BB&T's Earnings Rise on Mortgage Income, Increased Lending

BB&T (BBT) in Winston-Salem, N.C., posted an increase in quarterly earnings on higher mortgage fees and loan growth.

The $183 billion-asset company's earnings rose 8% from the third quarter and 27% from a year earlier, to $506 million, or 71 cents a share. "We achieved record net income for the year and accomplished most of our strategic initiatives," Kelly King, the company's chairman and chief executive, said in a press release Thursday.

Net interest income increased 2% from the third quarter and 4% from a year earlier, to $1.5 billion. Total loans rose 4% from the third quarter and 6% from a year earlier, to $118 billion. BB&T posted loan growth in most sectors.
Deposits increased 2% from the third quarter and nearly 7% from a year earlier, to $133 billion. The net interest margin shrank 10 basis points from the third quarter, to 3.84%.

BB&T's loan-loss provision increased 5% from the third quarter, though it fell 6% from a year earlier, to $256 million. Nonperforming assets fell 11% from a quarter earlier and 37% from the fourth quarter of 2011, to $1.5 billion. Net chargeoffs also fell compared with previous quarters.

Noninterest income increased 6% from the third quarter and 11% from a year earlier, to $1 billion. Mortgage banking income was a key contributor, rising nearly 10% from the third quarter, to $231 million.

B&T also cut costs. Noninterest expenses fell 3% from the third quarter and 8% from a year earlier, to $1.49 billion. Foreclosed property expenses decreased 11% from the third quarter, to $48 million.

"Our performance benefited from strong improvement in credit costs and" growth in net interest income, King said in the release. He also touted the company's ability to control costs even though it bought Crump Insurance and BankAtlantic last year.