WINSTON-SALEM, N.C.,
Oct. 19, 2016 /PRNewswire/
-- BB&T Corporation (NYSE: BBT) today reported quarterly
earnings for the third quarter of 2016. Net income available to
common shareholders was $599 million,
up 21.7% from the third quarter of 2015. Earnings per diluted
common share were $0.73 for the third
quarter of 2016. Excluding pre-tax merger-related and restructuring
charges of $43 million ($27 million after tax), net income available to
common shareholders was $626 million,
or $0.76 per diluted share.
Net income available to common shareholders was $541 million ($0.66
per diluted share) for the second quarter of 2016 and $492 million ($0.64
per diluted share) for the third quarter of 2015.
"We are pleased to report record earnings for the third
quarter," said Chairman and Chief Executive Officer Kelly S. King. "We achieved strong revenue
growth and excellent expense control by capitalizing on our recent
acquisitions.
"Taxable-equivalent revenues were $2.8
billion, up $325 million
compared to the third quarter of 2015," said King. "For comparison,
noninterest expense increased $117
million over the same period, highlighting the strong
leverage we achieved with our acquisitions.
"We also completed several strategic actions during the
quarter," said King. "We terminated our loss sharing agreements
with the FDIC, settled certain matters related to FHA-insured
mortgage loans, made a $50 million
charitable contribution and completed $160
million of share repurchases. While these actions did not
have a significant net impact on our quarterly results, they will
reduce ongoing costs and complexity and position us to provide
greater returns for our shareholders."
Third Quarter 2016 Performance
Highlights
- Taxable-equivalent revenues were $2.8
billion for the third quarter, up $27
million from the second quarter of 2016
- Net interest income on a taxable-equivalent basis was down
$7 million
- Net interest margin was 3.39%, down two basis points
- Noninterest income was up $34
million
- Fee income ratio was 41.9%, compared to 41.2% for the prior
quarter
- Noninterest expense was $1.7
billion, down $86 million
compared to the second quarter of 2016
- Personnel expense decreased $33
million primarily due to lower production-based incentives
and employee benefits
- Merger-related and restructuring charges were $49 million lower as the National Penn and Swett
& Crawford acquisitions occurred at the start of the prior
quarter
- GAAP efficiency ratio was 61.7%, compared to 65.4% for the
prior quarter. Adjusted efficiency ratio was 58.7%, compared to
59.6% for the prior quarter
- Average loans and leases held for investment were $141.3 billion compared to $141.1 billion for the second quarter of 2016
- Average other lending subsidiaries loans increased $781 million, or 22.3% annualized
- Average CRE-construction and development loans increased
$133 million, or 14.4%
annualized
- Average sales finance loans declined $331 million, or 13.6% annualized
- Average deposits were $159.5
billion compared to $160.3
billion for the prior quarter
- Average noninterest-bearing deposits increased $1.8 billion, or 14.3% annualized
- Average interest-bearing deposit costs were 0.23%, flat
compared to the prior quarter
- Deposit mix remained strong, with average noninterest-bearing
deposits representing 31.7% of total deposits, compared to 30.4% in
the prior quarter
- Asset quality remained strong
- Loans 90 days or more past due and still accruing were 0.42% of
loans held for investment, compared to 0.43% in the prior
quarter
- Loans 30-89 days past due and still accruing were 0.69% of
loans held for investment, compared to 0.64% in the prior
quarter
- The allowance for loan and lease losses was 1.06% of loans held
for investment, flat compared to the prior quarter, which includes
the impact of a shared national credit review
- Nonperforming assets decreased $43
million, driven by reductions in commercial and industrial
nonperforming loans
- The allowance for loan loss coverage ratio was 2.00 times
nonperforming loans held for investment, versus 1.90 times in the
prior quarter
- Capital levels remained strong across the board
- Common equity tier 1 to risk-weighted assets was 10.1%, or 9.9%
on a fully phased-in basis
- Tier 1 risk-based capital was 11.8%
- Total capital was 14.0%
- Leverage capital was 9.8%
EARNINGS
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions,
except per share data)
|
|
|
|
|
|
|
|
Change 3Q16
vs.
|
|
|
3Q16
|
|
2Q16
|
|
3Q15
|
|
2Q16
|
|
3Q15
|
Net income available
to common shareholders
|
|
$
|
599
|
|
|
$
|
541
|
|
|
$
|
492
|
|
|
$
|
58
|
|
|
$
|
107
|
|
Diluted earnings per
common share
|
|
0.73
|
|
|
0.66
|
|
|
0.64
|
|
|
0.07
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
taxable equivalent
|
|
$
|
1,650
|
|
|
$
|
1,657
|
|
|
$
|
1,501
|
|
|
$
|
(7)
|
|
|
$
|
149
|
|
Noninterest
income
|
|
1,164
|
|
|
1,130
|
|
|
988
|
|
|
34
|
|
|
176
|
|
Total
taxable-equivalent revenue
|
|
$
|
2,814
|
|
|
$
|
2,787
|
|
|
$
|
2,489
|
|
|
$
|
27
|
|
|
$
|
325
|
|
Less
taxable-equivalent adjustment
|
|
40
|
|
|
40
|
|
|
37
|
|
|
|
|
|
Total
revenue
|
|
$
|
2,774
|
|
|
$
|
2,747
|
|
|
$
|
2,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (%)
|
|
1.15
|
|
|
1.06
|
|
|
1.04
|
|
|
0.09
|
|
|
0.11
|
|
Return on average
risk-weighted assets (%)
|
|
1.45
|
|
|
1.38
|
|
|
1.32
|
|
|
0.07
|
|
|
0.13
|
|
Return on average
common shareholders' equity (%)
|
|
8.87
|
|
|
8.21
|
|
|
8.14
|
|
|
0.66
|
|
|
0.73
|
|
Return on average
tangible common shareholders' equity (1) (%)
|
|
15.20
|
|
|
14.33
|
|
|
13.23
|
|
|
0.87
|
|
|
1.97
|
|
Net interest margin -
taxable equivalent (%)
|
|
3.39
|
|
|
3.41
|
|
|
3.35
|
|
|
(0.02)
|
|
|
0.04
|
|
(1)
|
Excludes certain
items as detailed in the non-GAAP reconciliations in the Quarterly
Performance Summary.
|
Third Quarter 2016 compared to Second Quarter 2016
Strategic actions during the third quarter of 2016 included the
termination of the FDIC loss sharing agreements, the settlement of
certain matters related to FHA-insured mortgage loans, a
$50 million charitable contribution
and $160 million of share
repurchases. Under the terms of the termination agreement with the
FDIC, Branch Bank made a cash payment of $230 million, and the FDIC no longer shares in
future benefits related to the acquired loans and securities. The
termination of these agreements increased risk-weighted assets by
approximately $250 million.
Total taxable-equivalent revenues were $2.8 billion for the third quarter of 2016, an
increase of $27 million compared to
the prior quarter, which reflects a decrease of $7 million in taxable-equivalent net interest
income, while noninterest income was up $34
million, primarily due to the termination of the FDIC loss
share agreements.
The net interest margin was 3.39% for the third quarter, down
two basis points compared to the prior quarter. Average earning
assets decreased $913 million, which
primarily reflects a $1.4 billion
decrease in average securities partially offset by a $592 million increase in average total loans (HFI
and HFS). Average interest-bearing liabilities decreased
$3.3 billion, which primarily
reflects a $2.6 billion decrease in
interest-bearing deposits driven by a decline in time deposits.
Average short-term borrowings decreased $823
million, while long-term debt increased $156 million due to issuances in the prior
quarter.
The annualized yield on the total loan portfolio for the third
quarter was 4.30%, down one basis point compared to the prior
quarter due to sustained low interest rates. The annualized
taxable-equivalent yield on the average securities portfolio for
the third quarter was 2.32%, down 15 basis points compared to the
prior quarter, primarily due to lower new investment yields and
duration adjustments on non-agency mortgage-backed securities.
The average annualized cost of interest-bearing deposits was
0.23%, flat compared to the prior quarter. The average annualized
rate paid on long-term debt was 2.05%, down five basis points
compared to the prior quarter, due to lower rates on the second
quarter debt issuance and the maturity of higher cost FHLB
advances.
Excluding acquired from FDIC and purchased credit impaired
("PCI") loans, the provision for credit losses was $150 million and net charge-offs were
$130 million for the third quarter,
compared to $109 million and
$97 million, respectively, for the
prior quarter. These increases are primarily due to seasonality in
auto lending and other consumer-related portfolios.
Noninterest income of $1.2 billion
was up $34 million compared to the
prior quarter as higher mortgage banking income and improved FDIC
loss share income following the termination of the related
agreements were partially offset by declines in insurance income
and other income.
Noninterest expense was $1.7
billion for the third quarter, down $86 million compared to the prior quarter, which
reflects lower merger-related and restructuring charges, personnel
expense and other expense.
The provision for income taxes was $273
million for the third quarter, compared to $252 million for the prior quarter. The effective
tax rate for the third quarter was 29.8%, compared to 30.0% for the
prior quarter.
Third Quarter 2016 compared to Third Quarter 2015
Total taxable-equivalent revenues were $2.8 billion for the third quarter of 2016, an
increase of $325 million compared to
the earlier quarter. This reflects an increase of $149 million in taxable-equivalent net interest
income, while noninterest income was up $176
million. These increases reflect the acquisitions during the
past year.
Net interest margin was 3.39%, up four basis points compared to
the earlier quarter. Average earning assets increased $15.4 billion, while average interest-bearing
liabilities increased $7.9 billion,
both of which were primarily driven by acquisition activity. The
annualized yield on the total loan portfolio for the third quarter
was 4.30%, down one basis point compared to the earlier quarter.
The annualized taxable-equivalent yield on the average securities
portfolio for the third quarter was 2.32%, up five basis points
compared to the earlier period. This increase is primarily due to
securities duration adjustments during 2016.
The average annualized cost of interest-bearing deposits was
0.23%, down one basis point compared to the earlier quarter. The
average annualized rate paid on long-term debt was 2.05%, down
seven basis points compared to the earlier quarter primarily due to
favorable rates on new issuances.
Excluding acquired from FDIC and PCI loans, the provision for
credit losses was $150 million,
compared to $100 million in the
earlier quarter. Net charge-offs for the third quarter of 2016,
excluding loans acquired from the FDIC and PCI, totaled
$130 million, compared to
$107 million for the earlier
quarter.
Noninterest income was $1.2
billion, up $176 million from
the earlier quarter, driven by higher insurance income, mortgage
banking income and improved FDIC loss share income following the
termination of the related agreements.
Noninterest expense for the third quarter of 2016 was
$1.7 billion, up $117 million compared to the earlier quarter.
This increase reflects higher personnel expense and various other
categories of expense following the current year acquisitions,
partially offset by lower merger-related and restructuring charges
as the earlier quarter included activity related to the Susquehanna
acquisition.
The provision for income taxes was $273
million for the third quarter of 2016, compared to
$222 million for the earlier quarter.
This produced an effective tax rate for the third quarter of 2016
of 29.8%, compared to 29.4% for the earlier quarter.
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 3Q16
vs.
|
|
|
3Q16
|
|
2Q16
|
|
3Q15
|
|
2Q16
|
|
3Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Insurance
income
|
|
$
|
410
|
|
|
$
|
465
|
|
|
$
|
354
|
|
|
(47.1)
|
|
|
15.8
|
|
Service charges on
deposits
|
|
172
|
|
|
166
|
|
|
167
|
|
|
14.4
|
|
|
3.0
|
|
Mortgage banking
income
|
|
154
|
|
|
111
|
|
|
111
|
|
|
154.1
|
|
|
38.7
|
|
Investment banking
and brokerage fees and commissions
|
|
101
|
|
|
102
|
|
|
105
|
|
|
(3.9)
|
|
|
(3.8)
|
|
Trust and investment
advisory revenues
|
|
68
|
|
|
67
|
|
|
63
|
|
|
5.9
|
|
|
7.9
|
|
Bankcard fees and
merchant discounts
|
|
61
|
|
|
60
|
|
|
57
|
|
|
6.6
|
|
|
7.0
|
|
Checkcard
fees
|
|
50
|
|
|
50
|
|
|
45
|
|
|
—
|
|
|
11.1
|
|
Operating lease
income
|
|
34
|
|
|
35
|
|
|
32
|
|
|
(11.4)
|
|
|
6.3
|
|
Income from
bank-owned life insurance
|
|
35
|
|
|
31
|
|
|
29
|
|
|
51.3
|
|
|
20.7
|
|
FDIC loss share
income, net
|
|
(18)
|
|
|
(64)
|
|
|
(58)
|
|
|
NM
|
|
|
(69.0)
|
|
Securities gains
(losses), net
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
NM
|
|
|
(100.0)
|
|
Other
income
|
|
97
|
|
|
107
|
|
|
85
|
|
|
(37.2)
|
|
|
14.1
|
|
Total noninterest
income
|
|
$
|
1,164
|
|
|
$
|
1,130
|
|
|
$
|
988
|
|
|
12.0
|
|
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2016 compared to Second Quarter 2016
Noninterest income was $1.2
billion for the third quarter, up $34
million compared to the prior quarter as improved FDIC loss
share income and higher mortgage banking income were partially
offset by decreases in insurance income and other income.
As previously noted, BB&T reached an agreement with the FDIC
to terminate the loss sharing agreements associated with the
Colonial acquisition. As a result of the termination, $18 million of expense was recognized in the
third quarter and no FDIC loss share income or expense will be
recognized in future periods.
Mortgage banking income increased $43
million due to net mortgage servicing rights valuation
adjustments and higher production volumes.
Insurance income decreased $55
million, primarily due to lower property and casualty
commissions as a result of normal seasonality.
Other income decreased $10
million, primarily due to a decrease in income related to
assets for certain post-employment benefits, which is offset in
personnel expense.
Third Quarter 2016 compared to Third Quarter 2015
Noninterest income for the third quarter of 2016 was up
$176 million compared to the earlier
quarter. This increase was driven by higher insurance income,
mortgage banking income, FDIC loss share income and other
income.
Insurance income increased $56
million, primarily the result of the Swett & Crawford
acquisition.
Mortgage banking income increased $43
million, driven by net mortgage servicing rights valuation
adjustments and higher production volumes.
FDIC loss share income was $40
million better due to the termination of the loss sharing
agreements with the FDIC.
Other income increased $12
million, which includes a $23
million increase in income related to assets for certain
post-employment benefits, which is offset in personnel expense, and
an $11 million increase in client
derivative income. These increases were partially offset by a
$26 million decline in income from
partnerships and other investments, which is primarily due to SBIC
private equity investments.
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
% Change 3Q16
vs.
|
|
|
3Q16
|
|
2Q16
|
|
3Q15
|
|
2Q16
|
|
3Q15
|
|
|
|
|
|
|
|
|
(annualized)
|
|
|
Personnel
expense
|
|
$
|
1,006
|
|
|
$
|
1,039
|
|
|
$
|
882
|
|
|
(12.6)
|
|
|
14.1
|
|
Occupancy and
equipment expense
|
|
203
|
|
|
194
|
|
|
183
|
|
|
18.5
|
|
|
10.9
|
|
Software
expense
|
|
63
|
|
|
53
|
|
|
50
|
|
|
75.1
|
|
|
26.0
|
|
Loan-related
expense
|
|
33
|
|
|
36
|
|
|
38
|
|
|
(33.2)
|
|
|
(13.2)
|
|
Outside IT
services
|
|
51
|
|
|
44
|
|
|
35
|
|
|
63.3
|
|
|
45.7
|
|
Professional
services
|
|
27
|
|
|
26
|
|
|
42
|
|
|
15.3
|
|
|
(35.7)
|
|
Amortization of
intangibles
|
|
38
|
|
|
42
|
|
|
29
|
|
|
(37.9)
|
|
|
31.0
|
|
Regulatory
charges
|
|
41
|
|
|
32
|
|
|
25
|
|
|
111.9
|
|
|
64.0
|
|
Foreclosed property
expense
|
|
9
|
|
|
8
|
|
|
15
|
|
|
49.7
|
|
|
(40.0)
|
|
Merger-related and
restructuring charges, net
|
|
43
|
|
|
92
|
|
|
77
|
|
|
NM
|
|
|
(44.2)
|
|
Loss (gain) on early
extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
NM
|
|
Other
expense
|
|
197
|
|
|
231
|
|
|
218
|
|
|
(58.6)
|
|
|
(9.6)
|
|
Total noninterest
expense
|
|
$
|
1,711
|
|
|
$
|
1,797
|
|
|
$
|
1,594
|
|
|
(19.0)
|
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2016 compared to Second Quarter 2016
Noninterest expense was $1.7
billion for the third quarter, down $86 million compared to the prior quarter. This
change was driven by lower personnel expense, merger-related and
restructuring charges and other expense.
Personnel expense decreased $33
million, which was driven by a $14
million decline in certain post-employment benefits expense,
which is offset in other income, and a $10
million decline in insurance incentives expense based on
performance relative to targets.
Merger-related and restructuring charges decreased $49 million compared to the prior quarter.
National Penn and Swett & Crawford were both acquired at the
start of the second quarter, resulting in a higher volume of
merger-related charges for that quarter. In addition, the prior
quarter included $19 million of
restructuring charges related to real estate actions.
Other expense decreased $34
million primarily due to a $73
million net benefit related to the settlement of certain
legacy mortgage matters involving the origination of mortgage loans
insured by the FHA. Partially offsetting this benefit was a
$50 million charitable
contribution.
Third Quarter 2016 compared to Third Quarter 2015
Noninterest expense for the third quarter of 2016 was up
$117 million compared to the earlier
quarter. This increase was driven by higher personnel expense while
increases in occupancy and equipment expense, outside IT services
and regulatory charges were largely offset by declines in
merger-related and restructuring charges, other expense and
professional services.
Personnel expense increased $124
million, driven by a $62
million increase in salaries, which reflects an increase in
full time equivalent employees of approximately 2,660 primarily
resulting from acquisitions. Personnel expense also reflects a
$32 million increase in incentives
due to improved performance relative to target measures and the
Swett and Crawford acquisition. Additionally, expense related to
certain post-employment benefits expense (offset in other income)
was higher $23 million.
Occupancy and equipment expense increased $20 million as a result of acquisition activity
and higher equipment expenditures.
Outside IT services increased $16
million primarily due to various systems-related
initiatives.
Regulatory charges increased $16
million, primarily due to the FDIC's special assessment for
larger institutions that became effective during the third quarter,
as well as growth through acquisitions.
Merger-related and restructuring charges decreased $34 million. The earlier quarter included the
Susquehanna acquisition, which resulted in a significant volume of
merger-related and restructuring charges.
Other expense decreased $21
million due to the $73 million
net benefit for the FHA settlement, partially offset by the
$50 million charitable
contribution.
Professional services decreased $15
million driven by lower expenditures for strategic
projects.
LOANS AND
LEASES - average balances
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
2Q16
|
|
Change
|
|
% Change
|
|
|
|
|
|
|
|
|
(annualized)
|
Commercial and
industrial
|
|
$
|
51,508
|
|
|
$
|
51,646
|
|
|
$
|
(138)
|
|
|
(1.1)
|
|
CRE-income producing
properties
|
|
14,667
|
|
|
14,786
|
|
|
(119)
|
|
|
(3.2)
|
|
CRE-construction and
development
|
|
3,802
|
|
|
3,669
|
|
|
133
|
|
|
14.4
|
|
Dealer floor
plan
|
|
1,268
|
|
|
1,305
|
|
|
(37)
|
|
|
(11.3)
|
|
Direct retail
lending
|
|
11,994
|
|
|
12,031
|
|
|
(37)
|
|
|
(1.2)
|
|
Sales
finance
|
|
9,339
|
|
|
9,670
|
|
|
(331)
|
|
|
(13.6)
|
|
Revolving
credit
|
|
2,537
|
|
|
2,477
|
|
|
60
|
|
|
9.6
|
|
Residential
mortgage
|
|
30,357
|
|
|
30,471
|
|
|
(114)
|
|
|
(1.5)
|
|
Other lending
subsidiaries
|
|
14,742
|
|
|
13,961
|
|
|
781
|
|
|
22.3
|
|
Acquired from FDIC
and PCI
|
|
1,052
|
|
|
1,130
|
|
|
(78)
|
|
|
(27.5)
|
|
Total loans and leases
held for investment
|
|
$
|
141,266
|
|
|
$
|
141,146
|
|
|
$
|
120
|
|
|
0.3
|
|
Average loans held for investment for the third quarter of 2016
were $141.3 billion, up $120 million compared to the second quarter of
2016.
Other lending subsidiaries average loans increased $781 million, or 22.3% annualized, which reflects
seasonal growth in consumer lending and an increase in insurance
premium financing average balances due to expansion related to
other financial institutions exiting this business.
Average sales finance loans declined $331
million, primarily due to the continued effects of dealer
pricing structure changes implemented during the third quarter of
2015 partially offset by a portfolio acquisition late in the
quarter. Additionally, the decline reflects the continued runoff of
the auto lease portfolio obtained in connection with the
Susquehanna acquisition.
DEPOSITS -
average balances
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
2Q16
|
|
Change
|
|
% Change
|
|
|
|
|
|
|
|
|
(annualized)
|
Noninterest-bearing
deposits
|
|
$
|
50,559
|
|
|
$
|
48,801
|
|
|
$
|
1,758
|
|
|
14.3
|
|
Interest
checking
|
|
27,754
|
|
|
28,376
|
|
|
(622)
|
|
|
(8.7)
|
|
Money market and
savings
|
|
64,335
|
|
|
63,195
|
|
|
1,140
|
|
|
7.2
|
|
Time
deposits
|
|
15,818
|
|
|
18,101
|
|
|
(2,283)
|
|
|
(50.2)
|
|
Foreign office
deposits - interest-bearing
|
|
1,037
|
|
|
1,865
|
|
|
(828)
|
|
|
(176.6)
|
|
Total
deposits
|
|
$
|
159,503
|
|
|
$
|
160,338
|
|
|
$
|
(835)
|
|
|
(2.1)
|
|
Average deposits for the third quarter were $159.5 billion, a decrease of $835 million compared to the prior quarter.
Average noninterest-bearing deposits increased $1.8 billion, primarily due to increases in
commercial balances.
Interest checking decreased $622
million, primarily due to decreases in commercial and
personal balances.
Money market and savings increased $1.1
billion primarily due to investor deposit accounts,
commercial balances and public funds.
Average time deposits were down $2.3
billion driven by decreases in commercial and personal
balances.
Noninterest-bearing deposits represented 31.7% of total average
deposits for the third quarter, compared to 30.4% for the prior
quarter and 30.7% a year ago. The cost of interest-bearing deposits
was 0.23% for the third quarter, flat compared to the prior
quarter.
SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
Change 3Q16
vs.
|
Segment Net
Income
|
|
3Q16
|
|
2Q16
|
|
3Q15
|
|
2Q16
|
|
3Q15
|
Community
Banking
|
|
$
|
338
|
|
|
$
|
295
|
|
|
$
|
260
|
|
|
$
|
43
|
|
|
$
|
78
|
|
Residential Mortgage
Banking
|
|
117
|
|
|
44
|
|
|
58
|
|
|
73
|
|
|
59
|
|
Dealer Financial
Services
|
|
40
|
|
|
51
|
|
|
42
|
|
|
(11)
|
|
|
(2)
|
|
Specialized
Lending
|
|
64
|
|
|
61
|
|
|
61
|
|
|
3
|
|
|
3
|
|
Insurance
Holdings
|
|
23
|
|
|
44
|
|
|
21
|
|
|
(21)
|
|
|
2
|
|
Financial
Services
|
|
83
|
|
|
88
|
|
|
82
|
|
|
(5)
|
|
|
1
|
|
Other, Treasury and
Corporate
|
|
(23)
|
|
|
4
|
|
|
9
|
|
|
(27)
|
|
|
(32)
|
|
Total net
income
|
|
$
|
642
|
|
|
$
|
587
|
|
|
$
|
533
|
|
|
$
|
55
|
|
|
$
|
109
|
|
Third Quarter 2016 compared to Second Quarter 2016
The financial information related to National Penn's operations
was included in the Other, Treasury & Corporate segment until
the systems conversion, which occurred during July 2016.
Community Banking
Community Banking serves individual and business clients by
offering a variety of loan and deposit products and other financial
services. The segment is primarily responsible for acquiring and
maintaining client relationships.
Community Banking net income was $338
million for the third quarter of 2016, an increase of
$43 million compared to the prior
quarter. Segment net interest income was up $49 million, primarily due to the inclusion of
National Penn since conversion, partially offset by lower funding
spreads on deposits. Noninterest income increased $12 million driven by higher service charges on
deposits, letter of credit fees and bankcard fees.
The allocated provision for credit losses was a benefit of
$3 million in the third quarter of
2016 compared to a charge of $23
million in the prior quarter. This change was primarily the
result of improving credit trends in the commercial and industrial
loan portfolio, partially offset by higher net charge-offs.
Noninterest expense increased $12
million driven by higher personnel expense, primarily
attributable to the National Penn acquisition.
Residential Mortgage Banking
Residential Mortgage Banking originates and purchases mortgage
loans to either hold for investment or sell to third-parties.
BB&T generally retains the servicing rights to loans sold.
Mortgage products include fixed and adjustable-rate government
guaranteed and conventional loans used for the purpose of
constructing, purchasing or refinancing residential properties.
Substantially all of the properties are owner-occupied.
Residential Mortgage Banking net income was $117 million for the third quarter of 2016, an
increase of $73 million compared to
the prior quarter. Noninterest income increased $34 million driven by higher net mortgage
servicing rights valuation adjustments and higher saleable loan
volume. Noninterest expense decreased $77
million, driven by the previously discussed settlement of
certain FHA-insured loan matters and lower loan processing
expense.
Dealer Financial Services
Dealer Financial Services originates loans to consumers for the
purchase of automobiles. These loans are originated on an indirect
basis through approved franchised and independent automobile
dealers throughout BB&T's market area through BB&T Dealer
Finance, and on a national basis through Regional Acceptance
Corporation. Dealer Financial Services also originates loans for
the purchase of recreational and marine vehicles. In conjunction
with Community Banking, Dealer Financial Services provides
financing and servicing to dealers for their inventories in
Community Banking's footprint.
Dealer Financial Services net income was $40 million for the third quarter of 2016, a
decrease of $11 million compared to
the prior quarter. This decrease was driven by an $18 million increase in the allocated provision
for credit losses, primarily the result of loan growth and
seasonally higher net charge-offs in the Regional Acceptance loan
portfolio, but still within risk appetite levels.
Specialized Lending
Specialized Lending consists of businesses that provide
specialty finance solutions to commercial and consumer clients
including: commercial finance, mortgage warehouse lending,
tax-exempt financing for local governments and special-purpose
districts, equipment leasing, full-service commercial mortgage
banking, commercial and retail insurance premium finance and small
ticket dealer-based financing of equipment for consumers and small
businesses.
Specialized Lending net income was $64
million for the third quarter of 2016, an increase of
$3 million compared to the prior
quarter.
Specialized Lending average loans increased $1.3 billion, or 29.6% annualized, primarily due
to higher mortgage warehouse, insurance premium finance, small
ticket dealer-based finance and governmental finance loans.
Insurance Holdings
BB&T's insurance agency / brokerage network is the fifth
largest in the United States and
sixth largest in the world. Insurance Holdings provides property
and casualty, life, and health insurance to businesses and
individual clients. It also provides small business and corporate
products, such as workers compensation and professional liability,
as well as surety coverage and title insurance.
Insurance Holdings net income was $23
million in the third quarter of 2016, a decrease of
$21 million compared to the prior
quarter. Noninterest income decreased $53
million, which primarily reflects seasonality in the
commercial property and casualty insurance business. Noninterest
expense decreased $18 million,
primarily due to lower personnel expense, operating charge-offs and
business referral expense.
Financial Services
Financial Services provides personal trust administration,
estate planning, investment counseling, wealth management, asset
management, employee benefits services, corporate banking and
corporate trust services to individuals, corporations,
institutions, foundations and government entities. In addition,
Financial Services offers clients a variety of investment services,
including discount brokerage services, equities, annuities, mutual
funds and government bonds through BB&T Investment Services,
Inc. The segment includes BB&T Securities, a full-service
brokerage and investment banking firm, and the Corporate Banking
Division, which originates and services large corporate
relationships, syndicated lending relationships and client
derivatives. The segment also includes the company's SBIC private
equity investments.
Financial Services net income was $83
million in the third quarter of 2016, a decrease of
$5 million compared to the prior
quarter. Noninterest income increased $16
million, primarily due to higher client derivative income,
trust and investment advisory fees and higher income from SBIC
private equity investments. The allocated provision for credit
losses increased $26 million, driven
by risk grade mix changes, partially offset by lower loan
balances.
Corporate Banking's average loan balances decreased $152 million, or an annualized 4.2%, compared to
the prior quarter, while BB&T Wealth's average loan balances
increased $37 million, or 8.6%
annualized. Corporate Banking's average transaction account
deposits grew $258 million, or 43.6%
on an annualized basis over the prior quarter. BB&T Wealth's
average transaction account deposits grew $150 million, or 13.7% on an annualized
basis.
Other, Treasury & Corporate
Net income in Other, Treasury & Corporate can vary due to
the changing needs of the Corporation, including the size of the
investment portfolio, the need for wholesale funding and income
received from derivatives used to hedge the balance sheet. As
previously discussed, Branch Bank entered into an agreement with
the FDIC to terminate the loss share agreements during the current
quarter.
Other, Treasury & Corporate generated a net loss of
$23 million in the third quarter of
2016, compared to net income of $4
million in the prior quarter. Segment net interest income
decreased $75 million, primarily due
to lower yields and a reduction in the size of the securities
portfolio, as well as the inclusion of National Penn in this
segment in the prior quarter. Noninterest income increased
$14 million, primarily due to
improved FDIC loss share income as a result of the previously
discussed termination of the FDIC loss share agreements. Partially
offsetting this increase was lower income related to assets for
certain post-employment benefits.
The allocated provision for credit losses increased $14 million, primarily attributable to an
increase in the reserve for unfunded lending commitments driven by
changes related to the mix of lines of credit, letters of credit
and bankers' acceptances.
Noninterest expense decreased $5
million as a result of lower personnel expense, primarily
attributable to the inclusion of National Penn results in the
earlier quarter, and lower merger-related and restructuring
charges. These decreases were partially offset by higher regulatory
charges, software expense and occupancy and equipment expense, as
well as the $50 million charitable
contribution in the current quarter. The segment allocated
$15 million more of expense to other
operating segments compared to the prior quarter.
Third Quarter 2016 compared to Third Quarter 2015
Community Banking
Community Banking net income was $338
million for the third quarter of 2016, an increase of
$78 million compared to the earlier
quarter. Segment net interest income and noninterest income
increased $200 million and
$14 million, respectively, primarily
driven by acquisition activity and higher funding spreads on
deposits. Noninterest expense increased $67
million, driven by higher personnel and occupancy and
equipment expense primarily attributable to the acquisitions.
Allocated corporate expense increased by $33
million compared to the earlier quarter, primarily driven by
acquisitions.
Residential Mortgage Banking
Residential Mortgage Banking net income was $117 million for the third quarter of 2016, an
increase of $59 million compared to
the earlier quarter. Noninterest income increased $23 million driven by higher net mortgage
servicing rights valuation adjustments. Noninterest expense
decreased $75 million driven by the
previously discussed settlement of certain FHA-insured loan matters
and lower professional services expense, partially offset by higher
personnel expense.
Dealer Financial Services
Dealer Financial Services net income was $40 million for the third quarter of 2016, a
decrease of $2 million compared to
the earlier quarter. Segment net interest income was up slightly,
primarily due to the addition of Susquehanna's consumer auto
leasing business as well as growth in the Regional Acceptance loan
portfolio. The allocated provision for credit losses increased
$9 million, driven by loan growth and
higher net charge-offs in the Regional Acceptance loan
portfolio.
Specialized Lending
Specialized Lending net income was $64
million for the third quarter of 2016, an increase of
$3 million compared to the earlier
quarter. Segment net interest income increased $11 million, primarily attributable to growth in
Susquehanna's small business equipment finance and small ticket
dealer-based finance portfolios, partially offset by lower interest
rates on new loans. Noninterest income increased $25 million as the result of higher commercial
mortgage banking income, gains on finance leases and operating
lease income. The allocated provision for credit losses was up
$15 million, primarily due to
mortgage warehouse loan growth and higher net charge-offs in the
commercial finance, small business equipment finance and small
ticket dealer-based finance portfolios. Noninterest expense was up
$11 million, primarily due to higher
personnel expense, IT professional services expense and
depreciation of property held under operating leases related to
growth in Equipment Finance's lease portfolio.
Insurance Holdings
Insurance Holdings net income was $23
million for the third quarter of 2016, an increase of
$2 million compared to the earlier
quarter. Noninterest income increased $59
million, which primarily reflects the addition of Swett and
Crawford and higher life insurance and employee benefit
commissions. Noninterest expense increased $48 million, primarily due to the Swett &
Crawford acquisition that led to higher personnel expense and
higher occupancy and equipment expense.
Financial Services
Financial Services net income was $83
million for the third quarter of 2016, essentially flat
compared to the earlier quarter. Segment net interest income
increased $26 million, primarily
driven by loan and deposit growth and higher funding spreads on
deposits for Corporate Banking and BB&T Wealth. The allocated
provision for credit losses increased $10
million, driven by higher net charge-offs and risk grade mix
changes. Noninterest expense increased $15
million compared to the earlier quarter, primarily due to
higher personnel expense and restructuring charges.
Other, Treasury & Corporate
Other, Treasury & Corporate generated a net loss of
$23 million in the third quarter of
2016, compared to net income of $9
million in the earlier quarter. Segment net interest income
decreased $100 million, primarily due
to higher funding credits on deposits allocated to other segments
and the inclusion of Susquehanna results in the earlier quarter.
Noninterest income increased $54
million, primarily due to improved FDIC loss share income
and an increase in income related to assets for certain
post-employment benefits.
The allocated provision for credit losses increased $19 million, primarily attributable to an
increase in the reserve for unfunded lending commitments driven by
changes related to the mix of lines of credit, letters of credit
and bankers' acceptances.
Noninterest expense increased $41
million due to charitable contributions, partially offset by
lower personnel expense and merger-related and restructuring
charges. The segment allocated $52
million more of expense to other operating segments compared
to the earlier quarter.
CAPITAL RATIOS
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
2Q16
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
Risk-based:
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier
1
|
|
10.1
|
%
|
|
10.0
|
%
|
|
10.4
|
%
|
|
10.3
|
%
|
|
10.1
|
%
|
Tier 1
|
|
11.8
|
|
|
11.7
|
|
|
12.2
|
|
|
11.8
|
|
|
11.7
|
|
Total
|
|
14.0
|
|
|
13.9
|
|
|
14.6
|
|
|
14.3
|
|
|
14.2
|
|
Leverage
|
|
9.8
|
|
|
9.6
|
|
|
10.1
|
|
|
9.8
|
|
|
9.9
|
|
(1)
|
Current quarter
regulatory capital ratios are preliminary.
|
Capital levels remained strong at September 30, 2016.
BB&T declared total common dividends of $0.30 per share during the third quarter of 2016,
which represents a $0.02 increase and
resulted in a dividend payout ratio of 40.5%. Capital ratios
increased during the third quarter primarily due to earnings in
excess of dividends. BB&T also completed $160 million of share repurchases during the
third quarter.
BB&T's estimated common equity Tier 1 ratio under Basel III,
on a fully-phased in basis, was approximately 9.9% at
September 30, 2016 and 9.8% at June 30, 2016.
BB&T's liquidity coverage ratio was approximately 122% at
September 30, 2016, compared to the regulatory minimum of 90%.
In addition, the liquid asset buffer, which is defined as high
quality unencumbered liquid assets as a percentage of total assets,
was 13.6% at September 30, 2016.
ASSET QUALITY
(1)
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
2Q16
|
|
1Q16
|
|
4Q15
|
|
3Q15
|
Total nonperforming
assets
|
|
$
|
843
|
|
|
$
|
886
|
|
|
$
|
903
|
|
|
$
|
712
|
|
|
$
|
744
|
|
Total performing
TDRs
|
|
1,072
|
|
|
1,003
|
|
|
981
|
|
|
982
|
|
|
976
|
|
Total loans 90 days
past due and still accruing
|
|
592
|
|
|
610
|
|
|
609
|
|
|
677
|
|
|
734
|
|
Total loans 30-89
days past due
|
|
980
|
|
|
914
|
|
|
825
|
|
|
1,031
|
|
|
909
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
and leases as a percentage of loans and leases held for investment
(%)
|
|
0.53
|
|
|
0.56
|
|
|
0.58
|
|
|
0.42
|
|
|
0.43
|
|
Nonperforming assets
as a percentage of total assets (%)
|
|
0.38
|
|
|
0.40
|
|
|
0.42
|
|
|
0.34
|
|
|
0.36
|
|
Allowance for loan
and lease losses as a percentage of loans and leases held for
investment (%)
|
|
1.06
|
|
|
1.06
|
|
|
1.10
|
|
|
1.07
|
|
|
1.08
|
|
Net charge-offs as a
percentage of average loans and leases (%) annualized
|
|
0.37
|
|
|
0.28
|
|
|
0.46
|
|
|
0.38
|
|
|
0.32
|
|
Ratio of allowance
for loan and lease losses to net charge-offs (times)
annualized
|
|
2.91
|
|
|
3.88
|
|
|
2.40
|
|
|
2.83
|
|
|
3.44
|
|
Ratio of allowance
for loan and lease losses to nonperforming loans and leases held
for investment (times)
|
|
2.00
|
|
|
1.90
|
|
|
1.89
|
|
|
2.53
|
|
|
2.49
|
|
(1)
|
Includes amounts
related to government guaranteed GNMA mortgage loans that BB&T
has the right but not the obligation to repurchase. See footnotes
on the Credit Quality pages of the Quarterly Performance Summary
for additional information.
|
Nonperforming assets totaled $843
million at September 30, 2016, down $43 million compared to June 30, 2016. The
decrease was driven by a $39 million
decline in nonperforming commercial and industrial loans, primarily
due to a $25 million nonperforming
loan that was transferred to held for sale and subsequently sold on
October 5th. At September 30,
2016, nonperforming loans and leases represented 0.53% of loans and
leases held for investment, compared to 0.56% at June 30,
2016.
Performing TDRs increased $69
million during the third quarter, driven by a $45 million increase in government guaranteed
residential mortgage loans. This increase was primarily the result
of the change in the strategy of repurchasing loans from GNMA pools
that BB&T has the right but not the obligation to repurchase
that commenced in the second quarter.
Loans 30-89 days past due and still accruing totaled
$980 million at September 30,
2016, up $66 million compared to the
prior quarter. This increase was primarily driven by seasonality in
retail portfolios.
Loans 90 days or more past due and still accruing totaled
$592 million at September 30,
2016, down $18 million compared to
the prior quarter, as a $30 million
decrease in past due loans acquired from the FDIC and PCI loans was
partially offset by an increase in past due residential mortgage
loans. The ratio of loans 90 days or more past due and still
accruing as a percentage of loans and leases was 0.42% at
September 30, 2016, compared to 0.43% for the prior quarter.
Excluding government guaranteed and acquired from FDIC and PCI
loans, the ratio of loans 90 days or more past due and still
accruing as a percentage of loans and leases was 0.06% at
September 30, 2016, an increase of one basis point compared to
the prior quarter.
Net charge-offs during the third quarter totaled $130 million, up $33
million compared to the prior quarter, primarily due to
seasonal increases in the retail lending portfolio. As a percentage
of average loans and leases, annualized net charge-offs were 0.37%,
compared to 0.28% in the prior quarter.
The allowance for loan and lease losses, excluding the allowance
for loans acquired from the FDIC and PCI loans, was $1.4 billion, up $6
million compared to the prior quarter. As of
September 30, 2016, the total allowance for loan and lease
losses was 1.06% of loans and leases held for investment, flat
compared to June 30, 2016, which includes the recent shared
national credit review.
The allowance for loan and lease losses was 2.00 times
nonperforming loans and leases held for investment, compared to
1.90 times at June 30, 2016. At September 30, 2016, the
allowance for loan and lease losses was 2.91 times annualized net
charge-offs, compared to 3.88 times at June 30, 2016, which
reflects the seasonal increase in charge-offs noted above.
Earnings presentation and Quarterly Performance
Summary
To listen to BB&T's live third quarter 2016 earnings
conference call at 8 a.m. (ET) today,
please call 1-888-632-5009 and enter the participant code 5184622.
A presentation will be used during the earnings conference call and
is available on our website at
https://bbt.investorroom.com/webcasts-and-presentations. Replays of
the conference call will be available for 30 days by dialing
888-203-1112 (access code 4313363).
The presentation, including an appendix reconciling non-GAAP
disclosures, is available at
https://bbt.investorroom.com/webcasts-and-presentations.
BB&T's third quarter 2016 Quarterly Performance Summary,
which contains detailed financial schedules, is available on
BB&T's website at www.BBT.com.
About BB&T
As of September 30, 2016, BB&T is one of the largest
financial services holding companies in the U.S. with $222.6 billion in assets and market
capitalization of $30.6 billion.
Based in Winston-Salem, N.C., the
company operates 2,220 financial centers in 15 states and
Washington, D.C., and offers a
full range of consumer and commercial banking, securities
brokerage, asset management, mortgage and insurance products and
services. A Fortune 500 company, BB&T is consistently
recognized for outstanding client satisfaction by the U.S. Small
Business Administration, Greenwich Associates and others. BB&T
also has been named one of the World's Strongest Banks by
Bloomberg Markets Magazine, one of the top three in the U.S.
and in the top 15 globally. More information about BB&T and its
full line of products and services is available at www.BBT.com.
Capital ratios are preliminary.
This news release contains financial information and
performance measures 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 and the efficiency of its
operations. Management believes these non-GAAP measures provide a
greater understanding of ongoing operations and enhance
comparability of results with prior periods as well as demonstrate
the effects of significant gains and charges in the current period.
The company believes that a meaningful analysis of its financial
performance requires an understanding of the factors underlying
that performance. BB&T's management believes investors may use
these non-GAAP financial measures to analyze financial performance
without the impact of unusual items that may obscure trends in the
company's underlying performance. These disclosures should not be
viewed as a substitute for financial measures determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. Below is a listing of the types of non-GAAP measures
used in this news release:
- Tangible common equity and related ratios are non-GAAP
measures that exclude the impact of intangible assets and their
related amortization. These measures are useful for evaluating the
performance of a business consistently, whether acquired or
developed internally. The return on average risk-weighted assets is
a non-GAAP measure. BB&T's management uses these measures to
assess the quality of capital and returns relative to balance sheet
risk and believes investors may find them useful in their analysis
of the Corporation.
- The ratio of loans greater than 90 days and still accruing
interest as a percentage of loans held for investment has been
adjusted to remove the impact of loans that were covered by FDIC
loss sharing agreements and purchased credit impaired ("PCI") loans
as well as government guaranteed loans. Management believes their
inclusion may result in distortion of these ratios such that they
might not be comparable to other periods presented or to other
portfolios not impacted by purchase accounting or reflective of
asset collectibility.
- The adjusted efficiency ratio is non-GAAP in that it
excludes securities gains (losses), amortization of intangible
assets, merger-related and restructuring charges and other selected
items. BB&T's management uses this measure in their analysis of
the Corporation's performance. BB&T's management believes this
measure provides a greater understanding of ongoing operations and
enhances comparability of results with prior periods, as well as
demonstrating the effects of significant gains and
charges.
- Core net interest margin is a non-GAAP measure that adjusts
net interest margin to exclude the impact of interest income and
funding costs associated with loans and securities acquired in the
Colonial acquisition and PCI loans acquired from Susquehanna and
National Penn. Core net interest margin is also adjusted to remove
the purchase accounting marks and related amortization for non-PCI
loans, deposits and long-term debt acquired from Susquehanna and
National Penn. BB&T's management believes the adjustments to
the calculation of net interest margin for certain assets and
deposits acquired provide investors with useful information related
to the performance of BB&T's earning assets.
A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in BB&T's Third
Quarter 2016 Quarterly Performance Summary, which is available on
BB&T's website at www.BBT.com.
This news release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, regarding the financial condition, results of operations,
business plans and the future performance of BB&T.
Forward-looking statements are not based on historical facts but
instead represent management's expectations and assumptions
regarding BB&T's business, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. BB&T's
actual results may differ materially from those contemplated by the
forward-looking statements. Words such as "anticipates,"
"believes," "estimates," "expects," "forecasts," "intends,"
"plans," "projects," "may," "will," "should," "could," and other
similar expressions are intended to identify these forward-looking
statements. Such statements are subject to factors that could cause
actual results to differ materially from anticipated results. While
there is no assurance any list of risks and uncertainties or risk
factors is complete, important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the following, without limitation:
- 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 and/or a
reduced demand for credit, insurance or other services;
- disruptions to the national or global financial markets,
including the impact of a downgrade of U.S. government obligations
by one of the credit ratings agencies and the adverse effects of
recessionary conditions or market disruptions in Europe, China
or other global markets;
- changes in the interest rate environment, including interest
rate changes made by the Federal Reserve, and cash flow
reassessments may reduce NIM and/or the volumes and values of loans
made or held as well as the value of other financial assets
held;
- competitive pressures among depository and other financial
institutions may increase significantly;
- legislative, regulatory or accounting changes, including
changes resulting from the adoption and implementation of the
Dodd-Frank Act, may adversely affect the businesses in which
BB&T is engaged;
- local, state or federal taxing authorities may take tax
positions that are adverse to BB&T;
- a reduction may occur in BB&T's credit ratings;
- adverse changes may occur in the securities
markets;
- competitors of BB&T may have greater financial resources
or develop products that enable them to compete more successfully
than BB&T and may be subject to different regulatory standards
than BB&T;
- cyber-security risks, including "denial of service,"
"hacking" and "identity theft," could adversely affect our business
and financial performance or our reputation, and we could be liable
for financial losses incurred by third parties due to breaches of
data shared between financial institutions;
- natural or other disasters, including acts of terrorism,
could have an adverse effect on BB&T in that such events could
materially disrupt BB&T's operations or the ability or
willingness of customers to access the services BB&T
offers;
- costs related to the integration of the businesses of
BB&T and its merger partners may be greater than
expected;
- failure to execute on strategic or operational plans,
including the ability to successfully complete and/or integrate
mergers and acquisitions or fully achieve expected cost savings or
revenue growth associated with mergers and acquisitions within the
expected time frames could adversely impact financial condition and
results of operations;
- significant litigation could have a material adverse effect
on BB&T;
- unfavorable resolution of legal proceedings or other claims
and regulatory and other governmental investigations or other
inquiries could result in negative publicity, protests, fines,
penalties, restrictions on BB&T's operations or ability to
expand its business and other negative consequences, all of which
could cause reputational damage and adversely impact BB&T's
financial conditions and results of operations;
- deposit attrition, customer loss and/or revenue loss
following completed mergers/acquisitions may exceed
expectations;
- higher-than-expected costs related to information technology
infrastructure or a failure to successfully implement future system
enhancements could adversely impact BB&T's financial condition
and results of operations and could result in significant
additional costs to BB&T; and
- widespread system outages, caused by the failure of critical
internal systems or critical services provided by third parties,
could adversely impact BB&T's financial condition and results
of operations.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
report. Actual results may differ materially from those expressed
in or implied by any forward-looking statement. Except to the
extent required by applicable law or regulation, BB&T
undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bbt-reports-record-earnings-of-599-million-22-increase-over-third-quarter-of-2015-300347122.html
SOURCE BB&T Corporation