BB&T in Winston-Salem, N.C., met Wall Street's earnings expectations after reporting revenue rose slightly.
The $191 billion-asset company's second-quarter net income available to shareholders rose 7% from a year earlier, to $454 million. Revenue increased 1.3%, to $2.3 billion.
Analysts at Evercore ISI and Barclays wrote in separate notes to clients that BB&T's operating earnings of 69 cents per share met consensus estimates. The research teams backed out a $107 million tax benefit, $25 million in merger-related charges and $172 million in expenses tied to the early extinguishment of debt. BB&T also had $1 million of securities losses and a $34 million loss from selling an insurance business.
Net interest income fell 2.3%, to $1.3 billion. Total loans increased by 3%, to $125 billion, while deposits edged up 0.9%, o $133 billion. The net interest margin narrowed by 16 basis points, to 3.27%.
Noninterest income rose 6.4%, to $1 billion. Mortgage banking income increased by 51%, to $130 million. Investment banking and brokerages fees and commissions rose by 17%, to $108 million. Most other fee businesses were flat from a year earlier, including insurance.
Noninterest expenses, which included the merger-related charges and costs tied to the debt extinguishment, rose 8%, to $1.65 billion.
BB&T used its release to tout its recently completed acquisition of Bank of Kentucky Financial and regulators' approval of its pending purchase of Susquehanna Bancshares.
