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
January 11, 2002
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 fourth quarter of 2001.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued January 11, 2002
July 12, 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 |
BB&T reports 20th consecutive year of record earnings; 4th quarter earnings up 15.3%
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today results for 2001, the company's 20th consecutive year of record recurring earnings.
Net income for the fourth quarter of 2001 totaled $287.7 million, or $.63 per diluted share, excluding $9.8 million in net after-tax nonrecurring items associated primarily with recently completed mergers. Net income, excluding nonrecurring items, increased 15.3% in the fourth quarter of 2001 compared to the prior year while recurring diluted earnings per share increased 14.5% over the same time frame.
BB&T's fourth quarter 2001 results, excluding nonrecurring items, produced an annualized return on average assets of 1.62% compared to 1.55% in the fourth quarter of 2000. The annualized return on average shareholders' equity generated by fourth quarter earnings, excluding nonrecurring items, was 18.56% in 2001 compared to 19.54% in 2000.
Cash basis operating results, which exclude the effects of intangible assets and the related amortization expenses, also reflected double-digit growth in the fourth quarter of 2001 compared to 2000. Cash basis earnings, excluding nonrecurring items, totaled $304.5 million for the fourth quarter of 2001, or $.66 per diluted share, increases of 14.6% and 13.8%, respectively, compared to results for 2000. Cash basis earnings for the current quarter produced an annualized return on average tangible assets of 1.73%, and an annualized return on average tangible shareholders' equity of 22.87%.
"I am pleased to announce record recurring earnings for both the fourth quarter and the full year ended Dec. 31, 2001," said Chairman and Chief Executive Officer John A. Allison. "We accomplished our earnings goals and other key strategic objectives during a very difficult economic environment. It is especially gratifying to achieve an important milestone - 20 consecutive years of record recurring earnings. BB&T has truly been a company characterized by strong financial performance, growth and reliability over many years.
"BB&T has also proved to be a rewarding investment over the long term," said Allison. "Our compound annual total return to shareholders over the past 10 years has been 21.4%, compared to the S&P 500 Index, which returned 12.9% annually over the same period. In addition, we are very proud of BB&T's dividend history. BB&T has paid a cash dividend to shareholders every year since 1920, and the Corporation has increased its quarterly cash dividend payments for 30 consecutive years, an outstanding track record."
Net income for the year ended Dec. 31, 2001, was $1.1 billion, or $2.40 per diluted share, excluding net after-tax nonrecurring items totaling $126.5 million. These earnings reflect increases of 14.9% and 14.3%, respectively, compared to 2000. Recurring earnings for 2001 resulted in a return on average assets of 1.60% and a return on average shareholders' equity of 18.96%, compared to prior year returns of 1.55% and 19.50%, respectively.
Including nonrecurring items, net income for the fourth quarter of 2001 totaled $277.9 million compared to $231.7 million earned in the fourth quarter of 2000, an increase of 19.9%. On a diluted per share basis, net income for the quarter was $.61, up 19.6% compared to $.51 earned in 2000. For the full year ended Dec. 31, 2001, net income was $973.6 million, an increase of 39.4% compared to $698.5 million earned during 2000. On a diluted per share basis, net income was $2.12 for 2001 compared to $1.53 earned in 2000, an increase of 38.6%.
Growth in Noninterest Income Remains Strong
BB&T again enjoyed solid growth in noninterest income during the fourth quarter of 2001. Excluding nonrecurring items, noninterest income totaled $355.6 million for the fourth quarter, reflecting an increase of 26.9% compared to the fourth quarter of 2000. This increase was driven by mortgage banking income, service charges on deposits, investment banking and brokerage fees and commissions, and agency insurance commissions.
BB&T remains a leader in its market area in the origination of mortgage loans, with 2001 production in excess of $10 billion, more than double the level of originations during 2000. This growth in mortgage activity fueled a 44.3% increase in mortgage banking income in the fourth quarter of 2001 compared to the same period in 2000. BB&T recorded a $32.5 million writedown in capitalized mortgage servicing rights during the fourth quarter, which was offset by a like amount of securities gains. The writedown was necessary because of rapidly falling interest rates in the quarter.
Income from service charges on deposit accounts continued to grow because of an increase in deposit accounts and related transaction volume. Service charges on deposits totaled $93.8 million for the fourth quarter, an increase of 20.4% compared to the fourth quarter of 2000. Investment banking and brokerage fees and commissions totaled $45.1 million for the quarter, an increase of 15.6% compared to the fourth quarter last year. Agency insurance commissions totaled $45.7 million for the fourth quarter, an increase of 15.7% compared to the fourth quarter of 2000.
Excluding the effect of acquisitions accounted for as purchases, noninterest income totaled $346.9 million in the fourth quarter, reflecting an increase of 23.8% compared to the same period in 2000.
Loan Growth Led by Commercial Loans and Leases - up 11.3%
Average loans and leases totaled $47.4 billion for the fourth quarter, reflecting an increase of 9.1% compared to the same period last year. This growth was led by commercial loans and leases, which increased $2.6 billion, or 11.3%. In addition, BB&T's consumer loan portfolio increased $344.3 million, or 3.2%; mortgage loans increased $875.0 million, or 10.1%; and revolving credit increased $115.0 million, or 14.3%. Excluding the effects of loans acquired through purchase acquisitions and the effects of loan securitization programs, average loans and leases totaled $48.7 billion for the fourth quarter, an increase of $2.9 billion, or 6.3%, compared to the fourth quarter of 2000.
Nonperforming Assets and Credit Losses Increase in Response to Economic Conditions
As anticipated, BB&T's nonperforming asset levels and credit losses increased in the fourth quarter. Nonperforming assets as a percentage of total assets increased to .53% compared to .36% at Dec. 31, 2000, while net charge-offs amounted to .54% of average loans and leases for the fourth quarter of 2001 compared to .39% in the fourth quarter last year. Excluding losses at BB&T's specialized lending subsidiaries, net charge-offs for the fourth quarter were .46%. For the full year ended Dec. 31, 2001, BB&T's net charge-offs were .40% of average loans and leases.
BB&T has traditionally enjoyed comparatively low levels of net charge-offs and nonperforming assets during periods of both economic growth and recession. According to the FDIC's Quarterly Banking Profile, the third quarter 2001 average net charge-off ratio for institutions with assets greater than $10 billion was 1.10%, approximately twice BB&T's fourth quarter level of net charge-offs. Based on this recently published industry data, BB&T remains an industry leader in terms of credit quality.
BB&T Improves Efficiency During 2001
Careful control of noninterest expenses is among BB&T's primary ongoing objectives. Recurring noninterest expense for the fourth quarter of 2001 was $520.0 million, an increase of 13.0% compared to the fourth quarter of 2000. However, excluding the effects of acquisitions accounted for as purchases, noninterest expense totaled $500.7 million for the fourth quarter, an increase of 8.8% compared to the fourth quarter last year. For the twelve months ended Dec. 31, 2001, BB&T's recurring noninterest expense, excluding purchase accounting transactions, increased 4.5% compared to 2000. BB&T's efficiency ratio for the fourth quarter of 2001 improved to 50.3% compared to 50.7% for the same period in 2000. On a cash basis, the efficiency ratio was 48.6% for the fourth quarter, compared to a prior year ratio of 48.9%.
Net Interest Income Increases 7.4%
BB&T's fully taxable equivalent net interest income totaled $675.1 million for the fourth quarter, an increase of $46.6 million, or 7.4%, compared to the fourth quarter of 2000. The net interest margin was 4.20% for the fourth quarter, down slightly from 4.23% in the comparable period last year, but improved compared to the first three quarters of this year. BB&T's net interest margin has remained relatively stable during 2001 despite frequent aggressive actions by the Federal Reserve to lower short-term interest rates.
BB&T Announces Plans to Acquire Strategic Merger Partners
On Nov. 8, 2001, BB&T announced plans to acquire AREA Bancshares Corporation of Owensboro, Ky., and Mid-America Bancorp of Louisville, Ky. With $2.95 billion in assets and 72 banking offices, AREA is the largest independent bank holding company in Kentucky. Mid-America has $1.8 billion in assets and operates 30 banking offices in the metropolitan Louisville area through the Bank of Louisville. Together, the mergers will increase BB&T's assets in Kentucky to more than $5 billion and move BB&T from 29th to 4th place in terms of deposit market share in the state.
On Dec. 12, 2001, BB&T completed its acquisition of Carrollton, Ga.-based Community First Banking Company, giving BB&T the seventh largest deposit market share in Atlanta. Also, on Nov. 8, 2001, BB&T acquired The Southeastern Trust Company of Greenville, S.C., which expands BB&T's ability to serve affluent individuals and institutional investors in South Carolina.
On Jan. 1, BB&T completed a merger with Birmingham, Ala.-based Cooney Rikard & Curtin Inc., the largest independently owned wholesale insurance broker in the nation. The transaction is expected to substantially increase BB&T's insurance revenues and diversify BB&T's insurance operations, which already rank as the 10th largest retail insurance broker in the country.
BB&T Insurance Services also announced acquisitions of two insurance agencies during the quarter. On Nov. 1, 2001, plans were announced to acquire U.S. Insurance Services Inc. of Greenville, S.C., and on Nov. 29, 2001, BB&T said it would acquire O'Neal & Hinson Insurance Services of Macon, Ga.
At Dec. 31, 2001, BB&T had $70.9 billion in assets and operated 1,081 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 Jan. 10 was $35.39 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 5 p.m. (EST) Jan. 25.
#
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 5 | Investor Relations | FAX (336) 733-3132 | |||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| INCOME STATEMENT EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Interest income - taxable equivalent | $ | 1,178,631 | $ | 1,331,114 | $ | (152,483 | ) | (11.5 | )% | |||||
| Interest expense | 503,484 | 702,591 | (199,107 | ) | (28.3 | ) | ||||||||
| Net interest income - taxable equivalent | 675,147 | 628,523 | 46,624 | 7.4 | ||||||||||
| Less: Taxable equivalent adjustment | 42,938 | 53,971 | (11,033 | ) | (20.4 | ) | ||||||||
| Net interest income | 632,209 | 574,552 | 57,657 | 10.0 | ||||||||||
| Provision for loan & lease losses | 65,000 | 37,513 | 27,487 | 73.3 | ||||||||||
| Net interest income after provision for loan & lease losses | 567,209 | 537,039 | 30,170 | 5.6 | ||||||||||
| Noninterest income (3) | 355,625 | 280,234 | 75,391 | 26.9 | ||||||||||
| Noninterest expense (4) | 520,039 | 460,070 | 59,969 | 13.0 | ||||||||||
| Income before income taxes | 402,795 | 357,203 | 45,592 | 12.8 | ||||||||||
| Provision for income taxes | 115,049 | 107,644 | 7,405 | 6.9 | ||||||||||
| Income excluding nonrecurring items | 287,746 | 249,559 | 38,187 | 15.3 | ||||||||||
| Nonrecurring items, net of tax | 9,803 | 17,837 | (8,034 | ) | NM | |||||||||
| Net income | $ | 277,943 | $ | 231,722 | $ | 46,221 | 19.9 | % | ||||||
| PER SHARE DATA EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Basic earnings | $ | .63 | $ | .56 | $ | .07 | 12.5 | % | ||||||
| Diluted earnings | .63 | .55 | .08 | 14.5 | ||||||||||
| Weighted average shares - Basic | 454,031,392 | 448,630,759 | ||||||||||||
| Diluted | 459,369,269 | 454,825,664 | ||||||||||||
| Dividends paid on common shares | $ | .26 | $ | .23 | $ | .03 | 13.0 | % | ||||||
| PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Return on average assets | 1.62 | % | 1.55 | % | ||||||||||
| Return on average equity | 18.56 | 19.54 | ||||||||||||
| Return on average realized equity (5) | 19.89 | 19.17 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.20 | 4.23 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 50.3 | 50.7 | ||||||||||||
| CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2) | ||||||||||||||
| Earnings excluding nonrecurring items | $ | 304,526 | $ | 265,709 | $ | 38,817 | 14.6 | % | ||||||
| Diluted earnings per share | .66 | .58 | .08 | 13.8 | ||||||||||
| Return on average tangible assets | 1.73 | % | 1.67 | % | ||||||||||
| Return on average tangible equity | 22.87 | 24.38 | ||||||||||||
| Return on average realized tangible equity (5) | 24.48 | 23.85 | ||||||||||||
| Efficiency ratio (taxable equivalent) (1) | 48.6 | 48.9 | ||||||||||||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| INCOME STATEMENT | ||||||||||||||
| Interest income - taxable equivalent | $ | 1,178,631 | $ | 1,331,114 | $ | (152,483 | ) | (11.5 | )% | |||||
| Interest expense | 503,484 | 702,591 | (199,107 | ) | (28.3 | ) | ||||||||
| Net interest income - taxable equivalent | 675,147 | 628,523 | 46,624 | 7.4 | ||||||||||
| Less: Taxable equivalent adjustment | 42,938 | 53,971 | (11,033 | ) | (20.4 | ) | ||||||||
| Net interest income | 632,209 | 574,552 | 57,657 | 10.0 | ||||||||||
| Provision for loan & lease losses | 65,000 | 47,958 | 17,042 | 35.5 | ||||||||||
| Net interest income after provision for loan & lease losses | 567,209 | 526,594 | 40,615 | 7.7 | ||||||||||
| Noninterest income | 364,295 | 277,531 | 86,764 | 31.3 | ||||||||||
| Noninterest expense | 543,779 | 474,210 | 69,569 | 14.7 | ||||||||||
| Income before income taxes | 387,725 | 329,915 | 57,810 | 17.5 | ||||||||||
| Provision for income taxes | 109,782 | 98,193 | 11,589 | 11.8 | ||||||||||
| Net income | $ | 277,943 | $ | 231,722 | $ | 46,221 | 19.9 % | |||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | .61 | $ | .52 | $ | .09 | 17.3 % | |||||||
| Diluted earnings | .61 | .51 | .10 | 19.6 | ||||||||||
| Weighted average shares - Basic | 454,031,392 | 448,630,759 | ||||||||||||
| Diluted | 459,369,269 | 454,825,664 | ||||||||||||
| Dividends paid on common shares | $ | .26 | $ | .23 | $ | .03 | 13.0 % | |||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets | 1.56 | % | 1.44 | % | ||||||||||
| Return on average equity | 17.93 | 18.14 | ||||||||||||
| Return on average realized equity (5) | 19.21 | 17.80 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.20 | 4.23 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 50.3 | 50.7 | ||||||||||||
| NOTES: | Applicable ratios are annualized. | ||
| (1) | Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights 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 $66.6 million, or 23.8%, for the quarter compared to the same period in 2000 | ||
| (4) | Excluding purchase accounting transactions, noninterest expense would have increased $40.6 million, or 8.8%, for the quarter compared to the same period in 2000 | ||
| (5) | Excludes the effect on average shareholders' equity of unrealized gains (losses) on 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 Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| INCOME STATEMENT EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Interest income - taxable equivalent | $ | 5,042,452 | $ | 5,012,075 | $ | 30,377 | .6 % | |||||||
| Interest expense | 2,415,053 | 2,563,912 | (148,859 | ) | (5.8 | ) | ||||||||
| Net interest income - taxable equivalent | 2,627,399 | 2,448,163 | 179,236 | 7.3 | ||||||||||
| Less: Taxable equivalent adjustment | 190,865 | 133,666 | 57,199 | 42.8 | ||||||||||
| Net interest income | 2,436,534 | 2,314,497 | 122,037 | 5.3 | ||||||||||
| Provision for loan & lease losses | 187,968 | 117,292 | 70,676 | 60.3 | ||||||||||
| Net interest income after provision for loan & lease losses | 2,248,566 | 2,197,205 | 51,361 | 2.3 | ||||||||||
| Noninterest income | 1,331,434 | 1,070,992 | 260,442 | 24.3 | ||||||||||
| Noninterest expense | 2,029,442 | 1,857,906 | 171,536 | 9.2 | ||||||||||
| Income before income taxes | 1,550,558 | 1,410,291 | 140,267 | 9.9 | ||||||||||
| Provision for income taxes | 450,425 | 452,427 | (2,002 | ) | (.4 | ) | ||||||||
| Income excluding nonrecurring items | 1,100,133 | 957,864 | 142,269 | 14.9 | ||||||||||
| Nonrecurring items, net of tax | 126,495 | 259,376 | (132,881 | ) | NM | |||||||||
| Net income | $ | 973,638 | $ | 698,488 | $ | 275,150 | 39.4 % | |||||||
| PER SHARE DATA EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Basic earnings | $ | 2.43 | $ | 2.12 | $ | .31 | 14.6 | % | ||||||
| Diluted earnings | 2.40 | 2.10 | .30 | 14.3 | ||||||||||
| Weighted average shares - Basic | 453,188,403 | 450,789,079 | ||||||||||||
| Diluted | 459,269,330 | 456,213,609 | ||||||||||||
| Dividends paid on common shares | $ | .98 | $ | .86 | $ | .12 | 14.0 | % | ||||||
| PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS | ||||||||||||||
| Return on average assets | 1.60 | % | 1.55 | % | ||||||||||
| Return on average equity | 18.96 | 19.50 | ||||||||||||
| Return on average realized equity (3) | 19.89 | 18.49 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.18 | 4.25 | ||||||||||||
| Noninterest income as a percentage of | ||||||||||||||
| total income (taxable equivalent) (1) | 32.9 | 30.3 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.4 | 52.7 | ||||||||||||
| CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2) | ||||||||||||||
| Earnings excluding nonrecurring items | $ | 1,169,165 | $ | 1,020,665 | $ | 148,500 | 14.5 | % | ||||||
| Diluted earnings per share | 2.55 | 2.24 | .31 | 13.8 | ||||||||||
| Return on average tangible assets | 1.72 | % | 1.67 | % | ||||||||||
| Return on average tangible equity | 23.58 | 24.39 | ||||||||||||
| Return on average realized tangible equity (3) | 24.94 | 22.91 | ||||||||||||
| Efficiency ratio (taxable equivalent) (1) | 49.5 | 50.9 | ||||||||||||
| For the Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| INCOME STATEMENT | ||||||||||||||
| Interest income - taxable equivalent | $ | 5,040,403 | $ | 5,012,075 | $ | 28,328 | .6 % | |||||||
| Interest expense | 2,415,053 | 2,563,912 | (148,859 | ) | (5.8 | ) | ||||||||
| Net interest income - taxable equivalent | 2,625,350 | 2,448,163 | 177,187 | 7.2 | ||||||||||
| Less: Taxable equivalent adjustment | 190,865 | 133,666 | 57,199 | 42.8 | ||||||||||
| Net interest income | 2,434,485 | 2,314,497 | 119,988 | 5.2 | ||||||||||
| Provision for loan & lease losses | 224,318 | 147,187 | 77,131 | 52.4 | ||||||||||
| Net interest income after provision for loan & lease losses | 2,210,167 | 2,167,310 | 42,857 | 2.0 | ||||||||||
| Noninterest income | 1,378,691 | 846,787 | 531,904 | 62.8 | ||||||||||
| Noninterest expense | 2,228,430 | 2,001,091 | 227,339 | 11.4 | ||||||||||
| Income before income taxes | 1,360,428 | 1,013,006 | 347,422 | 34.3 | ||||||||||
| Provision for income taxes | 386,790 | 314,518 | 72,272 | 23.0 | ||||||||||
| Net income | $ | 973,638 | $ | 698,488 | $ | 275,150 | 39.4 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | 2.15 | $ | 1.55 | $ | .60 | 38.7 | % | ||||||
| Diluted earnings | 2.12 | 1.53 | .59 | 38.6 | ||||||||||
| Weighted average shares - Basic | 453,188,403 | 450,789,079 | ||||||||||||
| Diluted | 459,269,330 | 456,213,609 | ||||||||||||
| Dividends paid on common shares | $ | .98 | $ | .86 | $ | .12 | 14.0 % | |||||||
| PERFORMANCE RATIOS | ||||||||||||||
| Return on average assets | 1.41 | % | 1.13 | % | ||||||||||
| Return on average equity | 16.78 | 14.22 | ||||||||||||
| Return on average realized equity (3) | 17.60 | 13.48 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.17 | 4.25 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 51.4 | 52.7 | ||||||||||||
| NOTES: | Applicable ratios are annualized. | ||
| (1) | Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights 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 effect on average shareholders' equity of unrealized gains (losses) on 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 Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| SELECTED BALANCE SHEET DATA | ||||||||||||||
| End of period balances | ||||||||||||||
| Securities available for sale | $ | 16,621,684 | $ | 15,231,123 | $ | 1,390,561 | 9.1 | % | ||||||
| Securities held to maturity | 40,496 | 622,102 | (581,606 | ) | (93.5 | ) | ||||||||
| Trading securities | 97,675 | 96,719 | 956 | 1.0 | ||||||||||
| Total securities | 16,759,855 | 15,949,944 | 809,911 | 5.1 | ||||||||||
| Commercial loans & leases | 25,959,142 | 23,986,611 | 1,972,531 | 8.2 | ||||||||||
| Consumer loans | 11,214,193 | 11,181,338 | 32,855 | .3 | ||||||||||
| Revolving credit loans | 951,319 | 863,089 | 88,230 | 10.2 | ||||||||||
| Mortgage loans | 9,318,519 | 8,796,037 | 522,482 | 5.9 | ||||||||||
| Total loans & leases | 47,443,173 | 44,827,075 | 2,616,098 | 5.8 | ||||||||||
| Allowance for loan & lease losses | 644,418 | 578,107 | 66,311 | 11.5 | ||||||||||
| Other earning assets | 360,789 | 391,343 | (30,554 | ) | (7.8 | ) | ||||||||
| Total earning assets | 64,087,088 | 60,986,973 | 3,100,115 | 5.1 | ||||||||||
| Total assets | 70,869,945 | 66,552,823 | 4,317,122 | 6.5 | ||||||||||
| Noninterest-bearing deposits | 6,939,640 | 6,178,233 | 761,407 | 12.3 | ||||||||||
| Savings & interest checking | 3,013,702 | 3,397,973 | (384,271 | ) | (11.3 | ) | ||||||||
| Money rate savings | 13,902,088 | 11,853,614 | 2,048,474 | 17.3 | ||||||||||
| CD's and other time deposits | 20,877,845 | 22,447,499 | (1,569,654 | ) | (7.0 | ) | ||||||||
| Total deposits | 44,733,275 | 43,877,319 | 855,956 | 2.0 | ||||||||||
| Short-term borrowed funds | 6,649,100 | 7,309,978 | (660,878 | ) | (9.0 | ) | ||||||||
| Long-term debt | 11,721,076 | 8,646,018 | 3,075,058 | 35.6 | ||||||||||
| Total interest-bearing liabilities | 56,163,811 | 53,655,082 | 2,508,729 | 4.7 | ||||||||||
| Total shareholders' equity | $ | 6,150,209 | $ | 5,419,809 | $ | 730,400 | 13.5 | |||||||
| Average balances | ||||||||||||||
| Securities, at amortized cost | $ | 15,886,736 | $ | 15,241,243 | $ | 645,493 | 4.2 | % | ||||||
| Commercial loans & leases | 25,144,433 | 22,215,255 | 2,929,178 | 13.2 | ||||||||||
| Consumer loans | 11,145,546 | 10,587,091 | 558,455 | 5.3 | ||||||||||
| Revolving credit loans | 884,836 | 752,166 | 132,670 | 17.6 | ||||||||||
| Mortgage loans | 9,415,151 | 8,379,129 | 1,036,022 | 12.4 | ||||||||||
| Total loans & leases | 46,589,966 | 41,933,641 | 4,656,325 | 11.1 | ||||||||||
| Other earning assets | 443,615 | 440,804 | 2,811 | .6 | ||||||||||
| Total earning assets | 62,920,317 | 57,615,688 | 5,304,629 | 9.2 | ||||||||||
| Total assets | 68,841,638 | 61,813,415 | 7,028,223 | 11.4 | ||||||||||
| Noninterest-bearing deposits | 6,206,120 | 5,897,181 | 308,939 | 5.2 | ||||||||||
| Savings & interest checking | 3,361,286 | 3,888,958 | (527,672 | ) | (13.6 | ) | ||||||||
| Money rate savings | 12,564,986 | 10,494,588 | 2,070,398 | 19.7 | ||||||||||
| CD's and other time deposits | 22,171,613 | 21,135,213 | 1,036,400 | 4.9 | ||||||||||
| Total deposits | 44,304,005 | 41,415,940 | 2,888,065 | 7.0 | ||||||||||
| Short-term borrowed funds | 6,239,137 | 6,910,849 | (671,712 | ) | (9.7 | ) | ||||||||
| Long-term debt | 11,011,408 | 7,705,449 | 3,305,959 | 42.9 | ||||||||||
| Total interest-bearing liabilities | 55,348,430 | 50,135,057 | 5,213,373 | 10.4 | ||||||||||
| Total shareholders' equity | $ | 5,802,189 | $ | 4,911,435 | $ | 890,754 | 18.1 | |||||||
| As of / For the Quarter Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/01 | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | |||||||||||||||
| MISCELLANEOUS INFORMATION (1) | ||||||||||||||||||||
| Unrealized appreciation (depreciation) on | ||||||||||||||||||||
| securities available for sale, net of tax | $ | 288,107 | $ | 407,966 | $ | 250,548 | $ | 248,575 | $ | 104,297 | ||||||||||
| Derivatives (notional value) | 5,614,502 | 3,752,445 | 3,361,296 | 2,821,040 | 2,254,558 | |||||||||||||||
| Fair value of derivatives portfolio | 43,973 | (2,407 | ) | 8,667 | (12,954 | ) | (12,193 | ) | ||||||||||||
| Common stock prices (daily close): High | 36.96 | 38.48 | 37.01 | 37.88 | 38.25 | |||||||||||||||
| Low | 32.10 | 33.57 | 34.25 | 31.42 | 27.38 | |||||||||||||||
| End of period | 36.11 | 36.45 | 36.70 | 35.17 | 37.31 | |||||||||||||||
| Weighted average shares - Basic | 454,031,392 | 454,346,907 | 451,712,342 | 452,634,896 | 448,630,759 | |||||||||||||||
| Diluted | 459,369,269 | 460,387,879 | 457,879,467 | 459,429,071 | 454,825,664 | |||||||||||||||
| End of period shares outstanding | 455,682,560 | 452,984,331 | 456,031,476 | 453,380,066 | 453,307,379 | |||||||||||||||
| End of period banking offices | 1,081 | 1,085 | 1,095 | 1,096 | 1,091 | |||||||||||||||
| NOTES: | All items referring to loans & leases include loans held for sale & are net of unearned income. | ||
| (1) | BB&T had approximately 20,400 full-time equivalent employees at December 31, 2001. | ||
| 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) | 12/31/01 | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | ||||||||||||
| INCOME STATEMENTS EXCLUDING | |||||||||||||||||
| NONRECURRING ITEMS | |||||||||||||||||
| Interest income - taxable equivalent | |||||||||||||||||
| Interest & fees on loans & leases | $ | 897,700 | $ | 978,540 | $ | 998,845 | $ | 1,028,814 | $ | 1,042,159 | |||||||
| Interest & dividends on securities | 278,716 | 279,121 | 278,358 | 285,254 | 281,596 | ||||||||||||
| Interest on short-term investments | 2,215 | 3,489 | 4,963 | 6,437 | 7,359 | ||||||||||||
| Total interest income - taxable equivalent | 1,178,631 | 1,261,150 | 1,282,166 | 1,320,505 | 1,331,114 | ||||||||||||
| Interest expense | |||||||||||||||||
| Interest on deposits | 315,904 | 381,984 | 422,538 | 448,411 | 458,239 | ||||||||||||
| Interest on short-term borrowed funds | 35,111 | 55,366 | 57,624 | 87,823 | 109,707 | ||||||||||||
| Interest on long-term debt | 152,469 | 154,489 | 153,423 | 149,911 | 134,645 | ||||||||||||
| Total interest expense | 503,484 | 591,839 | 633,585 | 686,145 | 702,591 | ||||||||||||
| Net interest income - taxable equivalent | 675,147 | 669,311 | 648,581 | 634,360 | 628,523 | ||||||||||||
| Less: Taxable equivalent adjustment | 42,938 | 45,572 | 53,404 | 48,951 | 53,971 | ||||||||||||
| Net interest income | 632,209 | 623,739 | 595,177 | 585,409 | 574,552 | ||||||||||||
| Provision for loan & lease losses | 65,000 | 45,500 | 44,298 | 33,170 | 37,513 | ||||||||||||
| Net interest income after provision for | |||||||||||||||||
| loan & lease losses | 567,209 | 578,239 | 550,879 | 552,239 | 537,039 | ||||||||||||
| Noninterest income | |||||||||||||||||
| Service charges on deposits | 93,803 | 88,383 | 88,054 | 79,518 | 77,933 | ||||||||||||
| Mortgage banking income | 38,886 | 51,840 | 51,102 | 41,007 | 26,940 | ||||||||||||
| Investment banking & brokerage fees & commissions | 45,085 | 43,569 | 42,585 | 43,350 | 39,013 | ||||||||||||
| Trust revenue | 18,962 | 22,931 | 23,929 | 25,076 | 18,831 | ||||||||||||
| Agency insurance commissions | 45,724 | 44,179 | 45,049 | 41,953 | 39,528 | ||||||||||||
| Other insurance commissions | 4,122 | 3,089 | 3,549 | 2,840 | 3,938 | ||||||||||||
| Other nondeposit fees & commissions | 46,719 | 48,341 | 48,144 | 45,037 | 47,474 | ||||||||||||
| Securities gains (losses), net | 32,344 | 3,786 | 3,576 | 3,632 | 5,247 | ||||||||||||
| Other income | 29,980 | 30,199 | 27,561 | 23,530 | 21,330 | ||||||||||||
| Total noninterest income | 355,625 | 336,317 | 333,549 | 305,943 | 280,234 | ||||||||||||
| Noninterest expense | |||||||||||||||||
| Personnel expense | 288,227 | 282,180 | 282,487 | 274,324 | 255,022 | ||||||||||||
| Occupancy & equipment expense | 74,364 | 79,724 | 75,453 | 75,525 | 70,367 | ||||||||||||
| Foreclosed property expense | 1,158 | (192 | ) | 500 | 382 | 2,151 | |||||||||||
| Amortization of intangibles | 17,852 | 18,529 | 18,404 | 17,906 | 16,570 | ||||||||||||
| Other noninterest expense | 138,438 | 134,780 | 132,879 | 116,522 | 115,960 | ||||||||||||
| Total noninterest expense | 520,039 | 515,021 | 509,723 | 484,659 | 460,070 | ||||||||||||
| Income before income taxes | 402,795 | 399,535 | 374,705 | 373,523 | 357,203 | ||||||||||||
| Provision for income taxes | 115,049 | 116,020 | 107,278 | 112,078 | 107,644 | ||||||||||||
| Income excluding nonrecurring items | $ | 287,746 | $ | 283,515 | $ | 267,427 | $ | 261,445 | $ | 249,559 | |||||||
| PER SHARE DATA EXCLUDING | |||||||||||||||||
| NONRECURRING ITEMS | |||||||||||||||||
| Basic earnings | $ | .63 | $ | .62 | $ | .59 | $ | .58 | $ | .56 | |||||||
| Diluted earnings | .63 | .62 | .58 | .57 | .55 | ||||||||||||
| Dividends paid on common shares | .26 | .26 | .23 | .23 | .23 | ||||||||||||
| Book value per common share | $ | 13.50 | $ | 13.18 | $ | 12.84 | $ | 12.41 | $ | 11.96 | |||||||
| RATIOS EXCLUDING | |||||||||||||||||
| NONRECURRING ITEMS | |||||||||||||||||
| Return on average assets | 1.62 | % | 1.62 | % | 1.58 | % | 1.58 | % | 1.55 | % | |||||||
| Return on average equity | 18.56 | 19.05 | 18.95 | 19.32 | 19.54 | ||||||||||||
| Return on average realized equity (3) | 19.89 | 20.00 | 19.75 | 19.91 | 19.17 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 4.20 | 4.19 | 4.16 | 4.14 | 4.23 | ||||||||||||
| Efficiency (taxable equivalent) (1) | 50.3 | 51.4 | 52.0 | 51.7 | 50.7 | ||||||||||||
| Noninterest income as a percentage of | |||||||||||||||||
| total income (taxable equivalent) (1) | 32.4 | 33.2 | 33.7 | 32.3 | 30.4 | ||||||||||||
| Equity as a percentage of total assets | |||||||||||||||||
| end of period | 8.7 | 8.5 | 8.5 | 8.3 | 8.1 | ||||||||||||
| Average earning assets as a percentage of | |||||||||||||||||
| average total assets | 90.7 | 91.4 | 91.7 | 91.9 | 92.9 | ||||||||||||
| Average loans & leases as a percentage of | |||||||||||||||||
| average deposits | 105.5 | 105.8 | 104.2 | 105.2 | 103.0 | ||||||||||||
| CASH BASIS PERFORMANCE (2) | |||||||||||||||||
| Earnings excluding nonrecurring items | $ | 304,526 | $ | 300,643 | $ | 285,243 | $ | 278,753 | $ | 265,709 | |||||||
| Diluted earnings per share | .66 | .65 | .62 | .61 | .58 | ||||||||||||
| Return on average tangible assets | 1.73 | % | 1.73 | % | 1.72 | % | 1.71 | % | 1.67 | % | |||||||
| Return on average tangible equity | 22.87 | 23.57 | 24.00 | 24.22 | 24.38 | ||||||||||||
| Return on average realized tangible equity (3) | 24.48 | 24.94 | 24.92 | 25.09 | 23.85 | ||||||||||||
| Efficiency ratio (taxable equivalent) (1) | 48.6 | 49.6 | 50.2 | 49.8 | 48.9 | ||||||||||||
| NOTES: | Applicable ratios are annualized. | ||
| (1) | Excludes securities gains (losses), foreclosed property expense, provisions for the impairment of mortgage servicing rights 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 effect on average shareholders' equity of unrealized gains (losses) on 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) | 12/31/01 | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | ||||||||||||
| SELECTED BALANCE SHEET DATA | |||||||||||||||||
| End of period balances | |||||||||||||||||
| Securities available for sale | $ | 16,621,684 | $ | 16,679,755 | $ | 15,370,474 | $ | 15,244,516 | $ | 15,231,123 | |||||||
| Securities held to maturity | 40,496 | 38,379 | 308,846 | 438,199 | 622,102 | ||||||||||||
| Trading securities | 97,675 | 116,523 | 120,381 | 187,218 | 96,719 | ||||||||||||
| Total securities | 16,759,855 | 16,834,657 | 15,799,701 | 15,869,933 | 15,949,944 | ||||||||||||
| Commercial loans & leases | 25,959,142 | 25,532,901 | 25,102,074 | 24,587,877 | 23,986,611 | ||||||||||||
| Consumer loans | 11,214,193 | 11,278,277 | 11,228,486 | 11,124,471 | 11,181,338 | ||||||||||||
| Revolving credit loans | 951,319 | 908,868 | 892,969 | 860,396 | 863,089 | ||||||||||||
| Mortgage loans | 9,318,519 | 9,429,390 | 9,803,743 | 9,588,919 | 8,796,037 | ||||||||||||
| Total loans & leases | 47,443,173 | 47,149,436 | 47,027,272 | 46,161,663 | 44,827,075 | ||||||||||||
| Allowance for loan & lease losses | 644,418 | 634,552 | 610,171 | 601,788 | 578,107 | ||||||||||||
| Other earning assets | 360,789 | 370,912 | 506,263 | 532,472 | 391,343 | ||||||||||||
| Total earning assets | 64,087,088 | 63,685,851 | 62,923,591 | 62,153,135 | 60,986,973 | ||||||||||||
| Total assets | 70,869,945 | 70,309,046 | 68,811,370 | 67,859,827 | 66,552,823 | ||||||||||||
| Noninterest-bearing deposits | 6,939,640 | 6,356,051 | 6,419,145 | 6,096,581 | 6,178,233 | ||||||||||||
| Savings & interest checking | 3,013,702 | 3,094,104 | 3,263,459 | 3,295,178 | 3,397,973 | ||||||||||||
| Money rate savings | 13,902,088 | 13,156,255 | 12,768,711 | 12,481,532 | 11,853,614 | ||||||||||||
| CD's and other time deposits | 20,877,845 | 22,607,819 | 22,499,458 | 22,056,193 | 22,447,499 | ||||||||||||
| Total deposits | 44,733,275 | 45,214,229 | 44,950,773 | 43,929,484 | 43,877,319 | ||||||||||||
| Short-term borrowed funds | 6,649,100 | 5,923,442 | 5,704,614 | 6,001,435 | 7,309,978 | ||||||||||||
| Long-term debt | 11,721,076 | 11,408,329 | 10,864,249 | 10,912,235 | 8,646,018 | ||||||||||||
| Total interest-bearing liabilities | 56,163,811 | 56,189,949 | 55,100,491 | 54,746,573 | 53,655,082 | ||||||||||||
| Total shareholders' equity | 6,150,209 | 5,969,828 | 5,855,699 | 5,624,614 | 5,419,809 | ||||||||||||
| Goodwill | 879,903 | 792,689 | 804,916 | 797,494 | 770,617 | ||||||||||||
| Core deposit & other intangibles | 54,456 | 42,950 | 41,721 | 43,030 | 40,217 | ||||||||||||
| Total intangibles | 934,359 | 835,639 | 846,637 | 840,524 | 810,834 | ||||||||||||
| Mortgage servicing rights | 359,037 | 340,746 | 295,527 | 237,978 | 239,251 | ||||||||||||
| Negative goodwill | $ | 9,780 | $ | 10,465 | $ | 11,143 | $ | 12,704 | $ | 14,264 | |||||||
| Average balances | |||||||||||||||||
| Securities, at amortized cost | $ | 16,239,595 | $ | 16,015,659 | $ | 15,542,138 | $ | 15,742,675 | $ | 15,482,384 | |||||||
| Commercial loans & leases | 25,717,454 | 25,369,466 | 24,943,475 | 24,531,835 | 23,101,303 | ||||||||||||
| Consumer loans | 11,212,143 | 11,250,337 | 11,097,123 | 11,019,311 | 10,867,849 | ||||||||||||
| Revolving credit loans | 916,816 | 896,847 | 871,841 | 853,007 | 801,810 | ||||||||||||
| Mortgage loans | 9,576,761 | 9,671,732 | 9,502,981 | 8,898,860 | 8,701,750 | ||||||||||||
| Total loans & leases | 47,423,174 | 47,188,382 | 46,415,420 | 45,303,013 | 43,472,712 | ||||||||||||
| Other earning assets | 393,338 | 451,010 | 451,487 | 479,490 | 394,260 | ||||||||||||
| Total earning assets | 64,056,107 | 63,655,051 | 62,409,045 | 61,525,178 | 59,349,356 | ||||||||||||
| Total assets | 70,651,064 | 69,607,180 | 68,086,413 | 66,973,065 | 63,917,592 | ||||||||||||
| Noninterest-bearing deposits | 6,560,741 | 6,319,729 | 6,117,192 | 5,817,401 | 5,855,202 | ||||||||||||
| Savings & interest checking | 3,240,977 | 3,313,820 | 3,398,441 | 3,495,223 | 3,545,839 | ||||||||||||
| Money rate savings | 13,291,175 | 12,725,908 | 12,420,119 | 11,804,638 | 11,171,283 | ||||||||||||
| CD's and other time deposits | 21,863,915 | 22,238,104 | 22,629,282 | 21,955,426 | 21,648,786 | ||||||||||||
| Total deposits | 44,956,808 | 44,597,561 | 44,565,034 | 43,072,688 | 42,221,110 | ||||||||||||
| Short-term borrowed funds | 6,401,138 | 6,412,413 | 5,543,707 | 6,599,566 | 6,954,172 | ||||||||||||
| Long-term debt | 11,475,259 | 11,155,640 | 10,955,001 | 10,446,846 | 8,697,105 | ||||||||||||
| Total interest-bearing liabilities | 56,272,464 | 55,845,885 | 54,946,550 | 54,301,699 | 52,017,185 | ||||||||||||
| Total shareholders' equity | $ | 6,150,335 | $ | 5,903,303 | $ | 5,659,565 | $ | 5,487,154 | $ | 5,081,679 | |||||||
| RISK-BASED CAPITAL * | |||||||||||||||||
| Risk-based capital: | |||||||||||||||||
| Tier 1 | $ | 5,002,896 | $ | 4,829,647 | $ | 4,828,028 | $ | 4,628,313 | $ | 4,591,023 | |||||||
| Total | 6,804,203 | 6,613,329 | 5,950,114 | 5,860,999 | 5,800,668 | ||||||||||||
| Risk-weighted assets | 51,644,441 | 50,130,294 | 49,587,717 | 48,396,432 | 47,391,701 | ||||||||||||
| Average quarterly tangible assets | 69,264,013 | 68,411,234 | 67,464,682 | 65,781,373 | 63,125,936 | ||||||||||||
| Risk-based capital ratios: | |||||||||||||||||
| Tier 1 | 9.7 | % | 9.6 | % | 9.7 | % | 9.6 | % | 9.7 | % | |||||||
| Total | 13.2 | 13.2 | 12.0 | 12.1 | 12.2 | ||||||||||||
| Leverage capital ratio | 7.2 | 7.1 | 7.2 | 7.0 | 7.3 | ||||||||||||
| 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) | 12/31/01 | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | ||||||||||||
| ASSET QUALITY ANALYSIS | |||||||||||||||||
| Allowance For Loan & Lease Losses | |||||||||||||||||
| Beginning balance | $ | 634,552 | $ | 610,171 | $ | 601,788 | $ | 578,107 | $ | 559,455 | |||||||
| Allowance for acquired loans | 9,047 | -- | 9,470 | 10,566 | 12,934 | ||||||||||||
| Provision for loan & lease losses | 65,000 | 68,500 | 48,798 | 42,020 | 47,958 | ||||||||||||
| Charge-offs | (76,082 | ) | (54,885 | ) | (59,750 | ) | (40,512 | ) | (53,736 | ) | |||||||
| Recoveries | 11,901 | 10,766 | 9,865 | 11,607 | 11,496 | ||||||||||||
| Net charge-offs | (64,181 | ) | (44,119 | ) | (49,885 | ) | (28,905 | ) | (42,240 | ) | |||||||
| Ending balance | $ | 644,418 | $ | 634,552 | $ | 610,171 | $ | 601,788 | $ | 578,107 | |||||||
| Nonperforming Assets | |||||||||||||||||
| Nonaccrual loans & leases | $ | 316,607 | $ | 266,384 | $ | 244,711 | $ | 203,710 | $ | 180,638 | |||||||
| Foreclosed real estate | 39,106 | 34,601 | 27,725 | 41,132 | 37,966 | ||||||||||||
| Other foreclosed property | 17,858 | 17,733 | 20,494 | 22,946 | 17,233 | ||||||||||||
| Restructured loans | -- | 183 | 521 | 2,574 | 492 | ||||||||||||
| Nonperforming assets | $ | 373,571 | $ | 318,901 | $ | 293,451 | $ | 270,362 | $ | 236,329 | |||||||
| Loans 90 days or more past due | |||||||||||||||||
| & still accruing | $ | 101,778 | $ | 93,968 | $ | 84,399 | $ | 83,001 | $ | 81,629 | |||||||
| Loans 90 days or more past due & still accruing | |||||||||||||||||
| as a percentage of total loans and leases | .21 | % | .20 | % | .18 | % | .18 | % | .18 | % | |||||||
| Asset Quality Ratios | |||||||||||||||||
| Nonaccrual and restructured loans & leases | |||||||||||||||||
| as a percentage of total loans & leases | .67 | % | .57 | % | .52 | % | .45 | % | .40 | % | |||||||
| Nonperforming assets as a percentage of: | |||||||||||||||||
| Total assets | .53 | .45 | .43 | .40 | .36 | ||||||||||||
| Loans & leases plus | |||||||||||||||||
| foreclosed property | .79 | .68 | .62 | .58 | .53 | ||||||||||||
| Net charge-offs as a percentage of | |||||||||||||||||
| average loans & leases | .54 | .37 | .43 | .26 | .39 | ||||||||||||
| Net charge-offs excluding specialized | |||||||||||||||||
| lending as a percentage of average | |||||||||||||||||
| loans & leases (1) | .46 | .30 | .37 | .20 | .33 | ||||||||||||
| Allowance for loan & lease losses as | |||||||||||||||||
| a percentage of loans & leases | 1.36 | 1.35 | 1.30 | 1.30 | 1.29 | ||||||||||||
| Ratio of allowance for loan & lease losses to: | |||||||||||||||||
| Net charge-offs | 2.53 | x | 3.63 | x | 3.05 | x | 5.13 | x | 3.44 | x | |||||||
| Nonaccrual and restructured loans & leases | 2.04 | 2.38 | 2.49 | 2.92 | 3.19 | ||||||||||||
| As of / for the Twelve Months Ended | Increase (Decrease) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/01 | 12/31/00 | $ | % | ||||||||||||||
| Allowance For Loan & Lease Losses | |||||||||||||||||
| Beginning balance | $ | 578,107 | $ | 529,236 | $ | 48,871 | 9.2 | % | |||||||||
| Allowance for acquired loans | 29,083 | 14,311 | 14,772 | NM | |||||||||||||
| Provision for loan & lease losses | 224,318 | 147,187 | 77,131 | 52.4 | |||||||||||||
| Charge-offs | (231,229 | ) | (150,515 | ) | (80,714 | ) | (53.6 | ) | |||||||||
| Recoveries | 44,139 | 37,888 | 6,251 | 16.5 | |||||||||||||
| Net charge-offs | (187,090 | ) | (112,627 | ) | (74,463 | ) | (66.1 | ) | |||||||||
| Ending balance | $ | 644,418 | $ | 578,107 | $ | 66,311 | 11.5 | ||||||||||
| Asset Quality Ratios | |||||||||||||||||
| Net charge-offs as a percentage of | |||||||||||||||||
| average loans & leases | .40 | % | .27 | % | |||||||||||||
| Ratio of allowance for loan & lease losses to | |||||||||||||||||
| net charge-offs | 3.44 | x | 5.13 | x | |||||||||||||
| For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/01 | 9/30/01 | 6/30/01 | 3/31/01 | 12/31/00 | |||||||||||||
| ANNUALIZED INTEREST YIELDS / RATES (2) | |||||||||||||||||
| Interest income: | |||||||||||||||||
| Securities & other | 6.76 | % | 6.86 | % | 7.09 | % | 7.20 | % | 7.28 | % | |||||||
| Loans & leases | 7.52 | 8.24 | 8.63 | 9.19 | 9.55 | ||||||||||||
| Total earning assets | 7.32 | 7.88 | 8.23 | 8.66 | 8.94 | ||||||||||||
| Interest expense: | |||||||||||||||||
| Interest-bearing deposits | 3.26 | 3.96 | 4.41 | 4.88 | 5.01 | ||||||||||||
| Short-term borrowed funds | 2.18 | 3.43 | 4.17 | 5.40 | 6.28 | ||||||||||||
| Long-term debt | 5.28 | 5.50 | 5.61 | 5.80 | 6.17 | ||||||||||||
| Total interest-bearing liabilities | 3.55 | 4.21 | 4.62 | 5.12 | 5.38 | ||||||||||||
| Net yield on earning assets | 4.20 | % | 4.19 | % | 4.16 | % | 4.14 | % | 4.23 | % | |||||||
| 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 Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| SELECTED BALANCES EXCLUDING PURCHASE ACQUISITIONS (1) | ||||||||||||||
| Average Balances | ||||||||||||||
| Commercial loans & leases | $ | 25,168,040 | $ | 22,825,746 | $ | 2,342,294 | 10.3 | |||||||
| Consumer loans | 11,169,639 | 10,830,025 | 339,614 | 3.1 | ||||||||||
| Revolving credit loans | 885,009 | 758,110 | 126,899 | 16.7 | ||||||||||
| Mortgage loans (2) | 10,847,538 | 9,463,535 | 1,384,003 | 14.6 | ||||||||||
| Total loans & leases | 48,070,226 | 43,877,416 | 4,192,810 | 9.6 | ||||||||||
| Noninterest-bearing deposits (3) | 6,457,277 | 6,140,664 | 316,613 | 5.2 | ||||||||||
| Interest-bearing transaction accounts | 15,969,307 | 14,753,658 | 1,215,649 | 8.2 | ||||||||||
| CD's and other time deposits | 22,331,695 | 22,013,641 | 318,054 | 1.4 | ||||||||||
| Total deposits | $ | 44,758,279 | $ | 42,907,963 | $ | 1,850,316 | 4.3 | % | ||||||
| For the Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/01 | 12/31/00 | $ | % | ||||||||||
| SELECTED RECURRING INCOME STATEMENT ITEMS | ||||||||||||||
| EXCLUDING PURCHASE ACQUISITIONS (1) | ||||||||||||||
| Net interest income - taxable equivalent | $ | 2,568,759 | $ | 2,448,163 | $ | 120,596 | 4.9 | % | ||||||
| Noninterest income | ||||||||||||||
| Service charges on deposits | $ | 342,863 | $ | 292,492 | $ | 50,371 | 17.2 | |||||||
| Mortgage banking income (4) | 166,254 | 104,579 | 61,675 | 59.0 | ||||||||||
| Investment banking & brokerage fees & commissions | 169,641 | 163,480 | 6,161 | 3.8 | ||||||||||
| Trust revenue | 89,895 | 80,039 | 9,856 | 12.3 | ||||||||||
| Agency insurance commissions | 152,380 | 146,684 | 5,696 | 3.9 | ||||||||||
| Other insurance commissions | 13,439 | 15,370 | (1,931 | ) | (12.6 | ) | ||||||||
| Other nondeposit fees & commissions | 187,301 | 166,472 | 20,829 | 12.5 | ||||||||||
| Securities gains (losses), net (4) | 43,336 | 5,792 | 37,544 | NM | ||||||||||
| Other income | 110,449 | 96,084 | 14,365 | 15.0 | ||||||||||
| Total noninterest income | 1,275,558 | 1,070,992 | 204,566 | 19.1 | ||||||||||
| Noninterest expense | ||||||||||||||
| Personnel expense | 1,082,105 | 1,015,775 | 66,330 | 6.5 | ||||||||||
| Occupancy & equipment expense | 295,755 | 282,507 | 13,248 | 4.7 | ||||||||||
| Other noninterest expense | 562,875 | 559,624 | 3,251 | 0.6 | ||||||||||
| Total noninterest expense | $ | 1,940,735 | $ | 1,857,906 | $ | 82,829 | 4.5 | % | ||||||
| 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. | ||
| (4) | Mortgage banking income includes a $32.5 million provision for the impairment of mortgage servicing rights in the fourth quarter of 2001. Securities gains (losses), net also includes a $32.5 million gain to offset this provision. | ||
| 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: January 11, 2002
