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 12, 1999
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 12 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 1999,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued April 12, 1999
<PAGE>
BB&T Corporation (NYSE:BBT) reported today that first quarter 1999
earnings totaled $148.8 million, or $.48 per diluted share, before after-tax
charges of $10.4 million associated with completing the acquisition of
MainStreet Financial Corporation (MainStreet) of Martinsville, Va. Excluding
merger-related expenses, BB&T's net income increased 17.7% compared to
recurring net income in the first quarter of 1998. Earnings per diluted share
for the first quarter of 1999 increased 17.1% from the $.41 per share earned
on a recurring basis in the first quarter of 1998.
BB&T's recurring results for the first quarter of 1999 produced a return on
average assets of 1.65% and a return on average equity of 20.54%, compared to
prior year ratios of 1.54% and 19.35%, respectively. BB&T's efficiency ratio for
the first quarter of 1999 improved to 50.7%, compared to 51.6% in the first
quarter of 1998.
Including the effects of merger-related expenses, net income totaled $138.4
million, a 14.9% increase compared to the $120.4 million earned in the first
quarter of 1998. On a diluted per share basis, net income was $.44 for the first
three months of 1999 compared to $.39 in the first quarter of 1998.
BB&T's "cash basis" earnings, which exclude the effect of intangible assets
and related amortization expense, increased significantly in the first quarter
of 1999 compared to 1998. For the three months ended March 31, 1999, cash basis
net income, excluding nonrecurring items, totaled $157.6 million, an increase of
19.8% compared to $131.6 million earned in the first quarter of 1998. On a
diluted per share basis, recurring cash basis earnings totaled $.50 for the
first quarter, an increase of 19.0% compared to 1998. Exclusive of nonrecurring
charges, cash basis operating results for the first quarter of 1999 produced an
annualized return on average tangible assets of 1.77%, an annualized return on
average tangible shareholders' equity of 25.38% and an efficiency ratio of
48.9%.
"We are very pleased to report strong first quarter earnings,"
said Chairman and Chief Executive Officer John A. Allison. "We believe
that our financial results this quarter reflect solid progress toward our goal
of consistently performing among the top 5% of bank holding companies. In its
March 29 issue, Business Week magazine named BB&T as the second highest
performing S&P 500 bank holding company in the country, based on strength
in revenues, profitability, return to shareholders and return on equity. This
recognition indicates that we are succeeding in our efforts."
During the first quarter, BB&T announced plans to expand its franchise to
Georgia, West Virginia and Kentucky, and further expand its presence in Maryland
and Virginia. On Jan. 27, 1999, BB&T announced plans to acquire First Citizens
Corporation (First Citizens) of Newnan, Ga. First Citizens, with approximately
$421 million in assets, conducts its operations through 13 branches and one
mortgage office in south metro Atlanta. This acquisition provides BB&T with an
initial entry into the largest metropolitan statistical area in the Southeast
and a major financial center on the East Coast.
On Jan. 28, 1999, BB&T announced an agreement to merge with Mason-Dixon
Bancshares Inc. (Mason-Dixon) of Westminster, Md. Mason-Dixon, with
approximately $1.1 billion in assets, operates 23 full-service banking offices,
12 consumer finance offices and three mortgage loan offices in Maryland.
On Feb. 25, 1999, BB&T announced plans to acquire Matewan BancShares Inc.
(Matewan) of Williamson, W.Va. Matewan, with approximately $676 million in
assets, operates 22 banking offices and one mortgage loan office in southwestern
Virginia, southern West Virginia and eastern Kentucky.
BB&T completed two significant mergers during the first quarter. On March
5, 1999, BB&T consummated its merger with MainStreet. With $2.3 billion in
assets, MainStreet operates 46 full-service banking offices in Virginia and
three in Maryland. The transaction increases the size of BB&T's Virginia / metro
Washington, D.C. operations to approximately $6.6 billion in assets. On March
26, 1999, BB&T completed its purchase of Scott & Stringfellow Financial, Inc.,
an investment banking and retail brokerage firm based in Richmond, Va. Scott &
Stringfellow manages more than $10 billion in assets for its customers through
32 offices located in the Carolinas, Virginia and West Virginia.
BB&T Insurance Services continued to expand its agency network during the
first quarter. The acquisition of Huffines-Russell Insurance Agency, an
independent agency located in metro Atlanta, Ga., was completed on March 1,
1999, and the proposed acquisition of Old Dominion Insurance Services, which has
offices in Radford, Pulaski and Christiansburg, Va., was announced on March 15.
"Among our primary objectives for 1999 is the pursuit of strategic mergers
and acquisitions that are advantageous to BB&T and make sense from an economic
perspective. Our announced acquisitions during the first quarter are consistent
with our stated growth strategy and will add to the overall value of our
franchise," said Allison.
At March 31, 1999, BB&T had $37.8 billion in assets and 581 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 April 9 was $37.44 per share.
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 3 Investor Relations FA(336) 733-3132
<CAPTION>
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 3/31/1999 3/31/1998 $ %
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 685,337 $ 655,689 $ 29,648 4.5 %
Interest expense 322,779 320,784 1,995 .6
Net interest income - taxable equivalent 362,558 334,905 27,653 8.3
Less: Taxable equivalent adjustment 18,181 15,565 2,616 16.8
Net interest income 344,377 319,340 25,037 7.8
Provision for loan & lease losses 20,000 23,438 (3,438) (14.7)
Net interest income after provision for loan
& lease losses 324,377 295,902 28,475 9.6
Noninterest income 161,184 125,424 35,760 28.5
Noninterest expense 281,808 245,016 36,792 15.0
Income before income taxes 203,753 176,310 27,443 15.6
Provision for income taxes 65,330 55,865 9,465 16.9
Net income $ 138,423 $ 120,445 $ 17,978 14.9 %
PER SHARE DATA
Basic earnings $ .45 $ .40 $ .05 12.5 %
Diluted earnings .44 .39 .05 12.8
Weighted average shares - Basic 306,466,263 304,867,015
Diluted 312,553,659 311,282,640
Dividends paid on common shares $ .175 $ .155 $ .02 12.9 %
PERFORMANCE RATIOS
Return on average assets 1.53 % 1.47 %
Return on average equity 19.11 18.43
Net yield on earning assets (taxable equivalent) 4.28 4.33
Efficiency (taxable equivalent) * 50.7 51.6
For the Three Months Ended Increase (Decrease)
(Dollars in thousands, except per share data) 3/31/1999 3/31/1998 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 685,337 $ 655,689 $ 29,648 4.5 %
Interest expense 322,779 320,784 1,995 .6
Net interest income - taxable equivalent 362,558 334,905 27,653 8.3
Less: Taxable equivalent adjustment 18,181 15,565 2,616 16.8
Net interest income 344,377 319,340 25,037 7.8
Provision for loan & lease losses 20,000 23,438 (3,438) (14.7)
Net interest income after provision for loan & lease losses 324,377 295,902 28,475 9.6
Noninterest income 161,184 125,424 35,760 28.5
Noninterest expense 265,967 237,201 28,766 12.1
Income before income taxes 219,594 184,125 35,469 19.3
Provision for income taxes 70,785 57,657 13,128 22.8
Net income excluding nonrecurring items 148,809 126,468 22,341 17.7
Nonrecurring items, net of tax 10,386 6,023 4,363 NM
Net income $ 138,423 $ 120,445 $ 17,978 14.9 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .49 $ .41 $ .08 19.5 %
Diluted earnings .48 .41 .07 17.1
Weighted average shares - Basic 306,466,263 304,867,015
Diluted 312,553,659 311,282,640
Dividends paid on common shares $ .175 $ .155 $ .02 12.9 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.65 % 1.54 %
Return on average equity 20.54 19.35
Net yield on earning assets (taxable equivalent) 4.28 4.33
Efficiency (taxable equivalent) * 50.7 51.6
CASH BASIS PERFORMANCE**
Net income excluding nonrecurring items $ 157,605 $ 131,599 $ 26,006 19.8 %
Diluted earnings per share .50 .42 .08 19.0
Return on average tangible assets 1.77 % 1.61 %
Return on average tangible equity 25.38 22.05
Efficiency ratio (taxable equivalent) * 48.9 50.4
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.
NM - not meaningful.
** 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>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 4 Investor Relations FA(336) 733-3132
<CAPTION>
As of / For the Three Months Ended Increase (Decrease)
(Dollars in thousands) 3/31/1999 3/31/1998 $ %
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value $ 10,017,923 $ 8,853,193 $ 1,164,730 13.2 %
Commercial loans & leases 12,472,260 10,628,824 1,843,436 17.3
Consumer loans 6,093,657 5,602,130 491,527 8.8
Revolving credit loans 534,494 505,976 28,518 5.6
Mortgage loans 5,862,814 6,132,840 (270,026) (4.4)
Other loans 12,854 14,879 (2,025) (13.6)
Total loans & leases 24,976,079 22,884,649 2,091,430 9.1
Allowance for loan & lease losses 337,983 301,191 36,792 12.2
Other earning assets 252,605 240,373 12,232 5.1
Total earning assets 35,198,756 31,896,463 3,302,293 10.4
Total assets 37,791,490 34,243,806 3,547,684 10.4
Noninterest-bearing deposits 3,352,359 3,111,570 240,789 7.7
Savings & interest checking 1,698,423 2,066,501 (368,078) (17.8)
Money rate savings 7,080,509 5,638,305 1,442,204 25.6
Certificates of deposit & other time deposits 11,402,439 10,669,163 733,276 6.9
Other deposits 880,405 996,077 (115,672) (11.6)
Total deposits 24,414,135 22,481,616 1,932,519 8.6
Short-term borrowed funds 4,668,966 4,653,550 15,416 .3
Long-term debt 5,187,639 3,942,804 1,244,835 31.6
Total interest-bearing liabilities 30,918,381 27,966,400 2,951,981 10.6
Total shareholders' equity $ 2,948,357 $2,645,580 $ 302,777 11.4 %
Average balances
Securities, at amortized cost $ 9,146,135 $ 8,511,489 $ 634,646 7.5 %
Commercial loans & leases 12,174,190 10,514,562 1,659,628 15.8
Consumer loans 6,029,609 5,582,899 446,710 8.0
Revolving credit loans 529,330 510,771 18,559 3.6
Mortgage loans 6,101,682 5,769,652 332,030 5.8
Other loans 3,601 4,449 (848) (19.1)
Total loans & leases 24,838,412 22,382,333 2,456,079 11.0
Other earning assets 126,241 236,579 (110,338) (46.6)
Total earning assets 34,110,788 31,130,401 2,980,387 9.6
Total assets 36,610,535 33,292,545 3,317,990 10.0
Noninterest-bearing deposits 3,283,300 2,904,866 378,434 13.0
Savings & interest checking 1,784,789 2,052,704 (267,915) (13.1)
Money rate savings 6,848,137 5,443,807 1,404,330 25.8
Certificates of deposit & other time deposits 11,427,555 10,845,751 581,804 5.4
Other deposits 775,542 859,627 (84,085) (9.8)
Total deposits 24,119,323 22,106,755 2,012,568 9.1
Short-term borrowed funds 3,988,764 4,145,971 (157,207) (3.8)
Long-term debt 4,973,629 3,890,169 1,083,460 27.9
Total interest-bearing liabilities 29,798,416 27,238,029 2,560,387 9.4
Total shareholders' equity $ 2,937,838 $ 2,650,444 $ 287,394 10.8 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 5 Investor Relations FA(336) 733-3132
<CAPTION>
As of / For the Quarter Ended
(Dollars in thousands, except per share data) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans & leases $ 533,480 $ 540,624 $ 534,161 $ 521,240 $ 507,411
Interest & dividends on securities 150,400 153,180 142,005 144,899 144,875
Interest on short-term investments 1,457 2,367 2,298 3,018 3,403
Total interest income - taxable equivalent 685,337 696,171 678,464 669,157 655,689
Interest expense
Interest on deposits 209,759 217,404 214,244 213,175 209,292
Interest on short-term borrowed funds 46,262 51,649 52,767 59,607 54,594
Interest on long-term debt 66,758 66,463 63,287 56,898 56,898
Total interest expense 322,779 335,516 330,298 329,680 320,784
Net interest income - taxable equivalent 362,558 360,655 348,166 339,477 334,905
Less: Taxable equivalent adjustment 18,181 18,003 16,490 16,016 15,565
Net interest income 344,377 342,652 331,676 323,461 319,340
Provision for loan & lease losses 20,000 17,764 21,229 23,038 23,438
Net interest income after provision for
loan & lease losses 324,377 324,888 310,447 300,423 295,902
Noninterest income
Service charges on deposits 47,624 45,184 43,881 43,324 42,458
Mortgage banking activities 32,798 18,309 22,703 23,261 15,397
Trust revenue 12,714 12,172 11,043 8,991 8,731
Agency insurance commissions 16,882 13,499 12,399 12,231 14,057
Other insurance commissions 2,846 3,469 2,849 3,265 3,016
Other nondeposit fees & commissions 30,078 29,833 29,412 28,187 25,513
Securities gains, net 61 1,774 2,114 1,293 2,501
Other income 18,181 18,321 16,576 14,115 13,751
Total noninterest income 161,184 142,561 140,977 134,667 125,424
Noninterest expense
Personnel expense 135,690 132,640 126,779 124,776 121,239
Occupancy & equipment expense 44,176 38,935 41,308 41,731 38,761
Foreclosed property expense 711 418 270 724 868
Amortization of intangibles & servicing rights 15,836 16,689 11,283 11,238 10,262
Other noninterest expense 69,554 74,876 71,763 69,439 66,071
Total noninterest expense 265,967 263,558 251,403 247,908 237,201
Income before income taxes 219,594 203,891 200,021 187,182 184,125
Provision for income taxes 70,785 64,282 63,189 59,143 57,657
Net income $ 148,809 $ 139,609 $ 136,832 $ 128,039 $ 126,468
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .49 $ .45 $ .45 $ .42 $ .41
Diluted earnings .48 .45 .45 .41 .41
Dividends paid on common shares .175 .175 .175 .155 .155
Book value per common share $ 9.59 $ 9.53 $ 9.48 $ 8.70 $ 8.68
PERFORMANCE RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.65 % 1.53 % 1.59 % 1.50 % 1.54 %
Return on average equity 20.54 18.85 20.71 19.52 19.35
Net yield on earning assets (taxable
equivalent) 4.28 4.28 4.36 4.25 4.33
Efficiency (taxable equivalent) * 50.7 52.5 51.6 52.3 51.6
Noninterest income as a percentage of total
income (taxable equivalent) * 30.8 28.1 28.5 28.2 26.8
Equity as a percentage of total assets
end of period 7.8 8.0 8.1 7.7 7.7
Average earning assets as a percentage
of average total assets 93.2 92.9 93.6 93.7 93.5
Average loans & leases as a percentage
of average deposits 103.0 102.3 103.4 102.6 101.2
CASH BASIS PERFORMANCE**
Net income excluding nonrecurring items $ 157,605 $ 148,031 $ 142,664 $ 133,473 $ 131,599
Diluted earnings per share .50 .47 .47 .43 .42
Return on average tangible assets 1.77 % 1.64 % 1.68 % 1.58 % 1.61 %
Return on average tangible equity 25.38 23.25 23.98 22.38 22.05
Efficiency ratio (taxable equivalent) * 48.9 50.8 50.4 51.1 50.4
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 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.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 6 Investor Relations FA(336) 733-3132
<CAPTION>
As of / For the Quarter Ended
(Dollars in thousands) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value $ 10,017,923 $ 8,973,093 $ 9,190,255 $ 8,468,000 $ 8,853,193
Commercial loans & leases 12,472,260 11,948,222 11,502,619 10,970,315 10,628,824
Consumer loans 6,093,657 5,953,155 5,893,935 5,691,420 5,602,130
Revolving credit loans 534,494 537,628 516,612 521,458 505,976
Mortgage loans 5,862,814 6,270,581 6,252,524 6,136,786 6,132,840
Other loans 12,854 8,882 9,907 12,364 14,879
Total loans & leases 24,976,079 24,718,468 24,175,597 23,332,343 22,884,649
Allowance for loan & lease losses 337,983 330,615 328,244 308,968 301,191
Other earning assets 252,605 112,141 253,526 199,359 240,373
Total earning assets 35,198,756 33,704,364 33,459,563 31,916,121 31,896,463
Total assets 37,791,490 36,388,330 35,964,038 34,276,386 34,243,806
Noninterest-bearing deposits 3,352,359 3,465,362 3,256,957 3,208,650 3,111,570
Savings & interest checking 1,698,423 1,783,491 1,832,917 1,845,448 2,066,501
Money rate savings 7,080,509 7,021,556 6,131,830 5,897,146 5,638,305
Certificates of deposit & other
time deposits 11,402,439 11,349,083 11,323,119 11,295,291 10,669,163
Other deposits 880,405 638,676 788,392 559,057 996,077
Total deposits 24,414,135 24,258,168 23,333,215 22,805,592 22,481,616
Short-term borrowed funds 4,668,966 3,707,333 4,518,138 4,035,630 4,653,550
Long-term debt 5,187,639 4,964,797 4,614,203 4,284,910 3,942,804
Total interest-bearing liabilities 30,918,381 29,464,936 29,208,599 27,917,482 27,966,400
Total shareholders' equity 2,948,357 2,923,888 2,913,498 2,633,798 2,645,580
Goodwill 469,679 391,925 398,148 245,566 224,785
Core deposit & other intangibles 7,879 7,820 6,658 7,010 7,000
Total intangibles 477,558 399,745 404,806 252,576 231,785
Mortgage servicing rights 116,741 101,277 98,433 87,519 72,353
Negative goodwill $ 25,189 $ 26,749 $ 28,310 $ 29,871 $ 31,431
Average balances
Securities, at amortized cost $ 9,146,135 $ 9,151,670 $ 8,376,487 $ 8,630,609 $ 8,511,489
Commercial loans & leases 12,174,190 11,676,077 11,174,578 10,792,236 10,514,562
Consumer loans 6,029,609 5,922,789 5,730,569 5,664,113 5,582,899
Revolving credit loans 529,330 516,362 508,348 500,918 510,771
Mortgage loans 6,101,682 6,185,505 5,887,294 6,182,014 5,769,652
Other loans 3,601 5,783 7,921 7,048 4,449
Total loans & leases 24,838,412 24,306,516 23,308,710 23,146,329 22,382,333
Other earning assets 126,241 163,996 166,276 216,175 236,579
Total earning assets 34,110,788 33,622,182 31,851,473 31,993,113 31,130,401
Total assets 36,610,535 36,178,328 34,038,818 34,148,967 33,292,545
Noninterest-bearing deposits 3,283,300 3,335,109 3,141,416 3,069,532 2,904,866
Savings & interest checking 1,784,789 1,864,734 1,864,715 1,959,573 2,052,704
Money rate savings 6,848,137 6,402,529 5,944,744 5,750,932 5,443,807
Certificates of deposit & other
time deposits 11,427,555 11,329,463 10,641,446 10,916,926 10,845,751
Other deposits 775,542 822,919 940,513 865,103 859,627
Total deposits 24,119,323 23,754,754 22,532,834 22,562,066 22,106,755
Short-term borrowed funds 3,988,764 4,153,424 3,941,189 4,495,242 4,145,971
Long-term debt 4,973,629 4,749,282 4,393,450 3,903,859 3,890,169
Total interest-bearing liabilities 29,798,416 29,322,351 27,726,057 27,891,635 27,238,029
Total shareholders' equity $ 2,937,838 $ 2,938,976 $ 2,621,143 $ 2,631,041 $ 2,650,444
RISK-BASED CAPITAL*
Risk-based capital:
Tier 1 $ 2,486,137 $ 2,508,490 $ 2,452,529 $ 2,371,459 $ 2,411,180
Total 3,620,978 3,629,292 3,569,019 3,511,801 3,184,480
Risk-based capital ratios:
Tier 1 9.7 % 10.3 % 10.5 % 10.5 % 10.8 %
Total 14.1 15.0 15.3 15.6 14.3
Leverage capital ratio 6.9 7.0 7.3 7.0 7.3
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.
* Current quarter estimated.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 7 Investor Relations FA(336) 733-3132
<CAPTION>
As of / For the Quarter Ended
(Dollars in thousands, except per share data) 3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 330,615 $ 328,244 $ 308,968 $ 301,191 $ 292,667
Allowance for acquired loans - - 15,542 1,269 858
Provision for loan & lease losses 20,000 22,765 21,229 23,038 23,438
Charge-offs (18,259) (25,582) (22,835) (21,739) (21,465)
Recoveries 5,627 5,188 5,340 5,209 5,693
Net charge-offs (12,632) (20,394) (17,495) (16,530) (15,772)
Ending balance $ 337,983 $ 330,615 $ 328,244 $ 308,968 $ 301,191
Nonperforming Assets
Nonaccrual loans & leases $ 86,457 $ 88,847 $ 89,067 $ 84,062 $ 97,938
Foreclosed real estate 18,969 17,428 21,778 20,761 17,072
Other foreclosed property 10,539 11,548 11,669 14,189 14,878
Restructured loans 520 522 525 528 -
Nonperforming assets $ 116,485 $ 118,345 $ 123,039 $ 119,540 $ 129,888
Loans 90 days or more past due
& still accruing $ 40,948 $ 54,226 $ 51,107 $ 52,881 $ 46,864
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & leases .35 % .36 % .37 % .36 % .43 %
Nonperforming assets as a percentage of:
Total assets .31 .33 .34 .35 .38
Loans & leases plus
foreclosed property .47 .48 .51 .51 .57
Net charge-offs as a percentage of
average loans & leases .21 .33 .30 .29 .29
Allowance for loan & lease losses as
a percentage of loans & leases 1.35 1.34 1.36 1.32 1.32
Ratio of allowance for loan & lease losses to:
Net charge-offs 6.60 x 4.09 x 4.73 x 4.66 x 4.71 x
Nonaccrual and restructured loans & leases 3.89 3.70 3.66 3.65 3.08
MEMO ITEMS
Unrealized appreciation on securities
available for sale, net of tax $ 29,737 $ 60,974 $ 97,462 $ 51,818 $ 49,688
Common stock prices (daily close):
High 40.44 40.63 36.03 34.06 33.84
Low 34.94 27.31 28.00 32.03 29.03
End of period 36.19 40.31 29.94 33.81 33.84
Weighted average shares - Basic 306,466,263 307,145,230 300,907,991 302,781,582 304,867,015
Diluted 312,553,659 313,463,399 306,675,982 309,028,401 311,282,640
End of period shares outstanding* 307,297,316 306,963,976 307,475,558 151,290,516 152,338,669
End of period banking offices 581 583 589 571 573
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 the effective date are stated as originally reported.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 8 Investor Relations FA(336) 733-3132
For the Quarter Ended
<CAPTION>
3/31/1999 12/31/1998 9/30/1998 6/30/1998 3/31/1998
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
<S> <C> <C> <C> <C> <C>
Securities* 6.59 % 6.69 % 6.77 % 6.72 % 6.83 %
Loans & leases 8.68 8.84 9.11 9.03 9.17
Other earning assets 4.68 5.73 5.48 5.60 5.83
Total earning assets* 8.11 8.24 8.47 8.38 8.50
Interest expense:
Interest-bearing deposits 4.08 4.22 4.38 4.39 4.42
Short-term borrowed funds 4.70 4.93 5.31 5.32 5.34
Long-term debt 5.41 5.58 5.74 5.84 5.89
Total interest-bearing liabilities 4.39 4.54 4.73 4.74 4.77
Net yield on earning assets 4.28 % 4.28 % 4.36 % 4.25 % 4.33 %
NOTE: *Yields calculated based on securities at amortized cost.
</TABLE>
<TABLE>
As of
(Dollars in thousands) 3/31/1999
DERIVATIVES: INTEREST RATE SWAPS, CAPS, FLOORS & COLLARS
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
<S> <C> <C> <C> <C>
Receive fixed swaps $ 770,000 6.35 % 4.99 % $ 27,270
Pay fixed swaps 1,197,893 5.00 5.67 (1,168)
Basis swaps 50,000 4.95 4.97 (3)
Caps, floors & collars 1,247,250 - - 349
Total $ 3,265,143 5.51 % 5.39 % $ 26,448
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
Receive fixed swaps $ 770,000 $ 200,000 $ 295,000 $ 275,000
Pay fixed swaps 1,197,893 1,001,646 108,954 87,293
Basis swaps 50,000 50,000 - -
Caps, floors & collars 1,247,250 500,000 747,250 -
Total $ 3,265,143 $ 1,751,646 $ 1,151,204 $ 362,293
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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
Senior Executive Vice President and Controller
(Principal Accounting Officer)
Date: April 12, 1999
