<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------
FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
July 14, 1999
Date of Report (Date of earliest event recorded)
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)
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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 second quarter of 1999,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued July 13, 1999
<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
Senior Executive Vice President and Controller
(Principal Accounting Officer)
Date: July 14, 1999
<PAGE>
July 13, 1999
FOR IMMEDIATE RELEASE
Contacts:
- --------
ANALYSTS MEDIA
Tom A. Nicholson Scott E. Reed Bob Denham
Senior Vice President Sr. Exec. Vice President Vice President
Investor Relations Chief Financial Officer Public Relations
(336) 733-3058 (336) 733-3088 (336) 733-2202
BB&T achieves 19.3% increase in 2nd quarter earnings
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today that
second quarter 1999 earnings totaled $152.8 million compared to $128.0 million
earned in the second quarter of 1998, an increase of 19.3%.
On a diluted per share basis, BB&T earned $.49 for the three months ended
June 30, 1999, an increase of 19.5% compared to the $.41 earned during the same
period a year ago. BB&T's current quarter results produced an annualized return
on average assets of 1.60% and an annualized return on average equity of 20.70%,
compared to ratios of 1.50% and 19.52%, respectively, for the second quarter
last year.
Cash basis earnings, which exclude the amortization of intangible assets,
totaled $163.0 million for the three months ended June 30, 1999, an increase of
22.1% compared to $133.5 million earned in the second quarter of 1998. On a
diluted per share basis, cash basis earnings totaled $.52 for the second
quarter, an increase of 20.9% compared to 1998. Cash basis operating results for
the second quarter of 1999 produced an annualized return on average tangible
assets of 1.73%, an annualized return on average tangible shareholders' equity
of 26.59% and an efficiency ratio of 50.9%.
For the six months ended June 30, 1999, BB&T's net income was $301.6
million, or $.97 per diluted share, excluding after-tax nonrecurring charges
totaling $10.4 million associated with completing a merger with MainStreet
Financial Corporation of Martinsville, Va. These earnings reflect increases of
18.5% and 18.3%, respectively, compared to the $254.5 million, or $.82 per
diluted share, earned in the comparable period in 1998. Recurring earnings for
the six months ended June 30, 1999, yielded an annualized return on average
assets of 1.62% and an annualized return on average equity of 20.62%, compared
to prior year ratios of 1.52% and 19.44%, respectively. BB&T's cash basis
efficiency ratio for the six months was 49.9%, placing BB&T among industry
leaders in efficiency. Including nonrecurring items, net income for the six
months ended June 30, 1999, was $291.2 million, a 17.2% increase compared to the
same period in 1998.
MORE
<PAGE>
In an analysis of 48 large bank holding companies published by Salomon
Smith Barney during the second quarter, BB&T ranked as the second highest
performing company in terms of profitability, growth, expense control, fee
income, capital adequacy and asset quality.
On April 28, BB&T announced an agreement to merge with First Liberty
Financial Corp. (First Liberty), headquartered in Macon, Ga. First Liberty, with
approximately $1.7 billion in assets, operates 39 banking offices and 13
consumer finance offices in Macon and Savannah, Ga. and neighboring areas. First
Liberty will be BB&T's second acquisition in the state of Georgia following the
July 9 merger with First Citizens Corporation in the metro Atlanta area. BB&T
will further expand its franchise during the third quarter of 1999 through the
acquisitions of Mason-Dixon Bancshares, Inc., of Westminster, Md., and Matewan
BancShares Inc., of Williamson, W.Va.
BB&T Insurance Services expanded its agency network during the second
quarter by purchasing five independent agencies and the entire book of business
of a sixth agency. BB&T purchased the business of Mays Insurance of Greensboro,
N.C., and completed the acquisitions of Old Dominion Insurance Services, with
offices in Radford, Pulaski and Christiansburg, Va., Givens & Williams Inc.,
located in Fairfax, Va., E.W. Barger & Company, with offices in Charlottesville,
Covington, Harrisonburg, Lexington, Richmond and Waynesboro, Va., G.C. Wright
Co. Inc., of Petersburg, Va. and James River Title Agency, Inc., in Richmond,
Va. BB&T Insurance Services is the largest independent insurance agency network
in the Carolinas and the 16th largest in the country.
On June 22, BB&T's board of directors approved a 14.3% increase in the
quarterly cash dividend paid to shareholders. The increase, to $.20 per share,
marks the 27th consecutive year BB&T has increased the quarterly cash dividend.
The dividend is payable Aug. 2 to shareholders of record on July 16.
At June 30, BB&T had $39.2 billion in assets and 575 banking offices in the
Carolinas, Virginia, Maryland and Washington, D.C. BB&T's common stock is traded
on the New York Stock Exchange under the trading symbol BBT.
The closing price of BB&T's common stock on July 12 was $35.44 per share.
<PAGE>
===============================================================================
===============================================================================
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 3 Investor Relations FAX(336) 733-3132
===============================================================================
<TABLE>
<CAPTION>
For the Three Months Ended Increase (Decrease)
---------------------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/99 6/30/98 $ %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME STATEMENT
Interest income - taxable equivalent $ 724,034 $ 669,157 $ 54,877 8.2 %
Interest expense 340,430 329,680 10,750 3.3
Net interest income - taxable equivalent 383,604 339,477 44,127 13.0
Less: Taxable equivalent adjustment 21,328 16,016 5,312 33.2
Net interest income 362,276 323,461 38,815 12.0
Provision for loan & lease losses 20,000 23,038 (3,038) (13.2)
Net interest income after provision for
loan & lease losses 342,276 300,423 41,853 13.9
Noninterest income 184,196 134,667 49,529 36.8
Noninterest expense 302,119 247,908 54,211 21.9
Income before income taxes 224,353 187,182 37,171 19.9
Provision for income taxes 71,561 59,143 12,418 21.0
Net income $ 152,792 $ 128,039 $ 24,753 19.3 %
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PER SHARE DATA
Basic earnings $ .50 $ .42 $ .08 19.0 %
Diluted earnings .49 .41 .08 19.5
Weighted average shares - Basic 306,431,875 302,781,582
Diluted 312,377,609 309,028,401
Dividends paid on common shares $ .175 $ .155 $ .02 12.9 %
- ------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.60 % 1.50 %
Return on average equity 20.70 19.52
Net yield on earning assets (taxable equivalent) 4.29 4.25
Efficiency (taxable equivalent) * 52.8 52.3
- ------------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings $ 163,022 $ 133,473 $ 29,549 22.1 %
Diluted cash basis earnings per share .52 .43 .09 20.9
Return on average tangible assets 1.73 % 1.58 %
Return on average tangible equity 26.59 22.38
Efficiency ratio (taxable equivalent) * 50.9 51.1
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the Six Months Ended Increase (Decrease)
-----------------------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/99 6/30/98 $ %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME STATEMENT
Interest income - taxable equivalent $ 1,409,371 $ 1,324,846 $ 84,525 6.4
Interest expense 663,209 650,464 12,745 2.0
Net interest income - taxable equivalent 746,162 674,382 71,780 10.6
Less: Taxable equivalent adjustment 39,509 31,581 7,928 25.1
Net interest income 706,653 642,801 63,852 9.9
Provision for loan & lease losses 40,000 46,476 (6,476) (13.9)
Net interest income after provision
for loan & lease losses 666,653 596,325 70,328 11.8
Noninterest income 345,380 260,091 85,289 32.8
Noninterest expense 583,927 492,924 91,003 18.5
Income before income taxes 428,106 363,492 64,614 17.8
Provision for income taxes 136,891 115,008 21,883 19.0
Net income $ 291,215 $ 248,484 $ 42,731 17.2 %
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Basic earnings $ .95 $ .82 $ .13 15.9 %
Diluted earnings .93 .80 .13 16.3
Weighted average shares - Basic 306,448,974 303,818,538
Diluted 312,465,148 310,149,293
Dividends paid on common shares $ .35 $ .31 $ .04 12.9 %
- ------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.57 % 1.49 %
Return on average equity 19.91 18.98
Net yield on earning assets (taxable equivalent) 4.28 4.29
Efficiency (taxable equivalent) * 51.8 52.0
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES Applicable ratios are annualized. All per share data (and weighted
average shares) have been restated to reflect the 2-for-1 stock split
effective on August 3, 1998.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
** 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 amortization of nonqualifying intangible assets from earnings and
the unamortized balances of nonqualifying intangibles from assets and
equity.
<PAGE>
================================================================================
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 4 Investor Relations FAX (336) 733-3132
================================================================================
<TABLE>
<CAPTION>
For the Six Months Ended Increase (Decrease)
-----------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/99 6/30/98 $ %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 1,409,371 $ 1,324,846 $ 84,525 6.4 %
Interest expense 663,209 650,464 12,745 2.0
Net interest income - taxable equivalent 746,162 674,382 71,780 10.6
Less: Taxable equivalent adjustment 39,509 31,581 7,928 25.1
Net interest income 706,653 642,801 63,852 9.9
Provision for loan & lease losses 40,000 46,476 (6,476) (13.9)
Net interest income after provision for loan & lease losses 666,653 596,325 70,328 11.8
Noninterest income 345,380 260,091 85,289 32.8
Noninterest expense 568,086 485,109 82,977 17.1
Income before income taxes 443,947 371,307 72,640 19.6
Provision for income taxes 142,346 116,800 25,546 21.9
Net income excluding nonrecurring items 301,601 254,507 47,094 18.5
Nonrecurring items, net of tax 10,386 6,023 4,363 NM
Net income $ 291,215 $ 248,484 $ 42,731 17.2 %
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .98 $ .84 $ .14 16.7 %
Diluted earnings .97 .82 .15 18.3
Weighted average shares - Basic 306,448,974 303,818,538
Diluted 312,465,148 310,149,293
Dividends paid on common shares $ .35 $ .31 $ .04 12.9 %
- ------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.62 % 1.52 %
Return on average equity 20.62 19.44
Net yield on earning assets (taxable equivalent) 4.28 4.29
Efficiency (taxable equivalent) * 51.8 52.0
- ------------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings excluding nonrecurring items $ 320,627 $ 265,072 $ 55,555 21.0 %
Diluted cash basis earnings per share 1.03 .85 .18 21.2
Return on average tangible assets 1.75 % 1.60 %
Return on average tangible equity 25.98 22.23
Efficiency ratio (taxable equivalent) * 49.9 50.7
</TABLE>
- --------------------------------------------------------------------------------
NOTES: Applicable ratios are annualized. All per share data (and weighted
average shares) have been restated to reflect the 2-for-1 stock split
effective on August 3, 1998.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
** 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 amortization of nonqualifying intangible assets from earnings and
the unamortized balances of nonqualifying intangibles from assets and
equity.
NM - not meaningful.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 5 Investor Relations FAX (336) 733-3132
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
As of / For the Six Months Ended Increase (Decrease)
-----------------------------------------------------------------------------
(Dollars in thousands) 6/30/99 6/30/98 $ %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value** $10,338,874 $8,468,000 $1,870,874 22.1 %
Commercial loans & leases 13,008,206 10,982,679 2,025,527 18.4
Consumer loans 6,311,215 5,691,420 619,795 10.9
Revolving credit loans 566,842 521,458 45,384 8.7
Mortgage loans 5,498,730 6,136,786 (638,056) (10.4)
Total loans & leases** 25,384,993 23,332,343 2,052,650 8.8
Allowance for loan & lease losses 343,856 308,968 34,888 11.3
Other earning assets 634,381 199,359 435,022 218.2
Total earning assets 36,539,171 31,916,121 4,623,050 14.5
Total assets 39,184,864 34,276,386 4,908,478 14.3
Noninterest-bearing deposits 3,477,699 3,208,650 269,049 8.4
Savings & interest checking 1,638,290 1,845,448 (207,158) (11.2)
Money rate savings 7,054,675 5,897,146 1,157,529 19.6
Time deposits 11,361,761 11,295,291 66,470 .6
Other deposits 737,575 559,057 178,518 31.9
Total deposits 24,270,000 22,805,592 1,464,408 6.4
Short-term borrowed funds 6,343,442 4,035,630 2,307,812 57.2
Long-term debt 5,162,749 4,284,910 877,839 20.5
Total interest-bearing liabilities 32,298,492 27,917,482 4,381,010 15.7
Total shareholders' equity $ 2,832,039 $2,633,798 $ 198,241 7.5 %
- ------------------------------------------------------------------------------------------------------------------------------------
Average balances
Securities, at amortized cost** $ 9,687,220 $8,571,378 $1,115,842 13.0 %
Commercial loans & leases 12,474,996 10,659,921 1,815,075 17.0
Consumer loans 6,123,779 5,623,730 500,049 8.9
Revolving credit loans 535,598 505,818 29,780 5.9
Mortgage loans 5,886,031 5,976,972 (90,941) (1.5)
Total loans & leases** 25,020,404 22,766,441 2,253,963 9.9
Other earning assets 260,878 226,321 34,557 15.3
Total earning assets 34,968,502 31,564,140 3,404,362 10.8
Total assets 37,506,983 33,723,122 3,783,861 11.2
Noninterest-bearing deposits 3,334,633 2,987,654 346,979 11.6
Savings & interest checking 1,772,604 2,005,882 (233,278) (11.6)
Money rate savings 6,901,406 5,598,218 1,303,188 23.3
Time deposits 11,410,043 10,881,535 528,508 4.9
Other deposits 865,347 862,380 2,967 .3
Total deposits 24,284,033 22,335,669 1,948,364 8.7
Short-term borrowed funds 4,567,574 4,321,572 246,002 5.7
Long-term debt 5,106,913 3,897,052 1,209,861 31.0
Total interest-bearing liabilities 30,623,887 27,566,639 3,057,248 11.1
Total shareholders' equity $ 2,949,308 $2,640,689 $ 308,619 11.7 %
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
As of / For the Quarter Ended
-----------------------------------------------------------------------
(Dollars in thousands) 6/30/99 3/31/99 12/31/98 9/30/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MISCELLANEOUS INFORMATION
Unrealized (depreciation) appreciation on
securities available for sale, net of tax $ (112,725) $ 29,737 $ 60,974 $ 97,462 $ 51,818
Derivatives (notional value) 1,957,264 3,265,143 3,743,596 3,562,148 3,100,396
Unrealized gain on derivatives portfolio 15,218 26,448 38,458 46,120 29,126
Common stock prices (daily close): High 40.25 40.44 40.63 36.03 34.06
Low 33.81 34.94 27.31 28.00 32.03
End of period 36.69 36.19 40.31 29.94 33.81
Weighted average shares - Basic 306,431,875 306,466,263 307,145,230 300,907,991 302,781,582
Diluted 312,377,609 312,553,659 313,463,399 306,675,982 309,028,401
End of period shares outstanding* 306,051,309 307,297,316 306,963,976 307,475,558 151,290,516
End of period banking offices 575 581 583 589 571
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES: All items referring to loans & leases include loans held for sale & are
net of unearned income.
Applicable ratios are annualized. All per share data (and weighted
average shares) have been restated to reflect the 2-for-1 stock split
effective on August 3, 1998.
* End of period shares reflect the 2-for-1 stock split following the
August 3, 1998, effective date. Shares reflected prior to August 3,
1998 are stated as originally reported.
** Balances reflect the securitization of $465.3 million of loans during
1998. The increase in end of period loans, excluding the impact of the
securitizations, was 10.8%.
The increase in average loans, excluding the securitizations, was
11.9%.
<PAGE>
================================================================================
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 6 Investor Relations FAX (336) 733-3132
================================================================================
<TABLE>
<CAPTION>
As of / For the Quarter Ended
--------------------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/99 3/31/99 12/31/98 9/30/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
Interest & fees on loans & leases $ 549,709 $ 533,480 $ 540,624 $ 534,161 $ 521,240
Interest & dividends on securities 168,784 150,400 153,180 142,005 144,899
Interest on short-term investments 5,541 1,457 2,367 2,298 3,018
Total interest income - taxable equivalent 724,034 685,337 696,171 678,464 669,157
Interest expense
Interest on deposits 210,808 209,759 217,404 214,244 213,175
Interest on short-term borrowed funds 59,468 46,262 51,649 52,767 59,607
Interest on long-term debt 70,154 66,758 66,463 63,287 56,898
Total interest expense 340,430 322,779 335,516 330,298 329,680
Net interest income - taxable equivalent 383,604 362,558 360,655 348,166 339,477
Less: Taxable equivalent adjustment 21,328 18,181 18,003 16,490 16,016
Net interest income 362,276 344,377 342,652 331,676 323,461
Provision for loan & lease losses 20,000 20,000 17,764 21,229 23,038
Net interest income after provision for
loan & lease losses 342,276 324,377 324,888 310,447 300,423
Noninterest income
Service charges on deposits 47,313 47,624 45,184 43,881 43,324
Mortgage banking activities 32,569 32,798 18,309 22,703 23,261
Investment banking & brokerage fees 37,836 13,769 10,483 11,400 11,178
Trust revenue 12,957 12,714 12,172 11,043 8,991
Agency insurance commissions 16,820 16,882 13,499 12,399 12,231
Other insurance commissions 2,642 2,846 3,469 2,849 3,265
Other nondeposit fees & commissions 26,448 22,450 23,411 22,577 20,093
Securities (losses) gains, net (3,024) 61 1,774 2,114 1,293
Other income 10,635 12,040 14,260 12,011 11,031
Total noninterest income 184,196 161,184 142,561 140,977 134,667
Noninterest expense
Personnel expense 158,624 135,690 132,640 126,779 124,776
Occupancy & equipment expense 47,129 44,176 38,935 41,308 41,731
Foreclosed property expense 642 711 418 270 724
Amortization of intangibles & servicing rights 16,544 15,836 16,689 11,283 11,238
Other noninterest expense 79,180 69,554 74,876 71,763 69,439
Total noninterest expense 302,119 265,967 263,558 251,403 247,908
Income before income taxes 224,353 219,594 203,891 200,021 187,182
Provision for income taxes 71,561 70,785 64,282 63,189 59,143
Net income $ 152,792 $ 148,809 $ 139,609 $ 136,832 $ 128,039
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .50 $ .49 $ .45 $ .45 $ .42
Diluted earnings .49 .48 .45 .45 .41
Dividends paid on common shares .175 .175 .175 .175 .155
Book value per common share $ 9.25 $ 9.59 $ 9.53 $ 9.48 $ 8.70
- ------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.60 % 1.65 % 1.53 % 1.59 % 1.50 %
Return on average equity 20.70 20.54 18.85 20.71 19.52
Net yield on earning assets (taxable equivalent) 4.29 4.28 4.28 4.36 4.25
Efficiency (taxable equivalent) * 52.8 50.7 52.5 51.6 52.3
Noninterest income as a percentage of total
income (taxable equivalent) * 32.8 30.8 28.1 28.5 28.2
Equity as a percentage of total assets
end of period 7.2 7.8 8.0 8.1 7.7
Average earning assets as a percentage
of average total assets 93.3 93.2 92.9 93.6 93.7
Average loans & leases as a percentage
of average deposits 103.1 103.0 102.3 103.4 102.6
- ------------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings excluding nonrecurring items $ 163,022 $ 157,605 $ 148,031 $ 142,664 $ 133,473
Diluted cash basis earnings per share .52 .50 .47 .47 .43
Return on average tangible assets 1.73 % 1.77 % 1.64 % 1.68 % 1.58 %
Return on average tangible equity 26.59 25.38 23.25 23.98 22.38
Efficiency ratio (taxable equivalent) * 50.9 48.9 50.8 50.4 51.1
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES: Applicable ratios are annualized. All per share data (and weighted
average shares) have been restated to reflect the 2-for-1 stock split
effective on August 3, 1998.
* Excludes securities gains (losses), foreclosed property expense &
nonrecurring items.
** 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 amortization of nonqualifying intangible assets from
earnings and the unamortized balances of nonqualifying intangibles
from assets and equity.
<PAGE>
================================================================================
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 7 Investor Relations FAX (336) 733-3132
================================================================================
<TABLE>
<CAPTION>
As of / For the Quarter Ended
--------------------------------------------------------------------------------------
(Dollars in thousands) 6/30/99 3/31/99 12/31/98 9/30/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $ 10,338,874 $ 10,017,923 $ 8,973,093 $ 9,190,255 $ 8,468,000
Commercial loans & leases 13,008,206 12,485,114 11,957,104 11,512,526 10,982,679
Consumer loans 6,311,215 6,093,657 5,953,155 5,893,935 5,691,420
Revolving credit loans 566,842 534,494 537,628 516,612 521,458
Mortgage loans 5,498,730 5,862,814 6,270,581 6,252,524 6,136,786
Total loans & leases 25,384,993 24,976,079 24,718,468 24,175,597 23,332,343
Allowance for loan & lease losses 343,856 337,983 330,615 328,244 308,968
Other earning assets 634,381 252,605 112,141 253,526 199,359
Total earning assets 36,539,171 35,198,756 33,704,364 33,459,563 31,916,121
Total assets 39,184,864 37,791,490 36,388,330 35,964,038 34,276,386
Noninterest-bearing deposits 3,477,699 3,352,359 3,465,362 3,256,957 3,208,650
Savings & interest checking 1,638,290 1,698,423 1,783,491 1,832,917 1,845,448
Money rate savings 7,054,675 7,080,509 7,021,556 6,131,830 5,897,146
Time deposits 11,361,761 11,402,439 11,349,083 11,323,119 11,295,291
Other deposits 737,575 880,405 638,676 788,392 559,057
Total deposits 24,270,000 24,414,135 24,258,168 23,333,215 22,805,592
Short-term borrowed funds 6,343,442 4,668,966 3,707,333 4,518,138 4,035,630
Long-term debt 5,162,749 5,187,639 4,964,797 4,614,203 4,284,910
Total interest-bearing liabilities 32,298,492 30,918,381 29,464,936 29,208,599 27,917,482
Total shareholders' equity 2,832,039 2,948,357 2,923,888 2,913,498 2,633,798
Goodwill 483,705 469,679 391,925 398,148 245,566
Core deposit & other intangibles 9,286 7,879 7,820 6,658 7,010
Total intangibles 492,991 477,558 399,745 404,806 252,576
Mortgage servicing rights 133,171 116,741 101,277 98,433 87,519
Negative goodwill $ 23,628 $ 25,189 $ 26,749 $ 28,310 $ 29,871
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Average balances
Securities, at amortized cost $ 10,222,359 $ 9,146,135 $ 9,151,670 $ 8,376,487 $ 8,630,609
Commercial loans & leases 12,768,935 12,177,791 11,681,860 11,182,499 10,799,284
Consumer loans 6,216,913 6,029,609 5,922,789 5,730,569 5,664,113
Revolving credit loans 541,798 529,330 516,362 508,348 500,918
Mortgage loans 5,672,750 6,101,682 6,185,505 5,887,294 6,182,014
Total loans & leases 25,200,396 24,838,412 24,306,516 23,308,710 23,146,329
Other earning assets 394,035 126,241 163,996 166,276 216,175
Total earning assets 35,816,790 34,110,788 33,622,182 31,851,473 31,993,113
Total assets 38,393,580 36,610,535 36,178,328 34,038,818 34,148,967
Noninterest-bearing deposits 3,385,402 3,283,300 3,335,109 3,141,416 3,069,532
Savings & interest checking 1,760,553 1,784,789 1,864,734 1,864,715 1,959,573
Money rate savings 6,954,090 6,848,137 6,402,529 5,944,744 5,750,932
Time deposits 11,394,724 11,427,555 11,329,463 10,641,446 10,916,926
Other deposits 952,165 775,542 822,919 940,513 865,103
Total deposits 24,446,934 24,119,323 23,754,754 22,532,834 22,562,066
Short-term borrowed funds 5,140,023 3,988,764 4,153,424 3,941,189 4,495,242
Long-term debt 5,238,732 4,973,629 4,749,282 4,393,450 3,903,859
Total interest-bearing liabilities 31,440,287 29,798,416 29,322,351 27,726,057 27,891,635
Total shareholders' equity $ 2,960,652 $ 2,937,838 $ 2,938,976 $ 2,621,143 $ 2,631,041
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RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 2,500,012 $ 2,487,490 $ 2,508,490 $ 2,452,529 $ 2,371,459
Total 3,586,651 3,621,455 3,629,292 3,569,019 3,511,801
Risk-based capital ratios:
Tier 1 9.5 % 9.7 % 10.3 % 10.5 % 10.5 %
Total 13.7 14.2 15.0 15.3 15.6
Leverage capital ratio 6.6 6.9 7.0 7.3 7.0
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</TABLE>
NOTES: All items referring to loans & leases include loans held for sale & are
net of unearned income.
Applicable ratios are annualized.
<PAGE>
================================================================================
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 8 Investor Relations FAX (336) 733-3132
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<TABLE>
<CAPTION>
As of / For the Quarter Ended
-------------------------------------------------------------------------
(Dollars in thousands) 6/30/99 3/31/99 12/31/98 9/30/98 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
Beginning balance $ 337,983 $ 330,615 $ 328,244 $ 308,968 $ 301,191
Allowance for acquired loans 169 - - 15,542 1,269
Provision for loan & lease losses 20,000 20,000 22,765 21,229 23,038
Charge-offs (20,754) (18,259) (25,582) (22,835) (21,739)
Recoveries 6,458 5,627 5,188 5,340 5,209
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Net charge-offs (14,296) (12,632) (20,394) (17,495) (16,530)
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Ending balance $ 343,856 $ 337,983 $ 330,615 $ 328,244 $ 308,968
====================================================================================================================================
Nonperforming Assets
Nonaccrual loans & leases $ 77,084 $ 86,457 $ 88,847 $ 89,067 $ 84,062
Foreclosed real estate 14,042 18,969 17,428 21,778 20,761
Other foreclosed property 8,487 10,539 11,548 11,669 14,189
Restructured loans 747 520 522 525 528
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Nonperforming assets $ 100,360 $ 116,485 $ 118,345 $ 123,039 $ 119,540
====================================================================================================================================
Loans 90 days or more past due
& still accruing $ 44,195 $ 40,948 $ 54,226 $ 51,107 $ 52,881
====================================================================================================================================
Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases .31 % .35 % .36 % .37 % .36 %
Nonperforming assets as a percentage of:
Total assets .26 .31 .33 .34 .35
Loans & leases plus
foreclosed property .40 .47 .48 .51 .51
Net charge-offs as a percentage of
average loans & leases .23 .21 .33 .30 .29
Allowance for loan & lease losses as
a percentage of loans & leases 1.35 1.35 1.34 1.36 1.32
Ratio of allowance for loan & lease losses to:
Net charge-offs 6.00 x 6.60 x 4.09 x 4.73 x 4.66 x
Nonaccrual and restructured loans & leases 4.42 3.89 3.70 3.66 3.65
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<CAPTION>
As of / for the Six Months Ended Increase (Decrease)
---------------------------------------------------------------------------
6/30/99 6/30/98 $ %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Allowance For Loan & Lease Losses
Beginning balance $ 330,615 $ 292,667 $ 37,948 13.0 %
Allowance for acquired loans 169 2,127 (1,958) (92.1)
Provision for loan & lease losses 40,000 46,476 (6,476) (13.9)
Charge-offs (39,013) (43,204) (4,191) (9.7)
Recoveries 12,085 10,902 1,183 10.9
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Net charge-offs (26,928) (32,302) (5,374) (16.6)
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Ending balance $ 343,856 $ 308,968 $ 34,888 11.3 %
====================================================================================================================================
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .22 % .29 %
Ratio of allowance for loan & lease losses to
net charge-offs 6.33 x 4.74 x
====================================================================================================================================
<CAPTION>
For the Quarter Ended
------------------------------------------------------------------------------------
6/30/99 3/31/99 12/31/98 9/30/98 6/30/98
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<S> <C> <C> <C> <C> <C>
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
Securities* 6.61 % 6.59 % 6.69 % 6.77 % 6.72 %
Loans & leases 8.74 8.68 8.84 9.11 9.03
Other earning assets 5.64 4.68 5.73 5.48 5.60
------------------------------------------------------------------------------------
Total earning assets* 8.10 8.11 8.24 8.47 8.38
------------------------------------------------------------------------------------
Interest expense:
Interest-bearing deposits 4.01 4.08 4.22 4.38 4.39
Short-term borrowed funds 4.64 4.70 4.93 5.31 5.32
Long-term debt 5.36 5.41 5.58 5.74 5.84
------------------------------------------------------------------------------------
Total interest-bearing liabilities 4.34 4.39 4.54 4.73 4.74
------------------------------------------------------------------------------------
Net yield on earning assets 4.29 % 4.28 % 4.28 % 4.36 % 4.25 %
====================================================================================
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</TABLE>
NOTES: *Yields calculated based on securities at amortized cost.
All items referring to loans & leases include loans held for sale & are
net of unearned income.
Applicable ratios are annualized.
