BB&T's first quarter EPS totals $0.69; Earnings total $501 million

WINSTON-SALEM, North Carolina, April 17, 2014 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported first quarter 2014 net income available to common shareholders of $501 million, an increase of 139% compared to $210 million earned in the first quarter of 2013. Earnings per diluted common share totaled $0.69, an increase of 138% compared with the first quarter last year. The prior year's results were reduced by a tax-related adjustment totaling $281 million.

First quarter earnings produced an annualized return on average assets of 1.29% and an annualized return on average common shareholders' equity of 9.87%. The return on average tangible common equity for the first quarter was 15.81%.

"Our results for the first quarter were solid in light of normal seasonality. Insurance revenues were very strong for the quarter, credit results continued to improve and expenses were down $53 million compared with last quarter, reflecting improving expense control," said Chairman and Chief Executive Officer Kelly S. King. "Commercial loan growth was strong, particularly commercial real estate lending for income producing properties. Consistent with industry trends, mortgage banking income declined as originations were down from last year's record levels.

"Noninterest expenses decreased an annualized 15% from last quarter," said King. "The reduction was driven by substantially lower personnel costs and professional services expenses. These declines created improvement in our efficiency ratio and helped generate positive operating leverage in the quarter. We continue to expect improvement in the efficiency ratio as revenue growth is expected to outpace expense growth.

"Average loans grew modestly at 0.9% on an annualized basis this quarter, impacted by seasonality and a substantial decline in mortgage activity," said King. "We experienced improvement in commercial lending, with commercial real estate loans for income producing properties increasing 10.6% and average construction and development loans up 3.5%. Sales finance, largely prime automobile lending, grew an annualized 7.3%, while mortgage and direct retail were flat on a combined basis. We expect improving growth in the second quarter with more seasonal strength driving our portfolios.