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EARNINGS INCREASE 18.2 PERCENT AT BB&T

 WILSON, N.C., Oct. 19 /PRNewswire/ -- BB&T Financial Corporation (NASDAQ-NMS: BBTF) today reported record earnings for both the nine months and the third quarter ended September 30, 1993. For the first nine months of the year, net income increased by 18.2 percent to $69.8 million, compared with $59.1 million in 1992. Fully diluted earnings per share increased 10.2 percent to $2.26 from $2.05 in the first three quarters last year. On an annualized basis, the return on assets was 1.24 percent, compared with 1.18 percent in 1992, while the returns on shareholders' equity were 14.29 percent and 14.47 percent, respectively.
 For the third quarter, net income was $24.4 million, a 22.0 percent


increase over the $20.0 million reported last year. For the quarter, fully diluted earnings per share was $.78, compared to $.68 in 1992.
 In releasing earnings, John A. Allison, Chairman and Chief Executive Officer of BB&T, said; "We are very pleased that we have again experienced a very successful quarter at BB&T. We are well on our way to an eleventh consecutive year of record earnings. Our core earnings continue to be very strong."
 Allison continued, "The increase of $27.2 million or 13.2 percent in net interest income was certainly the major contributor to the growth in earnings in the first three quarters of this year, but our successes in increasing noninterest revenues from our mortgage banking, investment sales, trust and insurance agency operations also provided significant benefits. Excluding gains on sales of securities, noninterest income increased approximately 25 percent in the first three quarters, compared with the comparable period last year. Finally, continuing improvement in loan credit quality allowed us to reduce the provision for loan losses by approximately $10.3 million to a total of $13.3 million for the first nine months of the year."
 Allison further noted that BB&T's strategy of expanding its banking operations through the acquisition of savings institutions has also provided significant momentum in earnings, as well as providing balance sheet growth, expansion of the branching network in existing and new markets and a vast new customer base for marketing products and services. During the first nine months of 1993, BB&T acquired four savings banks in the Winston-Salem and Raleigh operations of a fifth savings and loan association. These transactions added approximately $1 billion in assets.
 At the end of September, BB&T had total assets of $8.09 billion, total loans of $5.56 billion and total deposits of $6.08 billion. Through its subsidiaries in North and South Carolina, BB&T operates 240 offices in 126 cities. BB&T Financial Corporation common stock is traded on the Nasdaq National Market System and is listed under the symbol "BBTF."
 BB&T Financial Corporation
 Financial Highlights(A)
 ($ in thousands, except per share)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 Percent Percent
 Increase Increase
 1993 1992 (Decrease) 1993 1992 (Decrease)
 EARNINGS SUMMARY
 Interest
 income $137,510 126,453 8.7 $ 395,573 392,087 .9
 Interest
 expense 55,850 57,140 (2.3) 162,286 185,965 (12.7)
 Net interest
 income 81,660 69,313 17.8 233,287 206,122 13.2
 Provision for
 loan losses 3,750 7,181 (47.8) 13,250 23,532 (43.7)
 Noninterest
 income:
 Service charges
 on deposit
 accounts 9,221 7,552 22.1 26,024 21,906 18.8
 Other service charges,
 commissions and
 fees 4,007 3,532 13.4 11,608 9,922 17.0
 Mortgage banking
 income 4,802 3,699 29.8 11,640 10,359 12.4
 Gains on sales
 of securities 82 705 (88.4) 1,341 4,712 (71.5)
 Trust income 2,756 2,351 17.2 7,663 6,594 16.2
 Insurance
 commissions 2,726 1,531 78.1 7,284 4,778 52.4
 Other operating
 income 4,500 3,551 26.7 13,576 8,894 52.6
 Total noninterest
 income 28,094 22,921 22.6 79,136 67,165 17.8
 Noninterest
 expense:
 Salaries and
 wages 28,193 22,583 24.8 77,758 64,987 19.7
 Other personnel
 expense 5,973 4,931 21.1 18,654 14,800 26.0
 Net occupancy
 expense 5,341 4,865 9.8 14,991 13,488 11.1
 Furniture and
 equipment
 expense 6,239 4,446 40.3 17,442 13,199 32.1
 Deposit insurance
 premiums 3,351 3,025 10.8 9,996 9,138 9.4
 Other operating
 expense 20,694 16,376 26.4 57,871 49,130 17.8
 Total noninterest
 expense 69,791 56,226 24.1 196,712 164,742 19.4
 Income tax
 expense 11,809 8,824 33.8 32,646 25,926 25.9
 Net income $24,404 20,003 22.0 $69,815 59,087 18.2
 Taxable equivalent
 adjustment $3,519 3,912 (10.0) $10,577 12,375 (14.5)
 SHARE DATA
 Net income:
 Primary $.78 .71 9.9 $2.31 2.14 7.9
 Fully diluted .78 .68 14.7 2.26 2.05 10.2
 Cash dividends
 paid .25 .22 13.6 .75 .66 13.6
 Book value 22.62 20.96 7.9 22.62 20.96 7.9
 Closing market
 price $33.88 29.13 16.3 $33.88 29.13 16.3
 Average primary
 shares
 outstanding 31,408,516 28,090,888 11.8 30,248,866 27,573,916 9.7
 Average fully
 diluted
 shares
 outstanding 31,415,520 30,019,112 4.7 31,011,123 29,559,665 4.9
 Period end common
 shares
 outstanding 30,876,759 27,713,820 11.4 30,876,759 27,713,820 11.4
 Three Months Ended Nine Months Ended
 Sept. 30, Pct. Sept. 30, Pct.
 1993 1992 Increase 1993 1992 Increase
 (Decrease) (Decrease)
 RATIOS (PERCENT)
 Return on average
 assets 1.22 1.18 1.24 1.18
 Return on average
 equity 14.03 13.96 14.29 14.47
 Net interest
 margin, taxable
 equivalent 4.52 4.58 4.63 4.64
 BALANCE SHEET DATA
 Daily Averages:
 Assets $7,956,935 6,740,191 18.1 $7,500,543 6,674,339 12.4
 Investment
 securities 1,969,764 1,721,574 14.4 1,857,843 1,716,857 8.2
 Loans 5,483,700 4,622,254 18.6 5,168,121 4,564,869 13.2
 Earning
 assets 7,482,381 6,354,975 17.7 7,040,171 6,289,862 11.9
 Deposits 6,027,953 5,555,396 8.5 5,870,598 5,500,296 6.7
 Interest-
 bearing
 liabilities 6,444,499 5,464,586 17.9 6,074,134 5,455,248 11.3
 Equity 690,272 569,893 21.1 653,108 545,407 19.7
 Period End:
 Assets $8,089,293 7,037,159 15.0
 Investment securities 1,999,655 1,880,399 6.3
 Loans 5,558,878 4,734,747 17.4
 Earning assets 7,568,286 6,631,378 14.1
 Deposits 6,084,242 5,620,620 8.2
 Interest-bearing
 liabilities 6,548,215 5,717,710 14.5
 Equity 698,370 581,010 20.2
 CAPITAL RATIOS (PERCENT):
 Risk-based capital
 ratios:
 Tier I capital 12.80 12.36
 Total capital 14.80 15.42
 Equity to assets
 (period end) 8.63 8.26
 CREDIT QUALITY
 Nonperforming loans $25,917 39,234 (33.9)
 Foreclosed property 14,357 23,334 (38.5)
 Nonperforming assets 40,274 62,568 (35.6)
 Net charge-offs 6,586 15,044 (56.2)
 Net charge-offs to average
 Loans outstanding .17pct .44
 Nonperforming assets to
 total assets .50 .89
 Allowance for loan losses to
 loans outstanding 1.51 1.53
 Allowance for loan losses
 to nonperforming loans 3.24x 1.85
 (A) BB&T completed the acquisitions of Peoples Federal Savings Bank of Thomasville, Thomasville, N.C., First Fincorp, Inc., Kinston, N.C., Carolina Savings Bank, Wilmington, N.C., and Edenton Savings and Loan Association, Edenton, N.C., on June 26, 1992, Feb. 24, 1993, May 18, 1993, and May 18, 1993, respectively, in transactions accounted for as purchases. BB&T acquired Security Financial Holding Company, Durham, N.C., on Feb. 25, 1993, in a pooling-of-interests transaction.
 -0- 10/19/93
 /CONTACT: B. Gloyden Stewart Jr., senior vice president of Investor Relations, 919-399-4219, or Scott E. Reed, senior executive vice president and treasurer, 919-399-4418, both of BB&T Financial/
 (BBTF)


CO: BB&T Financial Corporation ST: North Carolina IN: FIN SU: ERN

CM-MM -- CH014 -- 4251 10/19/93 18:07 EDT
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Date:Oct 19, 1993
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