Truist Financial (TFC) 8-K Current Report

Interest Rate Risk / Financial Management

January 2001

Balance Sheet Management

Balance Sheet Composition
(as of 12/31/00)

BB&T

Balance Sheet Management

Balance Sheet Composition – Assets
(as of 09/30/00)

BB&T

Investment Portfolio

Portfolio Composition
(as of 09/30/00)

BB&T

Investment Portfolio

Portfolio Maturity Distribution
(as of 09/30/00)

BB&T

Investment Portfolio

Portfolio Size / Maturity Comparison
(as of 09/30/00)

BB&T

Investment Portfolio

Yields (FTE)
(3rd Quarter 2000)

BB&T

Investment Portfolio

Categories	Par Value	Percent of Portfolio		Tax Equiv. Yield		Market Gain/(Loss)
U.S. Treasuries	$     272,850,000	2.05	%	6.67	%	$     1,610,687
Federal Agencies	8,121,358,000	60.95		7.49		240,586,496
Mortgage-Backed Securities	2,145,757,723	16.10		7.21		28,393,179
CMO’s (Collateralized Mortgage Obligation)
- Agency	400,168,006	3.00		6.90		493,059
- Non-Agency	93,501,504	0.70		6.36		(853,646	)
Municipals	868,823,116	6.52		7.57		3,022,367
FHLMC / FNMA Preferred Stock	1,017,240,000	7.63		7.80		(99,768,677	)
FHLB Stock	333,789,400	2.51		7.70		-0-
Other Securities	72,241,129	0.54		5.50		(284,999	)
Total	$13,325,728,878	100.00	%	7.43	%	$ 173,198,466
(as of 12/31/00)

BB&T

Interest Rate Risk Management

Interest Rate Scenarios – Prime Rate Movements
(as of 12/31/00)

BB&T Corporation
Rate Sensitivity Analysis Off Most Likely Earnings
January 2001 – December 2001 Forecast

BB&T

Interest Rate Risk Management

Derivatives – Current Position (12/31/00)
Notional Balance Outstanding	$ 725,878,000
Maturities in next 12 months	$ 300,000,000
Weighted average maturity	2.47 years
Net Market Value	($ 267,000	)

BB&T

Corporate Funding

Wholesale Funding Sources	Line Amount Available	Current Borrowings
Fed Funds & Eurodollar Lines of Credit	$16 billion	$3.5 billion
Bank Note Program	5 billion	3.1 billion
FHLB	12 billion	6.2 billion
Institutional CD Program	2 billion	—
Brokered Retail CD Program	1 billion	92 million
Shelf for BB&T Corporation	1 billion	850 million
Brokered Money Market Deposit Account Program	600 million	186 million
Committed Bank Lines of Credit	300 million	—
	$37.9 billion	$13.9 billion

BB&T

Corporate Funding

Average Deposit Growth Analysis
For the periods ended December 31, 2000 and 1999
($ in Thousands)

	2000	1999	Increase $		(Decrease) %		As a % of Total 2000 Deposits
Noninterest Bearing Deposits	$  4,893,035	$  4,682,417	$    210,618		4.5	%	13.6	%
Interest Checking	1,123,599	1,372,875	(249,276	)	(18.2	)	3.1
Money Rate Savings	5,671,448	5,528,218	143,230		2.6		15.8
Regular Savings	1,523,210	1,832,440	(309,230	)	(16.9	)	4.2
IDA and BIDA	4,118,107	3,267,526	850,581		26.0		11.5
Total Transaction, Savings & MRS	17,329,399	16,683,476	645,923		3.9		48.3
Deposits
CDs <$100,000	9,963,714	9,380,163	583,551		6.2		27.8
IRAs	2,381,917	2,355,196	26,721		1.1		6.6
Total Core Deposits	29,675,030	28,418,835	1,256,195		4.4		82.7
CDs > $100,000	3,757,146	3,639,956	117,190		3.2		10.5
Negotiable CDs > $100,000	310,290	343,772	(33,482	)	(9.7	)	0.9
Other Time Deposits	366,007	371,171	(5,164	)	(1.4	)	1.0
Total Domestic Deposits	34,108,473	32,773,734	1,334,739		4.1		95.0
Foreign Deposits	1,789,178	954,420	834,758		87.5		5.0
Total Deposits	$35,897,651	$33,728,154	$ 2,169,497		6.4	%	100.0	%
Deposits Excluding Purchase Acquisitions and Official Check Outsourcing Program
Total Transaction, Savings & Money Markets	$17,099,682	$16,591,463	$    508,219		3.1	%	48.4	%
CDs, IRAs & Other Deposits	16,463,833	15,982,177	481,656		3.0		46.6
Total Domestic Deposits	33,563,515	32,573,640	989,875		3.0		94.9
Foreign Deposits	1,789,178	954,420	834,758		87.5		5.1
Total Deposits	$35,352,693	$33,528,060	$ 1,824,633		5.4	%	100.0	%

BB&T

Corporate Funding

Deposit Strategy – Established Markets

• Grow core deposits sufficient to support earning asset growth.

• Focus on improving the bank’s deposit mix and lowering the bank’s cost of funds.

BB&T

Corporate Funding

Deposit Strategy – New Markets

• Stabilize retail and commercial deposits through rate exceptions and CD specials as needed.

• Achieve targeted growth through expansion of existing client relationships and acquisition of new clients.

• Transition to BB&T’s deposit strategy within 24 months.

BB&T

Corporate Funding

Deposit Market Share
Commercial Banks at 6/30/00

•	North Carolina	(without home office deposits)	1st
•	West Virginia		1st
•	South Carolina		3rd
•	Virginia		4th
•	DC		5th
•	Maryland		7th
•	Georgia		8th
•	Tennessee		10th
•	Kentucky		23rd
•	Alabama		77th
Proforma for all announced mergers through January 31, 2001

BB&T

Corporate Funding

Balance Sheet Composition – Liabilities
(as of 9/30/00)

BB&T

Corporate Funding

Detailed Funding Composition
& Cost Comparison for 2000

BB&T

Corporate Funding

Ratings

	S&P	Moody’s	Fitch
BB&T Corporation
- Commercial Paper	A-2	Prime 1	—
- Senior Debt	A-2	A-2	A
- Subordinated Debt	BBB+	A-3	A-
BB&T - NC
- Certificates of Deposit	A	A-1	A+
- Bank Notes	A	A-1	A+
BB&T - SC
- Certificates of Deposit	A	A-1	A+
BB&T - VA
- Certificates of Deposit	—	A-1	—
Ratings Outlook	Stable	Positive	Positive

BB&T

Capital Management

• The policy of BB&T Corporation is to return 30-40% of its annual earnings to its shareholders in the form of cash dividends.

• BB&T’s 10-year compound annual dividend growth rate is 15.1% as compared to 3.0% for the S&P 500.

• BB&T has increased its annual cash dividend for 28 consecutive years.

• BB&T’s policy is to maintain a leverage capital ratio of approximately 7-to-8%. 12/31/00 ratio is 7.1%.

• Since the Merger-of-Equals, BB&T has repurchased 48.5 million shares of stock totaling $1.35 billion dollars.

BB&T

Income Taxes

	1996	1997	1998	1999	2000
Effective Income Tax Rate(1)	32.4	33.6	31.5	32.3	32.0	%

•	Primary goal of income tax management is minimization of effective tax rate.
•	Effective utilization of tax planning strategies have resulted in stable effective tax rates.
•	Effective tax rates have consistently been below combined Federal and state statutory rates.
	(1) Based on originally reported recurring results

BB&T