BB&T 2014 Annual Report Download - page 66

Table of Contents
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Three months or less $ 4,621
Over three through six months 1,106
Over six through twelve months 1,054
Over twelve months 3,001
Total $ 9,782
Short-term Borrowings
BB&T also uses various types of short-term borrowings to meet funding needs. While 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 1.8% of total funding on average in 2014 as compared to 2.5% in 2013. See Note 8 “Short-Term Borrowings” in the “Notes to Consolidated
Financial Statements” herein for further disclosure. The types of short-term borrowings that have been, or may be, used by the Company include Federal
funds purchased, securities sold under repurchase agreements, master notes, commercial paper and short-term bank notes. Short-term borrowings at the end of
2014 were $3.7 billion, a decrease of $421 million, or 10.2%, compared to year-end 2013. Average short-term borrowings totaled $3.4 billion during 2014
compared to $4.5 billion last year, a decrease of 23.3%. The decrease in the average balance of short-term borrowings during 2014 primarily reflects an
increase in deposits and long-term debt as funding sources.
The following table summarizes certain information for the past three years with respect to short-term borrowings:
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
  
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Securities Sold Under Agreements to Repurchase:
Maximum outstanding at any month-end during the year $ 1,073 $ 1,537 $ 813
Balance outstanding at end of year 317 463 514
Average outstanding during the year 526 662 651
Average interest rate during the year 0.20 % 0.25 % 0.30 %
Average interest rate at end of year 0.18 0.28 0.33
Federal Funds Purchased and Short-Term Borrowed Funds:
Maximum outstanding at any month-end during the year $ 4,405 $ 4,722 $ 3,627
Balance outstanding at end of year 3,400 3,675 2,350
Average outstanding during the year 2,895 3,797 2,757
Average interest rate during the year 0.12 % 0.13 % 0.20 %
Average interest rate at end of year 0.08 0.09 0.19
Long-term Debt
Long-term debt provides funding and, to a lesser extent, regulatory capital. During 2014, long-term debt represented 12.0% of average total funding
compared to 10.6% during 2013. At December 31, 2014, long-term debt totaled $23.3 billion, an increase of $1.8 billion compared to year-end 2013. The
increase in long-term debt reflects the issuance of $2.6 billion of BB&T Corporation senior notes, $2.0 billion of Branch Bank senior notes and $850 million
of Branch Bank subordinated notes, partially offset by the early extinguishment of $1.1 billion of FHLB debt and other payments and maturities. The average
cost of long-term debt was 2.36% in 2014, compared to 3.03% in 2013. See Note 10 “Long-Term Debt” in the “Notes to Consolidated Financial Statements”
herein for further disclosure.
Exclusive of hedge basis adjustments, FHLB advances represented 28.5% of total outstanding long-term debt at December 31, 2014, compared to 38.5% at
December 31, 2013. FHLB advances are long-term funding sources that provide flexibility to structure the debt in a manner that aids in the management of
interest rate risk and liquidity.
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Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
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