WINSTON-SALEM, N.C.,
April 21, 2016 /PRNewswire/ --
BB&T Corporation (NYSE: BBT) today reported quarterly earnings
for the first quarter of 2016. Net income available to common
shareholders was $527 million, up
8.0% from the first quarter of 2015. Earnings per diluted common
share were $0.67 for the first
quarter of 2016. Excluding merger-related and restructuring
charges, net income available to common shareholders was
$542 million, or $0.69 per diluted share.
Net income available to common shareholders was $502 million ($0.64
per diluted share) and $488 million
($0.67 per diluted share) for the
fourth quarter of 2015 and first quarter of 2015, respectively.
"We are pleased to report record net interest income and solid
overall performance for the first quarter," said Chairman and Chief
Executive Officer Kelly S. King.
"Our strategic acquisitions and organic growth have helped us grow
our market share while maintaining low funding costs, and we
achieved positive operating leverage from the fourth quarter.
"Total revenues were $2.6 billion,
up $240 million compared to the first
quarter of 2015," said King. "Strong revenues and excellent expense
control enabled us to achieve solid results for the first
quarter.
"We also successfully completed the acquisitions of National
Penn and Swett & Crawford on April
1st," continued King. "National Penn had 126 financial
centers in Pennsylvania,
New Jersey and Maryland, with approximately $9.6 billion in assets and $6.6 billion in deposits. Swett & Crawford
enhances our wholesale property and casualty insurance business and
adds more than $200 million in annual
revenues. These acquisitions will drive improved efficiencies and
stronger earnings in the future.
"We are also pleased to announce U by BB&T now has more than
1.4 million active users. Since its introduction last October,
we've experienced a rapid adoption rate, particularly from our
younger client base. We are pleased to see clients of all ages
engaging with our free, customizable digital banking platform."
First Quarter 2016 Performance Highlights
- Taxable equivalent revenues were $2.6
billion for the first quarter, up $27
million from the fourth quarter of 2015
- Net interest income was up $26
million
- Net interest margin was 3.43%, up eight basis points
- Fee income ratio was 40.6%, compared to 41.8% for the prior
quarter
- Noninterest expense was $1.5
billion, down $52 million
compared to the fourth quarter
- Other expense decreased $34
million partially due to lower operating charge-offs
- Merger-related and restructuring charges were $27 million lower
- Personnel expense increased $22
million driven by seasonally higher payroll taxes
- The adjusted efficiency ratio was 58.3%, compared to 58.8% in
the prior quarter
- Average loans and leases held for investment were $134.4 billion compared to $134.8 billion for the fourth quarter of 2015;
- Average CRE-income producing properties loans increased 6.9%
annualized
- Average direct retail loans increased 7.8% annualized
- Average dealer floor plan loans increased 25.9% annualized
- Average residential mortgage and sales finance loans decreased
6.2% and 18.5% annualized, respectively
- Average deposits were $149.9
billion compared to $148.5
billion for the prior quarter
- Average noninterest-bearing deposits increased 3.3%
annualized
- Average interest checking deposits increased 24.1%
annualized
- Average interest-bearing deposit costs were 0.25%, up one basis
point
- Deposit mix remained strong, with average noninterest-bearing
deposits representing 30.8% of total deposits, compared to 30.9% in
the prior quarter
- Asset quality remained strong
- Loans 90 days or more past due and still accruing were 0.21% of
loans held for investment, compared to 0.23% in the prior
quarter
- Loans 30-89 days past due and still accruing were 0.61% of
loans held for investment, compared to 0.76% in the prior
quarter
- The allowance for loan and lease losses was 1.10% of loans held
for investment, compared to 1.07% in the prior quarter
- Nonperforming assets increased $191
million during the quarter driven by $206 million in energy-related downgrades (none
were past due at March 31, 2016 or
December 31, 2015)
- The allowance for loan loss coverage ratio was 1.89 times
nonperforming loans held for investment, versus 2.53 times in the
prior quarter
- Capital levels remained strong across the board
- Common equity tier 1 to risk-weighted assets was 10.4%, or
10.2% on a fully phased-in basis
- Tier 1 risk-based capital was 12.2%
- Total capital was 14.6%
- Leverage capital was 10.1%
- Tangible common equity to tangible assets was 7.8%
- Issued perpetual preferred stock for net proceeds of
$451 million
EARNINGS
HIGHLIGHTS
|
|
|
|
|
|
|
|
(dollars in millions,
except per share data)
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
Net income available
to common shareholders
|
|
$
|
527
|
|
|
$
|
502
|
|
|
$
|
488
|
|
|
$
|
25
|
|
|
$
|
39
|
|
Diluted earnings per
common share
|
|
0.67
|
|
|
0.64
|
|
|
0.67
|
|
|
0.03
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
taxable equivalent
|
|
$
|
1,568
|
|
|
$
|
1,542
|
|
|
$
|
1,347
|
|
|
$
|
26
|
|
|
$
|
221
|
|
Noninterest
income
|
|
1,016
|
|
|
1,015
|
|
|
997
|
|
|
1
|
|
|
19
|
|
Total
revenue
|
|
$
|
2,584
|
|
|
$
|
2,557
|
|
|
$
|
2,344
|
|
|
$
|
27
|
|
|
$
|
240
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (%)
|
|
1.09
|
|
|
1.03
|
|
|
1.18
|
|
|
0.06
|
|
|
(0.09)
|
|
Return on average
risk-weighted assets (%)
|
|
1.38
|
|
|
1.29
|
|
|
1.48
|
|
|
0.09
|
|
|
(0.10)
|
|
Return on average
common shareholders' equity (%)
|
|
8.45
|
|
|
8.06
|
|
|
9.05
|
|
|
0.39
|
|
|
(0.60)
|
|
Return on average
tangible common shareholders' equity (1) (%)
|
|
13.87
|
|
|
13.37
|
|
|
14.00
|
|
|
0.50
|
|
|
(0.13)
|
|
Net interest margin -
taxable equivalent (%)
|
|
3.43
|
|
|
3.35
|
|
|
3.33
|
|
|
0.08
|
|
|
0.10
|
|
Efficiency ratio (1)
(%)
|
|
58.3
|
|
|
58.8
|
|
|
58.5
|
|
|
(0.5)
|
|
|
(0.2)
|
|
(1) Excludes certain items as detailed in the non-GAAP
reconciliations in the Quarterly Performance Summary.
First Quarter 2016 compared to Fourth Quarter 2015
Total revenues were $2.6 billion
for the first quarter of 2016, an increase of $27 million compared to the prior quarter, which
reflects an increase of $26 million
in taxable-equivalent net interest income, while noninterest income
was essentially flat.
The net interest margin was 3.43% for the first quarter, up
eight basis points compared to the prior quarter largely due to
higher interest rates as well as interest income on assets related
to certain post-employment benefit plans. Average earning assets
increased $461 million, which
primarily reflects a $1.1 billion
increase in average securities partially offset by a $562 million decrease in average loans. Average
interest-bearing liabilities decreased $329
million, which primarily reflects a $1.4 billion decrease in long-term debt partially
offset by a $1.0 billion increase in
interest-bearing deposits.
The annualized yield on the total loan portfolio for the first
quarter was 4.35%, up four basis points compared to the prior
quarter. The annualized fully taxable-equivalent yield on the
average securities portfolio for the first quarter was 2.40%, up
ten basis points compared to the prior quarter.
The average annualized cost of interest-bearing deposits was
0.25%, up one basis point compared to the prior quarter. The
average annualized rate paid on long-term debt was 2.19%, up eight
basis points compared to the prior quarter.
Excluding acquired from FDIC and purchased credit impaired
("PCI") loans, the provision for credit losses was $182 million and net charge-offs were
$154 million for the first quarter,
compared to $128 million and
$130 million, respectively, for the
prior quarter. The current quarter provision included approximately
$28 million of provision in excess of
charge-offs related to the energy lending portfolio. The current
quarter also included $30 million of
charge-offs related to the energy lending portfolio.
Noninterest income of $1.0 billion
was essentially flat compared to the prior quarter as higher
insurance income and securities gains were largely offset by
declines in other income, mortgage banking income and service
charges on deposits.
Noninterest expense was $1.5
billion for the first quarter, down $52 million compared to the prior quarter. Lower
merger-related and restructuring charges and lower other expense
were partially offset by higher personnel expense.
The provision for income taxes was $246
million for the first quarter, compared to $251 million for the prior quarter. This produced
an effective tax rate for the first quarter of 30.1%, compared to
31.7% for the prior quarter.
First Quarter 2016 compared to First Quarter 2015
Total revenues were $2.6 billion
for the first quarter of 2016, an increase of $240 million compared to the earlier quarter.
This increase was driven by a $221
million increase in taxable-equivalent net interest income,
largely the result of 2015 acquisitions, while noninterest income
was up $19 million.
Net interest margin was 3.43%, up ten basis points compared to
the earlier quarter. Average earning assets increased $20.2 billion, while average interest-bearing
liabilities increased $12.9 billion,
both of which were primarily driven by acquisition activity. The
annualized yield on the total loan portfolio for the first quarter
was 4.35%, up 12 basis points compared to the earlier quarter,
which primarily reflects the impact of the prior 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 first quarter was 2.40%, down seven basis points
compared to 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
0.25%, flat compared to the earlier quarter. The average annualized
rate paid on long-term debt was 2.19%, up one basis point compared
to the earlier quarter.
Excluding acquired from FDIC and PCI loans, the provision for
credit losses was $182 million,
compared to $105 million in the
earlier quarter. Net charge-offs for the first quarter of 2016,
excluding loans acquired from the FDIC and PCI, totaled
$154 million, compared to
$100 million for the earlier quarter.
The current quarter provision included approximately $28 million of provision in excess of charge-offs
related to the energy lending portfolio. The current quarter also
included $30 million of charge-offs
related to the energy lending portfolio.
Noninterest income was higher due to $45
million of securities gains and better FDIC loss share
income, partially offset by lower other income, insurance income
and mortgage banking income.
Noninterest expense for the first quarter of 2016 was
$1.5 billion, an increase of
$123 million compared to the earlier
quarter. This increase reflects higher expense in a number of
categories primarily resulting from acquisition activity, partially
offset by a reduction in other expense.
The provision for income taxes was $246
million for the first quarter of 2016, compared to
$241 million for the earlier quarter.
This produced an effective tax rate for the first quarter of 2016
of 30.1%, compared to 30.6% for the earlier quarter.
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Insurance
income
|
|
$
|
419
|
|
|
$
|
380
|
|
|
$
|
440
|
|
|
41.3
|
|
|
(4.8)
|
|
Service charges on
deposits
|
|
154
|
|
|
165
|
|
|
145
|
|
|
(26.8)
|
|
|
6.2
|
|
Mortgage banking
income
|
|
91
|
|
|
104
|
|
|
110
|
|
|
(50.3)
|
|
|
(17.3)
|
|
Investment banking
and brokerage fees and commissions
|
|
97
|
|
|
91
|
|
|
94
|
|
|
26.5
|
|
|
3.2
|
|
Trust and investment
advisory revenues
|
|
62
|
|
|
64
|
|
|
56
|
|
|
(12.6)
|
|
|
10.7
|
|
Bankcard fees and
merchant discounts
|
|
56
|
|
|
56
|
|
|
50
|
|
|
—
|
|
|
12.0
|
|
Checkcard
fees
|
|
45
|
|
|
47
|
|
|
39
|
|
|
(17.1)
|
|
|
15.4
|
|
Operating lease
income
|
|
34
|
|
|
33
|
|
|
29
|
|
|
12.2
|
|
|
17.2
|
|
Income from
bank-owned life insurance
|
|
31
|
|
|
27
|
|
|
30
|
|
|
59.6
|
|
|
3.3
|
|
FDIC loss share
income, net
|
|
(60)
|
|
|
(52)
|
|
|
(79)
|
|
|
61.9
|
|
|
(24.1)
|
|
Securities gains
(losses), net
|
|
45
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
Other
income
|
|
42
|
|
|
100
|
|
|
83
|
|
|
NM
|
|
|
(49.4)
|
|
Total noninterest
income
|
|
$
|
1,016
|
|
|
$
|
1,015
|
|
|
$
|
997
|
|
|
0.4
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
|
|
First Quarter 2016 compared to Fourth Quarter 2015
Noninterest income was $1.0
billion for the first quarter, essentially flat compared to
the prior quarter as higher insurance income and securities gains
were largely offset by declines in other income, mortgage banking
income and service charges on deposits.
Insurance income increased $39
million, primarily due to seasonality as higher employee
benefits and property and casualty commissions were partially
offset by lower life insurance commissions. Securities gains
increased $45 million as the result
of opportunistic sales of securities in the current quarter.
Other income decreased $58
million, primarily due to a $43
million decrease in income related to assets for certain
post-employment benefits, which is offset in personnel expense. The
decrease in other income also reflects a $14
million decline in client derivative income driven by higher
valuation reserves. Mortgage banking income declined $13 million, primarily resulting from lower
commercial mortgage fee income as a result of lower volumes.
Service charges on deposits decreased $11
million primarily due to a reduction in overdraft and
nonsufficient funds fees as a result of a policy change which
improved funds availability for our clients as well as normal
seasonality.
First Quarter 2016 compared to First Quarter 2015
Noninterest income for the first quarter of 2016 increased
$19 million compared to the earlier
quarter. This increase was driven by higher securities gains and
better FDIC loss share income partially offset by lower other
income, insurance income and mortgage banking income.
Securities gains increased $45
million as the result of opportunistic sales of securities
in the current quarter. FDIC loss share income improved
$19 million primarily due to lower
loan-related accretion.
Other income decreased $41 million
primarily due to lower income related to assets for certain
post-employment benefits (which is offset in personnel expense) and
lower partnerships and investment income. Insurance income declined
$21 million primarily due to the sale
of American Coastal during the second quarter of 2015, which
resulted in a $34 million reduction
in revenue, partially offset by higher commission income in the
property and casualty insurance business. Mortgage banking income
declined $19 million, driven by
$14 million of lower gains on
saleable loans.
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Personnel
expense
|
|
$
|
915
|
|
|
$
|
893
|
|
|
$
|
830
|
|
|
9.9
|
|
|
10.2
|
|
Occupancy and
equipment expense
|
|
191
|
|
|
192
|
|
|
167
|
|
|
(2.1)
|
|
|
14.4
|
|
Software
expense
|
|
51
|
|
|
52
|
|
|
44
|
|
|
(7.7)
|
|
|
15.9
|
|
Loan-related
expense
|
|
32
|
|
|
37
|
|
|
38
|
|
|
(54.4)
|
|
|
(15.8)
|
|
Outside IT
services
|
|
41
|
|
|
41
|
|
|
30
|
|
|
—
|
|
|
36.7
|
|
Professional
services
|
|
22
|
|
|
29
|
|
|
24
|
|
|
(97.1)
|
|
|
(8.3)
|
|
Amortization of
intangibles
|
|
32
|
|
|
32
|
|
|
21
|
|
|
—
|
|
|
52.4
|
|
Regulatory
charges
|
|
30
|
|
|
28
|
|
|
23
|
|
|
28.7
|
|
|
30.4
|
|
Foreclosed property
expense
|
|
11
|
|
|
11
|
|
|
13
|
|
|
—
|
|
|
(15.4)
|
|
Merger-related and
restructuring charges, net
|
|
23
|
|
|
50
|
|
|
13
|
|
|
NM
|
|
|
76.9
|
|
Loss (gain) on early
extinguishment of debt
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
Other
expense
|
|
198
|
|
|
232
|
|
|
219
|
|
|
(58.9)
|
|
|
(9.6)
|
|
Total noninterest
expense
|
|
$
|
1,545
|
|
|
$
|
1,597
|
|
|
$
|
1,422
|
|
|
(13.1)
|
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
|
|
First Quarter 2016 compared to Fourth Quarter 2015
Noninterest expense was $1.5
billion for the first quarter, down $52 million compared to the prior quarter. This
change was driven by decreases in other expense and merger-related
and restructuring charges partially offset by increased personnel
expense.
Other expense decreased $34
million primarily due to lower operating charge-offs and
charitable contributions, along with improvements in various other
categories of other expense. Merger-related and restructuring
charges declined $27 million
primarily due to costs associated with the fourth quarter
conversion of Susquehanna.
Personnel expense increased $22
million, primarily driven by a $34
million increase in payroll taxes, equity-based compensation
and 401(k) expenses primarily due to seasonality. Personnel expense
also included $10 million in higher
pension expense as a result of changes to actuarial assumptions and
was also impacted by lower capitalized salaries due to decreased
loan production. These increases were partially offset by a
$30 million decrease in certain
post-employment benefits expense (offset in other income).
First Quarter 2016 compared to First Quarter 2015
Noninterest expense for the first quarter of 2016 was
$1.5 billion, an increase of
$123 million compared to the earlier
quarter. This increase reflects higher expense in a number of
categories primarily resulting from acquisition activity, partially
offset by a reduction in other expense.
Personnel expense increased $85
million, driven by a $70
million increase in salaries, which reflects an increase in
FTEs of approximately 3,600 primarily resulting from the prior year
acquisitions. Incentive expense increased $17 million partially due to improved performance
relative to target measures. Pension expense increased $11 million due to changes in actuarial
assumptions. These increases were partially offset by a
$25 million decrease in certain
post-employment benefits expense (offset in other income).
Occupancy and equipment expense, outside IT services,
amortization of intangibles and merger-related and restructuring
charges increased $24 million,
$11 million, $11 million and $10
million, respectively, as a result of acquisition
activity.
Other expense decreased $21
million primarily due to the sale of American Coastal.
LOANS AND
LEASES - average balances
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Commercial and
industrial
|
|
$
|
48,013
|
|
|
$
|
48,047
|
|
|
$
|
41,448
|
|
|
(0.3)
|
|
|
15.8
|
|
CRE-income producing
properties
|
|
13,490
|
|
|
13,264
|
|
|
10,680
|
|
|
6.9
|
|
|
26.3
|
|
CRE-construction and
development
|
|
3,619
|
|
|
3,766
|
|
|
2,734
|
|
|
(15.7)
|
|
|
32.4
|
|
Dealer floor
plan
|
|
1,239
|
|
|
1,164
|
|
|
1,040
|
|
|
25.9
|
|
|
19.1
|
|
Direct retail
lending
|
|
11,107
|
|
|
10,896
|
|
|
8,191
|
|
|
7.8
|
|
|
35.6
|
|
Sales
finance
|
|
10,049
|
|
|
10,533
|
|
|
9,458
|
|
|
(18.5)
|
|
|
6.2
|
|
Revolving
credit
|
|
2,463
|
|
|
2,458
|
|
|
2,385
|
|
|
0.8
|
|
|
3.3
|
|
Residential
mortgage
|
|
29,864
|
|
|
30,334
|
|
|
30,427
|
|
|
(6.2)
|
|
|
(1.9)
|
|
Other lending
subsidiaries
|
|
13,439
|
|
|
13,281
|
|
|
11,318
|
|
|
4.8
|
|
|
18.7
|
|
Acquired from FDIC
and PCI
|
|
1,098
|
|
|
1,070
|
|
|
1,156
|
|
|
10.5
|
|
|
(5.0)
|
|
Total loans and leases
held for investment
|
|
$
|
134,381
|
|
|
$
|
134,813
|
|
|
$
|
118,837
|
|
|
(1.3)
|
|
|
13.1
|
|
Average loans held for investment for the first quarter of 2016
were $134.4 billion, down
$432 million compared to the fourth
quarter of 2015.
Average sales finance loans declined approximately $484 million, which was partially due to dealer
pricing structure changes implemented during the third quarter of
2015. Average residential mortgage loans decreased approximately
$470 million, which reflects the
continued strategy to sell conforming residential mortgage loan
production. Average commercial real estate – construction and
development loans decreased $147
million.
Average commercial real estate – income producing properties
loans increased $226 million, direct
retail lending average loans increased $211
million and other lending subsidiaries average loans
increased $158 million. Dealer floor
plan average loans were up $75
million, or 25.9% annualized, due to strong organic
growth.
DEPOSITS -
average balances
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Noninterest-bearing
deposits
|
|
$
|
46,203
|
|
|
$
|
45,824
|
|
|
$
|
39,701
|
|
|
3.3
|
|
|
16.4
|
|
Interest
checking
|
|
25,604
|
|
|
24,157
|
|
|
20,623
|
|
|
24.1
|
|
|
24.2
|
|
Money market and
savings
|
|
60,424
|
|
|
61,431
|
|
|
51,644
|
|
|
(6.6)
|
|
|
17.0
|
|
Time
deposits
|
|
16,884
|
|
|
16,981
|
|
|
17,000
|
|
|
(2.3)
|
|
|
(0.7)
|
|
Foreign office
deposits - interest-bearing
|
|
752
|
|
|
98
|
|
|
563
|
|
|
NM
|
|
|
33.6
|
|
Total
deposits
|
|
$
|
149,867
|
|
|
$
|
148,491
|
|
|
$
|
129,531
|
|
|
3.7
|
|
|
15.7
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
|
|
Average deposits for the first quarter were $149.9 billion, an increase of $1.4 billion compared to the prior quarter.
Average noninterest-bearing deposits increased $379 million due to increases in personal
balances and public funds, partially offset by decreases in
commercial balances.
Interest checking grew $1.4
billion due to increases in personal balances and public
funds, while money market and savings declined $1.0 billion primarily due to declines in
commercial balances. Average time deposits were down slightly as
declines in personal balances and IRAs were largely offset by
increases in commercial balances.
Noninterest-bearing deposits represented 30.8% of total average
deposits for the first quarter, compared to 30.9% for the prior
quarter and 30.6% a year ago. The cost of interest-bearing deposits
was 0.25% for the first quarter, up one basis point compared to the
prior quarter.
SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
Segment Net
Income
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
Community
Banking
|
|
$
|
310
|
|
|
$
|
272
|
|
|
$
|
209
|
|
|
$
|
38
|
|
|
$
|
101
|
|
Residential Mortgage
Banking
|
|
39
|
|
|
49
|
|
|
64
|
|
|
(10)
|
|
|
(25)
|
|
Dealer Financial
Services
|
|
42
|
|
|
41
|
|
|
45
|
|
|
1
|
|
|
(3)
|
|
Specialized
Lending
|
|
56
|
|
|
63
|
|
|
53
|
|
|
(7)
|
|
|
3
|
|
Insurance
Holdings
|
|
53
|
|
|
36
|
|
|
72
|
|
|
17
|
|
|
(19)
|
|
Financial
Services
|
|
26
|
|
|
103
|
|
|
66
|
|
|
(77)
|
|
|
(40)
|
|
Other, Treasury and
Corporate
|
|
44
|
|
|
(22)
|
|
|
38
|
|
|
66
|
|
|
6
|
|
Total net
income
|
|
$
|
570
|
|
|
$
|
542
|
|
|
$
|
547
|
|
|
$
|
28
|
|
|
$
|
23
|
|
First Quarter 2016 compared to Fourth 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 $310
million for the first quarter of 2016, an increase of
$38 million compared to the prior
quarter. The current quarter includes Susquehanna's operations for the full quarter,
while the prior quarter included Susquehanna's operations for approximately
half the quarter due to the timing of the systems conversion in
November.
Segment net interest income increased $64
million, primarily due to the inclusion of Susquehanna, which resulted in higher average
loan balances and higher margins. Noninterest income decreased
$13 million, primarily due to lower
service charges on deposits and lower commercial loan fees.
The allocated provision for credit losses was a benefit of
$10 million in the first quarter of
2016, compared to a charge of $39
million in the prior quarter. This change was primarily the
result of a reduction in loss estimates related to commercial
loans. Noninterest expense increased $18
million, driven by higher personnel and occupancy expense,
primarily attributable to the Susquehanna acquisition. These increases were
partially offset by lower operating charge-offs and lower
merger-related and restructuring charges.
Residential Mortgage Banking
Residential Mortgage Banking retains and services mortgage loans
originated by BB&T as well as loans purchased from various
correspondent originators. Mortgage products include fixed and
adjustable-rate government guaranteed and conventional loans used
for the purpose of constructing, purchasing or refinancing
residential properties. Substantially all of the properties are
owner-occupied.
Residential Mortgage Banking net income was $39 million for the first quarter of 2016, a
decrease of $10 million compared to
the prior quarter, which was driven by lower revenues. A decrease
in net interest income was primarily the result of lower
rates on new loans. Noninterest income declined primarily due to
lower net servicing fee income and lower production-related
revenues that reflect increased competition and a higher proportion
of loans originated through the correspondent network.
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 Susquehanna consumer auto leasing portfolio
was moved to the Dealer Financial Services segment from the Other,
Treasury, and Corporate segment in November in connection with the
Susquehanna systems
conversion.
Dealer Financial Services net income was $42 million for the first quarter of 2016,
essentially flat as declines in segment net interest income due to
lower interest rates were substantially offset by lower noninterest
expense driven by decreased loan processing expense.
Specialized Lending
Specialized Lending consists of businesses that provide
specialty finance solutions 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 group, a former
subsidiary of Susquehanna, was
moved to the Specialized Lending segment from the Other, Treasury,
and Corporate segment in connection with the systems conversion
during November 2015.
Specialized Lending net income was $56
million for the first quarter of 2016, a decrease of
$7 million compared to the prior
quarter. This decrease was driven by lower noninterest income as a
result of lower commercial mortgage income and lower gains on
finance leases, as well as a higher allocated provision for credit
losses driven by net charge-offs in the small business equipment
finance portfolio and an increase in loss estimates in the small
ticket consumer finance portfolio. Partially offsetting these
declines was an improvement in noninterest expense, primarily due
to lower incentive expense.
Specialized Lending average loans increased $15 million, or 0.4% on an annualized basis,
primarily due to higher equipment finance loans and commercial
mortgage loans, partially offset by seasonal declines in insurance
premium finance and mortgage warehouse lending.
Insurance Holdings
BB&T's insurance agency / brokerage network is the fifth
largest in the United States and
sixth largest in the world. Insurance Holdings 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 Holdings net income was $53
million in the first quarter of 2016, an increase of
$17 million compared to the prior
quarter. Noninterest income increased $33
million, which primarily reflects seasonality in the
employee benefits business as well as higher new and renewal
property and casualty commissions, partially offset by lower life
insurance commissions as a result of seasonality.
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 a variety of investment services,
including discount brokerage services, equities, annuities, mutual
funds and government bonds through BB&T Investment Services,
Inc. The segment includes BB&T Securities, a full-service
brokerage and investment banking firm, and the Corporate Banking
Division, which originates and services large corporate
relationships, syndicated lending relationships and client
derivatives. The segment also includes the company's SBIC private
equity investments. Various financial-related business units of
Susquehanna moved into the
Financial Services segment in connection with the systems
conversion during November.
Financial Services net income was $26
million in the first quarter of 2016, a decrease of
$77 million compared to the prior
quarter. Noninterest income decreased $13
million, primarily due to lower client derivative income,
lower trust and investment advisory fees, and lower income from
SBIC private equity investments. These declines were partially
offset by higher capital markets fees.
The allocated provision for credit losses was $90 million in the first quarter of 2016,
compared to a benefit of $2 million
in the prior quarter. This change was driven by higher net
charge-offs and loss estimates for the Corporate Banking loan
portfolio primarily related to the energy lending portfolio.
Noninterest expense increased $13
million compared to the prior quarter, primarily due to
higher personnel and professional services expense.
Corporate Banking's average loan balances increased $480 million, or an annualized 14.9%, over the
prior quarter, while BB&T Wealth's average loan balances
increased $25 million, or 6.4% on an
annualized basis. BB&T Wealth's average transaction account
deposits grew $281 million, or 28.9%
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 first quarter of 2016, Other, Treasury & Corporate
generated net income of $44 million,
compared to a net loss of $22 million
in the prior quarter. First quarter segment results included
$45 million of securities gains.
Segment net interest income decreased $31
million, driven by higher funding credits on deposits
allocated to other segments and the inclusion of Susquehanna in the segment for a portion of
the prior quarter. Noninterest expense decreased $74 million, due to lower personnel and occupancy
and equipment expense, primarily attributable to the movement of
Susquehanna business units into
the various operating segments upon systems conversion.
Additionally, merger-related and restructuring charges declined
from the prior quarter.
First Quarter 2016 compared to First Quarter 2015
Community Banking
Community Banking net income was $310
million for the first quarter of 2016, an increase of
$101 million compared to the earlier
quarter. Segment net interest income and noninterest income
increased $210 million and
$17 million, respectively, primarily
driven by the prior-year acquisition activity.
The allocated provision for credit losses decreased $23 million as a result of lower loss estimates
in the commercial loan portfolio. Noninterest expense increased
$64 million driven by higher
personnel and occupancy and equipment expense, primarily
attributable to the acquisitions. Allocated corporate expense
increased by $27 million compared to
the earlier quarter, primarily driven by acquisitions.
Residential Mortgage Banking
Residential Mortgage Banking net income was $39 million for the first quarter of 2016, a
decrease of $25 million compared to
the earlier quarter. Noninterest income decreased $13 million, driven by lower gains on sales of
loans. The allocated provision for credit losses increased
$23 million as the earlier quarter
reflected improvement in loss severity trends compared to more
stable loss severity in the current quarter.
Dealer Financial Services
Dealer Financial Services net income was $42 million for the first quarter of 2016, a
decrease of $3 million compared to
the earlier quarter. Segment net interest income increased
$14 million, primarily due to the
addition of Susquehanna's consumer
auto leasing business as well as growth in the Regional Acceptance
loan portfolio. The allocated provision for credit losses increased
$15 million, driven by higher net
charge-offs in the Regional Acceptance loan portfolio due to
portfolio mix and an increase in loss severity.
Specialized Lending
Specialized Lending net income was $56
million for the first quarter of 2016, an increase of
$3 million compared to the earlier
quarter. Segment net interest income increased $18 million, primarily attributable to the
addition of Susquehanna's small
business equipment finance group as well as growth in the small
ticket consumer finance portfolio, partially offset by lower
interest rates on new loans. This increase was partially offset by
a higher allocated provision for credit losses driven by net
charge-offs in the small business equipment finance portfolio and
the small ticket consumer finance portfolio as well as higher
noninterest expense primarily due to higher personnel expense, loan
processing expense and depreciation of property under operating
leases.
Insurance Holdings
Insurance Holdings net income was $53
million for the first quarter of 2016, a decrease of
$19 million compared to the earlier
quarter. Noninterest income decreased $21
million, primarily due to the sale of American Coastal in
the second quarter of 2015, partially offset by higher
performance-based commissions in the commercial property and
casualty business.
Financial Services
Financial Services net income was $26
million in the first quarter of 2016, a decrease of
$40 million compared to the earlier
quarter. Segment net interest income increased $29 million, primarily driven by higher loan and
deposit balances for Corporate Banking and BB&T Wealth. The
allocated provision for credit losses increased $66 million in the first quarter of 2016, driven
by higher net charge-offs and loss estimates for the Corporate
Banking loan portfolio related to the energy lending portfolio.
Noninterest expense increased $19
million compared to the prior quarter, primarily due to
higher personnel expense and merger-related and restructuring
charges.
Other, Treasury & Corporate
Other, Treasury & Corporate generated net income of
$44 million for the first quarter of
2016, an increase of $6 million
compared to the earlier quarter. Segment net interest income
decreased $48 million driven
primarily by higher funding spreads on deposits allocated to other
segments. Noninterest income increased $36
million, driven by higher net securities gains and improved
FDIC loss share income. Noninterest expense increased $25 million, primarily due to higher occupancy
and equipment, IT professional services and software expense.
Amortization of intangibles increased $13
million primarily related to prior year acquisitions.
Allocated corporate expense decreased by $41
million, reflecting increases in corporate expense allocated
to the operating segments.
CAPITAL RATIOS
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
|
2Q15
|
|
1Q15
|
Risk-based:
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier
1
|
|
10.4
|
%
|
|
10.3
|
%
|
|
10.1
|
%
|
|
10.4
|
%
|
|
10.5
|
%
|
Tier 1
|
|
12.2
|
|
|
11.8
|
|
|
11.7
|
|
|
12.1
|
|
|
12.2
|
|
Total
|
|
14.6
|
|
|
14.3
|
|
|
14.2
|
|
|
14.2
|
|
|
14.4
|
|
Leverage
|
|
10.1
|
|
|
9.8
|
|
|
9.9
|
|
|
10.2
|
|
|
10.1
|
|
Tangible common
equity to tangible assets (2)
|
|
7.8
|
|
|
7.7
|
|
|
7.7
|
|
|
8.1
|
|
|
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 March 31, 2016. BB&T
declared total common dividends of $0.27 per share during the first quarter of 2016,
which resulted in a dividend payout ratio of 40.3%. Risk-based
capital ratios increased during the first quarter of 2016 primarily
due to the issuance of $465 million
of perpetual preferred stock for net proceeds of $451 million.
BB&T's estimated common equity Tier 1 ratio under Basel III,
on a fully-phased in basis, was approximately 10.2% at
March 31, 2016 and 10.0% at December 31, 2015.
BB&T's liquidity coverage ratio was approximately 135% at
March 31, 2016, 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
14.5% at March 31, 2016.
ASSET QUALITY
(1)
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
Change 1Q16
vs.
|
|
|
1Q16
|
|
4Q15
|
|
1Q15
|
|
4Q15
|
|
1Q15
|
Total nonperforming
assets
|
|
$
|
903
|
|
|
$
|
712
|
|
|
$
|
765
|
|
|
$
|
191
|
|
|
$
|
138
|
|
Total performing
TDRs
|
|
981
|
|
|
982
|
|
|
996
|
|
|
(1)
|
|
|
(15)
|
|
Total loans 90 days
past due and still accruing
|
|
286
|
|
|
312
|
|
|
392
|
|
|
(26)
|
|
|
(106)
|
|
Total loans 30-89
days past due
|
|
823
|
|
|
1,028
|
|
|
759
|
|
|
(205)
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
and leases as a percentage of loans and leases held for investment
(%)
|
|
0.58
|
|
|
0.42
|
|
|
0.50
|
|
|
0.16
|
|
|
0.08
|
|
Nonperforming assets
as a percentage of total assets (%)
|
|
0.42
|
|
|
0.34
|
|
|
0.40
|
|
|
0.08
|
|
|
0.02
|
|
Allowance for loan
and lease losses as a percentage of loans and leases held for
investment (%)
|
|
1.10
|
|
|
1.07
|
|
|
1.22
|
|
|
0.03
|
|
|
(0.12)
|
|
Net charge-offs as a
percentage of average loans and leases (%) annualized
|
|
0.46
|
|
|
0.38
|
|
|
0.34
|
|
|
0.08
|
|
|
0.12
|
|
Ratio of allowance
for loan and lease losses to net charge-offs (times)
annualized
|
|
2.40
|
|
|
2.83
|
|
|
3.60
|
|
|
(0.43)
|
|
|
(1.20)
|
|
Ratio of allowance
for loan and lease losses to nonperforming loans and leases held
for investment (times)
|
|
1.89
|
|
|
2.53
|
|
|
2.45
|
|
|
(0.64)
|
|
|
(0.56)
|
|
(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 totaled $903
million at March 31, 2016, an increase of $191 million compared to December 31, 2015.
The increase was driven by an increase in commercial and industrial
nonperforming loans of $206 million
that were downgraded as a result of a review of shared national
credits in the energy lending portfolio. These loans were current
as to principal and interest at March 31,
2016 and December 31, 2015. At
March 31, 2016, nonperforming loans and leases represented
0.58% of loans and leases held for investment, compared to 0.42% at
December 31, 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 $823 million at March 31, 2016, a decrease
of $205 million compared to the prior
quarter. The decrease was primarily driven by a $97 million decrease in the other lending
subsidiaries portfolio, which reflects seasonality in the nonprime
auto lending business, a $58 million
decrease in residential mortgage loans, a $19 million decrease in sales finance loans, and
a $18 million decrease in commercial
loans.
Loans 90 days or more past due and still accruing totaled
$286 million at March 31, 2016,
a decrease of $26 million compared to
the prior quarter, primarily driven by loans acquired from the FDIC
and PCI loans and residential mortgage loans. Excluding acquired
from the 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
0.14% at March 31, 2016, a decline of one basis point compared
to the prior quarter.
Net charge-offs during the first quarter totaled $154 million, an increase of $24 million compared to the prior quarter,
primarily due to $30 million of
charge-offs related to the energy lending portfolio. As a
percentage of average loans and leases, annualized net charge-offs
were 0.46%, compared to 0.38% in the prior quarter.
The allowance for credit losses, excluding the allowance for
loans acquired from the FDIC and PCI loans, was $1.5 billion, up $28
million compared to the prior quarter primarily the result
of additional reserves established for the energy lending
portfolio. The allowance for loans acquired from the FDIC and PCI
loans was $63 million, essentially
flat compared to the prior quarter. As of March 31, 2016, the
total allowance for loan and lease losses was 1.10% of loans and
leases held for investment, compared to 1.07% at December 31,
2015.
The allowance for loan and lease losses was 1.89 times
nonperforming loans and leases held for investment, compared to
2.53 times at December 31, 2015. This change reflects the
increase in commercial nonaccrual loans discussed above. At
March 31, 2016, the allowance for loan and lease losses was
2.40 times annualized net charge-offs, compared to 2.83 times at
December 31, 2015.
Earnings presentation and Quarterly Performance
Summary
To listen to BB&T's live first quarter 2016 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 2016 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, 2016, BB&T is one of the largest
financial services holding companies in the U.S. with $212.4 billion in assets and market
capitalization of $26.0 billion.
Based in Winston-Salem, N.C., the
company operates 2,137 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 returns relative to balance sheet risk 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 purchased credit impaired ("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 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 First
Quarter 2016 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.
Forward-looking statements are not based on historical facts but
instead represent management's expectations and assumptions
regarding BB&T's business, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. BB&T's
actual results may differ materially from those contemplated by the
forward-looking statements. 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. While
there is no assurance that any list of risks and uncertainties or
risk factors is complete, important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the following, without limitation:
- 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 national or global financial markets,
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
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
or develop products that enable them to compete more successfully
than BB&T and may be subject to different regulatory standards
than BB&T;
- cyber-security risks, including "denial of service,"
"hacking" and "identity theft," could adversely affect our business
and financial performance or our reputation, and we could be liable
for financial losses incurred by third parties due to breaches of
data shared between financial institutions;
- 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 related to the integration of the businesses of
BB&T and its merger partners may be greater than
expected;
- failure to execute on strategic or operational plans,
including the ability to successfully complete and/or integrate
mergers and acquisitions or fully achieve expected cost savings or
revenue growth associated with mergers and acquisitions within the
expected time frames could adversely impact financial condition and
results of operations;
- significant litigation could have a material adverse effect
on BB&T;
- unfavorable resolution of legal proceedings or other claims
and regulatory and other governmental investigations or other
inquiries could result in negative publicity, protests, fines,
penalties, restrictions on BB&T's operations or ability to
expand its business and other negative consequences, all of which
could cause reputational damage and adversely impact BB&T's
financial conditions and results of operations;
- deposit attrition, customer loss and/or revenue loss
following completed mergers and acquisitions may be greater than
expected;
- 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; 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-net-income-available-of-527-million-up-8-record-net-interest-income-exceeding-15-billion-300255035.html
SOURCE BB&T Corporation