BB&T reports strong core results; Earnings reduced by mortgage and tax-related charges - Seite 2

Second Quarter 2014 Performance Highlights

• Average total loans and leases held for investment increased 7.2% on an annualized basis compared to the first quarter of 2014
  • Average C&I loans increased 10.0%
  • Average sales finance loans increased 25.5%
  • Average CRE – construction and development loans increased 18.3%
  • Average loans in the other lending subsidiaries group increased 12.4%
  • Average CRE – income producing properties loans increased 3.5%
  • Average direct retail loans increased approximately 8% adjusted for last quarter's QM transfer
• Taxable equivalent revenues were $2.3 billion for the second quarter, an annualized increase of 3.0% compared to the first quarter
  • Net interest margin was 3.43%, down nine basis points compared with the prior quarter due to lower rates on new loans and securities, and covered loan runoff
  • Mortgage banking income was $12 million higher than the prior quarter driven by an increase in residential mortgage loan production and sales
  • Bankcard fees and merchant discounts increased $8 million to a record $70 million
• Average deposits increased $3.9 billion, or 12.4% annualized, compared to the prior quarter
  • Average noninterest-bearing deposits increased $1.2 billion, or 14.1%
  • Average interest-bearing deposit costs fell one basis point to 0.26%
  • Deposit mix continued to improve, with noninterest-bearing deposits representing 28.3% of total deposits compared to 25.8% in the same period of last year
• Asset quality continued to improve
  • Nonperforming assets, excluding covered assets, decreased $70 million, or 7.1%
  • Net charge-offs, excluding covered, were 0.40% of average loans for the quarter, the lowest level since 2007
  • The allowance for loan loss coverage ratio, excluding covered loans, increased to 1.78 times nonperforming loans held for investment in the second quarter compared to 1.70 times in the first quarter
• Capital levels remained strong across the board
  • Tier 1 common equity to risk-weighted assets was 10.2%
  • Tier 1 risk-based capital was 12.0%
  • Total capital was 14.3%
  • Basel III common equity tier 1 was 10.0%
  • Leverage capital remained strong at 9.5%
  • Tangible common equity to tangible assets was 7.7%

Earnings presentation and Quarterly Performance Summary