BB&T Profit Rises on Loan Growth, M&A

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BB&T in Winston-Salem, N.C., reported higher quarterly profit that reflected loan growth and its recent acquisitions.

The $222 billion-asset company said in a press release Thursday that its second-quarter net income rose 3% from the first quarter and 19% from a year earlier, to $541 million, or 67 cents a share. Comparisons were slightly skewed due to BB&T's recent purchases of Susquehanna Bancshares and National Penn Bancshares.

Still, the company noted in its release that average loan balances, absent National Penn, increased by $860 million during the second quarter.

"Our strategic acquisitions and strong organic growth have allowed us to expand our footprint and achieve record results," Kelly King, BB&T's chairman and chief executive, said in the release. "We look forward to further benefits from our recent transactions as we capture efficiencies and grow in these new markets."

Revenue rose 8% from the first quarter and 18% from a year earlier to $2.7 billion.

Net interest income increased 6% from the prior quarter and 23% from a year earlier to $1.6 billion. Loans increased by 7% from March 31, to $145 billion; the net interest margin compressed by 2 basis points, to 3.41%. Commercial and industrial loans had noticeable growth.

Noninterest income rose by 11% from the first quarter and 11% from a year earlier to $1.1 billion, as an increase in insurance income offset a decline in mortgage revenue.

Noninterest expense rose by 16% from the first quarter and 9% from a year earlier to $1.8 billion. The period included higher personnel expense and $92 million in merger-related costs. BB&T recently completed the purchase of wholesale insurer Swett & Crawford.

The loan-loss provision fell 40% from the first quarter but increased 14% from a year earlier to $111 million.

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