BB&T announces Federal Reserve response to CCAR capital plan

Thu Mar 14, 2013 4:54pm EDT

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/PRNewswire/ -- BB&T today announced that the Board of Governors of the Federal
Reserve System (Fed) did not object to the company's continuation in future
quarters of its first quarter dividend of  $.23  per share. The first quarter
dividend reflects a 15% increase compared to the company's quarterly dividends
for each quarter of 2012. The Fed also did not object to BB&T's continued
payment of preferred dividends for its outstanding classes of preferred stock.  

WINSTON-SALEM, N.C.,  March 14, 2013The Fed informed BB&T that it objects to
certain other elements of its capital plan. However, based on the quantitative
results of the stress test, BB&T does not believe these objections are related
to the company's capital strength, earnings power or financial condition.

"We are pleased to have increased our dividend 15% in the first quarter. This
reflects the strength of our financial position. We remain strongly committed to
our shareholders and are proud to have one of the strongest dividend yields and
highest payout rates in the industry," said Chairman and Chief Executive Officer
 Kelly S. King.

On  March 7, the Fed disclosed the results of its Dodd-Frank supervisory stress
test which showed BB&T the most well capitalized traditional bank even after
being subjected to the hypothetical supervisory severely adverse scenario. In
addition, the results of the Dodd-Frank stress test released by the Fed show
BB&T to have the strongest capital, lowest total loan losses and second highest
pretax income among traditional banks.  

The Fed does not permit bank holding companies to disclose confidential
supervisory information including any reason for an objection to capital plans
submitted in the Comprehensive Capital Analysis and Review (CCAR) process.
However,  the Fed has an established process for resubmission of CCAR capital
plans, which are fully described in the Capital Planning rule. BB&T plans to
resubmit its capital plan as soon as feasible, and expects that its resubmitted
plan will address the factors which led to the Fed's objections.   The Fed does
not permit bank holding companies to disclose the ongoing status of any
resubmitted capital plan.

BB&T has paid a cash dividend to shareholders every year since 1903. The company
has approximately 700 million shares outstanding.

BB&T's CCAR results under the Fed's hypothetical economic scenario are:

 BB&T Corporation - Projected Capital Ratios through Q4 2014 under the Supervisory Severely Adverse Scenario 
                                     Actual       Stressed Ratios with Original Planned Capital    
                                                  
Actions                                         
                                     Q3 2012      Minimum                                          
                                                                                                   
 Tier 1 Common Ratio (%)             9.5%         7.9%                                             
 Tier 1 Capital Ratio (%)            10.9%        9.7%                                             
 Total Risk-based Capital Ratio (%)  14.0%        11.9%                                            
 Tier 1 Leverage Ratio (%)           7.9%         7.2%                                             
                                                                                                   
                                                                                                   
 Note: The capital ratios presented in the table above have not been adjusted lower following a reevaluation of BB&T's processes related to  regulatory guidance for calculating risk-weighted assets. The revised actual and stressed projections would reduce the tier 1 common ratios by .34%  and .28%, respectively; the tier 1 capital ratios by .39% and .35%, respectively; and the total risk based capital ratios by .46% and .38%, respectively.  There were no changes to the tier 1 leverage ratios. 


BB&T's Analysis of Stress Test Results - Capital

The performance of the stress scenario significantly reduced BB&T's net income
and loan balances because the scenario assumes higher levels of unemployment, a
decline in housing prices and other negative economic factors. As presented in
the table above, all BB&T's capital ratios showed a decrease over the 9-quarter
period of the stress test. The decreases resulted because the original planned
capital distributions, as assumed in the CCAR stress test, exceeded the amount
of the reduced net income. The lower capital was partially offset by lower
average assets and lower risk-weighted assets in the stress environment. The
decrease in loan balances resulted from greater loan charge-offs and reduced
loan demand in the stressed economic environment.  

The decrease in BB&T's capital ratios was reduced by the company's issuance of 
$450 million  of perpetual preferred stock in the fourth quarter of 2012, which
is reflected in the CCAR stress test results.

Capital levels were reduced by the lower net income, the inclusion of planned
capital actions, and the disallowance of a portion of the company's deferred tax
asset. Also, BB&T's total risk-based capital ratio was driven lower because the
portions of the allowance for loan and lease losses and subordinated debt that
are considered regulatory capital decreased under the stress scenario.  

CAUTIONARY STATEMENTS

The capital ratios calculated herein use original planned capital actions from
2013 annual capital plans. These projections represent hypothetical estimates
that involve an economic outcome that is more adverse than expected. These
estimates are not forecasts of actual capital ratios.  

This news release contains certain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. These statements may address
issues that involve significant risks, uncertainties, estimates and assumptions
made by management. Actual results may differ materially from current
projections. Please refer to BB&T's filings with the Securities and Exchange
Commission for a summary of important factors that may affect BB&T's
forward-looking statements. BB&T undertakes no obligation to revise these
statements following the date of this news release.

The Dodd-Frank Act, signed into law in  July 2010, represents a significant
overhaul of many aspects of the regulation of the financial services industry,
addressing, among other things, systemic risk, capital adequacy, deposit
insurance assessments, consumer financial protection, interchange fees,
derivatives, lending limits, and changes among the bank regulatory agencies.
BB&T, under Dodd-Frank, is deemed to be a "systemically important" institution.
During 2012, federal agencies continued implementation of and rulemaking under
the Dodd-Frank Act.   Many of these provisions remain subject to further
rulemaking, guidance, and interpretation by the applicable federal regulators,
which will regulate the systemic risk of the financial system   BB&T cannot
predict the additional effects that compliance with the Dodd-Frank Act or any
regulations will have on BB&T's businesses or its ability to pursue future
business opportunities. Additional regulations resulting from the Dodd-Frank Act
may materially adversely affect BB&T's business, financial condition or results
of operations.  

About BB&T  
BB&T Corporation (NYSE: BBT) is one of the largest financial services holding
companies in the U.S. with  $183.9 billion  in assets, market capitalization of 
$20.4 billion  and operates 1,832 financial centers in 12 states and 
Washington, D.C., as of  Dec. 31, 2012. Based in  Winston-Salem, N.C., the
company offers a full range of consumer and commercial banking, securities
brokerage, asset management, mortgage and insurance products and services. A
Fortune 500 company, BB&T is consistently recognized for outstanding client
satisfaction by J.D. Power and Associates, the U.S. Small Business
Administration, Greenwich Associates and others. More information about BB&T and
its full line of products and services is available at  www.BBT.com.

SOURCE  BB&T Corporation


ANALYSTS, Alan Greer, Executive Vice President, Investor Relations,
+1-336-733-3021, AGreer@BBandT.com; MEDIA, Cynthia Williams, Senior Executive
Vice President, Corporate Communications, +1-336-733-1478,
Cynthia.Williams@BBandT.com

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