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UNITED STATES Form 8-K Pursuant to Section 13 or 15(d) April 13, 2004 Date of Report (Date of earliest event reported) BB&T Corporation Commission file number : 1-10853 (336) 733-2000 This Form 8-K has 14 pages. ITEM 12. Results of Operations and Financial Condition The purpose of this Current Report on Form 8-K is to file BB&Ts
first quarter 2004 earnings release. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued April 13, 2004 April 13, 2004 FOR IMMEDIATE RELEASE BB&T
announces 1st quarter net income of $328.5 million; WINSTON-SALEM,
N.C. BB&T Corporation (NYSE: BBT) reported today net income for the
first quarter of 2004 totaling $328.5 million, or $.60 per diluted share. Net
income increased slightly compared with $327.7 million earned in the first
quarter of 2003, while diluted earnings per share reflected a decrease of 13.0%
compared to earnings of $.69 during the same period last year. Excluding
the effects of expenses associated with mergers and acquisitions, operating
earnings totaled $334.6 million for the first quarter of 2004, an increase of
1.2% compared to 2003. Diluted operating earnings per share were $.61, a
decrease of 12.9% compared with $.70 earned during the first quarter of 2003.
Merger-related charges for the first quarter of 2004 totaled $6.1 million
after-tax. BB&Ts
first quarter net income produced annualized returns on average assets and
average shareholders equity of 1.43% and 12.93%, respectively. On an
operating basis, the annualized returns on average assets and average
shareholders equity were 1.46% and 13.17%, respectively. Cash
basis operating results exclude the unamortized balances of intangibles from
assets and shareholders equity and exclude the effects of amortization of
intangibles, as well as the net amortization of purchase accounting
mark-to-market adjustments and merger-related charges from earnings. Cash basis
operating earnings totaled $355.0 million for the first quarter of 2004, an
increase of 6.0% compared to the first quarter of 2003. Current quarter cash
basis diluted earnings per share decreased 9.9% to $.64, compared to $.71 earned
during the same period in 2003. Cash basis operating earnings for the first
quarter of 2004 produced an annualized return on average tangible assets of
1.62% and an annualized return on average tangible shareholders equity of
23.93%. Our
first quarter performance was disappointing in comparison to past trends,
said Chairman and Chief Executive Officer John A. Allison. However, we
continue to believe that performance will improve as the year progresses and, in
fact, we are beginning to see progress in several important areas. Our first
quarter earnings were hampered by a substantial decrease in mortgage banking
income. Higher mortgage rates for most of the first quarter caused a substantial
decrease in mortgage originations and resulting income, the retention of fixed
rate mortgage loans greatly reduced gains from sales of mortgages, and a drop in
rates in mid-March produced net writedowns in the value of our mortgage
servicing rights, despite an effective performance from our risk management
hedging program related to mortgage servicing rights. These net writedowns also
negatively affected mortgage banking income. There are a number of positive
trends loan growth has significantly increased, our noninterest income
generating businesses, excluding mortgage, are growing and our asset quality
continues to improve and remains very strong. I remain confident about the
remainder of 2004 as we work to fully integrate recent acquisitions and to
improve our efficiency. On
March 19, we announced that we were projecting operating earnings per diluted
share for 2004 in the range of $2.75 to $2.90, said Allison. We
continue to believe that earnings will improve substantially in the third and
fourth quarters of this year and we continue to feel comfortable with this
earnings projection. Calculated on a basis consistent with generally
accepted accounting principles, the projection for 2004 earnings per diluted
share is $2.71 to $2.86. Average
Loans Grow 10.0% Average
loans and leases totaled $63.2 billion for the first quarter, reflecting an
increase of $1.5 billion, or 10.0% on an annualized basis, compared to the
fourth quarter of 2003. This reflects the strongest overall quarterly growth
rate in three years. During the first quarter of 2004, commercial loan demand in
BB&Ts markets noticeably improved, with loans growing at an annualized
rate of 7.0% compared to the fourth quarter of 2003. Consumer loan growth also
accelerated, with average direct retail loans and revolving credit each growing
at annualized rates of 11.4% compared to the fourth quarter last year. The
strongest performance was in mortgage loans, which grew at an annualized rate of
25.7% compared to the fourth quarter of 2003. This growth was driven, in part,
by the retention of fixed rate mortgages in recent quarters. In addition, lower
mortgage rates in March have produced a significant increase in mortgage
applications and originations; however, since much of the growth in mortgage
loans occurred late in the quarter, most of the related benefit to earnings will
be realized beginning in the second quarter of this year. Asset
Quality Continues to Improve BB&Ts
total nonperforming assets and net charge-offs both improved during the current
quarter and continued their steady improvement since the first quarter of 2003.
Nonperforming assets as a percentage of total assets decreased to .47% at March
31 compared to .49% and .60% at Dec. 31, 2003 and March 31, 2003, respectively.
Annualized net charge-offs were .36% of average loans and leases for the first
quarter of 2004, down from .42% in the fourth quarter of 2003 and
..47% in the first quarter of 2003. Excluding losses at BB&Ts
specialized lending subsidiaries, annualized net charge-offs for the current
quarter were .25% of average loans and leases compared to .31% in the fourth
quarter of 2003 and .35% in the first quarter of 2003. BB&Ts
Noninterest Income Producing Businesses Continue to Expand BB&Ts
noninterest income generating businesses continued to produce healthy growth
with the exception of mortgage banking. Total noninterest income was $478.2
million for the first quarter of 2004, an increase of 7.5% compared with the
same period in 2003. Excluding the decrease in mortgage banking and fluctuations
in securities gains and losses, noninterest income grew 34.5%. Excluding
mortgage banking, securities gains and losses and the effects of acquisitions,
noninterest income increased 15.6%. Higher revenues from BB&Ts
insurance operations, as well as growth in income from investment banking and
brokerage fees and commissions, service charges on deposit accounts and other
nondeposit fees and commissions, were the primary drivers of this growth. BB&Ts
insurance operations were the largest provider of noninterest income during the
quarter, as insurance commissions totaled $123.7 million, an increase of 39.5%
compared with $88.7 million earned during the first quarter of 2003. The
expansion of BB&Ts insurance network through acquisitions, the largest
of which was the merger with McGriff, Seibels & Williams Inc., combined with
solid internal growth, drove the increase. Excluding the effect of acquisitions,
insurance commissions increased 10.1%. BB&Ts
investment banking and brokerage fees and commissions totaled $76.6 million for
the first quarter of 2004, an increase of 46.4% compared to the $52.3 million
earned during the same period last year. The increase was driven by growth in
retail brokerage commissions and revenues from investment banking services. Service
charges for deposit-related services totaled $122.8 million during the first
quarter of 2004, an increase of 26.9% compared to the first quarter of 2003.
This increase resulted from service charge income from acquired institutions and
growth in commercial account analysis fees. Excluding the effect of
acquisitions, service charges for deposits increased 6.6%. Other
nondeposit fees and commissions increased 27.3% to $71.6 million compared with
the same quarter last year. This growth resulted primarily from increased income
from credit and debit card-related services, ATM services and other
miscellaneous bank services. Excluding the effect of acquisitions, other
nondeposit fees and commissions increased 9.7%. BB&Ts
Commitment to its Clients and Employees Recognized Nationally
During the first quarter, BB&T's commitment to client
service was recognized by national research organizations. J.D. Power and Associates ranked
BB&T 2nd overall in home mortgage servicing customer satisfaction in the
country. In the same survey, BB&T ranked No. 1 among banks for the second consecutive year.
BB&T's commitment to employee advancement through innovative training was also nationally recognized during the quarter. BB&T placed in
the top 6% of organizations evaluated in Training Magazines 2004
Training Top 100. 2004 marks the second consecutive year BB&T
has been recognized in this evaluation.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Current Report
of the Securities Exchange Act of 1934
(Exact name of registrant as specified in its charter)
North Carolina
56-0939887
(State of incorporation)
(I.R.S. Employer Identification No.)
200 West Second Street
Winston-Salem, North Carolina
27101
(Address of principal executive offices)
(Zip Code)
(Registrant's telephone number, including area code)
Contacts:
ANALYSTS
MEDIA
Tom A. Nicholson
Scott E. Reed
Bob Denham
Senior Vice President
Sr. Exec. Vice President
Senior Vice President
Investor Relations
Chief Financial Officer
Public Relations
(336) 733-3058
(336) 733-3088
(336) 733-1002
operating earnings
increase 1.2% to $334.6 million
BB&T Insurance Services Expands to New Markets and Business Lines
On Feb. 1, BB&T Insurance Services successfully completed its acquisition of McGriff, Seibels & Williams Inc. of Birmingham, Ala., creating the sixth largest insurance broker in the nation. The merger vastly enhanced BB&T's national insurance presence and positioned BB&T Insurance Services as one of the premier providers of insurance and risk management services in the country.
On April 1, BB&T Insurance Services acquired Iler Wall & Shonter (IWS) of St. Petersburg, Fla. IWS is a full-service agency specializing in commercial property and casualty insurance, personal property and liability, employee benefits, life insurance and financial planning.
At March 31, BB&T had $94.3 billion in assets and operated more than 1,350 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Florida, Alabama, Indiana and Washington, D.C. BB&Ts common stock is traded on the New York Stock Exchange under the trading symbol BBT. The closing price of BB&Ts common stock on April 12 was $34.90 per share.
For additional information about BB&Ts financial performance, company news, products and services, please visit our website at www.BBandT.com.
Earnings Webcast
To hear a live webcast of BB&Ts first quarter 2004 earnings conference call at 10:30 a.m. (EDT) today, please visit our website at www.BBandT.com. Replays of the conference call will be available through our website until 5 p.m. (EDT) April 26.
#
This press release contains financial information determined by methods other than in accordance with Generally Accepted Accounting Principles (GAAP). BB&Ts management uses these non-GAAP measures in their analysis of the Companys performance. These measures typically adjust GAAP performance measures to exclude the effects of charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities, as well as the amortization of intangibles and purchase accounting mark-to-market adjustments in the case of cash basis performance measures. These non-GAAP measures may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on BB&Ts performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of BB&Ts core businesses. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections. Please refer to BB&Ts filings with the Securities and Exchange Commission for a summary of important factors that could affect BB&Ts forward-looking statements. BB&T undertakes no obligation to revise these statements following the date of this press release.
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 5 | Investor Relations | FAX (336) 733-3132 |
For the Three Months Ended | Increase (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands, except per share data) | 3/31/04 | 3/31/03 | $ | % | ||||||||||
OPERATING EARNINGS STATEMENTS (1) | ||||||||||||||
Interest income - taxable equivalent | $ | 1,101,178 | $ | 1,084,878 | $ | 16,300 | 1.5 | % | ||||||
Interest expense | 273,626 | 362,702 | (89,076 | ) | (24.6 | ) | ||||||||
Net interest income - taxable equivalent | 827,552 | 722,176 | 105,376 | 14.6 | ||||||||||
Less: Taxable equivalent adjustment | 20,729 | 29,998 | (9,269 | ) | (30.9 | ) | ||||||||
Net interest income | 806,823 | 692,178 | 114,645 | 16.6 | ||||||||||
Provision for loan and lease losses | 62,500 | 63,000 | (500 | ) | (.8 | ) | ||||||||
Net interest income after provision for loan and lease losses | 744,323 | 629,178 | 115,145 | 18.3 | ||||||||||
Noninterest income (2) | 478,178 | 444,921 | 33,257 | 7.5 | ||||||||||
Noninterest expense (3) | 728,336 | 599,359 | 128,977 | 21.5 | ||||||||||
Operating earnings before income taxes | 494,165 | 474,740 | 19,425 | 4.1 | ||||||||||
Provision for income taxes | 159,521 | 143,941 | 15,580 | 10.8 | ||||||||||
Operating earnings (1) | $ | 334,644 | $ | 330,799 | $ | 3,845 | 1.2 | % | ||||||
PER SHARE DATA BASED ON OPERATING EARNINGS (1) | ||||||||||||||
Basic earnings | $ | .61 | $ | .70 | $ | (.09 | ) | (12.9 | ) % | |||||
Diluted earnings | .61 | .70 | (.09 | ) | (12.9 | ) | ||||||||
Weighted average shares - Basic | 546,576,484 | 470,529,359 | ||||||||||||
Diluted | 550,547,045 | 474,348,203 | ||||||||||||
Dividends paid per common share | $ | .32 | $ | .29 | $ | .03 | 10.3 | % | ||||||
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | ||||||||||||||
Return on average assets | 1.46 | % | 1.69 | % | ||||||||||
Return on average equity | 13.17 | 17.94 | ||||||||||||
Net yield on earning assets (taxable equivalent)(4) | 4.09 | 4.13 | ||||||||||||
Efficiency ratio (taxable equivalent) (4) | 55.1 | 51.6 | ||||||||||||
CASH BASIS PERFORMANCE | ||||||||||||||
BASED ON OPERATING EARNINGS (1)(5) | ||||||||||||||
Cash basis operating earnings | $ | 354,965 | $ | 334,919 | $ | 20,046 | 6.0 | % | ||||||
Diluted earnings per share | .64 | .71 | (.07 | ) | (9.9 | ) | ||||||||
Return on average tangible assets | 1.62 | % | 1.76 | % | ||||||||||
Return on average tangible equity | 23.93 | 24.26 | ||||||||||||
Efficiency ratio (taxable equivalent) (4) | 52.9 | 51.0 | ||||||||||||
For the Three Months Ended | Increase (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands, except per share data) | 3/31/04 | 3/31/03 | $ | % | ||||||||||
INCOME STATEMENTS | ||||||||||||||
Interest income | $ | 1,080,449 | $ | 1,054,880 | $ | 25,569 | 2.4 | % | ||||||
Interest expense | 273,626 | 362,702 | (89,076 | ) | (24.6 | ) | ||||||||
Net interest income | 806,823 | 692,178 | 114,645 | 16.6 | ||||||||||
Provision for loan and lease losses | 62,500 | 63,000 | (500 | ) | (.8 | ) | ||||||||
Net interest income after provision for loan and lease losses | 744,323 | 629,178 | 115,145 | 18.3 | ||||||||||
Noninterest income | 478,178 | 444,921 | 33,257 | 7.5 | ||||||||||
Noninterest expense | 737,986 | 604,088 | 133,898 | 22.2 | ||||||||||
Income before income taxes | 484,515 | 470,011 | 14,504 | 3.1 | ||||||||||
Provision for income taxes | 156,015 | 142,263 | 13,752 | 9.7 | ||||||||||
Net income | $ | 328,500 | $ | 327,748 | $ | 752 | .2 % | |||||||
PER SHARE DATA | ||||||||||||||
Basic earnings | $ | .60 | $ | .70 | $ | (.10 | ) | (14.3 | ) % | |||||
Diluted earnings | .60 | .69 | (.09 | ) | (13.0 | ) | ||||||||
Weighted average shares - Basic | 546,576,484 | 470,529,359 | ||||||||||||
Diluted | 550,547,045 | 474,348,203 | ||||||||||||
PERFORMANCE RATIOS BASED ON NET INCOME | ||||||||||||||
Return on average assets | 1.43 | % | 1.68 | % | ||||||||||
Return on average equity | 12.93 | 17.78 | ||||||||||||
Efficiency ratio (taxable equivalent) (4) | 55.8 | 52.0 | ||||||||||||
NOTES: | Applicable ratios are annualized. | |
(1) | Operating earnings statements exclude the effect of merger-related and nonrecurring charges. These charges totaled $6.1 million and $3.1 million, net of tax, in the first quarters of 2004 and 2003, respectively. See Reconciliation Tables included herein. | |
(2) | Excluding purchase accounting transactions, noninterest income would have decreased approximately 5.2% for the quarter, compared to the same period in 2003. | |
(3) | Excluding purchase accounting transactions, noninterest expense would have increased approximately .8% for the quarter, compared to the same period in 2003. | |
(4) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Cash basis and operating ratios also exclude merger-related charges and nonrecurring charges. See Reconciliation Tables included herein. | |
(5) | Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 6 | Investor Relations | FAX (336) 733-3132 |
As of / For the Three Months Ended | Increase (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands) | 3/31/04 | 3/31/03 | $ | % | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
End of period balances | ||||||||||||||
Cash and due from banks | $ | 1,867,913 | $ | 1,931,702 | $ | (63,789 | ) | (3.3 | ) % | |||||
Interest-bearing deposits with banks | 250,179 | 172,494 | 77,685 | 45.0 | ||||||||||
Federal funds sold and other earning assets | 260,113 | 262,572 | (2,459 | ) | (0.9 | ) | ||||||||
Securities available for sale | 17,584,687 | 16,721,662 | 863,025 | 5.2 | ||||||||||
Securities held to maturity | 125 | 57,489 | (57,364 | ) | (99.8 | ) | ||||||||
Trading securities | 364,481 | 172,789 | 191,692 | 110.9 | ||||||||||
Total securities | 17,949,293 | 16,951,940 | 997,353 | 5.9 | ||||||||||
Commercial loans and leases | 31,743,612 | 29,331,744 | 2,411,868 | 8.2 | ||||||||||
Direct retail loans | 12,447,494 | 9,477,267 | 2,970,227 | 31.3 | ||||||||||
Sales finance loans | 6,190,940 | 3,388,430 | 2,802,510 | 82.7 | ||||||||||
Revolving credit loans | 1,167,467 | 1,037,135 | 130,332 | 12.6 | ||||||||||
Mortgage loans | 12,821,573 | 10,542,311 | 2,279,262 | 21.6 | ||||||||||
Total loans and leases | 64,371,086 | 53,776,887 | 10,594,199 | 19.7 | ||||||||||
Allowance for loan and lease losses | 790,271 | 716,276 | 73,995 | 10.3 | ||||||||||
Total earning assets | 82,607,385 | 70,709,082 | 11,898,303 | 16.8 | ||||||||||
Premises and equipment, net | 1,227,251 | 1,071,721 | 155,530 | 14.5 | ||||||||||
Goodwill | 3,837,956 | 1,737,617 | 2,100,339 | 120.9 | ||||||||||
Other intangible assets | 552,527 | 146,145 | 406,382 | 278.1 | ||||||||||
Other assets | 4,755,456 | 4,313,088 | 442,368 | 10.3 | ||||||||||
Total assets | 94,281,503 | 79,647,890 | 14,633,613 | 18.4 | ||||||||||
Noninterest-bearing deposits | 11,500,136 | 8,614,360 | 2,885,776 | 33.5 | ||||||||||
Savings and interest checking | 4,379,735 | 3,076,491 | 1,303,244 | 42.4 | ||||||||||
Money rate savings | 20,569,144 | 16,388,917 | 4,180,227 | 25.5 | ||||||||||
CDs and other time deposits | 27,675,877 | 23,161,261 | 4,514,616 | 19.5 | ||||||||||
Total deposits | 64,124,892 | 51,241,029 | 12,883,863 | 25.1 | ||||||||||
Short-term borrowed funds | 5,748,572 | 4,229,003 | 1,519,569 | 35.9 | ||||||||||
Long-term debt | 10,625,382 | 13,565,934 | (2,940,552 | ) | (21.7 | ) | ||||||||
Total interest-bearing liabilities | 68,998,710 | 60,421,606 | 8,577,104 | 14.2 | ||||||||||
Other liabilities | 3,355,829 | 3,050,846 | 304,983 | 10.0 | ||||||||||
Total liabilities | 83,854,675 | 72,086,812 | 11,767,863 | 16.3 | ||||||||||
Total shareholders' equity | $ | 10,426,828 | $ | 7,561,078 | $ | 2,865,750 | 37.9 | % | ||||||
Average balances | ||||||||||||||
Securities, at amortized cost | $ | 17,188,281 | $ | 16,428,321 | $ | 759,960 | 4.6 % | |||||||
Commercial loans and leases | 31,460,865 | 28,999,821 | 2,461,044 | 8.5 | ||||||||||
Direct retail loans | 12,269,198 | 9,417,240 | 2,851,958 | 30.3 | ||||||||||
Sales finance loans | 6,165,341 | 3,481,107 | 2,684,234 | 77.1 | ||||||||||
Revolving credit loans | 1,168,516 | 1,038,444 | 130,072 | 12.5 | ||||||||||
Mortgage loans | 12,156,224 | 10,772,525 | 1,383,699 | 12.8 | ||||||||||
Total loans and leases | 63,220,144 | 53,709,137 | 9,511,007 | 17.7 | ||||||||||
Allowance for loan and lease losses | 786,556 | 729,456 | 57,100 | 7.8 | ||||||||||
Other earning assets | 697,659 | 452,010 | 245,649 | 54.3 | ||||||||||
Total earning assets | 81,106,084 | 70,589,468 | 10,516,616 | 14.9 | ||||||||||
Total assets | 92,112,359 | 79,154,304 | 12,958,055 | 16.4 | ||||||||||
Noninterest-bearing deposits | 10,744,997 | 7,687,410 | 3,057,587 | 39.8 | ||||||||||
Savings and interest checking | 4,575,373 | 3,375,038 | 1,200,335 | 35.6 | ||||||||||
Money rate savings | 20,230,460 | 16,228,100 | 4,002,360 | 24.7 | ||||||||||
CDs and other time deposits | 25,993,720 | 24,322,564 | 1,671,156 | 6.9 | ||||||||||
Total deposits | 61,544,550 | 51,613,112 | 9,931,438 | 19.2 | ||||||||||
Short-term borrowed funds | 6,597,199 | 4,019,301 | 2,577,898 | 64.1 | ||||||||||
Long-term debt | 10,621,546 | 13,582,346 | (2,960,800 | ) | (21.8 | ) | ||||||||
Total interest-bearing liabilities | 68,018,298 | 61,527,349 | 6,490,949 | 10.5 | ||||||||||
Total shareholders' equity | $ | 10,218,527 | $ | 7,477,149 | $ | 2,741,378 | 36.7 | % | ||||||
As of / For the Quarter Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | |||||||||||||||
MISCELLANEOUS INFORMATION (1) | ||||||||||||||||||||
Unrealized appreciation (depreciation) on | ||||||||||||||||||||
securities available for sale, net of tax | $ | 145,119 | $ | 11,450 | $ | 98,196 | $ | 240,474 | $ | 280,309 | ||||||||||
Derivatives (notional value) | 20,219,582 | 14,608,690 | 9,625,035 | 12,377,125 | 13,195,050 | |||||||||||||||
Fair value of derivatives portfolio | 214,865 | 136,025 | 184,467 | 274,749 | 179,474 | |||||||||||||||
Common stock prices: | High | 38.80 | 39.69 | 38.19 | 35.93 | 38.80 | ||||||||||||||
Low | 34.48 | 35.98 | 33.72 | 31.42 | 30.66 | |||||||||||||||
End of period | 35.30 | 38.64 | 35.91 | 34.30 | 31.43 | |||||||||||||||
Weighted average shares - | Basic | 546,576,484 | 544,871,908 | 551,018,984 | 471,713,450 | 470,529,359 | ||||||||||||||
Diluted | 550,547,045 | 549,858,403 | 555,543,993 | 475,293,564 | 474,348,203 | |||||||||||||||
End of period shares outstanding | 548,022,164 | 541,942,987 | 548,886,598 | 472,118,220 | 471,218,625 | |||||||||||||||
End of period banking offices | 1,353 | 1,359 | 1,456 | 1,109 | 1,118 | |||||||||||||||
ATMs | 1,848 | 1,880 | 1,948 | 1,675 | 1,694 | |||||||||||||||
NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. | |
(1) | BB&T had approximately 26,600 full-time equivalent employees at March 31, 2004. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 7 | Investor Relations | FAX (336) 733-3132 |
As of / For the Quarter Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands, except per share data) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||
OPERATING EARNINGS STATEMENTS (1) | |||||||||||||||||
Interest income - taxable equivalent | |||||||||||||||||
Interest and fees on loans and leases | $ | 919,030 | $ | 925,614 | $ | 931,997 | $ | 853,094 | $ | 858,137 | |||||||
Interest and dividends on securities | 179,639 | 186,210 | 191,261 | 218,872 | 224,940 | ||||||||||||
Interest on short-term investments | 2,509 | 2,316 | 1,798 | 1,744 | 1,801 | ||||||||||||
Total interest income - taxable equivalent | 1,101,178 | 1,114,140 | 1,125,056 | 1,073,710 | 1,084,878 | ||||||||||||
Interest expense | |||||||||||||||||
Interest on deposits | 166,777 | 171,380 | 184,168 | 192,505 | 207,624 | ||||||||||||
Interest on short-term borrowed funds | 17,395 | 15,033 | 14,651 | 15,494 | 13,664 | ||||||||||||
Interest on long-term debt | 89,454 | 89,451 | 93,291 | 134,112 | 141,414 | ||||||||||||
Total interest expense | 273,626 | 275,864 | 292,110 | 342,111 | 362,702 | ||||||||||||
Net interest income - taxable equivalent | 827,552 | 838,276 | 832,946 | 731,599 | 722,176 | ||||||||||||
Less: Taxable equivalent adjustment | 20,729 | 26,600 | 26,488 | 28,179 | 29,998 | ||||||||||||
Net interest income | 806,823 | 811,676 | 806,458 | 703,420 | 692,178 | ||||||||||||
Provision for loan and lease losses | 62,500 | 58,500 | 65,000 | 61,500 | 63,000 | ||||||||||||
Net interest income after provision for | |||||||||||||||||
loan and lease losses | 744,323 | 753,176 | 741,458 | 641,920 | 629,178 | ||||||||||||
Noninterest income | |||||||||||||||||
Service charges on deposits | 122,763 | 122,120 | 121,981 | 96,645 | 96,778 | ||||||||||||
Mortgage banking income (loss) | 7,110 | 45,628 | 98,330 | (32,711 | ) | 59,972 | |||||||||||
Investment banking and brokerage fees and commissions | 76,598 | 68,667 | 65,805 | 60,597 | 52,325 | ||||||||||||
Trust revenue | 29,985 | 29,099 | 31,871 | 26,248 | 26,009 | ||||||||||||
Insurance commissions | 123,706 | 102,070 | 103,592 | 101,500 | 88,658 | ||||||||||||
Other nondeposit fees and commissions | 71,634 | 73,618 | 73,312 | 60,770 | 56,272 | ||||||||||||
Securities gains (losses), net | (511 | ) | (7,529 | ) | (29,127 | ) | 109,500 | 34,234 | |||||||||
Other noninterest income | 46,893 | 37,342 | 46,339 | 38,547 | 30,673 | ||||||||||||
Total noninterest income | 478,178 | 471,015 | 512,103 | 461,096 | 444,921 | ||||||||||||
Noninterest expense | |||||||||||||||||
Personnel expense | 422,966 | 374,788 | 412,350 | 367,497 | 352,701 | ||||||||||||
Occupancy and equipment expense | 100,147 | 100,463 | 97,352 | 85,625 | 87,727 | ||||||||||||
Foreclosed property expense | 6,002 | 6,556 | 5,163 | 3,541 | 4,069 | ||||||||||||
Amortization of intangibles | 24,056 | 21,100 | 20,990 | 6,806 | 6,754 | ||||||||||||
Other noninterest expense | 175,165 | 179,778 | 173,393 | 155,610 | 148,108 | ||||||||||||
Total noninterest expense | 728,336 | 682,685 | 709,248 | 619,079 | 599,359 | ||||||||||||
Operating earnings before income taxes | 494,165 | 541,506 | 544,313 | 483,937 | 474,740 | ||||||||||||
Provision for income taxes | 159,521 | 164,657 | 165,055 | 147,009 | 143,941 | ||||||||||||
Operating earnings (1) | 334,644 | 376,849 | 379,258 | 336,928 | 330,799 | ||||||||||||
PER SHARE DATA BASED ON | |||||||||||||||||
OPERATING EARNINGS (1) | |||||||||||||||||
Basic earnings | $ | .61 | $ | .69 | $ | .69 | $ | .71 | $ | .70 | |||||||
Diluted earnings | .61 | .69 | .68 | .71 | .70 | ||||||||||||
Dividends paid per common share | .32 | .32 | .32 | .29 | .29 | ||||||||||||
Book value per share | 19.03 | 18.33 | 18.61 | 16.32 | 16.05 | ||||||||||||
Tangible book value per share (2) | 11.01 | 10.92 | 11.20 | 12.36 | 12.05 | ||||||||||||
PERFORMANCE RATIOS BASED ON | |||||||||||||||||
OPERATING EARNINGS (1) | |||||||||||||||||
Return on average assets | 1.46 | % | 1.66 | % | 1.66 | % | 1.67 | % | 1.69 | % | |||||||
Return on average equity | 13.17 | 14.80 | 14.73 | 17.45 | 17.94 | ||||||||||||
Net yield on earning assets (taxable equivalent) (3) | 4.09 | 4.22 | 4.17 | 4.06 | 4.13 | ||||||||||||
Efficiency ratio (taxable equivalent) (3) | 55.1 | 52.7 | 53.0 | 52.0 | 51.6 | ||||||||||||
Noninterest income as a percentage of | |||||||||||||||||
total income (taxable equivalent) (3) | 36.9 | 34.7 | 37.3 | 38.2 | 37.4 | ||||||||||||
Equity as a percentage of total assets at | |||||||||||||||||
end of period | 11.1 | 11.0 | 11.3 | 9.6 | 9.5 | ||||||||||||
Average earning assets as a percentage of | |||||||||||||||||
average total assets | 88.1 | 87.9 | 87.6 | 89.3 | 89.2 | ||||||||||||
Average loans and leases as a percentage of | |||||||||||||||||
average deposits | 102.7 | 100.7 | 99.4 | 102.9 | 104.1 | ||||||||||||
CASH BASIS PERFORMANCE BASED ON | |||||||||||||||||
OPERATING EARNINGS (1) (4) | |||||||||||||||||
Cash basis operating earnings | $ | 354,965 | $ | 393,646 | $ | 395,987 | $ | 341,080 | $ | 334,919 | |||||||
Diluted earnings per share | .64 | .72 | .71 | .72 | .71 | ||||||||||||
Return on average tangible assets | 1.62 | % | 1.81 | % | 1.81 | % | 1.73 | % | 1.76 | % | |||||||
Return on average tangible equity | 23.93 | 25.84 | 25.62 | 23.38 | 24.26 | ||||||||||||
Efficiency ratio (taxable equivalent) (3) | 52.9 | 50.8 | 51.2 | 51.4 | 51.0 | ||||||||||||
NOTES: | Applicable ratios are annualized. | |
(1) | Operating earnings statements exclude the effect of merger-related and nonrecurring charges. These charges totaled $6.1 million, $71.8 million, $263.4 million, $20.7 million, and $3.1 million, net of tax, for the quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. See Reconciliation Tables included herein. | |
(2) | Excludes carrying value of goodwill and other intangible assets from shareholders' equity. | |
(3) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, gains or losses on mortgage banking-related derivatives, merger-related charges and nonrecurring charges. See Reconciliation Tables included herein. | |
(4) | Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 8 | Investor Relations | FAX (336) 733-3132 |
As of / For the Quarter Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands, except per share data) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||
INCOME STATEMENTS | |||||||||||||||||
Interest income | |||||||||||||||||
Interest and fees on loans and leases | $ | 912,156 | $ | 982,319 | $ | 920,451 | $ | 841,961 | $ | 846,671 | |||||||
Interest and dividends on securities | 165,784 | 171,178 | 176,319 | 201,826 | 206,408 | ||||||||||||
Interest on short-term investments | 2,509 | 2,316 | 1,798 | 1,744 | 1,801 | ||||||||||||
Total interest income | 1,080,449 | 1,155,813 | 1,098,568 | 1,045,531 | 1,054,880 | ||||||||||||
Interest expense | |||||||||||||||||
Interest on deposits | 166,777 | 171,380 | 184,168 | 192,505 | 207,624 | ||||||||||||
Interest on short-term borrowed funds | 17,395 | 15,033 | 14,651 | 15,494 | 13,664 | ||||||||||||
Interest on long-term debt | 89,454 | 89,451 | 93,291 | 134,112 | 141,414 | ||||||||||||
Total interest expense | 273,626 | 275,864 | 292,110 | 342,111 | 362,702 | ||||||||||||
Net interest income | 806,823 | 879,949 | 806,458 | 703,420 | 692,178 | ||||||||||||
Provision for loan and lease losses | 62,500 | 58,500 | 65,000 | 61,500 | 63,000 | ||||||||||||
Net interest income after provision for | |||||||||||||||||
loan and lease losses | 744,323 | 821,449 | 741,458 | 641,920 | 629,178 | ||||||||||||
Noninterest income | |||||||||||||||||
Service charges on deposits | 122,763 | 122,120 | 121,981 | 96,645 | 96,778 | ||||||||||||
Mortgage banking income (loss) | 7,110 | 45,628 | 98,330 | (32,711 | ) | 59,972 | |||||||||||
Investment banking and brokerage fees and commissions | 76,598 | 68,667 | 65,805 | 60,597 | 52,325 | ||||||||||||
Trust revenue | 29,985 | 29,099 | 31,871 | 26,248 | 26,009 | ||||||||||||
Insurance commissions | 123,706 | 102,070 | 103,592 | 101,500 | 88,658 | ||||||||||||
Other nondeposit fees and commissions | 71,634 | 73,618 | 73,312 | 60,770 | 56,272 | ||||||||||||
Securities gains (losses), net | (511 | ) | (7,529 | ) | (29,127 | ) | 109,500 | 34,234 | |||||||||
Other noninterest income | 46,893 | 37,342 | 46,339 | 38,547 | 30,673 | ||||||||||||
Total noninterest income | 478,178 | 471,015 | 512,103 | 461,096 | 444,921 | ||||||||||||
Noninterest expense | |||||||||||||||||
Personnel expense | 422,966 | 374,788 | 412,350 | 367,497 | 352,701 | ||||||||||||
Occupancy and equipment expense | 100,147 | 100,463 | 97,352 | 85,625 | 87,727 | ||||||||||||
Foreclosed property expense | 6,002 | 6,556 | 5,163 | 3,541 | 4,069 | ||||||||||||
Amortization of intangibles | 24,056 | 21,100 | 20,990 | 6,806 | 6,754 | ||||||||||||
Merger-related and restructuring charges | 9,650 | 51,451 | 22,820 | 10,775 | 4,729 | ||||||||||||
Loss on early extinguishment of debt | -- | -- | 384,898 | -- | -- | ||||||||||||
Other noninterest expense | 175,165 | 179,778 | 173,393 | 176,676 | 148,108 | ||||||||||||
Total noninterest expense | 737,986 | 734,136 | 1,116,966 | 650,920 | 604,088 | ||||||||||||
Income before income taxes | 484,515 | 558,328 | 136,595 | 452,096 | 470,011 | ||||||||||||
Provision for income taxes | 156,015 | 253,301 | 20,704 | 135,859 | 142,263 | ||||||||||||
Net income | 328,500 | 305,027 | 115,891 | 316,237 | 327,748 | ||||||||||||
PER SHARE DATA | |||||||||||||||||
Basic earnings | $ | .60 | $ | .56 | $ | .21 | $ | .67 | $ | .70 | |||||||
Diluted earnings | .60 | .55 | .21 | .67 | .69 | ||||||||||||
For the Quarter Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | |||||||||||||
ANNUALIZED INTEREST YIELDS / RATES (1) | |||||||||||||||||
Interest income: | |||||||||||||||||
Securities and other earning assets | 4.07 | % | 4.30 | % | 4.28 | % | 4.92 | % | 5.38 | % | |||||||
Loans and leases | 5.84 | 5.96 | 6.02 | 6.29 | 6.46 | ||||||||||||
Total earning assets | 5.45 | 5.60 | 5.62 | 5.95 | 6.20 | ||||||||||||
Interest expense: | |||||||||||||||||
Interest-bearing deposits | 1.32 | 1.35 | 1.44 | 1.73 | 1.92 | ||||||||||||
Short-term borrowed funds | 1.06 | .98 | .99 | 1.29 | 1.36 | ||||||||||||
Long-term debt | 3.38 | 3.55 | 3.60 | 4.04 | 4.16 | ||||||||||||
Total interest-bearing liabilities | 1.62 | 1.65 | 1.73 | 2.19 | 2.38 | ||||||||||||
Net yield on earning assets | 4.09 | % | 4.22 | % | 4.17 | % | 4.06 | % | 4.13 | % | |||||||
NOTES: | (1) | Fully taxable equivalent yields. Excludes nonrecurring items. Securities yields calculated based on amortized cost. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 9 | Investor Relations | FAX (336) 733-3132 |
As of / For the Quarter Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||
SELECTED BALANCE SHEET DATA | |||||||||||||||||
End of period balances | |||||||||||||||||
Securities available for sale | $ | 17,584,687 | $ | 15,562,954 | $ | 16,032,688 | $ | 16,030,474 | $ | 16,721,662 | |||||||
Securities held to maturity | 125 | 60,122 | 57,076 | 55,099 | 57,489 | ||||||||||||
Trading securities | 364,481 | 693,819 | 710,387 | 180,711 | 172,789 | ||||||||||||
Total securities | 17,949,293 | 16,316,895 | 16,800,151 | 16,266,284 | 16,951,940 | ||||||||||||
Commercial loans and leases | 31,743,612 | 31,335,752 | 30,939,186 | 29,418,569 | 29,331,744 | ||||||||||||
Direct retail loans | 12,447,494 | 12,130,101 | 11,791,148 | 9,716,242 | 9,477,267 | ||||||||||||
Sales finance loans | 6,190,940 | 6,035,662 | 6,164,851 | 3,381,745 | 3,388,430 | ||||||||||||
Revolving credit loans | 1,167,467 | 1,180,480 | 1,111,208 | 1,059,313 | 1,037,135 | ||||||||||||
Mortgage loans | 12,821,573 | 11,623,391 | 11,166,084 | 11,368,328 | 10,542,311 | ||||||||||||
Total loans and leases | 64,371,086 | 62,305,386 | 61,172,477 | 54,944,197 | 53,776,887 | ||||||||||||
Allowance for loan and lease losses | 790,271 | 784,937 | 791,527 | 719,576 | 716,276 | ||||||||||||
Other earning assets | 510,292 | 604,006 | 603,425 | 533,478 | 435,066 | ||||||||||||
Total earning assets | 82,607,385 | 79,208,578 | 78,410,936 | 71,351,630 | 70,709,082 | ||||||||||||
Total assets | 94,281,503 | 90,466,613 | 90,355,131 | 80,444,806 | 79,647,890 | ||||||||||||
Noninterest-bearing deposits | 11,500,136 | 11,098,251 | 10,909,953 | 9,238,605 | 8,614,360 | ||||||||||||
Savings and interest checking | 4,379,735 | 4,307,069 | 4,217,404 | 2,946,606 | 3,076,491 | ||||||||||||
Money rate savings | 20,569,144 | 20,348,969 | 20,231,596 | 16,608,916 | 16,388,917 | ||||||||||||
CDs and other time deposits | 27,675,877 | 23,595,496 | 25,936,345 | 23,561,639 | 23,161,261 | ||||||||||||
Total deposits | 64,124,892 | 59,349,785 | 61,295,298 | 52,355,766 | 51,241,029 | ||||||||||||
Short-term borrowed funds | 5,748,572 | 7,334,900 | 6,294,995 | 4,627,801 | 4,229,003 | ||||||||||||
Long-term debt | 10,625,382 | 10,807,700 | 9,837,910 | 12,831,350 | 13,565,934 | ||||||||||||
Total interest-bearing liabilities | 68,998,710 | 66,394,134 | 66,518,250 | 60,576,312 | 60,421,606 | ||||||||||||
Total shareholders' equity | 10,426,828 | 9,934,731 | 10,214,832 | 7,703,424 | 7,561,078 | ||||||||||||
Goodwill | 3,837,956 | 3,616,526 | 3,642,068 | 1,714,938 | 1,737,617 | ||||||||||||
Core deposit and other intangibles | 552,527 | 401,944 | 422,716 | 152,054 | 146,145 | ||||||||||||
Total intangibles | 4,390,483 | 4,018,470 | 4,064,784 | 1,866,992 | 1,883,762 | ||||||||||||
Mortgage servicing rights | $ | 256,341 | $ | 334,931 | $ | 327,376 | $ | 220,300 | $ | 313,805 | |||||||
Average balances | |||||||||||||||||
Securities, at amortized cost | $ | 17,188,281 | $ | 16,937,451 | $ | 17,423,216 | $ | 17,432,923 | $ | 16,428,321 | |||||||
Commercial loans and leases | 31,460,865 | 30,919,252 | 30,746,686 | 29,231,383 | 28,999,821 | ||||||||||||
Direct retail loans | 12,269,198 | 11,931,318 | 11,597,522 | 9,586,676 | 9,417,240 | ||||||||||||
Sales finance loans | 6,165,341 | 6,278,763 | 6,285,902 | 3,486,168 | 3,481,107 | ||||||||||||
Revolving credit loans | 1,168,516 | 1,136,268 | 1,098,690 | 1,044,083 | 1,038,444 | ||||||||||||
Mortgage loans | 12,156,224 | 11,425,458 | 11,790,843 | 11,032,165 | 10,772,525 | ||||||||||||
Total loans and leases | 63,220,144 | 61,691,059 | 61,519,643 | 54,380,475 | 53,709,137 | ||||||||||||
Allowance for loan and lease losses | 786,556 | 794,394 | 792,914 | 720,432 | 729,456 | ||||||||||||
Other earning assets | 697,659 | 590,519 | 633,744 | 514,879 | 452,010 | ||||||||||||
Total earning assets | 81,106,084 | 79,219,029 | 79,576,603 | 72,328,277 | 70,589,468 | ||||||||||||
Total assets | 92,112,359 | 90,116,726 | 90,845,816 | 81,012,962 | 79,154,304 | ||||||||||||
Noninterest-bearing deposits | 10,744,997 | 10,967,480 | 11,023,396 | 8,326,827 | 7,687,410 | ||||||||||||
Savings and interest checking | 4,575,373 | 4,425,717 | 4,497,102 | 3,303,608 | 3,375,038 | ||||||||||||
Money rate savings | 20,230,460 | 20,162,364 | 20,018,836 | 16,406,576 | 16,228,100 | ||||||||||||
CDs and other time deposits | 25,993,720 | 25,712,445 | 26,350,439 | 24,824,328 | 24,322,564 | ||||||||||||
Total deposits | 61,544,550 | 61,268,006 | 61,889,773 | 52,861,339 | 51,613,112 | ||||||||||||
Short-term borrowed funds | 6,597,199 | 6,006,630 | 5,763,994 | 4,744,761 | 4,019,301 | ||||||||||||
Long-term debt | 10,621,546 | 9,936,570 | 10,205,592 | 13,173,214 | 13,582,346 | ||||||||||||
Total interest-bearing liabilities | 68,018,298 | 66,243,726 | 66,835,963 | 62,452,487 | 61,527,349 | ||||||||||||
Total shareholders' equity | $ | 10,218,527 | $ | 10,099,916 | $ | 10,215,142 | $ | 7,745,395 | $ | 7,477,149 | |||||||
SELECTED CAPITAL INFORMATION (1) | |||||||||||||||||
Risk-based capital: | |||||||||||||||||
Tier 1 | $ | 6,218,080 | $ | 6,166,160 | $ | 6,274,986 | $ | 5,684,767 | $ | 5,497,767 | |||||||
Total | 8,260,303 | 8,211,674 | 8,683,707 | 8,022,774 | 7,946,913 | ||||||||||||
Risk-weighted assets | 67,174,692 | 65,511,840 | 65,442,593 | 58,324,722 | 57,651,703 | ||||||||||||
Average quarterly tangible assets | 87,835,594 | 86,157,150 | 86,828,988 | 78,631,225 | 76,718,630 | ||||||||||||
Risk-based capital ratios: | |||||||||||||||||
Tier 1 | 9.26 | % | 9.41 | % | 9.59 | % | 9.75 | % | 9.54 | % | |||||||
Total | 12.30 | 12.53 | 13.27 | 13.76 | 13.78 | ||||||||||||
Leverage capital ratio | 7.08 | 7.16 | 7.23 | 7.23 | 7.17 | ||||||||||||
Equity as a percentage of total assets | 11.1 | 11.0 | 11.3 | 9.6 | 9.5 | ||||||||||||
Book value per share | $ | 19.03 | $ | 18.33 | $ | 18.61 | $ | 16.32 | $ | 16.05 | |||||||
Tangible book value per share (2) | 11.01 | 10.92 | 11.20 | 12.36 | 12.05 | ||||||||||||
NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. | |
(1) | Current quarter risk-based capital information is preliminary. | |
(2) | Excludes the carrying value of goodwill and other intangible assets from shareholders' equity. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 10 | Investor Relations | FAX (336) 733-3132 |
As of / For the Quarter Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||
ASSET QUALITY ANALYSIS | |||||||||||||||||
Allowance For Loan and Lease Losses | |||||||||||||||||
Beginning balance | $ | 784,937 | $ | 791,527 | $ | 719,576 | $ | 716,276 | $ | 723,685 | |||||||
Allowance for acquired loans, net | -- | -- | 68,768 | -- | 1,267 | ||||||||||||
Reclassification of allowance related | |||||||||||||||||
to unfunded commitments | -- | -- | -- | -- | (8,986 | ) | |||||||||||
Provision for loan and lease losses | 62,500 | 58,500 | 65,000 | 61,500 | 63,000 | ||||||||||||
Charge-offs | |||||||||||||||||
Commercial loans and leases | (22,176 | ) | (38,577 | ) | (27,194 | ) | (27,853 | ) | (29,018 | ) | |||||||
Direct retail | (11,295 | ) | (12,395 | ) | (10,340 | ) | (10,078 | ) | (12,535 | ) | |||||||
Sales finance | (22,518 | ) | (21,856 | ) | (23,309 | ) | (24,751 | ) | (22,233 | ) | |||||||
Revolving credit | (14,286 | ) | (12,279 | ) | (12,387 | ) | (12,955 | ) | (12,423 | ) | |||||||
Mortgage | (1,375 | ) | (1,733 | ) | (1,523 | ) | (1,178 | ) | (658 | ) | |||||||
Total charge-offs | (71,650 | ) | (86,840 | ) | (74,753 | ) | (76,815 | ) | (76,867 | ) | |||||||
Recoveries | |||||||||||||||||
Commercial loans and leases | 6,057 | 13,703 | 4,102 | 10,668 | 6,369 | ||||||||||||
Direct retail | 2,489 | 2,442 | 3,269 | 2,857 | 3,233 | ||||||||||||
Sales finance | 3,511 | 3,279 | 3,305 | 2,848 | 2,493 | ||||||||||||
Revolving credit | 2,178 | 2,205 | 2,155 | 2,159 | 1,901 | ||||||||||||
Mortgage | 249 | 121 | 105 | 83 | 181 | ||||||||||||
Total recoveries | 14,484 | 21,750 | 12,936 | 18,615 | 14,177 | ||||||||||||
Net charge-offs | (57,166 | ) | (65,090 | ) | (61,817 | ) | (58,200 | ) | (62,690 | ) | |||||||
Ending balance | $ | 790,271 | $ | 784,937 | $ | 791,527 | $ | 719,576 | $ | 716,276 | |||||||
Nonperforming Assets | |||||||||||||||||
Nonaccrual loans and leases: | |||||||||||||||||
Commercial loans and leases | $ | 218,111 | $ | 219,558 | $ | 226,655 | $ | 233,938 | $ | 251,364 | |||||||
Direct retail | 52,426 | 50,085 | 47,618 | 43,023 | 39,179 | ||||||||||||
Sales finance | 12,062 | 13,082 | 14,182 | 15,794 | 27,999 | ||||||||||||
Revolving credit | 367 | 342 | 354 | 278 | 266 | ||||||||||||
Mortgage | 62,756 | 67,373 | 66,611 | 70,491 | 73,893 | ||||||||||||
Total nonaccrual loans and leases | 345,722 | 350,440 | 355,420 | 363,524 | 392,701 | ||||||||||||
Foreclosed real estate | 74,832 | 78,964 | 70,178 | 64,347 | 60,110 | ||||||||||||
Other foreclosed property | 21,247 | 17,106 | 20,902 | 17,575 | 21,714 | ||||||||||||
Restructured loans | 573 | 592 | 613 | 145 | 175 | ||||||||||||
Nonperforming assets | $ | 442,374 | $ | 447,102 | $ | 447,113 | $ | 445,591 | $ | 474,700 | |||||||
Loans 90 days or more past due | |||||||||||||||||
and still accruing: | |||||||||||||||||
Commercial loans and leases | $ | 18,885 | $ | 17,759 | $ | 34,965 | $ | 19,925 | $ | 15,994 | |||||||
Direct retail | 20,359 | 25,695 | 24,019 | 20,934 | 24,451 | ||||||||||||
Sales finance | 26,091 | 27,863 | 18,379 | 15,688 | 16,311 | ||||||||||||
Revolving credit | 4,644 | 5,601 | 4,626 | 4,466 | 4,651 | ||||||||||||
Mortgage | 33,917 | 39,840 | 39,918 | 36,466 | 32,202 | ||||||||||||
Total loans 90 days or more past due | |||||||||||||||||
and still accruing | 103,896 | 116,758 | 121,907 | 97,479 | 93,609 | ||||||||||||
Loans 90 days or more past due and still accruing | |||||||||||||||||
as a percentage of total loans and leases | .16 | % | .19 | % | .20 | % | .18 | % | .17 | % | |||||||
Asset Quality Ratios | |||||||||||||||||
Nonaccrual and restructured loans and leases | |||||||||||||||||
as a percentage of total loans and leases | .54 | % | .56 | % | .58 | % | .66 | % | .73 | % | |||||||
Nonperforming assets as a percentage of: | |||||||||||||||||
Total assets | .47 | .49 | .49 | .55 | .60 | ||||||||||||
Loans and leases plus | |||||||||||||||||
foreclosed property | .69 | .72 | .73 | .81 | .88 | ||||||||||||
Net charge-offs as a percentage of | |||||||||||||||||
average loans and leases | .36 | .42 | .40 | .43 | .47 | ||||||||||||
Net charge-offs excluding specialized | |||||||||||||||||
lending as a percentage of average | |||||||||||||||||
loans and leases (1) | .25 | .31 | .30 | .31 | .35 | ||||||||||||
Allowance for loan and lease losses as | |||||||||||||||||
a percentage of loans and leases | 1.23 | 1.26 | 1.29 | 1.31 | 1.33 | ||||||||||||
Allowance for loan and lease losses as | |||||||||||||||||
a percentage of loans and leases | |||||||||||||||||
held for investment | 1.25 | 1.27 | 1.32 | 1.39 | 1.39 | ||||||||||||
Ratio of allowance for loan and lease losses to: | |||||||||||||||||
Net charge-offs | 3.44 | x | 3.04 | x | 3.23 | x | 3.08 | x | 2.82 | x | |||||||
Nonaccrual and restructured loans and leases | 2.28 | 2.24 | 2.22 | 1.98 | 1.82 | ||||||||||||
NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized. | |
(1) | Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 11 | Investor Relations | FAX (336) 733-3132 |
Percentage Increase (Decrease) | ||||||||
---|---|---|---|---|---|---|---|---|
1Q04 vs. 1Q03 | 1Q04 vs. 4Q03 | |||||||
PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR PURCHASE ACQUISTIONS (1) | ||||||||
Average Balances | ||||||||
Commercial loans and leases | 3.0 | % | 7.0 | % | ||||
Direct retail loans | 9.0 | 11.4 | ||||||
Sales finance loans | (2.2 | ) | (7.3 | ) | ||||
Revolving credit loans | 9.0 | 11.4 | ||||||
Mortgage loans | 10.3 | 25.7 | ||||||
Total loans and leases | 5.0 | 10.0 | ||||||
Noninterest-bearing deposits | 9.9 | (8.1 | ) | |||||
Interest-bearing transaction accounts | 8.0 | 14.6 | ||||||
CDs and other time deposits | (2.4 | ) | 4.9 | |||||
Other deposits | 3.2 | (2.9 | ) | |||||
Total deposits | 2.5 | % | 2.0 | % | ||||
PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS | ||||||||
BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1) | ||||||||
Net interest income - taxable equivalent | (.7 | ) % | (4.1 | ) % | ||||
Noninterest income | ||||||||
Service charges on deposits | 6.6 | 2.1 | ||||||
Mortgage banking income | (88.2 | ) | NM | |||||
Investment banking and brokerage fees and commissions | 45.1 | 46.5 | ||||||
Trust revenue | 1.2 | 12.2 | ||||||
Insurance commissions | 10.1 | (24.9 | ) | |||||
Other nondeposit fees and commissions | 9.7 | (10.8 | ) | |||||
Securities gains (losses), net | (101. | 3) | NM | |||||
Other income | 47.2 | 102.9 | ||||||
Total noninterest income (2) | (5.2 | ) | (18.5 | ) | ||||
Noninterest expense | ||||||||
Personnel expense | .4 | 33.3 | ||||||
Occupancy and equipment expense | (2.6 | ) | (7.4 | ) | ||||
Other noninterest expense | 3.4 | (15.8 | ) | |||||
Total noninterest expense | .8 | % | 12.6 | % | ||||
NOTES: | Applicable growth rates are annualized. | |
(1) | Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2004 and 2003. | |
(2) | Excluding mortgage banking income and securities gains (losses), noninterest income increased 15.6% from the first quarter of 2003 to the first quarter of 2004 and increased 6.2% on an annualized basis from the fourth quarter of 2003 to the first quarter of 2004. | |
NM | - not meaningful. |
QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
Page 12 | Investor Relations | FAX (336) 733-3132 |
For the Three Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands, except per share data) | 3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||
RECONCILIATION TABLE | |||||||||||||||||
Net income | $ | 328,500 | $ | 305,027 | $ | 115,891 | $ | 316,237 | $ | 327,748 | |||||||
Merger-related charges, net of tax | 6,144 | 30,176 | 14,829 | 6,998 | 3,051 | ||||||||||||
Other, net of tax (3) | -- | 41,646 | 248,538 | 13,693 | -- | ||||||||||||
Operating earnings | 334,644 | 376,849 | 379,258 | 336,928 | 330,799 | ||||||||||||
Amortization of intangibles, net of tax | 15,215 | 12,871 | 12,804 | 4,152 | 4,120 | ||||||||||||
Amortization of mark-to-market adjustments, net of tax | 5,106 | 3,926 | 3,925 | -- | -- | ||||||||||||
Cash basis operating earnings | 354,965 | 393,646 | 395,987 | 341,080 | 334,919 | ||||||||||||
Return on average assets | 1.43 | % | 1.34 | % | .51 | % | 1.57 | % | 1.68 | % | |||||||
Effect of merger-related charges, net of tax | .03 | .13 | .06 | .03 | .01 | ||||||||||||
Effect of other, net of tax (3) | -- | .19 | 1.09 | .07 | -- | ||||||||||||
Operating return on average assets | 1.46 | 1.66 | 1.66 | 1.67 | 1.69 | ||||||||||||
Effect of amortization of intangibles, net of tax (2) | .14 | .13 | .13 | .06 | .07 | ||||||||||||
Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
net of tax | .02 | .02 | .02 | -- | -- | ||||||||||||
Cash basis operating return on average | |||||||||||||||||
tangible assets | 1.62 | 1.81 | 1.81 | 1.73 | 1.76 | ||||||||||||
Return on average equity | 12.93 | % | 11.98 | % | 4.50 | % | 16.38 | % | 17.78 | % | |||||||
Effect of merger-related charges, net of tax | .24 | 1.19 | .58 | .36 | .16 | ||||||||||||
Effect of other, net of tax (3) | -- | 1.63 | 9.65 | .71 | -- | ||||||||||||
Operating return on average equity | 13.17 | 14.80 | 14.73 | 17.45 | 17.94 | ||||||||||||
Effect of amortization of intangibles, net of tax (2) | 10.42 | 10.89 | 10.64 | 5.93 | 6.32 | ||||||||||||
Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
net of tax | .34 | .15 | .25 | -- | -- | ||||||||||||
Cash basis operating return on average | |||||||||||||||||
tangible equity | 23.93 | 25.84 | 25.62 | 23.38 | 24.26 | ||||||||||||
Efficiency ratio (taxable equivalent) (1) | 55.8 | % | 59.7 | % | 83.7 | % | 54.7 | % | 52.0 | % | |||||||
Effect of merger-related charges | (.7 | ) | (4.0 | ) | (1.7 | ) | (.9 | ) | (.4 | ) | |||||||
Effect of other (3) | -- | (3.0 | ) | (29.0 | ) | (1.8 | ) | -- | |||||||||
Operating efficiency ratio (1) | 55.1 | 52.7 | 53.0 | 52.0 | 51.6 | ||||||||||||
Effect of amortization of intangibles | (1.9 | ) | (1.6 | ) | (1.6 | ) | (.6 | ) | (.6 | ) | |||||||
Effect of amortization of mark-to-market adjustments | (.3 | ) | (.3 | ) | (.2 | ) | -- | -- | |||||||||
Cash basis operating efficiency ratio (1) | 52.9 | 50.8 | 51.2 | 51.4 | 51.0 | ||||||||||||
Basic earnings per share | $ | .60 | $ | .56 | $ | .21 | $ | .67 | $ | .70 | |||||||
Effect of merger-related charges, net of tax | .01 | .06 | .03 | .01 | -- | ||||||||||||
Effect of other, net of tax (3) | -- | .07 | .45 | .03 | -- | ||||||||||||
Operating basic earnings per share | .61 | .69 | .69 | .71 | .70 | ||||||||||||
Diluted earnings per share | $ | .60 | $ | .55 | $ | .21 | $ | .67 | $ | .69 | |||||||
Effect of merger-related charges, net of tax | .01 | .05 | .03 | .01 | .01 | ||||||||||||
Effect of other, net of tax (3) | -- | .09 | .44 | .03 | -- | ||||||||||||
Operating diluted earnings per share | .61 | .69 | .68 | .71 | .70 | ||||||||||||
Effect of amortization of intangibles, net of tax | .02 | .02 | .02 | .01 | .01 | ||||||||||||
Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
net of tax | .01 | .01 | .01 | -- | -- | ||||||||||||
Cash basis operating diluted earnings per share | .64 | .72 | .71 | .72 | .71 | ||||||||||||
Net yield on earning assets (taxable equivalent) | 4.09 | % | 3.89 | % | 4.17 | % | 4.06 | % | 4.13 | % | |||||||
Effect of other, net of tax (3) | -- | .33 | -- | -- | -- | ||||||||||||
Operating net yield on earning assets | 4.09 | 4.22 | 4.17 | 4.06 | 4.13 | ||||||||||||
NOTES: | Applicable ratios are annualized. | |
(1) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage banking-related derivatives. Operating and cash basis ratios also exclude merger-related and nonrecurring charges. | |
(2) | Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios. | |
(3) | Reflects nonrecurring contributions made by an affiliated trust totaling $13.7 million in the second quarter of 2003, a loss on early extinguishment of debt totaling $248.5 million in the third quarter of 2003, and a one-time charge related to deferred income taxes associated with BB&T's leasing operatings totaling $41.6 million in the fourth quarter of 2003. |
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BB&T CORPORATION
(Registrant)
By: /S/ EDWARD D. VEST
Edward D. Vest
Senior Vice President and Controller
(Principal Accounting Officer)
Date: April 13, 2004