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 12, 2000
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 fourth quarter of 1999,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued January 12, 2000
<PAGE>
BB&T reports record earnings for 1999;
4th quarter earnings increase 19.3%
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today record
1999 earnings totaling $659.1 million, or $1.97 per diluted share, before
nonrecurring charges primarily associated with the completion of mergers and
acquisitions, which totaled $46.2 million after taxes. Excluding nonrecurring
charges, net income for 1999 increased 17.5% compared to recurring results in
1998 and diluted earnings per share increased 16.6% compared to 1998. BB&T's
1999 full-year results, excluding nonrecurring charges, represent a return on
average assets of 1.57% and a return on average shareholders' equity of 20.60%,
compared to prior year ratios of 1.51% and 19.11%, respectively.
For the fourth quarter of 1999, BB&T's net income before nonrecurring
charges totaled $174.9 million, an increase of 19.3% compared to $146.6 million
earned on a recurring basis in 1998. Results for the current quarter, excluding
$16.1 million in after-tax nonrecurring charges, produced recurring diluted
earnings per share of $.52, compared to $.44 in the fourth quarter of 1998, an
increase of 18.2%. Excluding nonrecurring charges, BB&T's annualized return on
average assets for the fourth quarter of 1999 was 1.60%, and the annualized
return on average shareholders' equity for the quarter was 21.38%, placing BB&T
among industry leaders in terms of performance.
"We are very pleased to report excellent fourth quarter results and record
earnings for 1999," said Chairman and Chief Executive Officer John A. Allison.
"We set high goals for our performance in 1999 and have been successful in
achieving substantially all of our financial and strategic objectives.
Unfortunately, our stock price has declined despite these excellent results.
Financial stocks have been depressed by concerns that rising interest rates will
affect future earnings and by disappointing results reported by some individual
banks. We remain optimistic that 2000 will be another strong year for BB&T. Our
business is doing very well."
Including nonrecurring charges, net income for 1999 totaled $612.8 million,
an increase of 12.8% compared to $543.2 million earned in 1998. On a diluted per
share basis, net income for 1999 was $1.83, an increase of 12.3% compared to
$1.63 earned in 1998. For the fourth quarter, net income, including nonrecurring
charges, was $158.8 million, or $.47 per diluted share, compared to $139.6
million, or $.42 per diluted share earned last year, increases of 13.7% and
11.9%, respectively.
<PAGE>
BB&T's "cash basis" operating results, which exclude the effects of
intangible assets and related amortization expenses, improved significantly in
the fourth quarter of 1999 compared to 1998. Cash basis earnings, excluding
nonrecurring merger-related costs, totaled $187.4 million for the fourth quarter
of 1999, or $.56 per diluted share, increases of 20.4% and 21.7%, respectively,
compared to prior year results. For the year, recurring cash basis earnings
totaled $703.6 million, or $2.10 per diluted share, increases of 19.6% and
18.6%, respectively, over 1998 results. Cash basis earnings for 1999 generated a
return on average tangible assets of 1.70% and a return on average tangible
equity of 26.46%.
"Among our primary strategic objectives for 1999 was an enhanced focus on
profitability with a target of performing in the top 5% in our industry," said
Allison. "We received recognition from three independent studies of banks during
the year, each of which ranked BB&T among the highest performing bank holding
companies in the nation based on a number of factors, including profitability,
growth, expense control and asset quality. Based on these studies and
internally-prepared evaluations, we believe that BB&T has become one of the
industry's top performing institutions."
BB&T continued to expand its franchise in 1999 through a number of bank and
non-bank mergers and acquisitions. In March, BB&T merged with MainStreet
Financial Corporation, headquartered in Martinsville, Va., and Scott &
Stringfellow Financial, Inc., an investment banking firm located in Richmond,
Va. In the second quarter of 1999, BB&T completed an acquisition of Mason-Dixon
Bancshares, Inc. of Westminster, Md., and in the third quarter, BB&T acquired
Matewan BancShares Inc., based in Williamson, W.Va.
BB&T made significant progress toward building a Georgia franchise during
1999 through five transactions. On July 9, BB&T acquired First Citizens
Corporation of metro Atlanta, Ga. On Nov. 19, BB&T completed its merger with
First Liberty Financial Corp. of Macon, Ga. In addition to these two completed
transactions, BB&T announced agreements to acquire Premier Bancshares of
Atlanta, Ga., Hardwick Holding Company of Dalton, Ga. and First Banking Company
of Southeast Georgia, which is located in Statesboro. When these transactions
are all completed, BB&T will be the eighth largest bank in Georgia with assets
of approximately $5.1 billion.
BB&T also rapidly grew its independent insurance agency network through
acquisitions of twelve independent agencies and the purchase of the book of
business of another agency. Based on revenues, BB&T Insurance Services is the
12th largest independent agency network and the second largest bank-owned agency
in the country.
At Dec. 31, 1999, BB&T had $43.5 billion in assets and 655 banking offices
in the Carolinas, Georgia, Virginia, West Virginia, Kentucky, 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 Jan.
11 was $25.38 per share.
<PAGE>
<TABLE>
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
For the Three Months Ended Increase (Decrease)
------------------------------------------------------------------
<CAPTION>
(Dollars in thousands, except per share data) 12/31/99 12/31/98 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 849,981 $ 755,644 $ 94,337 12.5 %
Interest expense 415,018 366,221 48,797 13.3
Net interest income - taxable equivalent 434,963 389,423 45,540 11.7
Less: Taxable equivalent adjustment 22,154 18,946 3,208 16.9
Net interest income 412,809 370,477 42,332 11.4
Provision for loan & lease losses 27,091 25,632 1,459 5.7
Net interest income after provision for loan & lease losses 385,718 344,845 40,873 11.9
Noninterest income 198,292 151,787 46,505 30.6
Noninterest expense 347,593 293,308 54,285 18.5
Income before income taxes 236,417 203,324 33,093 16.3
Provision for income taxes 77,665 63,713 13,952 21.9
Net income $ 158,752 $ 139,611 $ 19,141 13.7 %
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Basic earnings $ .48 $ .42 $ .06 14.3 %
Diluted earnings .47 .42 .05 11.9
Weighted average shares - Basic 331,016,818 328,981,759
Diluted 336,222,650 335,757,291
Dividends paid on common shares $ .20 $ .175 $ .025 14.3 %
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.45 % 1.41 %
Return on average equity 19.41 17.39
Net yield on earning assets (taxable equivalent) 4.28 4.26
Efficiency (taxable equivalent) * 52.0 53.3
For the Three Months Ended Increase (Decrease)
------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/99 12/31/98 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 850,652 $ 755,644 $ 95,008 12.6 %
Interest expense 415,018 366,221 48,797 13.3
Net interest income - taxable equivalent 435,634 389,423 46,211 11.9
Less: Taxable equivalent adjustment 22,154 18,946 3,208 16.9
Net interest income 413,480 370,477 43,003 11.6
Provision for loan & lease losses 21,400 20,631 769 3.7
Net interest income after provision for loan & lease losses 392,080 349,846 42,234 12.1
Noninterest income 200,265 151,787 48,478 31.9
Noninterest expense 331,420 287,813 43,607 15.2
Income before income taxes 260,925 213,820 47,105 22.0
Provision for income taxes 86,035 67,234 18,801 28.0
Income excluding nonrecurring items 174,890 146,586 28,304 19.3
Nonrecurring items, net of tax 16,138 6,975 9,163 NM
Net income $ 158,752 $ 139,611 $ 19,141 13.7 %
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .53 $ .45 $ .08 17.8 %
Diluted earnings .52 .44 .08 18.2
Weighted average shares - Basic 331,016,818 328,981,759
Diluted 336,222,650 335,757,291
Dividends paid on common shares $ .20 $ .175 $ .025 14.3 %
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.60 % 1.48 %
Return on average equity 21.38 18.26
Net yield on earning assets (taxable equivalent) 4.29 4.26
Efficiency (taxable equivalent) * 52.0 53.3
- -----------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings excluding nonrecurring items $ 187,419 $ 155,619 $ 31,800 20.4 %
Diluted cash basis earnings per share .56 .46 .10 21.7
Return on average tangible assets 1.74 % 1.59 %
Return on average tangible equity 28.21 22.47
Efficiency ratio (taxable equivalent) * 50.0 51.6
- -----------------------------------------------------------------------------------------------------------------------------------
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.
</TABLE>
<PAGE>
<TABLE>
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
For the Twelve Months Ended Increase (Decrease)
------------------------------------------------------------------
<CAPTION>
(Dollars in thousands, except per share data) 12/31/99 12/31/98 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 3,202,481 $ 2,932,928 $ 269,553 9.2 %
Interest expense 1,534,065 1,436,973 97,092 6.8
Net interest income - taxable equivalent 1,668,416 1,495,955 172,461 11.5
Less: Taxable equivalent adjustment 86,701 69,302 17,399 25.1
Net interest income 1,581,715 1,426,653 155,062 10.9
Provision for loan & lease losses 92,097 101,842 (9,745) (9.6)
Net interest income after provision for loan & lease losses 1,489,618 1,324,811 164,807 12.4
Noninterest income 761,356 579,670 181,686 31.3
Noninterest expense 1,346,904 1,109,167 237,737 21.4
Income before income taxes 904,070 795,314 108,756 13.7
Provision for income taxes 291,223 252,103 39,120 15.5
Net income $ 612,847 $ 543,211 $ 69,636 12.8 %
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Basic earnings $ 1.86 $ 1.67 $ .19 11.4 %
Diluted earnings 1.83 1.63 .20 12.3
Weighted average shares - Basic 329,305,820 325,735,189
Diluted 335,298,333 332,336,113
Dividends paid on common shares $ .75 $ .66 $ .09 13.6 %
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.46 % 1.46 %
Return on average equity 19.16 18.50
Net yield on earning assets (taxable equivalent) 4.27 4.30
Efficiency (taxable equivalent) * 52.7 52.6
- -----------------------------------------------------------------------------------------------------------------------------------
For the Twelve Months Ended Increase (Decrease)
------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/99 12/31/98 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 3,203,152 $ 2,932,928 $ 270,224 9.2 %
Interest expense 1,534,065 1,436,973 97,092 6.8
Net interest income - taxable equivalent 1,669,087 1,495,955 173,132 11.6
Less: Taxable equivalent adjustment 86,701 69,302 17,399 25.1
Net interest income 1,582,386 1,426,653 155,733 10.9
Provision for loan & lease losses 86,406 96,841 (10,435) (10.8)
Net interest income after provision for loan & lease losses 1,495,980 1,329,812 166,168 12.5
Noninterest income 764,729 579,670 185,059 31.9
Noninterest expense 1,287,600 1,089,317 198,283 18.2
Income before income taxes 973,109 820,165 152,944 18.6
Provision for income taxes 314,038 259,027 55,011 21.2
Income excluding nonrecurring items 659,071 561,138 97,933 17.5
Nonrecurring items, net of tax 46,224 17,927 28,297 NM
Net income $ 612,847 $ 543,211 $ 69,636 12.8 %
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ 2.00 $ 1.72 $ .28 16.3 %
Diluted earnings 1.97 1.69 .28 16.6
Weighted average shares - Basic 329,305,820 325,735,189
Diluted 335,298,333 332,336,113
Dividends paid on common shares $ .75 $ .66 $ .09 13.6 %
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.57 % 1.51 %
Return on average equity 20.60 19.11
Net yield on earning assets (taxable equivalent) 4.27 4.30
Efficiency (taxable equivalent) * 52.7 52.6
- -----------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings excluding nonrecurring items $ 703,565 $ 588,089 $ 115,476 19.6 %
Diluted cash basis earnings per share 2.10 1.77 .33 18.6
Return on average tangible assets 1.70 % 1.59 %
Return on average tangible equity 26.46 22.40
Efficiency ratio (taxable equivalent) * 50.8 51.2
- -----------------------------------------------------------------------------------------------------------------------------------
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.
</TABLE>
<PAGE>
<TABLE>
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
As of / For the Twelve Months Ended Increase (Decrease)
---------------------------------------------------------------------
<CAPTION>
(Dollars in thousands) 12/31/99 12/31/98 $ %
- -----------------------------------------------------------------------------------------------------------------------------------
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value* $ 10,672,387 $ 9,919,691 $ 752,696 7.6 %
Commercial loans & leases 15,152,172 12,782,846 2,369,326 18.5
Consumer loans 7,461,507 6,414,383 1,047,124 16.3
Revolving credit loans 628,118 543,138 84,980 15.6
Mortgage loans 5,955,658 6,863,758 (908,100) (13.2)
Total loans & leases* 29,197,455 26,604,125 2,593,330 9.7
Allowance for loan & lease losses 387,963 361,869 26,094 7.2
Other earning assets 297,000 142,209 154,791 108.8
Total earning assets 40,608,376 36,560,934 4,047,442 11.1
Total assets 43,480,996 39,470,135 4,010,861 10.2
Noninterest-bearing deposits 3,908,080 3,771,421 136,659 3.6
Savings & interest checking 1,753,059 2,082,879 (329,820) (15.8)
Money rate savings 8,193,688 7,337,066 856,622 11.7
Time deposits 12,866,914 12,619,590 247,324 2.0
Other deposits 529,401 638,676 (109,275) (17.1)
Total deposits 27,251,142 26,449,632 801,510 3.0
Short-term borrowed funds 6,875,290 3,885,737 2,989,553 76.9
Long-term debt 5,491,734 5,412,850 78,884 1.5
Total interest-bearing liabilities 35,710,086 31,976,798 3,733,288 11.7
Total shareholders' equity $ 3,199,159 $ 3,171,145 $ 28,014 .9 %
- -----------------------------------------------------------------------------------------------------------------------------------
Average balances
Securities, at amortized cost* $ 11,106,193 $ 9,498,020 $ 1,608,173 16.9 %
Commercial loans & leases 13,966,081 11,795,724 2,170,357 18.4
Consumer loans 6,950,610 6,170,893 779,717 12.6
Revolving credit loans 559,080 513,853 45,227 8.8
Mortgage loans 6,253,401 6,584,737 (331,336) (5.0)
Total loans & leases* 27,729,172 25,065,207 2,663,965 10.6
Other earning assets 281,773 254,629 27,144 10.7
Total earning assets 39,117,138 34,817,856 4,299,282 12.3
Total assets 41,907,944 37,270,754 4,637,190 12.4
Noninterest-bearing deposits 3,754,025 3,381,007 373,018 11.0
Savings & interest checking 1,991,050 2,208,008 (216,958) (9.8)
Money rate savings 7,452,072 6,187,274 1,264,798 20.4
Time deposits 12,836,205 12,138,098 698,107 5.8
Other deposits 954,420 872,126 82,294 9.4
Total deposits 26,987,772 24,786,513 2,201,259 8.9
Short-term borrowed funds 5,311,658 4,430,989 880,669 19.9
Long-term debt 5,768,516 4,549,118 1,219,398 26.8
Total interest-bearing liabilities 34,313,921 30,385,613 3,928,308 12.9
Total shareholders' equity $ 3,198,995 $ 2,936,189 $ 262,806 9.0 %
- -----------------------------------------------------------------------------------------------------------------------------------
As of / For the Quarter Ended
-----------------------------------------------------------------------------------
(Dollars in thousands) 12/31/99 9/30/99 6/30/99 3/31/99 12/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS INFORMATION
<S> <C> <C> <C> <C> <C>
Unrealized (depreciation) appreciation on
securities available for sale, net of tax $ (276,211) $ (141,026) $ (121,611) $ 30,205 $ 64,606
Derivatives (notional value) 1,586,611 1,339,937 1,987,264 3,342,143 3,825,596
Unrealized (loss) gain on derivatives
portfolio (1,107) 7,889 15,010 25,350 35,938
Common stock prices (daily close):
High 36.94 36.63 40.25 40.44 40.63
Low 27.31 30.50 33.81 34.94 27.31
End of period 27.38 32.38 36.69 36.19 40.31
Weighted average shares - Basic 331,016,818 329,088,474 328,566,557 328,526,451 328,981,759
Diluted 336,222,650 334,891,922 335,046,712 335,023,333 335,757,291
End of period shares outstanding 331,170,260 330,617,203 328,259,637 329,407,895 328,948,902
End of period banking offices 655 660 647 653 657
- -----------------------------------------------------------------------------------------------------------------------------------
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
* Balances reflect the securitization of $304.8 million of loans during 1999 and $465.3 million of loans during 1998. The
increase in end of period loans, excluding the impact of the securitizations, was 10.7%. The increase in average loans,
excluding the securitizations, was 12.0%.
</TABLE>
<PAGE>
<TABLE>
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
As of / For the Quarter Ended
-----------------------------------------------------------------------------------
<CAPTION>
(Dollars in thousands, except per share data) 12/31/99 9/30/99 6/30/99 3/31/99 12/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
<S> <C> <C> <C> <C> <C>
Interest income - taxable equivalent
Interest & fees on loans & leases $ 658,494 $ 623,551 $ 597,333 $ 576,530 $ 583,999
Interest & dividends on securities 188,315 192,822 186,427 166,980 168,566
Interest on short-term investments 3,843 3,567 3,104 2,186 3,079
Total interest income - taxable equivalent 850,652 819,940 786,864 745,696 755,644
Interest expense
Interest on deposits 251,940 243,835 233,027 232,157 239,151
Interest on short-term borrowed funds 77,638 69,463 62,559 48,509 55,154
Interest on long-term debt 85,440 80,078 76,335 73,084 71,916
Total interest expense 415,018 393,376 371,921 353,750 366,221
Net interest income - taxable equivalent 435,634 426,564 414,943 391,946 389,423
Less: Taxable equivalent adjustment 22,154 23,104 22,322 19,121 18,946
Net interest income 413,480 403,460 392,621 372,825 370,477
Provision for loan & lease losses 21,400 21,145 22,789 21,072 20,631
Net interest income after provision for
loan & lease losses 392,080 382,315 369,832 351,753 349,846
Noninterest income
Service charges on deposits 54,047 51,969 50,281 50,352 48,039
Mortgage banking activities 23,502 30,157 37,600 38,825 21,381
Investment banking & brokerage fees 36,783 37,715 38,621 14,217 10,828
Trust revenue 14,456 14,351 13,451 13,158 12,591
Agency insurance commissions 24,779 20,464 16,820 16,882 13,499
Other insurance commissions 2,867 3,104 2,809 3,026 3,204
Other nondeposit fees & commissions 25,910 25,905 27,071 23,116 23,924
Securities gains (losses), net 1,147 (175) (2,897) 167 2,120
Other income 16,774 12,321 11,874 13,280 16,201
Total noninterest income 200,265 195,811 195,630 173,023 151,787
Noninterest expense
Personnel expense 173,973 177,853 172,060 148,956 144,660
Occupancy & equipment expense 50,610 51,459 50,821 47,346 42,328
Foreclosed property expense 1,142 1,261 737 724 613
Amortization of intangibles & servicing
rights 18,898 18,123 18,247 17,428 17,974
Other noninterest expense 86,797 85,314 88,438 77,413 82,238
Total noninterest expense 331,420 334,010 330,303 291,867 287,813
Income before income taxes 260,925 244,116 235,159 232,909 213,820
Provision for income taxes 86,035 78,172 74,837 74,994 67,234
Income excluding nonrecurring items $ 174,890 $ 165,944 $ 160,322 $ 157,915 $ 146,586
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .53 $ .50 $ .49 $ .48 $ .45
Diluted earnings .52 .50 .48 .47 .44
Dividends paid on common shares .20 .20 .175 .175 .175
Book value per common share $ 9.66 $ 9.77 $ 9.40 $ 9.73 $ 9.64
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.60 % 1.54 % 1.54 % 1.61 % 1.48 %
Return on average equity 21.38 20.94 19.99 20.08 18.26
Net yield on earning assets (taxable
equivalent) 4.29 4.26 4.27 4.25 4.26
Efficiency (taxable equivalent) * 52.0 53.4 53.7 51.5 53.3
Noninterest income as a percentage of total
income (taxable equivalent) * 31.4 31.5 32.4 30.6 27.8
Equity as a percentage of total assets
end of period 7.4 7.5 7.3 7.8 8.0
Average earning assets as a percentage
of average total assets 93.3 93.6 93.3 93.2 93.0
Average loans & leases as a percentage
of average deposits 105.3 102.4 102.0 101.2 101.1
- -----------------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE**
Cash basis earnings excluding nonrecurring
items $ 187,419 $ 177,619 $ 171,218 $ 167,309 $ 155,619
Diluted cash basis earnings per share .56 .53 .51 .50 .46
Return on average tangible assets 1.74 % 1.67 % 1.67 % 1.72 % 1.59 %
Return on average tangible equity 28.21 27.38 25.56 24.73 22.47
Efficiency ratio (taxable equivalent) * 50.0 51.5 51.8 49.8 51.6
- -----------------------------------------------------------------------------------------------------------------------------------
NOTES: Applicable ratios are annualized.
* 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.
</TABLE>
<PAGE>
<TABLE>
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
As of / For the Quarter Ended
-----------------------------------------------------------------------------------
<CAPTION>
(Dollars in thousands) 12/31/99 9/30/99 6/30/99 3/31/99 12/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
SELECTED BALANCE SHEET DATA
<S> <C> <C> <C> <C> <C>
End of period balances
Securities, at carrying value $ 10,672,387 $ 11,266,363 $ 11,433,676 $ 11,099,880 $ 9,919,691
Commercial loans & leases 15,152,172 14,594,242 13,977,476 13,378,942 12,782,846
Consumer loans 7,461,507 7,284,523 6,920,667 6,677,311 6,414,383
Revolving credit loans 628,118 582,709 572,371 540,040 543,138
Mortgage loans 5,955,658 6,043,574 6,040,882 6,439,271 6,863,758
Total loans & leases 29,197,455 28,505,048 27,511,396 27,035,564 26,604,125
Allowance for loan & lease losses 387,963 382,851 375,627 370,097 361,869
Other earning assets 297,000 354,168 508,480 149,311 142,209
Total earning assets 40,608,376 40,350,029 39,648,599 38,236,181 36,560,934
Total assets 43,480,996 43,235,804 42,503,308 41,046,109 39,470,135
Noninterest-bearing deposits 3,908,080 3,858,494 3,803,346 3,665,615 3,771,421
Savings & interest checking 1,753,059 1,772,432 1,944,237 2,011,818 2,082,879
Money rate savings 8,193,688 7,679,201 7,396,799 7,421,101 7,337,066
Time deposits 12,866,914 13,212,393 12,712,256 12,767,089 12,619,590
Other deposits 529,401 361,994 737,575 880,405 638,676
Total deposits 27,251,142 26,884,514 26,594,213 26,746,028 26,449,632
Short-term borrowed funds 6,875,290 6,126,755 6,633,784 4,871,277 3,885,737
Long-term debt 5,491,734 6,348,919 5,600,427 5,632,992 5,412,850
Total interest-bearing liabilities 35,710,086 35,501,694 35,025,078 33,584,682 31,976,798
Total shareholders' equity 3,199,159 3,228,969 3,084,754 3,203,822 3,171,145
Goodwill 597,137 598,590 507,833 494,257 412,413
Core deposit & other intangibles 11,564 13,778 13,266 12,204 11,988
Total intangibles 608,701 612,368 521,099 506,461 424,401
Mortgage servicing rights 156,771 172,663 159,624 139,579 115,218
Negative goodwill $ 20,507 $ 22,067 $ 23,628 $ 25,189 $ 26,749
- -----------------------------------------------------------------------------------------------------------------------------------
Average balances
Securities, at amortized cost $ 11,279,693 $ 11,634,168 $ 11,323,830 $ 10,169,073 $ 10,069,846
Commercial loans & leases 14,831,731 14,243,727 13,717,501 13,048,720 12,495,550
Consumer loans 7,376,484 7,098,212 6,821,584 6,494,851 6,381,541
Revolving credit loans 588,033 565,142 547,635 534,858 521,847
Mortgage loans 6,116,112 5,994,953 6,234,781 6,676,759 6,766,181
Total loans & leases 28,912,360 27,902,034 27,321,501 26,755,188 26,165,119
Other earning assets 288,963 378,104 261,252 196,700 220,650
Total earning assets 40,481,016 39,914,306 38,906,583 37,120,961 36,455,615
Total assets 43,403,097 42,641,925 41,702,966 39,836,528 39,215,677
Noninterest-bearing deposits 3,913,380 3,793,069 3,709,514 3,596,222 3,632,413
Savings & interest checking 1,880,785 1,905,813 2,068,531 2,112,555 2,149,882
Money rate savings 7,802,067 7,525,489 7,297,315 7,175,727 6,720,598
Time deposits 13,004,254 12,812,859 12,753,136 12,772,281 12,563,360
Other deposits 866,315 1,217,764 954,165 775,542 822,919
Total deposits 27,466,801 27,254,994 26,782,661 26,432,327 25,889,172
Short-term borrowed funds 5,963,911 5,686,621 5,390,937 4,181,454 4,412,067
Long-term debt 6,055,124 5,906,736 5,683,714 5,419,991 5,127,292
Total interest-bearing liabilities 35,572,456 35,055,282 34,147,798 32,437,550 31,796,118
Total shareholders' equity $ 3,245,485 $ 3,143,726 $ 3,216,861 $ 3,189,904 $ 3,184,574
- -----------------------------------------------------------------------------------------------------------------------------------
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 2,848,560 $ 2,803,436 $ 2,733,130 $ 2,740,426 $ 2,747,687
Total 3,985,547 3,928,153 3,862,233 3,914,085 3,907,092
Risk-based capital ratios:
Tier 1 9.4 % 9.4 % 9.5 % 9.9 % 10.5 %
Total 13.1 13.2 13.4 14.1 14.9
Leverage capital ratio 6.6 6.6 6.6 7.0 7.1
- -----------------------------------------------------------------------------------------------------------------------------------
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 Tom A. Nicholson
BB&T Corporation (NYSE:BBT) Senior Vice President (336) 733-3058
Page 8 Investor Relations FAX(336) 733-3132
As of / For the Quarter Ended
-----------------------------------------------------------------------------------
<CAPTION>
(Dollars in thousands) 12/31/99 9/30/99 6/30/99 3/31/99 12/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY ANALYSIS
<S> <C> <C> <C> <C> <C>
Allowance For Loan & Lease Losses
Beginning balance $ 382,851 $ 375,627 $ 370,097 $ 361,869 $ 358,371
Allowance for acquired loans - 7,473 169 1,935 -
Provision for loan & lease losses 27,091 21,145 22,789 21,072 25,632
Charge-offs (29,927) (28,086) (24,947) (21,504) (28,227)
Recoveries 7,948 6,692 7,519 6,725 6,093
- -----------------------------------------------------------------------------------------------------------------------------------
Net charge-offs (21,979) (21,394) (17,428) (14,779) (22,134)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending balance $ 387,963 $ 382,851 $ 375,627 $ 370,097 $ 361,869
- -----------------------------------------------------------------------------------------------------------------------------------
Nonperforming Assets
Nonaccrual loans & leases $ 103,487 $ 92,829 $ 93,982 $ 106,145 $ 106,123
Foreclosed real estate 13,723 17,768 17,164 22,959 20,019
Other foreclosed property 13,398 10,728 8,812 10,965 12,226
Restructured loans 1,094 1,378 1,560 3,103 3,214
- -----------------------------------------------------------------------------------------------------------------------------------
Nonperforming assets $ 131,702 $ 122,703 $ 121,518 $ 143,172 $ 141,582
- -----------------------------------------------------------------------------------------------------------------------------------
Loans 90 days or more past due
& still accruing $ 54,244 $ 49,873 $ 45,021 $ 41,791 $ 54,299
- -----------------------------------------------------------------------------------------------------------------------------------
Asset Quality Ratios
Nonaccrual and restructured loans & leases
as a percentage of total loans & leases .36 % .33 % .35 % .40 % .41 %
Nonperforming assets as a percentage of:
Total assets .30 .28 .29 .35 .36
Loans & leases plus
foreclosed property .45 .43 .44 .53 .53
Net charge-offs as a percentage of
average loans & leases .30 .30 .26 .22 .34
Allowance for loan & lease losses as
a percentage of loans & leases 1.33 1.34 1.37 1.37 1.36
Ratio of allowance for loan & lease losses to:
Net charge-offs 4.45 x 4.51 x 5.37 x 6.17 x 4.12 x
Nonaccrual and restructured loans & leases 3.71 4.06 3.93 3.39 3.31
- -----------------------------------------------------------------------------------------------------------------------------------
As of / for the Twelve Months Ended Increase (Decrease)
-----------------------------------------------------------------------------------
12/31/99 12/31/98 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 361,869 $ 316,550 $ 45,319 14.3 %
Allowance for acquired loans 9,577 21,322 (11,745) (55.1)
Provision for loan & lease losses 92,097 101,842 (9,745) (9.6)
Charge-offs (104,464) (102,655) 1,809 1.8
Recoveries 28,884 24,810 4,074 16.4
- -----------------------------------------------------------------------------------------------------------------------------------
Net charge-offs (75,580) (77,845) (2,265) (2.9)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending balance $ 387,963 $ 361,869 $ 26,094 7.2 %
- -----------------------------------------------------------------------------------------------------------------------------------
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .27 % .31 %
Ratio of allowance for loan & lease losses to
net charge-offs 5.13 x 4.65 x
- -----------------------------------------------------------------------------------------------------------------------------------
For the Quarter Ended
-----------------------------------------------------------------------------------
12/31/99 9/30/99 6/30/99 3/31/99 12/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
Securities and other short-term investments* 6.64 % 6.53 % 6.55 % 6.54 % 6.66 %
Loans & leases 9.04 8.88 8.76 8.71 8.87
-----------------------------------------------------------------------------------
Total earning assets* 8.35 8.17 8.10 8.11 8.25
-----------------------------------------------------------------------------------
Interest expense:
Interest-bearing deposits 4.24 4.12 4.05 4.12 4.26
Short-term borrowed funds 5.16 4.85 4.65 4.70 4.96
Long-term debt 5.62 5.40 5.38 5.43 5.59
-----------------------------------------------------------------------------------
Total interest-bearing liabilities 4.63 4.46 4.37 4.42 4.57
-----------------------------------------------------------------------------------
Net yield on earning assets 4.28 % 4.26 % 4.27 % 4.25 % 4.26 %
-----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
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.
</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
Senior Executive Vice President and Controller
(Principal Accounting Officer)
Date: January 12, 2000
