By Michael Calia and Andrew R. Johnson
BB&T Corp. said its first-quarter profit rose to $501
million from $210 million a year earlier when a tax-related
adjustment hurt results.
The Winston-Salem, N.C.-based bank's per-share earnings rose to
69 cents from 29 cents a year earlier, slightly missing analysts'
estimates.
Revenue fell 6.7% to $2.3 billion, due in part to a decline in
mortgage-banking income.
Analysts surveyed by Thomson Reuters had expected 70 cents a
share in earnings and $2.31 billion in revenue.
The company also said it would recommend raising its quarterly
dividend to 24 cents a share from 23 cents a share.
Regional banks such as BB&T depend more on lending than
bigger firms. They have struggled somewhat amid a tepid economic
recovery and lower interest rates. BB&T, however, said in
January that it expected economic improvement to fuel loan growth
this year.
The bank's loan portfolio increased 1.7% from a year earlier to
$115.1 billion.
"Commercial loan growth was strong, particularly commercial real
estate lending for income-producing properties," said Chairman and
Chief Executive Officer Kelly S. King.
Net interest income fell 5.2% to $1.38 billion.
BB&T's allowance for loan-and-lease losses fell to $1.54
billion in the quarter from $1.62 billion in the prior quarter and
$1.84 billion a year earlier. The company's provision for credit
losses fell 80% to $60 million as credit quality improved.
Like other banks, BB&T's mortgage results were hurt by
declining activity. The company said net income in its residential
mortgage banking unit declined 54% to $63 million.
BB&T actively acquired banks in the years leading up to the
financial crisis, and Mr. King has said he expects the company will
be active on the M&A front again in the future.
In December, BB&T announced it was acquiring 21 bank
branches in Texas from Citigroup Inc. to build out its expansion in
the state.
BB&T's shares were up 0.2% at $39.40 in premarket trading on
Thursday.
Write to Michael Calia at michael.calia@wsj.com
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