UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 10, 1997
BB&T Corporation
(Exact name of registrant as specified in its charter)
Commission file number : 1-10853
North Carolina 56-0939887
(State of incorporation) (I.R.S. Employer Identification No.)
200 West Second Street
Winston-Salem, North Carolina 27101
(Address of principal executive offices) (Zip Code)
(910) 733-2000
(Registrant's telephone number, including area code)
This Form 8-K has 11 pages.
ITEM 5. OTHER EVENTS
The purpose of this Current Report on Form 8-K is to file BB&T
Corporation's Quarterly Performance Summary for the third quarter of 1997,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued October 10, 1997
October 10, 1997
FOR IMMEDIATE RELEASE
Contacts:
ANALYSTS MEDIA
B. Gloyden Stewart, Jr. Scott E. Reed Bob Denham
Senior Vice President Senior Executive Vice President Vice President
Investor Relations Chief Financial Officer Public Relations
(919) 246-4219 (910) 733-3088 (910) 733-2202
BB&T's third quarter earnings before nonrecurring charges increase 16.9%
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBK) today reported third
quarter 1997 earnings of $103.9 million excluding charges primarily associated
with completing the acquisition of United Carolina Bancshares Corporation (UCB).
Recurring earnings for the three months ended Sept. 30, 1997, reflected a
15.3% increase over third quarter 1996 recurring earnings of $90.1 million.
Fully diluted recurring earnings per share were $.76 in the third quarter of
1997, a 16.9% increase over the $.65 per share earned in the corresponding
period of 1996. Recurring earnings for the third quarter of 1997 produced an
annualized return on average assets of 1.52% and a return on average equity of
19.58%, compared to prior year ratios of 1.44% and 18.20%, respectively.
The nonrecurring charges totaled $58.3 million before taxes, net of a gain
from the divestiture of 23 UCB and BB&T branch offices required by the Federal
Reserve Board. These charges included costs associated with the consolidation of
branch offices and bank operating functions, severance pay, early retirement
packages and other expenses necessary to accomplish the UCB merger.
For the nine months ended Sept. 30, 1997, net income exclusive of the
nonrecurring charges totaled $299.2 million, an increase of 14.2% over recurring
earnings for the nine-month period a year earlier. On a fully diluted per share
basis, earnings were $2.15 for the first three quarters of 1997, compared to
$1.88 in the prior year, an increase of 14.4%.
MORE
Including the nonrecurring charges, BB&T's net income for the third quarter
of 1997 totaled $61.3 million, or $.45 per fully diluted share, compared to
$68.3 million, or $.49 per share in 1996. For the first nine months of 1997, net
income was $256.5 million, or $1.84 on a fully diluted per share basis, compared
to $240.2 million, or $1.72 per share last year.
"We are very pleased with our third quarter core earnings performance and
our successful completion of the UCB merger," said Chairman and Chief Executive
Officer John A. Allison. "This merger provides BB&T with significant
opportunities to further improve our efficiency and to enhance our revenues
through the cross-sell of BB&T's array of products and services to former UCB
clients. While we absorbed substantial one-time costs in connection with
completing the merger during the third quarter, these expenses were in line with
our expectations. We anticipate future cost savings to be realized as a result
of this merger to add approximately $70 million to annual pretax earnings."
On May 6, BB&T announced plans to purchase Virginia First Financial
Corporation of Petersburg, Va. Virginia First operates 24 banking offices and 12
mortgage loan production centers in Virginia and Maryland. The acquisition,
which is expected to be completed during the fourth quarter of 1997, will
increase the total assets of BB&T's Virginia bank to approximately $2 billion.
On Aug. 7, BB&T announced the consummation of its acquisition of Refloat Inc. of
Mount Airy, N.C. and its principal subsidiary, Sheffield Financial Corp., a
finance company that specializes in loans to small commercial lawn care
businesses across the country. The transaction will provide BB&T with access to
the national credit market and an opportunity to significantly expand the
business and explore similar opportunities.
On Oct. 1, BB&T completed its acquisition of Craigie Incorporated of Richmond,
Va. Craigie specializes in securities origination, trading and distribution in
both public and private markets. "This acquisition allows BB&T to diversify into
the investment banking business," said Mr. Allison. "With Craigie's record of
superior underwriting and advisory services, as well as overall sales, trading
and operations, we can expand the high-quality services we offer to corporate
and municipal clients."
BB&T had $27.2 billion in assets and 486 banking offices in the Carolinas
and Virginia as of Sept. 30, 1997. All amounts included in this report reflect
the July 1, 1997, merger of UCB into BB&T Corporation in a transaction accounted
for as a pooling of interests.
BB&T's common stock is traded on the New York Stock Exchange under the
trading symbol BBK. The closing price of BB&T's common stock on Oct. 9 was
$56.75 per share. For additional information about BB&T's financial performance,
products and services, please visit our website at www.BBandT.com.
BB&T's news releases are available at no charge through PR Newswire's
Company News On-Call facsimile service. For a menu of BB&T's news releases or to
retrieve a specific release call 800-758-5804, extension 809325.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 3 Investor Relations FAX (919) 246-4871
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/97 9/30/96 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 554,134 $ 497,823 $ 56,311 11.3 %
Interest expense 262,842 235,704 27,138 11.5
Net interest income - taxable equivalent 291,292 262,119 29,173 11.1
Less: Taxable equivalent adjustment 14,169 8,831 5,338 60.4
Net interest income 277,123 253,288 23,835 9.4
Provision for loan & lease losses 21,901 15,400 6,501 42.2
Net interest income after provision for
loan and lease losses 255,222 237,888 17,334 7.3
Noninterest income 155,068 89,222 65,846 73.8
Noninterest expense 312,673 226,770 85,903 37.9
Income before income taxes 97,617 100,340 (2,723) (2.7)
Provision for income taxes 36,353 31,999 4,354 13.6
Net income $ 61,264 $ 68,341 (7,077) (10.4) %
PER SHARE DATA
Primary earnings $ .45 $ .49 $ (.04) (8.2) %
Fully diluted earnings .45 .49 (.04) (8.2)
Weighted average shares - Primary 137,518,215 138,526,858
Fully diluted 137,612,268 138,705,063
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
PERFORMANCE RATIOS
Return on average assets .89 % 1.09 %
Return on average equity 11.54 13.80
Net yield on earning assets
(taxable equivalent) 4.55 4.44
Efficiency (taxable equivalent)* 51.7 54.9
For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/97 9/30/96 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 1,611,539 $ 1,462,797 $ 148,742 10.2 %
Interest expense 753,388 689,743 63,645 9.2
Net interest income - taxable equivalent 858,151 773,054 85,097 11.0
Less: Taxable equivalent adjustment 37,635 26,391 11,244 42.6
Net interest income 820,516 746,663 73,853 9.9
Provision for loan & lease losses 67,851 44,161 23,690 53.6
Net interest income after provision
for loan & lease losses 752,665 702,502 50,163 7.1
Noninterest income 356,435 258,410 98,025 37.9
Noninterest expense 715,590 602,322 113,268 18.8
Income before income taxes 393,510 358,590 34,920 9.7
Provision for income taxes 136,964 118,399 18,565 15.7
Net income $ 256,546 $ 240,191 $ 16,355 6.8 %
PER SHARE DATA
Primary earnings $ 1.85 $ 1.74 $ .11 6.3 %
Fully diluted earnings 1.84 1.72 .12 7.0
Weighted average shares - Primary 138,614,126 137,715,880
Fully diluted 139,070,796 139,379,877
Dividends paid on common shares $ .85 $ .73 $ .12 16.4 %
PERFORMANCE RATIOS
Return on average assets 1.29 % 1.31 %
Return on average common equity 16.23 16.47
Return on average total equity 16.23 16.34
Net yield on earning assets (taxable equivalent) 4.58 4.46
Efficiency (taxable equivalent) * 52.1 55.0
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 4 Investor Relations FAX (919) 246-4871
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/97 9/30/96 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 554,134 $ 497,823 $ 56,311 11.3 %
Interest expense 262,842 235,704 27,138 11.5
Net interest income - taxable equivalent 291,292 262,119 29,173 11.1
Less: Taxable equivalent adjustment 14,169 8,831 5,338 60.4
Net interest income 277,123 253,288 23,835 9.4
Provision for loan & lease losses 21,901 15,400 6,501 42.2
Net interest income after provision
for loan & lease losses 255,222 237,888 17,334 7.3
Noninterest income 107,285 89,222 18,063 20.2
Noninterest expense 206,568 192,931 13,637 7.1
Income before income taxes 155,939 134,179 21,760 16.2
Provision for income taxes 51,997 44,066 7,931 18.0
Net income excluding nonrecurring items 103,942 90,113 13,829 15.3
Nonrecurring items, net of tax 42,678 21,772 20,906 96.0
Net income $ 61,264 $ 68,341 $ (7,077) (10.4) %
PER SHARE DATA
Primary earnings $ .76 $ .65 $ .11 16.9 %
Fully diluted earnings .76 .65 .11 16.9
Weighted average shares - Primary 137,518,215 138,526,858
Fully diluted 137,612,268 138,705,063
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
PERFORMANCE RATIOS
Return on average assets 1.52 % 1.44 %
Return on average equity 19.58 18.20
Net yield on earning assets
(taxable equivalent) 4.55 4.44
Efficiency (taxable equivalent) * 51.7 54.9
For the Nine Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 9/30/97 9/30/96 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 1,611,539 $ 1,462,797 $ 148,742 10.2 %
Interest expense 753,388 689,743 63,645 9.2
Net interest income - taxable equivalent 858,151 773,054 85,097 11.0
Less: Taxable equivalent adjustment 37,635 26,391 11,244 42.6
Net interest income 820,516 746,663 73,853 9.9
Provision for loan & lease losses 67,851 44,161 23,690 53.6
Net interest income after provision
for loan & lease losses 752,665 702,502 50,163 7.1
Noninterest income 308,652 258,410 50,242 19.4
Noninterest expense 609,485 568,482 41,003 7.2
Income before income taxes 451,832 392,430 59,402 15.1
Provision for income taxes 152,608 130,467 22,141 17.0
Net income excluding nonrecurring items 299,224 261,963 37,261 14.2
Nonrecurring items, net of tax 42,678 21,772 20,906 96.0
Net income $ 256,546 $ 240,191 $ 16,355 6.8 %
PER SHARE DATA
Primary earnings $ 2.16 $ 1.90 $ .26 13.7 %
Fully diluted earnings 2.15 1.88 .27 14.4
Weighted average shares - Primary 138,614,126 137,715,880
Fully diluted 139,070,796 139,379,877
Dividends paid on common shares $ .85 $ .73 $ .12 16.4 %
PERFORMANCE RATIOS
Return on average assets 1.50 % 1.43 %
Return on average common equity 18.93 17.96
Return on average total equity 18.93 17.82
Net yield on earning assets (taxable equivalent) 4.58 4.46
Efficiency (taxable equivalent) * 52.1 55.0
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 5 Investor Relations FAX (919) 246-4871
As of / For the Nine Months Ended Increase (Decrease)
(Dollars in thousands) 9/30/97 9/30/96 $ %
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $ 6,390,900 $ 6,505,233 $ (114,333) (1.8) %
Loans & leases 19,198,963 17,191,331 2,007,632 11.7
Allowance for loan & lease losses 257,439 230,040 27,399 11.9
Other earning assets 31,038 83,784 (52,746) (63.0)
Total earning assets 25,555,595 23,802,611 1,752,984 7.4
Total assets 27,212,111 25,435,894 1,776,217 7.0
Noninterest-bearing deposits 2,665,266 2,655,557 9,709 .4
Interest-bearing deposits 16,670,008 16,298,505 371,503 2.3
Total deposits 19,335,274 18,954,062 381,212 2.0
Short-term borrowed funds 2,391,141 2,109,719 281,422 13.3
Long-term debt 2,999,743 2,053,026 946,717 46.1
Total interest-bearing liabilities 22,060,892 20,461,250 1,599,642 7.8
Total shareholders' equity $ 2,084,226 $ 1,989,722 $ 94,504 4.7 %
Average balances
Securities, at amortized cost* $ 6,309,628 $ 5,960,146 $ 349,482 5.9 %
Loans & leases* 18,674,109 17,097,346 1,576,763 9.2
Other earning assets 48,921 65,324 (16,403) (25.1)
Total earning assets 25,032,658 23,122,816 1,909,842 8.3
Total assets 26,602,730 24,540,879 2,061,851 8.4
Noninterest-bearing deposits 2,512,550 2,398,394 114,156 4.8
Interest-bearing deposits 16,792,099 16,023,879 768,220 4.8
Total deposits 19,304,649 18,422,273 882,376 4.8
Short-term borrowed funds 2,407,330 2,076,650 330,680 15.9
Long-term debt 2,460,637 1,759,768 700,869 39.8
Total interest-bearing liabilities 21,660,066 19,860,297 1,799,769 9.1
Common equity 2,113,253 1,943,272 169,981 8.7
Preferred equity -- 20,248 (20,248) (100.0)
Total shareholders' equity $ 2,113,253 $ 1,963,520 $ 149,733 7.6 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
*Balances reflect the securitization of $1.2 billion of loans during 1995 & 1996. The increase in average
loans, excluding the impact of the securitizations, was 12.1%.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 6 Investor Relations FAX (919) 246-4871
As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
INCOME STATEMENT
Interest income - taxable equivalent
Interest & fees on loans & leases $ 443,012 $ 436,209 $ 408,416 $ 398,833 $ 393,067
Interest & dividends on securities 110,735 108,631 102,578 107,192 104,317
Interest on short-term investments 387 877 694 1,894 439
Total interest income - taxable equivalent 554,134 545,717 511,688 507,919 497,823
Interest expense
Interest on deposits 185,499 186,643 179,326 181,933 181,774
Interest on short-term borrowed funds 35,741 32,532 27,005 24,397 25,046
Interest on long-term debt 41,602 34,912 30,128 30,797 28,884
Total interest expense 262,842 254,087 236,459 237,127 235,704
Net interest income - taxable equivalent 291,292 291,630 275,229 270,792 262,119
Less: Taxable equivalent adjustment 14,169 13,039 10,427 9,755 8,831
Net interest income 277,123 278,591 264,802 261,037 253,288
Provision for loan & lease losses 21,901 25,100 20,850 18,350 15,400
Net interest income after provision for
loan & lease losses 255,222 253,491 243,952 242,687 237,888
Noninterest income
Service charges on deposits 36,518 37,803 36,456 34,177 33,427
Mortgage banking activities 13,742 10,919 11,752 10,910 8,352
Trust revenue 8,498 8,504 6,858 7,652 7,366
Agency insurance commissions 9,670 9,205 11,296 7,300 6,727
Other insurance commissions 2,696 3,347 3,557 3,534 3,412
Other nondeposit fees & commissions 27,924 25,326 22,636 21,788 21,372
Securities gains (losses), net 731 (933) 814 2,681 705
Other income 55,289 7,084 6,743 7,016 7,861
Total noninterest income 155,068 101,255 100,112 95,058 89,222
Noninterest expense
Personnel expense 121,706 101,054 102,088 97,804 96,132
Occupancy & equipment expense 54,013 33,164 31,284 31,568 31,334
Federal deposit insurance expense 1,232 1,298 1,237 55 37,255
Foreclosed property expense 684 677 771 902 489
Amortization of intangibles & servicing rights 6,441 5,536 4,353 4,659 2,933
Other noninterest expense 128,597 63,597 57,858 71,240 58,627
Total noninterest expense 312,673 205,326 197,591 206,228 226,770
Income before income taxes 97,617 149,420 146,473 131,517 100,340
Provision for income taxes 36,353 50,760 49,851 41,533 31,999
Net income $ 61,264 $ 98,660 $ 96,622 $ 89,984 $ 68,341
PER SHARE DATA
Primary earnings $ .45 $ .71 $ .69 $ .65 $ .49
Fully diluted earnings .45 .71 .69 .65 .49
Dividends paid on common shares .31 .27 .27 .27 .27
Book value per common share $ 15.52 $ 15.64 $ 15.38 $ 15.13 $ 14.56
NOTE: Fully diluted earnings per share, excluding nonrecurring items, were $.76 in the third quarter of 1997 and $.65 in the
third quarter of 1996.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 7 Investor Relations FAX (919) 246-4871
As of / For the Quarter Ended
(Dollars in thousands) 9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $ 6,390,900 $ 6,532,307 $ 6,258,799 $ 6,185,029 $ 6,505,233
Loans & leases 19,198,963 19,131,992 18,570,916 17,746,557 17,191,331
Allowance for loan & lease losses 257,439 251,222 242,253 230,070 230,040
Other earning assets 31,038 32,667 96,981 86,950 83,784
Total earning assets 25,555,595 25,665,360 24,935,549 23,998,316 23,802,611
Total assets 27,212,111 27,472,081 26,513,412 25,707,646 25,435,894
Noninterest-bearing deposits 2,665,266 2,761,412 2,619,058 2,623,429 2,655,557
Interest-bearing deposits 16,670,008 17,289,318 16,975,651 16,379,911 16,298,505
Total deposits 19,335,274 20,050,730 19,594,709 19,003,340 18,954,062
Short-term borrowed funds 2,391,141 2,324,930 2,197,953 2,280,824 2,109,719
Long-term debt 2,999,743 2,643,534 2,275,539 2,054,040 2,053,026
Total interest-bearing liabilities 22,060,892 22,257,782 21,449,143 20,714,775 20,461,250
Total shareholders' equity 2,084,226 2,117,747 2,104,488 2,071,567 1,989,722
Goodwill 106,149 104,593 95,899 58,760 43,106
Core deposit & other intangibles 7,213 7,622 8,014 9,259 7,592
Total intangibles 113,362 112,215 103,913 68,019 50,698
Mortgage servicing rights 64,911 61,566 55,771 41,891 40,170
Negative goodwill 34,494 36,054 37,613 39,172 40,732
Average balances
Securities, at amortized cost $ 6,432,481 $ 6,399,463 $ 6,093,212 $ 6,306,888 $ 6,263,001
Loans & leases 19,076,615 18,833,469 18,101,528 17,450,217 17,185,125
Other earning assets 36,136 57,275 53,543 140,281 31,830
Total earning assets 25,545,232 25,290,207 24,248,283 23,897,386 23,479,956
Total assets 27,168,511 26,859,692 25,764,559 25,452,779 24,926,111
Noninterest-bearing deposits 2,570,993 2,543,576 2,421,438 2,536,556 2,435,544
Interest-bearing deposits 16,738,498 17,024,558 16,611,849 16,502,726 16,368,025
Total deposits 19,309,491 19,568,134 19,033,287 19,039,282 18,803,569
Short-term borrowed funds 2,637,455 2,436,444 2,142,654 1,888,252 1,857,538
Long-term debt 2,806,159 2,406,161 2,162,518 2,164,007 1,979,930
Total interest-bearing liabilities 22,182,112 21,867,163 20,917,021 20,554,985 20,205,493
Total shareholders' equity $ 2,105,646 $ 2,128,949 $ 2,105,159 $ 2,048,895 $ 1,969,944
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,924,842 $ 1,975,365 $ 1,994,710 $ 1,997,194 $ 1,945,688
Total 2,660,003 2,703,760 2,474,122 2,461,822 2,409,878
Risk-based capital ratios:
Tier 1 10.0 % 10.6 % 10.8 % 11.5 % 11.3 %
Total 13.9 14.5 13.4 14.2 13.9
Leverage capital ratio 7.1 7.4 7.8 7.9 7.8
PERFORMANCE RATIOS
Return on average assets .89 % 1.47 % 1.52 % 1.41 % 1.09 %
Return on average equity 11.54 18.59 18.61 17.47 13.80
Net yield on earning assets (taxable equivalent) 4.55 4.62 4.57 4.51 4.44
Efficiency (taxable equivalent) * 51.7 52.0 52.6 56.5 54.9
Noninterest income as a percentage of total
income (taxable equivalent) * 26.8 25.9 26.5 25.4 25.2
Equity as a percentage of total assets
end of period 7.7 7.7 7.9 8.1 7.8
Average earning assets as a percentage
of average total assets 94.0 94.2 94.1 93.9 94.2
Average loans & leases as a percentage
of average deposits 98.8 96.2 95.1 91.7 91.4
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 8 Investor Relations FAX (919) 246-4871
As of / For the Quarter Ended
(Dollars in thousands, except per share data) 9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance $ 251,222 $ 242,253 $ 230,070 $ 230,040 $ 226,481
Allowance for acquired loans 1,690 -- 3,811 -- --
Provision for loan & lease losses 21,901 25,100 20,850 18,350 15,400
Charge-offs (21,880) (20,491) (17,330) (22,419) (17,134)
Recoveries 4,506 4,360 4,852 4,099 5,293
Ending balance $ 257,439 $ 251,222 $ 242,253 $ 230,070 $ 230,040
Nonperforming Assets
Nonaccrual loans & leases $ 71,023 $ 61,326 $ 60,111 $ 62,190 $ 61,007
Foreclosed real estate 15,305 14,702 15,460 14,655 13,756
Other foreclosed property 13,617 13,056 15,900 13,290 10,801
Nonperforming assets $ 99,945 $ 89,084 $ 91,471 $ 90,135 $ 85,564
Loans 90 days or more past due
& still accruing $ 39,958 $ 37,361 $ 40,021 $ 41,742 $ 34,610
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & leases .37 % .32 % .32 % .35 % .35 %
Nonperforming assets as a percentage of:
Total assets .37 .32 .34 .35 .34
Loans & leases plus
foreclosed property .52 .46 .49 .51 .50
Net charge-offs as a percentage of
average loans & leases .36 .34 .28 .42 .27
Allowance for loan & lease losses as
a percentage of loans & leases 1.34 1.31 1.30 1.30 1.34
Ratio of allowance for loan & lease losses to:
Net charge-offs 3.73 x 3.88 x 4.79 x 3.16 x 4.88 x
Nonaccrual loans & leases 3.62 4.10 4.03 3.70 3.77
MEMO ITEMS
Unrealized appreciation (depreciation) on
securities available for sale, net of tax $ 39,531 $ 18,925 $ (6,011) $ 11,739 (14,259)
Common stock prices (daily close): High 55.13 47.13 40.75 36.75 33.88
Low 45.31 35.75 35.25 33.38 28.63
End of period 53.44 45.00 37.25 36.25 33.25
Weighted average shares - Primary 137,518,215 138,810,123 139,338,821 139,050,881 138,526,858
Fully diluted 137,612,268 139,100,159 139,338,821 139,124,420 138,705,063
End of period shares outstanding 134,308,475 135,418,510 136,817,658 136,896,865 136,652,937
End of period banking offices 486 573 578 574 578
As of / For the Nine Months Ended Increase (Decrease)
(Dollars in thousands) 9/30/97 9/30/96 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 230,070 $ 219,052 $ 11,018 5.0 %
Allowance for acquired loans 5,501 -- 5,501 NM
Provision for loan & lease losses 67,851 44,161 23,690 53.6
Charge-offs (59,701) (46,654) 13,047 28.0
Recoveries 13,718 13,481 237 1.8
Ending balance $ 257,439 $ 230,040 $ 27,399 11.9 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .33 % .26 %
Ratio of allowance for loan & lease losses to
net charge-offs 4.19 x 5.19 x
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 9 Investor Relations FAX (919) 246-4871
For the Quarter Ended
9/30/97 6/30/97 3/31/97 12/31/96 9/30/96
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
Securities* 6.89 % 6.79 % 6.73 % 6.80 % 6.66 %
Loans & leases 9.23 9.29 9.15 9.09 9.10
Other earning assets 4.26 6.14 5.26 5.37 5.49
Total earning assets* 8.63 8.64 8.51 8.47 8.44
Interest expense:
Interest-bearing deposits 4.40 4.40 4.38 4.39 4.42
Short-term borrowed funds 5.38 5.36 5.11 5.14 5.36
Long-term debt 5.88 5.82 5.65 5.66 5.80
Total interest-bearing liabilities 4.70 4.66 4.58 4.59 4.64
Net yield on earning assets 4.55 % 4.62 % 4.57 % 4.51 % 4.44 %
NOTE: *Yields calculated based on securities at amortized cost.
As of
(Dollars in thousands) 9/30/97
DERIVATIVES: INTEREST RATE SWAPS, CAPS & FLOORS
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
Receive fixed swaps $ 991,000 6.50 % 5.71 % $ 14,692
Pay fixed swaps 339,291 5.68 5.56 956
Basis swaps 50,000 5.56 5.53 (1)
Caps & floors 665,000 -- -- 1,743
Total $ 2,045,291 06.26 % 5.67 % $ 17,390
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
Receive fixed swaps $ 991,000 $ 200,000 $ 291,000 $ 500,000
Pay fixed swaps 339,291 3,478 323,702 12,111
Basis swaps 50,000 50,000 -- --
Caps & floors 665,000 -- 605,000 60,000
Total $ 2,045,291 $ 253,478 $ 1,219,702 $ 572,111
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BB&T CORPORATION
(Registrant)
By: /S/ SHERRY A. KELLETT
Sherry A. Kellett
Executive Vice President and Controller
(Principal Accounting Officer)
Date: October 10, 1997