-----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, MvW/14vcfM3kYAOynR+X15k3sqDRZv7ppUxEbOD7PtrF3TDbZtp/xujJ0HZ3Xvlr aLXSmzQG8k5tIEcAu7KsfA== 0000092230-99-000037.txt : 19991018 0000092230-99-000037.hdr.sgml : 19991018 ACCESSION NUMBER: 0000092230-99-000037 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991012 ITEM INFORMATION: FILED AS OF DATE: 19991012 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: 99726717 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 THIRD 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) October 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 third quarter of 1999, including sections distributed to the media and a supplement distributed to analysts. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued October 12, 1999 BB&T reports 14.6% earnings growth in 3rd quarter BB&T Corporation reported today that earnings for the third quarter of 1999 totaled $160.8 million, an increase of 14.6% compared to $140.3 million earned in the third quarter of 1998. These results exclude after-tax merger-related expenses of $19.7 million in 1999 and $4.9 million in 1998. On a diluted per share basis, recurring earnings for the third quarter totaled $.50, an increase of 13.6% compared to $.44 earned last year. BB&T's current quarter results produced an annualized return on average assets of 1.55% and an annualized return on average equity of 21.20%, compared to prior year ratios of 1.57% and 20.33%, respectively. These performance ratios compare very favorably with industry averages. For the nine months ended Sept. 30, 1999, BB&T's recurring earnings totaled $469.2 million, an increase of 16.3% compared to $403.3 million earned during the first nine months of 1998. Diluted earnings per share, excluding merger-related costs, totaled $1.46 for the first nine months of 1999, an increase of 15.0% compared to $1.27 earned in 1998. "We are extremely pleased to report excellent financial results for the third quarter and the first nine months of 1999," said Chairman and Chief Executive Officer John A. Allison. "Our performance continues to rank among industry leaders, particularly in the areas of noninterest income growth, asset quality and efficiency. Our noninterest income grew 31.4% during the first nine months of the year compared to 1998. Our asset quality remains excellent, as evidenced by an annualized net charge-off ratio of .24%, compared to an industry average of .55%. We have also maintained a very high level of productivity, with a cash basis efficiency ratio of 50.7% for the first nine months." BB&T's "cash basis" operating results, which exclude the effects of intangible assets and related amortization expenses, increased significantly in the third quarter of 1999 compared to 1998. Cash basis earnings, excluding nonrecurring merger-related costs, totaled $172.2 million for the third quarter of 1999, or $.53 per diluted share, increases of 17.6% and 15.2%, respectively, compared to prior year amounts. Recurring cash basis earnings for the third quarter generated an annualized MORE return on average tangible assets of 1.69% and an annualized return on average tangible equity of 27.88%. Including merger-related expenses, net income for the third quarter of 1999 totaled $141.1 million, or $.44 per diluted share, compared to $135.4 million, or $.43 per diluted share, in the third quarter of 1998. Net income for the nine months ended Sept. 30, 1999, totaled $439.1 million, or $1.36 per diluted share, compared to $392.4 million, or $1.23 per diluted share, for the first nine months of 1998. BB&T consummated three bank acquisitions during the third quarter. On July 9, BB&T completed its merger with First Citizens Corp., based in metro Atlanta, Ga. First Citizens, with total assets of $421 million and 13 branches, represents BB&T's initial entry into Atlanta, the largest metropolitan statistical area in the Southeastern United States. On July 14, BB&T acquired Mason-Dixon Bancshares Inc., of Westminster, Md. The acquisition of Mason-Dixon, which has total assets of $1.2 billion and operates 21 full-service branches, increases BB&T's deposit market share in Maryland, where BB&T currently ranks seventh. On Aug. 27, BB&T expanded its western Virginia franchise and entered Kentucky and West Virginia by completing the purchase of Matewan BancShares, Inc. Matewan added $737 million in assets and 22 banking offices to BB&T's banking network. On April 28, BB&T announced an agreement to acquire First Liberty Financial Corp. of Macon, Ga. First Liberty has $1.7 billion in assets and operates 39 banking offices. On July 28, BB&T announced plans to acquire Premier Bancshares, Inc. of Atlanta, Ga. Premier, with $2.0 billion in assets and 32 banking offices, will strengthen BB&T's presence in the Atlanta market. BB&T's total assets in Georgia following the acquisitions of Premier, First Citizens and First Liberty will total $4.1 billion. Following these acquisitions, BB&T will rank eighth in deposit market share in Georgia. BB&T Insurance Services, the 12th largest independent insurance agency network in the country, continued its expansion in the third quarter through the purchase of five independent agencies: Beam, Cooper, Gainey & Associates Inc. in Morehead City, N.C.; Pioneer Title, LLC, with offices in Virginia Beach, Norfolk, Chesapeake and Hampton, Va.; The Kay Company of Lumberton, N.C.; Macon Insurance Associates, in Macon, Ga.; and Ingram-McDaniel & Associates, of Thomaston, Ga. "Among our primary objectives is the integration of our past acquisitions and the pursuit of strategic future acquisitions," said Allison. "We have been very successful in identifying and executing economically advantageous mergers. This process, combined with solid internal growth, has resulted in the doubling of BB&T's asset size since 1996." BB&T had $41.6 billion in assets and 622 banking offices in the Carolinas, Georgia, Virginia, West Virginia, Kentucky, Maryland and Washington, D.C., as of Sept. 30, 1999. 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 Oct. 8 was $33.81 per share. QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) 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) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT Interest income - taxable equivalent $ 790,355 $ 707,201 $ 83,154 11.8 % Interest expense 380,180 345,211 34,969 10.1 Net interest income - taxable equivalent 410,175 361,990 48,185 13.3 Less: Taxable equivalent adjustment 23,104 17,276 5,828 33.7 Net interest income 387,071 344,714 42,357 12.3 Provision for loan & lease losses 20,000 21,428 (1,428) (6.7) Net interest income after provision for loan & lease losses 367,071 323,286 43,785 13.5 Noninterest income 187,463 144,472 42,991 29.8 Noninterest expense 346,901 269,576 77,325 28.7 Income before income taxes 207,633 198,182 9,451 4.8 Provision for income taxes 66,528 62,773 3,755 6.0 Net income $ 141,105 $ 135,409 $ 5,696 4.2 % - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA Basic earnings $ .45 $ .44 $ .01 2.3 % Diluted earnings .44 .43 .01 2.3 Weighted average shares - Basic 316,676,288 310,522,891 Diluted 322,094,400 316,482,193 Dividends paid on common shares $ .20 $ .175 $ .025 14.3 % - --------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS Return on average assets 1.36 % 1.51 % Return on average equity 18.60 19.61 Net yield on earning assets (taxable equivalent) 4.25 4.35 Efficiency (taxable equivalent) * 53.1 52.1 - --------------------------------------------------------------------------------------------------------------------------------- For the Three Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 790,355 $ 707,201 $ 83,154 11.8 % Interest expense 380,180 345,211 34,969 10.1 Net interest income - taxable equivalent 410,175 361,990 48,185 13.3 Less: Taxable equivalent adjustment 23,104 17,276 5,828 33.7 Net interest income 387,071 344,714 42,357 12.3 Provision for loan & lease losses 20,000 21,428 (1,428) (6.7) Net interest income after provision for loan & lease losses 367,071 323,286 43,785 13.5 Noninterest income 188,863 144,472 44,391 30.7 Noninterest expense 319,611 263,036 56,575 21.5 Income before income taxes 236,323 204,722 31,601 15.4 Provision for income taxes 75,518 64,384 11,134 17.3 Income excluding nonrecurring items 160,805 140,338 20,467 14.6 Nonrecurring items, net of tax 19,700 4,929 14,771 NM Net income $ 141,105 $ 135,409 $ 5,696 4.2 % - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .51 $ .45 $ .06 13.3 % Diluted earnings .50 .44 .06 13.6 Weighted average shares - Basic 316,676,288 310,522,891 Diluted 322,094,400 316,482,193 Dividends paid on common shares $ .20 $ .175 $ .025 14.3 % - --------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.55 % 1.57 % Return on average equity 21.20 20.33 Net yield on earning assets (taxable equivalent) 4.25 4.35 Efficiency (taxable equivalent) * 53.1 52.1 - --------------------------------------------------------------------------------------------------------------------------------- CASH BASIS PERFORMANCE** Cash basis earnings excluding nonrecurring items $ 172,159 $ 146,435 $ 25,724 17.6 % Diluted cash basis earnings per share .53 .46 .07 15.2 Return on average tangible assets 1.69 % 1.65 % Return on average tangible equity 27.88 23.57 Efficiency ratio (taxable equivalent) * 51.2 50.8 - --------------------------------------------------------------------------------------------------------------------------------- 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. ** 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 amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity. NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058 Page 4 Investor Relations FAX (336) 733-3132
For the Nine Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT Interest income - taxable equivalent $ 2,261,284 $ 2,087,954 $ 173,330 8.3 % Interest expense 1,074,302 1,023,648 50,654 4.9 Net interest income - taxable equivalent 1,186,982 1,064,306 122,676 11.5 Less: Taxable equivalent adjustment 64,547 50,356 14,191 28.2 Net interest income 1,122,435 1,013,950 108,485 10.7 Provision for loan & lease losses 61,867 71,503 (9,636) (13.5) Net interest income after provision for loan & lease losses 1,060,568 942,447 118,121 12.5 Noninterest income 539,798 411,860 127,938 31.1 Noninterest expense 955,530 779,946 175,584 22.5 Income before income taxes 644,836 574,361 70,475 12.3 Provision for income taxes 205,732 181,964 23,768 13.1 Net income $ 439,104 $ 392,397 $ 46,707 11.9 % - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA Basic earnings $ 1.39 $ 1.26 $ .13 10.3 % Diluted earnings 1.36 1.23 .13 10.6 Weighted average shares - Basic 316,321,063 312,446,889 Diluted 322,253,823 318,814,080 Dividends paid on common shares $ .55 $ .485 $ .065 13.4 % - --------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS Return on average assets 1.48 % 1.49 % Return on average equity 19.25 19.09 Net yield on earning assets (taxable equivalent) 4.27 4.31 Efficiency (taxable equivalent) * 52.6 52.0 - --------------------------------------------------------------------------------------------------------------------------------- For the Nine Months Ended Increase (Decrease) (Dollars in thousands, except per share data) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 2,261,284 $ 2,087,954 $ 173,330 8.3 % Interest expense 1,074,302 1,023,648 50,654 4.9 Net interest income - taxable equivalent 1,186,982 1,064,306 122,676 11.5 Less: Taxable equivalent adjustment 64,547 50,356 14,191 28.2 Net interest income 1,122,435 1,013,950 108,485 10.7 Provision for loan & lease losses 61,867 71,503 (9,636) (13.5) Net interest income after provision for loan & lease losses 1,060,568 942,447 118,121 12.5 Noninterest income 541,198 411,860 129,338 31.4 Noninterest expense 912,399 765,591 146,808 19.2 Income before income taxes 689,367 588,716 100,651 17.1 Provision for income taxes 220,177 185,367 34,810 18.8 Income excluding nonrecurring items 469,190 403,349 65,841 16.3 Nonrecurring items, net of tax 30,086 10,952 19,134 NM Net income $ 439,104 $ 392,397 $ 46,707 11.9 % - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ 1.48 $ 1.29 $ .19 14.7 % Diluted earnings 1.46 1.27 .19 15.0 Weighted average shares - Basic 316,321,063 312,446,889 Diluted 322,253,823 318,814,080 Dividends paid on common shares $ .55 $ .485 $ .065 13.4 % - --------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.58 % 1.53 % Return on average equity 20.56 19.62 Net yield on earning assets (taxable equivalent) 4.27 4.31 Efficiency (taxable equivalent) * 52.6 52.0 - --------------------------------------------------------------------------------------------------------------------------------- CASH BASIS PERFORMANCE** Cash basis earnings excluding nonrecurring items $ 500,203 $ 420,461 $ 79,742 19.0 % Diluted cash basis earnings per share 1.55 1.32 .23 17.4 Return on average tangible assets 1.70 % 1.61 % Return on average tangible equity 26.28 22.57 Efficiency ratio (taxable equivalent) * 50.7 50.7 - --------------------------------------------------------------------------------------------------------------------------------- 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. ** 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 amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from assets and equity. NM - not meaningful.
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 As of / For the Nine Months Ended Increase (Decrease) (Dollars in thousands) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value* $ 10,807,108 $ 9,775,745 $1,031,363 10.6 % Commercial loans & leases 14,061,748 11,871,189 2,190,559 18.5 Consumer loans 6,972,197 6,037,237 934,960 15.5 Revolving credit loans 577,842 517,540 60,302 11.7 Mortgage loans 5,751,499 6,491,710 (740,211) (11.4) Total loans & leases* 27,363,286 24,917,676 2,445,610 9.8 Allowance for loan & lease losses 369,346 341,331 28,015 8.2 Other earning assets 502,884 295,403 207,481 70.2 Total earning assets 38,889,965 34,823,183 4,066,782 11.7 Total assets 41,649,596 37,419,848 4,229,748 11.3 Noninterest-bearing deposits 3,683,292 3,391,584 291,708 8.6 Savings & interest checking 1,695,274 2,033,516 (338,242) (16.6) Money rate savings 7,450,275 6,245,998 1,204,277 19.3 Time deposits 12,513,911 11,821,491 692,420 5.9 Other deposits 361,994 788,392 (426,398) (54.1) Total deposits 25,704,746 24,280,981 1,423,765 5.9 Short-term borrowed funds 5,894,267 4,557,580 1,336,687 29.3 Long-term debt 6,321,643 4,950,581 1,371,062 27.7 Total interest-bearing liabilities 34,237,364 30,397,558 3,839,806 12.6 Total shareholders' equity $ 3,093,915 $ 3,034,290 $ 59,625 2.0 % - --------------------------------------------------------------------------------------------------------------------------------- Average balances Securities, at amortized cost* $ 10,621,987 $ 9,014,811 $1,607,176 17.8 % Commercial loans & leases 13,177,268 11,199,911 1,977,357 17.7 Consumer loans 6,509,094 5,803,736 705,358 12.2 Revolving credit loans 544,680 507,824 36,856 7.3 Mortgage loans 5,984,915 6,197,730 (212,815) (3.4) Total loans & leases* 26,215,957 23,709,201 2,506,756 10.6 Other earning assets 301,339 248,730 52,609 21.2 Total earning assets 37,139,283 32,972,742 4,166,541 12.6 Total assets 39,762,805 35,232,051 4,530,754 12.9 Noninterest-bearing deposits 3,533,623 3,175,672 357,951 11.3 Savings & interest checking 1,945,098 2,165,177 (220,079) (10.2) Money rate savings 7,120,349 5,830,544 1,289,805 22.1 Time deposits 11,996,842 11,312,515 684,327 6.0 Other deposits 984,111 888,710 95,401 10.7 Total deposits 25,580,023 23,372,618 2,207,405 9.4 Short-term borrowed funds 4,949,126 4,255,752 693,374 16.3 Long-term debt 5,564,299 4,306,519 1,257,780 29.2 Total interest-bearing liabilities 32,559,825 28,759,217 3,800,608 13.2 Total shareholders' equity $ 3,050,373 $ 2,748,885 $ 301,488 11.0 % - --------------------------------------------------------------------------------------------------------------------------------- As of / For the Quarter Ended (Dollars in thousands) 9/30/1999 6/30/1999 3/31/1999 12/31/1998 9/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- MISCELLANEOUS INFORMATION Unrealized (depreciation) appreciation on securities available for sale, net of tax $ (135,978) $ (117,802) $ 29,917 $ 62,986 $ 101,226 Derivatives (notional value) 1,339,937 1,987,264 3,342,143 3,825,596 3,625,148 Unrealized gain on derivatives portfolio 7,889 15,010 25,350 35,938 44,924 Common stock prices (daily close): High 36.63 40.25 40.44 40.63 36.03 Low 30.50 33.81 34.94 27.31 28.00 End of period 32.38 36.69 36.19 40.31 29.94 Weighted average shares - Basic 316,676,288 316,156,123 316,124,714 316,753,970 310,522,891 Diluted 322,094,400 322,273,372 322,397,023 323,316,742 316,482,193 End of period shares outstanding 318,198,872 315,849,203 316,997,461 316,590,552 317,078,711 End of period banking offices 622 609 615 619 621 - --------------------------------------------------------------------------------------------------------------------------------- NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. All per share data (and weighted average shares) have been restated to reflect the 2-for-1 stock split effective on August 3, 1998. * Balances reflect the securitization of $465.3 million of loans during 1998. The increase in end of period loans, excluding the impact of the securitizations, was 10.5%. The increase in average loans, excluding the securitizations, was 12.5%.
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 Quarter Ended (Dollars in thousands, except per share data) 9/30/1999 6/30/1999 3/31/1999 12/31/1998 9/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENTS EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent Interest & fees on loans & leases $ 598,515 $ 572,296 $ 552,847 $ 559,069 $ 552,777 Interest & dividends on securities 185,816 179,887 161,073 163,328 151,504 Interest on short-term investments 6,024 2,862 1,964 2,931 2,920 Total interest income - taxable equivalent 790,355 755,045 715,884 725,328 707,201 Interest expense Interest on deposits 231,915 220,487 219,528 226,684 223,672 Interest on short-term borrowed funds 69,328 60,503 47,102 52,241 53,422 Interest on long-term debt 78,937 74,924 71,578 71,418 68,117 Total interest expense 380,180 355,914 338,208 350,343 345,211 Net interest income - taxable equivalent 410,175 399,131 377,676 374,985 361,990 Less: Taxable equivalent adjustment 23,104 22,322 19,121 18,946 17,276 Net interest income 387,071 376,809 358,555 356,039 344,714 Provision for loan & lease losses 20,000 21,603 20,264 19,301 21,428 Net interest income after provision for loan & lease losses 367,071 355,206 338,291 336,738 323,286 Noninterest income Service charges on deposits 49,924 48,287 48,489 46,091 44,721 Mortgage banking activities 27,256 33,519 33,727 19,466 23,599 Investment banking & brokerage fees 36,681 38,006 13,935 10,656 11,518 Trust revenue 14,351 13,451 13,158 12,591 11,460 Agency insurance commissions 20,464 16,820 16,882 13,499 12,399 Other insurance commissions 3,035 2,688 2,893 3,068 2,378 Other nondeposit fees & commissions 25,610 26,795 22,743 23,661 22,842 Securities (losses) gains, net (168) (2,905) 218 2,119 2,277 Other income 11,710 11,234 12,395 15,546 13,278 Total noninterest income 188,863 187,895 164,440 146,697 144,472 Noninterest expense Personnel expense 171,266 165,275 142,379 139,044 133,270 Occupancy & equipment expense 49,898 48,779 45,924 40,922 42,844 Foreclosed property expense 1,157 711 710 597 305 Amortization of intangibles & servicing rights 16,867 16,989 16,225 17,103 11,818 Other noninterest expense 80,423 83,072 72,724 79,232 74,799 Total noninterest expense 319,611 314,826 277,962 276,898 263,036 Income before income taxes 236,323 228,275 224,769 206,537 204,722 Provision for income taxes 75,518 72,497 72,162 64,705 64,384 Income excluding nonrecurring items $ 160,805 $ 155,778 $ 152,607 $ 141,832 $ 140,338 - --------------------------------------------------------------------------------------------------------------------------------- PER SHARE DATA EXCLUDING NONRECURRING ITEMS Basic earnings $ .51 $ .49 $ .48 $ .45 $ .45 Diluted earnings .50 .48 .47 .44 .44 Dividends paid on common shares .20 .175 .175 .175 .175 Book value per common share $ 9.72 $ 9.35 $ 9.69 $ 9.62 $ 9.57 - --------------------------------------------------------------------------------------------------------------------------------- PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS Return on average assets 1.55 % 1.56 % 1.62 % 1.49 % 1.57 % Return on average equity 21.20 20.27 20.23 18.39 20.33 Net yield on earning assets (taxable equivalent) 4.25 4.28 4.27 4.27 4.35 Efficiency (taxable equivalent) * 53.1 53.2 51.2 53.2 52.1 Noninterest income as a percentage of total income (taxable equivalent) * 31.5 32.3 30.3 27.8 28.2 Equity as a percentage of total assets end of period 7.4 7.2 7.8 8.0 8.1 Average earning assets as a percentage of average total assets 93.7 93.3 93.2 93.0 93.6 Average loans & leases as a percentage of average deposits 102.9 102.7 101.9 101.4 102.4 - --------------------------------------------------------------------------------------------------------------------------------- CASH BASIS PERFORMANCE** Cash basis earnings excluding nonrecurring items $ 172,159 $ 166,353 $ 161,691 $ 150,581 $ 146,435 Diluted cash basis earnings per share .53 .52 .50 .47 .46 Return on average tangible assets 1.69 % 1.69 % 1.74 % 1.60 % 1.65 % Return on average tangible equity 27.88 26.03 25.00 22.69 23.57 Efficiency ratio (taxable equivalent) * 51.2 51.4 49.4 51.5 50.8 - --------------------------------------------------------------------------------------------------------------------------------- NOTES: Applicable ratio 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. ** 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 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 7 Investor Relations FAX (336) 733-3132 As of / For the Quarter Ended (Dollars in thousands) 9/30/1999 6/30/1999 3/31/1999 12/31/1998 9/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 10,807,108 $ 10,976,198 $ 10,678,944 $ 9,575,557 $ 9,775,745 Commercial loans & leases 14,061,748 13,466,226 12,911,407 12,342,049 11,871,189 Consumer loans 6,972,197 6,620,780 6,377,327 6,098,769 6,037,237 Revolving credit loans 577,842 567,802 535,526 538,561 517,540 Mortgage loans 5,751,499 5,741,332 6,109,539 6,510,722 6,491,710 Total loans & leases 27,363,286 26,396,140 25,933,799 25,490,101 24,917,676 Allowance for loan & lease losses 369,346 359,102 353,014 344,708 341,331 Other earning assets 502,884 495,349 124,436 134,136 295,403 Total earning assets 38,889,965 38,056,874 36,689,047 35,097,196 34,823,183 Total assets 41,649,596 40,791,790 39,383,586 37,903,119 37,419,848 Noninterest-bearing deposits 3,683,292 3,633,250 3,503,776 3,618,848 3,391,584 Savings & interest checking 1,695,274 1,860,026 1,922,439 2,002,801 2,033,516 Money rate savings 7,450,275 7,181,540 7,208,593 7,131,229 6,245,998 Time deposits 12,513,911 11,925,244 11,963,650 11,871,757 11,821,491 Other deposits 361,994 737,575 880,405 638,676 788,392 Total deposits 25,704,746 25,337,635 25,478,863 25,263,311 24,280,981 Short-term borrowed funds 5,894,267 6,430,086 4,732,271 3,751,748 4,557,580 Long-term debt 6,321,643 5,488,124 5,520,687 5,300,536 4,950,581 Total interest-bearing liabilities 34,237,364 33,622,595 32,228,045 30,696,747 30,397,558 Total shareholders' equity 3,093,915 2,952,455 3,070,605 3,044,330 3,034,290 Goodwill 591,687 500,873 487,088 405,207 411,693 Core deposit & other intangibles 10,084 9,840 8,562 7,922 6,731 Total intangibles 601,771 510,713 495,650 413,129 418,424 Mortgage servicing rights 144,578 133,249 116,832 101,371 98,528 Negative goodwill $ 22,067 $ 23,628 $ 25,189 $ 26,749 $ 28,310 - --------------------------------------------------------------------------------------------------------------------------------- Average balances Securities, at amortized cost $ 11,179,186 $ 10,888,154 $ 9,783,281 $ 9,742,293 $ 8,936,839 Commercial loans & leases 13,711,903 13,216,817 12,590,764 12,051,475 11,539,195 Consumer loans 6,799,386 6,525,876 6,195,383 6,066,693 5,874,401 Revolving credit loans 560,483 542,903 530,322 517,278 509,803 Mortgage loans 5,703,153 5,918,867 6,339,720 6,426,767 6,131,148 Total loans & leases 26,774,925 26,204,463 25,656,189 25,062,213 24,054,547 Other earning assets 494,597 240,828 164,970 203,809 209,742 Total earning assets 38,448,708 37,333,445 35,604,440 35,008,315 33,201,128 Total assets 41,042,508 40,010,241 38,204,479 37,657,707 35,479,318 Noninterest-bearing deposits 3,621,681 3,539,803 3,437,359 3,478,574 3,280,275 Savings & interest checking 1,824,742 1,983,673 2,029,125 2,068,331 2,063,123 Money rate savings 7,306,720 7,083,238 6,967,360 6,515,951 6,058,183 Time deposits 12,060,689 11,955,122 11,973,762 11,836,540 11,137,425 Other deposits 1,217,764 954,165 775,542 822,919 940,513 Total deposits 26,031,596 25,516,001 25,183,148 24,722,315 23,479,519 Short-term borrowed funds 5,553,712 5,223,272 4,053,913 4,195,572 3,984,815 Long-term debt 5,808,303 5,571,411 5,307,682 5,085,355 4,712,504 Total interest-bearing liabilities 33,771,930 32,770,881 31,107,384 30,524,668 28,896,563 Total shareholders' equity $ 3,009,697 $ 3,083,017 $ 3,058,946 $ 3,059,665 $ 2,738,963 - --------------------------------------------------------------------------------------------------------------------------------- RISK-BASED CAPITAL Risk-based capital: Tier 1 $ 2,673,649 $ 2,610,765 $ 2,612,382 $2,636,111 $2,577,722 Total 3,785,829 3,726,462 3,771,895 3,781,991 3,719,575 Risk-based capital ratios: Tier 1 9.4 % 9.5 % 9.8 % 10.5 % 10.7 % Total 13.4 13.5 14.2 15.0 15.4 Leverage capital ratio 6.6 6.6 6.9 7.1 7.4 - --------------------------------------------------------------------------------------------------------------------------------- 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:BBT) Senior Vice President (336) 733-3058 Page 8 Investor Relations FAX (336) 733-3132 As of / For the Quarter Ended (Dollars in thousands) 9/30/1999 6/30/1999 3/31/1999 12/31/1998 9/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- ASSET QUALITY ANALYSIS Allowance For Loan & Lease Losses Beginning balance $ 359,102 $ 353,014 $ 344,708 $ 341,331 $ 322,309 Allowance for acquired loans 7,473 169 1,722 - 15,542 Provision for loan & lease losses 20,000 21,603 20,264 24,302 21,428 Charge-offs (23,451) (22,767) (19,798) (26,628) (23,794) Recoveries 6,222 7,083 6,118 5,703 5,846 - --------------------------------------------------------------------------------------------------------------------------------- Net charge-offs (17,229) (15,684) (13,680) (20,925) (17,948) - --------------------------------------------------------------------------------------------------------------------------------- Ending balance $ 369,346 $ 359,102 $ 353,014 $ 344,708 $ 341,331 ================================================================================================================================= Nonperforming Assets Nonaccrual loans & leases $ 88,628 $ 83,592 $ 94,232 $ 97,321 $ 99,155 Foreclosed real estate 15,752 15,163 20,326 17,780 22,073 Other foreclosed property 10,190 8,487 10,551 11,548 11,669 Restructured loans 1,378 1,560 1,340 1,348 1,356 - --------------------------------------------------------------------------------------------------------------------------------- Nonperforming assets $ 115,948 $ 108,802 $ 126,449 $ 127,997 $ 134,253 ================================================================================================================================= Loans 90 days or more past due & still accruing $ 49,186 $ 45,021 $ 41,791 $ 54,299 $ 51,643 ================================================================================================================================= Asset Quality Ratios Nonaccrual and restructured loans & leases as a percentage of total loans & leases .33 % .32 % .37 % .39 % .40 % Nonperforming assets as a percentage of: Total assets .28 .27 .32 .34 .36 Loans & leases plus foreclosed property .42 .41 .49 .50 .54 Net charge-offs as a percentage of average loans & leases .26 .24 .22 .33 .30 Allowance for loan & lease losses as a percentage of loans & leases 1.35 1.36 1.36 1.35 1.37 Ratio of allowance for loan & lease losses to: Net charge-offs 5.40 x 5.71 x 6.36 x 4.15 x 4.79 x Nonaccrual and restructured loans & leases 4.10 4.22 3.69 3.49 3.40 - --------------------------------------------------------------------------------------------------------------------------------- As of / for the Nine Months Ended Increase (Decrease) 9/30/1999 9/30/1998 $ % - --------------------------------------------------------------------------------------------------------------------------------- Allowance For Loan & Lease Losses Beginning balance $ 344,708 $ 301,750 $ 42,958 14.2 % Allowance for acquired loans 9,364 20,656 (11,292) (54.7) Provision for loan & lease losses 61,867 71,503 (9,636) (13.5) Charge-offs (66,016) (70,045) (4,029) (5.8) Recoveries 19,423 17,467 1,956 11.2 - --------------------------------------------------------------------------------------------------------------------------------- Net charge-offs (46,593) (52,578) (5,985) (11.4) - --------------------------------------------------------------------------------------------------------------------------------- Ending balance $ 369,346 $ 341,331 $ 28,015 8.2 % ================================================================================================================================= Asset Quality Ratios Net charge-offs as a percentage of average loans & leases .24 % .30 % Ratio of allowance for loan & lease losses to net charge-offs 5.93 x 4.86 x ================================================================================================================================= For the Quarter Ended 9/30/1999 6/30/1999 3/31/1999 12/31/1998 9/30/1998 - --------------------------------------------------------------------------------------------------------------------------------- INTEREST YIELDS/RATES (Taxable equivalent) Interest income: Securities* 6.64 % 6.61 % 6.60 % 6.70 % 6.77 % Loans & leases 8.88 8.76 8.71 8.87 9.13 Other earning assets 4.83 4.77 4.83 5.71 5.52 -------------------------------------------------------------------------------- Total earning assets* 8.18 8.10 8.11 8.24 8.47 -------------------------------------------------------------------------------- Interest expense: Interest-bearing deposits 4.11 4.02 4.09 4.23 4.39 Short-term borrowed funds 4.95 4.65 4.71 4.94 5.32 Long-term debt 5.41 5.39 5.43 5.59 5.76 -------------------------------------------------------------------------------- Total interest-bearing liabilities 4.47 4.36 4.40 4.56 4.74 -------------------------------------------------------------------------------- Net yield on earning assets 4.25 % 4.28 % 4.27 % 4.27 % 4.35 % ================================================================================ - --------------------------------------------------------------------------------------------------------------------------------- NOTES: *Yields calculated based on securities at amortized cost. All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized.
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: October 12, 1999 -----END PRIVACY-ENHANCED MESSAGE-----