BB&T 2010 Annual Report Download - page 81

The purpose of the Parent Company is to serve as the capital financing vehicle for the operating subsidiaries.
The assets of the Parent Company consist primarily of cash on deposit with Branch Bank, equity investments in
subsidiaries, advances to subsidiaries, accounts receivable from subsidiaries, and other miscellaneous assets. The
principal obligations of the Parent Company are principal and interest on master notes, long-term debt, and
redeemable capital securities. The main sources of funds for the Parent Company are dividends and management
fees from subsidiaries, repayments of advances to subsidiaries, and proceeds from the issuance of long-term debt
and master notes. The primary uses of funds by the Parent Company are for investments in subsidiaries,
advances to subsidiaries, dividend payments to shareholders, retirement of common stock and interest and
principal payments due on long-term debt and master notes.
The primary source of funds used for Parent Company cash requirements was dividends received from
subsidiaries, which totaled $666 million during 2010. In addition, the Parent Company issued $500 million of
senior notes during 2010. Funds raised through master note agreements with commercial clients are placed in a
note receivable at Branch Bank primarily for its use in meeting short-term funding needs and, to a lesser extent,
to support the short-term temporary cash needs of the Parent Company. At December 31, 2010 and 2009, master
note balances totaled $806 million and $1.0 billion, respectively.
The Parent Company had six issues of senior notes outstanding totaling $3.3 billion and five issues of
subordinated notes outstanding totaling $3.0 billion at December 31, 2010. In addition, as of December 31, 2010,
the Parent Company had $3.3 billion of junior subordinated debentures outstanding to unconsolidated trusts.
Please refer to Note 11 “Long-Term Debt” in the “Notes to Consolidated Financial Statements” for additional
information with respect to these senior notes, subordinated notes and junior subordinated debentures.
Branch Bank has several major sources of funding to meet its liquidity requirements, including access to
capital markets through issuance of senior or subordinated bank notes and institutional certificates of deposit,
access to the FHLB system, dealer repurchase agreements and repurchase agreements with commercial clients,
participation in the Treasury, Tax and Loan program with the Federal Reserve Bank, access to the overnight and
term Federal funds markets, use of a Cayman branch facility, access to retail brokered certificates of deposit and
a borrower in custody program with the Federal Reserve Bank for the discount window. As of December 31,
2010, BB&T has approximately $25 billion of secured borrowing capacity, which represents approximately 201%
of one year wholesale funding maturities.
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