BB&T Corp.‘s (BBT) third-quarter income rose 74% from a year earlier, as loan loss provisions fell. The bank holding company earned $366 million, or 52 cents a share, for the three months ended Sept. 30 up from $210 million, or 30 cents a share, a year ago. Revenue for the quarter fell to $2.14 billion from about $2.18 billion a year earlier. The provision for loan losses for the quarter declined by $500 million, or 67%, due to improving credit quality, according to BB&T. Chairman and Chief Executive Kelly King said it was the bank’s strongest quarterly results in three years and interest income rose 8% to $1.5 billion. “The increase was driven by significantly improved credit quality and improved net interest income,” King said. “Average deposits increased 32% on an annualized basis compared to the second quarter, and noninterest-bearing deposits and interest checking increased 22% and 14%, respectively.” Third-quarter noninterest income fell nearly 38% to $690 million from $1.11 billion a year ago. Mortgage banking income dropped by one-third to $123 million from $184 million, mostly due to a $58 million decrease in residential mortgage production income on lower volumes and pricing. King said BB&T lowered nonperforming assets by $900 million the past two quarters to the lowest level since early 2009. The bank ended the third quarter with about $2.75 billion of total loans held for sale a 28% increase from $3.83 billion a year earlier, yet up from $1.97 billion at the end of the second quarter. At the end of 2010, BB&T completed its strategy to de-risk its investment securities portfolio and sold about $6.1 billion of agency mortgage-backed securities and replaced them with shorter duration and floating rate securities. BB&T also sold about $400 million of nonagency MBS to reduce the potential for future credit losses. Write to Jason Philyaw.
BB&T 3Q income up 74%
Most Popular Articles
Latest Articles
Kristen Sieffert leads the reverse mortgage presence at The Gathering
FOA’s president spoke about bringing reverse mortgages into the mainstream at the event in Scottsdale, Arizona.