Mortgage

BB&T reports record revenues

Added $5.9 billion in loans

Branch Banking & Trust reported its earnings, which showed record revenues, up 18% to $2.8 billion in the second quarter of 2016. BB&T reported an increase of $203 million from the first quarter, and $420 million from last year.  

Net income increased 19.2% annually to $541 million, or $0.66 per diluted common share. Furthermore, if you exclude merger-related and restructuring charges of $58 million, net of tax and a tax benefit related to specific tax-advantage assets of $13 million, net income is then $586 million, or $0.71 per share.

This is up from $527 million or $0.67 per share in the first quarter this year, and from $454 million or $0.62 per share the second quarter last year.

"We are pleased to report record revenues and total assets for the second quarter," Chairman and CEO Kelly King said. "Our strategic acquisitions and strong organic growth have allowed us to expand our footprint and achieve record results.”

“We look forward to further benefits from our recent transactions as we capture efficiencies and grow in these new markets,” King said. "While we remain well-positioned for rising interest rates, our diversified businesses allow us to maintain strong profitability even in a challenging environment.”

And challenging it has been. Mortgage rates are near their all-time lows, which means banks are struggling to balance volume with profitability.

"We were also pleased to receive the Federal Reserve's non-objection to our capital plan that includes a 7% dividend increase and a share repurchase program," King said. 

Average loans and leases held for investment totaled $141.1 billion, up from $134.4 billion last quarter. The acquisition of National Penn contributed $5.9 billion, however even excluding the acquisition, loans and leases increased by $860 million, or 2.6% annually.

"As previously announced, we completed the acquisitions of National Penn and Swett & Crawford on April 1," King said. "The National Penn systems conversion was completed in mid-July, and both of these acquisitions contributed to our strong second-quarter results."

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