BB&T's third quarter EPS totals $0.71; Generated strong loan and core deposit growth

WINSTON-SALEM, North Carolina, Oct. 16, 2014 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported third quarter 2014 net income available to common shareholders of $520 million, compared to $268 million earned in the third quarter of 2013. Earnings per diluted common share totaled $0.71 compared to $0.37 in the third quarter of last year. The earlier quarter's results were reduced by tax-related reserve adjustments that totaled $235 million, or $0.33 per diluted share.

"Our results for the third quarter were strong, with solid fee income, broad-based loan and core deposit growth, and continued improvement in credit quality," said Chairman and Chief Executive Officer Kelly S. King. "Noninterest income was up slightly, overcoming seasonally lower insurance income, with mortgage banking income trending higher. Average loan growth was strong during the third quarter, with seasonal demand driving the other lending subsidiaries portfolio up 26%, while the CRE – construction and development portfolio increased 16% and the direct retail lending portfolio was up 13%.

"Credit quality continued to improve during the third quarter," said King. "Nonperforming assets, excluding covered assets, declined 4%, and charge-offs remained below our normalized range of 50 to 70 basis points.

"During the third quarter, we sold approximately $550 million of residential mortgage loans that were primarily performing TDRs at an after-tax gain of $26 million. We also extinguished $1.1 billion of our long-term debt to take advantage of the current low interest rate environment, which resulted in an after-tax loss of $76 million. Both of these transactions will benefit our long-term performance. Additionally, we had favorable developments related to a tax position under examination that resulted in a $50 million tax benefit during the third quarter.

"We also reached agreements to expand our geographic footprint through acquisitions in Texas and the northern Kentucky/Cincinnati markets. The acquisition in Texas will add 41 retail branches with approximately $2.3 billion in deposits. Once this deal closes, we will have more than 120 branches in the fast-growing Texas markets. We also announced the signing of a definitive agreement to acquire The Bank of Kentucky, a $1.9 billion bank with 32 branches and a strong market share in the northern Kentucky/Cincinnati market," said King.