WINSTON-SALEM, N.C. , April 18, 2019 /PRNewswire/
-- BB&T Corporation (BBT) today reported
earnings for the first quarter of 2019. Net income available to
common shareholders was $749 million . Earnings per diluted common
share were $0.97 for the first quarter of 2019, equal to last
quarter. Results for the first quarter produced an annualized
return on average assets of 1.43 percent and an annualized return
on average common shareholders' equity of 11.08 percent.
Excluding merger-related and restructuring
charges of $80 million ( $64 million after-tax), net income
available to common shareholders was a record $813 million , or
$1.05 per diluted share. Adjusted diluted earnings per share
increased 8.2 percent compared to the first quarter of 2018.
Net income available to common shareholders was
$754 million ( $0.97 per diluted share) for the fourth quarter of
2018 and $745 million ( $0.94 per diluted share) for the first
quarter of 2018.
"We are pleased to report strong earnings of $749
million , or $0.97 per diluted common share, for the first
quarter," said Chairman and Chief Executive Officer Kelly S. King .
"Excluding merger-related and restructuring charges, we achieved
record quarterly earnings of $813 million , or $1.05 per diluted
common share.
"Our businesses continue to perform well, with
record quarterly insurance revenues, increased net interest margin,
solid loan growth, strong expense control, excellent asset quality,
and strong capital and liquidity," King said.
"We continue to prepare for the integration of
our company with SunTrust and are excited as our colleagues work
together to create the premier financial institution. We know that
after merging with SunTrust, we will be best positioned to help our
clients achieve financial success while continuing to invest in our
communities and associates and delivering enhanced value to our
shareholders," King said.
First Quarter 2019 Performance
Highlights
Earnings per diluted common share were $0.97
, unchanged compared to fourth quarter of 2018
Taxable-equivalent revenues were $2.9 billion
, down $42 million from the fourth quarter of 2018
Noninterest expense was $1.8 billion , down
$16 million compared to the fourth quarter of 2018
Average loans and leases held for investment
were $148.1 billion , up $522 million , or 1.4 percent annualized
compared to the fourth quarter of 2018
Average deposits were $160.0 billion compared
to $157.8 billion for the fourth quarter of 2018
Asset quality remains excellent
Capital levels remained strong across the
board
Earnings Presentation and Quarterly
Performance Summary
To listen to BB&T's live first quarter 2019
earnings conference call at 8 a.m. ET today, please call
866-519-2796 and enter the participant code 892418. A presentation
will be used during the earnings conference call and is available
on our website at https://bbt.investorroom.com/webcasts-and-presentations.
Replays of the conference call will be available for 30 days by
dialing 888-203-1112 (access code 6759252).
The presentation, including an appendix
reconciling non-GAAP disclosures, is available at https://bbt.investorroom.com/webcasts-and-presentations.
BB&T's First Quarter 2019 Quarterly Performance Summary, which
contains detailed financial schedules, is available on BB&T's
website at https://bbt.investorroom.com/quarterly-earnings.
About BB&T
BB&T is one of the largest financial services
holding companies in the U.S. with $227.7 billion in assets and
market capitalization of approximately $35.6 billion as of
March 31, 2019. Building on a long tradition of excellence in
community banking, BB&T offers a wide range of financial
services including retail and commercial banking, investments,
insurance, wealth management, asset management, mortgage, corporate
banking, capital markets and specialized lending. Based in
Winston-Salem, N.C. , BB&T operates more than 1,800 financial
centers in 15 states and Washington, D.C. and is consistently
recognized for outstanding client service by Greenwich Associates
for small business and middle market banking. More information
about BB&T and its full line of products and services is
available at BBT.com.
Capital ratios are preliminary.
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 these non-GAAP measures provide a greater understanding of
ongoing operations, enhance comparability of results with prior
periods and demonstrate the effects of significant items in the
current period. The Corporation believes a meaningful analysis of
its financial performance requires an understanding of the factors
underlying that performance. BB&T's management believes
investors may find these non-GAAP financial measures useful. 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:
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The adjusted efficiency ratio is non-GAAP in that it
excludes securities gains (losses), amortization of intangible
assets, merger-related and restructuring charges and other selected
items. BB&T's management uses this measure in their analysis of
the Corporation's performance. BB&T's management believes this
measure provides a greater understanding of ongoing operations and
enhances comparability of results with prior periods, as well as
demonstrates the effects of significant gains and charges.
Tangible common equity and related measures are non-GAAP
measures that exclude the impact of intangible assets, net of
deferred taxes, and their related amortization. These measures are
useful for evaluating the performance of a business consistently,
whether acquired or developed internally. BB&T's management
uses these measures to assess the quality of capital and returns
relative to balance sheet risk and believes investors may find them
useful in their analysis of the Corporation. In 1Q19, the
calculation of tangible common shareholder's equity was updated to
include the impact of deferred taxes on intangible assets. Prior
periods have been adjusted to conform to the new
presentation.
Core net interest margin is a non-GAAP measure that adjusts
net interest margin to exclude the impact of purchase accounting.
The interest income and average balances for PCI loans are excluded
in their entirety as the accounting for these loans can result in
significant and unusual trends in yields. The purchase accounting
marks and related amortization for a) securities acquired from the
FDIC in the Colonial Bank acquisition and b) non-PCI loans,
deposits and long-term debt acquired from Susquehanna and National
Penn are excluded to approximate their yields at the
pre-acquisition rates. BB&T's management believes the
adjustments to the calculation of net interest margin for certain
assets and liabilities acquired provide investors with useful
information related to the performance of BB&T's earning
assets.
The adjusted diluted earnings per share is non-GAAP in that
it excludes merger-related and restructuring charges and other
selected items, net of tax. BB&T's management uses this measure
in their analysis of the Corporation's performance. BB&T's
management believes this measure provides a greater understanding
of ongoing operations and enhances comparability of results with
prior periods, as well as demonstrates the effects of significant
gains and charges.
The adjusted operating leverage ratio is non-GAAP in that it
excludes securities gains (losses), amortization of intangible
assets, merger-related and restructuring charges and other selected
items. BB&T's management uses this measure in their analysis of
the Corporation's performance. BB&T's management believes this
measure provides a greater understanding of ongoing operations and
enhances comparability of results with prior periods, as well as
demonstrates the effects of significant gains and charges.
The adjusted performance ratios are non-GAAP in that they
exclude merger-related and restructuring charges and, in the case
of return on average tangible common shareholders' equity,
amortization of intangible assets. BB&T's management uses these
measures in their analysis of the Corporation's performance.
BB&T's management believes these measures provide a greater
understanding of ongoing operations and enhances comparability of
results with prior periods, as well as demonstrates the effects of
significant gains and charges.
A reconciliation of these non-GAAP measures to
the most directly comparable GAAP measure is included in BB&T's
First Quarter 2019 Quarterly Performance Summary, which is
available at https://bbt.investorroom.com/quarterly-earnings.
This news release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, regarding the financial condition, results of
operations, business plans and the future performance of BB&T.
Forward-looking statements are not based on historical facts but
instead represent management's expectations and assumptions
regarding BB&T's business, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances difficult to predict. BB&T's actual
results may differ materially from those contemplated by the
forward-looking statements. Words such as "anticipates,"
"believes," "estimates," "expects," "forecasts," "intends,"
"plans," "projects," "may," "will," "should," "could" and other
similar expressions are intended to identify these forward-looking
statements. Such statements are subject to factors that could cause
actual results to differ materially from anticipated results. While
there is no assurance any list of risks and uncertainties or risk
factors is complete, important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the following, without limitation, as well as
the risks and uncertainties more fully discussed under Item 1A-Risk
Factors in our Annual Report on Form 10-K for the year ended
December 31, 2018 and in any of BB&T's subsequent
filings with the Securities and Exchange Commission:
risks, uncertainties and other factors relating to the
merger of SunTrust with and into BB&T, including the ability to
obtain regulatory approvals and meet other closing conditions to
the merger, including approval of the merger by BB&T
shareholders and SunTrust shareholders and delay in closing the
merger;
general economic or business conditions, either nationally
or regionally, may be less favorable than expected, resulting in,
among other things, slower deposit and/or asset growth, and a
deterioration in credit quality and/or a reduced demand for credit,
insurance or other services;
disruptions to the national or global financial markets,
including the impact of a downgrade of U.S. government obligations
by one of the credit ratings agencies, the economic instability and
recessionary conditions in Europe;
changes in the interest rate environment, including interest
rate changes made by the Federal Reserve, as well as cash flow
reassessments may reduce net interest margin and/or the volumes and
values of loans and deposits as well as the value of other
financial assets and liabilities;
competitive pressures among depository and other financial
institutions may increase significantly;
legislative, regulatory or accounting changes, including
changes resulting from the adoption and implementation of the
Dodd-Frank Act may adversely affect the businesses in which
BB&T is engaged;
local, state or federal taxing authorities may take tax
positions that are adverse to BB&T;
a reduction may occur in BB&T's credit ratings;
adverse changes may occur in the securities
markets;
competitors of BB&T may have greater financial resources
or develop products that enable them to compete more successfully
than BB&T and may be subject to different regulatory standards
than BB&T;
cybersecurity risks could adversely affect BB&T's
business and financial performance or reputation, and BB&T
could be liable for financial losses incurred by third parties due
to breaches of data shared between financial institutions;
higher-than-expected costs related to information technology
infrastructure or a failure to successfully implement future system
enhancements could adversely impact BB&T's financial condition
and results of operations and could result in significant
additional costs to BB&T;
natural or other disasters, including acts of terrorism,
could have an adverse effect on BB&T, materially disrupting
BB&T's operations or the ability or willingness of customers to
access BB&T's products and services;
costs related to the integration of the businesses of
BB&T and its merger partners may be greater than
expected;
failure to execute on strategic or operational plans,
including the ability to successfully complete and/or integrate
mergers and acquisitions or fully achieve expected cost savings or
revenue growth associated with mergers and acquisitions within the
expected time frames could adversely impact financial condition and
results of operations;
significant litigation and regulatory proceedings could have
a material adverse effect on BB&T;
unfavorable resolution of legal proceedings or other claims
and regulatory and other governmental investigations or other
inquiries could result in negative publicity, protests, fines,
penalties, restrictions on BB&T's operations or ability to
expand its business and other negative consequences, all of which
could cause reputational damage and adversely impact BB&T's
financial conditions and results of operations;
risks resulting from the extensive use of models;
risk management measures may not be fully
effective;
deposit attrition, customer loss and/or revenue loss
following completed mergers/acquisitions may exceed expectations;
and
widespread system outages, caused by the failure of critical
internal systems or critical services provided by third parties,
could adversely impact BB&T's financial condition and results
of operations.
Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this news release. Actual results may differ
materially from those expressed in or implied by any
forward-looking statement. Except to the extent required by
applicable law or regulation, BB&T undertakes no obligation to
revise or update publicly any forward-looking statements for any
reason.