BB&T's first quarter EPS totals $0.69; Earnings total $501 million - Seite 2

"Credit quality continued to improve in the first quarter," said King. "Nonperforming assets, excluding covered assets, declined 6%. Net loan charge-offs remained low at 0.55% of average loans and leases, excluding covered loans. Excluding the impact of an acceleration of charge-offs in the nonprime automobile lending portfolio, charge-offs were 0.47% for the quarter, demonstrating continued improvement from last quarter, and driving our provision expense and other credit costs lower.

"We are also pleased that our regulators did not object to our capital plan and, as a result, we will recommend an increase to our quarterly dividend from $0.23 to $0.24 per share to our Board later this month," said King. "We continue to have one of the highest dividend yields and payout ratios in the industry."

First Quarter 2014 Performance Highlights

• Average total loans and leases held for investment increased 0.9% on an annualized basis compared to the fourth quarter of 2013
  • Average CRE - income producing properties loans increased 10.6%
  • Average sales finance loans increased 7.3%
  • Average loans in the other lending subsidiaries group decreased 8.2%
  • Average C&I loans increased 3.6%
  • Average mortgage loans and direct retail lending were flat on a combined basis
  • End of period loans held for investment increased 2.1% on an annualized basis

• Taxable equivalent revenues were $2.3 billion for the first quarter, down from the prior quarter
  • Net interest margin was 3.52%, down four basis points compared with last quarter due to an increase in the investment portfolio to comply with new liquidity rules
  • Insurance income increased $56 million, or 61.3% annualized, driven by improved market conditions for insurance, higher performance-based commissions, and a change in process related to estimating certain commission income.
  • Mortgage banking income was down $26 million driven by lower residential and commercial loan production

• Asset quality continued to improve
  • Nonperforming assets decreased $67 million, or 6.4%, excluding covered assets
  • Net charge-offs, excluding covered, were 0.55% of average loans for the quarter; core net charge-offs, excluding the impact of an acceleration of charge-offs in the nonprime automobile lending portfolio, were 0.47% in the quarter, compared to 0.49% in the fourth quarter of 2013
  • Delinquent loans improved across the board
  • Allowance for loan loss coverage ratio, excluding covered loans, decreased slightly from 1.73x of nonperforming loans held for investment in the fourth quarter to 1.70x in the first quarter of 2014

• Noninterest expense decreased an annualized 14.8% compared with the fourth quarter of 2013
  • Personnel expense declined 22.1% due to lower incentive compensation and lower pension expense
  • Professional services decreased $13 million due to declining legal and project-related expenses

• Average noninterest-bearing deposits increased $45 million, or 0.5% on an annualized linked quarter basis
  • Average interest-bearing deposit costs fell one basis point to 0.27% this quarter
  • Average noninterest-bearing deposits increased $2.9 billion, or 8.8% compared to the first quarter of 2013

• Capital levels improved across the board
  • Tier 1 common equity to risk-weighted assets was 10.2%
  • Tier 1 risk-based capital was 12.1%
  • Total capital was 14.6%
  • Basel III common equity tier 1 was 10.0%
  • Leverage capital remained strong at 9.5%
  • Tangible common equity to tangible assets was 7.6%

Earnings presentation and Quarterly Performance Summary