TRUIST FINANCIAL CORPORATION 
By
"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
"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
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
GAAP and operating results for the fourth quarter of 2008 include a
For the full year 2008, BB&T's net income available to common shareholders
was
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
The provision for credit losses totaled
BB&T Begins Efforts to Effectively Deploy Treasury Capital Investment
During the fourth quarter of 2008, the U.S. Treasury invested
Capital Levels Grow Significantly in 4th Quarter
BB&T's regulatory capital levels increased significantly at
During the fourth quarter, BB&T declared a quarterly cash dividend of
Strong Balance Sheet Growth
Average loans and leases totaled
Average deposits totaled
Average securities available for sale totaled
Core net interest margin improves to 3.68%
BB&T's fully taxable equivalent net interest income totaled
BB&T's Fee Based Businesses Produce Solid Quarterly Growth Rates
Noninterest income, excluding securities gains and losses, increased
These increases also include a solid performance from mortgage banking
operations during the quarter. Revenues from mortgage banking operations
totaled
Other noninterest income totaled
BB&T Continues to Expand Through Acquisitions
On
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
At
For additional information about BB&T's financial performance, company news, products and services, please visit our website at www.bbt.com.
Earnings Webcast
To hear a live webcast of BB&T's fourth quarter 2008 earnings conference
call at
This press release contains financial information determined by methods
other than in accordance with accounting principles generally accepted in
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.
SOURCE BB&T Corporation
