BB&T's 1st quarter EPS up 91% to $0.61; Earnings increase 92% to $431 million

WINSTON-SALEM, N.C., April 19, 2012 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported first quarter net income available to common shareholders of $431 million, an increase of 92% compared to $225 million reported in the first quarter 2011. Earnings per diluted common share totaled $0.61, an increase of 91%, compared to $0.32 earned in the first quarter last year.

"BB&T posted a very strong first quarter of 2012, driven by broad-based loan growth, strong noninterest income and lower expenses compared to last quarter," said Chairman and Chief Executive Officer Kelly S. King. "Our performance reflects 6% annualized growth in average loans in the first quarter, led by a 9% increase in C&I loans, a 20% increase in mortgage loans and a 15% increase in direct retail loans.

"Adjusted net revenues totaled $2.4 billion for the first quarter, an annualized increase of 19% compared to the fourth quarter last year," said King. "This substantial growth was generated by record mortgage banking revenues and stronger insurance revenues compared to last quarter.

"BB&T also significantly reduced credit-related costs this quarter," said King. "Net charge-offs fell to 1.28% of average loans and leases in the quarter compared to 1.46% last quarter, and losses are expected to continue to trend lower this year. In addition, costs related to foreclosed properties decreased significantly reflecting progress in our cost reduction strategies.

"We were also pleased to announce a 25% increase in the quarterly dividend for the second quarter, to $0.20, after banking regulators did not object to our proposed capital actions for 2012. Combined with a successful deployment of capital through the Crump acquisition and the pending BankAtlantic transaction, we remain among industry leaders in dividend payout and total payout, demonstrating our continued commitment to our shareholders."

First Quarter 2012 Performance Highlights

• Average total loans and leases held for investment increased 6.4% on an annualized basis compared to the fourth quarter of 2011
  • Average C&I loans increased 9.0%
  • Average direct retail loans increased 15.2%
  • Average sales finance loans increased 11.4%
  • Average mortgage loans increased 20.2%
  • Average residential ADC loans declined 54.1%

• Adjusted net revenues increased an annualized 19.2% due to record mortgage and strong insurance income
  • Net revenues were $2.4 billion for the first quarter, adjusted for securities gains and losses, the offsets for provisions related to covered assets, losses on NPA loan sales and write-downs on affordable housing investments
  • The net interest margin was 3.93%, down 9 basis points compared to the fourth quarter of 2011 and down 8 basis points compared to the first quarter last year largely due to the runoff of covered loans

• Average deposits increased $2.7 billion, or 8.8% on an annualized linked quarter basis
  • Average noninterest-bearing deposits increased $957 million, or 15.3%
  • Average interest-bearing deposit costs fell to 0.49% compared to 0.56% in the fourth quarter of 2011

• BB&T reduced nonperforming assets for the 8th consecutive quarter
  • NPAs decreased 7.9% excluding covered assets
  • Foreclosed property balances, excluding covered items, declined 28.5% due to management's more aggressive disposal strategy
  • Net charge-offs, excluding covered loans and charge-offs, totaled 1.28% of average loans for the quarter, down from 1.46% in the fourth quarter of 2011

• Capital levels improved in the quarter
  • Tangible common equity was 7.1%
  • Tier 1 common equity was 10.0%
  • Tier 1 risk-based capital was 12.7%
  • Leverage capital remained strong at 9.1%
  • Total capital was 16.2%

BB&T Expands Through Strategic Acquisitions

On April 2, 2012, BB&T completed its acquisition of the life and property and casualty insurance divisions of Roseland, N.J.- based Crump Group Inc. The acquisition adds approximately $300 million in annual revenues to BB&T's insurance businesses and significantly strengthens and diversifies BB&T's noninterest revenues. This acquisition creates the largest independent wholesale distributor of life insurance and the second largest provider of wholesale commercial insurance brokerage and specialty programs in the U.S.

On March 13, 2012, BB&T announced a modification of its agreement to acquire BankAtlantic. The transaction includes approximately $2.1 billion in loans and $3.3 billion in deposits and will boost BB&T to the No. 6 deposit market share in the Miami market. The acquisition is expected to be completed in the second quarter.

Earnings webcast, presentation and Quarterly Performance Summary

To hear a live webcast of BB&T's first quarter 2012 earnings conference call at 8 a.m. (ET) today, please visit our website at www.BBT.com. A presentation will be used during the earnings conference call and is available on our website. Replays of the conference call will be available on the BB&T website, or by dialing 1-888-203-1112 (access code 4313363), until April 24, 2012.

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

BB&T's first quarter 2012 Quarterly Performance Summary, which contains detailed financial schedules, is available on BB&T's website at www.BBT.com.

About BB&T

As of March 31, 2012, BB&T is one of the largest financial services holding companies in the U.S. with $174.8 billion in assets and market capitalization of $21.9 billion. Based in Winston-Salem, N.C., the company operates approximately 1,800 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 www.BBT.com.

Current quarter 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. BB&T's management uses these measures to evaluate the underlying performance and efficiency of its operations. It 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. 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. 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. These capital measures are not necessarily comparable to similar capital measures that may be presented by other companies. Asset quality ratios have been adjusted to remove the impact of acquired loans and foreclosed property covered by the FDIC loss sharing agreements as management believes their inclusion results in distortion of those ratios and may not be comparable to other periods presented or to other portfolios that were not impacted by purchase accounting.

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.

SOURCE BB&T Corporation