BB&T's 4th quarter EPS totals $0.75, up 6%; 2013 reflects record adjusted earnings - Seite 2

"We saw a 4% annualized decline in noninterest expense this quarter, which coupled with increased revenue, drove positive operating leverage and a decline in the efficiency ratio. Expense control remains our focus heading into 2014 and we expect expenses to trend lower and efficiency to improve throughout the year," said King.

"Looking ahead to 2014, we are optimistic about a number of initiatives that will help drive performance," said King. "We recently announced an agreement to acquire 21 retail branches in Texas that will accelerate the growth of our franchise in these fast growing markets. We also continue to expand our wealth, corporate banking, insurance and specialized lending businesses. We will continue to focus on providing the best value proposition in our markets through our community banking model."

Fourth Quarter 2013 Performance Highlights

• Average total loans and leases held for investment decreased 1.2% on an annualized basis compared to the third quarter of 2013; excluding the subsidiary sale, average loans increased 0.3%
  • Average sales finance loans increased 11.9%
  • Average revolving credit loans increased 8.4%
  • Average CRE-other loans increased 5.2%
  • Average loans in the other lending subsidiaries group decreased 20.5%; excluding the subsidiary sale and the transfer of loans to residential mortgage, average loans in other lending increased 3.5%
  • Average C&I loans decreased 3.6%; flat excluding mortgage warehouse lending
  • Average direct retail lending decreased 2.8%
  • End of period loans increased 1.0% on an annualized basis

• Taxable equivalent revenues were $2.4 billion for the fourth quarter, up 3.9% annualized compared with the third quarter
  • Net interest margin was 3.56%, down 12 basis points compared with last quarter due to the subsidiary sale and runoff of covered assets
  • Insurance income increased $16 million, driven by seasonal factors
  • Mortgage banking income was down $17 million driven by lower originations, tighter pricing and the retention of certain mortgages
  • Investment banking and brokerage increased $12 million to a record $101 million

• Asset quality improved significantly
  • Nonperforming assets decreased $109 million, or 9.4%, excluding covered assets
  • Net charge-offs, excluding covered, were 0.49% of average loans for the quarter, flat with the third quarter of 2013 and down from 1.04% in the fourth quarter of 2012
  • Allowance for loan losses (excluding covered loans) as a percentage of nonperforming loans held for investment increased from 1.66% in the third quarter to 1.73% in the fourth quarter of 2013

• Noninterest expense decreased an annualized 4.0% compared with the third quarter of 2013
  • Professional services decreased $14 million primarily due to declining legal and project-related expenses
  • Other expenses declined $14 million
  • Merger-related and restructuring expenses increased $6 million

• Average noninterest-bearing deposits increased $1.1 billion, or 12.8% on an annualized linked quarter basis
  • Average interest-bearing deposit costs fell three basis points to 0.28% this quarter

• Capital levels improved across the board
  • Tangible common equity to tangible assets was 7.3%
  • Tier 1 common equity to risk-weighted assets was 9.9%
  • Tier 1 risk-based capital was 11.8%
  • Leverage capital remained strong at 9.3%
  • Total capital was 14.3%

Earnings presentation and Quarterly Performance Summary