Positioned for Growth Rufus Yates BB&T Securities President/CEO Financial Services Commercial Finance Manager. Investor Day 2018

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1 Positioned for Growth Rufus Yates BB&T Securities President/CEO Financial Services Commercial Finance Manager Investor Day 2018

2 Key Takeaways 1Segment provides revenue, asset and geographic diversification Successful national platform has meaningful opportunity for continued market 2share expansion 3Wealth segment is driving high value retail household growth 4Corporate and Institutional platform provides industryspecific solutions while increasing relationship value through targeted up-tiering strategy 2

3 Financial Services & Commercial Finance (FSCF) Specialized businesses offer geographic, asset and revenue diversity Helping clients achieve economic success and financial security through the delivery of highly customized capital, investment and asset management solutions Supported by high performing associates prepared to meet the unique needs of our growing Wealth, Corporate and Institutional client base 3

4 Financial Services & Commercial Finance Provides Diversification of Revenue and Profitability Revenue Diversification by Segment Net Income Mix by Segment Financial Services & Commercial Finance 17% Community Banking Commercial 23% Insurance Holdings & Premium Finance 16% Community Banking Retail & Consumer Finance 44% Financial Services & Commercial Finance 17% Community Banking Commercial 33% Insurance Holdings & Premium Finance 7% Community Banking Retail & Consumer Finance 43% YTD as of 09/30/2018 *Total segments excluding Other, Treasury & Corporate 4

5 Provides BB&T With Diverse Balance Sheet and Non-Credit Fee Growth Delivery Channels Wealth, Retirement and Asset Management LOBs (55% of Revenue) Wealth BB&T Securities (BB&T Scott & Stringfellow and BB&T Investments) Retirement and Institutional Services (RIS) Sterling Capital Capital Markets Corporate Banking and Commercial Finance LOBs (45% of Revenue) Corporate Banking BB&T Securities (Capital Markets) Equipment & Governmental Finance Grandbridge Retirement / Inst Services 4% BB&T Securities (S&S/IS) 22% Wealth 23% Revenue Mix ~$1.5 Billion Sterling Capital 6% Corporate Banking 24% BB&T Securities (Capital Markets) 5% Equipment & Gov Finance Grandbridge 8% 8% FTE count = 3,293 (9% of BBT s FTEs) Based on LOB reporting for period ended 09/30/2018 5

6 Growing National Platforms Since 2014 LOB 2Q18 Assets % Out of Footprint Corporate Banking Government Finance Equipment Finance $15.4B 40% $5.2B 19% $2.8B 44% Grandbridge $2.0B 43% Total $25.3B 37% 6

7 High Growth, High Contribution Business $ in billions $2.0 $1.5 $1.0 Revenues (TE) $1.9 $2.0 $2.0 $1.00 $0.75 $0.50 Pre-Tax Income $0.72 $0.74 $0.53 $0.5 $0.25 $ est $ est Nonperforming Loans / Total Loans 0.60% 38.0% Operating Margin 36.6% 37.1% 37.2% 0.40% 0.37% 35.5% 33.0% 0.20% 0.06% 0.14% 30.5% 0.00% /30/ % est 2018 estimated is 09/30/2018 annualized Operating margin is calculated as net income before taxes and provision for credit losses divided by total revenues 7

8 Driving Diversified Loan Growth $ in billions $8.0 $6.0 $4.0 $2.0 Wealth Loan Growth 18.4% of total Direct Retail $4.6 $1.5 $5.4 $2.0 $6.2 $2.1 $48.0 $32.0 $16.0 Corporate Loan Growth 32.8% of total C&I $34.7 $38.2 $40.7 $14.1 $15.0 $15.5 $ /30/2018 $ /30/2018 Equipment & Governmental Finance Loan Growth Grandbridge Loan Growth $12.0 $8.0 $7.4 $7.0 $8.4 $8.0 $8.5 $8.0 $2.0 $1.5 $1.4 $1.6 $1.5 $1.9 $1.8 $4.0 $1.0 $ /30/2018 $ /30/2018 Commitments Outstandings CAGRs are calculated on end of period outstanding balances 8

9 Invested Assets Offering Recurring Fee Revenue Invested Assets Trend ($ in billions) Total Investment Income* ($ in millions) $180.0 $120.0 $143.7 $37.6 $160.3 $43.8 $167.8 $45.0 $700.0 $525.0 $553.6 $186.3 $598.8 $210.8 $652.2 $243.2 $60.0 $41.9 $37.8 $32.2 $21.8 $23.4 $24.3 $13.2 $14.6 $14.9 $350.0 $175.0 $114.4 $104.2 $106.7 $99.2 $108.9 $115.8 $50.3 $56.0 $58.3 $38.9 $40.7 $41.7 $111.1 $118.9 $120.4 $- $0 $0 $ /30/ est Sterling Capital Mgmt Wealth Sterling Capital Retirement / Inst Svc Investment Services BB&T Securities Wealth Investment Services Retirement / Inst Svc BB&T Securities * 81% of Investment Income was Fee Based 2018 estimated is 09/30/2018 annualized 9

10 Powerful Drivers of Growth: Wealth, Retirement and Investment Management Businesses 10

11 BB&T Has Become an Investment Powerhouse With Over $165 Billion in Client Assets The BB&T Wealth, Retirement and Investment Management businesses are integrated to fully serve our clients, helping them to achieve economic success and financial security $806 Million $165 Billion 215,000 2,055 YTD Revenue Client Assets Personal & Business HH s Licensed Sales & Support Investment Expertise, Acumen and Execution Core Attributes Proprietary Open Architecture Disciplined Collaborative Team Based Revenue based on YTD 09/30/2018 segment results 11

12 Full Spectrum of Financial Solutions Individual Institutional SEGMENT MASS AFFLUENT AFFLUENT HIGH NET WORTH INSTITUTIONAL ASSETS $100K- $500K $500K - $2MM $2MM+ $1MM+ DELIVERY Centralized Preferred Advisor Solutions delivered virtually Regional Private Advisor Solutions delivered centrally Regional Wealth Advisor Solutions delivered regionally Regional Bankers Delivered to clients regionally or virtually Virtual High-Touch Financial Planning BANKING STRATEGIC CREDIT RETIREMENT & INVESTING RISK MANAGEMENT TRUST & ESTATE Checking Savings IDA CD s and IRA s Asset Management Account Mortgage Security Secured HELOC Bankcard Auto, Marine & Aircraft Unsecured Personal Investment Management Brokerage Services Institutional Asset Management 401k Plan Administration Retirement Plan Solutions Life Insurance Property and Casualty Health Insurance Disability Insurance Long-Term Care Commercial Personal Trust Corporate Trust Custody Services Estate Settlement & Administration Foundation and Endowment 12

13 The Power of One BB&T Strong internal partnerships have enabled us to serve our clients full range of financial needs and expand our businesses through a fully integrated client-first approach BB&T Enterprise BB&T Wealth Community Bank Retail Community Bank Commercial Financial Insights meeting with client, Commercial Banker & Wealth Advisor BB&T Life Insurance BB&T Home Mortgage BB&T Capital Markets BB&T Securities Commercial Client Business Checking Business Loans Wealth Sales & Relationship Management Process Financial Planning Introduction of key enterprise partners to deliver broad array of solutions 13

14 Our Opportunity: Growing the Wealth Segment 126MM Total HHs in US 5MM Total HHs in BB&T Mass Affluent 33MM Total in US (26%) ($100K to $500K in Assets) Average Relationship Revenue: $5K 1.3MM Core Wealth 7.5MM Total in US (6%) ($500K to $25MM in Assets) Average Relationship Revenue: $46K 300K Ultra High Net Worth 90K Total in US (.07%) ($25MM+ in Assets) Average Relationship Revenue: $600K 3.5K 320K 125K 78K 102K current current BB&T BB&T clients 39% 10% clients 76% 26% Known BB&T HHs Estimated BB&T HHs Known BB&T HHs Estimated BB&T HHs 137 current BB&T clients % 4% Known BB&T HHs Estimated BB&T HHs We will serve the Mass Affluent clients through a virtual advice based relationship model (Preferred, CAT & Digital Advice Platform) This segment represents our core wealth delivery, this segment is well developed and growing We will expand serving UHNW clients through a customized high touch approach HHs contain Total Assets (Investments + Deposits) at BB&T, does not represent full opportunity of unknown assets Source 2016 Forester client survey 14

15 Driving Growth Through 4 Key Stages BB&T Wealth Businesses have been focused on four key strategic areas to drive revenue, asset and household growth with digital transformation at its core Client Experience Digitally enhanced tools and information for seamless interaction between the client, advisor and the bank. Associate Experience Robust toolbox of applications to ensure successful bank partnership and ability to connect with clients wherever and whenever. Digital Transformation Enhanced Solutions Premier products, competitive pricing, and compelling delivery of subject matter expertise. Business Model Expansion Capitalizing on financial consumer trends by focusing on high potential segments. 15

16 Client Experience Digitally enhanced tools and information for seamless interaction between the Client, Advisor and BB&T Online Banking U Application Enhanced Investment Management Platforms Clients manage their financial lives in one integrated mobile enabled platform Trust Platform Key Components : Brokerage Platform Mobile Budgeting & Goals Financial Planning Account Aggregation Zelle Document Vault Performance Reporting Dashboards Digital Advice Single Sign On E-Signature Alerts Continuous Voice of the Client feedback ensures we are delivering a perfect client experience 16

17 Enhanced Solutions Premier products, competitive pricing, and compelling delivery of subject matter expertise Digital Advice Platform Improved Product Capabilities Enhanced financial planning platform, bankcard solutions and wealth mortgage solutions Brokerage, wealth and trust platform connectivity Robotics Processing / Chatbot -Automation Automated & tailored Investments Goals based investing with automatic rebalancing Integration with BB&T U Platform Wealth Lending Enhancements Digitally enabled collateral monitoring system Expansion of business purpose & marine lending East, Simple & Fast Intelligent prospecting leveraging data Automation of repetitive processes Enables self-service for clients 17

18 Associate Experience Robust toolbox of applications to ensure successful bank partnership and ability to connect with clients wherever they are Advisor Mobility Salesforce & Wealth View 360 client, sales & activity management view New Financial Service Cloud platform Digital profile of assets, activities, referrals & opportunities Drives insight, advice and opportunities Automated Client Communication Connected 24/7 to applications Increased client engagement during planning and proposal process Expedited account opening & funding Digital market communication series to clients and prospects delivering market news, advice and Insights Standardized new client onboarding process Increases productivity of advisors and engagement of client 18

19 Business Model Expansion Capitalizing on financial consumer trends by focusing on high potential segments Expand the Mass Affluent Segment Talent Development Preferred Advisors Serves clients between $100K and $500K Delivers full suite of Wealth Solutions Maintains a book of business Centralized Advisor Team (CAT) Licensed Advisors Offer investments through the UMA and digital platforms Maintain and grow a book of business Leverage internships, Leadership development program, and early career program Bring high performing young, energetic talent into the organization Retirement Resource Center (RRC) Educate and advocate clients on retirement Provides support to clients on digital advice platform Digital Advice Platform Self-directed and advisorsupported platform Integrated with BB&T U and BBT.com Add Revenue Producers in Key Growth Markets Expand in Key Markets Texas, Florida, Pennsylvania & Tennessee Opening joint office with S&S in Cincinnati and Nashville office during 3Q18 19

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21 Powerful Drivers of Growth: Corporate & Institutional Platform 21

22 Corporate & Institutional Platform Our mission is to serve large, complex corporate and institutional clients with integrated capital, treasury, investment and risk management solutions to develop long-term, mutually beneficial relationships and help our clients meet their financial goals and objectives Corporate & Institutional Platform $672MM YTD Revenue $25.3B loans outstanding 36% of C&I portfolio $9.1B Deposits 14% of Commercial Deposits 3,000 Clients served by 677 associates 1% of Assigned Commercial Clients Becoming a more meaningful provider of solutions and advice while increasing relationship profitability Revenue based on YTD 09/30/2018 segment results Loans and deposits based on 3Q18 YTD average Client count is an estimate based on LOB reported information 22

23 Delivering Financial Solutions Relationship Management Bilateral & Syndicated Loans Treasury & Deposit Solutions Interest Rate Derivatives Insurance Retirement & Institutional Asset Management Employee Benefits Leadership Institute Equipment Finance Supply Chain Finance Working Capital Finance Real Estate Finance Debt & Equity Underwriting & Distribution Share Buybacks/ATMs M&A Advisory Tax-Exempt Finance 23

24 Industry Diversification and Future Growth Potential Retail Financial Services Healthcare & Education Retail & Wholesale Trade 17% of Portfolio vs. 10% of GDP 11% Total Syn Loan Issuance Real Estate, Insurance, Finance 24% of Portfolio vs. 18% of GDP 17% Total Syn Loan Issuance Healthcare, Education & Social 3%* of Portfolio vs. 8% of GDP 11% Total Syn Loan Issuance * The majority of BB&T s healthcare and education loans are booked in the Community Bank. Industrial Energy Business Services & Tech Construction, Manufacturing & Transportation 35% of Portfolio vs. 24% of GDP 11% Total Syn Loan Issuance Oil & Gas, Coal, Mining & Utilities 15% of Portfolio vs. 4% of GDP 16% Total Syn Loan Issuance Information, Tech & Business Services 3% of Portfolio vs. 16% of GDP 26% Total Syn Loan Issuance Other industries not depicted include government, art, food services, entertainment, agriculture represent <2% of loan commitments 2016 GDP Data Note Energy is down as a % of GDP relative to previous years Total Syndicated Loan Issuance Source: Thompson Reuter s LPC

25 Disciplined Commitments ($ in millions) BB&T and Peer Allocation Averages $100 $90 $80 $70 $60 $50 BB&T $40 $30 $ YTD 2018 Source: Salesforce production data Peers include: BBVA, CMA, FITB, HBAN, KEY, PNC, RF, STI and USB 24

26 Growth Strategies Corporate Banking Coverage Recent hires in San Francisco, Denver, Houston and Chicago will enhance coverage and accelerate client acquisition Significant growth opportunities in low market share regions (see below) Hired Technology Team Leader in 2Q18 to bring expertise and partner with credit administration Uptiering is key to improve relationship return and non-credit revenue which represents 40% of Corporate Banking pre-provision revenue* 9.4% 13.1% 11.7% 19.5% 20.1% 21.4% 10 Client Coverage by Region clients >$500MM revenue * Before referral expense Market Share Source: S&P CapIQ 26

27 Significant Opportunity to Be a Meaningful Provider of Capital and Advisory Solutions Ryder System, Inc. is a long-term client where we have increased our credit commitment over the last 3 years. Uptiered and increased credit commitment Over the course of 6 months, BB&T executed 4 significant transactions across 4 different products. Our industry expertise, willingness to provide capital and holistic relationship approach allowed us the opportunity to uptier the relationship and capture additional business. Awarded $40MM in additional Equipment Finance business Served as sellside Exclusive Advisor in recent Ryder acquisition BB&T has been a long-term financial partner and over time has delivered consistently strong execution of all of its product offerings. Dan Susik, SVP Finance & Treasurer Participated in 3 public bond transactions totaling >$1B including Joint Bookrunner title 27

28 Key Takeaways 1Segment provides revenue, asset and geographic diversification Successful national platform has meaningful opportunity for continued market 2share expansion 3Wealth segment is driving high value retail household growth 4Corporate and Institutional platform provides industryspecific solutions while increasing relationship value through targeted up-tiering strategy 28