BB&T (BBT) reported $307 million in net income for the second quarter, or 44 cents a share, up 46% from the year-ago period as credit quality improved. That compares to $210 million, or 30 cents a share, in the second quarter of 2010. Like other financial institutions this quarter, the bank dropped its provision for credit losses by nearly 50%, putting aside $328 million for credit losses in 2Q, down from $650 million a year ago. The Winston-Salem, N.C.-based regional bank's nonperforming assets declined to 2.32% of total assets, down from 2.9% a year ago. It also charged off fewer bad loans, 1.71% of average loans and leases were charged off, compared to 2.48% in the year-ago period. "The pace of improvement in our credit quality accelerated this quarter," King said. "In particular, the 25% decrease in inflows of new nonperforming assets and $675 million in sales of problem assets resulted in a 13% decrease in nonperforming assets. In the last year, we have reduced nonperforming assets by approximately $1 billion to the lowest level in two years," Chairman and CEO Kelly King said. The bank kept expenses in check and saw foreclosed property expenses decline nearly 40% to $145 million. New business for the bank was anemic in the area of mortgages. Mortgage banking income for the bank dipped 24.5% to $83 million, down from $110 million a year ago. Total deposits rose to $108 billion by the end of the quarter, up about 3.5% from $104.5 billion at the end of the 2Q 2010. Total assets rose by 2.7% to $159.3 billion. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.