The purpose of this Current Report on Form 8-K is to file BB&T Corporation's Quarterly Performance Summary for the fourth quarter of 2000, including sections distributed to the media and a supplement distributed to analysts.
January 12, 2001
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 reports record earnings for 2000; 4th quarter earnings per share up 18.4% WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today record results for 2000, the company's 19th consecutive year of record recurring earnings.
Net income for the fourth quarter of 2000 totaled $232.6 million, excluding after-tax merger-related charges of $7.1 million, an increase of 17.2% compared to $198.4 million earned on a recurring basis in 1999. Results for the current quarter produced recurring diluted earnings per share of $.58, compared to $.49 in the fourth quarter of 1999, an increase of 18.4%. Excluding nonrecurring charges, BB&T's annualized return on average assets for the fourth quarter of 2000 was 1.63%, and the annualized return on average shareholders' equity for the quarter was 20.78%, compared to prior year ratios of 1.50% and 19.19%, respectively.
Net income for the year ended Dec. 31, 2000, totaled $875.1 million, or $2.17 per diluted share, before nonrecurring merger-related charges and losses resulting from a restructuring of the securities portfolio. The merger-related charges totaled $105.3 million after related tax benefits, and the securities losses, which were taken in the second and third quarters of 2000, totaled $143.3 million after taxes. Excluding these nonrecurring items, net income for 2000 increased 14.0% compared to recurring results in 1999 and diluted earnings per share increased 13.6%. BB&T's 2000 full-year results, excluding nonrecurring charges, represented a return on average assets of 1.59% and a return on average shareholders' equity of 20.33%, compared to 1999 ratios of 1.51% and 18.97%, respectively.
"I am delighted to report record earnings for both the fourth quarter and full year of 2000," said Chairman and Chief Executive Officer John A. Allison. "The past year presented many challenges for financial services companies due to higher interest rates and the resulting slowing of the U.S. economy. I am pleased that we accomplished substantially all of our financial objectives despite the difficult business environment. In particular, our asset quality has remained excellent. Based on the published results of our local and national peers, BB&T is among the nation's best-performing financial institutions. We are also encouraged that our stock price increased 36.3% during 2000, significantly outpacing our peers. This stock price growth continues an excellent long-term trend, as the compound annual total return to our shareholders over the last ten years has been 26.0%."
BB&T's recurring cash basis earnings totaled $247.7 million for the fourth quarter of 2000, or $.62 per diluted share, increases of 16.2% and 17.0%, respectively, compared to prior year results. For the year, recurring cash basis earnings totaled $935.1 million, or $2.31 per diluted share, increases of 14.0% and 13.2%, respectively, over 1999 results. Cash basis earnings for 2000 generated a return on average tangible assets of 1.72% and a return on average tangible equity of 25.87%.
Including nonrecurring items, net income for 2000 totaled $626.4 million, a decrease of 11.2% compared to $705.6 million earned in 1999. On a diluted per share basis, net income for 2000 was $1.55, a decrease of 11.4% compared to $1.75 earned in 1999. For the fourth quarter, net income, including nonrecurring charges, totaled $225.5 million, or $.56 per diluted share, compared to $166.8 million, or $.41 per diluted share earned in the fourth quarter last year, increases of 35.2% and 36.6%, respectively.
BB&T continued to expand and enhance its franchise during 2000 through a number of bank and non-bank mergers and acquisitions. In January, BB&T completed a merger with Premier Bancshares, ($2 billion in assets) based in Atlanta, Ga. In June, BB&T completed mergers with Hardwick Holding Company, ($518 million in assets) of Dalton, Ga., and First Banking Company of Southeast Georgia, ($419 million in assets) based in Statesboro. In July, BB&T completed its merger with One Valley Bancorp, Inc., ($6.6 billion in assets) of Charleston, W.Va., and announced plans to merge with FCNB Corp., ($1.6 billion in assets) of Frederick, Md. In September, BB&T announced plans to acquire FirstSpartan Financial Corp., ($591 million in assets) of Spartanburg, S.C. In December, BB&T completed the acquisition of BankFirst Corporation, ($849 million in assets) of Knoxville, Tenn., and announced plans to merge with Century South Banks, ($1.6 billion in assets) of Alpharetta, Ga.
BB&T Insurance Services, the 11th largest retail insurance broker in the country, continued its expansion during the year through the purchase of five insurance agencies. BB&T also acquired Edgar M. Norris & Co., headquartered in Greenville, S.C., the largest independent broker / dealer based in South Carolina; and Laureate Capital Corp., a commercial mortgage banking firm based in Charlotte, N.C., which is among the 25 largest commercial mortgage banking firms in the U.S.
For the second time in three years, BB&T received recognition as the No. 1 "small business friendly" bank in the country according to a study released by the U.S. Small Business Administration. Additionally, BB&T was named a "Dividend Achiever" by Mergent FIS, a division of Moody's Investors Service. The 2000 fourth quarter dividend was $.23 per share, a 15% increase over the 1999 fourth quarter dividend of $.20.
As of Dec. 31, 2000, BB&T had $59.3 billion in assets and 854 banking offices in the Carolinas, Georgia, Virginia, West Virginia, Tennessee, Kentucky, Maryland 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 Jan. 11 was $36.94 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 fourth quarter earnings conference call at 10 a.m. today, please visit our web site at www.BBandT.com. Replays of the conference call will be available through our web site until midnight (EST) Jan. 26.
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) 12/31/00 12/31/99 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 1,187,088 $ 1,024,612 $ 162,476 15.9 %
Interest expense 636,690 496,627 140,063 28.2
Net interest income - taxable equivalent 550,398 527,985 22,413 4.2
Less: Taxable equivalent adjustment 53,057 24,729 28,328 114.6
Net interest income 497,341 503,256 (5,915) (1.2)
Provision for loan & lease losses 35,000 24,359 10,641 43.7
Net interest income after provision for loan & lease losses 462,341 478,897 (16,556) (3.5)
Noninterest income 263,936 225,569 38,367 17.0
Noninterest expense 393,909 406,935 (13,026) (3.2)
Income before income taxes 332,368 297,531 34,837 11.7
Provision for income taxes 99,813 99,102 711 .7
Income excluding nonrecurring items 232,555 198,429 34,126 17.2
Nonrecurring items, net of tax 7,099 31,638 (24,539) NM
Net income $ 225,456 $ 166,791 $ 58,665 35.2 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .59 $ .50 $ .09 18.0 %
Diluted earnings .58 .49 .09 18.4
Weighted average shares - Basic 396,912,544 398,084,684
Diluted 402,746,311 403,818,385
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.63 % 1.50 %
Return on average equity 20.78 19.19
Net yield on earning assets (taxable equivalent) 4.17 4.28
Efficiency (taxable equivalent) (1) 48.5 53.8
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 247,696 $ 213,228 $ 34,468 16.2 %
Diluted earnings per share .62 .53 .09 17.0
Return on average tangible assets 1.76 % 1.63 %
Return on average tangible equity 26.24 24.74
Efficiency ratio (taxable equivalent) (1) 46.6 51.8
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/00 12/31/99 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 1,187,088 $ 1,023,941 $ 163,147 15.9 %
Interest expense 636,690 496,627 140,063 28.2
Net interest income - taxable equivalent 550,398 527,314 23,084 4.4
Less: Taxable equivalent adjustment 53,057 24,729 28,328 114.6
Net interest income 497,341 502,585 (5,244) (1.0)
Provision for loan & lease losses 35,000 40,032 (5,032) (12.6)
Net interest income after provision for loan & lease losses 462,341 462,553 (212) (.0)
Noninterest income 263,936 223,596 40,340 18.0
Noninterest expense 404,826 435,275 (30,449) (7.0)
Income before income taxes 321,451 250,874 70,577 28.1
Provision for income taxes 95,995 84,083 11,912 14.2
Net income $ 225,456 $ 166,791 $ 58,665 35.2 %
PER SHARE DATA
Basic earnings $ .57 $ .42 $ .15 35.7 %
Diluted earnings .56 .41 .15 36.6
Weighted average shares - Basic 396,912,544 398,084,684
Diluted 402,746,311 403,818,385
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS
Return on average assets 1.58 % 1.26 %
Return on average equity 20.14 16.13
Net yield on earning assets (taxable equivalent) 4.17 4.27
Efficiency (taxable equivalent) (1) 48.5 53.8
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 Twelve Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/00 12/31/99 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 4,469,702 $ 3,872,886 $ 596,816 15.4 %
Interest expense 2,322,046 1,842,605 479,441 26.0
Net interest income - taxable equivalent 2,147,656 2,030,281 117,375 5.8
Less: Taxable equivalent adjustment 130,028 96,662 33,366 34.5
Net interest income 2,017,628 1,933,619 84,009 4.3
Provision for loan & lease losses 107,981 98,760 9,221 9.3
Net interest income after provision for loan & lease losses 1,909,647 1,834,859 74,788 4.1
Noninterest income (3) 998,524 878,494 120,030 13.7
Noninterest expense (4) 1,621,577 1,575,708 45,869 2.9
Income before income taxes 1,286,594 1,137,645 148,949 13.1
Provision for income taxes 411,514 370,347 41,167 11.1
Income excluding nonrecurring items 875,080 767,298 107,782 14.0
Nonrecurring items, net of tax 248,638 61,724 186,914 NM
Net income $ 626,442 $ 705,574 $ (79,132) (11.2)%
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ 2.19 $ 1.94 $ .25 12.9 %
Diluted earnings 2.17 1.91 .26 13.6
Weighted average shares - Basic 398,915,645 395,871,173
Diluted 404,005,259 402,553,284
Dividends paid on common shares $ .86 $ .75 $ .11 14.7 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.59 % 1.51 %
Return on average equity 20.33 18.97
Net yield on earning assets (taxable equivalent) 4.19 4.27
Noninterest income as a percentage of
total income (taxable equivalent) (1) 31.7 30.3
Efficiency (taxable equivalent) (1) 51.5 54.0
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 935,074 $ 820,097 $ 114,977 14.0 %
Diluted earnings per share 2.31 2.04 .27 13.2
Return on average tangible assets 1.72 % 1.63 %
Return on average tangible equity 25.87 23.84
Efficiency ratio (taxable equivalent) (1) 49.6 52.1
For the Twelve Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/00 12/31/99 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 4,469,702 $ 3,872,215 $ 597,487 15.4 %
Interest expense 2,322,046 1,842,605 479,441 26.0
Net interest income - taxable equivalent 2,147,656 2,029,610 118,046 5.8
Less: Taxable equivalent adjustment 130,028 96,662 33,366 34.5
Net interest income 2,017,628 1,932,948 84,680 4.4
Provision for loan & lease losses 127,431 114,433 12,998 11.4
Net interest income after provision for loan & lease losses 1,890,197 1,818,515 71,682 3.9
Noninterest income 777,022 875,121 (98,099) (11.2)
Noninterest expense 1,761,539 1,647,179 114,360 6.9
Income before income taxes 905,680 1,046,457 (140,777) (13.5)
Provision for income taxes 279,238 340,883 (61,645) (18.1)
Net income $ 626,442 $ 705,574 $ (79,132) (11.2)%
PER SHARE DATA
Basic earnings $ 1.57 $ 1.78 $ (.21) (11.8)%
Diluted earnings 1.55 1.75 (.20) (11.4)
Weighted average shares - Basic 398,915,645 395,871,173
Diluted 404,005,259 402,553,284
Dividends paid on common shares $ .86 $ .75 $ .11 14.7 %
PERFORMANCE RATIOS
Return on average assets 1.14 % 1.39 %
Return on average equity 14.55 17.45
Net yield on earning assets (taxable equivalent) 4.19 4.27
Efficiency (taxable equivalent) (1) 51.5 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.
(3) Excluding purchase accounting transactions, noninterest income would have increased 6.2% for the twelve months and 10.5% for the quarter compared to the same periods
in 1999. Excluding purchase accounting and mortgage income fluctuations, noninterest income would have increased 16.0% for the twelve months and 13.7% for the quarter.
(4) Excluding purchase accounting transactions, noninterest expense would have decreased 1.8% for the twelve months and 5.5% for the quarter compared to the same
periods in 1999.
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 Twelve Months Ended Increase (Decrease)
(Dollars in thousands) 12/31/00 12/31/99 $ %
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value (1) $ 13,947,856 $ 12,755,940 $ 1,191,916 9.3 %
Commercial loans & leases 21,496,877 18,177,375 3,319,502 18.3
Consumer loans 10,107,970 9,135,324 972,646 10.6
Revolving credit loans 840,613 693,133 147,480 21.3
Mortgage loans (1) 7,855,174 7,749,397 105,777 1.4
Total loans & leases (1) 40,300,634 35,755,229 4,545,405 12.7
Allowance for loan & lease losses 521,960 477,296 44,664 9.4
Other earning assets 281,794 514,804 (233,010) (45.3)
Total earning assets 54,355,298 49,520,319 4,834,979 9.8
Total assets 59,340,228 52,999,759 6,340,469 12.0
Noninterest-bearing deposits 5,063,909 4,847,976 215,933 4.5
Savings & interest checking 2,106,379 2,978,811 (872,432) (29.3)
Money rate savings 11,114,041 9,592,326 1,521,715 15.9
Time deposits 17,341,234 16,199,129 1,142,105 7.1
Other deposits 2,388,938 529,401 1,859,537 351.3
Total deposits 38,014,501 34,147,643 3,866,858 11.3
Short-term borrowed funds 6,956,696 7,971,873 (1,015,177) (12.7)
Long-term debt 8,354,672 6,073,428 2,281,244 37.6
Total interest-bearing liabilities 48,261,960 43,344,968 4,916,992 11.3
Total shareholders' equity $ 4,785,925 $ 4,063,619 $ 722,306 17.8 %
Average balances
Securities, at amortized cost (1) $ 13,391,283 $ 13,217,708 $ 173,575 1.3 %
Commercial loans & leases (1) 19,615,769 17,028,228 2,587,541 15.2
Consumer loans (1) 9,649,192 8,542,184 1,107,008 13.0
Revolving credit loans (1) 732,084 631,931 100,153 15.8
Mortgage loans (1) 7,572,896 7,702,351 (129,455) (1.7)
Total loans & leases (1) 37,569,941 33,904,694 3,665,247 10.8
Other earning assets 311,774 434,495 (122,721) (28.2)
Total earning assets 51,272,998 47,556,897 3,716,101 7.8
Total assets 54,962,316 50,864,492 4,097,824 8.1
Noninterest-bearing deposits (2) 4,893,035 4,682,417 210,618 4.5
Savings & interest checking (2) 2,646,809 3,205,315 (558,506) (17.4)
Money rate savings (2) 9,789,555 8,795,744 993,811 11.3
Time deposits (2) 16,779,074 16,090,258 688,816 4.3
Other deposits (2) 1,789,178 954,420 834,758 87.5
Total deposits (2) 35,897,651 33,728,154 2,169,497 6.4
Short-term borrowed funds 6,684,688 6,270,755 413,933 6.6
Long-term debt 7,271,632 6,116,548 1,155,084 18.9
Total interest-bearing liabilities 44,960,936 41,433,040 3,527,896 8.5
Total shareholders' equity $ 4,304,831 $ 4,043,984 $ 260,847 6.5 %
As of / For the Three Months Ended
(Dollars in thousands) 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
MISCELLANEOUS INFORMATION
Unrealized appreciation (depreciation) on securities
available for sale, net of tax $ 103,519 $ (127,661) $ (298,174) $ (327,920) $ (309,406)
Derivatives (notional value) 725,878 1,752,086 2,354,529 2,145,951 1,701,611
Unrealized (loss) gain on derivatives portfolio 267 5,864 (2,889) 3,306 2,007
Common stock prices (daily close): High 38.25 30.44 31.75 29.19 36.94
Low 27.38 24.06 23.88 22.00 27.31
End of period 37.31 30.13 23.88 28.06 27.38
Weighted average shares - Basic 396,912,544 399,662,723 399,767,789 399,333,329 398,084,684
Diluted 402,746,311 404,477,344 404,863,658 403,942,370 403,818,385
End of period shares outstanding 401,678,881 397,828,643 399,905,036 399,643,694 398,742,188
End of period banking offices 854 823 830 831 831
NOTES: All items referring to loans and leases include loans held for sale and are net of unearned income.
(1) Balances reflect the securitization of $984.5 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 leases 14.7% Mortgage loans 7.1 %
Consumer loans 10.5 Total loans 11.9
Revolving credit loans 15.4
(2) Excluding the effects of purchase accounting and the reduction in noninterest-bearing deposits resulting from outsourcing the issuance of official checks,
YTD average deposits would have increased as follows:
Noninterest-bearing deposits 4.3% Time and other deposits 7.8 %
Other transaction accounts 2.6 Total deposits 5.4
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) 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
Interest & fees on loans & leases $ 933,610 $ 900,423 $ 860,814 $ 815,888 $ 795,458
Interest & dividends on securities 248,187 244,181 224,217 221,116 223,234
Interest on short-term investments 5,291 5,084 5,427 5,464 5,920
Total interest income - taxable equivalent 1,187,088 1,149,688 1,090,458 1,042,468 1,024,612
Interest expense
Interest on deposits 402,381 393,197 354,400 330,298 313,852
Interest on short-term borrowed funds 106,646 91,328 104,165 99,574 89,617
Interest on long-term debt 127,663 126,512 99,596 86,286 93,158
Total interest expense 636,690 611,037 558,161 516,158 496,627
Net interest income - taxable equivalent 550,398 538,651 532,297 526,310 527,985
Less: Taxable equivalent adjustment 53,057 28,286 24,564 24,121 24,729
Net interest income 497,341 510,365 507,733 502,189 503,256
Provision for loan & lease losses 35,000 24,000 24,164 24,817 24,359
Net interest income after provision for
loan & lease losses 462,341 486,365 483,569 477,372 478,897
Noninterest income
Service charges on deposits 70,174 68,343 65,009 60,558 62,572
Mortgage banking income 26,481 24,243 25,072 27,290 29,691
Investment banking & brokerage fees & commissions 38,617 36,488 41,258 45,601 37,138
Trust revenue 17,641 20,297 19,476 18,602 18,110
Agency insurance commissions 35,048 34,283 30,798 29,598 24,929
Other insurance commissions 4,450 3,905 3,802 3,423 3,352
Other nondeposit fees & commissions 42,414 38,226 35,400 31,954 31,210
Securities gains (losses), net 4,380 3 (469) 10 4
Other income 24,731 26,503 26,399 18,516 18,563
Total noninterest income 263,936 252,291 246,745 235,552 225,569
Noninterest expense
Personnel expense 222,553 221,356 222,408 225,434 211,441
Occupancy & equipment expense 60,822 62,585 60,918 61,314 60,463
Foreclosed property expense 1,134 467 769 828 1,337
Amortization of intangibles & mortgage servicing rights 20,907 19,874 19,868 19,261 21,153
Other noninterest expense 88,493 102,108 110,958 99,520 112,541
Total noninterest expense 393,909 406,390 414,921 406,357 406,935
Income before income taxes 332,368 332,266 315,393 306,567 297,531
Provision for income taxes 99,813 107,302 103,918 100,481 99,102
Income excluding nonrecurring items $ 232,555 $ 224,964 $ 211,475 $ 206,086 $ 198,429
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .59 $ .56 $ .53 $ .52 $ .50
Diluted earnings .58 .56 .52 .51 .49
Dividends paid on common shares .23 .23 .20 .20 .20
Book value per common share $ 11.91 $ 10.90 $ 10.69 $ 10.42 $ 10.19
RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.63 % 1.61 % 1.57 % 1.56 % 1.50 %
Return on average equity 20.78 20.25 20.12 20.13 19.19
Net yield on earning assets (taxable equivalent) 4.17 4.16 4.20 4.24 4.28
Efficiency (taxable equivalent) (1) 48.5 51.3 53.1 53.2 53.8
Noninterest income as a percentage of
total income (taxable equivalent) (1) 32.0 31.9 31.7 30.9 29.9
Equity as a percentage of total assets
end of period 8.1 7.7 7.8 7.7 7.7
Average earning assets as a percentage of
average total assets 92.9 93.1 93.5 93.7 93.4
Average loans & leases as a percentage of
average deposits 106.9 104.2 104.0 103.5 103.1
CASH BASIS PERFORMANCE (2)
Cash basis earnings excluding nonrecurring items $ 247,696 $ 239,677 $ 226,769 $ 220,932 $ 213,228
Diluted cash basis earnings per share .62 .59 .56 .55 .53
Return on average tangible assets 1.76 % 1.74 % 1.70 % 1.69 % 1.63 %
Return on average tangible equity 26.24 25.53 25.74 25.97 24.74
Efficiency ratio (taxable equivalent) (1) 46.6 49.4 51.1 51.2 51.8
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.
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) 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $13,947,856 $ 13,332,055 $ 12,893,473 $13,003,164 $ 12,755,940
Commercial loans & leases 21,496,877 20,049,402 19,666,122 18,962,854 18,177,375
Consumer loans 10,107,970 9,903,430 9,690,951 9,356,364 9,135,324
Revolving credit loans 840,613 791,690 706,593 692,075 693,133
Mortgage loans 7,855,174 7,673,991 7,626,935 7,514,396 7,749,397
Total loans & leases 40,300,634 38,418,513 37,690,601 36,525,689 35,755,229
Allowance for loan & lease losses 521,960 505,576 489,067 484,441 477,296
Other earning assets 281,794 337,527 380,321 432,690 514,804
Total earning assets 54,355,298 52,285,140 51,438,491 50,486,040 49,520,319
Total assets 59,340,228 56,670,815 55,044,810 53,990,909 52,999,759
Noninterest-bearing deposits 5,063,909 4,856,375 5,091,342 5,091,276 4,847,976
Savings & interest checking 2,106,379 2,271,620 2,589,608 2,895,365 2,978,811
Money rate savings 11,114,041 10,167,957 9,742,352 9,708,262 9,592,326
Time deposits 17,341,234 16,932,290 17,967,670 15,914,733 16,199,129
Other deposits 2,388,938 1,806,834 1,047,057 1,267,815 529,401
Total deposits 38,014,501 36,035,076 36,438,029 34,877,451 34,147,643
Short-term borrowed funds 6,956,696 6,692,661 6,270,703 7,499,943 7,971,873
Long-term debt 8,354,672 8,343,252 7,318,035 6,736,624 6,073,428
Total interest-bearing liabilities 48,261,960 46,214,614 44,935,425 44,022,742 43,344,968
Total shareholders' equity 4,785,925 4,337,003 4,274,644 4,165,787 4,063,619
Goodwill 747,396 675,815 663,344 669,919 680,859
Core deposit & other intangibles 14,017 14,888 17,222 16,555 15,762
Total intangibles 761,413 690,703 680,566 686,474 696,621
Mortgage servicing rights 237,890 217,686 192,707 189,724 189,809
Negative goodwill $ 14,264 $ 15,825 $ 17,385 $ 18,946 $ 20,507
Average balances
Securities, at amortized cost $13,483,213 $ 13,479,872 $ 13,335,345 $13,264,718 $ 13,447,769
Commercial loans & leases (1) 20,417,594 19,868,986 19,400,175 18,764,727 18,064,497
Consumer loans (1) 9,913,897 9,751,532 9,580,530 9,346,776 9,130,553
Revolving credit loans (1) 781,663 742,504 709,513 693,997 665,009
Mortgage loans (1) 7,857,999 7,607,833 7,448,299 7,373,935 7,487,179
Total loans & leases (1) 38,971,153 37,970,855 37,138,517 36,179,435 35,347,238
Other earning assets 273,694 269,495 325,737 379,053 386,867
Total earning assets 52,728,060 51,720,222 50,799,599 49,823,206 49,181,874
Total assets 56,752,304 55,579,535 54,317,488 53,173,484 52,637,446
Noninterest-bearing deposits (2) 4,821,998 4,948,690 5,027,019 4,774,603 4,847,537
Savings & interest checking (2) 2,266,086 2,486,434 2,808,625 3,032,037 3,078,871
Money rate savings (2) 10,432,002 9,774,421 9,604,312 9,340,592 9,176,080
Time deposits (2) 17,065,293 17,303,413 16,553,425 16,185,219 16,308,160
Other deposits (2) 1,882,889 1,913,184 1,719,644 1,638,640 866,315
Total deposits (2) 36,468,268 36,426,142 35,713,025 34,971,091 34,276,963
Short-term borrowed funds 6,693,489 5,756,069 7,001,270 7,298,032 6,940,113
Long-term debt 8,247,480 8,173,862 6,610,451 6,034,097 6,582,262
Total interest-bearing liabilities 46,587,239 45,407,383 44,297,727 43,528,617 42,951,801
Total shareholders' equity $ 4,452,562 $ 4,418,578 $ 4,226,740 $ 4,118,571 $ 4,101,967
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 3,965,750 $ 3,789,670 $ 3,904,912 $ 3,829,510 $ 3,679,736
Total 5,122,503 4,930,292 5,029,010 5,061,765 4,901,622
Risk-based capital ratios:
Tier 1 9.3 % 9.3 % 10.0 % 10.1 % 9.9 %
Total 12.0 12.1 12.9 13.3 13.2
Leverage capital ratio 7.1 6.9 7.2 7.3 7.1
NOTES: All items referring to loans and leases include loans held for sale and are net of unearned income.
(1) Balances reflect the securitization of $984.5 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 13.0% Mortgage loans 19.2 %
Consumer loans 8.5 Total loans 13.2
Revolving credit loans 17.5
(2) Excluding the effects of purchase accounting and the reduction in noninterest-bearing deposits resulting from outsourcing the issuance of official checks,
quarterly average deposits would have increased as follows:
Noninterest-bearing deposits 1.5% Time and other deposits 10.2 %
Other transaction accounts 3.5 Total deposits 6.6
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) 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance $ 505,576 $ 489,067 $ 484,441 $ 477,296 $ 467,106
Allowance for acquired loans 12,934 - - - 1,120
Provision for loan & lease losses 35,000 38,200 27,914 26,317 40,032
Charge-offs (41,994) (29,002) (31,135) (27,981) (39,866)
Recoveries 10,444 7,311 7,847 8,809 8,904
Net charge-offs (31,550) (21,691) (23,288) (19,172) (30,962)
Ending balance $ 521,960 $ 505,576 $ 489,067 $ 484,441 $ 477,296
Nonperforming Assets
Nonaccrual loans & leases $ 149,945 $ 124,276 $ 122,559 $ 117,607 $ 118,975
Foreclosed real estate 26,130 18,535 16,044 17,679 17,015
Other foreclosed property 16,903 16,042 13,694 16,105 14,879
Restructured loans 492 445 501 1,471 1,681
Nonperforming assets $ 193,470 $ 159,298 $ 152,798 $ 152,862 $ 152,550
Loans 90 days or more past due
& still accruing $ 72,256 $ 74,922 $ 62,602 $ 48,668 $ 59,974
Loans 90 days or more past due & still accruing
as a percentage of total loans and leases .18 % .20 % .17 % .13 % .17 %
Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases .37 % .32 % .33 % .33 % .34 %
Nonperforming assets as a percentage of:
Total assets .33 .28 .28 .28 .29
Loans & leases plus
foreclosed property .48 .41 .41 .42 .43
Net charge-offs as a percentage of
average loans & leases .32 .23 .25 .21 .35
Allowance for loan & lease losses as
a percentage of loans & leases 1.30 1.32 1.30 1.33 1.33
Ratio of allowance for loan & lease losses to:
Net charge-offs 4.16 x 5.86 x 5.22 x 6.28 x 3.89 x
Nonaccrual and restructured loans & leases 3.47 4.05 3.97 4.07 3.96
As of / for the Twelve Months Ended Increase (Decrease)
12/31/00 12/31/99 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 477,296 $ 442,341 $ 34,955 7.9 %
Allowance for acquired loans 12,934 10,697 2,237 20.9
Provision for loan & lease losses 127,431 114,433 12,998 11.4
Charge-offs (130,112) (122,478) (7,634) (6.2)
Recoveries 34,411 32,303 2,108 6.5
Net charge-offs (95,701) (90,175) (5,526) (6.1)
Ending balance $ 521,960 $ 477,296 $ 44,664 9.4 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .25 % .27 %
Ratio of allowance for loan & lease losses to
net charge-offs 5.45 x 5.29 x
For the Quarter Ended
12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
ANNUALIZED INTEREST YIELDS / RATES (1)
Interest income:
Securities & other 7.37 % 7.25 % 6.73 % 6.65 % 6.62 %
Loans & leases 9.54 9.44 9.31 9.06 8.93
Total earning assets 8.97 8.86 8.62 8.40 8.28
Interest expense:
Interest-bearing deposits 5.06 4.97 4.65 4.40 4.23
Short-term borrowed funds 6.34 6.31 5.98 5.49 5.12
Long-term debt 6.17 6.17 6.05 5.74 5.63
Total interest-bearing liabilities 5.44 5.36 5.07 4.77 4.59
Net yield on earning assets 4.17 % 4.16 % 4.20 % 4.24 % 4.27 %
NOTES: All items referring to loans and leases include loans held for sale and 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: January 12, 2001
