UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
April 13, 1998
BB&T Corporation
(Exact name of registrant as specified in its charter)
Commission file number : 1-10853
North Carolina 56-0939887
(State of incorporation) (I.R.S. Employer Identification No.)
200 West Second Street
Winston-Salem, North Carolina 27101
(Address of principal executive offices) (Zip Code)
(336) 733-2000
(Registrant's telephone number, including area code)
This Form 8-K has 11 pages.
<PAGE>
ITEM 5. OTHER EVENTS
The purpose of this Current Report on Form 8-K is to file BB&T
Corporation's Quarterly Performance Summary for the first quarter of 1998,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued April 13, 1998
<PAGE>
April 13, 1998
FOR IMMEDIATE RELEASE
Contacts:
ANALYSTS
B. Gloyden Stewart, Jr. Tom A. Nicholson Scott E. Reed
Senior Vice President Senior Vice President Sr. Exec. Vice President
Investor Relations Investor Relations Chief Financial Officer
(252) 246-4219 (336) 733-3058 (336) 733-3088
MEDIA
Bob Denham
Vice President
Public Relations
(336) 733-2202
BB&T reports 20% increase in 1st quarter earnings
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBK) reported today that
first quarter 1998 earnings totaled $119.7 million, or $.83 per diluted share,
before pretax charges of $7.8 million associated with completing the acquisition
of Life Bancorp, Inc. of Norfolk, Va. Excluding the nonrecurring merger
expenses, BB&T's earnings per diluted share for the three months ended March 31,
1998, increased 20.3% from the $.69 per share earned during the first quarter of
1997. Including the effect of the Life merger expenses, net income totaled
$113.7 million, or $.78 per diluted share, for the first three months of 1998,
compared to $100.1 million, or $.69 per diluted share, earned in the first
quarter of 1997.
BB&T's recurring results for the 1998 quarter produced a return on average
assets of 1.58% and a return on average equity of 19.77%, compared to prior year
ratios of 1.49% and 17.98%, respectively. BB&T's efficiency ratio for the first
quarter of 1998 improved to 51.3% compared to 51.9% in the comparable period of
1997.
BB&T's "cash basis" performance (which excludes the effect that intangible
assets and related amortization expense have on net income, total assets and
shareholders' equity) for the three months ended March 31, 1998, showed
substantial improvement from the first quarter of last year. Cash basis net
income, excluding nonrecurring items, totaled $124.8 million, or $.86 per
diluted share, for the current quarter, an increase of 21.6% and 21.1%,
respectively, over cash basis earnings of $102.6 million, or $.71 per diluted
share, for the quarter ended March 31, 1997. Exclusive of nonrecurring charges,
cash basis operating results for the first quarter of 1998 produced an
annualized return on average tangible assets of 1.66%, an annualized return on
average tangible shareholders' equity of 22.70% and an efficiency ratio of
50.0%.
"We are very pleased to report record first quarter operating results," said
Chairman and Chief Executive Officer John A. Allison. "Our earnings growth
continues to be led by net interest income, which increased 8.0% compared to the
first quarter of 1997, and higher noninterest income, which grew at a rate of
23.4%. We have also been successful in our efforts to grow our franchise and
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MORE
enhance our operations while controlling costs, as evidenced by our improved
efficiency ratio. We are particularly pleased with the performance of our stock
price, which closed at $67.69 per share on March 31, 1998, an 81.7% increase
from the closing price of $37.25 per share a year earlier."
On February 25, 1998, BB&T announced plans to acquire Maryland Federal
Bancorp, Inc. (Maryland Federal) of Hyattsville, Md. Maryland Federal, with
approximately $1.2 billion in assets, conducts its operations through 28
branches in 24 cities. Maryland Federal ranks as the 11th largest financial
institution in Maryland based on asset size. The acquisition, which will be
accounted for as a purchase, is expected to be completed during the third
quarter of 1998. The transaction will more than double BB&T's presence in the
greater metropolitan Washington, D.C. area.
On March 1, 1998, BB&T completed its merger with Life Bancorp, Inc. (Life)
of Norfolk, Va. Life, with approximately $1.5 billion in assets, operates 20
full-service banking offices in the Southside Hampton Roads area of Virginia.
The acquisition was accounted for as a pooling of interests. The Life
transaction gives BB&T the leading market share of deposits in the Norfolk,
Virginia Beach, Chesapeake, Portsmouth and Suffolk communities of Virginia.
"These transactions enhance our market presence and franchise value in
Virginia and the metropolitan Washington, D.C. area, one of the fastest growing
markets in the nation, and establish us in Maryland, a state that ranks fifth
nationally in median household and personal income per capita," said Mr.
Allison. As a result of these transactions and the previously announced
agreement to acquire Franklin Bancorporation of Washington, D.C., BB&T will have
assets totaling approximately $5 billion in the geographic region encompassing
Virginia, suburban Maryland and metropolitan Washington, D.C.
BB&T continued to expand its insurance agency network during the first
quarter of 1998 through the purchases of DeJarnette & Paul, an independent
agency based in Richmond, Va., and W.C. Brown Insurance Services, Inc.,
headquartered in Rocky Mount, Va. In addition, an agreement in principal to
acquire McPhail, Bray, Murphy & Allen Inc., a Charlotte, N.C. agency, was
announced March 26, 1998.
BB&T had $31.5 billion in assets and 521 banking offices in the Carolinas
and Virginia as of March 31, 1998. BB&T's common stock is traded on the New York
Stock Exchange under the trading symbol BBK. The closing price of BB&T's common
stock on April 9 was $66.50 per share.
For additional information about BB&T's financial performance, products and
services, please visit our website at www.BBandT.com.
#
BB&T's news releases are available at no charge through PR Newswire's
Company News On-Call facsimile service. For a menu of BB&T's news releases or to
retrieve a specific release call 800-758-5804, extension 809325.
<PAGE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 3 Investor Relations Fax (252) 246-4871
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For the Three Months Ended Increase (Decrease)
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<CAPTION>
(Dollars in thousands, except per share data) 3/31/1998 3/31/1997 $ %
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INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 607,302 $ 537,410 $ 69,892 13.0 %
Interest expense 296,129 252,914 43,215 17.1
Net interest income - taxable equivalent 311,173 284,496 26,677 9.4
Less: Taxable equivalent adjustment 15,077 10,427 4,650 44.6
Net interest income 296,096 274,069 22,027 8.0
Provision for loan & lease losses 22,000 21,120 880 4.2
Net interest income after provision for loan & lease losses 274,096 252,949 21,147 8.4
Noninterest income 121,097 98,149 22,948 23.4
Noninterest expense 228,998 198,674 30,324 15.3
Income before income taxes 166,195 152,424 13,771 9.0
Provision for income taxes 52,477 52,346 131 .3
Net income $ 113,718 $ 100,078 $ 13,640 13.6 %
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PER SHARE DATA
Basic earnings $ .80 $ .70 $ .10 14.3 %
Diluted earnings .78 .69 .09 13.0
Weighted average shares - Basic 142,065,987 142,346,658
Diluted 145,077,846 144,827,632
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
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PERFORMANCE RATIOS
Return on average assets 1.50 % 1.49 %
Return on average equity 18.77 17.98
Net yield on earning assets (taxable equivalent) 4.36 4.46
Efficiency (taxable equivalent) * 51.3 51.9
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For the Three Months Ended Increase (Decrease)
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(Dollars in thousands, except per share data) 3/31/1998 3/31/1997 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 607,302 $ 537,410 $ 69,892 13.0 %
Interest expense 296,129 252,914 43,215 17.1
Net interest income - taxable equivalent 311,173 284,496 26,677 9.4
Less: Taxable equivalent adjustment 15,077 10,427 4,650 44.6
Net interest income 296,096 274,069 22,027 8.0
Provision for loan & lease losses 22,000 21,120 880 4.2
Net interest income after provision for loan & lease losses 274,096 252,949 21,147 8.4
Noninterest income 121,097 98,149 22,948 23.4
Noninterest expense 221,183 198,674 22,509 11.3
Income before income taxes 174,010 152,424 21,586 14.2
Provision for income taxes 54,269 52,346 1,923 3.7
Net income excluding nonrecurring items 119,741 100,078 19,663 19.6
Nonrecurring items, net of tax 6,023 - 6,023 NM
Net income $ 113,718 $ 100,078 $ 13,640 13.6 %
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PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .84 $ 70 $ .14 20.0 %
Diluted earnings .83 .69 .14 20.3
Weighted average shares - Basic 142,065,987 142,346,658
Diluted 145,077,846 144,827,632
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.58 % 1.49 %
Return on average equity 19.77 17.98
Net yield on earning assets (taxable equivalent) 4.36 4.46
Efficiency (taxable equivalent) * 51.3 51.9
- -----------------------------------------------------------------------------------------------------------------------------------
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
NM - not meaningful.
</TABLE>
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<TABLE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 4 Investor Relations Fax (252) 246-4871
============================================================================== ------------------------------------------------
As of / For the Three Months Ended Increase (Decrease)
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<CAPTION>
(Dollars in thousands) 3/31/1998 3/31/1997 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value $ 7,779,747 $ 6,981,061 $ 798,686 11.4 %
Loans & leases 21,532,325 19,220,228 2,312,097 12.0
Allowance for loan & lease losses 282,418 252,245 30,173 12.0
Other earning assets 128,356 99,817 28,539 28.6
Total earning assets 29,361,894 26,309,752 3,052,142 11.6
Total assets 31,535,710 27,921,399 3,614,311 12.9
Noninterest-bearing deposits 2,773,106 2,625,732 147,374 5.6
Interest-bearing deposits 18,021,702 17,711,551 310,151 1.8
Total deposits 20,794,808 20,337,283 457,525 2.2
Short-term borrowed funds 4,040,166 2,396,953 1,643,213 68.6
Long-term debt 3,768,556 2,580,744 1,187,812 46.0
Total interest-bearing liabilities 25,830,424 22,689,248 3,141,176 13.8
Total shareholders' equity $ 2,440,046 $ 2,256,287 $ 183,759 8.1 %
- -----------------------------------------------------------------------------------------------------------------------------------
Average balances
Securities, at amortized cost $ 7,483,243 $ 6,823,961 $ 659,282 9.7 %
Loans & leases 21,087,685 18,739,135 2,348,550 12.5
Other earning assets 147,235 60,446 86,789 143.6
Total earning assets 28,718,163 25,623,542 3,094,621 12.1
Total assets 30,742,591 27,175,348 3,567,243 13.1
Noninterest-bearing deposits 2,611,530 2,427,718 183,812 7.6
Interest-bearing deposits 17,913,437 17,343,251 570,186 3.3
Total deposits 20,524,967 19,770,969 753,998 3.8
Short-term borrowed funds 3,541,752 2,352,858 1,188,894 50.5
Long-term debt 3,741,611 2,464,586 1,277,025 51.8
Total interest-bearing liabilities 25,196,800 22,160,695 3,036,105 13.7
Total shareholders' equity $ 2,456,621 $ 2,257,577 $ 199,044 8.8 %
- -----------------------------------------------------------------------------------------------------------------------------------
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
</TABLE>
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<TABLE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 5 Investor Relations Fax (252) 246-4871
============================================================================== ------------------------------------------------
As of / For the Quarter Ended
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<CAPTION>
(Dollars in thousands, except per share data) 3/31/1998 12/31/1997 9/30/1997 6/30/1997 3/31/1997
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans & leases $ 477,510 $ 465,615 $ 456,979 $ 450,016 $ 421,689
Interest & dividends on securities 127,634 124,811 123,937 121,507 114,895
Interest on short-term investments 2,158 1,007 476 977 826
Total interest income - taxable equivalent 607,302 591,433 581,392 572,500 537,410
Interest expense
Interest on deposits 195,009 194,421 195,164 196,134 188,572
Interest on short-term borrowed funds 47,261 42,916 39,392 35,856 29,966
Interest on long-term debt 53,859 50,446 46,120 39,265 34,376
Total interest expense 296,129 287,783 280,676 271,255 252,914
Net interest income - taxable equivalent 311,173 303,650 300,716 301,245 284,496
Less: Taxable equivalent adjustment 15,077 15,233 14,169 13,039 10,427
Net interest income 296,096 288,417 286,547 288,206 274,069
Provision for loan & lease losses 22,000 22,244 21,745 24,865 21,120
Net interest income after provision for
loan & lease losses 274,096 266,173 264,802 263,341 252,949
Noninterest income
Service charges on deposits 41,090 37,486 36,705 37,993 36,660
Mortgage banking activities 15,263 13,381 13,439 11,093 12,470
Trust revenue 7,819 8,097 8,498 8,504 6,858
Agency insurance commissions 14,036 9,664 9,775 9,316 11,393
Other insurance commissions 2,979 3,564 2,696 3,347 3,557
Other nondeposit fees & commissions 24,572 24,434 22,614 20,470 18,434
Securities gains (losses), net 2,460 1,672 991 (933) 1,800
Other income 12,878 13,043 7,694 7,065 6,977
Total noninterest income 121,097 111,341 102,412 96,855 98,149
Noninterest expense
Personnel expense 113,110 106,793 104,524 104,084 105,014
Occupancy & equipment expense 36,609 35,688 35,033 33,821 31,943
Foreclosed property expense 831 951 709 763 866
Amortization of intangibles & servicing rights 10,135 7,160 6,095 5,720 5,076
Other noninterest expense 60,498 58,927 59,051 60,792 55,775
Total noninterest expense 221,183 209,519 205,412 205,180 198,674
Income before income taxes 174,010 167,995 161,802 155,016 152,424
Provision for income taxes 54,269 54,735 54,430 53,155 52,346
Net income $ 119,741 $ 113,260 107,372 $ 101,861 $ 100,078
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PER SHARE DATA
Basic earnings $ .84 $ .81 $ .77 $ .72 $ .70
Diluted earnings .83 .79 .75 .71 .69
Dividends paid on common shares .31 .31 .31 .27 .27
Book value per common share $ 17.22 $ 16.93 $ 16.02 $ 16.12 $ 15.83
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 6 Investor Relations Fax (252) 246-4871
============================================================================== ------------------------------------------------
As of / For the Quarter Ended
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<CAPTION>
(Dollars in thousands) 3/31/1998 12/31/1997 9/30/1997 6/30/1997 3/31/1997
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING
NONRECURRING ITEMS
<S> <C> <C> <C> <C> <C>
Return on average assets 1.58 % 1.53 % 1.49 % 1.44 % 1.49 %
Return on average equity 19.77 19.66 18.82 17.92 17.98
Net yield on earning assets (taxable equivalent) 4.36 4.36 4.44 4.52 4.46
Efficiency (taxable equivalent) * 51.3 50.5 50.9 51.2 51.9
Noninterest income as a percentage of total
income (taxable equivalent) * 27.6 26.6 25.2 24.5 25.3
Equity as a percentage of total assets
end of period 7.7 7.8 7.8 7.9 8.1
Average earning assets as a percentage
of average total assets 93.4 93.8 94.2 94.3 94.3
Average loans & leases as a percentage
of average deposits 102.7 101.1 98.4 96.0 94.8
- ---------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
<S> <C> <C> <C> <C> <C>
Net income excluding nonrecurring items $ 124,763 $ 117,065 $ 110,566 $ 104,891 $ 102,633
Diluted earnings per share .86 .82 .77 .73 .71
Return on average tangible assets 1.66 % 1.59 % 1.54 % 1.49 % 1.54 %
Return on average tangible equity 22.70 21.85 20.59 19.41 19.14
Efficiency ratio (taxable equivalent)* 50.0 49.5 50.1 50.5 51.3
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SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $ 7,779,747 $ 7,414,875 $ 7,178,296 $ 7,326,245 $ 6,981,061
Loans & leases 21,532,325 20,933,429 19,852,846 19,790,766 19,220,228
Allowance for loan & lease losses 282,418 275,404 266,078 260,968 252,245
Other earning assets 128,356 180,310 38,685 32,667 99,817
Total earning assets 29,361,894 28,448,103 26,998,601 27,113,476 26,309,752
Total assets 31,535,710 30,642,799 28,698,293 28,960,327 27,921,399
Noninterest-bearing deposits 2,773,106 2,833,238 2,671,187 2,766,559 2,625,732
Interest-bearing deposits 18,021,702 18,114,939 17,408,147 18,025,349 17,711,551
Total deposits 20,794,808 20,948,177 20,079,334 20,791,908 20,337,283
Short-term borrowed funds 4,040,166 3,276,177 2,660,641 2,600,430 2,396,953
Long-term debt 3,768,556 3,575,517 3,303,304 2,947,718 2,580,744
Total interest-bearing liabilities 25,830,424 24,966,633 23,372,092 23,573,497 22,689,248
Total shareholders' equity 2,440,046 2,399,827 2,243,506 2,274,730 2,256,287
Goodwill 214,408 206,008 110,548 109,095 100,551
Core deposit & other intangibles 6,461 6,837 7,213 7,622 8,014
Total intangibles 220,869 212,845 117,761 116,717 108,565
Mortgage servicing rights 72,353 68,780 64,911 61,566 55,771
Negative goodwill $ 31,431 $ 32,992 $ 34,494 $ 36,054 $ 37,613
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Average balances
Securities, at amortized cost $ 7,483,243 $ 7,213,182 $ 7,209,155 $ 7,157,151 $ 6,823,961
Loans & leases 21,087,685 20,287,804 19,735,137 19,487,514 18,739,135
Other earning assets 147,235 79,111 39,908 60,720 60,446
Total earning assets 28,718,163 27,580,097 26,984,200 26,705,385 25,623,542
Total assets 30,742,591 29,402,237 28,647,083 28,305,003 27,175,348
Noninterest-bearing deposits 2,611,530 2,641,340 2,576,609 2,549,196 2,427,718
Interest-bearing deposits 17,913,437 17,429,598 17,475,263 17,758,552 17,343,251
Total deposits 20,524,967 20,070,938 20,051,872 20,307,748 19,770,969
Short-term borrowed funds 3,541,752 3,154,831 2,900,917 2,676,482 2,352,858
Long-term debt 3,741,611 3,406,587 3,109,329 2,709,641 2,464,586
Total interest-bearing liabilities 25,196,800 23,991,016 23,485,509 23,144,675 22,160,695
Total shareholders' equity $ 2,456,621 $ 2,285,107 $ 2,263,096 $ 2,280,193 $ 2,257,577
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RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 2,168,228 $ 2,115,402 $ 2,057,531 $ 2,104,154 $ 2,119,707
Total 2,923,652 2,867,562 2,808,481 2,840,013 2,606,272
Risk-based capital ratios:
Tier 1 10.4 % 10.3 % 10.1 % 10.9 % 11.1 %
Total 14.1 14.0 13.7 14.8 13.7
Leverage capital ratio 7.1 7.2 7.2 7.5 7.8
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NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense & nonrecurring items for all periods.
** Cash basis operating results exclude the effect on earnings of amortization expense applicable to intangible assets that
do not qualify as regulatory capital. Cash basis performance ratios exclude the effect of amortization of
nonqualifying intangible assets from earnings and the unamortized balances of nonqualifying intangibles from
assets and equity.
</TABLE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 7 Investor Relations Fax (252) 246-4871
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As of / For the Quarter Ended
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<CAPTION>
(Dollars in thousands, except per share data) 3/31/1998 12/31/1997 9/30/1997 6/30/1997 3/31/1997
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ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 275,404 $ 266,078 $ 260,968 $ 252,245 $ 239,726
Allowance for acquired loans - 12,012 1,690 - 3,811
Provision for loan & lease losses 22,000 29,796 21,745 24,865 21,120
Charge-offs (20,396) (36,117) (22,907) (20,976) (17,447)
Recoveries 5,410 3,635 4,582 4,834 5,035
===================================================================================================================================
Ending balance $ 282,418 $ 275,404 $ 266,078 $ 260,968 $ 252,245
===================================================================================================================================
Nonperforming Assets
Nonaccrual loans & leases $ 92,267 $ 98,891 $ 74,372 $ 64,858 $ 63,926
Foreclosed real estate 15,477 20,937 16,531 15,476 16,126
Other foreclosed property 14,603 13,986 13,914 13,262 16,046
Restructured loans - 1,377 1,532 1,551 2,429
===================================================================================================================================
Nonperforming assets $ 122,347 $ 135,191 $ 106,349 $ 95,147 $ 98,527
===================================================================================================================================
Loans 90 days or more past due
& still accruing $ 41,919 $ 44,213 $ 39,958 $ 37,361 $ 40,021
===================================================================================================================================
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & leases .43 % .47 % .37 % .33 % .33 %
Nonperforming assets as a percentage of:
Total assets .39 .44 .37 .33 .35
Loans & leases plus
foreclosed property .57 .64 .53 .48 .51
Net charge-offs as a percentage of
average loans & leases .29 .64 .37 .33 .27
Allowance for loan & lease losses as
a percentage of loans & leases 1.31 1.32 1.34 1.32 1.31
Ratio of allowance for loan & lease losses to:
Net charge-offs 4.65 x 2.14 x 3.66 x 4.03 x 5.01 x
Nonaccrual and restructured loans & leases 3.06 2.75 3.51 3.93 3.80
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MEMO ITEMS
Unrealized appreciation (depreciation) on
securities available for sale, net of tax $ 47,712 $ 48,918 $ 43,217 $ 21,776 $ (5,893)
Common stock prices (daily close): High 67.69 65.00 55.13 47.13 40.75
Low 58.06 51.94 45.31 35.75 35.25
End of period 67.69 64.06 53.44 45.00 37.25
Weighted average shares - Basic 142,065,987 140,094,822 140,057,040 141,786,314 142,346,658
Diluted 145,077,846 143,074,059 142,979,143 144,340,389 144,827,632
End of period shares outstanding 141,681,441 141,763,220 140,020,072 141,129,701 142,528,825
End of period banking offices 521 526 506 593 598
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NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
</TABLE>
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<TABLE>
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QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (252) 246-4219
Page 8 Investor Relations Fax (252) 246-4871
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For the Quarter Ended
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<CAPTION>
3/31/1998 12/31/1997 9/30/1997 6/30/1997 3/31/1997
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INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
<S> <C> <C> <C> <C> <C>
Securities* 6.84 % 6.90 % 6.86 % 6.80 % 6.73 %
Loans & leases 9.16 9.12 9.20 9.26 9.10
Other earning assets 5.94 5.05 4.73 6.45 5.54
------------------------------------------------------------------------------------
Total earning assets* 8.54 8.53 8.57 8.59 8.46
------------------------------------------------------------------------------------
Interest expense:
Interest-bearing deposits 4.41 4.43 4.43 4.43 4.41
Short-term borrowed funds 5.41 5.40 5.39 5.37 5.17
Long-term debt 5.80 5.90 5.91 5.80 5.62
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Total interest-bearing liabilities 4.76 4.76 4.74 4.70 4.62
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Net yield on earning assets 4.36 % 4.36 % 4.44 % 4.52 % 4.46 %
====================================================================================
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NOTE: *Yields calculated based on securities at amortized cost.
As of
(Dollars in thousands) 3/31/1998
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DERIVATIVES: INTEREST RATE SWAPS, CAPS & FLOORS
<CAPTION>
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Receive fixed swaps $ 1,301,000 6.39 % 5.68 % $ 24,406
Pay fixed swaps 349,043 5.68 5.59 (410)
Basis swaps 50,000 5.83 5.69 40
Caps & floors 571,000 -- -- 1,150
===================================================================================================================================
Total $ 2,271,043 6.23 % 5.66 % $ 25,186
===================================================================================================================================
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
- -----------------------------------------------------------------------------------------------------------------------------------
Receive fixed swaps $ 1,301,000 $ 751,000 $ 50,000 $ 500,000
Pay fixed swaps 349,043 111,490 230,053 7,500
Basis swaps 50,000 50,000 - -
Caps & floors 571,000 11,000 500,000 60,000
===================================================================================================================================
Total $ 2,271,043 $ 923,490 $ 780,053 $ 567,500
===================================================================================================================================
</TABLE>
<PAGE>
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BB&T CORPORATION
(Registrant)
By: /S/ SHERRY A. KELLETT
Sherry A. Kellett
Executive Vice President and Controller
(Principal Accounting Officer)
Date: April 13, 1998
