BB&T Posts $194m Net Income on Record Mortgage Origination
BB&T Corporation posted a $194m net income, or $0.51 per diluted common share, in Q409, on record origination production in 2009. In the Q408, BB&T earned $307m, or $0.51 per diluted common share. For the full year of 2009, the company reported a net income of $877m, compared with $1.5bn earned in 2008. BB&T earned $142m in mortgage-related revenue in Q409, increasing 86.8% from the same quarter in 2008. The growth comes from both origination and increased servicing efforts, according to the company release. BB&T originated $5.3bn in mortgage loans during Q409 and reported a record production of $28.2bn for the entire year. "We enjoyed record net revenues for 2009, driven by strong mortgage banking income of $658 million and record insurance income, which exceeded $1bn, as well as solid growth in net interest income,” said CEO Kelly King. “Importantly, we experienced a significantly slower growth rate in nonperforming assets in the fourth quarter compared to recent quarters.” BB&T holds $164bn in total assets, and of those, 2.65% are nonperforming assets, up from 2.48% in Q309 and 1.34% at the end of 2008. Continued deterioration in housing-related credits drove the increases in non-performing assets and the provision for credit losses, which grew to 2.51% in Q409 from 2.29% in 309. “Our Colonial Bank integration is progressing well and all remaining systems are scheduled to be converted by the end of the second quarter. We continue to expect meaningful earnings accretion from the transaction, which provides tremendous strategic benefits for BB&T,” King said. Write to Jon Prior. The author held no relevant investments.