BB&T reports first quarter EPS totaling $0.29; EPS reduced by $0.40 related to tax adjustment

BB&T reports first quarter EPS totaling $0.29; EPS reduced by $0.40 related to 
tax adjustment 
WINSTON-SALEM, N.C., April 18, 2013 /CNW/ - BB&T Corporation (NYSE: BBT) today 
reported first quarter 2013 net income available to common shareholders of 
$210 million, or $0.29 per diluted share. Net income available to common 
shareholders and earnings per share include the impact of a previously 
announced $281 million adjustment recorded in connection with an unresolved 
disputed tax liability. Excluding this adjustment, BB&T's first quarter net 
income available to common shareholders was $491 million, or $0.69 per diluted 
share. 
Excluding the tax adjustment, net income available to common shareholders 
increased 13.9% compared to the first quarter of 2012. Diluted EPS for the 
first quarter, excluding the tax adjustment, increased 13.1% compared to the 
same period last year. 
These earnings produced an annualized return on average assets of 0.57% and a 
return on average common shareholders' equity of 4.44%. Excluding the tax 
adjustment, the return on average assets was 1.20% and the return on average 
common equity was 10.34%. 
"We are pleased to report strong earnings for the first quarter despite a 
challenging environment for lending," said Chairman and Chief Executive 
Officer Kelly S. King. "Earnings reflect a strong performance from our 
insurance group and a record production quarter from our mortgage group. 
"In addition, we achieved excellent expense control during the quarter with 
noninterest expenses down 20% on an annualized basis compared to the fourth 
quarter last year. This decline was led by lower credit-related costs in 
foreclosed property, professional services and loan-related expenses. 
"While average loans decreased slightly during the quarter, this was largely 
the result of runoff in covered loans and residential ADC. Without this 
decline, average loans would have increased slightly. In addition, loan growth 
improved late in the quarter and we expect positive loan growth in the second 
quarter as seasonal headwinds subside. 
"Net operating revenues totaled $2.5 billion for the first quarter, an 
increase of 5% compared to the first quarter last year," said King. "This 
substantial growth was generated by stronger insurance revenues resulting from 
our Crump acquisition and 5% organic growth with improved pricing in 
commercial property and casualty premiums. 
"We continue to make excellent progress in the reduction of credit-related 
costs and nonperforming assets," said King. "Nonperforming assets declined 
8.0% compared to last quarter, including an 18% reduction in foreclosed real 
estate. Notably, net charge-offs fell to 0.98% of average loans and leases, 
below 1.00% for the first time since June 2008, and we expect further 
improvement in coming quarters. In addition, costs related to foreclosed 
properties decreased to $18 million in the first quarter, a 63% decline 
compared with last quarter, reflecting significant progress." 
First Quarter 2013 Performance Highlights 


    --  Average total loans and leases held for investment decreased
        1.4% on an annualized basis compared to the fourth quarter of
        2012
        o Average sales finance loans increased 6.0%
        o Average residential mortgage loans decreased 3.4%
        o Average loans in the other lending subsidiaries group
          decreased 2.5% due to seasonality
        o Average residential ADC loans declined 46.4%
    --  Revenues were $2.5 billion for the first quarter, down $73
        million from 4Q12
        o Net interest income was $54 million lower primarily due to
          covered loan run-off
        o Insurance income was up slightly as seasonal declines were
          offset by firming market conditions
        o Mortgage banking income was down $51 million as margins moved
          toward more normal levels which offset record originations
        o Investment banking and brokerage continued strong performance
    --  Noninterest expenses were down $74 million or 20.2% annualized
        from 4Q12
        o Personnel expense was down $6 million despite seasonal
          pressures. FTEs and headcount were down slightly
        o Foreclosed property expense totaled $18 million, down $30
          million
        o Loan-related expense was down $15 million
        o Professional services was down $10 million
    --  Average noninterest-bearing deposits increased $669 million, or
        8.5% on an annualized linked quarter basis
        o Average interest-bearing deposit costs fell to 0.36% this
          quarter compared to 0.49% in the first quarter of 2012
    --  Asset quality measures continued to improve
        o Nonperforming assets decreased $123 million, or 8.0%,
          excluding covered assets
        o Delinquent loans improved $141 million, or 11.4%, excluding
          covered loans
        o Foreclosed real estate, excluding covered assets, declined
          $19 million, or 17.8% to the lowest levels since 3Q07
        o Net charge-offs, excluding covered, totaled 0.98% of average
          loans for the quarter, down from 1.28% in the first quarter
          of 2012
    --  Capital levels remain strong
        o Tangible common equity was 7.1%
        o Tier 1 common equity was 9.2%
        o Tier 1 risk-based capital was 10.8%
        o Leverage capital remained strong at 8.3%
        o Total capital was 13.6%

Earnings presentation and Quarterly Performance Summary

To listen to BB&T's live first quarter 2013 earnings conference call at 8 a.m. 
(ET) today, please call 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 BBT.com. Replays of the conference call will be available by 
dialing 888-203-1112 (access code 4313363) until May 18.

To access the presentation, including an appendix reconciling non-GAAP 
disclosures, go to www.BBT.com, click on "About" and proceed to "Investor 
Relations." The presentation can be found under "View Recent Presentations."

BB&T's first quarter 2013 Quarterly Performance Summary, which contains 
detailed financial schedules, is available on BB&T's website at 
www.BBT.com/financials.html.

About BB&T

As of March 31, 2013, BB&T is one of the largest financial services holding 
companies in the U.S. with $181 billion in assets and market capitalization of 
$22.0 billion. Based in Winston-Salem, N.C., the company operates 1,842 
financial centers in 12 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 J.D. Power and 
Associates, the U.S. Small Business Administration, Greenwich Associates and 
others. More information about BB&T and its full line of products and services 
is available at BBT.com.

Capital ratios are preliminary. Credit quality data excludes covered and 
government guaranteed loans where applicable.

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 that 
these non-GAAP measures provide a greater understanding of ongoing operations 
and enhance comparability of results with prior periods as well as 
demonstrating 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 that 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 Tier 1 common equity ratios are
        non-GAAP measures. BB&T uses the Tier 1 common equity
        definition used in the SCAP assessment to calculate these
        ratios. The Basel III Tier I common equity ratio is also a
        non-GAAP measure and reflects management's best estimate of the
        proposed regulatory requirements, which are subject to change.
        BB&T's management uses these measures to assess the quality of
        capital and believes that investors may find them useful in
        their analysis of the Corporation.
    --  Asset quality ratios have been adjusted to remove the impact of
        acquired loans and foreclosed property covered by FDIC loss
        sharing agreements from the numerator and denominator of these
        ratios. Management believes that their inclusion may result in
        distortion of these ratios, such that they might not be
        comparable to other periods presented or to other portfolios
        that were not impacted by purchase accounting.
    --  Fee income and efficiency ratios are non-GAAP in that they
        exclude securities gains (losses), foreclosed property expense,
        amortization of intangible assets, merger-related and
        restructuring charges, the impact of FDIC loss share accounting
        and other selected items. BB&T's management uses these measures
        in their analysis of the Corporation's performance. BB&T's
        management believe these measures provide a greater
        understanding of ongoing operations and enhance comparability
        of results with prior periods, as well as demonstrating the
        effects of significant gains and charges.
    --  Return on average tangible common shareholders' equity is a
        non-GAAP measure that calculates the return on average common
        shareholders' equity without the impact of intangible assets
        and their related amortization. This measure is useful for
        evaluating the performance of a business consistently, whether
        acquired or developed internally.
    --  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. BB&T's management believes that the
        exclusion of the generally higher yielding assets acquired in
        the Colonial acquisition from the calculation of net interest
        margin provides investors with useful information related to
        the relative performance of the remainder of BB&T's earning
        assets.
    --  Net income available to common shareholders and diluted EPS
        have been adjusted to exclude the impact of the $281 million
        tax adjustment that was recorded in the first quarter of 2013.
        BB&T management believes these adjustments increase
        comparability of period-to-period results and uses these
        measures to assess performance and believes investors may find
        them useful in their analysis of the Corporation.

A reconciliation of these non-GAAP measures to the most directly comparable 
GAAP measure is included on the Investor Relations section of BB&T's website 
and in BB&T's First Quarter 2013 Quarterly Performance Summary, which is 
available on BB&T's website at www.BBT.com/financials.html.

This news 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 news release.

ANALYSTS - Alan Greer, Executive Vice President, Investor Relations, (336) 
733-3021 or Bruce MacPherson, Vice President, Investor Relations, (336) 
733-3058; MEDIA - Cynthia Williams, Senior Executive Vice President, Corporate 
Communications, (336) 733-1478

http://www.bbt.com

SOURCE: BB&T Corporation

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CO: BB&T Corporation
ST: North Carolina
NI: FIN ERN CONF 

-0- Apr/18/2013 09:45 GMT


 
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