BB&T 2015 Annual Report Download - page 28

TableofContents
BB&T also experiences competition from nonbank companies inside and outside of its market area and, in some cases, from companies other than those
traditionally considered financial sector participants. In particular, technology companies have begun to focus on the financial sector and offer software and
products primarily over the Internet, with an increasing focus on mobile device delivery. These companies generally are not subject to the comparable
regulatory burdens as financial institutions and may accordingly realize certain cost savings and offer products and services at more favorable rates and with
greater convenience to the customer. For example, a number of companies offer bill pay and funds transfer services that allow customers to avoid using a
bank. Technology companies are generally positioned and structured to quickly adapt to technological advances and directly focus resources on
implementing those advances. This competition could result in the loss of fee income and customer deposits and related income. In addition, changes in
consumer spending and saving habits could adversely affect BB&T’s operations, and the Company may be unable to develop competitive and timely new
products and services in response. As the pace of technology and change advance, continuous innovation is expected to exert long-term pressure on the
financial services industry.
BB&T may not be able to complete future acquisitions.
BB&T must generally satisfy a number of meaningful conditions before it can complete an acquisition of another bank or BHC, including federal and/or state
regulatory approvals. In determining whether to approve a proposed bank or BHC acquisition, bank regulators will consider, among other factors, the effect
of the acquisition on competition, financial condition and future prospects, including current and projected capital ratios and levels, the competence,
experience and integrity of management and record of compliance with laws and regulations, the convenience and needs of the communities to be served,
including the acquiring institution’s record of compliance under the CRA, the effectiveness of the acquiring institution in combating money laundering
activities and protests from various stakeholders of both BB&T and its acquisition partner. Also, under the Dodd-Frank Act, U.S. regulators must now take
systemic risk into account when evaluating whether to approve a potential acquisition transaction involving a large financial institution like BB&T. BB&T
cannot be certain when or if, or on what terms and conditions, any required regulatory approvals will be granted. In specific cases, BB&T may be required to
sell banks or branches, or take other actions as a condition to receiving regulatory approval. An inability to satisfy other conditions necessary to consummate
an acquisition transaction, such as third-party litigation, a judicial order blocking the transaction or lack of shareholder approval, could also prevent BB&T
from completing an announced acquisition.
Catastrophic events could have a material adverse effect on BB&T.
The occurrence of catastrophic events such as hurricanes, tropical storms, tornados, winter storms and other large scale catastrophes could adversely affect
BB&T’s consolidated financial condition or results of operations. BB&T has operations and customers along the Gulf and Atlantic coasts as well as other
parts of the southeastern United States, which could be adversely impacted by hurricanes and other severe weather in those regions. Unpredictable natural
and other disasters could have an adverse effect on BB&T in that such events could materially disrupt its operations or the ability or willingness of its
customers to access the financial services offered by BB&T. Although BB&T carries insurance to mitigate its exposure to certain catastrophic events, these
events could nevertheless reduce BB&T’s earnings and cause volatility in its financial results for any fiscal quarter or year and have a material adverse effect
on BB&T’s financial condition and/or results of operations.
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BB&T leases its headquarters at 200 West Second Street, Winston-Salem, North Carolina 27101 and owns or leases other significant office space in the
vicinity of its headquarters. BB&T owns free-standing operations centers, with its primary operations and information technology centers located in various
locations in the southeastern United States. Offices are either owned or operated under long-term leases. BB&T operates retail branches in a number of states,
primarily concentrated in the southeastern and mid-Atlantic United States. See Table 1 for a list of BB&T’s branches by state. BB&T also operates numerous
insurance agencies and other businesses that occupy facilities. Management believes that the premises are well-located and suitably equipped to serve as
financial services facilities. See Note 5 “Premises and Equipment” in the “Notes to Consolidated Financial Statements” in this report for additional
disclosures related to properties and other fixed assets.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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