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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
Of the Securities Exchange Act of 1934
December 15, 1999
Date of Report (Date of earliest event recorded)
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)
(336) 733-2000
(Registrant's Telephone Number, Including Area Code)
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This Form 8-K has 33 pages.
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Item 5. Other Events
The purpose of this Current Report on Form 8-K is to announce that BB&T
Corporation ("BB&T") has entered into a definitive agreement to acquire First
Banking Company of Southeast Georgia ("First Banking Company"), of Statesboro,
Georgia, and to file certain analyst presentation materials related to this
transaction as Exhibit 99.1.
The transaction will be accomplished through a $124.2 million stock
swap. It is BB&T's fifth acquisition of a Georgia bank during 1999 and will
increase the bank's assets in Georgia to $5 billion after all pending mergers
are completed.
The acquisition will bolster BB&T's presence in southeast Georgia and
enhance BB&T's market position in the Savannah area.
First Banking Company, with $419 million in assets, operates 12 banking
offices in southeast Georgia. Its banking subsidiaries are First Bulloch Bank &
Trust Company of Statesboro, Metter Banking Company of Metter, First National
Bank of Effingham (located in Springfield and Rincon), and Wayne National Bank
of Jesup.
The transaction, approved by the directors of both companies, is valued
at $22.06 per share of First Banking Company's common stock based on BB&T's
closing stock price on December 13, 1999, of $29.8125. The exchange ratio will
be fixed at .74 shares of BB&T common stock for each First Banking Company share
outstanding. The transaction is expected to be accounted for as a pooling of
interests.
First Banking Company's branch network will join BB&T's Macon-based
community bank region. BB&T currently has 19 autonomous regions, which operate
like community banks.
Bulloch County - home county to First Banking Company - is a regional
center for banking, education, shopping and recreation. The four counties served
by First Banking's four banking subsidiaries are near the intersection of
Interstate Highways 95 and 16, which forms a high growth corridor in southeast
Georgia.
The merger, which is subject to the approval of banking regulators and
First Banking Company's shareholders, is expected to be completed in the second
quarter of 2000.
Item 7. Exhibits
99.1 Analyst Presentation Materials
BB&T
and
First Banking Company of
Southeast Georgia
Statesboro, Georgia
Expanding a Great Franchise
Analyst Presentation
December 15,1999
Forward-Looking Information
BB&T has made forward-looking statements in the accompanying analyst
presentation materials that are subject to risks and uncertainties. These
statements are based on the beliefs and assumptions of the management of BB&T,
and on the information available to management at the time the analyst
presentation materials were prepared. In particular, the analyst materials in
this report include statements regarding estimated earnings per share of BB&T on
a stand alone basis, expected cost savings from the merger, estimated
restructuring charges relating to the merger, estimated increases in First
Banking Company's fee income ratio, the anticipated accretive effect of the
merger, and BB&T's anticipated performance in future periods. With respect to
estimated cost savings and restructuring charges, BB&T has made assumptions
about, among other things, the extent of operational overlap between BB&T and
First Banking Company, the amount of general and administrative expense
consolidation, costs relating to converting First Banking Company's bank
operations and data processing to BB&T's systems, the size of anticipated
reductions in fixed labor costs, the amount of severance expenses, the extent of
the charges that may be necessary to align the companies' respective accounting
reserve policies, and the cost related to the merger. The realization of cost
savings and the amount of restructuring charges are subject to the risk that the
foregoing assumptions are inaccurate.
Any statements in the accompanying exhibit regarding the anticipated accretive
effect of the merger and BB&T's anticipated performance in future periods are
subject to risks relating to, among other things, the following possibilities:
(1) expected cost savings from this merger or other previously-announced mergers
may not be fully realized or realized within the expected time frame; (2)
deposit attrition, customer loss or revenue loss following proposed mergers may
be greater than expected; (3) competitive pressure among depository and other
financial institutions may increase significantly; (4) costs or difficulties
related to the integration of the businesses of BB&T and its merger partners,
including First Banking Company, may be greater than expected; (5) changes in
the interest rate environment may reduce margins; (6) general economic or
business conditions, either nationally or regionally, may be less favorable than
expected, resulting in, among other things, a deterioration in credit quality,
or a reduced demand for credit; (7) legislative or regulatory changes, including
changes in accounting standards, may adversely affect the businesses in which
BB&T and First Banking Company are engaged; (8) adverse changes may occur in the
securities markets; and (9) competitors of BB&T and First Banking Company may
have greater financial resources and develop products that enable such
competitors to compete more successfully than BB&T and First Banking Company.
BB&T believes these forward-looking statements are reasonable; however, undue
reliance should not be placed on such forward-looking statements, which are
based on current expectations. Such statements are not guarantees of
performance. They involve risks, uncertainties and assumptions. The future
results and shareholder values of BB&T following completion of the merger may
differ materially from those expressed in these forward-looking statements. Many
of the factors that will determine these results and values are beyond
management's ability to control or predict.
2
Outline
- - Background and transaction terms
- - Financial data
- - Rationale and strategic objectives
- - Investment criteria
- - Summary
3
BB&T Corporation
(BBT)
- - $45.9 billion bank holding company*
- - 700 branch locations in NC, SC, VA, GA, MD, WV, KY, and the District of
Columbia*
For 3 months
ended9/30/99**
------------
- - ROA 1.55%
- - Cash Basis ROA 1.69%
- - ROE 21.20%
- - Cash Basis ROE 27.88%
- - Cash Basis Efficiency Ratio 51.17%
* Includes the pending acquisitions of Premier Bancshares, Inc. and Hardwick
Holding Company
** Recurring earnings
4
First Banking Company of
Southeast Georgia (FBCG)
- - $419.1 million bank holding company
- - 12 banking offices in Georgia
For 3 months
ended 9/30/99
-------------
- - ROA 1.81%
- - ROE 13.95%
- - Efficiency ratio 52.24%
5
Pro Forma Company Profile
September 30, 1999
o Size: $46.3 billion in assets
$10.5 billion in market capitalization*
o Offices NC: 341
VA: 104
SC: 90
GA: 103
MD: 51
KY: 10
WV: 7
DC: 6
------------
Total 712
* Based on closing prices as of 12/13/99. Includes shares outstanding for
Premier Bancshares, Inc., Hardwick Holding Company and First Banking Company
and First Banking Company of Southeast Georgia.
6
Terms of the Transaction
7
Terms of the Transaction
- - Purchase price: $22.06 per share*
- - Aggregate value: $124.2 million*
- - Consideration: Fixed exchange ratio of .74 BB&T
shares for each First Banking Co. share
- - Structure: Tax-free exchange of stock equal to
100% of purchase price
- - Accounting treatment: Transaction will be accounted for as
a pooling-of-interests
- - Lock-up provision: Stock option agreement
- - Expected closing: Second quarter of 2000
* Based on BB&T's closing stock price of $29.8125 as of 12/13/99.
8
Pricing
- - Purchase price $22.06
- - Premium/market 8.9%*
- - Price/9-30-99 stated book 2.26x
- - Price/LTM EPS 18.7x
- - BB&T shares issued 4.17 million**
* Based on First Banking Company's closing stock price of $20.25 as of
12/13/99.
** BB&T shares issued based on First Banking Company shares outstanding
adjusted for stock options.
9
Acquisition Comparables*
Bank Acquisitions with Deal Values over $50 Million Announced Since 8/15/99
- ------------------------------------------------------------------------------------------------------------------------------------
Total Deal Pr/
Date Assets Deal Deal Deal Pr/ LTM Deal Pr/
Buyer Seller Announced Seller Value Pr/Bk Tg Bk EPS 99 EPS Est
($000) ($M) (%) (%) (x) (x)
BB&T Corporation Hardwick Holding Co. 11/17/1999 518,251 138.7 252.8 270.4 26.4 25.2
Whitney Holding Corp. Bank of Houston 11/17/1999 183,919 58.0 285.0 285.0 32.2 N/A
First Charter Corporation Carolina First BancShares Inc. 11/08/1999 762,687 263.2 401.0 439.6 33.0 28.3
Wells Fargo & Company Michigan Financial Corporation 11/03/1999 833,592 209.3 208.9 208.9 18.1 N/A
Gold Banc Corporation Inc. CountryBanc Holding Company 10/25/1999 463,313 82.7 211.0 286.1 16.8 N/A
Wachovia Corp. B.C. Bankshares Incorporated 10/07/1999 369,703 133.9 360.4 360.4 21.8 N/A
F&M National Corporation State Bank of the Alleghenies 10/06/1999 155,411 53.3 310.5 310.5 21.5 N/A
Summit Bancorp NMBT CORP 10/04/1999 391,930 76.1 245.8 247.2 21.3 20.3
Wells Fargo & Company North County Bancorp 09/30/1999 349,003 112.0 348.1 350.4 23.4 N/A
City National Corporation Pacific Bank NA 09/22/1999 728,622 151.4 197.1 220.2 42.0 18.1
InterWest Bancorp Inc. Liberty Bay Financial Corporation 09/15/1999 179,518 50.7 260.7 263.0 18.3 N/A
Old Kent Financial Corp. Grand Premier Financial 09/10/1999 1,574,959 393.1 206.4 225.4 12.3 19.4
Old National Bancorp Heritage Financial Services Inc. 09/10/1999 206,794 63.3 381.8 382.4 21.5 N/A
Gold Banc Corporation Inc. American Bancshares Inc. 09/07/1999 484,828 93.1 338.6 339.2 45.5 35.0
U.S. Bancorp Peninsula Bank of San Diego 09/02/1999 453,288 104.4 347.6 348.9 22.7 N/A
Centura Banks Inc. Triangle Bancorp Inc. 08/23/1999 2,285,333 607.7 356.2 412.7 24.4 21.7
Staten Island Bancorp Inc. First State Bancorp 08/18/1999 352,365 84.0 212.3 212.3 18.7 N/A
NBT Bancorp Inc. Lake Ariel Bancorp Inc. 08/16/1999 492,894 92.6 255.9 272.1 25.0 24.7
Maximum 2,285,333 607.7 401.0 439.6 45.5 35.0
Minimum 155,411 50.7 197.1 208.9 12.3 18.1
Average 599,245 153.8 287.8 301.9 24.7 24.1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
BB&T Corp. First Banking Co. of S.E. Georgia 419,109 124.2 225.6 227.1 18.7 17.6**
Over / (Under) Average Comparable (62.1) (74.8) (6.0) (6.4)
** Based on First Banking Company's management earnings estimate.
- ------------------------------------------------------------------------------------------------------------------------------------
10
* Source for Acquisition Comparables: SNL Securities.
Financial Data
11
Financial Summary
For Quarter Ended: 9/30/99 9/30/99
BB&T* First Banking*
------- ---------
ROA 1.55% 1.81%
ROE 21.20 13.95
Net interest margin (FTE) 4.25 5.35
Efficiency ratio 53.15 52.24
Net charge-offs .26 .01
Reserve/NPLs 410.36 322.98
NPAs/assets .28 .44
* Recurring earnings
12
Capital Strength
BB&T First Banking
(9/30/99) (9/30/99)
--------- ----------
Equity/assets 7.4% 13.0%
Leverage capital ratio 6.6% 13.0%
Total risk-based capital 13.4% 19.8%
13
Rationale for Acquisition
- - BB&T has an announced strategy to pursue in-market (Carolinas/Virginia/
DC/Maryland/Georgia) and contiguous state acquisitions of high quality
banks and thrifts in the $250 million to $10 billion range. The
acquisition of First Banking Company of Southeast Georgia is consistent
with this strategy.
- - This acquisition is very consistent with past acquisitions which we
have successfully executed, i.e. it fits our model.
- - First Banking Company of Southeast Georgia provides BB&T with a market
presence in the attractive southeastern counties of Georgia.
14
Strategic Objectives
The key strategic objectives in this acquisition are:
- Extension of BB&T's Georgia franchise
- Improve efficiency
* 25% cost savings fully realized in the year 2001
- Supplement First Banking Company's primarily commercial and real estate
lending expertise in additional segments such as:
* BB&T's focus on the small to middle market commercial customer
and BB&T's lending expertise in those segments
* BB&T's strong retail banking emphasis
* BB&T's extensive array of fee related businesses
- Increase productivity and market penetration through the use of BB&T's
successful "Decathlon" sales management system
15
Franchise Enhancement
- - Enhances BB&T's Georgia operations
- - Provides added presence in markets contiguous to the Savannah Metro area
- - Increases BB&T's asset base in Georgia to $5.0 billion
16
Efficiency Improvement
Targeted Annual Cost Savings
----------------------------
$3.6 million or approximately
25% of First Banking
Company's expense base
17
After-Tax One-Time Charges
One-time merger-related charges
-------------------------------
$6.0 million
18
Branch Locations
[Map showing location of both existing and pending BB&T branches
throughout MD, VA, WV, KY, NC, SC and GA inserted here]
19
Branch Locations
[Map showing location of First Banking Company branches throughout
Southeast Georgia inserted here]
20
Market Characteristics
[Graphic of State of Georgia with Metro Savannah Georgia region
indicated by two concentric circles inserted on left side of slide]
- - Georgia's economy is projected to be among the Southeast region's most
prosperous and to outperform the national economy substantially.
- - The I-95 and I-16 intersection, in FBCG's market, forms a growth
corridor in southeast Georgia.
- - Bulloch County is a regional center for shopping, banking, education
and recreation.
- - Savannah is Georgia's second fastest growing MSA.
- - Total population in the Savannah MSA is projected to increase 7% by
2003 to 307,907.
- - Total 1999 employment in the Savannah MSA is projected to increase 1.7%
from 1998 to 135,606.
21
BB&T Investment Criteria
- - EPS and Cash Basis EPS (accretive by year 2)
- - Internal rate of return (15% or better)
- - Return on equity and Cash Basis ROE (accretive by year 3)
- - Return on assets and Cash Basis ROA (accretive by year 3)
- - Book value per share (accretive by year 5)
- - Must not cause combined leverage capital ratio to go below 7%
Criteria are listed in order of importance. There are sometimes trade-
offs among criteria.
22
Assumptions
- - BB&T's 1999 and 2000 EPS are based on First Call estimates of $1.97 and
$2.21 respectively, and subsequent years are based on 12% income
statement and balance sheet growth.
- - First Banking Company's 1999 EPS is based on management's estimate of
$1.25. First Banking Company's 2000 EPS estimate (on a stand-alone
basis) is $1.43. Subsequent to the acquisition, we have assumed that
performance can be enhanced through more effective management of First
Banking Company's balance sheet. For the years 2001 and thereafter, we
have assumed 12% income statement and balance sheet growth except for
the enhancements cited below.
- - $3.6 million in cost savings (25% of First Banking Company's expense
base), 40% realized in the year 2000 and 60% realized in 2001.
- - First Banking Company's core net interest margin (non-FTE) is maintained
annually at 5.44%.
- - First Banking Company's core fee income ratio is increased to 25% by 2005.
23
Earnings Per Share Impact
Accretion Accretion
(Dilution) Pro Forma (Dilution)
Pro Forma Pro Forma Cash Basis Pro Forma
EPS Shares EPS Shares
---------- ----------- ------------ ------------
2000* $ 2.21 $ 0.000 $ 2.35 $ (0.001)
2001 2.48 0.005 2.62 0.004
2002 2.78 0.007 2.92 0.005
2003 3.11 0.009 3.25 0.007
2004 3.49 0.012 3.63 0.011
2005 3.91 0.017 4.05 0.015
2006 4.38 0.019 4.52 0.018
2007 4.91 0.021 5.04 0.020
2008 5.50 0.024 5.63 0.023
2009 6.16 0.027 6.29 0.025
2010 6.90 0.030 7.03 0.029
Internal rate of return 20.94%
------
*Recurring Earnings
24
ROE Impact 1
Pro Forma
Pro Forma Cash Basis
ROE (%) Change ROE (%) Change
--------- ------ ---------- ------
2000 2 19.32 (0.052) 23.83 (0.137)
2001 19.22 0.013 22.86 (0.040)
2002 19.04 0.013 21.96 (0.030)
2003 18.85 0.016 21.18 (0.018)
2004 18.64 0.022 20.50 (0.005)
2005 18.42 0.030 19.90 0.008
1 The decrease in ROE results from the build up in equity relative to assets.
2 Recurring earnings
25
ROA Impact
Pro Forma
Pro Forma Cash Basis
ROA (%) Change ROA (%) Change
--------- ------ ---------- ------
2000* 1.62 0.001 1.75 (0.001)
2001 1.63 0.004 1.74 0.003
2002 1.63 0.004 1.73 0.003
2003 1.64 0.005 1.72 0.004
2004 1.64 0.006 1.71 0.005
2005 1.64 0.007 1.71 0.007
* Recurring earnings
26
Book Value/Capital Impact
Pro Forma
Book Value Per Share
-------------------- Pro Forma
Accretion Leverage Accretion
Stated (Dilution) Ratio (Dilution)
------ ---------- --------- ----------
2000 $ 12.12 $ 0.017 7.87% 0.027
2001 13.70 0.022 8.17 0.027
2002 15.50 0.029 8.44 0.027
2003 17.55 0.038 8.69 0.028
2004 19.90 0.050 8.93 0.030
2005 22.59 0.067 9.17 0.033
2006 25.68 0.086 9.39 0.036
2007 29.20 0.108 9.62 0.038
2008 33.24 0.132 9.83 0.040
2009 37.86 0.159 10.05 0.042
2010 43.13 0.189 10.26 0.044
27
Summary
- - The acquisition of First Banking Company of Southeast Georgia is a
strong strategic fit:
* It helps accomplish our goal of expanding the Georgia market
* It fits culturally and geographically
* This is the type of merger we have consistently successfully executed
- - Overall Investment Criteria are met:
* EPS accretive in all years and Cash Basis EPS accretive in year 1
* IRR 20.94%
* ROE accretive in year 1 and Cash ROE accretive in year 5
* ROA accretive in all years and Cash ROA accretive in year 1
* Book value accretive in all years
* Combined leverage ratio remains above 7%
28
Appendix
- - Historical Financial Data
- - Glossary
29
First Banking Co. of S.E. Georgia
Financial Summary
Estimated
1997 1998 1999
--------------------------------
Earnings Summary (In thousands)
Interest Income (FTE)
Interest on loans & leases ............................ $ 28,112 $ 29,314 $ 29,584
Interest & dividends on securities .................... 6,612 6,144 5,047
Interest on temporary investments ..................... 1,080 1,434 1,339
-------- -------- --------
Total interest income (FTE) ....................... 35,804 36,892 35,970
-------- -------- --------
Interest Expense
Interest expense on deposit accounts .................. 15,198 15,296 13,249
Interest on short-term borrowings ..................... -- -- 14
Interest on long-term debt ............................ 738 771 1,107
-------- -------- --------
Total interest expense ............................ 15,936 16,067 14,370
-------- -------- --------
Net interest income (FTE) ............................. 19,868 20,825 21,600
Less taxable equivalency adjustment .............. 721 761 765
-------- -------- --------
Net interest income ................................... 19,147 20,064 20,835
Provision for loan losses ............................. 1,086 1,018 591
-------- -------- --------
Net interest income after provision ................... 18,061 19,046 20,245
-------- -------- --------
Noninterest Income
Service charges on deposit accounts ................... 2,561 2,630 2,860
Non-deposit fees and commissions ...................... 209 106 145
G / (L) on sale of real estate & securities............ (22) (26) 1
Other operating income ................................ 817 1,033 1,133
-------- -------- --------
Total noninterest income .......................... 3,565 3,743 4,139
-------- -------- --------
Noninterest Expense
Personnel ............................................. 6,357 6,678 7,080
Occupancy & equipment ................................. 2,406 2,565 2,612
FDIC premiums ......................................... 107 72 --
Other operating expenses .............................. 3,596 3,922 3,978
-------- -------- --------
Total noninterest expense ......................... 12,466 13,237 13,670
-------- -------- --------
Net income before taxes ............................... 9,160 9,552 10,714
Income taxes .......................................... 2,671 2,734 3,488
-------- -------- --------
Net income before nonrecurring charges ................ 6,489 6,818 7,226
-------- -------- --------
Nonrecurring charges .................................. -- (155) (222)
======== ======== ========
Net income ........................................ $ 6,489 $ 6,663 $ 7,004
======== ======== ========
Basic EPS ............................................. $ 1.22 $ 1.22 $ 1.25
Diluted EPS ........................................... 1.21 1.22 1.25
Diluted EPS before nonrecurring charges ............... 1.21 1.25 1.29
Book value ............................................ $ 8.77 $ 9.50 $ 9.96
EOP shares ............................................ 5,370 5,545 5,592
Basic shares .......................................... 5,315 5,441 5,592
Diluted shares ........................................ 5,381 5,475 5,597
30
First Banking Co. of S.E. Georgia
Financial Summary
Estimated
1997 1998 1999
----------------------------------
Average Balance Sheet
(In thousands)
Assets
Loans ............................................ $ 268,749 $ 283,722 $ 302,284
Securities ....................................... 102,590 96,383 69,466
Other earning assets ............................. 19,443 26,780 23,477
-------- -------- --------
Total interest-earning assets ................ 390,782 406,885 395,227
-------- -------- --------
Goodwill & other intangibles ..................... 435 400 358
Other assets ..................................... 27,069 27,084 27,391
======== ======== ========
Total assets ................................. $418,286 $ 434,369 $ 422,976
======== ======== ========
Net interest margin .............................. 5.08% 5.12% 5.47%
Securities as a percent of earning assets ........ 26% 24% 18%
Liabilities & Shareholders' Equity
Interest-bearing deposits:
Money Market & NOW ............................... $ 89,420 $ 98,566 $ 94,112
Savings .......................................... 18,506 18,202 19,754
CD's and other time .............................. 203,986 199,305 179,822
-------- -------- --------
Total interest-bearing deposits .............. 311,912 316,073 293,688
Short-term borrowed funds ........................ 2 8 991
Long-term debt ................................... 10,652 11,735 18,009
-------- -------- --------
Total interest-bearing liabilities ........... 322,566 327,816 312,688
Demand deposits .................................. 46,558 51,668 51,325
Other liabilities ................................ 4,682 5,113 4,141
-------- -------- --------
Total liabilities ............................ 373,806 384,597 368,154
-------- -------- --------
Preferred equity ................................. -- -- --
Common equity .................................... 44,480 49,772 54,822
-------- -------- --------
Total equity ................................. 44,480 49,772 54,822
-------- -------- --------
-------- -------- --------
Total liabilities & shareholders' equity ......... $ 418,286 $ 434,369 $ 422,976
======== ========= ==========
Other int-liab. as a percent of total assets ..... 3% 3% 4%
31
First Banking Co. of S.E. Georgia
Financial Summary
Estimated
1997 1998 1999
---------------------------------
Ratio Analysis
ROA ........................................ 1.55% 1.57% 1.71%
ROCE ....................................... 14.59% 13.70% 13.18%
Efficiency ratio ........................... 53.1% 53.8% 53.1%
Adj. noninterest income / Adj. revenues .... 15.3% 15.3% 16.1%
Average equity / Average assets ............ 10.6% 11.5% 13.0%
Credit Quality
(In thousands)
Beginning .................................. $ 4,239 $ 4,194 $ 4,419
-------- -------- --------
Provision .................................. 1,086 1,018 591
Net charge-offs ............................ (1,131) (793) (137)
-------- -------- --------
Ending allowance ........................... $ 4,194 $ 4,419 $ 4,873
-------- -------- --------
Allowance .................................. 1.50% 1.53% 1.60%
Charge-off rate ............................ 0.42% 0.28% 0.05%
Period end loans & leases .................. $ 278,966 $ 287,884 $ 304,535
Period end common equity ................... $ 47,073 $ 52,677 $ 55,694
32
Glossary
Return on Assets - recurring earnings for the period as a percentage of average
assets for the period.
Return on Equity - recurring earnings for the period as a percentage of average
common equity for the period.
Cash Basis Performance Results and Ratios - These calculations exclude the
effect on net income of amortization expense applicable to certain intangible
assets. The ratios also exclude the effect of the unamortized balances of these
intangibles from assets and equity.
Efficiency Ratio - calculated as recurring noninterest expense as a percentage
of the sum of recurring net interest income on a fully taxable equivalent basis
and recurring noninterest income.
Leverage Capital Ratio - Common shareholders' equity excluding unrealized
securities gains and losses and certain intangible assets as a percentage of
average assets for the most recent quarter less certain intangible assets.
Total Risk-Based Capital Ratio - The sum of shareholders' equity, a qualifying
portion of subordinated debt and a qualifying portion of the allowance for loan
and lease losses as a percentage of risk-weighted assets.
Net Charge-Off Ratio - Loan losses net of recoveries as a percentage of average
loans and leases.
Internal Rate of Return - The interest rate that equates the present value of
future returns to the investment outlay. An investment is considered acceptable
if its IRR exceeds the required return. The investment is defined as the market
value of the stock and/or other consideration to be received by the selling
shareholders.
Recurring Results or Ratios - earnings excluding charges and expenses
principally related to completing mergers and acquisitions.
Certain of the ratios discussed above may be annualized if the applicable
periods are less than a full year.
33
SIGNATURE
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
Senior Executive Vice President and Controller
(Principal Accounting Officer)
Date: December 15, 1999.