UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
October 11, 2001
Date of Report (Date of earliest event reported)
BB&T Corporation
(Exact name of registrant as specified in its charter)
Commission file number : 1-10853
| North Carolina | 56-0939887 |
| (State of incorporation) | (I.R.S. Employer Identification No.) |
| 200 West Second Street | |
| Winston-Salem, North Carolina | 27101 |
| (Address of principal executive offices) | (Zip Code) |
(336) 733-2000
(Registrant's telephone number, including area code)
This Form 8-K has 14 pages.
ITEM 5. OTHER EVENTS
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 2001.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued October 11, 2001
October 11, 2001
FOR IMMEDIATE RELEASE
Contacts:
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
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today third quarter 2001 earnings totaling $283.5 million, or $.62 per diluted share, excluding $61.5 million in after-tax nonrecurring items associated with the recently-completed merger with F&M National Corporation of Winchester, Va., and systems conversion costs related to other mergers. Diluted earnings per share, excluding nonrecurring items, increased 14.8% in the third quarter of 2001 compared to the prior year, while recurring net income increased 14.2% compared to third quarter 2000 results.
BB&T’s third quarter 2001 results, excluding nonrecurring items, produced an annualized return on average assets of 1.62% compared to 1.58% in the third quarter of 2000. The annualized return on average shareholders’ equity generated by third quarter earnings, exclusive of nonrecurring items, was 19.05% in 2001 and 19.62% in 2000, while the return on average shareholders’ equity, excluding net unrealized gains or losses on securities available for sale, or realized equity, was 20.00% for the third quarter of 2001 and 18.80% for the third quarter last year.
Cash basis operating results, which exclude the effects of intangible assets and the related amortization expenses, also reflected double-digit gains compared to 2000. Recurring cash basis earnings totaled $300.6 million for the third quarter of 2001, or $.65 per diluted share, increases of 14.1% and 12.1%, respectively, compared to prior year results. Cash basis earnings for the current quarter generated an annualized return on average tangible assets of 1.73% and an annualized return on average tangible shareholders’ equity of 23.57%.
“I am pleased to announce solid third quarter results, especially in light of the current challenging economic environment,” said Chairman and Chief Executive Officer John A. Allison. “Our loan growth has slowed and our levels of nonperforming assets and credit losses have increased as a result of the economic slowdown. However, healthy growth of noninterest income and effective expense control have allowed us to achieve strong overall results.”
For the nine months ended Sept. 30, BB&T's net income was $812.4 million, or $1.77 per diluted share, excluding after-tax nonrecurring items totaling $116.7 million. These earnings reflect increases of 14.7% and 14.2%, respectively, compared to 2000. Recurring earnings for the first nine months of 2001 and 2000 resulted in annualized returns on average assets of 1.59% in 2001 and 1.55% in 2000. The annualized return on average shareholders’ equity produced by recurring earnings was 19.11% in 2001 compared to 19.49% a year earlier, while the annualized return on average realized shareholders’ equity was 19.89% for the first nine months of 2001 compared to 18.26% in 2000.
Including the nonrecurring items, net income for the third quarter of 2001 totaled $222.0 million, an increase of 206.3% compared to $72.5 million earned in the third quarter of 2000. On a diluted per share basis, net income for the quarter was $.48, an increase of 200.0% compared to $.16 earned in 2000. For the first nine months of 2001, net income was $695.7 million, an increase of 49.0% compared to $466.8 million earned during the first nine months of 2000. On a diluted per share basis, net income was $1.51 for the nine months ended Sept. 30, an increase of 48.0% compared to $1.02 earned in 2000. Results in 2000 were significantly affected by merger-related charges and losses from a restructuring of the securities portfolio.
BB&T continues to enjoy solid growth in noninterest income producing businesses. Excluding nonrecurring items, noninterest income totaled $336.3 million for the third quarter, reflecting an increase of 24.0% compared to the third quarter of 2000. This increase was driven by substantially higher mortgage banking income and continued growth in service charges on deposits, trust revenue and insurance commissions.
BB&T’s mortgage loan production has more than doubled during 2001 compared to last year because of 2001's lower interest rate environment. Through Sept. 30, BB&T originated $7.1 billion in mortgage loans, generating a 105.6% increase in mortgage banking income in the third quarter of 2001 compared to the same period last year. An increase in deposit account and transaction volume fueled the growth in service charges on deposits, which totaled $88.4 million for the quarter, an increase of 16.3% compared to the third quarter of 2000. Trust income totaled $22.9 million for the third quarter, up 7.9% compared to 2000. Agency insurance commissions totaled $44.2 million for the third quarter, an increase of 14.0% compared to the third quarter of 2000. This growth resulted from higher property and casualty, group health and surety insurance commissions, as well as acquisitions of additional agencies. BB&T’s insurance agency network is the 10th largest insurance broker in the country according to Business Insurance magazine.
Excluding purchase accounting transactions, noninterest income would have totaled $321.9 million in the third quarter, reflecting an increase of 18.7% compared to the same period in 2000.
Average loans and leases totaled $47.2 billion for the third quarter, reflecting an increase of 11.2% compared to the same period last year. Commercial loans and leases increased $2.9 billion, or 13.0%; consumer loans increased $511.9 million, or 4.8%; mortgage loans increased $1.2 billion, or 14.2%; and revolving credit increased $134.5 million, or 17.6%. Excluding the effects of loans acquired through purchase acquisitions and the effects of loan securitization programs, average total loans and leases would have increased 8.9% compared to the third quarter of 2000.
As anticipated, BB&T’s nonperforming asset levels and credit losses increased in the third quarter. Nonperforming assets, as a percentage of total assets, increased to .45% compared to .31% at Sept. 30, 2000, and .43% at June 30, 2001. Net charge-offs amounted to .37% of average loans and leases for the third quarter of 2001 and .35% year to date. Excluding losses at BB&T’s specialized lending subsidiaries, net charge-offs for the third quarter and nine months of 2001 were .30% and .29%, respectively.
Over the long term, BB&T’s net charge-off ratios and relative levels of nonperforming assets have been substantially better than industry averages, and current levels are approximately half that of the most recently published industry results.
“We have maintained industry leading credit quality levels in good economic times and recessions,” said Allison. “By applying a lending strategy focused on clients in our local markets through our community bank approach and by lending to clients with whom we have broad financial relationships, we have successfully managed credit risk.”
BB&T has consistently improved its productivity, partially by focusing on controlling expenses. Recurring noninterest expense for the third quarter of 2001 was $515.0 million, an increase of 11.1% compared to the third quarter of 2000. Excluding the effects of purchase accounting, noninterest expense would have totaled $491.6 million for the third quarter, an increase of 6.0% compared to the third quarter last year. BB&T’s efficiency ratio for the third quarter of 2001 was 51.4% compared to 52.2% for the same period in 2000. On a cash basis, the efficiency ratio was 49.6% for the third quarter, compared to a prior year ratio of 50.4%. Cost savings achieved in mergers have been one of the primary reasons that BB&T has been able to consistently improve its efficiencies.
BB&T’s recurring net interest income on a fully taxable equivalent basis totaled $669.3 million for the third quarter, an increase of $54.1 million, or 8.8%, compared to the third quarter of 2000. The net interest margin was 4.19% for the third quarter, down from 4.22% in the comparable period last year, but higher than the second quarter’s margin, which was 4.16%. The yield earned on average loans during the third quarter was 8.24%, down 1.21% compared to the third quarter last year, while the rate paid for interest-bearing deposits averaged 3.96% for the third quarter, down .96% compared to 2000.
On July 10, BB&T announced plans to acquire Community First Banking Company of Carrollton, Ga. (“CFBC”). CFBC has approximately $548.1 million in assets and operates nine banking offices in western Georgia. The acquisition, which is planned for completion in the fourth quarter, will expand BB&T’s presence in the metropolitan Atlanta area and give BB&T the seventh largest deposit market share in Georgia, a state BB&T entered only two years ago.
On Aug. 9, BB&T completed its merger with F&M National Corporation of Winchester, Va. (“F&M”). With approximately $4.0 billion in assets, F&M operates 163 banking offices, 13 mortgage banking offices, three trust offices, and six insurance offices. The transaction expands BB&T’s presence along the Interstate 81 and Interstate 95 corridors in northern Virginia and the economically strong markets of Richmond and Washington, D.C. The merger propelled BB&T to fourth in terms of deposit market share in Virginia and fifth in Washington, D.C.
On Aug. 29, BB&T announced plans to acquire The Southeastern Trust Company, a trust and asset management company with offices in Anderson, Charleston, Columbia and Greenville, S.C. This acquisition, which is scheduled for completion in the fourth quarter, will expand BB&T’s market position providing wealth management services to affluent individuals and institutional investors in South Carolina.
BB&T Insurance Services, Inc. continued to grow through the acquisition of high-quality agencies during the quarter. First American Title Company of the Carolinas, LLC, of Charlotte, N.C., Lowery D. Finley and Company of Virginia Beach, Va., and Lofton and Company, Inc. of Savannah, Ga., were all acquired during the current quarter.
On Oct. 9, BB&T announced plans to acquire Horizon Mortgage & Investment Company of Atlanta (“Horizon”). With a loan servicing portfolio of $480 million, the purchase of Horizon will enhance BB&T’s mortgage banking operations. The transaction is expected to be completed in the fourth quarter.
During the quarter, BankFirst Corporation, FirstSpartan Financial Corp. and Virginia Capital Bancshares, Inc., were successfully converted to BB&T’s systems. During the first nine months of 2001, BB&T has successfully completed a total of six major systems conversions.
At Sept. 30, BB&T had $70.3 billion in assets and operated 1,094 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Alabama 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. 10 was $33.20 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 www.BBandT.com. Replays of the conference call will be available through our web site until 5 p.m. (EDT) Oct. 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.
BB&T’s news releases are available at no charge through PR Newswire&s Company News On-Call facsimile service. For a menu of BB&T’s news releases or to retrieve a specific release call 800-758-5804, extension 809325.
| 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 | |||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 9/30/01 | 9/30/00 | $ | % | ||||||||||
| INCOME STATEMENT EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Interest income - taxable equivalent | $ | 1,261,183 | $ | 1,289,138 | $ | (27,955) | (2.2) | % | ||||||
| Interest expense | 591,839 | 673,864 | (82,025) | (12.2) | ||||||||||
| Net interest income - taxable equivalent | 669,344 | 615,274 | 54,070 | 8.8 | ||||||||||
| Less: Taxable equivalent adjustment | 45,572 | 29,177 | 16,395 | 56.2 | ||||||||||
| Net interest income | 623,772 | 586,097 | 37,675 | 6.4 | ||||||||||
| Provision for loan & lease losses | 45,500 | 26,514 | 18,986 | 71.6 | ||||||||||
| Net interest income after provision for loan & lease losses | 578,272 | 559,583 | 18,689 | 3.3 | ||||||||||
| Noninterest income (3) | 336,296 | 271,183 | 65,113 | 24.0 | ||||||||||
| Noninterest expense (4) | 515,033 | 463,549 | 51,484 | 11.1 | ||||||||||
| Income before income taxes | 399,535 | 367,217 | 32,318 | 8.8 | ||||||||||
| Provision for income taxes | 116,020 | 119,043 | (3,023) | (2.5) | ||||||||||
| Income excluding nonrecurring items | 283,515 | 248,174 | 35,341 | 14.2 | ||||||||||
| Nonrecurring items, net of tax | 61,549 | 175,700 | (114,151) | NM | ||||||||||
| Net income | $ | 221,966 | $ | 72,474 | $ | 149,492 | 206.3 | % | ||||||
| PER SHARE DATA EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Basic earnings | $ | .62 | $ | .55 | $ | .07 | 12.7 | % | ||||||
| Diluted earnings | .62 | .54 | .08 | 14.8 | ||||||||||
| Weighted average shares - Basic | 454,346,907 | 451,578,894 | ||||||||||||
| Diluted | 460,387,879 | 456,725,224 | ||||||||||||
| Dividends paid on common shares | $ | .26 | $ | .23 | $ | .03 | 13.0 | % | ||||||
| PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Return on average assets | 1.62 | % | 1.58 | % | ||||||||||
| Return on average equity | 19.05 | 19.62 | ||||||||||||
| Return on average realized equity (5) | 20.00 | 18.80 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.19 | 4.22 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.4 | 52.2 | ||||||||||||
| CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2) | ||||||||||||||
| Net Income | $ | 300,643 | $ | 263,543 | $ | 37,100 | 14.1 | % | ||||||
| Diluted earnings per share | .65 | .58 | .07 | 12.1 | ||||||||||
| Return on average tangible assets | 1.73 | % | 1.70 | % | ||||||||||
| Return on average tangible equity | 23.57 | 24.36 | ||||||||||||
| Return on average realized tangible equity (5) | 24.94 | 23.18 | ||||||||||||
| Efficiency ratio (taxable equivalent) (1) | 49.6 | 50.4 | ||||||||||||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 9/30/01 | 9/30/00 | $ | % | ||||||||||
| INCOME STATEMENT | ||||||||||||||
| Interest income - taxable equivalent | $ | 1,259,722 | $ | 1,289,138 | $ | (29,416) | (2.3) | % | ||||||
| Interest expense | 591,839 | 673,864 | (82,025) | (12.2) | ||||||||||
| Net interest income - taxable equivalent | 667,883 | 615,274 | 52,609 | 8.6 | ||||||||||
| Less: Taxable equivalent adjustment | 45,572 | 29,177 | 16,395 | 56.2 | ||||||||||
| Net interest income | 622,311 | 586,097 | 36,214 | 6.2 | ||||||||||
| Provision for loan & lease losses | 68,500 | 40,714 | 27,786 | 68.2 | ||||||||||
| Net interest income after provision for loan & lease losses | 553,811 | 545,383 | 8,428 | 1.5 | ||||||||||
| Noninterest income | 335,685 | 90,772 | 244,913 | 269.8 | ||||||||||
| Noninterest expense | 582,234 | 536,084 | 46,150 | 8.6 | ||||||||||
| Income before income taxes | 307,262 | 100,071 | 207,191 | 207.0 | ||||||||||
| Provision for income taxes | 85,296 | 27,597 | 57,699 | 209.1 | ||||||||||
| Net income | $ | 221,966 | $ | 72,474 | $ | 149,492 | 206.3 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | .49 | $ | .16 | $ | .33 | 206.3 | % | ||||||
| Diluted earnings | .48 | .16 | .32 | 200.0 | ||||||||||
| Weighted average shares - Basic | 454,346,907 | 451,578,894 | ||||||||||||
| Diluted | 460,387,879 | 456,725,224 | ||||||||||||
| Dividends paid on common shares | $ | .26 | $ | .23 | $ | .03 | 13.0 | % | ||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets | 1.27 | % | .46 | % | ||||||||||
| Return on average equity | 14.92 | 5.73 | ||||||||||||
| Return on average realized equity (5) | 15.66 | 5.49 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.18 | 4.22 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.4 | 52.2 | ||||||||||||
| 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 $50.7 million, or 18.7%, for the quarter compared to the same period in 2000. | |
| (4) | Excluding purchase accounting transactions, noninterest expense would have increased $28.0 million, or 6.0%, for the quarter compared to the same period in 2000. | |
| (5) | Excludes the impact on average shareholders' equity of unrealized gains (losses) that result from changes in market values of securities available for sale. | |
| NM - | not meaningful. |
| 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 | |||
| For the Nine Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 9/30/01 | 9/30/00 | $ | % | ||||||||||
| INCOME STATEMENT EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Interest income - taxable equivalent | $ | 3,863,879 | $ | 3,681,096 | $ | 182,783 | 5.0 | % | ||||||
| Interest expense | 1,911,569 | 1,861,321 | 50,248 | 2.7 | ||||||||||
| Net interest income - taxable equivalent | 1,952,310 | 1,819,775 | 132,535 | 7.3 | ||||||||||
| Less: Taxable equivalent adjustment | 147,927 | 79,695 | 68,232 | 85.6 | ||||||||||
| Net interest income | 1,804,383 | 1,740,080 | 64,303 | 3.7 | ||||||||||
| Provision for loan & lease losses | 122,968 | 79,779 | 43,189 | 54.1 | ||||||||||
| Net interest income after provision for loan & lease losses | 1,681,415 | 1,660,301 | 21,114 | 1.3 | ||||||||||
| Noninterest income | 975,808 | 790,673 | 185,135 | 23.4 | ||||||||||
| Noninterest expense | 1,509,460 | 1,397,886 | 111,574 | 8.0 | ||||||||||
| Income before income taxes | 1,147,763 | 1,053,088 | 94,675 | 9.0 | ||||||||||
| Provision for income taxes | 335,376 | 344,783 | (9,407) | (2.7) | ||||||||||
| Income excluding nonrecurring items | 812,387 | 708,305 | 104,082 | 14.7 | ||||||||||
| Nonrecurring items, net of tax | 116,692 | 241,539 | (124,847) | NM | ||||||||||
| Net income | $ | 695,695 | $ | 466,766 | $ | 228,929 | 49.0 | % | ||||||
| PER SHARE DATA EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Basic earnings | $ | 1.79 | $ | 1.57 | $ | .22 | 14.0 | % | ||||||
| Diluted earnings | 1.77 | 1.55 | .22 | 14.2 | ||||||||||
| Weighted average shares - Basic | 452,904,319 | 451,513,773 | ||||||||||||
| Diluted | 459,235,651 | 456,679,270 | ||||||||||||
| Dividends paid on common shares | $ | .72 | $ | .63 | $ | .09 | 14.3 | % | ||||||
| PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Return on average assets | 1.59 | % | 1.55 | % | ||||||||||
| Return on average equity | 19.11 | 19.49 | ||||||||||||
| Return on average realized equity (3) | 19.89 | 18.26 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.17 | 4.26 | ||||||||||||
| Noninterest income as a percentage of | ||||||||||||||
| total income (taxable equivalent) (1) | 33.1 | 30.3 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.7 | 53.4 | ||||||||||||
| CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2) | ||||||||||||||
| Net Income | $ | 864,639 | $ | 754,956 | $ | 109,683 | 14.5 | % | ||||||
| Diluted earnings per share | 1.88 | 1.65 | .23 | 13.9 | ||||||||||
| Return on average tangible assets | 1.72 | % | 1.67 | % | ||||||||||
| Return on average tangible equity | 23.84 | 24.40 | ||||||||||||
| Return on average realized tangible equity (3) | 24.99 | 22.60 | ||||||||||||
| Efficiency ratio (taxable equivalent) (1) | 49.8 | 51.6 | ||||||||||||
| For the Nine Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 9/30/01 | 9/30/00 | $ | % | ||||||||||
| INCOME STATEMENT | ||||||||||||||
| Interest income - taxable equivalent | $ | 3,861,830 | $ | 3,681,096 | $ | 180,734 | 4.9 | % | ||||||
| Interest expense | 1,911,569 | 1,861,321 | 50,248 | 2.7 | ||||||||||
| Net interest income - taxable equivalent | 1,950,261 | 1,819,775 | 130,486 | 7.2 | ||||||||||
| Less: Taxable equivalent adjustment | 147,927 | 79,695 | 68,232 | 85.6 | ||||||||||
| Net interest income | 1,802,334 | 1,740,080 | 62,254 | 3.6 | ||||||||||
| Provision for loan & lease losses | 159,318 | 99,229 | 60,089 | 60.6 | ||||||||||
| Net interest income after provision for loan & lease losses | 1,643,016 | 1,640,851 | 2,165 | .1 | ||||||||||
| Noninterest income | 1,014,395 | 569,171 | 445,224 | 78.2 | ||||||||||
| Noninterest expense | 1,684,708 | 1,526,931 | 157,777 | 10.3 | ||||||||||
| Income before income taxes | 972,703 | 683,091 | 289,612 | 42.4 | ||||||||||
| Provision for income taxes | 277,008 | 216,325 | 60,683 | 28.1 | ||||||||||
| Net income | $ | 695,695 | $ | 466,766 | $ | 228,929 | 49.0 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | 1.54 | $ | 1.03 | $ | .51 | 49.5 | % | ||||||
| Diluted earnings | 1.51 | 1.02 | .49 | 48.0 | ||||||||||
| Weighted average shares - Basic | 452,904,319 | 451,513,773 | ||||||||||||
| Diluted | 459,235,651 | 456,679,270 | ||||||||||||
| Dividends paid on common shares | $ | .72 | $ | .63 | $ | .09 | 14.3 | % | ||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets | 1.36 | % | 1.02 | % | ||||||||||
| Return on average equity | 16.36 | 12.84 | ||||||||||||
| Return on average realized equity (3) | 17.03 | 12.03 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.16 | 4.26 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.7 | 53.4 | ||||||||||||
| 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) | Excludes the impact on average shareholders' equity of unrealized gains (losses) that result from changes in market values of securities available for sale. | |
| NM - | not meaningful. |
| 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 Nine Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 9/30/00 | $ | % | ||||||||||
| SELECTED BALANCE SHEET DATA | ||||||||||||||
| End of period balances | ||||||||||||||
| Securities available for sale | $ | 16,679,755 | $ | 14,527,160 | $ | 2,152,595 | 14.8 | % | ||||||
| Securities held to maturity | 38,379 | 638,760 | (600,381) | (94.0 | ) | |||||||||
| Trading securities | 116,523 | 132,543 | (16,020) | (12.1 | ) | |||||||||
| Total securities | 16,834,657 | 15,298,463 | 1,536,194 | 10.0 | ||||||||||
| Commercial loans & leases | 25,532,901 | 22,499,933 | 3,032,968 | 13.5 | ||||||||||
| Consumer loans | 11,278,277 | 10,992,847 | 285,430 | 2.6 | ||||||||||
| Revolving credit loans | 908,868 | 813,094 | 95,774 | 11.8 | ||||||||||
| Mortgage loans | 9,429,390 | 8,598,210 | 831,180 | 9.7 | ||||||||||
| Total loans & leases | 47,149,436 | 42,904,084 | 4,245,352 | 9.9 | ||||||||||
| Allowance for loan & lease losses | 634,552 | 559,455 | 75,097 | 13.4 | ||||||||||
| Other earning assets | 370,912 | 457,997 | (87,085) | (19.0 | ) | |||||||||
| Total earning assets | 63,685,851 | 58,890,723 | 4,795,128 | 8.1 | ||||||||||
| Total assets | 70,309,046 | 63,808,683 | 6,500,363 | 10.2 | ||||||||||
| Noninterest-bearing deposits | 6,356,051 | 5,938,470 | 417,581 | 7.0 | ||||||||||
| Savings & interest checking | 3,094,104 | 3,560,987 | (466,883) | (13.1 | ) | |||||||||
| Money rate savings | 13,156,255 | 10,891,016 | 2,265,239 | 20.8 | ||||||||||
| CD's and other time deposits | 22,607,819 | 21,427,330 | 1,180,489 | 5.5 | ||||||||||
| Total deposits | 45,214,229 | 41,817,803 | 3,396,426 | 8.1 | ||||||||||
| Short-term borrowed funds | 5,923,442 | 7,022,471 | (1,099,029) | (15.7 | ) | |||||||||
| Long-term debt | 11,408,329 | 8,675,769 | 2,732,560 | 31.5 | ||||||||||
| Total interest-bearing liabilities | 56,189,949 | 51,577,573 | 4,612,376 | 8.9 | ||||||||||
| Total shareholders' equity | $ | 5,969,828 | $ | 4,959,479 | $ | 1,010,349 | 20.4 | |||||||
| Average balances | ||||||||||||||
| Securities, at amortized cost | $ | 15,767,824 | $ | 15,160,276 | $ | 607,548 | 4.0 | % | ||||||
| Commercial loans & leases | 24,933,417 | 21,865,428 | 3,067,989 | 14.0 | ||||||||||
| Consumer loans | 11,127,578 | 10,516,242 | 611,336 | 5.8 | ||||||||||
| Revolving credit loans | 873,955 | 735,447 | 138,508 | 18.8 | ||||||||||
| Mortgage loans | 9,374,228 | 8,299,754 | 1,074,474 | 12.9 | ||||||||||
| Total loans & leases | 46,309,178 | 41,416,871 | 4,892,307 | 11.8 | ||||||||||
| Other earning assets | 460,558 | 457,240 | 3,318 | .7 | ||||||||||
| Total earning assets | 62,537,560 | 57,034,387 | 5,503,173 | 9.6 | ||||||||||
| Total assets | 68,231,868 | 61,106,903 | 7,124,965 | 11.7 | ||||||||||
| Noninterest-bearing deposits | 6,086,614 | 5,911,277 | 175,337 | 3.0 | ||||||||||
| Savings & interest checking | 3,422,254 | 4,004,166 | (581,912) | (14.5 | ) | |||||||||
| Money rate savings | 12,320,263 | 10,267,376 | 2,052,887 | 20.0 | ||||||||||
| CD's and other time deposits | 22,275,306 | 20,962,772 | 1,312,534 | 6.3 | ||||||||||
| Total deposits | 44,104,437 | 41,145,591 | 2,958,846 | 7.2 | ||||||||||
| Short-term borrowed funds | 6,226,380 | 6,966,872 | (740,492) | (10.6 | ) | |||||||||
| Long-term debt | 10,792,831 | 7,301,915 | 3,490,916 | 47.8 | ||||||||||
| Total interest-bearing liabilities | 55,037,034 | 49,503,101 | 5,533,933 | 11.2 | ||||||||||
| Total shareholders' equity | $ | 5,684,865 | $ | 4,854,273 | $ | 830,592 | 17.1 | % | ||||||
| As of / For the Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | |||||||||
| MISCELLANEOUS INFORMATION (1) | ||||||||||||||
| Unrealized appreciation (depreciation) on | ||||||||||||||
| securities available for sale, net of tax | $ | 407,966 | $ | 250,548 | $ | 248,575 | $ | 104,297 | $ | (147,634) | ||||
| Derivatives (notional value) (2) | 900,275 | 253,817 | 334,767 | 825,878 | 1,752,086 | |||||||||
| Unrealized gain (loss) on derivatives portfolio (2) | 32,759 | 413 | 1,577 | 348 | 5,864 | |||||||||
| Common stock prices (daily close): High | 38.48 | 37.01 | 37.88 | 38.25 | 30.44 | |||||||||
| Low | 33.57 | 34.25 | 31.42 | 27.38 | 24.06 | |||||||||
| End of period | 36.45 | 36.70 | 35.17 | 37.31 | 30.13 | |||||||||
| Weighted average shares - Basic | 454,346,907 | 451,712,342 | 452,634,896 | 448,630,759 | 451,578,894 | |||||||||
| Diluted | 460,387,879 | 457,879,467 | 459,429,071 | 454,825,664 | 456,725,224 | |||||||||
| End of period shares outstanding | 452,984,331 | 456,031,476 | 453,380,066 | 453,307,379 | 449,661,955 | |||||||||
| End of period banking offices | 1,094 | 1,095 | 1,096 | 1,091 | 1,060 | |||||||||
| NOTES: | All items referring to loans & leases include loans held for sale & are net of unearned income. | |
| (1) | BB&T had approximately 20,700 full-time equivalent employees at September 30, 2001. | |
| (2) | Consists only of interest rate caps, swaps, floors & collars. |
| 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, except per share data) | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | |||||||||
| INCOME STATEMENTS EXCLUDING | ||||||||||||||
| NONRECURRING ITEMS | ||||||||||||||
| Interest income - taxable equivalent | ||||||||||||||
| Interest & fees on loans & leases | $ | 978,540 | $ | 998,845 | $ | 1,028,814 | $ | 1,042,159 | $ | 1,007,129 | ||||
| Interest & dividends on securities | 279,121 | 278,358 | 285,254 | 281,596 | 274,661 | |||||||||
| Interest on short-term investments | 3,522 | 4,988 | 6,437 | 7,425 | 7,348 | |||||||||
| Total interest income - taxable equivalent | 1,261,183 | 1,282,191 | 1,320,505 | 1,331,180 | 1,289,138 | |||||||||
| Interest expense | ||||||||||||||
| Interest on deposits | 382,222 | 422,901 | 448,632 | 458,320 | 445,852 | |||||||||
| Interest on short-term borrowed funds | 55,507 | 58,322 | 88,829 | 111,242 | 95,463 | |||||||||
| Interest on long-term debt | 154,110 | 152,362 | 148,684 | 133,029 | 132,549 | |||||||||
| Total interest expense | 591,839 | 633,585 | 686,145 | 702,591 | 673,864 | |||||||||
| Net interest income - taxable equivalent | 669,344 | 648,606 | 634,360 | 628,589 | 615,274 | |||||||||
| Less: Taxable equivalent adjustment | 45,572 | 53,404 | 48,951 | 53,971 | 29,177 | |||||||||
| Net interest income | 623,772 | 595,202 | 585,409 | 574,618 | 586,097 | |||||||||
| Provision for loan & lease losses | 45,500 | 44,298 | 33,170 | 37,513 | 26,514 | |||||||||
| Net interest income after provision for | ||||||||||||||
| loan & lease losses | 578,272 | 550,904 | 552,239 | 537,105 | 559,583 | |||||||||
| Noninterest income | ||||||||||||||
| Service charges on deposits | 88,383 | 88,054 | 79,518 | 77,933 | 75,978 | |||||||||
| Mortgage banking income | 51,840 | 51,102 | 41,007 | 26,940 | 24,620 | |||||||||
| Investment banking & brokerage fees & commissions | 43,569 | 42,585 | 43,350 | 39,013 | 36,877 | |||||||||
| Trust revenue | 22,931 | 23,929 | 25,076 | 18,831 | 21,246 | |||||||||
| Agency insurance commissions | 44,179 | 45,049 | 41,953 | 39,528 | 38,757 | |||||||||
| Other insurance commissions | 3,089 | 3,549 | 2,840 | 3,938 | 3,987 | |||||||||
| Other nondeposit fees & commissions | 48,353 | 48,156 | 45,070 | 47,487 | 42,697 | |||||||||
| Securities gains (losses), net | 3,786 | 3,576 | 3,632 | 5,247 | 586 | |||||||||
| Other income | 30,166 | 27,536 | 23,530 | 21,264 | 26,435 | |||||||||
| Total noninterest income | 336,296 | 333,536 | 305,976 | 280,181 | 271,183 | |||||||||
| Noninterest expense | ||||||||||||||
| Personnel expense | 282,180 | 282,487 | 274,324 | 255,022 | 252,428 | |||||||||
| Occupancy & equipment expense | 79,700 | 75,442 | 75,510 | 70,355 | 71,722 | |||||||||
| Foreclosed property expense | (192 | ) | 500 | 382 | 2,151 | 893 | ||||||||
| Amortization of intangibles | 18,529 | 18,404 | 17,906 | 16,570 | 15,942 | |||||||||
| Other noninterest expense | 134,816 | 132,902 | 116,570 | 115,985 | 122,564 | |||||||||
| Total noninterest expense | 515,033 | 509,735 | 484,692 | 460,083 | 463,549 | |||||||||
| Income before income taxes | 399,535 | 374,705 | 373,523 | 357,203 | 367,217 | |||||||||
| Provision for income taxes | 116,020 | 107,278 | 112,078 | 107,644 | 119,043 | |||||||||
| Net income | $ | 283,515 | $ | 267,427 | $ | 261,445 | $ | 249,559 | $ | 248,174 | ||||
| PER SHARE DATA EXCLUDING | ||||||||||||||
| NONRECURRING ITEMS | ||||||||||||||
| Basic earnings | $ | .62 | $ | .59 | $ | .58 | $ | .56 | $ | .55 | ||||
| Diluted earnings | .62 | .58 | .57 | .55 | .54 | |||||||||
| Dividends paid on common shares | .26 | .23 | .23 | .23 | .23 | |||||||||
| Book value per common share | $ | 13.18 | $ | 12.84 | $ | 12.41 | $ | 11.96 | $ | 11.03 | ||||
| RATIOS EXCLUDING | ||||||||||||||
| NONRECURRING ITEMS | ||||||||||||||
| Return on average assets | 1.62 | % | 1.58 | % | 1.58 | % | 1.55 | % | 1.58 | % | ||||
| Return on average equity | 19.05 | 18.95 | 19.32 | 19.54 | 19.62 | |||||||||
| Return on average realized equity (3) | 20.00 | 19.75 | 19.91 | 19.17 | 18.80 | |||||||||
| Net yield on earning assets (taxable equivalent) | 4.19 | 4.16 | 4.14 | 4.23 | 4.22 | |||||||||
| Efficiency (taxable equivalent) (1) | 51.4 | 52.0 | 51.7 | 50.7 | 52.2 | |||||||||
| Noninterest income as a percentage of | ||||||||||||||
| total income (taxable equivalent) (1) | 33.2 | 33.7 | 32.3 | 30.4 | 30.5 | |||||||||
| Equity as a percentage of total assets | ||||||||||||||
| end of period | 8.5 | 8.5 | 8.3 | 8.1 | 7.8 | |||||||||
| Average earning assets as a percentage of | ||||||||||||||
| average total assets | 91.4 | 91.7 | 91.9 | 92.9 | 93.0 | |||||||||
| Average loans & leases as a percentage of | ||||||||||||||
| average deposits | 105.8 | 104.1 | 105.1 | 103.0 | 101.0 | |||||||||
| CASH BASIS PERFORMANCE (2) | ||||||||||||||
| Cash basis earnings excluding nonrecurring items | $ | 300,643 | $ | 285,243 | $ | 278,753 | $ | 265,709 | $ | 263,543 | ||||
| Diluted cash basis earnings per share | .65 | .62 | .61 | .58 | .58 | |||||||||
| Return on average tangible assets | 1.73 | % | 1.72 | % | 1.71 | % | 1.67 | % | 1.70 | % | ||||
| Return on average tangible equity | 23.57 | 24.00 | 24.22 | 24.38 | 24.36 | |||||||||
| Return on average realized tangible equity (3) | 24.94 | 24.92 | 25.09 | 23.85 | 23.18 | |||||||||
| Efficiency ratio (taxable equivalent) (1) | 49.6 | 50.2 | 49.8 | 48.9 | 50.4 | |||||||||
| 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) | Excludes unrealized gains (losses) resulting from changes in market values of securities available for sale. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
| Page 9 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | |||||||||
| SELECTED BALANCE SHEET DATA | ||||||||||||||
| End of period balances | ||||||||||||||
| Securities available for sale | $ | 16,679,755 | $ | 15,370,474 | $ | 15,244,516 | $ | 15,231,123 | $ | 14,527,160 | ||||
| Securities held to maturity | 38,379 | 308,846 | 438,199 | 622,102 | 638,760 | |||||||||
| Trading securities | 116,523 | 120,381 | 187,218 | 96,719 | 132,543 | |||||||||
| Total securities | 16,834,657 | 15,799,701 | 15,869,933 | 15,949,944 | 15,298,463 | |||||||||
| Commercial loans & leases | 25,532,901 | 25,102,074 | 24,587,877 | 23,986,611 | 22,499,933 | |||||||||
| Consumer loans | 11,278,277 | 11,228,486 | 11,124,471 | 11,181,338 | 10,992,847 | |||||||||
| Revolving credit loans | 908,868 | 892,969 | 860,396 | 863,089 | 813,094 | |||||||||
| Mortgage loans | 9,429,390 | 9,803,743 | 9,588,919 | 8,796,037 | 8,598,210 | |||||||||
| Total loans & leases | 47,149,436 | 47,027,272 | 46,161,663 | 44,827,075 | 42,904,084 | |||||||||
| Allowance for loan & lease losses | 634,552 | 610,171 | 601,788 | 578,107 | 559,455 | |||||||||
| Other earning assets | 370,912 | 506,263 | 532,472 | 391,343 | 457,997 | |||||||||
| Total earning assets | 63,685,851 | 62,923,591 | 62,153,135 | 60,986,973 | 58,890,723 | |||||||||
| Total assets | 70,309,046 | 68,811,370 | 67,859,827 | 66,552,823 | 63,808,683 | |||||||||
| Noninterest-bearing deposits | 6,356,051 | 6,419,145 | 6,096,581 | 6,178,233 | 5,938,470 | |||||||||
| Savings & interest checking | 3,094,104 | 3,263,459 | 3,295,178 | 3,397,973 | 3,560,987 | |||||||||
| Money rate savings | 13,156,255 | 12,768,711 | 12,481,532 | 11,853,614 | 10,891,016 | |||||||||
| CD's and other time deposits | 22,607,819 | 22,499,458 | 22,056,193 | 22,447,499 | 21,427,330 | |||||||||
| Total deposits | 45,214,229 | 44,950,773 | 43,929,484 | 43,877,319 | 41,817,803 | |||||||||
| Short-term borrowed funds | 5,923,442 | 5,704,614 | 6,001,435 | 7,309,978 | 7,022,471 | |||||||||
| Long-term debt | 11,408,329 | 10,864,249 | 10,912,235 | 8,646,018 | 8,675,769 | |||||||||
| Total interest-bearing liabilities | 56,189,949 | 55,100,491 | 54,746,573 | 53,655,082 | 51,577,573 | |||||||||
| Total shareholders' equity | 5,969,828 | 5,855,699 | 5,624,614 | 5,419,809 | 4,959,479 | |||||||||
| Goodwill | 792,689 | 804,916 | 797,494 | 770,617 | 699,147 | |||||||||
| Core deposit & other intangibles | 42,950 | 41,721 | 43,030 | 40,217 | 41,622 | |||||||||
| Total intangibles | 835,639 | 846,637 | 840,524 | 810,834 | 740,769 | |||||||||
| Mortgage servicing rights | 340,746 | 295,527 | 237,978 | 239,251 | 219,059 | |||||||||
| Negative goodwill | $ | 10,465 | $ | 11,143 | $ | 12,704 | $ | 14,264 | $ | 15,825 | ||||
| Average balances | ||||||||||||||
| Securities, at amortized cost | $ | 16,015,659 | $ | 15,542,138 | $ | 15,742,675 | $ | 15,482,384 | $ | 15,341,496 | ||||
| Commercial loans & leases | 25,367,850 | 24,924,004 | 24,498,848 | 23,060,161 | 22,455,779 | |||||||||
| Consumer loans | 11,246,411 | 11,101,875 | 11,032,093 | 10,888,102 | 10,734,534 | |||||||||
| Revolving credit loans | 896,751 | 871,722 | 852,910 | 801,732 | 762,275 | |||||||||
| Mortgage loans | 9,677,370 | 9,517,819 | 8,919,162 | 8,722,717 | 8,475,620 | |||||||||
| Total loans & leases | 47,188,382 | 46,415,420 | 45,303,013 | 43,472,712 | 42,428,208 | |||||||||
| Other earning assets | 451,010 | 451,487 | 479,490 | 394,260 | 413,661 | |||||||||
| Total earning assets | 63,655,051 | 62,409,045 | 61,525,178 | 59,349,356 | 58,183,365 | |||||||||
| Total assets | 69,607,180 | 68,086,413 | 66,973,065 | 63,917,592 | 62,558,010 | |||||||||
| Noninterest-bearing deposits | 6,319,729 | 6,117,192 | 5,817,401 | 5,855,202 | 5,963,751 | |||||||||
| Savings & interest checking | 3,334,252 | 3,424,045 | 3,510,401 | 3,550,529 | 3,746,810 | |||||||||
| Money rate savings | 12,725,908 | 12,420,119 | 11,804,638 | 11,171,283 | 10,485,816 | |||||||||
| CD's and other time deposits | 22,238,104 | 22,629,282 | 21,955,426 | 21,648,786 | 21,805,459 | |||||||||
| Total deposits | 44,617,993 | 44,590,638 | 43,087,866 | 42,225,800 | 42,001,836 | |||||||||
| Short-term borrowed funds | 6,418,925 | 5,595,541 | 6,667,405 | 7,050,743 | 6,105,917 | |||||||||
| Long-term debt | 11,128,696 | 10,877,563 | 10,363,829 | 8,595,844 | 8,546,973 | |||||||||
| Total interest-bearing liabilities | 55,845,885 | 54,946,550 | 54,301,699 | 52,017,185 | 50,690,975 | |||||||||
| Total shareholders' equity | $ | 5,903,303 | $ | 5,659,565 | $ | 5,487,154 | $ | 5,081,679 | $ | 5,031,614 | ||||
| RISK-BASED CAPITAL * | ||||||||||||||
| Risk-based capital: | ||||||||||||||
| Tier 1 | $ | 4,829,647 | $ | 4,828,028 | $ | 4,628,313 | $ | 4,591,023 | $ | 4,422,933 | ||||
| Total | 6,612,821 | 5,950,114 | 5,860,999 | 5,800,668 | 5,614,655 | |||||||||
| Risk-weighted assets | 50,087,321 | 49,587,717 | 48,396,432 | 47,391,701 | 45,318,306 | |||||||||
| Average quarterly tangible assets | 68,406,155 | 67,464,682 | 65,781,373 | 63,125,936 | 61,858,568 | |||||||||
| Risk-based capital ratios: | ||||||||||||||
| Tier 1 | 9.6 | % | 9.7 | % | 9.6 | % | 9.7 | % | 9.8 | % | ||||
| Total | 13.2 | 12.0 | 12.1 | 12.2 | 12.4 | |||||||||
| Leverage capital ratio | 7.1 | 7.2 | 7.0 | 7.3 | 7.1 | |||||||||
| NOTES: | All items referring to loans & leases include loans held for sale & are net of unearned income. | |
| * | Current quarter information is estimated. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
| Page 10 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | |||||||||
| ASSET QUALITY ANALYSIS | ||||||||||||||
| Allowance For Loan & Lease Losses | ||||||||||||||
| Beginning balance | $ | 610,171 | $ | 601,788 | $ | 578,107 | $ | 559,455 | $ | 542,305 | ||||
| Allowance for acquired loans | -- | 9,470 | 10,566 | 12,934 | -- | |||||||||
| Provision for loan & lease losses | 68,500 | 48,798 | 42,020 | 47,958 | 40,714 | |||||||||
| Charge-offs | (54,885 | ) | (59,750 | ) | (40,512 | ) | (53,736 | ) | (31,483 | ) | ||||
| Recoveries | 10,766 | 9,865 | 11,607 | 11,496 | 7,919 | |||||||||
| Net charge-offs | (44,119 | ) | (49,885 | ) | (28,905 | ) | (42,240 | ) | (23,564 | ) | ||||
| Ending balance | $ | 634,552 | $ | 610,171 | $ | 601,788 | $ | 578,107 | $ | 559,455 | ||||
| Nonperforming Assets | ||||||||||||||
| Nonaccrual loans & leases | $ | 266,384 | $ | 244,711 | $ | 203,710 | $ | 180,638 | $ | 150,046 | ||||
| Foreclosed real estate | 34,601 | 27,725 | 41,132 | 37,966 | 32,403 | |||||||||
| Other foreclosed property | 17,733 | 20,494 | 22,946 | 17,233 | 16,347 | |||||||||
| Restructured loans | 183 | 521 | 2,574 | 492 | 445 | |||||||||
| Nonperforming assets | $ | 318,901 | $ | 293,451 | $ | 270,362 | $ | 236,329 | $ | 199,241 | ||||
| Loans 90 days or more past due | ||||||||||||||
| & still accruing | $ | 93,968 | $ | 84,399 | $ | 83,001 | $ | 81,629 | $ | 84,220 | ||||
| Loans 90 days or more past due & still accruing | ||||||||||||||
| as a percentage of total loans and leases | .20 | % | .18 | % | .18 | % | .18 | % | .20 | % | ||||
| Asset Quality Ratios | ||||||||||||||
| Nonaccrual and restructured loans & leases | ||||||||||||||
| as a percentage of total loans & leases | .57 | % | .52 | % | .45 | % | .40 | % | .35 | % | ||||
| Nonperforming assets as a percentage of: | ||||||||||||||
| Total assets | .45 | .43 | .40 | .36 | .31 | |||||||||
| Loans & leases plus | ||||||||||||||
| foreclosed property | .68 | .62 | .58 | .53 | .46 | |||||||||
| Net charge-offs as a percentage of | ||||||||||||||
| average loans & leases | .37 | .43 | .26 | .39 | .22 | |||||||||
| Net charge-offs excluding specialized | ||||||||||||||
| lending as a percentage of average | ||||||||||||||
| loans & leases (1) | .30 | .37 | .20 | .33 | .19 | |||||||||
| Allowance for loan & lease losses as | ||||||||||||||
| a percentage of loans & leases | 1.35 | 1.30 | 1.30 | 1.29 | 1.30 | |||||||||
| Ratio of allowance for loan & lease losses to: | ||||||||||||||
| Net charge-offs | 3.63 | x | 3.05 | x | 5.13 | x | 3.44 | x | 5.97 | x | ||||
| Nonaccrual and restructured loans & leases | 2.38 | 2.49 | 2.92 | 3.19 | 3.72 | |||||||||
| As of / for the Nine Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9/30/01 | 9/30/00 | $ | % | |||||||||||
| Allowance For Loan & Lease Losses | ||||||||||||||
| Beginning balance | $ | 578,107 | $ | 529,236 | $ | 48,871 | 9.2 | % | ||||||
| Allowance for acquired loans | 20,036 | 1,377 | 18,659 | NM | ||||||||||
| Provision for loan & lease losses | 159,318 | 99,229 | 60,089 | 60.6 | ||||||||||
| Charge-offs | (155,147 | ) | (96,779 | ) | (58,368 | ) | (60.3 | ) | ||||||
| Recoveries | 32,238 | 26,392 | 5,846 | 22.2 | ||||||||||
| Net charge-offs | (122,909 | ) | (70,387 | ) | (52,522 | ) | (74.6 | ) | ||||||
| Ending balance | $ | 634,552 | $ | 559,455 | $ | 75,097 | 13.4 | |||||||
| Asset Quality Ratios | ||||||||||||||
| Net charge-offs as a percentage of | ||||||||||||||
| average loans & leases | .35 | % | .23 | % | ||||||||||
| Ratio of allowance for loan & lease losses to | ||||||||||||||
| net charge-offs | 3.86 | x | 5.95 | x | ||||||||||
| For the Quarter Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | 9/30/00 | ||||||||||
| ANNUALIZED INTEREST YIELDS / RATES (2) | ||||||||||||||
| Interest income: | ||||||||||||||
| Securities & other | 6.86 | % | 7.09 | % | 7.20 | % | 7.28 | % | 7.16 | % | ||||
| Loans & leases | 8.24 | 8.63 | 9.19 | 9.55 | 9.45 | |||||||||
| Total earning assets | 7.88 | 8.23 | 8.66 | 8.94 | 8.83 | |||||||||
| Interest expense: | ||||||||||||||
| Interest-bearing deposits | 3.96 | 4.41 | 4.88 | 5.01 | 4.92 | |||||||||
| Short-term borrowed funds | 3.43 | 4.18 | 5.40 | 6.28 | 6.22 | |||||||||
| Long-term debt | 5.50 | 5.62 | 5.80 | 6.17 | 6.18 | |||||||||
| Total interest-bearing liabilities | 4.21 | 4.62 | 5.12 | 5.38 | 5.29 | |||||||||
| Net yield on earning assets | 4.19 | % | 4.16 | % | 4.14 | % | 4.23 | % | 4.22 | % | ||||
| NOTES: | All items referring to loans & leases include loans held for sale & are net of unearned income. | |
| (1) | Excludes net charge-offs and average loans from BB&T's consumer finance subsidiaries. | |
| (2) | Excludes nonrecurring items. Fully taxable equivalent yields. Securities yields calculated based on amortized cost. | |
| NM - | not meaningful. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Senior Vice President | (336) 733-3058 | |||
| Page 11 | Investor Relations | FAX (336) 733-3132 | |||
| For the Nine Months Ended | Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 9/30/00 | $ | % | |||||
| SELECTED BALANCES EXCLUDING PURCHASE ACQUISITIONS (1) | |||||||||
| Average Balances | |||||||||
| Commercial loans & leases | $ | 24,990,679 | $ | 22,477,564 | $ | 2,513,115 | 11.2 | % | |
| Consumer loans | 11,165,905 | 10,758,340 | 407,565 | 3.8 | |||||
| Revolving credit loans | 874,422 | 741,413 | 133,009 | 17.9 | |||||
| Mortgage loans (2) | 10,821,467 | 9,251,109 | 1,570,358 | 17.0 | |||||
| Total loans & leases | 47,852,473 | 43,228,426 | 4,624,047 | 10.7 | |||||
| Noninterest-bearing deposits (3) | 6,313,102 | 6,131,605 | 181,497 | 3.0 | |||||
| Interest-bearing transaction accounts | 15,814,066 | 14,644,711 | 1,169,355 | 8.0 | |||||
| CD's and other time deposits | 22,521,124 | 21,840,542 | 680,582 | 3.1 | |||||
| Total deposits | $44,648,292 | $42,616,858 | $2,031,434 | 4.8 | % | ||||
| For the Nine Months Ended | Increase (Decrease) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 9/30/01 | 9/30/00 | $ | % | |||||
| SELECTED RECURRING INCOME STATEMENT ITEMS | |||||||||
| EXCLUDING PURCHASE ACQUISITIONS (1) | |||||||||
| Net interest income - taxable equivalent | $ | 1,911,420 | $ | 1,819,775 | $ | 91,645 | 5.0 | % | |
| Noninterest income | |||||||||
| Service charges on deposits | $ | 251,093 | $ | 214,559 | $ | 36,534 | 17.0 | ||
| Mortgage banking income | 128,780 | 77,639 | 51,141 | 65.9 | |||||
| Investment banking & brokerage fees & commissions | 125,442 | 124,467 | 975 | 0.8 | |||||
| Trust revenue | 71,352 | 61,208 | 10,144 | 16.6 | |||||
| Agency insurance commissions | 110,121 | 107,156 | 2,965 | 2.8 | |||||
| Other insurance commissions | 9,375 | 11,432 | (2,057 | ) | (18.0 | ) | |||
| Other nondeposit fees & commissions | 140,924 | 119,051 | 21,873 | 18.4 | |||||
| Securities gains (losses), net | 10,992 | 545 | 10,447 | NM | |||||
| Other income | 80,619 | 74,616 | 6,003 | 8.0 | |||||
| Total noninterest income | 928,698 | 790,673 | 138,025 | 17.5 | |||||
| Noninterest expense | |||||||||
| Personnel expense | 803,639 | 760,753 | 42,886 | 5.6 | |||||
| Occupancy & equipment expense | 223,441 | 212,038 | 11,403 | 5.4 | |||||
| Other noninterest expense | 413,028 | 425,095 | (12,067 | ) | (2.8 | ) | |||
| Total noninterest expense | $ | 1,440,108 | $ | 1,397,886 | $ | 42,222 | 3.0 | % | |
| NOTES: | (1) | Amounts adjusted to exclude growth that resulted from the timing of acquisitions purchased during 2001 and 2000. |
| (2) | Excludes the impact of mortgage loan securitization programs in both 2001 and 2000. | |
| (3) | Excludes the impact of the outsourcing of official checks in both 2001 and 2000. | |
| NM - | not meaningful. |
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 11 , 2001
