BB&T's 4th quarter EPS totals $0.75, up 6%; 2013 reflects record adjusted earnings

WINSTON-SALEM, North Carolina, Jan. 16, 2014 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported fourth quarter 2013 net income available to common shareholders of $537 million, an increase of 6.1% compared to $506 million earned in the fourth quarter of 2012. Earnings per diluted common share totaled $0.75, an increase of 5.6% compared with the fourth quarter last year. Quarterly results include an after-tax gain of $19 million from the sale of a consumer lending subsidiary.

For the full year 2013, net income available to common shareholders totaled $1.6 billion, resulting in earnings per diluted share of $2.19. These results include $516 million in previously announced tax adjustments. Excluding these adjustments, BB&T's 2013 earnings represent a record $2.1 billion, up 8.5% from 2012.

Fourth quarter earnings produced an annualized return on average assets of 1.31% and an annualized return on average common shareholders' equity of 10.85%. The return on average tangible common equity for the fourth quarter was 17.91%.

"BB&T produced record operating results for the year and accomplished most of our strategic objectives," said Chairman and Chief Executive Officer Kelly S. King. "Our 6% growth in earnings this quarter was driven by a continuing improvement in credit quality and record performances from our trust and investment advisory businesses as well as our investment banking and brokerage businesses.

"Credit quality improved dramatically in 2013 and fourth quarter credit metrics continue to be very strong," said King. "Nonperforming assets, excluding covered assets, declined 9% to their lowest levels as a percent of total assets since 2007. In addition, net loan charge-offs remained low at 0.49% of average loans and leases, excluding covered loans. Net charge-offs have declined by 52% since the first quarter of this year, driving a decrease in our loan loss provision and other credit-related costs.

"While average loans grew modestly excluding the sale of a consumer lending subsidiary early this quarter, demand picked up in the second half of the quarter. Our strongest loan categories for the quarter were sales finance, up an annualized 12%; revolving credit, up 8% and CRE-other, up 5%. Residential mortgage loans were up 10% with 6% coming from organic growth and 4% due to loans transferred from other lending subsidiaries. Excluding the subsidiary sale and a decline in mortgage warehouse lending, average loans increased 1.5% on an annualized basis.