WINSTON-SALEM, N.C., Oct. 16 /PRNewswire-FirstCall/ -- BB&T Corporation
(NYSE: BBT) reported today net income for the third quarter of 2008
totaling $358 million, or $.65 per diluted share, compared with $444
million, or $.80 per diluted share, earned during the third quarter of
2007. These results reflect decreases of 19.4% and 18.8%, respectively,
compared to the same quarter last year.
BB&T's third quarter net income produced annualized returns on average
assets and average shareholders' equity of 1.04% and 10.86%, respectively,
compared to prior year returns of 1.37% and 14.24%, respectively.
Operating earnings for the third quarter of 2008 totaled $355 million,
or $.64 per diluted share, excluding $35 million in net after-tax
securities gains, $26 million in after-tax charges for other-than-temporary
impairment and $6 million in after-tax charges for nonrecurring
professional fees and merger-related and restructuring charges. Operating
earnings for the third quarter of 2007 totaled $448 million, or $.81 per
diluted share, excluding $4 million in net after-tax merger-related and
restructuring charges.
"While we are not immune to the unprecedented challenges in the
financial markets, BB&T remains a strong and financially sound company,"
said Chairman and Chief Executive Officer John A. Allison. "Our capital
levels, debt ratings and earnings are among the best in the industry. Our
pre-tax pre-provision operating earnings for the third quarter were $865
million, an increase of 12.0% compared to the same period last year,
indicating that we are growing our client base and that our underlying
businesses are performing well despite market and credit challenges. Our
net interest margin improved for the fourth consecutive quarter and many of
our fee income businesses continue to produce healthy revenue growth.
"There is tremendous turmoil in the financial services industry right
now, creating a great deal of anxiety in our communities," said Allison.
"BB&T has grown and prospered in other challenging economic times and I
believe we will not only navigate the current challenges but will be even
more successful in the future."
GAAP and operating results for the third quarter of 2008 include a $364
million provision for credit losses. The provision exceeded net charge-offs
by $122 million and resulted in an increase in the allowance for loan and
lease losses as a percentage of loans and leases held for investment to
1.45% at Sept. 30 compared to 1.33% at June 30.
For the first nine months of 2008, BB&T's net income was $1.21 billion
compared to $1.32 billion earned in the first nine months of 2007, a
decrease of 8.2%. Diluted earnings per share for the first nine months of
2008 totaled $2.20 compared to $2.40 earned during the same period in 2007.
Excluding merger-related and restructuring charges or credits and
nonrecurring items, operating earnings for the first nine months of 2008
totaled $1.13 billion, or $2.06 per diluted share, compared to $1.33
billion, or $2.42 per diluted share, earned during the first nine months of
2007.
Nonperforming Assets and Credit Losses Increase
BB&T's nonperforming asset levels and credit losses increased further
in the third quarter of 2008 compared to the second quarter of 2008.
Nonperforming assets, as a percentage of total assets, increased to 1.20%
at Sept. 30, compared to .95% at June 30. Annualized net charge-offs were
1.00% of average loans and leases for the third quarter of 2008, up from
.72% in the second quarter of 2008. Excluding losses incurred by BB&T's
specialized lending subsidiaries, annualized net charge-offs for the
current quarter were .82% of average loans and leases compared to .53% in
the second quarter of 2008.
The provision for credit losses totaled $364 million in the third
quarter of 2008, an increase of $259 million compared to the same quarter
last year, and exceeded net charge-offs by $122 million in the current
quarter. The increases in net charge-offs, nonperforming assets and the
provision for credit losses were largely driven by continued challenges in
residential real estate markets with the largest concentration of credit
issues occurring in Georgia, Florida and metro Washington, D.C.
BB&T Capital Levels Increase
BB&T's tangible and regulatory capital levels increased and remained
very healthy at Sept. 30. BB&T's tangible capital ratio was 5.8% at Sept.
30, up from 5.7% at June 30, and the Tier 1 leverage ratio was 7.6%, up
from 7.2% last quarter. In addition, BB&T's Tier 1 risk-based capital and
total risk-based capital ratios were 9.4% and 14.4%, respectively, up from
8.9% and 14.0%, respectively, at June 30. BB&T's risk-based capital ratios
are significantly higher than an average of its peers and remain well above
regulatory standards for well-capitalized banks.
During the third quarter, BB&T declared a quarterly cash dividend of
$.47 per share, up 2.2% compared to the third quarter of 2007. BB&T has
increased the cash dividend for 37 consecutive years and has paid a
dividend every year since 1903.
Net interest margin improves to 3.66%
BB&T's fully taxable equivalent net interest income totaled $1.1
billion for the third quarter, an increase of 11.8% compared to the same
quarter of 2007. The net interest margin was 3.66% for the current quarter,
up from 3.65% for the second quarter of 2008 and up from 3.45% in the third
quarter last year. The increase marks the fourth consecutive quarter that
BB&T's margin has improved.
BB&T's Fee-Based Businesses Produce Solid Quarterly Growth Rates
On an operating basis, noninterest income increased $102 million, or
15.1%, during the third quarter of 2008 compared to 2007. These increases
include higher revenues generated by BB&T's insurance operations, service
charges on deposit accounts, and other nondeposit fees and commissions, as
well as a solid performance from BB&T's mortgage banking operations.
Income from BB&T's insurance operations increased 12.6% to $232 million
in the current quarter compared with $206 million earned during the third
quarter last year. This increase was primarily the result of new product
initiatives that were introduced during the second half of 2007.
Service charges on deposit accounts totaled $176 million for the third
quarter of 2008, an increase of 12.1% compared to $157 million earned in
the same quarter last year. This increase was primarily attributable to
growth in client relationships and revenues from overdraft items.
Other nondeposit fees and commissions totaled $137 million for the
third quarter of 2008, an increase of 6.2% compared to the third quarter of
2007. This increase was generated primarily by growth in bankcard income
and debit card related services.
Revenues from mortgage banking operations totaled $83 million for the
third quarter of 2008, an increase of $56 million compared to the third
quarter of 2007. This increase reflects the adoption of fair value
accounting standards and the net change in the mortgage servicing rights
valuation. Fair value accounting increased mortgage banking income by $13
million, and also resulted in an $11 million increase in personnel expense
during the quarter. The net change in the valuation of mortgage servicing
rights resulted in an increase of $18 million compared to the third quarter
of 2007. The increase was the result of the mortgage servicing rights hedge
outperforming the decline in the value of the asset. Excluding the impact
of these items, mortgage banking income increased $25 million, or 119%,
compared to the same period last year. The growth in mortgage banking
income includes strong production revenues from both residential and
commercial mortgage banking operations.
Other noninterest income totaled $30 million for the third quarter of
2008 compared to $23 million earned in the same quarter last year, an
increase of 30.4%. The growth in noninterest income was generated by an
increase of $16 million from trading and hedging activities due to losses
incurred in the prior year's third quarter, which were partially offset by
reduced earnings of $9 million from investments in low income housing
partnerships that generate tax benefits compared to the third quarter of
2007.
Balance Sheet Growth Remains Healthy
Average loans and leases totaled $95.9 billion for the third quarter of
2008, reflecting an increase of $6.9 billion, or 7.7%, compared to the
third quarter of 2007. This increase was composed of growth in average
commercial loans and leases, which increased $5.3 billion, or 12.4%;
average mortgage loans, which increased $563 million, or 3.1%; average
sales finance loans, which increased $286 million, or 4.8%; average
revolving credit loans, which increased $203 million, or 13.7%; average
loans originated by BB&T's specialized lending subsidiaries, which
increased $446 million, or 8.4%; and growth in average direct retail loans,
which increased $61 million, or 0.4%, compared to the third quarter last
year.
Average deposits totaled $90.0 billion for the third quarter of 2008,
an increase of 6.9% compared to $84.2 billion for the third quarter of
2007. The average growth rate in client deposits accelerated to 16.5%, on
an annualized basis, compared to the second quarter of 2008, as BB&T is
gaining many new client relationships. During the third quarter of 2008,
BB&T's banking network generated approximately 31,000 net new transaction
accounts.
BB&T Continues to Expand Insurance Business
BB&T expanded its coastal South Carolina insurance operations with the
acquisition of Puckett, Scheetz & Hogan of Myrtle Beach, S.C. The merger
will give BB&T the largest insurance market share in greater Myrtle Beach.
BB&T also acquired Sumter, S.C.-based Southern Risk Operations LLC, an
insurance broker that specializes in finding coverage for a broad range of
risks. Also, in early September, BB&T acquired Commercial Title Group, Inc.
of Vienna, Va.
At Sept. 30, BB&T had $137.0 billion in assets and operated 1,501
banking offices in the Carolinas, Virginia, West Virginia, Kentucky,
Georgia, Maryland, Tennessee, Florida, Alabama, Indiana and Washington,
D.C. BB&T's common stock is traded on the New York Stock Exchange under the
trading symbol BBT. The closing price of BB&T's common stock on Oct. 15 was
$32.16 per share.
For additional information about BB&T's financial performance, company
news, products and services, please visit our Web site at http://www.BBT.com.
Earnings Webcast
To hear a live webcast of BB&T's third quarter 2008 earnings conference
call at 11:00 a.m. (EDT) today, please visit our Web site at http://www.BBT.com.
Replays of the conference call will be available through our Web site until
Friday, Oct. 31 or by dialing 1-888-203-1112 plus access code 6794434 until
Tuesday, Oct. 21.
Risk-based capital ratios are preliminary.
This press release contains financial information 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.
Non-GAAP measures typically adjust GAAP performance measures to exclude the
effects of charges, expenses and gains related to the consummation of
mergers and acquisitions, and costs related to the integration of merged
entities, as well as the amortization of intangibles and purchase
accounting mark-to-market adjustments in the case of "cash basis"
performance measures. These non-GAAP measures may also exclude other
significant gains, losses or expenses that are unusual in nature and not
expected to recur. Since these items and their impact on BB&T's performance
are difficult to predict, management believes presentations of financial
measures excluding the impact of these items provide useful supplemental
information that is important for a proper understanding of the operating
results of BB&T's core businesses. These disclosures should not be viewed
as a substitute for operating results determined in accordance with GAAP,
nor are they necessarily comparable to non-GAAP performance measures that
may be presented by other companies.
This press release contains certain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. These
statements may address issues that involve significant risks,
uncertainties, estimates and assumptions made by management. Actual results
may differ materially from current projections. Please refer to BB&T's
filings with the Securities and Exchange Commission for a summary of
important factors that may affect BB&T's forward-looking statements. BB&T
undertakes no obligation to revise these statements following the date of
this press release.
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Three Months Percent
Ended Increase
9/30/08 9/30/07 (Decrease)
OPERATING EARNINGS STATEMENTS (1)
Interest income - taxable equivalent $1,821 $2,051 (11.2)%
Interest expense 712 1,059 (32.8)
Net interest income - taxable
equivalent 1,109 992 11.8
Less: Taxable equivalent adjustment 21 14 50.0
Net interest income 1,088 978 11.2
Provision for credit losses 364 105 246.7
Net interest income after provision
for credit losses 724 873 (17.1)
Noninterest income 777 675 15.1
Noninterest expense 1,000 881 13.5
Operating earnings before income
taxes 501 667 (24.9)
Provision for income taxes 146 219 (33.3)
Operating earnings (1) $355 $448 (20.8)%
PER SHARE DATA BASED ON OPERATING
EARNINGS (1)
Basic Earnings $.64 $.81 (21.0)%
Diluted Earnings .64 .81 (21.0)
Weighted average shares (in
thousands) -
Basic 549,761 550,603
Diluted 553,544 555,336
Dividends paid per share $.47 $.46 2.2 %
PERFORMANCE RATIOS BASED ON OPERATING
EARNINGS (1)
Return on average assets 1.03 % 1.38 %
Return on average equity 10.74 14.38
Net yield on earning assets (taxable
equivalent) 3.66 3.45
Noninterest income as a percentage of
total income (taxable equivalent) (2) 40.5 40.1
Efficiency ratio (taxable equivalent) (2) 52.3 52.9
CASH BASIS PERFORMANCE
BASED ON OPERATING EARNINGS (1)(3)
Cash basis operating earnings $371 $466 (20.4)%
Diluted earnings per share .67 .84 (20.2)
Return on average tangible assets 1.12 % 1.50 %
Return on average tangible equity 19.77 26.86
Efficiency ratio (taxable equivalent) (2) 51.0 51.3
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Three Months Percent
Ended Increase
9/30/08 9/30/07 (Decrease)
INCOME STATEMENTS
Interest Income $1,793 $2,030 (11.7)%
Interest Expense 705 1,052 (33.0)
Net interest income 1,088 978 11.2
Provision for credit losses 364 105 246.7
Net interest income after provision
for credit losses 724 873 (17.1)
Noninterest income 792 675 17.3
Noninterest expense 1,009 888 13.6
Income before income taxes 507 660 (23.2)
Provision for income taxes 149 216 (31.0)
Net income $358 $444 (19.4)%
PER SHARE DATA
Basic earnings $.65 $.81 (19.8)%
Diluted earnings .65 .80 (18.8)
Weighted average shares (in
thousands) -
Basic 549,761 550,603
Diluted 553,544 555,336
PERFORMANCE RATIOS BASED
ON NET INCOME
Return on average assets 1.04 % 1.37 %
Return on average equity 10.86 14.24
Efficiency ratio (taxable equivalent) (2) 52.8 53.3
NOTES: Applicable ratios are annualized.
(1) Operating earnings exclude the effect of merger-related and
restructuring charges or credits and nonrecurring items.
These amounts totaled $(3 million) and $4 million, net of tax,
in the third quarters of 2008 and 2007, respectively.
See Reconciliation Tables included herein.
(2) Excludes securities gains (losses), foreclosed property expense,
increases or decreases in the valuation of mortgage servicing
rights, and gains or losses on mortgage servicing rights-related
derivatives. Cash basis and operating ratios also exclude
merger-related and restructuring charges or credits and
nonrecurring items, where applicable. See Reconciliation Tables
included herein.
(3) Cash basis performance information excludes the effect on
earnings of amortization expense applicable to intangible assets,
the unamortized balances of intangibles from assets and equity,
net of deferred taxes, and the net amortization of purchase
accounting mark-to-market adjustments. See Reconciliation Tables
included herein.
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Nine Months Percent
Ended Increase
9/30/08 9/30/07 (Decrease)
OPERATING EARNINGS STATEMENTS (1)
Interest income - taxable equivalent $5,556 $5,940 (6.5)%
Interest expense 2,323 3,000 (22.6)
Net interest income - taxable
equivalent 3,233 2,940 10.0
Less: Taxable equivalent adjustment 60 51 17.6
Net interest income 3,173 2,889 9.8
Provision for credit losses 917 264 247.3
Net interest income after provision
for credit losses 2,256 2,625 (14.1)
Noninterest income 2,294 2,056 11.6
Noninterest expense 2,942 2,676 9.9
Operating earnings before income
taxes 1,608 2,005 (19.8)
Provision for income taxes 475 671 (29.2)
Operating earnings (1) $1,133 $1,334 (15.1)%
PER SHARE DATA BASED ON OPERATING
EARNINGS (1)
Basic Earnings $2.07 $2.44 (15.2)%
Diluted Earnings 2.06 2.42 (14.9)
Weighted average shares (in
thousands) -
Basic 547,543 546,978
Diluted 551,144 552,153
Dividends paid per share $1.39 $1.30 6.9 %
PERFORMANCE RATIOS BASED ON OPERATING
EARNINGS (1)
Return on average assets 1.12 % 1.43 %
Return on average equity 11.63 14.86
Net yield on earning assets (taxable
equivalent) 3.61 3.54
Noninterest income as a percentage of
total income (taxable equivalent) (2) 40.8 41.1
Efficiency ratio (taxable equivalent) (2) 52.9 53.3
CASH BASIS PERFORMANCE
BASED ON OPERATING EARNINGS (1)(3)
Cash basis operating earnings $1,181 $1,384 (14.7)%
Diluted earnings per share 2.14 2.51 (14.7)
Return on average tangible assets 1.22 % 1.55 %
Return on average tangible equity 21.33 27.83
Efficiency ratio (taxable equivalent) (2) 51.5 51.7
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Nine Months Percent
Ended Increase
9/30/08 9/30/07 (Decrease)
INCOME STATEMENTS
Interest Income $5,478 $5,882 (6.9)%
Interest Expense 2,305 2,993 (23.0)
Net interest income 3,173 2,889 9.8
Provision for credit losses 917 264 247.3
Net interest income after provision
for credit losses 2,256 2,625 (14.1)
Noninterest income 2,390 2,056 16.2
Noninterest expense 2,907 2,694 7.9
Income before income taxes 1,739 1,987 (12.5)
Provision for income taxes 525 664 (20.9)
Net income $1,214 $1,323 (8.2)%
PER SHARE DATA
Basic earnings $2.22 $2.42 (8.3)%
Diluted earnings 2.20 2.40 (8.3)
Weighted average shares (in
thousands) -
Basic 547,543 546,978
Diluted 551,144 552,153
PERFORMANCE RATIOS BASED
ON NET INCOME
Return on average assets 1.20 % 1.42 %
Return on average equity 12.46 14.74
Efficiency ratio (taxable equivalent) (2) 51.5 53.6
NOTES: Applicable ratios are annualized.
(1) Operating earnings exclude the effect of merger-related and
restructuring charges or credits and nonrecurring items.
These amounts totaled $(81 million) and $11 million, net of
tax, in 2008 and 2007, respectively. See Reconciliation Tables
included herein.
(2) Excludes securities gains (losses), foreclosed property expense,
increases or decreases in the valuation of mortgage servicing
rights, and gains or losses on mortgage servicing rights-related
derivatives. Cash basis and operating ratios also exclude
merger-related and restructuring charges or credits and
nonrecurring items, where applicable. See Reconciliation Tables
included herein.
(3) Cash basis performance information excludes the effect on
earnings of amortization expense applicable to intangible assets,
the unamortized balances of intangibles from assets and equity,
net of deferred taxes, and the net amortization of purchase
accounting mark-to-market adjustments. See Reconciliation Tables
included herein.
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions)
As of / For the Percent
Nine Months Ended Increase
9/30/08 9/30/07 (Decrease)
CONSOLIDATED BALANCE SHEETS
End of period balances
Cash and due from banks $1,701 $1,613 5.5 %
Interest-bearing deposits with banks 701 604 16.1
Federal funds sold and other earning
assets 345 507 (32.0)
Securities available for sale 20,534 23,061 (11.0)
Trading securities 548 1,587 (65.5)
Total securities 21,082 24,648 (14.5)
Commercial loans and leases 48,694 43,365 12.3
Direct retail loans 15,569 15,586 (0.1)
Sales finance loans 6,314 6,056 4.3
Revolving credit loans 1,718 1,535 11.9
Mortgage loans 17,259 17,051 1.2
Specialized lending 5,709 5,288 8.0
Total loans and leases held for
investment 95,263 88,881 7.2
Loans held for sale 1,419 1,178 20.5
Total loans and leases 96,682 90,059 7.4
Allowance for loan and lease losses 1,377 934 47.4
Total earning assets 119,409 116,057 2.9
Premises and equipment, net 1,557 1,504 3.5
Goodwill 5,340 5,132 4.1
Core deposit and other intangibles 507 491 3.3
Other assets 10,503 7,157 46.8
Total assets 137,041 130,781 4.8
Noninterest-bearing deposits 13,534 13,197 2.6
Interest checking 2,189 1,128 94.1
Other client deposits 37,786 35,391 6.8
Client certificates of deposit 26,519 26,315 0.8
Total client deposits 80,028 76,031 5.3
Other interest-bearing deposits 8,359 9,154 (8.7)
Total deposits 88,387 85,185 3.8
Fed funds purchased, repos and other
borrowings 10,075 10,618 (5.1)
Long-term debt 21,337 19,059 12.0
Total interest-bearing liabilities 106,265 101,665 4.5
Other liabilities 4,307 3,517 22.5
Total liabilities 124,106 118,379 4.8
Total shareholders' equity $12,935 $12,402 4.3 %
Average balances
Securities, at amortized cost $23,800 $23,090 3.1 %
Commercial loans and leases 46,931 41,971 11.8
Direct retail loans 15,606 15,415 1.2
Sales finance loans 6,171 5,856 5.4
Revolving credit loans 1,639 1,430 14.6
Mortgage loans 18,653 17,217 8.3
Specialized lending 5,514 5,101 8.1
Total loans and leases 94,514 86,990 8.6
Allowance for loan and lease losses 1,140 914 24.7
Other earning assets 1,096 971 12.9
Total earning assets 119,410 111,051 7.5
Total assets 135,311 124,873 8.4
Noninterest-bearing deposits 12,981 13,188 (1.6)
Interest checking 2,412 2,299 4.9
Other client deposits 35,965 34,035 5.7
Client certificates of deposit 26,707 25,822 3.4
Total client deposits 78,065 75,344 3.6
Other interest-bearing deposits 9,707 7,564 28.3
Total deposits 87,772 82,908 5.9
Fed funds purchased, repos and other
borrowings 10,004 8,848 13.1
Long-term debt 20,557 17,769 15.7
Total interest-bearing liabilities 105,352 96,337 9.4
Total shareholders' equity $13,015 $12,001 8.4 %
NOTES: All items referring to average loans and leases include loans held
for sale.
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Three Months Ended
9/30/08 9/30/07
RECONCILIATION TABLE
Net income $358 $444
Merger-related and restructuring
items, net of tax 3 4
Other, net of tax (3) (6) -
Operating earnings 355 448
Amortization of intangibles, net
of tax 15 17
Amortization of mark-to-market
adjustments, net of tax 1 1
Cash basis operating earnings 371 466
Return on average assets 1.04 % 1.37 %
Effect of merger-related and
restructuring items, net of tax .01 .01
Effect of other, net of tax (3) (.02) -
Operating return on average assets 1.03 1.38
Effect of amortization of
intangibles, net of tax (1) .09 .12
Effect of amortization of mark-
to-market adjustments, net of tax - -
Cash basis operating return on
average tangible assets 1.12 1.50
Return on average equity 10.86 % 14.24 %
Effect of merger-related and
restructuring items, net of tax .10 .14
Effect of other, net of tax (3) (.22) -
Operating return on average equity 10.74 14.38
Effect of amortization of
intangibles, net of tax (1) 9.00 12.43
Effect of amortization of mark-
to-market adjustments, net of tax .03 .05
Cash basis operating return on
average tangible equity 19.77 26.86
Efficiency ratio (taxable
equivalent) (2) 52.8 % 53.3 %
Effect of merger-related and
restructuring items (.3) (.4)
Effect of other (3) (.2) -
Operating efficiency ratio (2) 52.3 52.9
Effect of amortization of
intangibles (1.3) (1.6)
Effect of amortization of mark-
to-market adjustments - -
Cash basis operating efficiency
ratio (2) 51.0 51.3
Fee income ratio (2) 40.5 % 40.1 %
Effect of other (3) - -
Operating fee income ratio (2) 40.5 40.1
Basic earnings per share $.65 $.81
Effect of merger-related and
restructuring items, net of tax - -
Effect of other, net of tax (3) (.01) -
Operating basic earnings per share .64 .81
Diluted earnings per share $.65 $.80
Effect of merger-related and
restructuring items, net of tax - .01
Effect of other, net of tax (3) (.01) -
Operating diluted earnings per
share .64 .81
Effect of amortization of
intangibles, net of tax .03 .03
Effect of amortization of mark-
to-market adjustments, net of tax - -
Cash basis operating diluted
earnings per share .67 .84
NOTES: Applicable ratios are annualized.
(1) Reflects the effect of excluding average intangible assets
from average assets and average equity, net of deferred taxes,
to calculate cash basis ratios.
(2) Excludes securities gains (losses), foreclosed property
expense, increases or decreases in the valuation of mortgage
servicing rights, and gains or losses on mortgage servicing
rights-related derivatives. Operating and cash basis ratios
also exclude merger-related and restructuring charges or
credits and nonrecurring items, where applicable.
(3) The third quarter of 2008 reflects net securities gains,
other-than-temporary impairment losses and other nonrecurring
professional fees collectively totaling $6 million, net of
tax.
QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data)
For the Nine Months Ended
9/30/08 9/30/07
RECONCILIATION TABLE
Net income $1,214 $1,323
Merger-related and restructuring
items, net of tax 7 11
Other, net of tax (3) (88) -
Operating earnings 1,133 1,334
Amortization of intangibles, net
of tax 47 49
Amortization of mark-to-market
adjustments, net of tax 1 1
Cash basis operating earnings 1,181 1,384
Return on average assets 1.20 % 1.42 %
Effect of merger-related and
restructuring items, net of tax .01 .01
Effect of other, net of tax (3) (.09) -
Operating return on average assets 1.12 1.43
Effect of amortization of
intangibles, net of tax (1) .10 .12
Effect of amortization of mark-to-
market adjustments, net of tax - -
Cash basis operating return on
average tangible assets 1.22 1.55
Return on average equity 12.46 % 14.74 %
Effect of merger-related and
restructuring items, net of tax .08 .12
Effect of other, net of tax (3) (.91) -
Operating return on average equity 11.63 14.86
Effect of amortization of
intangibles, net of tax (1) 9.69 12.95
Effect of amortization of mark-to-
market adjustments, net of tax .01 .02
Cash basis operating return on
average tangible equity 21.33 27.83
Efficiency ratio (taxable
equivalent) (2) 51.5 % 53.6 %
Effect of merger-related and
restructuring items (.2) (.3)
Effect of other (3) 1.6 -
Operating efficiency ratio (2) 52.9 53.3
Effect of amortization of
intangibles (1.4) (1.6)
Effect of amortization of mark-to-
market adjustments - -
Cash basis operating efficiency
ratio (2) 51.5 51.7
Fee income ratio (2) 41.6 % 41.1 %
Effect of other (3) (.8) -
Operating fee income ratio (2) 40.8 41.1
Basic earnings per share $2.22 $2.42
Effect of merger-related and
restructuring items, net of tax .01 .02
Effect of other, net of tax (3) (.16) -
Operating basic earnings per share 2.07 2.44
Diluted earnings per share $2.20 $2.40
Effect of merger-related and
restructuring items, net of tax .02 .02
Effect of other, net of tax (3) (.16) -
Operating diluted earnings per
share 2.06 2.42
Effect of amortization of
intangibles, net of tax .08 .09
Effect of amortization of mark-to-
market adjustments, net of tax - -
Cash basis operating diluted
earnings per share 2.14 2.51
NOTES: Applicable ratios are annualized.
(1) Reflects the effect of excluding average intangible assets from
average assets and average equity, net of deferred taxes, to
calculate cash basis ratios.
(2) Excludes securities gains (losses), foreclosed property
expense, increases or decreases in the valuation of mortgage
servicing rights, and gains or losses on mortgage servicing
rights-related derivatives. Operating and cash basis ratios
also exclude merger-related and restructuring charges or
credits and nonrecurring items, where applicable.
(3) 2008 reflects net securities gains, other-than-temporary
impairments, gains from the initial IPO and sale of Visa, Inc.
shares, a reversal of reserve charge relating to the Visa,
Inc. settlement, gains from the early extinguishment of certain
FHLB advances and nonrecurring professional expenses
collectively totaling $88 million, net of tax.
SOURCE BB&T Corporation
 back to top
Related links:
http://www.BBT.com
http://www.prnewswire.com/gh/cnoc/comp/809325.html/
CONTACT:
ANALYSTS, Tamera Gjesdal, Senior Vice
President, Investor Relations, +1-336-733-3058, Chris Henson, Sr.
Exec. Vice President, Chief Financial Officer, +1-336-733-3008,
or MEDIA, Bob Denham, Senior Vice President, Corporate
Communications, +1-336-733-1475, all of BB&T Corporation
|
