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)
July 18, 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 second quarter of 2000,
including sections distributed to the media and a supplement distributed to
analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued July 12, 2000
<PAGE>
BB&T Reports 15.4% increase in 2nd Quarter Earnings
WINSTON-SALEM, N.C. -- BB&T Corporation (NYSE:BBT) reported today second
quarter 2000 earnings totaling $193.7 million, or $.54 per diluted share,
excluding $21.0 million in after-tax nonrecurring charges associated with
acquisitions and systems conversions completed in the second quarter. Excluding
nonrecurring charges, net income for the second quarter increased 15.4% and
diluted earnings per share increased 14.9% compared to 1999 recurring results.
BB&T's second quarter 2000 net income, excluding nonrecurring charges,
produced an annualized return on average assets of 1.62% and an annualized
return on average shareholders' equity of 21.33%, compared to prior year ratios
of 1.52% and 19.33%, respectively. These returns are in line with BB&T's goals
for 2000 and reinforce BB&T's position among the industry's leaders in terms of
profitability.
"We are very pleased with our second quarter performance," said Chairman
and Chief Executive Officer John A. Allison. "I am particularly pleased with our
remarkably strong credit quality and healthy earnings given the current interest
rate environment."
BB&T's recurring cash basis earnings totaled $207.4 million for the second
quarter of 2000, or $.57 per diluted share, increases of 15.8% and 14.0%,
respectively, compared to prior year results. Cash basis earnings for the
quarter generated an annualized return on average tangible assets of 1.76% and
an annualized return on average tangible shareholders' equity of 27.57%.
For the six months ended June 30, BB&T's net income was $379.3 million, or
$1.05 per diluted share, excluding after-tax nonrecurring merger charges
totaling $40.8 million. These earnings reflect increases of 13.3% and 12.9%,
respectively, compared to 1999. Recurring earnings for the first six months of
2000 yielded an annualized return on average assets of 1.61% and an annualized
return on average equity of 21.19%, compared to prior year ratios of 1.55% and
19.46%, respectively.
<PAGE>
Including nonrecurring charges, net income for the second quarter of 2000
totaled $172.7 million, an increase of 2.9% compared to $167.9 million earned in
the second quarter of 1999. For the first six months, net income was $338.5
million, an increase of 4.3% compared to 1999.
"We continued to experience solid growth in our loan portfolio during the
quarter, with average loans increasing 11.6% compared to the second quarter last
year," said Allison. "Our credit quality continues to be outstanding. Net
charge-offs for the quarter were .22% and nonperforming assets composed .29% of
total assets. We have seen no deterioration in the overall quality of our loan
portfolios thus far in 2000 despite signs that the national economy is beginning
to slow. While rising interest rates have created some downward pressure on our
margins and have depressed the mortgage lending business, we have been
successful growing noninterest income other than mortgage income, and
effectively controlling noninterest expenses."
BB&T completed two acquisitions of Georgia financial institutions during
the second quarter. On June 13, BB&T acquired Hardwick Holding Company, of
Dalton, Ga., and on June 15, the merger with First Banking Company of Southeast
Georgia, based in Statesboro, was completed. Following these transactions, BB&T
ranks as the eighth largest financial holding company in Georgia, with over $5
billion in assets.
On July 6, BB&T completed its merger with One Valley Bancorp, of
Charleston, W.Va. With approximately $6.6 billion in assets, One Valley operates
123 branches - 76 in West Virginia and 47 in central Virginia. BB&T's merger
with One Valley combines two of the country's highest performing financial
institutions, giving BB&T the No. 1 deposit market share in West Virginia and
strengthening BB&T's Virginia operations.
On June 27, BB&T's board of directors approved a 15% increase in the
quarterly cash dividend paid to shareholders. The increase, to $.23 per share,
marks the 28th consecutive year that BB&T has increased the quarterly cash
dividend.
At July 12, BB&T had $55.4 billion in assets and 832 banking offices in the
Carolinas, Virginia, West Virginia, Kentucky, Georgia, 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 11 was
$27.63 per share.
This press release contains forward-looking statements as defined by
federal securities laws. These statements may address issues that involve
significant risks, uncertainties, estimates and assumptions made by management.
Actual results could differ materially from current projections. Please refer to
BB&T's filings with the Securities and Exchange Commission for a summary of
important factors that could affect BB&T's forward-looking statements. BB&T
undertakes no obligation to revise these statements following the date of this
press release.
<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)
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<CAPTION>
(Dollars in thousands, except per share data) 6/30/00 6/30/99 $ %
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INCOME STATEMENT
Interest income - taxable equivalent $ 971,722 $ 840,637 $ 131,085 15.6 %
Interest expense 500,366 396,401 103,965 26.2
Net interest income - taxable equivalent 471,356 444,236 27,120 6.1
Less: Taxable equivalent adjustment 22,239 22,545 (306) (1.4)
Net interest income 449,117 421,691 27,426 6.5
Provision for loan & lease losses 25,250 23,739 1,511 6.4
Net interest income after provision for
loan & lease losses 423,867 397,952 25,915 6.5
Noninterest income 226,755 207,181 19,574 9.4
Noninterest expense 392,235 357,687 34,548 9.7
Income before income taxes 258,387 247,446 10,941 4.4
Provision for income taxes 85,643 79,545 6,098 7.7
Net income $ 172,744 $ 167,901 $ 4,843 2.9 %
-------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Basic earnings $ .48 $ .48 $ - - %
Diluted earnings .48 .47 .01 2.1
Weighted average shares - Basic 356,648,577 351,436,110
Diluted 361,367,789 358,314,342
Dividends paid on common shares $ .20 $ .175 $ .025 14.3 %
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.45 % 1.52 %
Return on average equity 19.02 19.33
Net yield on earning assets (taxable equivalent) 4.22 4.29
Efficiency (taxable equivalent) (1) 52.2 54.6
-------------------------------------------------------------------------------------------------------------------------
For the Three Months Ended Increase (Decrease)
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(Dollars in thousands, except per share data) 6/30/00 6/30/99 $ %
-------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 971,722 $ 840,637 $ 131,085 15.6 %
Interest expense 500,366 396,401 103,965 26.2
Net interest income - taxable equivalent 471,356 444,236 27,120 6.1
Less: Taxable equivalent adjustment 22,239 22,545 (306) (1.4)
Net interest income 449,117 421,691 27,426 6.5
Provision for loan & lease losses 21,500 23,739 (2,239) (9.4)
Net interest income after provision for
loan & lease losses 427,617 397,952 29,665 7.5
Noninterest income 227,555 207,181 20,374 9.8
Noninterest expense 366,355 357,687 8,668 2.4
Income before income taxes 288,817 247,446 41,371 16.7
Provision for income taxes 95,073 79,545 15,528 19.5
Income excluding nonrecurring items 193,744 167,901 25,843 15.4
Nonrecurring items, net of tax 21,000 - 21,000 NM
Net income $ 172,744 $ 167,901 $ 4,843 2.9 %
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PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ .54 $ .48 $ .06 12.5 %
Diluted earnings .54 .47 .07 14.9
Weighted average shares - Basic 356,648,577 351,436,110
Diluted 361,367,789 358,314,342
Dividends paid on common shares $ .20 $ .175 $ .025 14.3 %
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.62 % 1.52 %
Return on average equity 21.33 19.33
Net yield on earning assets (taxable equivalent) 4.22 4.29
Efficiency (taxable equivalent) (1) 52.2 54.6
-------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 207,378 $ 179,078 $ 28,300 15.8 %
Diluted earnings per share .57 .50 .07 14.0
Return on average tangible assets 1.76 % 1.64 %
Return on average tangible equity 27.57 24.40
Efficiency ratio (taxable equivalent) (1) 50.2 52.7
NOTES: Applicable ratios are annualized.
(1) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(2) 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 Six Months Ended Increase (Decrease)
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<CAPTION>
(Dollars in thousands, except per share data) 6/30/00 6/30/99 $ %
-------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 1,896,820 $ 1,638,402 $ 258,418 15.8 %
Interest expense 959,892 773,814 186,078 24.0
Net interest income - taxable equivalent 936,928 864,588 72,340 8.4
Less: Taxable equivalent adjustment 43,982 41,879 2,103 5.0
Net interest income 892,946 822,709 70,237 8.5
Provision for loan & lease losses 48,914 45,594 3,320 7.3
Net interest income after provision for
loan & lease losses 844,032 777,115 66,917 8.6
Noninterest income 443,273 392,937 50,336 12.8
Noninterest expense 785,558 691,789 93,769 13.6
Income before income taxes 501,747 478,263 23,484 4.9
Provision for income taxes 163,259 153,831 9,428 6.1
Net income $ 338,488 $ 324,432 $ 14,056 4.3 %
-------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Basic earnings $ .95 $ .92 $ .03 3.3 %
Diluted earnings .94 .91 .03 3.3
Weighted average shares - Basic 356,452,393 351,416,111
Diluted 360,965,480 358,331,372
Dividends paid on common shares $ .40 $ .35 $ .05 14.3 %
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.44 % 1.50 %
Return on average equity 18.91 18.85
Net yield on earning assets (taxable equivalent) 4.24 4.28
Efficiency (taxable equivalent) (1) 52.6 53.5
-------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended Increase (Decrease)
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(Dollars in thousands, except per share data) 6/30/00 6/30/99 $ %
-------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
Interest income - taxable equivalent $ 1,896,820 $ 1,638,402 $ 258,418 15.8 %
Interest expense 959,892 773,814 186,078 24.0
Net interest income - taxable equivalent 936,928 864,588 72,340 8.4
Less: Taxable equivalent adjustment 43,982 41,879 2,103 5.0
Net interest income 892,946 822,709 70,237 8.5
Provision for loan & lease losses 43,664 45,594 (1,930) (4.2)
Net interest income after provision for
loan & lease losses 849,282 777,115 72,167 9.3
Noninterest income 444,354 392,937 51,417 13.1
Noninterest expense 729,048 675,948 53,100 7.9
Income before income taxes 564,588 494,104 70,484 14.3
Provision for income taxes 185,317 159,286 26,031 16.3
Income excluding nonrecurring items 379,271 334,818 44,453 13.3
Nonrecurring items, net of tax 40,783 10,386 30,397 NM
Net income $ 338,488 $ 324,432 $ 14,056 4.3 %
-------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Basic earnings $ 1.06 $ .95 $ .11 11.6 %
Diluted earnings 1.05 .93 .12 12.9
Weighted average shares - Basic 356,452,393 351,416,111
Diluted 360,965,480 358,331,372
Dividends paid on common shares $ .40 $ .35 $ .05 14.3 %
-------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.61 % 1.55 %
Return on average equity 21.19 19.46
Net yield on earning assets (taxable equivalent) 4.24 4.28
Noninterest income as a percentage of
total income (taxable equivalent) (1) 32.2 31.4
Efficiency (taxable equivalent) (1) 52.6 53.5
-------------------------------------------------------------------------------------------------------------------------
CASH BASIS PERFORMANCE EXCLUDING NONRECURRING ITEMS (2)
Net Income $ 406,091 $ 355,670 $ 50,421 14.2 %
Diluted earnings per share 1.13 .99 .14 14.1
Return on average tangible assets 1.75 % 1.67 %
Return on average tangible equity 27.57 24.16
Efficiency ratio (taxable equivalent) (1) 50.6 51.8
-------------------------------------------------------------------------------------------------------------------------
NOTES: Applicable ratios are annualized.
(1) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(2) 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 Six Months Ended Increase (Decrease)
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<CAPTION>
(Dollars in thousands) 6/30/00 6/30/99 $ %
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SELECTED BALANCE SHEET DATA
<S> <C> <C> <C> <C> <C>
End of period balances
Securities, at carrying value (1) $ 11,380,895 $ 11,876,419 $ (495,524) (4.2)%
Commercial loans & leases 18,091,428 15,520,062 2,571,366 16.6
Consumer loans 8,424,560 7,168,580 1,255,980 17.5
Revolving credit loans 650,098 577,570 72,528 12.6
Mortgage loans (1) 6,018,372 6,233,582 (215,210) (3.5)
Total loans & leases (1) 33,184,458 29,499,794 3,684,664 12.5
Allowance for loan & lease losses 436,836 405,282 31,554 7.8
Other earning assets 370,047 635,379 (265,332) (41.8)
Total earning assets 45,401,943 42,211,475 3,190,468 7.6
Total assets 48,796,118 45,211,955 3,584,163 7.9
Noninterest-bearing deposits 4,513,694 4,158,512 355,182 8.5
Savings & interest checking 1,817,433 2,325,695 (508,262) (21.9)
Money rate savings 8,692,402 7,764,104 928,298 12.0
Time deposits 15,754,591 13,820,322 1,934,269 14.0
Other deposits 1,047,057 737,575 309,482 42.0
Total deposits 31,825,177 28,806,208 3,018,969 10.5
Short-term borrowed funds 5,569,460 6,803,449 (1,233,989) (18.1)
Long-term debt 6,865,786 5,643,149 1,222,637 21.7
Total interest-bearing liabilities 39,746,729 37,094,294 2,652,435 7.2
Total shareholders' equity $ 3,684,552 $ 3,351,341 $ 333,211 9.9 %
-------------------------------------------------------------------------------------------------------------------------
Average balances
Securities, at amortized cost (1) $ 11,704,053 $ 11,167,944 $ 536,109 4.8 %
Commercial loans & leases (1) 17,434,930 14,798,202 2,636,728 17.8
Consumer loans (1) 8,224,315 7,051,807 1,172,508 16.6
Revolving credit loans (1) 626,938 545,415 81,523 14.9
Mortgage loans (1) 5,940,775 6,585,053 (644,278) (9.8)
Total loans & leases (1) 32,226,958 28,980,477 3,246,481 11.2
Other earning assets 343,333 403,241 (59,908) (14.9)
Total earning assets 44,274,344 40,551,662 3,722,682 9.2
Total assets 47,409,844 43,473,905 3,935,939 9.1
Noninterest-bearing deposits (2) 4,329,801 4,011,299 318,502 7.9
Savings & interest checking (2) 2,136,141 2,472,924 (336,783) (13.6)
Money rate savings (2) 8,407,038 7,548,941 858,097 11.4
Time deposits (2) 14,185,343 13,869,708 315,635 2.3
Other deposits (2) 1,679,143 865,348 813,795 94.0
Total deposits (2) 30,737,466 28,768,220 1,969,246 6.8
Short-term borrowed funds 6,541,752 4,997,749 1,544,003 30.9
Long-term debt 5,815,167 5,594,303 220,864 3.9
Total interest-bearing liabilities 38,764,584 35,348,973 3,415,611 9.7
Total shareholders' equity $ 3,599,439 $ 3,470,084 $ 129,355 3.7 %
As of / For the Quarter Ended
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(Dollars in thousands) 6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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MISCELLANEOUS INFORMATION
Unrealized depreciation on securities
available for sale, net of tax $ (293,350) $ (300,409) $ (285,132) $ (146,741) $ (125,384)
Derivatives (notional value) 2,149,029 1,938,201 1,301,611 1,339,937 1,987,264
Unrealized (loss) gain on
derivatives portfolio (5,234) 1,930 (301) 7,889 15,010
Common stock prices
(daily close): High 31.75 29.19 36.94 36.63 40.25
Low 23.88 22.00 27.31 30.50 33.81
End of period 23.88 28.06 27.38 32.38 36.69
Weighted average shares -
Basic 356,648,577 356,256,209 355,354,165 352,152,679 351,436,110
Diluted 361,367,789 360,563,170 360,618,664 357,996,004 358,314,342
End of period shares outstanding 356,760,711 356,535,839 355,956,505 353,831,601 351,228,226
End of period banking offices 707 708 708 709 722
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NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
(1) Balances reflect the securitization of $493.3 million of loans during 2000 and $304.8 million of loans during 1999.
Excluding the impact of the securitizations and purchase accounting transactions, commercial loans and leases would
have increased 16.8% for the six months, consumer loans would have increased 11.7%, revolving credit loans would have
increased 14.1% and mortgage loans would have decreased 4.0%. In total, average loans would have increased 10.8%.
(2) Excluding the effects of purchase accounting, transaction account deposits would have increased 4.1% for the six months
and time and other deposits would have increased 5.6%. In total, average deposits for the six months would have
increased 4.8%.
</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
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<CAPTION>
(Dollars in thousands, except per share data)6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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INCOME STATEMENTS EXCLUDING
NONRECURRING ITEMS
<S> <C> <C> <C> <C> <C>
Interest income - taxable equivalent
Interest & fees on loans & leases $ 767,634 $ 725,330 $ 706,989 $ 670,947 $ 642,986
Interest & dividends on securities 198,083 195,004 195,514 199,012 192,377
Interest on short-term investments 6,005 4,764 5,363 5,753 5,274
Total interest income - taxable
equivalent 971,722 925,098 907,866 875,712 840,637
Interest expense
Interest on deposits 311,718 289,632 272,794 263,767 253,284
Interest on short-term borrowed funds 95,957 91,990 80,499 73,273 65,364
Interest on long-term debt 92,691 77,904 86,559 81,502 77,753
Total interest expense 500,366 459,526 439,852 418,542 396,401
Net interest income - taxable equivalent 471,356 465,572 468,014 457,170 444,236
Less: Taxable equivalent adjustment 22,239 21,743 22,435 23,306 22,545
Net interest income 449,117 443,829 445,579 433,864 421,691
Provision for loan & lease losses 21,500 22,164 22,019 22,027 23,739
Net interest income after provision for
loan & lease losses 427,617 421,665 423,560 411,837 397,952
Noninterest income
Service charges on deposits 59,136 55,374 56,882 54,631 52,888
Mortgage banking income 23,253 25,818 27,819 35,133 44,234
Investment banking & brokerage fees &
commissions 40,652 44,765 36,572 37,493 38,307
Trust revenue 15,534 15,034 14,671 14,531 13,622
Agency insurance commissions 29,163 28,105 24,791 20,474 16,831
Other insurance commissions 3,315 3,010 2,905 3,175 2,848
Other nondeposit fees & commissions 30,946 27,416 26,704 26,938 28,781
Securities gains (losses), net (104) 5 4 (179) (2,895)
Other income 25,660 17,272 17,702 13,178 12,565
Total noninterest income (1) 227,555 216,799 208,050 205,374 207,181
Noninterest expense
Personnel expense 198,832 202,321 189,969 192,962 187,632
Occupancy & equipment expense 55,077 55,766 54,486 55,264 54,483
Foreclosed property expense 1,141 852 1,299 1,260 735
Amortization of intangibles & mortgage
servicing rights 18,209 17,602 19,522 18,394 18,508
Other noninterest expense 93,096 86,152 97,727 94,630 96,329
Total noninterest expense (2) 366,355 362,693 363,003 362,510 357,687
Income before income taxes 288,817 275,771 268,607 254,701 247,446
Provision for income taxes 95,073 90,244 89,910 81,742 79,545
Net income $ 193,744 $ 185,527 $ 178,697 $ 172,959 $ 167,901
-------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA EXCLUDING
NONRECURRING ITEMS
Basic earnings $ .54 $ .52 $ .50 $ .49 $ .48
Diluted earnings .54 .51 .50 .48 .47
Dividends paid on common shares .20 .20 .20 .20 .175
Book value per common share $ 10.33 $ 10.07 $ 9.85 $ 9.89 $ 9.54
-------------------------------------------------------------------------------------------------------------------------
RATIOS EXCLUDING
NONRECURRING ITEMS
Return on average assets 1.62 % 1.59 % 1.53 % 1.51 % 1.52 %
Return on average equity 21.33 21.05 20.03 20.11 19.33
Net yield on earning assets (taxable
equivalent) 4.22 4.27 4.33 4.29 4.29
Efficiency (taxable equivalent) (3) 52.2 53.0 53.5 54.5 54.6
Noninterest income as a percentage of
total income (taxable equivalent) (3) 32.6 31.8 30.8 31.0 32.1
Equity as a percentage of total assets
end of period 7.6 7.6 7.6 7.6 7.4
Average earning assets as a percentage
of average total assets 93.3 93.5 93.2 93.6 93.3
Average loans & leases as a percentage
of average deposits 105.1 104.6 104.5 101.7 101.2
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CASH BASIS PERFORMANCE (4)
Cash basis earnings excluding
nonrecurring items $ 207,378 $ 198,713 $ 191,865 $ 184,922 $ 179,078
Diluted cash basis earnings per share .57 .55 .53 .52 .50
Return on average tangible assets 1.76 % 1.73 % 1.67 % 1.64 % 1.64 %
Return on average tangible equity 27.57 27.52 26.19 25.89 24.40
Efficiency ratio (taxable
equivalent) (3) 50.2 51.0 51.5 52.6 52.7
-------------------------------------------------------------------------------------------------------------------------
NOTES: Applicable ratios are annualized.
(1) Excluding purchase accounting transactions, noninterest income would have increased 2.5% for the six months and 7.0%
for the quarter compared to the same periods in 1999. Excluding purchase accounting and mortgage income fluctuations,
noninterest income would have increased 16.2% for the six months and 19.6% for the quarter.
(2) Excluding purchase accounting transactions, noninterest expense would have decreased .2% for the six months and .6% for
the quarter compared to the same periods in 1999.
(3) Excludes securities gains (losses), foreclosed property expense and nonrecurring items for all periods.
(4) 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
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<CAPTION>
(Dollars in thousands) 6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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SELECTED BALANCE SHEET DATA
<S> <C> <C> <C> <C> <C>
End of period balances
Securities, at carrying value $ 11,380,895 $ 11,492,192 $ 11,180,757 $ 11,705,343 $ 11,876,419
Commercial loans & leases 18,091,428 17,451,562 16,675,997 16,009,778 15,520,062
Consumer loans 8,424,560 8,096,457 7,882,978 7,681,014 7,168,580
Revolving credit loans 650,098 633,744 635,465 588,701 577,570
Mortgage loans 6,018,372 5,928,849 6,179,969 6,261,942 6,233,582
Total loans & leases 33,184,458 32,110,612 31,374,409 30,541,435 29,499,794
Allowance for loan & lease losses 436,836 429,191 423,140 412,951 405,282
Other earning assets 370,047 261,018 323,495 444,361 635,379
Total earning assets 45,401,943 44,343,640 43,333,686 42,923,049 42,211,475
Total assets 48,796,118 47,556,530 46,420,389 45,966,876 45,211,955
Noninterest-bearing deposits 4,513,694 4,495,517 4,287,674 4,219,124 4,158,512
Savings & interest checking 1,817,433 2,093,270 2,176,812 2,145,209 2,325,695
Money rate savings 8,692,402 8,642,608 8,540,340 8,045,833 7,764,104
Time deposits 15,754,591 13,731,240 14,032,549 14,296,356 13,820,322
Other deposits 1,047,057 1,267,815 529,401 361,994 737,575
Total deposits 31,825,177 30,230,450 29,566,776 29,068,516 28,806,208
Short-term borrowed funds 5,569,460 6,900,935 7,119,303 6,345,105 6,803,449
Long-term debt 6,865,786 6,146,091 5,531,604 6,388,866 5,643,149
Total interest-bearing liabilities 39,746,729 38,781,959 37,930,009 37,583,363 37,094,294
Total shareholders' equity 3,684,552 3,591,592 3,504,890 3,499,295 3,351,341
Goodwill 612,932 618,463 635,814 606,662 516,167
Core deposit & other intangibles 14,084 13,057 11,902 13,987 13,266
Total intangibles 627,016 631,520 647,716 620,649 529,433
Mortgage servicing rights 188,794 185,685 185,606 172,663 159,624
Negative goodwill $ 17,385 $ 18,946 $ 20,507 $ 22,067 $ 23,628
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Average balances
Securities, at amortized cost $ 11,759,692 $ 11,648,414 $ 11,750,362 $ 12,079,741 $ 11,749,619
Commercial loans & leases (1) 17,736,221 17,133,639 16,431,124 15,785,742 15,206,101
Consumer loans (1) 8,338,250 8,110,380 7,921,662 7,527,491 7,254,835
Revolving credit loans (1) 634,346 619,530 592,447 569,536 551,836
Mortgage loans (1) 5,963,708 5,917,842 6,067,538 6,024,189 6,274,034
Total loans & leases (1) 32,672,525 31,781,391 31,012,771 29,906,958 29,286,806
Other earning assets 358,379 328,287 345,484 477,116 434,112
Total earning assets 44,790,596 43,758,092 43,108,617 42,463,815 41,470,537
Total assets 48,014,911 46,804,777 46,232,260 45,352,700 44,431,305
Noninterest-bearing deposits (2) 4,446,756 4,212,846 4,291,102 4,156,018 4,071,044
Savings & interest checking (2) 2,027,603 2,244,679 2,271,037 2,286,051 2,455,137
Money rate savings (2) 8,537,892 8,276,183 8,113,273 7,840,066 7,602,017
Time deposits (2) 14,357,702 14,012,987 14,139,068 13,913,967 13,868,498
Other deposits (2) 1,719,644 1,638,640 866,315 1,217,764 954,166
Total deposits (2) 31,089,597 30,385,335 29,680,795 29,413,866 28,950,862
Short-term borrowed funds 6,393,323 6,690,181 6,227,657 5,908,074 5,619,225
Long-term debt 6,153,609 5,476,725 6,095,361 5,948,654 5,725,722
Total interest-bearing liabilities 39,189,773 38,339,395 37,712,711 37,114,576 36,224,765
Total shareholders' equity $ 3,653,431 $ 3,545,447 $ 3,539,508 $ 3,412,062 $ 3,484,129
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RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 3,363,546 $ 3,282,757 $ 3,145,638 $ 3,097,398 $ 3,021,402
Total 4,435,678 4,463,295 4,315,233 4,248,596 4,176,378
Risk-based capital ratios:
Tier 1 9.6 % 9.7 % 9.5 % 9.7 % 9.8 %
Total 12.7 13.2 13.1 13.4 13.5
Leverage capital ratio 7.1 7.1 6.9 6.9 6.9
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NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
(1) Excluding the effects of securitizations and purchase accounting, commercial loans and leases would have increased
15.7% for the current quarter, consumer loans would have increased 11.0%, revolving credit loans would have increased
14.4% and mortgage loans would have increased 3.1%. In total, average loans would have increased 11.8%.
(2) Excluding the effects of purchase accounting, transaction account deposits would have increased 4.4% for the current
quarter and time and other deposits would have increased 6.4%. In total, average deposits would have increased 5.4%.
</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
--------------------------------------------------------------------------------
(Dollars in thousands) 6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
-------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY ANALYSIS
<S> <C> <C> <C> <C> <C>
Allowance For Loan & Lease Losses
Beginning balance $ 429,191 $ 423,140 $ 412,951 $ 405,282 $ 398,920
Allowance for acquired loans - - 1,120 7,473 169
Provision for loan & lease losses 25,250 23,664 37,692 22,027 23,739
Charge-offs (24,974) (25,943) (36,899) (28,820) (25,357)
Recoveries 7,369 8,330 8,276 6,989 7,811
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Net charge-offs (17,605) (17,613) (28,623) (21,831) (17,546)
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Ending balance $ 436,836 $ 429,191 $ 423,140 $ 412,951 $ 405,282
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Nonperforming Assets
Nonaccrual loans & leases $ 113,677 $ 109,698 $ 110,186 $ 97,429 $ 99,625
Foreclosed real estate 15,144 16,628 15,634 19,926 20,278
Other foreclosed property 12,585 14,654 13,409 10,740 8,812
Restructured loans 501 1,471 1,681 1,951 2,070
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Nonperforming assets $ 141,907 $ 142,451 $ 140,910 $ 130,046 $ 130,785
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Loans 90 days or more past due
& still accruing $ 56,220 $ 43,714 $ 55,015 $ 50,640 $ 45,371
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Asset Quality Ratios
Nonaccrual and restructured loans
& leases as a percentage of total
loans & leases .34 % .35 % .36 % .33 % .34 %
Nonperforming assets as a
percentage of:
Total assets .29 .30 .30 .28 .29
Loans & leases plus
foreclosed property .43 .44 .45 .43 .44
Net charge-offs as a percentage of
average loans & leases .22 .22 .37 .29 .24
Allowance for loan & lease losses as
a percentage of loans & leases 1.32 1.34 1.35 1.35 1.37
Ratio of allowance for loan & lease
losses to:
Net charge-offs 6.17 x 6.06 x 3.73 x 4.77 x 5.76 x
Nonaccrual and restructured loans
& leases 3.83 3.86 3.78 4.16 3.99
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As of / for the Six Months Ended Increase (Decrease)
--------------------------------------------------------------------
6/30/00 6/30/99 $ %
-------------------------------------------------------------------------------------------------------------------------
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C>
Beginning balance $ 423,140 $ 390,069 $ 33,071 8.5 %
Allowance for acquired loans - 2,104 (2,104) (100.0)
Provision for loan & lease losses 48,914 45,594 3,320 7.3
Charge-offs (50,917) (47,367) (3,550) (7.5)
Recoveries 15,699 14,882 817 5.5
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Net charge-offs (35,218) (32,485) (2,733) (8.4)
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Ending balance $ 436,836 $ 405,282 $ 31,554 7.8 %
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Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .22 % .23 %
Ratio of allowance for loan & lease
losses to net charge-offs 6.17 x 6.19 x
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For the Quarter Ended
------------------------------------------------------------------------------
6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
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ANNUALIZED INTEREST YIELDS / RATES (1)
Interest income:
Securities & other 6.74 % 6.67 % 6.64 % 6.52 % 6.49 %
Loans & leases 9.44 9.17 9.05 8.91 8.80
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Total earning assets 8.71 8.49 8.37 8.20 8.12
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Interest expense:
Interest-bearing deposits 4.71 4.45 4.26 4.14 4.08
Short-term borrowed funds 6.04 5.53 5.13 4.92 4.67
Long-term debt 6.04 5.71 5.65 5.45 5.44
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Total interest-bearing liabilities 5.13 4.82 4.63 4.48 4.39
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Net yield on earning assets 4.22 % 4.27 % 4.32 % 4.29 % 4.29 %
==============================================================================
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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: July 18, 2000
