BB&T reports strong fourth quarter earnings and record quarterly revenues; Diluted earnings per share up 16.1 percent annualized compared to third quarter 2017

WINSTON-SALEM, North Carolina, Jan. 18, 2018 /PRNewswire/ -- BB&T Corporation (NYSE: BBT) today reported strong earnings for the fourth quarter of 2017. Net income available to common shareholders was $614 million. Earnings per diluted common share were $0.77 for the fourth quarter of 2017, up 16.1 percent annualized from $0.74 last quarter.

Excluding pre-tax merger-related and restructuring charges of $22 million ($14 million after-tax) and adjustments related to tax reform that resulted in a net after-tax expense of $43 million, net income available to common shareholders was a record $671 million, or $0.84 per diluted share, up 30.5 percent annualized from $0.78 last quarter.

Net income available to common shareholders was $597 million ($0.74 per diluted share) for the third quarter of 2017 and $592 million ($0.72 per diluted share) for the fourth quarter of 2016.

For the full year, net income available to common shareholders was $2.2 billion, or $2.74 per diluted share. For 2016, net income available to common shareholders was $2.3 billion, or $2.77 per diluted share. Excluding merger-related and restructuring charges and selected items, adjusted diluted earnings per share was $3.14 for 2017, up 9.4 percent compared to $2.87 for 2016.

"We had a very strong fourth quarter with record revenues and good expense control," said Chairman and Chief Executive Officer Kelly S. King. "Taxable-equivalent revenues were $2.9 billion, up 7.4 percent annualized compared to last quarter. We expect to have strong revenue growth in 2018.

"Total expenses for the quarter were $1.9 billion and our GAAP efficiency was 64.7 percent, primarily due to expenses incurred in connection with the passage of tax reform," King said. "Our adjusted efficiency ratio of 57.2 percent reflects significant progress in our optimization efforts.

"While average total loans were essentially flat compared with last quarter, core loans increased an annualized 3.9 percent, which excludes prime auto, residential mortgage and PCI loans that decreased as planned," said King. "Our credit quality is very strong, as nonperforming assets improved and loans 90 days or more past due and net charge-offs were relatively stable at very low levels."

Fourth Quarter 2017 Performance Highlights

• Taxable-equivalent revenues were a record $2.9 billion for the fourth quarter, up $53 million from the third quarter of 2017
• • Net interest margin was 3.43 percent, down five basis points
  • Noninterest income was up $59 million driven by higher insurance and other income
  • Fee income ratio was 42.7 percent, compared to 41.4 percent for the prior quarter