WINSTON-SALEM, N.C., Jan. 22 /PRNewswire-FirstCall/ -- BB&T
Corporation (NYSE:BBT) reported today earnings for the fourth
quarter and the full year 2008. For the fourth quarter, net income
totaled $305 million and net income available to common
shareholders totaled $284 million, or $.51 per diluted common
share, compared with $411 million, or $.75 per diluted common
share, earned during the fourth quarter of 2007. "The year 2008 was
very challenging and credit deterioration remains a significant
concern; however, BB&T's performance ranks among the top
performers in the financial services industry," said Chief
Executive Officer Kelly S. King. "Even though the cost of the
current credit cycle has depressed earnings, our overall results
reflect a number of positive developments and demonstrate that
BB&T is gaining market share and growing. We are implementing
initial plans to deploy the capital invested in BB&T in
connection with the U.S. Treasury's Capital Purchase Program, which
include specific lending programs where we are actively seeking new
borrowers. In addition, our pretax pre-provision earnings increased
10.6% in the fourth quarter compared to the same period last year
and we generated positive operating leverage for the year. These
indicators demonstrate solid underlying performance and consistent
earnings power. "Other positives from the quarter include an
improvement in the net interest margin compared to the third
quarter, solid production from lending and deposit gathering
efforts as we continue to benefit from a flight to quality in our
markets, healthy growth in many of our fee income producing
businesses, industry-leading capital levels, and an improvement in
efficiency." Operating earnings available to common shareholders
for the fourth quarter of 2008 totaled $243 million, or $.44 per
diluted common share, compared with $415 million, or $.75 per
diluted common share for the fourth quarter 2007. The 2008 results
exclude $66 million in after-tax securities gains, $39 million in
after-tax other than temporary impairment charges, $17 million in
net after-tax gains related to a settlement with the Internal
Revenue Service in connection with leveraged lease transactions and
$3 million in net after- tax merger-related and restructuring
charges. Cash basis performance measures exclude the unamortized
balances of intangibles from assets and shareholders' equity, and
exclude the amortization of intangibles, the net amortization of
purchase accounting mark-to-market adjustments, merger-related and
restructuring charges or credits and nonrecurring items from
earnings. Cash basis basic earnings per common share were $.47 for
the fourth quarter compared to $.79 earned in the fourth quarter
last year. Cash basis operating results for the fourth quarter of
2008 produced annualized returns on average tangible assets and
average common tangible shareholders' equity of .81% and 13.45%,
respectively, compared to prior year returns of 1.37% and 24.03%,
respectively. GAAP and operating results for the fourth quarter of
2008 include a $528 million provision for credit losses, which
exceeds net charge-offs by $214 million. The provision resulted in
an increase in the allowance for loan and lease losses as a
percentage of loans and leases held for investment to 1.62% at Dec.
31, 2008 compared to 1.45% at Sept. 30, 2008. For the full year
2008, BB&T's net income available to common shareholders was
$1.50 billion compared to $1.73 billion earned in 2007, a decrease
of 13.6%. Diluted earnings per common share for 2008 totaled $2.71,
a decrease of 13.7% compared to $3.14 earned in 2007. Excluding net
after-tax merger- related and restructuring charges or credits and
nonrecurring items from 2008 and 2007, operating results for 2008
totaled $1.38 billion, a decrease of 21.3% compared to $1.75
billion earned in 2007. Diluted operating earnings per common share
totaled $2.49 in 2008, a decrease of 21.5% compared to $3.17 earned
in 2007. Nonperforming Assets and Credit Losses Increase "As
anticipated, levels of nonperforming assets and credit losses
increased further during the quarter as a result of the distressed
residential real estate markets and economic recession," said King.
"These credit issues required an increase in the allowance for loan
and lease losses which reduced fourth quarter earnings. While it is
difficult to know the full extent of the economic downturn and the
resulting impact on BB&T's credit quality, we expect further
increases in nonperforming assets and net charge-offs into 2009."
Nonperforming assets, as a percentage of total assets, increased to
1.34% at Dec. 31, 2008, compared to 1.20% at Sept. 30, 2008.
Annualized net charge- offs were 1.29% of average loans and leases
for the fourth quarter of 2008, up from 1.00% in the third quarter.
Excluding losses incurred by BB&T's specialized lending
subsidiaries, annualized net charge-offs for the current quarter
were 1.06% of average loans and leases compared to .82% in the
third quarter of 2008. The provision for credit losses totaled $528
million in the fourth quarter of 2008, an increase of $344 million
compared to the same quarter last year, and exceeded net
charge-offs by $214 million. The higher provision increased the
allowance for loan and lease losses as a percentage of loans held
for investment to 1.62% at Dec. 31, 2008, compared to 1.45% at
Sept. 30, 2008, and 1.10% at Dec. 31, 2007. The increases in net
charge-offs, nonperforming assets and the provision for credit
losses were driven by continued deterioration in residential real
estate markets and the overall economy with the largest
concentration of credit issues occurring in Georgia, Florida and
metro Washington, D.C. BB&T Begins Efforts to Effectively
Deploy Treasury Capital Investment During the fourth quarter of
2008, the U.S. Treasury invested $3.1 billion in BB&T through
the Capital Purchase Program ("CPP"). In compliance with the terms
and conditions of the program, BB&T has incrementally increased
loans and investments, as evidenced by significant balance sheet
growth, which totaled $10.8 billion excluding trade date accounting
for investments at Dec. 31, 2008. The additional lending programs
include efforts in corporate banking, consumer lending, insurance
premium finance and equipment leasing. Loans and leases increased
$2.0 billion during the fourth quarter and the pace of loan growth
accelerated late in the quarter. BB&T will continue to provide
incremental lending to qualified borrowers. Capital Levels Grow
Significantly in 4th Quarter BB&T's regulatory capital levels
increased significantly at Dec. 31, 2008. BB&T's leverage ratio
was 9.7%, up from 7.6% last quarter. In addition, BB&T's Tier 1
risk-based capital and total risk-based capital ratios were 12.0%
and 17.1%, respectively, up from 9.4% and 14.4%, respectively, at
Sept. 30, 2008. These increases reflect the $3.1 billion of capital
invested by the U.S. Treasury in the fourth quarter of 2008.
BB&T's risk-based capital ratios are significantly higher than
an average of its peers and remain well above regulatory standards
for well-capitalized banks. During the fourth quarter, BB&T
declared a quarterly cash dividend of $.47 per share, up 2.2%
compared to the fourth quarter of 2007. BB&T has increased the
cash dividend for 37 consecutive years and has paid a dividend
every year since 1903. Strong Balance Sheet Growth Average loans
and leases totaled $97.2 billion for the fourth quarter of 2008,
reflecting an increase of $6.4 billion, or 7.1%, compared to the
fourth quarter of 2007. This increase was led by growth in average
commercial loans and leases, which increased $5.5 billion, or
12.4%; average sales finance loans, which increased $310 million,
or 5.1%; average revolving credit loans, which increased $189
million, or 12.2%; and growth in average loans originated by
BB&T's specialized lending subsidiaries, which increased $543
million, or 10.2%, compared to the fourth quarter last year. For
the full year 2008, average loans and leases were $95.2 billion, an
increase of 8.2% compared to the same period last year. Average
deposits totaled $92.0 billion for the fourth quarter of 2008, an
increase of $6.7 billion, or 7.9%, compared to the fourth quarter
of last year. The growth rate in average client deposits was 6.3%
compared to the fourth quarter of 2007 and accelerated to 8.1%, on
an annualized basis, compared to the third quarter of 2008. The
pace of deposit growth accelerated throughout the fourth quarter.
Average securities available for sale totaled $26.6 billion for the
fourth quarter of 2008, an increase of 10.9% compared to the fourth
quarter of 2007. The increase in the securities portfolio reflects
the initial deployment of the capital invested by the U.S. Treasury
in connection with the CPP. Core net interest margin improves to
3.68% BB&T's fully taxable equivalent net interest income
totaled $1.2 billion for the fourth quarter on an operating basis,
an increase of 14.6% compared to the same quarter of 2007. The
operating net interest margin was 3.68% for the current quarter, up
2 basis points from 3.66% for the third quarter of 2008 and up 22
basis points from 3.46% in the fourth quarter last year. On a GAAP
basis, the net interest margin was reduced by BB&T's settlement
with the Internal Revenue Service related to leveraged lease
transactions. The settlement increased fourth quarter net income by
$17 million as a result of an $84 million benefit to the tax
provision; however, it reduced net interest income by $67 million
and reduced the margin by 21 basis points. BB&T's Fee Based
Businesses Produce Solid Quarterly Growth Rates Noninterest income,
excluding securities gains and losses, increased $49 million, or
6.8%, during the fourth quarter of 2008 compared to 2007. These
increases were composed of higher revenues from BB&T's
insurance operations, which increased $26 million, or 11.8%, and
record revenues from BB&T's investment banking and brokerage
operations, which increased $11 million, or 12.9%, compared to the
fourth quarter last year. Revenue from both service charges on
deposit accounts and other nondeposit fees and commissions
increased slightly as compared to the fourth quarter of 2007, while
trust and investment advisory revenues declined $10 million. The
decline in trust and investment advisory revenues was due to lower
asset values, which are the basis for these revenues. These
increases also include a solid performance from mortgage banking
operations during the quarter. Revenues from mortgage banking
operations totaled $76 million for the fourth quarter of 2008, an
increase of 181.5% compared to the fourth quarter of 2007. This
increase reflects the adoption of fair value accounting standards
and the net change in the mortgage servicing rights valuation. Fair
value accounting increased mortgage banking income by $11 million,
but was neutral to earnings because it also resulted in an $11
million increase in personnel expense during the quarter. The net
change in the valuation of mortgage servicing rights resulted in an
increase of $31 million compared to the fourth quarter of 2007. The
increase was the result of the mortgage servicing rights hedge
outperforming the decline in the value of the asset. Excluding the
impact of these items, mortgage banking income increased $7
million, or 21.9%, compared to the same period last year. The
growth in mortgage banking income includes strong production
revenues from residential mortgage banking operations. Other
noninterest income totaled $7 million for the fourth quarter of
2008, down substantially compared to $44 million earned in the same
quarter last year. This decrease primarily resulted from $25
million in losses on trading, hedging and other market-related
activities as well as reduced earnings of $10 million from
investments in low income housing partnerships that generate tax
benefits. BB&T Continues to Expand Through Acquisitions On Dec.
12, 2008, BB&T announced the acquisition of $506 million in
deposits of Haven Trust Bank of Duluth, Ga., through an agreement
with the Federal Deposit Insurance Corporation (FDIC). In December,
Grandbridge Real Estate Capital, LLC, a commercial mortgage banking
subsidiary of BB&T, announced the acquisition of Live Oak
Capital Ltd. Live Oak Capital specializes in debt and equity
placement and loan servicing for the commercial real estate
industry. In addition, BB&T Insurance Services continued to
expand with the acquisitions of J. Rolfe Davis Insurance Agency
Inc. of Maitland, Fla., and TAPCO Underwriters Inc. of Burlington,
N.C. These acquisitions were completed on Dec. 31, 2008. At Dec.
31, 2008, BB&T had $152.0 billion in assets and operated 1,511
banking offices in the Carolinas, Virginia, West Virginia,
Kentucky, Georgia, Maryland, Tennessee, Florida, Alabama, Indiana
and Washington, D.C. BB&T's common stock is traded on the New
York Stock Exchange under the trading symbol BBT. For additional
information about BB&T's financial performance, company news,
products and services, please visit our website at
http://www.bbt.com/. Earnings Webcast To hear a live webcast of
BB&T's fourth quarter 2008 earnings conference call at 11:00
a.m. (EST) today, please visit our website at http://www.bbt.com/.
Replays of the conference call will be available through our
website until Friday, Feb. 6 or by dialing 1-888-203-1112 plus
access code 6794434 until Wednesday, Jan. 28. This press release
contains financial information determined by methods other than in
accordance with accounting principles generally accepted in the
United States of America ("GAAP"). BB&T's management uses these
"non-GAAP" measures in their analysis of the Corporation's
performance. Non-GAAP measures typically adjust GAAP performance
measures to exclude the effects of charges, expenses and gains
related to the consummation of mergers and acquisitions, and costs
related to the integration of merged entities, as well as the
amortization of intangibles and purchase accounting mark-to-market
adjustments in the case of "cash basis" performance measures. These
non-GAAP measures may also exclude other significant gains, losses
or expenses that are unusual in nature and not expected to recur.
Since these items and their impact on BB&T's performance are
difficult to predict, management believes presentations of
financial measures excluding the impact of these items provide
useful supplemental information that is important for a proper
understanding of the operating results of BB&T's core
businesses. These disclosures should not be viewed as a substitute
for operating results determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that
may be presented by other companies. This press release contains
certain forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. These statements may
address issues that involve significant risks, uncertainties,
estimates and assumptions made by management. Actual results may
differ materially from current projections. Please refer to
BB&T's filings with the Securities and Exchange Commission for
a summary of important factors that may affect BB&T's
forward-looking statements. BB&T undertakes no obligation to
revise these statements following the date of this press release.
QUARTERLY PERFORMANCE SUMMARY BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data) For the Three Months
Percent Ended Increase 12/31/08 12/31/07 (Decrease) OPERATING
EARNINGS STATEMENTS (1) Interest income - taxable equivalent $1,824
$2,037 (10.5)% Interest expense 669 1,029 (35.0) Net interest
income - taxable equivalent 1,155 1,008 14.6 Less: Taxable
equivalent adjustment 23 17 35.3 Net interest income 1,132 991 14.2
Provision for credit losses 528 184 187.0 Net interest income after
provision for credit losses 604 807 (25.2) Noninterest income 766
718 6.7 Noninterest expense 1,010 925 9.2 Operating earnings before
income taxes 360 600 (40.0) Provision for income taxes 96 185
(48.1) Operating earnings (1) 264 415 (36.4) Dividends and
accretion on preferred stock 21 - 100.0 Operating earnings
available to common shareholders (1) $243 $415 (41.4)% PER COMMON
SHARE DATA BASED ON OPERATING EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS (1) Basic Earnings $.44 $.76 (42.1)% Diluted Earnings
.44 .75 (41.3) Weighted average common shares (in thousands) -
Basic 552,732 547,795 Diluted 556,746 551,078 Dividends paid per
common share $.47 $.46 2.2 % PERFORMANCE RATIOS BASED ON OPERATING
EARNINGS (1) Return on average assets .74 % 1.26 % Return on
average common equity (2) 7.26 13.00 Net yield on earning assets
(taxable equivalent) 3.68 3.46 Noninterest income as a percentage
of total income (taxable equivalent) (3) 39.0 41.7 Efficiency ratio
(taxable equivalent) (3) 51.9 52.8 CASH BASIS PERFORMANCE BASED ON
OPERATING EARNINGS (1)(4) Cash basis operating earnings available
to common shareholders $257 $432 (40.5)% Basic earnings per common
share .47 .79 (40.5) Diluted earnings per common share .46 .78
(41.0) Return on average tangible assets .81 % 1.37 % Return on
average common tangible equity (2) 13.45 24.03 Efficiency ratio
(taxable equivalent) (3) 50.6 51.3 QUARTERLY PERFORMANCE SUMMARY
BB&T Corporation (NYSE:BBT) (Dollars in millions, except per
share data) For the Three Months Percent Ended Increase 12/31/08
12/31/07 (Decrease) INCOME STATEMENTS Interest Income $1,729 $2,012
(14.1)% Interest Expense 664 1,021 (35.0) Net interest income 1,065
991 7.5 Provision for credit losses 528 184 187.0 Net interest
income after provision for credit losses 537 807 (33.5) Noninterest
income 807 718 12.4 Noninterest expense 1,014 942 7.6 Income before
income taxes 330 583 (43.4) Provision for income taxes 25 172
(85.5) Net income 305 411 (25.8) Dividends and accretion on
preferred stock 21 - 100.0 Net income available to common
shareholders $284 $411 (30.9)% PER COMMON SHARE DATA Basic earnings
$.51 $.75 (32.0)% Diluted earnings .51 .75 (32.0) Weighted average
common shares (in thousands) - Basic 552,732 547,795 Diluted
556,746 551,078 PERFORMANCE RATIOS BASED ON NET INCOME Return on
average assets .86 % 1.24 % Return on average common equity (2)
8.47 12.89 Efficiency ratio (taxable equivalent) (3) 54.0 53.8
NOTES: Applicable ratios are annualized. (1) Operating earnings
exclude the effect of merger-related and restructuring charges or
credits and nonrecurring items. These amounts totaled $(41 million)
and $4 million, net of tax, in the fourth quarters of 2008 and
2007, respectively. See Reconciliation Tables included herein. (2)
Based on earnings available to common shareholders. (3) Excludes
securities gains (losses), foreclosed property expense, increases
or decreases in the valuation of mortgage servicing rights, and
gains or losses on mortgage servicing rights-related derivatives.
Cash basis and operating ratios also exclude merger-related and
restructuring charges or credits and nonrecurring items, where
applicable. See Reconciliation Tables included herein. (4) Cash
basis performance information excludes the effect on earnings of
amortization expense applicable to intangible assets, the
unamortized balances of intangibles from assets and equity, net of
deferred taxes, and the net amortization of purchase accounting
mark-to-market adjustments. See Reconciliation Tables included
herein. QUARTERLY PERFORMANCE SUMMARY BB&T Corporation
(NYSE:BBT) (Dollars in millions, except per share data) For the
Twelve Months Percent Ended Increase 12/31/08 12/31/07 (Decrease)
OPERATING EARNINGS STATEMENTS (1) Interest income - taxable
equivalent $7,380 $7,977 (7.5)% Interest expense 2,992 4,029 (25.7)
Net interest income - taxable equivalent 4,388 3,948 11.1 Less:
Taxable equivalent adjustment 83 68 22.1 Net interest income 4,305
3,880 11.0 Provision for credit losses 1,445 448 222.5 Net interest
income after provision for credit losses 2,860 3,432 (16.7)
Noninterest income 3,060 2,774 10.3 Noninterest expense 3,952 3,601
9.7 Operating earnings before income taxes 1,968 2,605 (24.5)
Provision for income taxes 571 856 (33.3) Operating earnings (1)
1,397 1,749 (20.1) Dividends and accretion on preferred stock 21 -
100.0 Operating earnings available to common shareholders (1)
$1,376 $1,749 (21.3)% PER COMMON SHARE DATA BASED ON OPERATING
EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) Basic Earnings $2.51
$3.20 (21.6)% Diluted Earnings 2.49 3.17 (21.5) Weighted average
common shares (in thousands) - Basic 548,847 547,184 Diluted
552,498 551,755 Dividends paid per common share $1.86 $1.76 5.7 %
PERFORMANCE RATIOS BASED ON OPERATING EARNINGS (1) Return on
average assets 1.02 % 1.38 % Return on average common equity (2)
10.51 14.37 Net yield on earning assets (taxable equivalent) 3.63
3.52 Noninterest income as a percentage of total income (taxable
equivalent) (3) 40.3 41.3 Efficiency ratio (taxable equivalent) (3)
52.6 53.1 CASH BASIS PERFORMANCE BASED ON OPERATING EARNINGS (1)(4)
Cash basis operating earnings available to common shareholders
$1,438 $1,816 (20.8)% Basic earnings per common share 2.62 3.32
(21.1) Diluted earnings per common share 2.60 3.29 (21.0) Return on
average tangible assets 1.11 % 1.50 % Return on average common
tangible equity (2) 19.30 26.82 Efficiency ratio (taxable
equivalent) (3) 51.3 51.6 QUARTERLY PERFORMANCE SUMMARY BB&T
Corporation (NYSE:BBT) (Dollars in millions, except per share data)
For the Twelve Months Percent Ended Increase 12/31/08 12/31/07
(Decrease) INCOME STATEMENTS Interest Income $7,207 $7,894 (8.7)%
Interest Expense 2,969 4,014 (26.0) Net interest income 4,238 3,880
9.2 Provision for credit losses 1,445 448 222.5 Net interest income
after provision for credit losses 2,793 3,432 (18.6) Noninterest
income 3,197 2,774 15.2 Noninterest expense 3,921 3,636 7.8 Income
before income taxes 2,069 2,570 (19.5) Provision for income taxes
550 836 (34.2) Net income 1,519 1,734 (12.4) Dividends and
accretion on preferred stock 21 - 100.0 Net income available to
common shareholders $1,498 $1,734 (13.6)% PER COMMON SHARE DATA
Basic earnings $2.73 $3.17 (13.9)% Diluted earnings 2.71 3.14
(13.7) Weighted average common shares (in thousands) - Basic
548,847 547,184 Diluted 552,498 551,755 PERFORMANCE RATIOS BASED ON
NET INCOME Return on average assets 1.11 % 1.37 % Return on average
common equity (2) 11.44 14.25 Efficiency ratio (taxable equivalent)
(3) 52.1 53.7 NOTES: Applicable ratios are annualized. (1)
Operating earnings exclude the effect of merger-related and
restructuring charges or credits and nonrecurring items. These
amounts totaled $(122 million) and $15 million, net of tax, in 2008
and 2007, respectively. See Reconciliation Tables included herein.
(2) Based on earnings available to common shareholders. (3)
Excludes securities gains (losses), foreclosed property expense,
increases or decreases in the valuation of mortgage servicing
rights, and gains or losses on mortgage servicing rights-related
derivatives. Cash basis and operating ratios also exclude
merger-related and restructuring charges or credits and
nonrecurring items, where applicable. See Reconciliation Tables
included herein. (4) Cash basis performance information excludes
the effect on earnings of amortization expense applicable to
intangible assets, the unamortized balances of intangibles from
assets and equity, net of deferred taxes, and the net amortization
of purchase accounting mark- to-market adjustments. See
Reconciliation Tables included herein. QUARTERLY PERFORMANCE
SUMMARY BB&T Corporation (NYSE:BBT) (Dollars in millions) As of
/ For the Percent Twelve Months Ended Increase 12/31/08 12/31/07
(Decrease) CONSOLIDATED BALANCE SHEETS End of period balances Cash
and due from banks $1,687 $2,054 (17.9)% Interest-bearing deposits
with banks 1,082 592 82.8 Federal funds sold and other earning
assets 396 715 (44.6) Securities available for sale 32,843 22,419
46.5 Trading securities 376 1,009 (62.7) Total securities 33,219
23,428 41.8 Commercial loans and leases 50,480 44,870 12.5 Direct
retail loans 15,454 15,691 (1.5) Sales finance loans 6,354 6,021
5.5 Revolving credit loans 1,777 1,618 9.8 Mortgage loans 17,091
17,467 (2.2) Specialized lending 6,089 5,240 16.2 Total loans and
leases held for investment 97,245 90,907 7.0 Loans held for sale
1,424 779 82.8 Total loans and leases 98,669 91,686 7.6 Allowance
for loan and lease losses 1,574 1,004 56.8 Total earning assets
133,735 116,466 14.8 Premises and equipment, net 1,580 1,529 3.3
Goodwill 5,483 5,194 5.6 Core deposit and other intangibles 542 489
10.8 Other assets 10,931 7,935 37.8 Total assets 152,015 132,618
14.6 Noninterest-bearing deposits 13,649 13,059 4.5 Interest
checking 2,576 1,201 114.5 Other client deposits 39,413 35,504 11.0
Client certificates of deposit 27,937 26,972 3.6 Total client
deposits 83,575 76,736 8.9 Other interest-bearing deposits 15,038
10,030 49.9 Total deposits 98,613 86,766 13.7 Fed funds purchased,
repos and other borrowings 10,788 10,634 1.4 Long-term debt 18,032
18,693 (3.5) Total interest-bearing liabilities 113,784 103,034
10.4 Other liabilities 8,545 3,893 119.5 Total liabilities 135,978
119,986 13.3 Total shareholders' equity $16,037 $12,632 27.0 %
Average balances Securities, at amortized cost $24,497 $23,311 5.1
% Commercial loans and leases 47,559 42,475 12.0 Direct retail
loans 15,580 15,471 0.7 Sales finance loans 6,216 5,903 5.3
Revolving credit loans 1,664 1,460 14.0 Mortgage loans 18,577
17,489 6.2 Specialized lending 5,599 5,154 8.6 Total loans and
leases 95,195 87,952 8.2 Allowance for loan and lease losses 1,209
922 31.1 Other earning assets 1,160 1,042 11.3 Total earning assets
120,852 112,305 7.6 Total assets 136,881 126,420 8.3
Noninterest-bearing deposits 13,061 13,151 (0.7) Interest checking
2,376 2,297 3.4 Other client deposits 36,676 34,273 7.0 Client
certificates of deposit 26,908 26,039 3.3 Total client deposits
79,021 75,760 4.3 Other interest-bearing deposits 9,810 7,741 26.7
Total deposits 88,831 83,501 6.4 Fed funds purchased, repos and
other borrowings 10,580 9,325 13.5 Long-term debt 19,839 18,045 9.9
Total interest-bearing liabilities 106,189 97,720 8.7 Total
shareholders' equity $13,495 $12,166 10.9 % NOTES: All items
referring to average loans and leases include loans held for sale.
QUARTERLY PERFORMANCE SUMMARY BB&T Corporation (NYSE:BBT)
(Dollars in millions, except per share data) For the Three Months
Ended 12/31/08 12/31/07 RECONCILIATION TABLE Net income available
to common shareholders $284 $411 Merger-related and restructuring
items, net of tax 3 2 Other, net of tax (3) (44) 2 Operating
earnings available to common shareholders 243 415 Amortization of
intangibles, net of tax 14 16 Amortization of mark-to-market
adjustments, net of tax - 1 Cash basis operating earnings available
to common shareholders 257 432 Return on average assets .86 % 1.24
% Effect of merger-related and restructuring items, net of tax -
.01 Effect of other, net of tax (3) (.12) .01 Operating return on
average assets .74 1.26 Effect of amortization of intangibles, net
of tax (1) .07 .11 Effect of amortization of mark- to-market
adjustments, net of tax - - Cash basis operating return on average
tangible assets .81 1.37 Return on average common equity 8.47 %
12.89 % Effect of merger-related and restructuring items, net of
tax .08 .05 Effect of other, net of tax (3) (1.29) .06 Operating
return on average common equity 7.26 13.00 Effect of amortization
of intangibles, net of tax (1) 6.19 10.99 Effect of amortization of
mark- to-market adjustments, net of tax - .04 Cash basis operating
return on average common tangible equity 13.45 24.03 Efficiency
ratio (taxable equivalent) (2) 54.0 % 53.8 % Effect of
merger-related and restructuring items (.2) (.2) Effect of other
(3) (1.9) (.8) Operating efficiency ratio (2) 51.9 52.8 Effect of
amortization of intangibles (1.3) (1.5) Effect of amortization of
mark- to-market adjustments - - Cash basis operating efficiency
ratio (2) 50.6 51.3 Fee income ratio (2) 40.5 % 41.7 % Effect of
other (3) (1.5) - Operating fee income ratio (2) 39.0 41.7 Net
yield on earning assets 3.47 % 3.46 % Effect of other (3) .21 -
Operating net yield on earning assets 3.68 3.46 Basic earnings per
common share $.51 $.75 Effect of merger-related and restructuring
items, net of tax .01 .01 Effect of other, net of tax (3) (.08) -
Operating basic earnings per common share .44 .76 Effect of
amortization of intangibles, net of tax .03 .03 Effect of
amortization of mark- to-market adjustments, net of tax - - Cash
basis operating diluted earnings per common share .47 .79 Diluted
earnings per common share $.51 $.75 Effect of merger-related and
restructuring items, net of tax .01 - Effect of other, net of tax
(3) (.08) - Operating diluted earnings per common share .44 .75
Effect of amortization of intangibles, net of tax .02 .03 Effect of
amortization of mark- to-market adjustments, net of tax - - Cash
basis operating diluted earnings per common share .46 .78 NOTES:
Applicable ratios are annualized. (1) Reflects the effect of
excluding average intangible assets from average assets and average
equity, net of deferred taxes, to calculate cash basis ratios. (2)
Excludes securities gains (losses), foreclosed property expense,
increases or decreases in the valuation of mortgage servicing
rights, and gains or losses on mortgage servicing rights-related
derivatives. Operating and cash basis ratios also exclude
merger-related and restructuring charges or credits and
nonrecurring items, where applicable. (3) The fourth quarter of
2008 reflects net securities gains, other-than- temporary
impairment losses and an adjustment related to leveraged leases
collectively totaling $44 million, net of tax. The fourth quarter
of 2007 reflects a reserve charge relating to the Visa, Inc.
settlement totaling $9 million, net of tax, and a credit of $7
million to the provision for income taxes related to leveraged
leases. QUARTERLY PERFORMANCE SUMMARY BB&T Corporation
(NYSE:BBT) (Dollars in millions, except per share data) For the
Twelve Months Ended 12/31/08 12/31/07 RECONCILIATION TABLE Net
income available to common shareholders $1,498 $1,734
Merger-related and restructuring items, net of tax 10 13 Other, net
of tax (3) (132) 2 Operating earnings available to common
shareholders 1,376 1,749 Amortization of intangibles, net of tax 61
65 Amortization of mark-to-market adjustments, net of tax 1 2 Cash
basis operating earnings available to common shareholders 1,438
1,816 Return on average assets 1.11 % 1.37 % Effect of
merger-related and restructuring items, net of tax .01 .01 Effect
of other, net of tax (3) (.10) - Operating return on average assets
1.02 1.38 Effect of amortization of intangibles, net of tax (1) .09
.12 Effect of amortization of mark-to- market adjustments, net of
tax - - Cash basis operating return on average tangible assets 1.11
1.50 Return on average common equity 11.44 % 14.25 % Effect of
merger-related and restructuring items, net of tax .08 .10 Effect
of other, net of tax (3) (1.01) .02 Operating return on average
common equity 10.51 14.37 Effect of amortization of intangibles,
net of tax (1) 8.79 12.42 Effect of amortization of mark-to- market
adjustments, net of tax - .03 Cash basis operating return on
average common tangible equity 19.30 26.82 Efficiency ratio
(taxable equivalent) (2) 52.1 % 53.7 % Effect of merger-related and
restructuring items (.2) (.3) Effect of other (3) .7 (.3) Operating
efficiency ratio (2) 52.6 53.1 Effect of amortization of
intangibles (1.3) (1.5) Effect of amortization of mark-to- market
adjustments - - Cash basis operating efficiency ratio (2) 51.3 51.6
Fee income ratio (2) 41.4 % 41.3 % Effect of other (3) (1.1) -
Operating fee income ratio (2) 40.3 41.3 Net yield on earning
assets 3.58 % 3.52 % Effect of other (3) .05 - Operating net yield
on earning assets 3.63 3.52 Basic earnings per common share $2.73
$3.17 Effect of merger-related and restructuring items, net of tax
.02 .02 Effect of other, net of tax (3) (.24) .01 Operating basic
earnings per common share 2.51 3.20 Effect of amortization of
intangibles, net of tax .11 .12 Effect of amortization of mark-to-
market adjustments, net of tax - - Cash basis operating diluted
earnings per common share 2.62 3.32 Diluted earnings per common
share $2.71 $3.14 Effect of merger-related and restructuring items,
net of tax .02 .02 Effect of other, net of tax (3) (.24) .01
Operating diluted earnings per common share 2.49 3.17 Effect of
amortization of intangibles, net of tax .11 .12 Effect of
amortization of mark-to- market adjustments, net of tax - - Cash
basis operating diluted earnings per common share 2.60 3.29 NOTES:
Applicable ratios are annualized. (1) Reflects the effect of
excluding average intangible assets from average assets and average
equity, net of deferred taxes, to calculate cash basis ratios. (2)
Excludes securities gains (losses), foreclosed property expense,
increases or decreases in the valuation of mortgage servicing
rights, and gains or losses on mortgage servicing rights-related
derivatives. Operating and cash basis ratios also exclude
merger-related and restructuring charges or credits and
nonrecurring items, where applicable. (3) 2008 reflects net
securities gains, other-than-temporary impairments, gains from the
initial IPO and sale of Visa, Inc. shares, a reversal of a reserve
charge relating to the Visa, Inc. settlement, gains from the early
extinguishment of certain FHLB advances, an adjustment related to
leveraged leases and nonrecurring professional expenses
collectively totaling $132 million, net of tax. 2007 reflects a
reserve charge relating to the Visa, Inc. settlement totaling $9
million, net of tax, and a credit of $7 million to the provision
for income taxes related to leveraged leases. DATASOURCE: BB&T
Corporation CONTACT: ANALYSTS, Tamera Gjesdal, Senior Vice
President, Investor Relations, +1-336-733-3058, Daryl Bible, Sr.
Exec. Vice President, Chief Financial Officer, +1-336-733-3031,
MEDIA, Bob Denham, Senior Vice President, Corporate Communications,
+1-336-733-1475 Web site: http://www.bbt.com/ Company News On-Call:
http://www.prnewswire.com/comp/809325.html
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