BB&T 2010 Annual Report Download - page 64

Deposits and Other Borrowings
Client deposits generated through the BB&T banking network are the largest source of funds used to
support asset growth. Total deposits at December 31, 2010, were $107.2 billion, a decrease of $7.8 billion, or 6.7%,
compared to year-end 2009. The decrease in deposits during 2010 was driven by an $11.0 billion, or 34.0%,
decrease in client certificates of deposit. Other client deposits, which include money market deposit accounts,
savings accounts, individual retirement accounts and other time deposits increased by $1.9 billion, or 3.7%,
compared to year-end 2009 and noninterest-bearing deposits increased by $1.7 billion, or 8.9%, from the prior
year. The overall decrease is primarily due to redemptions of wholesale deposits and higher rate certificates of
deposit in connection with BB&T’s balance sheet deleveraging, as well as the sale of approximately $850 million of
Nevada deposits acquired in the Colonial acquisition. For the year ended December 31, 2010, total deposits
averaged $106.8 billion, an increase of $4.4 billion, or 4.3%, compared to 2009. The increase in average deposits
was primarily the result of a $6.1 billion, or 13.6%, increase in average other client deposits, and a $3.4 billion, or
20.5%, increase in average noninterest-bearing deposits. These increases were partially offset by a decrease in
other interest-bearing deposits of $4.1 billion compared to the prior year. The increase in average deposits
included the impact of Colonial, which was acquired in August 2009.
The following table presents BB&T’s average deposits for the years ended December 31, 2010 and 2009,
segregated by major category:
Table 15
Composition of Average Deposits
Years Ended December 31,
2010 2009
Balance %of total Balance %of total
(Dollars in millions)
Noninterest-bearing deposits $ 19,742 18.5% $ 16,387 16.0%
Interest checking 3,703 3.5 2,831 2.8
Other client deposits 51,239 47.9 45,107 44.1
Client certificates of deposit 26,872 25.2 28,702 28.0
Total client deposits 101,556 95.1 93,027 90.9
Other interest-bearing deposits 5,217 4.9 9,354 9.1
Total average deposits $106,773 100.0% $102,381 100.0%
The overall mix of deposits continued to improve in 2010. Average client deposits grew 9.2% due to strong
growth in noninterest-bearing and other client deposits, which was aided by the Colonial acquisition, while
reliance on other interest-bearing deposits declined. BB&T has been successful in attracting new business and
individual accounts by emphasizing the strength of BB&T’s franchise.
The average rate paid on interest-bearing deposits dropped to 1.05% during 2010, from 1.48% in 2009. The
average cost for interest-bearing deposits declined during 2010 as management was able to reduce its reliance on
relatively higher rate CDs. The average rates paid on the various categories of interest-bearing deposits also
decreased as follows: CDs decreased to 1.97% in the current year from 2.60% in 2009; other client deposits
decreased to .64% in the current year from .88% in 2009; interest checking decreased to .30% in 2010 from .39% in
2009; and other interest-bearing deposits decreased to .92% in 2010 from 1.23% in 2009.
BB&T also uses various types of short-term borrowings in meeting funding needs. While client deposits
remain the primary source for funding loan originations, management uses short-term borrowings as a
supplementary funding source for loan growth and other balance sheet management purposes. Short-term
borrowings were 5.7% of total funding on average in 2010 as compared to 8.0% in 2009. See Note 9 “Federal
Funds Purchased, Securities Sold Under Agreements to Repurchase and Short-Term Borrowed Funds” in the
“Notes to Consolidated Financial Statements” herein for further disclosure. The types of short-term borrowings
used by the Corporation include Federal funds purchased, which was .4% of total short-term borrowings, and
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