TRUIST FINANCIAL CORP Quarterly Report for Q1 Ended Mar 31, 2009

Summary

Truist Financial Corp. (formerly BB&T Corporation) reported a net income of $318 million for the first quarter of 2009, a decrease from $429 million in the first quarter of 2008. Diluted earnings per common share stood at $0.48, down from $0.78 in the prior year period. Total assets decreased to $143.4 billion from $152.0 billion at year-end 2008, largely due to a significant reduction in securities available for sale. Deposits saw a slight increase in client deposits but a decrease in total deposits. The company faced increased provisions for credit losses, reflecting challenges in housing-related credits, particularly in Georgia, Florida, and the Washington D.C. metropolitan area. Despite these challenges, the company highlighted record production from mortgage banking operations and solid growth in commercial lending and low-cost client deposits, alongside improved operating leverage and efficiency compared to the prior year.

Key Highlights

• 1Net income decreased by 25.9% year-over-year to $318 million, with diluted EPS falling to $0.48 from $0.78.
• 2Total assets declined by 5.7% to $143.4 billion, primarily driven by a 42.1% decrease in securities available for sale.
• 3Provision for credit losses significantly increased to $676 million from $223 million year-over-year, indicating rising credit quality concerns.
• 4Nonperforming assets rose to $2.8 billion from $2.0 billion, with a notable increase in nonaccrual loans and foreclosed assets.
• 5Net charge-offs increased substantially to $388 million from $125 million year-over-year, reflecting deteriorating asset quality.
• 6Noninterest income saw a strong increase of 33.7% to $1.0 billion, driven by record mortgage banking operations and significant net securities gains.
• 7The company maintained strong capital ratios, with Tier 1 leverage at 9.4% and total risk-based capital at 17.1%, exceeding regulatory requirements.

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