-----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, QjkAJEpEbuVGaduPSgJ/XB5uhHFzRHiQz8nEexGgvuLbNiQQmpPcgzJEjOp15A/i mf7zcQKeGIb7rkXabQSGoQ== 0000092230-98-000037.txt : 19981015 0000092230-98-000037.hdr.sgml : 19981015 ACCESSION NUMBER: 0000092230-98-000037 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981014 ITEM INFORMATION: FILED AS OF DATE: 19981014 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: 98725389 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 THIRD QUARTER EARNINGS RELEASE 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) October 14, 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 third quarter of 1998, including sections distributed to the media and a supplement distributed to analysts. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued October 13, 1998 October 13, 1998 FOR IMMEDIATE RELEASE 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 24.3% increase in 3rd quarter earnings per share WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBK) reported today that earnings for the third quarter of 1998 totaled $132.1 million, or $.46 per diluted share, before after tax nonrecurring charges of $4.9 million associated with completing the merger with Franklin Bancorporation, Inc., of Washington, D.C. Excluding the expenses related to the Franklin merger, BB&T's earnings per share increased 24.3% compared to the third quarter of 1997. Results from 1997 exclude nonrecurring charges primarily associated with completing the merger with United Carolina Bancshares Corporation (UCB). Recurring net income increased 21.3% compared to the same period a year ago. BB&T's current quarter results produced a return on average assets of 1.64% and a return on average equity of 21.41%, compared to prior year ratios of 1.48% and 18.80%, respectively. BB&T's "cash basis" operating 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 September 30, 1998, demonstrated significant improvement compared to the third quarter of 1997. Cash basis net income, excluding nonrecurring items, totaled $137.8 million, or $.48 per diluted share, for the third quarter of 1998, an increase of 22.9% and 23.1%, respectively, over comparable prior year amounts. Cash basis earnings generated a return on average tangible assets of 1.72% and a return on average tangible equity of 24.87%. For the nine months ended September 30, 1998, BB&T's net income was $376.3 million, or $1.29 per diluted share, before nonrecurring charges totaling $11.0 million after tax associated with the acquisition of Life Bancorp, Inc., of Norfolk, Va., in the first quarter of the year and the merger with Franklin, completed in the current quarter. These earnings represent an increase of 20.0% and 20.6%, respectively, over the $313.7 million, or $1.07 per diluted share, earned in the first nine months of 1997. MORE Including the merger-related expenses, net income for the third quarter of 1998 increased to $127.2 million, or $.44 per diluted share, compared to $66.2 million, or $.23 per diluted share, for the third quarter in 1997, which included nonrecurring charges of $42.7 million after tax primarily in connection with completing the merger with UCB. Net income for the nine months ended September 30, 1998, increased 34.8% to $365.3 million, or $1.25 per diluted share, compared to $271.0 million, or $.93 per diluted share, for the first nine months of 1997. "It is a pleasure to report outstanding third quarter earnings and excellent progress in our efforts to grow our franchise," said Chairman and Chief Executive Officer John A. Allison. "We benefited from a strong performance by our noninterest income-generating business segments, improvement in our net interest margin, which was 4.40% for the third quarter, and better overall management of noninterest expenses. Noninterest income grew 33.1% in the third quarter compared to the same period in 1997 and our cash basis efficiency ratio improved to 49.8%, which represents a significant achievement for BB&T. This level of efficiency places BB&T firmly in the top 10% of bank holding companies." BB&T completed two acquisitions during the third quarter. On July 1, BB&T completed its merger with Franklin, which has total assets of $740 million and operates nine full service branches. The acquisition marked BB&T's initial entry into the metro Washington, D.C. market. On September 30, BB&T acquired Maryland Federal Bancorp, Inc., of Hyattsville, Md. Maryland Federal, with $1.2 billion in assets, conducts operations through 28 branches in Maryland and the greater Washington, D.C. area. On August 10, BB&T announced plans to acquire Scott & Stringfellow Financial Inc., an investment banking firm based in Richmond, Va. Scott & Stringfellow, with 31 offices in the Carolinas, Virginia and West Virginia, offers a wide range of investment-related services while managing more than $10 billion in assets for its corporate and individual customers. On August 26, BB&T announced that it will acquire MainStreet Financial Corporation of Martinsville, Va. MainStreet has approximately $2 billion in assets and operates 49 banking offices: 46 in Virginia and three in Maryland. This merger will significantly expand BB&T's presence in Virginia and metropolitan Washington, D.C., where BB&T will operate 137 banking offices and have approximately $7.4 billion in assets. "These transactions enhance our market presence in very strong areas in Virginia, Maryland and Washington, D.C.," said Mr. Allison. "These markets are among the nation's leaders in per capita income, education, employment and population growth. We are excited about our prospects for growth and increased profitability following these acquisitions." BB&T had $33.9 billion in assets and 540 banking offices in the Carolinas, Virginia, Maryland and Washington, D.C., as of September 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 October 9 was $28.00 per share. QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 3 Investor Relations FAX(336) 733-3132 For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/1998 9/30/1997 $ % INCOME STATEMENT Interest income - taxable equivalent $ 639,144 $ 590,527 $ 48,617 8.2 % Interest expense 309,119 284,195 24,924 8.8 Net interest income - taxable equivalent 330,025 306,332 23,693 7.7 Less: Taxable equivalent adjustment 16,174 14,290 1,884 13.2 Net interest income 313,851 292,042 21,809 7.5 Provision for loan & lease losses 20,015 21,845 (1,830) (8.4) Net interest income after provision for loan & lease losses 293,836 270,197 23,639 8.7 Noninterest income 137,091 150,763 (13,672) (9.1) Noninterest expense 244,365 314,966 (70,601) (22.4) Income before income taxes 186,562 105,994 80,568 76.0 Provision for income taxes 59,354 39,759 19,595 49.3 Net income $ 127,208 $ 66,235 $ 60,973 92.1 % PER SHARE DATA Basic earnings $ .45 $ .23 $ .22 95.7 % Diluted earnings .44 .23 .21 91.3 Weighted average shares - Basic 284,261,612 285,456,768 Diluted 289,997,773 290,857,220 Dividends paid on common shares $ .175 $ .155 $ .02 12.9 % PERFORMANCE RATIOS Return on average assets 1.58 % .90 % Return on average equity 20.62 11.43 Net yield on earning assets (taxable equivalent) 4.40 4.45 Efficiency (taxable equivalent) * 51.1 51.0 For the Nine Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 9/30/1998 9/30/1997 $ % INCOME STATEMENT Interest income - taxable equivalent $ 1,886,854 $ 1,717,535 $ 169,319 9.9 % Interest expense 918,007 815,083 102,924 12.6 Net interest income - taxable equivalent 968,847 902,452 66,395 7.4 Less: Taxable equivalent adjustment 47,104 37,918 9,186 24.2 Net interest income 921,743 864,534 57,209 6.6 Provision for loan & lease losses 64,310 68,015 (3,705) (5.4) Net interest income after provision for loan & lease losses 857,433 796,519 60,914 7.6 Noninterest income 388,970 346,695 42,275 12.2 Noninterest expense 711,722 725,178 (13,456) (1.9) Income before income taxes 534,681 418,036 116,645 27.9 Provision for income taxes 169,349 147,058 22,291 15.2 Net income $ 365,332 $ 270,978 $ 94,354 34.8 % PER SHARE DATA Basic earnings $ 1.28 $ .94 $ .34 36.2 % Diluted earnings 1.25 .93 .32 34.4 Weighted average shares - Basic 286,410,415 288,114,906 Diluted 292,505,930 292,933,116 Dividends paid on common shares $ .485 $ .425 $ .06 14.1 % PERFORMANCE RATIOS Return on average assets 1.54 % 1.27 % Return on average equity 19.78 15.75 Net yield on earning assets (taxable equivalent) 4.35 4.48 Efficiency (taxable equivalent) * 51.5 51.4 NOTES: Applicable ratios are annualized. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998. * Excludes securities gains (losses), foreclosed property expense & nonrecurring items.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 4 Investor Relations FAX(336) 733-3132 For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/1998 9/30/1997 $ % INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 639,144 $ 590,527 $ 48,617 8.2 % Interest expense 309,119 284,195 24,924 8.8 Net interest income - taxable equivalent 330,025 306,332 23,693 7.7 Less: Taxable equivalent adjustment 16,174 14,290 1,884 13.2 Net interest income 313,851 292,042 21,809 7.5 Provision for loan & lease losses 20,015 21,845 (1,830) (8.4) Net interest income after provision for loan & lease losses 293,836 270,197 23,639 8.7 Noninterest income 137,091 102,980 34,111 33.1 Noninterest expense 237,825 208,861 28,964 13.9 Income before income taxes 193,102 164,316 28,786 17.5 Provision for income taxes 60,965 55,403 5,562 10.0 Net income excluding nonrecurring items 132,137 108,913 23,224 21.3 Nonrecurring items, net of tax 4,929 42,678 (37,749) NM Net income $ 127,208 $ 66,235 60,973 92.1 % PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .46 $ .38 $ .08 21.1 % Diluted earnings .46 .37 .09 24.3 Weighted average shares - Basic 284,261,612 285,456,768 Diluted 289,997,773 290,857,220 Dividends paid on common shares $ .175 $ .155 $ .02 12.9 % PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.64 % 1.48 % Return on average equity 21.41 18.80 Net yield on earning assets (taxable equivalent) 4.40 4.45 Efficiency (taxable equivalent) * 51.1 51.0 For the Nine Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 9/30/1998 9/30/1997 $ % INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 1,886,854 $ 1,717,535 $ 169,319 9.9 % Interest expense 918,007 815,083 102,924 12.6 Net interest income - taxable equivalent 968,847 902,452 66,395 7.4 Less: Taxable equivalent adjustment 47,104 37,918 9,186 24.2 Net interest income 921,743 864,534 57,209 6.6 Provision for loan & lease losses 64,310 68,015 (3,705) (5.4) Net interest income after provision for loan & lease losses 857,433 796,519 60,914 7.6 Noninterest income 388,970 298,912 90,058 30.1 Noninterest expense 697,367 619,073 78,294 12.6 Income before income taxes 549,036 476,358 72,678 15.3 Provision for income taxes 172,752 162,702 10,050 6.2 Net income excluding nonrecurring items 376,284 313,656 62,628 20.0 Nonrecurring items, net of tax 10,952 42,678 (31,726) NM Net income $ 365,332 $ 270,978 $ 94,354 34.8 % PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ 1.31 $ 1.09 $ .22 20.2 % Diluted earnings 1.29 1.07 .22 20.6 Weighted average shares - Basic 286,410,415 288,114,906 Diluted 292,505,930 292,933,116 Dividends paid on common shares $ .485 $ .425 $ .06 14.1 % PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.58 % 1.47 % Return on average equity 20.37 18.23 Net yield on earning assets (taxable equivalent) 4.35 4.48 Efficiency (taxable equivalent) * 51.5 51.4 NOTES: Applicable ratios are annualized. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998. * Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods. NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 5 Investor Relations FAX(336) 733-3132
As of / For the Nine Months Ended Increase (Decrease) (Dollars in thousands) 9/30/1998 9/30/1997 $ % SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 8,270,849 $ 7,354,988 $ 915,861 12.5 % Loans & leases 23,138,218 20,119,225 3,018,993 15.0 Allowance for loan & lease losses 313,769 270,068 43,701 16.2 Other earning assets 241,785 70,314 171,471 243.9 Total earning assets 31,498,647 27,472,966 4,025,681 14.7 Total assets 33,875,788 29,205,372 4,670,416 16.0 Noninterest-bearing deposits 3,026,236 2,776,847 249,389 9.0 Interest-bearing deposits 19,071,419 17,652,913 1,418,506 8.0 Total deposits 22,097,655 20,429,760 1,667,895 8.2 Short-term borrowed funds 4,087,763 2,827,590 1,260,173 44.6 Long-term debt 4,386,201 3,251,531 1,134,670 34.9 Total interest-bearing liabilities 27,545,383 23,732,034 3,813,349 16.1 Total shareholders' equity $ 2,738,472 $ 2,280,803 $ 457,669 20.1 % Average balances Securities, at amortized cost $ 7,616,748 $ 7,239,229 $ 377,519 5.2 % Loans & leases 21,924,505 19,566,542 2,357,963 12.1 Other earning assets 186,068 80,520 105,548 131.1 Total earning assets 29,727,321 26,886,291 2,841,030 10.6 Total assets 31,781,170 28,517,575 3,263,595 11.4 Noninterest-bearing deposits 2,846,159 2,617,205 228,954 8.7 Interest-bearing deposits 18,356,880 17,769,602 587,278 3.3 Total deposits 21,203,039 20,386,807 816,232 4.0 Short-term borrowed funds 3,732,965 2,770,875 962,090 34.7 Long-term debt 3,858,294 2,727,802 1,130,492 41.4 Total interest-bearing liabilities 25,948,139 23,268,279 2,679,860 11.5 Total shareholders' equity $ 2,469,469 $ 2,300,780 $ 168,689 7.3 % NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 6 Investor Relations FAX(336) 733-3132 As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/1998 6/30/1998 3/31/1998 12/31/1997 9/30/1997 INCOME STATEMENTS EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent Interest & fees on loans & leases $ 510,077 $ 497,138 $ 484,365 $ 472,183 $ 463,098 Interest & dividends on securities 127,019 129,900 130,509 127,542 126,630 Interest on short-term investments 2,048 2,801 2,997 1,761 799 Total interest income - taxable equivalent 639,144 629,839 617,871 601,486 590,527 Interest expense Interest on deposits 202,862 201,654 198,216 197,319 197,722 Interest on short-term borrowed funds 46,501 53,217 48,244 44,115 40,353 Interest on long-term debt 59,756 53,698 53,859 50,446 46,120 Total interest expense 309,119 308,569 300,319 291,880 284,195 Net interest income - taxable equivalent 330,025 321,270 317,552 309,606 306,332 Less: Taxable equivalent adjustment 16,174 15,692 15,238 15,369 14,290 Net interest income 313,851 305,578 302,314 294,237 292,042 Provision for loan & lease losses 20,015 21,955 22,340 22,443 21,845 Net interest income after provision for loan & lease losses 293,836 283,623 279,974 271,794 270,197 Noninterest income Service charges on deposits 42,854 42,254 41,466 37,844 37,087 Mortgage banking activities 22,485 22,688 15,263 13,381 13,439 Trust revenue 8,997 8,006 7,819 8,097 8,498 Agency insurance commissions 12,346 12,180 14,036 9,664 9,775 Other insurance commissions 2,798 3,210 2,979 3,564 2,696 Other nondeposit fees & commissions 29,760 27,457 24,837 24,729 22,870 Securities gains, net 2,064 1,188 2,460 1,696 1,016 Other income 15,787 13,253 12,783 12,946 7,599 Total noninterest income 137,091 130,236 121,643 111,921 102,980 Noninterest expense Personnel expense 120,145 118,182 115,051 108,771 106,337 Occupancy & equipment expense 39,518 39,971 37,083 36,115 35,556 Foreclosed property expense 217 635 828 948 707 Amortization of intangibles & servicing rights 11,058 11,027 10,167 7,191 6,129 Other noninterest expense 66,887 64,883 61,715 60,231 60,132 Total noninterest expense 237,825 234,698 224,844 213,256 208,861 Income before income taxes 193,102 179,161 176,773 170,459 164,316 Provision for income taxes 60,965 56,478 55,309 55,576 55,403 Net income $ 132,137 $ 122,683 $ 121,464 $ 114,883 $ 108,913 PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .46 $ .43 $ .42 $ .40 $ .38 Diluted earnings .46 .42 .41 .39 .37 Dividends paid .175 .155 .155 .155 .155 Book value $ 9.42 $ 8.62 $ 8.62 $ 8.46 $ 8.01 NOTES: Applicable ratios are annualized. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 7 Investor Relations FAX(336) 733-3132 As of / For the Quarter Ended
(Dollars in thousands) 9/30/1998 6/30/1998 3/31/1998 12/31/1997 9/30/1997 PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.64 % 1.53 % 1.57 % 1.52 % 1.48 % Return on average equity 21.41 19.97 19.73 19.62 18.80 Net yield on earning assets (taxable equivalent) 4.40 4.29 4.37 4.37 4.45 Efficiency (taxable equivalent) * 51.1 52.0 51.3 50.6 51.0 Noninterest income as a percentage of total income (taxable equivalent) * 29.0 28.7 27.3 26.3 25.0 Equity as a percentage of total assets end of period 8.1 7.7 7.7 7.8 7.8 Average earning assets as a percentage of average total assets 93.5 93.7 93.4 93.8 94.2 Average loans & leases as a percentage of average deposits 104.5 103.6 102.1 100.5 98.0 CASH BASIS PERFORMANCE** Net income excluding nonrecurring items $ 137,769 $ 127,931 $ 126,517 $ 118,719 $ 112,141 Diluted earnings per share .48 .44 .43 .41 .39 Return on average tangible assets 1.72 % 1.61 % 1.65 % 1.58 % 1.53 % Return on average tangible equity 24.87 22.97 22.62 21.77 20.55 Efficiency ratio (taxable equivalent) * 49.8 50.8 50.1 49.6 50.2 SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 8,270,849 $ 7,539,724 $ 7,969,566 $ 7,594,263 $ 7,354,988 Loans & leases 23,138,218 22,288,027 21,839,178 21,233,870 20,119,225 Allowance for loan & lease losses 313,769 294,226 286,742 279,596 270,068 Other earning assets 241,785 187,795 209,915 302,867 70,314 Total earning assets 31,498,647 29,935,288 29,939,448 29,049,751 27,472,966 Total assets 33,875,788 32,159,363 32,148,679 31,290,247 29,205,372 Noninterest-bearing deposits 3,026,236 2,998,966 2,906,193 2,973,151 2,776,847 Interest-bearing deposits 19,071,419 18,582,154 18,322,232 18,402,823 17,652,913 Total deposits 22,097,655 21,581,120 21,228,425 21,375,974 20,429,760 Short-term borrowed funds 4,087,763 3,534,220 4,198,477 3,493,199 2,827,590 Long-term debt 4,386,201 4,081,840 3,740,225 3,534,203 3,251,531 Total interest-bearing liabilities 27,545,383 26,198,214 26,260,934 25,430,225 23,732,034 Total shareholders' equity 2,738,472 2,465,782 2,482,561 2,439,110 2,280,803 Goodwill 388,294 235,561 215,365 206,997 111,568 Core deposit & other intangibles 6,180 6,502 6,461 6,837 7,213 Total intangibles 394,474 242,063 221,826 213,834 118,781 Mortgage servicing rights 98,433 87,519 72,353 68,780 64,911 Negative goodwill $ 28,310 $ 29,871 $ 31,431 $ 32,992 $ 34,494 Average balances Securities, at amortized cost $ 7,461,704 $ 7,725,496 $ 7,665,281 $ 7,389,149 $ 7,383,652 Loans & leases 22,271,025 22,105,607 21,387,170 20,561,612 19,989,459 Other earning assets 149,583 201,021 208,245 132,185 62,546 Total earning assets 29,882,312 30,032,124 29,260,696 28,082,946 27,435,657 Total assets 31,952,749 32,068,458 31,315,298 29,939,928 29,124,995 Noninterest-bearing deposits 2,933,474 2,868,428 2,734,387 2,754,793 2,679,346 Interest-bearing deposits 18,384,264 18,468,089 18,216,443 17,698,977 17,720,933 Total deposits 21,317,738 21,336,517 20,950,830 20,453,770 20,400,279 Short-term borrowed funds 3,488,026 4,029,351 3,683,668 3,313,540 3,031,576 Long-term debt 4,167,594 3,700,977 3,701,186 3,358,158 3,068,112 Total interest-bearing liabilities 26,039,884 26,198,417 25,601,297 24,370,675 23,820,621 Total shareholders' equity $ 2,448,113 $ 2,463,748 $ 2,497,084 $ 2,323,200 $ 2,298,912 RISK-BASED CAPITAL*** Risk-based capital: Tier 1 $ 2,244,330 $ 2,166,004 $ 2,209,375 $ 2,153,212 $ 2,093,592 Total 3,334,852 3,291,604 2,968,844 2,909,563 2,848,266 Risk-based capital ratios: Tier 1 10.0 % 10.2 % 10.5 % 10.3 % 10.1 % Total 14.8 15.5 14.0 13.9 13.7 Leverage capital ratio 7.1 6.8 7.1 7.3 7.2 NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998. * 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 FAX(336) 733-3132 As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/1998 6/30/1998 3/31/1998 12/31/1997 9/30/1997 ASSET QUALITY ANALYSIS Allowance For Loan & Lease Losses Beginning balance $ 294,226 $ 286,742 $ 279,596 $ 270,068 $ 264,826 Allowance for acquired loans 15,542 1,269 - 12,012 1,690 Provision for loan & lease losses 20,015 21,955 22,340 29,995 21,845 Charge-offs (21,220) (20,782) (20,681) (36,183) (22,920) Recoveries 5,206 5,042 5,487 3,704 4,627 Ending balance $ 313,769 $ 294,226 $ 286,742 $ 279,596 $ 270,068 Nonperforming Assets Nonaccrual loans & leases $ 83,623 $ 78,919 $ 92,971 $ 99,938 $ 74,735 Foreclosed real estate 20,570 19,476 15,477 20,937 16,531 Other foreclosed property 11,322 13,911 14,603 13,986 13,914 Restructured loans 525 528 - 1,377 1,532 Nonperforming assets $ 116,040 $ 112,834 $ 123,051 $ 136,238 $ 106,712 Loans 90 days or more past due & still accruing $ 46,873 $ 48,947 $ 42,257 $ 44,362 $ 40,075 Asset Quality Ratios Nonaccrual loans & leases as a percentage of total loans & leases .36 % .35 % .43 % .47 % .37 % Nonperforming assets as a percentage of: Total assets .34 .35 .38 .44 .37 Loans & leases plus foreclosed property .50 .51 .56 .64 .53 Net charge-offs as a percentage of average loans & leases .29 .29 .29 .63 .36 Allowance for loan & lease losses as a percentage of loans & leases 1.36 1.32 1.31 1.32 1.34 Ratio of allowance for loan & lease losses to: Net charge-offs 4.94 x 4.66 x 4.65 x 2.17 x 3.72 x Nonaccrual and restructured loans & leases 3.73 3.70 3.08 2.76 3.54 MEMO ITEMS Unrealized appreciation on securities available for sale, net of tax $ 92,472 $ 49,739 $ 48,122 $ 49,368 $ 43,433 Common stock prices (daily close): High 36.03 34.06 33.84 32.50 27.56 Low 28.00 32.03 29.03 25.97 22.66 End of period $ 29.94 $ 33.81 $ 33.84 $ 32.03 $ 26.72 Weighted average shares - Basic 284,261,612 286,202,810 288,816,880 285,598,814 285,456,768 Diluted 289,997,773 292,403,822 295,173,066 291,097,614 290,857,220 End of period shares outstanding* 290,805,799 142,974,787 144,061,025 144,084,236 142,333,251 End of period banking offices 540 524 527 532 512 As of / For the Nine Months Ended Increase / (Decrease) (Dollars in thousands) 9/30/1998 9/30/1997 $ % Allowance For Loan & Lease Losses Beginning balance $ 279,596 $ 243,568 $ 36,028 14.8 % Allowance for acquired loans 16,811 5,501 11,310 205.6 Provision for loan & lease losses 64,310 68,015 (3,705) (5.4) Charge-offs (62,683) (61,646) 1,037 1.7 Recoveries 15,735 14,630 1,105 7.6 Ending balance $ 313,769 $ 270,068 $ 45,775 16.9 % Asset Quality Ratios Net charge-offs as a percentage of average loans & leases .29 % .32 % Ratio of allowance for loan & lease losses to net charge-offs 5.00 x 4.30 x NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998. *End of period shares reflect the 2-for-1 stock split following the August 3, 1998, effective date. Shares reflected prior to the effective date are stated as originally reported.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBK) Senior Vice President (336) 733-3058 Page 9 Investor Relations FAX(336) 733-3132 For the Quarter Ended
9/30/1998 6/30/1998 3/31/1998 12/31/1997 9/30/1997 INTEREST YIELDS/RATES (Taxable equivalent) Interest income: Securities* 6.80 % 6.73 % 6.83 % 6.90 % 6.86 % Loans & leases 9.10 9.01 9.16 9.12 9.21 Other earning assets 5.43 5.59 5.84 5.29 5.07 Total earning assets* 8.51 8.40 8.52 8.52 8.57 Interest expense: Interest-bearing deposits 4.38 4.38 4.41 4.42 4.43 Short-term borrowed funds 5.29 5.30 5.31 5.28 5.28 Long-term debt 5.71 5.81 5.87 5.98 5.98 Total interest-bearing liabilities 4.71 4.72 4.75 4.75 4.74 Net yield on earning assets 4.40 % 4.29 % 4.37 % 4.37 % 4.45 % NOTE: *Yields calculated based on securities at amortized cost.
As of (Dollars in thousands) 9/30/1998 DERIVATIVES: INTEREST RATE SWAPS, CAPS, FLOORS & COLLARS Notional Receive Pay Unrealized Type Amount Rate Rate Gains (Losses) Receive fixed swaps $ 1,110,600 6.45 % 5.64 % $ 52,283 Pay fixed swaps 1,104,298 5.66 5.71 (6,420) Basis swaps 100,000 5.77 5.59 (1) Caps, floors & collars 1,247,250 -- -- 258 Total $ 3,562,148 6.04 % 5.67 % $ 46,120 One Year One to After Contractual Maturity Schedule Total or Less Five Years Five Years Receive fixed swaps $ 1,110,600 $ 550,600 $ 300,000 $ 260,000 Pay fixed swaps 1,104,298 1,010,600 62,820 30,878 Basis swaps 100,000 100,000 -- -- Caps, floors & collars 1,247,250 500,000 747,250 -- Total $ 3,562,148 $ 2,161,200 $ 1,110,070 $ 290,878
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 Executive Vice President and Controller (Principal Accounting Officer) Date: October 14, 1998 -----END PRIVACY-ENHANCED MESSAGE-----