BB&T Corp. (BBT) Reports In-Line Q2 EPS, Beats on Revenues

BB&T Corp. (NYSE: BBT) reported Q2 EPS of $0.77, in-line with the analyst estimate of $0.77. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.87 billion.

Second Quarter 2017 Performance Highlights

• Taxable-equivalent revenues were $2.9 billion for the second quarter, up $75 million from the first quarter of 2017
• Net interest income on a taxable-equivalent basis was up $26 million
• Net interest margin was 3.47 percent, up one basis point; driven by rate increases
• Noninterest income was up $49 million due to higher insurance revenues, investment banking and brokerage fees and commissions and bankcard fees and merchant discounts
• Fee income ratio was 42.7 percent, compared to 42.1 percent for the prior quarter
• Noninterest expense was $1.7 billion, down $360 million compared to the first quarter of 2017
• Decrease includes $392 million loss on debt extinguishment recorded in the prior quarter
• Personnel expense increased $31 million
• Merger-related and restructuring charges decreased $26 million
• GAAP efficiency ratio was 61.0 percent, compared to 75.6 percent for the prior quarter
• Adjusted efficiency ratio was 58.6 percent, compared to 58.0 percent for the prior quarter
• Average loans and leases held for investment were $143.1 billion compared to $142.0 billion for the first quarter of 2017
• Average commercial and industrial loans increased $781 million, or 6.1 percent annualized
• Average other lending subsidiaries loans increased $717 million, or 19.3 percent annualized
• Average total CRE increased $323 million, or 7.0 percent annualized
• Average sales finance loans decreased $446 million, or 16.4 percent annualized
• Average residential mortgage loans decreased $309 million, or 4.2 percent annualized
• Average deposits were $160.3 billion compared to $161.4 billion for the first quarter of 2017
• Average noninterest-bearing deposits increased $1.5 billion, or 11.6 percent annualized
• Deposit mix remained strong, with average noninterest-bearing deposits representing 32.8 percent of total deposits, compared to 31.7 percent in the prior quarter
• Average interest-bearing deposits decreased $2.6 billion and costs were 0.30 percent, up four basis points compared to the prior quarter
• Asset quality continues to improve
• Nonperforming loans were 0.43 percent of loans held for investment, down $111 million
• Loans 90 days or more past due and still accruing were 0.34 percent of loans held for investment, compared to 0.38 percent in the prior quarter
• Loans 30-89 days past due and still accruing were 0.61 percent of loans held for investment, compared to 0.56 percent in the prior quarter
• The allowance for loan loss coverage ratio was 2.43 times nonperforming loans held for investment, versus 2.05 times in the prior quarter
• The allowance for loan and lease losses was 1.03 percent of loans held for investment, slightly down from the prior quarter
• Capital levels remained strong across the board
• Common equity tier 1 to risk-weighted assets was 10.3 percent, or 10.2 percent on a fully phased-in basis
• Tier 1 risk-based capital was 12.1 percent
• Total capital was 14.1 percent
• Leverage capital was 10.1 percent

For earnings history and earnings-related data on BB&T Corp. (BBT) click here.

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