The purpose of this Current Report on Form 8-K is to file BB&T Corporation's Quarterly Performance Summary for the third quarter of 2000, including sections distributed to the media and a supplement distributed to analysts.
October 12, 2000
FOR IMMEDIATE RELEASEContacts:
ANALYSTS MEDIA
Tom A. Nicholson Scott E. Reed Bob Denham
Senior Vice President Sr. Exec. Vice President Senior Vice President
Investor Relations Chief Financial Officer Public Relations
(336) 733-3058 (336) 733-3088 (336) 733-1002
BB&T achieves 16.3% growth in third quarter earnings WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today that earnings for the third quarter of 2000 totaled $225.0 million excluding merger-related charges and losses resulting from restructuring the securities portfolio. These earnings reflect an increase of 16.3% compared to $193.5 million earned on a recurring basis in the third quarter of 1999. On a diluted per share basis, recurring earnings for the third quarter totaled $.56, an increase of 16.7% compared to $.48 earned in the third quarter last year.
BB&T’s current quarter results, excluding merger-related charges and bond losses, produced an annualized return on average assets of 1.61% and an annualized return on average shareholders’ equity of 20.25%, compared to prior year ratios of 1.49% and 19.35%, respectively.
During the third quarter of 2000, BB&T incurred merger-related charges totaling $57.9 million and bond losses totaling $117.8 million after related tax benefits. The restructuring of the bond portfolio, which was announced early in the third quarter, will contribute significantly to future earnings.
“We are very pleased to report strong core financial results for the third quarter of 2000,” said Chairman and Chief Executive Officer John A. Allison. “We continue to achieve healthy core earnings growth despite the impact of rising interest rates on our margin. BB&T ranks among industry leaders in terms of performance, particularly in the areas of loan growth, noninterest income growth, asset quality and efficiency.”
For the nine months ended Sept. 30, BB&T’s recurring earnings totaled $642.5 million, an increase of 12.9% compared to $568.9 million earned during the first nine months of 1999. Diluted earnings per share, excluding merger-related costs and losses from the securities portfolio restructuring, totaled $1.59 for the first nine months of 2000, an increase of 12.8% compared to $1.41 earned in 1999.
BB&T’s recurring cash basis earnings totaled $239.7 million for the third quarter, or $.59 per diluted share, increases of 15.7% and 13.5%, respectively, compared to prior year amounts. Recurring cash basis earnings for the third quarter generated an annualized return on average tangible assets of 1.74% and an annualized return on average tangible equity of 25.53%.
Including merger-related expenses and losses from the bond portfolio restructuring, net income for the third quarter of 2000 totaled $49.3 million, or $.12 per diluted share, compared to $173.8 million, or $.43 per diluted share in the third quarter of 1999. Net income for the nine months ended Sept. 30, totaled $401.0 million, or $.99 per diluted share, compared to $538.8 million, or $1.34 per diluted share, for the first nine months of the prior year.
“We have continued to strengthen and grow our franchise by pursuing high-quality merger partners on economically sound terms,” said Allison. “We completed our merger with One Valley Bancorp during the quarter, which added $6.6 billion in assets and 125 branches to our organization. The One Valley merger provided BB&T the top deposit market share in West Virginia and significantly strengthened our Virginia franchise. We also announced plans for three acquisitions that will expand BB&T into Tennessee, strengthen our presence in central Maryland and enhance our leading market share in the economically attractive Greenville – Spartanburg, S.C. metropolitan area.”
“On July 27, BB&T reached an agreement to merge with FCNB Corp, headquartered in Frederick, Md. With $1.6 billion in assets and 34 banking offices , FCNB will strengthen BB&T's presence in economically vibrant central Maryland and the Washington, D.C. corridor. On Aug. 23, BB&T reported plans to acquire BankFirst Corp. of Knoxville, Tenn. BankFirst, with $849 million in assets and 32 banking offices, marks BB&T's initial entry into Tennessee. On Sept. 6, BB&T announced plans to acquire FirstSpartan Financial Corp., of Spartanburg, S.C. FirstSpartan has total assets of $591 million and operates 11 banking offices in South Carolina's rapidly-growing Upstate region.
“BB&T Insurance Services, the 11th largest retail insurance broker in the country, continued its expansion in the third quarter through the purchase of four independent agencies: Asura Corporation, based in Research Triangle Park, N.C.; Pruden Risk Management, Inc., of Dalton, Ga.; the Chaney, Thomas agencies, of Roanoke, Va.; and Poindexter and Associates, of Martinsville, Va.
BB&T also announced plans to expand investment banking and brokerage operations during the quarter through the acquisition of Edgar M. Norris & Co., based in Greenville, S.C. This acquisition, which is expected to be completed in the fourth quarter, will combine the largest independent broker / dealer in South Carolina with Scott & Stringfellow, BB&T’s investment banking and brokerage subsidiary. In addition, BB&T acquired Laureate Capital Corp., a commercial mortgage banking firm based in Charlotte, N.C. Laureate is among the 25 largest commercial mortgage banking firms in the U.S. with a loan servicing portfolio of $4.3 billion.
For the second time in three years, BB&T received recognition from the U.S. Small Business Administration as the No. 1 small business friendly bank in the United States. This acknowledgement reflects the effectiveness of BB&T’s community banking structure and its focus on meeting the financial needs of small businesses.
BB&T had $56.7 billion in assets and 823 banking offices in the Carolinas, Georgia, Virginia, West Virginia, Kentucky, Maryland and Washington, D.C., as of Sept. 30. 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. 11 was $27.81 per share.
For additional information about BB&T’s financial performance, products and services, please visit our web site at www.BBandT.com.
To hear a live webcast of BB&T’s third quarter earnings conference call at 10 a.m. today, please visit our web site at BBandT.com. Replays of the conference call will be available through our web site until midnight (EDT) on Oct. 27.
# This press release contains forward-looking statements as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could 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 could 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 Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 3 Investor Relations FAX(336) 733-3132
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/00 9/30/99 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 1,149,688 $ 990,495 $ 159,193 16.1 %
Interest expense 611,037 472,930 138,107 29.2
Net interest income - taxable equivalent 538,651 517,565 21,086 4.1
Less: Taxable equivalent adjustment 28,286 25,620 2,666 10.4
Net interest income 510,365 491,945 18,420 3.7
Provision for loan & lease losses 24,000 24,352 (352) (1.4)
Net interest income after provision for loan & lease losses 486,365 467,593 18,772 4.0
Noninterest income 252,411 224,012 28,399 12.7
Noninterest expense 406,510 406,293 217 .1
Income before income taxes 332,266 285,312 46,954 16.5
Provision for income taxes 107,302 91,833 15,469 16.8
Income excluding nonrecurring items 224,964 193,479 31,485 16.3
Nonrecurring items, net of tax 175,700 19,700 156,000 NM
Net income $ 49,264 $ 173,779 $ (124,515) (71.7)%
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .56 $ .49 $ .07 14.3 %
Diluted earnings .56 .48 .08 16.7
Weighted average shares - Basic 399,662,723 394,941,799
Diluted 404,477,344 401,178,084
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.61 % 1.49 %
Return on average equity 20.25 19.35
Net yield on earning assets (taxable equivalent) 4.16 4.26
Efficiency (taxable equivalent) (1) 51.3 54.6
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 239,677 $ 207,128 $ 32,549 15.7 %
Diluted earnings per share .59 .52 .07 13.5
Return on average tangible assets 1.74 % 1.61 %
Return on average tangible equity 25.53 24.62
Efficiency ratio (taxable equivalent) (1) 49.4 52.7
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/00 9/30/99 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 1,149,688 $ 990,495 $ 159,193 16.1 %
Interest expense 611,037 472,930 138,107 29.2
Net interest income - taxable equivalent 538,651 517,565 21,086 4.1
Less: Taxable equivalent adjustment 28,286 25,620 2,666 10.4
Net interest income 510,365 491,945 18,420 3.7
Provision for loan & lease losses 38,200 24,352 13,848 56.9
Net interest income after provision for loan & lease losses 472,165 467,593 4,572 1.0
Noninterest income 72,000 222,612 (150,612) (67.7)
Noninterest expense 479,045 433,583 45,462 10.5
Income before income taxes 65,120 256,622 (191,502) (74.6)
Provision for income taxes 15,856 82,843 (66,987) (80.9)
Net income $ 49,264 $ 173,779 $ (124,515) (71.7)%
PER SHARE DATA
Basic earnings $ .12 $ .44 $ (.32) (72.7)%
Diluted earnings .12 .43 (.31) (72.1)
Weighted average shares - Basic 399,662,723 394,941,799
Diluted 404,477,344 401,178,084
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS
Return on average assets .35 % 1.33 %
Return on average equity 4.44 17.38
Net yield on earning assets (taxable equivalent) 4.16 4.26
Efficiency (taxable equivalent) (1) 51.3 54.6
NOTES: Applicable ratios are annualized.
(1) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(2) Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash
basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles
from assets and equity.
NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 4 Investor Relations FAX(336) 733-3132
For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/00 9/30/99 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 3,282,614 $ 2,848,274 $ 434,340 15.2 %
Interest expense 1,685,356 1,345,978 339,378 25.2
Net interest income - taxable equivalent 1,597,258 1,502,296 94,962 6.3
Less: Taxable equivalent adjustment 76,971 71,933 5,038 7.0
Net interest income 1,520,287 1,430,363 89,924 6.3
Provision for loan & lease losses 72,981 74,401 (1,420) (1.9)
Net interest income after provision for loan & lease losses 1,447,306 1,355,962 91,344 6.7
Noninterest income 734,932 653,176 81,756 12.5
Noninterest expense 1,228,012 1,169,024 58,988 5.0
Income before income taxes 954,226 840,114 114,112 13.6
Provision for income taxes 311,701 271,245 40,456 14.9
Income excluding nonrecurring items 642,525 568,869 73,656 12.9
Nonrecurring items, net of tax 241,539 30,086 211,453 NM
Net income $ 400,986 $ 538,783 $ (137,797) (25.6)%
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ 1.61 $ 1.44 $ .17 11.8 %
Diluted earnings 1.59 1.41 .18 12.8
Weighted average shares - Basic 399,588,220 395,125,226
Diluted 404,427,972 402,126,950
Dividends paid on common shares $ .63 $ .55 $ .08 14.5 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.58 % 1.51 %
Return on average equity 20.17 18.90
Net yield on earning assets (taxable equivalent) 4.20 4.27
Noninterest income as a percentage of
total income (taxable equivalent) (1) 31.5 30.4
Efficiency (taxable equivalent) (1) 52.6 54.0
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 687,378 $ 606,869 $ 80,509 13.3 %
Diluted earnings per share 1.70 1.51 .19 12.6
Return on average tangible assets 1.71 % 1.63 %
Return on average tangible equity 25.75 23.54
Efficiency ratio (taxable equivalent) (1) 50.6 52.2
For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/00 9/30/99 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 3,282,614 $ 2,848,274 $ 434,340 15.2 %
Interest expense 1,685,356 1,345,978 339,378 25.2
Net interest income - taxable equivalent 1,597,258 1,502,296 94,962 6.3
Less: Taxable equivalent adjustment 76,971 71,933 5,038 7.0
Net interest income 1,520,287 1,430,363 89,924 6.3
Provision for loan & lease losses 92,431 74,401 18,030 24.2
Net interest income after provision for loan & lease losses 1,427,856 1,355,962 71,894 5.3
Noninterest income 513,430 651,776 (138,346) (21.2)
Noninterest expense 1,357,057 1,212,155 144,902 12.0
Income before income taxes 584,229 795,583 (211,354) (26.6)
Provision for income taxes 183,243 256,800 (73,557) (28.6)
Net income $ 400,986 $ 538,783 $ (137,797) (25.6)%
PER SHARE DATA
Basic earnings $ 1.00 $ 1.36 $ (.36) (26.5)%
Diluted earnings .99 1.34 (.35) (26.1)
Weighted average shares - Basic 399,588,220 395,125,226
Diluted 404,427,972 402,126,950
Dividends paid on common shares $ .63 $ .55 $ .08 14.5 %
PERFORMANCE RATIOS
Return on average assets .99 % 1.43 %
Return on average equity 12.59 17.90
Net yield on earning assets (taxable equivalent) 4.20 4.27
Efficiency (taxable equivalent) (1) 52.6 54.0
NOTES: Applicable ratios are annualized.
(1) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(2) Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash
basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles
from assets and equity.
NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 5 Investor Relations FAX(336) 733-3132
As of / For the Nine Months Ended Increase (Decrease)
(Dollars in thousands) 9/30/00 9/30/99 $ %
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value (1) $ 13,332,055 $ 13,412,791 $ (80,736) (.6)%
Commercial loans & leases 20,049,768 17,487,680 2,562,088 14.7
Consumer loans 9,903,430 8,906,185 997,245 11.2
Revolving credit loans 791,690 658,206 133,484 20.3
Mortgage loans (1) 7,673,991 7,797,749 (123,758) (1.6)
Total loans & leases (1) 38,418,879 34,849,820 3,569,059 10.2
Allowance for loan & lease losses 505,576 467,106 38,470 8.2
Other earning assets 337,527 487,474 (149,947) (30.8)
Total earning assets 52,285,506 49,006,798 3,278,708 6.7
Total assets 56,671,181 52,383,230 4,287,951 8.2
Noninterest-bearing deposits 4,856,375 4,792,494 63,881 1.3
Savings & interest checking 2,271,620 2,961,658 (690,038) (23.3)
Money rate savings 10,167,957 9,087,149 1,080,808 11.9
Time deposits 16,932,290 16,460,294 471,996 2.9
Other deposits 1,806,834 361,994 1,444,840 399.1
Total deposits 36,035,076 33,663,589 2,371,487 7.0
Short-term borrowed funds 6,692,661 7,133,566 (440,905) (6.2)
Long-term debt 8,343,252 6,818,472 1,524,780 22.4
Total interest-bearing liabilities 46,214,614 42,823,133 3,391,481 7.9
Total shareholders' equity $ 4,337,003 $ 4,055,263 $ 281,740 6.9 %
Average balances
Securities, at amortized cost (1) $ 13,360,416 $ 13,140,178 $ 220,238 1.7 %
Commercial loans & leases (1) 19,265,849 16,594,780 2,671,069 16.1
Consumer loans (1) 9,614,259 8,386,849 1,227,410 14.6
Revolving credit loans (1) 692,226 600,123 92,103 15.3
Mortgage loans (1) 7,527,127 7,836,414 (309,287) (3.9)
Total loans & leases (1) 37,099,461 33,418,166 3,681,295 11.0
Other earning assets 324,560 450,516 (125,956) (28.0)
Total earning assets 50,784,437 47,008,860 3,775,577 8.0
Total assets 54,361,298 50,266,587 4,094,711 8.1
Noninterest-bearing deposits (2) 4,916,887 4,625,242 291,645 6.3
Savings & interest checking (2) 2,774,643 3,247,926 (473,283) (14.6)
Money rate savings (2) 9,573,843 8,667,572 906,271 10.5
Time deposits (2) 16,682,972 16,012,670 670,302 4.2
Other deposits (2) 1,757,712 988,267 769,445 77.9
Total deposits (2) 35,706,057 33,541,677 2,164,380 6.5
Short-term borrowed funds 6,681,733 6,045,154 636,579 10.5
Long-term debt 6,943,975 5,959,604 984,371 16.5
Total interest-bearing liabilities 44,414,878 40,921,193 3,493,685 8.5
Total shareholders' equity $ 4,255,228 $ 4,024,444 $ 230,784 5.7 %
As of / For the Quarter Ended
(Dollars in thousands) 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
MISCELLANEOUS INFORMATION
Unrealized depreciation on securities
available for sale, net of tax $ (127,661) $ (298,174) $ (327,920) $ (309,406) $ (161,947)
Derivatives (notional value) 1,752,086 2,354,529 2,145,951 1,701,611 1,745,589
Unrealized (loss) gain on derivatives portfolio 5,864 (2,889) 3,306 2,007 (1,345)
Common stock prices (daily close): High 30.44 31.75 29.19 36.94 36.63
Low 24.06 23.88 22.00 27.31 30.50
End of period 30.13 23.88 28.06 27.38 32.38
Weighted average shares - Basic 399,662,723 399,767,789 399,333,329 398,084,684 394,941,799
Diluted 404,477,344 404,863,658 403,942,370 403,818,385 401,178,084
End of period shares outstanding 397,828,643 399,905,036 399,643,694 398,742,188 396,567,267
End of period banking offices 823 830 831 831 832
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
(1) Balances reflect the securitization of $747.1 million of loans during 2000 and $304.8 million of loans during 1999. Excluding the impact of the securitizations and
purchase accounting transactions, YTD average loans would have increased as follows:
Commercial loans and leasing 15.4% Mortgage loans 3.1 %
Consumer loans 11.2 Total loans 11.4
Revolving credit loans 14.7
(2) Excluding the effects of purchase accounting and the reduction in noninterest-bearing deposits resulting from the outsourcing of the issuance of official checks,
YTD average deposits would have increased as follows:
Noninterest-bearing deposits 5.8% Time and other deposits 6.9 %
Other transaction accounts 2.2 Total deposits 5.1
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 6 Investor Relations FAX(336) 733-3132
As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
Interest & fees on loans & leases $ 900,423 $ 860,814 $ 815,888 $ 795,458 $ 757,455
Interest & dividends on securities 244,181 224,217 221,116 223,234 227,002
Interest on short-term investments 5,084 5,427 5,464 5,920 6,038
Total interest income - taxable equivalent 1,149,688 1,090,458 1,042,468 1,024,612 990,495
Interest expense
Interest on deposits 393,197 354,400 330,298 313,852 303,596
Interest on short-term borrowed funds 91,328 104,165 99,574 89,617 83,576
Interest on long-term debt 126,512 99,596 86,286 93,158 85,758
Total interest expense 611,037 558,161 516,158 496,627 472,930
Net interest income - taxable equivalent 538,651 532,297 526,310 527,985 517,565
Less: Taxable equivalent adjustment 28,286 24,564 24,121 24,729 25,620
Net interest income 510,365 507,733 502,189 503,256 491,945
Provision for loan & lease losses 24,000 24,164 24,817 24,359 24,352
Net interest income after provision for
loan & lease losses 486,365 483,569 477,372 478,897 467,593
Noninterest income
Service charges on deposits 69,186 65,895 61,320 63,392 60,991
Mortgage banking income 24,243 25,072 27,290 29,691 37,501
Investment banking & brokerage fees & commissions 36,488 41,258 45,601 37,138 38,079
Trust revenue 20,297 19,476 18,602 18,110 17,982
Agency insurance commissions 34,278 30,791 29,598 24,929 20,618
Other insurance commissions 3,910 3,809 3,423 3,352 3,779
Other nondeposit fees & commissions 37,503 34,632 31,298 30,497 30,125
Securities gains (losses), net 3 (469) 10 4 (482)
Other income 26,503 26,399 18,516 18,563 15,419
Total noninterest income (1) 252,411 246,863 235,658 225,676 224,012
Noninterest expense
Personnel expense 221,356 222,408 225,434 211,441 214,894
Occupancy & equipment expense 62,585 60,918 61,314 60,463 62,531
Foreclosed property expense 467 769 828 1,337 1,347
Amortization of intangibles & mortgage servicing rights 19,874 19,868 19,261 21,153 20,080
Other noninterest expense 102,228 111,076 99,626 112,648 107,441
Total noninterest expense (2) 406,510 415,039 406,463 407,042 406,293
Income before income taxes 332,266 315,393 306,567 297,531 285,312
Provision for income taxes 107,302 103,918 100,481 99,102 91,833
Net income $ 224,964 $ 211,475 $ 206,086 $ 198,429 $ 193,479
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .56 $ .53 $ .52 $ .50 $ .49
Diluted earnings .56 .52 .51 .49 .48
Dividends paid on common shares .23 .20 .20 .20 .20
Book value per common share $ 10.90 $ 10.69 $ 10.42 $ 10.19 $ 10.23
RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.61 % 1.57 % 1.56 % 1.50 % 1.49 %
Return on average equity 20.25 20.12 20.13 19.19 19.35
Net yield on earning assets (taxable equivalent) 4.16 4.20 4.24 4.28 4.26
Efficiency (taxable equivalent) (3) 51.3 53.1 53.2 53.8 54.6
Noninterest income as a percentage of
total income (taxable equivalent) (3) 31.9 31.7 30.9 29.9 30.3
Equity as a percentage of total assets
end of period 7.7 7.8 7.7 7.7 7.7
Average earning assets as a percentage of
average total assets 93.1 93.5 93.7 93.4 93.8
Average loans & leases as a percentage of
average deposits 104.2 104.0 103.5 103.1 100.4
CASH BASIS PERFORMANCE (4)
Cash basis earnings excluding nonrecurring items $ 239,677 $ 226,769 $ 220,932 $ 213,228 $ 207,128
Diluted cash basis earnings per share .59 .56 .55 .53 .52
Return on average tangible assets 1.74 % 1.70 % 1.69 % 1.63 % 1.61 %
Return on average tangible equity 25.53 25.74 25.97 24.74 24.62
Efficiency ratio (taxable equivalent) (3) 49.4 51.1 51.2 51.8 52.7
NOTES: Applicable ratios are annualized.
(1) Excluding purchase accounting transactions, noninterest income would have increased 4.7% for the nine months and 9.2% for the quarter compared to the same periods in
1999. Excluding purchase accounting and mortgage income fluctuations, noninterest income would have increased 16.9% for the nine months and 18.1% for the quarter.
(2) Excluding purchase accounting transactions, noninterest expense would have decreased .5% for the nine months and 2.4% for the quarter compared to the same
periods in 1999.
(3) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(4) Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. Cash
basis performance ratios exclude the amortization of nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles
from assets and equity.
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 7 Investor Relations FAX(336) 733-3132
As of / For the Quarter Ended
(Dollars in thousands) 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $13,332,055 $ 12,893,473 $ 13,003,164 $12,755,940 $ 13,412,791
Commercial loans & leases 20,049,768 19,666,473 18,963,259 18,178,452 17,487,680
Consumer loans 9,903,430 9,690,951 9,356,364 9,135,324 8,906,185
Revolving credit loans 791,690 706,593 692,075 693,133 658,206
Mortgage loans 7,673,991 7,626,935 7,514,396 7,749,397 7,797,749
Total loans & leases 38,418,879 37,690,952 36,526,094 35,756,306 34,849,820
Allowance for loan & lease losses 505,576 489,067 484,441 477,296 467,106
Other earning assets 337,527 380,321 432,690 514,804 487,474
Total earning assets 52,285,506 51,438,842 50,486,445 49,521,396 49,006,798
Total assets 56,671,181 55,045,161 53,991,314 53,000,836 52,383,230
Noninterest-bearing deposits 4,856,375 5,091,342 5,091,276 4,847,976 4,792,494
Savings & interest checking 2,271,620 2,589,608 2,895,365 2,978,811 2,961,658
Money rate savings 10,167,957 9,742,352 9,708,262 9,592,326 9,087,149
Time deposits 16,932,290 17,967,670 15,914,733 16,199,129 16,460,294
Other deposits 1,806,834 1,047,057 1,267,815 529,401 361,994
Total deposits 36,035,076 36,438,029 34,877,451 34,147,643 33,663,589
Short-term borrowed funds 6,692,661 6,270,703 7,499,943 7,971,873 7,133,566
Long-term debt 8,343,252 7,318,035 6,736,624 6,073,428 6,818,472
Total interest-bearing liabilities 46,214,614 44,935,425 44,022,742 43,344,968 42,823,133
Total shareholders' equity 4,337,003 4,274,644 4,165,787 4,063,619 4,055,263
Goodwill 675,815 663,344 669,919 680,859 652,755
Core deposit & other intangibles 14,888 17,222 16,555 15,762 18,407
Total intangibles 690,703 680,566 686,474 696,621 671,162
Mortgage servicing rights 217,686 192,707 189,724 189,809 177,056
Negative goodwill $ 15,825 $ 17,385 $ 18,946 $ 20,507 $ 22,067
Average balances
Securities, at amortized cost $13,479,872 $ 13,335,345 $ 13,264,718 $13,447,769 $ 13,814,500
Commercial loans & leases (1) 19,792,765 19,320,278 18,678,714 17,975,597 17,296,131
Consumer loans (1) 9,802,558 9,637,019 9,401,131 9,178,105 8,748,261
Revolving credit loans (1) 718,859 685,880 671,646 643,323 616,913
Mortgage loans (1) 7,656,673 7,495,340 7,427,944 7,550,377 7,472,254
Total loans & leases (1) 37,970,855 37,138,517 36,179,435 35,347,402 34,133,559
Other earning assets 269,495 325,737 379,053 386,867 499,254
Total earning assets 51,720,222 50,799,599 49,823,206 49,182,038 48,447,313
Total assets 55,579,535 54,317,488 53,173,484 52,637,610 51,666,605
Noninterest-bearing deposits (2) 4,948,690 5,027,019 4,774,603 4,846,697 4,727,917
Savings & interest checking (2) 2,486,434 2,808,625 3,032,037 3,078,871 3,120,399
Money rate savings (2) 9,774,421 9,604,312 9,340,592 9,176,080 8,892,400
Time deposits (2) 17,303,455 16,553,425 16,185,219 16,308,160 16,033,500
Other deposits (2) 1,913,142 1,719,644 1,638,640 866,315 1,217,762
Total deposits (2) 36,426,142 35,713,025 34,971,091 34,276,123 33,991,978
Short-term borrowed funds 5,756,069 7,001,270 7,298,032 6,940,113 6,676,203
Long-term debt 8,173,862 6,610,451 6,034,097 6,582,262 6,316,154
Total interest-bearing liabilities 45,407,383 44,297,727 43,528,617 42,951,801 42,256,418
Total shareholders' equity $ 4,418,578 $ 4,226,740 $ 4,118,571 $ 4,101,967 $ 3,967,306
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 3,786,188 $ 3,904,912 $ 3,829,510 $ 3,679,736 $ 3,618,118
Total 4,926,810 5,029,010 5,061,765 4,901,622 4,819,967
Risk-based capital ratios:
Tier 1 9.3 % 10.0 % 10.1 % 9.9 % 10.1 %
Total 12.1 12.9 13.3 13.2 13.4
Leverage capital ratio 6.9 7.2 7.3 7.1 7.0
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
(1) Balances reflect the securitization of $747.1 million of loans during 2000 and $304.8 million of loans during 1999. Excluding the impact of the securitizations and
purchase accounting transactions, quarterly average loans would have increased as follows:
Commercial loans and leases 13.9% Mortgage loans 13.0 %
Consumer loans 10.0 Total loans 12.8
Revolving credit loans 6.4
(2) Excluding the effects of purchase accounting and the reduction in noninterest-bearing deposits resulting from the outsourcing of the issuance of official checks,
quarterly average deposits would have increased as follows:
Noninterest-bearing deposits 6.1% Time and other deposits 10.3 %
Other transaction accounts 1.1 Total deposits 6.5
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 8 Investor Relations FAX(336) 733-3132
As of / For the Quarter Ended
(Dollars in thousands) 9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance $ 489,067 $ 484,441 $ 477,296 $ 467,106 $ 458,689
Allowance for acquired loans - - - 1,120 7,473
Provision for loan & lease losses 38,200 27,914 26,317 40,032 24,352
Charge-offs (29,002) (31,135) (27,981) (39,866) (30,994)
Recoveries 7,311 7,847 8,809 8,904 7,586
Net charge-offs (21,691) (23,288) (19,172) (30,962) (23,408)
Ending balance $ 505,576 $ 489,067 $ 484,441 $ 477,296 $ 467,106
Nonperforming Assets
Nonaccrual loans & leases $ 124,276 $ 122,559 $ 117,607 $ 118,975 $ 104,086
Foreclosed real estate 18,535 16,044 17,679 17,015 20,902
Other foreclosed property 16,042 13,694 16,105 14,879 12,044
Restructured loans 445 501 1,471 1,681 1,951
Nonperforming assets $ 159,298 $ 152,798 $ 152,862 $ 152,550 $ 138,983
Loans 90 days or more past due
& still accruing $ 74,922 $ 62,602 $ 48,668 $ 59,974 $ 57,215
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases .20 % .17 % .13 % .17 % .16 %
Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases .32 % .33 % .33 % .34 % .30 %
Nonperforming assets as a percentage of:
Total assets .28 .28 .28 .29 .27
Loans & leases plus
foreclosed property .41 .41 .42 .43 .40
Net charge-offs as a percentage of
average loans & leases .23 .25 .21 .35 .27
Allowance for loan & lease losses as
a percentage of loans & leases 1.32 1.30 1.33 1.33 1.34
Ratio of allowance for loan & lease losses to:
Net charge-offs 5.86 x 5.22 x 6.28 x 3.89 x 5.03 x
Nonaccrual and restructured loans & leases 4.05 3.97 4.07 3.96 4.41
As of / for the Nine Months Ended Increase (Decrease)
9/30/00 9/30/99 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 477,296 $ 442,341 $ 34,955 7.9 %
Allowance for acquired loans - 9,577 (9,577) (100.0)
Provision for loan & lease losses 92,431 74,401 18,030 24.2
Charge-offs (88,118) (82,612) (5,506) (6.7)
Recoveries 23,967 23,399 568 2.4
Net charge-offs (64,151) (59,213) (4,938) (8.3)
Ending balance $ 505,576 $ 467,106 $ 38,470 8.2 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .23 % .24 %
Ratio of allowance for loan & lease losses to
net charge-offs 5.90 x 5.90 x
For the Quarter Ended
9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
ANNUALIZED INTEREST YIELDS / RATES (1)
Interest income:
Securities & other 7.25 % 6.73 % 6.65 % 6.62 % 6.51 %
Loans & leases 9.44 9.31 9.06 8.93 8.82
Total earning assets 8.86 8.62 8.40 8.28 8.13
Interest expense:
Interest-bearing deposits 4.97 4.65 4.40 4.23 4.12
Short-term borrowed funds 6.31 5.98 5.49 5.12 4.97
Long-term debt 6.17 6.05 5.74 5.64 5.41
Total interest-bearing liabilities 5.36 5.07 4.77 4.59 4.44
Net yield on earning assets 4.16 % 4.20 % 4.24 % 4.27 % 4.26 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
(1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost.
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BB&T CORPORATION
(Registrant)
By: /S/ SHERRY A. KELLETT
Sherry A. Kellett
Senior Executive Vice President and Controller
(Principal Accounting Officer)
Date: October 12, 2000
