Truist Financial 8K Results of Operations and Financial Condition | TFC 17 Oct 19

Quarterly Performance Summary

BB&T Corporation

Third Quarter 2019



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
	September 30						%		September 30						%
(Dollars in millions, except per share data, shares in thousands)	2019			2018			Change		2019			2018			Change
Summary Income Statement
Interest income	$	2,241		$	2,096		6.9	%	$	6,668		$	6,056		10.1	%
Interest expense	518			382			35.6		1,511			1,007			50.0
Net interest income - taxable equivalent	1,723			1,714			0.5		5,157			5,049			2.1
Less: Taxable-equivalent adjustment	23			27			(14.8	)	71			72			(1.4	)
Net interest income	1,700			1,687			0.8		5,086			4,977			2.2
Provision for credit losses	117			135			(13.3	)	444			420			5.7
Net interest income after provision for credit losses	1,583			1,552			2.0		4,642			4,557			1.9
Noninterest income	1,303			1,239			5.2		3,857			3,641			5.9
Noninterest expense	1,840			1,742			5.6		5,359			5,148			4.1
Income before income taxes	1,046			1,049			(0.3	)	3,140			3,050			3.0
Provision for income taxes	218			210			3.8		629			598			5.2
Net income	828			839			(1.3	)	2,511			2,452			2.4
Noncontrolling interests	3			7			(57.1	)	8			13			(38.5	)
Preferred stock dividends	90			43			109.3		177			130			36.2
Net income available to common shareholders	735			789			(6.8	)	2,326			2,309			0.7
Per Common Share Data
Earnings per share-basic	$	0.96		$	1.02		(5.9	)%	$	3.04		$	2.98		2.0	%
Earnings per share-diluted	0.95			1.01			(5.9	)	3.00			2.94			2.0
Cash dividends declared	0.450			0.405			11.1		1.260			1.155			9.1
Common equity	38.07			34.90			9.1		38.07			34.90			9.1
Tangible common equity (1)	24.66			21.40			15.2		24.66			21.40			15.2
End of period shares outstanding	766,303			770,620			(0.6	)	766,303			770,620			(0.6	)
Weighted average shares outstanding-basic	766,167			771,562			(0.7	)	765,428			775,642			(1.3	)
Weighted average shares outstanding-diluted	775,791			781,867			(0.8	)	774,907			786,140			(1.4	)
Performance Ratios
Return on average assets	1.41		%	1.49		%			1.47		%	1.48		%
Return on average risk-weighted assets (current period is preliminary)	1.75			1.85					1.81			1.84
Return on average common shareholders' equity	10.04			11.69					11.02			11.62
Return on average tangible common shareholders' equity (2)	16.03			19.74					17.90			19.46
Net interest margin - taxable equivalent	3.37			3.47					3.43			3.45
Fee income ratio	43.4			42.3					43.1			42.2
Efficiency ratio-GAAP	61.3			59.5					59.9			59.7
Efficiency ratio-adjusted (2)	57.1			57.3					56.2			57.3
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.22		%	0.27		%			0.22		%	0.27		%
Loans and leases plus foreclosed property	0.34			0.41					0.34			0.41
Net charge-offs as a percentage of average loans and leases	0.41			0.35					0.40			0.35
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.05					1.05			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	3.52x			2.86x					3.52x			2.86x
Average Balances
Assets	$	232,420		$	222,674		4.4	%	$	229,106		$	221,817		3.3	%
Securities (3)	48,900			46,299			5.6		47,257			47,265			—
Loans and leases	152,042			147,489			3.1		150,808			145,729			3.5
Deposits	161,992			157,271			3.0		160,650			157,362			2.1
Common shareholders' equity	29,040			26,782			8.4		28,226			26,565			6.3
Shareholders' equity	32,744			29,887			9.6		31,537			29,668			6.3
Period-End Balances
Assets	$	236,750		$	222,885		6.2	%	$	236,750		$	222,885		6.2	%
Securities (3)	54,765			45,368			20.7		54,765			45,368			20.7
Loans and leases	150,855			147,712			2.1		150,855			147,712			2.1
Deposits	162,280			154,556			5.0		162,280			154,556			5.0
Common shareholders' equity	29,177			26,895			8.5		29,177			26,895			8.5
Shareholders' equity	32,303			30,007			7.7		32,303			30,007			7.7
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	10.6		%	10.2		%			10.6		%	10.2		%
Tier 1	12.2			11.9					12.2			11.9
Total	14.7			13.9					14.7			13.9
Leverage	10.3			10.0					10.3			10.0
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
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
(Dollars in millions, except per share data, shares in thousands)	2019			2019			2019			2018			2018
Summary Income Statement
Interest income	$	2,241		$	2,230		$	2,197		$	2,160		$	2,096
Interest expense	518			516			477			431			382
Net interest income - taxable equivalent	1,723			1,714			1,720			1,729			1,714
Less: Taxable-equivalent adjustment	23			24			24			24			27
Net interest income	1,700			1,690			1,696			1,705			1,687
Provision for credit losses	117			172			155			146			135
Net interest income after provision for credit losses	1,583			1,518			1,541			1,559			1,552
Noninterest income	1,303			1,352			1,202			1,235			1,239
Noninterest expense	1,840			1,751			1,768			1,784			1,742
Income before income taxes	1,046			1,119			975			1,010			1,049
Provision for income taxes	218			234			177			205			210
Net income	828			885			798			805			839
Noncontrolling interests	3			(1		)	6			7			7
Preferred stock dividends	90			44			43			44			43
Net income available to common shareholders	735			842			749			754			789
Per Common Share Data
Earnings per share-basic	$	0.96		$	1.10		$	0.98		$	0.99		$	1.02
Earnings per share-diluted	0.95			1.09			0.97			0.97			1.01
Cash dividends declared	0.450			0.405			0.405			0.405			0.405
Common equity	38.07			37.40			36.26			35.46			34.90
Tangible common equity (1)	24.66			23.93			22.78			21.89			21.40
End of period shares outstanding	766,303			766,010			765,920			763,326			770,620
Weighted average shares outstanding-basic	766,167			765,958			764,135			765,013			771,562
Weighted average shares outstanding-diluted	775,791			774,603			774,071			775,402			781,867
Performance Ratios
Return on average assets	1.41		%	1.55		%	1.43		%	1.43		%	1.49		%
Return on average risk-weighted assets (current quarter is preliminary)	1.75			1.92			1.78			1.77			1.85
Return on average common shareholders' equity	10.04			11.98			11.08			11.14			11.69
Return on average tangible common shareholders' equity (2)	16.03			19.45			18.36			18.77			19.74
Net interest margin - taxable equivalent	3.37			3.42			3.51			3.49			3.47
Fee income ratio	43.4			44.4			41.5			42.0			42.3
Efficiency ratio-GAAP	61.3			57.6			61.0			60.7			59.5
Efficiency ratio-adjusted (2)	57.1			55.1			56.6			56.5			57.3
Credit Quality
Nonperforming assets as a percentage of:
Assets	0.22		%	0.23		%	0.26		%	0.26		%	0.27		%
Loans and leases plus foreclosed property	0.34			0.34			0.39			0.39			0.41
Net charge-offs as a percentage of average loans and leases	0.41			0.38			0.40			0.38			0.35
Allowance for loan and lease losses as a percentage of loans and leases held for investment	1.05			1.05			1.05			1.05			1.05
Ratio of allowance for loan and lease losses to nonperforming loans and leases held for investment	3.52x			3.46x			2.97x			2.99x			2.86x
Average Balances
Assets	$	232,420		$	229,249		$	225,573		$	223,625		$	222,674
Securities (3)	48,900			46,115			46,734			46,610			46,299
Loans and leases	152,042			151,557			148,790			148,457			147,489
Deposits	161,992			159,891			160,045			157,842			157,271
Common shareholders' equity	29,040			28,188			27,432			26,860			26,782
Shareholders' equity	32,744			31,301			30,541			29,965			29,887
Period-End Balances
Assets	$	236,750		$	230,872		$	227,683		$	225,697		$	222,885
Securities (3)	54,765			45,289			46,410			45,590			45,368
Loans and leases	150,855			153,823			149,891			150,001			147,712
Deposits	162,280			159,521			159,766			161,199			154,556
Common shareholders' equity	29,177			28,650			27,770			27,069			26,895
Shareholders' equity	32,303			31,764			30,883			30,178			30,007
Capital Ratios (current quarter is preliminary)
Risk-based:
Common equity Tier 1	10.6		%	10.4		%	10.3		%	10.2		%	10.2		%
Tier 1	12.2			12.0			12.0			11.8			11.9
Total	14.7			14.2			14.2			13.8			13.9
Leverage	10.3			10.2			10.1			9.9			10.0
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
	Sept. 30				Change					Sept. 30				Change
(Dollars in millions, except per share data, shares in thousands)	2019		2018		$			%		2019		2018		$			%
Interest Income
Interest and fees on loans and leases	$	1,886	$	1,772	$	114		6.4	%	$	5,611	$	5,064	$	547		10.8	%
Interest and dividends on securities	315		283		32			11.3		917		868		49			5.6
Interest on other earning assets	17		14		3			21.4		69		52		17			32.7
Total interest income	2,218		2,069		149			7.2		6,597		5,984		613			10.2
Interest Expense
Interest on deposits	271		172		99			57.6		797		438		359			82.0
Interest on short-term borrowings	54		29		25			86.2		136		72		64			88.9
Interest on long-term debt	193		181		12			6.6		578		497		81			16.3
Total interest expense	518		382		136			35.6		1,511		1,007		504			50.0
Net Interest Income	1,700		1,687		13			0.8		5,086		4,977		109			2.2
Provision for credit losses	117		135		(18		)	(13.3	)	444		420		24			5.7
Net Interest Income After Provision for Credit Losses	1,583		1,552		31			2.0		4,642		4,557		85			1.9
Noninterest Income
Insurance income	487		448		39			8.7		1,563		1,365		198			14.5
Service charges on deposits	188		183		5			2.7		540		527		13			2.5
Investment banking and brokerage fees and commissions	130		116		14			12.1		372		338		34			10.1
Mortgage banking income	112		79		33			41.8		288		272		16			5.9
Trust and investment advisory revenues	71		71		—			—		209		215		(6		)	(2.8	)
Bankcard fees and merchant discounts	72		72		—			—		219		213		6			2.8
Checkcard fees	57		56		1			1.8		171		165		6			3.6
Operating lease income	36		37		(1		)	(2.7	)	106		110		(4		)	(3.6	)
Income from bank-owned life insurance	29		27		2			7.4		91		88		3			3.4
Securities gains (losses), net	—		—		—			—		—		1		(1		)	NM
Other income	121		150		(29		)	(19.3	)	298		347		(49		)	(14.1	)
Total noninterest income	1,303		1,239		64			5.2		3,857		3,641		216			5.9
Noninterest Expense
Personnel expense	1,161		1,104		57			5.2		3,368		3,217		151			4.7
Occupancy and equipment expense	186		189		(3		)	(1.6	)	557		570		(13		)	(2.3	)
Software expense	77		70		7			10.0		220		202		18			8.9
Outside IT services	28		33		(5		)	(15.2	)	87		97		(10		)	(10.3	)
Regulatory charges	20		37		(17		)	(45.9	)	57		116		(59		)	(50.9	)
Amortization of intangibles	29		33		(4		)	(12.1	)	93		97		(4		)	(4.1	)
Loan-related expense	26		28		(2		)	(7.1	)	81		83		(2		)	(2.4	)
Professional services	47		33		14			42.4		109		95		14			14.7
Merger-related and restructuring charges, net	34		18		16			88.9		137		70		67			95.7
Other expense	232		197		35			17.8		650		601		49			8.2
Total noninterest expense	1,840		1,742		98			5.6		5,359		5,148		211			4.1
Earnings
Income before income taxes	1,046		1,049		(3		)	(0.3	)	3,140		3,050		90			3.0
Provision for income taxes	218		210		8			3.8		629		598		31			5.2
Net income	828		839		(11		)	(1.3	)	2,511		2,452		59			2.4
Noncontrolling interests	3		7		(4		)	(57.1	)	8		13		(5		)	(38.5	)
Preferred stock dividends	90		43		47			109.3		177		130		47			36.2
Net income available to common shareholders	$	735	$	789	$	(54	)	(6.8	)%	$	2,326	$	2,309	$	17		0.7	%
Earnings Per Common Share
Basic	$	0.96	$	1.02	$	(0.06	)	(5.9	)%	$	3.04	$	2.98	$	0.06		2.0	%
Diluted	0.95		1.01		(0.06		)	(5.9	)	3.00		2.94		0.06			2.0
Weighted Average Shares Outstanding
Basic	766,167		771,562		(5,395		)	(0.7	)	765,428		775,642		(10,214)			(1.3	)
Diluted	775,791		781,867		(6,076		)	(0.8	)	774,907		786,140		(11,233)			(1.4	)
NM - not meaningful

BB&T Corporation 3



Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	Sept. 30		June 30			March 31		Dec. 31		Sept. 30
(Dollars in millions, except per share data, shares in thousands)	2019		2019			2019		2018		2018
Interest Income
Interest and fees on loans and leases	$	1,886	$	1,886		$	1,839	$	1,830	$	1,772
Interest and dividends on securities	315		300			302		292		283
Interest on other earning assets	17		20			32		14		14
Total interest income	2,218		2,206			2,173		2,136		2,069
Interest Expense
Interest on deposits	271		273			253		206		172
Interest on short-term borrowings	54		50			32		39		29
Interest on long-term debt	193		193			192		186		181
Total interest expense	518		516			477		431		382
Net Interest Income	1,700		1,690			1,696		1,705		1,687
Provision for credit losses	117		172			155		146		135
Net Interest Income After Provision for Credit Losses	1,583		1,518			1,541		1,559		1,552
Noninterest Income
Insurance income	487		566			510		487		448
Service charges on deposits	188		181			171		185		183
Investment banking and brokerage fees and commissions	130		131			111		139		116
Mortgage banking income	112		113			63		86		79
Trust and investment advisory revenues	71		70			68		70		71
Bankcard fees and merchant discounts	72		77			70		74		72
Checkcard fees	57		59			55		56		56
Operating lease income	36		35			35		35		37
Income from bank-owned life insurance	29		34			28		28		27
Securities gains (losses), net	—		—			—		2		—
Other income	121		86			91		73		150
Total noninterest income	1,303		1,352			1,202		1,235		1,239
Noninterest Expense
Personnel expense	1,161		1,120			1,087		1,096		1,104
Occupancy and equipment expense	186		184			187		188		189
Software expense	77		71			72		70		70
Outside IT services	28		29			30		35		33
Regulatory charges	20		19			18		18		37
Amortization of intangibles	29		32			32		34		33
Loan-related expense	26		30			25		25		28
Professional services	47		31			31		43		33
Merger-related and restructuring charges, net	34		23			80		76		18
Other expense	232		212			206		199		197
Total noninterest expense	1,840		1,751			1,768		1,784		1,742
Earnings
Income before income taxes	1,046		1,119			975		1,010		1,049
Provision for income taxes	218		234			177		205		210
Net income	828		885			798		805		839
Noncontrolling interests	3		(1		)	6		7		7
Preferred stock dividends	90		44			43		44		43
Net income available to common shareholders	$	735	$	842		$	749	$	754	$	789
Earnings Per Common Share
Basic	$	0.96	$	1.10		$	0.98	$	0.99	$	1.02
Diluted	0.95		1.09			0.97		0.97		1.01
Weighted Average Shares Outstanding
Basic	766,167		765,958			764,135		765,013		771,562
Diluted	775,791		774,603			774,071		775,402		781,867

4 BB&T Corporation



Segment Financial Performance - Preliminary
	Quarter Ended
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
(Dollars in millions)	2019			2019			2019			2018			2018
Community Banking Retail and Consumer Finance
Net interest income (expense)	$	871		$	850		$	843		$	881		$	880
Net intersegment interest income (expense)	141			126			109			87			76
Segment net interest income	1,012			976			952			968			956
Allocated provision for credit losses	115			123			130			151			121
Noninterest income	372			387			322			352			347
Noninterest expense	681			654			646			658			657
Income (loss) before income taxes	588			586			498			511			525
Provision (benefit) for income taxes	142			141			120			124			129
Segment net income (loss)	$	446		$	445		$	378		$	387		$	396

Community Banking Commercial
Net interest income (expense)	$	519		$	541		$	536		$	532		$	513
Net intersegment interest income (expense)	69			47			44			59			58
Segment net interest income	588			588			580			591			571
Allocated provision for credit losses	12			39			19			14			18
Noninterest income	116			114			109			112			110
Noninterest expense	259			255			251			267			262
Income (loss) before income taxes	433			408			419			422			401
Provision (benefit) for income taxes	95			89			91			93			90
Segment net income (loss)	$	338		$	319		$	328		$	329		$	311

Financial Services and Commercial Finance
Net interest income (expense)	$	196		$	197		$	189		$	190		$	171
Net intersegment interest income (expense)	18			13			21			21			26
Segment net interest income	214			210			210			211			197
Allocated provision for credit losses	3			14			1			5			5
Noninterest income	351			329			284			323			308
Noninterest expense	327			311			297			334			312
Income (loss) before income taxes	235			214			196			195			188
Provision (benefit) for income taxes	50			45			40			40			39
Segment net income (loss)	$	185		$	169		$	156		$	155		$	149

Insurance Holdings
Net interest income (expense)	$	39		$	35		$	34		$	32		$	32
Net intersegment interest income (expense)	(11		)	(10		)	(11		)	(10		)	(9		)
Segment net interest income	28			25			23			22			23
Allocated provision for credit losses	2			2			3			—			1
Noninterest income	491			570			515			496			452
Noninterest expense	435			444			417			415			416
Income (loss) before income taxes	82			149			118			103			58
Provision (benefit) for income taxes	21			38			30			26			15
Segment net income (loss)	$	61		$	111		$	88		$	77		$	43

Other, Treasury & Corporate (1)
Net interest income (expense)	$	75		$	67		$	94		$	70		$	91
Net intersegment interest income (expense)	(217		)	(176		)	(163		)	(157		)	(151		)
Segment net interest income	(142		)	(109		)	(69		)	(87		)	(60		)
Allocated provision for credit losses	(15		)	(6		)	2			(24		)	(10		)
Noninterest income	(27		)	(48		)	(28		)	(48		)	22
Noninterest expense	138			87			157			110			95
Income (loss) before income taxes	(292		)	(238		)	(256		)	(221		)	(123		)
Provision (benefit) for income taxes	(90		)	(79		)	(104		)	(78		)	(63		)
Segment net income (loss)	$	(202	)	$	(159	)	$	(152	)	$	(143	)	$	(60	)

Total BB&T Corporation
Net interest income (expense)	$	1,700		$	1,690		$	1,696		$	1,705		$	1,687
Net intersegment interest income (expense)	—			—			—			—			—
Segment net interest income	1,700			1,690			1,696			1,705			1,687
Allocated provision for credit losses	117			172			155			146			135
Noninterest income	1,303			1,352			1,202			1,235			1,239
Noninterest expense	1,840			1,751			1,768			1,784			1,742
Income (loss) before income taxes	1,046			1,119			975			1,010			1,049
Provision (benefit) for income taxes	218			234			177			205			210
Net income	$	828		$	885		$	798		$	805		$	839
(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
	Sept. 30			June 30			March 31				Dec. 31			Sept. 30
(Dollars in millions)	2019			2019			2019				2018			2018
Assets
Cash and due from banks	$	2,027		$	1,831		$	1,873			$	2,753		$	2,123
Interest-bearing deposits with banks	866			707			751				984			748
Cash equivalents	114			148			252				143			135
Restricted cash	11			15			96				107			147
Securities available for sale at fair value	35,997			25,802			26,315				25,038			24,286
Securities held to maturity at amortized cost	18,768			19,487			20,095				20,552			21,082
Loans and leases:
Commercial:										��
Commercial and industrial	64,324			63,693			61,978				61,935			59,722
CRE	20,884			20,722			20,829				21,060			21,466
Lease financing	2,356			2,203			2,098				2,018			2,028
Retail:
Residential mortgage	28,297			32,607			31,572				31,393			30,821
Direct	11,463			11,492			11,464				11,584			11,618
Indirect	18,461			18,209			17,523				17,425			17,468
Revolving credit	3,241			3,239			3,152				3,132			3,070
PCI	387			421			441				466			497
Total loans and leases held for investment	149,413			152,586			149,057				149,013			146,690
Loans held for sale	1,442			1,237			834				988			1,022
Total loans and leases	150,855			153,823			149,891				150,001			147,712
Allowance for loan and lease losses	(1,573		)	(1,595		)	(1,561		)		(1,558		)	(1,538		)
Premises and equipment	2,022			2,029			2,078				2,118			2,154
Goodwill	9,832			9,830			9,818				9,818			9,832
Core deposit and other intangible assets	678			712			726				758			789
Mortgage servicing rights at fair value	919			970			1,036				1,108			1,179
Other assets	16,234			17,113			16,313				13,875			14,236
Total assets	$	236,750		$	230,872		$	227,683			$	225,697		$	222,885
Liabilities
Deposits:
Noninterest-bearing deposits	$	52,667		$	52,458		$	53,021			$	53,025		$	53,646
Interest checking	27,723			28,021			28,028				28,130			26,590
Money market and savings	64,454			63,972			63,739				63,467			61,597
Time deposits	16,526			15,070			14,978				16,577			12,723
Foreign office deposits - interest-bearing	910			—			—				—			—
Total deposits	162,280			159,521			159,766				161,199			154,556
Short-term borrowings	10,405			10,344			6,305				5,178			9,652
Long-term debt	25,520			22,640			24,729				23,709			23,236
Accounts payable and other liabilities	6,242			6,603			6,000				5,433			5,434
Total liabilities	204,447			199,108			196,800				195,519			192,878
Shareholders' Equity:
Preferred stock	3,057			3,053			3,053				3,053			3,053
Common stock	3,832			3,830			3,830				3,817			3,853
Additional paid-in capital	6,931			6,889			6,843				6,849			7,221
Retained earnings	19,440			19,050			18,518				18,118			17,673
Accumulated other comprehensive loss	(1,026		)	(1,119		)	(1,421		)		(1,715		)	(1,852		)
Noncontrolling interests	69			61			60				56			59
Total shareholders' equity	32,303			31,764			30,883				30,178			30,007
Total liabilities and shareholders' equity	$	236,750		$	230,872		$	227,683			$	225,697		$	222,885
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.

6 BB&T Corporation



Average Balance Sheets
	Quarter Ended									Year-to-Date
	September 30				Change					September 30				Change
(Dollars in millions)	2019		2018		$			%		2019		2018		$			%
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,240	$	3,561	$	(1,321	)	(37.1	)%	$	2,731	$	3,546	$	(815	)	(23.0	)%
U.S. government-sponsored entities (GSE)	2,449		2,399		50			2.1		2,436		2,390		46			1.9
Mortgage-backed securities issued by GSE	43,415		39,111		4,304			11.0		41,202		39,894		1,308			3.3
States and political subdivisions	566		849		(283		)	(33.3	)	583		1,036		(453		)	(43.7	)
Non-agency mortgage-backed	198		340		(142		)	(41.8	)	271		356		(85		)	(23.9	)
Other	32		39		(7		)	(17.9	)	34		43		(9		)	(20.9	)
Total securities	48,900		46,299		2,601			5.6		47,257		47,265		(8		)	—
Other earning assets	2,466		2,412		54			2.2		2,612		2,287		325			14.2
Loans and leases:
Commercial:
Commercial and industrial	63,768		59,900		3,868			6.5		62,576		59,363		3,213			5.4
CRE	20,767		21,496		(729		)	(3.4	)	20,806		21,480		(674		)	(3.1	)
Lease financing	2,260		1,941		319			16.4		2,135		1,892		243			12.8
Retail:
Residential mortgage	28,410		30,500		(2,090		)	(6.9	)	30,604		29,538		1,066			3.6
Direct	11,468		11,613		(145		)	(1.2	)	11,489		11,694		(205		)	(1.8	)
Indirect	18,362		17,282		1,080			6.2		17,863		17,002		861			5.1
Revolving credit	3,218		2,947		271			9.2		3,160		2,859		301			10.5
PCI	411		518		(107		)	(20.7	)	433		569		(136		)	(23.9	)
Total loans and leases held for investment	148,664		146,197		2,467			1.7		149,066		144,397		4,669			3.2
Loans held for sale	3,378		1,292		2,086			161.5		1,742		1,332		410			30.8
Total loans and leases	152,042		147,489		4,553			3.1		150,808		145,729		5,079			3.5
Total earning assets	203,408		196,200		7,208			3.7		200,677		195,281		5,396			2.8
Nonearning assets	29,012		26,474		2,538			9.6		28,429		26,536		1,893			7.1
Total assets	$	232,420	$	222,674	$	9,746		4.4	%	$	229,106	$	221,817	$	7,289		3.3	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	52,500	$	54,174	$	(1,674	)	(3.1	)%	$	52,489	$	53,847	$	(1,358	)	(2.5	)%
Interest checking	27,664		26,655		1,009			3.8		27,665		26,962		703			2.6
Money market and savings	64,920		62,957		1,963			3.1		63,885		62,256		1,629			2.6
Time deposits	16,643		13,353		3,290			24.6		16,256		13,720		2,536			18.5
Foreign office deposits - interest-bearing	265		132		133			100.8		355		577		(222		)	(38.5	)
Total deposits	161,992		157,271		4,721			3.0		160,650		157,362		3,288			2.1
Short-term borrowings	8,307		6,023		2,284			37.9		7,443		5,609		1,834			32.7
Long-term debt	22,608		24,211		(1,603		)	(6.6	)	23,027		23,845		(818		)	(3.4	)
Accounts payable and other liabilities	6,769		5,282		1,487			28.2		6,449		5,333		1,116			20.9
Total liabilities	199,676		192,787		6,889			3.6		197,569		192,149		5,420			2.8
Shareholders' equity	32,744		29,887		2,857			9.6		31,537		29,668		1,869			6.3
Total liabilities and shareholders' equity	$	232,420	$	222,674	$	9,746		4.4	%	$	229,106	$	221,817	$	7,289		3.3	%
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.
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
	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
(Dollars in millions)	2019		2019		2019		2018		2018
Assets
Securities at amortized cost (1):
U.S. Treasury	$	2,240	$	2,662	$	3,302	$	4,555	$	3,561
U.S. government-sponsored entities (GSE)	2,449		2,440		2,418		2,408		2,399
Mortgage-backed securities issued by GSE	43,415		40,112		40,044		38,566		39,111
States and political subdivisions	566		566		620		725		849
Non-agency mortgage-backed	198		302		315		326		340
Other	32		33		35		30		39
Total securities	48,900		46,115		46,734		46,610		46,299
Other earning assets	2,466		3,167		2,197		2,146		2,412
Loans and leases:
Commercial:
Commercial and industrial	63,768		62,563		61,370		60,553		59,900
CRE	20,767		20,748		20,905		21,301		21,496
Lease financing	2,260		2,122		2,021		1,990		1,941
Retail:
Residential mortgage	28,410		32,066		31,370		31,103		30,500
Direct	11,468		11,506		11,493		11,600		11,613
Indirect	18,362		17,879		17,337		17,436		17,282
Revolving credit	3,218		3,151		3,110		3,070		2,947
PCI	411		432		455		486		518
Total loans and leases held for investment	148,664		150,467		148,061		147,539		146,197
Loans held for sale	3,378		1,090		729		918		1,292
Total loans and leases	152,042		151,557		148,790		148,457		147,489
Total earning assets	203,408		200,839		197,721		197,213		196,200
Nonearning assets	29,012		28,410		27,852		26,412		26,474
Total assets	$	232,420	$	229,249	$	225,573	$	223,625	$	222,674
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	52,500	$	52,680	$	52,283	$	53,732	$	54,174
Interest checking	27,664		27,708		27,622		26,921		26,655
Money market and savings	64,920		63,394		63,325		62,261		62,957
Time deposits	16,643		15,730		16,393		14,682		13,353
Foreign office deposits - interest-bearing	265		379		422		246		132
Total deposits	161,992		159,891		160,045		157,842		157,271
Short-term borrowings	8,307		8,367		5,624		6,979		6,023
Long-term debt	22,608		23,233		23,247		23,488		24,211
Accounts payable and other liabilities	6,769		6,457		6,116		5,351		5,282
Total liabilities	199,676		197,948		195,032		193,660		192,787
Shareholders' equity	32,744		31,301		30,541		29,965		29,887
Total liabilities and shareholders' equity	$	232,420	$	229,249	$	225,573	$	223,625	$	222,674
New lease accounting guidance was adopted prospectively in 1Q19 that requires lessees to recognize assets and liabilities related to certain operating leases on the balance sheet.
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
	September 30, 2019						June 30, 2019
	(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	$	2,240	$	11	2.04	%	$	2,662	$	14	2.04	%
U.S. government-sponsored entities (GSE)	2,449		14		2.25		2,440		13		2.25
Mortgage-backed securities issued by GSE	43,415		279		2.57		40,112		258		2.57
States and political subdivisions	566		5		3.44		566		6		4.37
Non-agency mortgage-backed	198		9		18.77		302		10		13.28
Other	32		—		3.67		33		1		3.85
Total securities	48,900		318		2.60		46,115		302		2.62
Other earning assets	2,466		17		2.67		3,167		20		2.59
Loans and leases:
Commercial:
Commercial and industrial	63,768		671		4.18		62,563		679		4.35
CRE	20,767		256		4.88		20,748		260		5.03
Lease financing	2,260		18		3.17		2,122		17		3.29
Retail:
Residential mortgage	28,410		285		4.02		32,066		321		4.00
Direct	11,468		166		5.75		11,506		166		5.80
Indirect	18,362		372		8.04		17,879		356		7.99
Revolving credit	3,218		78		9.61		3,151		74		9.39
PCI	411		25		24.23		432		24		21.63
Total loans and leases held for investment	148,664		1,871		5.00		150,467		1,897		5.05
Loans held for sale	3,378		35		4.16		1,090		11		4.17
Total loans and leases	152,042		1,906		4.98		151,557		1,908		5.05
Total earning assets	203,408		2,241		4.38		200,839		2,230		4.45
Nonearning assets	29,012						28,410
Total assets	$	232,420					$	229,249
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,664	47		0.67		$	27,708	45		0.65
Money market and savings	64,920		156		0.95		63,394		163		1.03
Time deposits	16,643		67		1.62		15,730		63		1.58
Foreign office deposits - interest-bearing	265		1		2.13		379		2		2.43
Total interest-bearing deposits	109,492		271		0.99		107,211		273		1.02
Short-term borrowings	8,307		54		2.55		8,367		50		2.40
Long-term debt	22,608		193		3.42		23,233		193		3.33
Total interest-bearing liabilities	140,407		518		1.47		138,811		516		1.49
Noninterest-bearing deposits	52,500						52,680
Accounts payable and other liabilities	6,769						6,457
Shareholders' equity	32,744						31,301
Total liabilities and shareholders' equity	$	232,420					$	229,249
Average interest-rate spread					2.91						2.96

Net interest income/ net interest margin			$	1,723	3.37	%			$	1,714	3.42	%
Taxable-equivalent adjustment			$	23					$	24
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
	March 31, 2019						December 31, 2018						September 30, 2018
	(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	$	3,302	$	16	2.01	%	$	4,555	$	25	2.11	%	$	3,561	$	15	1.80	%
U.S. government-sponsored entities (GSE)	2,418		14		2.24		2,408		14		2.24		2,399		13		2.23
Mortgage-backed securities issued by GSE	40,044		258		2.58		38,566		241		2.50		39,111		239		2.45
States and political subdivisions	620		6		3.73		725		6		3.53		849		10		3.50
Non-agency mortgage-backed	315		10		12.51		326		10		11.50		340		8		11.32
Other	35		—		3.96		30		—		4.51		39		1		3.79
Total securities	46,734		304		2.60		46,610		296		2.53		46,299		286		2.47
Other earning assets	2,197		33		6.01		2,146		14		2.54		2,412		15		2.52
Loans and leases:
Commercial:
Commercial and industrial	61,370		656		4.33		60,553		645		4.23		59,900		612		4.04
CRE	20,905		261		5.06		21,301		261		4.88		21,496		260		4.80
Lease financing	2,021		17		3.33		1,990		18		3.64		1,941		17		3.04
Retail:
Residential mortgage	31,370		324		4.13		31,103		319		4.10		30,500		313		4.08
Direct	11,493		163		5.75		11,600		164		5.56		11,613		155		5.34
Indirect	17,337		338		7.91		17,436		335		7.69		17,282		335		7.56
Revolving credit	3,110		73		9.49		3,070		72		9.39		2,947		63		9.47
PCI	455		20		17.99		486		26		20.49		518		26		20.14
Total loans and leases held for investment	148,061		1,852		5.06		147,539		1,840		4.96		146,197		1,781		4.83
Loans held for sale	729		8		4.38		918		10		4.66		1,292		14		4.28
Total loans and leases	148,790		1,860		5.06		148,457		1,850		4.96		147,489		1,795		4.83
Total earning assets	197,721		2,197		4.49		197,213		2,160		4.36		196,200		2,096		4.24
Nonearning assets	27,852						26,412						26,474
Total assets	$	225,573					$	223,625					$	222,674
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,622	40		0.59		$	26,921	34		0.49		$	26,655	28		0.45
Money market and savings	63,325		150		0.96		62,261		125		0.80		62,957		109		0.68
Time deposits	16,393		60		1.50		14,682		45		1.22		13,353		34		0.98
Foreign office deposits - interest-bearing	422		3		2.43		246		2		2.22		132		1		1.93
Total interest-bearing deposits	107,762		253		0.95		104,110		206		0.78		103,097		172		0.66
Short-term borrowings	5,624		32		2.32		6,979		39		2.18		6,023		29		1.94
Long-term debt	23,247		192		3.30		23,488		186		3.19		24,211		181		2.99
Total interest-bearing liabilities	136,633		477		1.41		134,577		431		1.28		133,331		382		1.14
Noninterest-bearing deposits	52,283						53,732						54,174
Accounts payable and other liabilities	6,116						5,351						5,282
Shareholders' equity	30,541						29,965						29,887
Total liabilities and shareholders' equity	$	225,573					$	223,625					$	222,674
Average interest-rate spread					3.08						3.08						3.10

Net interest income/ net interest margin			$	1,720	3.51	%			$	1,729	3.49	%			$	1,714	3.47	%
Taxable-equivalent adjustment			$	24					$	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.

10 BB&T Corporation



Average Balances and Rates - Year-To-Date
	Year-to-Date
	September 30, 2019						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	$	2,731	$	41	2.03	%	$	3,546	$	47	1.79	%
U.S. government-sponsored entities (GSE)	2,436		41		2.25		2,390		40		2.23
Mortgage-backed securities issued by GSE	41,202		795		2.57		39,894		728		2.44
States and political subdivisions	583		17		3.85		1,036		29		3.71
Non-agency mortgage-backed	271		29		14.34		356		32		12.06
Other	34		1		3.83		43		1		3.05
Total securities	47,257		924		2.61		47,265		877		2.48
Other earning assets	2,612		70		3.57		2,287		53		3.09
Loans and leases:
Commercial:
Commercial and industrial	62,576		2,006		4.28		59,363		1,729		3.89
CRE	20,806		777		4.99		21,480		746		4.64
Lease financing	2,135		52		3.26		1,892		43		3.03
Retail:
Residential mortgage	30,604		930		4.05		29,538		893		4.03
Direct	11,489		495		5.77		11,694		446		5.11
Indirect	17,863		1,066		7.98		17,002		950		7.45
Revolving credit	3,160		225		9.50		2,859		197		9.19
PCI	433		69		21.20		569		82		19.40
Total loans and leases held for investment	149,066		5,620		5.04		144,397		5,086		4.71
Loans held for sale	1,742		54		4.17		1,332		40		4.01
Total loans and leases	150,808		5,674		5.03		145,729		5,126		4.70
Total earning assets	200,677		6,668		4.44		195,281		6,056		4.14
Nonearning assets	28,429						26,536
Total assets	$	229,106					$	221,817
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	27,665	132		0.64		$	26,962	82		0.41
Money market and savings	63,885		469		0.98		62,256		262		0.56
Time deposits	16,256		190		1.57		13,720		87		0.84
Foreign office deposits - interest-bearing	355		6		2.36		577		7		1.60
Total interest-bearing deposits	108,161		797		0.99		103,515		438		0.57
Short-term borrowings	7,443		136		2.44		5,609		72		1.72
Long-term debt	23,027		578		3.35		23,845		497		2.78
Total interest-bearing liabilities	138,631		1,511		1.46		132,969		1,007		1.01
Noninterest-bearing deposits	52,489						53,847
Accounts payable and other liabilities	6,449						5,333
Shareholders' equity	31,537						29,668
Total liabilities and shareholders' equity	$	229,106					$	221,817
Average interest-rate spread					2.98						3.13

Net interest income/ net interest margin			$	5,157	3.43	%			$	5,049	3.45	%
Taxable-equivalent adjustment			$	71					$	72
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
	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
(Dollars in millions)	2019		2019		2019		2018		2018
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	172	$	193	$	196	$	200	$	238
CRE	29		33		75		65		46
Lease financing	2		2		1		3		6
Retail:
Residential mortgage	106		104		121		119		120
Direct	56		54		53		53		55
Indirect	82		75		80		82		72
Total nonaccrual loans and leases held for investment (1)	447		461		526		522		537
Foreclosed real estate	33		36		33		35		39
Other foreclosed property	29		26		25		28		25
Total nonperforming assets(1)	$	509	$	523	$	584	$	585	$	601
Performing Troubled Debt Restructurings (TDRs) (2)
Commercial:
Commercial and industrial	$	69	$	84	$	63	$	65	$	56
CRE	7		8		9		10		12
Retail:
Residential mortgage	570		581		669		656		643
Direct	52		53		54		55		56
Indirect	328		315		306		305		295
Revolving credit	31		29		29		28		28
Total performing TDRs (2)(3)	$	1,057	$	1,070	$	1,130	$	1,119	$	1,090
Loans 90 Days or More Past Due and Still Accruing
Retail:
Residential mortgage	$	347	$	350	$	377	$	405	$	367
Direct	7		10		7		7		6
Indirect	9		7		5		6		6
Revolving credit	16		14		14		14		12
PCI	24		26		28		30		40
Total loans 90 days past due and still accruing	$	403	$	407	$	431	$	462	$	431
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	34	$	32	$	36	$	34	$	35
CRE	1		3		3		5		4
Lease financing	1		5		3		1		1
Retail:
Residential mortgage	432		480		478		456		510
Direct	54		58		67		61		59
Indirect	423		393		316		436		418
Revolving credit	31		28		27		28		27
PCI	16		17		18		23		21
Total loans 30-89 days past due	$	992	$	1,016	$	948	$	1,044	$	1,075
Excludes loans held for sale.
(1) Sales of nonperforming loans totaled $42 million, $48 million, $30 million, $30 million and $20 million for the quarter ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.
(2) Excludes TDRs that are nonperforming totaling $115 million, $135 million, $178 million, $176 million and $176 million at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively. These amounts are included in total nonperforming assets.
(3) Sales of performing TDRs, which were primarily residential mortgage loans, totaled $39 million, $120 million, $33 million, $15 million and $34 million for the quarter ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.

12 BB&T Corporation



Credit Quality
	As of/For the Quarter Ended
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
(Dollars in millions)	2019			2019			2019			2018			2018
Allowance for Credit Losses
Beginning balance	$	1,689		$	1,659		$	1,651		$	1,648		$	1,640
Provision for credit losses (excluding PCI loans)	117			172			156			147			141
Provision (benefit) for PCI loans	—			—			(1		)	(1		)	(6		)
Charge-offs:
Commercial:
Commercial and industrial	(28		)	(22		)	(17		)	(18		)	(28		)
CRE	(2		)	(18		)	(8		)	(5		)	—
Lease financing	(1		)	—			(1		)	(1		)	(1		)
Retail:
Residential mortgage	(3		)	(5		)	(5		)	(8		)	(4		)
Direct	(22		)	(22		)	(18		)	(18		)	(17		)
Indirect	(106		)	(91		)	(109		)	(108		)	(94		)
Revolving credit	(27		)	(25		)	(26		)	(22		)	(20		)
PCI	—			—			—			—			(2		)
Total charge-offs	(189		)	(183		)	(184		)	(180		)	(166		)
Recoveries:
Commercial:
Commercial and industrial	5			8			6			7			13
CRE	3			3			1			4			1
Lease financing	1			—			—			—			—
Retail:
Residential mortgage	—			—			1			1			—
Direct	6			7			6			5			6
Indirect	15			19			17			15			15
Revolving credit	6			4			6			5			4
Total recoveries	36			41			37			37			39
Net charge-offs	(153		)	(142		)	(147		)	(143		)	(127		)
Ending balance	$	1,653		$	1,689		$	1,659		$	1,651		$	1,648
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCI loans)	$	1,565		$	1,587		$	1,553		$	1,549		$	1,528
Allowance for PCI loans	8			8			8			9			10
Reserve for unfunded lending commitments	80			94			98			93			110
Total	$	1,653		$	1,689		$	1,659		$	1,651		$	1,648

										As of/For the Year-to-Date
										Period Ended Sept. 30
(Dollars in millions)										2019			2018
Allowance for Credit Losses
Beginning balance										$	1,651		$	1,609
Provision for credit losses (excluding PCI loans)										445			436
Provision (benefit) for PCI loans										(1		)	(16		)
Charge-offs:
Commercial:
Commercial and industrial										(67		)	(74		)
CRE										(28		)	(8		)
Lease financing										(2		)	(3		)
Retail:
Residential mortgage										(13		)	(13		)
Direct										(62		)	(53		)
Indirect										(306		)	(283		)
Revolving credit										(78		)	(62		)
PCI										—			(2		)
Total charge-offs										(556		)	(498		)
Recoveries:
Commercial:
Commercial and industrial										19			32
CRE										7			4
Lease financing										1			1
Retail:
Residential mortgage										1			1
Direct										19			18
Indirect										51			47
Revolving credit										16			14
Total recoveries										114			117
Net charge-offs										(442		)	(381		)
Ending balance										$	1,653		$	1,648

BB&T Corporation 13



Credit Quality
	As of/For the Quarter Ended
	Sept. 30		June 30		March 31		Dec. 31		Sept. 30
	2019		2019		2019		2018		2018
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.66	%	0.67	%	0.64	%	0.70	%	0.73	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.27		0.27		0.29		0.31		0.29
Nonperforming loans and leases as a percentage of loans and leases	0.30		0.30		0.35		0.35		0.37
Nonperforming assets as a percentage of:
Total assets	0.22		0.23		0.26		0.26		0.27
Loans and leases plus foreclosed property	0.34		0.34		0.39		0.39		0.41
Net charge-offs as a percentage of average loans and leases	0.41		0.38		0.40		0.38		0.35
Allowance for loan and lease losses as a percentage of loans and leases	1.05		1.05		1.05		1.05		1.05
Ratio of allowance for loan and lease losses to:
Net charge-offs	2.59X		2.80X		2.62X		2.76X		3.05X
Nonperforming loans and leases	3.52X		3.46X		2.97X		2.99X		2.86X
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	%	0.04	%

							As of/For the Year-to-Date
							Period Ended Sept. 30
							2019		2018
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases							0.40	%	0.35	%
Ratio of allowance for loan and lease losses to net charge-offs							2.66X		3.02X
Applicable ratios are annualized. Loans and leases exclude loans held for sale.



	September 30, 2019
					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	$	69	100.0	%	$	—		—	%	$	—		—	%	$	69
CRE	7		100.0		—			—		—			—		7
Retail:
Residential mortgage	313		54.9		105			18.4		152			26.7		570
Direct	49		94.2		3			5.8		—			—		52
Indirect	270		82.3		58			17.7		—			—		328
Revolving credit	27		87.1		3			9.7		1			3.2		31
Total performing TDRs (1)	735		69.5		169			16.0		153			14.5		1,057
Nonperforming TDRs (2)	49		42.6		10			8.7		56			48.7		115
Total TDRs (1)(2)	$	784	66.9	%	$	179		15.3	%	$	209		17.8	%	$	1,172

					Quarter Ended
					Sept. 30			June 30		March 31			Dec. 31		Sept. 30
					2019			2019		2019			2018		2018
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.14		%	0.09	%	0.07		%	0.06	%	0.11		%
CRE					(0.02		)	0.30		0.13			0.02		(0.02		)
Lease financing					0.11			0.03		0.10			0.17		0.16
Retail:
Residential mortgage					0.04			0.06		0.05			0.10		0.05
Direct					0.55			0.53		0.42			0.43		0.38
Indirect					1.95			1.63		2.15			2.14		1.79
Revolving credit					2.65			2.56		2.64			2.25		2.11
PCI					—			—		—			—		1.53
Total loans and leases					0.41			0.38		0.40			0.38		0.35
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
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
(Dollars in millions, except per share data, shares in thousands)	2019			2019			2019			2018			2018
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	19,903		$	19,435		$	18,848		$	18,405		$	18,325
Tier 1	22,959			22,486			21,899			21,456			21,376
Total	27,668			26,693			26,078			24,963			24,979
Risk-weighted assets	187,623			187,523			183,060			181,260			179,195
Average quarterly tangible assets	223,298			220,514			217,247			215,872			214,498
Risk-based capital ratios:
Common equity tier 1	10.6		%	10.4		%	10.3		%	10.2		%	10.2		%
Tier 1	12.2			12.0			12.0			11.8			11.9
Total	14.7			14.2			14.2			13.8			13.9
Leverage capital ratio	10.3			10.2			10.1			9.9			10.0
Equity as a percentage of total assets	13.6			13.8			13.6			13.4			13.5
Common equity per common share	$	38.07		$	37.40		$	36.26		$	35.46		$	34.90

Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	32,303		$	31,764		$	30,883		$	30,178		$	30,007
Less:
Preferred stock	3,057			3,053			3,053			3,053			3,053
Noncontrolling interests	69			61			60			56			59
Intangible assets, net of deferred taxes	10,281			10,317			10,326			10,360			10,407
Tangible common equity	$	18,896		$	18,333		$	17,444		$	16,709		$	16,488

Outstanding shares at end of period (in thousands)	766,303			766,010			765,920			763,326			770,620

Tangible Common Equity Per Common Share	$	24.66		$	23.93		$	22.78		$	21.89		$	21.40

(1)

Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, 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
Third Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense										$	(39	)
Professional services										(12		)
Other expense										(1		)
Total										$	(52	)	$	(40	)

Redemption of preferred shares	Preferred stock dividends									$	(46	)	$	(46	)

Allowance release related to residential mortgage portfolio sale	Provision for credit losses									$	16		$	12
Gain on residential mortgage portfolio sale	Mortgage banking income									4			3
Impact of mortgage portfolio sale										$	20		$	15

Second Quarter 2019
Incremental operating expenses related to the merger:
Personnel expense										$	(4	)
Professional services										(5		)
Total										$	(9	)	$	(7	)

First Quarter 2019
Incremental operating expenses related to the merger:
Professional services										$	(1	)
Other expense										(1		)
Total										$	(2	)	$	(1	)

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

	As of/For the Quarter Ended
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30
(Dollars in millions, except per share data)	2019			2019			2019			2018			2018
Mortgage Banking Income
Residential mortgage production revenue	$	50		$	37		$	20		$	22		$	29
Residential mortgage servicing revenue	64			62			61			65			63
Realization of expected residential MSR cash flows	(36		)	(38		)	(33		)	(37		)	(35		)
Commercial mortgage production revenue	26			20			11			28			20
Commercial mortgage servicing revenue	10			9			10			9			10
Realization of expected commercial MSR cash flows	(7		)	(7		)	(7		)	(7		)	(7		)
Mortgage banking income before MSR valuation	107			83			62			80			80
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(79		)	(52		)	(54		)	(55		)	35
MSRs hedge gains (losses)	84			82			55			61			(36		)
Net MSRs valuation	5			30			1			6			(1		)
Total mortgage banking income	$	112		$	113		$	63		$	86		$	79
Other Mortgage Banking Information
Residential mortgage loan originations	$	5,274		$	4,735		$	2,383		$	2,735		$	4,265
Residential mortgage servicing portfolio (1):
Loans serviced for others	87,147			85,060			86,119			87,270			88,323
Bank-owned loans serviced	29,122			32,852			31,861			31,335			31,137
Total servicing portfolio	116,269			117,912			117,980			118,605			119,460
Weighted-average coupon rate on mortgage loans serviced for others	4.09		%	4.07		%	4.06		%	4.04		%	4.03		%
Weighted-average servicing fee on mortgage loans serviced for others	0.280			0.279			0.278			0.277			0.277

Additional Information
Derivatives notional amount	$	72,100		$	64,967		$	72,998		$	67,738		$	68,400
Fair value of derivatives, net	641			489			158			(1		)	(253		)
Common stock prices:
High	53.85			51.76			52.45			52.11			53.08
Low	44.98			46.53			42.79			40.68			48.41
End of period	53.37			49.13			46.53			43.32			48.54
Banking offices	1,789			1,787			1,871			1,879			1,958
ATMs	2,376			2,376			2,503			2,573			2,764
FTEs	34,723			34,771			35,334			35,852			36,233
(1) Amounts reported are unpaid principal balance.

16 BB&T Corporation



Non-GAAP Reconciliations
	Quarter Ended															Year-to-Date
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30			Sept. 30			Sept. 30
(Dollars in millions)	2019			2019			2019			2018			2018			2019			2018
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	1,840		$	1,751		$	1,768		$	1,784		$	1,742		$	5,359		$	5,148
Amortization of intangibles	(29		)	(32		)	(32		)	(34		)	(33		)	(93		)	(97		)
Merger-related and restructuring charges, net	(34		)	(23		)	(80		)	(76		)	(18		)	(137		)	(70		)
Incremental operating expenses related to the merger	(52		)	(9		)	(2		)	—			—			(63		)	—
Efficiency Ratio Numerator - Adjusted	$	1,725		$	1,687		$	1,654		$	1,674		$	1,691		$	5,066		$	4,981

Efficiency Ratio Denominator - Revenue (2) - GAAP	$	3,003		$	3,042		$	2,898		$	2,940		$	2,926		$	8,943		$	8,618
Taxable equivalent adjustment	23			24			24			24			27			71			72
Securities (gains) losses, net	—			—			—			(2		)	—			—			(1		)
Gain on residential mortgage portfolio sale	(4		)	—			—			—			—			(4		)	—
Efficiency Ratio Denominator - Adjusted	$	3,022		$	3,066		$	2,922		$	2,962		$	2,953		$	9,010		$	8,689

Efficiency Ratio - GAAP	61.3		%	57.6		%	61.0		%	60.7		%	59.5		%	59.9		%	59.7		%
Efficiency Ratio - Adjusted	57.1			55.1			56.6			56.5			57.3			56.2			57.3

(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
	Sept. 30			June 30			March 31			Dec. 31			Sept. 30			Sept. 30			Sept. 30
(Dollars in millions)	2019			2019			2019			2018			2018			2019			2018
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	735		$	842		$	749		$	754		$	789		$	2,326		$	2,309
Plus: Amortization of intangibles, net of tax	22			24			25			25			26			71			74
Tangible net income available to common shareholders	$	757		$	866		$	774		$	779		$	815		$	2,397		$	2,383

Average common shareholders' equity	$	29,040		$	28,188		$	27,432		$	26,860		$	26,782		$	28,226		$	26,565
Less: Average intangible assets, net of deferred taxes	10,298			10,326			10,343			10,391			10,409			10,322			10,194
Average tangible common shareholders' equity	$	18,742		$	17,862		$	17,089		$	16,469		$	16,373		$	17,904		$	16,371

Return on average common shareholders' equity	10.04		%	11.98		%	11.08		%	11.14		%	11.69		%	11.02		%	11.62		%
Return on average tangible common shareholders' equity	16.03			19.45			18.36			18.77			19.74			17.90			19.46

(1)



	Quarter Ended												Year-to-Date
	Sept. 30			June 30		March 31		Dec. 31			Sept. 30		Sept. 30			Sept. 30
(Dollars in millions, except per share data)	2019			2019		2019		2018			2018		2019			2018
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	735		$	842	$	749	$	754		$	789	$	2,326		$	2,309
Merger-related and restructuring charges	26			19		64		59			13		109			52
Incremental operating expenses related to the merger	40			7		1		—			—		48			—
Securities gains (losses), net	—			—		—		(1		)	—		—			(1		)
Redemption of preferred shares	46			—		—		—			—		46			—
Allowance release related to residential mortgage portfolio sale	(12		)	—		—		—			—		(12		)	—
Gain on residential mortgage portfolio sale	(3		)	—		—		—			—		(3		)	—
Net income available to common shareholders - adjusted	$	832		$	868	$	814	$	812		$	802	$	2,514		$	2,360

Weighted average shares outstanding - diluted	775,791			774,603		774,071		775,402			781,867		774,907			786,140

Diluted EPS - GAAP	$	0.95		$	1.09	$	0.97	$	0.97		$	1.01	$	3.00		$	2.94
Diluted EPS - adjusted	1.07			1.12		1.05		1.05			1.03		3.25			3.00

(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

Truist Financial (TFC) 8-KResults of Operations and Financial Condition