kellywhole.htm

EX-99.1 2 kellywhole.htm kellywhole.htm - BB&T

Exhibit 99.1

BB&T is …

A value-driven highly profitable growth organization. During the 90’s and the first part of this decade, our growth came largely from mergers as the economics of combinations were compelling. Recently, our focus has been more on organic growth.
Our over-arching purpose is to achieve our vision and mission, consistent with our values with the ultimate goal of maximizing shareholder returns.
Our fundamental strategy is to deliver the best value proposition in our markets. Recognizing value is function of quality to price, our focus is on creating high quality resulting in the perfect client experience.

BB&T Vision

To Create the Best Financial Institution Possible

“The Best of the Best”

BB&T Mission

TO MAKE THE WORLD A BETTER PLACE TO LIVE BY:

Helping our CLIENTS achieve economic success and financial security;

Creating a place where our EMPLOYEES can learn, grow and be fulfilled in their work;

Making the COMMUNITIES in which we work better places to be; and thereby:

Optimizing the long-term return to our SHAREHOLDERS , while providing a safe and sound investment.

Purpose

Our ultimate purpose is to create superior, long-term economic rewards to our owners (shareholders) .

BB&T Values

Values are practical habits that enable us as individuals to live, be successful and achieve happiness.
For BB&T, our Values enable us to achieve our mission and corporate purpose.
Values must be consistent (non-contradictory).
Values are important!!

BB&T Values

Being honest is being consistent with reality
Without honesty, there can be no trust
Without trust, there can be no meaningful relationships
Honesty is fundamental to organizational and societal advancement
We must say what we mean and keep our agreements
Integrity requires we act consistent with our values/principles
We must avoid compromising our principles for short-term benefit

BB&T Values

What is, is
Clear thinking requires first understanding the facts
Sound reasoning results in logical decisions based on the facts
All employees are challenged to use their minds to their optimum and exercise good judgment
Each of us is responsible for what we do and who we are, and what we think
Creativity is also strongly encouraged and only possible with independent thought
We are challenged to think individually but work as a team

BB&T Values

We are committed to be producers of wealth and well-being by accomplishing our mission
Tangible evidence of our productivity is superior performance (results)
At the individual level, productivity is getting the job done
While individual productivity is obviously important, we must accomplish the team’s objectives in a respectful and mutually supportive manner
Individuals should be rewarded objectively based on their contributions to our mission and adhering to our values

BB&T Values

Positive self-esteem is the motivating sense of self-worth which we get from doing a job well
We want employees who have strong personal goals and who expect to accomplish their goals within the context of our mission
We have a strong work ethic and we believe you receive from your work in proportion to how much you contribute. If you don’t want to work hard, work somewhere else
Effective leadership creates an environment where employees get a substantial part of their motivational needs met by accomplishing our vision, mission, consistent with our values
Pride is the psychological reward we earn by living our values
We must perform our work such that we deserve to be proud of our accomplishments

BB&T LEADERSHIP MODEL

MASLOW’S HIERARCHY OF NEEDS

ADAPTATION OF MASLOW


BB&T	MASLOW’S
LEADERSHIP	HIERARCHY OF NEEDS
MODEL

At BB&T there are 3 Non-Negotiables


1	.	Vision

2	.	Mission	Everything else is strategic or tactical and will be adapted to
			accomplish our ultimate goal of
			maximizing shareholder returns.
3	.	Values

The BB&T Positive Attitude

Given the facts of reality and our ability to reason, we are capable of achieving both success and happiness.

Enthusiastic Positive Attitude

Our Passions

TO CREATE THE BEST
FINANCIAL
INSTITUTION POSSIBLE

Current Results

Primary Market Segments

50% Retail / 50% Commercial


n Small Business	n Wealth Mgt / Private Banking
n Commercial Middle Market	n Investment Services
n Real Estate Lending	n Asset Management
n Retail	n Capital Markets
n Home Equity	n Venture Capital
n Sales Finance	n Consumer Finance
n Home Mortgage	n Commercial Finance
n Commercial Mortgage	n Insurance Premium Finance
n Leasing	n International
n Insurance	n Bank Card
n Payment Solutions	n Merchant
n Payroll Processing	n Supply Chain Management
n Institutional Trust Services

Significant Accomplishments

through 12/31/08


n	Superior Relative Performance
n	Fee Income 10.3%
n	Total Loans 8.2%
n	Total Deposits 6.4%
n	Effective Expense Control
n	Asset Quality Better Than Peers
n	Net New Transaction Accounts (94,000)

Significant Accomplishments

through 12/31/08


n	Reduced Employee Turnover from 19.2% to 15.0%
n	5+ Households 34.4%
n	Online Banking +21% (3,004,620 Clients)
n	On target to open 30 DeNovo locations
n	Successful advertising campaign (Best Bank In Town Since 1872)
n	Maintained superior service quality
n	Excellent Results in Bankcard and Merchant

Significant Accomplishments

Successful Acquisitions:

n Ott & Company

n Ramsey Title Group

n Burkey Risk Services

n Savannah Reinsurance Underwriting Management LLC

n Premier Benefits Group

n UnionBanc Insurance Services, Inc.

n Puckett, Sheetz & Hogan

n Southern Risk Holdings, Inc.

n Commercial Title Group

n J. Rolfe Davis Insurance Agency

n TapCo Underwriters, Inc.

n Haven Trust Bank

n Live Oak Capital Ltd.

Challenges and Opportunities

n Residential Real Estate Downturn:

Core Business for BB&T

n Unprecedented Market Disruption

n Return to Fundamental Banking

Financial Strength

($ in Billions Except for Per Share Information)

(Period-end Balances):

2004

2005

2006

2007

2008

Total Assets

100.5

109.2

121.4

132.6

152.0

Total Shareholders’ Equity

10.9

11.1

11.7

12.6

16.0

BV Per Common Share

19.76

20.49

21.69

23.14

23.16

Tangible Common Equity/Assets

6.8

6.6

6.0

5.7

5.3

Leverage Capital Ratio

7.1

7.2

9.7

Tier 1 Capital

9.2

9.3

9.0

9.1

12.0

Total Capital

14.5

14.4

14.3

14.2

17.1

Equity / Assets

10.8

10.2

9.7

9.5

10.5

Earnings Trends

($ in Millions Except Per Share Information) Year Ended December 31, 2008

Seven-Year

Compound

2002

2003

2004

2005

2006

2007

2008

Growth Rate

Interest income

4,434

4,287

4,547

5,506

6,893

7,894

7,274

6.0

Interest expense

1,687

1,273

1,199

1,981

3,185

4,014

2,969

3.0

Net interest income

2,747

3,014

3,348

3,525

3,708

3,880

4,305

8.5

Provision for credit losses

263

248

249

217

240

448

1,445

33.8

Net interest income after

provision credit losses

2,484

2,766

3,099

3,308

3,468

3,432

2,860

3.5

Noninterest income

1,541

1,827

2,119

2,324

2,596

2,774

3,060

13.7

Noninterest expense

2,195

2,548

2,890

3,133

3,526

3,601

3,952

10.7

Income before income taxes

1,830

2,045

2,328

2,499

2,538

2,605

1,968

3.5

Provision for income taxes

512

621

766

825

831

856

571

3.4

Operating income

1,318

1,424

1,562

1,674

1,707

1,749

1,397

3.5

Dividends on preferred stock

Operating earnings available

to common shareholders

1,318

1,424

1,562

1,674

1,707

1,749

1,376

3.2

Merger-related & other items¹

(15

)

(359

)

(20

)

(179

)

(15

)

122

Net income available to

common shareholders

1,303

1,065

1,558

1,654

1,528

1,734

1,498

6.3

¹Net of taxes

Pre-tax pre-provision earnings had a 7 year CAGR of 10.1%

Generating Fee Income and

Operating Efficiency ¹

For the Period Ended

National²

2004

2005

2006

2007

2008

Peers

Noninterest Income/

Net Revenue (T/E)

37.8

39.1

40.6

41.3

40.3

37.9

Cash Basis Efficiency Ratio

49.7

50.4

53.2

51.6

51.3

62.3

Operating Leverage

(1.36

(1.51

(4.79

3.03

1.05

(9.1

¹Operating

²National Peers: CMA, FITB, HBAN, KEY, M&T, M&I, PNC, BPOP, RF, STI, USB and Zions

Credit Quality

National*

2004

2005

2006

2007

2008

Peers

Net Charge-offs/

Average Loans

.36

.30

.27

.38

.89

1.57

Net Charge-offs without

Specialized Lending

.24

.19

.14

.21

.69

n/a

Nonperforming Assets/

Total Assets

.36

.27

.29

.52

1.34

1.88

^*National Peers: CMA, FITB, HBAN, KEY, M&T, M&I, PNC, BPOP, RF, STI, USB and Zions

Total Assets

15 year growth trend

As originally reported 15-year compound annual growth rate 20.6%

Operating Earnings

As Originally Reported

15 year growth trend

As originally reported 15-year compound annual growth rate 19.2%

Pre-Tax Pre-Provision Operating Earnings

“Earnings Power”

15 year growth trend

As originally reported 15-year compound annual growth rate 22.4%

Relative Financial Performance


			National
	BB&T		Peers*
Earnings Per Share Growth	(13.7	)%	(203.2	)%

CB ROA	1.11	%	0.0	%

CB ROE	19.30	%	0.72	%

Non Performing Assets / Total Assets	1.34	%	1.88	%

^*National Peers: CMA, FITB, HBAN, KEY, M&T, M&I, PNC, BPOP, RF, STI, USB and Zions

Recognitions


n	SBA: 2007 Export Lender of the Year

n	J.D. Powers Survey: Second Best Small Business Bank

n	J.D. Powers Survey: #1 Overall in Mortgage Servicing

n	J.D. Powers Survey: #1 Bank Prime Indirect Lender in Auto Dealer Satisfaction

n	Greenwich Excellence Award for Distinguished Service and Overall Satisfaction in Middle Market Banking

n	Ranked by *CRO* as one of America’s “100 Best Corporate Citizens”

Recognitions

n BB&T Insurance Services Rated 1^stin Overall Productivity

n BB&T Capital Markets: Best on Street Analysts

n 2007 and 2008 Import Factor of the Year: By Factors Chain

International

- Largest U.S. Import Factor in the World

n ASTD BEST: #2 of Top 40 Learning Organizations

n Ranked by Training Magazine #18 of Training Top 125 Awards

Recognitions

n Ranked by Luxury Brand Index #1 Regional Bank for Wealth

Management

n Ranked by 401kExchange #1 in Client Service ($1-$10 million)

n Mergent Dividend Achiever (Only 2% Qualify)

n S&P: High Yield Dividend Aristocrat

n John Allison – Top 4 Finalist Morningstar 2008 CEO of the year

n John Allison – Won Best CEO from Motley Fool for 2008

Total Compound Annual Return to Shareholders

December 31, 2008


	BB&T		S&P 500		National Peers*
1 Year	-4.6	%	-36.8	%	-40.7	%
3 Year	-8.7	%	-8.3	%	-24.5	%
5 Year	-2.4	%	-2.2	%	-14.1	%
10 Year	-0.2	%	-1.4	%	-5.4	%
15 Year	10.7	%	6.4	%	5.5	%
20 Year	11.2	%	8.4	%	8.7	%

^*National Peers: CMA, FITB, HBAN, KEY, M&T, M&I, PNC, BPOP, RF, STI, USB and Zions

Shareholder Return

Depicts $100 invested at 12/31/95 and held through 12/31/08 with dividends reinvested in the security or index.

BB&T Dividend Performance

As of / year ended 12/31/08


		BB&T		S&P 500
n	Ten Year Compound Annual Growth Rate	10.9	%	5.8	%

n	Dividend Yield	6.8	%	3.2	%

Paid a cash dividend every year since 1903
37th Consecutive year of dividend increases
Annual dividend increase in 2008 5.7%
Mergent Dividend Achiever (Only 2% Qualify)
S&P: High Yield Dividend Aristocrat

Global Economic Context

Improving Global Productivity: More Global Economic Freedom
Global Integration Accelerating
Brutally Competitive
Imbedded Cost of Excessive Regulation in U.S.
Increased Geopolitical Risk / Cost of Risk Control
Volatile / Uncertain
Merciless / Tough
Survival of Most Competent / Committed
Global economic “slowdown” will impact these factors

Economy 2009*

Very slow growth: Real GDP -0.6%
Low Inflation CPI 0.6%
Total growth 0%
Unemployment (at 2009 peak) 8.4%
At 12/31/09: Fed Funds 0.3%; Prime 3.3%; 10 year treasury 2.8%

Will FOMC vote to raise its target
Federal Funds rate prior to the end of 2009?
30% Say Yes

*Blue Chip Forecast: as of February 1, 2009

US Economic Framework*

5 Year Forecast
(2010 – 2014)

Solid real growth: Real GDP to average 2.8%
Moderate Inflation: CPI to average 2.5%
Total annual growth will average 5.3%
Prime rate will range from 5.0% to 7.25% and average 6.5%
At 12/31/14; Fed Funds 4.25%; Prime rate 7.25%; 10 year Treasury 5.2%

*Blue Chip Forecast

Financial Services Industry

Primary forces impacting the industry:

(1)	Credit, Market, and Operational Risk
(2)	Intense Competition / Excess Capacity
(3)	Consolidate / Diversify / Restructure
(4)	Innovation / Productivity Improvement
(5)	Regulation / Corporate Governance

FINANCIAL SERVICES IS A WORLD -WIDE,
GROWTH INDUSTRY, WHERE THE ENGLISH
SPEAKING WORLD CURRENTLY HAS A
COMPETITIVE ADVANTAGE

Outcome of Financial Industry Trends

In 10 years there will be 10 to 15 or so Financial Services firms which will dominate the industry. There will be some mid- sized and a number of small institutions who will face a difficult competitive environment.
The winners will be those companies with rational strategies, superior processes and exceptional executional abilities. Due to these attributes, these winners will have superior revenue and earnings per share (EPS) growth and outstanding return on equity (ROE).

BB&T Will Be A Winner

Our Goal

n Create a high-performance financial

services organization that can survive and

prosper in a rapidly changing, highly

competitive, globally integrated

environment

n CREATE THE BEST FINANCIAL

INSTITUTION POSSIBLE

Achieving Our Goal

The key to maximizing our probability of being both independent and prosperous over the long term is to create a superior Earnings Per Share Growth Rate without sacrificing the fundamental quality and long-term competitiveness of our business, nor taking unreasonable risk. Our ultimate goal is to maximize shareholder returns.