-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O4RudtrJ7sB9YTGVi2KIPS4fpO9lh438wE+hGL4SutL/JiinWz4VhfqSLIvHocqC TygCJHWC/rvR+sBu1CPZzQ== 0000092230-98-000023.txt : 19980714 0000092230-98-000023.hdr.sgml : 19980714 ACCESSION NUMBER: 0000092230-98-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980713 ITEM INFORMATION: FILED AS OF DATE: 19980713 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BB&T CORP CENTRAL INDEX KEY: 0000092230 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560939887 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10853 FILM NUMBER: 98664959 BUSINESS ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 BUSINESS PHONE: 3367332000 MAIL ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHERN NATIONAL CORP /NC/ DATE OF NAME CHANGE: 19920703 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 13, 1998 BB&T Corporation (Exact name of registrant as specified in its charter) Commission file number : 1-10853 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) (336) 733-2000 (Registrant's telephone number, including area code) This Form 8-K has 12 pages. ITEM 5. OTHER EVENTS The purpose of this Current Report on Form 8-K is to file BB&T Corporation's Quarterly Performance Summary for the second quarter of 1998, including sections distributed to the media and a supplement distributed to analysts. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued July 10, 1998 Contacts: ANALYSTS MEDIA Tom A. Nicholson Scott E. Reed Bob Denham Senior Vice President Senior Executive Vice President Vice President Investor Relations Chief Financial Officer Public Relations (336) 733-3058 (336) 733-3088 (336) 733-2202 BB&T reports 19.8% increase in 2nd quarter earnings WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBK) reported today that earnings for the second quarter of 1998 totaled $122.0 million compared to second quarter 1997 earnings of $101.9 million, an increase of 19.8%. On a diluted per share basis, BB&T earned $.85 for the three months ended June 30, 1998, an increase of 19.7% from the $.71 earned during the second quarter of 1997. BB&T's current quarter results produced a return on average assets of 1.56% and a return on average equity of 20.23%, compared to prior year ratios of 1.44% and 17.92%, respectively. BB&T's "cash basis" results (which exclude the effect that intangible assets and related amortization expense have on net income, total assets and shareholders' equity) for the three months ended June 30, 1998, improved significantly compared to the second quarter of 1997. Cash basis net income totaled $127.3 million, or $.89 per diluted share, an increase of 21.3% and 21.9%, respectively, over prior year amounts. The cash basis performance generated a return on average tangible assets of 1.63% and a return on average tangible equity of 23.29%. For the six months ended June 30, 1998, BB&T's net income was $241.8 million, or $1.67 per diluted share, before nonrecurring charges totaling $6.0 million after tax associated with completing the acquisition of Life Bancorp, Inc. of Norfolk, Virginia. These earnings represent an increase of 19.7% and 19.3%, respectively, over the $201.9 million, or $1.40 per diluted share, earned in the first six months of 1997. Recurring earnings for the first half of 1998 produced a return on average assets of 1.57% and a return on average equity of 20.00%, compared to prior year ratios of 1.47% and 17.95%, respectively. BB&T continues to rank in the top 10% of bank holding companies with a cash basis efficiency ratio for the first six months of 1998 of 50.2%. MORE "It is a pleasure to report record second quarter earnings," said Chairman and Chief Executive Officer John A. Allison. "Our earnings are benefiting from continued strong performance in noninterest income, which increased 33.8% compared to the second quarter of 1997, increased net interest income, driven by a 12.2% increase in average loans, and a lower loan loss provision made possible by improved overall asset quality." On June 23, BB&T's Board of Directors announced a 2-for-1 stock split effective August 3 to shareholders of record on July 10. "BB&T Corporation's common stock has been an outstanding investment for our shareholders," said Mr. Allison. "We believe the stock split will share the benefits of our success with our current shareholders and broaden the appeal of BB&T stock to additional investors. BB&T's common stock closed at $67.63 per share on June 30, an increase of 50.3% from the closing price one year ago." BB&T completed two acquisitions during the second quarter. On June 18, BB&T purchased Dealers Credit Inc. (DCI), based in Menomonee Falls, Wisconsin. DCI specializes in extending credit to commercial, agricultural, municipal and consumer users for the purchase of lawn care equipment. DCI's operations will complement those of BB&T's current subsidiary, Sheffield Financial Corp., which serves similar markets. On June 30, BB&T acquired W.E. Stanley & Company Inc. (Stanley), of Greensboro, N.C. Stanley is the largest actuarial, consulting and administration firm headquartered in the Carolinas. The acquisition of Stanley will more than double the number of employee benefit plans BB&T administers. "The acquisitions of DCI and Stanley will enable BB&T to increase the number of products and services we offer to existing and potential clients and will support our efforts to expand our fee-based business lines," said Mr. Allison. On May 28, BB&T received special recognition by the U.S. Small Business Administration for being the No. 1 "small business friendly" bank among the 50 largest U.S. banks. "We place a great deal of emphasis on our relationships with all of our clients and we are pleased to be recognized for our commitment to helping small business clients succeed," said Mr. Allison. On June 23, the Board of Directors approved a 12.9% increase in the quarterly cash dividend. The increase, to $.35 per share (the equivalent of $.175 per share after the 2-for-1 stock split becomes effective) marks the 26th consecutive year BB&T has increased the dividend. The cash dividend is payable August 3 to shareholders of record July 10. BB&T had $31.5 billion in assets and 518 banking offices in the Carolinas and Virginia as of June 30, 1998. BB&T's common stock is traded on the New York Stock Exchange under the trading symbol BBK. The closing price of BB&T's common stock on July 9 was $69.13 per share. For additional information about BB&T's financial performance, products and services, please visit our web site at www.BBandT.com. # BB&T's news releases are available at no charge through PR Newswire's Company News On-Call facsimile service. For a menu of BB&T's news releases or to retrieve a specific release call 800-758-5804, extension 809325 ========================================================================== ---------------------------------------------------- QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 3 Investor Relations (336) 733-3132 ========================================================================== ----------------------------------------------------
For the Three Months Ended Increase (Decrease) -------------------------------------------------------------------- (Dollars in thousands, except per share data) 6/30/1998 6/30/1997 $ % - ----------------------------------------------------------------------------------------------------------------------------------- ---------------- INCOME STATEMENT Interest income - taxable equivalent $ 618,774 $ 572,500 $ 46,274 8.1 % Interest expense 304,303 271,255 33,048 12.2 Net interest income - taxable equivalent 314,471 301,245 13,226 4.4 Less: Taxable equivalent adjustment 15,509 13,039 2,470 18.9 Net interest income 298,962 288,206 10,756 3.7 Provision for loan & lease losses 21,000 24,865 (3,865) (15.5) Net interest income after provision for loan & lease losses 277,962 263,341 14,621 5.6 Noninterest income 129,583 96,855 32,728 33.8 Noninterest expense 229,410 205,180 24,230 11.8 Income before income taxes 178,135 155,016 23,119 14.9 Provision for income taxes 56,087 53,155 2,932 5.5 Net income $ 122,048 $ 101,861 $ 20,187 19.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA Basic earnings $ .87 $ .72 $ .15 20.8 % Diluted earnings .85 .71 .14 19.7 Weighted average shares - Basic 140,695,193 141,786,314 Diluted 143,670,628 144,340,389 Dividends paid on common shares $ .31 $ .27 $ .04 14.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS Return on average assets 1.56 % 1.44 % Return on average equity 20.23 17.92 Net yield on earning assets (taxable equivalent) 4.27 4.52 Efficiency (taxable equivalent) * 51.7 51.2 - ----------------------------------------------------------------------------------------------------------------------------------- NOTES: Applicable ratios are annualized. * Excludes securities gains (losses), foreclosed property expense & nonrecurring items.
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For the Six Months Ended Increase (Decrease) -------------------------------------------------------------------- (Dollars in thousands, except per share data) 6/30/1998 6/30/1997 $ % - ----------------------------------------------------------------------------------------------------------------------------------- ---------------- INCOME STATEMENT Interest income - taxable equivalent $ 1,226,076 $ 1,109,910 $ 116,166 10.5 % Interest expense 600,432 524,169 76,263 14.5 Net interest income - taxable equivalent 625,644 585,741 39,903 6.8 Less: Taxable equivalent adjustment 30,586 23,466 7,120 30.3 Net interest income 595,058 562,275 32,783 5.8 Provision for loan & lease losses 43,000 45,985 (2,985) (6.5) Net interest income after provision for loan & lease losses 552,058 516,290 35,768 6.9 Noninterest income 250,680 195,004 55,676 28.6 Noninterest expense 458,408 403,854 54,554 13.5 Income before income taxes 344,330 307,440 36,890 12.0 Provision for income taxes 108,564 105,501 3,063 2.9 Net income $ 235,766 $ 201,939 $ 33,827 16.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA Basic earnings $ 1.67 $ 1.42 $ .25 17.6 % Diluted earnings 1.63 1.40 .23 16.4 Weighted average shares - Basic 141,376,803 142,064,939 Diluted 144,370,350 144,582,665 Dividends paid on common shares $ .62 $ .54 $ .08 14.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS Return on average assets 1.53 % 1.47 % Return on average equity 19.50 17.95 Net yield on earning assets (taxable equivalent) 4.32 4.49 Efficiency (taxable equivalent) * 51.5 51.6 - ----------------------------------------------------------------------------------------------------------------------------------- For the Six Months Ended Increase (Decrease) -------------------------------------------------------------------- (Dollars in thousands, except per share data) 6/30/1998 6/30/1997 $ % - ----------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 1,226,076 $ 1,109,910 $ 116,166 10.5 % Interest expense 600,432 524,169 76,263 14.5 Net interest income - taxable equivalent 625,644 585,741 39,903 6.8 Less: Taxable equivalent adjustment 30,586 23,466 7,120 30.3 Net interest income 595,058 562,275 32,783 5.8 Provision for loan & lease losses 43,000 45,985 (2,985) (6.5) Net interest income after provision for loan & lease losses 552,058 516,290 35,768 6.9 Noninterest income 250,680 195,004 55,676 28.6 Noninterest expense 450,593 403,854 46,739 11.6 Income before income taxes 352,145 307,440 44,705 14.5 Provision for income taxes 110,356 105,501 4,855 4.6 Net income excluding nonrecurring items 241,789 201,939 39,850 19.7 Nonrecurring items, net of tax 6,023 - 6,023 NM Net income $ 235,766 $ 201,939 $ 33,827 16.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ 1.71 $ 1.42 $ .29 20.4 % Diluted earnings 1.67 1.40 .27 19.3 Weighted average shares - Basic 141,376,803 142,064,939 Diluted 144,370,350 144,582,665 Dividends paid on common shares $ .62 $ .54 $ .08 14.8 % - ----------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.57 % 1.47 % Return on average equity 20.00 17.95 Net yield on earning assets (taxable equivalent) 4.32 4.49 Efficiency (taxable equivalent) * 51.5 51.6 - ----------------------------------------------------------------------------------------------------------------------------------- NOTES: Applicable ratios are annualized. * Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods. NM - not meaningful.
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As of / For the Six Months Ended Increase (Decrease) -------------------------------------------------------------------- (Dollars in thousands) 6/30/1998 6/30/1997 $ % - ----------------------------------------------------------------------------------------------------------------------------------- SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 7,334,838 $ 7,326,245 $ 8,593 .1 % Loans & leases 21,969,960 19,790,766 2,179,194 11.0 Allowance for loan & lease losses 289,310 260,968 28,342 10.9 Other earning assets 136,544 32,667 103,877 318.0 Total earning assets 29,362,042 27,113,476 2,248,566 8.3 Total assets 31,543,525 28,960,327 2,583,198 8.9 Noninterest-bearing deposits 2,849,103 2,766,559 82,544 3.0 Interest-bearing deposits 18,280,937 18,025,349 255,588 1.4 Total deposits 21,130,040 20,791,908 338,132 1.6 Short-term borrowed funds 3,355,421 2,600,430 754,991 29.0 Long-term debt 4,146,006 2,947,718 1,198,288 40.7 Total interest-bearing liabilities 25,782,364 23,573,497 2,208,867 9.4 Total shareholders' equity $ 2,420,938 $ 2,274,730 $ 146,208 6.4 % - ----------------------------------------------------------------------------------------------------------------------------------- Average balances Securities, at amortized cost $ 7,508,529 $ 6,991,476 $ 517,053 7.4 % Loans & leases 21,442,151 19,115,392 2,326,759 12.2 Other earning assets 147,606 60,584 87,022 143.6 Total earning assets 29,098,286 26,167,452 2,930,834 11.2 Total assets 31,112,193 27,743,296 3,368,897 12.1 Noninterest-bearing deposits 2,673,572 2,488,792 184,780 7.4 Interest-bearing deposits 18,035,957 17,552,049 483,908 2.8 Total deposits 20,709,529 20,040,841 668,688 3.3 Short-term borrowed funds 3,704,908 2,515,564 1,189,344 47.3 Long-term debt 3,754,315 2,587,790 1,166,525 45.1 Total interest-bearing liabilities 25,495,180 22,655,403 2,839,777 12.5 Total shareholders' equity $ 2,438,296 $ 2,268,947 $ 169,349 7.5 % - ----------------------------------------------------------------------------------------------------------------------------------- NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized.
========================================================================== ---------------------------------------------------- QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 6 Investor Relations (336) 733-3132 ========================================================================== ---------------------------------------------------- As of / For the Quarter Ended ------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- (Dollars in thousands, except per share data) 6/30/1998 3/31/1998 12/31/1997 9/30/1997 6/30/1997 - ----------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENTS EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent Interest & fees on loans & leases $ 489,784 $ 477,510 $ 465,615 $ 456,979 $ 450,016 Interest & dividends on securities 126,920 127,634 124,811 123,937 121,507 Interest on short-term investments 2,070 2,158 1,007 476 977 Total interest income - taxable equivalent 618,774 607,302 591,433 581,392 572,500 Interest expense Interest on deposits 198,295 195,009 194,421 195,164 196,134 Interest on short-term borrowed funds 52,310 47,261 42,916 39,392 35,856 Interest on long-term debt 53,698 53,859 50,446 46,120 39,265 Total interest expense 304,303 296,129 287,783 280,676 271,255 Net interest income - taxable equivalent 314,471 311,173 303,650 300,716 301,245 Less: Taxable equivalent adjustment 15,509 15,077 15,233 14,169 13,039 Net interest income 298,962 296,096 288,417 286,547 288,206 Provision for loan & lease losses 21,000 22,000 22,244 21,745 24,865 Net interest income after provision for loan & lease losses 277,962 274,096 266,173 264,802 263,341 Noninterest income Service charges on deposits 41,866 41,090 37,486 36,705 37,993 Mortgage banking activities 22,688 15,263 13,381 13,439 11,093 Trust revenue 8,006 7,819 8,097 8,498 8,504 Agency insurance commissions 12,180 14,036 9,664 9,775 9,316 Other insurance commissions 3,210 2,979 3,564 2,696 3,347 Other nondeposit fees & commissions 27,099 24,572 24,434 22,614 20,470 Securities gains (losses), net 1,188 2,460 1,672 991 (933) Other income 13,346 12,878 13,043 7,694 7,065 Total noninterest income 129,583 121,097 111,341 102,412 96,855 Noninterest expense Personnel expense 116,064 113,110 106,793 104,524 104,084 Occupancy & equipment expense 39,064 36,609 35,688 35,033 33,821 Foreclosed property expense 637 831 951 709 763 Amortization of intangibles & servicing rights 10,996 10,135 7,160 6,095 5,720 Other noninterest expense 62,649 60,498 58,927 59,051 60,792 Total noninterest expense 229,410 221,183 209,519 205,412 205,180 Income before income taxes 178,135 174,010 167,995 161,802 155,016 Provision for income taxes 56,087 54,269 54,735 54,430 53,155 Net income $ 122,048 $ 119,741 $ 113,260 $ 107,372 $ 101,861 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .87 $ .84 $ .81 $ .77 $ .72 Diluted earnings .85 .83 .79 .75 .71 Dividends paid on common shares .31 .31 .31 .31 .27 Book value per common share $ 17.23 $ 17.22 $ 16.93 $ 16.02 $ 16.12 - -----------------------------------------------------------------------------------------------------------------------------------
========================================================================== ---------------------------------------------------- QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 7 Investor Relations (336) 733-3132 ========================================================================== ----------------------------------------------------
As of / For the Quarter Ended ------------------------------------------------------------------------------------- (Dollars in thousands) 6/30/1998 3/31/1998 12/31/1997 9/30/1997 6/30/1997 - ----------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.56 % 1.58 % 1.53 % 1.49 % 1.44 % Return on average equity 20.23 19.77 19.66 18.82 17.92 Net yield on earning assets (taxable equivalent) 4.27 4.36 4.36 4.44 4.52 Efficiency (taxable equivalent) * 51.7 51.3 50.5 50.9 51.2 Noninterest income as a percentage of total income (taxable equivalent) * 29.0 27.6 26.5 25.2 24.5 Equity as a percentage of total assets end of period 7.7 7.7 7.8 7.8 7.9 Average earning assets as a percentage of average total assets 93.6 93.4 93.8 94.2 94.3 Average loans & leases as a percentage of average deposits 104.3 102.7 101.1 98.4 96.0 - ----------------------------------------------------------------------------------------------------------------------------------- CASH BASIS PERFORMANCE** Net income excluding nonrecurring items $ 127,265 $ 124,763 $ 117,065 $ 110,566 $ 104,891 Diluted earnings per share .89 .86 .82 .77 .73 Return on average tangible assets 1.63 % 1.66 % 1.59 % 1.54 % 1.49 % Return on average tangible equity 23.29 22.70 21.85 20.59 19.41 Efficiency ratio (taxable equivalent) * 50.4 50.0 49.5 50.1 50.5 - ----------------------------------------------------------------------------------------------------------------------------------- SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 7,334,838 $ 7,779,747 $ 7,414,875 $ 7,178,296 $ 7,326,245 Loans & leases 21,969,960 21,532,325 20,933,429 19,852,846 19,790,766 Allowance for loan & lease losses 289,310 282,418 275,404 266,078 260,968 Other earning assets 136,544 128,356 180,310 38,685 32,667 Total earning assets 29,362,042 29,361,894 28,448,103 26,998,601 27,113,476 Total assets 31,543,525 31,535,710 30,642,799 28,698,293 28,960,327 Noninterest-bearing deposits 2,849,103 2,773,106 2,833,238 2,671,187 2,766,559 Interest-bearing deposits 18,280,937 18,021,702 18,114,939 17,408,147 18,025,349 Total deposits 21,130,040 20,794,808 20,948,177 20,079,334 20,791,908 Short-term borrowed funds 3,355,421 4,040,166 3,276,177 2,660,641 2,600,430 Long-term debt 4,146,006 3,768,556 3,575,517 3,303,304 2,947,718 Total interest-bearing liabilities 25,782,364 25,830,424 24,966,633 23,372,092 23,573,497 Total shareholders' equity 2,420,938 2,440,046 2,399,827 2,243,506 2,274,730 Goodwill 234,635 214,408 206,008 110,548 109,095 Core deposit & other intangibles 6,502 6,461 6,837 7,213 7,622 Total intangibles 241,137 220,869 212,845 117,761 116,717 Mortgage servicing rights 87,519 72,353 68,780 64,911 61,566 Negative goodwill $ 29,871 $ 31,431 $ 32,992 $ 34,494 $ 36,054 - ----------------------------------------------------------------------------------------------------------------------------------- Average balances Securities, at amortized cost $ 7,533,537 $ 7,483,243 $ 7,213,182 $ 7,209,155 $ 7,157,151 Loans & leases 21,792,721 21,087,685 20,287,804 19,735,137 19,487,514 Other earning assets 147,973 147,235 79,111 39,908 60,720 Total earning assets 29,474,231 28,718,163 27,580,097 26,984,200 26,705,385 Total assets 31,477,732 30,742,591 29,402,237 28,647,083 28,305,003 Noninterest-bearing deposits 2,734,932 2,611,530 2,641,340 2,576,609 2,549,196 Interest-bearing deposits 18,157,130 17,913,437 17,429,598 17,475,263 17,758,552 Total deposits 20,892,062 20,524,967 20,070,938 20,051,872 20,307,748 Short-term borrowed funds 3,866,271 3,541,752 3,154,831 2,900,917 2,676,482 Long-term debt 3,766,879 3,741,611 3,406,587 3,109,329 2,709,641 Total interest-bearing liabilities 25,790,280 25,196,800 23,991,016 23,485,509 23,144,675 Total shareholders' equity $ 2,420,172 $ 2,456,621 $ 2,285,107 $ 2,263,096 $ 2,280,193 - ----------------------------------------------------------------------------------------------------------------------------------- RISK-BASED CAPITAL*** Risk-based capital: Tier 1 $ 2,122,657 $ 2,168,228 $ 2,115,402 $ 2,057,531 $ 2,104,154 Total 3,234,427 2,923,652 2,867,562 2,808,481 2,840,013 Risk-based capital ratios: Tier 1 10.5 % 10.4 % 10.3 % 10.1 % 10.9 % Total 16.0 14.1 14.0 13.7 14.8 Leverage capital ratio 6.8 7.1 7.2 7.2 7.5 - ----------------------------------------------------------------------------------------------------------------------------------- NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. * Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods. ** Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash basis performance ratios exclude the effect of amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity. *** Current quarter estimated.
========================================================================== ---------------------------------------------------- QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 8 Investor Relations (336) 733-3132 ========================================================================== ---------------------------------------------------- As of / For the Quarter Ended ------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- (Dollars in thousands, except per share data) 6/30/1998 3/31/1998 12/31/1997 9/30/1997 6/30/1997 - ----------------------------------------------------------------------------------------------------------------------------------- ASSET QUALITY ANALYSIS Allowance For Loan & Lease Losses Beginning balance $ 282,418 $ 275,404 $ 266,078 $ 260,968 $ 252,245 Allowance for acquired loans 1,269 - 12,012 1,690 - Provision for loan & lease losses 21,000 22,000 29,796 21,745 24,865 Charge-offs (20,381) (20,396) (36,117) (22,907) (20,976) Recoveries 5,004 5,410 3,635 4,582 4,834 =================================================================================================================================== Ending balance $ 289,310 $ 282,418 $ 275,404 $ 266,078 $ 260,968 =================================================================================================================================== Nonperforming Assets Nonaccrual loans & leases $ 78,373 $ 92,267 $ 98,891 $ 74,372 $ 64,858 Foreclosed real estate 19,476 15,477 20,937 16,531 15,476 Other foreclosed property 13,911 14,603 13,986 13,914 13,262 Restructured loans 528 - 1,377 1,532 1,551 =================================================================================================================================== Nonperforming assets $ 112,288 $ 122,347 $ 135,191 $ 106,349 $ 95,147 =================================================================================================================================== Loans 90 days or more past due & still accruing $ 48,356 $ 41,919 $ 44,213 $ 39,958 $ 37,361 =================================================================================================================================== Asset Quality Ratios Nonaccrual loans & leases as a percentage of total loans & leases .36 % .43 % .47 % .37 % .33 % Nonperforming assets as a percentage of: Total assets .36 .39 .44 .37 .33 Loans & leases plus foreclosed property .51 .57 .64 .53 .48 Net charge-offs as a percentage of average loans & leases .28 .29 .64 .37 .33 Allowance for loan & lease losses as a percentage of loans & leases 1.32 1.31 1.32 1.34 1.32 Ratio of allowance for loan & lease losses to: Net charge-offs 4.69 x 4.65 x 2.14 x 3.66 x 4.03 x Nonaccrual and restructured loans & leases 3.67 3.06 2.75 3.51 3.93 - --------------------------------------------------------------------------------------------------------------------------------- MEMO ITEMS Unrealized appreciation on securities available for sale, net of tax $ 49,166 $ 47,712 $ 48,918 $ 43,217 $ 21,776 Common stock prices (daily close): High 68.13 67.69 65.00 55.13 47.13 Low 64.06 58.06 51.94 45.31 35.75 End of period 67.63 67.69 64.06 53.44 45.00 Weighted average shares - Basic 140,695,193 142,065,987 140,094,822 140,057,040 141,786,314 Diluted 143,670,628 145,077,846 143,074,059 142,979,143 144,340,389 End of period shares outstanding 140,504,072 141,681,441 141,763,220 140,020,072 141,129,701 End of period banking offices 518 521 526 506 593 - --------------------------------------------------------------------------------------------------------------------------------- As of / For the Six Months Ended Increase / (Decrease) ------------------------------------------------------------------ (Dollars in thousands) 6/30/1998 6/30/1997 $ % - --------------------------------------------------------------------------------------------------------------------------------- Allowance For Loan & Lease Losses Beginning balance $ 275,404 $ 239,726 $ 35,678 14.9 % Allowance for acquired loans 1,269 3,811 (2,542) (66.7) Provision for loan & lease losses 43,000 45,985 (2,985) (6.5) Charge-offs (40,777) (38,423) 2,354 6.1 Recoveries 10,414 9,869 545 5.5 =================================================================================================================================== Ending balance $ 289,310 $ 260,968 $ 33,050 12.7 % =================================================================================================================================== Asset Quality Ratios Net charge-offs as a percentage of average loans & leases .29 % .30 % Ratio of allowance for loan & lease losses to net charge-offs 4.73 4.53 - --------------------------------------------------------------------------------------------------------------------------------- NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized.
========================================================================== ---------------------------------------------------- QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 9 Investor Relations (336) 733-3132 ========================================================================== ----------------------------------------------------
For the Quarter Ended ------------------------------------------------------------------------------------- 6/30/1998 3/31/1998 12/31/1997 9/30/1997 6/30/1997 - ----------------------------------------------------------------------------------------------------------------------------------- INTEREST YIELDS/RATES (Taxable equivalent) Interest income: Securities* 6.74 % 6.84 % 6.90 % 6.86 % 6.80 % Loans & leases 9.01 9.16 9.12 9.20 9.26 Other earning assets 5.61 5.94 5.05 4.73 6.45 ------------------------------------------------------------------------------------------ Total earning assets* 8.41 8.54 8.53 8.57 8.59 ------------------------------------------------------------------------------------------ Interest expense: Interest-bearing deposits 4.38 4.41 4.43 4.43 4.43 Short-term borrowed funds 5.43 5.41 5.40 5.39 5.37 Long-term debt 5.71 5.80 5.90 5.91 5.80 ------------------------------------------------------------------------------------------ Total interest-bearing liabilities 4.73 4.76 4.76 4.74 4.70 ------------------------------------------------------------------------------------------ Net yield on earning assets 4.27 % 4.36 % 4.36 % 4.44 % 4.52 % ========================================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- NOTE: *Yields calculated based on securities at amortized cost. As of ------------------------------------------------------------------ (Dollars in thousands) 6/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- DERIVATIVES: INTEREST RATE SWAPS, CAPS, FLOORS & COLLARS Notional Receive Pay Unrealized Type Amount Rate Rate Gains (Losses) - ----------------------------------------------------------------------------------------------------------------------------------- Receive fixed swaps $ 1,311,000 6.39 % 5.69 % $ 28,672 Pay fixed swaps 1,082,146 5.68 5.71 (740) Basis swaps 100,000 5.77 5.69 27 Caps & floors 607,250 -- -- 1,167 =================================================================================================================================== Total $ 3,100,396 6.06 % 5.70 % $ 29,126 =================================================================================================================================== One Year One to After Contractual Maturity Schedule Total or Less Five Years Five Years - ----------------------------------------------------------------------------------------------------------------------------------- Receive fixed swaps $ 1,311,000 $ 751,000 $ 300,000 $ 260,000 Pay fixed swaps 1,082,146 1,011,000 63,946 7,200 Basis swaps 100,000 100,000 - - Caps, floors & collars 607,250 250,000 357,250 - =================================================================================================================================== Total $ 3,100,396 $ 2,112,000 $ 721,196 $ 267,200 ===================================================================================================================================
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/ SHERRY A. KELLETT Sherry A. Kellett Senior Executive Vice President and Controller (Principal Accounting Officer) Date: July 13, 1998 -----END PRIVACY-ENHANCED MESSAGE-----