| October 16, 2008 | | | | |
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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 net income of $358 million
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE: BBT) reported today net income for the third quarter of 2008 totaling $358 million, or $.65 per diluted share, compared with $444 million, or $.80 per diluted share, earned during the third quarter of 2007. These results reflect decreases of 19.4% and 18.8%, 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 1.04% and 10.86%, respectively, compared to prior year returns of 1.37% and 14.24%, respectively.
Operating earnings for the third quarter of 2008 totaled $355 million, or $.64 per diluted share, excluding $35 million in net after-tax securities gains, $26 million in after-tax charges for other-than-temporary impairment and $6 million in after-tax charges for nonrecurring professional fees and merger-related and restructuring charges. Operating earnings for the third quarter of 2007 totaled $448 million, or $.81 per diluted share, excluding $4 million in net after-tax merger-related and restructuring charges.
“While we are not immune to the unprecedented challenges in the financial markets, BB&T remains a strong and financially sound company,” said Chairman and Chief Executive Officer John A. Allison. “Our capital levels, debt ratings and earnings are among the best in the industry. Our pre-tax pre-provision operating earnings for the third quarter were $865 million, an increase of 12.0% compared to the same period last year, indicating that we are growing our client base and that our underlying businesses are performing well despite market and credit challenges. Our net interest margin improved for the fourth consecutive quarter and many of our fee income businesses continue to produce healthy revenue growth.
“There is tremendous turmoil in the financial services industry right now, creating a great deal of anxiety in our communities,” said Allison. “BB&T has grown and prospered in other challenging economic times and I believe we will not only navigate the current challenges but will be even more successful in the future.”
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GAAP and operating results for the third quarter of 2008 include a $364 million provision for credit losses. The provision exceeded net charge-offs by $122 million and resulted in an increase in the allowance for loan and lease losses as a percentage of loans and leases held for investment to 1.45% at Sept. 30 compared to 1.33% at June 30.
For the first nine months of 2008, BB&T’s net income was $1.21 billion compared to $1.32 billion earned in the first nine months of 2007, a decrease of 8.2% . Diluted earnings per share for the first nine months of 2008 totaled $2.20 compared to $2.40 earned during the same period in 2007. Excluding merger-related and restructuring charges or credits and nonrecurring items, operating earnings for the first nine months of 2008 totaled $1.13 billion, or $2.06 per diluted share, compared to $1.33 billion, or $2.42 per diluted share, earned during the first nine months of 2007.
Nonperforming Assets and Credit Losses Increase
BB&T’s nonperforming asset levels and credit losses increased further in the third quarter of 2008 compared to the second quarter of 2008. Nonperforming assets, as a percentage of total assets, increased to 1.20% at Sept. 30, compared to .95% at June 30. Annualized net charge-offs were 1.00% of average loans and leases for the third quarter of 2008, up from .72% in the second quarter of 2008. Excluding losses incurred by BB&T’s specialized lending subsidiaries, annualized net charge-offs for the current quarter were .82% of average loans and leases compared to .53% in the second quarter of 2008.
The provision for credit losses totaled $364 million in the third quarter of 2008, an increase of $259 million compared to the same quarter last year, and exceeded net charge-offs by $122 million in the current quarter. 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.
BB&T Capital Levels Increase
BB&T’s tangible and regulatory capital levels increased and remained very healthy at Sept. 30. BB&T’s tangible capital ratio was 5.8% at Sept. 30, up from 5.7% at June 30, and the Tier 1 leverage ratio was 7.6%, up from 7.2% last quarter. In addition, BB&T’s Tier 1 risk-based capital and total risk-based capital ratios were 9.4% and 14.4%, respectively, up from 8.9% and 14.0%, respectively, at June 30. BB&T’s risk-based capital ratios are significantly higher than an average of its peers and remain well above regulatory standards for well-capitalized banks.
During the third quarter, BB&T declared a quarterly cash dividend of $.47 per share, up 2.2% compared to the third quarter of 2007. BB&T has increased the cash dividend for 37 consecutive years and has paid a dividend every year since 1903.
Net interest margin improves to 3.66%
BB&T’s fully taxable equivalent net interest income totaled $1.1 billion for the third quarter, an increase of 11.8% compared to the same quarter of 2007. The net interest margin was 3.66% for the current quarter, up from 3.65% for the second quarter of 2008 and up from 3.45% in the third quarter last year. The increase marks the fourth consecutive quarter that BB&T’s margin has improved.
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BB&T’s Fee-Based Businesses Produce Solid Quarterly Growth Rates
On an operating basis, noninterest income increased $102 million, or 15.1%, during the third quarter of 2008 compared to 2007. These increases include higher revenues generated by BB&T’s insurance operations, service charges on deposit accounts, and other nondeposit fees and commissions, as well as a solid performance from BB&T’s mortgage banking operations.
Income from BB&T’s insurance operations increased 12.6% to $232 million in the current quarter compared with $206 million earned during the third quarter last year. 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 $176 million for the third quarter of 2008, an increase of 12.1% compared to $157 million earned in the same quarter last year. This increase was primarily attributable to growth in client relationships and revenues from overdraft items.
Other nondeposit fees and commissions totaled $137 million for the third quarter of 2008, an increase of 6.2% compared to the third quarter of 2007. This increase was generated primarily by growth in bankcard income and debit card related services.
Revenues from mortgage banking operations totaled $83 million for the third quarter of 2008, an increase of $56 million compared to the third quarter of 2007. This increase reflects the adoption of fair value accounting standards and the net change in the mortgage servicing rights valuation. Fair value accounting increased mortgage banking income by $13 million, and also resulted in an $11 million increase in personnel expense during the quarter. The net change in the valuation of mortgage servicing rights resulted in an increase of $18 million compared to the third quarter of 2007. The increase was the result of the mortgage servicing rights hedge outperforming the decline in the value of the asset. Excluding the impact of these items, mortgage banking income increased $25 million, or 119%, compared to the same period last year. The growth in mortgage banking income includes strong production revenues from both residential and commercial mortgage banking operations.
Other noninterest income totaled $30 million for the third quarter of 2008 compared to $23 million earned in the same quarter last year, an increase of 30.4% . The growth in noninterest income was generated by an increase of $16 million from trading and hedging activities due to losses incurred in the prior year’s third quarter, which were partially offset by reduced earnings of $9 million from investments in low income housing partnerships that generate tax benefits compared to the third quarter of 2007.
Balance Sheet Growth Remains Healthy
Average loans and leases totaled $95.9 billion for the third quarter of 2008, reflecting an increase of $6.9 billion, or 7.7%, compared to the third quarter of 2007. This increase was composed of growth in average commercial loans and leases, which increased $5.3 billion, or 12.4%; average mortgage loans, which increased $563 million, or 3.1%; average sales finance loans, which increased $286 million, or 4.8%; average revolving credit loans, which increased $203 million, or 13.7%; average loans originated by BB&T’s specialized lending subsidiaries, which increased $446 million, or 8.4%; and growth in average direct retail loans, which increased $61 million, or 0.4%, compared to the third quarter last year.
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Average deposits totaled $90.0 billion for the third quarter of 2008, an increase of 6.9% compared to $84.2 billion for the third quarter of 2007. The average growth rate in client deposits accelerated to 16.5%, on an annualized basis, compared to the second quarter of 2008, as BB&T is gaining many new client relationships. During the third quarter of 2008, BB&T’s banking network generated approximately 31,000 net new transaction accounts.
BB&T Continues to Expand Insurance Business
BB&T expanded its coastal South Carolina insurance operations with the acquisition of Puckett, Scheetz & Hogan of Myrtle Beach, S.C. The merger will give BB&T the largest insurance market share in greater Myrtle Beach. BB&T also acquired Sumter, S.C.-based Southern Risk Operations LLC, an insurance broker that specializes in finding coverage for a broad range of risks. Also, in early September, BB&T acquired Commercial Title Group, Inc. of Vienna, Va.
At Sept. 30, BB&T had $137.0 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. 15 was $32.16 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 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 Friday, Oct. 31 or by dialing 1-888-203-1112 plus access code 6794434 until Tuesday, Oct. 21.
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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 presentations of financial measures excluding the impact of these items provide useful supplemental information that is important for a proper understanding of the operating results of BB&T’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
This press release contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results may differ materially from current projections. Please refer to BB&T’s filings with the Securities and Exchange Commission for a summary of important factors that may affect BB&T’s forward-looking statements. BB&T undertakes no obligation to revise these statements following the date of this press release.
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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 | |
| | | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | | 9/30/08 | | 9/30/07 | | $ | | % | |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | |
| Interest income - taxable equivalent | | $ | 1,821 | $ | 2,051 | $ | (230 | ) | (11.2 | ) % |
| Interest expense | | | 712 | | 1,059 | | (347 | ) | (32.8 | ) |
| Net interest income - taxable equivalent | | | 1,109 | | 992 | | 117 | | 11.8 | |
| Less: Taxable equivalent adjustment | | | 21 | | 14 | | 7 | | 50.0 | |
| Net interest income | | | 1,088 | | 978 | | 110 | | 11.2 | |
| Provision for credit losses | | | 364 | | 105 | | 259 | | 246.7 | |
| Net interest income after provision for credit losses | | 724 | | 873 | | (149 | ) | (17.1 | ) |
| Noninterest income | | | 777 | | 675 | | 102 | | 15.1 | |
| Noninterest expense | | | 1,000 | | 881 | | 119 | | 13.5 | |
| Operating earnings before income taxes | | | 501 | | 667 | | (166 | ) | (24.9 | ) |
| Provision for income taxes | | | 146 | | 219 | | (73 | ) | (33.3 | ) |
| Operating earnings (1) | | $ | 355 | $ | 448 | $ | (93 | ) | (20.8 | ) % |
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | | | | | | | | | |
| Basic earnings | | $ | .64 | $ | .81 | $ | (.17 | ) | (21.0 | ) % |
| Diluted earnings | | | .64 | | .81 | | (.17 | ) | (21.0 | ) |
| Weighted average shares (in thousands) - | Basic | | 549,761 | | 550,603 | | | | | |
| | Diluted | | 553,544 | | 555,336 | | | | | |
| Dividends paid per share | | $ | .47 | $ | .46 | $ | .01 | | 2.2 | % |
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | | | | | | | | | |
| Return on average assets | | | 1.03 | % | 1.38 | % | | | | |
| Return on average equity | | | 10.74 | | 14.38 | | | | | |
| Net yield on earning assets (taxable equivalent) | | | 3.66 | | 3.45 | | | | | |
| Noninterest income as a percentage of | | | | | | | | | | |
| total income (taxable equivalent) (2) | | | 40.5 | | 40.1 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.3 | | 52.9 | | | | | |
| CASH BASIS PERFORMANCE | | | | | | | | | | |
| BASED ON OPERATING EARNINGS (1)(3) | | | | | | | | | | |
| Cash basis operating earnings | | $ | 371 | $ | 466 | $ | (95 | ) | (20.4 | ) % |
| Diluted earnings per share | | | .67 | | .84 | | (.17 | ) | (20.2 | ) |
| Return on average tangible assets | | | 1.12 | % | 1.50 | % | | | | |
| Return on average tangible equity | | | 19.77 | | 26.86 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 51.0 | | 51.3 | | | | | |
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| | | | For the Three Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | | 9/30/08 | | 9/30/07 | | $ | | % | |
| INCOME STATEMENTS | | | | | | | | | | |
| Interest income | | $ | 1,793 | $ | 2,030 | $ | (237 | ) | (11.7 | ) % |
| Interest expense | | | 705 | | 1,052 | | (347 | ) | (33.0 | ) |
| Net interest income | | | 1,088 | | 978 | | 110 | | 11.2 | |
| Provision for credit losses | | | 364 | | 105 | | 259 | | 246.7 | |
| Net interest income after provision for credit losses | | 724 | | 873 | | (149 | ) | (17.1 | ) |
| Noninterest income | | | 792 | | 675 | | 117 | | 17.3 | |
| Noninterest expense | | | 1,009 | | 888 | | 121 | | 13.6 | |
| Income before income taxes | | | 507 | | 660 | | (153 | ) | (23.2 | ) |
| Provision for income taxes | | | 149 | | 216 | | (67 | ) | (31.0 | ) |
| Net income | | $ | 358 | $ | 444 | $ | (86 | ) | (19.4 | ) % |
| PER SHARE DATA | | | | | | | | | | |
| Basic earnings | | $ | .65 | $ | .81 | $ | (.16 | ) | (19.8 | ) % |
| Diluted earnings | | | .65 | | .80 | | (.15 | ) | (18.8 | ) |
| Weighted average shares (in thousands) - | Basic | | 549,761 | | 550,603 | | | | | |
| | Diluted | | 553,544 | | 555,336 | | | | | |
| PERFORMANCE RATIOS BASED ON NET INCOME | | | | | | | | | | |
| Return on average assets | | | 1.04 | % | 1.37 | % | | | | |
| Return on average equity | | | 10.86 | | 14.24 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.8 | | 53.3 | | | | | |
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| 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 $(3 million) and $4 million, net of tax, in the third 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. |
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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) | | | 9/30/08 | | 9/30/07 | | $ | | % | |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | |
| Interest income - taxable equivalent | | $ | 5,556 | $ | 5,940 | $ | (384 | ) | (6.5 | ) % |
| Interest expense | | | 2,323 | | 3,000 | | (677 | ) | (22.6 | ) |
| Net interest income - taxable equivalent | | | 3,233 | | 2,940 | | 293 | | 10.0 | |
| Less: Taxable equivalent adjustment | | | 60 | | 51 | | 9 | | 17.6 | |
| Net interest income | | | 3,173 | | 2,889 | | 284 | | 9.8 | |
| Provision for credit losses | | | 917 | | 264 | | 653 | | 247.3 | |
| Net interest income after provision for credit losses | | 2,256 | | 2,625 | | (369 | ) | (14.1 | ) |
| Noninterest income | | | 2,294 | | 2,056 | | 238 | | 11.6 | |
| Noninterest expense | | | 2,942 | | 2,676 | | 266 | | 9.9 | |
| Operating earnings before income taxes | | | 1,608 | | 2,005 | | (397 | ) | (19.8 | ) |
| Provision for income taxes | | | 475 | | 671 | | (196 | ) | (29.2 | ) |
| Operating earnings (1) | | $ | 1,133 | $ | 1,334 | $ | (201 | ) | (15.1 | ) % |
| PER SHARE DATA BASED ON OPERATING EARNINGS (1) | | | | | | | | | |
| Basic earnings | | $ | 2.07 | $ | 2.44 | $ | (.37 | ) | (15.2 | ) % |
| Diluted earnings | | | 2.06 | | 2.42 | | (.36 | ) | (14.9 | ) |
| Weighted average shares (in thousands) - | Basic | | 547,543 | | 546,978 | | | | | |
| | Diluted | | 551,144 | | 552,153 | | | | | |
| Dividends paid per share | | $ | 1.39 | $ | 1.30 | $ | .09 | | 6.9 | % |
| PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) | | | | | | | | | |
| Return on average assets | | | 1.12 | % | 1.43 | % | | | | |
| Return on average equity | | | 11.63 | | 14.86 | | | | | |
| Net yield on earning assets (taxable equivalent) | | | 3.61 | | 3.54 | | | | | |
| Noninterest income as a percentage of | | | | | | | | | | |
| total income (taxable equivalent) (2) | | | 40.8 | | 41.1 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 52.9 | | 53.3 | | | | | |
| CASH BASIS PERFORMANCE | | | | | | | | | | |
| BASED ON OPERATING EARNINGS (1)(3) | | | | | | | | | | |
| Cash basis operating earnings | | $ | 1,181 | $ | 1,384 | $ | (203 | ) | (14.7 | ) % |
| Diluted earnings per share | | | 2.14 | | 2.51 | | (.37 | ) | (14.7 | ) |
| Return on average tangible assets | | | 1.22 | % | 1.55 | % | | | | |
| Return on average tangible equity | | | 21.33 | | 27.83 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 51.5 | | 51.7 | | | | | |
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| | | | For the Nine Months Ended | Increase (Decrease) |
| (Dollars in millions, except per share data) | | | 9/30/08 | | 9/30/07 | | $ | | % | |
| INCOME STATEMENTS | | | | | | | | | | |
| Interest income | | $ | 5,478 | $ | 5,882 | $ | (404 | ) | (6.9 | )% |
| Interest expense | | | 2,305 | | 2,993 | | (688 | ) | (23.0 | ) |
| Net interest income | | | 3,173 | | 2,889 | | 284 | | 9.8 | |
| Provision for credit losses | | | 917 | | 264 | | 653 | | 247.3 | |
| Net interest income after provision for credit losses | | 2,256 | | 2,625 | | (369 | ) | (14.1 | ) |
| Noninterest income | | | 2,390 | | 2,056 | | 334 | | 16.2 | |
| Noninterest expense | | | 2,907 | | 2,694 | | 213 | | 7.9 | |
| Income before income taxes | | | 1,739 | | 1,987 | | (248 | ) | (12.5 | ) |
| Provision for income taxes | | | 525 | | 664 | | (139 | ) | (20.9 | ) |
| Net income | | $ | 1,214 | $ | 1,323 | $ | (109 | ) | (8.2 | )% |
| PER SHARE DATA | | | | | | | | | | |
| Basic earnings | | $ | 2.22 | $ | 2.42 | $ | (.20 | ) | (8.3 | )% |
| Diluted earnings | | | 2.20 | | 2.40 | | (.20 | ) | (8.3 | ) |
| Weighted average shares (in thousands) - | Basic | | 547,543 | | 546,978 | | | | | |
| | Diluted | | 551,144 | | 552,153 | | | | | |
| PERFORMANCE RATIOS BASED ON NET INCOME | | | | | | | | | | |
| Return on average assets | | | 1.20 | % | 1.42 | % | | | | |
| Return on average equity | | | 12.46 | | 14.74 | | | | | |
| Efficiency ratio (taxable equivalent) (2) | | | 51.5 | | 53.6 | | | | | |
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| 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 $(81 million) and $11 million, net of tax, in 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 7 | | Investor Relations | | FAX (336) 733-3132 | |
| | | | | As of / For the Nine Months Ended | Increase (Decrease) |
| (Dollars in millions) | | | | | 9/30/08 | | | 9/30/07 | | | $ | | | % | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | $ | 1,701 | | $ | 1,613 | | $ | 88 | | | 5.5 | % |
| Interest-bearing deposits with banks | | | | | 701 | | | 604 | | | 97 | | | 16.1 | |
| Federal funds sold and other earning assets | | | | | 345 | | | 507 | | | (162 | ) | | (32.0 | ) |
| Securities available for sale | | | | | 20,534 | | | 23,061 | | | (2,527 | ) | | (11.0 | ) |
| Trading securities | | | | | 548 | | | 1,587 | | | (1,039 | ) | | (65.5 | ) |
| Total securities | | | | | 21,082 | | | 24,648 | | | (3,566 | ) | | (14.5 | ) |
| Commercial loans and leases | | | | | 48,694 | | | 43,365 | | | 5,329 | | | 12.3 | |
| Direct retail loans | | | | | 15,569 | | | 15,586 | | | (17 | ) | | (.1 | ) |
| Sales finance loans | | | | | 6,314 | | | 6,056 | | | 258 | | | 4.3 | |
| Revolving credit loans | | | | | 1,718 | | | 1,535 | | | 183 | | | 11.9 | |
| Mortgage loans | | | | | 17,259 | | | 17,051 | | | 208 | | | 1.2 | |
| Specialized lending | | | | | 5,709 | | | 5,288 | | | 421 | | | 8.0 | |
| Total loans and leases held for investment | | | | | 95,263 | | | 88,881 | | | 6,382 | | | 7.2 | |
| Loans held for sale | | | | | 1,419 | | | 1,178 | | | 241 | | | 20.5 | |
| Total loans and leases | | | | | 96,682 | | | 90,059 | | | 6,623 | | | 7.4 | |
| Allowance for loan and lease losses | | | | | 1,377 | | | 934 | | | 443 | | | 47.4 | |
| Total earning assets | | | | | 119,409 | | | 116,057 | | | 3,352 | | | 2.9 | |
| Premises and equipment, net | | | | | 1,557 | | | 1,504 | | | 53 | | | 3.5 | |
| Goodwill | | | | | 5,340 | | | 5,132 | | | 208 | | | 4.1 | |
| Core deposit and other intangibles | | | | | 507 | | | 491 | | | 16 | | | 3.3 | |
| Other assets | | | | | 10,503 | | | 7,157 | | | 3,346 | | | 46.8 | |
| Total assets | | | | | 137,041 | | | 130,781 | | | 6,260 | | | 4.8 | |
| Noninterest-bearing deposits | | | | | 13,534 | | | 13,197 | | | 337 | | | 2.6 | |
| Interest checking | | | | | 2,189 | | | 1,128 | | | 1,061 | | | 94.1 | |
| Other client deposits | | | | | 37,786 | | | 35,391 | | | 2,395 | | | 6.8 | |
| Client certificates of deposit | | | | | 26,519 | | | 26,315 | | | 204 | | | .8 | |
| Total client deposits | | | | | 80,028 | | | 76,031 | | | 3,997 | | | 5.3 | |
| Other interest-bearing deposits | | | | | 8,359 | | | 9,154 | | | (795 | ) | | (8.7 | ) |
| Total deposits | | | | | 88,387 | | | 85,185 | | | 3,202 | | | 3.8 | |
| Fed funds purchased, repos and other borrowings | | | | | 10,075 | | | 10,618 | | | (543 | ) | | (5.1 | ) |
| Long-term debt | | | | | 21,337 | | | 19,059 | | | 2,278 | | | 12.0 | |
| Total interest-bearing liabilities | | | | | 106,265 | | | 101,665 | | | 4,600 | | | 4.5 | |
| Other liabilities | | | | | 4,307 | | | 3,517 | | | 790 | | | 22.5 | |
| Total liabilities | | | | | 124,106 | | | 118,379 | | | 5,727 | | | 4.8 | |
| Total shareholders' equity | | | | $ | 12,935 | | $ | 12,402 | | $ | 533 | | | 4.3 | % |
| Average balances | | | | | | | | | | | | | | | |
| Securities, at amortized cost | | | | $ | 23,800 | | $ | 23,090 | | $ | 710 | | | 3.1 | % |
| Commercial loans and leases | | | | | 46,931 | | | 41,971 | | | 4,960 | | | 11.8 | |
| Direct retail loans | | | | | 15,606 | | | 15,415 | | | 191 | | | 1.2 | |
| Sales finance loans | | | | | 6,171 | | | 5,856 | | | 315 | | | 5.4 | |
| Revolving credit loans | | | | | 1,639 | | | 1,430 | | | 209 | | | 14.6 | |
| Mortgage loans | | | | | 18,653 | | | 17,217 | | | 1,436 | | | 8.3 | |
| Specialized lending | | | | | 5,514 | | | 5,101 | | | 413 | | | 8.1 | |
| Total loans and leases | | | | | 94,514 | | | 86,990 | | | 7,524 | | | 8.6 | |
| Allowance for loan and lease losses | | | | | 1,140 | | | 914 | | | 226 | | | 24.7 | |
| Other earning assets | | | | | 1,096 | | | 971 | | | 125 | | | 12.9 | |
| Total earning assets | | | | | 119,410 | | | 111,051 | | | 8,359 | | | 7.5 | |
| Total assets | | | | | 135,311 | | | 124,873 | | | 10,438 | | | 8.4 | |
| Noninterest-bearing deposits | | | | | 12,981 | | | 13,188 | | | (207 | ) | | (1.6 | ) |
| Interest checking | | | | | 2,412 | | | 2,299 | | | 113 | | | 4.9 | |
| Other client deposits | | | | | 35,965 | | | 34,035 | | | 1,930 | | | 5.7 | |
| Client certificates of deposit | | | | | 26,707 | | | 25,822 | | | 885 | | | 3.4 | |
| Total client deposits | | | | | 78,065 | | | 75,344 | | | 2,721 | | | 3.6 | |
| Other interest-bearing deposits | | | | | 9,707 | | | 7,564 | | | 2,143 | | | 28.3 | |
| Total deposits | | | | | 87,772 | | | 82,908 | | | 4,864 | | | 5.9 | |
| Fed funds purchased, repos and other borrowings | | | | | 10,004 | | | 8,848 | | | 1,156 | | | 13.1 | |
| Long-term debt | | | | | 20,557 | | | 17,769 | | | 2,788 | | | 15.7 | |
| Total interest-bearing liabilities | | | | | 105,352 | | | 96,337 | | | 9,015 | | | 9.4 | |
| Total shareholders' equity | | | | $ | 13,015 | | $ | 12,001 | | $ | 1,014 | | | 8.4 | % |
| |
| |
| | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/08 | | | 6/30/08 | | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | |
| MISCELLANEOUS INFORMATION | | | | | | | | | | | | | | | |
| |
| Unrealized appreciation (depreciation) on | | | | | | | | | | | | | | | |
| securities available for sale, net of tax | $ | (398 | ) | $ | (274 | ) | $ | (18 | ) | $ | (28 | ) | $ | (150 | ) |
| Derivatives (notional value) | | 67,287 | | | 59,795 | | | 57,925 | | | 47,197 | | | 43,051 | |
| Fair value of derivatives portfolio | | 219 | | | 156 | | | 380 | | | 181 | | | 34 | |
| Common stock prices: | High | 45.31 | | | 37.85 | | | 36.96 | | | 42.61 | | | 43.00 | |
| | Low | 18.71 | | | 21.40 | | | 25.92 | | | 30.36 | | | 36.95 | |
| | End of period | 37.80 | | | 22.77 | | | 32.06 | | | 30.67 | | | 40.39 | |
| Weighted average shares (in thousands) - | Basic | 549,761 | | | 546,628 | | | 546,214 | | | 547,795 | | | 550,603 | |
| | Diluted | 553,544 | | | 549,758 | | | 548,946 | | | 551,078 | | | 555,336 | |
| End of period shares outstanding (in thousands) | | 552,259 | | | 546,928 | | | 546,799 | | | 545,955 | | | 549,337 | |
| End of period banking offices | | 1,501 | | | 1,489 | | | 1,494 | | | 1,492 | | | 1,501 | |
| ATMs | | 2,178 | | | 2,173 | | | 2,165 | | | 2,158 | | | 2,166 | |
| FTEs | | 29,818 | | | 30,089 | | | 29,726 | | | 29,394 | | | 28,886 | |
| 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) | | 9/30/08 | | | 6/30/08 | | 3/31/08 | | 12/31/07 | | 9/30/07 | |
| OPERATING EARNINGS STATEMENTS (1) | | | | | | | | | | | | |
| Interest income - taxable equivalent | | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,511 | | $ | 1,512 | $ | 1,604 | $ | 1,715 | $ | 1,730 | |
| Interest and dividends on securities | | 303 | | | 299 | | 303 | | 308 | | 307 | |
| Interest on short-term investments | | 7 | | | 6 | | 11 | | 14 | | 14 | |
| Total interest income - taxable equivalent | | 1,821 | | | 1,817 | | 1,918 | | 2,037 | | 2,051 | |
| Interest expense | | | | | | | | | | | | |
| Interest on deposits | | 449 | | | 455 | | 564 | | 655 | | 679 | |
| Interest on fed funds purchased, repos and other borrowings | | 55 | | | 64 | | 94 | | 118 | | 117 | |
| Interest on long-term debt | | 208 | | | 208 | | 226 | | 256 | | 263 | |
| Total interest expense | | 712 | | | 727 | | 884 | | 1,029 | | 1,059 | |
| Net interest income - taxable equivalent | | 1,109 | | | 1,090 | | 1,034 | | 1,008 | | 992 | |
| Less: Taxable equivalent adjustment | | 21 | | | 22 | | 17 | | 17 | | 14 | |
| Net interest income | | 1,088 | | | 1,068 | | 1,017 | | 991 | | 978 | |
| Provision for credit losses | | 364 | | | 330 | | 223 | | 184 | | 105 | |
| Net interest income after provision for | | | | | | | | | | | | |
| credit losses | | 724 | | | 738 | | 794 | | 807 | | 873 | |
| Noninterest income | | | | | | | | | | | | |
| Insurance income | | 232 | | | 237 | | 212 | | 221 | | 206 | |
| Service charges on deposits | | 176 | | | 172 | | 154 | | 165 | | 157 | |
| Other nondeposit fees and commissions | | 137 | | | 139 | | 128 | | 133 | | 129 | |
| Investment banking and brokerage fees and commissions | | 84 | | | 88 | | 86 | | 85 | | 87 | |
| Trust and investment advisory revenues | | 37 | | | 38 | | 40 | | 42 | | 40 | |
| Mortgage banking income | | 83 | | | 57 | | 59 | | 27 | | 27 | |
| Securities gains (losses), net | | (2 | ) | | 10 | | 43 | | 1 | | 6 | |
| Other noninterest income | | 30 | | | 39 | | 15 | | 44 | | 23 | |
| Total noninterest income | | 777 | | | 780 | | 737 | | 718 | | 675 | |
| Noninterest expense | | | | | | | | | | | | |
| Personnel expense | | 552 | | | 565 | | 547 | | 516 | | 514 | |
| Occupancy and equipment expense | | 127 | | | 124 | | 123 | | 126 | | 118 | |
| Foreclosed property expense | | 22 | | | 17 | | 13 | | 13 | | 5 | |
| Amortization of intangibles | | 25 | | | 25 | | 27 | | 27 | | 26 | |
| Other noninterest expense | | 274 | | | 266 | | 235 | | 243 | | 218 | |
| Total noninterest expense | | 1,000 | | | 997 | | 945 | | 925 | | 881 | |
| Operating earnings before income taxes | | 501 | | | 521 | | 586 | | 600 | | 667 | |
| Provision for income taxes | | 146 | | | 144 | | 185 | | 185 | | 219 | |
| Operating earnings (1) | $ | 355 | | $ | 377 | $ | 401 | $ | 415 | $ | 448 | |
| PER SHARE DATA BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Basic earnings | $ | .64 | | $ | .69 | $ | .73 | $ | .76 | $ | .81 | |
| Diluted earnings | | .64 | | | .69 | | .73 | | .75 | | .81 | |
| Dividends paid per share | | .47 | | | .46 | | .46 | | .46 | | .46 | |
| PERFORMANCE RATIOS BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) | | | | | | | | | | | | |
| Return on average assets | | 1.03 | % | | 1.12 | % | 1.21 | % | 1.26 | % | 1.38 | % |
| Return on average equity | | 10.74 | | | 11.69 | | 12.47 | | 13.00 | | 14.38 | |
| Net yield on earning assets (taxable equivalent) | | 3.66 | | | 3.65 | | 3.54 | | 3.46 | | 3.45 | |
| Efficiency ratio (taxable equivalent) (2) | | 52.3 | | | 52.5 | | 54.0 | | 52.8 | | 52.9 | |
| Noninterest income as a percentage of | | | | | | | | | | | | |
| total income (taxable equivalent) (2) | | 40.5 | | | 41.6 | | 40.2 | | 41.7 | | 40.1 | |
| Average earning assets as a percentage of | | | | | | | | | | | | |
| average total assets | | 88.4 | | | 88.4 | | 88.0 | | 88.6 | | 89.0 | |
| Average loans and leases as a percentage of | | | | | | | | | | | | |
| average deposits | | 106.6 | | | 109.4 | | 107.1 | | 106.5 | | 105.8 | |
| CASH BASIS PERFORMANCE BASED ON | | | | | | | | | | | | |
| OPERATING EARNINGS (1) (3) | | | | | | | | | | | | |
| Cash basis operating earnings | $ | 371 | | $ | 392 | $ | 418 | $ | 432 | $ | 466 | |
| Diluted earnings per share | | .67 | | | .71 | | .76 | | .78 | | .84 | |
| Return on average tangible assets | | 1.12 | % | | 1.22 | % | 1.32 | % | 1.37 | % | 1.50 | % |
| Return on average tangible equity | | 19.77 | | | 21.44 | | 22.81 | | 24.03 | | 26.86 | |
| Efficiency ratio (taxable equivalent) (2) | | 51.0 | | | 51.2 | | 52.4 | | 51.3 | | 51.3 | |
| 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 $(3 million), $(51 million), $(27 million), $4 million and $4 million, net of tax, for the quarters ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 30, 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 9 | | Investor Relations | | FAX (336) 733-3132 | |
| | As of / For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/08 | | 6/30/08 | | 3/31/08 | | 12/31/07 | | 9/30/07 | |
| |
| INCOME STATEMENTS | | | | | | | | | | | |
| Interest income | | | | | | | | | | | |
| Interest and fees on loans and leases | $ | 1,499 | $ | 1,501 | $ | 1,595 | $ | 1,706 | $ | 1,719 | |
| Interest and dividends on securities | | 287 | | 283 | | 289 | | 292 | | 297 | |
| Interest on short-term investments | | 7 | | 6 | | 11 | | 14 | | 14 | |
| Total interest income | | 1,793 | | 1,790 | | 1,895 | | 2,012 | | 2,030 | |
| Interest expense | | | | | | | | | | | |
| Interest on deposits | | 449 | | 455 | | 564 | | 655 | | 679 | |
| Interest on fed funds purchased, repos and other borrowings | | 48 | | 59 | | 88 | | 110 | | 110 | |
| Interest on long-term debt | | 208 | | 208 | | 226 | | 256 | | 263 | |
| Total interest expense | | 705 | | 722 | | 878 | | 1,021 | | 1,052 | |
| Net interest income | | 1,088 | | 1,068 | | 1,017 | | 991 | | 978 | |
| Provision for credit losses | | 364 | | 330 | | 223 | | 184 | | 105 | |
| Net interest income after provision for | | | | | | | | | | | |
| credit losses | | 724 | | 738 | | 794 | | 807 | | 873 | |
| Noninterest income | | | | | | | | | | | |
| Insurance income | | 232 | | 237 | | 212 | | 221 | | 206 | |
| Service charges on deposits | | 176 | | 172 | | 154 | | 165 | | 157 | |
| Other nondeposit fees and commissions | | 137 | | 139 | | 128 | | 133 | | 129 | |
| Investment banking and brokerage fees and commissions | | 84 | | 88 | | 86 | | 85 | | 87 | |
| Trust and investment advisory revenues | | 37 | | 38 | | 40 | | 42 | | 40 | |
| Mortgage banking income | | 83 | | 57 | | 59 | | 27 | | 27 | |
| Securities gains (losses), net | | 13 | | 10 | | 43 | | 1 | | 6 | |
| Other noninterest income | | 30 | | 86 | | 49 | | 44 | | 23 | |
| Total noninterest income | | 792 | | 827 | | 771 | | 718 | | 675 | |
| Noninterest expense | | | | | | | | | | | |
| Personnel expense | | 552 | | 565 | | 547 | | 516 | | 514 | |
| Occupancy and equipment expense | | 127 | | 124 | | 123 | | 126 | | 118 | |
| Foreclosed property expense | | 22 | | 17 | | 13 | | 13 | | 5 | |
| Amortization of intangibles | | 25 | | 25 | | 27 | | 27 | | 26 | |
| Merger-related and restructuring charges (credits), net | | 5 | | 1 | | 5 | | 3 | | 7 | |
| Other noninterest expense | | 278 | | 230 | | 221 | | 257 | | 218 | |
| Total noninterest expense | | 1,009 | | 962 | | 936 | | 942 | | 888 | |
| Income before income taxes | | 507 | | 603 | | 629 | | 583 | | 660 | |
| Provision for income taxes | | 149 | | 175 | | 201 | | 172 | | 216 | |
| Net income | $ | 358 | $ | 428 | $ | 428 | $ | 411 | $ | 444 | |
| PER SHARE DATA | | | | | | | | | | | |
| Basic earnings | $ | .65 | $ | .78 | $ | .78 | $ | .75 | $ | .81 | |
| Diluted earnings | | .65 | | .78 | | .78 | | .75 | | .80 | |
| |
| | For the Quarter Ended |
| | | 9/30/08 | | 6/30/08 | | 3/31/08 | | 12/31/07 | | 9/30/07 | |
| ANNUALIZED INTEREST YIELDS / RATES (1) (2) | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | |
| Securities: | | | | | | | | | | | |
| U.S. government-sponsored entities (GSE) | | 5.08 | % | 5.12 | % | 4.69 | % | 4.62 | % | 4.62 | % |
| Mortgage-backed securities issued by GSE | | 4.89 | | 4.79 | | 5.14 | | 5.27 | | 5.21 | |
| States and political subdivisions | | 6.40 | | 6.07 | | 6.32 | | 6.73 | | 6.36 | |
| Non-agency mortgage-backed securities | | 5.82 | | 5.81 | | 5.81 | | 5.80 | | 5.79 | |
| Other securities | | 3.88 | | 5.44 | | 6.12 | | 7.20 | | 6.33 | |
| Trading securities | | 2.99 | | 2.81 | | 5.89 | | 4.06 | | 4.54 | |
| Total securities | | 5.03 | | 5.01 | | 5.18 | | 5.15 | | 5.05 | |
| Loans: | | | | | | | | | | | |
| Commercial loans and leases | | 5.42 | | 5.59 | | 6.47 | | 7.41 | | 7.85 | |
| Direct retail loans | | 6.35 | | 6.47 | | 6.94 | | 7.29 | | 7.40 | |
| Sales finance loans | | 6.57 | | 6.60 | | 6.72 | | 6.88 | | 6.71 | |
| Revolving credit loans | | 10.72 | | 10.86 | | 11.78 | | 12.47 | | 12.93 | |
| Mortgage loans | | 6.01 | | 5.99 | | 6.03 | | 6.07 | | 6.05 | |
| Specialized lending | | 12.49 | | 12.99 | | 13.22 | | 13.10 | | 13.02 | |
| Total loans | | 6.28 | | 6.40 | | 6.95 | | 7.50 | | 7.72 | |
| Other earning assets | | 2.61 | | 2.48 | | 3.41 | | 4.48 | | 4.96 | |
| Total earning assets | | 6.00 | | 6.09 | | 6.56 | | 6.98 | | 7.13 | |
| Interest expense: | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Interest checking | | 1.32 | | .97 | | 1.76 | | 2.22 | | 2.33 | |
| Other client deposits | | 1.62 | | 1.57 | | 2.11 | | 2.69 | | 2.94 | |
| Client certificates of deposit | | 3.33 | | 3.73 | | 4.30 | | 4.58 | | 4.64 | |
| Other interest-bearing deposits | | 2.61 | | 2.74 | | 3.38 | | 4.72 | | 5.22 | |
| Total interest-bearing deposits | | 2.32 | | 2.49 | | 3.07 | | 3.60 | | 3.80 | |
| Fed funds purchased, repos and other borrowings | | 2.44 | | 2.51 | | 3.50 | | 4.37 | | 4.71 | |
| Long-term debt | | 4.00 | | 3.83 | | 4.73 | | 5.39 | | 5.59 | |
| Total interest-bearing liabilities | | 2.66 | | 2.77 | | 3.42 | | 4.02 | | 4.23 | |
| Net yield on earning assets | | 3.66 | % | 3.65 | % | 3.54 | % | 3.46 | % | 3.45 | % |
| |
| NOTES: | (1) | Fully taxable equivalent yields. Securities yields calculated based on amortized cost. |
| | (2) | Excludes basis adjustments for fair value hedges. |
| | |
| 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) | | 9/30/08 | | | 6/30/08 | | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | |
| SELECTED BALANCE SHEET DATA | | | | | | | | | | | | | | | |
| End of period balances | | | | | | | | | | | | | | | |
| Securities available for sale | $ | 20,534 | | $ | 22,657 | $ | | 23,487 | | $ | 22,419 | | $ | 23,061 | |
| Trading securities | | 548 | | | 514 | | | 609 | | | 1,009 | | | 1,587 | |
| Total securities | | 21,082 | | | 23,171 | | | 24,096 | | | 23,428 | | | 24,648 | |
| Commercial loans and leases | | 48,694 | | | 47,790 | | | 46,277 | | | 44,870 | | | 43,365 | |
| Direct retail loans | | 15,569 | | | 15,623 | | | 15,570 | | | 15,691 | | | 15,586 | |
| Sales finance loans | | 6,314 | | | 6,266 | | | 6,052 | | | 6,021 | | | 6,056 | |
| Revolving credit loans | | 1,718 | | | 1,667 | | | 1,598 | | | 1,618 | | | 1,535 | |
| Mortgage loans | | 17,259 | | | 17,304 | | | 17,446 | | | 17,467 | | | 17,051 | |
| Specialized lending | | 5,709 | | | 5,550 | | | 5,186 | | | 5,240 | | | 5,288 | |
| Total loans and leases held for investment | | 95,263 | | | 94,200 | | | 92,129 | | | 90,907 | | | 88,881 | |
| Loans held for sale | | 1,419 | | | 1,515 | | | 1,822 | | | 779 | | | 1,178 | |
| Total loans and leases | | 96,682 | | | 95,715 | | | 93,951 | | | 91,686 | | | 90,059 | |
| Allowance for loan and lease losses | | 1,377 | | | 1,257 | | | 1,097 | | | 1,004 | | | 934 | |
| Other earning assets | | 1,046 | | | 975 | | | 1,098 | | | 1,307 | | | 1,111 | |
| Total earning assets | | 119,409 | | | 120,300 | | | 119,174 | | | 116,466 | | | 116,057 | |
| Total assets | | 137,041 | | | 136,465 | | | 136,417 | | | 132,618 | | | 130,781 | |
| Noninterest-bearing deposits | | 13,534 | | | 13,567 | | | 13,377 | | | 13,059 | | | 13,197 | |
| Interest checking | | 2,189 | | | 2,542 | | | 1,150 | | | 1,201 | | | 1,128 | |
| Other client deposits | | 37,786 | | | 36,871 | | | 35,196 | | | 35,504 | | | 35,391 | |
| Client certificates of deposit | | 26,519 | | | 26,801 | | | 26,819 | | | 26,972 | | | 26,315 | |
| Total client deposits | | 80,028 | | | 79,781 | | | 76,542 | | | 76,736 | | | 76,031 | |
| Other interest-bearing deposits | | 8,359 | | | 8,433 | | | 10,939 | | | 10,030 | | | 9,154 | |
| Total deposits | | 88,387 | | | 88,214 | | | 87,481 | | | 86,766 | | | 85,185 | - |
| Fed funds purchased, repos and other borrowings | | 10,075 | | | 10,804 | | | 9,610 | | | 10,634 | | | 10,618 | |
| Long-term debt | | 21,337 | | | 20,556 | | | 21,544 | | | 18,693 | | | 19,059 | |
| Total interest-bearing liabilities | | 106,265 | | | 106,007 | | | 105,258 | | | 103,034 | | | 101,665 | |
| Total shareholders' equity | | 12,935 | | | 12,800 | | | 12,842 | | | 12,632 | | | 12,402 | |
| Goodwill | | 5,340 | | | 5,306 | | | 5,226 | | | 5,194 | | | 5,132 | |
| Core deposit and other intangibles | | 507 | | | 505 | | | 474 | | | 489 | | | 491 | |
| Total intangibles | | 5,847 | | | 5,811 | | | 5,700 | | | 5,683 | | | 5,623 | |
| Mortgage servicing rights | $ | 696 | | $ | 702 | $ | | 496 | | $ | 560 | | $ | 567 | |
| Average balances | | | | | | | | | | | | | | | |
| Securities, at amortized cost | $ | 24,083 | | $ | 23,898 | $ | | 23,414 | | $ | 23,967 | | $ | 24,246 | |
| Commercial loans and leases | | 48,132 | | | 47,098 | | | 45,549 | | | 43,969 | | | 42,838 | |
| Direct retail loans | | 15,595 | | | 15,584 | | | 15,639 | | | 15,640 | | | 15,534 | |
| Sales finance loans | | 6,292 | | | 6,188 | | | 6,031 | | | 6,042 | | | 6,006 | |
| Revolving credit loans | | 1,688 | | | 1,628 | | | 1,602 | | | 1,548 | | | 1,485 | |
| Mortgage loans | | 18,485 | | | 18,902 | | | 18,574 | | | 18,297 | | | 17,922 | |
| Specialized lending | | 5,751 | | | 5,466 | | | 5,323 | | | 5,309 | | | 5,305 | |
| Total loans and leases | | 95,943 | | | 94,866 | | | 92,718 | | | 90,805 | | | 89,090 | |
| Allowance for loan and lease losses | | 1,281 | | | 1,118 | | | 1,018 | | | 945 | | | 931 | |
| Other earning assets | | 975 | | | 1,035 | | | 1,282 | | | 1,257 | | | 1,105 | |
| Total earning assets | | 121,001 | | | 119,799 | | | 117,414 | | | 116,029 | | | 114,441 | |
| Total assets | | 136,933 | | | 135,557 | | | 133,425 | | | 131,009 | | | 128,633 | |
| Noninterest-bearing deposits | | 13,181 | | | 13,086 | | | 12,676 | | | 13,040 | | | 13,248 | |
| Interest checking | | 2,369 | | | 2,566 | | | 2,301 | | | 2,293 | | | 2,202 | |
| Other client deposits | | 38,369 | | | 34,650 | | | 34,851 | | | 34,981 | | | 34,836 | |
| Client certificates of deposit | | 26,317 | | | 26,742 | | | 27,061 | | | 26,682 | | | 26,456 | |
| Total client deposits | | 80,236 | | | 77,044 | | | 76,889 | | | 76,996 | | | 76,742 | |
| Other interest-bearing deposits | | 9,785 | | | 9,641 | | | 9,694 | | | 8,264 | | | 7,481 | |
| Total deposits | | 90,021 | | | 86,685 | | | 86,583 | | | 85,260 | | | 84,223 | |
| Fed funds purchased, repos and other borrowings | | 8,915 | | | 10,350 | | | 10,760 | | | 10,739 | | | 9,892 | |
| Long-term debt | | 20,770 | | | 21,697 | | | 19,201 | | | 18,864 | | | 18,721 | |
| Total interest-bearing liabilities | | 106,525 | | | 105,646 | | | 103,868 | | | 101,823 | | | 99,588 | |
| Total shareholders' equity | $ | 13,133 | | $ | 12,982 | $ | | 12,929 | | $ | 12,655 | | $ | 12,359 | |
| SELECTED CAPITAL INFORMATION (1) | | | | | | | | | | | | | | | |
| Risk-based capital: | | | | | | | | | | | | | | | |
| Tier 1 | $ | 10,008 | | $ | 9,317 | $ | | 9,287 | | $ | 9,085 | | $ | 9,048 | |
| Total | | 15,318 | | | 14,673 | | | 14,644 | | | 14,233 | | | 14,081 | |
| Risk-weighted assets | | 106,103 | | | 104,455 | | | 103,546 | | | 100,053 | | | 96,926 | |
| Average quarterly tangible assets | | 131,469 | | | 129,915 | | | 127,653 | | | 125,515 | | | 123,480 | |
| Risk-based capital ratios: | | | | | | | | | | | | | | | |
| Tier 1 | | 9.4 | % | | 8.9 | % | | 9.0 | % | | 9.1 | % | | 9.3 | % |
| Total | | 14.4 | | | 14.0 | | | 14.1 | | | 14.2 | | | 14.5 | |
| Leverage capital ratio | | 7.6 | | | 7.2 | | | 7.3 | | | 7.2 | | | 7.3 | |
| Equity as a percentage of total assets | | 9.4 | | | 9.4 | | | 9.4 | | | 9.5 | | | 9.5 | |
| Tangible equity as a percentage of tangible assets (2) | | 5.8 | | | 5.7 | | | 5.6 | | | 5.7 | | | 5.7 | |
| Book value per share | $ | 23.42 | | $ | 23.40 | $ | | 23.49 | | $ | 23.14 | | $ | 22.58 | |
| Tangible book value per share (2) | | 13.91 | | | 13.60 | | | 13.47 | | | 13.18 | | | 13.09 | |
| NOTES: | All items referring to average loans and leases include loans held for sale. |
| | (1) | Current quarter risk-based capital information is preliminary. |
| | (2) | Tangible equity and assets are based on regulatory Tier 1 capital definition. |
| | |
| 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) | | 9/30/08 | | | 6/30/08 | | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | |
| ASSET QUALITY ANALYSIS | | | | | | | | | | | | | | | | |
| Allowance For Credit Losses | | | | | | | | | | | | | | | | |
| Beginning balance | $ | 1,273 | | $ | 1,113 | | $ | 1,015 | | $ | 941 | | $ | 926 | |
| Allowance for acquired (sold) loans, net | | | (2 | ) | | - | | | - | | | 1 | | | - | |
| Provision for credit losses | | | 364 | | | 330 | | | 223 | | | 184 | | | 105 | |
| Charge-offs | | | | | | | | | | | | | | | | |
| Commercial loans and leases | | | (87 | ) | | (48 | ) | | (18 | ) | | (26 | ) | | (18 | ) |
| Direct retail loans | | | (41 | ) | | (38 | ) | | (28 | ) | | (18 | ) | | (20 | ) |
| Sales finance loans | | | (15 | ) | | (13 | ) | | (13 | ) | | (10 | ) | | (9 | ) |
| Revolving credit loans | | | (20 | ) | | (18 | ) | | (18 | ) | | (11 | ) | | (12 | ) |
| Mortgage loans | | | (33 | ) | | (13 | ) | | (5 | ) | | (6 | ) | | (1 | ) |
| Specialized lending | | | (61 | ) | | (55 | ) | | (59 | ) | | (54 | ) | | (45 | ) |
| Total charge-offs | | (257 | ) | | (185 | ) | | (141 | ) | | (125 | ) | | (105 | ) |
| Recoveries | | | | | | | | | | | | | | | | |
| Commercial loans and leases | | | 3 | | | 2 | | | 4 | | | 2 | | | 3 | |
| Direct retail loans | | | 3 | | | 3 | | | 3 | | | 3 | | | 3 | |
| Sales finance loans | | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | |
| Revolving credit loans | | | 2 | | | 3 | | | 3 | | | 3 | | | 3 | |
| Specialized lending | | | 5 | | | 5 | | | 4 | | | 4 | | | 4 | |
| Total recoveries | | | 15 | | | 15 | | | 16 | | | 14 | | | 15 | |
| Net charge-offs | | (242 | ) | | (170 | ) | | (125 | ) | | (111 | ) | | (90 | ) |
| Ending balance | $ | 1,393 | | $ | 1,273 | | $ | 1,113 | | $ | 1,015 | | $ | 941 | |
| |
| Allowance For Credit Losses | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | $ | 1,377 | | $ | 1,257 | | $ | 1,097 | | $ | 1,004 | | $ | 934 | |
| Reserve for unfunded lending commitments | | | 16 | | | 16 | | | 16 | | | 11 | | | 7 | |
| Total | $ | 1,393 | | $ | 1,273 | | $ | 1,113 | | $ | 1,015 | | $ | 941 | |
| Nonperforming Assets | | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases: | | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | | 722 | | $ | 621 | | $ | 443 | | $ | 273 | | $ | 237 | |
| Direct retail loans | | | 76 | | | 65 | | | 60 | | | 43 | | | 56 | |
| Sales finance loans | | | 6 | | | 4 | | | 5 | | | 5 | | | 4 | |
| Mortgage loans | | | 298 | | | 250 | | | 185 | | | 119 | | | 74 | |
| Specialized lending | | | 94 | | | 76 | | | 67 | | | 62 | | | 48 | |
| Total nonaccrual loans and leases | | 1,196 | | | 1,016 | | | 760 | | | 502 | | | 419 | |
| Foreclosed real estate | | | 382 | | | 232 | | | 178 | | | 143 | | | 82 | |
| Other foreclosed property | | | 60 | | | 53 | | | 51 | | | 51 | | | 46 | |
| Nonperforming assets | $ | 1,638 | | $ | 1,301 | | $ | 989 | | $ | 696 | | $ | 547 | |
| Loans 90 days or more past due | | | | | | | | | | | | | | | | |
| and still accruing (1) | | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | | 39 | | $ | 42 | | $ | 52 | | $ | 40 | | $ | 21 | |
| Direct retail loans | | | 88 | | | 72 | | | 59 | | | 58 | | | 18 | |
| Sales finance loans | | | 19 | | | 17 | | | 15 | | | 17 | | | 14 | |
| Revolving credit loans | | | 17 | | | 15 | | | 16 | | | 15 | | | 7 | |
| Mortgage loans | | | 123 | | | 126 | | | 106 | | | 85 | | | 76 | |
| Specialized lending | | | 11 | | | 10 | | | 10 | | | 8 | | | 13 | |
| Total loans 90 days or more past due and still accruing | $ | | 297 | | $ | 282 | | $ | 258 | | $ | 223 | | $ | 149 | |
| Loans 30 - 89 days past due (1) | | | | | | | | | | | | | | | | |
| Commercial loans and leases | $ | | 355 | | $ | 492 | | $ | 364 | | $ | 284 | | $ | 216 | |
| Direct retail loans | | | 200 | | | 175 | | | 185 | | | 192 | | | 148 | |
| Sales finance loans | | | 119 | | | 93 | | | 86 | | | 105 | | | 89 | |
| Revolving credit loans | | | 29 | | | 25 | | | 24 | | | 24 | | | 20 | |
| Mortgage loans | | | 582 | | | 519 | | | 510 | | | 506 | | | 479 | |
| Specialized lending | | | 294 | | | 258 | | | 216 | | | 243 | | | 187 | |
| |
| Total loans 30 - 89 days past due | $ | 1,579 | | $ | 1,562 | | $ | 1,385 | | $ | 1,354 | | $ | 1,139 | |
| |
| Asset Quality Ratios | | | | | | | | | | | | | | | | |
| Loans 30-89 days past due and still accruing | | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases (1) | | 1.63 | % | | 1.63 | % | | 1.47 | % | | 1.48 | % | | 1.26 | % |
| Loans 90 days or more past due and still accruing | | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases (1) | | | .31 | | | .29 | | | .27 | | | .24 | | | .17 | |
| Nonaccrual and restructured loans and leases | | | | | | | | | | | | | | | | |
| as a percentage of total loans and leases | | 1.24 | | | 1.06 | | | .81 | | | .55 | | | .47 | |
| Nonperforming assets as a percentage of: | | | | | | | | | | | | | | | | |
| Total assets | | 1.20 | | | .95 | | | .73 | | | .52 | | | .42 | |
| Loans and leases plus | | | | | | | | | | | | | | | | |
| foreclosed property | | 1.69 | | | 1.36 | | | 1.05 | | | .76 | | | .61 | |
| Net charge-offs as a percentage of | | | | | | | | | | | | | | | | |
| average loans and leases | | 1.00 | | | .72 | | | .54 | | | .48 | | | .40 | |
| Net charge-offs excluding specialized | | | | | | | | | | | | | | | | |
| lending as a percentage of average | | | | | | | | | | | | | | | | |
| loans and leases (2) | | | .82 | | | .53 | | | .32 | | | .28 | | | .23 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | 1.42 | | | 1.31 | | | 1.17 | | | 1.10 | | | 1.04 | |
| Allowance for loan and lease losses as | | | | | | | | | | | | | | | | |
| a percentage of loans and leases | | | | | | | | | | | | | | | | |
| held for investment | | 1.45 | | | 1.33 | | | 1.19 | | | 1.10 | | | 1.05 | |
| Ratio of allowance for loan and lease losses to: | | | | | | | | | | | | | | | | |
| Net charge-offs | | 1.43 | x | | 1.84 | x | | 2.18 | x | | 2.29 | x | | 2.61 | x |
| Nonaccrual and restructured loans and leases | | 1.15 | | | 1.24 | | | 1.44 | | | 2.00 | | | 2.23 | |
| 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 mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. |
| | (2) | 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) | | 9/30/08 | | | 9/30/07 | | | $ | | | % | |
| Allowance For Credit Losses | | | | | | | | | | | | |
| Beginning balance | $ | 1,015 | | $ | 888 | | $ | 127 | | | 14.3 | % |
| Allowance for acquired (sold) loans, net | | (2 | ) | | 16 | | | (18 | ) | | NM | |
| Provision for credit losses | | 917 | | | 264 | | | 653 | | | 247.3 | |
| Charge-offs | | | | | | | | | | | | |
| Commercial loans and leases | | (153 | ) | | (39 | ) | | (114 | ) | | 292.3 | |
| Direct retail loans | | (107 | ) | | (54 | ) | | (53 | ) | | 98.1 | |
| Sales finance loans | | (41 | ) | | (21 | ) | | (20 | ) | | 95.2 | |
| Revolving credit loans | | (56 | ) | | (36 | ) | | (20 | ) | | 55.6 | |
| Mortgage loans | | (51 | ) | | (4 | ) | | (47 | ) | | 1,175.0 | |
| Specialized lending | | (175 | ) | | (126 | ) | | (49 | ) | | 38.9 | |
| Total charge-offs | | (583 | ) | | (280 | ) | | (303 | ) | | 108.2 | |
| Recoveries | | | | | | | | | | | | |
| Commercial loans and leases | | 9 | | | 15 | | | (6 | ) | | (40.0 | ) |
| Direct retail loans | | 9 | | | 10 | | | (1 | ) | | (10.0 | ) |
| Sales finance loans | | 6 | | | 6 | | | - | | | - | |
| Revolving credit loans | | 8 | | | 9 | | | (1 | ) | | (11.11 | ) |
| Specialized lending | | 14 | | | 13 | | | 1 | | | 7.69 | |
| Total recoveries | | 46 | | | 53 | | | (7 | ) | | (13.2 | ) |
| Net charge-offs | | (537 | ) | | (227 | ) | | (310 | ) | | 136.6 | |
| Ending balance | $ | 1,393 | | $ | 941 | | $ | 452 | | | 48.0 | % |
| Allowance For Credit Losses | | | | | | | | | | | | |
| Allowance for loan and lease losses | $ | 1,377 | | $ | 934 | | $ | 443 | | | 47.4 | % |
| Reserve for unfunded lending commitments | | 16 | | | 7 | | | 9 | | | 128.6 | |
| Total | $ | 1,393 | | $ | 941 | | $ | 452 | | | 48.0 | % |
| Asset Quality Ratios | | | | | | | | | | | | |
| Net charge-offs as a percentage of | | | | | | | | | | | | |
| average loans and leases | | .76 | % | | .35 | % | | | | | | |
| Net charge-offs excluding specialized | | | | | | | | | | | | |
| lending as a percentage of average | | | | | | | | | | | | |
| loans and leases (1) | | .56 | | | .19 | | | | | | | |
| Ratio of allowance for loan and lease losses to | | | | | | | | | | | | |
| net charge-offs | | 1.92 | x | | 3.07 | x | | | | | | |
| |
| |
| | | | | Percentage Increase (Decrease) |
| | | | | QTD | Annualized Link QTD | YTD |
| | | | | 3Q08 vs. 3Q07 | 3Q08 vs. 2Q08 | 2008 vs. 2007 |
| PERCENTAGE CHANGES IN SELECTED BALANCES ADJUSTED FOR | | | | | | | | | | | | |
| PURCHASE ACQUISITIONS (2) | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | |
| Commercial loans and leases (3) | | | | | 13.6 | % | | 9.2 | % | | 12.0 | % |
| Direct retail loans | | | | | 0.4 | | | 0.3 | | | 1.0 | |
| Sales finance loans | | | | | 4.8 | | | 6.7 | | | 5.4 | |
| Revolving credit loans | | | | | 13.7 | | | 14.7 | | | 14.6 | |
| Mortgage loans | | | | | 3.1 | | | (8.8 | ) | | 7.3 | |
| Specialized lending | | | | | 7.3 | | | 20.7 | | | 6.0 | |
| Total loans and leases (3) | | | | | 8.2 | | | 4.7 | | | 8.4 | |
| |
| Noninterest-bearing deposits | | | | | (0.5 | ) | | 2.9 | | | (2.1 | ) |
| Interest checking | | | | | 7.6 | | | (30.5 | ) | | 2.7 | |
| Other client deposits | | | | | 10.1 | | | 42.7 | | | 5.3 | |
| Client certificates of deposit | | | | | (0.5 | ) | | (6.3 | ) | | 2.7 | |
| Total client deposits | | | | | 4.6 | | | 16.5 | | | 3.0 | |
| Other interest-bearing deposits | | | | | 30.8 | | | 5.9 | | | 28.3 | |
| Total deposits | | | | | 6.9 | % | | 15.3 | % | | 5.3 | % |
| |
| |
| PERCENTAGE CHANGES IN SELECTED INCOME STATEMENT ITEMS BASED ON OPERATING EARNINGS |
| ADJUSTED FOR PURCHASE ACQUISITIONS AND THE IMPLEMENTATION OF FAIR VALUE ACCOUNTING (2)(5) |
| Net interest income - taxable equivalent | | | | | 11.7 | % | | 7.3 | % | | 9.1 | % |
| Noninterest income | | | | | | | | | | | | |
| Insurance income | | | | | 0.4 | | | (20.6 | ) | | (0.5 | ) |
| Service charges on deposits | | | | | 12.1 | | | 9.3 | | | 11.8 | |
| Other nondeposit fees and commissions | | | | | 6.2 | | | (5.7 | ) | | 8.6 | |
| Investment banking and brokerage fees and commissions | | | | | (4.5 | ) | | (18.1 | ) | | (0.4 | ) |
| Trust and investment advisory revenues | | | | | (7.5 | ) | | (10.5 | ) | | (4.2 | ) |
| Mortgage banking income (4) (5) | | | | | 43.8 | | | 18.1 | | | (1.6 | ) |
| Securities gains (losses), net | | | | | NM | | | NM | | | NM | |
| Other income (5) | | | | | 30.4 | | | NM | | | (36.0 | ) |
| Total noninterest income (4) (5) | | | | | 4.8 | | | (20.7 | ) | | 3.4 | |
| Noninterest expense | | | | | | | | | | | | |
| Personnel expense (5) | | | | | 0.6 | | | (10.7 | ) | | (1.1 | ) |
| Occupancy and equipment expense | | | | | 6.7 | | | 3.2 | | | 4.7 | |
| Other noninterest expense | | | | | 23.4 | | | 16.7 | | | 15.3 | |
| Total noninterest expense (5) | | | | | 7.8 | % | | (.4 | ) % | | 4.3 | % |
| 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 2008 and 2007. |
| | (3) | Adjusted for the sale of leveraged lease investments. |
| | (4) | Excludes the net impact of valuation adjustments for mortgage servicing rights and gains or losses on mortgage servicing rights-related derivatives. |
| | (5) | Adjusted for the impact of the implementation of fair value accounting standards on January 1, 2008. |
| | 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) | | 9/30/08 | | | | 6/30/08 | | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | |
| SELECTED MORTGAGE BANKING INFORMATION | | | | | | | | | | | | | | | | |
| Residential Mortgage Servicing Rights (1) | $ | 601 | | $ | 611 | | $ | 406 | | $ | 472 | | $ | 533 | |
| |
| Income Statement Impact of Mortgage Servicing | | | | | | | | | | | | | | | | |
| Rights Valuation: | | | | | | | | | | | | | | | | |
| MSRs fair value increase (decrease) | $ | | (41 | ) | $ | 152 | | $ | (84 | ) | $ | (85 | ) | $ | (54 | ) |
| MSRs derivative hedge (losses) gains | | | 65 | | | (158 | ) | | 82 | | | 80 | | | 60 | |
| Net | $ | | 24 | | $ | (6 | ) | $ | (2 | ) | $ | (5 | ) | $ | 6 | |
| |
| Residential Mortgage Loan Originations | $ | 3,743 | | $ | 4,721 | | $ | 4,393 | | $ | 3,240 | | $ | 3,225 | |
| |
| Residential Mortgage Servicing Portfolio: | | | | | | | | | | | | | | | | |
| Loans serviced for others | $ | 39,292 | | $ | 36,810 | | $ | 33,977 | | $ | 32,762 | | $ | 31,081 | |
| Bank owned loans serviced | | 18,411 | | | 18,755 | | | 19,155 | | | 18,191 | | | 18,059 | |
| Total servicing portfolio | | 57,703 | | | 55,565 | | | 53,132 | | | 50,953 | | | 49,140 | |
| Weighted Average Coupon Rate | | 6.01 | % | | 5.98 | % | | 6.00 | % | | 6.01 | % | | 5.98 | % |
| Weighted Average Servicing Fee | | .366 | | | .365 | | | .363 | | | .363 | | | .359 | |
| |
| | For the Quarter Ended |
| (Dollars in millions, except per share data) | | 9/30/08 | | | | 6/30/08 | | | 3/31/08 | | | 12/31/07 | | | 9/30/07 | |
| RECONCILIATION TABLE | | | | | | | | | | | | | | | | |
| Net income | $ | | 358 | | $ | 428 | | $ | 428 | | $ | 411 | | $ | 444 | |
| Merger-related and restructuring items, net of tax | | | 3 | | | 1 | | | 3 | | | 2 | | | 4 | |
| Other, net of tax (4) | | | (6 | ) | | (52 | ) | | (30 | ) | | 2 | | | - | |
| Operating earnings | | | 355 | | | 377 | | | 401 | | | 415 | | | 448 | |
| Amortization of intangibles, net of tax | | | 15 | | | 15 | | | 17 | | | 16 | | | 17 | |
| Amortization of mark-to-market adjustments, net of tax | | | 1 | | | - | | | - | | | 1 | | | 1 | |
| Cash basis operating earnings | | | 371 | | | 392 | | | 418 | | | 432 | | | 466 | |
| Return on average assets | | 1.04 | % | | 1.27 | % | | 1.29 | % | | 1.24 | % | | 1.37 | % |
| Effect of merger-related and restructuring items, net of tax | | | .01 | | | - | | | .01 | | | .01 | | | .01 | |
| Effect of other, net of tax (4) | | | (.02 | ) | | (.15 | ) | | (.09 | ) | | .01 | | | - | |
| Operating return on average assets | | 1.03 | | | 1.12 | | | 1.21 | | | 1.26 | | | 1.38 | |
| Effect of amortization of intangibles, net of tax (2) | | | .09 | | | .10 | | | .11 | | | .11 | | | .12 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | | |
| net of tax | | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating return on average | | | | | | | | | | | | | | | | |
| tangible assets | | 1.12 | | | 1.22 | | | 1.32 | | | 1.37 | | | 1.50 | |
| Return on average equity | | 10.86 | % | | 13.27 | % | | 13.30 | % | | 12.89 | % | | 14.24 | % |
| Effect of merger-related and restructuring items, net of tax | | | .10 | | | .02 | | | .09 | | | .05 | | | .14 | |
| Effect of other, net of tax (4) | | | (.22 | ) | | (1.60 | ) | | (.92 | ) | | .06 | | | - | |
| Operating return on average equity | | 10.74 | | | 11.69 | | | 12.47 | | | 13.00 | | | 14.38 | |
| Effect of amortization of intangibles, net of tax (2) | | 9.00 | | | 9.75 | | | 10.34 | | | 10.99 | | | 12.43 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | | |
| net of tax | | | .03 | | | - | | | - | | | .04 | | | .05 | |
| Cash basis operating return on average | | | | | | | | | | | | | | | | |
| tangible equity | | 19.77 | | | 21.44 | | | 22.81 | | | 24.03 | | | 26.86 | |
| Efficiency ratio (taxable equivalent) (3) | | 52.8 | % | | 49.4 | % | | 52.4 | % | | 53.8 | % | | 53.3 | % |
| Effect of merger-related and restructuring items | | | (.3 | ) | | (.1 | ) | | (.2 | ) | | (.2 | ) | | (.4 | ) |
| Effect of other (4) | | | (.2 | ) | | 3.2 | | | 1.8 | | | (.8 | ) | | - | |
| Operating efficiency ratio (3) | | 52.3 | | | 52.5 | | | 54.0 | | | 52.8 | | | 52.9 | |
| Effect of amortization of intangibles | | | (1.3 | ) | | (1.3 | ) | | (1.6 | ) | | (1.5 | ) | | (1.6 | ) |
| Effect of amortization of mark-to-market adjustments | | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating efficiency ratio (3) | | 51.0 | | | 51.2 | | | 52.4 | | | 51.3 | | | 51.3 | |
| Fee income ratio (3) | | 40.5 | % | | 43.0 | % | | 41.4 | % | | 41.7 | % | | 40.1 | % |
| Effect of other (4) | | | - | | | (1.4 | ) | | (1.2 | ) | | - | | | - | |
| Operating fee income ratio (3) | | 40.5 | | | 41.6 | | | 40.2 | | | 41.7 | | | 40.1 | |
| Basic earnings per share | $ | | .65 | | $ | .78 | | $ | .78 | | $ | .75 | | $ | .81 | |
| Effect of merger-related and restructuring items, net of tax | | | - | | | - | | | - | | | .01 | | | - | |
| Effect of other, net of tax (4) | | | (.01 | ) | | (.09 | ) | | (.05 | ) | | - | | | - | |
| Operating basic earnings per share | | | .64 | | | .69 | | | .73 | | | .76 | | | .81 | |
| Diluted earnings per share | $ | | .65 | | $ | .78 | | $ | .78 | | $ | .75 | | $ | .80 | |
| Effect of merger-related and restructuring items, net of tax | | | - | | | - | | | - | | | - | | | .01 | |
| Effect of other, net of tax (4) | | | (.01 | ) | | (.09 | ) | | (.05 | ) | | - | | | - | |
| Operating diluted earnings per share | | | .64 | | | .69 | | | .73 | | | .75 | | | .81 | |
| Effect of amortization of intangibles, net of tax | | | .03 | | | .02 | | | .03 | | | .03 | | | .03 | |
| Effect of amortization of mark-to-market adjustments, | | | | | | | | | | | | | | | | |
| net of tax | | | - | | | - | | | - | | | - | | | - | |
| Cash basis operating diluted earnings per share | | | .67 | | | .71 | | | .76 | | | .78 | | | .84 | |
| NOTES: | Applicable ratios are annualized. |
| | (1) | Balances exclude commercial mortgage servicing rights totaling $95 million, $91 million, $90 million, $88 million and $34 million as of September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007 and September 30, 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) | The third quarter of 2008 reflects net securities gains, other-than-temporary impairment losses and other nonrecurring professional fees collectively totaling $6 million, net of tax. The second quarter of 2008 reflects a gain from the sale of Visa, Inc. shares and a gain from the early extinguishment of certain FHLB advances collectively totaling $52 million, net of tax. The first quarter of 2008 reflects a gain from the IPO and the reversal of a reserve charge relating to the Visa, Inc settlement totaling $30 million, net of tax. The fourth quarter of 2007 reflects a reserve charge relating to the Visa, 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 | |
| Page 14 | | Investor Relations | | FAX (336) 733-3132 | |
| | For the Nine Months Ended |
| (Dollars in millions, except per share data) | | 9/30/08 | | | 9/30/07 | |
| RECONCILIATION TABLE | | | | | | |
| Net income | $ | 1,214 | | $ | 1,323 | |
| Merger-related and restructuring items, net of tax | | 7 | | | 11 | |
| Other, net of tax (3) | | (88 | ) | | - | |
| Operating earnings | | 1,133 | | | 1,334 | |
| Amortization of intangibles, net of tax | | 47 | | | 49 | |
| Amortization of mark-to-market adjustments, net of tax | | 1 | | | 1 | |
| Cash basis operating earnings | | 1,181 | | | 1,384 | |
| Return on average assets | | 1.20 | % | | 1.42 | % |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | .01 | |
| Effect of other, net of tax (3) | | (.09 | ) | | - | |
| Operating return on average assets | | 1.12 | | | 1.43 | |
| Effect of amortization of intangibles, net of tax (1) | | .10 | | | .12 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | - | | | - | |
| Cash basis operating return on average tangible assets | | 1.22 | | | 1.55 | |
| Return on average equity | | 12.46 | % | | 14.74 | % |
| Effect of merger-related and restructuring items, net of tax | | .08 | | | .12 | |
| Effect of other, net of tax (3) | | (.91 | ) | | - | |
| Operating return on average equity | | 11.63 | | | 14.86 | |
| Effect of amortization of intangibles, net of tax (1) | | 9.69 | | | 12.95 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | .01 | | | .02 | |
| Cash basis operating return on average tangible equity | | 21.33 | | | 27.83 | |
| Efficiency ratio (taxable equivalent) (2) | | 51.5 | % | | 53.6 | % |
| Effect of merger-related and restructuring items | | (.2 | ) | | (.3 | ) |
| Effect of other (3) | | 1.6 | | | - | |
| Operating efficiency ratio (2) | | 52.9 | | | 53.3 | |
| Effect of amortization of intangibles | | (1.4 | ) | | (1.6 | ) |
| Effect of amortization of mark-to-market adjustments | | - | | | - | |
| Cash basis operating efficiency ratio (2) | | 51.5 | | | 51.7 | |
| Fee income ratio (2) | | 41.6 | % | | 41.1 | % |
| Effect of other (3) | | (.8 | ) | | - | |
| Operating fee income ratio (2) | | 40.8 | | | 41.1 | |
| Basic earnings per share | $ | 2.22 | | $ | 2.42 | |
| Effect of merger-related and restructuring items, net of tax | | .01 | | | .02 | |
| Effect of other, net of tax (3) | | (.16 | ) | | - | |
| Operating basic earnings per share | | 2.07 | | | 2.44 | |
| Diluted earnings per share | $ | 2.20 | | $ | 2.40 | |
| Effect of merger-related and restructuring items, net of tax | | .02 | | | .02 | |
| Effect of other, net of tax (3) | | (.16 | ) | | - | |
| Operating diluted earnings per share | | 2.06 | | | 2.42 | |
| Effect of amortization of intangibles, net of tax | | .08 | | | .09 | |
| Effect of amortization of mark-to-market adjustments, net of tax | | - | | | - | |
| Cash basis operating diluted earnings per share | | 2.14 | | | 2.51 | |
| NOTES: | 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) | 2008 reflects net securities gains, other-than-temporary impairments, gains from the initial IPO and sale of Visa, Inc. shares, a reversal of a reserve charge relating to the Visa, Inc settlement, gains from the early extinguishment of certain FHLB advances and nonrecurring professional expenses collectively totaling $88 million, net of tax. |
| | |
| 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 and average client size) |
| SUPPLEMENTAL COMMERCIAL REAL ESTATE LOAN PORTFOLIO INFORMATION (1) |
| |
| | | | As of / For the Period Ended September 30, 2008 |
| |
| |
| |
| RESIDENTIAL ACQUISITION, DEVELOPMENT, AND | | | Builder / | | Land / Land | | Condos / | | | |
| CONSTRUCTION LOANS (ADC) | | | Construction | | Development | | Townhomes | | Total ADC |
| |
| Total loans outstanding | | $ | 3,093 | | $ | 4,581 | | $ | 654 | | $ | 8,328 | |
| |
| Average loan size (in thousands) | | | 294 | | | 600 | | | 1,438 | | | 447 | |
| Average client size (in thousands) | | | 863 | | | 1,366 | | | 3,466 | | | 1,163 | |
| |
| |
| Percentage of total loans | | | 3.2 | % | | 4.7 | % | | .7 | % | | 8.6 | % |
| |
| Nonaccrual loans and leases as a percentage of category | | | 5.33 | | | 4.70 | | | 5.79 | | | 5.02 | |
| Gross charge-offs as a percentage of category | | | 1.04 | | | 1.57 | | | 2.41 | | | 1.44 | |
| |
| |
| |
| |
| | As of / For the Period Ended September 30, 2008 |
| |
| | | | | | | | | | | | | Gross Charge- |
| | | | | | | | | | Nonaccrual as a | | Offs as a |
| RESIDENTIAL ACQUISITION, DEVELOPMENT, AND | Total | Percentage of | | Nonaccrual Loans | | Percentage of | | Percentage of |
| CONSTRUCTION LOANS (ADC) BY STATE OF ORIGINATION | Outstandings | Total | | and Leases | | Outstandings | | Outstandings |
| North Carolina | $ | 2,951 | 35.4 | % | $ | 68 | | | 2.31 | % | | .10 | % |
| Georgia | | 1,494 | 17.9 | | | 126 | | | 8.42 | | | 3.98 | |
| Virginia | | 1,311 | 15.7 | | | 68 | | | 5.17 | | | 1.48 | |
| Florida | | 872 | 10.5 | | | 109 | | | 12.48 | | | 2.24 | |
| South Carolina | | 656 | 7.9 | | | 10 | | | 1.54 | | | .28 | |
| Washington, D.C. | | 267 | 3.2 | | | 2 | | | .76 | | | 1.99 | |
| Tennessee | | 267 | 3.2 | | | 9 | | | 3.43 | | | 1.27 | |
| Kentucky | | 212 | 2.6 | | | 13 | | | 6.33 | | | .10 | |
| Maryland | | 150 | 1.8 | | | 7 | | | 4.68 | | | 3.65 | |
| West Virginia | | 148 | 1.8 | | | 6 | | | 3.87 | | | 1.28 | |
| Total | $ | 8,328 | 100.0 | % | $ | 418 | | | 5.02 | % | | 1.44 | % |
| |
| |
| | | As of / For the Period Ended September 30, 2008 |
| |
| | | | | | | | | Permanent | | Total Other |
| | | | Commercial | Commercial Land/ | Income Producing | | Commercial Real |
| OTHER COMMERCIAL REAL ESTATE LOANS (2) | | | Construction | Development | Properties | | Estate |
| |
| Total loans outstanding | | $ | 2,396 | | $ | 2,714 | | $ | 5,737 | | $ | 10,847 | |
| |
| Average loan size (in thousands) | | | 1,211 | | | 787 | | | 337 | | | 485 | |
| Average client size (in thousands) | | | 1,586 | | | 951 | | | 499 | | | 684 | |
| |
| |
| Percentage of total loans | | | 2.5 | % | | 2.8 | % | | 5.9 | % | | 11.2 | % |
| |
| Nonaccrual loans and leases as a percentage of category | | | .53 | | | 2.02 | | | .53 | | | .90 | |
| Gross charge-offs as a percentage of category | | | .09 | | | .13 | | | .11 | | | .11 | |
| |
| |
| |
| |
| | As of / For the Period Ended September 30, 2008 |
| |
| | | | | | | | | | | | | Gross Charge- |
| | | | | | | | | | Nonaccrual as a | | Offs as a |
| OTHER COMMERCIAL REAL ESTATE LOANS BY STATE OF | Total | Percentage of | Nonaccrual Loans | | Percentage of | | Percentage of |
| ORIGINATION | Outstandings | Total | and Leases | | Outstandings | | Outstandings |
| North Carolina | $ | 3,215 | 29.6 | % | $ | 11 | | | .35 | % | | .10 | % |
| Georgia | | 1,925 | 17.7 | | | 25 | | | 1.28 | | | .19 | |
| Virginia | | 1,688 | 15.6 | | | 3 | | | .20 | | | .03 | |
| South Carolina | | 878 | 8.1 | | | 5 | | | .59 | | | .15 | |
| Florida | | 821 | 7.6 | | | 39 | | | 4.69 | | | .14 | |
| Washington, D.C. | | 565 | 5.2 | | | - | | | .05 | | | .06 | |
| Maryland | | 452 | 4.2 | | | - | | | .08 | | | - | |
| Kentucky | | 437 | 4.0 | | | 5 | | | 1.04 | | | .05 | |
| West Virginia | | 437 | 4.0 | | | 2 | | | .44 | | | .02 | |
| Tennessee | | 322 | 3.0 | | | 8 | | | 2.40 | | | .51 | |
| Other | | 107 | 1.0 | | | - | | | - | | | - | |
| Total | $ | 10,847 | 100.0 | % | $ | 98 | | | .90 | % | | .11 | % |
| 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. |
| | |
| 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 size) | | | | | | | | | | |
| SUPPLEMENTAL RESIDENTIAL MORTGAGE PORTFOLIO INFORMATION | | | | | | | | | | |
| |
| | | As of / For the Period Ended September 30, 2008 | |
| |
| | | | | | | Construction/ | | | |
| MORTGAGE LOANS | | Prime | | ALT-A | | Permanent | | Subprime (1) |
| |
| Total loans outstanding | $ | 12,043 | $ | 3,255 | $ | 1,659 | | $ | 630 | |
| |
| Average loan size (in thousands) | | 193 | | 329 | | 316 | | | 69 | |
| Average credit score | | 721 | | 734 | | 735 | | | 607 | |
| |
| Percentage of total loans | | 12.5 | % | 3.4 | % | 1.7 | % | | .7 | % |
| Percentage that are first mortgages | | 99.6 | | 99.7 | | 98.9 | | | 82.2 | |
| Average loan to value | | 74.4 | | 67.3 | | 77.4 | | | 81.1 | |
| |
| Nonaccrual loans and leases as a percentage of category | | 1.36 | | 2.04 | | 3.14 | | | 4.08 | |
| Gross charge-offs as a percentage of category | | .27 | | .47 | | .88 | | | 1.80 | |
| |
| |
| | | As of / For the Period Ended September 30, 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 | $ | 4,354 | | 24.8 | % | .53 | % | | .07 | % |
| Virginia | | 3,576 | | 20.3 | | 1.22 | | | .35 | |
| Florida | | 2,611 | | 14.8 | | 5.15 | | | 1.30 | |
| Maryland | | 1,864 | | 10.6 | | 1.23 | | | .37 | |
| South Carolina | | 1,623 | | 9.2 | | 1.17 | | | .10 | |
| Georgia | | 1,620 | | 9.2 | | 2.46 | | | .60 | |
| West Virginia | | 384 | | 2.2 | | .82 | | | .15 | |
| Kentucky | | 363 | | 2.1 | | .45 | | | .28 | |
| Tennessee | | 260 | | 1.5 | | 1.05 | | | .04 | |
| Washington, D.C. | | 195 | | 1.1 | | 1.28 | | | .02 | |
| Other | | 737 | | 4.2 | | 2.06 | | | .48 | |
| Total | $ | 17,587 | | 100.0 | % | 1.75 | % | | .42 | % |
| |
| |
| (Dollars in millions, except average loan size) | | | | | | | | | | |
| SUPPLEMENTAL HOME EQUITY PORTFOLIO INFORMATION (2) | | | | | | | | | | |
| | | | | | | As of / For the Period Ended | |
| | | | | | | September 30, 2008 | |
| |
| | | | | | | Home Equity | | Home Equity |
| HOME EQUITY LOANS & LINES | | | | | | Loans | | Lines |
| |
| Total loans outstanding | | | | | $ | 9,217 | | $ | 5,254 | |
| |
| Average loan size (in thousands) (3) | | | | | | 49 | | | 35 | |
| Average credit score | | | | | | 725 | | | 759 | |
| |
| Percentage of total loans | | | | | | 9.5 | % | | 5.4 | % |
| Percentage that are first mortgages | | | | | | 77.1 | | | 23.5 | |
| Average loan to value | | | | | | 67.4 | | | 67.2 | |
| |
| Nonaccrual loans and leases as a percentage of category | | | | | | .63 | | | .28 | |
| Gross charge-offs as a percentage of category | | | | | | .54 | | | .89 | |
| |
| |
| |
| | | As of / For the Period Ended September 30, 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 | $ | 5,026 | | 34.7 | % | .47 | % | | .26 | % |
| Virginia | | 3,245 | | 22.4 | | .22 | | | .83 | |
| South Carolina | | 1,418 | | 9.8 | | .81 | | | .44 | |
| Georgia | | 1,163 | | 8.0 | | .48 | | | 1.14 | |
| West Virginia | | 880 | | 6.1 | | .40 | | | .30 | |
| Maryland | | 861 | | 6.0 | | .30 | | | .66 | |
| Florida | | 722 | | 5.0 | | 1.41 | | | 3.16 | |
| Kentucky | | 610 | | 4.2 | | .65 | | | .22 | |
| Tennessee | | 434 | | 3.0 | | .89 | | | .21 | |
| Washington, D.C. | | 91 | | .6 | | 1.21 | | | 3.43 | |
| Other | | 21 | | .2 | | .32 | | | .35 | |
| Total | $ | 14,471 | | 100.0 | % | .50 | % | | .66 | % |
| NOTES: | (1) | Includes $378 million in loans originated by Lendmark Financial Services, which are disclosed as a part of the specialized lending category, and excludes mortgage loans guaranteed by GNMA that BB&T does not have the obligation to repurchase. |
| | (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. |
