April 21 (Bloomberg) -- BB&T Corp., the ninth-largest U.S. bank by deposits, may issue debt or stock as part of a plan to retire $3.2 billion in trust-preferred securities. The stock fell the most since May after the lender reported a drop in revenue.
BB&T plans to buy back all of its $3.2 billion in trust-preferred stock because TruPs can’t be counted as capital under the New Dodd-Frank Act regulations starting in 2013, the Winston-Salem, North Carolina-based bank said today in a statement. The lender will likely issue debt or preferred stock, John Pancari, an analyst at New York-based Evercore Partners Inc., said in an interview.
BB&T said first-quarter net income increased 20 percent to $225 million, or 32 cents a share, from $188 million, or 27 cents, a year earlier. The bank cut its loan-loss provision by 41 percent from the year-earlier quarter, according to the statement. Revenue was $2 billion, down from $2.16 billion in the same period last year.
BB&T fell 61 cents, or 2.3 percent, to $25.98 at 4:03 p.m. in New York Stock Exchange composite trading. The shares declined as much as 4.9 percent earlier today, the most since May.
“All of the banks this earnings season have been getting crushed by the lack of revenue growth,” Pancari said. “Credit improvement has become a foregone improvement.”