| | | | Exhibit 99.1 |
| April 17, 2008 | | | | |
| |
| |
| FOR IMMEDIATE RELEASE | | |
| |
| 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 increase in 1st quarter earnings
Net income totals $428 million, up 1.7% compared to 2007
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) reported today net income for the first quarter of 2008 totaling $428 million, or $.78 per diluted share, compared with $421 million, or $.77 per diluted share, earned during the first quarter of 2007. These results reflect increases of 1.7% and 1.3%, respectively, compared to the first quarter last year.
BB&T’s first quarter net income produced annualized returns on average assets and average shareholders’ equity of 1.29% and 13.30%, respectively, compared to prior year returns of 1.41% and 14.81%, respectively.
Operating earnings for the first quarter of 2008 totaled $401 million, or $.73 per diluted share, excluding $30 million in net after-tax income associated with the initial public offering by Visa and $3 million in net after-tax merger-related and restructuring charges. Operating earnings for the first quarter of 2007 totaled $425 million, or $.78 per diluted share, excluding $4 million in net after-tax merger-related and restructuring charges. These results reflect decreases of 5.6% and 6.4%, respectively, compared to the same period last year.
GAAP and operating results include $43 million in securities gains, a $12 million charge resulting from a valuation adjustment for bank owned life insurance, a $6 million reduction in earnings from trading activities and $223 million in provision for credit losses, all on a pre-tax basis. The securities gains resulted from a sale of available-for-sale securities, which allowed reinvestment at higher rates of return with no additional credit risk. The provision for credit losses exceeded net charge-offs by $98 million, which resulted in an increase in the allowance for loan and lease losses as a percentage of loans and leases held for investment to 1.19% .
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 $418 million for the first quarter of 2008, a decrease of 5.2% compared to the first quarter of 2007. Cash basis operating diluted earnings per share totaled $.76 for the first quarter of 2008, a decrease of 6.2% compared to $.81 earned during the same period in 2007. Cash basis operating earnings for the first quarter of2008 produced annualized returns on average tangible assets and average tangible shareholders’ equity of 1.32% and 22.81%, respectively, compared to prior year returns of 1.54% and 28.20%, respectively.
“I am pleased to report solid first quarter results, particularly given the ongoing challenges in residential real estate markets and the broader financial markets,” said Chairman and Chief Executive Officer John A. Allison. “Our core businesses are performing reasonably well, producing healthy loan growth and improved revenue growth during the quarter. We are also benefiting from a liability sensitive balance sheet, which generated a very positive improvement in our net interest margin during the quarter. While market conditions are challenging, they have provided opportunities for BB&T to develop new client relationships and I believe we will emerge from this credit cycle a stronger institution.”
Net Interest Margin Improves to 3.54%
BB&T’s fully taxable equivalent net interest income totaled $1.0 billion for the first quarter, an increase of 7.4% compared to the same quarter of 2007. The net interest margin was 3.54% for the current quarter, up 8 basis points from 3.46% in the fourth quarter of 2007. The increase reflects benefits realized from BB&T’s liability sensitive balance sheet, as short-term interest rates have decreased this quarter, and effective control of liability costs. The increase marks the second consecutive quarter that BB&T’s margin has improved.
Nonperforming Assets and Credit Losses Affected by Economic Conditions
“We experienced significant credit deterioration during the first quarter,” said Allison. “While we expect further increases in nonperforming assets and charge-offs going forward, we continue to believe that these issues will be manageable. We have added resources in our special assets group, and are working with our clients to assist them during this challenging economic environment.”
BB&T’s nonperforming asset levels and credit losses increased further in the first quarter of 2008 compared to the fourth quarter of 2007. Nonperforming assets, as a percentage of total assets, increased to .73% at Mar. 31, compared to .52% at Dec. 31, 2007, and .30% at Mar. 31, 2007. Annualized net charge-offs were .54% of average loans and leases for the first quarter of 2008, up from .48% in the fourth quarter of 2007, and .29% in the first quarter of 2007. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .32% of average loans and leases compared to .28% in the fourth quarter last year, and .13% in the first quarter of 2007.
The provision for credit losses totaled $223 million in the first quarter of 2008, an increase of $152 million compared to the same quarter last year, and exceeded net charge-offs by $98 million in the current quarter. The higher provision included an $84 million increase that resulted from the allowance for loan and lease losses increasing to 1.19% of loans and leases held for investment at Mar. 31, compared to 1.10% at Dec. 31, 2007. The increases in net charge-offs, nonperforming assets and the provision for credit losses were largely driven by continued challenges in residential real estate markets with the largest concentration of credit issues occurring in Georgia, Florida and metro Washington, D.C.
Loan Growth Remains Healthy – Up 9.2%
Average loans and leases totaled $92.7 billion for the first quarter of 2008, reflecting an increase of $7.8 billion, or 9.2%, compared to the first quarter of 2007. This increase was composed of growth in average commercial loans and leases, which increased $4.4 billion, or 10.8%; average mortgage loans, which increased $2.1 billion, or 12.7%; average consumer loans, which increased $879 million, or 3.9%; and growth in average loans originated by BB&T’s specialized lending subsidiaries, which increased $425 million, or 8.7%, compared to the first quarter last year.
BB&T’s Fee Income Producing Businesses Enjoy Healthy Growth
On an operating basis, noninterest income increased $85 million, or 13.0%, during the first quarter of 2008 compared to 2007. These increases include the impact of securities gains, higher revenues from BB&T’s insurance operations, service charges on deposit accounts, and other nondeposit fees and commissions, as well as solid performances from both BB&T’s investment banking and brokerage operations and mortgage banking operations.
Commissions from BB&T’s insurance operations increased 7.6% to $212 million in the current quarter compared with $197 million earned in the first quarter of 2007. This increase was primarily the result of new product initiatives that were introduced during the second half of 2007.
Service charges on deposit accounts totaled $154 million for the first quarter of 2008, an increase of 11.6% compared to $138 million earned in the same quarter last year. This increase was attributable to growth in revenues from overdraft items.
Other nondeposit fees and commissions totaled $128 million for the first quarter of 2008, an increase of 12.3% compared to the first quarter of 2007. This increase was generated primarily by growth in bankcard income and debit card related services.
BB&T’s investment banking and brokerage operations produced increased revenues as fees increased 4.9% to $86 million compared to $82 million earned in the same quarter last year. This increase was primarily driven by increased sales at BB&T Investment Services.
Revenues from mortgage banking operations totaled $59 million for the first quarter of 2008, an increase of $29 million, or 96.7% compared to the first quarter of 2007. This increase was affected by the adoption of new fair value accounting standards and the net change in the mortgage servicing rights valuation. Fair value accounting increased mortgage banking income by $31 million, and also resulted in a $16 million increase in personnel expense during the quarter. The net change in the valuation of mortgage servicing rights resulted in a $6 million decline compared to the first quarter of 2007. Excluding the impact of these items, mortgage banking income increased $4 million, or 15.4%, compared to the same period last year.
Other noninterest income, on an operating basis, totaled $15 million for the first quarter of 2008 compared to $62 million earned in the same quarter last year, a decrease of 75.8% . This decrease resulted from a decline of $15 million in bank owned life insurance, a prior-period sale of an insurance operation which produced a gain of $19 million in the first quarter last year, a $6 million reduction in income from trading activities and a $6 million charge related to the adoption of fair value accounting.
Capital Levels Remain Very Strong
BB&T’s tangible and regulatory capital levels exceeded all internal targets and remained very strong at Mar. 31. BB&T’s tangible capital ratio was 5.6% at Mar. 31, and the Tier 1 leverage ratio was 7.3% . In addition, BB&T’s Tier 1 risk-based capital and total risk-based capital ratios were 9.0% and 14.1%, respectively, all very healthy capital levels. Given these strong capital levels, management anticipates that BB&T will provide some increase in the cash dividend during 2008, which will mark the 37th consecutive year that BB&T has increased its dividend. This excellent history has gained BB&T recognition as a Mergent Dividend Achiever and a Standard and Poors Dividend Aristocrat.
BB&T Expands Insurance Business
BB&T expanded its Florida insurance operations with the acquisition of Burkey Risk Services of metro Orlando. Burkey Risk Services provides risk management and employee benefits services. BB&T also acquired Savannah Reinsurance Underwriting Management LLC, a reinsurance broker based in Stamford, Ct. Also, in early January 2008, BB&T Insurance Services expanded its metro Atlanta operation with the acquisitions of Ott & Company of Alpharetta, Ga., and Ramsay Title Group of Norcross, Ga.
At Mar. 31, BB&T had $136.4 billion in assets and operated 1,494 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 Apr. 16 was $32.60 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 first quarter 2008 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, May 2.
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Risk-based capital ratios are preliminary.
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.
| | |
| 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 | |
| | | | | | | | | | | | | |
| | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | 3/31/08 | 3/31/07 | $ | % |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | | |
| Interest income - taxable equivalent | | $ | 1,918 | | $ | 1,909 | | $ | 9 | | | .5 | % |
| Interest expense | | | 884 | | | 946 | | | (62 | ) | | (6.6 | ) |
| Net interest income - taxable equivalent | | | 1,034 | | | 963 | | | 71 | | | 7.4 | |
| Less: Taxable equivalent adjustment | | | 17 | | | 18 | | | (1 | ) | | (5.6 | ) |
| Net interest income | | | 1,017 | | | 945 | | | 72 | | | 7.6 | |
| Provision for credit losses | | | 223 | | | 71 | | | 152 | | | 214.1 | |
| Net interest income after provision for credit losses | | 794 | | | 874 | | | (80 | ) | | (9.2 | ) |
| Noninterest income | | | 737 | | | 652 | | | 85 | | | 13.0 | |
| Noninterest expense | | | 945 | | | 877 | | | 68 | | | 7.8 | |
| Operating earnings before income taxes | | | 586 | | | 649 | | | (63 | ) | | (9.7 | ) |
| Provision for income taxes | | | 185 | | | 224 | | | (39 | ) | | (17.4 | ) |
| Operating earnings (1) | | $ | 401 | | $ | 425 | | $ | (24 | ) | | (5.6 | ) % |
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Basic earnings | | $ | .73 | | $ | .78 | | $ | (.05 | ) | | (6.4 | ) % |
| Diluted earnings | | | .73 | | | .78 | | | (.05 | ) | | (6.4 | ) |
| Weighted average shares (in thousands) - | Basic | | 546,214 | | | 541,851 | | | | | | | |
| | Diluted | | 548,946 | | | 547,230 | | | | | | | |
| Dividends paid per share | | $ | .46 | | $ | .42 | | $ | .04 | | | 9.5 | % |
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Return on average assets | | | 1.21 | % | | 1.42 | % | | | | | | |
| Return on average equity | | | 12.47 | | | 14.94 | | | | | | | |
| Net yield on earning assets (taxable equivalent) | | | 3.54 | | | 3.61 | | | | | | | |
| Noninterest income as a percentage of | | | | | | | | | | | | | |
| total income (taxable equivalent) (2) | | | 40.2 | | | 40.6 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 54.0 | | | 53.7 | | | | | | | |
| CASH BASIS PERFORMANCE | | | | | | | | | | | | | |
| BASED ON OPERATING EARNINGS (1)(3) | | | | | | | | | | | | | |
| Cash basis operating earnings | | $ | 418 | | $ | 441 | | $ | (23 | ) | | (5.2 | )% |
| Diluted earnings per share | | | .76 | | | .81 | | | (.05 | ) | | (6.2 | ) |
| Return on average tangible assets | | | 1.32 | % | | 1.54 | % | | | | | | |
| Return on average tangible equity | | | 22.81 | | | 28.20 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.4 | | | 52.1 | | | | | | | |
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| |
| | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | 3/31/08 | 3/31/07 | $ | % |
| INCOME STATEMENTS | | | | | | | | | | | | | |
| Interest income | | $ | 1,895 | | $ | 1,891 | | $ | 4 | | | .2 | % |
| Interest expense | | | 878 | | | 946 | | | (68 | ) | | (7.2 | ) |
| Net interest income | | | 1,017 | | | 945 | | | 72 | | | 7.6 | |
| Provision for credit losses | | | 223 | | | 71 | | | 152 | | | 214.1 | |
| Net interest income after provision for credit losses | | 794 | | | 874 | | | (80 | ) | | (9.2 | ) |
| Noninterest income | | | 771 | | | 652 | | | 119 | | | 18.3 | |
| Noninterest expense | | | 936 | | | 883 | | | 53 | | | 6.0 | |
| Income before income taxes | | | 629 | | | 643 | | | (14 | ) | | (2.2 | ) |
| Provision for income taxes | | | 201 | | | 222 | | | (21 | ) | | (9.5 | ) |
| Net income | | $ | 428 | | $ | 421 | | $ | 7 | | | 1.7 | % |
| PER SHARE DATA | | | | | | | | | | | | | |
| Basic earnings | | $ | .78 | | $ | .78 | | $ | - | | | - | % |
| Diluted earnings | | | .78 | | | .77 | | | .01 | | | 1.3 | |
| Weighted average shares (in thousands) - | Basic | | 546,214 | | | 541,851 | | | | | | | |
| | Diluted | | 548,946 | | | 547,230 | | | | | | | |
| PERFORMANCE RATIOS BASED ON NET INCOME | | | | | | | | | | | | | |
| Return on average assets | | | 1.29 | % | | 1.41 | % | | | | | | |
| Return on average equity | | | 13.30 | | | 14.81 | | | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.4 | | | 54.1 | | | | | | | |
| |
| NOTES: | Applicable ratios are annualized. |
| | (1) Operating earnings exclude the effect of merger-related and restructuring charges or credits and nonrecurring items. These amounts totaled $(27 million) |
| | and $4 million, net of tax, in the first quarters of 2008 and 2007, 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. |
| | |
| 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 | |
| | | | | | | | | | | | | | | | |
| | | | | | As of / For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions) | | | | | 3/31/08 | 3/31/07 | $ | % |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | | $ | 1,848 | | $ | 1,749 | | $ | 99 | | | 5.7 | % |
| Interest-bearing deposits with banks | | | | | | 716 | | | 484 | | | 232 | | | 47.9 | |
| Federal funds sold and other earning assets | | | | | | 382 | | | 298 | | | 84 | | | 28.2 | |
| Securities available for sale | | | | | | 23,487 | | | 20,898 | | | 2,589 | | | 12.4 | |
| Trading securities | | | | | | 609 | | | 906 | | | (297 | ) | | (32.8 | ) |
| Total securities | | | | | | 24,096 | | | 21,804 | | | 2,292 | | | 10.5 | |
| Commercial loans and leases | | | | | | 46,277 | | | 41,238 | | | 5,039 | | | 12.2 | |
| Direct retail loans | | | | | | 15,570 | | | 15,283 | | | 287 | | | 1.9 | |
| Sales finance loans | | | | | | 6,052 | | | 5,774 | | | 278 | | | 4.8 | |
| Revolving credit loans | | | | | | 1,598 | | | 1,386 | | | 212 | | | 15.3 | |
| Mortgage loans | | | | | | 17,446 | | | 16,011 | | | 1,435 | | | 9.0 | |
| Specialized lending | | | | | | 5,186 | | | 4,956 | | | 230 | | | 4.6 | |
| Total loans and leases held for investment | | | | | | 92,129 | | | 84,648 | | | 7,481 | | | 8.8 | |
| Loans held for sale | | | | | | 1,822 | | | 672 | | | 1,150 | | | 171.1 | |
| Total loans and leases | | | | | | 93,951 | | | 85,320 | | | 8,631 | | | 10.1 | |
| Allowance for loan and lease losses | | | | | | 1,097 | | | 896 | | | 201 | | | 22.4 | |
| Total earning assets | | | | | | 119,174 | | | 108,193 | | | 10,981 | | | 10.1 | |
| Premises and equipment, net | | | | | | 1,544 | | | 1,431 | | | 113 | | | 7.9 | |
| Goodwill | | | | | | 5,226 | | | 4,860 | | | 366 | | | 7.5 | |
| Core deposit and other intangibles | | | | | | 474 | | | 479 | | | (5 | ) | | (1.0 | ) |
| Other assets | | | | | | 9,277 | | | 6,165 | | | 3,112 | | | 50.5 | |
| Total assets | | | | | | 136,417 | | | 121,694 | | | 14,723 | | | 12.1 | |
| Noninterest-bearing deposits | | | | | | 13,377 | | | 13,533 | | | (156 | ) | | (1.2 | ) |
| Interest checking | | | | | | 1,150 | | | 1,288 | | | (138 | ) | | (10.7 | ) |
| Other client deposits | | | | | | 35,196 | | | 34,657 | | | 539 | | | 1.6 | |
| Client certificates of deposit | | | | | | 26,819 | | | 25,322 | | | 1,497 | | | 5.9 | |
| Total client deposits | | | | | | 76,542 | | | 74,800 | | | 1,742 | | | 2.3 | |
| Other interest-bearing deposits | | | | | | 10,939 | | | 5,039 | | | 5,900 | | | 117.1 | |
| Total deposits | | | | | | 87,481 | | | 79,839 | | | 7,642 | | | 9.6 | |
| Fed funds purchased, repos and other borrowings | | | | | | 8,610 | | | 6,770 | | | 1,840 | | | 27.2 | |
| Long-term debt | | | | | | 22,544 | | | 19,936 | | | 2,608 | | | 13.1 | |
| Total interest-bearing liabilities | | | | | | 105,258 | | | 93,012 | | | 12,246 | | | 13.2 | |
| Other liabilities | | | | | | 4,940 | | | 3,499 | | | 1,441 | | | 41.2 | |
| Total liabilities | | | | | | 123,575 | | | 110,044 | | | 13,531 | | | 12.3 | |
| Total shareholders' equity | | | | | $ | 12,842 | | $ | 11,650 | | $ | 1,192 | | | 10.2 | % |
| Average balances | | | | | | | | | | | | | | | | |
| Securities, at amortized cost | | | | | $ | 23,414 | | $ | 21,872 | | $ | 1,542 | | | 7.1 | % |
| Commercial loans and leases | | | | | | 45,549 | | | 41,122 | | | 4,427 | | | 10.8 | |
| Direct retail loans | | | | | | 15,639 | | | 15,272 | | | 367 | | | 2.4 | |
| Sales finance loans | | | | | | 6,031 | | | 5,734 | | | 297 | | | 5.2 | |
| Revolving credit loans | | | | | | 1,602 | | | 1,387 | | | 215 | | | 15.5 | |
| Mortgage loans | | | | | | 18,574 | | | 16,481 | | | 2,093 | | | 12.7 | |
| Specialized lending | | | | | | 5,323 | | | 4,898 | | | 425 | | | 8.7 | |
| Total loans and leases | | | | | | 92,718 | | | 84,894 | | | 7,824 | | | 9.2 | |
| Allowance for loan and lease losses | | | | | | 1,018 | | | 894 | | | 124 | | | 13.9 | |
| Other earning assets | | | | | | 1,282 | | | 840 | | | 442 | | | 52.6 | |
| Total earning assets | | | | | | 117,414 | | | 107,606 | | | 9,808 | | | 9.1 | |
| Total assets | | | | | | 133,425 | | | 121,054 | | | 12,371 | | | 10.2 | |
| Noninterest-bearing deposits | | | | | | 12,676 | | | 12,946 | | | (270 | ) | | (2.1 | ) |
| Interest checking | | | | | | 2,301 | | | 2,206 | | | 95 | | | 4.3 | |
| Other client deposits | | | | | | 34,851 | | | 33,393 | | | 1,458 | | | 4.4 | |
| Client certificates of deposit | | | | | | 27,061 | | | 25,076 | | | 1,985 | | | 7.9 | |
| Total client deposits | | | | | | 76,889 | | | 73,621 | | | 3,268 | | | 4.4 | |
| Other interest-bearing deposits | | | | | | 9,694 | | | 8,902 | | | 792 | | | 8.9 | |
| Total deposits | | | | | | 86,583 | | | 82,523 | | | 4,060 | | | 4.9 | |
| Fed funds purchased, repos and other borrowings | | | | | | 10,760 | | | 7,627 | | | 3,133 | | | 41.1 | |
| Long-term debt | | | | | | 19,201 | | | 16,086 | | | 3,115 | | | 19.4 | |
| Total interest-bearing liabilities | | | | | | 103,868 | | | 93,290 | | | 10,578 | | | 11.3 | |
| Total shareholders' equity | | | | | $ | 12,929 | | $ | 11,522 | | $ | 1,407 | | | 12.2 | % |
| |
| |
| | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 |
| MISCELLANEOUS INFORMATION | | | | | | | | | | | | | | | | |
| |
| Unrealized appreciation (depreciation) on | | | | | | | | | | | | | | | | |
| securities available for sale, net of tax | | $ | (18 | ) | $ | (28 | ) | $ | (150 | ) | $ | (339 | ) | $ | (178 | ) |
| Derivatives (notional value) | | | 57,925 | | | 47,197 | | | 43,051 | | | 36,108 | | | 40,159 | |
| Fair value of derivatives portfolio | | | 380 | | | 181 | | | 34 | | | (175 | ) | | (40 | ) |
| Common stock prices: | High | | 36.96 | | | 42.61 | | | 43.00 | | | 43.02 | | | 44.30 | |
| | Low | | 25.92 | | | 30.36 | | | 36.95 | | | 39.13 | | | 39.54 | |
| | End of period | | 32.06 | | | 30.67 | | | 40.39 | | | 40.68 | | | 41.02 | |
| Weighted average shares (in thousands) - | Basic | | 546,214 | | | 547,795 | | | 550,603 | | | 548,385 | | | 541,851 | |
| | Diluted | | 548,946 | | | 551,078 | | | 555,336 | | | 553,935 | | | 547,230 | |
| End of period shares outstanding (in thousands) | | | 546,799 | | | 545,955 | | | 549,337 | | | 551,948 | | | 542,416 | |
| End of period banking offices | | | 1,494 | | | 1,492 | | | 1,501 | | | 1,507 | | | 1,472 | |
| ATMs | | | 2,165 | | | 2,158 | | | 2,166 | | | 2,170 | | | 2,121 | |
| FTEs | | | 29,726 | | | 29,394 | | | 28,886 | | | 28,961 | | | 28,876 | |
| |
| 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 7 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | | |
| | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 3/31/08 | | 12/31/07 | | 9/30/07 | | 6/30/07 | | 3/31/07 | | |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | |
| Interest income - taxable equivalent | | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,604 | $ | 1,715 | $ | 1,730 | $ | 1,682 | $ | 1,622 | | |
| Interest and dividends on securities | | 303 | | 308 | | 307 | | 285 | | 277 | | |
| Interest on short-term investments | | 11 | | 14 | | 14 | | 13 | | 10 | | |
| Total interest income - taxable equivalent | | 1,918 | | 2,037 | | 2,051 | | 1,980 | | 1,909 | | |
| Interest expense | | | | | | | | | | | | |
| Interest on deposits | | 564 | | 655 | | 679 | | 639 | | 647 | | |
| Interest on fed funds purchased, repos and other borrowings | | 94 | | 118 | | 117 | | 102 | | 87 | | |
| Interest on long-term debt | | 226 | | 256 | | 263 | | 254 | | 212 | | |
| Total interest expense | | 884 | | 1,029 | | 1,059 | | 995 | | 946 | | |
| Net interest income - taxable equivalent | | 1,034 | | 1,008 | | 992 | | 985 | | 963 | | |
| Less: Taxable equivalent adjustment | | 17 | | 17 | | 14 | | 19 | | 18 | | |
| Net interest income | | 1,017 | | 991 | | 978 | | 966 | | 945 | | |
| Provision for credit losses | | 223 | | 184 | | 105 | | 88 | | 71 | | |
| Net interest income after provision for | | | | | | | | | | | | |
| credit losses | | 794 | | 807 | | 873 | | 878 | | 874 | | |
| Noninterest income | | | | | | | | | | | | |
| Insurance commissions | | 212 | | 221 | | 206 | | 229 | | 197 | | |
| Service charges on deposits | | 154 | | 165 | | 157 | | 151 | | 138 | | |
| Other nondeposit fees and commissions | | 128 | | 133 | | 129 | | 127 | | 114 | | |
| Investment banking and brokerage fees and commissions | | 86 | | 85 | | 87 | | 89 | | 82 | | |
| Trust revenue | | 40 | | 42 | | 40 | | 40 | | 40 | | |
| Mortgage banking income | | 59 | | 27 | | 27 | | 31 | | 30 | | |
| Securities gains (losses), net | | 43 | | 1 | | 6 | | 1 | | (11 | ) | |
| Other noninterest income | | 15 | | 44 | | 23 | | 61 | | 62 | | |
| Total noninterest income | | 737 | | 718 | | 675 | | 729 | | 652 | | |
| Noninterest expense | | | | | | | | | | | | |
| Personnel expense | | 547 | | 516 | | 514 | | 540 | | 524 | | |
| Occupancy and equipment expense | | 123 | | 126 | | 118 | | 117 | | 116 | | |
| Foreclosed property expense | | 13 | | 13 | | 5 | | 6 | | 7 | | |
| Amortization of intangibles | | 27 | | 27 | | 26 | | 26 | | 25 | | |
| Other noninterest expense | | 235 | | 243 | | 218 | | 229 | | 205 | | |
| Total noninterest expense | | 945 | | 925 | | 881 | | 918 | | 877 | | |
| Operating earnings before income taxes | | 586 | | 600 | | 667 | | 689 | | 649 | | |
| Provision for income taxes | | 185 | | 185 | | 219 | | 228 | | 224 | | |
| Operating earnings (1) | $ | 401 | $ | 415 | $ | 448 | $ | 461 | $ | 425 | | |
| PER SHARE DATA BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Basic earnings | $ | .73 | $ | .76 | $ | .81 | $ | .84 | $ | .78 | | |
| Diluted earnings | | .73 | | .75 | | .81 | | .83 | | .78 | | |
| Dividends paid per share | | .46 | | .46 | | .46 | | .42 | | .42 | | |
| PERFORMANCE RATIOS BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Return on average assets | | 1.21 | % | 1.26 | % | 1.38 | % | 1.48 | % | 1.42 | % | |
| Return on average equity | | 12.47 | | 13.00 | | 14.38 | | 15.28 | | 14.94 | | |
| Net yield on earning assets (taxable equivalent) | | 3.54 | | 3.46 | | 3.45 | | 3.55 | | 3.61 | | |
| Efficiency ratio (taxable equivalent) (2) | | 54.0 | | 52.8 | | 52.9 | | 53.2 | | 53.7 | | |
| Noninterest income as a percentage of | | | | | | | | | | | | |
| total income (taxable equivalent) (2) | | 40.2 | | 41.7 | | 40.1 | | 42.6 | | 40.6 | | |
| Average earning assets as a percentage of | | | | | | | | | | | | |
| average total assets | | 88.0 | | 88.6 | | 89.0 | | 88.9 | | 88.9 | | |
| Average loans and leases as a percentage of | | | | | | | | | | | | |
| average deposits | | 107.1 | | 106.5 | | 105.8 | | 106.1 | | 102.9 | | |
| CASH BASIS PERFORMANCE BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) (3) | | | | | | | | | | | | |
| Cash basis operating earnings | $ | 418 | $ | 432 | $ | 466 | $ | 477 | $ | 441 | | |
| Diluted earnings per share | | .76 | | .78 | | .84 | | .86 | | .81 | | |
| Return on average tangible assets | | 1.32 | % | 1.37 | % | 1.50 | % | 1.61 | % | 1.54 | % | |
| Return on average tangible equity | | 22.81 | | 24.03 | | 26.86 | | 28.48 | | 28.20 | | |
| Efficiency ratio (taxable equivalent) (2) | | 52.4 | | 51.3 | | 51.3 | | 51.7 | | 52.1 | | |
| |
| NOTES: | Applicable ratios are annualized. |
| | (1) Operating earnings exclude the effect of merger-related and restructuring charges or credits and nonrecurring items. These amounts totaled $(27 million), |
| | $4 million, $4 million, $3 million and $4 million, net of tax, for the quarters ended March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007, |
| | and March 31, 2007, 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 8 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | | | | | | | |
| | | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 3/31/08 | | 12/31/07 | | 9/30/07 | | 6/30/07 | | 3/31/07 | |
| |
| INCOME STATEMENTS | | | | | | | | | | | |
| Interest income | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,595 | $ | 1,706 | $ | 1,719 | $ | 1,675 | $ | 1,613 | |
| Interest and dividends on securities | | 289 | | 292 | | 297 | | 273 | | 268 | |
| Interest on short-term investments | | 11 | | 14 | | 14 | | 13 | | 10 | |
| Total interest income | | 1,895 | | 2,012 | | 2,030 | | 1,961 | | 1,891 | |
| Interest expense | | | | | | | | | | | |
| Interest on deposits | | 564 | | 655 | | 679 | | 639 | | 647 | |
| Interest on fed funds purchased, repos and other borrowings | | 88 | | 110 | | 110 | | 102 | | 87 | |
| Interest on long-term debt | | 226 | | 256 | | 263 | | 254 | | 212 | |
| Total interest expense | | 878 | | 1,021 | | 1,052 | | 995 | | 946 | |
| Net interest income | | 1,017 | | 991 | | 978 | | 966 | | 945 | |
| Provision for credit losses | | 223 | | 184 | | 105 | | 88 | | 71 | |
| Net interest income after provision for | | | | | | | | | | | |
| credit losses | | 794 | | 807 | | 873 | | 878 | | 874 | |
| Noninterest income | | | | | | | | | | | |
| Insurance commissions | | 212 | | 221 | | 206 | | 229 | | 197 | |
| Service charges on deposits | | 154 | | 165 | | 157 | | 151 | | 138 | |
| Other nondeposit fees and commissions | | 128 | | 133 | | 129 | | 127 | | 114 | |
| Investment banking and brokerage fees and commissions | | 86 | | 85 | | 87 | | 89 | | 82 | |
| Trust revenue | | 40 | | 42 | | 40 | | 40 | | 40 | |
| Mortgage banking income | | 59 | | 27 | | 27 | | 31 | | 30 | |
| Securities gains (losses), net | | 43 | | 1 | | 6 | | 1 | | (11 | ) |
| Other noninterest income | | 49 | | 44 | | 23 | | 61 | | 62 | |
| Total noninterest income | | 771 | | 718 | | 675 | | 729 | | 652 | |
| Noninterest expense | | | | | | | | | | | |
| Personnel expense | | 547 | | 516 | | 514 | | 540 | | 524 | |
| Occupancy and equipment expense | | 123 | | 126 | | 118 | | 117 | | 116 | |
| Foreclosed property expense | | 13 | | 13 | | 5 | | 6 | | 7 | |
| Amortization of intangibles | | 27 | | 27 | | 26 | | 26 | | 25 | |
| Merger-related and restructuring charges (credits), net | | 5 | | 3 | | 7 | | 5 | | 6 | |
| Other noninterest expense | | 221 | | 257 | | 218 | | 229 | | 205 | |
| Total noninterest expense | | 936 | | 942 | | 888 | | 923 | | 883 | |
| Income before income taxes | | 629 | | 583 | | 660 | | 684 | | 643 | |
| Provision for income taxes | | 201 | | 172 | | 216 | | 226 | | 222 | |
| Net income | $ | 428 | $ | 411 | $ | 444 | $ | 458 | $ | 421 | |
| PER SHARE DATA | | | | | | | | | | | |
| Basic earnings | $ | .78 | $ | .75 | $ | .81 | $ | .84 | $ | .78 | |
| Diluted earnings | | .78 | | .75 | | .80 | | .83 | | .77 | |
| |
| | For the Quarter Ended |
| | | 3/31/08 | | 12/31/07 | | 9/30/07 | | 6/30/07 | | 3/31/07 | |
| ANNUALIZED INTEREST YIELDS / RATES (1) | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | |
| Securities: | | | | | | | | | | | |
| U.S. Treasury securities | | 4.69 | % | 4.59 | % | 4.48 | % | 4.53 | % | 4.47 | % |
| U.S. government-sponsored entity securities | | 4.75 | | 4.67 | | 4.67 | | 4.60 | | 4.39 | |
| Mortgage-backed securities | | 5.14 | | 5.27 | | 5.21 | | 5.02 | | 5.09 | |
| States and political subdivisions | | 6.32 | | 6.73 | | 6.36 | | 6.87 | | 6.85 | |
| Other securities | | 5.93 | | 6.43 | | 6.01 | | 5.94 | | 7.03 | |
| Trading securities | | 5.89 | | 4.06 | | 4.54 | | 4.36 | | 5.89 | |
| Total securities | | 5.18 | | 5.15 | | 5.05 | | 4.94 | | 5.06 | |
| Loans: | | | | | | | | | | | |
| Commercial loans and leases | | 6.47 | | 7.41 | | 7.85 | | 7.92 | | 7.89 | |
| Consumer loans | | 7.22 | | 7.53 | | 7.58 | | 7.53 | | 7.51 | |
| Mortgage loans | | 6.03 | | 6.07 | | 6.05 | | 5.96 | | 5.90 | |
| Specialized lending | | 13.22 | | 13.10 | | 13.02 | | 13.37 | | 13.62 | |
| Total loans | | 6.95 | | 7.50 | | 7.72 | | 7.75 | | 7.73 | |
| Other earning assets | | 3.41 | | 4.48 | | 4.96 | | 5.26 | | 4.96 | |
| Total earning assets | | 6.56 | | 6.98 | | 7.13 | | 7.14 | | 7.17 | |
| Interest expense: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Interest checking | | 1.76 | | 2.22 | | 2.33 | | 2.30 | | 2.38 | |
| Other client deposits | | 2.11 | | 2.69 | | 2.94 | | 2.85 | | 2.82 | |
| Client certificates of deposit | | 4.30 | | 4.58 | | 4.64 | | 4.63 | | 4.60 | |
| Other interest-bearing deposits | | 3.38 | | 4.72 | | 5.22 | | 5.34 | | 5.35 | |
| Total interest-bearing deposits | | 3.07 | | 3.60 | | 3.80 | | 3.73 | | 3.77 | |
| Fed funds purchased, repos and other borrowings | | 3.50 | | 4.37 | | 4.71 | | 4.55 | | 4.61 | |
| Long-term debt | | 4.73 | | 5.39 | | 5.59 | | 5.51 | | 5.32 | |
| Total interest-bearing liabilities | | 3.42 | | 4.02 | | 4.23 | | 4.15 | | 4.11 | |
| Net yield on earning assets | | 3.54 | % | 3.46 | % | 3.45 | % | 3.55 | % | 3.61 | % |
| |
| NOTES: | (1) Fully taxable equivalent yields. Securities yields calculated based on amortized cost. |
| | |
| 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) | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | | | 6/30/07 | | | 3/31/07 | |
| SELECTED BALANCE SHEET DATA | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | |
| Securities available for sale | $ | 23,487 | | $ | 22,419 | | $ | 23,061 | | $ | 22,254 | | $ | 20,898 | |
| Trading securities | | 609 | | | 1,009 | | | 1,587 | | | 1,067 | | | 906 | |
| Total securities | | 24,096 | | | 23,428 | | | 24,648 | | | 23,321 | | | 21,804 | |
| Commercial loans and leases | | 46,277 | | | 44,870 | | | 43,365 | | | 42,632 | | | 41,238 | |
| Direct retail loans | | 15,570 | | | 15,691 | | | 15,586 | | | 15,520 | | | 15,283 | |
| Sales finance loans | | 6,052 | | | 6,021 | | | 6,056 | | | 5,889 | | | 5,774 | |
| Revolving credit loans | | 1,598 | | | 1,618 | | | 1,535 | | | 1,461 | | | 1,386 | |
| Mortgage loans | | 17,446 | | | 17,467 | | | 17,051 | | | 16,640 | | | 16,011 | |
| Specialized lending | | 5,186 | | | 5,240 | | | 5,288 | | | 5,248 | | | 4,956 | |
| Total loans and leases held for investment | | 92,129 | | | 90,907 | | | 88,881 | | | 87,390 | | | 84,648 | |
| Loans held for sale | | 1,822 | | | 779 | | | 1,178 | | | 1,152 | | | 672 | |
| Total loans and leases | | 93,951 | | | 91,686 | | | 90,059 | | | 88,542 | | | 85,320 | |
| Allowance for loan and lease losses | | 1,097 | | | 1,004 | | | 934 | | | 920 | | | 896 | |
| Other earning assets | | 1,098 | | | 1,307 | | | 1,111 | | | 1,188 | | | 782 | |
| Total earning assets | | 119,174 | | | 116,466 | | | 116,057 | | | 113,599 | | | 108,193 | |
| Total assets | | 136,417 | | | 132,618 | | | 130,781 | | | 127,577 | | | 121,694 | |
| Noninterest-bearing deposits | | 13,377 | | | 13,059 | | | 13,197 | | | 13,641 | | | 13,533 | |
| Interest checking | | 1,150 | | | 1,201 | | | 1,128 | | | 1,384 | | | 1,288 | |
| Other client deposits | | 35,196 | | | 35,504 | | | 35,391 | | | 35,741 | | | 34,657 | |
| Client certificates of deposit | | 26,819 | | | 26,972 | | | 26,315 | | | 27,445 | | | 25,322 | |
| Total client deposits | | 76,542 | | | 76,736 | | | 76,031 | | | 78,211 | | | 74,800 | |
| Other interest-bearing deposits | | 10,939 | | | 10,030 | | | 9,154 | | | 5,868 | | | 5,039 | |
| Total deposits | | 87,481 | | | 86,766 | | | 85,185 | | | 84,079 | | | 79,839 | |
| Fed funds purchased, repos and other borrowings | | 8,610 | | | 10,634 | | | 10,618 | | | 9,410 | | | 6,770 | |
| Long-term debt | | 22,544 | | | 18,693 | | | 19,059 | | | 18,313 | | | 19,936 | |
| Total interest-bearing liabilities | | 105,258 | | | 103,034 | | | 101,665 | | | 98,161 | | | 93,012 | |
| Total shareholders' equity | | 12,842 | | | 12,632 | | | 12,402 | | | 12,125 | | | 11,650 | |
| Goodwill | | 5,226 | | | 5,194 | | | 5,132 | | | 5,114 | | | 4,860 | |
| Core deposit and other intangibles | | 474 | | | 489 | | | 491 | | | 504 | | | 479 | |
| Total intangibles | | 5,700 | | | 5,683 | | | 5,623 | | | 5,618 | | | 5,339 | |
| Mortgage servicing rights | $ | 496 | | $ | 560 | | $ | 567 | | $ | 609 | | $ | 525 | |
| Average balances | | | | | | | | | | | | | | | |
| Securities, at amortized cost | $ | 23,414 | | $ | 23,967 | | $ | 24,246 | | $ | 23,124 | | $ | 21,872 | |
| Commercial loans and leases | | 45,549 | | | 43,969 | | | 42,838 | | | 41,935 | | | 41,122 | |
| Direct retail loans | | 15,639 | | | 15,640 | | | 15,534 | | | 15,438 | | | 15,272 | |
| Sales finance loans | | 6,031 | | | 6,042 | | | 6,006 | | | 5,823 | | | 5,734 | |
| Revolving credit loans | | 1,602 | | | 1,548 | | | 1,485 | | | 1,417 | | | 1,387 | |
| Mortgage loans | | 18,574 | | | 18,297 | | | 17,922 | | | 17,231 | | | 16,481 | |
| Specialized lending | | 5,323 | | | 5,309 | | | 5,305 | | | 5,095 | | | 4,898 | |
| Total loans and leases | | 92,718 | | | 90,805 | | | 89,090 | | | 86,939 | | | 84,894 | |
| Allowance for loan and lease losses | | 1,018 | | | 945 | | | 931 | | | 916 | | | 894 | |
| Other earning assets | | 1,282 | | | 1,257 | | | 1,105 | | | 967 | | | 840 | |
| Total earning assets | | 117,414 | | | 116,029 | | | 114,441 | | | 111,030 | | | 107,606 | |
| Total assets | | 133,425 | | | 131,009 | | | 128,633 | | | 124,848 | | | 121,054 | |
| Noninterest-bearing deposits | | 12,676 | | | 13,040 | | | 13,248 | | | 13,367 | | | 12,946 | |
| Interest checking | | 2,301 | | | 2,293 | | | 2,202 | | | 2,487 | | | 2,206 | |
| Other client deposits | | 34,851 | | | 34,981 | | | 34,836 | | | 33,860 | | | 33,393 | |
| Client certificates of deposit | | 27,061 | | | 26,682 | | | 26,456 | | | 25,919 | | | 25,076 | |
| Total client deposits | | 76,889 | | | 76,996 | | | 76,742 | | | 75,633 | | | 73,621 | |
| Other interest-bearing deposits | | 9,694 | | | 8,264 | | | 7,481 | | | 6,326 | | | 8,902 | |
| Total deposits | | 86,583 | | | 85,260 | | | 84,223 | | | 81,959 | | | 82,523 | |
| Fed funds purchased, repos and other borrowings | | 10,760 | | | 10,739 | | | 9,892 | | | 9,000 | | | 7,627 | |
| Long-term debt | | 19,201 | | | 18,864 | | | 18,721 | | | 18,471 | | | 16,086 | |
| Total interest-bearing liabilities | | 103,868 | | | 101,823 | | | 99,588 | | | 96,063 | | | 93,290 | |
| Total shareholders' equity | $ | 12,929 | | $ | 12,655 | | $ | 12,359 | | $ | 12,113 | | $ | 11,522 | |
| SELECTED CAPITAL INFORMATION (1) | | | | | | | | | | | | | | | |
| Risk-based capital: | | | | | | | | | | | | | | | |
| Tier 1 | $ | 9,287 | | $ | 9,085 | | $ | 9,048 | | $ | 8,936 | | $ | 7,987 | |
| Total | | 14,644 | | | 14,233 | | | 14,081 | | | 13,968 | | | 12,791 | |
| Risk-weighted assets | | 103,571 | | | 100,278 | | | 96,926 | | | 94,732 | | | 92,192 | |
| Average quarterly tangible assets | | 127,662 | | | 125,515 | | | 123,480 | | | 119,636 | | | 116,161 | |
| Risk-based capital ratios: | | | | | | | | | | | | | | | |
| Tier 1 | | 9.0 | % | | 9.1 | % | | 9.3 | % | | 9.4 | % | | 8.7 | % |
| Total | | 14.1 | | | 14.2 | | | 14.5 | | | 14.7 | | | 13.9 | |
| Leverage capital ratio | | 7.3 | | | 7.2 | | | 7.3 | | | 7.5 | | | 6.9 | |
| Equity as a percentage of total assets | | 9.4 | | | 9.5 | | | 9.5 | | | 9.5 | | | 9.6 | |
| Tangible equity as a percentage of tangible assets (2) | | 5.6 | | | 5.6 | | | 5.5 | | | 5.5 | | | 5.5 | |
| Book value per share | $ | 23.49 | | $ | 23.14 | | $ | 22.58 | | $ | 21.97 | | $ | 21.48 | |
| Tangible book value per share (2) | | 13.30 | | | 12.98 | | | 12.60 | | | 12.05 | | | 11.89 | |
| |
| 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 10 | | Investor Relations | | FAX (336) 733-3132 | |
| | As of / For the Quarter Ended |
| (Dollars in millions) | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 |
| ASSET QUALITY ANALYSIS | | | | | | | | | | | | | | | |
| Allowance For Credit Losses | | | | | | | | | | | | | | | |
| Beginning balance | $ | 1,015 | | $ | 941 | | $ | 926 | | $ | 901 | | $ | 888 | |
| Allowance for acquired (sold) loans, net | | - | | | 1 | | | - | | | 13 | | | 3 | |
| Provision for credit losses | | 223 | | | 184 | | | 105 | | | 88 | | | 71 | |
| Charge-offs | | | | | | | | | | | | | | | |
| Commercial loans and leases | | (18 | ) | | (26 | ) | | (18 | ) | | (11 | ) | | (10 | ) |
| Direct retail loans | | (28 | ) | | (18 | ) | | (20 | ) | | (22 | ) | | (12 | ) |
| Sales finance loans | | (13 | ) | | (10 | ) | | (9 | ) | | (6 | ) | | (6 | ) |
| Revolving credit loans | | (18 | ) | | (11 | ) | | (12 | ) | | (12 | ) | | (12 | ) |
| Mortgage loans | | (5 | ) | | (6 | ) | | (1 | ) | | (2 | ) | | (1 | ) |
| Specialized lending | | (59 | ) | | (54 | ) | | (45 | ) | | (40 | ) | | (41 | ) |
| Total charge-offs | | (141 | ) | | (125 | ) | | (105 | ) | | (93 | ) | | (82 | ) |
| Recoveries | | | | | | | | | | | | | | | |
| Commercial loans and leases | | 4 | | | 2 | | | 3 | | | 4 | | | 8 | |
| Direct retail loans | | 3 | | | 3 | | | 3 | | | 3 | | | 4 | |
| Sales finance loans | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | |
| Revolving credit loans | | 3 | | | 3 | | | 3 | | | 3 | | | 3 | |
| Specialized lending | | 4 | | | 4 | | | 4 | | | 5 | | | 4 | |
| Total recoveries | | 16 | | | 14 | | | 15 | | | 17 | | | 21 | |
| Net charge-offs | | (125 | ) | | (111 | ) | | (90 | ) | | (76 | ) | | (61 | ) |
| Ending balance | $ | 1,113 | | $ | 1,015 | | $ | 941 | | $ | 926 | | $ | 901 | |
| |
| Allowance For Credit Losses | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | $ | 1,097 | | $ | 1,004 | | $ | 934 | | $ | 920 | | $ | 896 | |
| Reserve for unfunded lending commitments | | 16 | | | 11 | | | 7 | | | 6 | | | 5 | |
| Total | $ | 1,113 | | $ | 1,015 | | $ | 941 | | $ | 926 | | $ | 901 | |
| Nonperforming Assets | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases: | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | 443 | | $ | 273 | | $ | 237 | | $ | 178 | | $ | 148 | |
| Direct retail loans | | 60 | | | 43 | | | 56 | | | 43 | | | 43 | |
| Sales finance loans | | 5 | | | 5 | | | 4 | | | 4 | | | 1 | |
| Mortgage loans | | 185 | | | 119 | | | 74 | | | 63 | | | 51 | |
| Specialized lending | | 67 | | | 62 | | | 48 | | | 36 | | | 33 | |
| Total nonaccrual loans and leases | | 760 | | | 502 | | | 419 | | | 324 | | | 276 | |
| Foreclosed real estate | | 178 | | | 143 | | | 82 | | | 61 | | | 56 | |
| Other foreclosed property | | 51 | | | 51 | | | 46 | | | 38 | | | 35 | |
| Nonperforming assets | $ | 989 | | $ | 696 | | $ | 547 | | $ | 423 | | $ | 367 | |
| Loans 90 days or more past due | | | | | | | | | | | | | | | |
| and still accruing: | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | 52 | | $ | 40 | | $ | 21 | | $ | 18 | | $ | 18 | |
| Direct retail loans | | 59 | | | 58 | | | 18 | | | 17 | | | 13 | |
| Sales finance loans | | 15 | | | 17 | | | 14 | | | 12 | | | 16 | |
| Revolving credit loans | | 16 | | | 15 | | | 7 | | | 6 | | | 7 | |
| Mortgage loans | | 106 | | | 85 | | | 76 | | | 48 | | | 39 | |
| Specialized lending | | 10 | | | 8 | | | 13 | | | 7 | | | 10 | |
| Total loans 90 days or more past due | | | | | | | | | | | | | | | |
| and still accruing | | 258 | | | 223 | | | 149 | | | 108 | | | 103 | |
| Loans 90 days or more past due and still accruing | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases | | .27 | % | | .24 | % | | .17 | % | | .12 | % | | .12 | % |
| |
| Asset Quality Ratios | | | | | | | | | | | | | | | |
| Nonaccrual and restructured loans and leases | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases | | .81 | % | | .55 | % | | .47 | % | | .37 | % | | .32 | % |
| Nonperforming assets as a percentage of: | | | | | | | | | | | | | | | |
| Total assets | | .73 | | | .52 | | | .42 | | | .33 | | | .30 | |
| Loans and leases plus | | | | | | | | | | | | | | | |
| foreclosed property | | 1.05 | | | .76 | | | .61 | | | .48 | | | .43 | |
| Net charge-offs as a percentage of | | | | | | | | | | | | | | | |
| average loans and leases | | .54 | | | .48 | | | .40 | | | .35 | | | .29 | |
| Net charge-offs excluding specialized | | | | | | | | | | | | | | | |
| lending as a percentage of average | | | | | | | | | | | | | | | |
| loans and leases (1) | | .32 | | | .28 | | | .23 | | | .20 | | | .13 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | 1.17 | | | 1.10 | | | 1.04 | | | 1.04 | | | 1.05 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | | | | | | | | | | | | | | |
| held for investment | | 1.19 | | | 1.10 | | | 1.05 | | | 1.05 | | | 1.06 | |
| Ratio of allowance for loan and lease losses to: | | | | | | | | | | | | | | | |
| Net charge-offs | | 2.18 | x | | 2.29 | x | | 2.61 | x | | 3.04 | x | | 3.58 | x |
| Nonaccrual and restructured loans and leases | | 1.44 | | | 2.00 | | | 2.23 | | | 2.83 | | | 3.24 | |
| 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 11 | | Investor Relations | | FAX (336) 733-3132 | |
| | Percentage Increase (Decrease) |
| | QTD | | Annualized Link QTD |
| | 1Q08 vs. 1Q07 | | 1Q08 vs. 4Q07 |
| PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR | | | | | |
| PURCHASE ACQUISITIONS (1) | | | | | |
| Average Balances | | | | | |
| Commercial loans and leases (2) | 9.4 | % | | 15.4 | % |
| Direct retail loans | 1.8 | | | - | |
| Sales finance loans | 5.2 | | | (0.7 | ) |
| Revolving credit loans | 15.4 | | | 14.0 | |
| Mortgage loans | 10.3 | | | 6.1 | |
| Specialized lending | 7.1 | | | 0.2 | |
| Total loans and leases (2) | 7.9 | | | 8.9 | |
| |
| Noninterest-bearing deposits | (3.3 | ) | | (11.2 | ) |
| Interest checking | (0.8 | ) | | 1.4 | |
| Other client deposits | 3.4 | | | (1.5 | ) |
| Client certificates of deposit | 6.0 | | | 5.7 | |
| Total client deposits | 3.0 | | | (0.6 | ) |
| Other interest-bearing deposits | 8.9 | | | 69.6 | |
| Total deposits | 3.6 | % | | 6.2 | % |
| |
| |
| PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS | | | | | |
| BASED ON OPERATING EARNINGS ADJUSTED FOR PURCHASE ACQUISITIONS (1) | | | | | |
| Net interest income - taxable equivalent | 5.7 | % | | 10.0 | % |
| Noninterest income | | | | | |
| Insurance commissions | 4.9 | | | (19.8 | ) |
| Service charges on deposits | 9.2 | | | (29.1 | ) |
| Other nondeposit fees and commissions | 11.3 | | | (12.2 | ) |
| Investment banking and brokerage fees and commissions | 4.9 | | | 9.6 | |
| Trust revenue | - | | | (19.2 | ) |
| Mortgage banking income (3) | 38.6 | | | NM | |
| Securities gains (losses), net | NM | | | NM | |
| Other income | (76.2 | ) | | NM | |
| Total noninterest income (3) | 9.3 | | | 5.0 | |
| Noninterest expense | | | | | |
| Personnel expense | 1.5 | | | 20.9 | |
| Occupancy and equipment expense | 4.2 | | | (12.7 | ) |
| Other noninterest expense | 10.8 | | | (14.1 | ) |
| Total noninterest expense | 4.4 | % | | 5.6 | % |
| NOTES: | All items referring to loans and leases include loans held for sale and are net of unearned income. Applicable ratios are annualized. |
| | (1) Adjusted to exclude estimated growth that resulted from the timing of acquisitions during 2008 and 2007. |
| | (2) Adjusted for the sale of a leveraged lease investment in the fourth quarter of 2007. |
| | (3) 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 12 | | Investor Relations | | FAX (336) 733-3132 | |
| | As of / For the Quarter Ended |
| (Dollars in millions) | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 |
| SELECTED MORTGAGE BANKING INFORMATION | | | | | | | | | | | | | | | |
| Residential Mortgage Servicing Rights (1) | $ | 406 | | $ | 472 | | $ | 533 | | $ | 577 | | $ | 494 | |
| |
| Income Statement Impact of Mortgage Servicing | | | | | | | | | | | | | | | |
| Rights Valuation: | | | | | | | | | | | | | | | |
| MSRs fair value (decrease) increase | $ | (84 | ) | $ | (85 | ) | $ | (54 | ) | $ | 72 | | $ | 7 | |
| MSRs derivative hedge gains (losses) | | 82 | | | 80 | | | 60 | | | (73 | ) | | (3 | ) |
| Net | $ | (2 | ) | $ | (5 | ) | $ | 6 | | $ | (1 | ) | $ | 4 | |
| |
| Residential Mortgage Loan Originations | $ | 4,393 | | $ | 3,240 | | $ | 3,225 | | $ | 3,014 | | $ | 2,461 | |
| |
| Residential Mortgage Servicing Portfolio: | | | | | | | | | | | | | | | |
| Loans serviced for others | $ | 33,977 | | $ | 32,762 | | $ | 31,081 | | $ | 30,077 | | $ | 29,420 | |
| Bank owned loans serviced | | 19,155 | | | 18,191 | | | 18,059 | | | 17,611 | | | 16,571 | |
| Total servicing portfolio | | 53,132 | | | 50,953 | | | 49,140 | | | 47,688 | | | 45,991 | |
| Weighted Average Coupon Rate | | 6.00 | % | | 6.01 | % | | 5.98 | % | | 5.95 | % | | 5.93 | % |
| Weighted Average Servicing Fee | | .363 | | | .363 | | | .359 | | | .357 | | | .356 | |
| |
| | For the Quarter Ended |
| (Dollars in millions, except per share data) | 3/31/08 | 12/31/07 | 9/30/07 | 6/30/07 | 3/31/07 |
| RECONCILIATION TABLE | | | | | | | | | | | | | | | |
| Net income | $ | 428 | | $ | 411 | | $ | 444 | | $ | 458 | | $ | 421 | |
| Merger-related and restructuring items, net of tax | | 3 | | | 2 | | | 4 | | | 3 | | | 4 | |
| Other, net of tax (4) | | (30 | ) | | 2 | | | - | | | - | | | - | |
| Operating earnings | | 401 | | | 415 | | | 448 | | | 461 | | | 425 | |
| Amortization of intangibles, net of tax | | 17 | | | 16 | | | 17 | | | 16 | | | 16 | |
| Amortization of mark-to-market adjustments, net of tax | | - | | | 1 | | | 1 | | | - | | | - | |
| Cash basis operating earnings | | 418 | | | 432 | | | 466 | | | 477 | | | 441 | |
| Return on average assets | | 1.29 | % | | 1.24 | % | | 1.37 | % | | 1.47 | % | | 1.41 | % |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | .01 | | | .01 | | | .01 | | | .01 | |
| Effect of other, net of tax (4) | | (.09 | ) | | .01 | | | - | | | - | | | - | |
| Operating return on average assets | | 1.21 | | | 1.26 | | | 1.38 | | | 1.48 | | | 1.42 | |
| Effect of amortization of intangibles, net of tax (2) | | .11 | | | .11 | | | .12 | | | .13 | | | .12 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | |
| net of tax | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating return on average | | | | | | | | | | | | | | | |
| tangible assets | | 1.32 | | | 1.37 | | | 1.50 | | | 1.61 | | | 1.54 | |
| Return on average equity | | 13.30 | % | | 12.89 | % | | 14.24 | % | | 15.18 | % | | 14.81 | % |
| Effect of merger-related and restructuring items, net of tax | | .09 | | | .05 | | | .14 | | | .10 | | | .13 | |
| Effect of other, net of tax (4) | | (.92 | ) | | .06 | | | - | | | - | | | - | |
| Operating return on average equity | | 12.47 | | | 13.00 | | | 14.38 | | | 15.28 | | | 14.94 | |
| Effect of amortization of intangibles, net of tax (2) | | 10.34 | | | 10.99 | | | 12.43 | | | 13.20 | | | 13.26 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | |
| net of tax | | - | | | .04 | | | .05 | | | - | | | - | |
| Cash basis operating return on average | | | | | | | | | | | | | | | |
| tangible equity | | 22.81 | | | 24.03 | | | 26.86 | | | 28.48 | | | 28.20 | |
| Efficiency ratio (taxable equivalent) (3) | | 52.4 | % | | 53.8 | % | | 53.3 | % | | 53.5 | % | | 54.1 | % |
| Effect of merger-related and restructuring items | | (.2 | ) | | (.2 | ) | | (.4 | ) | | (.3 | ) | | (.4 | ) |
| Effect of other (4) | | 1.8 | | | (.8 | ) | | - | | | - | | | - | |
| Operating efficiency ratio (3) | | 54.0 | | | 52.8 | | | 52.9 | | | 53.2 | | | 53.7 | |
| Effect of amortization of intangibles | | (1.6 | ) | | (1.5 | ) | | (1.6 | ) | | (1.5 | ) | | (1.6 | ) |
| Effect of amortization of mark-to-market adjustments | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating efficiency ratio (3) | | 52.4 | | | 51.3 | | | 51.3 | | | 51.7 | | | 52.1 | |
| Fee income ratio (3) | | 41.4 | % | | 41.7 | % | | 40.1 | % | | 42.6 | % | | 40.6 | % |
| Effect of other (4) | | (1.2 | ) | | - | | | - | | | - | | | - | |
| Operating fee income ratio (3) | | 40.2 | | | 41.7 | | | 40.1 | | | 42.6 | | | 40.6 | |
| Basic earnings per share | $ | .78 | | $ | .75 | | $ | .81 | | $ | .84 | | $ | .78 | |
| Effect of merger-related and restructuring items, net of tax | | - | | | .01 | | | - | | | - | | | - | |
| Effect of other, net of tax (4) | | (.05 | ) | | - | | | - | | | - | | | - | |
| Operating basic earnings per share | | .73 | | | .76 | | | .81 | | | .84 | | | .78 | |
| Diluted earnings per share | $ | .78 | | $ | .75 | | $ | .80 | | $ | .83 | | $ | .77 | |
| Effect of merger-related and restructuring items, net of tax | | - | | | - | | | .01 | | | - | | | .01 | |
| Effect of other, net of tax (4) | | (.05 | ) | | - | | | - | | | - | | | - | |
| Operating diluted earnings per share | | .73 | | | .75 | | | .81 | | | .83 | | | .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 | | .76 | | | .78 | | | .84 | | | .86 | | | .81 | |
| NOTES: | Applicable ratios are annualized. |
| | (1) Balances exclude commercial mortgage servicing rights totaling $90 million, $88 million, $34 million, $32 million, and $31 million as of March 31, 2008, December 31, 2007, |
| | September 30, 2007, June 30, 2007, and March 31, 2007, 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 a gain from the IPO and the reversal of a reserve charge relating to the Visa USA, Inc settlement totaling $30 million, net of tax, in the first quarter of 2008. The fourth quarter |
| | of 2007 reflects a reserve charge relating to the Visa USA, Inc settlement totaling $9 million, net of tax, and a credit of $7 million to the provision for income taxes related to leveraged leases. |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| CREDIT SUPPLEMENT PAGE 1 | | Investor Relations | | FAX (336) 733-3132 | |
| (Dollars in millions, except average loan size) | | | | | | | | | | | |
| SUPPLEMENTAL RESIDENTIAL MORTGAGE PORTFOLIO INFORMATION | | | | | | | | | | | |
| |
| | As of / For the Period Ended March 31, 2008 |
| |
| |
| |
| | | | | | | | Construction/ | | | |
| Mortgage Loans | | Prime | | | ALT-A | | Permanent | | Subprime (1) |
| |
| Total loans outstanding | $ | 12,153 | | $ | 3,295 | $ | 1,785 | | $ | 571 | |
| |
| Average loan size (in thousands) | | 190 | | | 325 | | 313 | | | 68 | |
| Average credit score | | 717 | | | 734 | | 734 | | | 606 | |
| |
| Percentage of total loans | | 12.9 | % | | 3.5 | % | 1.9 | % | | .6 | % |
| Percentage that are first mortgages | | 99.7 | | | 99.7 | | 98.7 | | | 82.0 | |
| |
| Nonaccrual loans and leases as a percentage of category | | .74 | | | 1.25 | | 2.27 | | | 3.95 | |
| Gross charge-offs as a percentage of category | | .08 | | | .24 | | .12 | | | .93 | |
| |
| |
| | As of / For the Period Ended March 31, 2008 |
| |
| | | | | | | | | | | Gross Charge- |
| | | | | | | | Nonaccrual as a | | Offs as a |
| | | Total Mortgages | | | Percentage of | Percentage of | | Percentage of |
| Residential Mortgage Loans by State | | Outstanding (1) | | | Total | | Outstandings | | Outstandings |
| |
| North Carolina | $ | 4,387 | | | 24.7 | % | .37 | % | | .04 | % |
| Virginia | | 3,620 | | | 20.3 | | .75 | | | .14 | |
| Florida | | 2,657 | | | 14.9 | | 2.74 | | | .23 | |
| Maryland | | 1,894 | | | 10.6 | | 1.12 | | | .05 | |
| South Carolina | | 1,665 | | | 9.4 | | .46 | | | .04 | |
| Georgia | | 1,600 | | | 9.0 | | 2.25 | | | .32 | |
| West Virginia | | 395 | | | 2.2 | | .73 | | | .05 | |
| Kentucky | | 360 | | | 2.0 | | .48 | | | .15 | |
| Tennessee | | 257 | | | 1.4 | | .25 | | | - | |
| Washington, D.C. | | 191 | | | 1.1 | | .32 | | | - | |
| Other | | 778 | | | 4.4 | | .91 | | | .72 | |
| Total | $ | 17,804 | | | 100.0 | % | 1.09 | % | | .14 | % |
| |
| |
| (Dollars in millions, except average loan size) | | | | | | | | | | | |
| SUPPLEMENTAL HOME EQUITY PORTFOLIO INFORMATION (2) | | | | | | | | | | | |
| | | | | | | | As of / For the Period Ended | |
| | | | | | | | March 31, 2008 | |
| |
| |
| |
| | | | | | | Home Equity | Home Equity |
| Home Equity Loans & Lines | | | | | | Loans | Lines |
| |
| Total loans outstanding | | | | | | $ | 9,832 | | $ | 4,683 | |
| |
| Average loan size (in thousands) (3) | | | | | | | 47 | | | 33 | |
| Average credit score | | | | | | | 724 | | | 757 | |
| |
| Percentage of total loans | | | | | | | 10.5 | % | | 5.0 | % |
| Percentage that are first mortgages | | | | | | | 77.1 | | | 22.8 | |
| |
| Nonaccrual loans and leases as a percentage of category | | | | | | | .47 | | | .26 | |
| Gross charge-offs as a percentage of category | | | | | | | .40 | | | .68 | |
| |
| |
| |
| | As of / For the Period Ended March 31, 2008 |
| |
| | | Total Home | | | | | | | Gross Charge- |
| | | Equity Loans and | | | | Nonaccrual as a | | Offs as a |
| | | Lines | | Percentage of | Percentage of | | Percentage of |
| Home Equity Loans and Lines by State | | Outstanding | | Total | Outstandings | | Outstandings |
| North Carolina | $ | 5,101 | | | 35.1 | % | .39 | % | | .20 | % |
| Virginia | | 3,206 | | | 22.1 | | .19 | | | .65 | |
| South Carolina | | 1,438 | | | 9.9 | | .49 | | | .26 | |
| Georgia | | 1,142 | | | 7.9 | | .52 | | | .81 | |
| West Virginia | | 891 | | | 6.1 | | .37 | | | .27 | |
| Maryland | | 846 | | | 5.8 | | .34 | | | .22 | |
| Florida | | 720 | | | 5.0 | | .82 | | | 2.44 | |
| Kentucky | | 611 | | | 4.2 | | .49 | | | .19 | |
| Tennessee | | 451 | | | 3.1 | | .70 | | | .28 | |
| Washington, D.C. | | 87 | | | .6 | | .55 | | | 2.55 | |
| Other | | 22 | | | .2 | | .58 | | | .29 | |
| Total | $ | 14,515 | | | 100.0 | % | .40 | % | | .49 | % |
| NOTES: | (1) Includes $358 million in loans originated by Lendmark Financial Services, which are disclosed as a part of the specialized lending category. |
| | (2) Home equity portfolio is a component of direct retail loans and originated through the BB&T branching network. |
| | (3) Home equity lines without an outstanding balance are excluded from this calculation. |
| | |
| QUARTERLY PERFORMANCE SUMMARY | | Tamera L. Gjesdal | | | |
| BB&T Corporation (NYSE:BBT) | | Senior Vice President | | (336) 733-3058 | |
| CREDIT SUPPLEMENT PAGE 2 | | Investor Relations | | FAX (336) 733-3132 | |
| (Dollars in millions, except average loan and average client size) | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL COMMERCIAL REAL ESTATE LOAN PORTFOLIO INFORMATION (1) | | | | | | | | | | | | | |
| |
| | As of / For the Period Ended March 31, 2008 |
| |
| |
| |
| Residential Acquisition, Development, and Construction | | Builder / | Land / Land | Condos / | | | | Other Commercial | Total Commercial |
| Loans (ADC) | | Construction | Development | Townhomes | | Total ADC | | Real Estate (2) | Real Estate |
| |
| Total loans outstanding | $ | 3,449 | $ | 4,644 | | $ | 675 | | $ | 8,768 | | $ | 10,127 | | $ | 18,895 | |
| |
| Average loan size (in thousands) | | 290 | | 586 | | | 1,377 | | | 431 | | | 449 | | | 440 | |
| Average client size (in thousands) | | 875 | | 1,360 | | | 3,356 | | | 1,154 | | | 627 | | | 802 | |
| |
| |
| Percentage of total loans | | 3.7 | % | 4.9 | % | | .7 | % | | 9.3 | % | | 10.8 | % | | 20.1 | % |
| |
| Nonaccrual loans and leases as a percentage of category | | 3.05 | | 2.43 | | | 3.47 | | | 2.75 | | | .47 | | | 1.53 | |
| Gross charge-offs as a percentage of category | | .12 | | .43 | | | - | | | .27 | | | .02 | | | .14 | |
| |
| |
| |
| |
| | | | | As of / For the Period Ended March 31, 2008 |
| |
| | | | | | | | | | | | | | | | | Gross Charge- |
| | | | | | | | | | | | | | Nonaccrual as a | | Offs as a |
| Residential Acquisition, Development, and Construction | | | | Total | | | Percentage of | Nonaccrual Loans | | Percentage of | | Percentage of |
| Loans (ADC) by State of Origination | | | | Outstandings | | | Total | | | and Leases | | | Outstandings | | Outstandings |
| North Carolina | | | $ | 2,925 | | | 33.4 | % | $ | 19 | | | .66 | % | | .02 | % |
| Georgia | | | | 1,722 | | | 19.6 | | | 94 | | | 5.49 | | | .94 | |
| Virginia | | | | 1,422 | | | 16.2 | | | 34 | | | 2.43 | | | .24 | |
| Florida | | | | 942 | | | 10.8 | | | 46 | | | 4.87 | | | - | |
| South Carolina | | | | 684 | | | 7.8 | | | 11 | | | 1.62 | | | .01 | |
| Tennessee | | | | 282 | | | 3.2 | | | 10 | | | 3.45 | | | - | |
| Washington, D.C. | | | | 264 | | | 3.0 | | | - | | | - | | | - | |
| Kentucky | | | | 222 | | | 2.5 | | | 9 | | | 4.12 | | | .03 | |
| West Virginia | | | | 154 | | | 1.8 | | | 7 | | | 4.32 | | | 2.50 | |
| Maryland | | | | 151 | | | 1.7 | | | 11 | | | 7.14 | | | - | |
| Total | | | $ | 8,768 | | | 100.0 | % | $ | 241 | | | 2.75 | % | | .27 | % |
| NOTES: | (1) Commercial real estate loans (CRE) are defined as loans to finance non-owner occupied real property where the primary repayment source is the sale or rental/lease of the real property. |
| | Definition is based on internal classification. |
| | (2) Other CRE loans consist primarily of non-residential income producing CRE loans. C&I loans secured by real property are excluded. |
