WINSTON-SALEM, N.C.,
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 HIGHLIGHTS
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in millions, except per share
data)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
|
|
2015
|
|
2015
|
|
2014 (2)
|
|
Q3 15
|
|
Q4 14
|
Net income available to common
shareholders
|
$
|
502
|
|
$
|
492
|
|
$
|
551
|
|
$
|
10
|
|
$
|
(49)
|
Diluted earnings per common share
|
|
0.64
|
|
|
0.64
|
|
|
0.75
|
|
|
―
|
|
|
(0.11)
|
Net interest income - taxable
equivalent
|
$
|
1,542
|
|
$
|
1,501
|
|
$
|
1,371
|
|
$
|
41
|
|
$
|
171
|
Noninterest income
|
|
1,015
|
|
|
988
|
|
|
1,022
|
|
|
27
|
|
|
(7)
|
|
Total revenue
|
$
|
2,557
|
|
$
|
2,489
|
|
$
|
2,393
|
|
$
|
68
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (%)
|
|
1.03
|
|
|
1.04
|
|
|
1.28
|
|
|
(0.01)
|
|
|
(0.25)
|
Return on average risk-weighted assets
(%)
|
|
1.29
|
|
|
1.32
|
|
|
1.68
|
|
|
(0.03)
|
|
|
(0.39)
|
Return on average common shareholders' equity
(%)
|
|
8.06
|
|
|
8.14
|
|
|
9.99
|
|
|
(0.08)
|
|
|
(1.93)
|
Return on average tangible common
shareholders' equity (1)
(%)
|
|
13.37
|
|
|
13.23
|
|
|
15.45
|
|
|
0.14
|
|
|
(2.08)
|
Net interest margin - taxable equivalent
(%)
|
|
3.35
|
|
|
3.35
|
|
|
3.36
|
|
|
―
|
|
|
(0.01)
|
Efficiency ratio (1) (%)
|
|
58.8
|
|
|
59.2
|
|
|
55.6
|
|
|
(0.4)
|
|
|
3.2
|
|
|
(1)
|
Excludes certain items as detailed in the non-GAAP
reconciliations in the Quarterly Performance
Summary.
|
(2)
|
Applicable Q4 2014 amounts were revised as a result
of the January 1, 2015 adoption of new guidance related to the
accounting for investments in qualified affordable housing
projects.
|
Fourth Quarter 2015 compared to Third Quarter 2015
Total revenues were $2.6 billion
for the fourth quarter of 2015, an increase of $68 million compared to the prior quarter, which
reflects an increase in taxable-equivalent net interest income of
$41 million and an increase in
noninterest income of $27
million.
The net interest margin was 3.35% for the fourth quarter, flat
compared to the prior quarter. Average earning assets increased
$4.7 billion and average
interest-bearing liabilities increased $3.0
billion, which primarily reflect the inclusion of
Susquehanna's operations for a full quarter.
The annualized yield on the total loan portfolio for the fourth
quarter was 4.31%, flat compared to the prior quarter. The
annualized fully taxable-equivalent yield on the average securities
portfolio for the fourth quarter was 2.30%, up three basis points
compared to the prior quarter.
The average annualized cost of interest-bearing deposits was
0.24%, flat compared to the prior quarter. The average annualized
rate paid on long-term debt was 2.11%, a decrease of one basis
point compared to the prior quarter.
Excluding acquired from FDIC and purchased credit impaired
("PCI") loans, the provision for credit losses was $128 million and net charge-offs were
$130 million for the fourth quarter,
compared to $100 million and
$107 million, respectively, for the
prior quarter. The current quarter included net charge-offs of
$7 million related to the sale of
approximately $50 million of
nonperforming residential mortgage loans.
Noninterest income increased $27
million, primarily driven by higher insurance income and
other income, partially offset by lower investment banking and
brokerage fees and commissions.
Noninterest expense was $1.6
billion for the fourth quarter, essentially flat compared to
the prior quarter. Higher personnel expense, occupancy and
equipment expense and other expense were partially offset by lower
merger-related and restructuring charges and lower professional
services.
The provision for income taxes was $251
million for the fourth quarter, compared to $222 million for the prior quarter. This produced
an effective tax rate for the fourth quarter of 31.7%, compared to
29.4% for the prior quarter. The increase is primarily attributable
to a reduction in federal tax credits and higher pre-tax
income.
Fourth Quarter 2015 compared to Fourth Quarter 2014
Total revenues were $2.6 billion
for the fourth quarter of 2015, up $164
million compared to the earlier quarter. This increase was
driven by a $171 million increase in
taxable-equivalent net interest income, largely the result of the
Susquehanna and The Bank of Kentucky acquisitions.
Net interest margin was 3.35%, compared to 3.36% for the earlier
quarter. Average earning assets increased $20.6 billion, or 12.7%, while average
interest-bearing liabilities increased $13.3
billion, or 11.4%, both of which were primarily driven by
the Susquehanna and The Bank of Kentucky acquisitions. The annualized yield on
the total loan portfolio for the fourth quarter was 4.31%, an
increase of two basis points compared to the earlier quarter, which
primarily reflects the impact of the current year acquisitions,
partially offset by runoff of loans acquired from the FDIC. The
annualized fully taxable-equivalent yield on the average securities
portfolio for the fourth quarter was 2.30%, compared to 2.45% for
the earlier period. This decline reflects lower rates on
mortgage-backed securities, runoff of securities acquired from the
FDIC and larger holdings in U.S. Treasuries.
The average annualized cost of interest-bearing deposits was
0.24%, a decline of one basis point compared to the earlier
quarter. The average annualized rate paid on long-term debt was
2.11%, compared to 2.22% for the earlier quarter. This decrease was
primarily due to early extinguishments of higher cost FHLB
advances.
Excluding acquired from FDIC and PCI loans, the provision for
credit losses was $128 million,
compared to $84 million in the
earlier quarter. The earlier quarter included a $24 million allowance release related to the sale
of nonperforming mortgage loans, which also resulted in
$4 million of net recoveries. Net
charge-offs for the fourth quarter of 2015, excluding loans
acquired from the FDIC and PCI, totaled $130
million, compared to $102
million for the earlier quarter.
The $7 million decrease in
noninterest income was driven by lower insurance income, mortgage
banking income and investment banking and brokerage fees and
commissions, partially offset by improved FDIC loss share income
and higher other income.
Noninterest expense was $1.6
billion for the fourth quarter of 2015, an increase of
$203 million compared to the earlier
quarter. This increase was primarily driven by the Susquehanna and
The Bank of Kentucky acquisitions,
which resulted in higher personnel expense, occupancy and equipment
expense, merger-related and restructuring charges and other
expense. These increases were partially offset by a decrease in
loan-related expense.
The provision for income taxes was $251
million for the fourth quarter of 2015, compared to
$277 million for the earlier quarter.
This produced an effective tax rate for the fourth quarter of 2015
of 31.7%, compared to 31.5% for the earlier quarter.
NONINTEREST INCOME
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in millions)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Insurance income
|
$
|
380
|
|
$
|
354
|
|
$
|
409
|
|
|
29.1
|
|
|
(7.1)
|
Service charges on deposits
|
|
165
|
|
|
167
|
|
|
160
|
|
|
(4.8)
|
|
|
3.1
|
Mortgage banking income
|
|
104
|
|
|
111
|
|
|
128
|
|
|
(25.0)
|
|
|
(18.8)
|
Investment banking and brokerage fees and
commissions
|
|
91
|
|
|
105
|
|
|
112
|
|
|
(52.9)
|
|
|
(18.8)
|
Trust and investment advisory
revenues
|
|
64
|
|
|
63
|
|
|
56
|
|
|
6.3
|
|
|
14.3
|
Bankcard fees and merchant
discounts
|
|
56
|
|
|
57
|
|
|
52
|
|
|
(7.0)
|
|
|
7.7
|
Checkcard fees
|
|
47
|
|
|
45
|
|
|
41
|
|
|
17.6
|
|
|
14.6
|
Operating lease income
|
|
33
|
|
|
32
|
|
|
29
|
|
|
12.4
|
|
|
13.8
|
Income from bank-owned life
insurance
|
|
27
|
|
|
29
|
|
|
30
|
|
|
(27.4)
|
|
|
(10.0)
|
FDIC loss share income, net
|
|
(52)
|
|
|
(58)
|
|
|
(84)
|
|
|
(41.0)
|
|
|
(38.1)
|
Securities gains (losses), net
|
|
―
|
|
|
(2)
|
|
|
―
|
|
|
NM
|
|
|
NM
|
Other income (1)
|
|
100
|
|
|
85
|
|
|
89
|
|
|
70.0
|
|
|
12.4
|
|
Total noninterest income
|
$
|
1,015
|
|
$
|
988
|
|
$
|
1,022
|
|
|
10.8
|
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The Q4 2014 amount was revised as a result of the
January 1, 2015 adoption of new guidance related to the accounting
for investments in qualified affordable housing
projects.
|
NM - not meaningful.
|
Fourth Quarter 2015 compared to Third Quarter 2015
Noninterest income was $1.0
billion for the fourth quarter, an increase of $27 million compared to the prior quarter. This
increase was driven by higher insurance income and other income,
partially offset by lower investment banking and brokerage fees and
commissions.
Insurance income increased $26
million, primarily due to seasonality. Other income
increased $15 million, primarily due
to a $25 million increase in income
related to assets for certain post-employment benefits, which is
offset in personnel expense. The increase in other income also
reflects a $12 million improvement in
client derivative income. These increases were partially offset by
a decrease of $20 million in
partnership and other investment income, which was the result of an
opportunistic sale that resulted in a $28
million gain in the prior quarter.
Investment banking and brokerage fees and commissions were
$14 million lower due to higher
capital markets activity in the prior quarter.
Fourth Quarter 2015 compared to Fourth Quarter 2014
Noninterest income for the fourth quarter of 2015 decreased
$7 million compared to the earlier
quarter. This decrease was driven by lower insurance income,
mortgage banking income and investment banking and brokerage fees
and commissions, partially offset by improved FDIC loss share
income and an increase in other income.
Insurance income declined $29
million primarily due to the second quarter sale of American
Coastal, which resulted in a $36
million reduction in revenue, partially offset by higher
commission income in the property and casualty insurance
business.
Mortgage banking income declined $24
million, driven by $11 million
of lower mortgage servicing rights valuation adjustments and lower
saleable loan volume.
Investment banking and brokerage fees and commissions declined
$21 million, primarily due to higher
capital markets activity occurring in the earlier quarter.
FDIC loss share income improved $32
million primarily due to lower loan accretion. Other income
increased $11 million primarily due
to higher income from client derivatives and higher income related
to assets for certain post-employment benefits (which is offset in
personnel expense), partially offset by lower partnerships and
investment income.
NONINTEREST EXPENSE
|
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in millions)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Personnel expense
|
$
|
893
|
|
$
|
882
|
|
$
|
794
|
|
|
4.9
|
|
|
12.5
|
Occupancy and equipment expense
|
|
192
|
|
|
183
|
|
|
168
|
|
|
19.5
|
|
|
14.3
|
Software expense
|
|
52
|
|
|
50
|
|
|
45
|
|
|
15.9
|
|
|
15.6
|
Loan-related expense
|
|
37
|
|
|
38
|
|
|
71
|
|
|
(10.4)
|
|
|
(47.9)
|
Outside IT services
|
|
41
|
|
|
35
|
|
|
27
|
|
|
68.0
|
|
|
51.9
|
Professional services
|
|
29
|
|
|
42
|
|
|
38
|
|
|
(122.8)
|
|
|
(23.7)
|
Amortization of intangibles
|
|
32
|
|
|
29
|
|
|
22
|
|
|
41.0
|
|
|
45.5
|
Regulatory charges
|
|
28
|
|
|
25
|
|
|
24
|
|
|
47.6
|
|
|
16.7
|
Foreclosed property expense
|
|
11
|
|
|
15
|
|
|
10
|
|
|
(105.8)
|
|
|
10.0
|
Merger-related and restructuring charges,
net
|
|
50
|
|
|
77
|
|
|
18
|
|
|
(139.1)
|
|
|
177.8
|
Other expense
|
|
232
|
|
|
218
|
|
|
177
|
|
|
25.5
|
|
|
31.1
|
|
Total noninterest expense
|
$
|
1,597
|
|
$
|
1,594
|
|
$
|
1,394
|
|
|
0.7
|
|
|
14.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not meaningful.
|
Fourth Quarter 2015 compared to Third Quarter 2015
Noninterest expense was $1.6
billion for the fourth quarter, up $3
million compared to the prior quarter. This change was
driven by increases in other expense and personnel expense, as well
as smaller increases in various other categories, partially offset
by lower merger-related and restructuring charges and a decrease in
professional services.
Other expense increased $14
million primarily reflecting higher operating charge-offs,
charitable contributions and travel.
Personnel expense increased $11
million, driven by $14 million
of higher salary expense due to a full quarter of increased
headcount resulting from the Susquehanna acquisition. The higher
personnel expense also reflects a $25
million increase in certain post-employment benefits expense
(offset in other income). These increases were partially offset by
an $18 million improvement in
employee medical and insurance benefits and a $12 million reduction in equity-based
compensation due to the acceleration of expense for retirement
eligible employees in the prior quarter.
Merger-related and restructuring charges declined by
$27 million, primarily due to the
impact of the Susquehanna acquisition in the prior quarter.
Professional services declined $13
million due to lower volume.
Fourth Quarter 2015 compared to Fourth Quarter 2014
Noninterest expense for the fourth quarter of 2015 was
$1.6 billion, an increase of
$203 million compared to the fourth
quarter of 2014. This increase reflects higher expense in a number
of categories primarily resulting from acquisition activity,
partially offset by a reduction in loan-related expense.
Personnel expense increased $99
million, driven by a $72
million increase in salaries, which reflects an increase in
FTEs of approximately 3,800 primarily resulting from the current
year acquisitions. Employee benefits expense increased $35 million, primarily due to $19 million of higher pension expense due to
changes in actuarial assumptions as well as $9 million of higher expense related to certain
post-employment benefits (offset in other income). These increases
in personnel expense were partially offset by a $13 million reduction in incentives.
Other expense increased $55
million primarily due to a $15
million franchise tax benefit recognized in the earlier
quarter and increases in various categories of other expense
including taxes and licenses, depreciation on assets subject to
operating leases, outsourced services, marketing and advertising.
These increases and other smaller increases were partially offset
by a reduction in business referral fee expense primarily due to
the sale of American Coastal.
Merger-related and restructuring charges increased $32 million, primarily due to the Susquehanna
acquisition and expenses related to the planned acquisition of
National Penn.
Outside IT services increased $14
million due to ongoing information system enhancement
projects and initiatives. Occupancy and equipment expense and
amortization of intangibles both increased as a result of the
current year acquisitions.
Loan-related expense decreased $34
million largely due to a $27
million charge in the earlier quarter related to a review of
mortgage lending processes.
LOANS AND LEASES - average
balances
|
|
|
% Change
|
|
% Change
|
(dollars in millions)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
|
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Commercial and industrial
|
$
|
48,047
|
|
$
|
46,462
|
|
$
|
40,383
|
|
13.5
|
|
19.0
|
CRE - income producing properties
|
|
13,264
|
|
|
12,514
|
|
|
10,681
|
|
23.8
|
|
24.2
|
CRE - construction and development
|
|
3,766
|
|
|
3,502
|
|
|
2,772
|
|
29.9
|
|
35.9
|
Dealer floor plan
|
|
1,164
|
|
|
1,056
|
|
|
1,053
|
|
40.6
|
|
10.5
|
Direct retail lending
|
|
10,896
|
|
|
9,926
|
|
|
8,085
|
|
38.8
|
|
34.8
|
Sales finance
|
|
10,533
|
|
|
10,386
|
|
|
9,194
|
|
5.6
|
|
14.6
|
Revolving credit
|
|
2,458
|
|
|
2,421
|
|
|
2,427
|
|
6.1
|
|
1.3
|
Residential mortgage
|
|
30,334
|
|
|
30,384
|
|
|
31,046
|
|
(0.7)
|
|
(2.3)
|
Other lending subsidiaries
|
|
13,281
|
|
|
12,837
|
|
|
11,351
|
|
13.7
|
|
17.0
|
Acquired from FDIC and PCI
|
|
1,070
|
|
|
1,052
|
|
|
1,309
|
|
6.8
|
|
(18.3)
|
|
Total loans and leases held for
investment
|
$
|
134,813
|
|
$
|
130,540
|
|
$
|
118,301
|
|
13.0
|
|
14.0
|
Average loans held for investment for the fourth quarter of 2015
were $134.8 billion, up $4.3 billion compared to the third quarter of
2015. Excluding acquisitions (which comprises Susquehanna, The Bank
of Kentucky, both branch
acquisitions in Texas and
BankAtlantic), average loans held for investment were up
approximately 2.0% on an annualized basis.
Average commercial and industrial loans increased $1.6 billion during the fourth quarter of 2015.
Approximately $740 million of the
increase was the result of acquisitions while the remaining
increase reflects continued growth in large corporate lending.
Average commercial real estate – income producing properties loans
increased $750 million and average
commercial real estate – construction and development loans
increased $264 million, with the
majority of both of these increases being attributable to
acquisitions. Dealer floor plan average loans, which were not
significantly impacted by acquisition activity, were up
$108 million or 40.6% annualized, due
to strong organic growth.
Direct retail lending average loans increased $970 million; approximately $735 million of the growth was due to
acquisitions. Other lending subsidiaries average loans increased
$444 million, with approximately half
of the increase due to acquisitions.
Excluding acquisition activity, average sales finance loans
declined approximately $400 million,
which is partially due to dealer pricing structure changes
implemented during the third quarter. Average residential mortgage
loans decreased approximately $430
million excluding acquisitions, which reflects the continued
strategy to sell conforming residential mortgage loan
production.
DEPOSITS - average balances
|
|
|
|
|
|
% Change
|
|
% Change
|
(dollars in millions)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
|
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
|
Noninterest-bearing deposits
|
$
|
45,824
|
|
$
|
44,153
|
|
$
|
39,130
|
|
|
15.0
|
|
|
17.1
|
Interest checking
|
|
24,157
|
|
|
22,593
|
|
|
19,308
|
|
|
27.5
|
|
|
25.1
|
Money market and savings
|
|
61,431
|
|
|
59,306
|
|
|
51,176
|
|
|
14.2
|
|
|
20.0
|
Time deposits
|
|
16,981
|
|
|
16,837
|
|
|
20,041
|
|
|
3.4
|
|
|
(15.3)
|
Foreign office deposits -
interest-bearing
|
|
98
|
|
|
948
|
|
|
660
|
|
|
NM
|
|
|
(85.2)
|
|
Total deposits
|
$
|
148,491
|
|
$
|
143,837
|
|
$
|
130,315
|
|
|
12.8
|
|
|
13.9
|
Average deposits for the fourth quarter were $148.5 billion, an increase of $4.7 billion compared to the prior quarter.
Average noninterest-bearing deposits increased $1.7 billion, with approximately $870 million of the increase due to acquisitions.
Interest checking grew $1.6 billion
(approximately $220 million excluding
acquisitions) and money market and savings grew $2.1 billion (approximately $535 million excluding acquisitions. Excluding
acquisition activity, time deposits declined approximately
$650 million, or an annualized
18.5%.
The growth in noninterest-bearing deposits and lower-cost
deposits drove continued improvement in mix during the quarter.
Noninterest-bearing deposits represented 30.9% of total average
deposits for the fourth quarter, compared to 30.7% for the prior
quarter and 30.0% a year ago.
The cost of interest-bearing deposits was 0.24% for the fourth
quarter, flat compared to the prior quarter.
SEGMENT RESULTS
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in millions)
|
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
Segment Net Income
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
Community Banking
|
|
$
|
272
|
|
$
|
263
|
|
$
|
250
|
|
$
|
9
|
|
$
|
22
|
Residential Mortgage Banking
|
|
|
49
|
|
|
59
|
|
|
82
|
|
|
(10)
|
|
|
(33)
|
Dealer Financial Services
|
|
|
42
|
|
|
44
|
|
|
34
|
|
|
(2)
|
|
|
8
|
Specialized Lending
|
|
|
71
|
|
|
69
|
|
|
65
|
|
|
2
|
|
|
6
|
Insurance Services
|
|
|
36
|
|
|
21
|
|
|
65
|
|
|
15
|
|
|
(29)
|
Financial Services
|
|
|
103
|
|
|
82
|
|
|
79
|
|
|
21
|
|
|
24
|
Other, Treasury and Corporate
|
|
|
(31)
|
|
|
(5)
|
|
|
28
|
|
|
(26)
|
|
|
(59)
|
|
Total net income
|
|
$
|
542
|
|
$
|
533
|
|
$
|
603
|
|
$
|
9
|
|
$
|
(61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2015 compared to Third Quarter 2015
The financial information related to Susquehanna's operations
was included in the Other, Treasury & Corporate segment until
the systems conversion, which occurred during the fourth quarter of
2015.
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 $272
million for the fourth quarter of 2015, an increase of
$9 million compared to the prior
quarter. The higher net income reflects the inclusion of
Susquehanna's operations in segment results for approximately half
the quarter due to the November systems conversion. Segment net
interest income increased $83
million, driven by the inclusion of Susquehanna since
conversion and higher funding spreads on deposits, partially offset
by lower interest rates on new commercial loans. Noninterest income
decreased $3 million, primarily due
to lower checkcard fees and letter of credit fees, partially offset
by higher service charges on deposits and commercial loan fees. The
allocated provision for credit losses increased $35 million primarily as a result of higher loss
estimates. Noninterest expense increased $22
million driven by higher salary and employee insurance
expense, primarily attributable to the Susquehanna acquisition, and
higher operating charge-offs, partially offset by lower legal
expense.
Average loans grew $5.8 billion,
or 44.4% on an annualized basis and average transaction account
deposits grew $4.8 billion, or 33.3%
on an annualized basis, primarily attributable to the Susquehanna
acquisition.
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 $49 million for the fourth quarter of 2015, a
decrease of $10 million compared to
the prior quarter. This decrease was primarily the result of a
$14 million decline in noninterest
income, which was driven by lower gains on mortgage loan production
as a result of lower saleable production volumes and margins.
Noninterest expense decreased by $6
million, which primarily reflects lower incentive,
professional services and loan processing expense.
Dealer Financial Services
Dealer Financial Services 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. The consumer auto
leasing portfolio was moved to the Dealer Financial Services
segment from the Other, Treasury, and Corporate segment in
connection with the systems conversion during November.
Dealer Financial Services net income was $42 million for the fourth quarter of 2015, a
decrease of $2 million compared to
the prior quarter. Segment net interest income increased
$9 million, primarily due to the
consumer auto leasing business moving into the segment. The
allocated provision for credit losses increased $11 million, primarily due to seasonally higher
net charge-offs in the Dealer Finance and Regional Acceptance loan
portfolios.
Dealer Financial Services' average loans increased by
$695 million, or 20.3%, on an
annualized basis as a result of the Susquehanna acquisition,
partially offset by lower average balances in the core prime
automobile loan portfolio.
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, and
dealer-based financing of equipment for consumers and small
businesses. The small business equipment finance business unit, a
former subsidiary of Susquehanna Bancshares, was moved to the
Specialized Lending segment from the Other, Treasury, and Corporate
segment in connection with the systems conversion during November.
Specialized Lending net income was $71
million for the fourth quarter of 2015, an increase of
$2 million compared to the prior
quarter. Noninterest income increased $13
million driven by higher commercial mortgage income and
operating lease income and higher gains on finance leases.
Noninterest expense increased $8
million, primarily due to higher incentive expense, higher
depreciation of property under operating leases and lower
recoveries of operating charge-offs compared to the prior
quarter.
Specialized Lending average loans were up $99 million, or 2.2% on an annualized basis,
primarily due to the Susquehanna acquisition, partially offset by
mortgage warehouse lending.
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 businesses 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.
Insurance Services net income was $36
million in the fourth quarter of 2015, an increase of
$15 million compared to the prior
quarter. Insurance Service's noninterest income increased
$35 million, which primarily reflects
seasonality in the commercial property and casualty insurance
business and higher life insurance commissions as a result of
seasonality and improved production. Noninterest expense increased
$11 million driven by higher salary
and incentive expense, merger-related charges and operating
charge-offs.
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 SBIC private equity
investments. Various financial-related business units of
Susquehanna moved into the Financial Services segment on a
post-merger basis, with the financial history prior to systems
conversion remaining in the Other, Treasury and Corporate
segment.
Financial Services net income was $103
million in the fourth quarter of 2015, an increase of
$21 million compared to the prior
quarter. Segment net interest income increased $10 million driven by Corporate Banking and
BB&T Wealth loan and deposit growth and higher funding spreads
on deposits. Noninterest income decreased $16 million primarily due to lower capital
markets fees and lower income from SBIC private equity investments,
partially offset by higher investment advisory fees. The allocated
provision for credit losses was a benefit of $3 million in the fourth quarter of 2015,
compared to a $21 million charge in
the prior quarter as a result of lower loss estimates for the
Corporate Banking loan portfolio as well as changes in the
portfolio mix and risk expectations related to the oil and energy
sector in the prior quarter. Noninterest expense decreased
$9 million compared to the prior
quarter, primarily driven by lower professional services
expense.
Financial Services generated significant loan growth, with
Corporate Banking's average loan balances increasing $887 million, or an annualized 29.2%, over the
prior quarter, while BB&T Wealth's average loan balances
increased $61 million, or 15.6% on an
annualized basis. BB&T Wealth's average transaction account
deposits grew $194 million, or 20.7%
on an annualized basis.
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 fourth quarter of 2015, Other, Treasury & Corporate
generated a net loss of $31 million,
compared to a net loss of $5 million
in the prior quarter. Segment net interest income decreased
$59 million driven primarily by an
increase in long-term debt, lower funding spreads and the inclusion
of Susquehanna in the segment for a greater period in the prior
quarter. Noninterest income increased $11
million, primarily due to improved FDIC loss share income.
Noninterest expense decreased $28
million, due to lower personnel expense primarily
attributable to the post-conversion move of the Susquehanna
business units into the operating segments and lower merger-related
charges, partially offset by higher occupancy and equipment and IT
professional services expense.
Fourth Quarter 2015 compared to Fourth Quarter 2014
Community Banking
Community Banking net income was $272
million for the fourth quarter of 2015, an increase of
$22 million compared to the earlier
quarter. Segment net interest income increased $125 million, driven by higher commercial and
retail loans and deposits, partially attributable to acquisitions,
and higher funding spreads on deposits, partially offset by lower
interest rates on new commercial loans. Noninterest income
increased $5 million, primarily due
to higher service charges on deposits, bankcard and merchant
services fees and commercial loan fees. The allocated provision for
credit losses increased $19 million
as a result of loan growth and higher loss estimates in the
commercial loan portfolio. Noninterest expense increased
$67 million driven by higher
personnel and occupancy and equipment expense and merger-related
charges, primarily attributable to the acquisitions.
Residential Mortgage Banking
Residential Mortgage Banking net income was $49 million for the fourth quarter of 2015, a
decrease of $33 million compared to
the earlier quarter. Segment net interest income decreased
$9 million primarily resulting from
lower average loan balances. Noninterest income decreased
$22 million driven by lower net
mortgage servicing rights valuation adjustments and lower gains on
mortgage loan production and sales as a result of lower saleable
production volumes and margins. The allocated provision for credit
losses was $8 million in the fourth
quarter of 2015, compared to a benefit of $38 million in the earlier quarter. The earlier
quarter included a $24 million
allowance release related to a loan sale. Noninterest expense
decreased $27 million compared to the
earlier quarter, which primarily reflects a charge related to a
review of mortgage lending processes in the earlier quarter.
Dealer Financial Services
Dealer Financial Services net income was $42 million for the fourth quarter of 2015, an
increase of $8 million compared to
the earlier quarter. Segment net interest income increased
$20 million, primarily attributable
to Susquehanna's consumer auto leasing business and growth in the
Regional Acceptance loan portfolio. Noninterest expense increased
$10 million driven by higher
personnel and other expense, partially related to the acquired
consumer auto leasing business.
Specialized Lending
Specialized Lending net income was $71
million for the fourth quarter of 2015, an increase of
$6 million compared to the earlier
quarter. Segment net interest income increased $18 million, primarily attributable to
Susquehanna's small business equipment finance business and growth
in the small ticket consumer finance portfolio, partially offset by
lower interest rates on new loans. Noninterest income increased
$4 million driven by higher operating
lease income and higher gains on finance leases, partially offset
by lower commercial mortgage income. Noninterest expense increased
$13 million, primarily due to higher
personnel expense and higher depreciation of property under
operating leases.
Insurance Services
Insurance Services net income was $36
million for the fourth quarter of 2015, a decrease of
$29 million compared to the earlier
quarter. Insurance Service's noninterest income decreased
$33 million, primarily due to the
sale of American Coastal in the second quarter of 2015. Noninterest
expense increased $14 million driven
by higher salary and pension expense, merger-related charges and
operating charge-offs as well as a reduction in certain
actuarially-determined loss reserves in the earlier period,
partially offset by lower business referral expense attributable to
the sale of American Coastal.
Financial Services
Financial Services net income was $103
million in the fourth quarter of 2015, an increase of
$24 million compared to the earlier
quarter. Segment net interest income increased $24 million driven by Corporate Banking and
BB&T Wealth loan and deposit growth and higher funding spreads
on deposits. Noninterest income decreased $10 million primarily due to lower capital market
fees and lower income from SBIC private equity investments,
partially offset by higher investment advisory fees, trust income
and brokerage commissions. The allocated provision for credit
losses was $20 million lower than the
earlier quarter as a result of lower loss estimates in the
Corporate Banking loan portfolio, partially offset by loan
growth.
Other, Treasury & Corporate
In the fourth quarter of 2015, Other, Treasury & Corporate
generated a net loss of $31 million
compared to net income of $28 million
in the earlier quarter. Segment net interest income decreased
$8 million driven primarily by lower
funding spreads on deposits. Noninterest income increased
$46 million, primarily due to
improved FDIC loss share income and higher service charges on
deposits and checkcard fees primarily related to the inclusion of
Susquehanna in operating results until the systems conversion in
early November. Noninterest expense increased $120 million, primarily due to higher personnel
and occupancy and equipment expense primarily related to
Susquehanna, as well as higher IT professional services, software
expense, franchise taxes and merger-related charges. Amortization
of intangibles increased $12 million
primarily due to core deposit intangible amortization related to
2015 acquisitions. Allocated corporate expense decreased by
$11 million compared to the earlier
quarter, reflecting modest increases in corporate expense allocated
to the operating segments.
CAPITAL RATIOS (1)
|
|
|
|
|
|
|
|
|
|
|
Basel III
|
|
Basel I
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
Risk-based:
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 (%)
|
10.2
|
|
10.1
|
|
10.4
|
|
10.5
|
|
N/A
|
|
Tier 1 (%)
|
11.8
|
|
11.7
|
|
12.1
|
|
12.2
|
|
12.4
|
|
Total (%)
|
14.2
|
|
14.2
|
|
14.2
|
|
14.4
|
|
14.9
|
Leverage (%)
|
9.8
|
|
9.9
|
|
10.2
|
|
10.1
|
|
9.9
|
Tangible common equity to tangible assets (%)
(2)
|
7.7
|
|
7.7
|
|
8.1
|
|
8.0
|
|
8.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Current quarter 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 December 31, 2015. BB&T declared total common
dividends of $0.27 during the fourth
quarter of 2015, which resulted in a dividend payout ratio of
42.2%. Risk-based capital ratios were up slightly compared to the
prior quarter as earnings in excess of dividends was partially
offset by higher risk-weighted assets.
BB&T's estimated common equity Tier 1 ratio under Basel III,
on a fully-phased in basis, was approximately 10.0% at December 31, 2015 and 9.9% at September 30, 2015.
BB&T's liquidity coverage ratio was approximately 130% at
December 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 13.5% at December 31, 2015.
ASSET QUALITY (1)
|
|
|
|
|
|
|
|
|
|
Change
|
|
Change
|
(dollars in millions)
|
Q4
|
|
Q3
|
|
Q4
|
|
Q4 15 vs.
|
|
Q4 15 vs.
|
|
2015
|
|
2015
|
|
2014
|
|
Q3 15
|
|
Q4 14
|
Total nonperforming assets
|
$
|
712
|
|
$
|
744
|
|
$
|
782
|
|
$
|
(32)
|
|
$
|
(70)
|
Total performing TDRs
|
|
982
|
|
|
976
|
|
|
1,050
|
|
|
6
|
|
|
(68)
|
Total loans 90 days past due and still accruing
(2)
|
|
312
|
|
|
381
|
|
|
535
|
|
|
(69)
|
|
|
(223)
|
Total loans 30-89 days past due
|
|
1,028
|
|
|
906
|
|
|
896
|
|
|
122
|
|
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases as a percentage
of loans and leases held for
investment (%)
|
|
0.42
|
|
|
0.43
|
|
|
0.51
|
|
|
(0.01)
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets as a percentage of total assets
(%)
|
|
0.34
|
|
|
0.36
|
|
|
0.42
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percentage
of loans and leases held for
investment (%)
|
|
1.07
|
|
|
1.08
|
|
|
1.23
|
|
|
(0.01)
|
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of average loans
and leases (%)
annualized
|
|
0.38
|
|
|
0.32
|
|
|
0.39
|
|
|
0.06
|
|
|
(0.01)
|
Ratio of allowance for loan and lease losses to
net charge-offs (times)
annualized
|
|
2.83
|
|
|
3.44
|
|
|
3.21
|
|
|
(0.61)
|
|
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of allowance for loan and lease losses
to nonperforming loans and leases
held for investment
(times)
|
|
2.53
|
|
|
2.49
|
|
|
2.39
|
|
|
0.04
|
|
|
0.14
|
|
|
(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.
|
(2)
|
The Q3 2015 amount has been revised from the
previously reported amount. See the footnotes on page 14 of the
Quarterly Performance Summary for additional
information.
|
Nonperforming assets totaled $712
million at December 31, 2015,
a decrease of $32 million compared to
September 30, 2015. The decrease was
driven by the fourth quarter sale of nonperforming residential
mortgage loans, partially offset by a residential mortgage and
direct retail lending policy change to move loans to nonaccrual
status at 120 days past due instead of 180 days. At December 31, 2015, nonperforming loans and leases
represented 0.42% of loans and leases held for investment, compared
to 0.43% at September 30, 2015.
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 $1.0 billion at December
31, 2015, an increase of $122
million compared to the prior quarter. This increase was
primarily driven by a $31 million
increase for residential mortgage loans, which was primarily the
result of conforming the delinquency calculation methodology of
Susquehanna loans to BB&T's method upon conversion of the
related loan system. The increase is also driven by a $30 million increase in the other lending
subsidiaries portfolio, which reflects seasonality in the nonprime
portfolio.
Loans 90 days or more past due and still accruing totaled
$312 million at December 31, 2015, a decrease of $69 million compared to the prior quarter,
primarily driven by loans acquired from the FDIC and PCI loans.
Excluding acquired from FDIC and PCI loans, the ratio of loans 90
days or more past due and still accruing as a percentage of loans
and leases was 0.15% at December 31,
2015, a decline of one basis point compared to the prior
quarter.
Net charge-offs during the fourth quarter totaled $130 million, an increase of $23 million compared to the prior quarter,
partially due to the previously mentioned nonperforming residential
mortgage loan sale. As a percentage of average loans and leases,
annualized net charge-offs were 0.38%, compared to 0.32% in the
prior quarter.
The allowance for loan and lease losses, excluding the allowance
for loans acquired from the FDIC and PCI loans, was $1.4 billion, essentially flat compared to the
prior quarter. The allowance for loans acquired from the FDIC and
PCI loans was $61 million, also
essentially flat compared to the prior quarter. As of December 31, 2015, the total allowance for loan
and lease losses was 1.07% of loans and leases held for investment,
compared to 1.08% at September 30,
2015.
The allowance for loan and lease losses was 2.53 times
nonperforming loans and leases held for investment, compared to
2.49 times at September 30, 2015. At
December 31, 2015, the allowance for
loan and lease losses was 2.83 times annualized net charge-offs,
compared to 3.44 times at September 30,
2015.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bbt-reports-revenue-up-69-following-acquisitions-diluted-eps-of-064-068-adjusted-300207534.html
SOURCE BB&T Corporation