BB&T 2012 Annual Report Download - page 94

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As of December 31, 2012 and 2011, the Parent Company had 35 months and 23 months, respectively, of cash on hand to
satisfy projected contractual cash outflows as described above.
Branch Bank
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 CDs, access to the FHLB system, dealer repurchase
agreements and repurchase agreements with commercial clients, access to the overnight and term Federal funds markets, use
of a Cayman branch facility, access to retail brokered CDs and a borrower in custody program with the FRB for the discount
window. As of December 31, 2012, BB&T has approximately $53 billion of secured borrowing capacity, which represents
approximately 290% of one year wholesale funding maturities.
BB&T also monitors the ability to meet customer demand for funds under both normal and stressed market conditions. In
considering its liquidity position, management evaluates BB&T’ s funding mix based on client core funding, client rate-
sensitive funding and non-client rate-sensitive funding. In addition, management also evaluates exposure to rate-sensitive
funding sources that mature in one year or less. Management also measures liquidity needs against 30 days of stressed cash
outflows for Branch Bank. To ensure a strong liquidity position, management maintains a liquid asset buffer of cash on hand
and highly liquid unpledged securities. The Company has established a policy that the liquid asset buffer would be a
minimum of 5% of total assets, but intends to maintain the ratio well in excess of this level. As of December 31, 2012, and
December 31, 2011, BB&T’ s liquid asset buffer was 11.1% and 13.5%, respectively, of total assets.
BB&T’ s and Branch Bank’ s ability to raise funding at competitive prices is affected by the rating agencies’ views of BB&T’ s
and Branch Bank’ s credit quality, liquidity, capital and earnings. Management meets with the rating agencies on a routine
basis to discuss the current outlook for BB&T and Branch Bank. The ratings for BB&T and Branch Bank by the four major
rating agencies are detailed in the table below.
Table 30
Credit Ratings of BB&T Corporation and Branch Bank
December 31, 2012
S&P Moody's Fitch DBRS
BB&T Corporation:
Commercial Paper A-2 P-1 F1 R-1(low)
Issuer A- A2 A+ A(high)
LT/Senior debt A- A2 A+ A(high)
Subordinated debt BBB+ A3 A A
Subordinated shelf short term A-2 N/A F1 N/A
Branch Bank:
Bank financial strength N/A B- a+ N/A
Long term deposits A A1 AA- AA(low)
LT/Senior unsecured bank notes A A1 A+ AA(low)
Other long term senior obligations A A1 A+ AA(low)
Other short term senior obligations A-1 P-1 F1 R-1(middle)
Short term bank notes A-1 P-1 F1 R-1(middle)
Short term deposits A-1 P-1 F1+ R-1(middle)
Subordinated bank notes A- A2 A A(high)
Ratings Outlook:
Credit Trend Stable Stable Stable Stable
BB&T and Branch Bank have Contingency Funding Plans designed to ensure that liquidity sources are sufficient to meet
their ongoing obligations and commitments, particularly in the event of a liquidity contraction. These plans are designed to
examine and quantify the organization’ s liquidity under various “stress” scenarios. Additionally, the plans provide a
framework for management and other critical personnel to follow in the event of a liquidity contraction or in anticipation of
such an event. The plans address authority for activation and decision making, liquidity options and the responsibilities of
key departments in the event of a liquidity contraction. The liquidity options available to management could include seeking
secured funding, asset sales, and under the most extreme scenarios, curtailing new loan originations.
Management believes current sources of liquidity are adequate to meet BB&T’ s current requirements and plans for continued
growth. See Note 5 “Premises and Equipment,” Note 10 “Long-Term Debt” and Note 15 “Commitments and Contingencies”