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.

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