-----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, RVPW9x2E4yoQTNYeXTrBmMBHK45xFKZzb2tLqOFPN0wcncADKXIDQrOxFVZHBAKP nC64H90VMBDf91BlgIwCGw== 0000891554-99-001520.txt : 19990730 0000891554-99-001520.hdr.sgml : 19990730 ACCESSION NUMBER: 0000891554-99-001520 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990728 ITEM INFORMATION: FILED AS OF DATE: 19990729 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: 99673122 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 NOTICE TO ACQUIRE PREMIER BANCSHARES, INC. 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 July 29, 1999 Date of Report (Date of earliest event recorded) 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 33 pages. ================================================================================ Item 5. Other Events The purpose of this Current Report on Form 8-K is to announce that BB&T Corporation ("BB&T") has entered into a definitive agreement to acquire Premier Bancshares Inc. ("Premier") of Atlanta, Georgia, in a $624.1 million stock swap that will give BB&T its third Georgia bank and the sixth largest share of deposits in metropolitan Atlanta. Premier Bancshares, with $2 billion in assets (including three pending acquisitions), operates 32 banking offices in Atlanta and North Georgia and 10 mortgage banking offices through a subsidiary, Premier Lending. Premier will be BB&T's second acquisition in the metropolitan Atlanta area, the largest metropolitan statistical area in the Southeast. BB&T completed its acquisition of Newnan, Ga.-based First Citizens Corp. on July 9. The transaction, approved by the directors of both companies, will be accounted for as a pooling of interests. Premier shareholders will receive $18.43 per share based on BB&T's closing price Tuesday of $35.75. The value to be received by each shareholder is based upon a fixed exchange ratio of 0.5155 BB&T share for each Premier share. Premier will boost BB&T's assets in Georgia to more than $4 billion, including a pending acquisition with Macon-based First Liberty Financial Corp. BB&T plans to supplement Premier's real estate lending focus with BB&T's emphasis on retail customers and small to middle market commercial customers. Premier customers will be introduced to a broad product line that includes insurance, mutual funds, annuities, trust, retail brokerage, investment banking, treasury services and international banking. BB&T's newest region will be headquartered in Atlanta and Premier Chairman and Chief Executive Officer Darrell D. Pittard will be named its president. BB&T currently has 17 autonomous regions, which operate like community banks. More than 95 percent of lending decisions are made locally. Premier operates banking offices in the following counties: Baldwin, Barrow, Chattooga, Cobb, DeKalb, Forsyth, Fulton, Glynn, Greene, Gwinnett, Hall, Henry and Spalding. The merger, which is subject to the approval of Premier shareholders and banking regulators, is expected to be completed in the first quarter of 2000. Winston-Salem-based BB&T Corporation, with $40.8 billion in assets, operates 601 banking offices in the Carolinas, Georgia, Virginia, Maryland and Washington, D.C. Item 7. Exhibits 99.1 Information Provided to Analysts BB&T and Premier Bancshares, Inc. Atlanta, Georgia Expanding a Great Franchise Analyst Presentation July 28, 1999 BB&T has made forward-looking statements in the accompanying analyst presentation materials that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of the management of BB&T, and on the information available to management at the time the analyst presentation materials were prepared. In particular, the analyst materials in this report include statements regarding estimated earnings per share of BB&T on a stand alone basis, expected cost savings from the merger, estimated restructuring charges relating to the merger, estimated increases in Premier's fee income ratio, the anticipated accretive effect of the merger, and BB&T's anticipated performance in future periods. With respect to estimated cost savings and restructuring charges, BB&T has made assumptions about, among other things, the extent of operational overlap between BB&T and Premier, the amount of general and administrative expense consolidation, costs relating to converting Premier's bank operations and data processing to BB&T's systems, the size of anticipated reductions in fixed labor costs, the amount of severance expenses, the extent of the charges that may be necessary to align the companies' respective accounting reserve policies, and the cost related to the merger. The realization of cost savings and the amount of restructuring charges are subject to the risk that the foregoing assumptions are inaccurate. Any statements in the accompanying exhibit regarding the anticipated accretive effect of the merger and BB&T's anticipated performance in future periods are subject to risks relating to, among other things, the following possibilities: (1) expected cost savings from this merger or other previously-announced mergers may not be fully realized or realized within the expected time frame; (2) deposit attrition, customer loss or revenue loss following proposed mergers may be greater than expected; (3) competitive pressure among depository and other financial institutions may increase significantly; (4) costs or difficulties related to the integration of the businesses of BB&T and its merger partners, including Premier, may be greater than expected; (5) changes in the interest rate environment may reduce margins; (6) general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality, or a reduced demand for credit; (7) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which BB&T and Premier are engaged; (8) adverse changes may occur in the securities markets; and (9) competitors of BB&T and Premier may have greater financial resources and develop products that enable such competitors to compete more successfully than BB&T and Premier. BB&T believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward-looking statements, which are based on current expectations. Such statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and shareholder values of BB&T following completion of the merger may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond management's ability to control or predict. 2 Outline - - Background and transaction terms - - Financial data - - Rationale and strategic objectives - - Investment criteria - - Summary 3 BB&T Corporation (BBT) - - $43.1 billion bank holding company* - - 670 branch locations in NC, SC, VA, GA, MD, WV, KY and the District of Columbia* For 6 months ended 6/30/99** --------------- - - ROA 1.62% - - Cash Basis ROA 1.75% - - ROE 20.62% - - Cash Basis ROE 25.98% - - Efficiency ratio 51.80% * Includes the pending acquisitions of Matewan BancShares, Inc. and First Liberty Financial Corp. **Excludes non-recurring items. 4 Premier Bancshares, Inc. (PMB) - - $2.0 billion bank holding company* - - 32 banking offices in Georgia* - - 10 Premier Lending offices For 6 months ended 6/30/99** --------------- - - ROA 1.44% - - ROE 16.65% - - Efficiency ratio 66.28% * Includes the pending acquisitions of North Fulton BancShares, Inc., Farmers and Merchants Bank, and Bank Atlanta. **Excludes non-recurring items. 5 Pro Forma Company Profile June 30, 1999 ------------- - - Size: $45.1 billion in assets $12.4 billion in market capitalization* - - Offices NC: 342 VA: 110 SC: 90 GA: 84 MD: 53 KY: 10 WV: 7 DC 6 ------------ Total: 702 * Based on closing prices as of 7/27/99. Includes shares to be issued for Matewan BancShares, Inc. and First Liberty Financial Corp. 6 Terms of the Transaction 7 Terms of the Transaction - - Purchase price: $18.43 per share 1 - - Aggregate value: $624.1 million1 (including options) - - Consideration: Fixed exchange ratio of .5155 BB&T shares for each Premier share - - Structure: Tax-free exchange of stock equal to 100% of purchase price - - Accounting treatment: Transaction will be accounted for as a pooling-of-interests - - Lock-up provision: Termination fee - - Due Diligence: Pre-deal due diligence has been completed - - Expected Closing: First quarter of 2000 1 Based on July 27, 1999 BB&T closing stock price of $35.75. 8 Pricing - - Purchase price $18.43 - - Premium/market (5.19)% - - Price/6-30-99 stated book 3.50x - - Price/LTM EPS 26.3x - - BB&T shares issued 17.46 million* * BB&T shares issued based on PMB shares outstanding adjusted for stock options and pending acquisitions. 9 Acquisition Comparables* Bank Acquisitions with Deal Values over $200 Million Announced Since 3-1-99 - ------------------------------------------------------------------------------------------------------------------------------------
Total Deal Pr/ Deal Pr/ Assets Date Deal Deal Deal Pr/ LTM LTM Core Buyer Seller Seller Announced Value Pr/Bk Tg Bk EPS EPS ($000) ($M) (%) (%) (x) (x) Citizens Financial Group Inc. UST Corp. 5,929,827 06/21/1999 1,434.2 256.0 282.7 25.6 20.0 Fifth Third Bancorp CNB Bancshares Inc. 7,218,796 06/16/1999 2,327.9 332.3 358.7 33.0 26.5 Sky Financial Group Inc. Mahoning National Bancorp Inc. 808,691 06/07/1999 306.6 315.8 315.8 21.4 22.0 Zions Bancorporation First Security Corporation 21,959,222 06/06/1999 5,824.4 343.0 417.5 22.8 N/A Peoples Heritage Financial Group Banknorth Group Inc. 4,338,522 06/02/1999 777.9 235.0 305.9 22.1 17.1 AmSouth Bancorporation First American Corporation 20,326,467 06/01/1999 6,394.8 340.8 388.1 28.9 21.5 U.S. Bancorp Western Bancorp 2,496,237 05/19/1999 958.1 261.5 437.4 47.7 33.9 Charter One Financial Inc. St. Paul Bancorp Inc. 5,980,486 05/17/1999 1,209.8 229.7 230.8 38.2 23.1 HSBC Holdings Plc Republic New York Corporation 50,453,034 05/10/1999 8,077.8 277.5 305.7 51.8 N/A Zions Bancorporation Pioneer Bancorporation 1,031,369 05/07/1999 346.5 513.0 513.0 26.1 N/A Firstar Corporation Mercantile Bancorporation Inc. 35,578,819 04/30/1999 10,669.6 335.9 445.9 27.4 24.6 BB&T Corp. First Libery Financial 1,664,348 04/28/1999 500.0 352.6 383.9 24.3 24.3 Citizens Banking Corporation F&M Bancorporation Inc. 2,429,651 04/19/1999 822.2 331.7 347.6 23.8 N/A Old Kent Financial Corp. Pinnacle Banc Group Inc. 1,147,478 03/19/1999 239.8 205.1 249.0 16.6 31.0 Fifth Third Bancorp Emerald Financial Corporation 668,459 03/01/1999 222.6 371.8 375.4 27.5 32.5 Maximum 50,453,034 10,669.6 513.0 513.0 51.8 33.9 Minimum 668,459 222.6 205.1 230.8 16.6 17.1 Average 10,802,094 2,674.1 313.4 357.2 29.1 25.1 Median 4,338,522 958.1 331.7 358.7 26.1 22.0 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ BB&T Corporation First Libery Financial 1,664,348 04/28/99 500.0 352.6 383.9 26.8 24.3 BB&T Corporation Matewan Bcshs Inc. 676,907 02/25/99 157.9 232.2 274.0 23.2 23.2 BB&T Corporation Mason-Dixon Bcshs 1,102,242 01/28/99 256.9 308.4 335.8 23.5 25.0 BB&T Corporation First Citizens Corp. 385,582 01/27/99 125.9 291.1 352.3 22.9 22.9 BB&T Corporation MainStreet Financial 2,041,955 08/27/98 539.7 320.5 340.3 27.4 27.4 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ BB&T Corporation Premier Bancshares, Inc. $ 1,953,747 624.1 349.7 360.6 26.3 ** 21.9 Over / (Under) Average Comparable 36.3 3.5 (2.8) (3.2) ** Based on Premier's originally reported earnings for the four quarters ending 6-30-99 of $.70. - ------------------------------------------------------------------------------------------------------------------------------------
* Source for Acquisition Comparables: SNL Securities. 10 Financial Data 11 Financial Summary For Six Months Ended: 6/30/99 6/30/99 BB&T 1 PMB 1 ------- ------- ROA 1.62% 1.44% ROE 20.62 16.65 Net interest margin (FTE) 4.28 4.52 Efficiency ratio 51.80 66.28 Net charge-offs .22 .03 Reserve/NPLs 441.80 442.70 NPAs/assets .26 .37 1 Excludes non-recurring items. 12 Capital Strength BB&T PMB (6/30/99) (6/30/99) --------- --------- Equity/assets 7.2% 9.2% Leverage capital ratio 6.6% 11.0% Total risk-based capital 13.7% 14.2% 13 Rationale for Acquisition - - BB&T has an announced strategy to pursue in-market (Carolinas/Virginia/DC/Maryland/Georgia) and contiguous state acquisitions of high quality banks and thrifts in the $250 million to $10 billion range. The acquisition of Premier Bancshares is consistent with this strategy. - - This acquisition is very consistent with past acquisitions which we have successfully executed, i.e. it fits our model. - - Premier provides BB&T with an enhanced market presence in the high growth corridors of the Metro Atlanta market. 14 Strategic Objectives The key strategic objectives in this acquisition are: - Expansion of the Metro Atlanta market - Improve efficiency * 25% cost savings to be realized in the year 2000 - Supplement Premier's primarily commercial/consumer real estate lending focus with: * BB&T's focus on the small to middle market commercial customer and BB&T's lending expertise in those segments * BB&T's strong retail banking emphasis - Increase productivity and market penetration through the use of BB&T's successful "Decathlon" sales management system 15 Franchise Enhancement - - Significant enhancement of BB&T's Georgia operations - - Provides added presence in a major business and financial center in the south - - Provides BB&T with a branch distribution system in the most attractive markets of Metro Atlanta - - Increases BB&T's penetration along the Interstate 85 corridor 16 Efficiency Improvement Targeted Annual Cost Savings ---------------------------- $18.9 million or approximately 25% of PMB's expense base 17 After-Tax One-Time Charges One-time merger-related charges ------------------------------- $24.0 million 18 Branch Locations [Map showing location of BB&T branches throughout MD, VA, WV, KY, NC, SC and GA inserted here] 19 Branch Locations [Map showing location of BB&T branches throughout GA and parts of SC and NC inserted here] 20 Market Characteristics [Graphic of State of Georgia with Metro Atlanta region indicated by two concentric circles inserted on left side of slide] - - 1999 unemployment rate - 3.2% (26% below national rate) - - With 3.14 million residents, the Metro Atlanta market is the Southeast's largest MSA - - 14 Fortune 500 companies are headquartered in Metro Atlanta - - Metro Atlanta was rated as the 2nd best City for Business by Fortune Magazine - - With a projected 267,600 new jobs created between 1995-2000, Metro Atlanta was rated as the Top Metropolitan Area for Job Creation by DRI/McGraw Hill Total employment is projected to expand 29.9% (1993-2005) - - Per Capita Income of $25,583; 10.2% above the national average 21 BB&T Investment Criteria - - EPS and Cash Basis EPS (accretive by year 2) - - Internal rate of return (15% or better) - - Return on equity and Cash Basis ROE (accretive by year 3) - - Return on assets and Cash Basis ROA (accretive by year 3) - - Book value per share (accretive by year 5) - - Must not cause combined leverage capital ratio to go below 7% Criteria are listed in order of importance. There are sometimes trade-offs among criteria. 22 Assumptions - - BB&T's 1999 and 2000 EPS are based on First Call estimates of $1.97 and $2.19 respectively, and subsequent years are based on 9% income statement and balance sheet growth. - - PMB's 1999 EPS is based on First Call's estimate of $.78. For subsequent years, we have assumed income statement and balance sheet growth of 12% annually from 2000 through 2009 except for the enhancements cited below. - - $18.9 million in cost savings (25% of PMB's expense base). - - PMB's core net interest margin (non-FTE) is maintained at current levels. - - BB&T will be able to enhance performance through more effective management of Premier's balance sheet. 23 Earnings Per Share Impact Accretion Accretion (Dilution) Pro Forma (Dilution) Pro Forma Pro Forma Cash Basis Pro Forma EPS Shares EPS Shares --------- ---------- ---------- ---------- 2000* $ 2.20 $ 0.01 $ 2.34 $ 0.01 2001 2.40 0.02 2.54 0.01 2002 2.62 0.03 2.76 0.02 2003 2.86 0.03 3.00 0.03 2004 3.13 0.04 3.26 0.04 2005 3.42 0.05 3.55 0.05 2006 3.73 0.06 3.86 0.06 2007 4.07 0.08 4.20 0.07 2008 4.45 0.09 4.58 0.09 2009 4.86 0.11 4.99 0.11 Internal rate of return 16.18% ------ * Excludes non-recurring items 24 ROE Impact 1 Pro Forma Pro Forma Cash Basis ROE(%) Change ROE(%) Change --------- ------ ---------- ------ 2000 2 19.22 0.07 23.54 (0.17) 2001 18.62 0.07 22.06 (0.11) 2002 18.13 0.08 20.88 (0.06) 2003 17.68 0.09 19.90 (0.03) 2004 17.29 0.10 19.08 0.00 1 The decrease in ROE results from the build up in equity relative to assets. 2 Excludes non-recurring items 25 ROA Impact Pro Forma Pro Forma Cash Basis ROA(%) Change ROA(%) Change --------- ------ ---------- ------ 2000 1 1.61 .01 1.73 .00 2001 1.61 .01 1.72 .00 2002 1.61 .01 1.71 .00 2003 1.62 .01 1.70 .00 2004 1.62 .01 1.70 .00 1 Excludes non-recurring items 26 Book Value/Capital Impact Pro Forma Book Value Per Share -------------------- Pro Forma Accretion Leverage Accretion Stated (Dilution) Ratio (Dilution) ------ ---------- --------- ---------- 2000 $ 12.15 $ 0.05 7.96% .11 2001 13.65 0.07 8.40 .10 2002 15.29 0.09 8.80 .08 2003 17.09 0.13 9.16 .07 2004 19.08 0.17 9.49 .06 2005 21.28 0.23 9.80 .05 2006 23.71 0.29 10.09 .04 2007 26.40 0.37 10.37 .03 2008 29.39 0.46 10.63 .02 2009 32.71 0.58 10.89 .01 27 Summary * The acquisition of Premier Bancshares is a strong strategic fit: - It helps accomplish our goal of expanding the Georgia market; more specifically, the Atlanta MSA - It fits culturally and geographically - This is the type of merger we have consistently successfully executed * Overall Investment Criteria are met: - EPS and Cash Basis EPS accretive in year 1 - IRR 16.18% - ROA and Cash Basis ROA positive in year 1 - Book value accretive in all years - Combined leverage ratio remains above 7% - Accelerated dividend growth potential in year 1 28 Appendix - - Historical Financial Data - - Glossary 29 Premier Bancshares, Inc. Financial Summary June YTD 1996 1997 1998 1999 ------------------------------------------------------------------- Earnings Summary (In thousands) Interest Income (FTE) Interest on loans & leases $ 66,870 $ 83,189 $ 98,768 $ 52,759 Interest & dividends on securities 14,680 14,806 11,374 4,378 Interest on temporary investments 4,514 5,667 2,653 ------------------------------------------------------------------- Total interest income (FTE) 86,064 101,814 115,809 59,790 ------------------------------------------------------------------- Interest Expense Interest expense on deposit accounts 36,923 42,773 47,263 22,332 Interest on short-term borrowings 2,830 2,531 1,058 3,754 Interest on long-term debt 127 733 6,775 2,203 ------------------------------------------------------------------- Total interest expense 39,880 46,037 55,096 28,289 ------------------------------------------------------------------- Net interest income (FTE) 46,184 55,777 60,317 31,501 Less taxable equivalency adjustment 788 738 562 143 ------------------------------------------------------------------- Net interest income 45,396 55,039 60,151 31,358 Provision for loan losses 473 1,767 605 925 ------------------------------------------------------------------- Net interest income after provision 44,923 53,272 59,546 30,433 ------------------------------------------------------------------- Noninterest Income Service charges on deposit accounts 4,213 4,517 4,441 2,266 Non-deposit fees and commissions 1,376 2,063 4,675 1,006 G / (L) on sale of loans & securities 742 881 2,902 29 Other operating income 10,672 16,736 27,413 15,590 ------------------------------------------------------------------- Total noninterest income 17,003 24,197 39,431 18,891 ------------------------------------------------------------------- Noninterest Expense Personnel 24,525 28,894 37,444 19,399 Occupancy & equipment 5,469 6,531 8,068 4,121 Other operating expenses 11,842 12,315 16,089 8,778 ------------------------------------------------------------------- Total noninterest expense 41,836 47,740 61,601 32,298 Net income before taxes 20,090 29,729 37,376 17,026 Income taxes 6,059 10,020 13,366 6,367 ------------------------------------------------------------------- Net income before nonrecurring charges 14,031 19,709 24,010 10,659 ------------------------------------------------------------------- Nonrecurring charges (374) (972) (3,096) (992) ------------------------------------------------------------------- Net income $ 13,657 $ 18,737 $ 20,914 $ 9,667 =================================================================== Basic EPS $ 0.54 $ 0.73 $ 0.80 $ 0.37 Diluted EPS 0.52 0.71 0.78 0.36 Diluted EPS before nonrecurring charges 0.55 0.75 0.91 0.40 Book value $ 5.12 $ 4.72 $ 5.23 $ 5.27 EOP shares 19,954 25,559 26,000 26,167 Basic shares 25,028 25,442 25,811 26,039 Diluted shares 25,679 26,120 26,399 26,430 Does not include pending acquisitions of North Fulton Bancshares, Farmers and Merchants Bank, and Bank Atlanta. 30
Premier Bancshares, Inc. Financial Summary June YTD 1996 1997 1998 1999 ------------------------------------------------------------------- Average Balance Sheet (In thousands) Assets Loans $ 630,091 $ 808,450 $ 1,036,266 $ 1,164,801 Securities 223,307 222,544 170,554 143,776 Other earning assets 92,086 72,509 99,006 97,859 ------------------------------------------------------------------- Total interest-earning assets 945,484 1,103,503 1,305,826 1,406,436 ------------------------------------------------------------------- Goodwill & other intangibles 5,385 5,193 4,751 4,350 Other assets 62,882 76,743 90,206 83,799 ------------------------------------------------------------------- Total assets $ 1,013,751 $ 1,185,439 $ 1,400,782 $ 1,494,585 =================================================================== Net interest margin 4.88% 5.05% 4.65% 4.52% Securities as a percent of earning assets 24% 20% 13% 10% Liabilities & Shareholders' Equity Interest-bearing deposits: Savings, Money Market, & NOW $ 251,067 $ 291,007 $ 385,394 $ 449,753 CD's and other time 485,179 560,022 561,044 532,523 ------------------------------------------------------------------- Total interest-bearing deposits 736,246 851,029 946,438 982,276 Short-term borrowed funds 34,750 33,142 26,480 127,611 Long-term debt 1,694 20,853 104,887 54,574 ------------------------------------------------------------------- Total interest-bearing liabilities 772,690 905,024 1,077,805 1,164,461 Demand deposits 131,210 157,004 180,644 183,706 Other liabilities 9,696 11,816 12,010 14,904 ------------------------------------------------------------------- Total liabilities 913,596 1,073,844 1,270,459 1,363,071 ------------------------------------------------------------------- Preferred equity 2,446 2,446 2,446 2,446 Common equity 97,709 109,149 127,877 129,068 ------------------------------------------------------------------- Total equity 100,155 111,595 130,323 131,514 ------------------------------------------------------------------- ------------------------------------------------------------------- Total liabilities & shareholders' equity $ 1,013,751 $ 1,185,439 $ 1,400,782 $ 1,494,585 =================================================================== Other int-liab. as a percent of total assets 4% 5% 9% 12% Does not include pending acquisitions of North Fulton Bancshares, Farmers and Merchants Bank, and Bank Atlanta.
31 Premier Bancshares, Inc. Financial Summary June YTD 1996 1997 1998 1999 ------------------------------------------------------------------- Ratio Analysis ROA 1.38% 1.66% 1.71% 1.44% ROCE 14.36% 18.06% 18.78% 16.65% Efficiency ratio 67.0% 60.4% 63.3% 64.1% Adj. noninterest income / Adj. revenues 26.0% 29.5% 37.6% 37.5% Average equity / Average assets 9.9% 9.4% 9.3% 8.8% Credit Quality (In thousands) Beginning $ 10,696 $ 11,877 $ 13,782 $ 14,080 ------------------------------------------------------------------- Provision 473 1,767 605 925 Acquired allowance - (74) - - Net charge-offs 708 212 (307) (160) ------------------------------------------------------------------- Ending allowance $ 11,877 $ 13,782 $ 14,080 $ 14,845 Allowance 1.71% 1.51% 1.22% 1.26% Charge-off rate -0.11% -0.03% 0.03% 0.01% Period end loans & leases $ 695,994 $ 913,294 $1,158,461 $ 1,175,458 Period end total shareholder equity $ 104,611 $ 122,988 $ 138,539 $ 140,315 Does not include pending acquisitions of North Fulton Bancshares, Farmers and Merchants Bank, and Bank Atlanta.
32 Glossary Return on Assets - recurring earnings for the period as a percentage of average assets for the period. Return on Equity - recurring earnings for the period as a percentage of average common equity for the period. Cash Basis Performance Results and Ratios - These calculations exclude the effect on net income of amortization expense applicable to certain intangible assets. The ratios also exclude the effect of the unamortized balances of these intangibles from assets and equity. Efficiency Ratio - calculated as recurring noninterest expense as a percentage of the sum of recurring net interest income on a fully taxable equivalent basis and recurring noninterest income. Leverage Capital Ratio - Common shareholders' equity excluding unrealized securities gains and losses and certain intangible assets as a percentage of average assets for the most recent quarter less certain intangible assets. Total Risk-Based Capital Ratio - The sum of shareholders' equity, a qualifying portion of subordinated debt and a qualifying portion of the allowance for loan and lease losses as a percentage of risk-weighted assets. Net Charge-Off Ratio - Loan losses net of recoveries as a percentage of average loans and leases. Internal Rate of Return - The interest rate that equates the present value of future returns to the investment outlay. An investment is considered acceptable if its IRR exceeds the required return. The investment is defined as the market value of the stock and/or other consideration to be received by the selling shareholders. Recurring Results or Ratios - earnings excluding charges and expenses principally related to completing mergers and acquisitions. Certain of the ratios discussed above may be annualized if the applicable periods are less than a full year. 33 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BB&T CORPORATION (Registrant) By: /S/ SHERRY A. KELLETT Sherry A. Kellett Senior Executive Vice President and Controller (Principal Accounting Officer) Date: July 29, 1999. -----END PRIVACY-ENHANCED MESSAGE-----