-----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, OLoyeQAZ1ob6Qeny46jUcarCZZJtNeJCTAQAztzAlIbruRZknu/+FFnu7loOVZw8 urU+CXrnBnU/D4l9x5FNEw== 0000092230-99-000018.txt : 19990413 0000092230-99-000018.hdr.sgml : 19990413 ACCESSION NUMBER: 0000092230-99-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990412 ITEM INFORMATION: FILED AS OF DATE: 19990412 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: 99591369 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 EARNINGS RELEASE FOR THE FIRST QUARTER OF 1999 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) April 12, 1999 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 first quarter of 1999, including sections distributed to the media and a supplement distributed to analysts. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued April 12, 1999 BB&T Corporation (NYSE:BBT) reported today that first quarter 1999 earnings totaled $148.8 million, or $.48 per diluted share, before after-tax charges of $10.4 million associated with completing the acquisition of MainStreet Financial Corporation (MainStreet) of Martinsville, Va. Excluding merger-related expenses, BB&T's net income increased 17.7% compared to recurring net income in the first quarter of 1998. Earnings per diluted share for the first quarter of 1999 increased 17.1% from the $.41 per share earned on a recurring basis in the first quarter of 1998. BB&T's recurring results for the first quarter of 1999 produced a return on average assets of 1.65% and a return on average equity of 20.54%, compared to prior year ratios of 1.54% and 19.35%, respectively. BB&T's efficiency ratio for the first quarter of 1999 improved to 50.7%, compared to 51.6% in the first quarter of 1998. Including the effects of merger-related expenses, net income totaled $138.4 million, a 14.9% increase compared to the $120.4 million earned in the first quarter of 1998. On a diluted per share basis, net income was $.44 for the first three months of 1999 compared to $.39 in the first quarter of 1998. BB&T's "cash basis" earnings, which exclude the effect of intangible assets and related amortization expense, increased significantly in the first quarter of 1999 compared to 1998. For the three months ended March 31, 1999, cash basis net income, excluding nonrecurring items, totaled $157.6 million, an increase of 19.8% compared to $131.6 million earned in the first quarter of 1998. On a diluted per share basis, recurring cash basis earnings totaled $.50 for the first quarter, an increase of 19.0% compared to 1998. Exclusive of nonrecurring charges, cash basis operating results for the first quarter of 1999 produced an annualized return on average tangible assets of 1.77%, an annualized return on average tangible shareholders' equity of 25.38% and an efficiency ratio of 48.9%. "We are very pleased to report strong first quarter earnings," said Chairman and Chief Executive Officer John A. Allison. "We believe that our financial results this quarter reflect solid progress toward our goal of consistently performing among the top 5% of bank holding companies. In its March 29 issue, Business Week magazine named BB&T as the second highest performing S&P 500 bank holding company in the country, based on strength in revenues, profitability, return to shareholders and return on equity. This recognition indicates that we are succeeding in our efforts." During the first quarter, BB&T announced plans to expand its franchise to Georgia, West Virginia and Kentucky, and further expand its presence in Maryland and Virginia. On Jan. 27, 1999, BB&T announced plans to acquire First Citizens Corporation (First Citizens) of Newnan, Ga. First Citizens, with approximately $421 million in assets, conducts its operations through 13 branches and one mortgage office in south metro Atlanta. This acquisition provides BB&T with an initial entry into the largest metropolitan statistical area in the Southeast and a major financial center on the East Coast. On Jan. 28, 1999, BB&T announced an agreement to merge with Mason-Dixon Bancshares Inc. (Mason-Dixon) of Westminster, Md. Mason-Dixon, with approximately $1.1 billion in assets, operates 23 full-service banking offices, 12 consumer finance offices and three mortgage loan offices in Maryland. On Feb. 25, 1999, BB&T announced plans to acquire Matewan BancShares Inc. (Matewan) of Williamson, W.Va. Matewan, with approximately $676 million in assets, operates 22 banking offices and one mortgage loan office in southwestern Virginia, southern West Virginia and eastern Kentucky. BB&T completed two significant mergers during the first quarter. On March 5, 1999, BB&T consummated its merger with MainStreet. With $2.3 billion in assets, MainStreet operates 46 full-service banking offices in Virginia and three in Maryland. The transaction increases the size of BB&T's Virginia / metro Washington, D.C. operations to approximately $6.6 billion in assets. On March 26, 1999, BB&T completed its purchase of Scott & Stringfellow Financial, Inc., an investment banking and retail brokerage firm based in Richmond, Va. Scott & Stringfellow manages more than $10 billion in assets for its customers through 32 offices located in the Carolinas, Virginia and West Virginia. BB&T Insurance Services continued to expand its agency network during the first quarter. The acquisition of Huffines-Russell Insurance Agency, an independent agency located in metro Atlanta, Ga., was completed on March 1, 1999, and the proposed acquisition of Old Dominion Insurance Services, which has offices in Radford, Pulaski and Christiansburg, Va., was announced on March 15. "Among our primary objectives for 1999 is the pursuit of strategic mergers and acquisitions that are advantageous to BB&T and make sense from an economic perspective. Our announced acquisitions during the first quarter are consistent with our stated growth strategy and will add to the overall value of our franchise," said Allison. At March 31, 1999, BB&T had $37.8 billion in assets and 581 banking offices in the Carolinas, Virginia, Maryland and Washington, D.C. BB&T's common stock is traded on the New York Stock Exchange under the trading symbol BBT. The closing price of BB&T's common stock on April 9 was $37.44 per share. QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058 Page 3 Investor Relations FA(336) 733-3132
For the Three Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 3/31/1999 3/31/1998 $ % INCOME STATEMENT Interest income - taxable equivalent $ 685,337 $ 655,689 $ 29,648 4.5 % Interest expense 322,779 320,784 1,995 .6 Net interest income - taxable equivalent 362,558 334,905 27,653 8.3 Less: Taxable equivalent adjustment 18,181 15,565 2,616 16.8 Net interest income 344,377 319,340 25,037 7.8 Provision for loan & lease losses 20,000 23,438 (3,438) (14.7) Net interest income after provision for loan & lease losses 324,377 295,902 28,475 9.6 Noninterest income 161,184 125,424 35,760 28.5 Noninterest expense 281,808 245,016 36,792 15.0 Income before income taxes 203,753 176,310 27,443 15.6 Provision for income taxes 65,330 55,865 9,465 16.9 Net income $ 138,423 $ 120,445 $ 17,978 14.9 % PER SHARE DATA Basic earnings $ .45 $ .40 $ .05 12.5 % Diluted earnings .44 .39 .05 12.8 Weighted average shares - Basic 306,466,263 304,867,015 Diluted 312,553,659 311,282,640 Dividends paid on common shares $ .175 $ .155 $ .02 12.9 % PERFORMANCE RATIOS Return on average assets 1.53 % 1.47 % Return on average equity 19.11 18.43 Net yield on earning assets (taxable equivalent) 4.28 4.33 Efficiency (taxable equivalent) * 50.7 51.6 For the Three Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 3/31/1999 3/31/1998 $ % INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 685,337 $ 655,689 $ 29,648 4.5 % Interest expense 322,779 320,784 1,995 .6 Net interest income - taxable equivalent 362,558 334,905 27,653 8.3 Less: Taxable equivalent adjustment 18,181 15,565 2,616 16.8 Net interest income 344,377 319,340 25,037 7.8 Provision for loan & lease losses 20,000 23,438 (3,438) (14.7) Net interest income after provision for loan & lease losses 324,377 295,902 28,475 9.6 Noninterest income 161,184 125,424 35,760 28.5 Noninterest expense 265,967 237,201 28,766 12.1 Income before income taxes 219,594 184,125 35,469 19.3 Provision for income taxes 70,785 57,657 13,128 22.8 Net income excluding nonrecurring items 148,809 126,468 22,341 17.7 Nonrecurring items, net of tax 10,386 6,023 4,363 NM Net income $ 138,423 $ 120,445 $ 17,978 14.9 % PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .49 $ .41 $ .08 19.5 % Diluted earnings .48 .41 .07 17.1 Weighted average shares - Basic 306,466,263 304,867,015 Diluted 312,553,659 311,282,640 Dividends paid on common shares $ .175 $ .155 $ .02 12.9 % PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.65 % 1.54 % Return on average equity 20.54 19.35 Net yield on earning assets (taxable equivalent) 4.28 4.33 Efficiency (taxable equivalent) * 50.7 51.6 CASH BASIS PERFORMANCE** Net income excluding nonrecurring items $ 157,605 $ 131,599 $ 26,006 19.8 % Diluted earnings per share .50 .42 .08 19.0 Return on average tangible assets 1.77 % 1.61 % Return on average tangible equity 25.38 22.05 Efficiency ratio (taxable equivalent) * 48.9 50.4 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. NM - not meaningful. ** 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.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058 Page 4 Investor Relations FA(336) 733-3132
As of / For the Three Months Ended Increase (Decrease) (Dollars in thousands) 3/31/1999 3/31/1998 $ % SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 10,017,923 $ 8,853,193 $ 1,164,730 13.2 % Commercial loans & leases 12,472,260 10,628,824 1,843,436 17.3 Consumer loans 6,093,657 5,602,130 491,527 8.8 Revolving credit loans 534,494 505,976 28,518 5.6 Mortgage loans 5,862,814 6,132,840 (270,026) (4.4) Other loans 12,854 14,879 (2,025) (13.6) Total loans & leases 24,976,079 22,884,649 2,091,430 9.1 Allowance for loan & lease losses 337,983 301,191 36,792 12.2 Other earning assets 252,605 240,373 12,232 5.1 Total earning assets 35,198,756 31,896,463 3,302,293 10.4 Total assets 37,791,490 34,243,806 3,547,684 10.4 Noninterest-bearing deposits 3,352,359 3,111,570 240,789 7.7 Savings & interest checking 1,698,423 2,066,501 (368,078) (17.8) Money rate savings 7,080,509 5,638,305 1,442,204 25.6 Certificates of deposit & other time deposits 11,402,439 10,669,163 733,276 6.9 Other deposits 880,405 996,077 (115,672) (11.6) Total deposits 24,414,135 22,481,616 1,932,519 8.6 Short-term borrowed funds 4,668,966 4,653,550 15,416 .3 Long-term debt 5,187,639 3,942,804 1,244,835 31.6 Total interest-bearing liabilities 30,918,381 27,966,400 2,951,981 10.6 Total shareholders' equity $ 2,948,357 $2,645,580 $ 302,777 11.4 % Average balances Securities, at amortized cost $ 9,146,135 $ 8,511,489 $ 634,646 7.5 % Commercial loans & leases 12,174,190 10,514,562 1,659,628 15.8 Consumer loans 6,029,609 5,582,899 446,710 8.0 Revolving credit loans 529,330 510,771 18,559 3.6 Mortgage loans 6,101,682 5,769,652 332,030 5.8 Other loans 3,601 4,449 (848) (19.1) Total loans & leases 24,838,412 22,382,333 2,456,079 11.0 Other earning assets 126,241 236,579 (110,338) (46.6) Total earning assets 34,110,788 31,130,401 2,980,387 9.6 Total assets 36,610,535 33,292,545 3,317,990 10.0 Noninterest-bearing deposits 3,283,300 2,904,866 378,434 13.0 Savings & interest checking 1,784,789 2,052,704 (267,915) (13.1) Money rate savings 6,848,137 5,443,807 1,404,330 25.8 Certificates of deposit & other time deposits 11,427,555 10,845,751 581,804 5.4 Other deposits 775,542 859,627 (84,085) (9.8) Total deposits 24,119,323 22,106,755 2,012,568 9.1 Short-term borrowed funds 3,988,764 4,145,971 (157,207) (3.8) Long-term debt 4,973,629 3,890,169 1,083,460 27.9 Total interest-bearing liabilities 29,798,416 27,238,029 2,560,387 9.4 Total shareholders' equity $ 2,937,838 $ 2,650,444 $ 287,394 10.8 % 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:BBT) Senior Vice President (336) 733-3058 Page 5 Investor Relations FA(336) 733-3132
As of / For the Quarter Ended (Dollars in thousands, except per share data) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998 INCOME STATEMENTS EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent Interest & fees on loans & leases $ 533,480 $ 540,624 $ 534,161 $ 521,240 $ 507,411 Interest & dividends on securities 150,400 153,180 142,005 144,899 144,875 Interest on short-term investments 1,457 2,367 2,298 3,018 3,403 Total interest income - taxable equivalent 685,337 696,171 678,464 669,157 655,689 Interest expense Interest on deposits 209,759 217,404 214,244 213,175 209,292 Interest on short-term borrowed funds 46,262 51,649 52,767 59,607 54,594 Interest on long-term debt 66,758 66,463 63,287 56,898 56,898 Total interest expense 322,779 335,516 330,298 329,680 320,784 Net interest income - taxable equivalent 362,558 360,655 348,166 339,477 334,905 Less: Taxable equivalent adjustment 18,181 18,003 16,490 16,016 15,565 Net interest income 344,377 342,652 331,676 323,461 319,340 Provision for loan & lease losses 20,000 17,764 21,229 23,038 23,438 Net interest income after provision for loan & lease losses 324,377 324,888 310,447 300,423 295,902 Noninterest income Service charges on deposits 47,624 45,184 43,881 43,324 42,458 Mortgage banking activities 32,798 18,309 22,703 23,261 15,397 Trust revenue 12,714 12,172 11,043 8,991 8,731 Agency insurance commissions 16,882 13,499 12,399 12,231 14,057 Other insurance commissions 2,846 3,469 2,849 3,265 3,016 Other nondeposit fees & commissions 30,078 29,833 29,412 28,187 25,513 Securities gains, net 61 1,774 2,114 1,293 2,501 Other income 18,181 18,321 16,576 14,115 13,751 Total noninterest income 161,184 142,561 140,977 134,667 125,424 Noninterest expense Personnel expense 135,690 132,640 126,779 124,776 121,239 Occupancy & equipment expense 44,176 38,935 41,308 41,731 38,761 Foreclosed property expense 711 418 270 724 868 Amortization of intangibles & servicing rights 15,836 16,689 11,283 11,238 10,262 Other noninterest expense 69,554 74,876 71,763 69,439 66,071 Total noninterest expense 265,967 263,558 251,403 247,908 237,201 Income before income taxes 219,594 203,891 200,021 187,182 184,125 Provision for income taxes 70,785 64,282 63,189 59,143 57,657 Net income $ 148,809 $ 139,609 $ 136,832 $ 128,039 $ 126,468 PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .49 $ .45 $ .45 $ .42 $ .41 Diluted earnings .48 .45 .45 .41 .41 Dividends paid on common shares .175 .175 .175 .155 .155 Book value per common share $ 9.59 $ 9.53 $ 9.48 $ 8.70 $ 8.68 PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.65 % 1.53 % 1.59 % 1.50 % 1.54 % Return on average equity 20.54 18.85 20.71 19.52 19.35 Net yield on earning assets (taxable equivalent) 4.28 4.28 4.36 4.25 4.33 Efficiency (taxable equivalent) * 50.7 52.5 51.6 52.3 51.6 Noninterest income as a percentage of total income (taxable equivalent) * 30.8 28.1 28.5 28.2 26.8 Equity as a percentage of total assets end of period 7.8 8.0 8.1 7.7 7.7 Average earning assets as a percentage of average total assets 93.2 92.9 93.6 93.7 93.5 Average loans & leases as a percentage of average deposits 103.0 102.3 103.4 102.6 101.2 CASH BASIS PERFORMANCE** Net income excluding nonrecurring items $ 157,605 $ 148,031 $ 142,664 $ 133,473 $ 131,599 Diluted earnings per share .50 .47 .47 .43 .42 Return on average tangible assets 1.77 % 1.64 % 1.68 % 1.58 % 1.61 % Return on average tangible equity 25.38 23.25 23.98 22.38 22.05 Efficiency ratio (taxable equivalent) * 48.9 50.8 50.4 51.1 50.4 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. ** 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.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058 Page 6 Investor Relations FA(336) 733-3132
As of / For the Quarter Ended (Dollars in thousands) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998 SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 10,017,923 $ 8,973,093 $ 9,190,255 $ 8,468,000 $ 8,853,193 Commercial loans & leases 12,472,260 11,948,222 11,502,619 10,970,315 10,628,824 Consumer loans 6,093,657 5,953,155 5,893,935 5,691,420 5,602,130 Revolving credit loans 534,494 537,628 516,612 521,458 505,976 Mortgage loans 5,862,814 6,270,581 6,252,524 6,136,786 6,132,840 Other loans 12,854 8,882 9,907 12,364 14,879 Total loans & leases 24,976,079 24,718,468 24,175,597 23,332,343 22,884,649 Allowance for loan & lease losses 337,983 330,615 328,244 308,968 301,191 Other earning assets 252,605 112,141 253,526 199,359 240,373 Total earning assets 35,198,756 33,704,364 33,459,563 31,916,121 31,896,463 Total assets 37,791,490 36,388,330 35,964,038 34,276,386 34,243,806 Noninterest-bearing deposits 3,352,359 3,465,362 3,256,957 3,208,650 3,111,570 Savings & interest checking 1,698,423 1,783,491 1,832,917 1,845,448 2,066,501 Money rate savings 7,080,509 7,021,556 6,131,830 5,897,146 5,638,305 Certificates of deposit & other time deposits 11,402,439 11,349,083 11,323,119 11,295,291 10,669,163 Other deposits 880,405 638,676 788,392 559,057 996,077 Total deposits 24,414,135 24,258,168 23,333,215 22,805,592 22,481,616 Short-term borrowed funds 4,668,966 3,707,333 4,518,138 4,035,630 4,653,550 Long-term debt 5,187,639 4,964,797 4,614,203 4,284,910 3,942,804 Total interest-bearing liabilities 30,918,381 29,464,936 29,208,599 27,917,482 27,966,400 Total shareholders' equity 2,948,357 2,923,888 2,913,498 2,633,798 2,645,580 Goodwill 469,679 391,925 398,148 245,566 224,785 Core deposit & other intangibles 7,879 7,820 6,658 7,010 7,000 Total intangibles 477,558 399,745 404,806 252,576 231,785 Mortgage servicing rights 116,741 101,277 98,433 87,519 72,353 Negative goodwill $ 25,189 $ 26,749 $ 28,310 $ 29,871 $ 31,431 Average balances Securities, at amortized cost $ 9,146,135 $ 9,151,670 $ 8,376,487 $ 8,630,609 $ 8,511,489 Commercial loans & leases 12,174,190 11,676,077 11,174,578 10,792,236 10,514,562 Consumer loans 6,029,609 5,922,789 5,730,569 5,664,113 5,582,899 Revolving credit loans 529,330 516,362 508,348 500,918 510,771 Mortgage loans 6,101,682 6,185,505 5,887,294 6,182,014 5,769,652 Other loans 3,601 5,783 7,921 7,048 4,449 Total loans & leases 24,838,412 24,306,516 23,308,710 23,146,329 22,382,333 Other earning assets 126,241 163,996 166,276 216,175 236,579 Total earning assets 34,110,788 33,622,182 31,851,473 31,993,113 31,130,401 Total assets 36,610,535 36,178,328 34,038,818 34,148,967 33,292,545 Noninterest-bearing deposits 3,283,300 3,335,109 3,141,416 3,069,532 2,904,866 Savings & interest checking 1,784,789 1,864,734 1,864,715 1,959,573 2,052,704 Money rate savings 6,848,137 6,402,529 5,944,744 5,750,932 5,443,807 Certificates of deposit & other time deposits 11,427,555 11,329,463 10,641,446 10,916,926 10,845,751 Other deposits 775,542 822,919 940,513 865,103 859,627 Total deposits 24,119,323 23,754,754 22,532,834 22,562,066 22,106,755 Short-term borrowed funds 3,988,764 4,153,424 3,941,189 4,495,242 4,145,971 Long-term debt 4,973,629 4,749,282 4,393,450 3,903,859 3,890,169 Total interest-bearing liabilities 29,798,416 29,322,351 27,726,057 27,891,635 27,238,029 Total shareholders' equity $ 2,937,838 $ 2,938,976 $ 2,621,143 $ 2,631,041 $ 2,650,444 RISK-BASED CAPITAL* Risk-based capital: Tier 1 $ 2,486,137 $ 2,508,490 $ 2,452,529 $ 2,371,459 $ 2,411,180 Total 3,620,978 3,629,292 3,569,019 3,511,801 3,184,480 Risk-based capital ratios: Tier 1 9.7 % 10.3 % 10.5 % 10.5 % 10.8 % Total 14.1 15.0 15.3 15.6 14.3 Leverage capital ratio 6.9 7.0 7.3 7.0 7.3 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. * Current quarter estimated.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058 Page 7 Investor Relations FA(336) 733-3132
As of / For the Quarter Ended (Dollars in thousands, except per share data) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998 ASSET QUALITY ANALYSIS Allowance For Loan & Lease Losses Beginning balance $ 330,615 $ 328,244 $ 308,968 $ 301,191 $ 292,667 Allowance for acquired loans - - 15,542 1,269 858 Provision for loan & lease losses 20,000 22,765 21,229 23,038 23,438 Charge-offs (18,259) (25,582) (22,835) (21,739) (21,465) Recoveries 5,627 5,188 5,340 5,209 5,693 Net charge-offs (12,632) (20,394) (17,495) (16,530) (15,772) Ending balance $ 337,983 $ 330,615 $ 328,244 $ 308,968 $ 301,191 Nonperforming Assets Nonaccrual loans & leases $ 86,457 $ 88,847 $ 89,067 $ 84,062 $ 97,938 Foreclosed real estate 18,969 17,428 21,778 20,761 17,072 Other foreclosed property 10,539 11,548 11,669 14,189 14,878 Restructured loans 520 522 525 528 - Nonperforming assets $ 116,485 $ 118,345 $ 123,039 $ 119,540 $ 129,888 Loans 90 days or more past due & still accruing $ 40,948 $ 54,226 $ 51,107 $ 52,881 $ 46,864 Asset Quality Ratios Nonaccrual loans & leases as a percentage of total loans & leases .35 % .36 % .37 % .36 % .43 % Nonperforming assets as a percentage of: Total assets .31 .33 .34 .35 .38 Loans & leases plus foreclosed property .47 .48 .51 .51 .57 Net charge-offs as a percentage of average loans & leases .21 .33 .30 .29 .29 Allowance for loan & lease losses as a percentage of loans & leases 1.35 1.34 1.36 1.32 1.32 Ratio of allowance for loan & lease losses to: Net charge-offs 6.60 x 4.09 x 4.73 x 4.66 x 4.71 x Nonaccrual and restructured loans & leases 3.89 3.70 3.66 3.65 3.08 MEMO ITEMS Unrealized appreciation on securities available for sale, net of tax $ 29,737 $ 60,974 $ 97,462 $ 51,818 $ 49,688 Common stock prices (daily close): High 40.44 40.63 36.03 34.06 33.84 Low 34.94 27.31 28.00 32.03 29.03 End of period 36.19 40.31 29.94 33.81 33.84 Weighted average shares - Basic 306,466,263 307,145,230 300,907,991 302,781,582 304,867,015 Diluted 312,553,659 313,463,399 306,675,982 309,028,401 311,282,640 End of period shares outstanding* 307,297,316 306,963,976 307,475,558 151,290,516 152,338,669 End of period banking offices 581 583 589 571 573 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:BBT) Senior Vice President (336) 733-3058 Page 8 Investor Relations FA(336) 733-3132 For the Quarter Ended
3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998 INTEREST YIELDS/RATES (Taxable equivalent) Interest income: Securities* 6.59 % 6.69 % 6.77 % 6.72 % 6.83 % Loans & leases 8.68 8.84 9.11 9.03 9.17 Other earning assets 4.68 5.73 5.48 5.60 5.83 Total earning assets* 8.11 8.24 8.47 8.38 8.50 Interest expense: Interest-bearing deposits 4.08 4.22 4.38 4.39 4.42 Short-term borrowed funds 4.70 4.93 5.31 5.32 5.34 Long-term debt 5.41 5.58 5.74 5.84 5.89 Total interest-bearing liabilities 4.39 4.54 4.73 4.74 4.77 Net yield on earning assets 4.28 % 4.28 % 4.36 % 4.25 % 4.33 % NOTE: *Yields calculated based on securities at amortized cost.
As of (Dollars in thousands) 3/31/1999 DERIVATIVES: INTEREST RATE SWAPS, CAPS, FLOORS & COLLARS Notional Receive Pay Unrealized Type Amount Rate Rate Gains (Losses) Receive fixed swaps $ 770,000 6.35 % 4.99 % $ 27,270 Pay fixed swaps 1,197,893 5.00 5.67 (1,168) Basis swaps 50,000 4.95 4.97 (3) Caps, floors & collars 1,247,250 - - 349 Total $ 3,265,143 5.51 % 5.39 % $ 26,448 One Year One to After Contractual Maturity Schedule Total or Less Five Years Five Years Receive fixed swaps $ 770,000 $ 200,000 $ 295,000 $ 275,000 Pay fixed swaps 1,197,893 1,001,646 108,954 87,293 Basis swaps 50,000 50,000 - - Caps, floors & collars 1,247,250 500,000 747,250 - Total $ 3,265,143 $ 1,751,646 $ 1,151,204 $ 362,293
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: April 12, 1999 -----END PRIVACY-ENHANCED MESSAGE-----