BB&T 2014 Annual Report Download - page 65

Table of Contents
Deposits
Deposits are attracted principally from clients within BB&T’s branch network through the offering of a broad selection of deposit instruments to individuals
and businesses, including noninterest-bearing checking accounts, interest-bearing checking accounts, savings accounts, money market deposit accounts,
CDs and IRAs. Deposit account terms vary with respect to the minimum balance required, the time period the funds must remain on deposit and service
charge schedules. Interest rates paid on specific deposit types are determined based on (i) the interest rates offered by competitors, (ii) the anticipated amount
and timing of funding needs, (iii) the availability and cost of alternative sources of funding, and (iv) anticipated future economic conditions and interest
rates. Deposits are attractive sources of funding because of their stability and relative cost. Deposits are regarded as an important part of the overall client
relationship and provide opportunities to cross-sell other BB&T services.
Total deposits were $129.0 billion at December 31, 2014, an increase of $1.6 billion compared to year-end 2013. Noninterest-bearing deposits totaled $38.8
billion at December 31, 2014, an increase of $3.8 billion from December 31, 2013. The increase in noninterest-bearing deposits was broad based in nature,
with increases in deposits from personal, business and public funds clients. During 2014, interest checking increased $1.4 billion and money market and
savings increased $2.0 billion, while time deposits and IRAs decreased $5.7 billion.
For the year ended December 31, 2014, total deposits averaged $129.1 billion, an increase of $522 million compared to 2013. The cost of interest-bearing
deposits was 0.26% for 2014, compared to 0.32% for 2013.
The following table presents the composition of average deposits for the last five quarters:



    

Noninterest-bearing deposits $ 39,130 $ 38,103 $ 36,634 $ 35,392 $ 35,347
Interest checking 19,308 18,588 18,406 18,615 18,969
Money market and savings 51,176 49,974 48,965 48,767 49,298
Time deposits and IRAs 20,041 23,304 25,010 21,935 21,580
Foreign office deposits - interest-bearing 660 639 584 1,009 712
Total average deposits $ 130,315 $ 130,608 $ 129,599 $ 125,718 $ 125,906
Average deposits for the fourth quarter of 2014 were $130.3 billion, a decrease of $293 million or 0.9% annualized compared to the third quarter. The change
in average deposits reflects improved mix, with noninterest-bearing deposits up $1.0 billion, or 10.7% annualized, while interest-bearing balances were down
$1.3 billion, or 5.7% annualized. Noninterest-bearing deposits represented 30.0% of total average deposits for the fourth quarter of 2014, compared to 29.2%
for the prior quarter and 28.1% for the fourth quarter of 2013.
The growth in average noninterest-bearing deposits during the quarter includes an increase in average commercial accounts totaling $678 million and an
increase in average public funds accounts totaling $325 million. The decline in interest-bearing accounts was driven by a $3.3 billion decline in time
deposits and IRAs, partially offset by a $1.2 billion increase in money market and savings and a $720 million increase in interest checking.
The cost of interest-bearing deposits was 0.25% for the fourth quarter of 2014, a decrease of one basis point compared to the third quarter.
The following table provides information regarding the scheduled maturities of time deposits that are $100,000 and greater at December 31, 2014:
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Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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