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| October 18, 2007 | | | | |
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| FOR IMMEDIATE RELEASE | | |
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| Contacts: | | | | |
| ANALYSTS | | | | MEDIA |
| Tamera Gjesdal | | Chris Henson | | Bob Denham |
| Senior Vice President | | Sr. Exec. Vice President | | Senior Vice President |
| Investor Relations | | Chief Financial Officer | | Corporate Communications |
| (336) 733-3058 | | (336) 733-3008 | | (336) 733-1475 |
BB&T reports 3rd quarter net income of $444 million, up 6.5%
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) reported today net income for the third quarter of 2007 totaling $444 million, or $.80 per diluted share, compared with $417 million, or $.77 per diluted share, earned during the third quarter of 2006. These results reflect increases of 6.5% and 3.9%, respectively, compared to the same quarter last year.
BB&T’s third quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.37% and 14.24%, respectively, compared to prior year returns of 1.42% and 14.39%, respectively.
Operating earnings for the third quarter of 2007 totaled $448 million, or $.81 per diluted share, compared to $424 million, or $.78 per diluted share, earned during the third quarter of 2006. Operating earnings exclude $4 million and $7 million in net after-tax merger-related and restructuring charges from the third quarters of 2007 and 2006, respectively.
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 and restructuring charges or credits and nonrecurring items from earnings. Cash basis operating earnings totaled $466 million for the third quarter of 2007, an increase of 5.7% compared to $441 million earned in the third quarter of 2006. Cash basis operating diluted earnings per share totaled $.84 for the third quarter of 2007, an increase of 3.7% compared to $.81 earned during the same period in 2006. Cash basis operating earnings for the third quarter of 2007 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.50% and 26.86%, respectively, compared to prior year returns of 1.57% and 27.43%, respectively.
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“The third quarter presented significant challenges for the financial services industry, including unusual disruptions in financial markets and a rising level of loan losses,” said Chairman and Chief Executive Officer John A. Allison. “Although these events negatively affected BB&T’s earnings, I am pleased with a number of other positive accomplishments for the quarter. In particular, this quarter represents BB&T’s fourth consecutive quarter of generating positive operating leverage and improved operating efficiency through solid execution of our emphasis on expense control. Also, our loan and deposit growth continued to be healthy during the quarter. In addition, last week we received the results of the FDIC’s annual report on deposit market share, which were very positive for BB&T. On balance, our overall performance was very solid in a difficult environment.”
For the first nine months of 2007, BB&T’s net income was $1.32 billion compared to $1.28 billion earned in the first nine months of 2006. Diluted earnings per share for the first nine months of 2007 totaled $2.40 compared to $2.35 earned during the same period in 2006. Excluding merger-related and restructuring charges or credits and nonrecurring items, operating earnings for the first nine months of 2007 totaled $1.33 billion, or $2.42 per diluted share, reflecting increases of 5.5% and 3.9%, respectively, compared to $1.27 billion, or $2.33 per diluted share, earned during the first nine months of 2006.
BB&T’s Noninterest Income Reflects Mixed Results
Noninterest income was negatively affected by hedging losses, trading account losses and other losses resulting from the market distruptions that occurred during the quarter. Income from BB&T’s fee generating businesses increased 2.3% during the third quarter of 2007 compared to 2006. Total noninterest income was $675 million for the current quarter compared to $660 million for the same period in 2006. This increase includes growth in revenues generated by BB&T’s investment banking and brokerage operations, as well as increased revenues from service charges on deposit accounts and other nondeposit fees and commissions.
Commissions from BB&T’s insurance operations decreased 1.4% to $206 million in the current quarter compared with $209 million earned during the third quarter last year. This decrease resulted primarily from more competitive pricing in the commercial property and casualty insurance market.
BB&T’s investment banking and brokerage operations generated revenues of $87 million in the current quarter, an increase of 6.1% compared to $82 million earned in the third quarter of 2006. The growth is primarily attributable to increased fees and commissions from Scott & Stringfellow’s retail brokerage operations derived from higher trading volumes and growth in assets under management, partially offset by a decrease in revenues from BB&T’s capital markets activities.
Service charges on deposit accounts totaled $157 million for the third quarter of 2007, an increase of 13.8% compared to $138 million earned in the same quarter last year. This increase was primarily attributable to growth in revenues from overdraft items.
Other nondeposit fees and commissions totaled $129 million for the third quarter of 2007, an increase of 12.2% compared to $115 million earned in the third quarter of 2006. This increase was generated primarily by growth in card-related services.
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Other noninterest income totaled $23 million for the third quarter of 2007 compared to $54 million earned in the third quarter of 2006, a decrease of 57.4% . This decrease primarily resulted from $26 million in losses on hedging, trading and other market activities.
Asset Quality Reflects a Return to Normalized Levels
Nonperforming assets, as a percentage of total assets, were .42% at Sept. 30 compared to .33% at June 30 and .28% at Sept. 30, 2006. Annualized net charge-offs were .40% of average loans and leases for the third quarter of 2007, up from .27% in the same quarter last year. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs were .23% of average loans and leases for the current quarter compared with .14% in the third quarter last year.
BB&T Produces Positive Operating Leverage Driven By Strong Expense Control
BB&T produced positive operating leverage of 5.1% on an annualized basis during the third quarter of 2007 compared to the second quarter of 2007. These results were driven primarily by improved operating efficiency during the quarter, reflected in a cash basis efficiency ratio of 51.3% compared to 51.7% in the second quarter this year. Excluding merger-related and restructuring charges or credits, nonrecurring items and growth resulting from purchase acquisitions, noninterest expenses decreased 4.7% compared to the third quarter of 2006 and .8% comparing the first nine months of 2007 with the same period last year.
Combined Loan and Deposit Growth Remains Healthy; Deposit Market Share Increases
Average loans and leases totaled $89.1 billion for the third quarter of 2007, reflecting an increase of $8.0 billion, or 9.9%, compared to the third quarter of 2006. This increase was composed of growth in average commercial loans and leases, which increased $2.9 billion, or 7.2%; average mortgage loans, which increased $2.1 billion, or 13.4%; average consumer loans, which increased $1.1 billion, or 5.2%; and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $1.9 billion, or 57.3%, compared to the third quarter last year. The growth in loans originated by BB&T’s specialized lending subsidiaries includes the acquisition of AFCO Credit Corporation. Excluding the impact of this acquisition, average loans in BB&T’s specialized lending group increased 19.2% compared to the third quarter of 2006.
Average deposits totaled $84.2 billion for the third quarter of 2007, an increase of 6.4% compared to $79.1 billion for the third quarter of 2006. Average client deposits totaled $76.7 billion for the third quarter of 2007, an increase of 7.5% compared to $71.4 billion for the third quarter of 2006. Average retail deposit growth was led by client certificates of deposit, which increased $2.5 billion, or 10.5%, and other client deposits, which increased $3.1 billion, or 9.8%.During the third quarter of 2007, BB&T’s banking network generated approximately 30,000 net new transaction accounts. According to the FDIC’s “Summary of Deposits” report released last week, based on data for commercial banks, BB&T maintained or gained market share in every state in its footprint. These results are particularly impressive following last year’s depo sit market share report, where BB&T gained market share in every state in its footprint except West Virginia, where it maintained a leading market share.
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BB&T Recognized Nationally for Home Mortgage Customer Service
On Aug. 1, the J.D. Power and Associates 2007 Primary Mortgage Servicer Study was released and BB&T Corporation ranked first in the nation among banks in home mortgage customer service satisfaction. The survey is based on responses from nearly 12,000 home mortgage customers and involves the largest home mortgage providers in the nation. The ranking recognizes BB&T as the best among banks at dealing with all aspects of servicing mortgage loans.
BB&T Expands Specialized Lending Business and Acquires Insurance Agencies
On Aug. 23, BB&T Corporation announced plans to acquire Collateral Real Estate Capital LLC of Birmingham, Ala., a commercial real estate finance company. The company will be combined with Laureate Capital LLC, BB&T’s existing commercial mortgage banking firm, and will give BB&T one of the largest full-service commercial and multi-family mortgage banking companies in the nation. The transaction is subject to regulatory approval and investor consents and is expected to be completed in the fourth quarter.
On Sept. 28, BB&T Insurance Services announced plans to expand through the acquisition of Sydney O. Smith Inc., a metro Atlanta and north Georgia insurance agency. Also on Oct. 1, BB&T Insurance completed the acquisition of Heritage Title Services of Louisville, Ky. These acquisitions will enhance BB&T Insurance’s presence in these important markets.
At Sept. 30, BB&T had $130.8 billion in assets and operated 1,501 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 Oct. 17 was $38.56 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 third quarter 2007 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, Nov. 2.
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Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein.
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 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 pre sentations 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.
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| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 5 | | Investor Relations | | FAX (336) 733-3132 | |
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| | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | 9/30/07 | 9/30/06 | $ | % |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | | |
| Interest income - taxable equivalent | | $ | 2,044 | | $ | 1,825 | | $ | 219 | | | 12.0 | % |
| Interest expense | | | 1,052 | | | 865 | | | 187 | | | 21.6 | |
| Net interest income - taxable equivalent | | | 992 | | | 960 | | | 32 | | | 3.3 | |
| Less: Taxable equivalent adjustment | | | 14 | | | 22 | | | (8 | ) | | (36.4 | ) |
| Net interest income | | | 978 | | | 938 | | | 40 | | | 4.3 | |
| Provision for credit losses | | | 105 | | | 62 | | | 43 | | | 69.4 | |
| Net interest income after provision for credit losses | | 873 | | | 876 | | | (3 | ) | | (.3 | ) |
| Noninterest income | | | 675 | | | 660 | | | 15 | | | 2.3 | |
| Noninterest expense | | | 881 | | | 905 | | | (24 | ) | | (2.7 | ) |
| Operating earnings before income taxes | | | 667 | | | 631 | | | 36 | | | 5.7 | |
| Provision for income taxes | | | 219 | | | 207 | | | 12 | | | 5.8 | |
| Operating earnings (1) | | $ | 448 | | $ | 424 | | $ | 24 | | | 5.7 | % |
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Basic earnings | | $ | .81 | | $ | .79 | | $ | .02 | | | 2.5 | % |
| Diluted earnings | | | .81 | | | .78 | | | .03 | | | 3.8 | |
| Weighted average shares (in thousands) - | Basic | | 550,603 | | | 538,911 | | | | | | | |
| | Diluted | | 555,336 | | | 544,286 | | | | | | | |
| Dividends paid per share | | $ | .46 | | $ | .42 | | $ | .04 | | | 9.5 | % |
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Return on average assets | | | 1.38 | % | | 1.44 | | % | | | | | |
| Return on average equity | | | 14.38 | | | 14.60 | | | | | | | |
| Net yield on earning assets (taxable equivalent) | | | 3.45 | | | 3.68 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.9 | | | 55.6 | | | | | | | |
| CASH BASIS PERFORMANCE | | | | | | | | | | | | | |
| BASED ON OPERATING EARNINGS (1)(3) | | | | | | | | | | | | | |
| Cash basis operating earnings | | $ | 466 | | $ | 441 | | $ | 25 | | | 5.7 | % |
| Diluted earnings per share | | | .84 | | | .81 | | | .03 | | | 3.7 | |
| Return on average tangible assets | | | 1.50 | % | | 1.57 | % | | | | | | |
| Return on average tangible equity | | | 26.86 | | | 27.43 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 51.3 | | | 53.9 | | | | | | | |
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| | | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | 9/30/07 | 9/30/06 | $ | % |
| INCOME STATEMENTS | | | | | | | | | | | | | |
| Interest income | | $ | 2,030 | | $ | 1,803 | | $ | 227 | | | 12.6 | % |
| Interest expense | | | 1,052 | | | 865 | | | 187 | | | 21.6 | |
| Net interest income | | | 978 | | | 938 | | | 40 | | | 4.3 | |
| Provision for credit losses | | | 105 | | | 62 | | | 43 | | | 69.4 | |
| Net interest income after provision for credit losses | | 873 | | | 876 | | | (3 | ) | | (.3 | ) |
| Noninterest income | | | 675 | | | 660 | | | 15 | | | 2.3 | |
| Noninterest expense | | | 888 | | | 915 | | | (27 | ) | | (3.0 | ) |
| Income before income taxes | | | 660 | | | 621 | | | 39 | | | 6.3 | |
| Provision for income taxes | | | 216 | | | 204 | | | 12 | | | 5.9 | |
| Net income | | $ | 444 | | $ | 417 | | $ | 27 | | | 6.5 | % |
| PER SHARE DATA | | | | | | | | | | | | | |
| Basic earnings | | $ | .81 | | $ | .77 | | $ | .04 | | | 5.2 | % |
| Diluted earnings | | | .80 | | | .77 | | | .03 | | | 3.9 | |
| Weighted average shares (in thousands) - | Basic | | 550,603 | | | 538,911 | | | | | | | |
| | Diluted | | 555,336 | | | 544,286 | | | | | | | |
| PERFORMANCE RATIOS BASED ON NET INCOME | | | | | | | | | | | | | |
| Return on average assets | | | 1.37 | % | | 1.42 | % | | | | | | |
| Return on average equity | | | 14.24 | | | 14.39 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 53.3 | | | 56.2 | | | | | | | |
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| NOTES: Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein. | |
| Applicable ratios are annualized. | |
| (1) | Operating earnings exclude the effect of merger-related and restructuring charges or credits and nonrecurring items. These amounts totaled $4 million and $7 million, net of tax, in the third quarters of 2007 and 2006, 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 and restructuring 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, net of deferred taxes, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
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| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 6 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | |
| | | For the Nine Months Ended | | | Increase (Decrease) | |
| (Dollars in millions, except per share data) | | 9/30/07 | 9/30/06 | | | $ | | | % | |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | | |
| Interest income - taxable equivalent | | $ | 5,933 | | $ | 5,093 | | $ | 840 | | | 16.5 | % |
| Interest expense | | | 2,993 | | | 2,275 | | | 718 | | | 31.6 | |
| Net interest income - taxable equivalent | | | 2,940 | | | 2,818 | | | 122 | | | 4.3 | |
| Less: Taxable equivalent adjustment | | | 51 | | | 66 | | | (15 | ) | | (22.7 | ) |
| Net interest income | | | 2,889 | | | 2,752 | | | 137 | | | 5.0 | |
| Provision for credit losses | | | 264 | | | 167 | | | 97 | | | 58.1 | |
| Net interest income after provision for credit losses | | 2,625 | | | 2,585 | | | 40 | | | 1.5 | |
| Noninterest income | | | 2,056 | | | 1,919 | | | 137 | | | 7.1 | |
| Noninterest expense | | | 2,676 | | | 2,613 | | | 63 | | | 2.4 | |
| Operating earnings before income taxes | | | 2,005 | | | 1,891 | | | 114 | | | 6.0 | |
| Provision for income taxes | | | 671 | | | 626 | | | 45 | | | 7.2 | |
| Operating earnings (1) | | $ | 1,334 | | $ | 1,265 | | $ | 69 | | | 5.5 | % |
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Basic earnings | | $ | 2.44 | | $ | 2.35 | | $ | .09 | | | 3.8 | % |
| Diluted earnings | | | 2.42 | | | 2.33 | | | .09 | | | 3.9 | |
| Weighted average shares (in thousands) - | Basic | | 546,978 | | | 538,578 | | | | | | | |
| | Diluted | | 552,153 | | | 543,496 | | | | | | | |
| Dividends paid per share | | $ | 1.30 | | $ | 1.18 | | $ | .12 | | | 10.2 | % |
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Return on average assets | | | 1.43 | % | | 1.50 | % | | | | | | |
| Return on average equity | | | 14.86 | | | 14.98 | | | | | | | |
| Net yield on earning assets (taxable equivalent) | | | 3.54 | | | 3.75 | | | | | | | |
| Noninterest income as a percentage of | | | | | | | | | | | | | |
| total income (taxable equivalent) (2) | | | 41.1 | | | 40.4 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 53.3 | | | 55.0 | | | | | | | |
| CASH BASIS PERFORMANCE | | | | | | | | | | | | | |
| BASED ON OPERATING EARNINGS (1)(3) | | | | | | | | | | | | | |
| Cash basis operating earnings | | $ | 1,384 | | $ | 1,320 | | $ | 64 | | | 4.8 | % |
| Diluted earnings per share | | | 2.51 | | | 2.43 | | | .08 | | | 3.3 | |
| Return on average tangible assets | | | 1.55 | % | | 1.64 | % | | | | | | |
| Return on average tangible equity | | | 27.83 | | | 27.35 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 51.7 | | | 53.3 | | | | | | | |
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| | | For the Nine Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | 9/30/07 | 9/30/06 | $ | % |
| INCOME STATEMENTS | | | | | | | | | | | | | |
| Interest income | | $ | 5,882 | | $ | 5,027 | | $ | 855 | | | 17.0 | % |
| Interest expense | | | 2,993 | | | 2,275 | | | 718 | | | 31.6 | |
| Net interest income | | | 2,889 | | | 2,752 | | | 137 | | | 5.0 | |
| Provision for credit losses | | | 264 | | | 167 | | | 97 | | | 58.1 | |
| Net interest income after provision for credit losses | | 2,625 | | | 2,585 | | | 40 | | | 1.5 | |
| Noninterest income | | | 2,056 | | | 1,919 | | | 137 | | | 7.1 | |
| Noninterest expense | | | 2,694 | | | 2,594 | | | 100 | | | 3.9 | |
| Income before income taxes | | | 1,987 | | | 1,910 | | | 77 | | | 4.0 | |
| Provision for income taxes | | | 664 | | | 633 | | | 31 | | | 4.9 | |
| Net income | | $ | 1,323 | | $ | 1,277 | | $ | 46 | | | 3.6 | % |
| PER SHARE DATA | | | | | | | | | | | | | |
| Basic earnings | | $ | 2.42 | | $ | 2.37 | | $ | .05 | | | 2.1 | % |
| Diluted earnings | | | 2.40 | | | 2.35 | | | .05 | | | 2.1 | |
| Weighted average shares (in thousands) - | Basic | | 546,978 | | | 538,578 | | | | | | | |
| | Diluted | | 552,153 | | | 543,496 | | | | | | | |
| PERFORMANCE RATIOS BASED ON NET INCOME | | | | | | | | | | | | | |
| Return on average assets | | | 1.42 | % | | 1.51 | % | | | | | | |
| Return on average equity | | | 14.74 | | | 15.13 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 53.6 | | | 54.6 | | | | | | | |
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| NOTES: Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein. | |
| Applicable ratios are annualized. | | | | | | | | | | | | | |
| (1) | Operating earnings exclude the effect of merger-related and restructuring charges or credits and nonrecurring items. These amounts totaled $11 million and $(12 million), net of tax, in 2007 and 2006, 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 and restructuring 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, net of deferred taxes, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
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| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 7 | | Investor Relations | | FAX (336) 733-3132 | |
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| | | | | As of / For the Nine Months Ended | Increase (Decrease) |
| (Dollars in millions) | | | | 9/30/07 | 9/30/06 | $ | | | % | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | $ | 1,613 | | $ | 1,954 | | $ | (341 | ) | | | (17.5 | ) % |
| Interest-bearing deposits with banks | | | | | 604 | | | 567 | | | 37 | | | | 6.5 | |
| Federal funds sold and other earning assets | | | | | 507 | | | 371 | | | 136 | | | | 36.7 | |
| Securities available for sale | | | | | 23,061 | | | 20,733 | | | 2,328 | | | | 11.2 | |
| Trading securities | | | | | 1,587 | | | 888 | | | 699 | | | | 78.7 | |
| Total securities | | | | | 24,648 | | | 21,621 | | | 3,027 | | | | 14.0 | |
| Commercial loans and leases | | | | | 43,365 | | | 40,430 | | | 2,935 | | | | 7.3 | |
| Direct retail loans | | | | | 15,586 | | | 15,244 | | | 342 | | | | 2.2 | |
| Sales finance loans | | | | | 6,056 | | | 5,553 | | | 503 | | | | 9.1 | |
| Revolving credit loans | | | | | 1,535 | | | 1,355 | | | 180 | | | | 13.3 | |
| Mortgage loans | | | | | 17,051 | | | 15,328 | | | 1,723 | | | | 11.2 | |
| Specialized lending | | | | | 5,288 | | | 3,493 | | | 1,795 | | | | 51.4 | |
| Total loans and leases held for investment | | | | | 88,881 | | | 81,403 | | | 7,478 | | | | 9.2 | |
| Loans held for sale | | | | | 1,178 | | | 547 | | | 631 | | | | 115.4 | |
| Total loans and leases | | | | | 90,059 | | | 81,950 | | | 8,109 | | | | 9.9 | |
| Allowance for loan and lease losses | | | | | 934 | | | 883 | | | 51 | | | | 5.8 | |
| Total earning assets | | | | | 116,057 | | | 105,001 | | | 11,056 | | | | 10.5 | |
| Premises and equipment, net | | | | | 1,504 | | | 1,387 | | | 117 | | | | 8.4 | |
| Goodwill | | | | | 5,132 | | | 4,824 | | | 308 | | | | 6.4 | |
| Core deposit and other intangibles | | | | | 491 | | | 478 | | | 13 | | | | 2.7 | |
| Other assets | | | | | 7,157 | | | 6,255 | | | 902 | | | | 14.4 | |
| Total assets | | | | | 130,781 | | | 118,524 | | | 12,257 | | | | 10.3 | |
| Noninterest-bearing deposits | | | | | 13,197 | | | 13,560 | | | (363 | ) | | | (2.7 | ) |
| Interest checking | | | | | 1,128 | | | 1,323 | | | (195 | ) | | | (14.7 | ) |
| Other client deposits | | | | | 35,391 | | | 32,732 | | | 2,659 | | | | 8.1 | |
| Client certificates of deposit | | | | | 26,315 | | | 24,356 | | | 1,959 | | | | 8.0 | |
| Total client deposits | | | | | 76,031 | | | 71,971 | | | 4,060 | | | | 5.6 | |
| Other interest-bearing deposits | | | | | 9,154 | | | 8,095 | | | 1,059 | | | | 13.1 | |
| Total deposits | | | | | 85,185 | | | 80,066 | | | 5,119 | | | | 6.4 | |
| Fed funds purchased, repos and other borrowings | | | | | 10,618 | | | 7,235 | | | 3,383 | | | | 46.8 | |
| Long-term debt | | | | | 19,059 | | | 16,159 | | | 2,900 | | | | 17.9 | |
| Total interest-bearing liabilities | | | | | 101,665 | | | 89,900 | | | 11,765 | | | | 13.1 | |
| Other liabilities | | | | | 3,517 | | | 3,330 | | | 187 | | | | 5.6 | |
| Total liabilities | | | | | 118,379 | | | 106,790 | | | 11,589 | | | | 10.9 | |
| Total shareholders' equity | | | | $ | 12,402 | | $ | 11,734 | | $ | 668 | | | | 5.7 | % |
| Average balances | | | | | | | | | | | | | | | | |
| Securities, at amortized cost | | | | $ | 23,090 | | $ | 21,260 | | $ | 1,830 | | | | 8.6 | % |
| Commercial loans and leases | | | | | 41,971 | | | 38,361 | | | 3,610 | | | | 9.4 | |
| Direct retail loans | | | | | 15,415 | | | 14,775 | | | 640 | | | | 4.3 | |
| Sales finance loans | | | | | 5,856 | | | 5,304 | | | 552 | | | | 10.4 | |
| Revolving credit loans | | | | | 1,430 | | | 1,321 | | | 109 | | | | 8.3 | |
| Mortgage loans | | | | | 17,217 | | | 15,277 | | | 1,940 | | | | 12.7 | |
| Specialized lending | | | | | 5,101 | | | 3,138 | | | 1,963 | | | | 62.6 | |
| Total loans and leases | | | | | 86,990 | | | 78,176 | | | 8,814 | | | | 11.3 | |
| Allowance for loan and lease losses | | | | | 914 | | | 854 | | | 60 | | | | 7.0 | |
| Other earning assets | | | | | 971 | | | 908 | | | 63 | | | | 6.9 | |
| Total earning assets | | | | | 111,051 | | | 100,344 | | | 10,707 | | | | 10.7 | |
| Total assets | | | | | 124,873 | | | 112,828 | | | 12,045 | | | | 10.7 | |
| Noninterest-bearing deposits | | | | | 13,188 | | | 13,194 | | | (6 | ) | | | (.0 | ) |
| Interest checking | | | | | 2,299 | | | 2,124 | | | 175 | | | | 8.2 | |
| Other client deposits | | | | | 34,035 | | | 31,073 | | | 2,962 | | | | 9.5 | |
| Client certificates of deposit | | | | | 25,822 | | | 21,840 | | | 3,982 | | | | 18.2 | |
| Total client deposits | | | | | 75,344 | | | 68,231 | | | 7,113 | | | | 10.4 | |
| Other interest-bearing deposits | | | | | 7,564 | | | 8,103 | | | (539 | ) | | | (6.7 | ) |
| Total deposits | | | | | 82,908 | | | 76,334 | | | 6,574 | | | | 8.6 | |
| Fed funds purchased, repos and other borrowings | | | | | 8,848 | | | 6,971 | | | 1,877 | | | | 26.9 | |
| Long-term debt | | | | | 17,769 | | | 14,132 | | | 3,637 | | | | 25.7 | |
| Total interest-bearing liabilities | | | | | 96,337 | | | 84,243 | | | 12,094 | | | | 14.4 | |
| Total shareholders' equity | | | | $ | 12,001 | | $ | 11,287 | | $ | 714 | | | | 6.3 | % |
| |
| |
| | | As of / For the Quarter Ended | |
| (Dollars in millions, except per share data) | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | | 9/30/06 | |
| MISCELLANEOUS INFORMATION | | | | | | | | | | | | | | | | |
| |
| Unrealized depreciation on | | | | | | | | | | | | | | | | |
| securities available for sale, net of tax | $ | (150 | ) | $ | (339 | ) | $ | (178 | ) | $ | (249 | ) | | $ | (313 | ) |
| Derivatives (notional value) | | 43,051 | | | 36,108 | | | 40,159 | | | 23,097 | | | | 25,054 | |
| Fair value of derivatives portfolio | | 34 | | | (175 | ) | | (40 | ) | | (45 | ) | | | (26 | ) |
| Common stock prices: | High | 43.00 | | | 43.02 | | | 44.30 | | | 44.74 | | | | 44.54 | |
| | Low | 36.95 | | | 39.13 | | | 39.54 | | | 42.48 | | | | 39.87 | |
| | End of period | 40.39 | | | 40.68 | | | 41.02 | | | 43.93 | | | | 43.78 | |
| Weighted average shares (in thousands) - | Basic | 550,603 | | | 548,385 | | | 541,851 | | | 540,807 | | | | 538,911 | |
| | Diluted | 555,336 | | | 553,935 | | | 547,230 | | | 546,618 | | | | 544,286 | |
| End of period shares outstanding (in thousands) | | 549,337 | | | 551,948 | | | 542,416 | | | 541,475 | | | | 540,652 | |
| End of period banking offices | | 1,501 | | | 1,507 | | | 1,472 | | | 1,459 | | | | 1,462 | |
| ATMs | | 2,166 | | | 2,170 | | | 2,121 | | | 2,125 | | | | 2,106 | |
| FTEs | | 28,886 | | | 28,961 | | | 28,876 | | | 29,344 | | | | 29,112 | |
| |
| NOTES: All items referring to average loans and leases include loans held for sale. |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 8 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | | | |
| |
| | | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | 9/30/07 | 6/30/07 | 3/31/07 | 12/31/06 | | 9/30/06 |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | | | | |
| Interest income - taxable equivalent | | | | | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,725 | | $ | 1,682 | | $ | 1,622 | | $ | 1,609 | | $ | 1,571 | |
| Interest and dividends on securities | | 305 | | | 285 | | | 277 | | | 255 | | | 243 | |
| Interest on short-term investments | | 14 | | | 13 | | | 10 | | | 24 | | | 11 | |
| Total interest income - taxable equivalent | | 2,044 | | | 1,980 | | | 1,909 | | | 1,888 | | | 1,825 | |
| Interest expense | | | | | | | | | | | | | | | |
| Interest on deposits | | 679 | | | 639 | | | 647 | | | 616 | | | 586 | |
| Interest on fed funds purchased, repos and other borrowings | | 110 | | | 102 | | | 87 | | | 80 | | | 75 | |
| Interest on long-term debt | | 263 | | | 254 | | | 212 | | | 214 | | | 204 | |
| Total interest expense | | 1,052 | | | 995 | | | 946 | | | 910 | | | 865 | |
| Net interest income - taxable equivalent | | 992 | | | 985 | | | 963 | | | 978 | | | 960 | |
| Less: Taxable equivalent adjustment | | 14 | | | 19 | | | 18 | | | 22 | | | 22 | |
| Net interest income | | 978 | | | 966 | | | 945 | | | 956 | | | 938 | |
| Provision for credit losses | | 105 | | | 88 | | | 71 | | | 73 | | | 62 | |
| Net interest income after provision for | | | | | | | | | | | | | | | |
| credit losses | | 873 | | | 878 | | | 874 | | | 883 | | | 876 | |
| Noninterest income | | | | | | | | | | | | | | | |
| Insurance commissions | | 206 | | | 229 | | | 197 | | | 214 | | | 209 | |
| Service charges on deposits | | 157 | | | 151 | | | 138 | | | 141 | | | 138 | |
| Other nondeposit fees and commissions | | 129 | | | 127 | | | 114 | | | 116 | | | 115 | |
| Investment banking and brokerage fees and commissions | | 87 | | | 89 | | | 82 | | | 75 | | | 82 | |
| Trust revenue | | 40 | | | 40 | | | 40 | | | 40 | | | 39 | |
| Mortgage banking income | | 27 | | | 31 | | | 30 | | | 24 | | | 23 | |
| Securities gains (losses), net | | 6 | | | 1 | | | (11 | ) | | 2 | | | - | |
| Other noninterest income | | 23 | | | 61 | | | 62 | | | 65 | | | 54 | |
| Total noninterest income | | 675 | | | 729 | | | 652 | | | 677 | �� | | 660 | |
| Noninterest expense | | | | | | | | | | | | | | | |
| Personnel expense | | 514 | | | 540 | | | 524 | | | 533 | | | 524 | |
| Occupancy and equipment expense | | 118 | | | 117 | | | 116 | | | 118 | | | 114 | |
| Foreclosed property expense | | 5 | | | 6 | | | 7 | | | 6 | | | 4 | |
| Amortization of intangibles | | 26 | | | 26 | | | 25 | | | 27 | | | 27 | |
| Other noninterest expense | | 218 | | | 229 | | | 205 | | | 229 | | | 236 | |
| Total noninterest expense | | 881 | | | 918 | | | 877 | | | 913 | | | 905 | |
| Operating earnings before income taxes | | 667 | | | 689 | | | 649 | | | 647 | | | 631 | |
| Provision for income taxes | | 219 | | | 228 | | | 224 | | | 205 | | | 207 | |
| Operating earnings (1) | $ | 448 | | $ | 461 | | $ | 425 | | $ | 442 | | $ | 424 | |
| PER SHARE DATA BASED ON | | | | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | | | | |
| Basic earnings | $ | .81 | | $ | .84 | | $ | .78 | | $ | .82 | | $ | .79 | |
| Diluted earnings | | .81 | | | .83 | | | .78 | | | .81 | | | .78 | |
| Dividends paid per share | | .46 | | | .42 | | | .42 | | | .42 | | | .42 | |
| PERFORMANCE RATIOS BASED ON | | | | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | | | | |
| Return on average assets | | 1.38 | % | | 1.48 | % | | 1.42 | % | | 1.48 | % | | 1.44 | % |
| Return on average equity | | 14.38 | | | 15.28 | | | 14.94 | | | 14.70 | | | 14.60 | |
| Net yield on earning assets (taxable equivalent) | | 3.45 | | | 3.55 | | | 3.61 | | | 3.70 | | | 3.68 | |
| Efficiency ratio (taxable equivalent) (2) | | 52.9 | | | 53.2 | | | 53.7 | | | 54.8 | | | 55.6 | |
| Noninterest income as a percentage of | | | | | | | | | | | | | | | |
| total income (taxable equivalent) (2) | | 40.1 | | | 42.6 | | | 40.6 | | | 40.9 | | | 40.8 | |
| Average earning assets as a percentage of | | | | | | | | | | | | | | | |
| average total assets | | 89.0 | | | 88.9 | | | 88.9 | | | 88.6 | | | 88.8 | |
| Average loans and leases as a percentage of | | | | | | | | | | | | | | | |
| average deposits | | 105.8 | | | 106.1 | | | 102.9 | | | 103.5 | | | 102.4 | |
| CASH BASIS PERFORMANCE BASED ON | | | | | | | | | | | | | | | |
| OPERATING EARNINGS (1) (3) | | | | | | | | | | | | | | | |
| Cash basis operating earnings | $ | 466 | | $ | 477 | | $ | 441 | | $ | 460 | | $ | 441 | |
| Diluted earnings per share | | .84 | | | .86 | | | .81 | | | .84 | | | .81 | |
| Return on average tangible assets | | 1.50 | % | | 1.61 | % | | 1.54 | % | | 1.61 | % | | 1.57 | % |
| Return on average tangible equity | | 26.86 | | | 28.48 | | | 28.20 | | | 26.88 | | | 27.43 | |
| Efficiency ratio (taxable equivalent) (2) | | 51.3 | | | 51.7 | | | 52.1 | | | 53.1 | | | 53.9 | |
| |
| NOTES: Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein. | | |
| Applicable ratios are annualized. | | | | | | | | | | | | | | | |
| (1) | Operating earnings exclude the effect of merger-related and restructuring charges or credits and nonrecurring items. These amounts totaled $4 million, $3 million, $4 million, $191 million and $7 million, net of tax, for the quarters ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006, and September 30, 2006, 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 and restructuring 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, net of deferred taxes, and the net amortization of purchase accounting mark-to-market adjustments. See Reconciliation Tables included herein. |
| |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 9 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/07 | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | 9/30/06 | |
| |
| INCOME STATEMENTS | | | | | | | | | | | | | | |
| Interest income | | | | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,719 | $ | 1,675 | | $ | 1,613 | | $ | 1,601 | | $ | 1,562 | |
| Interest and dividends on securities | | 297 | | 273 | | | 268 | | | 241 | | | 230 | |
| Interest on short-term investments | | 14 | | 13 | | | 10 | | | 24 | | | 11 | |
| Total interest income | | 2,030 | | 1,961 | | | 1,891 | | | 1,866 | | | 1,803 | |
| Interest expense | | | | | | | | | | | | | | |
| Interest on deposits | | 679 | | 639 | | | 647 | | | 616 | | | 586 | |
| Interest on fed funds purchased, repos and other borrowings | | 110 | | 102 | | | 87 | | | 80 | | | 75 | |
| Interest on long-term debt | | 263 | | 254 | | | 212 | | | 214 | | | 204 | |
| Total interest expense | | 1,052 | | 995 | | | 946 | | | 910 | | | 865 | |
| Net interest income | | 978 | | 966 | | | 945 | | | 956 | | | 938 | |
| Provision for credit losses | | 105 | | 88 | | | 71 | | | 73 | | | 62 | |
| Net interest income after provision for | | | | | | | | | | | | | | |
| credit losses | | 873 | | 878 | | | 874 | | | 883 | | | 876 | |
| Noninterest income | | | | | | | | | | | | | | |
| Insurance commissions | | 206 | | 229 | | | 197 | | | 214 | | | 209 | |
| Service charges on deposits | | 157 | | 151 | | | 138 | | | 141 | | | 138 | |
| Other nondeposit fees and commissions | | 129 | | 127 | | | 114 | | | 116 | | | 115 | |
| Investment banking and brokerage fees and commissions | | 87 | | 89 | | | 82 | | | 75 | | | 82 | |
| Trust revenue | | 40 | | 40 | | | 40 | | | 40 | | | 39 | |
| Mortgage banking income | | 27 | | 31 | | | 30 | | | 24 | | | 23 | |
| Securities gains (losses), net | | 6 | | 1 | | | (11 | ) | | (73 | ) | | - | |
| Other noninterest income | | 23 | | 61 | | | 62 | | | 65 | | | 54 | |
| Total noninterest income | | 675 | | 729 | | | 652 | | | 602 | | | 660 | |
| Noninterest expense | | | | | | | | | | | | | | |
| Personnel expense | | 514 | | 540 | | | 524 | | | 533 | | | 524 | |
| Occupancy and equipment expense | | 118 | | 117 | | | 116 | | | 118 | | | 114 | |
| Foreclosed property expense | | 5 | | 6 | | | 7 | | | 6 | | | 4 | |
| Amortization of intangibles | | 26 | | 26 | | | 25 | | | 27 | | | 27 | |
| Merger-related and restructuring charges (credits), net | | 7 | | 5 | | | 6 | | | 9 | | | 10 | |
| Other noninterest expense | | 218 | | 229 | | | 205 | | | 229 | | | 236 | |
| Total noninterest expense | | 888 | | 923 | | | 883 | | | 922 | | | 915 | |
| Income before income taxes | | 660 | | 684 | | | 643 | | | 563 | | | 621 | |
| Provision for income taxes | | 216 | | 226 | | | 222 | | | 312 | | | 204 | |
| Net income | $ | 444 | $ | 458 | | $ | 421 | | $ | 251 | | $ | 417 | |
| PER SHARE DATA | | | | | | | | | | | | | | |
| Basic earnings | $ | .81 | $ | .84 | | $ | .78 | | $ | .46 | | $ | .77 | |
| Diluted earnings | | .80 | | .83 | | | .77 | | | .46 | | | .77 | |
| |
| | | For the Quarter Ended |
| | | 9/30/07 | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | 9/30/06 | |
| ANNUALIZED INTEREST YIELDS / RATES (1) | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | |
| Securities: | | | | | | | | | | | | | | |
| U.S. Treasury securities | | 4.48 | % | 4.53 | % | | 4.47 | % | | 4.48 | % | | 3.72 | % |
| U.S. government-sponsored entity securities | | 4.67 | | 4.60 | | | 4.39 | | | 4.17 | | | 4.00 | |
| Mortgage-backed securities | | 5.21 | | 5.02 | | | 5.09 | | | 5.10 | | | 5.10 | |
| States and political subdivisions | | 5.48 | | 6.87 | | | 6.85 | | | 7.00 | | | 6.90 | |
| Other securities | | 6.01 | | 5.94 | | | 7.03 | | | 6.45 | | | 5.24 | |
| Trading securities | | 4.54 | | 4.36 | | | 5.89 | | | 3.45 | | | 3.31 | |
| Total securities | | 5.02 | | 4.94 | | | 5.06 | | | 4.72 | | | 4.47 | |
| Loans: | | | | | | | | | | | | | | |
| Commercial loans and leases | | 7.80 | | 7.92 | | | 7.89 | | | 7.97 | | | 8.00 | |
| Consumer loans | | 7.58 | | 7.53 | | | 7.51 | | | 7.44 | | | 7.38 | |
| Mortgage loans | | 6.05 | | 5.96 | | | 5.90 | | | 5.85 | | | 5.79 | |
| Specialized lending | | 13.02 | | 13.37 | | | 13.62 | | | 15.29 | | | 15.32 | |
| Total loans | | 7.70 | | 7.75 | | | 7.73 | | | 7.73 | | | 7.70 | |
| Other earning assets (2) | | 4.96 | | 5.26 | | | 4.96 | | | 10.44 | | | 4.16 | |
| Total earning assets | | 7.11 | | 7.14 | | | 7.17 | | | 7.14 | | | 6.99 | |
| Interest expense: | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | |
| Interest checking | | 2.33 | | 2.30 | | | 2.38 | | | 2.29 | | | 1.94 | |
| Other client deposits | | 2.94 | | 2.85 | | | 2.82 | | | 2.76 | | | 2.61 | |
| Client certificates of deposit | | 4.64 | | 4.63 | | | 4.60 | | | 4.53 | | | 4.33 | |
| Other interest-bearing deposits | | 5.22 | | 5.34 | | | 5.35 | | | 5.35 | | | 5.36 | |
| Total interest-bearing deposits | | 3.80 | | 3.73 | | | 3.77 | | | 3.67 | | | 3.54 | |
| Fed funds purchased, repos and other borrowings (2) | | 4.43 | | 4.55 | | | 4.61 | | | 4.51 | | | 4.43 | |
| Long-term debt | | 5.59 | | 5.51 | | | 5.32 | | | 5.27 | | | 5.28 | |
| Total interest-bearing liabilities | | 4.20 | | 4.15 | | | 4.11 | | | 4.02 | | | 3.91 | |
| Net yield on earning assets | | 3.45 | % | 3.55 | % | | 3.61 | % | | 3.70 | % | | 3.68 | % |
| |
| NOTES: (1) | Fully taxable equivalent yields. Securities yields calculated based on amortized cost. |
| (2) | The fourth quarter of 2006 includes interest income and expense associated with a deposit placed with the IRS to curtail the accrual of interest on disputed tax payments. |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 10 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | | | | |
| | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | | 9/30/06 | |
| SELECTED BALANCE SHEET DATA | | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | | |
| Securities available for sale | $ | 23,061 | | $ | 22,254 | | $ | 20,898 | | $ | 20,721 | | $ | | 20,733 | |
| Trading securities | | 1,587 | | | 1,067 | | | 906 | | | 2,147 | | | | 888 | |
| Total securities | | 24,648 | | | 23,321 | | | 21,804 | | | 22,868 | | | | 21,621 | |
| Commercial loans and leases | | 43,365 | | | 42,632 | | | 41,238 | | | 41,300 | | | | 40,430 | |
| Direct retail loans | | 15,586 | | | 15,520 | | | 15,283 | | | 15,312 | | | | 15,244 | |
| Sales finance loans | | 6,056 | | | 5,889 | | | 5,774 | | | 5,683 | | | | 5,553 | |
| Revolving credit loans | | 1,535 | | | 1,461 | | | 1,386 | | | 1,414 | | | | 1,355 | |
| Mortgage loans | | 17,051 | | | 16,640 | | | 16,011 | | | 15,596 | | | | 15,328 | |
| Specialized lending | | 5,288 | | | 5,248 | | | 4,956 | | | 3,606 | | | | 3,493 | |
| Total loans and leases held for investment | | 88,881 | | | 87,390 | | | 84,648 | | | 82,911 | | | | 81,403 | |
| Loans held for sale | | 1,178 | | | 1,152 | | | 672 | | | 680 | | | | 547 | |
| Total loans and leases | | 90,059 | | | 88,542 | | | 85,320 | | | 83,591 | | | | 81,950 | |
| Allowance for loan and lease losses | | 934 | | | 920 | | | 896 | | | 888 | | | | 883 | |
| Other earning assets | | 1,111 | | | 1,188 | | | 782 | | | 826 | | | | 938 | |
| Total earning assets | | 116,057 | | | 113,599 | | | 108,193 | | | 107,676 | | | | 105,001 | |
| Total assets | | 130,781 | | | 127,577 | | | 121,694 | | | 121,351 | | | | 118,524 | |
| Noninterest-bearing deposits | | 13,197 | | | 13,641 | | | 13,533 | | | 13,393 | | | | 13,560 | |
| Interest checking | | 1,128 | | | 1,384 | | | 1,288 | | | 1,333 | | | | 1,323 | |
| Other client deposits | | 35,391 | | | 35,741 | | | 34,657 | | | 34,062 | | | | 32,732 | |
| Client certificates of deposit | | 26,315 | | | 27,445 | | | 25,322 | | | 24,987 | | | | 24,356 | |
| Total client deposits | | 76,031 | | | 78,211 | | | 74,800 | | | 73,775 | | | | 71,971 | |
| Other interest-bearing deposits | | 9,154 | | | 5,868 | | | 5,039 | | | 7,196 | | | | 8,095 | |
| Total deposits | | 85,185 | | | 84,079 | | | 79,839 | | | 80,971 | | | | 80,066 | |
| Fed funds purchased, repos and other borrowings | | 10,618 | | | 9,410 | | | 6,770 | | | 8,087 | | | | 7,235 | |
| Long-term debt | | 19,059 | | | 18,313 | | | 19,936 | | | 15,904 | | | | 16,159 | |
| Total interest-bearing liabilities | | 101,665 | | | 98,161 | | | 93,012 | | | 91,569 | | | | 89,900 | |
| Total shareholders' equity | | 12,402 | | | 12,125 | | | 11,650 | | | 11,745 | | | | 11,734 | |
| Goodwill | | 5,132 | | | 5,114 | | | 4,860 | | | 4,827 | | | | 4,824 | |
| Core deposit and other intangibles | | 491 | | | 504 | | | 479 | | | 454 | | | | 478 | |
| Total intangibles | | 5,623 | | | 5,618 | | | 5,339 | | | 5,281 | | | | 5,302 | |
| Mortgage servicing rights | $ | 567 | | $ | 609 | | $ | 525 | | $ | 512 | | $ | | 507 | |
| Average balances | | | | | | | | | | | | | | | | |
| Securities, at amortized cost | $ | 24,246 | | $ | 23,124 | | $ | 21,872 | | $ | 21,609 | | $ | | 21,736 | |
| Commercial loans and leases | | 42,838 | | | 41,935 | | | 41,122 | | | 40,758 | | | | 39,977 | |
| Direct retail loans | | 15,534 | | | 15,438 | | | 15,272 | | | 15,291 | | | | 15,100 | |
| Sales finance loans | | 6,006 | | | 5,823 | | | 5,734 | | | 5,623 | | | | 5,453 | |
| Revolving credit loans | | 1,485 | | | 1,417 | | | 1,387 | | | 1,362 | | | | 1,338 | |
| Mortgage loans | | 17,922 | | | 17,231 | | | 16,481 | | | 16,091 | | | | 15,803 | |
| Specialized lending | | 5,305 | | | 5,095 | | | 4,898 | | | 3,565 | | | | 3,373 | |
| Total loans and leases | | 89,090 | | | 86,939 | | | 84,894 | | | 82,690 | | | | 81,044 | |
| Allowance for loan and lease losses | | 931 | | | 916 | | | 894 | | | 891 | | | | 880 | |
| Other earning assets | | 1,105 | | | 967 | | | 841 | | | 917 | | | | 977 | |
| Total earning assets | | 114,441 | | | 111,030 | | | 107,607 | | | 105,216 | | | | 103,757 | |
| Total assets | | 128,633 | | | 124,848 | | | 121,054 | | | 118,777 | | | | 116,884 | |
| Noninterest-bearing deposits | | 13,248 | | | 13,367 | | | 12,946 | | | 13,289 | | | | 13,511 | |
| Interest checking | | 2,202 | | | 2,487 | | | 2,206 | | | 2,284 | | | | 2,228 | |
| Other client deposits | | 34,836 | | | 33,860 | | | 33,393 | | | 32,616 | | | | 31,713 | |
| Client certificates of deposit | | 26,456 | | | 25,919 | | | 25,076 | | | 24,712 | | | | 23,951 | |
| Total client deposits | | 76,742 | | | 75,633 | | | 73,621 | | | 72,901 | | | | 71,403 | |
| Other interest-bearing deposits | | 7,481 | | | 6,326 | | | 8,902 | | | 6,988 | | | | 7,720 | |
| Total deposits | | 84,223 | | | 81,959 | | | 82,523 | | | 79,889 | | | | 79,123 | |
| Fed funds purchased, repos and other borrowings | | 9,892 | | | 9,000 | | | 7,627 | | | 7,109 | | | | 6,720 | |
| Long-term debt | | 18,721 | | | 18,471 | | | 16,086 | | | 16,101 | | | | 15,433 | |
| Total interest-bearing liabilities | | 99,588 | | | 96,063 | | | 93,290 | | | 89,810 | | | | 87,765 | |
| Total shareholders' equity | $ | 12,359 | | $ | 12,113 | | $ | 11,522 | | $ | 11,941 | | $ | | 11,500 | |
| SELECTED CAPITAL INFORMATION (1) | | | | | | | | | | | | | | | | |
| Risk-based capital: | | | | | | | | | | | | | | | | |
| Tier 1 | $ | 9,048 | | $ | 8,936 | | $ | 7,987 | | $ | 8,226 | | $ | | 8,155 | |
| Total | | 14,118 | | | 13,968 | | | 12,791 | | | 13,016 | | | | 12,938 | |
| Risk-weighted assets | | 96,907 | | | 94,732 | | | 92,192 | | | 90,982 | | | | 88,619 | |
| Average quarterly tangible assets | | 123,480 | | | 119,636 | | | 116,161 | | | 114,007 | | | | 112,402 | |
| Risk-based capital ratios: | | | | | | | | | | | | | | | | |
| Tier 1 | | 9.3 | % | | 9.4 | % | | 8.7 | % | | 9.0 | % | | | 9.2 | % |
| Total | | 14.6 | | | 14.7 | | | 13.9 | | | 14.3 | | | | 14.6 | |
| Leverage capital ratio | | 7.3 | | | 7.5 | | | 6.9 | | | 7.2 | | | | 7.3 | |
| Equity as a percentage of total assets | | 9.5 | | | 9.5 | | | 9.6 | | | 9.7 | | | | 9.9 | |
| Tangible equity as a percentage of tangible assets (2) | | 5.5 | | | 5.5 | | | 5.5 | | | 5.7 | | | | 5.8 | |
| Book value per share | $ | 22.58 | | $ | 21.97 | | $ | 21.48 | | $ | 21.69 | | $ | | 21.70 | |
| Tangible book value per share (2) | | 12.60 | | | 12.05 | | | 11.89 | | | 12.20 | | | | 12.18 | |
| |
| NOTES: All items referring to average loans and leases include loans held for sale. |
| (1) | Current quarter risk-based capital information is preliminary. |
| (2) | Excludes the carrying value of goodwill and other intangible assets from shareholders' equity and total assets, net of deferred taxes, where applicable. |
| |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 11 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | | | |
| | As of / For the Quarter Ended |
| (Dollars in millions) | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | 9/30/06 | |
| ASSET QUALITY ANALYSIS | | | | | | | | | | | | | | | |
| Allowance For Credit Losses | | | | | | | | | | | | | | | |
| Beginning balance | $ | 926 | | $ | 901 | | $ | 888 | | $ | 884 | | $ | 871 | |
| Allowance for acquired (sold) loans, net | | - | | | 13 | | | 3 | | | (1 | ) | | 6 | |
| Provision for credit losses | | 105 | | | 88 | | | 71 | | | 73 | | | 62 | |
| Charge-offs | | | | | | | | | | | | | | | |
| Commercial loans and leases | | (18 | ) | | (11 | ) | | (10 | ) | | (15 | ) | | (10 | ) |
| Direct retail loans | | (20 | ) | | (22 | ) | | (12 | ) | | (13 | ) | | (12 | ) |
| Sales finance loans | | (9 | ) | | (6 | ) | | (6 | ) | | (5 | ) | | (5 | ) |
| Revolving credit loans | | (12 | ) | | (12 | ) | | (12 | ) | | (12 | ) | | (11 | ) |
| Mortgage loans | | (1 | ) | | (2 | ) | | (1 | ) | | (2 | ) | | (1 | ) |
| Specialized lending | | (45 | ) | | (40 | ) | | (41 | ) | | (36 | ) | | (31 | ) |
| Total charge-offs | | (105 | ) | | (93 | ) | | (82 | ) | | (83 | ) | | (70 | ) |
| Recoveries | | | | | | | | | | | | | | | |
| Commercial loans and leases | | 3 | | | 4 | | | 8 | | | 3 | | | 4 | |
| Direct retail loans | | 3 | | | 3 | | | 4 | | | 3 | | | 3 | |
| Sales finance loans | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | |
| Revolving credit loans | | 3 | | | 3 | | | 3 | | | 3 | | | 3 | |
| Specialized lending | | 4 | | | 5 | | | 4 | | | 4 | | | 3 | |
| Total recoveries | | 15 | | | 17 | | | 21 | | | 15 | | | 15 | |
| Net charge-offs | | (90 | ) | | (76 | ) | | (61 | ) | | (68 | ) | | (55 | ) |
| Ending balance | $ | 941 | | $ | 926 | | $ | 901 | | $ | 888 | | $ | 884 | |
| |
| Allowance For Credit Losses | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | $ | 934 | | $ | 920 | | $ | 896 | | $ | 888 | | $ | 883 | |
| Reserve for unfunded lending commitments | | 7 | | | 6 | | | 5 | | | - | | | 1 | |
| Total | $ | 941 | | $ | 926 | | $ | 901 | | $ | 888 | | $ | 884 | |
| Nonperforming Assets | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases: | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | 237 | | $ | 178 | | $ | 148 | | $ | 129 | | $ | 124 | |
| Direct retail loans | | 56 | | | 43 | | | 43 | | | 39 | | | 38 | |
| Sales finance loans | | 4 | | | 4 | | | 1 | | | 2 | | | 2 | |
| Mortgage loans | | 74 | | | 63 | | | 51 | | | 53 | | | 50 | |
| Specialized lending | | 48 | | | 36 | | | 33 | | | 37 | | | 31 | |
| Total nonaccrual loans and leases | | 419 | | | 324 | | | 276 | | | 260 | | | 245 | |
| Foreclosed real estate | | 82 | | | 61 | | | 56 | | | 54 | | | 55 | |
| Other foreclosed property | | 46 | | | 37 | | | 35 | | | 35 | | | 30 | |
| Restructured loans | | - | | | 1 | | | - | | | - | | | 1 | |
| Nonperforming assets | $ | 547 | | $ | 423 | | $ | 367 | | $ | 349 | | $ | 331 | |
| Loans 90 days or more past due | | | | | | | | | | | | | | | |
| and still accruing: | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | 21 | | $ | 18 | | $ | 18 | | $ | 14 | | $ | 8 | |
| Direct retail loans | | 18 | | | 17 | | | 13 | | | 20 | | | 17 | |
| Sales finance loans | | 14 | | | 12 | | | 16 | | | 17 | | | 13 | |
| Revolving credit loans | | 7 | | | 6 | | | 7 | | | 6 | | | 6 | |
| Mortgage loans | | 76 | | | 48 | | | 39 | | | 37 | | | 36 | |
| Specialized lending | | 13 | | | 7 | | | 10 | | | 8 | | | 7 | |
| Total loans 90 days or more past due | | | | | | | | | | | | | | | |
| and still accruing | | 149 | | | 108 | | | 103 | | | 102 | | | 87 | |
| Loans 90 days or more past due and still accruing | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases | | .17 | % | | .12 | % | | .12 | % | | .12 | % | | .11 | % |
| |
| Asset Quality Ratios | | | | | | | | | | | | | | | |
| Nonaccrual and restructured loans and leases | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases | | .47 | % | | .37 | % | | .32 | % | | .31 | % | | .30 | % |
| Nonperforming assets as a percentage of: | | | | | | | | | | | | | | | |
| Total assets | | .42 | | | .33 | | | .30 | | | .29 | | | .28 | |
| Loans and leases plus | | | | | | | | | | | | | | | |
| foreclosed property | | .61 | | | .48 | | | .43 | | | .42 | | | .40 | |
| Net charge-offs as a percentage of | | | | | | | | | | | | | | | |
| average loans and leases | | .40 | | | .35 | | | .29 | | | .33 | | | .27 | |
| Net charge-offs excluding specialized | | | | | | | | | | | | | | | |
| lending as a percentage of average | | | | | | | | | | | | | | | |
| loans and leases (1) | | .23 | | | .20 | | | .13 | | | .18 | | | .14 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | 1.04 | | | 1.04 | | | 1.05 | | | 1.06 | | | 1.08 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | | | | | | | | | | | | | | |
| held for investment | | 1.05 | | | 1.05 | | | 1.06 | | | 1.07 | | | 1.09 | |
| Ratio of allowance for loan and lease losses to: | | | | | | | | | | | | | | | |
| Net charge-offs | | 2.61 | x | | 3.04 | x | | 3.58 | x | | 3.29 | x | | 4.07 | x |
| Nonaccrual and restructured loans and leases | | 2.23 | | | 2.83 | | | 3.24 | | | 3.41 | | | 3.59 | |
| |
| 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 | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 12 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | |
| | As of / For the Nine Months Ended | Increase (Decrease) |
| (Dollars in millions) | | 9/30/07 | | | 9/30/06 | | | $ | | | % | |
| Allowance For Credit Losses | | | | | | | | | | | | |
| Beginning balance | $ | 888 | | $ | 830 | | $ | 58 | | | 7.0 | % |
| Allowance for acquired (sold) loans, net | | 16 | | | 35 | | | (19 | ) | | NM | |
| Provision for credit losses | | 264 | | | 167 | | | 97 | | | 58.1 | |
| Charge-offs | | | | | | | | | | | | |
| Commercial loans and leases | | (39 | ) | | (22 | ) | | (17 | ) | | 77.3 | |
| Direct retail loans | | (54 | ) | | (35 | ) | | (19 | ) | | 54.3 | |
| Sales finance loans | | (21 | ) | | (16 | ) | | (5 | ) | | 31.3 | |
| Revolving credit loans | | (36 | ) | | (33 | ) | | (3 | ) | | 9.1 | |
| Mortgage loans | | (4 | ) | | (4 | ) | | - | | | - | |
| Specialized lending | | (126 | ) | | (84 | ) | | (42 | ) | | 50.0 | |
| Total charge-offs | | (280 | ) | | (194 | ) | | (86 | ) | | 44.3 | |
| Recoveries | | | | | | | | | | | | |
| Commercial loans and leases | | 15 | | | 12 | | | 3 | | | 25.0 | |
| Direct retail loans | | 10 | | | 9 | | | 1 | | | 11.1 | |
| Sales finance loans | | 6 | | | 6 | | | - | | | - | |
| Revolving credit loans | | 9 | | | 8 | | | 1 | | | 12.5 | |
| Mortgage loans | | - | | | 1 | | | (1 | ) | | (100.0 | ) |
| Specialized lending | | 13 | | | 10 | | | 3 | | | 30.0 | |
| Total recoveries | | 53 | | | 46 | | | 7 | | | 15.2 | |
| Net charge-offs | | (227 | ) | | (148 | ) | | (79 | ) | | (53.4 | ) |
| Ending balance | $ | 941 | | $ | 884 | | $ | 57 | | | 6.4 | % |
| Allowance For Credit Losses | | | | | | | | | | | | |
| Allowance for loan and lease losses | $ | 934 | | $ | 883 | | $ | 51 | | | 5.8 | % |
| Reserve for unfunded lending commitments | | 7 | | | 1 | | | 6 | | | NM | |
| Total | $ | 941 | | $ | 884 | | $ | 57 | | | 6.4 | % |
| Asset Quality Ratios | | | | | | | | | | | | |
| Net charge-offs as a percentage of | | | | | | | | | | | | |
| average loans and leases | | .35 | % | | .25 | % | | | | | | |
| Net charge-offs excluding specialized | | | | | | | | | | | | |
| lending as a percentage of average | | | | | | | | | | | | |
| loans and leases (1) | | .19 | | | .13 | | | | | | | |
| Ratio of allowance for loan and lease losses to | | | | | | | | | | | | |
| net charge-offs | | 3.07 | x | | 4.47 | x | | | | | | |
| |
| |
| | | | | Percentage Increase (Decrease) |
| | | | | | QTD | | Annualized Link QTD | | YTD | |
| | | | | 3Q07 vs. 3Q06 | | 3Q07 vs. 2Q07 | | 2007 vs. 2006 | |
| PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FORPURCHASE ACQUISITIONS (2) | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | |
| Commercial loans and leases (3) | | | | | 6.5 | % | | 6.5 | % | | 6.4 | % |
| Direct retail loans | | | | | 2.0 | | | 1.6 | | | 3.1 | |
| Sales finance loans | | | | | 10.1 | | | 12.5 | | | 10.4 | |
| Revolving credit loans | | | | | 11.0 | | | 19.0 | | | 8.1 | |
| Mortgage loans (4) | | | | | 11.0 | | | 13.1 | | | 11.3 | |
| Specialized lending (5) | | | | | 11.1 | | | 16.4 | | | 12.8 | |
| Total loans and leases (3) (4) (5) | | | | | 7.1 | | | 8.2 | | | 7.4 | |
| |
| Noninterest-bearing deposits | | | | | (3.6 | ) | | (5.0 | ) | | (2.6 | ) |
| Interest checking | | | | | (7.0 | ) | | (50.8 | ) | | (1.2 | ) |
| Other client deposits | | | | | 8.6 | | | 10.3 | | | 7.4 | |
| Client certificates of deposit | | | | | 8.2 | | | 6.0 | | | 14.3 | |
| Total client deposits | | | | | 5.6 | | | 4.1 | | | 7.4 | |
| Other interest-bearing deposits | | | | | (3.1 | ) | | 72.4 | | | (8.0 | ) |
| Total deposits | | | | | 4.8 | % | | 9.3 | % | | 5.8 | % |
| |
| |
| PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMSBASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (2) | | | | | | | | | | | | |
| Net interest income - taxable equivalent (3) | | | | | (1.1 | ) | | 1.2 | | | (1.4 | ) |
| Noninterest income | | | | | | | | | | | | |
| Insurance commissions | | | | | (0.5 | ) | | (42.9 | ) | | 5.3 | |
| Service charges on deposits | | | | | 11.3 | | | 15.8 | | | 6.9 | |
| Other nondeposit fees and commissions | | | | | 11.2 | | | 3.1 | | | 11.4 | |
| Investment banking and brokerage fees and commissions | | | | | 6.0 | | | (4.5 | ) | | 6.6 | |
| Trust revenue | | | | | - | | | - | | | 4.3 | |
| Mortgage banking income (6) | | | | | (4.3 | ) | | (105.8 | ) | | - | |
| Securities gains (losses), net | | | | | NM | | | NM | | | NM | |
| Other income | | | | | (60.7 | ) | | NM | | | (4.6 | ) |
| Total noninterest income (6) | | | | | 0.6 | | | (34.1 | ) | | 6.0 | |
| Noninterest expense | | | | | | | | | | | | |
| Personnel expense | | | | | (3.7 | ) | | (21.9 | ) | | (0.3 | ) |
| Occupancy and equipment expense | | | | | 1.7 | | | - | | | 2.6 | |
| Other noninterest expense | | | | | (9.4 | ) | | (23.9 | ) | | (3.3 | ) |
| Total noninterest expense | | | | | (4.7 | )% | | (19.7 | ) % | | (0.8 | ) % |
| |
| 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 2007 and 2006. |
| (3) | Adjusted for leveraged leases due to the adoption of FSP FAS 13-2. |
| (4) | Adjusted for the average impact of $51 million in mortgage loans securitized in the fourth quarter of 2006. |
| (5) | Loans from specialized lending, excluding AFCO/CAFO from both 2006 and 2007, grew 19.2% and 22.4%, respectively, comparing the third quarter 2007 to the third quarter of 2006 and the YTD 2007 to the YTD 2006. In addition, total loans grew 7.4% and 7.7%, respectively, for the third quarter of 2007 compared to the third quarter of 2006 and the YTD 2007 to the YTD 2006. |
| (6) | 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 | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 13 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended |
| (Dollars in millions) | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | 9/30/06 | |
| SELECTED MORTGAGE BANKING INFORMATION | | | | | | | | | | | | | | | |
| Residential Mortgage Servicing Rights (1) | $ | 533 | | $ | 577 | | $ | 494 | | $ | 484 | | $ | 481 | |
| |
| Income Statement Impact of Mortgage Servicing | | | | | | | | | | | | | | | |
| Rights Valuation: | | | | | | | | | | | | | | | |
| MSRs fair value (decrease) increase | $ | (54 | ) | $ | 72 | | $ | 7 | | $ | - | | $ | (40 | ) |
| MSRs derivative hedge gains (losses) | | 60 | | | (73 | ) | | (3 | ) | | (3 | ) | | 40 | |
| Net | $ | 6 | | $ | (1 | ) | $ | 4 | | $ | (3 | ) | $ | - | |
| |
| Residential Mortgage Loan Originations | $ | 3,225 | | $ | 3,014 | | $ | 2,461 | | $ | 2,463 | | $ | 2,461 | |
| |
| Residential Mortgage Servicing Portfolio: | | | | | | | | | | | | | | | |
| Loans serviced for others | $ | 31,081 | | $ | 30,077 | | $ | 29,420 | | $ | 28,979 | | $ | 28,590 | |
| Bank owned loans serviced | | 18,059 | | | 17,611 | | | 16,571 | | | 16,257 | | | 15,847 | |
| Total servicing portfolio | | 49,140 | | | 47,688 | | | 45,991 | | | 45,236 | | | 44,437 | |
| Weighted Average Coupon Rate | | 5.98 | % | | 5.95 | % | | 5.93 | % | | 5.92 | % | | 5.90 | % |
| Weighted Average Servicing Fee | | .359 | | | .357 | | | .356 | | | .353 | | | .351 | |
| |
| | For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | | | 12/31/06 | | | 9/30/06 | |
| RECONCILIATION TABLE | | | | | | | | | | | | | | | |
| Net income | $ | 444 | | $ | 458 | | $ | 421 | | $ | 251 | | $ | 417 | |
| Merger-related and restructuring items, net of tax | | 4 | | | 3 | | | 4 | | | 5 | | | 7 | |
| Other, net of tax (4) | | - | | | - | | | - | | | 186 | | | - | |
| Operating earnings | | 448 | | | 461 | | | 425 | | | 442 | | | 424 | |
| Amortization of intangibles, net of tax | | 17 | | | 16 | | | 16 | | | 17 | | | 16 | |
| Amortization of mark-to-market adjustments, net of tax | | 1 | | | - | | | - | | | 1 | | | 1 | |
| Cash basis operating earnings | | 466 | | | 477 | | | 441 | | | 460 | | | 441 | |
| Return on average assets | | 1.37 | % | | 1.47 | % | | 1.41 | % | | .84 | % | | 1.42 | % |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | .01 | | | .01 | | | .02 | | | .02 | |
| Effect of other, net of tax (4) | | - | | | - | | | - | | | .62 | | | - | |
| Operating return on average assets | | 1.38 | | | 1.48 | | | 1.42 | | | 1.48 | | | 1.44 | |
| Effect of amortization of intangibles, net of tax (2) | | .12 | | | .13 | | | .12 | | | .13 | | | .13 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | |
| net of tax | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating return on average | | | | | | | | | | | | | | | |
| tangible assets | | 1.50 | | | 1.61 | | | 1.54 | | | 1.61 | | | 1.57 | |
| Return on average equity | | 14.24 | % | | 15.18 | % | | 14.81 | % | | 8.33 | % | | 14.39 | % |
| Effect of merger-related and restructuring items, net of tax | | .14 | | | .10 | | | .13 | | | .19 | | | .21 | |
| Effect of other, net of tax (4) | | - | | | - | | | - | | | 6.18 | | | - | |
| Operating return on average equity | | 14.38 | | | 15.28 | | | 14.94 | | | 14.70 | | | 14.60 | |
| Effect of amortization of intangibles, net of tax (2) | | 12.43 | | | 13.20 | | | 13.26 | | | 12.12 | | | 12.77 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | |
| net of tax | | .05 | | | - | | | - | | | .06 | | | .06 | |
| Cash basis operating return on average | | | | | | | | | | | | | | | |
| tangible equity | | 26.86 | | | 28.48 | | | 28.20 | | | 26.88 | | | 27.43 | |
| Efficiency ratio (taxable equivalent) (3) | | 53.3 | % | | 53.5 | % | | 54.1 | % | | 55.3 | % | | 56.2 | % |
| Effect of merger-related and restructuring items | | (.4 | ) | | (.3 | ) | | (.4 | ) | | (.5 | ) | | (.6 | ) |
| Effect of other (4) | | - | | | - | | | - | | | - | | | - | |
| Operating efficiency ratio (3) | | 52.9 | | | 53.2 | | | 53.7 | | | 54.8 | | | 55.6 | |
| Effect of amortization of intangibles | | (1.6 | ) | | (1.5 | ) | | (1.6 | ) | | (1.6 | ) | | (1.6 | ) |
| Effect of amortization of mark-to-market adjustments | | - | | | - | | | - | | | (.1 | ) | | (.1 | ) |
| Cash basis operating efficiency ratio (3) | | 51.3 | | | 51.7 | | | 52.1 | | | 53.1 | | | 53.9 | |
| Basic earnings per share | $ | .81 | | $ | .84 | | $ | .78 | | $ | .46 | | $ | .77 | |
| Effect of merger-related and restructuring items, net of tax | | - | | | - | | | - | | | .01 | | | .02 | |
| Effect of other, net of tax (4) | | - | | | - | | | - | | | .35 | | | - | |
| Operating basic earnings per share | | .81 | | | .84 | | | .78 | | | .82 | | | .79 | |
| Diluted earnings per share | $ | .80 | | $ | .83 | | $ | .77 | | $ | .46 | | $ | .77 | |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | - | | | .01 | | | .01 | | | .01 | |
| Effect of other, net of tax (4) | | - | | | - | | | - | | | .34 | | | - | |
| Operating diluted earnings per share | | .81 | | | .83 | | | .78 | | | .81 | | | .78 | |
| Effect of amortization of intangibles, net of tax | | .03 | | | .03 | | | .03 | | | .03 | | | .03 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | |
| net of tax | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating diluted earnings per share | | .84 | | | .86 | | | .81 | | | .84 | | | .81 | |
| |
| NOTES: Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein. |
| Applicable ratios are annualized. |
| (1) | Balances exclude commercial mortgage servicing rights totaling $34 million, $32 million, $31 million, $28 million and $26 million as of September 30, 2007, June 30, 2007,March 31, 2007, December 31, 2006 and September 30, 2006, respectively. |
| (2) | Reflects the effect of excluding average intangible assets from average assets and average equity, net of deferred taxes, 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 and restructuring charges or credits and nonrecurring items, where applicable. |
| (4) | Reflects an additional tax provision of $139 million related to leveraged leases and a loss on the sale of securities totaling $47 million, net of tax, in the fourth quarter of 2006. |
| |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| Page 14 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | |
| | For the Nine Months Ended |
| (Dollars in millions, except per share data) | 9/30/07 | | | 9/30/06 |
| RECONCILIATION TABLE | | | | | | | | |
| Net income | $ | 1,323 | | | | $ | 1,277 | |
| Merger-related and restructuring items, net of tax | | 11 | | | | | 6 | |
| Other, net of tax (3) | | - | | | | | (18 | ) |
| Operating earnings | | 1,334 | | | | | 1,265 | |
| Amortization of intangibles, net of tax | | 49 | | | | | 48 | |
| Amortization of mark-to-market adjustments, net of tax | | 1 | | | | | 7 | |
| Cash basis operating earnings | | 1,384 | | | | | 1,320 | |
| Return on average assets | | 1.42 | % | | | | 1.51 | % |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | | | .01 | |
| Effect of other, net of tax (3) | | - | | | | | (.02 | ) |
| Operating return on average assets | | 1.43 | | | | | 1.50 | |
| Effect of amortization of intangibles, net of tax (1) | | .12 | | | | | .13 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | - | | | | | .01 | |
| Cash basis operating return on average tangible assets | | 1.55 | | | | | 1.64 | |
| Return on average equity | | 14.74 | % | | | | 15.13 | % |
| Effect of merger-related and restructuring items, net of tax | | .12 | | | | | .06 | |
| Effect of other, net of tax (3) | | - | | | | | (.21 | ) |
| Operating return on average equity | | 14.86 | | | | | 14.98 | |
| Effect of amortization of intangibles, net of tax (1) | | 12.95 | | | | | 12.23 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | .02 | | | | | .14 | |
| Cash basis operating return on average tangible equity | | 27.83 | | | | | 27.35 | |
| Efficiency ratio (taxable equivalent) (2) | | 53.6 | % | | | | 54.6 | % |
| Effect of merger-related and restructuring items | | (.3 | ) | | | | (.2 | ) |
| Effect of other (3) | | - | | | | | .6 | |
| Operating efficiency ratio (2) | | 53.3 | | | | | 55.0 | |
| Effect of amortization of intangibles | | (1.6 | ) | | | | (1.6 | ) |
| Effect of amortization of mark-to-market adjustments | | - | | | | | (.1 | ) |
| Cash basis operating efficiency ratio (2) | | 51.7 | | | | | 53.3 | |
| Basic earnings per share | $ | 2.42 | | | | $ | 2.37 | |
| Effect of merger-related and restructuring items, net of tax | | .02 | | | | | .01 | |
| Effect of other, net of tax (3) | | - | | | | | (.03 | ) |
| Operating basic earnings per share | | 2.44 | | | | | 2.35 | |
| Diluted earnings per share | $ | 2.40 | | | | $ | 2.35 | |
| Effect of merger-related and restructuring items, net of tax | | .02 | | | | | .01 | |
| Effect of other, net of tax (3) | | - | | | | | (.03 | ) |
| Operating diluted earnings per share | | 2.42 | | | | | 2.33 | |
| Effect of amortization of intangibles, net of tax | | .09 | | | | | .09 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | - | | | | | .01 | |
| Cash basis operating diluted earnings per share | | 2.51 | | | | | 2.43 | |
| |
| NOTES: Prior period operating and cash basis results have been revised to include equity-based compensation expense to be comparable with the 2007 results presented herein. |
| Applicable ratios are annualized. |
| (1) | Reflects the effect of excluding average intangible assets from average assets and average equity, net of deferred taxes, 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 and restructuring charges or credits and nonrecurring items, where applicable. |
| (3) | Reflects a gain on the sale of duplicate facilities totaling $18 million, net of tax, in 2006. |
| |
