Truist Financial (TFC) 8-K Results of Operations and Financial Condition

Quarterly Performance Summary

BB&T Corporation

Fourth 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
Average Balances and Rates - Year-To-Date	11
Credit Quality	12
Capital Information - Five Quarter Trend	15
Selected Items, Selected Mortgage Banking Information & Additional Information	16
Non-GAAP Reconciliations	17

Financial Highlights
	Quarter Ended								Year-to-Date
	December 31						%		December 31						%
(Dollars in millions, except per share data, shares in thousands)	2018			2017			Change		2018			2017			Change
Summary Income Statement
Interest income	$	2,160		$	1,936		11.6	%	$	8,216		$	7,533		9.1	%
Interest expense	431			254			69.7		1,438			839			71.4
Net interest income - taxable equivalent	1,729			1,682			2.8		6,778			6,694			1.3
Less: Taxable-equivalent adjustment	24			38			(36.8	)	96			159			(39.6	)
Net interest income	1,705			1,644			3.7		6,682			6,535			2.2
Provision for credit losses	146			138			5.8		566			547			3.5
Net interest income after provision for credit losses	1,559			1,506			3.5		6,116			5,988			2.1
Noninterest income	1,235			1,225			0.8		4,876			4,782			2.0
Noninterest expense	1,784			1,855			(3.8	)	6,932			7,444			(6.9	)
Income before income taxes	1,010			876			15.3		4,060			3,326			22.1
Provision for income taxes	205			209			(1.9	)	803			911			(11.9	)
Net income	805			667			20.7		3,257			2,415			34.9
Noncontrolling interests	7			9			(22.2	)	20			21			(4.8	)
Preferred stock dividends	44			44			—		174			174			—
Net income available to common shareholders	754			614			22.8		3,063			2,220			38.0
Per Common Share Data
Earnings per share-basic	$	0.99		$	0.78		26.9	%	$	3.96		$	2.78		42.4	%
Earnings per share-diluted	0.97			0.77			26.0		3.91			2.74			42.7
Cash dividends declared	0.405			0.330			22.7		1.560			1.260			23.8
Common equity	35.46			34.01			4.3		35.46			34.01			4.3
Tangible common equity (1)	21.61			20.80			3.9		21.61			20.80			3.9
End of period shares outstanding	763,326			782,006			(2.4	)	763,326			782,006			(2.4	)
Weighted average shares outstanding-basic	765,013			783,764			(2.4	)	772,963			799,217			(3.3	)
Weighted average shares outstanding-diluted	775,402			795,867			(2.6	)	783,484			810,977			(3.4	)
Performance Ratios
Return on average assets	1.43		%	1.19		%			1.47		%	1.09		%
Return on average risk-weighted assets	1.77			1.50					1.82			1.37
Return on average common shareholders' equity	11.14			9.10					11.50			8.25
Return on average tangible common shareholders' equity (2)	19.02			15.35					19.54			13.99
Net interest margin - taxable equivalent	3.49			3.43					3.46			3.46
Fee income ratio	42.0			42.7					42.2			42.3
Efficiency ratio-GAAP	60.7			64.7					60.0			65.8
Efficiency ratio-adjusted (2)	56.5			57.2					57.1			58.0
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.26		%	0.28		%			0.26		%	0.28		%
Loans and leases plus foreclosed property	0.39			0.44					0.39			0.44
Net charge-offs as a percentage of average loans and leases	0.38			0.36					0.36			0.38
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.04					1.05			1.04
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	2.99x			2.62x					2.99x			2.62x
Average Balances
Assets	$	223,625		$	222,525		0.5	%	$	222,273		$	221,065		0.5	%
Securities (3)	46,610			48,093			(3.1	)	47,100			46,029			2.3
Loans and leases	148,457			144,089			3.0		146,417			144,075			1.6
Deposits	157,842			157,959			(0.1	)	157,483			159,241			(1.1	)
Common shareholders' equity	26,860			26,759			0.4		26,640			26,907			(1.0	)
Shareholders' equity	29,965			29,853			0.4		29,743			30,001			(0.9	)
Period-End Balances
Assets	$	225,697		$	221,642		1.8	%	$	225,697		$	221,642		1.8	%
Securities (3)	45,590			47,574			(4.2	)	45,590			47,574			(4.2	)
Loans and leases	150,001			144,800			3.6		150,001			144,800			3.6
Deposits	161,199			157,371			2.4		161,199			157,371			2.4
Common shareholders' equity	27,069			26,595			1.8		27,069			26,595			1.8
Shareholders' equity	30,178			29,695			1.6		30,178			29,695			1.6
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	10.2		%	10.2		%			10.2		%	10.2		%
Tier 1	11.8			11.9					11.8			11.9
Total	13.8			13.9					13.8			13.9
Leverage	9.9			9.9					9.9			9.9
Applicable ratios are annualized.
(1) Represents 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) Represents 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) 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.

BB&T Corporation 1

Financial Highlights - Five Quarter Trend
	Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2018			2018			2018			2018			2017
Summary Income Statement
Interest income	$	2,160		$	2,096		$	2,016		$	1,944		$	1,936
Interest expense	431			382			337			288			254
Net interest income - taxable equivalent	1,729			1,714			1,679			1,656			1,682
Less: Taxable-equivalent adjustment	24			27			22			23			38
Net interest income	1,705			1,687			1,657			1,633			1,644
Provision for credit losses	146			135			135			150			138
Net interest income after provision for credit losses	1,559			1,552			1,522			1,483			1,506
Noninterest income	1,235			1,239			1,222			1,180			1,225
Noninterest expense	1,784			1,742			1,720			1,686			1,855
Income before income taxes	1,010			1,049			1,024			977			876
Provision for income taxes	205			210			202			186			209
Net income	805			839			822			791			667
Noncontrolling interests	7			7			3			3			9
Preferred stock dividends	44			43			44			43			44
Net income available to common shareholders	754			789			775			745			614
Per Common Share Data
Earnings per share-basic	$	0.99		$	1.02		$	1.00		$	0.96		$	0.78
Earnings per share-diluted	0.97			1.01			0.99			0.94			0.77
Cash dividends declared	0.405			0.405			0.375			0.375			0.330
Common equity	35.46			34.90			34.51			34.06			34.01
Tangible common equity (1)	21.61			21.12			21.26			20.86			20.80
End of period shares outstanding	763,326			770,620			774,447			779,752			782,006
Weighted average shares outstanding-basic	765,013			771,562			775,836			779,617			783,764
Weighted average shares outstanding-diluted	775,402			781,867			785,750			791,005			795,867
Performance Ratios
Return on average assets	1.43		%	1.49		%	1.49		%	1.45		%	1.19		%
Return on average risk-weighted assets	1.77			1.85			1.85			1.81			1.50
Return on average common shareholders' equity	11.14			11.69			11.74			11.43			9.10
Return on average tangible common shareholders' equity (2)	19.02			20.00			19.78			19.36			15.35
Net interest margin - taxable equivalent	3.49			3.47			3.45			3.44			3.43
Fee income ratio	42.0			42.3			42.5			41.9			42.7
Efficiency ratio-GAAP	60.7			59.5			59.7			60.0			64.7
Efficiency ratio-adjusted (2)	56.5			57.3			57.4			57.3			57.2
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.26		%	0.27		%	0.28		%	0.30		%	0.28		%
Loans and leases plus foreclosed property	0.39			0.41			0.43			0.47			0.44
Net charge-offs as a percentage of average loans and leases	0.38			0.35			0.30			0.41			0.36
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.05			1.05			1.05			1.04
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	2.99x			2.86x			2.74x			2.49x			2.62x
Average Balances
Assets	$	223,625		$	222,674		$	221,344		$	221,419		$	222,525
Securities (3)	46,610			46,299			47,145			48,374			48,093
Loans and leases	148,457			147,489			145,752			143,906			144,089
Deposits	157,842			157,271			157,676			157,138			157,959
Common shareholders' equity	26,860			26,782			26,483			26,428			26,759
Shareholders' equity	29,965			29,887			29,585			29,528			29,853
Period-End Balances
Assets	$	225,697		$	222,885		$	222,681		$	220,729		$	221,642
Securities (3)	45,590			45,368			45,668			47,407			47,574
Loans and leases	150,001			147,712			147,798			144,206			144,800
Deposits	161,199			154,556			159,475			158,196			157,371
Common shareholders' equity	27,069			26,895			26,727			26,559			26,595
Shareholders' equity	30,178			30,007			29,832			29,662			29,695
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	10.2		%	10.2		%	10.2		%	10.2		%	10.2		%
Tier 1	11.8			11.9			11.9			12.0			11.9
Total	13.8			13.9			13.9			14.0			13.9
Leverage	9.9			10.0			10.0			9.9			9.9
Applicable ratios are annualized.
(1) Represents 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) Represents 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) 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.

2 BB&T Corporation

Consolidated Statements of Income
	Quarter Ended										Year-to-Date
	Dec. 31					Change					Dec. 31					Change
(Dollars in millions, except per share data, shares in thousands)	2018		2017			$			%		2018		2017			$			%
Interest Income
Interest and fees on loans and leases	$	1,830	$	1,598		$	232		14.5	%	$	6,894	$	6,230		$	664		10.7	%
Interest and dividends on securities	292		286			6			2.1		1,160		1,092			68			6.2
Interest on other earning assets	14		14			—			—		66		52			14			26.9
Total interest income	2,136		1,898			238			12.5		8,120		7,374			746			10.1
Interest Expense
Interest on deposits	206		104			102			98.1		644		344			300			87.2
Interest on short-term borrowings	39		19			20			105.3		111		41			70			170.7
Interest on long-term debt	186		131			55			42.0		683		454			229			50.4
Total interest expense	431		254			177			69.7		1,438		839			599			71.4
Net Interest Income	1,705		1,644			61			3.7		6,682		6,535			147			2.2
Provision for credit losses	146		138			8			5.8		566		547			19			3.5
Net Interest Income After Provision for Credit Losses	1,559		1,506			53			3.5		6,116		5,988			128			2.1
Noninterest Income
Insurance income	487		418			69			16.5		1,852		1,754			98			5.6
Service charges on deposits	185		183			2			1.1		712		706			6			0.8
Mortgage banking income	86		104			(18		)	(17.3	)	358		415			(57		)	(13.7	)
Investment banking and brokerage fees and commissions	139		111			28			25.2		477		410			67			16.3
Trust and investment advisory revenues	70		72			(2		)	(2.8	)	285		278			7			2.5
Bankcard fees and merchant discounts	74		67			7			10.4		287		271			16			5.9
Checkcard fees	56		55			1			1.8		221		214			7			3.3
Operating lease income	35		37			(2		)	(5.4	)	145		146			(1		)	(0.7	)
Income from bank-owned life insurance	28		33			(5		)	(15.2	)	116		122			(6		)	(4.9	)
Securities gains (losses), net	2		(1		)	3			NM		3		(1		)	4			NM
Other income	73		146			(73		)	(50.0	)	420		467			(47		)	(10.1	)
Total noninterest income	1,235		1,225			10			0.8		4,876		4,782			94			2.0
Noninterest Expense
Personnel expense	1,096		1,072			24			2.2		4,313		4,226			87			2.1
Occupancy and equipment expense	188		195			(7		)	(3.6	)	758		784			(26		)	(3.3	)
Software expense	70		65			5			7.7		272		242			30			12.4
Outside IT services	35		38			(3		)	(7.9	)	132		160			(28		)	(17.5	)
Regulatory charges	18		38			(20		)	(52.6	)	134		153			(19		)	(12.4	)
Amortization of intangibles	34		34			—			—		131		142			(11		)	(7.7	)
Loan-related expense	25		32			(7		)	(21.9	)	108		130			(22		)	(16.9	)
Professional services	43		36			7			19.4		138		123			15			12.2
Merger-related and restructuring charges, net	76		22			54			NM		146		115			31			27.0
Loss (gain) on early extinguishment of debt	—		—			—			—		—		392			(392		)	(100.0	)
Other expense	199		323			(124		)	(38.4	)	800		977			(177		)	(18.1	)
Total noninterest expense	1,784		1,855			(71		)	(3.8	)	6,932		7,444			(512		)	(6.9	)
Earnings
Income before income taxes	1,010		876			134			15.3		4,060		3,326			734			22.1
Provision for income taxes	205		209			(4		)	(1.9	)	803		911			(108		)	(11.9	)
Net income	805		667			138			20.7		3,257		2,415			842			34.9
Noncontrolling interests	7		9			(2		)	(22.2	)	20		21			(1		)	(4.8	)
Preferred stock dividends	44		44			—			—		174		174			—			—
Net income available to common shareholders	$	754	$	614		$	140		22.8	%	$	3,063	$	2,220		$	843		38.0	%
Earnings Per Common Share
Basic	$	0.99	$	0.78		$	0.21		26.9	%	$	3.96	$	2.78		$	1.18		42.4	%
Diluted	0.97		0.77			0.20			26.0		3.91		2.74			1.17			42.7
Weighted Average Shares Outstanding
Basic	765,013		783,764			(18,751		)	(2.4	)	772,963		799,217			(26,254)			(3.3	)
Diluted	775,402		795,867			(20,465		)	(2.6	)	783,484		810,977			(27,493)			(3.4	)
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

BB&T Corporation 3

Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2018		2018		2018		2018		2017
Interest Income
Interest and fees on loans and leases	$	1,830	$	1,772	$	1,687	$	1,605	$	1,598
Interest and dividends on securities	292		283		294		291		286
Interest on other earning assets	14		14		13		25		14
Total interest income	2,136		2,069		1,994		1,921		1,898
Interest Expense
Interest on deposits	206		172		148		118		104
Interest on short-term borrowings	39		29		23		20		19
Interest on long-term debt	186		181		166		150		131
Total interest expense	431		382		337		288		254
Net Interest Income	1,705		1,687		1,657		1,633		1,644
Provision for credit losses	146		135		135		150		138
Net Interest Income After Provision for Credit Losses	1,559		1,552		1,522		1,483		1,506
Noninterest Income
Insurance income	487		448		481		436		418
Service charges on deposits	185		183		179		165		183
Mortgage banking income	86		79		94		99		104
Investment banking and brokerage fees and commissions	139		116		109		113		111
Trust and investment advisory revenues	70		71		72		72		72
Bankcard fees and merchant discounts	74		72		72		69		67
Checkcard fees	56		56		57		52		55
Operating lease income	35		37		36		37		37
Income from bank-owned life insurance	28		27		30		31		33
Securities gains (losses), net	2		—		1		—		(1		)
Other income	73		150		91		106		146
Total noninterest income	1,235		1,239		1,222		1,180		1,225
Noninterest Expense
Personnel expense	1,096		1,104		1,074		1,039		1,072
Occupancy and equipment expense	188		189		187		194		195
Software expense	70		70		67		65		65
Outside IT services	35		33		32		32		38
Regulatory charges	18		37		39		40		38
Amortization of intangibles	34		33		31		33		34
Loan-related expense	25		28		26		29		32
Professional services	43		33		32		30		36
Merger-related and restructuring charges, net	76		18		24		28		22
Other expense	199		197		208		196		323
Total noninterest expense	1,784		1,742		1,720		1,686		1,855
Earnings
Income before income taxes	1,010		1,049		1,024		977		876
Provision for income taxes	205		210		202		186		209
Net income	805		839		822		791		667
Noncontrolling interests	7		7		3		3		9
Preferred stock dividends	44		43		44		43		44
Net income available to common shareholders	$	754	$	789	$	775	$	745	$	614
Earnings Per Common Share
Basic	$	0.99	$	1.02	$	1.00	$	0.96	$	0.78
Diluted	0.97		1.01		0.99		0.94		0.77
Weighted Average Shares Outstanding
Basic	765,013		771,562		775,836		779,617		783,764
Diluted	775,402		781,867		785,750		791,005		795,867
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.

4 BB&T Corporation

Segment Financial Performance - Preliminary
	Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions)	2018			2018			2018			2018			2017
Community Banking Retail and Consumer Finance
Net interest income (expense)	$	881		$	880		$	853		$	837		$	857
Net intersegment interest income (expense)	87			76			69			48			37
Segment net interest income	968			956			922			885			894
Allocated provision for credit losses	151			121			110			122			138
Noninterest income	352			347			355			340			359
Noninterest expense	661			661			663			669			694
Income (loss) before income taxes	508			521			504			434			421
Provision (benefit) for income taxes	124			128			124			107			157
Segment net income (loss)	$	384		$	393		$	380		$	327		$	264
Community Banking Commercial
Net interest income (expense)	$	532		$	513		$	491		$	464		$	453
Net intersegment interest income (expense)	59			58			54			70			93
Segment net interest income	591			571			545			534			546
Allocated provision for credit losses	14			18			43			37			18
Noninterest income	112			109			110			106			107
Noninterest expense	267			262			254			253			276
Income (loss) before income taxes	422			400			358			350			359
Provision (benefit) for income taxes	93			90			80			79			125
Segment net income (loss)	$	329		$	310		$	278		$	271		$	234
Financial Services and Commercial Finance
Net interest income (expense)	$	190		$	171		$	169		$	159		$	154
Net intersegment interest income (expense)	21			26			19			18			25
Segment net interest income	211			197			188			177			179
Allocated provision for credit losses	5			5			(4		)	(5		)	(13		)
Noninterest income	323			308			303			301			315
Noninterest expense	334			312			312			301			307
Income (loss) before income taxes	195			188			183			182			200
Provision (benefit) for income taxes	40			39			38			38			64
Segment net income (loss)	$	155		$	149		$	145		$	144		$	136
Insurance Holdings
Net interest income (expense)	$	32		$	32		$	29		$	26		$	25
Net intersegment interest income (expense)	(10		)	(9		)	(7		)	(6		)	(6		)
Segment net interest income	22			23			22			20			19
Allocated provision for credit losses	—			1			—			1			—
Noninterest income	496			452			484			439			428
Noninterest expense	415			416			408			375			393
Income (loss) before income taxes	103			58			98			83			54
Provision (benefit) for income taxes	26			15			25			21			21
Segment net income (loss)	$	77		$	43		$	73		$	62		$	33
Other, Treasury & Corporate (1)
Net interest income (expense)	$	70		$	91		$	115		$	147		$	155
Net intersegment interest income (expense)	(157		)	(151		)	(135		)	(130		)	(149		)
Segment net interest income	(87		)	(60		)	(20		)	17			6
Allocated provision for credit losses	(24		)	(10		)	(14		)	(5		)	(5		)
Noninterest income	(48		)	23			(30		)	(6		)	16
Noninterest expense	107			91			83			88			185
Income (loss) before income taxes	(218		)	(118		)	(119		)	(72		)	(158		)
Provision (benefit) for income taxes	(78		)	(62		)	(65		)	(59		)	(158		)
Segment net income (loss)	$	(140	)	$	(56	)	$	(54	)	$	(13	)	$	—
Total BB&T Corporation
Net interest income (expense)	$	1,705		$	1,687		$	1,657		$	1,633		$	1,644
Net intersegment interest income (expense)	—			—			—			—			—
Segment net interest income	1,705			1,687			1,657			1,633			1,644
Allocated provision for credit losses	146			135			135			150			138
Noninterest income	1,235			1,239			1,222			1,180			1,225
Noninterest expense	1,784			1,742			1,720			1,686			1,855
Income (loss) before income taxes	1,010			1,049			1,024			977			876
Provision (benefit) for income taxes	205			210			202			186			209
Net income	$	805		$	839		$	822		$	791		$	667
(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

BB&T Corporation 5

Consolidated Ending Balance Sheets - Five Quarter Trend
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions)	2018			2018			2018			2018			2017
Assets
Cash and due from banks	$	2,753		$	2,123		$	2,046		$	1,869		$	2,243
Interest-bearing deposits with banks	984			748			662			912			343
Cash equivalents	143			135			213			132			127
Restricted cash	107			147			132			198			370
Securities available for sale at fair value	25,038			24,286			23,919			25,017			24,547
Securities held to maturity at amortized cost	20,552			21,082			21,749			22,390			23,027
Loans and leases:
Commercial:
Commercial and industrial	61,935			59,722			60,474			59,132			59,153
CRE	21,060			21,466			21,610			21,497			21,263
Lease financing	2,018			2,028			1,924			1,886			1,911
Retail:
Residential mortgage	31,393			30,821			29,965			28,792			28,725
Direct	11,584			11,618			11,661			11,675			11,891
Indirect	17,425			17,468			17,140			16,680			17,235
Revolving credit	3,132			3,070			2,876			2,766			2,872
PCI	466			497			533			589			651
Total loans and leases held for investment	149,013			146,690			146,183			143,017			143,701
Loans held for sale	988			1,022			1,615			1,189			1,099
Total loans and leases	150,001			147,712			147,798			144,206			144,800
Allowance for loan and lease losses	(1,558		)	(1,538		)	(1,530		)	(1,498		)	(1,490		)
Premises and equipment	2,118			2,154			2,154			2,078			2,055
Goodwill	9,818			9,832			9,617			9,617			9,618
Core deposit and other intangible assets	758			789			647			679			711
Mortgage servicing rights at fair value	1,108			1,179			1,143			1,119			1,056
Other assets	13,875			14,236			14,131			14,010			14,235
Total assets	$	225,697		$	222,885		$	222,681		$	220,729		$	221,642
Liabilities
Deposits:
Noninterest-bearing deposits	$	53,025		$	53,646		$	54,270		$	55,085		$	53,767
Interest checking	28,130			26,590			27,257			27,217			27,677
Money market and savings	63,467			61,597			63,167			62,169			62,757
Time deposits	16,577			12,723			14,781			13,725			13,170
Total deposits	161,199			154,556			159,475			158,196			157,371
Short-term borrowings	5,178			9,652			3,576			4,321			4,938
Long-term debt	23,709			23,236			24,081			23,410			23,648
Accounts payable and other liabilities	5,433			5,434			5,717			5,140			5,990
Total liabilities	195,519			192,878			192,849			191,067			191,947
Shareholders' Equity:
Preferred stock	3,053			3,053			3,053			3,053			3,053
Common stock	3,817			3,853			3,872			3,899			3,910
Additional paid-in capital	6,849			7,221			7,364			7,593			7,893
Retained earnings	18,118			17,673			17,197			16,712			16,259
Accumulated other comprehensive loss	(1,715		)	(1,852		)	(1,706		)	(1,645		)	(1,467		)
Noncontrolling interests	56			59			52			50			47
Total shareholders' equity	30,178			30,007			29,832			29,662			29,695
Total liabilities and shareholders' equity	$	225,697		$	222,885		$	222,681		$	220,729		$	221,642

6 BB&T Corporation

Average Balance Sheets
	Quarter Ended									Year-to-Date
	December 31				Change					December 31				Change
(Dollars in millions)	2018		2017		$			%		2018		2017		$			%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	4,555	$	3,447	$	1,108		32.1	%	$	3,800	$	4,179	$	(379	)	(9.1	)%
U.S. government-sponsored entities (GSE)	2,408		2,385		23			1.0		2,394		2,385		9			0.4
Mortgage-backed securities issued by GSE	38,566		40,381		(1,815		)	(4.5	)	39,559		37,250		2,309			6.2
States and political subdivisions	725		1,435		(710		)	(49.5	)	958		1,748		(790		)	(45.2	)
Non-agency mortgage-backed	326		391		(65		)	(16.6	)	349		411		(62		)	(15.1	)
Other	30		54		(24		)	(44.4	)	40		56		(16		)	(28.6	)
Total securities	46,610		48,093		(1,483		)	(3.1	)	47,100		46,029		1,071			2.3
Other earning assets	2,146		3,123		(977		)	(31.3	)	2,251		3,484		(1,233		)	(35.4	)
Loans and leases:
Commercial:
Commercial and industrial	60,553		58,478		2,075			3.5		59,663		57,994		1,669			2.9
CRE	21,301		20,998		303			1.4		21,435		20,497		938			4.6
Lease financing	1,990		1,851		139			7.5		1,917		1,726		191			11.1
Retail:
Residential mortgage	31,103		28,559		2,544			8.9		29,932		29,140		792			2.7
Direct	11,600		11,901		(301		)	(2.5	)	11,670		11,968		(298		)	(2.5	)
Indirect	17,436		17,426		10			0.1		17,111		17,840		(729		)	(4.1	)
Revolving credit	3,070		2,759		311			11.3		2,913		2,662		251			9.4
PCI	486		689		(203		)	(29.5	)	548		784		(236		)	(30.1	)
Total loans and leases held for investment	147,539		142,661		4,878			3.4		145,189		142,611		2,578			1.8
Loans held for sale	918		1,428		(510		)	(35.7	)	1,228		1,464		(236		)	(16.1	)
Total loans and leases	148,457		144,089		4,368			3.0		146,417		144,075		2,342			1.6
Total earning assets	197,213		195,305		1,908			1.0		195,768		193,588		2,180			1.1
Nonearning assets	26,412		27,220		(808		)	(3.0	)	26,505		27,477		(972		)	(3.5	)
Total assets	$	223,625	$	222,525	$	1,100		0.5	%	$	222,273	$	221,065	$	1,208		0.5	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	53,732	$	54,288	$	(556	)	(1.0	)%	$	53,818	$	52,872	$	946		1.8	%
Interest checking	26,921		26,746		175			0.7		26,951		28,033		(1,082		)	(3.9	)
Money market and savings	62,261		61,693		568			0.9		62,257		63,061		(804		)	(1.3	)
Time deposits	14,682		13,744		938			6.8		13,963		14,133		(170		)	(1.2	)
Foreign office deposits - interest-bearing	246		1,488		(1,242		)	(83.5	)	494		1,142		(648		)	(56.7	)
Total deposits	157,842		157,959		(117		)	(0.1	)	157,483		159,241		(1,758		)	(1.1	)
Short-term borrowings	6,979		6,342		637			10.0		5,955		4,311		1,644			38.1
Long-term debt	23,488		22,639		849			3.8		23,755		21,660		2,095			9.7
Accounts payable and other liabilities	5,351		5,732		(381		)	(6.6	)	5,337		5,852		(515		)	(8.8	)
Total liabilities	193,660		192,672		988			0.5		192,530		191,064		1,466			0.8
Shareholders' equity	29,965		29,853		112			0.4		29,743		30,001		(258		)	(0.9	)
Total liabilities and shareholders' equity	$	223,625	$	222,525	$	1,100		0.5	%	$	222,273	$	221,065	$	1,208		0.5	%
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

BB&T Corporation 7

Average Balance Sheets - Five Quarter Trend
	Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2018		2018		2018		2018		2017
Assets
Securities at amortized cost (1):
U.S. Treasury	$	4,555	$	3,561	$	3,537	$	3,538	$	3,447
U.S. government-sponsored entities (GSE)	2,408		2,399		2,384		2,385		2,385
Mortgage-backed securities issued by GSE	38,566		39,111		39,777		40,813		40,381
States and political subdivisions	725		849		1,051		1,215		1,435
Non-agency mortgage-backed	326		340		354		375		391
Other	30		39		42		48		54
Total securities	46,610		46,299		47,145		48,374		48,093
Other earning assets	2,146		2,412		2,197		2,250		3,123
Loans and leases:
Commercial:
Commercial and industrial	60,553		59,900		59,548		58,627		58,478
CRE	21,301		21,496		21,546		21,398		20,998
Lease financing	1,990		1,941		1,862		1,872		1,851
Retail:
Residential mortgage	31,103		30,500		29,272		28,824		28,559
Direct	11,600		11,613		11,680		11,791		11,901
Indirect	17,436		17,282		16,804		16,914		17,426
Revolving credit	3,070		2,947		2,831		2,798		2,759
PCI	486		518		559		631		689
Total loans and leases held for investment	147,539		146,197		144,102		142,855		142,661
Loans held for sale	918		1,292		1,650		1,051		1,428
Total loans and leases	148,457		147,489		145,752		143,906		144,089
Total earning assets	197,213		196,200		195,094		194,530		195,305
Nonearning assets	26,412		26,474		26,250		26,889		27,220
Total assets	$	223,625	$	222,674	$	221,344	$	221,419	$	222,525
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	53,732	$	54,174	$	53,963	$	53,396	$	54,288
Interest checking	26,921		26,655		26,969		27,270		26,746
Money market and savings	62,261		62,957		62,105		61,690		61,693
Time deposits	14,682		13,353		13,966		13,847		13,744
Foreign office deposits - interest-bearing	246		132		673		935		1,488
Total deposits	157,842		157,271		157,676		157,138		157,959
Short-term borrowings	6,979		6,023		5,323		5,477		6,342
Long-term debt	23,488		24,211		23,639		23,677		22,639
Accounts payable and other liabilities	5,351		5,282		5,121		5,599		5,732
Total liabilities	193,660		192,787		191,759		191,891		192,672
Shareholders' equity	29,965		29,887		29,585		29,528		29,853
Total liabilities and shareholders' equity	$	223,625	$	222,674	$	221,344	$	221,419	$	222,525
Average balances exclude basis adjustments for fair value hedges.
(1) Includes AFS and HTM securities.

8 BB&T Corporation

Average Balances and Rates - Quarters
	Quarter Ended
	December 31, 2018						September 30, 2018
	(1)		Interest		(2)		(1)		Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	4,555	$	25	2.11	%	$	3,561	$	15	1.80	%
U.S. government-sponsored entities (GSE)	2,408		14		2.24		2,399		13		2.23
Mortgage-backed securities issued by GSE	38,566		241		2.50		39,111		239		2.45
States and political subdivisions	725		6		3.53		849		10		3.50
Non-agency mortgage-backed	326		10		11.50		340		8		11.32
Other	30		—		4.51		39		1		3.79
Total securities	46,610		296		2.53		46,299		286		2.47
Other earning assets	2,146		14		2.54		2,412		15		2.52
Loans and leases:
Commercial:
Commercial and industrial	60,553		645		4.23		59,900		612		4.04
CRE	21,301		261		4.88		21,496		260		4.80
Lease financing	1,990		18		3.64		1,941		17		3.04
Retail:
Residential mortgage	31,103		319		4.10		30,500		313		4.08
Direct	11,600		164		5.56		11,613		155		5.34
Indirect	17,436		335		7.69		17,282		335		7.56
Revolving credit	3,070		72		9.39		2,947		63		9.47
PCI	486		26		20.49		518		26		20.14
Total loans and leases held for investment	147,539		1,840		4.96		146,197		1,781		4.83
Loans held for sale	918		10		4.66		1,292		14		4.28
Total loans and leases	148,457		1,850		4.96		147,489		1,795		4.83
Total earning assets	197,213		2,160		4.36		196,200		2,096		4.24
Nonearning assets	26,412						26,474
Total assets	$	223,625					$	222,674
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	26,921	34		0.49		$	26,655	28		0.45
Money market and savings	62,261		125		0.80		62,957		109		0.68
Time deposits	14,682		45		1.22		13,353		34		0.98
Foreign office deposits - interest-bearing	246		2		2.22		132		1		1.93
Total interest-bearing deposits	104,110		206		0.78		103,097		172		0.66
Short-term borrowings	6,979		39		2.18		6,023		29		1.94
Long-term debt	23,488		186		3.19		24,211		181		2.99
Total interest-bearing liabilities	134,577		431		1.28		133,331		382		1.14
Noninterest-bearing deposits	53,732						54,174
Accounts payable and other liabilities	5,351						5,282
Shareholders' equity	29,965						29,887
Total liabilities and shareholders' equity	$	223,625					$	222,674
Average interest-rate spread					3.08						3.10
Net interest income/ net interest margin			$	1,729	3.49	%			$	1,714	3.47	%
Taxable-equivalent adjustment			$	24					$	27
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.

BB&T Corporation 9

Average Balances and Rates - Quarters
	Quarter Ended
	June 30, 2018						March 31, 2018						December 31, 2017
	(1)		Interest		(2)		(1)		Interest		(2)		(1)		Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	3,537	$	17	1.80	%	$	3,538	$	15	1.77	%	$	3,447	$	15	1.71	%
U.S. government-sponsored entities (GSE)	2,384		14		2.23		2,385		13		2.23		2,385		13		2.22
Mortgage-backed securities issued by GSE	39,777		241		2.44		40,813		248		2.42		40,381		238		2.36
States and political subdivisions	1,051		8		3.79		1,215		11		3.78		1,435		11		3.23
Non-agency mortgage-backed	354		17		17.35		375		7		7.73		391		13		13.27
Other	42		—		3.26		48		—		2.28		54		—		2.34
Total securities	47,145		297		2.53		48,374		294		2.44		48,093		290		2.42
Other earning assets	2,197		13		2.24		2,250		25		4.54		3,123		15		1.91
Loans and leases:
Commercial:
Commercial and industrial	59,548		580		3.92		58,627		537		3.72		58,478		539		3.65
CRE	21,546		252		4.64		21,398		234		4.47		20,998		229		4.33
Lease financing	1,862		12		3.05		1,872		14		3.00		1,851		13		2.82
Retail:
Residential mortgage	29,272		291		4.01		28,824		289		4.00		28,559		286		4.00
Direct	11,680		150		5.10		11,791		141		4.90		11,901		143		4.78
Indirect	16,804		311		7.46		16,914		304		7.31		17,426		309		7.05
Revolving credit	2,831		67		9.16		2,798		67		8.94		2,759		62		9.01
PCI	559		26		18.92		631		30		19.21		689		36		20.69
Total loans and leases held for investment	144,102		1,689		4.70		142,855		1,616		4.57		142,661		1,617		4.51
Loans held for sale	1,650		17		4.02		1,051		9		3.66		1,428		14		3.67
Total loans and leases	145,752		1,706		4.70		143,906		1,625		4.57		144,089		1,631		4.50
Total earning assets	195,094		2,016		4.14		194,530		1,944		4.04		195,305		1,936		3.95
Nonearning assets	26,250						26,889						27,220
Total assets	$	221,344					$	221,419					$	222,525
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	26,969	29		0.42		$	27,270	25		0.37		$	26,746	22		0.32
Money market and savings	62,105		86		0.56		61,690		67		0.44		61,693		57		0.37
Time deposits	13,966		30		0.86		13,847		23		0.68		13,744		21		0.57
Foreign office deposits - interest-bearing	673		3		1.77		935		3		1.42		1,488		4		1.18
Total interest-bearing deposits	103,713		148		0.57		103,742		118		0.46		103,671		104		0.40
Short-term borrowings	5,323		23		1.77		5,477		20		1.43		6,342		19		1.13
Long-term debt	23,639		166		2.81		23,677		150		2.54		22,639		131		2.36
Total interest-bearing liabilities	132,675		337		1.02		132,896		288		0.87		132,652		254		0.77
Noninterest-bearing deposits	53,963						53,396						54,288
Accounts payable and other liabilities	5,121						5,599						5,732
Shareholders' equity	29,585						29,528						29,853
Total liabilities and shareholders' equity	$	221,344					$	221,419					$	222,525
Average interest-rate spread					3.12						3.17						3.18
Net interest income/ net interest margin			$	1,679	3.45	%			$	1,656	3.44	%			$	1,682	3.43	%
Taxable-equivalent adjustment			$	22					$	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.

10 BB&T Corporation

Average Balances and Rates - Year-To-Date
	Year-to-Date
	December 31, 2018						December 31, 2017
	(1)		Interest		(2)		(1)		Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities at amortized cost (3):
U.S. Treasury	$	3,800	$	72	1.89	%	$	4,179	$	72	1.71	%
U.S. government-sponsored entities (GSE)	2,394		54		2.23		2,385		53		2.22
Mortgage-backed securities issued by GSE	39,559		969		2.45		37,250		841		2.26
States and political subdivisions	958		35		3.68		1,748		83		4.77
Non-agency mortgage-backed	349		42		11.93		411		77		18.80
Other	40		1		3.34		56		1		2.17
Total securities	47,100		1,173		2.49		46,029		1,127		2.45
Other earning assets	2,251		67		2.96		3,484		53		1.53
Loans and leases:
Commercial:
Commercial and industrial	59,663		2,374		3.98		57,994		2,080		3.59
CRE	21,435		1,007		4.70		20,497		837		4.08
Lease financing	1,917		61		3.19		1,726		49		2.82
Retail:
Residential mortgage	29,932		1,212		4.05		29,140		1,170		4.02
Direct	11,670		610		5.22		11,968		550		4.60
Indirect	17,111		1,285		7.51		17,840		1,230		6.89
Revolving credit	2,913		269		9.25		2,662		236		8.88
PCI	548		108		19.64		784		148		18.86
Total loans and leases held for investment	145,189		6,926		4.77		142,611		6,300		4.42
Loans held for sale	1,228		50		4.13		1,464		53		3.62
Total loans and leases	146,417		6,976		4.77		144,075		6,353		4.41
Total earning assets	195,768		8,216		4.20		193,588		7,533		3.89
Nonearning assets	26,505						27,477
Total assets	$	222,273					$	221,065
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	26,951	116		0.43		$	28,033	70		0.25
Money market and savings	62,257		387		0.62		63,061		190		0.30
Time deposits	13,963		132		0.94		14,133		72		0.51
Foreign office deposits - interest-bearing	494		9		1.67		1,142		12		1.05
Total interest-bearing deposits	103,665		644		0.62		106,369		344		0.32
Short-term borrowings	5,955		111		1.86		4,311		41		0.94
Long-term debt	23,755		683		2.88		21,660		454		2.10
Total interest-bearing liabilities	133,375		1,438		1.08		132,340		839		0.63
Noninterest-bearing deposits	53,818						52,872
Accounts payable and other liabilities	5,337						5,852
Shareholders' equity	29,743						30,001
Total liabilities and shareholders' equity	$	222,273					$	221,065
Average interest-rate spread					3.12						3.26
Net interest income/ net interest margin			$	6,778	3.46	%			$	6,694	3.46	%
Taxable-equivalent adjustment			$	96					$	159
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.

BB&T Corporation 11

Credit Quality
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
(Dollars in millions)	2018		2018		2018		2018		2017
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	200	$	238	$	243	$	257	$	259
CRE	65		46		61		67		45
Lease financing	3		6		9		13		1
Retail:
Residential mortgage	119		120		119		127		129
Direct	53		55		58		64		64
Indirect	82		72		68		74		72
Total nonaccrual loans and leases held for investment (1)	522		537		558		602		570
Foreclosed real estate	35		39		43		40		32
Other foreclosed property	28		25		23		27		25
Total nonperforming assets(1)	$	585	$	601	$	624	$	669	$	627
Performing Troubled Debt Restructurings (TDRs) (2)
Commercial:
Commercial and industrial	$	65	$	56	$	44	$	38	$	50
CRE	10		12		11		12		16
Retail:
Residential mortgage	656		643		647		627		605
Direct	55		56		58		59		62
Indirect	305		295		284		277		281
Revolving credit	28		28		29		29		29
Total performing TDRs (2)(3)	$	1,119	$	1,090	$	1,073	$	1,042	$	1,043
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	1
CRE	—		—		—		—		1
Retail:
Residential mortgage	405		367		374		420		465
Direct	7		6		4		6		6
Indirect	6		6		4		5		6
Revolving credit	14		12		10		11		12
PCI	30		40		43		48		57
Total loans 90 days past due and still accruing	$	462	$	431	$	435	$	490	$	548
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	34	$	35	$	26	$	31	$	41
CRE	5		4		4		10		8
Lease financing	1		1		2		1		4
Retail:
Residential mortgage	456		510		441		400		472
Direct	61		59		52		55		65
Indirect	436		418		337		272		412
Revolving credit	28		27		21		21		23
PCI	23		21		22		24		27
Total loans 30-89 days past due	$	1,044	$	1,075	$	905	$	814	$	1,052
Excludes loans held for sale.
(1) Sales of nonperforming loans totaled $30 million, $20 million, $12 million, $33 million and $44 million for the quarter ended December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively.
(2) Excludes TDRs that are nonperforming totaling $176 million, $176 million, $191 million, $196 million and $189 million at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively. These amounts are included in total nonperforming assets.
(3) Sales of performing TDRs, which were primarily residential mortgage loans, totaled $15 million, $34 million, $17 million, $29 million and $44 million for the quarter ended December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively.

12 BB&T Corporation

Credit Quality
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions)	2018			2018			2018			2018			2017
Allowance for Credit Losses
Beginning balance	$	1,648		$	1,640		$	1,614		$	1,609		$	1,601
Provision for credit losses (excluding PCI loans)	147			141			142			153			137
Provision (benefit) for PCI loans	(1		)	(6		)	(7		)	(3		)	1
Charge-offs:
Commercial:
Commercial and industrial	(18		)	(28		)	(23		)	(23		)	(23		)
CRE	(5		)	—			(2		)	(6		)	(2		)
Lease financing	(1		)	(1		)	(1		)	(1		)	(1		)
Retail:
Residential mortgage	(8		)	(4		)	(5		)	(4		)	(8		)
Direct	(18		)	(17		)	(17		)	(19		)	(15		)
Indirect	(108		)	(94		)	(82		)	(107		)	(104		)
Revolving credit	(22		)	(20		)	(21		)	(21		)	(19		)
PCI	—			(2		)	—			—			—
Total charge-offs	(180		)	(166		)	(151		)	(181		)	(172		)
Recoveries:
Commercial:
Commercial and industrial	7			13			11			8			12
CRE	4			1			1			2			4
Lease financing	—			—			1			—			1
Retail:
Residential mortgage	1			—			1			—			1
Direct	5			6			6			6			6
Indirect	15			15			17			15			13
Revolving credit	5			4			5			5			5
Total recoveries	37			39			42			36			42
Net charge-offs	(143		)	(127		)	(109		)	(145		)	(130		)
Ending balance	$	1,651		$	1,648		$	1,640		$	1,614		$	1,609
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCI loans)	$	1,549		$	1,528		$	1,512		$	1,473		$	1,462
Allowance for PCI loans	9			10			18			25			28
Reserve for unfunded lending commitments	93			110			110			116			119
Total	$	1,651		$	1,648		$	1,640		$	1,614		$	1,609
										As of/For the Year-to-Date
										Period Ended Dec. 31
(Dollars in millions)										2018			2017
Allowance for Credit Losses
Beginning balance										$	1,609		$	1,599
Provision for credit losses (excluding PCI loans)										583			562
Provision (benefit) for PCI loans										(17		)	(15		)
Charge-offs:
Commercial:
Commercial and industrial										(92		)	(95		)
CRE										(13		)	(10		)
Lease financing										(4		)	(5		)
Retail:
Residential mortgage										(21		)	(47		)
Direct										(71		)	(61		)
Indirect										(391		)	(402		)
Revolving credit										(84		)	(76		)
PCI										(2		)	(1		)
Total charge-offs										(678		)	(697		)
Recoveries:
Commercial:
Commercial and industrial										39			36
CRE										8			16
Lease financing										1			2
Retail:
Residential mortgage										2			2
Direct										23			25
Indirect										62			60
Revolving credit										19			19
Total recoveries										154			160
Net charge-offs										(524		)	(537		)
Ending balance										$	1,651		$	1,609

BB&T Corporation 13

Credit Quality
	As of/For the Quarter Ended
	Dec. 31		Sept. 30		June 30		March 31		Dec. 31
	2018		2018		2018		2018		2017
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.70	%	0.73	%	0.62	%	0.57	%	0.73	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.31		0.29		0.30		0.34		0.38
Nonperforming loans and leases as a percentage of loans and leases	0.35		0.37		0.38		0.42		0.40
Nonperforming assets as a percentage of:
Total assets	0.26		0.27		0.28		0.30		0.28
Loans and leases plus foreclosed property	0.39		0.41		0.43		0.47		0.44
Net charge-offs as a percentage of average loans and leases	0.38		0.35		0.30		0.41		0.36
Allowance for loan and lease losses as a percentage of loans and leases	1.05		1.05		1.05		1.05		1.04
Ratio of allowance for loan and lease losses to:
Net charge-offs	2.76X		3.05X		3.49X		2.55X		2.89X
Nonperforming loans and leases	2.99X		2.86X		2.74X		2.49X		2.62X
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	%	0.04	%	0.04	%	0.04	%	0.05	%
							As of/For the Year-to-Date
							Period Ended Dec. 31
							2018		2017
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases							0.36	%	0.38	%
Ratio of allowance for loan and lease losses to net charge-offs							2.98X		2.78X
Applicable ratios are annualized. Loans and leases exclude loans held for sale.

	December 31, 2018
					Past Due 30-89					Past Due 90+
(Dollars in millions)	Current Status				Days					Days					Total
Troubled Debt Restructurings
Performing TDRs: (1)
Commercial:
Commercial and industrial	$	64	98.5	%	$	1		1.5	%	$	—		—	%	$	65
CRE	10		100.0		—			—		—			—		10
Retail:
Residential mortgage	379		57.8		116			17.7		161			24.5		656
Direct	53		96.4		2			3.6		—			—		55
Indirect	245		80.3		60			19.7		—			—		305
Revolving credit	24		85.7		3			10.7		1			3.6		28
Total performing TDRs (1)	775		69.2		182			16.3		162			14.5		1,119
Nonperforming TDRs (2)	81		46.1		8			4.5		87			49.4		176
Total TDRs (1)(2)	$	856	66.1	%	$	190		14.7	%	$	249		19.2	%	$	1,295
					Quarter Ended
					Dec. 31			Sept. 30		June 30			March 31		Dec. 31
					2018			2018		2018			2018		2017
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.06		%	0.11	%	0.08		%	0.11	%	0.07		%
CRE					0.02			(0.02	)	0.01			0.08		(0.06		)
Lease financing					0.17			0.16		0.12			0.09		0.14
Retail:
Residential mortgage					0.10			0.05		0.05			0.05		0.10
Direct					0.43			0.38		0.40			0.43		0.30
Indirect					2.14			1.79		1.56			2.21		2.09
Revolving credit					2.25			2.11		2.21			2.37		2.13
PCI					—			1.53		—			—		—
Total loans and leases					0.38			0.35		0.30			0.41		0.36
Applicable ratios are annualized.
(1) Past due performing TDRs are included in past due disclosures.
(2) Nonperforming TDRs are included in nonaccrual loan disclosures.

14 BB&T Corporation

Capital Information - Five Quarter Trend
	As of/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data, shares in thousands)	2018			2018			2018			2018			2017
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	18,404		$	18,325		$	18,364		$	18,104		$	18,051
Tier 1	21,456			21,376			21,415			21,155			21,102
Total	24,964			24,979			25,011			24,719			24,653
Risk-weighted assets	181,166			179,195			179,892			176,818			177,217
Average quarterly tangible assets	215,872			214,498			213,523			213,404			214,163
Risk-based capital ratios:
Common equity tier 1	10.2		%	10.2		%	10.2		%	10.2		%	10.2		%
Tier 1	11.8			11.9			11.9			12.0			11.9
Total	13.8			13.9			13.9			14.0			13.9
Leverage capital ratio	9.9			10.0			10.0			9.9			9.9
Equity as a percentage of total assets	13.4			13.5			13.4			13.4			13.4
Common equity per common share	$	35.46		$	34.90		$	34.51		$	34.06		$	34.01
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	30,178		$	30,007		$	29,832		$	29,662		$	29,695
Less:
Preferred stock	3,053			3,053			3,053			3,053			3,053
Noncontrolling interests	56			59			52			50			47
Intangible assets	10,576			10,621			10,264			10,296			10,329
Tangible common equity	$	16,493		$	16,274		$	16,463		$	16,263		$	16,266
Outstanding shares at end of period (in thousands)	763,326			770,620			774,447			779,752			782,006
Tangible Common Equity Per Common Share	$	21.61		$	21.12		$	21.26		$	20.86		$	20.80

(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.

BB&T Corporation 15

Selected Items, Selected Mortgage Banking Information & Additional Information
										Favorable (Unfavorable)
													After-Tax at
(Dollars in millions)										Pre-Tax			Marginal Rate
Selected Items
Fourth Quarter 2018
None										N/A			N/A
Third Quarter 2018
None										N/A			N/A
Second Quarter 2018
None										N/A			N/A
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/For the Quarter Ended
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31
(Dollars in millions, except per share data)	2018			2018			2018			2018			2017
Mortgage Banking Income
Residential mortgage production revenue	$	22		$	29		$	42		$	44		$	45
Residential mortgage servicing revenue	65			63			63			65			65
Realization of expected residential MSR cash flows	(37		)	(35		)	(38		)	(33		)	(35		)
Commercial mortgage production revenue	28			20			23			22			27
Commercial mortgage servicing revenue	9			10			10			9			9
Realization of expected commercial MSR cash flows	(7		)	(7		)	(8		)	(9		)	(9		)
Mortgage banking income before MSR valuation	80			80			92			98			102
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(55		)	35			25			68			15
MSRs hedge gains (losses)	61			(36		)	(23		)	(67		)	(13		)
Net MSRs valuation	6			(1		)	2			1			2
Total mortgage banking income	$	86		$	79		$	94		$	99		$	104
Other Mortgage Banking Information
Residential mortgage loan originations	$	2,735		$	4,265		$	4,411		$	3,328		$	3,970
Residential mortgage servicing portfolio (1):
Loans serviced for others	87,270			88,323			88,492			88,746			89,124
Bank-owned loans serviced	31,335			31,137			30,261			29,081			29,300
Total servicing portfolio	118,605			119,460			118,753			117,827			118,424
Weighted-average coupon rate on mortgage loans serviced for others	4.04		%	4.03		%	4.01		%	4.00		%	4.00		%
Weighted-average servicing fee on mortgage loans serviced for others	0.277			0.277			0.277			0.277			0.278
Additional Information
Derivatives notional amount	$	67,738		$	68,400		$	71,427		$	78,649		$	75,172
Fair value of derivatives, net	(1		)	(253		)	(203		)	(213		)	(271		)
Common stock prices:
High	52.11			53.08			56.03			56.31			51.11
Low	40.68			48.41			50.13			49.65			44.62
End of period	43.32			48.54			50.44			52.04			49.72
Banking offices	1,879			1,958			1,967			2,047			2,049
ATMs	2,573			2,764			2,768			2,836			2,824
FTEs	35,852			36,233			35,782			35,908			36,484
(1) Amounts reported are unpaid principal balance.

16 BB&T Corporation

Non-GAAP Reconciliations
	Quarter Ended															Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2018			2018			2018			2018			2017			2018			2017
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	1,784		$	1,742		$	1,720		$	1,686		$	1,855		$	6,932		$	7,444
Amortization of intangibles	(34		)	(33		)	(31		)	(33		)	(34		)	(131		)	(142		)
Merger-related and restructuring charges, net	(76		)	(18		)	(24		)	(28		)	(22		)	(146		)	(115		)
Gain (loss) on early extinguishment of debt	—			—			—			—			—			—			(392		)
Charitable contribution	—			—			—			—			(100		)	—			(100		)
One-time bonus	—			—			—			—			(36		)	—			(36		)
Efficiency Ratio Numerator - Adjusted	$	1,674		$	1,691		$	1,665		$	1,625		$	1,663		$	6,655		$	6,659
Efficiency Ratio Denominator - Revenue (2) - GAAP	$	2,940		$	2,926		$	2,879		$	2,813		$	2,869		$	11,558		$	11,317
Taxable equivalent adjustment	24			27			22			23			38			96			159
Securities (gains) losses, net	(2		)	—			(1		)	—			1			(3		)	1
Efficiency Ratio Denominator - Adjusted	$	2,962		$	2,953		$	2,900		$	2,836		$	2,908		$	11,651		$	11,477
Efficiency Ratio - GAAP	60.7		%	59.5		%	59.7		%	60.0		%	64.7		%	60.0		%	65.8		%
Efficiency Ratio - Adjusted	56.5			57.3			57.4			57.3			57.2			57.1			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															Year-to-Date
	Dec. 31			Sept. 30			June 30			March 31			Dec. 31			Dec. 31			Dec. 31
(Dollars in millions)	2018			2018			2018			2018			2017			2018			2017
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	754		$	789		$	775		$	745		$	614		$	3,063		$	2,220
Plus: Amortization of intangibles, net of tax	25			26			24			24			21			99			89
Tangible net income available to common shareholders	$	779		$	815		$	799		$	769		$	635		$	3,162		$	2,309
Average common shareholders' equity	$	26,860		$	26,782		$	26,483		$	26,428		$	26,759		$	26,640		$	26,907
Less: Average intangible assets	10,607			10,622			10,281			10,312			10,346			10,456			10,402
Average tangible common shareholders' equity	$	16,253		$	16,160		$	16,202		$	16,116		$	16,413		$	16,184		$	16,505
Return on average common shareholders' equity	11.14		%	11.69		%	11.74		%	11.43		%	9.10		%	11.50		%	8.25		%
Return on average tangible common shareholders' equity	19.02			20.00			19.78			19.36			15.35			19.54			13.99

(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.

	Quarter Ended													Year-to-Date
	Dec. 31			Sept. 30		June 30			March 31		Dec. 31			Dec. 31			Dec. 31
(Dollars in millions, except per share data)	2018			2018		2018			2018		2017			2018			2017
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	754		$	789	$	775		$	745	$	614		$	3,063		$	2,220
Merger-related and restructuring charges	59			13		17			22		14			111			71
Loss on early extinguishment of debt	—			—		—			—		—			—			246
Securities gains (losses), net	(1		)	—		(1		)	—		—			(2		)	—
Charitable contribution	—			—		—			—		63			—			63
One time bonus	—			—		—			—		23			—			23
Excess tax benefit on equity-based awards	—			—		—			—		—			—			(35		)
Impact of tax reform	—			—		—			—		(43		)	—			(43		)
Net income available to common shareholders - adjusted	$	812		$	802	$	791		$	767	$	671		$	3,172		$	2,545
Weighted average shares outstanding - diluted	775,402			781,867		785,750			791,005		795,867			783,484			810,977
Diluted EPS - GAAP	$	0.97		$	1.01	$	0.99		$	0.94	$	0.77		$	3.91		$	2.74
Diluted EPS - adjusted	1.05			1.03		1.01			0.97		0.84			4.05			3.14

(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.

BB&T Corporation 17