Exhibit 99.1
January 19, 2006
FOR IMMEDIATE RELEASE
| Contacts: | ||
| ANALYSTS | MEDIA | |
| Tom A. Nicholson | Christopher L. Henson | Bob Denham |
| Executive Vice President | Senior Executive Vice President | Senior Vice President |
| Investor Relations | Chief Financial Officer | Public Relations |
| (336) 733-3058 | (336) 733-3008 | (910) 914-9073 |
BB&T reports record 2005 net income of $1.65 billion; Operating earnings per share total $3.04, an increase of 8.2%
WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today earnings for the fourth quarter and the full year 2005. For the fourth quarter, net income totaled $429.6 million, or $.78 per diluted share, compared with $416.9 million, or $.75 per diluted share, earned during the fourth quarter of 2004. These results reflect increases of 3.0% and 4.0%, respectively, compared to the fourth quarter last year.
For the full year 2005, BB&T’s net income was $1.65 billion, an increase of 6.1% compared to $1.56 billion earned in 2004. Diluted earnings per share for 2005 totaled $3.00, an increase of 7.1% compared to $2.80 in 2004. Excluding $19.8 million in net after-tax merger-related and nonrecurring charges from 2005 and $3.5 million in net after-tax merger-related charges from 2004, operating earnings for 2005 totaled $1.67 billion, an increase of 7.2% compared to operating earnings of $1.56 billion in 2004. Diluted operating earnings per share totaled $3.04 in 2005, an increase of 8.2% compared to $2.81 earned in 2004.
Cash basis operating results exclude the unamortized balances of intangibles from assets and shareholders’ equity and exclude the amortization of intangibles, the net amortization of purchase accounting mark-to-market adjustments, merger-related items and nonrecurring items from earnings. Cash basis operating earnings totaled $448.9 million for the fourth quarter of 2005, an increase of 2.4% compared to the fourth quarter of 2004. Cash basis operating diluted earnings per share were $.82 for the fourth quarter of 2005, an increase of 3.8% compared to $.79 earned during the same period in 2004. Cash basis operating earnings for the fourth quarter of 2005 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.73% and 27.88%, respectively, compared to prior year returns of 1.86% and 27.77%, respectively.
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“Although bottom-line results for the fourth quarter of 2005 were less than we had hoped, I am pleased that we produced solid earnings for the full year and accomplished many of our strategic objectives,” said Chairman and Chief Executive Officer John A. Allison. “Our results for 2005 mark the 24th consecutive year that BB&T has achieved record operating earnings. In addition, we also saw year over year improvement in many of the key areas that contribute to our profitability. We experienced healthy revenue growth in our noninterest income generating businesses, improved our already excellent asset quality, and enjoyed one of our strongest years in terms of combined loan and deposit growth. Our fourth quarter results were negatively affected by a difficult interest rate environment, which compressed our margins, and unusually high growth in noninterest expenses, which largely resulted from the hiring of revenue producers, revenue-based incentives, and a significant new commitment to advertising.”
BB&T Enjoys Strong Loan Growth – Up 10.2%
Average loans and leases totaled $74.3 billion for the fourth quarter of 2005, reflecting an increase of $6.9 billion, or 10.2% compared to the fourth quarter of 2004. This growth was led by average mortgage loans, which increased 18.4%, average commercial loans and leases, which increased 9.2% and average consumer loans, which increased 7.1% compared to the fourth quarter last year.
Asset Quality Remains Excellent – Nonperforming Assets Improve
BB&T’s asset quality remained excellent during the fourth quarter of 2005. Nonperforming assets, as a percentage of total assets, decreased to .27% at Dec. 31, 2005 compared to .28% at Sept. 30, 2005 and .36% at Dec. 31, 2004. Annualized net charge-offs were .37% of average loans and leases for the fourth quarter of 2005, a slight decrease from .38% in the fourth quarter of 2004, but up from .30% in the third quarter of 2005 due largely to seasonal factors. Net charge-offs for the full year 2005 were .30% of average loans and leases, a decrease of 6 basis points from .36% for 2004. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .25% of average loans and leases compared to .27% in the same quarter last year.
BB&T’s Fee Based Businesses Produce Solid Quarterly and Annual Growth Rates
BB&T’s noninterest income generating businesses produced solid growth rates during the fourth quarter and full year of 2005 compared to 2004. Total noninterest income was $619.0 million for the current quarter, an increase of 12.9% compared with the same period in 2004. For the full year of 2005, noninterest income increased 9.7% to $2.33 billion compared to $2.12 billion for 2004. These increases include higher revenues from insurance operations, trust services, investment banking and brokerage fees and commissions, services charges on deposit accounts and other nondeposit fees and commissions.
BB&T’s insurance operations continue to expand through acquisitions and internal growth and are the largest provider of noninterest income. Insurance commissions increased 18.0% to $197.4 million in the current quarter compared with $167.3 million earned during the fourth quarter last year. For the full year 2005, insurance commissions totaled $714.2 million, an increase of 15.4% compared to 2004. These increases were the result of growth in commissions from the sale of property and casualty coverage and improved sales of employee benefit-related insurance products.
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Trust revenues increased 26.9% to $36.9 million in the fourth quarter of 2005 compared with $29.1 million earned in the fourth quarter of 2004. Trust revenues for the full year 2005 totaled $140.6 million, an increase of 17.7% compared to 2004. These increases were primarily attributable to the previously announced merger with Charlotte, N.C. – based Sterling Capital Management LLC, which occurred on April 1, 2005, and growth in mutual fund administration fees.
BB&T’s investment banking and brokerage operations enjoyed a strong quarter, as fees increased 7.6% to $69.7 million in the fourth quarter of 2005 compared to $64.7 million earned in the same quarter last year. For the full year 2005, investment banking and brokerage commissions totaled $289.6 million, an increase of 9.4% compared to 2004. These increases were primarily driven by growth in revenues from investment banking services and commissions on retail accounts at Scott & Stringfellow.
Service charges on deposit accounts totaled $141.6 million for the fourth quarter of 2005, an increase of 6.0% compared to $133.6 million earned in the same quarter last year. For the full year 2005, service charges on deposit accounts totaled $542.7 million, an increase of 3.7% compared to 2004. These increases were primarily attributable to growth in revenues from overdraft items and a decrease in fee waivers, which were partially offset by a decline in commercial account revenues due to higher earnings credits and a decline in monthly account service fees on personal checking products.
Other nondeposit fees and commissions totaled $100.2 million for the fourth quarter of 2005, an increase of 18.2% compared to the fourth quarter of 2004. For the full year 2005, other nondeposit fees and commissions increased 15.9% to $369.3 million. These increases were generated primarily by growth in bankcard fees and debit card related services.
Revenues from mortgage banking operations totaled $25.4 million for the fourth quarter of 2005, a slight decrease compared to the $26.9 million earned in the fourth quarter last year. For the full year 2005, mortgage banking revenues were $103.8 million, a decrease of 5.7% compared to 2004. These decreases were primarily the result of fluctuations in the valuation allowance for mortgage servicing rights. Current quarter revenues include a net loss of $3.3 million, composed of a recapture of the valuation allowance for mortgage-servicing rights, which was more than offset by hedging activities, compared to a $4.0 million net recapture in the same quarter of 2004. For the full year 2005, earnings include a net recapture of $9.5 million compared to a net recapture of $25.2 million recorded in 2004.
BB&T Receives Strong Debt Ratings
On Dec. 19, 2005, Dominion Bond Rating Service (“DBRS”) announced that it had initiated debt ratings for BB&T, assigning a AA rating to the senior and subordinated debt of BB&T Corporation and its principal banking subsidiary, Branch Banking & Trust Company. In assigning its ratings, DBRS noted that “BB&T benefits from a powerful banking and financial services franchise in a high-growth, southeastern U.S. footprint.” DBRS also cited that the ratings reflect BB&T’s “strong and stable earnings and robust profitability generated by the franchise, along with BB&T’s ample liquidity and capital.”
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BB&T Expands in Key Markets
On Dec. 15, 2005, BB&T announced plans to acquire Atlanta, Ga.-based Main Street Banks, Inc. in a $622.7 million stock swap. The merger will strengthen BB&T’s presence in the metro Atlanta area, one of the fastest-growing and most economically vibrant communities in the country. After the merger, BB&T will advance from sixth to fifth in deposit market share in both metropolitan Atlanta and Georgia. With $2.5 billion in assets, Main Street Banks is the largest community bank in metro Atlanta. It operates 24 full-service banking centers in the Atlanta and Athens, Ga., metro areas. The merger, which is subject to shareholder and regulatory approval, is expected to be completed in the second quarter of 2006.
On Jan. 12, BB&T announced plans to acquire privately held First Citizens Bancorp of Cleveland, Tenn. for $142.6 million in cash and stock. After the merger, BB&T will advance from ninth to seventh in deposit market share in Tennessee and from eighth to first in deposit market share in the Cleveland metropolitan statistical area. With $686 million in assets, First Citizens operates 16 full-service banking centers in Tennessee, two in North Carolina and one in Georgia. The merger, which is subject to shareholder and regulatory approval, is expected to be completed in the second quarter of 2006.
At Dec. 31, 2005, BB&T had $109.2 billion in assets and operated more than 1,400 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Florida, Alabama, Indiana and Washington, D.C. BB&T’s common stock is traded on the New York Stock Exchange under the trading symbol BBT. The closing price of BB&T’s common stock on Jan. 18 was $41.75 per share.
For additional information about BB&T’s financial performance, company news, products and services, please visit our Web site atwww.BBandT.com.
Earnings Webcast
To hear a live webcast of BB&T’s fourth quarter 2005 earnings conference call at 11:00 a.m. (EST) today, please visit our Web site atwww.BBandT.com. Replays of the conference call will be available through our Web site until 5 p.m. (EST) on Feb. 3.
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This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America (“GAAP”). BB&T’s management uses these “non-GAAP” measures in their analysis of the Corporation’s performance. Non-GAAP measures typically adjust GAAP performance measures to exclude the effects of charges, expenses and gains related to the consummation of mergers and acquisitions, and costs related to the integration of merged entities, as well as the amortization of intangibles and purchase accounting mark-to-market adjustments in the case of “cash basis” performance measures. These non-GAAP measures may also exclude other significant gains, losses or expenses that are unusual in nature and not expected to recur. Since these items and their impact on BB&T’s performance are difficult to predict, management believes presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of BB&T’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results 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) | Executive 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) | 12/31/05 | 12/31/04 | $ | % | |||||||||||
| OPERATING EARNINGS STATEMENTS (1) | |||||||||||||||
| Interest income - taxable equivalent | $ | 1,520,417 | $ | 1,207,945 | $ | 312,472 | 25.9 | % | |||||||
| Interest expense | 599,484 | 341,813 | 257,671 | 75.4 | |||||||||||
| Net interest income - taxable equivalent | 920,933 | 866,132 | 54,801 | 6.3 | |||||||||||
| Less: Taxable equivalent adjustment | 21,200 | 20,091 | 1,109 | 5.5 | |||||||||||
| Net interest income | 899,733 | 846,041 | 53,692 | 6.3 | |||||||||||
| Provision for credit losses | 69,329 | 65,153 | 4,176 | 6.4 | |||||||||||
| Net interest income after provision for credit losses | 830,404 | 780,888 | 49,516 | 6.3 | |||||||||||
| Noninterest income | 618,962 | 548,179 | 70,783 | 12.9 | |||||||||||
| Noninterest expense | 823,987 | 712,703 | 111,284 | 15.6 | |||||||||||
| Operating earnings before income taxes | 625,379 | 616,364 | 9,015 | 1.5 | |||||||||||
| Provision for income taxes | 199,576 | 200,556 | (980 | ) | (.5 | ) | |||||||||
| Operating earnings (1) | $ | 425,803 | $ | 415,808 | $ | 9,995 | 2.4 | % | |||||||
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | |||||||||||||||
| Basic earnings | $ | .78 | $ | .75 | $ | .03 | 4.0 | % | |||||||
| Diluted earnings | .78 | .75 | .03 | 4.0 | |||||||||||
| Weighted average shares - Basic | 543,879,921 | 552,053,611 | |||||||||||||
| Diluted | 548,607,865 | 557,510,572 | |||||||||||||
| Dividends paid per share | $ | .38 | $ | .35 | $ | .03 | 8.6 | % | |||||||
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | |||||||||||||||
| Return on average assets | 1.57 | % | 1.68 | % | |||||||||||
| Return on average equity | 15.18 | 15.17 | |||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.82 | 3.97 | |||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.0 | 50.1 | |||||||||||||
| CASH BASIS PERFORMANCE | |||||||||||||||
| BASED ON OPERATING EARNINGS (1)(3) | |||||||||||||||
| Cash basis operating earnings | $ | 448,866 | $ | 438,242 | $ | 10,624 | 2.4 | % | |||||||
| Diluted earnings per share | .82 | .79 | .03 | 3.8 | |||||||||||
| Return on average tangible assets | 1.73 | % | 1.86 | % | |||||||||||
| Return on average tangible equity | 27.88 | 27.77 | |||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 50.9 | 47.8 | |||||||||||||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 12/31/04 | $ | % | ||||||||||
| INCOME STATEMENTS | ||||||||||||||
| Interest income | $ | 1,499,217 | $ | 1,187,854 | $ | 311,363 | 26.2 | % | ||||||
| Interest expense | 599,484 | 341,813 | 257,671 | 75.4 | ||||||||||
| Net interest income | 899,733 | 846,041 | 53,692 | 6.3 | ||||||||||
| Provision for credit losses | 69,329 | 65,153 | 4,176 | 6.4 | ||||||||||
| Net interest income after provision for credit losses | 830,404 | 780,888 | 49,516 | 6.3 | ||||||||||
| Noninterest income | 618,962 | 548,179 | 70,783 | 12.9 | ||||||||||
| Noninterest expense | 818,031 | 710,839 | 107,192 | 15.1 | ||||||||||
| Income before income taxes | 631,335 | 618,228 | 13,107 | 2.1 | ||||||||||
| Provision for income taxes | 201,761 | 201,344 | 417 | .2 | ||||||||||
| Net income | $ | 429,574 | $ | 416,884 | $ | 12,690 | 3.0 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | .79 | $ | .76 | $ | .03 | 3.9 | % | ||||||
| Diluted earnings | .78 | .75 | .03 | 4.0 | ||||||||||
| Weighted average shares - Basic | 543,879,921 | 552,053,611 | ||||||||||||
| Diluted | 548,607,865 | 557,510,572 | ||||||||||||
| PERFORMANCE RATIOS BASED ON NET INCOME | ||||||||||||||
| Return on average assets | 1.58 | % | 1.68 | % | ||||||||||
| Return on average equity | 15.32 | 15.21 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 52.6 | 49.9 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Operating earnings exclude the effect of merger-related charges or credits and nonrecurring items. These amounts totaled $(3.8 million) and $(1.1 million), net of tax, in the fourth quarters of 2005 and 2004, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Cash basis and operating ratios also exclude merger-related charges or credits and nonrecurring items, where applicable. See Reconciliation Tables included herein. |
| (3) | Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive 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) | 12/31/05 | 12/31/04 | $ | % | ||||||||||
| OPERATING EARNINGS STATEMENTS (1) | ||||||||||||||
| Interest income - taxable equivalent | $ | 5,588,499 | $ | 4,628,065 | $ | 960,434 | 20.8 | % | ||||||
| Interest expense | 1,980,969 | 1,198,472 | 782,497 | 65.3 | ||||||||||
| Net interest income - taxable equivalent | 3,607,530 | 3,429,593 | 177,937 | 5.2 | ||||||||||
| Less: Taxable equivalent adjustment | 82,657 | 81,370 | 1,287 | 1.6 | ||||||||||
| Net interest income | 3,524,873 | 3,348,223 | 176,650 | 5.3 | ||||||||||
| Provision for credit losses | 217,263 | 249,269 | (32,006 | ) | (12.8 | ) | ||||||||
| Net interest income after provision for credit losses | 3,307,610 | 3,098,954 | 208,656 | 6.7 | ||||||||||
| Noninterest income | 2,324,605 | 2,119,271 | 205,334 | 9.7 | ||||||||||
| Noninterest expense | 3,133,284 | 2,890,345 | 242,939 | 8.4 | ||||||||||
| Operating earnings before income taxes | 2,498,931 | 2,327,880 | 171,051 | 7.3 | ||||||||||
| Provision for income taxes | 825,320 | 766,051 | 59,269 | 7.7 | ||||||||||
| Operating earnings (1) | $ | 1,673,611 | $ | 1,561,829 | $ | 111,782 | 7.2 | % | ||||||
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Basic earnings | $ | 3.06 | $ | 2.83 | $ | .23 | 8.1 | % | ||||||
| Diluted earnings | 3.04 | 2.81 | .23 | 8.2 | ||||||||||
| Weighted average shares - Basic | 546,916,414 | 551,661,326 | ||||||||||||
| Diluted | 551,379,604 | 556,041,033 | ||||||||||||
| Dividends paid per share | $ | 1.46 | $ | 1.34 | $ | .12 | 9.0 | % | ||||||
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Return on average assets | 1.60 | % | 1.62 | % | ||||||||||
| Return on average equity | 15.12 | 14.74 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.89 | 4.04 | ||||||||||||
| Noninterest income as a percentage of | ||||||||||||||
| total income (taxable equivalent) (2) | 39.1 | 37.8 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 52.5 | 51.9 | ||||||||||||
| CASH BASIS PERFORMANCE | ||||||||||||||
| BASED ON OPERATING EARNINGS (1)(3) | ||||||||||||||
| Cash basis operating earnings | $ | 1,763,004 | $ | 1,645,828 | $ | 117,176 | 7.1 | % | ||||||
| Diluted earnings per share | 3.20 | 2.96 | .24 | 8.1 | ||||||||||
| Return on average tangible assets | 1.77 | % | 1.79 | % | ||||||||||
| Return on average tangible equity | 27.82 | 27.17 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 50.4 | 49.7 | ||||||||||||
| For the Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 12/31/04 | $ | % | ||||||||||
| INCOME STATEMENTS | ||||||||||||||
| Interest income | $ | 5,505,842 | $ | 4,546,695 | $ | 959,147 | 21.1 | % | ||||||
| Interest expense | 1,980,969 | 1,198,472 | 782,497 | 65.3 | ||||||||||
| Net interest income | 3,524,873 | 3,348,223 | 176,650 | 5.3 | ||||||||||
| Provision for credit losses | 217,263 | 249,269 | (32,006 | ) | (12.8 | ) | ||||||||
| Net interest income after provision for credit losses | 3,307,610 | 3,098,954 | 208,656 | 6.7 | ||||||||||
| Noninterest income | 2,325,622 | 2,119,271 | 206,351 | 9.7 | ||||||||||
| Noninterest expense | 3,166,501 | 2,895,863 | 270,638 | 9.3 | ||||||||||
| Income before income taxes | 2,466,731 | 2,322,362 | 144,369 | 6.2 | ||||||||||
| Provision for income taxes | 812,962 | 763,987 | 48,975 | 6.4 | ||||||||||
| Net income | $ | 1,653,769 | $ | 1,558,375 | $ | 95,394 | 6.1 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | 3.02 | $ | 2.82 | $ | .20 | 7.1 | % | ||||||
| Diluted earnings | 3.00 | 2.80 | .20 | 7.1 | ||||||||||
| Weighted average shares - Basic | 546,916,414 | 551,661,326 | ||||||||||||
| Diluted | 551,379,604 | 556,041,033 | ||||||||||||
| PERFORMANCE RATIOS BASED ON NET INCOME | ||||||||||||||
| Return on average assets | 1.58 | % | 1.62 | % | ||||||||||
| Return on average equity | 14.95 | 14.71 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.1 | 52.0 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Operating earnings exclude the effect of merger-related charges or credits and nonrecurring items. These amounts totaled $19.8 million and $3.5 million, net of tax, in 2005 and 2004, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Cash basis and operating ratios also exclude merger-related charges or credits and nonrecurring items, where applicable. See Reconciliation Tables included herein. |
| (3) | Cash basis performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive 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) | 12/31/05 | 12/31/04 | $ | % | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| End of period balances | ||||||||||||||
| Cash and due from banks | $ | 2,185,571 | $ | 1,782,323 | $ | 403,248 | 22.6 | % | ||||||
| Interest-bearing deposits with banks | 410,380 | 1,003,125 | (592,745 | ) | (59.1 | ) | ||||||||
| Federal funds sold and other earning assets | 286,233 | 240,387 | 45,846 | 19.1 | ||||||||||
| Securities available for sale | 19,782,966 | 18,838,196 | 944,770 | 5.0 | ||||||||||
| Securities held to maturity | — | 125 | (125 | ) | — | |||||||||
| Trading securities | 706,518 | 334,256 | 372,262 | 111.4 | ||||||||||
| Total securities | 20,489,484 | 19,172,577 | 1,316,907 | 6.9 | ||||||||||
| Commercial loans and leases | 37,655,471 | 34,285,096 | 3,370,375 | 9.8 | ||||||||||
| Direct retail loans | 14,940,638 | 13,932,879 | 1,007,759 | 7.2 | ||||||||||
| Sales finance loans | 6,598,509 | 6,362,990 | 235,519 | 3.7 | ||||||||||
| Revolving credit loans | 1,347,309 | 1,276,876 | 70,433 | 5.5 | ||||||||||
| Mortgage loans | 14,481,561 | 12,304,760 | 2,176,801 | 17.7 | ||||||||||
| Total loans and leases | 75,023,488 | 68,162,601 | 6,860,887 | 10.1 | ||||||||||
| Allowance for loan and lease losses | 825,300 | 804,932 | 20,368 | 2.5 | ||||||||||
| Total earning assets | 96,777,005 | 88,718,180 | 8,058,825 | 9.1 | ||||||||||
| Premises and equipment, net | 1,286,909 | 1,283,546 | 3,363 | .3 | ||||||||||
| Goodwill | 4,255,998 | 4,124,241 | 131,757 | 3.2 | ||||||||||
| Core deposit and other intangibles | 487,525 | 513,539 | (26,014 | ) | (5.1 | ) | ||||||||
| Other assets | 5,569,471 | 5,031,234 | 538,237 | 10.7 | ||||||||||
| Total assets | 109,169,759 | 100,508,641 | 8,661,118 | 8.6 | ||||||||||
| Noninterest-bearing deposits | 13,476,939 | 12,246,248 | 1,230,691 | 10.0 | ||||||||||
| Savings and interest checking | 4,366,015 | 4,490,214 | (124,199 | ) | (2.8 | ) | ||||||||
| Money rate savings | 24,548,872 | 23,427,797 | 1,121,075 | 4.8 | ||||||||||
| CDs and other time deposits | 31,889,973 | 27,535,078 | 4,354,895 | 15.8 | ||||||||||
| Total deposits | 74,281,799 | 67,699,337 | 6,582,462 | 9.7 | ||||||||||
| Fed funds purchased, repos and other borrowings | 6,561,719 | 6,687,872 | (126,153 | ) | (1.9 | ) | ||||||||
| Long-term debt | 13,118,559 | 11,419,624 | 1,698,935 | 14.9 | ||||||||||
| Total interest-bearing liabilities | 80,485,138 | 73,560,585 | 6,924,553 | 9.4 | ||||||||||
| Other liabilities | 4,078,568 | 3,827,334 | 251,234 | 6.6 | ||||||||||
| Total liabilities | 98,040,645 | 89,634,167 | 8,406,478 | 9.4 | ||||||||||
| Total shareholders' equity | $ | 11,129,114 | $ | 10,874,474 | $ | 254,640 | 2.3 | % | ||||||
| Average balances | ||||||||||||||
| Securities, at amortized cost | $ | 20,467,160 | $ | 18,218,272 | $ | 2,248,888 | 12.3 | % | ||||||
| Commercial loans and leases | 35,869,679 | 33,013,407 | 2,856,272 | 8.7 | ||||||||||
| Direct retail loans | 14,464,156 | 13,147,222 | 1,316,934 | 10.0 | ||||||||||
| Sales finance loans | 6,459,627 | 6,228,871 | 230,756 | 3.7 | ||||||||||
| Revolving credit loans | 1,272,718 | 1,200,913 | 71,805 | 6.0 | ||||||||||
| Mortgage loans | 13,451,128 | 12,517,066 | 934,062 | 7.5 | ||||||||||
| Total loans and leases | 71,517,308 | 66,107,479 | 5,409,829 | 8.2 | ||||||||||
| Allowance for loan and lease losses | 813,206 | 811,090 | 2,116 | .3 | ||||||||||
| Other earning assets | 718,325 | 620,451 | 97,874 | 15.8 | ||||||||||
| Total earning assets | 92,702,793 | 84,946,202 | 7,756,591 | 9.1 | ||||||||||
| Total assets | 104,611,882 | 96,275,994 | 8,335,888 | 8.7 | ||||||||||
| Noninterest-bearing deposits | 12,878,120 | 11,682,911 | 1,195,209 | 10.2 | ||||||||||
| Savings and interest checking | 4,894,886 | 4,797,668 | 97,218 | 2.0 | ||||||||||
| Money rate savings | 23,264,482 | 21,907,558 | 1,356,924 | 6.2 | ||||||||||
| CDs and other time deposits | 29,308,871 | 26,427,935 | 2,880,936 | 10.9 | ||||||||||
| Total deposits | 70,346,359 | 64,816,072 | 5,530,287 | 8.5 | ||||||||||
| Fed funds purchased, repos and other borrowings | 7,385,826 | 6,590,471 | 795,355 | 12.1 | ||||||||||
| Long-term debt | 11,958,681 | 10,886,199 | 1,072,482 | 9.9 | ||||||||||
| Total interest-bearing liabilities | 76,812,746 | 70,609,831 | 6,202,915 | 8.8 | ||||||||||
| Total shareholders' equity | $ | 11,065,493 | $ | 10,596,714 | $ | 468,779 | 4.4 | % | ||||||
| As of / For the Quarter Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | |||||||||||||||
| MISCELLANEOUS INFORMATION | ||||||||||||||||||||
| Unrealized depreciation on | ||||||||||||||||||||
| securities available for sale, net of tax | $ | (337,578 | ) | $ | (266,690 | ) | $ | (109,439 | ) | $ | (270,708 | ) | $ | (87,474 | ) | |||||
| Derivatives (notional value) | 23,679,972 | 26,131,167 | 25,976,092 | 30,496,627 | 20,509,499 | |||||||||||||||
| Fair value of derivatives portfolio | (10,600 | ) | (1,869 | ) | 157,437 | 39,680 | 73,325 | |||||||||||||
| Common stock prices: | High | 43.92 | 43.00 | 40.95 | 42.24 | 43.25 | ||||||||||||||
| Low | 37.39 | 38.56 | 37.04 | 37.68 | 38.67 | |||||||||||||||
| End of period | 41.91 | 39.05 | 39.97 | 39.08 | 42.05 | |||||||||||||||
| Weighted average shares - | Basic | 543,879,921 | 547,467,864 | 547,089,165 | 549,282,008 | 552,053,611 | ||||||||||||||
| Diluted | 548,607,865 | 552,058,757 | 551,245,112 | 553,654,679 | 557,510,572 | |||||||||||||||
| End of period shares outstanding | 543,102,080 | 548,051,351 | 546,796,870 | 548,638,822 | 550,406,287 | |||||||||||||||
| End of period banking offices | 1,404 | 1,402 | 1,407 | 1,409 | 1,413 | |||||||||||||||
| ATMs | 1,951 | 1,944 | 1,929 | 1,930 | 1,930 | |||||||||||||||
| FTEs | 27,745 | 27,080 | 26,945 | 26,526 | 26,148 | |||||||||||||||
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive 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) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||
| OPERATING EARNINGS STATEMENTS (1) | |||||||||||||||||
| Interest income - taxable equivalent | |||||||||||||||||
| Interest and fees on loans and leases | $ | 1,290,568 | $ | 1,227,374 | $ | 1,135,417 | $ | 1,059,777 | $ | 1,016,346 | |||||||
| Interest and dividends on securities | 223,240 | 217,507 | 212,613 | 199,994 | 188,030 | ||||||||||||
| Interest on short-term investments | 6,609 | 6,331 | 5,186 | 3,883 | 3,569 | ||||||||||||
| Total interest income - taxable equivalent | 1,520,417 | 1,451,212 | 1,353,216 | 1,263,654 | 1,207,945 | ||||||||||||
| Interest expense | |||||||||||||||||
| Interest on deposits | 387,763 | 343,489 | 279,283 | 241,299 | 208,404 | ||||||||||||
| Interest on fed funds purchased, repos and other borrowings | 65,371 | 58,169 | 58,546 | 42,466 | 28,806 | ||||||||||||
| Interest on long-term debt | 146,350 | 129,799 | 117,890 | 110,544 | 104,603 | ||||||||||||
| Total interest expense | 599,484 | 531,457 | 455,719 | 394,309 | 341,813 | ||||||||||||
| Net interest income - taxable equivalent | 920,933 | 919,755 | 897,497 | 869,345 | 866,132 | ||||||||||||
| Less: Taxable equivalent adjustment | 21,200 | 20,763 | 20,532 | 20,162 | 20,091 | ||||||||||||
| Net interest income | 899,733 | 898,992 | 876,965 | 849,183 | 846,041 | ||||||||||||
| Provision for credit losses | 69,329 | 57,465 | 49,424 | 41,045 | 65,153 | ||||||||||||
| Net interest income after provision for | |||||||||||||||||
| credit losses | 830,404 | 841,527 | 827,541 | 808,138 | 780,888 | ||||||||||||
| Noninterest income | |||||||||||||||||
| Service charges on deposits | 141,645 | 141,072 | 139,166 | 120,772 | 133,590 | ||||||||||||
| Mortgage banking income | 25,357 | 35,840 | 12,367 | 30,193 | 26,939 | ||||||||||||
| Investment banking and brokerage fees and commissions | 69,682 | 70,036 | 81,046 | 68,883 | 64,733 | ||||||||||||
| Trust revenue | 36,949 | 36,552 | 36,722 | 30,407 | 29,113 | ||||||||||||
| Insurance commissions | 197,372 | 182,915 | 181,612 | 152,290 | 167,278 | ||||||||||||
| Other nondeposit fees and commissions | 100,157 | 97,208 | 91,558 | 80,382 | 84,723 | ||||||||||||
| Securities gains (losses), net | (81 | ) | 193 | (6 | ) | 7 | 52 | ||||||||||
| Other noninterest income | 47,881 | 41,304 | 41,437 | 33,687 | 41,751 | ||||||||||||
| Total noninterest income | 618,962 | 605,120 | 583,902 | 516,621 | 548,179 | ||||||||||||
| Noninterest expense | |||||||||||||||||
| Personnel expense | 468,098 | 451,260 | 450,730 | 415,116 | 383,496 | ||||||||||||
| Occupancy and equipment expense | 112,018 | 105,656 | 104,122 | 105,744 | 107,480 | ||||||||||||
| Foreclosed property expense | 5,809 | 6,322 | 5,327 | 5,718 | 6,876 | ||||||||||||
| Amortization of intangibles | 29,054 | 26,540 | 28,611 | 28,102 | 29,342 | ||||||||||||
| Loss on early extinguishment of debt | — | — | 2,943 | — | — | ||||||||||||
| Other noninterest expense | 209,008 | 198,522 | 196,001 | 178,583 | 185,509 | ||||||||||||
| Total noninterest expense | 823,987 | 788,300 | 787,734 | 733,263 | 712,703 | ||||||||||||
| Operating earnings before income taxes | 625,379 | 658,347 | 623,709 | 591,496 | 616,364 | ||||||||||||
| Provision for income taxes | 199,576 | 217,471 | 210,534 | 197,739 | 200,556 | ||||||||||||
| Operating earnings (1) | $ | 425,803 | $ | 440,876 | $ | 413,175 | $ | 393,757 | $ | 415,808 | |||||||
| PER SHARE DATA BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) | |||||||||||||||||
| Basic earnings | $ | .78 | $ | .81 | $ | .76 | $ | .72 | $ | .75 | |||||||
| Diluted earnings | .78 | .80 | .75 | .71 | .75 | ||||||||||||
| Dividends paid per share | .38 | .38 | .35 | .35 | .35 | ||||||||||||
| PERFORMANCE RATIOS BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) | |||||||||||||||||
| Return on average assets | 1.57 | % | 1.64 | % | 1.60 | % | 1.59 | % | 1.68 | % | |||||||
| Return on average equity | 15.18 | 15.65 | 15.00 | 14.64 | 15.17 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.82 | 3.88 | 3.92 | 3.95 | 3.97 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.0 | 51.7 | 52.5 | 52.9 | 50.1 | ||||||||||||
| Noninterest income as a percentage of | |||||||||||||||||
| total income (taxable equivalent) (2) | 40.3 | 39.2 | 39.8 | 36.8 | 38.6 | ||||||||||||
| Average earning assets as a percentage of | |||||||||||||||||
| average total assets | 88.9 | 88.7 | 88.4 | 88.4 | 88.3 | ||||||||||||
| Average loans and leases as a percentage of | |||||||||||||||||
| average deposits | 101.9 | 100.9 | 102.1 | 101.9 | 101.5 | ||||||||||||
| CASH BASIS PERFORMANCE BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) (3) | |||||||||||||||||
| Cash basis operating earnings | $ | 448,866 | $ | 462,350 | $ | 435,959 | $ | 415,829 | $ | 438,242 | |||||||
| Diluted earnings per share | .82 | .84 | .79 | .75 | .79 | ||||||||||||
| Return on average tangible assets | 1.73 | % | 1.81 | % | 1.77 | % | 1.76 | % | 1.86 | % | |||||||
| Return on average tangible equity | 27.88 | 28.56 | 27.82 | 27.00 | 27.77 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 50.9 | 49.7 | 50.3 | 50.6 | 47.8 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Operating earnings exclude the effect of merger-related charges or credits and nonrecurring items. These amounts totaled $(3.8 million), $(1.1 million), $26.4 million, $(1.6 million), and $(1.1 million), net of tax, for the quarters ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, gains or losses on mortgage servicing rights-related derivatives, merger-related charges or credits and nonrecurring items, where applicable. See Reconciliation Tables included herein. |
| (3) | Cash basis operating performance information excludes the effect on earnings of amortization expense applicable to intangible assets, the unamortized balances of intangibles from assets and equity, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 9 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | |||||||||||||||
| INCOME STATEMENTS | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||
| Interest and fees on loans and leases | $ | 1,283,225 | $ | 1,220,102 | $ | 1,128,331 | $ | 1,052,821 | $ | 1,009,526 | ||||||||||
| Interest and dividends on securities | 209,383 | 204,016 | 199,167 | 186,788 | 174,759 | |||||||||||||||
| Interest on short-term investments | 6,609 | 6,331 | 5,186 | 3,883 | 3,569 | |||||||||||||||
| Total interest income | 1,499,217 | 1,430,449 | 1,332,684 | 1,243,492 | 1,187,854 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Interest on deposits | 387,763 | 343,489 | 279,283 | 241,299 | 208,404 | |||||||||||||||
| Interest on fed funds purchased, repos and other borrowings | 65,371 | 58,169 | 58,546 | 42,466 | 28,806 | |||||||||||||||
| Interest on long-term debt | 146,350 | 129,799 | 117,890 | 110,544 | 104,603 | |||||||||||||||
| Total interest expense | 599,484 | 531,457 | 455,719 | 394,309 | 341,813 | |||||||||||||||
| Net interest income | 899,733 | 898,992 | 876,965 | 849,183 | 846,041 | |||||||||||||||
| Provision for credit losses | 69,329 | 57,465 | 49,424 | 41,045 | 65,153 | |||||||||||||||
| Net interest income after provision for | ||||||||||||||||||||
| credit losses | 830,404 | 841,527 | 827,541 | 808,138 | 780,888 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposits | 141,645 | 141,072 | 139,166 | 120,772 | 133,590 | |||||||||||||||
| Mortgage banking income | 25,357 | 35,840 | 12,367 | 30,193 | �� | 26,939 | ||||||||||||||
| Investment banking and brokerage fees and commissions | 69,682 | 70,036 | 81,046 | 68,883 | 64,733 | |||||||||||||||
| Trust revenue | 36,949 | 36,552 | 36,722 | 30,407 | 29,113 | |||||||||||||||
| Insurance commissions | 197,372 | 182,915 | 181,612 | 152,290 | 167,278 | |||||||||||||||
| Other nondeposit fees and commissions | 100,157 | 97,208 | 91,558 | 80,382 | 84,723 | |||||||||||||||
| Securities gains (losses), net | (81 | ) | 193 | (6 | ) | 7 | 52 | |||||||||||||
| Other noninterest income | 47,881 | 41,304 | 42,454 | 33,687 | 41,751 | |||||||||||||||
| Total noninterest income | 618,962 | 605,120 | 584,919 | 516,621 | 548,179 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Personnel expense | 468,098 | 451,260 | 450,730 | 415,116 | 383,496 | |||||||||||||||
| Occupancy and equipment expense | 112,018 | 105,656 | 148,080 | 105,744 | 107,480 | |||||||||||||||
| Foreclosed property expense | 5,809 | 6,322 | 5,327 | 5,718 | 6,876 | |||||||||||||||
| Amortization of intangibles | 29,054 | 26,540 | 28,611 | 28,102 | 29,342 | |||||||||||||||
| Merger-related and restructuring charges or credits | (5,956 | ) | (1,824 | ) | (404 | ) | (2,557 | ) | (1,864 | ) | ||||||||||
| Loss on early extinguishment of debt | — | — | 2,943 | — | — | |||||||||||||||
| Other noninterest expense | 209,008 | 198,522 | 196,001 | 178,583 | 185,509 | |||||||||||||||
| Total noninterest expense | 818,031 | 786,476 | 831,288 | 730,706 | 710,839 | |||||||||||||||
| Income before income taxes | 631,335 | 660,171 | 581,172 | 594,053 | 618,228 | |||||||||||||||
| Provision for income taxes | 201,761 | 218,165 | 194,367 | 198,669 | 201,344 | |||||||||||||||
| Net income | $ | 429,574 | $ | 442,006 | $ | 386,805 | $ | 395,384 | $ | 416,884 | ||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic earnings | $ | .79 | $ | .81 | $ | .71 | $ | .72 | $ | .76 | ||||||||||
| Diluted earnings | .78 | .80 | .70 | .71 | .75 | |||||||||||||||
| For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | |||||||||||||
| ANNUALIZED INTEREST YIELDS / RATES (1) | |||||||||||||||||
| Interest income: | |||||||||||||||||
| Securities and other earning assets: | |||||||||||||||||
| U.S. Government securities and other earning assets | 3.93 | % | 3.77 | % | 3.78 | % | 3.73 | % | 3.69 | % | |||||||
| Mortgage-backed securities | 4.76 | 4.73 | 4.72 | 4.66 | 4.66 | ||||||||||||
| State and municipal securities | 6.81 | 6.74 | 6.66 | 6.71 | 6.52 | ||||||||||||
| Trading securities | 3.17 | 2.82 | 2.05 | 2.43 | 1.33 | ||||||||||||
| Total securities and other earning assets | 4.25 | 4.14 | 4.10 | 4.03 | 3.92 | ||||||||||||
| Loans: | |||||||||||||||||
| Commercial loans and leases | 7.07 | 6.77 | 6.40 | 6.01 | 5.69 | ||||||||||||
| Consumer loans | 7.53 | 7.38 | 7.20 | 7.11 | 6.83 | ||||||||||||
| Mortgage loans | 5.46 | 5.45 | 5.42 | 5.43 | 5.41 | ||||||||||||
| Total loans | 6.90 | 6.71 | 6.47 | 6.25 | 6.00 | ||||||||||||
| Total earning assets | 6.30 | 6.12 | 5.92 | 5.75 | 5.53 | ||||||||||||
| Interest expense: | |||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||
| Savings and interest checking | .59 | .45 | .36 | .31 | .26 | ||||||||||||
| Money rate savings | 1.76 | 1.53 | 1.25 | 1.12 | .94 | ||||||||||||
| CDs and other time deposits | 3.51 | 3.19 | 2.89 | 2.60 | 2.28 | ||||||||||||
| Total interest-bearing deposits | 2.58 | 2.31 | 1.99 | 1.78 | 1.53 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 3.64 | 3.24 | 2.86 | 2.43 | 1.89 | ||||||||||||
| Long-term debt | 4.58 | 4.26 | 4.07 | 3.92 | 3.63 | ||||||||||||
| Total interest-bearing liabilities | 3.00 | 2.70 | 2.40 | 2.17 | 1.90 | ||||||||||||
| Net yield on earning assets | 3.82 | % | 3.88 | % | 3.92 | % | 3.95 | % | 3.97 | % | |||||||
| NOTES: | (1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 10 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||
| SELECTED BALANCE SHEET DATA | |||||||||||||||||
| End of period balances | |||||||||||||||||
| Securities available for sale | $ | 19,782,966 | $ | 19,817,145 | $ | 20,123,465 | $ | 19,562,488 | $ | 18,838,196 | |||||||
| Securities held to maturity | — | — | — | — | 125 | ||||||||||||
| Trading securities | 706,518 | 433,652 | 675,146 | 478,661 | 334,256 | ||||||||||||
| Total securities | 20,489,484 | 20,250,797 | 20,798,611 | 20,041,149 | 19,172,577 | ||||||||||||
| Commercial loans and leases | 37,655,471 | 36,758,121 | 35,958,821 | 34,945,215 | 34,285,096 | ||||||||||||
| Direct retail loans | 14,940,638 | 14,738,407 | 14,529,564 | 14,158,990 | 13,932,879 | ||||||||||||
| Sales finance loans | 6,598,509 | 6,679,822 | 6,468,217 | 6,274,100 | 6,362,990 | ||||||||||||
| Revolving credit loans | 1,347,309 | 1,294,804 | 1,271,397 | 1,236,692 | 1,276,876 | ||||||||||||
| Mortgage loans | 14,481,561 | 14,200,691 | 13,512,617 | 12,772,935 | 12,304,760 | ||||||||||||
| Total loans and leases | 75,023,488 | 73,671,845 | 71,740,616 | 69,387,932 | 68,162,601 | ||||||||||||
| Allowance for loan and lease losses | 825,300 | 817,777 | 809,318 | 801,573 | 804,932 | ||||||||||||
| Other earning assets | 730,819 | 709,478 | 798,810 | 566,506 | 1,243,512 | ||||||||||||
| Total earning assets | 96,777,005 | 95,054,570 | 93,512,746 | 90,424,985 | 88,718,180 | ||||||||||||
| Total assets | 109,169,759 | 107,080,153 | 105,835,324 | 102,015,086 | 100,508,641 | ||||||||||||
| Noninterest-bearing deposits | 13,476,939 | 13,499,106 | 13,197,792 | 12,646,753 | 12,246,248 | ||||||||||||
| Savings and interest checking | 4,366,015 | 4,443,177 | 4,641,866 | 4,481,740 | 4,490,214 | ||||||||||||
| Money rate savings | 24,548,872 | 23,655,727 | 23,075,292 | 23,580,611 | 23,427,797 | ||||||||||||
| CDs and other time deposits | 31,889,973 | 31,582,264 | 30,915,409 | 26,127,235 | 27,535,078 | ||||||||||||
| Total deposits | 74,281,799 | 73,180,274 | 71,830,359 | 66,836,339 | 67,699,337 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 6,561,719 | 6,533,455 | 7,137,762 | 9,152,099 | 6,687,872 | ||||||||||||
| Long-term debt | 13,118,559 | 12,376,759 | 11,955,683 | 11,126,988 | 11,419,624 | ||||||||||||
| Total interest-bearing liabilities | 80,485,138 | 78,591,382 | 77,726,012 | 74,468,673 | 73,560,585 | ||||||||||||
| Total shareholders' equity | 11,129,114 | 11,195,918 | 11,090,367 | 10,825,284 | 10,874,474 | ||||||||||||
| Goodwill | 4,255,998 | 4,237,451 | 4,233,719 | 4,163,108 | 4,124,241 | ||||||||||||
| Core deposit and other intangibles | 487,525 | 503,686 | 535,965 | 507,692 | 513,539 | ||||||||||||
| Total intangibles | 4,743,523 | 4,741,137 | 4,769,684 | 4,670,800 | 4,637,780 | ||||||||||||
| Mortgage servicing rights | $ | 451,287 | $ | 414,466 | $ | 341,676 | $ | 390,340 | $ | 340,740 | |||||||
| Average balances | |||||||||||||||||
| Securities, at amortized cost | $ | 20,807,541 | $ | 20,822,997 | $ | 20,613,680 | $ | 19,607,324 | $ | 18,880,095 | |||||||
| Commercial loans and leases | 37,181,335 | 36,335,341 | 35,399,601 | 34,528,167 | 34,058,836 | ||||||||||||
| Direct retail loans | 14,819,027 | 14,632,801 | 14,339,740 | 14,054,806 | 13,758,376 | ||||||||||||
| Sales finance loans | 6,625,486 | 6,594,830 | 6,345,207 | 6,267,566 | 6,244,775 | ||||||||||||
| Revolving credit loans | 1,307,724 | 1,281,964 | 1,248,176 | 1,252,297 | 1,239,100 | ||||||||||||
| Mortgage loans | 14,381,114 | 13,869,588 | 13,052,966 | 12,475,302 | 12,143,726 | ||||||||||||
| Total loans and leases | 74,314,686 | 72,714,524 | 70,385,690 | 68,578,138 | 67,444,813 | ||||||||||||
| Allowance for loan and lease losses | 818,743 | 814,934 | 810,545 | 808,470 | 817,720 | ||||||||||||
| Other earning assets | 797,372 | 795,338 | 657,433 | 620,364 | 660,714 | ||||||||||||
| Total earning assets | 95,919,599 | 94,332,859 | 91,656,803 | 88,805,826 | 86,985,622 | ||||||||||||
| Total assets | 107,844,163 | 106,360,541 | 103,663,680 | 100,478,992 | 98,541,446 | ||||||||||||
| Noninterest-bearing deposits | 13,343,220 | 13,144,471 | 12,771,153 | 12,238,571 | 12,436,447 | ||||||||||||
| Savings and interest checking | 4,831,399 | 4,928,280 | 5,010,228 | 4,809,025 | 4,767,397 | ||||||||||||
| Money rate savings | 23,712,873 | 23,200,228 | 22,945,871 | 23,193,960 | 22,943,275 | ||||||||||||
| CDs and other time deposits | 31,061,201 | 30,819,138 | 28,214,800 | 27,079,998 | 26,306,639 | ||||||||||||
| Total deposits | 72,948,693 | 72,092,117 | 68,942,052 | 67,321,554 | 66,453,758 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 7,118,752 | 7,123,027 | 8,218,309 | 7,085,742 | 6,053,669 | ||||||||||||
| Long-term debt | 12,717,191 | 12,111,140 | 11,599,714 | 11,390,424 | 11,489,627 | ||||||||||||
| Total interest-bearing liabilities | 79,441,416 | 78,181,813 | 75,988,922 | 73,559,149 | 71,560,607 | ||||||||||||
| Total shareholders' equity | $ | 11,126,630 | $ | 11,176,928 | $ | 11,050,089 | $ | 10,904,662 | $ | 10,907,344 | |||||||
| SELECTED CAPITAL INFORMATION (1) | |||||||||||||||||
| Risk-based capital: | |||||||||||||||||
| Tier 1 | $ | 7,453,988 | $ | 7,454,705 | $ | 6,681,308 | $ | 6,767,299 | $ | 6,687,082 | |||||||
| Total | 11,610,547 | 11,648,384 | 10,854,492 | 10,575,173 | 10,571,126 | ||||||||||||
| Risk-weighted assets | 80,428,571 | 78,417,224 | 76,415,717 | 73,936,837 | 72,675,079 | ||||||||||||
| Average quarterly tangible assets | 103,741,008 | 102,009,127 | 99,316,641 | 96,134,396 | 94,162,547 | ||||||||||||
| Risk-based capital ratios: | |||||||||||||||||
| Tier 1 | 9.3 | % | 9.5 | % | 8.7 | % | 9.2 | % | 9.2 | % | |||||||
| Total | 14.4 | 14.9 | 14.2 | 14.3 | 14.5 | ||||||||||||
| Leverage capital ratio | 7.2 | 7.3 | 6.7 | 7.0 | 7.1 | ||||||||||||
| Equity as a percentage of total assets | 10.2 | 10.5 | 10.5 | 10.6 | 10.8 | ||||||||||||
| Book value per share | $ | 20.49 | $ | 20.43 | $ | 20.28 | $ | 19.73 | $ | 19.76 | |||||||
| Tangible book value per share (2) | 11.76 | 11.78 | 11.56 | 11.22 | 11.33 | ||||||||||||
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. |
| (1) | Current quarter risk-based capital information is preliminary. |
| (2) | Excludes the carrying value of goodwill and other intangible assets from shareholders' equity. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 11 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||||
| ASSET QUALITY ANALYSIS | |||||||||||||||||||
| Allowance For Credit Losses | |||||||||||||||||||
| Beginning balance | $ | 830,344 | $ | 827,325 | $ | 822,464 | $ | 828,301 | $ | 825,665 | |||||||||
| Allowance for acquired (sold) loans, net | (970 | ) | — | — | — | 1,795 | |||||||||||||
| Provision for credit losses | 69,329 | 57,465 | 49,424 | 41,045 | 65,153 | ||||||||||||||
| Charge-offs | |||||||||||||||||||
| Commercial loans and leases | (27,790 | ) | (19,414 | ) | (17,572 | ) | (12,892 | ) | (30,668 | ) | |||||||||
| Direct retail loans | (11,313 | ) | (16,131 | ) | (12,368 | ) | (11,484 | ) | (13,149 | ) | |||||||||
| Sales finance loans | (27,314 | ) | (22,517 | ) | (16,792 | ) | (21,689 | ) | (23,479 | ) | |||||||||
| Revolving credit loans | (15,994 | ) | (13,179 | ) | (12,552 | ) | (12,693 | ) | (13,149 | ) | |||||||||
| Mortgage loans | (1,347 | ) | (1,502 | ) | (1,728 | ) | (1,476 | ) | (1,352 | ) | |||||||||
| Total charge-offs | (83,758 | ) | (72,743 | ) | (61,012 | ) | (60,234 | ) | (81,797 | ) | |||||||||
| Recoveries | |||||||||||||||||||
| Commercial loans and leases | 5,891 | 8,863 | 6,626 | 4,043 | 7,788 | ||||||||||||||
| Direct retail loans | 2,345 | 2,381 | 2,714 | 2,399 | 2,566 | ||||||||||||||
| Sales finance loans | 3,586 | 3,973 | 4,333 | 4,275 | 4,559 | ||||||||||||||
| Revolving credit loans | 2,841 | 2,740 | 2,737 | 2,540 | 2,489 | ||||||||||||||
| Mortgage loans | 162 | 340 | 39 | 95 | 83 | ||||||||||||||
| Total recoveries | 14,825 | 18,297 | 16,449 | 13,352 | 17,485 | ||||||||||||||
| Net charge-offs | (68,933 | ) | (54,446 | ) | (44,563 | ) | (46,882 | ) | (64,312 | ) | |||||||||
| Ending balance | $ | 829,770 | $ | 830,344 | $ | 827,325 | $ | 822,464 | $ | 828,301 | |||||||||
| Allowance For Credit Losses | |||||||||||||||||||
| Allowance for loan and lease losses | $ | 825,300 | $ | 817,777 | $ | 809,318 | $ | 801,573 | $ | 804,932 | |||||||||
| Reserve for unfunded lending commitments | 4,470 | 12,567 | 18,007 | 20,891 | 23,369 | ||||||||||||||
| Total | $ | 829,770 | $ | 830,344 | $ | 827,325 | $ | 822,464 | $ | 828,301 | |||||||||
| Nonperforming Assets | |||||||||||||||||||
| Nonaccrual loans and leases: | |||||||||||||||||||
| Commercial loans and leases | $ | 109,276 | $ | 111,954 | $ | 115,367 | $ | 127,220 | $ | 143,420 | |||||||||
| Direct retail loans | 49,102 | 46,668 | 44,672 | 47,194 | 46,187 | ||||||||||||||
| Sales finance loans | 18,742 | 20,463 | 17,237 | 17,306 | 14,670 | ||||||||||||||
| Revolving credit loans | 233 | 304 | 348 | 266 | 349 | ||||||||||||||
| Mortgage loans | 51,526 | 51,183 | 52,130 | 62,476 | 64,010 | ||||||||||||||
| Total nonaccrual loans and leases | 228,879 | 230,572 | 229,754 | 254,462 | 268,636 | ||||||||||||||
| Foreclosed real estate | 48,315 | 51,504 | 62,036 | 60,147 | 69,324 | ||||||||||||||
| Other foreclosed property | 22,420 | 21,692 | 16,550 | 18,199 | 19,579 | ||||||||||||||
| Restructured loans | 515 | 523 | 531 | 537 | 555 | ||||||||||||||
| Nonperforming assets | $ | 300,129 | $ | 304,291 | $ | 308,871 | $ | 333,345 | $ | 358,094 | |||||||||
| Loans 90 days or more past due | |||||||||||||||||||
| and still accruing: | |||||||||||||||||||
| Commercial loans and leases | $ | 16,953 | $ | 11,532 | $ | 10,821 | $ | 15,036 | $ | 9,986 | |||||||||
| Direct retail loans | 20,814 | 18,197 | 14,718 | 13,857 | 19,917 | ||||||||||||||
| Sales finance loans | 22,137 | 16,661 | 16,398 | 18,864 | 21,205 | ||||||||||||||
| Revolving credit loans | 4,713 | 4,840 | 3,886 | 4,067 | 4,837 | ||||||||||||||
| Mortgage loans | 38,828 | 33,385 | 33,494 | 31,432 | 44,225 | ||||||||||||||
| Total loans 90 days or more past due | |||||||||||||||||||
| and still accruing | 103,445 | 84,615 | 79,317 | 83,256 | 100,170 | ||||||||||||||
| Loans 90 days or more past due and still accruing | |||||||||||||||||||
| as a percentage of total loans and leases | .14 | % | .11 | % | .11 | % | .12 | % | .15 | % | |||||||||
| Asset Quality Ratios | |||||||||||||||||||
| Nonaccrual and restructured loans and leases | |||||||||||||||||||
| as a percentage of total loans and leases | .31 | % | .31 | % | .32 | % | .37 | % | .39 | % | |||||||||
| Nonperforming assets as a percentage of: | |||||||||||||||||||
| Total assets | .27 | .28 | .29 | .33 | .36 | ||||||||||||||
| Loans and leases plus | |||||||||||||||||||
| foreclosed property | .40 | .41 | .43 | .48 | .52 | ||||||||||||||
| Net charge-offs as a percentage of | |||||||||||||||||||
| average loans and leases | .37 | .30 | .25 | .28 | .38 | ||||||||||||||
| Net charge-offs excluding specialized | |||||||||||||||||||
| lending as a percentage of average | |||||||||||||||||||
| loans and leases (1) | .25 | .19 | .16 | .17 | .27 | ||||||||||||||
| Allowance for loan and lease losses as | |||||||||||||||||||
| a percentage of loans and leases | 1.10 | 1.11 | 1.13 | 1.16 | 1.18 | ||||||||||||||
| Allowance for loan and lease losses as | |||||||||||||||||||
| a percentage of loans and leases | |||||||||||||||||||
| held for investment | 1.11 | 1.12 | 1.14 | 1.17 | 1.19 | ||||||||||||||
| Ratio of allowance for loan and lease losses to: | |||||||||||||||||||
| Net charge-offs | 3.02 | x | 3.79 | x | 4.53 | x | 4.22 | x | 3.15 | x | |||||||||
| Nonaccrual and restructured loans and leases | 3.60 | 3.54 | 3.51 | 3.14 | 2.99 | ||||||||||||||
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized. |
| (1) | Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 12 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Twelve Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/05 | 12/31/04 | $ | % | ||||||||||
| Allowance For Credit Losses | ||||||||||||||
| Beginning balance | $ | 828,301 | $ | 793,398 | $ | 34,903 | 4.4 | % | ||||||
| Allowance for acquired (sold) loans, net | (970 | ) | 20,909 | (21,879 | ) | NM | ||||||||
| Provision for credit losses | 217,263 | 249,269 | (32,006 | ) | (12.8 | ) | ||||||||
| Charge-offs | ||||||||||||||
| Commercial loans and leases | (77,668 | ) | (100,442 | ) | 22,774 | (22.7 | ) | |||||||
| Direct retail loans | (51,296 | ) | (48,152 | ) | (3,144 | ) | 6.5 | |||||||
| Sales finance loans | (88,312 | ) | (89,886 | ) | 1,574 | (1.8 | ) | |||||||
| Revolving credit loans | (54,418 | ) | (52,349 | ) | (2,069 | ) | 4.0 | |||||||
| Mortgage loans | (6,053 | ) | (5,850 | ) | (203 | ) | 3.5 | |||||||
| Total charge-offs | (277,747 | ) | (296,679 | ) | 18,932 | (6.4 | ) | |||||||
| Recoveries | ||||||||||||||
| Commercial loans and leases | 25,423 | 24,271 | 1,152 | 4.7 | ||||||||||
| Direct retail loans | 9,839 | 9,820 | 19 | .2 | ||||||||||
| Sales finance loans | 16,167 | 16,552 | (385 | ) | (2.3 | ) | ||||||||
| Revolving credit loans | 10,858 | 9,779 | 1,079 | 11.0 | ||||||||||
| Mortgage loans | 636 | 982 | (346 | ) | (35.2 | ) | ||||||||
| Total recoveries | 62,923 | 61,404 | 1,519 | 2.5 | ||||||||||
| Net charge-offs | (214,824 | ) | (235,275 | ) | 20,451 | 8.7 | ||||||||
| Ending balance | $ | 829,770 | $ | 828,301 | $ | 1,469 | .2 | % | ||||||
| Allowance For Credit Losses | ||||||||||||||
| Allowance for loan and lease losses | $ | 825,300 | $ | 804,932 | $ | 20,368 | 2.5 | % | ||||||
| Reserve for unfunded lending commitments | 4,470 | 23,369 | (18,899 | ) | (80.9 | ) | ||||||||
| Total | $ | 829,770 | $ | 828,301 | $ | 1,469 | .2 | % | ||||||
| Asset Quality Ratios | ||||||||||||||
| Net charge-offs as a percentage of | ||||||||||||||
| average loans and leases | .30 | % | .36 | % | ||||||||||
| Net charge-offs excluding specialized | ||||||||||||||
| lending as a percentage of average | ||||||||||||||
| loans and leases (1) | .19 | .24 | ||||||||||||
| Ratio of allowance for loan and lease losses to | ||||||||||||||
| net charge-offs | 3.84 | x | 3.42 | x | ||||||||||
| Percentage Increase (Decrease) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| QTD | Annualized Link QTD | YTD | |||||||||
| 4Q05 vs. 4Q04 | 4Q05 vs. 3Q05 | 2005 vs. 2004 | |||||||||
| PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR | |||||||||||
| PURCHASE ACQUISITIONS (2) | |||||||||||
| Average Balances | |||||||||||
| Commercial loans and leases | 9.2 | % | 9.2 | % | 7.9 | % | |||||
| Direct retail loans | 7.3 | 5.0 | 8.8 | ||||||||
| Sales finance loans | 6.0 | 1.8 | 3.6 | ||||||||
| Revolving credit loans | 5.5 | 8.0 | 6.0 | ||||||||
| Mortgage loans (3) | 18.5 | 14.8 | 11.5 | ||||||||
| Total loans and leases (3) | 10.1 | 8.8 | 8.4 | ||||||||
| Noninterest-bearing deposits | 7.3 | 6.0 | 9.8 | ||||||||
| Interest-bearing transaction accounts | 4.4 | 6.4 | 4.4 | ||||||||
| CDs and other time deposits | 18.1 | 3.1 | 9.8 | ||||||||
| Other deposits | 2.3 | 5.6 | 4.3 | ||||||||
| Total deposits | 9.8 | % | 4.7 | % | 7.5 | % | |||||
| PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS | |||||||||||
| BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2) | |||||||||||
| Net interest income - taxable equivalent | 6.2 | % | .5 | % | 4.3 | % | |||||
| Noninterest income | |||||||||||
| Service charges on deposits | 6.0 | 1.6 | 3.4 | ||||||||
| Mortgage banking income (4) | 22.7 | 55.5 | 7.9 | ||||||||
| Investment banking and brokerage fees and commissions | (0.8 | ) | (2.0 | ) | 4.5 | ||||||
| Trust revenue | 5.5 | 4.3 | 2.5 | ||||||||
| Insurance commissions | 9.9 | 25.1 | 3.7 | ||||||||
| Other nondeposit fees and commissions | 18.0 | 12.0 | 15.5 | ||||||||
| Securities gains (losses), net | NM | NM | NM | ||||||||
| Other income | 14.5 | 62.6 | 3.4 | ||||||||
| Total noninterest income (4) | 9.4 | 16.7 | 5.3 | ||||||||
| Noninterest expense | |||||||||||
| Personnel expense | 17.9 | 14.4 | 4.9 | ||||||||
| Occupancy and equipment expense | 3.1 | 22.4 | 0.7 | ||||||||
| Other noninterest expense | 7.1 | 21.6 | 5.1 | ||||||||
| Total noninterest expense | 12.4 | % | 17.6 | % | 4.4 | % | |||||
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized. |
| (1) | Excludes net charge-offs and average loans from BB&T's specialized lending subsidiaries. |
| (2) | Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2005 and 2004. |
| (3) | Adjusted for the average impact of $210 million and $1.0 billion in mortgage loans securitized in the fourth quarter of 2005 and third quarter of 2004, respectively. |
| (4) | Excludes the net impact of provisions for or recaptures of the impairment of mortgage servicing rights and gains or losses on mortgage servicing rights-related derivatives. |
| NM | - not meaningful. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 13 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||
| SELECTED MORTGAGE BANKING INFORMATION | |||||||||||||||||
| Residential Mortgage Servicing Rights (1): | |||||||||||||||||
| Ending balance | $ | 451,750 | $ | 447,942 | $ | 442,424 | $ | 432,618 | $ | 434,053 | |||||||
| Less: valuation allowance | (20,537 | ) | (50,034 | ) | (116,978 | ) | (56,484 | ) | (107,636 | ) | |||||||
| Net balance | 431,213 | 397,908 | 325,446 | 376,134 | 326,417 | ||||||||||||
| Mortgage Servicing Rights Valuation Allowance: | |||||||||||||||||
| Beginning balance | $ | 50,034 | $ | 116,978 | $ | 56,484 | $ | 107,636 | $ | 112,944 | |||||||
| Provisions for impairment | — | — | 61,161 | — | — | ||||||||||||
| Recaptures | (29,407 | ) | (66,666 | ) | — | (51,079 | ) | (404 | ) | ||||||||
| Other-than-temporary impairment | (90 | ) | (278 | ) | (667 | ) | (73 | ) | (4,904 | ) | |||||||
| Ending balance | 20,537 | 50,034 | 116,978 | 56,484 | 107,636 | ||||||||||||
| Residential Mortgage Loan Originations | $ | 2,450,434 | $ | 3,130,026 | $ | 2,687,824 | $ | 2,260,384 | $ | 2,370,483 | |||||||
| Residential Mortgage Servicing Portfolio: | |||||||||||||||||
| Loans serviced for others | $ | 26,624,810 | $ | 26,547,319 | $ | 26,579,866 | $ | 25,575,478 | $ | 25,569,089 | |||||||
| Bank owned loans serviced | 14,481,561 | 14,200,691 | 13,512,617 | 12,772,935 | 12,304,760 | ||||||||||||
| Total servicing portfolio | 41,106,371 | 40,748,010 | 40,092,483 | 38,348,413 | 37,873,849 | ||||||||||||
| Weighted Average Coupon Rate | 5.83 | % | 5.82 | % | 5.83 | % | 5.84 | % | 5.86 | % | |||||||
| Weighted Average Servicing Fee | .349 | .349 | .349 | .347 | .347 | ||||||||||||
| For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 9/30/05 | 6/30/05 | 3/31/05 | 12/31/04 | ||||||||||||
| RECONCILIATION TABLE | |||||||||||||||||
| Net income | $ | 429,574 | $ | 442,006 | $ | 386,805 | $ | 395,384 | $ | 416,884 | |||||||
| Merger-related items, net of tax | (3,771 | ) | (1,130 | ) | (249 | ) | (1,627 | ) | (1,076 | ) | |||||||
| Other, net of tax (4) | — | — | 26,619 | — | — | ||||||||||||
| Operating earnings | 425,803 | 440,876 | 413,175 | 393,757 | 415,808 | ||||||||||||
| Amortization of intangibles, net of tax | 18,305 | 16,718 | 18,026 | 17,705 | 18,557 | ||||||||||||
| Amortization of mark-to-market adjustments, net of tax | 4,758 | 4,756 | 4,758 | 4,367 | 3,877 | ||||||||||||
| Cash basis operating earnings | 448,866 | 462,350 | 435,959 | 415,829 | 438,242 | ||||||||||||
| Return on average assets | 1.58 | % | 1.65 | % | 1.50 | % | 1.60 | % | 1.68 | % | |||||||
| Effect of merger-related items, net of tax | (.01 | ) | (.01 | ) | — | (.01 | ) | — | |||||||||
| Effect of other, net of tax (4) | — | — | .10 | — | — | ||||||||||||
| Operating return on average assets | 1.57 | 1.64 | 1.60 | 1.59 | 1.68 | ||||||||||||
| Effect of amortization of intangibles, net of tax (2) | .14 | .15 | .15 | .15 | .16 | ||||||||||||
| Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
| net of tax | .02 | .02 | .02 | .02 | .02 | ||||||||||||
| Cash basis operating return on average | |||||||||||||||||
| tangible assets | 1.73 | 1.81 | 1.77 | 1.76 | 1.86 | ||||||||||||
| Return on average equity | 15.32 | % | 15.69 | % | 14.04 | % | 14.70 | % | 15.21 | % | |||||||
| Effect of merger-related items, net of tax | (.14 | ) | (.04 | ) | (.01 | ) | (.06 | ) | (.04 | ) | |||||||
| Effect of other, net of tax (4) | — | — | .97 | — | — | ||||||||||||
| Operating return on average equity | 15.18 | 15.65 | 15.00 | 14.64 | 15.17 | ||||||||||||
| Effect of amortization of intangibles, net of tax (2) | 12.40 | 12.62 | 12.52 | 12.07 | 12.36 | ||||||||||||
| Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
| net of tax | .30 | .29 | .30 | .29 | .24 | ||||||||||||
| Cash basis operating return on average | |||||||||||||||||
| tangible equity | 27.88 | 28.56 | 27.82 | 27.00 | 27.77 | ||||||||||||
| Efficiency ratio (taxable equivalent) (3) | 52.6 | % | 51.5 | % | 55.4 | % | 52.7 | % | 49.9 | % | |||||||
| Effect of merger-related items | .4 | .2 | — | .2 | .2 | ||||||||||||
| Effect of other (4) | — | — | (2.9 | ) | — | — | |||||||||||
| Operating efficiency ratio (3) | 53.0 | 51.7 | 52.5 | 52.9 | 50.1 | ||||||||||||
| Effect of amortization of intangibles | (1.9 | ) | (1.8 | ) | (1.9 | ) | (2.0 | ) | (2.1 | ) | |||||||
| Effect of amortization of mark-to-market adjustments | (.2 | ) | (.2 | ) | (.3 | ) | (.3 | ) | (.2 | ) | |||||||
| Cash basis operating efficiency ratio (3) | 50.9 | 49.7 | 50.3 | 50.6 | 47.8 | ||||||||||||
| Basic earnings per share | $ | .79 | $ | .81 | $ | .71 | $ | .72 | $ | .76 | |||||||
| Effect of merger-related items, net of tax | (.01 | ) | — | — | — | (.01 | ) | ||||||||||
| Effect of other, net of tax (4) | — | — | .05 | — | — | ||||||||||||
| Operating basic earnings per share | .78 | .81 | .76 | .72 | .75 | ||||||||||||
| Diluted earnings per share | $ | .78 | $ | .80 | $ | .70 | $ | .71 | $ | .75 | |||||||
| Effect of merger-related items, net of tax | — | — | — | — | — | ||||||||||||
| Effect of other, net of tax (4) | — | — | .05 | — | — | ||||||||||||
| Operating diluted earnings per share | .78 | .80 | .75 | .71 | .75 | ||||||||||||
| Effect of amortization of intangibles, net of tax | .03 | .03 | .03 | .03 | .03 | ||||||||||||
| Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
| net of tax | .01 | .01 | .01 | .01 | .01 | ||||||||||||
| Cash basis operating diluted earnings per share | .82 | .84 | .79 | .75 | .79 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Balances exclude commercial mortgage servicing rights totaling $20.1 million, $16.6 million, $16.2 million, $14.2 million and $14.3 million, as of December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively. |
| (2) | Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios. |
| (3) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Operating and cash basis ratios also exclude merger-related items and nonrecurring charges, where applicable. |
| (4) | Reflects a one-time charge related to the accounting for leases totaling $26.6 million, net of tax, in the second quarter of 2005. |
| QUARTERLY PERFORMANCE SUMMARY | Tom A. Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 14 | Investor Relations | FAX (336) 733-3132 | |||
| For the Twelve Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 12/31/05 | 12/31/04 | ||||||
| RECONCILIATION TABLE | ||||||||
| Net income | $ | 1,653,769 | $ | 1,558,375 | ||||
| Merger-related items, net of tax | (6,777 | ) | 3,454 | |||||
| Other, net of tax (3) | 26,619 | — | ||||||
| Operating earnings | 1,673,611 | 1,561,829 | ||||||
| Amortization of intangibles, net of tax | 70,754 | 67,264 | ||||||
| Amortization of mark-to-market adjustments, net of tax | 18,639 | 16,735 | ||||||
| Cash basis operating earnings | 1,763,004 | 1,645,828 | ||||||
| Return on average assets | 1.58 | % | 1.62 | % | ||||
| Effect of merger-related items, net of tax | (.01 | ) | — | |||||
| Effect of other, net of tax (3) | .03 | — | ||||||
| Operating return on average assets | 1.60 | 1.62 | ||||||
| Effect of amortization of intangibles, net of tax (1) | .15 | .16 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .02 | .01 | ||||||
| Cash basis operating return on average tangible assets | 1.77 | 1.79 | ||||||
| Return on average equity | 14.95 | % | 14.71 | % | ||||
| Effect of merger-related items, net of tax | (.07 | ) | .03 | |||||
| Effect of other, net of tax (3) | .24 | — | ||||||
| Operating return on average equity | 15.12 | 14.74 | ||||||
| Effect of amortization of intangibles, net of tax (1) | 12.41 | 12.15 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .29 | .28 | ||||||
| Cash basis operating return on average tangible equity | 27.82 | 27.17 | ||||||
| Efficiency ratio (taxable equivalent) (2) | 53.1 | % | 52.0 | % | ||||
| Effect of merger-related items | .2 | (.1 | ) | |||||
| Effect of other (3) | (.8 | ) | — | |||||
| Operating efficiency ratio (2) | 52.5 | 51.9 | ||||||
| Effect of amortization of intangibles | (1.9 | ) | (2.0 | ) | ||||
| Effect of amortization of mark-to-market adjustments | (.2 | ) | (.2 | ) | ||||
| Cash basis operating efficiency ratio (2) | 50.4 | 49.7 | ||||||
| Basic earnings per share | $ | 3.02 | $ | 2.82 | ||||
| Effect of merger-related items, net of tax | (.01 | ) | .01 | |||||
| Effect of other, net of tax (3) | .05 | — | ||||||
| Operating basic earnings per share | 3.06 | 2.83 | ||||||
| Diluted earnings per share | $ | 3.00 | $ | 2.80 | ||||
| Effect of merger-related items, net of tax | (.01 | ) | .01 | |||||
| Effect of other, net of tax (3) | .05 | — | ||||||
| Operating diluted earnings per share | 3.04 | 2.81 | ||||||
| Effect of amortization of intangibles, net of tax | .12 | .12 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .04 | .03 | ||||||
| Cash basis operating diluted earnings per share | 3.20 | 2.96 | ||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Reflects the effect of excluding average intangible assets from average assets and average equity to calculate cash basis ratios. |
| (2) | Excludes securities gains (losses), foreclosed property expense, provisions for or recaptures of the impairment of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Operating and cash basis ratios also exclude merger-related items and nonrecurring charges, where applicable. |
| (3) | Reflects a one-time charge related to the accounting for leases totaling $26.6 million, net of tax, in the second quarter of 2005. |
