10-KPeriod: FY2014

TRUIST FINANCIAL CORP Annual Report, Year Ended Dec 31, 2014

Filed February 25, 2015For Securities:TFCTFC-POTFC-PRTFC-PI

Summary

Truist Financial Corp (TFC), formerly BB&T Corporation, reported a strong year in 2014, with net income available to common shareholders reaching a record $2.0 billion, a 28.2% increase over the prior year. This growth was driven by continued improvement in credit quality, evidenced by a significant decline in non-performing assets and net charge-offs. The company also saw an improvement in its deposit mix, with a notable increase in non-interest-bearing deposits, contributing to a lower average cost of funds. Strategically, BB&T completed several acquisitions and entered into agreements for others, expanding its geographic footprint, particularly in Texas and the Kentucky/Cincinnati market. The company remained well-capitalized, exceeding regulatory requirements, and continued its commitment to returning capital to shareholders through dividends. Despite a challenging low-interest-rate environment and ongoing regulatory reforms, BB&T demonstrated resilient performance and strategic growth initiatives.

Financial Highlights

37 data points
Beta

Net Income

$2.21B

EPS (Diluted)

$2.72

Total Assets

$186.83B

Cash & Equivalents

$2.33B

Free Cash Flow

$3.21B

Financial Statements
Beta
Interest Expense$768.00M
Net Income$2.21B
EPS (Basic)$2.76
EPS (Diluted)$2.72
Shares Outstanding (Basic)718.14M
Shares Outstanding (Diluted)728.37M

Key Highlights

  • 1Record net income available to common shareholders of $2.0 billion in 2014, a 28.2% increase year-over-year.
  • 2Significant improvement in credit quality with a 33.4% decline in non-performing assets (NPAs) and a decrease in net charge-offs to 0.46% of average loans.
  • 3Strengthened deposit mix with a 10.0% increase in average non-interest-bearing deposits, improving the average cost of interest-bearing deposits to 0.26%.
  • 4Robust regulatory capital ratios, with Tier 1 risk-based capital at 12.4% and Total Capital at 14.9% at year-end 2014.
  • 5Completed acquisitions of 21 branches in Texas and agreed to acquire Susquehanna Bancshares and The Bank of Kentucky Financial Corporation to expand market reach.
  • 6Consistent dividend payments to shareholders, with a payout ratio between 30% and 50% of basic EPS, and a history of uninterrupted dividends since 1903.
  • 7Navigated a challenging low-interest-rate environment by focusing on cost control, strategic acquisitions, and fee-based income generation.

Frequently Asked Questions

Truist Financial Corp (BB&T) reported a record net income available to common shareholders of $2.0 billion in 2014, representing a significant increase of 28.2% compared to $1.56 billion in 2013.

The company saw a substantial improvement in loan portfolio quality during 2014. Non-performing assets (NPAs) decreased by $392 million (33.4%), and net charge-offs as a percentage of average loans and leases fell to 0.46% from 0.69% in the prior year. The allowance for loan and lease losses (ALLL) to net charge-offs ratio also improved.

BB&T focused on strategic growth through acquisitions, completing the purchase of 21 bank branches in Texas and reaching agreements to acquire Susquehanna Bancshares, Inc. and The Bank of Kentucky Financial Corporation. These moves were aimed at expanding its market presence and diversifying its revenue streams.

BB&T maintained strong regulatory capital ratios, exceeding well-capitalized thresholds. The company continued its commitment to shareholder returns through consistent dividend payments, aiming for a payout ratio between 30% and 50% of basic EPS, and repurchased shares primarily in connection with equity awards.