The BB&T Company’s Financial Statements

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BB&T Company’s financial analysis for 2007 and 2015 report indicates that the company got a lot of funding from the loans and leases. In 2007 it got 59.19 % of the total funding while in 2015 it got 36.39% of its funds from the same (Clinton 450). The retained earnings stood at 4.5% in 2007 and 3.6% in 2015. Most of its financing comes from loans. The table below illustrates the calculations;

	2015		2007
The Funding Sources Composition	Amount	Allocation	Amount	Allocation
	In Thousands		In Thousands
Commercial Real Estate Loans	18,368,000	4.92%		0.00%
Loans and Leases	135,951,000	36.39%	90,907,000	59.19%
Segregated cash due from banks	0	0.00%	208,000	0.14%
Trading securities at fair value	0	0.00%	1,009,000	0.66%
Available-for-sale securities at fair value	25,297,000	6.77%	22,419,000	14.60%
Commercial & industrial loans	48,430,000	12.96%	0	0.00%
Commercial – other lending subsidiaries	6,795,000	1.82%	0	0.00%
Retail – revolving credit	2,510,000	0.67%	0	0.00%
Retail – residential mortgage loans	30,533,000	8.17%	0	0.00%
Retail – sales finance	10,327,000	2.76%	0	0.00%
Notes	15,996,000	4.28%	7,201,000	4.69%
Short-term borrowings	3,593,000	0.96%	10,634,000	6.92%
Floating rate secured borrowings	0	0.00%	4,000,000	2.60%
Federal Home Loan Bank Advances	5,582,000	1.49%	7,210,000	4.69%
Commercial & industrial loans	48,430,000	12.96%	0	0.00%
Additional paid-in capital	8,365,000	2.24%	3,087,000	2.01%
Retained earnings	13,464,000	3.60%	6,919,000	4.50%
Total Funds	373,641,000	100.00%	153,594,000	100.00%
		143.27%

Table 1. Funding Sources.

The company’s asset composition revealed that in 2007, it had 75.59% Goodwill. Held-to-maturity securities were 62.67% while Goodwill was 27.60%. Other investing activities performed poorly (Hastings 60). The asset composition grew by 350.75%. The following table gives the information in detail;

	2015		2007
Assets Composition	Amount	Allocation	Amount	Allocation
	In Thousands		In Thousands
Interest-bearing deposits with banks	1,435,000	4.63%	388,000	5.65%
Held-to-maturity securities	19,410,000	62.67%	472,000	6.87%
Securities available for sale	721,000	2.33%	328,000	4.77%
Goodwill	8,548,000	27.60%	5,194,000	75.59%
Core deposit & other intangible assets	686,000	2.21%	489,000	7.12%
Other investing activities, net	171,000	0.55%	0	0.00%
Total Funds	30,971,000	100.00%	6,871,000	100.00%
		350.75%

Table 2. Asset Composition.

In 2007 the unearned income was 91.43% of the total revenue while in 2015 Interest checking was 80.77% (Hughes 280). There was a drop in revenue of 68.36% by 2015.

	2015		2007
Revenue Composition	Amount	Allocation	Amount	Allocation
	In Thousands		In Thousands
Interest charges	25,410,000	80.77%	1,201,000	1.21%
Non-controlling interests	34,000	0.11%	0	0.00%
Interest & fees on loans & leases	5,347,000	17.00%	6,713,000	6.75%
Loans & leases, net of unearned income	0	0.00%	90,907,000	91.43%
Interest on other earning assets	39,000	0.12%	0	0.00%
Service charges	631,000	2.01%	611,000	0.61%
Total Funds	31,461,000	100.00%	99,432,000	100.00%
		-68.36%

Table 3. Revenue Composition.

In 2007, the company had 66.8% income from sales and disposals (Lee 216). It increased this to 69.83% in 2015. The table below illustrates the profit composition.

	2015		2007
Profit Composition	Amount	Allocation	Amount	Allocation
	In Thousands		In Thousands
Net interest income	5,592,000	25.40%	3,880,000	31.58%
Total securities gains (losses), net	-3,000	-0.01%	-3,000	-0.02%
Loss (gain) on disposals of premises & equipment, net	0	0.00%	-2,000	-0.02%
Net cash from business combinations	1,055,000	4.79%	141,000	1.15%
Proceeds from sales and disposals	15,375,000	69.83%	8,208,000	66.80%
Net proceeds from common stock issued	0	0.00%	64,000	0.52%
Total Funds	22,019,000	100.00%	12,288,000	100.00%
		79.19%

Table 4. Profit Composition.

Issuance of loans dominated the assets portfolio and earned the company interest incomes (Paul, Clarke, and Grill 150). The company also financed most of its activities using loans (Robinson 40). The financing activities improved the company’s income. Losses were realized from the investing activities.

References

Clinton, Bill. Back to Work. New York, NY: Alfred A. Knopf, 2011. Print.

Hastings, N. A. J. Physical Asset Management. London, UK: Springer, 2010. Print.

Hughes, Peter. Tax Planning For Businesses and their Owners. London, UK: Thorogood Pub., 2009. Print.

Lee, Jay. Engineering Asset Management 2011. London, UK: Springer, 2014. Print.

Paul, Christopher, Colin P Clarke, and Beth Grill. Victory has a Thousand Fathers. Santa Monica, CA: RAND, 2010. Print.

Robinson, Thomas R. International Financial Statement Analysis. Hoboken, N.J.: John Wiley & Sons, 2009. Print.

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The BB&T Company’s Financial Statements

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