WINSTON-SALEM, North Carolina,
Jan. 21, 2016 /PRNewswire/ --
BB&T Corporation (NYSE: BBT) today reported quarterly earnings
for the fourth quarter of 2015. Net income available to common
shareholders was $502 million, or
$0.64 per diluted common share for
the fourth quarter of 2015. Excluding merger-related and
restructuring charges, net income available to common shareholders
was $535 million, or $0.68 per diluted share.
Net income available to common shareholders was $492 million ($0.64
per diluted share) and $551 million
($0.75 per diluted share) for the
third quarter of 2015 and fourth quarter of 2014, respectively.
"We are pleased to report solid results for the quarter, driven
by strong net interest income following our acquisition of
Susquehanna Bancshares during the third quarter," said Chairman and
Chief Executive Officer Kelly S.
King. "Our fee income remained steady and our net interest
income was up more than 12% from the fourth quarter of last
year.
"Revenues were $2.6 billion, up
$164 million compared to the fourth
quarter of 2014, reflecting our strategic acquisitions during the
year. Revenues for the year were $9.8
billion, up 4% over 2014, led by record fee income of
$4.0 billion," said King. "With a
strong balance sheet and cost reductions from acquisitions, I am
looking forward to our continued success during 2016.
"After the successful conversion of Susquehanna's systems in the
fourth quarter, we were pleased to receive approval from our
federal and state banking regulators for our acquisition of
National Penn, which is expected to close April 1st and significantly expand our presence
in the mid-Atlantic region," said King.
Fourth Quarter 2015 Performance
Highlights
- Taxable equivalent revenues were $2.6
billion for the fourth quarter, up $68 million from the third quarter of 2015
- Net interest income was up $41
million, primarily driven by a full quarter of Susquehanna
activity
- Net interest margin was 3.35%, flat compared to the prior
quarter
- Noninterest income was up $27
million primarily due to insurance income
- Fee income ratio was 41.8%, compared to 42.1% for the prior
quarter
- Noninterest expense was $1.6
billion, essentially flat compared to the third quarter
- Personnel expense and occupancy and equipment expense increased
primarily due to the full quarter impact of Susquehanna's
operations
- Merger-related and restructuring charges were $27 million lower as Susquehanna related charges
declined
- The adjusted efficiency ratio was 58.8%, down from 59.2% in the
prior quarter
- Average loans and leases held for investment increased
$4.3 billion compared to the third
quarter of 2015; annualized growth of approximately 2.0% excluding
acquisitions
- Average C&I loans increased 13.5% annualized; or 7.8%
excluding acquisitions
- Average direct retail loans increased 38.8% annualized; or
11.2% excluding acquisitions
- Average other lending subsidiaries loans increased 13.7%
annualized; or 7.3% excluding acquisitions
- Average deposits increased $4.7
billion compared to the prior quarter
- Average noninterest-bearing deposits increased an annualized
15.0%; or 7.5% excluding acquisitions
- Average interest-bearing deposit costs were 0.24%, flat
compared to the prior quarter
- Deposit mix remained strong, with average noninterest-bearing
deposits representing 30.9% of total deposits, compared to 30.7% in
the prior quarter
- Asset quality remained strong
- Nonperforming assets decreased $32
million during the quarter
- Loans 90 days or more past due and still accruing were 0.23% of
loans held for investment, compared to 0.28% in the prior
quarter
- Loans 30-89 days past due and still accruing were 0.76% of
loans held for investment, compared to 0.67% in the prior
quarter
- The allowance for loan and lease losses was 1.07% of loans held
for investment, compared to 1.08% in the prior quarter
- The allowance for loan loss coverage ratio was 2.53 times
nonperforming loans held for investment, versus 2.49 times in the
prior quarter
- Capital levels remained strong across the board
- Common equity tier 1 to risk-weighted assets was 10.2%, or
10.0% on a fully phased-in basis
- Tier 1 risk-based capital was 11.8%
- Total capital was 14.2%
- Leverage capital was 9.8%
- Tangible common equity to tangible assets was 7.7%
Earnings presentation and Quarterly Performance
Summary
To listen to BB&T's live fourth 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 fourth 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 December 31, 2015, BB&T
is one of the largest financial services holding companies in the
U.S. with $209.9 billion in assets
and market capitalization of $29.5
billion. Based in Winston-Salem,
N.C., the company operates 2,139 financial centers in 15
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 and PCI loans. 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.
- Adjusted fee income and adjusted 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 and purchased credit impaired ("PCI") loans
acquired from Susquehanna. Core net interest margin is also
adjusted to remove the purchase accounting marks and related
amortization for non-PCI loans and deposits acquired from
Susquehanna. BB&T's management believes that the adjustments to
the calculation of net interest margin for certain assets and
deposits acquired provide investors with useful information related
to the performance 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 Fourth
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, the
adverse effects of recessionary conditions in Europe and the impact of recent market
disruptions in China;
- changes in the interest rate environment, including interest
rate changes made by the Federal Reserve, 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, including acts of domestic or
foreign terrorism, 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;
- higher than expected costs related to information technology
infrastructure or a failure to successfully implement future system
enhancements could adversely impact BB&T's financial condition
and results of operations and could result in significant
additional costs to BB&T;
- 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;
and
- widespread system outages, caused by the failure of critical
internal systems or critical services provided by third parties,
could adversely impact BB&T's financial conditions 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.