Summary
Truist Financial Corporation (TFC), formerly BB&T Corporation, reported net income available to common shareholders of $210 million for the first quarter of 2013, a significant decrease from $431 million in the same period of 2012. This decline was primarily driven by a substantial $281 million adjustment to the provision for income taxes related to an ongoing IRS dispute concerning a 2002 financing transaction. Excluding this one-time tax impact, adjusted diluted earnings per share would have been $0.69, indicating a more stable operational performance. Despite the net income reduction, total revenues increased to $2.5 billion, largely due to a $130 million rise in noninterest income, significantly boosted by the acquisition of Crump Insurance and increased insurance premium market conditions. Net interest income saw a slight decrease due to lower yields in a low-interest-rate environment and a reduction in covered loan balances, though this was partially offset by lower funding costs. The company also reported continued improvement in asset quality, with nonperforming assets (excluding covered assets) decreasing for the twelfth consecutive quarter to their lowest level since the second quarter of 2008.
Financial Highlights
39 data points| Interest Expense | $237.00M |
| Net Income | $210.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 700.27M |
| Shares Outstanding (Diluted) | 711.02M |
Key Highlights
- 1Net income available to common shareholders decreased by 51.3% to $210 million ($0.29 per diluted share) compared to $431 million ($0.61 per diluted share) in the prior year's quarter.
- 2A significant $281 million adjustment to the provision for income taxes negatively impacted reported net income due to an ongoing tax dispute with the IRS.
- 3Excluding the tax adjustment, adjusted diluted EPS was $0.69, and adjusted return on average assets and equity were 1.20% and 10.34%, respectively.
- 4Total revenues increased by $116 million to $2.5 billion, driven by a $130 million increase in noninterest income, notably from insurance operations following the Crump Insurance acquisition.
- 5Net interest margin (NIM) decreased by 17 basis points to 3.76% due to lower yields on new loans and securities in the prevailing low-interest-rate environment.
- 6Nonperforming assets (NPAs), excluding covered assets, decreased by 8.0% to $1.4 billion, marking the twelfth consecutive quarterly decline and reaching the lowest level since Q2 2008.
- 7Average total loans held for investment increased by 5.3% to $113.2 billion, driven by growth across multiple loan portfolios, including residential mortgage and commercial and industrial loans.