BB&T 2014 Annual Report Download - page 131

Table of Contents
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Branch Bank is required by the FRB to maintain reserve balances in the form of vault cash or deposits with the FRB based on specified percentages of certain
deposit types, subject to various adjustments. At December 31, 2014, the net reserve requirement amounted to $272 million.
Branch Bank is subject to laws and regulations that limit the amount of dividends it can pay. In addition, both BB&T and Branch Bank are subject to various
regulatory restrictions relating to the payment of dividends, including requirements to maintain capital at or above regulatory minimums, and to remain
“well-capitalized” under the prompt corrective action regulations. BB&T does not expect that any of these laws, regulations or policies will materially affect
the ability of Branch Bank to pay dividends.
BB&T is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can
initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the
financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital
guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated pursuant to regulatory directives. BB&T’s
capital amounts and classification also are subject to qualitative judgments by the regulators about components, risk weightings and other factors. BB&T is
in full compliance with these requirements. Banking regulations also identify five capital categories for IDIs: well-capitalized, adequately capitalized,
undercapitalized, significantly undercapitalized and critically undercapitalized. At December 31, 2014 and 2013, BB&T and Branch Bank were classified as
“well-capitalized,” and management believes that no events or changes have occurred subsequent to December 31, 2014 that would change this designation.
Quantitative measures established by regulation to ensure capital adequacy require BB&T to maintain minimum amounts and ratios of total and Tier 1
capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average tangible assets (leverage ratio).
Risk-based capital ratios, which include Tier 1 Capital, Total Capital and Tier 1 Common Equity, are calculated based on regulatory guidance related to the
measurement of capital and risk-weighted assets.
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   
        
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Tier 1 Capital:
BB&T 12.4 % $ 17,840 $ 5,747 $ 8,620 11.8 % $ 16,074 $ 5,460 $ 8,189
Branch Bank 11.7 16,329 5,591 8,387 11.9 15,785 5,315 7,973
Total Capital:
BB&T 14.9 21,381 11,494 14,367 14.3 19,514 10,919 13,649
Branch Bank 13.4 18,761 11,183 13,979 13.4 17,872 10,631 13,288
Leverage Capital:
BB&T 9.9 17,840 7,191 8,989 9.3 16,074 6,897 8,621
Branch Bank 9.3 16,329 5,265 8,775 9.4 15,785 5,058 8,429
As an approved seller/servicer, Branch Bank is required to maintain minimum levels of capital, as specified by various agencies, including the United States
Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At December 31, 2014 and 2013, Branch Bank’s capital was above all
required levels.
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Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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