Summary
Truist Financial Corp. (TFC), formerly BB&T Corporation, reported solid performance for the third quarter of 2014, with net income available to common shareholders increasing significantly year-over-year, primarily driven by a favorable tax adjustment in the prior year and a tax benefit in the current quarter. Total revenues saw a slight decrease, mainly due to lower net interest income, influenced by a decline in interest income from lower yields on new loans and the runoff of higher-yielding covered loans, although this was partially offset by an increase in insurance income. The company continued to manage its balance sheet effectively, with average loans held for investment increasing quarter-over-quarter, driven by growth in various lending portfolios, while average deposits also saw a modest increase, with an improving mix towards noninterest-bearing deposits. Asset quality showed continued improvement, with non-performing assets decreasing and nearing 2007 levels. The company also maintained strong capital ratios, well above regulatory requirements, reflecting a sound financial position. Truist also announced strategic branch acquisitions in Texas and the acquisition of The Bank of Kentucky, indicating a proactive approach to growth and market expansion.
Financial Highlights
36 data points| Interest Expense | $192.00M |
| Net Income | $553.00M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 720.12M |
| Shares Outstanding (Diluted) | 729.99M |
Key Highlights
- 1Net income available to common shareholders was $520 million, or $0.71 per diluted share, a substantial increase from the prior year quarter.
- 2Total revenues decreased slightly to $2.3 billion, primarily due to a decline in net interest income, while noninterest income saw an increase driven by insurance and other fees.
- 3The provision for credit losses, excluding covered loans, decreased significantly due to improved credit quality and a loan sale, leading to lower net charge-offs.
- 4Average loans held for investment grew by $1.5 billion quarter-over-quarter, driven by growth in commercial and industrial, sales finance, and other lending subsidiaries.
- 5Average deposits increased by $1.0 billion, with an improved mix towards noninterest-bearing deposits (29.2% of total average deposits).
- 6Non-performing assets (NPAs) continued to decline, reaching their lowest level since late 2007, and NPAs as a percentage of loans and leases plus foreclosed property were 0.75%.
- 7Capital ratios remained strong, with Tier 1 common capital ratio at 10.5%, well above regulatory requirements.