WINSTON-SALEM, N.C.,
April 23, 2015 /PRNewswire/
-- BB&T Corporation (NYSE: BBT) today reported quarterly
earnings for the first quarter of 2015. Net income available to
common shareholders was $488 million,
compared to $496 million earned in
the first quarter of 2014. Earnings per diluted common share
totaled $0.67 for the quarter,
compared to $0.68 for the first
quarter of last year. Net income available to common shareholders
was affected by $13 million in
pre-tax merger-related charges, or $0.01 per diluted share.
"Given the challenges of the current rate environment, I am
pleased with our financial performance and other accomplishments
during the quarter," said Chairman and Chief Executive Officer
Kelly S. King. "We enjoyed solid
loan growth, good expense control in a seasonally challenging
quarter and outstanding credit quality.
"Revenues for the first quarter were $2.3
billion, up $34 million from
the first quarter of 2014. These results were driven by continued
strength in our fee-based businesses, with insurance achieving a
record quarter. Excluding residential mortgage loans, average loans
grew 5.4% compared to last quarter, and our credit metrics improved
across the board.
"We are also pleased that the Federal Reserve did not object to
our capital plan, which includes an increase in the quarterly
dividend to $0.27, a 12.5% increase,
three previously announced acquisitions and share buybacks of up to
$820 million beginning in the third
quarter of 2015," said King.
"On April 1, we announced an
agreement to substantially increase our partnership interest in
AmRisc and to sell American Coastal Insurance Company, subject to
regulatory approval. AmRisc does not assume any underwriting risk
and represents an attractive fee income business for BB&T,
while the sale of American Coastal Insurance Company will eliminate
our exposure to potential underwriting losses in the future.
"We completed the acquisition of 41 branches in Texas, which added approximately $1.9 billion in deposits," said King. "In
addition, the pending acquisitions of The Bank of Kentucky and Susquehanna Bancshares are on
track to close later this year.
"Capping off a successful first quarter, we achieved a
significant milestone by launching our new general ledger system.
We are very pleased with this accomplishment as we continue to
automate business processes to make our company more efficient,"
said King.
First Quarter 2015 Performance
Highlights
- Taxable equivalent revenues were $2.3
billion for the first quarter, down $49 million from the fourth quarter of 2014
- Net interest margin was 3.33%, down three basis points compared
to the prior quarter due to lower rates on new loans and runoff of
loans acquired from the FDIC
- Insurance income was up $31
million, an annualized increase of 30.7% that reflects
seasonal growth in employee benefit commissions
- Maintained a consistent fee income ratio of 45.8% compared to
46.2% in the prior quarter, reflecting revenue diversification
- Noninterest expense was $1.4
billion, an annualized increase of 8.1% compared to the
prior quarter
- Personnel expense was up $36
million due to higher pension costs and seasonal increases
in payroll taxes and fringe benefits, partially offset by a
reduction in incentives and a slight headcount reduction
- Loan-related expense decreased $33
million primarily due to a fourth quarter charge
- Professional services decreased $14
million due to reduced legal and consulting costs
- Other expense was up $42 million
largely due to prior period benefits for franchise taxes and
insurance-related expenses
- The adjusted efficiency ratio was 58.5%
- Average loans and leases held for investment increased 1.8% on
an annualized basis compared to the fourth quarter of 2014; up 5.4%
excluding residential mortgage
- Average C&I loans increased 10.7%
- Average sales finance loans increased 9.9%
- Average residential mortgage loans decreased 8.1%, reflecting
the strategic decision to sell conforming mortgage loan
production
- Average deposits decreased $784
million, or 2.4% annualized, compared to the prior quarter
- Average noninterest-bearing deposits increased $571 million, or 5.9%
- Average interest-bearing deposits decreased $1.4 billion, driven by time deposits, which
decreased $3.0 billion
- Average interest-bearing deposit costs were 0.25%, flat
compared to the prior quarter
- Deposit mix improved, with average noninterest-bearing deposits
representing 30.6% of total deposits, compared to 30.0% in the
prior quarter
- Asset quality continued to improve
- Nonperforming assets decreased $17
million, or 2.2%, from December 31,
2014
- Delinquent loans decreased $280
million, or 19.6%
- The allowance for loan loss coverage ratio was 2.45 times
nonperforming loans held for investment in the first quarter,
versus 2.39 times in the fourth quarter
- Capital levels remained strong across the board
- Common equity tier 1 to risk-weighted assets was 10.5%, or
10.3% on a fully phased-in basis
- Tier 1 risk-based capital was 12.2%
- Total capital was 14.5%
- Leverage capital was 10.1%
- Tangible common equity to tangible assets was 8.0%
EARNINGS
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in millions,
except per share data)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
Net income available
to common shareholders
|
|
$
|
488
|
|
$
|
551
|
|
$
|
496
|
|
$
|
(63)
|
|
$
|
(8)
|
Diluted earnings per
common share
|
|
|
0.67
|
|
|
0.75
|
|
|
0.68
|
|
|
(0.08)
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
taxable equivalent
|
|
$
|
1,347
|
|
$
|
1,371
|
|
$
|
1,383
|
|
$
|
(24)
|
|
$
|
(36)
|
Noninterest
income
|
|
|
997
|
|
|
1,022
|
|
|
927
|
|
|
(25)
|
|
|
70
|
|
Total
revenue
|
|
$
|
2,344
|
|
$
|
2,393
|
|
$
|
2,310
|
|
$
|
(49)
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (%)
|
|
|
1.18
|
|
|
1.28
|
|
|
1.27
|
|
|
(0.10)
|
|
|
(0.09)
|
Return on average
risk-weighted assets (%)
|
|
|
1.48
|
|
|
1.68
|
|
|
1.69
|
|
|
(0.20)
|
|
|
(0.21)
|
Return on average
common shareholders' equity (%)
|
|
|
9.05
|
|
|
9.99
|
|
|
9.77
|
|
|
(0.94)
|
|
|
(0.72)
|
Return on average
tangible common shareholders'
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity (%)
|
|
|
14.00
|
|
|
15.45
|
|
|
15.68
|
|
|
(1.45)
|
|
|
(1.68)
|
Net interest margin -
taxable equivalent (%)
|
|
|
3.33
|
|
|
3.36
|
|
|
3.52
|
|
|
(0.03)
|
|
|
(0.19)
|
Efficiency ratio (1)
(%)
|
|
|
58.5
|
|
|
55.6
|
|
|
58.2
|
|
|
2.9
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes certain items as detailed in the non-GAAP reconciliations
in the Quarterly Performance Summary.
|
First Quarter 2015 compared to Fourth Quarter 2014
Consolidated net income available to common shareholders for the
first quarter of 2015 was $488
million, a decrease of $63
million compared to the fourth quarter of 2014. On a diluted
per common share basis, earnings for the first quarter were
$0.67, compared to $0.75 earned in the prior quarter. BB&T's
results of operations for the first quarter produced an annualized
return on average assets of 1.18%, an annualized return on average
risk-weighted assets of 1.48% and an annualized return on average
common shareholders' equity of 9.05%, compared to prior quarter
ratios of 1.28%, 1.68% and 9.99%, respectively. BB&T's return
on average tangible common shareholders' equity was 14.00% for the
first quarter of 2015, compared to 15.45% for the prior
quarter.
Effective January 1, 2015,
BB&T adopted new guidance related to the accounting for
investments in qualified affordable housing projects. For prior
periods, amortization expense related to qualifying investments in
low income housing tax credits was reclassified from other income
to provision for income taxes, and the amounts of amortization and
tax benefits recognized were revised as a result of the adoption of
the proportional amortization method. See Selected Items &
Additional Information in the Quarterly Performance Summary for the
impact to prior periods.
Total revenues were $2.3 billion
for the first quarter of 2015, a decrease of $49 million compared to the prior quarter, which
reflects a decrease in noninterest income of $25 million and a decrease in taxable-equivalent
net interest income of $24
million.
The change in taxable-equivalent net interest income includes a
$26 million decrease in interest
income, driven by lower yields on new loans, and a $2 million decrease in interest expense. Net
interest margin was 3.33% for the first quarter, a decrease of
three basis points compared to the prior quarter. Average earning
assets increased $808 million, or
2.0% annualized, while average interest-bearing liabilities were
flat. The annualized yield on the total loan portfolio for the
first quarter was 4.23%, a six basis point decrease compared to the
prior quarter, which primarily reflects lower yields on new loans
and the continued runoff of higher yielding loans acquired from the
FDIC. The annualized fully taxable-equivalent yield on the average
securities portfolio for the first quarter was 2.47%, up two basis
points compared to the prior quarter.
The average annualized cost of interest-bearing deposits was
0.25%, flat compared to the prior quarter. The average annualized
rate paid on long-term debt was 2.18%, a decrease of four basis
points compared to the prior quarter, which primarily reflects the
impact of hedging activity.
Excluding loans acquired from the FDIC, the provision for credit
losses was $105 million and net
charge-offs were $100 million for the
first quarter, compared to $84
million and $102 million,
respectively, for the fourth quarter. The prior quarter included a
benefit of $24 million related to the
sale of residential mortgage loans.
Noninterest expense was $1.4
billion for the first quarter, up $28
million compared to the prior quarter. This increase was
driven by a $42 million increase in
other expense and a $36 million
increase in personnel expense, partially offset by a $33 million decrease in loan-related expense. The
increase in other expense was primarily the result of benefits for
franchise taxes and insurance-related expense recognized in the
prior period, while the increase in personnel expense was due to
higher pension costs and seasonal increases in payroll taxes and
fringe benefits, partially offset by a reduction in incentives and
approximately 150 fewer full-time equivalent employees. The
decrease in loan-related expense was primarily due to a
$27 million charge in the prior
quarter related to an ongoing review of mortgage lending
processes.
The provision for income taxes was $241
million for the first quarter, compared to $277 million for the prior quarter. This produced
an effective tax rate for the first quarter of 30.6%, compared to
31.5% for the prior quarter.
First Quarter 2015 compared to First Quarter 2014
Consolidated net income available to common shareholders for the
first quarter of 2015 was $488
million, a decrease of $8
million compared to the same quarter of 2014. On a diluted
per common share basis, earnings for the first quarter of 2015 were
$0.67, compared to $0.68 for the earlier quarter. BB&T's results
of operations for the first quarter of 2015 produced an annualized
return on average assets of 1.18%, an annualized return on average
risk-weighted assets of 1.48% and an annualized return on average
common shareholders' equity of 9.05%, compared to prior quarter
ratios of 1.27%, 1.69% and 9.77%, respectively. BB&T's return
on average tangible common shareholders' equity was 14.00% for the
first quarter of 2015, compared to 15.68% for the earlier
quarter.
Total revenues were $2.3 billion
for the first quarter of 2015, up $34
million compared to the earlier quarter as a $70 million increase in noninterest income was
partially offset by a $36 million
decrease in taxable-equivalent net interest income.
Net interest margin was 3.33%, compared to 3.52% for the earlier
quarter. Average earning assets increased $5.0 billion, or 3.2%, while average
interest-bearing liabilities decreased $667
million, or 0.6%. The annualized yield on the total loan
portfolio for the first quarter was 4.23%, a decrease of 35 basis
points compared to the earlier quarter, which primarily reflects
lower yields on new loans and continued runoff of higher yielding
loans acquired from the FDIC. The annualized fully
taxable-equivalent yield on the average securities portfolio for
the first quarter was 2.47%, one basis point lower than the earlier
period.
The average annualized cost of interest-bearing deposits was
0.25%, a decline of two basis points compared to the earlier
quarter. The average annualized rate paid on long-term debt was
2.18%, a decrease of 31 basis points compared to the earlier
quarter. This decrease was the result of lower rates on new issues
during the last twelve months and the early extinguishment of
higher cost FHLB advances during the third quarter of 2014.
The $70 million increase in
noninterest income was primarily driven by higher mortgage banking
income and insurance income, which increased $36 million and $13
million, respectively.
The provision for credit losses increased $39 million compared to the earlier quarter
primarily due to a reserve release in the earlier quarter. Net
charge-offs for the first quarter of 2015, excluding loans acquired
from the FDIC, totaled $100 million,
down $56 million compared to the
earlier quarter.
Noninterest expense was $1.4
billion for the first quarter of 2015, an increase of
$37 million compared to the earlier
quarter. This increase was driven by a $48
million increase in personnel expense and a $15 million increase in other expense, partially
offset by a $13 million decrease in
loan-related expense and other smaller decreases.
The provision for income taxes was $241
million for the first quarter of 2015, compared to
$256 million for the earlier quarter.
This produced an effective tax rate for the first quarter of 2015
of 30.6%, compared to 30.9% for the earlier quarter.
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
|
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Insurance
income
|
|
$
|
440
|
|
$
|
409
|
|
$
|
427
|
|
|
30.7
|
|
|
3.0
|
Service charges on
deposits
|
|
|
145
|
|
|
160
|
|
|
150
|
|
|
(38.0)
|
|
|
(3.3)
|
Mortgage banking
income
|
|
|
110
|
|
|
128
|
|
|
74
|
|
|
(57.0)
|
|
|
48.6
|
Investment banking
and brokerage fees and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
commissions
|
|
|
94
|
|
|
112
|
|
|
88
|
|
|
(65.2)
|
|
|
6.8
|
Bankcard fees and
merchant discounts
|
|
|
50
|
|
|
52
|
|
|
46
|
|
|
(15.6)
|
|
|
8.7
|
Trust and investment
advisory revenues
|
|
|
56
|
|
|
56
|
|
|
54
|
|
|
―
|
|
|
3.7
|
Checkcard
fees
|
|
|
39
|
|
|
42
|
|
|
38
|
|
|
(29.0)
|
|
|
2.6
|
Income from
bank-owned life insurance
|
|
|
30
|
|
|
30
|
|
|
27
|
|
|
―
|
|
|
11.1
|
FDIC loss share
income, net
|
|
|
(79)
|
|
|
(84)
|
|
|
(84)
|
|
|
(24.1)
|
|
|
(6.0)
|
Securities gains
(losses), net
|
|
|
―
|
|
|
―
|
|
|
2
|
|
|
NM
|
|
|
(100.0)
|
Other
income
|
|
|
112
|
|
|
117
|
|
|
105
|
|
|
(17.3)
|
|
|
6.7
|
|
Total noninterest
income
|
|
$
|
997
|
|
$
|
1,022
|
|
$
|
927
|
|
|
(9.9)
|
|
|
7.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
First Quarter 2015 compared to Fourth Quarter 2014
Noninterest income was $997
million for the first quarter, down $25 million compared to the prior quarter. This
decrease was driven by lower mortgage banking income, investment
banking and brokerage fees and commissions and service charges on
deposits, partially offset by record insurance income. Mortgage
banking income was $18 million lower
than the prior quarter, primarily reflecting lower net mortgage
servicing rights income. Investment banking and brokerage fees and
commissions declined $18 million,
driven by decreased capital markets activity. Service charges on
deposits decreased $15 million,
primarily due to a reduction in overdraft and nonsufficient funds
fees. Insurance income was up $31
million compared to the prior quarter, primarily due to
seasonal growth in employee benefit commissions.
First Quarter 2015 compared to First Quarter 2014
Noninterest income for the first quarter of 2015 increased
$70 million, or 7.6%, compared to the
earlier quarter. This increase was primarily driven by $36 million of higher mortgage banking income,
which reflects higher gains on sales of loans, and improvement in
commercial mortgage fee income due to higher loan volume. In
addition, insurance income was up $13
million primarily due to higher property and casualty
insurance commissions.
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
|
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Personnel
expense
|
|
$
|
830
|
|
$
|
794
|
|
$
|
782
|
|
|
18.4
|
|
|
6.1
|
Occupancy and
equipment expense
|
|
|
167
|
|
|
168
|
|
|
176
|
|
|
(2.4)
|
|
|
(5.1)
|
Loan-related
expense
|
|
|
38
|
|
|
71
|
|
|
51
|
|
|
(188.5)
|
|
|
(25.5)
|
Software
expense
|
|
|
44
|
|
|
45
|
|
|
43
|
|
|
(9.0)
|
|
|
2.3
|
Professional
services
|
|
|
24
|
|
|
38
|
|
|
33
|
|
|
(149.4)
|
|
|
(27.3)
|
Outside IT
services
|
|
|
30
|
|
|
27
|
|
|
27
|
|
|
45.1
|
|
|
11.1
|
Regulatory
charges
|
|
|
23
|
|
|
24
|
|
|
29
|
|
|
(16.9)
|
|
|
(20.7)
|
Amortization of
intangibles
|
|
|
21
|
|
|
22
|
|
|
23
|
|
|
(18.4)
|
|
|
(8.7)
|
Foreclosed property
expense
|
|
|
13
|
|
|
10
|
|
|
9
|
|
|
121.7
|
|
|
44.4
|
Merger-related and
restructuring charges, net
|
|
|
13
|
|
|
18
|
|
|
8
|
|
|
(112.7)
|
|
|
62.5
|
Other
expense
|
|
|
219
|
|
|
177
|
|
|
204
|
|
|
96.2
|
|
|
7.4
|
|
Total noninterest
expense
|
|
$
|
1,422
|
|
$
|
1,394
|
|
$
|
1,385
|
|
|
8.1
|
|
|
2.7
|
First Quarter 2015 compared to Fourth Quarter 2014
Noninterest expense was $1.4
billion for the first quarter, up $28
million compared to the prior quarter. Other expense
increased $42 million, primarily due
to prior period benefits for franchise taxes and insurance-related
expense. Personnel expense was up $36
million, driven by an $18
million increase in qualified pension plan expense due to
higher amortization of net actuarial losses and higher service
cost. Personnel expense was also impacted by the seasonal increase
in payroll taxes due to the annual reset of social security limits,
partially offset by lower incentives and fewer full-time equivalent
employees. Loan-related expense decreased primarily due to a
$27 million charge in the earlier
quarter. Professional services declined $14
million due to lower legal fees and a reduction in
consulting costs associated with strategic projects.
First Quarter 2015 compared to First Quarter 2014
Noninterest expense for the first quarter of 2015 was
$37 million higher than the same
period of 2014. The increase was primarily driven by higher
personnel expense and other expense, partially offset by lower
loan-related expense. The increase in personnel expense of
$48 million reflects an $18 million increase in qualified pension plan
expense that was driven by higher amortization of net actuarial
losses and higher service cost. Personnel expense also increased
due to higher production-related incentives due to strong
performance at fee income-generating businesses and an increase in
employee health costs, partially offset by approximately 1,600
fewer full-time equivalent employees.
Other expense was $15 million
higher than the earlier quarter primarily due to current period
charges associated with vacated property, prior period gains on
sales of property and higher current period depreciation on
property held under operating leases due to an increase in the size
of the portfolio. The decrease in loan-related expense of
$13 million was primarily due to a
reduction in residential mortgage reserves.
LOANS AND
LEASES - average balances
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
|
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Commercial and
industrial
|
|
$
|
41,448
|
|
$
|
40,383
|
|
$
|
38,435
|
|
10.7
|
|
7.8
|
CRE - income
producing properties
|
|
|
10,680
|
|
|
10,681
|
|
|
10,293
|
|
―
|
|
3.8
|
CRE - construction
and development
|
|
|
2,734
|
|
|
2,772
|
|
|
2,454
|
|
(5.6)
|
|
11.4
|
Direct retail
lending
|
|
|
8,191
|
|
|
8,085
|
|
|
9,349
|
|
5.3
|
|
(12.4)
|
Sales
finance
|
|
|
10,498
|
|
|
10,247
|
|
|
9,428
|
|
9.9
|
|
11.3
|
Revolving
credit
|
|
|
2,385
|
|
|
2,427
|
|
|
2,357
|
|
(7.0)
|
|
1.2
|
Residential
mortgage
|
|
|
30,427
|
|
|
31,046
|
|
|
30,635
|
|
(8.1)
|
|
(0.7)
|
Other lending
subsidiaries
|
|
|
11,318
|
|
|
11,351
|
|
|
10,236
|
|
(1.2)
|
|
10.6
|
Acquired from the
FDIC
|
|
|
1,156
|
|
|
1,309
|
|
|
1,874
|
|
(47.4)
|
|
(38.3)
|
|
Total loans and
leases held for investment
|
|
$
|
118,837
|
|
$
|
118,301
|
|
$
|
115,061
|
|
1.8
|
|
3.3
|
Average loans held for investment for the first quarter of 2015
were $118.8 billion, up $536 million compared to the fourth quarter of
2014. The increase in average loans held for investment was
primarily due to an increase of $1.1
billion in commercial and industrial average loans and a
$251 million increase in average
sales finance loans. These increases were partially offset by a
$619 million decline in average
residential mortgage loans and continued run-off of loans acquired
from the FDIC.
Average commercial and industrial loans increased $1.1 billion, or 10.7% annualized, which reflects
growth from large corporate clients and increased mortgage
warehouse lending due to refinance activity. Average sales finance
loans were up an annualized 9.9% primarily due to portfolio
purchases.
The decrease of $619 million, or
8.1% annualized, in the residential mortgage portfolio reflects the
continued strategy to sell all conforming residential mortgage loan
production and the $140 million loan
sale that occurred late in the fourth quarter of 2014.
DEPOSITS -
average balances
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in
millions)
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Noninterest-bearing
deposits
|
$
|
39,701
|
|
$
|
39,130
|
|
$
|
35,392
|
|
|
5.9
|
|
|
12.2
|
Interest
checking
|
|
20,623
|
|
|
19,308
|
|
|
18,615
|
|
|
27.6
|
|
|
10.8
|
Money market and
savings
|
|
51,644
|
|
|
51,176
|
|
|
48,767
|
|
|
3.7
|
|
|
5.9
|
Time
deposits
|
|
17,000
|
|
|
20,041
|
|
|
21,935
|
|
|
(61.5)
|
|
|
(22.5)
|
Foreign office
deposits - interest-bearing
|
|
563
|
|
|
660
|
|
|
1,009
|
|
|
(59.6)
|
|
|
(44.2)
|
|
Total
deposits
|
$
|
129,531
|
|
$
|
130,315
|
|
$
|
125,718
|
|
|
(2.4)
|
|
|
3.0
|
Average deposits for the first quarter were $129.5 billion, a decrease of $784 million or 2.4% annualized compared to the
prior quarter. The change in average deposits reflects improved
mix, with noninterest-bearing deposits up $571 million, or 5.9% annualized, while
interest-bearing balances were down $1.4
billion, or 6.0% annualized. The acquisition of 41 branches
in Texas had an estimated
$55 million favorable impact on
average noninterest-bearing deposits and a $180 million impact on average interest-bearing
deposits. Noninterest-bearing deposits represented 30.6% of total
average deposits for the first quarter, compared to 30.0% for the
prior quarter and 28.2% a year ago.
The growth in average noninterest-bearing deposits includes an
increase in average consumer accounts totaling $485 million and an increase in average public
funds accounts totaling $381 million,
partially offset by a decrease in average commercial accounts
totaling $297 million.
The decline in interest-bearing accounts was driven by a
$3.0 billion decline in time
deposits, partially offset by a $1.3
billion increase in interest checking and a $468 million increase in money markets and
savings.
The cost of interest-bearing deposits was 0.25% for the first
quarter, flat compared to the prior quarter.
SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
Segment Net
Income
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
Community
Banking
|
|
$
|
210
|
|
$
|
251
|
|
$
|
215
|
|
$
|
(41)
|
|
$
|
(5)
|
Residential Mortgage
Banking
|
|
|
64
|
|
|
82
|
|
|
63
|
|
|
(18)
|
|
|
1
|
Dealer Financial
Services
|
|
|
43
|
|
|
34
|
|
|
35
|
|
|
9
|
|
|
8
|
Specialized
Lending
|
|
|
57
|
|
|
64
|
|
|
59
|
|
|
(7)
|
|
|
(2)
|
Insurance
Services
|
|
|
72
|
|
|
65
|
|
|
75
|
|
|
7
|
|
|
(3)
|
Financial
Services
|
|
|
66
|
|
|
79
|
|
|
67
|
|
|
(13)
|
|
|
(1)
|
Other, Treasury and
Corporate
|
|
|
35
|
|
|
28
|
|
|
59
|
|
|
7
|
|
|
(24)
|
|
Total net
income
|
|
$
|
547
|
|
$
|
603
|
|
$
|
573
|
|
$
|
(56)
|
|
$
|
(26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2015 compared to Fourth Quarter 2014
Community Banking
Community Banking serves individual and business clients by
offering a variety of loan and deposit products and other financial
services. The segment is primarily responsible for acquiring and
maintaining client relationships.
Community Banking net income was $210
million for the first quarter of 2015, a decrease of
$41 million compared to the prior
quarter. Segment net interest income decreased $21 million, primarily driven by lower funding
spreads on deposits and lower commercial loan and revolving credit
balances, partially offset by deposit growth and higher credit
spreads on retail loans and revolving credit. Noninterest income
decreased $25 million, primarily due
to lower service charges on deposits, bankcard fees and checkcard
fees. The allocated provision for credit losses decreased
$7 million as the result of slower
loan growth and lower commercial and retail loan net charge-offs.
Noninterest expense increased $21
million driven by higher incentive expense. The increase in
noninterest expense was also driven by higher payroll taxes,
pension expense and franchise taxes, partially offset by lower loan
processing expense. Average loans grew $25
million, or 0.2% on an annualized basis, while average
transaction account deposits grew $1.7
billion, or 12.8% on an annualized basis.
Residential Mortgage Banking
Residential Mortgage Banking retains and services mortgage loans
originated by BB&T as well as those purchased from various
correspondent originators. Mortgage loan products include fixed and
adjustable-rate government guaranteed and conventional loans for
the purpose of constructing, purchasing or refinancing residential
properties. Substantially all of the properties are
owner-occupied.
Residential Mortgage Banking net income was $64 million for the first quarter of 2015, a
decrease of $18 million compared to
the prior quarter. Segment net interest income decreased
$11 million, primarily the result of
lower rates on new loans and lower average loan balances consistent
with the current strategy of selling substantially all conforming
mortgage loan production. Noninterest income decreased $16 million, driven by a reduction in mortgage
servicing income. The allocated provision for credit losses
reflected a benefit of $12 million in
the first quarter of 2015, compared to a benefit of $38 million in the prior quarter, primarily due
to the loan sale that occurred in the fourth quarter of 2014 and a
moderation in the improvement in loss severity trends. Noninterest
expense decreased $25 million driven
by the previously mentioned $27
million charge related to the ongoing review of mortgage
lending processes in the prior quarter.
Dealer Financial Services
Dealer Financial Services primarily originates loans to
consumers for the purchase of automobiles. These loans are
originated on an indirect basis through approved franchised and
independent automobile dealers throughout BB&T's market area
through BB&T Dealer Finance, and on a national basis through
Regional Acceptance Corporation. Dealer Financial Services also
originates loans for the purchase of recreational and marine
vehicles and, in conjunction with the Community Bank, provides
financing and servicing to dealers for their inventories.
Dealer Financial Services net income was $43 million for the first quarter of 2015, an
increase of $9 million over the prior
quarter. Segment net interest income increased $3 million, primarily driven by growth in the
Dealer Finance and Regional Acceptance loan portfolios and the
inclusion of dealer floor plan loans in the segment during the
current quarter, partially offset by a lower number of days during
the quarter. The allocated provision for credit losses decreased
$16 million, primarily due to
seasonally lower net charge-offs and lower expectations of loss
severity related to the non-prime automobile loan portfolio.
Adjusted for the inclusion of dealer floor plan loans, Dealer
Financial Services grew average loans by $365 million, or 11.2%, on an annualized
basis.
Specialized Lending
Specialized Lending consists of businesses that provide
specialty finance alternatives to commercial and consumer clients
including: commercial finance, mortgage warehouse lending,
tax-exempt financing for local governments and special-purpose
districts, equipment leasing, full-service commercial mortgage
banking, commercial and retail insurance premium finance,
dealer-based financing of equipment for consumers and small
businesses, and direct consumer finance.
Specialized Lending net income was $57
million for the first quarter of 2015, a decrease of
$7 million compared to the prior
quarter. Segment net interest income decreased $3 million driven by a lower number of days
during the quarter, partially offset by higher credit spreads on
loans. Noninterest income decreased $5
million driven by lower commercial mortgage income and lower
gains on finance leases. The allocated provision for credit losses
increased $6 million as the rate of
improvement in credit trends has stabilized and the commercial
finance loan portfolio experienced higher charge-offs. Specialized
Lending grew average loans by $158
million, or 4.0% on an annualized basis.
Insurance Services
BB&T's insurance agency / brokerage network is the fifth
largest in the United States and
sixth largest in the world. Insurance Services provides property
and casualty, life and health insurance to business and individual
clients. It also provides small business and corporate products,
such as workers compensation and professional liability, as well as
surety coverage and title insurance. In addition, Insurance
Services underwrites a limited amount of property and casualty
coverage. On April 1, BB&T
announced an agreement to increase its partnership interest in
AmRisc and to sell American Coastal Insurance Company, subject to
regulatory approval.
Insurance Services net income was $72
million in the first quarter of 2015, an increase of
$7 million over the prior quarter.
Insurance Service's noninterest income increased $21 million, which primarily reflects a seasonal
increase in employee benefits insurance commissions and higher
performance-based commercial property and casualty insurance
commissions. Noninterest expense increased $21 million driven by higher payroll tax, defined
contribution and pension expense and a reduction in certain
actuarially determined loss reserves in the prior quarter.
Financial Services
Financial Services provides personal trust administration,
estate planning, investment counseling, wealth management, asset
management, employee benefits services, corporate banking and
corporate trust services to individuals, corporations,
institutions, foundations and government entities. In addition,
Financial Services offers clients investment alternatives,
including discount brokerage services, equities, fixed-rate and
variable-rate annuities, mutual funds and governmental and
municipal bonds through BB&T Investment Services, Inc. The
segment also includes BB&T Securities, a full-service brokerage
and investment banking firm, the Corporate Banking Division, which
originates and services large corporate relationships, syndicated
lending relationships and client derivatives, and BB&T Capital
Partners, which manages the company's private equity
investments.
Financial Services net income was $66
million in the first quarter of 2015, a decrease of
$13 million compared to the prior
quarter. Noninterest income decreased $19
million as the result of lower capital market activity. The
allocated provision for credit losses increased $6 million as the result of portfolio mix and a
stabilization in the rate of improvement in credit trends in the
Corporate Banking loan portfolio. Noninterest expense decreased
$10 million compared to the prior
quarter, driven by lower incentive expense and operating
charge-offs.
Financial Services generated significant loan growth, with
Corporate Banking's average loan balances increasing $837 million, or an annualized 34.0%, over the
prior quarter, while BB&T Wealth's average loan balances
increased $80 million, or 25.6% on an
annualized basis. Excluding certain commercial deposit accounts
that were assigned to Wealth in the current quarter, average
deposits grew $736 million, or 23.9%
annualized.
Other, Treasury & Corporate
Net income in Other, Treasury & Corporate can vary due to
the changing needs of the Corporation, including the size of the
investment portfolio, the need for wholesale funding and income
received from derivatives used to hedge the balance sheet.
In the first quarter of 2015, Other, Treasury & Corporate
generated net income of $35 million,
an increase of $7 million over the
prior quarter. Segment net interest income increased $7 million, driven by lower funding credits on
deposits allocated to other segments. Noninterest income increased
$20 million, primarily due to higher
intercompany income and FDIC loss share income. Noninterest expense
increased $22 million, primarily due
to the previously discussed $15
million benefit for anticipated state franchise tax refunds
in the prior quarter and higher fringe benefit expense, partially
offset by lower incentive expense.
First Quarter 2015 compared to First Quarter 2014
Community Banking
Community Banking net income was $210
million for the first quarter of 2015, a decrease of
$5 million compared to the earlier
quarter. Segment net interest income decreased $14 million, primarily driven by lower rates on
new loans and lower funding spreads on deposits, partially offset
by growth in commercial real estate and direct retail loans.
Noninterest income decreased $8
million, primarily due to lower service charges on deposits,
international factoring commissions and letter of credit fees. The
allocated provision for credit losses decreased $3 million as the result of lower commercial and
retail loan net charge-offs. Noninterest expense decreased
$11 million driven by lower
personnel, professional services, regulatory and loan processing
expense, partially offset by higher franchise taxes.
Residential Mortgage Banking
Residential Mortgage Banking net income was $64 million for the first quarter of 2015, an
increase of $1 million over the
earlier quarter. Segment net interest income decreased $18 million, primarily the result of strategic
loan sales during 2014, lower rates on new loans and a current
strategy of selling substantially all conforming mortgage loan
production. Noninterest income increased $24
million, driven by higher gains on residential mortgage loan
production and sales and an increase in net mortgage servicing
rights valuation adjustments. The allocated provision for credit
losses reflected a benefit of $12
million in the first quarter of 2015, compared to a benefit
of $20 million in the earlier
quarter, primarily due to a moderation in the rate of improvement
in loss severity trends. Noninterest expense decreased $6 million, driven by lower loan processing and
personnel expense.
Dealer Financial Services
Dealer Financial Services net income was $43 million for the first quarter of 2015, an
increase of $8 million over the
earlier quarter. Segment net interest income increased $11 million, primarily driven by growth in the
Dealer Finance and Regional Acceptance loan portfolios and the
inclusion of dealer floor plan loans in the segment during the
current quarter. The allocated provision for credit losses
decreased $9 million, primarily due
to lower charge-offs related to the non-prime automobile loan
portfolio.
Specialized Lending
Specialized Lending net income was $57
million for the first quarter of 2015, a decrease of
$2 million compared to the earlier
quarter. Noninterest income increased $15
million, driven by higher commercial mortgage and operating
lease income. The allocated provision for credit losses increased
$10 million as the rate of
improvement in credit trends has stabilized and the commercial
finance loan portfolio experienced higher charge-offs. Noninterest
expense increased $8 million,
primarily due to higher personnel expense, depreciation of property
under operating leases and operating charge-offs.
Insurance Services
Insurance Services net income was $72
million in the first quarter of 2015, a decrease of
$3 million compared to the earlier
quarter. Insurance Service's noninterest income increased
$11 million, which primarily reflects
higher new and renewal commercial property and casualty insurance
business and higher employee benefit commissions. Allocated
corporate expenses increased $8
million primarily due to the centralization of certain
corporate support functions during mid-2014. The resulting decrease
in salary expense was partially offset by higher incentive and
fringe benefit expense.
Financial Services
Financial Services net income was $66
million in the first quarter of 2015, a decrease of
$1 million compared to the earlier
quarter. Segment net interest income increased $16 million, driven by Corporate Banking and
BB&T Wealth loan and deposit growth. Noninterest income
increased $21 million as the result
of higher investment commissions, investment banking revenue and
income from private equity investments. The allocated provision for
credit losses increased $24 million
as the result of portfolio mix and a stabilization in the rate of
improvement in credit trends in the Corporate Banking portfolio.
Noninterest expense increased $15
million compared to the earlier quarter, driven by higher
incentive expense.
Other, Treasury & Corporate
Other, Treasury & Corporate net income was $35 million, a decrease of $24 million compared to the earlier quarter.
Segment net interest income decreased $33
million driven by runoff in loans acquired from the FDIC.
Noninterest income increased $8
million, primarily due to higher FDIC loss share income. The
allocated provision for credit losses reflected a benefit of
$9 million in the first quarter of
2015, compared to a benefit of $18
million in the earlier quarter, primarily due to a release
in the reserve for unfunded lending commitments in the earlier
period driven by improvements related to the mix of lines of
credit, letters of credit, and bankers' acceptances. Noninterest
expense increased $31 million,
primarily due to higher salary, employee insurance, and pension
expense and merger-related charges. Allocated corporate expense
decreased by $19 million compared to
the earlier quarter as the result of higher expense allocations to
the other segments related to internal business initiatives and the
continued centralization of certain support functions into the
respective corporate centers.
CAPITAL RATIOS
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III
|
|
Basel I
|
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
Risk-based:
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1
(%)
|
|
10.5
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Tier 1 (%)
|
|
12.2
|
|
12.4
|
|
12.4
|
|
12.1
|
|
12.1
|
|
Total (%)
|
|
14.5
|
|
14.9
|
|
15.1
|
|
14.4
|
|
14.6
|
Leverage
(%)
|
|
10.1
|
|
9.9
|
|
9.7
|
|
9.5
|
|
9.5
|
Tangible common
equity to tangible assets (%) (2)
|
|
8.0
|
|
8.0
|
|
7.9
|
|
7.7
|
|
7.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Regulatory capital
ratios are preliminary.
|
(2)
|
Tangible common
equity and related ratios are non-GAAP measures. See the
calculations and management's reasons for using these measures in
the Capital Information – Five Quarter Trend of the Quarterly
Performance Summary.
|
Capital levels remained strong at March
31, 2015. BB&T declared total common dividends of
$0.24 during the first quarter of
2015, which resulted in a dividend payout ratio of 35.3%.
Risk-based capital ratios were down slightly from the prior quarter
as higher levels of capital were offset by increased risk-weighted
assets. Risk-weighted assets increased primarily due to higher
risk-weights associated with Basel III.
BB&T's estimated common equity Tier 1 ratio under Basel III,
on a fully-phased in basis, was approximately 10.3% at both
March 31, 2015 and December 31, 2014.
BB&T's liquidity coverage ratio was approximately 130% at
March 31, 2015, compared to the
regulatory minimum of 90%. In addition, the liquid asset buffer,
which is defined as high quality unencumbered liquid assets as a
percentage of total assets, was 13.7% at March 31, 2015.
ASSET QUALITY
(1)
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in
millions)
|
Q1
|
|
Q4
|
|
Q1
|
|
Q1 15 vs.
|
|
Q1 15 vs.
|
|
|
2015
|
|
2014
|
|
2014
|
|
Q4 14
|
|
Q1 14
|
Total nonperforming
assets
|
$
|
765
|
|
$
|
782
|
|
$
|
1,084
|
|
$
|
(17)
|
|
$
|
(319)
|
Total loans 90 days
past due and still accruing
|
|
392
|
|
|
535
|
|
|
666
|
|
|
(143)
|
|
|
(274)
|
Total loans 30-89
days past due
|
|
759
|
|
|
896
|
|
|
935
|
|
|
(137)
|
|
|
(176)
|
Total performing
TDRs
|
|
996
|
|
|
1,050
|
|
|
1,664
|
|
|
(54)
|
|
|
(668)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
and leases as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loans and leases held
for investment (%)
|
|
0.50
|
|
|
0.51
|
|
|
0.78
|
|
|
(0.01)
|
|
|
(0.28)
|
Nonperforming assets
as a percentage of total assets (%)
|
|
0.40
|
|
|
0.42
|
|
|
0.59
|
|
|
(0.02)
|
|
|
(0.19)
|
Allowance for loan
and lease losses as a percentage of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
loans and leases held
for investment (%)
|
|
1.22
|
|
|
1.23
|
|
|
1.41
|
|
|
(0.01)
|
|
|
(0.19)
|
Net charge-offs as a
percentage of average loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases (%)
annualized
|
|
0.34
|
|
|
0.39
|
|
|
0.56
|
|
|
(0.05)
|
|
|
(0.22)
|
Ratio of allowance
for loan and lease losses to net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charge-offs (times)
annualized
|
|
3.60
|
|
|
3.21
|
|
|
2.54
|
|
|
0.39
|
|
|
1.06
|
Ratio of allowance
for loan and lease losses to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans
and leases held for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment
(times)
|
|
2.45
|
|
|
2.39
|
|
|
1.82
|
|
|
0.06
|
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes amounts
related to government guaranteed GNMA mortgage loans that BB&T
has the right but not the obligation to repurchase. See footnotes
on the Credit Quality pages of the Quarterly Performance Summary
for additional information.
|
Nonperforming assets decreased $17
million, or 2.2%, during the quarter ended March 31, 2015. At March
31, 2015, nonperforming loans and leases represented 0.50%
of loans and leases held for investment, compared to 0.51% at
December 31, 2014.
Loans 30-89 days past due and still accruing, excluding
government guaranteed GNMA mortgage loans that BB&T has the
right but not the obligation to repurchase, totaled $759 million at March 31,
2015, a decrease of $137
million compared to the prior quarter. This includes a
decline of $86 million for other
lending subsidiaries driven by seasonality and a decline of
$48 million for residential mortgage,
which reflects improved credit quality and the lower balances in
that portfolio.
Loans 90 days or more past due and still accruing totaled
$392 million at March 31, 2015, a decrease of $143 million compared to the prior quarter. This
includes a $105 million decrease in
residential mortgage balances, which reflects improved credit
quality and lower average balances. Delinquencies on loans acquired
from the FDIC declined $34 million,
primarily due to continued runoff of those balances. Excluding
loans acquired from the FDIC, the ratio of loans 90 days or more
past due and still accruing as a percentage of loans and leases was
0.20% at March 31, 2015, a decline of
nine basis points compared to the prior quarter.
Total performing TDRs were $996
million at March 31, 2015, a
decrease of $54 million compared to
December 31, 2014. This decline
reflects broad-based improvement in credit quality.
Net charge-offs during the first quarter totaled $101 million, a decline of $15 million compared to the prior quarter. This
decline is primarily due to net charge-offs on loans acquired from
the FDIC in the earlier quarter. As a percentage of average loans
and leases, annualized net charge-offs were 0.34%, compared to
0.39% in the prior quarter.
The allowance for loan and lease losses, excluding the allowance
for loans acquired from the FDIC was $1.4
billion, essentially flat compared to the prior quarter. The
allowance for loans acquired from the FDIC was $57 million, down $7
million. As of March 31, 2015,
the total allowance for loan and lease losses was 1.22% of total
loans and leases held for investment, compared to 1.23% at
December 31, 2014. The allowance for
loan and lease losses was 2.45 times nonperforming loans and leases
held for investment, compared to 2.39 times at December 31, 2014. At March 31, 2015, the allowance for loan and lease
losses was 3.60 times annualized net charge-offs, compared to 3.21
times at December 31, 2014.
Earnings presentation and Quarterly Performance
Summary
To listen to BB&T's live first quarter 2015 earnings
conference call at 8 a.m. (ET) today,
please call 1-888-632-5009 and enter the participant code 5184622.
A presentation will be used during the earnings conference call and
is available on our website at www.bbt.com. Replays of the
conference call will be available for 30 days by dialing
888-203-1112 (access code 4313363).
The presentation, including an appendix reconciling non-GAAP
disclosures, is available at www.bbt.com.
BB&T's first quarter 2015 Quarterly Performance Summary,
which contains detailed financial schedules, is available on
BB&T's website at www.bbt.com.
About BB&T
As of March 31, 2015, BB&T is
one of the largest financial services holding companies in the U.S.
with $189.2 billion in assets and
market capitalization of $28.2
billion. Based in Winston-Salem,
N.C., the company operates 1,875 financial centers in 12
states and Washington, D.C., and
offers a full range of consumer and commercial banking, securities
brokerage, asset management, mortgage and insurance products and
services. A Fortune 500 company, BB&T is consistently
recognized for outstanding client satisfaction by the U.S. Small
Business Administration, Greenwich Associates and others. More
information about BB&T and its full line of products and
services is available at www.bbt.com.
Capital ratios are preliminary. Credit quality data excludes
government guaranteed GNMA loans where applicable.
This news release contains financial information and
performance measures determined by methods other than in accordance
with accounting principles generally accepted in the United States of America ("GAAP").
BB&T's management uses these "non-GAAP" measures in their
analysis of the Corporation's performance and the efficiency of its
operations. Management believes that these non-GAAP measures
provide a greater understanding of ongoing operations and enhance
comparability of results with prior periods as well as
demonstrating the effects of significant gains and charges in the
current period. The company believes that a meaningful analysis of
its financial performance requires an understanding of the factors
underlying that performance. BB&T's management believes that
investors may use these non-GAAP financial measures to analyze
financial performance without the impact of unusual items that may
obscure trends in the company's underlying performance. These
disclosures should not be viewed as a substitute for financial
measures determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Below is a listing of the types of
non-GAAP measures used in this news release:
- Tangible common equity and related ratios are non-GAAP
measures. The return on average risk-weighted assets is a non-GAAP
measure. BB&T's management uses these measures to assess the
quality of capital and believes that investors may find them useful
in their analysis of the Corporation.
- The ratio of loans greater than 90 days and still accruing
interest as a percentage of loans held for investment has been
adjusted to remove the impact of loans that are or were covered by
FDIC loss sharing agreements. Management believes that their
inclusion may result in distortion of these ratios such that they
might not be comparable to other periods presented or to other
portfolios that were not impacted by purchase accounting.
- Fee income and efficiency ratios are non-GAAP in that they
exclude securities gains (losses), foreclosed property expense,
amortization of intangible assets, merger-related and restructuring
charges, the impact of FDIC loss share accounting and other
selected items. BB&T's management uses these measures in their
analysis of the Corporation's performance. BB&T's management
believes these measures provide a greater understanding of ongoing
operations and enhance comparability of results with prior periods,
as well as demonstrating the effects of significant gains and
charges.
- Return on average tangible common shareholders' equity is a
non-GAAP measure that calculates the return on average common
shareholders' equity without the impact of intangible assets and
their related amortization. This measure is useful for evaluating
the performance of a business consistently, whether acquired or
developed internally.
- Core net interest margin is a non-GAAP measure that adjusts
net interest margin to exclude the impact of interest income and
funding costs associated with loans and securities acquired in the
Colonial acquisition. BB&T's management believes that the
exclusion of the generally higher yielding assets acquired in the
Colonial acquisition from the calculation of net interest margin
provides investors with useful information related to the relative
performance of the remainder of BB&T's earning assets.
A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in BB&T's First
Quarter 2015 Quarterly Performance Summary, which is available on
BB&T's website at www.bbt.com.
This news release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, regarding the financial condition, results of operations,
business plans and the future performance of BB&T that are
based on the beliefs and assumptions of the management of BB&T
and the information available to management at the time that these
disclosures were prepared. Words such as "anticipates," "believes,"
"estimates," "expects," "forecasts," "intends," "plans,"
"projects," "may," "will," "should," "could," and other similar
expressions are intended to identify these forward-looking
statements. Such statements are subject to factors that could cause
actual results to differ materially from anticipated results. Such
factors include, but are not limited to, the following:
- 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 and/or a
reduced demand for credit, insurance or other services;
- disruptions to the credit and financial markets, either
nationally or globally, including the impact of a downgrade of U.S.
government obligations by one of the credit ratings agencies and
the adverse effects of recessionary conditions in Europe;
- changes in the interest rate environment and cash flow
reassessments may reduce NIM and/or the volumes and values of loans
made or held as well as the value of other financial assets
held;
- competitive pressures among depository and other financial
institutions may increase significantly;
- legislative, regulatory or accounting changes, including
changes resulting from the adoption and implementation of the
Dodd-Frank Act may adversely affect the businesses in which
BB&T is engaged;
- local, state or federal taxing authorities may take tax
positions that are adverse to BB&T;
- a reduction may occur in BB&T's credit ratings;
- adverse changes may occur in the securities
markets;
- competitors of BB&T may have greater financial resources
and develop products that enable them to compete more successfully
than BB&T and may be subject to different regulatory standards
than BB&T;
- natural or other disasters could have an adverse effect on
BB&T in that such events could materially disrupt BB&T's
operations or the ability or willingness of BB&T's customers to
access the financial services BB&T offers;
- costs or difficulties related to the integration of the
businesses of BB&T and its merger partners may be greater than
expected;
- expected cost savings or revenue growth associated with
completed mergers and acquisitions may not be fully realized or
realized within the expected time frames;
- significant litigation could have a material adverse effect
on BB&T;
- deposit attrition, customer loss and/or revenue loss
following completed mergers and acquisitions may be greater than
expected;
- cyber-security risks, including "denial of service,"
"hacking" and "identity theft," could adversely affect BB&T's
business, financial performance, or reputation;
- failure to implement part or all of the Company's new ERP
system could result in impairment charges that adversely impact
BB&T's financial condition and results of operations and could
result in significant additional costs to BB&T; and
- failure to execute on the Company's strategic or operational
plans, including the ability to successfully complete and/or
integrate mergers and acquisitions, could adversely impact
BB&T's financial condition and results of operations.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
report. Actual results may differ materially from those expressed
in or implied by any forward-looking statement. Except to the
extent required by applicable law or regulation, BB&T
undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bbt-reports-first-quarter-results-adjusted-diluted-eps-of-068-per-share-300070689.html
SOURCE BB&T Corporation