483		1,461		22			1.5
Noninterest Income
Insurance income	436		458		(22		)	(4.8	)
Service charges on deposits	165		168		(3		)	(1.8	)
Mortgage banking income	99		103		(4		)	(3.9	)
Investment banking and brokerage fees and commissions	113		91		22			24.2
Trust and investment advisory revenues	72		68		4			5.9
Bankcard fees and merchant discounts	69		59		10			16.9
Checkcard fees	52		51		1			2.0
Operating lease income	37		36		1			2.8
Income from bank-owned life insurance	31		29		2			6.9
Securities gains (losses), net	—		—		—			—
Other income	106		108		(2		)	(1.9	)
Total noninterest income	1,180		1,171		9			0.8
Noninterest Expense
Personnel expense	1,039		1,035		4			0.4
Occupancy and equipment expense	194		193		1			0.5
Software expense	65		58		7			12.1
Outside IT services	32		49		(17		)	(34.7	)
Regulatory charges	40		39		1			2.6
Amortization of intangibles	33		38		(5		)	(13.2	)
Loan-related expense	29		30		(1		)	(3.3	)
Professional services	30		22		8			36.4
Merger-related and restructuring charges, net	28		36		(8		)	(22.2	)
Loss (gain) on early extinguishment of debt	—		392		(392		)	(100.0	)
Other expense	196		210		(14		)	(6.7	)
Total noninterest expense	1,686		2,102		(416		)	(19.8	)
Earnings
Income before income taxes	977		530		447			84.3
Provision for income taxes	186		104		82			78.8
Net income	791		426		365			85.7
Noncontrolling interests	3		5		(2		)	(40.0	)
Preferred stock dividends	43		43		—			—
Net income available to common shareholders	$	745	$	378	$	367		97.1	%
Earnings Per Common Share
Basic	$	0.96	$	0.47	$	0.49		104.3	%
Diluted	0.94		0.46		0.48			104.3
Weighted Average Shares Outstanding
Basic	779,617		809,903		(30,286		)	(3.7	)
Diluted	791,005		822,719		(31,714		)	(3.9	)
New pension accounting guidance was adopted in 1Q18 such that only service cost is included in personnel expense with the other pension expense elements included in other expense. Prior periods have been retrospectively adjusted to conform to the new presentation and total noninterest expense was not affected.
NM - not meaningful

Return to Table of Contents



Consolidated Statements of Income - Five Quarter Trend
BB&T Corporation
(Dollars in millions, except per share data, shares in thousands)
	Quarter Ended
	March 31		Dec. 31			Sept. 30		June 30			March 31
	2018		2017			2017		2017			2017
Interest Income
Interest and fees on loans and leases	$	1,605	$	1,598		$	1,591	$	1,540		$	1,501
Interest and dividends on securities	291		286			276		272			258
Interest on other earning assets	25		14			10		12			16
Total interest income	1,921		1,898			1,877		1,824			1,775
Interest Expense
Interest on deposits	118		104			91		80			69
Interest on short-term borrowings	20		19			15		5			2
Interest on long-term debt	150		131			124		104			95
Total interest expense	288		254			230		189			166
Net Interest Income	1,633		1,644			1,647		1,635			1,609
Provision for credit losses	150		138			126		135			148
Net Interest Income After Provision for Credit Losses	1,483		1,506			1,521		1,500			1,461
Noninterest Income
Insurance income	436		418			397		481			458
Service charges on deposits	165		183			179		176			168
Mortgage banking income	99		104			114		94			103
Investment banking and brokerage fees and commissions	113		111			103		105			91
Trust and investment advisory revenues	72		72			68		70			68
Bankcard fees and merchant discounts	69		67			70		75			59
Checkcard fees	52		55			54		54			51
Operating lease income	37		37			36		37			36
Income from bank-owned life insurance	31		33			28		32			29
Securities gains (losses), net	—		(1		)	—		—			—
Other income	106		146			117		96			108
Total noninterest income	1,180		1,225			1,166		1,220			1,171
Noninterest Expense
Personnel expense	1,039		1,072			1,051		1,068			1,035
Occupancy and equipment expense	194		195			198		198			193
Software expense	65		65			62		57			58
Outside IT services	32		38			34		39			49
Regulatory charges	40		38			40		36			39
Amortization of intangibles	33		34			34		36			38
Loan-related expense	29		32			32		36			30
Professional services	30		36			27		38			22
Merger-related and restructuring charges, net	28		22			47		10			36
Loss (gain) on early extinguishment of debt	—		—			—		—			392
Other expense	196		323			220		224			210
Total noninterest expense	1,686		1,855			1,745		1,742			2,102
Earnings
Income before income taxes	977		876			942		978			530
Provision for income taxes	186		209			294		304			104
Net income	791		667			648		674			426
Noncontrolling interests	3		9			8		(1		)	5
Preferred stock dividends	43		44			43		44			43
Net income available to common shareholders	$	745	$	614		$	597	$	631		$	378
Earnings Per Common Share
Basic	$	0.96	$	0.78		$	0.75	$	0.78		$	0.47
Diluted	0.94		0.77			0.74		0.77			0.46
Weighted Average Shares Outstanding
Basic	779,617		783,764			794,558		808,980			809,903
Diluted	791,005		795,867			806,124		819,389			822,719
New pension accounting guidance was adopted in 1Q18 such that only service cost is included in personnel expense with the other pension expense elements included in other expense. Prior periods have been retrospectively adjusted to conform to the new presentation and total noninterest expense was not affected.

Return to Table of Contents



Segment Financial Performance - Preliminary
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
Community Banking Retail and Consumer Finance	2018			2017			2017			2017			2017
Net interest income (expense)	$	837		$	857		$	863		$	853		$	842
Net intersegment interest income (expense)	49			38			38			39			34
Segment net interest income	886			895			901			892			876
Allocated provision for credit losses	122			138			116			118			129
Noninterest income	339			358			362			353			331
Noninterest expense	673			695			675			682			673
Income (loss) before income taxes	430			420			472			445			405
Provision (benefit) for income taxes	106			157			176			166			151
Segment net income (loss)	$	324		$	263		$	296		$	279		$	254

Community Banking Commercial
Net interest income (expense)	$	464		$	453		$	451		$	430		$	406
Net intersegment interest income (expense)	70			93			90			95			101
Segment net interest income	534			546			541			525			507
Allocated provision for credit losses	37			19			—			46			4
Noninterest income	105			105			107			109			102
Noninterest expense	254			273			295			320			307
Income (loss) before income taxes	348			359			353			268			298
Provision (benefit) for income taxes	78			125			123			91			103
Segment net income (loss)	$	270		$	234		$	230		$	177		$	195

Financial Services and Commercial Finance
Net interest income (expense)	$	159		$	154		$	154		$	145		$	130
Net intersegment interest income (expense)	18			25			24			38			40
Segment net interest income	177			179			178			183			170
Allocated provision for credit losses	(5		)	(13		)	9			(17		)	6
Noninterest income	301			315			289			297			280
Noninterest expense	301			307			296			300			287
Income (loss) before income taxes	182			200			162			197			157
Provision (benefit) for income taxes	38			64			50			63			48
Segment net income (loss)	$	144		$	136		$	112		$	134		$	109

Insurance Holdings and Premium Finance
Net interest income (expense)	$	26		$	25		$	25		$	25		$	23
Net intersegment interest income (expense)	(6		)	(6		)	(6		)	(5		)	(4		)
Segment net interest income	20			19			19			20			19
Allocated provision for credit losses	1			—			1			1			2
Noninterest income	439			428			401			485			463
Noninterest expense	375			393			389			408			400
Income (loss) before income taxes	83			54			30			96			80
Provision (benefit) for income taxes	21			21			12			36			30
Segment net income (loss)	$	62		$	33		$	18		$	60		$	50

Other, Treasury & Corporate (1)
Net interest income (expense)	$	147		$	155		$	154		$	182		$	208
Net intersegment interest income (expense)	(131		)	(150		)	(146		)	(167		)	(171		)
Segment net interest income	16			5			8			15			37
Allocated provision for credit losses	(5		)	(6		)	—			(13		)	7
Noninterest income	(4		)	19			7			(24		)	(5		)
Noninterest expense	83			187			90			32			435
Income (loss) before income taxes	(66		)	(157		)	(75		)	(28		)	(410		)
Provision (benefit) for income taxes	(57		)	(158		)	(67		)	(52		)	(228		)
Segment net income (loss)	$	(9	)	$	1		$	(8	)	$	24		$	(182	)

Total BB&T Corporation
Net interest income (expense)	$	1,633		$	1,644		$	1,647		$	1,635		$	1,609
Net intersegment interest income (expense)	—			—			—			—			—
Segment net interest income	1,633			1,644			1,647			1,635			1,609
Allocated provision for credit losses	150			138			126			135			148
Noninterest income	1,180			1,225			1,166			1,220			1,171
Noninterest expense	1,686			1,855			1,745			1,742			2,102
Income (loss) before income taxes	977			876			942			978			530
Provision (benefit) for income taxes	186			209			294			304			104
Segment net income (loss)	$	791		$	667		$	648		$	674		$	426
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

Return to Table of Contents



Consolidated Ending Balance Sheets - Five Quarter Trend
BB&T Corporation
(Dollars in millions)

	March 31			Dec. 31			Sept. 30			June 30			March 31
	2018			2017			2017			2017			2017
Assets
Cash and due from banks	$	1,869		$	2,243		$	2,195		$	2,201		$	1,739
Interest-bearing deposits with banks	912			343			428			671			2,056
Cash equivalents	132			127			75			137			238
Restricted cash	198			370			429			419			447
Securities available for sale at fair value	25,017			24,547			23,184			26,899			26,668
Securities held to maturity at amortized cost	22,390			23,027			23,447			18,384			18,209
Loans and leases:
Commercial:
Commercial and industrial	59,132			59,153			58,550			59,085			57,666
CRE	21,497			21,263			20,855			20,279			20,152
Lease financing	1,886			1,911			1,887			1,724			1,679
Retail:
Residential mortgage	28,792			28,725			28,657			29,217			29,651
Direct	11,675			11,891			11,941			12,001			11,977
Indirect	16,680			17,235			17,496			17,929			18,046
Revolving credit	2,766			2,872			2,697			2,630			2,574
PCI	589			651			711			780			860
Total loans and leases held for investment	143,017			143,701			142,794			143,645			142,605
Loans held for sale	1,189			1,099			1,217			1,471			1,291
Total loans and leases	144,206			144,800			144,011			145,116			143,896
Allowance for loan and lease losses	(1,498		)	(1,490		)	(1,478		)	(1,485		)	(1,487		)
Premises and equipment	2,078			2,055			2,043			2,084			2,104
Goodwill	9,617			9,618			9,618			9,618			9,618
Core deposit and other intangible assets	679			711			745			782			818
Mortgage servicing rights at fair value	1,119			1,056			1,044			1,052			1,088
Other assets	14,010			14,235			14,599			15,314			15,107
Total assets	$	220,729		$	221,642		$	220,340		$	221,192		$	220,501
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	55,085		$	53,767		$	54,049		$	53,343		$	53,262
Interest checking	27,217			27,677			26,575			27,966			29,472
Money market and savings	62,169			62,757			60,904			61,671			64,860
Time deposits	13,725			13,170			14,607			13,988			13,739
Total deposits	158,196			157,371			156,135			156,968			161,333
Short-term borrowings	4,321			4,938			7,916			6,142			2,019
Long-term debt	23,410			23,648			20,863			21,738			21,635
Accounts payable and other liabilities	5,140			5,990			5,573			5,995			5,489
Total liabilities	191,067			191,947			190,487			190,843			190,476
Shareholders' equity:
Preferred stock	3,053			3,053			3,053			3,053			3,053
Common stock	3,899			3,910			3,945			4,040			4,057
Additional paid-in capital	7,593			7,893			8,192			8,966			9,063
Retained earnings	16,712			16,259			15,656			15,321			14,933
Accumulated other comprehensive loss	(1,645		)	(1,467		)	(1,036		)	(1,073		)	(1,125		)
Noncontrolling interests	50			47			43			42			44
Total shareholders' equity	29,662			29,695			29,853			30,349			30,025
Total liabilities and shareholders' equity	$	220,729		$	221,642		$	220,340		$	221,192		$	220,501

Return to Table of Contents



Average Balance Sheets
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	March 31				Change
	2018		2017		$			%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	3,538	$	4,730	$	(1,192	)	(25.2	)%
U.S. government-sponsored entities (GSE)	2,385		2,386		(1		)	—
Mortgage-backed securities issued by GSE	40,813		34,909		5,904			16.9
States and political subdivisions	1,215		2,091		(876		)	(41.9	)
Non-agency mortgage-backed	375		432		(57		)	(13.2	)
Other	48		59		(11		)	(18.6	)
Total securities	48,374		44,607		3,767			8.4
Other earning assets	2,250		4,259		(2,009		)	(47.2	)
Loans and leases:
Commercial:
Commercial and industrial	58,627		57,125		1,502			2.6
CRE	21,398		19,892		1,506			7.6
Lease financing	1,872		1,653		219			13.2
Retail:
Residential mortgage	28,824		29,701		(877		)	(3.0	)
Direct	11,791		12,014		(223		)	(1.9	)
Indirect	16,914		18,137		(1,223		)	(6.7	)
Revolving credit	2,798		2,607		191			7.3
PCI	631		883		(252		)	(28.5	)
Total loans and leases held for investment	142,855		142,012		843			0.6
Loans held for sale	1,051		1,686		(635		)	(37.7	)
Total loans and leases	143,906		143,698		208			0.1
Total earning assets	194,530		192,564		1,966			1.0
Nonearning assets	26,889		27,397		(508		)	(1.9	)
Total assets	$	221,419	$	219,961	$	1,458		0.7	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	53,396	$	51,095	$	2,301		4.5	%
Interest checking	27,270		29,578		(2,308		)	(7.8	)
Money market and savings	61,690		64,857		(3,167		)	(4.9	)
Time deposits	13,847		14,924		(1,077		)	(7.2	)
Foreign office deposits - interest-bearing	935		929		6			0.6
Total deposits	157,138		161,383		(4,245		)	(2.6	)
Short-term borrowings	5,477		2,105		3,372			160.2
Long-term debt	23,677		20,757		2,920			14.1
Accounts payable and other liabilities	5,599		5,813		(214		)	(3.7	)
Total liabilities	191,891		190,058		1,833			1.0
Shareholders' equity	29,528		29,903		(375		)	(1.3	)
Total liabilities and shareholders' equity	$	221,419	$	219,961	$	1,458		0.7	%
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

Return to Table of Contents



Average Balance Sheets - Five Quarter Trend
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2018		2017		2017		2017		2017
Assets
Securities at amortized cost (1):
U.S. Treasury	$	3,538	$	3,447	$	3,794	$	4,761	$	4,730
U.S. government-sponsored entities (GSE)	2,385		2,385		2,385		2,386		2,386
Mortgage-backed securities issued by GSE	40,813		40,381		37,734		35,911		34,909
States and political subdivisions	1,215		1,435		1,596		1,879		2,091
Non-agency mortgage-backed	375		391		405		416		432
Other	48		54		54		57		59
Total securities	48,374		48,093		45,968		45,410		44,607
Other earning assets	2,250		3,123		2,924		3,649		4,259
Loans and leases:
Commercial:
Commercial and industrial	58,627		58,478		58,211		58,150		57,125
CRE	21,398		20,998		20,776		20,304		19,892
Lease financing	1,872		1,851		1,732		1,664		1,653
Retail:
Residential mortgage	28,824		28,559		28,924		29,392		29,701
Direct	11,791		11,901		11,960		12,000		12,014
Indirect	16,914		17,426		17,678		18,127		18,137
Revolving credit	2,798		2,759		2,668		2,612		2,607
PCI	631		689		742		825		883
Total loans and leases held for investment	142,855		142,661		142,691		143,074		142,012
Loans held for sale	1,051		1,428		1,490		1,253		1,686
Total loans and leases	143,906		144,089		144,181		144,327		143,698
Total earning assets	194,530		195,305		193,073		193,386		192,564
Nonearning assets	26,889		27,220		27,659		27,632		27,397
Total assets	$	221,419	$	222,525	$	220,732	$	221,018	$	219,961
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	53,396	$	54,288	$	53,489	$	52,573	$	51,095
Interest checking	27,270		26,746		27,000		28,849		29,578
Money market and savings	61,690		61,693		61,450		64,294		64,857
Time deposits	13,847		13,744		13,794		14,088		14,924
Foreign office deposits - interest-bearing	935		1,488		1,681		459		929
Total deposits	157,138		157,959		157,414		160,263		161,383
Short-term borrowings	5,477		6,342		5,983		2,748		2,105
Long-term debt	23,677		22,639		21,459		21,767		20,757
Accounts payable and other liabilities	5,599		5,732		5,928		5,938		5,813
Total liabilities	191,891		192,672		190,784		190,716		190,058
Shareholders' equity	29,528		29,853		29,948		30,302		29,903
Total liabilities and shareholders' equity	$	221,419	$	222,525	$	220,732	$	221,018	$	219,961
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

Return to Table of Contents



Average Balances and Rates - Quarters
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	March 31, 2018						December 31, 2017
	(1)		Interest		(2)		(1)		Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	3,538	$	15	1.77	%	$	3,447	$	15	1.71	%
U.S. government-sponsored entities (GSE)	2,385		13		2.23		2,385		13		2.22
Mortgage-backed securities issued by GSE	40,813		248		2.42		40,381		238		2.36
States and political subdivisions	1,215		11		3.78		1,435		11		3.23
Non-agency mortgage-backed	375		7		7.73		391		13		13.27
Other	48		—		2.28		54		—		2.34
Total securities	48,374		294		2.44		48,093		290		2.42
Other earning assets	2,250		25		4.54		3,123		15		1.91
Loans and leases:
Commercial:
Commercial and industrial	58,627		537		3.72		58,478		539		3.65
CRE	21,398		234		4.47		20,998		229		4.33
Lease financing	1,872		14		3.00		1,851		13		2.82
Retail:
Residential mortgage	28,824		289		4.00		28,559		286		4.00
Direct	11,791		141		4.90		11,901		143		4.78
Indirect	16,914		304		7.31		17,426		309		7.05
Revolving credit	2,798		67		8.94		2,759		62		9.01
PCI	631		30		19.21		689		36		20.69
Total loans and leases held for investment	142,855		1,616		4.57		142,661		1,617		4.51
Loans held for sale	1,051		9		3.66		1,428		14		3.67
Total loans and leases	143,906		1,625		4.57		144,089		1,631		4.50
Total earning assets	194,530		1,944		4.04		195,305		1,936		3.95
Nonearning assets	26,889						27,220
Total assets	$	221,419					$	222,525
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,270	25		0.37		$	26,746	22		0.32
Money market and savings	61,690		67		0.44		61,693		57		0.37
Time deposits	13,847		23		0.68		13,744		21		0.57
Foreign office deposits - interest-bearing	935		3		1.42		1,488		4		1.18
Total interest-bearing deposits	103,742		118		0.46		103,671		104		0.40
Short-term borrowings	5,477		20		1.43		6,342		19		1.13
Long-term debt	23,677		150		2.54		22,639		131		2.36
Total interest-bearing liabilities	132,896		288		0.87		132,652		254		0.77
Noninterest-bearing deposits	53,396						54,288
Accounts payable and other liabilities	5,599						5,732
Shareholders' equity	29,528						29,853
Total liabilities and shareholders' equity	$	221,419					$	222,525
Average interest-rate spread					3.16						3.18

Net interest income/ net interest margin			$	1,656	3.44	%			$	1,682	3.43	%
Taxable-equivalent adjustment			$	23					$	38
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Yields are on a taxable-equivalent basis utilizing the marginal income tax rates for the periods presented.
(3) Includes AFS and HTM securities.

Return to Table of Contents



Average Balances and Rates - Quarters
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	September 30, 2017						June 30, 2017						March 31, 2017
	(1)		Interest		(2)		(1)		Interest		(2)		(1)		Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/		Average		Income/		Yields/
	Balances		Expense		Rates		Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	3,794	$	16	1.68	%	$	4,761	$	21	1.73	%	$	4,730	$	20	1.72	%
U.S. government-sponsored entities (GSE)	2,385		13		2.22		2,386		14		2.22		2,386		13		2.22
Mortgage-backed securities issued by GSE	37,734		216		2.29		35,911		198		2.21		34,909		189		2.16
States and political subdivisions	1,596		20		5.07		1,879		25		5.29		2,091		27		5.13
Non-agency mortgage-backed	405		19		18.58		416		25		24.16		432		20		18.85
Other	54		1		2.26		57		—		2.22		59		—		1.89
Total securities	45,968		285		2.47		45,410		283		2.49		44,607		269		2.42
Other earning assets	2,924		11		1.42		3,649		11		1.36		4,259		16		1.49
Loans and leases:
Commercial:
Commercial and industrial	58,211		531		3.63		58,150		518		3.57		57,125		492		3.49
CRE	20,776		229		4.37		20,304		196		3.87		19,892		183		3.74
Lease financing	1,732		12		2.71		1,664		12		2.91		1,653		12		2.84
Retail:
Residential mortgage	28,924		292		4.04		29,392		295		4.01		29,701		297		4.01
Direct	11,960		143		4.73		12,000		135		4.55		12,014		129		4.33
Indirect	17,678		310		6.95		18,127		309		6.83		18,137		302		6.76
Revolving credit	2,668		60		8.92		2,612		57		8.78		2,607		57		8.79
PCI	742		32		17.15		825		37		17.94		883		43		19.72
Total loans and leases held for investment	142,691		1,609		4.48		143,074		1,559		4.37		142,012		1,515		4.31
Loans held for sale	1,490		13		3.70		1,253		11		3.65		1,686		15		3.49
Total loans and leases	144,181		1,622		4.47		144,327		1,570		4.36		143,698		1,530		4.30
Total earning assets	193,073		1,918		3.95		193,386		1,864		3.87		192,564		1,815		3.80
Nonearning assets	27,659						27,632						27,397
Total assets	$	220,732					$	221,018					$	219,961
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,000	20		0.29		$	28,849	15		0.22		$	29,578	13		0.18
Money market and savings	61,450		49		0.32		64,294		47		0.29		64,857		37		0.23
Time deposits	13,794		17		0.51		14,088		17		0.48		14,924		17		0.48
Foreign office deposits - interest-bearing	1,681		5		1.14		459		1		1.03		929		2		0.67
Total interest-bearing deposits	103,925		91		0.35		107,690		80		0.30		110,288		69		0.26
Short-term borrowings	5,983		15		1.03		2,748		5		0.70		2,105		2		0.43
Long-term debt	21,459		124		2.29		21,767		104		1.91		20,757		95		1.83
Total interest-bearing liabilities	131,367		230		0.70		132,205		189		0.57		133,150		166		0.50
Noninterest-bearing deposits	53,489						52,573						51,095
Accounts payable and other liabilities	5,928						5,938						5,813
Shareholders' equity	29,948						30,302						29,903
Total liabilities and shareholders' equity	$	220,732					$	221,018					$	219,961
Average interest-rate spread					3.25						3.30						3.30

Net interest income/ net interest margin			$	1,688	3.48	%			$	1,675	3.47	%			$	1,649	3.46	%
Taxable-equivalent adjustment			$	41					$	40					$	40
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Yields are on a taxable-equivalent basis utilizing the marginal income tax rates for the periods presented.
(3) Includes AFS and HTM securities.

Return to Table of Contents



Credit Quality
BB&T Corporation
(Dollars in millions)
	As of
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2018		2017		2017		2017		2017
Nonperforming Assets (1)
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	257	$	259	$	288	$	300	$	355
CRE	67		45		41		50		60
Lease financing	13		1		2		3		4
Retail:
Residential mortgage	127		129		141		131		172
Direct	64		64		64		65		66
Indirect	74		72		70		63		66
Total nonaccrual loans and leases held for investment (1)(2)	602		570		606		612		723
Foreclosed real estate	40		32		46		48		49
Other foreclosed property	27		25		28		30		29
Total nonperforming assets (1)(2)	$	669	$	627	$	680	$	690	$	801
Performing Troubled Debt Restructurings (TDRs) (3)
Commercial:
Commercial and industrial	$	38	$	50	$	62	$	50	$	51
CRE	12		16		22		24		25
Retail:
Residential mortgage	627		605		609		603		771
Direct	59		62		63		63		65
Indirect	277		281		267		244		244
Revolving credit	29		29		29		29		29
Total performing TDRs (3)(4)	$	1,042	$	1,043	$	1,052	$	1,013	$	1,185
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	—	$	1	$	—	$	—	$	—
CRE	—		1		—		—		—
Retail:
Residential mortgage (5)	420		465		409		401		438
Direct	6		6		9		7		7
Indirect	5		6		6		4		5
Revolving credit	11		12		11		10		10
PCI	48		57		70		71		82
Total loans 90 days past due and still accruing (5)	$	490	$	548	$	505	$	493	$	542
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	31	$	41	$	47	$	32	$	36
CRE	10		8		8		3		12
Lease financing	1		4		1		2		1
Retail:
Residential mortgage (6)	400		472		455		393		401
Direct	55		65		55		54		55
Indirect	272		412		358		341		251
Revolving credit	21		23		22		20		20
PCI	24		27		41		29		29
Total loans 30-89 days past due (6)	$	814	$	1,052	$	987	$	874	$	805
Excludes loans held for sale.
(1) PCI loans are accounted for using the accretion method.
(2) Sales of nonperforming loans totaled $33 million, $44 million, $19 million, $75 million and $74 million for the quarter ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.
(3) Excludes TDRs that are nonperforming totaling $196 million, $189 million, $203 million, $214 million and $218 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively. These amounts are included in total nonperforming assets. During the third quarter of 2017, BB&T began including trial modifications, which are primarily residential mortgage loans, in the troubled debt restructurings disclosures. Prior periods have been adjusted to conform to the current presentation.
(4) Sales of performing TDRs, which were primarily residential mortgage loans, totaled $29 million, $44 million, $49 million, $203 million and $48 million for the quarter ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.
(5) Includes government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase that are past due 90 days or more totaling $23 million, $66 million, $45 million, $32 million and $29 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.
(6) Includes government guaranteed GNMA mortgage loans that BB&T has the right but not the obligation to repurchase that are past due 30-89 days totaling $1 million, $2 million, $2 million, $2 million and $2 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.

Return to Table of Contents



Credit Quality
BB&T Corporation
(Dollars in millions)
	As of/For the Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
	2018			2017			2017			2017			2017
Allowance for Credit Losses
Beginning balance	$	1,609		$	1,601		$	1,602		$	1,599		$	1,599
Provision for credit losses (excluding PCI loans)	153			137			128			151			146
Provision (benefit) for PCI loans	(3		)	1			(2		)	(16		)	2
Charge-offs:
Commercial:
Commercial and industrial	(23		)	(23		)	(13		)	(26		)	(33		)
CRE	(6		)	(2		)	(4		)	(3		)	(1		)
Lease financing	(1		)	(1		)	(2		)	(1		)	(1		)
Retail:
Residential mortgage	(4		)	(8		)	(7		)	(20		)	(12		)
Direct	(19		)	(15		)	(16		)	(16		)	(14		)
Indirect	(107		)	(104		)	(103		)	(88		)	(107		)
Revolving credit	(21		)	(19		)	(17		)	(19		)	(21		)
PCI	—			—			(1		)	—			—
Total charge-offs	(181		)	(172		)	(163		)	(173		)	(189		)
Recoveries:
Commercial:
Commercial and industrial	8			12			8			9			7
CRE	2			4			3			3			6
Lease financing	—			1			1			—			—
Retail:
Residential mortgage	—			1			—			1			—
Direct	6			6			6			7			6
Indirect	15			13			14			16			17
Revolving credit	5			5			4			5			5
Total recoveries	36			42			36			41			41
Net charge-offs	(145		)	(130		)	(127		)	(132		)	(148		)
Ending balance	$	1,614		$	1,609		$	1,601		$	1,602		$	1,599
Allowance for Credit Losses
Allowance for loan and lease losses (excluding PCI loans)	$	1,473		$	1,462		$	1,451		$	1,455		$	1,441
Allowance for PCI loans	25			28			27			30			46
Reserve for unfunded lending commitments	116			119			123			117			112
Total	$	1,614		$	1,609		$	1,601		$	1,602		$	1,599

Return to Table of Contents



Credit Quality
BB&T Corporation
	As of/For the Quarter Ended
	March 31		Dec. 31		Sept. 30		June 30		March 31
	2018		2017		2017		2017		2017
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.57	%	0.73	%	0.69	%	0.61	%	0.56	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.34		0.38		0.35		0.34		0.38
Nonperforming loans and leases as a percentage of loans and leases	0.42		0.40		0.42		0.43		0.51
Nonperforming assets as a percentage of:
Total assets	0.30		0.28		0.31		0.31		0.36
Loans and leases plus foreclosed property	0.47		0.44		0.48		0.48		0.56
Net charge-offs as a percentage of average loans and leases	0.41		0.36		0.35		0.37		0.42
Allowance for loan and lease losses as a percentage of loans and leases	1.05		1.04		1.04		1.03		1.04
Ratio of allowance for loan and lease losses to:
Net charge-offs	2.55X		2.89X		2.93X		2.80X		2.49X
Nonperforming loans and leases	2.49X		2.62X		2.44X		2.43X		2.05X
Asset Quality Ratios (Excluding Government Guaranteed and PCI)
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.04	%	0.05	%	0.05	%	0.05	%	0.06	%
Applicable ratios are annualized. Loans and leases exclude loans held for sale.

Return to Table of Contents



Credit Quality
BB&T Corporation
(Dollars in millions)
	As of March 31, 2018
					Past Due 30-89					Past Due 90+
Troubled Debt Restructurings	Current Status				Days					Days					Total
Performing TDRs: (1)
Commercial:
Commercial and industrial	$	38	100.0	%	$	—		—	%	$	—		—	%	$	38
CRE	12		100.0		—			—		—			—		12
Lease financing	—		100.0		—			—		—			—		—
Retail:
Residential mortgage	346		55.2		102			16.3		179			28.5		627
Direct	57		96.6		2			3.4		—			—		59
Indirect	239		86.3		38			13.7		—			—		277
Revolving credit	24		82.8		4			13.8		1			3.4		29
Total performing TDRs (1)	716		68.7		146			14.0		180			17.3		1,042
Nonperforming TDRs (2)	98		50.0		28			14.3		70			35.7		196
Total TDRs (1)(2)	$	814	65.7	%	$	174		14.1	%	$	250		20.2	%	$	1,238

					Quarter Ended
					March 31			Dec. 31		Sept. 30			June 30		March 31
					2018			2017		2017			2017		2017
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.11		%	0.07	%	0.04		%	0.12	%	0.18		%
CRE					0.08			(0.06	)	0.03			(0.01	)	(0.09		)
Lease financing					0.09			0.14		0.19			0.22		0.20
Retail:
Residential mortgage					0.05			0.10		0.08			0.28		0.15
Direct					0.43			0.30		0.34			0.27		0.27
Indirect					2.21			2.09		1.98			1.61		2.01
Revolving credit					2.37			2.13		2.00			2.06		2.50
PCI					—			—		0.38			—		—
Total loans and leases					0.41			0.36		0.35			0.37		0.42
Applicable ratios are annualized.
(1) Past due performing TDRs are included in past due disclosures.
(2) Nonperforming TDRs are included in nonaccrual loan disclosures.

Return to Table of Contents



Preliminary Capital Information - Five Quarter Trend
BB&T Corporation
(Dollars in millions, except per share data, shares in thousands)
	As of / Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
	2018			2017			2017			2017			2017
Selected Capital Information
Risk-based capital:
Common equity tier 1	$	18,104		$	18,051		$	17,869		$	18,368		$	18,063
Tier 1	21,156			21,102			20,920			21,419			21,115
Total	24,722			24,653			24,582			25,040			24,726
Risk-weighted assets	176,948			177,217			176,024			177,518			175,684
Average quarterly tangible assets	213,403			214,163			212,069			212,394			211,495
Risk-based capital ratios:
Common equity tier 1	10.2		%	10.2		%	10.2		%	10.3		%	10.3		%
Tier 1	12.0			11.9			11.9			12.1			12.0
Total	14.0			13.9			14.0			14.1			14.1
Leverage capital ratio	9.9			9.9			9.9			10.1			10.0
Equity as a percentage of total assets	13.4			13.4			13.5			13.7			13.6
Common equity per common share	$	34.06		$	34.01		$	33.92		$	33.73		$	33.19

Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	29,662		$	29,695		$	29,853		$	30,349		$	30,025
Less:
Preferred stock	3,053			3,053			3,053			3,053			3,053
Noncontrolling interests	50			47			43			42			44
Intangible assets	10,296			10,329			10,363			10,400			10,436
Tangible common equity	$	16,263		$	16,266		$	16,394		$	16,854		$	16,492

Outstanding shares at end of period (in thousands)	779,752			782,006			788,921			808,093			811,370

Tangible Common Equity Per Common Share	$	20.86		$	20.80		$	20.78		$	20.86		$	20.33

(1)

Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. BB&T's management uses these measures to assess the quality of capital and returns relative to balance sheet risk and believes investors may find them useful in their analysis of the Corporation. These measures are not necessarily comparable to similar measures that may be presented by other companies.

Return to Table of Contents



Selected Items, Selected Mortgage Banking Information & Additional Information
BB&T Corporation
(Dollars in millions, except per share data)
										Favorable (Unfavorable)
													After-Tax at
Selected Items										Pre-Tax			Marginal Rate
First Quarter 2018
None										N/A			N/A

Fourth Quarter 2017
Charitable contribution	Other expense									$	(100	)	$	(63	)
One-time bonus	Personnel expense									(36		)	(23		)
Impact of tax reform	Provision for income taxes									N/A			43

Third Quarter 2017
None										N/A			N/A

Second Quarter 2017
None										N/A			N/A

First Quarter 2017
Income tax benefit on equity-based awards	Provision for income taxes									N/A			35

	As of / Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
Selected Mortgage Banking Information	2018			2017			2017			2017			2017
Mortgage Banking Income
Residential mortgage production revenue	$	44		$	45		$	56		$	39		$	36
Residential mortgage servicing revenue	65			65			63			65			68
Realization of expected residential MSR cash flows	(33		)	(35		)	(36		)	(36		)	(34		)
Commercial mortgage production revenue	22			27			22			23			21
Commercial mortgage servicing revenue	9			9			10			10			10
Realization of expected commercial MSR cash flows	(9		)	(9		)	(6		)	(8		)	(6		)
Mortgage banking income before MSR valuation	98			102			109			93			95
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	68			15			(5		)	(22		)	28
MSRs hedge gains (losses)	(67		)	(13		)	10			23			(20		)
Net MSRs valuation	1			2			5			1			8
Total mortgage banking income	$	99		$	104		$	114		$	94		$	103
Other Mortgage Banking Information
Residential mortgage loan originations	$	3,328		$	3,970		$	3,463		$	3,524		$	3,993
Residential mortgage servicing portfolio (1):
Loans serviced for others	88,746			89,124			89,391			90,106			90,855
Bank-owned loans serviced	29,081			29,300			29,345			30,067			30,396
Total servicing portfolio	117,827			118,424			118,736			120,173			121,251
Weighted-average coupon rate on mortgage loans serviced for others	4.00		%	4.00		%	4.00		%	4.00		%	4.01		%
Weighted-average servicing fee on mortgage loans serviced for others	0.277			0.278			0.278			0.279			0.280

Additional Information
Derivatives notional amount	$	78,649		$	75,172		$	72,484		$	80,901		$	77,556
Fair value of derivatives, net	(213		)	(271		)	(203		)	(187		)	(230		)
Common stock prices:
High	56.31			51.11			48.90			46.50			49.88
Low	49.65			44.62			43.03			41.17			42.73
End of period	52.04			49.72			46.94			45.41			44.70
Banking offices	2,047			2,049			2,127			2,188			2,193
ATMs	2,836			2,824			2,899			2,950			3,117
FTEs	35,908			36,484			37,213			37,397			37,406
(1) Amounts reported are unpaid principal balance.

Return to Table of Contents



Non-GAAP Reconciliations
BB&T Corporation
(Dollars in millions)
	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
Efficiency Ratio (1)	2018			2017			2017			2017			2017
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	1,686		$	1,855		$	1,745		$	1,742		$	2,102
Amortization of intangibles	(33		)	(34		)	(34		)	(36		)	(38		)
Merger-related and restructuring charges, net	(28		)	(22		)	(47		)	(10		)	(36		)
Gain (loss) on early extinguishment of debt	—			—			—			—			(392		)
Charitable contribution	—			(100		)	—			—			—
One-time bonus	—			(36		)	—			—			—
Efficiency Ratio Numerator - Adjusted	$	1,625		$	1,663		$	1,664		$	1,696		$	1,636

Efficiency Ratio Denominator - Revenue (2) - GAAP	$	2,813		$	2,869		$	2,813		$	2,855		$	2,780
Taxable equivalent adjustment	23			38			41			40			40
Securities (gains) losses, net	—			1			—			—			—
Efficiency Ratio Denominator - Adjusted	$	2,836		$	2,908		$	2,854		$	2,895		$	2,820

Efficiency Ratio - GAAP	60.0		%	64.7		%	62.0		%	61.0		%	75.6		%
Efficiency Ratio - Adjusted	57.3			57.2			58.3			58.6			58.0

(1)

The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges and other selected items. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. These measures are not necessarily comparable to similar measures that may be presented by other companies.


(2)	Revenue is defined as net interest income plus noninterest income.



	Quarter Ended
	March 31			Dec. 31			Sept. 30			June 30			March 31
Return on Average Tangible Common Shareholders' Equity (1)	2018			2017			2017			2017			2017
Net income available to common shareholders	$	745		$	614		$	597		$	631		$	378
Plus: Amortization of intangibles, net of tax	24			21			22			22			24
Tangible net income available to common shareholders	$	769		$	635		$	619		$	653		$	402

Average common shareholders' equity	$	26,428		$	26,759		$	26,857		$	27,208		$	26,807
Less: Average intangible assets	10,312			10,346			10,382			10,418			10,464
Average tangible common shareholders' equity	$	16,116		$	16,413		$	16,475		$	16,790		$	16,343
Return on average tangible common shareholders' equity	19.36		%	15.35		%	14.89		%	15.60		%	9.98		%

(1)



	Quarter Ended
	March 31		Dec. 31			Sept. 30		June 30		March 31
Diluted EPS (1)	2018		2017			2017		2017		2017
Net income available to common shareholders - GAAP	$	745	$	614		$	597	$	631	$	378
Merger-related and restructuring charges	22		14			29		6		22
Loss on early extinguishment of debt	—		—			—		—		246
Charitable contribution	—		63			—		—		—
One time bonus	—		23			—		—		—
Excess tax benefit on equity-based awards	—		—			—		—		(35		)
Impact of tax reform	—		(43		)	—		—		—
Net income available to common shareholders - adjusted	$	767	$	671		$	626	$	637	$	611

Weighted average shares outstanding - diluted	791,005		795,867			806,124		819,389		822,719

Diluted EPS - GAAP	$	0.94	$	0.77		$	0.74	$	0.77	$	0.46
Diluted EPS - adjusted	0.97		0.84			0.78		0.78		0.74

(1)

The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. BB&T's management uses this measure in their analysis of the Corporation's performance. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.



	Quarter Ended
	March 31
Net Interest Margin (1)	2018
Net Interest Income - taxable-equivalent	$	1,656
Estimated impact of tax reform	10
Net Interest Income - adjusted	$	1,666

Average earning assets	$	194,530

Net interest margin - taxable equivalent	3.44		%
Net interest margin - adjusted	3.46


(1)	The adjusted net interest margin is a non-GAAP measure in that it estimates the impact on taxable-equivalent net interest income as if the tax reform legislation had not been enacted. BB&T's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of tax reform.

TRUIST FINANCIAL CORP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 18, 2018

Attached files

TRUIST FINANCIAL CORP Reports