BB&T Corp. in Winston-Salem, N.C., reported a drop in profit as revenue failed to live up to analysts' expectations.
The $189 billion-asset company's earnings fell 3% from a year earlier, to $488 million. Earnings per share of 67 cents missed the average estimate of analysts polled by Bloomberg by 3 cents.
Lower yields and modest loan growth took a bite out of net interest income, which was flat, at $1.3 million. Total loans rose 3.2%, to $119 billion, though the net interest margin compressed by 19 basis points, to 3.33%. The loan-loss provision increased 75%, to $105 million.
Fee-based income climbed 9.4%, to $997 million, as mortgage banking revenue rose 49%, to $110 million. Still, the noninterest income was below the expectations of several analysts.
Noninterest expenses held steady at $1.4 million.