BB&T reports 28% increase in quarterly earnings; E BB&T reports 28% increase in quarterly earnings; EPS totals $0.66, up 27%; EPS reduced by $0.04 of merger-related costs
10/18/2012
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) today reported third quarter net income available to common shareholders of $469 million, an increase of 28% compared to $366 million reported in the third quarter of 2011. Earnings per diluted common share totaled $0.66, an increase of 27% compared to $0.52 earned in the third quarter of last year. Third quarter earnings were reduced by merger-related charges associated with the acquisition of BankAtlantic totaling $43 million pretax, or $0.04 per diluted common share.
For the first nine months of 2012, BB&T reported net income available to common shareholders of $1.4 billion, an increase of 57% compared to the first nine months of last year. Earnings per diluted common share totaled $1.99 for the first nine months of 2012, an increase of 57% compared to 2011.
"We are pleased to report very strong results for the third quarter," said Chairman and Chief Executive Officer Kelly S. King. "BB&T's performance benefited from a 5.3% annualized increase in net interest income compared to the last quarter, a 63% increase in mortgage banking income and continued improvement in credit costs. The net interest margin remained strong at 3.94%.
"Loan growth improved during the quarter as average loans held for investment increased 12.6% on an annualized basis compared to the second quarter including the impact of the BankAtlantic acquisition. Organic loan growth was also strong as average loans increased 8.4% compared to last quarter on an annualized basis. This growth was led by our other lending subsidiaries, residential mortgage loans, C&I loans and sales finance loans.
"We are also very pleased with our overall deposit growth and have moved up to 9th nationwide according to recently released FDIC data," King said. "BB&T gained market share in North Carolina; Georgia, where our rank improved to 4th from 5th; West Virginia; Kentucky; Tennessee and Texas. We maintained our rank in the other states in our footprint. Including BankAtlantic, average deposits increased 11% and noninterest-bearing deposits increased 34% on an annualized basis.
"BB&T also produced broad-based improvement in credit," King said. "Nonperforming assets declined 9.4% compared to last quarter. This improvement includes a 37% reduction in foreclosed real estate to the lowest level in five years. Net charge-offs, excluding covered loans, were 1.08%, the lowest level in four years."
Third Quarter 2012 Performance Highlights
Average total loans and leases held for investment increased 12.6% on an annualized basis compared to the second quarter of 2012 (8.4% excluding BankAtlantic)
Average C&I loans increased 13.4%
Average other CRE loans increased 9.2%
Average direct retail loans increased 11.9%
Average residential mortgage loans increased 24.6%
Average sales finance loans increased 5.1%
Average revolving credit loans increased 10.2%
Average loans in the other lending subsidiaries group increased 26.7%
Average residential ADC loans declined 47.9%
Revenues increased due to strong mortgage results despite insurance seasonality
Net revenues were $2.5 billion for the third quarter, adjusted for securities gains and losses and the offsets for provisions related to covered assets, up an annualized 4.4%
Net interest income totaled $1.5 billion for the third quarter, an annualized increase of 5.7% compared to the second quarter of 2012
The increase was driven by a 4.0% annualized increase in average earning assets
Average deposits increased $3.3 billion, or 10.6% on an annualized linked quarter basis (3.3% excluding BankAtlantic)
Average noninterest-bearing deposits increased $2.3 billion, or 33.8%
Average interest-bearing deposit costs fell to 0.42% this quarter compared to 0.44% in the second quarter of 2012
Asset quality measures improved significantly
Nonperforming assets decreased $179 million, or 9.4% excluding covered assets
As a percentage of total assets, nonperforming assets, excluding covered assets, decreased from 1.09% last quarter to 0.97%
Foreclosed real estate, excluding covered assets, declined $82 million, or 37.1% to the lowest level in five years
Net charge-offs, excluding covered assets, totaled 1.08% of average loans for the quarter.
Foreclosed property expense totaled $54 million, down 25.0% from the second quarter of 2012
Capital levels remained strong following the acquisition of BankAtlantic
Tangible common equity was 6.8%
Tier 1 common equity was 9.5%
Tier 1 risk-based capital was 10.9%
Leverage capital was 7.9%
Total capital was 14.0%
https://bbt.com/bbtdotcom/about/investor-relations/news-release-details.page?prid=718
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