Capital Markets Examiner School, Providence, RI

Size and Complexity-Discussion Exercise

• Consider and prepare to discuss a bank from your state and how you would classify them along the size and complexity scale. – Size is simple to classify – consider if it inherently drives complexity in any way – Gauge your institution’s complexity on the below factors used for BB&T • Should other factors be considered for gauging complexity? – Consider if/how you adjust for exams depending upon size and complexity issues. – Discuss factors that guide your classification such as: • Lending portfolio • Investment portfolio • Funding structure • Non-banking activities • Management skillset relative to complexity • Applicable regulations – Discuss with other participants in order to present an array of sizes and complexity levels.

Size and Complexity-Discussion Exercise

BB&T

Size

Large, $220 billion

Regulatory Environment

SIFI, HCR/CCAR/DFAST, LCR, NSFR, Resolution Planning (not one of the approved living wills)

Lending

Full spectrum of standard products in C&I, CRE, auto(prime/nonprime), mortgage, specialized  (government, equipment leasing, insurance premiums etc.) Predominantly Agencies and Treasuries with lower levels of municipals and private label MBS. Standard diverse pool of deposits, checking, MMA, time deposit.  Active note issuance  program and minimal foreign office deposits.  Active MSR and derivatives hedging.  Non‐interest activity dominated by insurance business.   Holding company has small but active broker‐dealer.

Investment Portfolio

Funding

Revenue/Expenses

Footprint

Predominantly Southeast and mid‐Atlantic US.

Complexity Level

Moderately complex.