July 20, 2006
FOR IMMEDIATE RELEASE
| Contacts: | ||
| ANALYSTS | MEDIA | |
| Tom Nicholson | Chris 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’s 2nd quarter EPS up 12.9%
Operating earnings per share total $.81
WINSTON-SALEM, N.C. — BB&T Corporation (NYSE: BBT) reported today net income for the second quarter of 2006 totaling $429.1 million, or $.79 per diluted share, compared with $386.8 million, or $.70 per diluted share, earned during the second quarter of 2005. These results reflect increases of 10.9% and 12.9%, respectively, compared to the second quarter last year.
BB&T’s second quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.53% and 15.34%, respectively, compared to prior year returns of 1.50% and 14.04%, respectively.
Operating earnings for the second quarter of 2006 totaled $436.3 million, or $.81 per diluted share, excluding $1.0 million in net after-tax merger-related charges and $6.2 million in after-tax equity-based compensation resulting from the adoption of Statement of Financial Accounting Standards No. 123(R) effective Jan. 1. Operating earnings for the second quarter of 2005 totaled $413.2 million, excluding $26.4 million in net after-tax merger-related credits and nonrecurring charges. These results reflect increases of 5.6% and 8.0%, respectively, compared to the same period last year.
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 charges or credits, equity-based compensation and nonrecurring items from earnings. Cash basis operating earnings totaled $454.8 million for the second quarter of 2006, an increase of 4.3% compared to the second quarter of 2005. Cash basis operating diluted earnings per share totaled $.84 for the second quarter of 2006, an increase of 6.3% compared to $.79 earned during the same period in 2005. Cash basis operating earnings for the second quarter of 2006 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.70% and 28.96%, respectively, compared to prior year returns of 1.77% and 27.82%, respectively.
“BB&T generated strong results for the second quarter of 2006 and I am very pleased with our growth in earnings and revenues, as well as our positive trends in loans and deposits,” said Chairman and Chief Executive Officer John A. Allison. “Our earnings growth was driven by a 7.2% increase in revenues, including an 11.2% increase in noninterest income, and continued excellent asset quality.
“The second quarter decline in our net interest margin was due to a continued flat yield curve environment and a management decision to more aggressively pursue retail deposits to fund loan growth and to fuel organic growth initiatives. While these events will negatively affect our margin, the resulting growth in deposit accounts will ultimately generate greater profitability.
“While our industry faces a number of challenges, I am very optimistic about BB&T’s current trends and strategic direction. I believe we are well-positioned to meet our performance goals for the year.”
For the first six months of 2006, BB&T’s net income was $860.6 million, an increase of 10.0% compared to $782.2 million earned in the first six months of 2005. Diluted earnings per share for the first half of 2006 totaled $1.59, an increase of 12.0% compared to the same period in 2005. Excluding merger-related charges or credits, equity-based compensation and nonrecurring items, operating earnings for the first half of 2006 totaled $864.0 million, or $1.59 per diluted share, an increase of 7.1% and 8.9%, respectively, compared to the first six months of 2005.
BB&T’s Noninterest Income up 11.2%
Noninterest income from BB&T’s fee generating businesses increased 11.2% during the second quarter of 2006 compared to 2005. Total noninterest income was $650.7 million for the current quarter and represents 40.8% of total revenues. This increase includes a record performance from BB&T’s insurance operations, improved revenues from other nondeposit fees and commissions, and growth in mortgage banking income.
Commissions from BB&T’s insurance operations improved to a record $214.1 million earned in the current quarter. This reflects an increase of 17.9% compared with $181.6 million earned in the second quarter of 2005. The increase was the result of growth in commissions from the sale of property and casualty coverage, and improved sales of employee benefits-related insurance products.
Other nondeposit fees and commissions totaled $111.5 million for the second quarter of 2006, an increase of 21.8% compared to the second quarter of 2005. This increase was generated primarily by growth in bankcard fees and debit card related services.
Revenues from mortgage banking operations totaled $29.1 million for the second quarter of 2006 compared to $12.4 million earned in the second quarter last year. This increase was primarily the result of fluctuations in the fair value of residential mortgage servicing rights and the related derivative hedge, as well as increased revenues from commercial mortgage banking operations, which increased $3.0 million, or 55.5%, compared to the second quarter of 2005.
Asset Quality Remains Excellent
BB&T’s asset quality remains excellent as net charge-offs declined during the second quarter of 2006. Nonperforming assets, as a percentage of total assets, were .27% at both June 30 and Dec. 31, 2005, down from .29% at June 30, 2005. Annualized net charge-offs were .23% of average loans and leases for the second quarter of 2006, down from .25% in the second quarter of 2005. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .12% of average loans and leases compared to .16% in the same quarter last year.
Loan Growth Continues to be Robust – Up 10.8%
Average loans and leases totaled $78.0 billion for the second quarter of 2006, reflecting an increase of $7.6 billion, or 10.8% compared to the second quarter of 2005. This increase was composed of growth in average commercial loans and leases, which increased $3.6 billion, or 10.5%; average mortgage loans, which increased $2.3 billion, or 17.6%; average consumer loans, which increased $963.5 million, or 4.7%; and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $693.0 million, or 27.8% compared to the second quarter last year.
BB&T Produces Strong Deposit Growth
Average deposits totaled $75.6 billion for the second quarter of 2006, an increase of 9.7% compared to $68.9 billion for the second quarter of 2005. Average retail deposit growth was led by client certificates of deposit, which increased $4.2 billion, or 24.2%, and interest checking, which increased $390.8 million, or 21.3%. These increases reflect the Company’s focus on growing retail deposits throughout its footprint. During the first six months of 2006, BB&T generated more than 84,000 net new transaction accounts.
BB&T Increases Quarterly Cash Dividend – Named “Dividend Achiever” Again
On June 27, BB&T’s Board of Directors approved a 10.5% increase in the quarterly cash dividend paid to shareholders. The increase, to $.42 per share, marks the 35th consecutive year that BB&T has raised its cash dividend to shareholders. BB&T has paid a cash dividend to shareholders every year since 1903. The dividend will be paid on Aug. 1 to shareholders of record on July 14.
On May 4, BB&T announced that it had been named to the elite 2006 Dividend Achievers list by Mergent Inc. The list is composed of publicly traded companies that have increased their cash dividends every year for at least the past 10 years. The 2006 Dividend Achievers list consists of 318 firms out of more than 10,000 North-American listed, dividend-paying publicly traded companies tracked by Mergent. BB&T is in the top 15% of all Dividend Achievers based on its history of consecutive yearly dividend increases. The five-year compound growth rate for BB&T’s quarterly dividend payment is 10.1%.
BB&T Completes Acquisition of Main Street Banks, Inc.
On June 1, BB&T completed its merger with Main Street Banks, Inc. headquartered in Atlanta, Ga. Main Street has $2.4 billion in assets and operates 24 full-service banking offices in the Atlanta and Athens, Ga., metro areas – some of the most economically vibrant and fastest growing markets in the country. Main Street’s offices will continue to operate under the Main Street brand until the systems conversion, which is scheduled for September.
First Citizens Bancorp’s Shareholders Approve Merger with BB&T
The shareholders of First Citizens Bancorp of Cleveland, Tenn., approved the merger with BB&T Corporation on July 11. With approximately $700 million in assets, First Citizens Bancorp operates 16 full-service banking centers in Tennessee, two in North Carolina and one in Georgia. The merger is expected to be completed Aug. 1.
At June 30, BB&T had $116.3 billion in assets and operated 1,443 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 July 19 was $41.92 per share.
For additional information about BB&T’s financial performance, company news, products and services, please visit our Web site atwww.BBT.com.
Earnings Webcast
To hear a live webcast of BB&T’s second quarter 2006 earnings conference call at 11:00 a.m. (EDT) today, please visit our Web site atwww.BBT.com. Replays of the conference call will be available through our Web site until 5 p.m. (EDT) on Friday, Aug. 4.
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This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted 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 also exclude equity-based compensation in order to make the 2006 results comparable with prior periods presented and 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 may 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 may 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 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) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| OPERATING EARNINGS STATEMENTS (1) | ||||||||||||||
| Interest income - taxable equivalent | $ | 1,690,448 | $ | 1,353,216 | $ | 337,232 | 24.9 | % | ||||||
| Interest expense | 751,846 | 455,719 | 296,127 | 65.0 | ||||||||||
| Net interest income - taxable equivalent | 938,602 | 897,497 | 41,105 | 4.6 | ||||||||||
| Less: Taxable equivalent adjustment | 21,833 | 20,532 | 1,301 | 6.3 | ||||||||||
| Net interest income | 916,769 | 876,965 | 39,804 | 4.5 | ||||||||||
| Provision for credit losses | 57,732 | 49,424 | 8,308 | 16.8 | ||||||||||
| Net interest income after provision for credit losses | 859,037 | 827,541 | 31,496 | 3.8 | ||||||||||
| Noninterest income | 650,677 | 583,902 | 66,775 | 11.4 | ||||||||||
| Noninterest expense | 847,874 | 787,734 | 60,140 | 7.6 | ||||||||||
| Operating earnings before income taxes | 661,840 | 623,709 | 38,131 | 6.1 | ||||||||||
| Provision for income taxes | 225,513 | 210,534 | 14,979 | 7.1 | ||||||||||
| Operating earnings (1) | $ | 436,327 | $ | 413,175 | $ | 23,152 | 5.6 | % | ||||||
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Basic earnings | $ | .81 | $ | .76 | $ | .05 | 6.6 | % | ||||||
| Diluted earnings | .81 | .75 | .06 | 8.0 | ||||||||||
| Weighted average shares - Basic | 536,882,392 | 547,089,165 | ||||||||||||
| Diluted | 541,607,530 | 551,245,112 | ||||||||||||
| Dividends paid per share | $ | .38 | $ | .35 | $ | .03 | 8.6 | % | ||||||
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Return on average assets | 1.56 | % | 1.60 | % | ||||||||||
| Return on average equity | 15.60 | 15.00 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.76 | 3.92 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.2 | 52.5 | ||||||||||||
| CASH BASIS PERFORMANCE | ||||||||||||||
| BASED ON OPERATING EARNINGS (1)(3) | ||||||||||||||
| Cash basis operating earnings | $ | 454,775 | $ | 435,959 | $ | 18,816 | 4.3 | % | ||||||
| Diluted earnings per share | .84 | .79 | .05 | 6.3 | ||||||||||
| Return on average tangible assets | 1.70 | % | 1.77 | % | ||||||||||
| Return on average tangible equity | 28.96 | 27.82 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 51.5 | 50.3 | ||||||||||||
| For the Three Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| INCOME STATEMENTS | ||||||||||||||
| Interest income | $ | 1,668,615 | $ | 1,332,684 | $ | 335,931 | 25.2 | % | ||||||
| Interest expense | 751,846 | 455,719 | 296,127 | 65.0 | ||||||||||
| Net interest income | 916,769 | 876,965 | 39,804 | 4.5 | ||||||||||
| Provision for credit losses | 57,732 | 49,424 | 8,308 | 16.8 | ||||||||||
| Net interest income after provision for credit losses | 859,037 | 827,541 | 31,496 | 3.8 | ||||||||||
| Noninterest income | 650,677 | 584,919 | 65,758 | 11.2 | ||||||||||
| Noninterest expense | 859,609 | 831,288 | 28,321 | 3.4 | ||||||||||
| Income before income taxes | 650,105 | 581,172 | 68,933 | 11.9 | ||||||||||
| Provision for income taxes | 221,005 | 194,367 | 26,638 | 13.7 | ||||||||||
| Net income | $ | 429,100 | $ | 386,805 | $ | 42,295 | 10.9 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | .80 | $ | .71 | $ | .09 | 12.7 | % | ||||||
| Diluted earnings | .79 | .70 | .09 | 12.9 | ||||||||||
| Weighted average shares - Basic | 536,882,392 | 547,089,165 | ||||||||||||
| Diluted | 541,607,530 | 551,245,112 | ||||||||||||
| PERFORMANCE RATIOS BASED ON NET INCOME | ||||||||||||||
| Return on average assets | 1.53 | % | 1.50 | % | ||||||||||
| Return on average equity | 15.34 | 14.04 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 54.0 | 55.4 | ||||||||||||
| NOTES: | Applicable ratios are annualized. | ||
| (1) | Operating earnings exclude the effect of merger-related charges or credits, equity-based compensation and nonrecurring items. These amounts totaled $7.2 million and $26.4 million, net of tax, in the second quarters of 2006 and 2005, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation 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, equity-based compensation 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 Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 6 | Investor Relations | FAX (336) 733-3132 | |||
| For the Six Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| OPERATING EARNINGS STATEMENTS (1) | ||||||||||||||
| Interest income - taxable equivalent | $ | 3,268,460 | $ | 2,616,870 | $ | 651,590 | 24.9 | % | ||||||
| Interest expense | 1,410,464 | 850,028 | 560,436 | 65.9 | ||||||||||
| Net interest income - taxable equivalent | 1,857,996 | 1,766,842 | 91,154 | 5.2 | ||||||||||
| Less: Taxable equivalent adjustment | 43,175 | 40,694 | 2,481 | 6.1 | ||||||||||
| Net interest income | 1,814,821 | 1,726,148 | 88,673 | 5.1 | ||||||||||
| Provision for credit losses | 105,303 | 90,469 | 14,834 | 16.4 | ||||||||||
| Net interest income after provision for credit losses | 1,709,518 | 1,635,679 | 73,839 | 4.5 | ||||||||||
| Noninterest income | 1,258,872 | 1,100,523 | 158,349 | 14.4 | ||||||||||
| Noninterest expense | 1,671,705 | 1,520,997 | 150,708 | 9.9 | ||||||||||
| Operating earnings before income taxes | 1,296,685 | 1,215,205 | 81,480 | 6.7 | ||||||||||
| Provision for income taxes | 432,669 | 408,273 | 24,396 | 6.0 | ||||||||||
| Operating earnings (1) | $ | 864,016 | $ | 806,932 | $ | 57,084 | 7.1 | % | ||||||
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Basic earnings | $ | 1.60 | $ | 1.47 | $ | .13 | 8.8 | % | ||||||
| Diluted earnings | 1.59 | 1.46 | .13 | 8.9 | ||||||||||
| Weighted average shares - Basic | 538,409,049 | 548,179,529 | ||||||||||||
| Diluted | 542,297,340 | 552,443,239 | ||||||||||||
| Dividends paid per share | $ | .76 | $ | .70 | $ | .06 | 8.6 | % | ||||||
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | ||||||||||||||
| Return on average assets | 1.57 | % | 1.59 | % | ||||||||||
| Return on average equity | 15.59 | 14.82 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.79 | 3.94 | ||||||||||||
| Noninterest income as a percentage of | ||||||||||||||
| total income (taxable equivalent) (2) | 40.2 | 38.3 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.5 | 52.7 | ||||||||||||
| CASH BASIS PERFORMANCE | ||||||||||||||
| BASED ON OPERATING EARNINGS (1)(3) | ||||||||||||||
| Cash basis operating earnings | $ | 901,423 | $ | 851,788 | $ | 49,635 | 5.8 | % | ||||||
| Diluted earnings per share | 1.66 | 1.54 | .12 | 7.8 | ||||||||||
| Return on average tangible assets | 1.72 | % | 1.76 | % | ||||||||||
| Return on average tangible equity | 28.69 | 27.41 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 51.7 | 50.5 | ||||||||||||
| For the Six Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| INCOME STATEMENTS | ||||||||||||||
| Interest income | $ | 3,225,285 | $ | 2,576,176 | $ | 649,109 | 25.2 | % | ||||||
| Interest expense | 1,410,464 | 850,028 | 560,436 | 65.9 | ||||||||||
| Net interest income | 1,814,821 | 1,726,148 | 88,673 | 5.1 | ||||||||||
| Provision for credit losses | 105,303 | 90,469 | 14,834 | 16.4 | ||||||||||
| Net interest income after provision for credit losses | 1,709,518 | 1,635,679 | 73,839 | 4.5 | ||||||||||
| Noninterest income | 1,258,872 | 1,101,540 | 157,332 | 14.3 | ||||||||||
| Noninterest expense | 1,678,790 | 1,561,994 | 116,796 | 7.5 | ||||||||||
| Income before income taxes | 1,289,600 | 1,175,225 | 114,375 | 9.7 | ||||||||||
| Provision for income taxes | 428,987 | 393,036 | 35,951 | 9.1 | ||||||||||
| Net income | $ | 860,613 | $ | 782,189 | $ | 78,424 | 10.0 | % | ||||||
| PER SHARE DATA | ||||||||||||||
| Basic earnings | $ | 1.60 | $ | 1.43 | $ | .17 | 11.9 | % | ||||||
| Diluted earnings | 1.59 | 1.42 | .17 | 12.0 | ||||||||||
| Weighted average shares - Basic | 538,409,049 | 548,179,529 | ||||||||||||
| Diluted | 542,297,340 | 552,443,239 | ||||||||||||
| PERFORMANCE RATIOS BASED ON NET INCOME | ||||||||||||||
| Return on average assets | 1.57 | % | 1.55 | % | ||||||||||
| Return on average equity | 15.53 | 14.37 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.7 | 54.1 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Operating earnings exclude the effect of merger-related charges or credits, equity-based compensation and nonrecurring items. These amounts totaled $3.4 million and $24.7 million, net of tax, in the first six months of 2006 and 2005, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation 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, equity-based compensation 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 Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 7 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Six Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| End of period balances | ||||||||||||||
| Cash and due from banks | $ | 2,159,857 | $ | 2,030,082 | $ | 129,775 | 6.4 | % | ||||||
| Interest-bearing deposits with banks | 561,667 | 434,772 | 126,895 | 29.2 | ||||||||||
| Federal funds sold and other earning assets | 398,509 | 364,038 | 34,471 | 9.5 | ||||||||||
| Securities available for sale | 20,090,945 | 20,123,465 | (32,520 | ) | (.2 | ) | ||||||||
| Trading securities | 918,621 | 675,146 | 243,475 | 36.1 | ||||||||||
| Total securities | 21,009,566 | 20,798,611 | 210,955 | 1.0 | ||||||||||
| Commercial loans and leases | 39,691,954 | 35,056,980 | 4,634,974 | 13.2 | ||||||||||
| Direct retail loans | 14,908,991 | 14,094,081 | 814,910 | 5.8 | ||||||||||
| Sales finance loans | 5,378,205 | 5,216,027 | 162,178 | 3.1 | ||||||||||
| Revolving credit loans | 1,327,623 | 1,271,395 | 56,228 | 4.4 | ||||||||||
| Mortgage loans | 15,671,640 | 13,512,617 | 2,159,023 | 16.0 | ||||||||||
| Specialized lending | 3,305,220 | 2,589,516 | 715,704 | 27.6 | ||||||||||
| Total loans and leases | 80,283,633 | 71,740,616 | 8,543,017 | 11.9 | ||||||||||
| Allowance for loan and lease losses | 869,880 | 809,318 | 60,562 | 7.5 | ||||||||||
| Total earning assets | 103,097,439 | 93,512,746 | 9,584,693 | 10.2 | ||||||||||
| Premises and equipment, net | 1,342,229 | 1,263,467 | 78,762 | 6.2 | ||||||||||
| Goodwill | 4,730,294 | 4,233,719 | 496,575 | 11.7 | ||||||||||
| Core deposit and other intangibles | 493,463 | 535,965 | (42,502 | ) | (7.9 | ) | ||||||||
| Other assets | 6,174,392 | 5,243,372 | 931,020 | 17.8 | ||||||||||
| Total assets | 116,283,730 | 105,835,324 | 10,448,406 | 9.9 | ||||||||||
| Noninterest-bearing deposits | 13,625,502 | 13,197,792 | 427,710 | 3.2 | ||||||||||
| Interest checking | 1,539,064 | 1,512,588 | 26,476 | 1.8 | ||||||||||
| Other client deposits | 32,344,438 | 29,642,503 | 2,701,935 | 9.1 | ||||||||||
| Client certificates of deposit | 23,704,122 | 17,793,434 | 5,910,688 | 33.2 | ||||||||||
| Other interest-bearing deposits | 7,299,675 | 9,684,042 | (2,384,367 | ) | (24.6 | ) | ||||||||
| Total deposits | 78,512,801 | 71,830,359 | 6,682,442 | 9.3 | ||||||||||
| Fed funds purchased, repos and other borrowings | 6,797,108 | 7,137,762 | (340,654 | ) | (4.8 | ) | ||||||||
| Long-term debt | 15,195,145 | 11,955,683 | 3,239,462 | 27.1 | ||||||||||
| Total interest-bearing liabilities | 86,879,552 | 77,726,012 | 9,153,540 | 11.8 | ||||||||||
| Other liabilities | 4,614,563 | 3,821,153 | 793,410 | 20.8 | ||||||||||
| Total liabilities | 105,119,617 | 94,744,957 | 10,374,660 | 11.0 | ||||||||||
| Total shareholders' equity | $ | 11,164,113 | $ | 11,090,367 | $ | 73,746 | .7 | % | ||||||
| Average balances | ||||||||||||||
| Securities, at amortized cost | $ | 21,018,484 | $ | 20,113,282 | $ | 905,202 | 4.5 | % | ||||||
| Commercial loans and leases | 37,546,348 | 34,162,337 | 3,384,011 | 9.9 | ||||||||||
| Direct retail loans | 14,603,305 | 13,789,011 | 814,294 | 5.9 | ||||||||||
| Sales finance loans | 5,229,107 | 5,114,471 | 114,636 | 2.2 | ||||||||||
| Revolving credit loans | 1,312,626 | 1,250,225 | 62,401 | 5.0 | ||||||||||
| Mortgage loans | 15,008,368 | 12,765,730 | 2,242,638 | 17.6 | ||||||||||
| Specialized lending | 3,017,532 | 2,405,133 | 612,399 | 25.5 | ||||||||||
| Total loans and leases | 76,717,286 | 69,486,907 | 7,230,379 | 10.4 | ||||||||||
| Allowance for loan and lease losses | 840,021 | 809,513 | 30,508 | 3.8 | ||||||||||
| Other earning assets | 873,717 | 639,001 | 234,716 | 36.7 | ||||||||||
| Total earning assets | 98,609,487 | 90,239,190 | 8,370,297 | 9.3 | ||||||||||
| Total assets | 110,766,561 | 102,080,134 | 8,686,427 | 8.5 | ||||||||||
| Noninterest-bearing deposits | 13,016,386 | 12,506,333 | 510,053 | 4.1 | ||||||||||
| Interest checking | 2,066,357 | 1,747,115 | 319,242 | 18.3 | ||||||||||
| Other client deposits | 30,768,442 | 29,676,723 | 1,091,719 | 3.7 | ||||||||||
| Client certificates of deposit | 20,767,822 | 17,427,113 | 3,340,709 | 19.2 | ||||||||||
| Other interest-bearing deposits | 8,297,372 | 6,778,995 | 1,518,377 | 22.4 | ||||||||||
| Total deposits | 74,916,379 | 68,136,279 | 6,780,100 | 10.0 | ||||||||||
| Fed funds purchased, repos and other borrowings | 7,098,323 | 7,655,154 | (556,831 | ) | (7.3 | ) | ||||||||
| Long-term debt | 13,470,359 | 11,495,647 | 1,974,712 | 17.2 | ||||||||||
| Total interest-bearing liabilities | 82,468,675 | 74,780,747 | 7,687,928 | 10.3 | ||||||||||
| Total shareholders' equity | $ | 11,178,038 | $ | 10,977,777 | $ | 200,261 | 1.8 | % | ||||||
| As of / For the Quarter Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | |||||||||||||||
| MISCELLANEOUS INFORMATION | ||||||||||||||||||||
| Unrealized depreciation on | ||||||||||||||||||||
| securities available for sale, net of tax | $ | (535,078 | ) | $ | (449,770 | ) | $ | (337,578 | ) | $ | (266,690 | ) | $ | (109,439 | ) | |||||
| Derivatives (notional value) | 24,282,135 | 21,133,941 | 23,679,972 | 26,131,167 | 25,976,092 | |||||||||||||||
| Fair value of derivatives portfolio | (215,469 | ) | (134,558 | ) | (10,600 | ) | (1,869 | ) | 157,437 | |||||||||||
| Common stock prices: | High | 43.46 | 42.85 | 43.92 | 43.00 | 40.95 | ||||||||||||||
| Low | 39.09 | 38.24 | 37.39 | 38.56 | 37.04 | |||||||||||||||
| End of period | 41.59 | 39.20 | 41.91 | 39.05 | 39.97 | |||||||||||||||
| Weighted average shares - | Basic | 536,882,392 | 539,952,669 | 543,879,921 | 547,467,864 | 547,089,165 | ||||||||||||||
| Diluted | 541,607,530 | 543,435,830 | 548,607,865 | 552,058,757 | 551,245,112 | |||||||||||||||
| End of period shares outstanding | 536,895,965 | 535,588,093 | 543,102,080 | 548,051,351 | 546,796,870 | |||||||||||||||
| End of period banking offices | 1,443 | 1,409 | 1,404 | 1,402 | 1,407 | |||||||||||||||
| ATMs | 2,057 | 1,964 | 1,951 | 1,944 | 1,929 | |||||||||||||||
| FTEs | 29,016 | 28,300 | 27,745 | 27,080 | 26,945 | |||||||||||||||
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. |
| QUARTERLY PERFORMANCE SUMMARY | Tom 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) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| OPERATING EARNINGS STATEMENTS (1) | |||||||||||||||||
| Interest income - taxable equivalent | |||||||||||||||||
| Interest and fees on loans and leases | $ | 1,452,022 | $ | 1,341,049 | $ | 1,290,568 | $ | 1,227,374 | $ | 1,135,417 | |||||||
| Interest and dividends on securities | 228,204 | 229,743 | 223,240 | 217,507 | 212,613 | ||||||||||||
| Interest on short-term investments | 10,222 | 7,220 | 6,609 | 6,331 | 5,186 | ||||||||||||
| Total interest income - taxable equivalent | 1,690,448 | 1,578,012 | 1,520,417 | 1,451,212 | 1,353,216 | ||||||||||||
| Interest expense | |||||||||||||||||
| Interest on deposits | 497,238 | 438,420 | 387,763 | 343,489 | 279,283 | ||||||||||||
| Interest on fed funds purchased, repos and other borrowings | 80,560 | 65,081 | 65,371 | 58,169 | 58,546 | ||||||||||||
| Interest on long-term debt | 174,048 | 155,117 | 146,350 | 129,799 | 117,890 | ||||||||||||
| Total interest expense | 751,846 | 658,618 | 599,484 | 531,457 | 455,719 | ||||||||||||
| Net interest income - taxable equivalent | 938,602 | 919,394 | 920,933 | 919,755 | 897,497 | ||||||||||||
| Less: Taxable equivalent adjustment | 21,833 | 21,342 | 21,200 | 20,763 | 20,532 | ||||||||||||
| Net interest income | 916,769 | 898,052 | 899,733 | 898,992 | 876,965 | ||||||||||||
| Provision for credit losses | 57,732 | 47,571 | 69,329 | 57,465 | 49,424 | ||||||||||||
| Net interest income after provision for | |||||||||||||||||
| credit losses | 859,037 | 850,481 | 830,404 | 841,527 | 827,541 | ||||||||||||
| Noninterest income | |||||||||||||||||
| Insurance commissions | 214,087 | 176,512 | 197,372 | 182,915 | 181,612 | ||||||||||||
| Service charges on deposits | 138,112 | 131,241 | 141,645 | 141,072 | 139,166 | ||||||||||||
| Other nondeposit fees and commissions | 111,489 | 101,635 | 100,157 | 97,208 | 91,558 | ||||||||||||
| Investment banking and brokerage fees and commissions | 78,220 | 81,311 | 69,682 | 70,036 | 81,046 | ||||||||||||
| Trust revenue | 37,739 | 37,020 | 36,949 | 36,552 | 36,722 | ||||||||||||
| Mortgage banking income | 29,128 | 32,295 | 25,357 | 35,840 | 12,367 | ||||||||||||
| Securities gains (losses), net | 153 | 2 | (81 | ) | 193 | (6 | ) | ||||||||||
| Other noninterest income | 41,749 | 48,179 | 47,881 | 41,304 | 41,437 | ||||||||||||
| Total noninterest income | 650,677 | 608,195 | 618,962 | 605,120 | 583,902 | ||||||||||||
| Noninterest expense | |||||||||||||||||
| Personnel expense | 495,454 | 487,467 | 468,098 | 451,260 | 450,730 | ||||||||||||
| Occupancy and equipment expense | 109,707 | 107,785 | 112,018 | 105,656 | 104,122 | ||||||||||||
| Foreclosed property expense | 3,929 | 3,912 | 5,809 | 6,322 | 5,327 | ||||||||||||
| Amortization of intangibles | 25,225 | 25,108 | 29,054 | 26,540 | 28,611 | ||||||||||||
| Loss on early extinguishment of debt | — | — | — | — | 2,943 | ||||||||||||
| Other noninterest expense | 213,559 | 199,559 | 209,008 | 198,522 | 196,001 | ||||||||||||
| Total noninterest expense | 847,874 | 823,831 | 823,987 | 788,300 | 787,734 | ||||||||||||
| Operating earnings before income taxes | 661,840 | 634,845 | 625,379 | 658,347 | 623,709 | ||||||||||||
| Provision for income taxes | 225,513 | 207,156 | 199,576 | 217,471 | 210,534 | ||||||||||||
| Operating earnings (1) | $ | 436,327 | $ | 427,689 | $ | 425,803 | $ | 440,876 | $ | 413,175 | |||||||
| PER SHARE DATA BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) | |||||||||||||||||
| Basic earnings | $ | .81 | $ | .79 | $ | .78 | $ | .81 | $ | .76 | |||||||
| Diluted earnings | .81 | .79 | .78 | .80 | .75 | ||||||||||||
| Dividends paid per share | .38 | .38 | .38 | .38 | .35 | ||||||||||||
| PERFORMANCE RATIOS BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) | |||||||||||||||||
| Return on average assets | 1.56 | % | 1.59 | % | 1.57 | % | 1.64 | % | 1.60 | % | |||||||
| Return on average equity | 15.60 | 15.58 | 15.18 | 15.65 | 15.00 | ||||||||||||
| Net yield on earning assets (taxable equivalent) | 3.76 | 3.82 | 3.82 | 3.88 | 3.92 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 53.2 | 53.8 | 53.0 | 51.7 | 52.5 | ||||||||||||
| Noninterest income as a percentage of | |||||||||||||||||
| total income (taxable equivalent) (2) | 40.8 | 39.7 | 40.3 | 39.2 | 39.8 | ||||||||||||
| Average earning assets as a percentage of | |||||||||||||||||
| average total assets | 89.0 | 89.0 | 88.9 | 88.7 | 88.4 | ||||||||||||
| Average loans and leases as a percentage of | |||||||||||||||||
| average deposits | 103.1 | 101.7 | 101.9 | 100.9 | 102.1 | ||||||||||||
| CASH BASIS PERFORMANCE BASED ON | |||||||||||||||||
| OPERATING EARNINGS (1) (3) | |||||||||||||||||
| Cash basis operating earnings | $ | 454,775 | $ | 446,648 | $ | 448,866 | $ | 462,350 | $ | 435,959 | |||||||
| Diluted earnings per share | .84 | .82 | .82 | .84 | .79 | ||||||||||||
| Return on average tangible assets | 1.70 | % | 1.74 | % | 1.73 | % | 1.81 | % | 1.77 | % | |||||||
| Return on average tangible equity | 28.96 | 28.41 | 27.88 | 28.56 | 27.82 | ||||||||||||
| Efficiency ratio (taxable equivalent) (2) | 51.5 | 52.0 | 50.9 | 49.7 | 50.3 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Operating earnings exclude the effect of merger-related charges or credits, equity-based compensation and nonrecurring items. These amounts totaled $7.2 million, $(3.8 million), $(3.8 million), $(1.1 million) and $26.4 million, net of tax, for the quarters ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005, and June 30, 2005, respectively. See Reconciliation Tables included herein. |
| (2) | Excludes securities gains (losses), foreclosed property expense, increases or decreases in the valuation 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, equity-based compensation 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 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) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| INCOME STATEMENTS | |||||||||||||||||
| Interest income | |||||||||||||||||
| Interest and fees on loans and leases | $ | 1,443,972 | $ | 1,333,545 | $ | 1,283,225 | $ | 1,220,102 | $ | 1,128,331 | |||||||
| Interest and dividends on securities | 214,421 | 215,905 | 209,383 | 204,016 | 199,167 | ||||||||||||
| Interest on short-term investments | 10,222 | 7,220 | 6,609 | 6,331 | 5,186 | ||||||||||||
| Total interest income | 1,668,615 | 1,556,670 | 1,499,217 | 1,430,449 | 1,332,684 | ||||||||||||
| Interest expense | |||||||||||||||||
| Interest on deposits | 497,238 | 438,420 | 387,763 | 343,489 | 279,283 | ||||||||||||
| Interest on fed funds purchased, repos and other borrowings | 80,560 | 65,081 | 65,371 | 58,169 | 58,546 | ||||||||||||
| Interest on long-term debt | 174,048 | 155,117 | 146,350 | 129,799 | 117,890 | ||||||||||||
| Total interest expense | 751,846 | 658,618 | 599,484 | 531,457 | 455,719 | ||||||||||||
| Net interest income | 916,769 | 898,052 | 899,733 | 898,992 | 876,965 | ||||||||||||
| Provision for credit losses | 57,732 | 47,571 | 69,329 | 57,465 | 49,424 | ||||||||||||
| Net interest income after provision for | |||||||||||||||||
| credit losses | 859,037 | 850,481 | 830,404 | 841,527 | 827,541 | ||||||||||||
| Noninterest income | |||||||||||||||||
| Insurance commissions | 214,087 | 176,512 | 197,372 | 182,915 | 181,612 | ||||||||||||
| Service charges on deposits | 138,112 | 131,241 | 141,645 | 141,072 | 139,166 | ||||||||||||
| Other nondeposit fees and commissions | 111,489 | 101,635 | 100,157 | 97,208 | 91,558 | ||||||||||||
| Investment banking and brokerage fees and commissions | 78,220 | 81,311 | 69,682 | 70,036 | 81,046 | ||||||||||||
| Trust revenue | 37,739 | 37,020 | 36,949 | 36,552 | 36,722 | ||||||||||||
| Mortgage banking income | 29,128 | 32,295 | 25,357 | 35,840 | 12,367 | ||||||||||||
| Securities gains (losses), net | 153 | 2 | (81 | ) | 193 | (6 | ) | ||||||||||
| Other noninterest income | 41,749 | 48,179 | 47,881 | 41,304 | 42,454 | ||||||||||||
| Total noninterest income | 650,677 | 608,195 | 618,962 | 605,120 | 584,919 | ||||||||||||
| Noninterest expense | |||||||||||||||||
| Personnel expense | 495,454 | 487,467 | 468,098 | 451,260 | 450,730 | ||||||||||||
| Equity-based compensation | 10,104 | 26,532 | — | — | — | ||||||||||||
| Occupancy and equipment expense | 109,707 | 107,785 | 112,018 | 105,656 | 148,080 | ||||||||||||
| Foreclosed property expense | 3,929 | 3,912 | 5,809 | 6,322 | 5,327 | ||||||||||||
| Amortization of intangibles | 25,225 | 25,108 | 29,054 | 26,540 | 28,611 | ||||||||||||
| Merger-related and restructuring charges (credits), net | 1,631 | (2,976 | ) | (5,956 | ) | (1,824 | ) | (404 | ) | ||||||||
| Loss on early extinguishment of debt | — | — | — | — | 2,943 | ||||||||||||
| Other noninterest expense | 213,559 | 171,353 | 209,008 | 198,522 | 196,001 | ||||||||||||
| Total noninterest expense | 859,609 | 819,181 | 818,031 | 786,476 | 831,288 | ||||||||||||
| Income before income taxes | 650,105 | 639,495 | 631,335 | 660,171 | 581,172 | ||||||||||||
| Provision for income taxes | 221,005 | 207,982 | 201,761 | 218,165 | 194,367 | ||||||||||||
| Net income | $ | 429,100 | $ | 431,513 | $ | 429,574 | $ | 442,006 | $ | 386,805 | |||||||
| PER SHARE DATA | |||||||||||||||||
| Basic earnings | $ | .80 | $ | .80 | $ | .79 | $ | .81 | $ | .71 | |||||||
| Diluted earnings | .79 | .79 | .78 | .80 | .70 | ||||||||||||
| For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| ANNUALIZED INTEREST YIELDS / RATES (1) | |||||||||||||||||
| Interest income | |||||||||||||||||
| Securities: | |||||||||||||||||
| U.S. Treasury securities | 3.19 | % | 3.11 | % | 2.95 | % | 2.94 | % | 3.11 | % | |||||||
| U.S. government-sponsored entity securities | 3.96 | 3.95 | 3.87 | 3.75 | 3.76 | ||||||||||||
| Mortgage-backed securities | 4.83 | 4.81 | 4.76 | 4.73 | 4.72 | ||||||||||||
| States and political subdivisions | 6.84 | 6.82 | 6.81 | 6.74 | 6.66 | ||||||||||||
| Other securities | 5.25 | 6.01 | 5.41 | 4.96 | 4.87 | ||||||||||||
| Trading securities | 2.94 | 3.70 | 3.17 | 2.82 | 2.05 | ||||||||||||
| Total securities | 4.33 | 4.39 | 4.29 | 4.18 | 4.13 | ||||||||||||
| Loans: | |||||||||||||||||
| Commercial loans and leases | 7.73 | 7.39 | 7.01 | 6.71 | 6.33 | ||||||||||||
| Consumer loans | 7.14 | 6.95 | 6.69 | 6.54 | 6.37 | ||||||||||||
| Mortgage loans | 5.66 | 5.50 | 5.46 | 5.45 | 5.42 | ||||||||||||
| Specialized lending | 15.12 | 15.14 | 14.63 | 14.69 | 14.60 | ||||||||||||
| Total loans | 7.47 | 7.19 | 6.90 | 6.71 | 6.47 | ||||||||||||
| Other earning assets | 4.23 | 3.76 | 3.29 | 3.16 | 3.16 | ||||||||||||
| Total earning assets | 6.77 | 6.56 | 6.30 | 6.12 | 5.92 | ||||||||||||
| Interest expense: | |||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||
| Interest checking | 1.77 | 1.38 | 1.13 | .78 | .68 | ||||||||||||
| Other client deposits | 2.29 | 2.03 | 1.80 | 1.61 | 1.37 | ||||||||||||
| Client certificates of deposit | 3.99 | 3.66 | 3.29 | 3.03 | 2.73 | ||||||||||||
| Other interest-bearing deposits | 5.00 | 4.54 | 4.03 | 3.47 | 3.09 | ||||||||||||
| Total interest-bearing deposits | 3.19 | 2.90 | 2.58 | 2.31 | 1.99 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 4.30 | 3.95 | 3.64 | 3.24 | 2.86 | ||||||||||||
| Long-term debt | 5.04 | 4.77 | 4.58 | 4.26 | 4.07 | ||||||||||||
| Total interest-bearing liabilities | 3.60 | 3.29 | 3.00 | 2.70 | 2.40 | ||||||||||||
| Net yield on earning assets | 3.76 | % | 3.82 | % | 3.82 | % | 3.88 | % | 3.92 | % | |||||||
| NOTES: | (1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost. |
| QUARTERLY PERFORMANCE SUMMARY | Tom 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) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| SELECTED BALANCE SHEET DATA | |||||||||||||||||
| End of period balances | |||||||||||||||||
| Securities available for sale | $ | 20,090,945 | $ | 19,433,575 | $ | 19,782,966 | $ | 19,817,145 | $ | 20,123,465 | |||||||
| Trading securities | 918,621 | 745,169 | 706,518 | 433,652 | 675,146 | ||||||||||||
| Total securities | 21,009,566 | 20,178,744 | 20,489,484 | 20,250,797 | 20,798,611 | ||||||||||||
| Commercial loans and leases | 39,691,954 | 37,191,415 | 36,615,085 | 35,848,589 | 35,056,980 | ||||||||||||
| Direct retail loans | 14,908,991 | 14,543,073 | 14,452,518 | 14,279,817 | 14,094,081 | ||||||||||||
| Sales finance loans | 5,378,205 | 5,176,673 | 5,264,088 | 5,368,126 | 5,216,027 | ||||||||||||
| Revolving credit loans | 1,327,623 | 1,299,396 | 1,347,309 | 1,294,804 | 1,271,395 | ||||||||||||
| Mortgage loans | 15,671,640 | 15,036,187 | 14,481,561 | 14,200,691 | 13,512,617 | ||||||||||||
| Specialized lending | 3,305,220 | 3,032,538 | 2,862,927 | 2,679,818 | 2,589,516 | ||||||||||||
| Total loans and leases | 80,283,633 | 76,279,282 | 75,023,488 | 73,671,845 | 71,740,616 | ||||||||||||
| Allowance for loan and lease losses | 869,880 | 833,231 | 825,300 | 817,777 | 809,318 | ||||||||||||
| Other earning assets | 960,176 | 816,838 | 730,819 | 709,478 | 798,810 | ||||||||||||
| Total earning assets | 103,097,439 | 97,984,757 | 96,777,005 | 95,054,570 | 93,512,746 | ||||||||||||
| Total assets | 116,283,730 | 110,033,689 | 109,169,759 | 107,080,153 | 105,835,324 | ||||||||||||
| Noninterest-bearing deposits | 13,625,502 | 13,413,099 | 13,476,939 | 13,499,106 | 13,197,792 | ||||||||||||
| Interest checking | 1,539,064 | 1,338,847 | 1,426,715 | 1,414,364 | 1,512,588 | ||||||||||||
| Other client deposits | 32,344,438 | 32,074,100 | 30,959,888 | 30,135,171 | 29,642,503 | ||||||||||||
| Client certificates of deposit | 23,704,122 | 20,352,627 | 19,309,667 | 18,402,885 | 17,793,434 | ||||||||||||
| Other interest-bearing deposits | 7,299,675 | 8,385,456 | 9,108,590 | 9,728,748 | 9,684,042 | ||||||||||||
| Total deposits | 78,512,801 | 75,564,129 | 74,281,799 | 73,180,274 | 71,830,359 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 6,797,108 | 6,356,330 | 6,561,719 | 6,533,455 | 7,137,762 | ||||||||||||
| Long-term debt | 15,195,145 | 13,045,058 | 13,118,559 | 12,376,759 | 11,955,683 | ||||||||||||
| Total interest-bearing liabilities | 86,879,552 | 81,552,418 | 80,485,138 | 78,591,382 | 77,726,012 | ||||||||||||
| Total shareholders' equity | 11,164,113 | 10,969,972 | 11,129,114 | 11,195,918 | 11,090,367 | ||||||||||||
| Goodwill | 4,730,294 | 4,300,396 | 4,255,998 | 4,237,451 | 4,233,719 | ||||||||||||
| Core deposit and other intangibles | 493,463 | 479,231 | 487,525 | 503,686 | 535,965 | ||||||||||||
| Total intangibles | 5,223,757 | 4,779,627 | 4,743,523 | 4,741,137 | 4,769,684 | ||||||||||||
| Mortgage servicing rights | $ | 523,908 | $ | 485,307 | $ | 451,287 | $ | 414,466 | $ | 341,676 | |||||||
| Average balances | |||||||||||||||||
| Securities, at amortized cost | $ | 21,081,257 | $ | 20,955,014 | $ | 20,807,541 | $ | 20,822,997 | $ | 20,613,680 | |||||||
| Commercial loans and leases | 38,187,877 | 36,897,691 | 36,213,607 | 35,424,216 | 34,547,569 | ||||||||||||
| Direct retail loans | 14,707,176 | 14,498,280 | 14,354,335 | 14,194,755 | 13,923,123 | ||||||||||||
| Sales finance loans | 5,242,132 | 5,215,937 | 5,316,296 | 5,313,245 | 5,122,957 | ||||||||||||
| Revolving credit loans | 1,308,461 | 1,316,837 | 1,307,724 | 1,281,964 | 1,248,176 | ||||||||||||
| Mortgage loans | 15,348,385 | 14,664,573 | 14,381,114 | 13,869,588 | 13,052,966 | ||||||||||||
| Specialized lending | 3,183,885 | 2,849,331 | 2,741,610 | 2,630,756 | 2,490,899 | ||||||||||||
| Total loans and leases | 77,977,916 | 75,442,649 | 74,314,686 | 72,714,524 | 70,385,690 | ||||||||||||
| Allowance for loan and lease losses | 852,045 | 827,863 | 818,743 | 814,934 | 810,545 | ||||||||||||
| Other earning assets | 968,783 | 777,594 | 797,372 | 795,338 | 657,433 | ||||||||||||
| Total earning assets | 100,027,956 | 97,175,257 | 95,919,599 | 94,332,859 | 91,656,803 | ||||||||||||
| Total assets | 112,383,000 | 109,132,162 | 107,844,163 | 106,360,541 | 103,663,680 | ||||||||||||
| Noninterest-bearing deposits | 13,179,022 | 12,851,943 | 13,343,220 | 13,144,471 | 12,771,153 | ||||||||||||
| Interest checking | 2,225,377 | 1,905,570 | 1,845,732 | 1,846,994 | 1,834,619 | ||||||||||||
| Other client deposits | 30,848,811 | 30,687,180 | 30,166,800 | 29,729,490 | 29,558,096 | ||||||||||||
| Client certificates of deposit | 21,629,456 | 19,896,614 | 18,849,059 | 18,155,972 | 17,414,006 | ||||||||||||
| Other interest-bearing deposits | 7,742,838 | 8,858,068 | 8,743,882 | 9,215,190 | 7,364,178 | ||||||||||||
| Total deposits | 75,625,504 | 74,199,375 | 72,948,693 | 72,092,117 | 68,942,052 | ||||||||||||
| Fed funds purchased, repos and other borrowings | 7,507,314 | 6,684,788 | 7,118,752 | 7,123,027 | 8,218,309 | ||||||||||||
| Long-term debt | 13,825,503 | 13,111,268 | 12,717,191 | 12,111,140 | 11,599,714 | ||||||||||||
| Total interest-bearing liabilities | 83,779,299 | 81,143,488 | 79,441,416 | 78,181,813 | 75,988,922 | ||||||||||||
| Total shareholders' equity | $ | 11,221,497 | $ | 11,134,096 | $ | 11,126,630 | $ | 11,176,928 | $ | 11,050,089 | |||||||
| SELECTED CAPITAL INFORMATION (1) | |||||||||||||||||
| Risk-based capital: | |||||||||||||||||
| Tier 1 | $ | 7,848,615 | $ | 7,360,953 | $ | 7,453,987 | $ | 7,454,705 | $ | 6,681,308 | |||||||
| Total | 11,863,872 | 11,418,033 | 11,610,547 | 11,648,384 | 10,854,492 | ||||||||||||
| Risk-weighted assets | 86,590,403 | 81,623,098 | 80,390,559 | 78,417,224 | 76,415,717 | ||||||||||||
| Average quarterly tangible assets | 108,026,743 | 105,038,107 | 103,741,007 | 102,009,127 | 99,316,641 | ||||||||||||
| Risk-based capital ratios: | |||||||||||||||||
| Tier 1 | 9.1 | % | 9.0 | % | 9.3 | % | 9.5 | % | 8.7 | % | |||||||
| Total | 13.7 | 14.0 | 14.4 | 14.9 | 14.2 | ||||||||||||
| Leverage capital ratio | 7.3 | 7.0 | 7.2 | 7.3 | 6.7 | ||||||||||||
| Equity as a percentage of total assets | 9.6 | 10.0 | 10.2 | 10.5 | 10.5 | ||||||||||||
| Book value per share | $ | 20.79 | $ | 20.48 | $ | 20.49 | $ | 20.43 | $ | 20.28 | |||||||
| Tangible book value per share (2) | 11.06 | 11.56 | 11.76 | 11.78 | 11.56 | ||||||||||||
| 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 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) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| ASSET QUALITY ANALYSIS | |||||||||||||||||
| Allowance For Credit Losses | |||||||||||||||||
| Beginning balance | $ | 833,432 | $ | 829,770 | $ | 830,344 | $ | 827,325 | $ | 822,464 | |||||||
| Allowance for acquired (sold) loans, net | 25,043 | 3,731 | (970 | ) | — | — | |||||||||||
| Provision for credit losses | 57,732 | 47,571 | 69,329 | 57,465 | 49,424 | ||||||||||||
| Charge-offs | |||||||||||||||||
| Commercial loans and leases | (7,025 | ) | (5,407 | ) | (20,584 | ) | (7,440 | ) | (11,818 | ) | |||||||
| Direct retail loans | (11,638 | ) | (10,597 | ) | (10,293 | ) | (20,558 | ) | (8,148 | ) | |||||||
| Sales finance loans | (5,304 | ) | (5,610 | ) | (8,617 | ) | (6,874 | ) | (3,881 | ) | |||||||
| Revolving credit loans | (10,435 | ) | (11,337 | ) | (15,994 | ) | (13,179 | ) | (12,552 | ) | |||||||
| Mortgage loans | (1,238 | ) | (2,095 | ) | (1,347 | ) | (1,502 | ) | (1,728 | ) | |||||||
| Specialized lending | (26,306 | ) | (27,226 | ) | (26,923 | ) | (23,190 | ) | (22,885 | ) | |||||||
| Total charge-offs | (61,946 | ) | (62,272 | ) | (83,758 | ) | (72,743 | ) | (61,012 | ) | |||||||
| Recoveries | |||||||||||||||||
| Commercial loans and leases | 5,392 | 3,203 | 4,550 | 4,822 | 4,291 | ||||||||||||
| Direct retail loans | 3,012 | 3,065 | 2,653 | 5,214 | 2,159 | ||||||||||||
| Sales finance loans | 1,732 | 1,739 | 1,866 | 2,145 | 2,404 | ||||||||||||
| Revolving credit loans | 2,974 | 2,743 | 2,841 | 2,740 | 2,737 | ||||||||||||
| Mortgage loans | 84 | 144 | 162 | 340 | 39 | ||||||||||||
| Specialized lending | 3,422 | 3,738 | 2,753 | 3,036 | 4,819 | ||||||||||||
| Total recoveries | 16,616 | 14,632 | 14,825 | 18,297 | 16,449 | ||||||||||||
| Net charge-offs | (45,330 | ) | (47,640 | ) | (68,933 | ) | (54,446 | ) | (44,563 | ) | |||||||
| Ending balance | $ | 870,877 | $ | 833,432 | $ | 829,770 | $ | 830,344 | $ | 827,325 | |||||||
| Allowance For Credit Losses | |||||||||||||||||
| Allowance for loan and lease losses | $ | 869,880 | $ | 833,231 | $ | 825,300 | $ | 817,777 | $ | 809,318 | |||||||
| Reserve for unfunded lending commitments | 997 | 201 | 4,470 | 12,567 | 18,007 | ||||||||||||
| Total | $ | 870,877 | $ | 833,432 | $ | 829,770 | $ | 830,344 | $ | 827,325 | |||||||
| Nonperforming Assets | |||||||||||||||||
| Nonaccrual loans and leases: | |||||||||||||||||
| Commercial loans and leases | $ | 125,950 | $ | 109,838 | $ | 103,804 | $ | 107,121 | $ | 110,662 | |||||||
| Direct retail loans | 39,470 | 42,156 | 40,916 | 39,334 | 37,640 | ||||||||||||
| Sales finance loans | 2,502 | 3,064 | 4,640 | 9,864 | 9,908 | ||||||||||||
| Revolving credit loans | 222 | 177 | 233 | 304 | 348 | ||||||||||||
| Mortgage loans | 46,705 | 49,643 | 48,126 | 48,301 | 49,163 | ||||||||||||
| Specialized lending | 24,154 | 26,508 | 31,160 | 25,648 | 22,033 | ||||||||||||
| Total nonaccrual loans and leases | 239,003 | 231,386 | 228,879 | 230,572 | 229,754 | ||||||||||||
| Foreclosed real estate | 55,623 | 41,341 | 48,315 | 51,504 | 62,036 | ||||||||||||
| Other foreclosed property | 24,304 | 22,895 | 22,420 | 21,692 | 16,550 | ||||||||||||
| Restructured loans | 494 | 507 | 515 | 523 | 531 | ||||||||||||
| Nonperforming assets | $ | 319,424 | $ | 296,129 | $ | 300,129 | $ | 304,291 | $ | 308,871 | |||||||
| Loans 90 days or more past due | |||||||||||||||||
| and still accruing: | |||||||||||||||||
| Commercial loans and leases | $ | 18,510 | $ | 5,727 | $ | 10,413 | $ | 5,948 | $ | 6,040 | |||||||
| Direct retail loans | 16,536 | 17,686 | 20,814 | 18,197 | 14,718 | ||||||||||||
| Sales finance loans | 12,318 | 18,347 | 21,585 | 16,246 | 16,015 | ||||||||||||
| Revolving credit loans | 5,456 | 4,172 | 4,713 | 4,840 | 3,886 | ||||||||||||
| Mortgage loans | 32,221 | 28,251 | 38,828 | 33,385 | 33,494 | ||||||||||||
| Specialized lending | 5,675 | 5,050 | 7,092 | 5,999 | 5,164 | ||||||||||||
| Total loans 90 days or more past due | |||||||||||||||||
| and still accruing | 90,716 | 79,233 | 103,445 | 84,615 | 79,317 | ||||||||||||
| Loans 90 days or more past due and still accruing | |||||||||||||||||
| as a percentage of total loans and leases | .11 | % | .10 | % | .14 | % | .11 | % | .11 | % | |||||||
| Asset Quality Ratios | |||||||||||||||||
| Nonaccrual and restructured loans and leases | |||||||||||||||||
| as a percentage of total loans and leases | .30 | % | .30 | % | .31 | % | .31 | % | .32 | % | |||||||
| Nonperforming assets as a percentage of: | |||||||||||||||||
| Total assets | .27 | .27 | .27 | .28 | .29 | ||||||||||||
| Loans and leases plus | |||||||||||||||||
| foreclosed property | .40 | .39 | .40 | .41 | .43 | ||||||||||||
| Net charge-offs as a percentage of | |||||||||||||||||
| average loans and leases | .23 | .26 | .37 | .30 | .25 | ||||||||||||
| Net charge-offs excluding specialized | |||||||||||||||||
| lending as a percentage of average | |||||||||||||||||
| loans and leases (1) | .12 | .13 | .25 | .19 | .16 | ||||||||||||
| Allowance for loan and lease losses as | |||||||||||||||||
| a percentage of loans and leases | 1.08 | 1.09 | 1.10 | 1.11 | 1.13 | ||||||||||||
| Allowance for loan and lease losses as | |||||||||||||||||
| a percentage of loans and leases | |||||||||||||||||
| held for investment | 1.09 | 1.10 | 1.11 | 1.12 | 1.14 | ||||||||||||
| Ratio of allowance for loan and lease losses to: | |||||||||||||||||
| Net charge-offs | 4.78 | x | 4.31 | x | 3.02 | x | 3.79 | x | 4.53 | x | |||||||
| Nonaccrual and restructured loans and leases | 3.63 | 3.59 | 3.60 | 3.54 | 3.51 | ||||||||||||
| 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 Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 12 | Investor Relations | FAX (336) 733-3132 | |||
| As of / For the Six Months Ended | Increase (Decrease) | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 6/30/06 | 6/30/05 | $ | % | ||||||||||
| Allowance For Credit Losses | ||||||||||||||
| Beginning balance | $ | 829,770 | $ | 828,301 | $ | 1,469 | .2 | % | ||||||
| Allowance for acquired (sold) loans, net | 28,774 | — | 28,774 | NM | ||||||||||
| Provision for credit losses | 105,303 | 90,469 | 14,834 | 16.4 | ||||||||||
| Charge-offs | ||||||||||||||
| Commercial loans and leases | (12,432 | ) | (21,238 | ) | 8,806 | (41.5 | ) | |||||||
| Direct retail loans | (22,235 | ) | (15,597 | ) | (6,638 | ) | 42.6 | |||||||
| Sales finance loans | (10,914 | ) | (11,173 | ) | 259 | (2.3 | ) | |||||||
| Revolving credit loans | (21,772 | ) | (25,245 | ) | 3,473 | (13.8 | ) | |||||||
| Mortgage loans | (3,333 | ) | (3,204 | ) | (129 | ) | 4.0 | |||||||
| Specialized lending | (53,532 | ) | (44,789 | ) | (8,743 | ) | 19.5 | |||||||
| Total charge-offs | (124,218 | ) | (121,246 | ) | (2,972 | ) | 2.5 | |||||||
| Recoveries | ||||||||||||||
| Commercial loans and leases | 8,595 | 7,706 | 889 | 11.5 | ||||||||||
| Direct retail loans | 6,077 | 4,007 | 2,070 | 51.7 | ||||||||||
| Sales finance loans | 3,471 | 4,872 | (1,401 | ) | (28.8 | ) | ||||||||
| Revolving credit loans | 5,717 | 5,277 | 440 | 8.3 | ||||||||||
| Mortgage loans | 228 | 134 | 94 | |||||||||||
| Specialized lending | 7,160 | 7,805 | (645 | ) | (8.3 | ) | ||||||||
| Total recoveries | 31,248 | 29,801 | 1,447 | 4.9 | ||||||||||
| Net charge-offs | (92,970 | ) | (91,445 | ) | (1,525 | ) | (1.7 | ) | ||||||
| Ending balance | $ | 870,877 | $ | 827,325 | $ | 43,552 | 5.3 | % | ||||||
| Allowance For Credit Losses | ||||||||||||||
| Allowance for loan and lease losses | $ | 869,880 | $ | 809,318 | $ | 60,562 | 7.5 | % | ||||||
| Reserve for unfunded lending commitments | 997 | 18,007 | (17,010 | ) | (94.5 | ) | ||||||||
| Total | $ | 870,877 | $ | 827,325 | $ | 43,552 | 5.3 | % | ||||||
| Asset Quality Ratios | ||||||||||||||
| Net charge-offs as a percentage of | ||||||||||||||
| average loans and leases | .24 | % | .27 | % | ||||||||||
| Net charge-offs excluding specialized | ||||||||||||||
| lending as a percentage of average | ||||||||||||||
| loans and leases (1) | .13 | .16 | ||||||||||||
| Ratio of allowance for loan and lease losses to | ||||||||||||||
| net charge-offs | 4.64 | x | 4.39 | x | ||||||||||
| Percentage Increase (Decrease) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| QTD | Annualized Link QTD | YTD | |||||||||
| 2Q06 vs. 2Q05 | 2Q06 vs. 1Q06 | 2006 vs. 2005 | |||||||||
| PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR | |||||||||||
| PURCHASE ACQUISITIONS (2) | |||||||||||
| Average Balances | |||||||||||
| Commercial loans and leases | 8.5 | % | 7.5 | % | 8.8 | % | |||||
| Direct retail loans | 5.3 | 5.0 | 5.7 | ||||||||
| Sales finance loans | 2.3 | 2.0 | 2.2 | ||||||||
| Revolving credit loans | 4.8 | (2.6 | ) | 5.0 | |||||||
| Mortgage loans (3) | 19.2 | 18.6 | 19.2 | ||||||||
| Specialized lending | 23.3 | 34.9 | 22.5 | ||||||||
| Total loans and leases (3) | 9.9 | 9.6 | 10.0 | ||||||||
| Noninterest-bearing deposits | 2.5 | 7.7 | 3.7 | ||||||||
| Interest checking | 16.4 | 49.7 | 15.1 | ||||||||
| Other client deposits | 3.5 | (0.4 | ) | 3.1 | |||||||
| Client certificates of deposit | 22.2 | 30.0 | 17.9 | ||||||||
| Other interest-bearing deposits | 5.2 | (51.5 | ) | 22.3 | |||||||
| Total deposits | 8.6 | % | 4.4 | % | 9.3 | % | |||||
| PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS | |||||||||||
| BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2) | |||||||||||
| Net interest income - taxable equivalent | 2.6 | % | 3.1 | % | 3.9 | % | |||||
| Noninterest income | |||||||||||
| Insurance commissions | 14.7 | 80.5 | 11.9 | ||||||||
| Service charges on deposits | (1.3 | ) | 18.8 | 3.3 | |||||||
| Other nondeposit fees and commissions | 21.3 | 36.6 | 23.6 | ||||||||
| Investment banking and brokerage fees and commissions | (6.5 | ) | (15.2 | ) | 2.8 | ||||||
| Trust revenue | 2.8 | 7.8 | 2.4 | ||||||||
| Mortgage banking income (4) | 14.7 | (40.4 | ) | 26.9 | |||||||
| Securities gains (losses), net | NM | NM | NM | ||||||||
| Other income | (2.2 | ) | (57.6 | ) | 16.9 | ||||||
| Total noninterest income (4) | 6.0 | 21.4 | 10.1 | ||||||||
| Noninterest expense | |||||||||||
| Personnel expense | 7.8 | 2.5 | 11.1 | ||||||||
| Occupancy and equipment expense | 4.7 | 6.4 | 3.0 | ||||||||
| Other noninterest expense | 3.6 | 26.8 | 4.6 | ||||||||
| Total noninterest expense | 6.2 | % | 9.8 | % | 8.1 | % | |||||
| 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 2006 and 2005. |
| (3) | Adjusted for the average impact of $210 million in mortgage loans securitized in the fourth quarter of 2005. |
| (4) | Excludes the net impact of valuation adjustments for mortgage servicing rights and gains or losses on mortgage servicing rights-related derivatives. |
| NM | - not meaningful. |
| QUARTERLY PERFORMANCE SUMMARY | Tom 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) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| SELECTED MORTGAGE BANKING INFORMATION | |||||||||||||||||
| Residential Mortgage Servicing Rights (1) | $ | 499,706 | $ | 462,920 | $ | 431,213 | $ | 397,908 | $ | 325,446 | |||||||
| Income Statement Impact of Mortgage Servicing | |||||||||||||||||
| Rights Valuation: | |||||||||||||||||
| MSRs fair value increase | $ | 32,389 | $ | 28,883 | $ | — | $ | — | $ | — | |||||||
| MSRs valuation recaptures (provisions) | — | — | 29,407 | 66,666 | (61,161 | ) | |||||||||||
| MSRs derivative hedge (losses) gains | (28,873 | ) | (24,834 | ) | (32,747 | ) | (55,632 | ) | 52,030 | ||||||||
| Net | $ | 3,516 | $ | 4,049 | $ | (3,340 | ) | $ | 11,034 | $ | (9,131 | ) | |||||
| Residential Mortgage Loan Originations | $ | 2,656,293 | $ | 2,308,835 | $ | 2,450,434 | $ | 3,130,026 | $ | 2,687,824 | |||||||
| Residential Mortgage Servicing Portfolio: | |||||||||||||||||
| Loans serviced for others | $ | 27,024,724 | $ | 26,787,683 | $ | 26,624,810 | $ | 26,547,319 | $ | 26,579,866 | |||||||
| Bank owned loans serviced | 15,671,640 | 15,036,187 | 14,481,561 | 14,200,691 | 13,512,617 | ||||||||||||
| Total servicing portfolio | 42,696,364 | 41,823,870 | 41,106,371 | 40,748,010 | 40,092,483 | ||||||||||||
| Weighted Average Coupon Rate | 5.86 | % | 5.84 | % | 5.83 | % | 5.82 | % | 5.83 | % | |||||||
| Weighted Average Servicing Fee | .351 | .351 | .349 | .349 | .349 | ||||||||||||
| For the Quarter Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 | ||||||||||||
| RECONCILIATION TABLE | |||||||||||||||||
| Net income | $ | 429,100 | $ | 431,513 | $ | 429,574 | $ | 442,006 | $ | 386,805 | |||||||
| Merger-related items, net of tax | 989 | (1,853 | ) | (3,771 | ) | (1,130 | ) | (249 | ) | ||||||||
| Equity-based compensation, net of tax | 6,238 | 16,363 | — | — | — | ||||||||||||
| Other, net of tax (4) | — | (18,334 | ) | — | — | 26,619 | |||||||||||
| Operating earnings | 436,327 | 427,689 | 425,803 | 440,876 | 413,175 | ||||||||||||
| Amortization of intangibles, net of tax | 15,892 | 15,818 | 18,305 | 16,718 | 18,026 | ||||||||||||
| Amortization of mark-to-market adjustments, net of tax | 2,556 | 3,141 | 4,758 | 4,756 | 4,758 | ||||||||||||
| Cash basis operating earnings | 454,775 | 446,648 | 448,866 | 462,350 | 435,959 | ||||||||||||
| Return on average assets | 1.53 | % | 1.60 | % | 1.58 | % | 1.65 | % | 1.50 | % | |||||||
| Effect of merger-related items, net of tax | — | — | (.01 | ) | (.01 | ) | — | ||||||||||
| Effect of equity-based compensation, net of tax | .03 | .06 | — | — | — | ||||||||||||
| Effect of other, net of tax (4) | — | (.07 | ) | — | — | .10 | |||||||||||
| Operating return on average assets | 1.56 | 1.59 | 1.57 | 1.64 | 1.60 | ||||||||||||
| Effect of amortization of intangibles, net of tax (2) | .13 | .14 | .14 | .15 | .15 | ||||||||||||
| Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
| net of tax | .01 | .01 | .02 | .02 | .02 | ||||||||||||
| Cash basis operating return on average | |||||||||||||||||
| tangible assets | 1.70 | 1.74 | 1.73 | 1.81 | 1.77 | ||||||||||||
| Return on average equity | 15.34 | % | 15.72 | % | 15.32 | % | 15.69 | % | 14.04 | % | |||||||
| Effect of merger-related items, net of tax | .04 | (.07 | ) | (.14 | ) | (.04 | ) | (.01 | ) | ||||||||
| Effect of equity-based compensation, net of tax | .22 | .60 | — | — | — | ||||||||||||
| Effect of other, net of tax (4) | — | (.67 | ) | — | — | .97 | |||||||||||
| Operating return on average equity | 15.60 | 15.58 | 15.18 | 15.65 | 15.00 | ||||||||||||
| Effect of amortization of intangibles, net of tax (2) | 13.27 | 12.63 | 12.40 | 12.62 | 12.52 | ||||||||||||
| Effect of amortization of mark-to-market adjustments, | |||||||||||||||||
| net of tax | .09 | .20 | .30 | .29 | .30 | ||||||||||||
| Cash basis operating return on average | |||||||||||||||||
| tangible equity | 28.96 | 28.41 | 27.88 | 28.56 | 27.82 | ||||||||||||
| Efficiency ratio (taxable equivalent) (3) | 54.0 | % | 53.5 | % | 52.6 | % | 51.5 | % | 55.4 | % | |||||||
| Effect of merger-related items | (.1 | ) | .2 | .4 | .2 | — | |||||||||||
| Effect of equity-based compensation | (.7 | ) | (1.7 | ) | — | — | — | ||||||||||
| Effect of other (4) | — | 1.8 | — | — | (2.9 | ) | |||||||||||
| Operating efficiency ratio (3) | 53.2 | 53.8 | 53.0 | 51.7 | 52.5 | ||||||||||||
| Effect of amortization of intangibles | (1.6 | ) | (1.6 | ) | (1.9 | ) | (1.8 | ) | (1.9 | ) | |||||||
| Effect of amortization of mark-to-market adjustments | (.1 | ) | (.2 | ) | (.2 | ) | (.2 | ) | (.3 | ) | |||||||
| Cash basis operating efficiency ratio (3) | 51.5 | 52.0 | 50.9 | 49.7 | 50.3 | ||||||||||||
| Basic earnings per share | $ | .80 | $ | .80 | $ | .79 | $ | .81 | $ | .71 | |||||||
| Effect of merger-related items, net of tax | — | (.01 | ) | (.01 | ) | — | — | ||||||||||
| Effect of equity-based compensation, net of tax | .01 | .03 | — | — | — | ||||||||||||
| Effect of other, net of tax (4) | — | (.03 | ) | — | — | .05 | |||||||||||
| Operating basic earnings per share | .81 | .79 | .78 | .81 | .76 | ||||||||||||
| Diluted earnings per share | $ | .79 | $ | .79 | $ | .78 | $ | .80 | $ | .70 | |||||||
| Effect of merger-related items, net of tax | — | — | — | — | — | ||||||||||||
| Effect of equity-based compensation, net of tax | .02 | .03 | — | — | — | ||||||||||||
| Effect of other, net of tax (4) | — | (.03 | ) | — | — | .05 | |||||||||||
| Operating diluted earnings per share | .81 | .79 | .78 | .80 | .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 | ||||||||||||
| Cash basis operating diluted earnings per share | .84 | .82 | .82 | .84 | .79 | ||||||||||||
| NOTES: | Applicable ratios are annualized. |
| (1) | Balances exclude commercial mortgage servicing rights totaling $24.2 million, $22.4 million, $20.1 million, $16.6 million and $16.2 million as of June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively. Effective January 1, 2006, residential mortgage servicing rights are carried at fair value. |
| (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, increases or decreases in the valuation of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Operating and cash basis ratios also exclude merger-related charges or credits, equity-based compensation and nonrecurring items, where applicable. |
| (4) | Reflects a gain on the sale of duplicate facilities totaling $18.3 million, net of tax, in the first quarter of 2006 and 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 Nicholson | ||||
| BB&T Corporation (NYSE:BBT) | Executive Vice President | (336) 733-3058 | |||
| Page 14 | Investor Relations | FAX (336) 733-3132 | |||
| For the Six Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 6/30/06 | 6/30/05 | ||||||
| RECONCILIATION TABLE | ||||||||
| Net income | $ | 860,613 | $ | 782,189 | ||||
| Merger-related items, net of tax | (864 | ) | (1,876 | ) | ||||
| Equity-based compensation, net of tax | 22,601 | — | ||||||
| Other, net of tax (3) | (18,334 | ) | 26,619 | |||||
| Operating earnings | 864,016 | 806,932 | ||||||
| Amortization of intangibles, net of tax | 31,710 | 35,731 | ||||||
| Amortization of mark-to-market adjustments, net of tax | 5,697 | 9,125 | ||||||
| Cash basis operating earnings | 901,423 | 851,788 | ||||||
| Return on average assets | 1.57 | % | 1.55 | % | ||||
| Effect of merger-related items, net of tax | — | (.01 | ) | |||||
| Effect of equity-based compensation, net of tax | .04 | — | ||||||
| Effect of other, net of tax (3) | (.04 | ) | .05 | |||||
| Operating return on average assets | 1.57 | 1.59 | ||||||
| Effect of amortization of intangibles, net of tax (1) | .14 | .16 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .01 | .01 | ||||||
| Cash basis operating return on average tangible assets | 1.72 | 1.76 | ||||||
| Return on average equity | 15.53 | % | 14.37 | % | ||||
| Effect of merger-related items, net of tax | (.02 | ) | (.04 | ) | ||||
| Effect of equity-based compensation, net of tax | .41 | — | ||||||
| Effect of other, net of tax (3) | (.33 | ) | .49 | |||||
| Operating return on average equity | 15.59 | 14.82 | ||||||
| Effect of amortization of intangibles, net of tax (1) | 13.00 | 12.30 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .10 | .29 | ||||||
| Cash basis operating return on average tangible equity | 28.69 | 27.41 | ||||||
| Efficiency ratio (taxable equivalent) (2) | 53.7 | % | 54.1 | % | ||||
| Effect of merger-related items | — | .1 | ||||||
| Effect of equity-based compensation | (1.2 | ) | — | |||||
| Effect of other (3) | 1.0 | (1.5 | ) | |||||
| Operating efficiency ratio (2) | 53.5 | 52.7 | ||||||
| Effect of amortization of intangibles | (1.6 | ) | (2.0 | ) | ||||
| Effect of amortization of mark-to-market adjustments | (.2 | ) | (.2 | ) | ||||
| Cash basis operating efficiency ratio (2) | 51.7 | 50.5 | ||||||
| Fee income ratio | 40.2 | % | 38.4 | % | ||||
| Effect of other (3) | — | (.1 | ) | |||||
| Operating fee income ratio | 40.2 | 38.3 | ||||||
| Basic earnings per share | $ | 1.60 | $ | 1.43 | ||||
| Effect of merger-related items, net of tax | — | (.01 | ) | |||||
| Effect of equity-based compensation, net of tax | .04 | — | ||||||
| Effect of other, net of tax (3) | (.04 | ) | .05 | |||||
| Operating basic earnings per share | 1.60 | 1.47 | ||||||
| Diluted earnings per share | $ | 1.59 | $ | 1.42 | ||||
| Effect of merger-related items, net of tax | — | (.01 | ) | |||||
| Effect of equity-based compensation, net of tax | .04 | — | ||||||
| Effect of other, net of tax (3) | (.04 | ) | .05 | |||||
| Operating diluted earnings per share | 1.59 | 1.46 | ||||||
| Effect of amortization of intangibles, net of tax | .06 | .07 | ||||||
| Effect of amortization of mark-to-market adjustments, net of tax | .01 | .01 | ||||||
| Cash basis operating diluted earnings per share | 1.66 | 1.54 | ||||||
| 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, increases or decreases in the valuation of mortgage servicing rights, and gains or losses on mortgage servicing rights-related derivatives. Operating and cash basis ratios also exclude merger-related charges or credits, equity-based compensation and nonrecurring items, where applicable. |
| (3) | Reflects a gain on the sale of duplicate facilities totaling $18.3 million, net of tax, in the first quarter of 2006 and a one-time charge related to the accounting for leases totaling $26.6 million, net of tax, in the second quarter of 2005. |
