Summary
TRUIST FINANCIAL CORP (TFC), formerly BB&T Corporation, reported a net income available to common shareholders of $454 million for the second quarter of 2015, an increase from $424 million in the prior year's second quarter. Diluted earnings per share were $0.62, up from $0.58 year-over-year. The company's results were impacted by a $172 million loss on the early extinguishment of higher-cost FHLB advances and a $26 million pre-tax loss on the sale of American Coastal. However, these were partially offset by a $107 million tax benefit related to a favorable appeals court decision on a prior tax dispute, and improved mortgage banking income and FDIC loss share income. Total revenues for the quarter were $2.4 billion, driven by a $61 million increase in noninterest income, largely from mortgage banking and investment banking fees, which more than offset a $30 million decrease in net interest income. Net interest margin compressed to 3.27% from 3.43% in the prior year's quarter due to lower loan yields and interest expense reductions. The company completed the acquisition of The Bank of Kentucky Financial Corporation during the quarter, adding $1.6 billion in deposits and $1.2 billion in loans.
Financial Highlights
36 data points| Interest Expense | $177.00M |
| Net Income | $501.00M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 724.88M |
| Shares Outstanding (Diluted) | 734.53M |
Key Highlights
- 1Net income available to common shareholders increased by $30 million year-over-year to $454 million, with diluted EPS rising to $0.62 from $0.58.
- 2A $172 million loss on early extinguishment of FHLB advances and a $26 million pre-tax loss on the sale of American Coastal were incurred.
- 3A significant $107 million tax benefit was recognized due to a favorable court of appeals decision on a prior tax matter.
- 4Noninterest income rose by $61 million, primarily driven by stronger performance in mortgage banking, investment banking, and FDIC loss share income.
- 5Net interest margin decreased to 3.27% from 3.43% year-over-year, influenced by lower loan yields and reduced interest expenses.
- 6The company completed the acquisition of The Bank of Kentucky, adding $1.6 billion in deposits and $1.2 billion in loans.
- 7Asset quality continued to improve, with nonperforming assets (NPAs) decreasing to $729 million at June 30, 2015, from $782 million at December 31, 2014.