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)
January 15, 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 fourth quarter of 1997,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued January 15, 1998
<PAGE>
January 14, 1998
FOR IMMEDIATE RELEASE
Contacts:
ANALYSTS MEDIA
B. Gloyden Stewart, Jr. Scott E. Reed Bob Denham
Senior Vice President Senior Executive Vice President Vice President
Investor Relations Chief Financial Officer Public Relations
(919) 246-4219 (336) 733-3088 (336) 733-2202
BB&T reports record 1997 earnings;
recurring earnings per share increase 17%
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBK) reported today record 1997
earnings totaling $408.6 million, or $2.96 per share, before net pre-tax charges
of $67.9 million primarily associated with completing the acquisition of United
Carolina Bancshares Corporation (UCB). Excluding nonrecurring charges, 1997
earnings per share increased 17.0% compared to 1996.
For the fourth quarter of 1997, BB&T earned $109.4 million on a recurring
basis compared to $90.0 million in 1996. Recurring earnings per share were $.80
compared to $.65 in 1996, an increase of 23.1%. BB&T's fourth quarter 1997
recurring results produced a return on average assets of 1.56% and a return on
average equity of 20.44%, compared to prior year ratios of 1.41% and 17.47%,
respectively.
Including the nonrecurring charges, BB&T earned $359.9 million, or $2.60 per
share, for the year ended 1997 compared to $330.2 million, or $2.38 per share,
in 1996. For the fourth quarter of 1997, net income totaled $103.4 million, or
$.75 per share, compared to $90.0 million, or $.65 per share, in the fourth
quarter of 1996.
<PAGE>
BB&T has continued to pursue a strategy of economically feasible acquisitions
during the fourth quarter. On Oct. 29, 1997, BB&T announced plans to merge with
Life Bancorp, Inc. (Life) of Norfolk, Va. Life has $1.5 billion in assets and
operates 20 full service banking offices in the Norfolk, Virginia Beach,
Chesapeake, Portsmouth and Suffolk communities of Virginia. On Dec. 15, 1997,
BB&T announced plans to acquire Franklin Bancorporation, Inc. (Franklin) of
Washington, D.C. Franklin, with $535 million in assets, operates nine full
service banking offices, six in the District of Columbia, one in Bethesda, Md.,
and two in the Alexandria and Tysons Corner communities of Northern Virginia.
As a result of these transactions, BB&T will have the largest share
of deposits in the Southside Hampton Roads area of Virginia and will bring
BB&T's total assets in Virginia and the metropolitan Washington, D.C. area to
approximately $4 billion.
On Dec. 3, 1997, Standard & Poor's Financial Information Services added
BB&T to the S&P 500 Index, a leading measure of stock market performance among
major U.S. companies.
BB&T had $29.2 billion in assets and 506 banking offices in the Carolinas and
Virginia as of Dec. 31, 1997. 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 Jan. 13 was $xx.xx per share. For additional information about BB&T's
financial performance, products and services, please visit our website at
www.BBandT.com.
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 3 Investor Relations (919) 246-4871
<CAPTION>
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/97 12/31/96 $ %
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 564,259 $ 507,919 $ 56,340 11.1 %
Interest expense 270,027 237,127 32,900 13.9
Net interest income - taxable equivalent 294,232 270,792 23,440 8.7
Less: Taxable equivalent adjustment 15,223 9,755 5,468 56.1
Net interest income 279,009 261,037 17,972 6.9
Provision for loan & lease losses 21,999 18,350 3,649 19.9
Net interest income after provision
for loan & lease losses 257,010 242,687 14,323 5.9
Noninterest income 118,479 95,058 23,421 24.6
Noninterest expense 221,560 206,228 15,332 7.4
Income before income taxes 153,929 131,517 22,412 17.0
Provision for income taxes 50,533 41,533 9,000 21.7
Net income $ 103,396 $ 89,984 $ 13,412 14.9 %
PER SHARE DATA
Basic earnings $ .77 $ .66 $ .11 16.7 %
Diluted earnings .75 .65 .10 15.4
Weighted average shares - Basic 134,771,192 136,716,378
Diluted 137,398,744 139,001,896
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
PERFORMANCE RATIOS
Return on average assets 1.47 % 1.41 %
Return on average equity 19.31 17.47
Net yield on earning assets (taxable equivalent) 4.49 4.51
Efficiency (taxable equivalent) * 51.4 56.5
For the Twelve Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/97 12/31/96 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 2,175,798 $ 1,970,716 $ 205,082 10.4 %
Interest expense 1,023,415 926,870 96,545 10.4
Net interest income - taxable equivalent 1,152,383 1,043,846 108,537 10.4
Less: Taxable equivalent adjustment 52,858 36,146 16,712 46.2
Net interest income 1,099,525 1,007,700 91,825 9.1
Provision for loan & lease losses 89,850 62,511 27,339 43.7
Net interest income after provision for
loan & lease losses 1,009,675 945,189 64,486 6.8
Noninterest income 474,914 353,468 121,446 34.4
Noninterest expense 937,150 808,550 128,600 15.9
Income before income taxes 547,439 490,107 57,332 11.7
Provision for income taxes 187,497 159,932 27,565 17.2
Net income $ 359,942 $ 330,175 $ 29,767 9.0 %
PER SHARE DATA
Basic earnings $ 2.65 $ 2.42 .23 9.5 %
Diluted earnings 2.60 2.38 .22 9.2
Weighted average shares - Basic 135,742,174 136,024,587
Diluted 138,220,057 138,955,834
Dividends paid on common shares $ 1.16 $ 1.00 .16 16.0 %
PERFORMANCE RATIOS
Return on average assets 1.34 % 1.33 %
Return on average common equity 17.01 16.73
Return on average total equity 17.01 16.63
Net yield on earning assets (taxable equivalent) 4.55 4.48
Efficiency (taxable equivalent) * 51.9 55.4
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 4 Investor Relations (919) 246-4871
For the Three Months Ended Increase (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/97 12/31/96 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 564,394 $ 507,919 $ 56,475 11.1 %
Interest expense 270,027 237,127 32,900 13.9
Net interest income - taxable equivalent 294,367 270,792 23,575 8.7
Less: Taxable equivalent adjustment 15,233 9,755 5,478 56.2
Net interest income 279,134 261,037 18,097 6.9
Provision for loan & lease losses 21,999 18,350 3,649 19.9
Net interest income after provision
for loan & lease losses 257,135 242,687 14,448 6.0
Noninterest income 118,752 95,058 23,694 24.9
Noninterest expense 212,365 206,228 6,137 3.0
Income before income taxes 163,522 131,517 32,005 24.3
Provision for income taxes 54,106 41,533 12,573 30.3
Net income excluding nonrecurring items 109,416 89,984 19,432 21.6
Nonrecurring items, net of tax 6,020 -- 6,020 NM
Net income $ 103,396 $ 89,984 $ 13,412 14.9 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .81 $ .66 $ .15 22.7 %
Diluted earnings .80 .65 .15 23.1
Weighted average shares - Basic 134,771,192 136,716,378
Diluted 137,398,744 139,001,896
Dividends paid on common shares $ .31 $ .27 $ .04 14.8 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.56 % 1.41 %
Return on average equity 20.44 17.47
Net yield on earning assets (taxable equivalent) 4.49 4.51
Efficiency (taxable equivalent) * 51.4 56.5
For the Twelve Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 12/31/97 12/31/96 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 2,175,933 $ 1,970,716 $ 205,217 10.4 %
Interest expense 1,023,415 926,870 96,545 10.4
Net interest income - taxable equivalent 1,152,518 1,043,846 108,672 10.4
Less: Taxable equivalent adjustment 52,868 36,146 16,722 46.3
Net interest income 1,099,650 1,007,700 91,950 9.1
Provision for loan & lease losses 89,850 62,511 27,339 43.7
Net interest income after provision
for loan & lease losses 1,009,800 945,189 64,611 6.8
Noninterest income 427,404 353,468 73,936 20.9
Noninterest expense 821,850 774,710 47,140 6.1
Income before income taxes 615,354 523,947 91,407 17.4
Provision for income taxes 206,714 172,000 34,714 20.2
Net income excluding nonrecurring items 408,640 351,947 56,693 16.1
Nonrecurring items, net of tax 48,698 21,772 26,926 123.7
Net income $ 59,942 $ 330,175 $ 29,767 9.0 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ 3.01 $ 2.58 $ .43 16.7 %
Diluted earnings 2.96 2.53 .43 17.0
Weighted average shares - Basic 135,742,174 136,024,587
Diluted 138,220,057 138,955,834
Dividends paid on common shares $ 1.16 $ 1.00 $ .16 16.0 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.52 % 1.42 %
Return on average common equity 19.31 17.84
Return on average total equity 19.31 17.73
Net yield on earning assets (taxable equivalent) 4.55 4.48
Efficiency (taxable equivalent) * 51.9 55.4
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
NM - not meaningful.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 5 Investor Relations (919) 246-4871
As of / For the Twelve Months Ended Increase (Decrease)
(Dollars in thousands) 12/31/97 12/31/96 $ %
<CAPTION>
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value $ 6,697,192 $ 6,185,029 $ 512,163 8.3 %
Loans & leases 20,289,955 17,746,557 2,543,398 14.3
Allowance for loan & lease losses 263,943 230,070 33,873 14.7
Other earning assets 130,296 86,950 43,346 49.9
Total earning assets 27,043,405 23,998,316 3,045,089 12.7
Total assets 29,177,600 25,707,646 3,469,954 13.5
Noninterest-bearing deposits 2,828,715 2,623,429 205,286 7.8
Interest-bearing deposits 17,381,401 16,379,911 1,001,490 6.1
Total deposits 20,210,116 19,003,340 1,206,776 6.4
Short-term borrowed funds 3,015,177 2,280,824 734,353 32.2
Long-term debt 3,282,958 2,054,040 1,228,918 59.8
Total interest-bearing liabilities 23,679,536 20,714,775 2,964,761 14.3
Total shareholders' equity $ 2,237,637 $ 2,071,567 $ 166,070 8.0 %
Average balances
Securities, at amortized cost $ 6,342,124 $ 6,047,280 $ 294,844 4.9 %
Loans & leases 18,916,461 17,186,046 1,730,415 10.1
Other earning assets 52,519 84,167 (31,648) (37.6)
Total earning assets 25,311,104 23,317,493 1,993,611 8.5
Total assets 26,933,490 24,770,102 2,163,388 8.7
Noninterest-bearing deposits 2,543,546 2,433,123 110,423 4.5
Interest-bearing deposits 16,767,207 16,144,245 622,962 3.9
Total deposits 19,310,753 18,577,368 733,385 3.9
Short-term borrowed funds 2,527,128 2,029,293 497,835 24.5
Long-term debt 2,623,424 1,861,380 762,044 40.9
Total interest-bearing liabilities 21,917,759 20,034,918 1,882,841 9.4
Common equity 2,116,010 1,969,821 146,189 7.4
Preferred equity -- 15,159 (15,159) (100.0)
Total shareholders' equity $ 2,116,010 1,984,980 $ 131,030 6.6 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 6 Investor Relations (919) 246-4871
As of / For the Quarter Ended
<CAPTION>
(Dollars in thousands, except per share data) 12/31/97 9/30/97 6/30/97 3/31/97 12/31/96
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans & leases $ 451,816 $ 443,012 $ 436,209 $ 408,416 $ 398,833
Interest & dividends on securities 111,675 110,735 108,631 102,578 107,192
Interest on short-term investments 768 387 877 694 1,894
Total interest income - taxable equivalent 564,259 554,134 545,717 511,688 507,919
Interest expense
Interest on deposits 184,788 185,499 186,643 179,326 181,933
Interest on short-term borrowed funds 39,201 35,741 32,532 27,005 24,397
Interest on long-term debt 46,038 41,602 34,912 30,128 30,797
Total interest expense 270,027 262,842 254,087 236,459 237,127
Net interest income - taxable equivalent 294,232 291,292 291,630 275,229 270,792
Less: Taxable equivalent adjustment 15,223 14,169 13,039 10,427 9,755
Net interest income 279,009 277,123 278,591 264,802 261,037
Provision for loan & lease losses 21,999 21,901 25,100 20,850 18,350
Net interest income after provision for
loan & lease losses 257,010 255,222 253,491 243,952 242,687
Noninterest income
Service charges on deposits 37,282 36,518 37,803 36,456 34,177
Mortgage banking activities 16,016 13,742 10,919 11,752 10,910
Trust revenue 8,097 8,498 8,504 6,858 7,652
Agency insurance commissions 9,588 9,670 9,205 11,296 7,300
Other insurance commissions 3,564 2,696 3,347 3,557 3,534
Other nondeposit fees & commissions 29,632 27,924 25,326 22,636 21,788
Securities gains (losses), net 1,664 731 (933) 814 2,681
Other income 12,636 55,289 7,084 6,743 7,016
Total noninterest income 118,479 155,068 101,255 100,112 95,058
Noninterest expense
Personnel expense 108,967 121,706 101,054 102,088 97,804
Occupancy & equipment expense 36,193 54,013 33,164 31,284 31,568
Foreclosed property expense 727 684 677 771 902
Amortization of intangibles & servicing rights 9,845 6,441 5,536 4,353 4,659
Other noninterest expense 65,828 129,829 64,895 59,095 71,295
Total noninterest expense 221,560 312,673 205,326 197,591 206,228
Income before income taxes 153,929 97,617 149,420 146,473 131,517
Provision for income taxes 50,533 36,353 50,760 49,851 41,533
Net income $ 103,396 $ 61,264 $ 98,660 $ 96,622 $ 89,984
PER SHARE DATA
Basic earnings $ .77 $ .45 $ .72 $ .71 $ .66
Diluted earnings .75 .45 .71 .69 .65
Dividends paid on common shares .31 .31 .27 .27 .27
Book value per common share $ 16.45 $ 15.52 $ 15.64 $ 15.38 $ 15.13
NOTE: Diluted earnings per share, excluding nonrecurring items, were $.80 in the fourth quarter
of 1997 & $.76 in the third quarter of 1997.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 7 Investor Relations (919) 246-4871
As of / For the Quarter Ended
<CAPTION>
(Dollars in thousands) 12/31/97 9/30/97 6/30/97 3/31/97 12/31/96
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value $ 6,697,192 $ 6,390,900 $ 6,532,307 $ 6,258,799 $ 6,185,029
Loans & leases 20,289,955 19,198,963 19,131,992 18,570,916 17,746,557
Allowance for loan & lease losses 263,943 257,439 251,222 242,253 230,070
Other earning assets 130,296 31,038 32,667 96,981 86,950
Total earning assets 27,043,405 25,555,595 25,665,360 24,935,549 23,998,316
Total assets 29,177,600 27,212,111 27,472,081 26,513,412 25,707,646
Noninterest-bearing deposits 2,828,715 2,665,266 2,761,412 2,619,058 2,623,429
Interest-bearing deposits 17,381,401 16,670,008 17,289,318 16,975,651 16,379,911
Total deposits 20,210,116 19,335,274 20,050,730 19,594,709 19,003,340
Short-term borrowed funds 3,015,177 2,391,141 2,324,930 2,197,953 2,280,824
Long-term debt 3,282,958 2,999,743 2,643,534 2,275,539 2,054,040
Total interest-bearing liabilities 23,679,536 22,060,892 22,257,782 21,449,143 20,714,775
Total shareholders' equity 2,237,637 2,084,226 2,117,747 2,104,488 2,071,567
Goodwill 199,558 106,149 104,593 95,899 58,760
Core deposit & other intangibles 6,837 7,213 7,622 8,014 9,259
Total intangibles 206,395 113,362 112,215 103,913 68,019
Mortgage servicing rights 68,780 64,911 61,566 55,771 41,891
Negative goodwill $ 32,992 $ 34,494 $ 36,054 $ 37,613 $ 39,172
Average balances
Securities, at amortized cost $ 6,438,552 $ 6,432,481 $ 6,399,463 $ 6,093,212 $ 6,306,888
Loans & leases 19,635,614 19,076,615 18,833,469 18,101,528 17,450,217
Other earning assets 63,196 36,136 57,275 53,543 140,281
Total earning assets 26,137,362 25,545,232 25,290,207 24,248,283 23,897,386
Total assets 27,914,984 27,168,511 26,859,692 25,764,559 25,452,779
Noninterest-bearing deposits 2,635,523 2,570,993 2,543,576 2,421,438 2,536,556
Interest-bearing deposits 16,693,343 16,738,498 17,024,558 16,611,849 16,502,726
Total deposits 19,328,866 19,309,491 19,568,134 19,033,287 19,039,282
Short-term borrowed funds 2,882,616 2,637,455 2,436,444 2,142,654 1,888,252
Long-term debt 3,106,477 2,806,159 2,406,161 2,162,518 2,164,007
Total interest-bearing liabilities 22,682,436 22,182,112 21,867,163 20,917,021 20,554,985
Total shareholders' equity $ 2,124,191 $ 2,105,646 $ 2,128,949 $ 2,105,159 $ 2,048,895
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,979,462 $ 1,924,842 $ 1,975,365 $ 1,994,710 $ 1,997,194
Total 2,724,293 2,668,270 2,703,760 2,474,122 2,461,822
Risk-based capital ratios:
Tier 1 9.9 % 9.7 % 10.6 % 10.8 % 11.5 %
Total 13.7 13.5 14.5 13.4 14.2
Leverage capital ratio 7.2 7.1 7.4 7.8 7.9
PERFORMANCE RATIOS
Return on average assets 1.47 % .89 % 1.47 % 1.52 % 1.41 %
Return on average equity 19.31 11.54 18.59 18.61 17.47
Net yield on earning assets (taxable equivalent) 4.49 4.55 4.62 4.57 4.51
Efficiency (taxable equivalent) * 51.4 51.7 52.0 52.6 56.5
Noninterest income as a percentage of total
income (taxable equivalent) * 28.5 26.8 25.9 26.5 25.4
Equity as a percentage of total assets
end of period 7.7 7.7 7.7 7.9 8.1
Average earning assets as a percentage
of average total assets 93.6 94.0 94.2 94.1 93.9
Average loans & leases as a percentage
of average deposits 101.6 98.8 96.2 95.1 91.7
CASH FLOW BASIS PERFORMANCE RATIOS**
Diluted earnings per share $ .82 $ .78 $ .73 $ .71 $ .66
Return on average tangible assets 1.62 % 1.57 % 1.52 % 1.56 % 1.44 %
Return on average tangible equity 22.79 21.38 20.15 19.82 18.43
Efficiency (taxable equivalent) * 50.5 50.9 51.2 51.8 55.9
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.
** Ratios based on recurring earnings adjusted for amortization of assets which reduce regulatory capital.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 8 Investor Relations (919) 246-4871
As of / For the Quarter Ended
<CAPTION>
(Dollars in thousands, except per share date) 12/31/97 9/30/97 6/30/97 3/31/97 12/31/96
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 257,439 $ 251,222 $ 242,253 $ 30,070 $ 230,040
Allowance for acquired loans 12,012 1,690 -- 3,811 --
Provision for loan & lease losses 21,999 21,901 25,100 20,850 18,350
Charge-offs (30,936) (21,880) (20,491) (17,330) (22,419)
Recoveries 3,429 4,506 4,360 4,852 4,099
Ending balance $ 63,943 $ 57,439 $ 251,222 $ 42,253 230,070
Nonperforming Assets
Nonaccrual loans & leases $ 88,389 $ 71,023 $ 61,326 $ 60,111 62,190
Foreclosed real estate 20,443 15,305 14,702 15,460 14,655
Other foreclosed property 13,900 13,617 13,056 15,900 13,290
Nonperforming assets $ 122,732 $ 99,945 $ 89,084 $ 91,471 90,135
Loans 90 days or more past due
& still accruing $ 46,999 $ 39,958 $ 37,361 $ 40,021 41,742
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & leases .44 % .37 % .32 % .32 % .35 %
Nonperforming assets as a percentage of:
Total assets .42 .37 .32 .34 .35
Loans & leases plus
foreclosed property .60 .52 .46 .49 .51
Net charge-offs as a percentage of
average loans & leases .56 .36 .34 .28 .42
Allowance for loan & lease losses as
a percentage of loans & leases 1.30 1.34 1.31 1.30 1.30
Ratio of allowance for loan & lease losses to:
Net charge-offs 2.42 x 3.73 x 3.88 x 4.79 x 3.16 x
Nonaccrual loans & leases 2.99 3.62 4.10 4.03 3.70
</TABLE>
<TABLE>
MEMO ITEMS
Unrealized appreciation (depreciation) on
<S> <C> <C> <C> <C> <C>
securities available for sale, net of tax $ 44,902 $ 39,531 $ 18,925 $ (6,011) $ 11,739
Common stock prices (daily close): High 65.00 55.13 47.13 40.75 36.75
Low 51.94 45.31 35.75 35.25 33.38
End of period $ 64.06 $ 53.44 $ 45.00 $ 37.25 $ 36.25
Weighted average shares - Basic 134,771,192 134,728,444 136,459,830 137,045,361 136,716,378
Diluted 137,398,744 137,363,272 138,810,123 139,338,821 139,001,896
End of period shares outstanding 136,051,623 134,308,475 135,418,510 136,817,658 136,896,865
End of period banking offices 506 486 573 578 574
As of / For the Twelve Months Ended Increase (Decrease)
(Dollars in thousands) 12/31/97 12/31/96 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 230,070 $ 219,052 $ 11,018 5.0 %
Allowance for acquired loans 17,513 -- 17,513 NM
Provision for loan & lease losses 89,850 62,511 27,339 43.7
Charge-offs (90,637) (69,073) 21,564 31.2
Recoveries 17,147 17,580 (433) (2.5)
Ending balance $ 263,943 $ 230,070 $ 33,873 14.7 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .39 % .30 %
Ratio of allowance for loan & lease losses to
net charge-offs 3.59 x 4.47 x
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
NM - not meaningful.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
BB&T Corporation (NYSE:BBK) Senior Vice President (919) 246-4219
Page 9 Investor Relations (919) 246-4871
For the Quarter Ended
<CAPTION>
12/31/97 9/30/97 6/30/97 3/31/97 12/31/96
INTEREST YIELDS/RATES (Taxable equivalent)
<S> <C> <C> <C> <C> <C> <C>
Interest income:
Securities* % 6.94 % 6.89 % 6.79 % 6.73 % 6.80 %
Loans & leases 9.14 9.23 9.29 9.15 9.09
Other earning assets 4.82 4.26 6.14 5.26 5.37
Total earning assets* 8.59 8.63 8.64 8.51 8.47
Interest expense:
Interest-bearing deposits 4.39 4.40 4.40 4.38 4.39
Short-term borrowed funds 5.40 5.38 5.36 5.11 5.14
Long-term debt 5.88 5.88 5.82 5.65 5.66
Total interest-bearing liabilities 4.72 4.70 4.66 4.58 4.59
Net yield on earning assets % 4.49 % 4.55 % 4.62 % 4.57 % 4.51 %
NOTE: *Yields calculated based on securities at amortized cost.
</TABLE>
<TABLE>
As of
(Dollars in thousands) 12/31/97
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 % 5.86 $ 23,785
Pay fixed swaps 351,930 5.88 5.58 (121)
Basis swaps 100,000 5.70 5.63 --
Caps & floors 676,000 -- -- 1,906
Total $2,428,930 6.25 5.79 $ 25,570
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
Receive fixed swaps $ 1,301,000 $ 276,000 $ 25,000 500,000
Pay fixed swaps 351,930 103,987 240,143 7,800
Basis swaps 100,000 100,000 -- --
Caps & floors 676,000 11,000 605,000 60,000
Total $ 2,428,930 $ 490,987 $1,370,143 $ 567,800
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<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: January 15, 1998
