10-KPeriod: FY2009

TRUIST FINANCIAL CORP Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corporation (TFC), previously BB&T Corporation, reported its 2009 fiscal year results, a period marked by significant economic challenges and strategic acquisitions. The company successfully executed the FDIC-assisted acquisition of Colonial Bank, its largest acquisition to date, which substantially expanded its banking footprint, particularly in Alabama and Florida. Despite a challenging operating environment, including the deep recession and disruption in financial markets, BB&T demonstrated resilience, exceeding capital requirements under the Supervisory Capital Assessment Process (SCAP) and exiting the Troubled Asset Relief Program (TARP). The company strengthened its capital base by raising $2.6 billion through common stock offerings and repaid its TARP preferred stock and warrant. However, net income and earnings per share saw a significant year-over-year decline, primarily due to increased provisions for credit losses driven by deterioration in housing-related credits. The company also managed to grow its non-interest revenue streams, with notable performance in its residential mortgage banking and insurance operations.

Financial Highlights

41 data points
Beta

Net Income

$729.00M

EPS (Diluted)

$1.15

Total Assets

$165.76B

Cash & Equivalents

$2.65B

Free Cash Flow

-$667.00M

Financial Statements
Beta
Interest Expense$2.04B
Net Income$729.00M
EPS (Basic)$1.16
EPS (Diluted)$1.15
Shares Outstanding (Basic)629.58M
Shares Outstanding (Diluted)635.62M

Key Highlights

  • 1Successfully executed the FDIC-assisted acquisition of Colonial Bank, significantly expanding its market presence in Alabama and Florida.
  • 2Exited the Troubled Asset Relief Program (TARP) and exceeded capital requirements in the Supervisory Capital Assessment Process (SCAP).
  • 3Strengthened capital by raising $2.6 billion through two common stock offerings and repaid U.S. Treasury preferred stock and warrant.
  • 4Reported a 42.6% decrease in consolidated net income to $877 million, and a 51.3% decrease in net income available to common shareholders to $729 million, due to increased provisions for credit losses.
  • 5Experienced strong revenue growth of 18.3%, driven by a 23.1% increase in noninterest income, with record performance in mortgage banking and insurance.
  • 6Increased provision for credit losses to $2.8 billion, reflecting deterioration in housing-related credits, particularly in Georgia, Florida, and the Washington D.C. metro area.
  • 7Maintained a strong deposit growth of 27.7% to $106.8 billion, boosted by the Colonial acquisition and improvements in deposit mix.

Frequently Asked Questions

BB&T reported consolidated net income of $877 million for 2009, a decrease of 42.6% compared to $1.5 billion earned in 2008. Net income available to common shareholders also decreased by 51.3% to $729 million in 2009 from $1.5 billion in 2008.

The acquisition of Colonial Bank, completed in August 2009, was BB&T's largest to date and significantly strengthened its banking franchise, improving its market share in Florida and Alabama. It contributed to a 27.7% increase in total client deposits. However, the acquisition, along with ongoing economic challenges, contributed to higher provisions for credit losses, impacting the overall net income.

BB&T maintained a strong capital position throughout 2009. The company exceeded its capital requirements as measured in the Supervisory Capital Assessment Process (SCAP). It also raised $2.6 billion in common stock during the year and repaid its $3.1 billion preferred stock investment from the U.S. Treasury as part of the TARP Capital Purchase Program. The Tier 1 common ratio was 8.5% at December 31, 2009, well above regulatory standards.

BB&T achieved strong revenue growth of 18.3% in 2009. This was driven by a 23.1% increase in noninterest income, which included record performance from its residential mortgage banking operations (up 139.3%) and a 12.8% increase in insurance income. Net interest income also grew by 14.9%.