Summary
BB&T Corporation (TFC) reported its first quarter 2004 financial results, with net income reaching $328.5 million, or $0.60 per diluted share. While net income saw a slight increase year-over-year, diluted earnings per share decreased to $0.60 from $0.69 in the prior year's quarter. Operating earnings, which exclude merger-related expenses, stood at $334.6 million, a modest 1.2% increase, with diluted operating earnings per share at $0.61, down from $0.70 in Q1 2003. The company highlighted significant loan growth, with average loans and leases increasing by 10.0% year-over-year, the strongest quarterly growth in three years. Asset quality also continued to improve, with nonperforming assets as a percentage of total assets decreasing. However, a substantial decrease in mortgage banking income negatively impacted overall performance, primarily due to higher mortgage rates and writedowns in mortgage servicing rights. Despite this, BB&T expressed confidence in improving performance throughout the remainder of 2004 and reiterated its full-year earnings per share projection.
Key Highlights
- 1Net income for Q1 2004 was $328.5 million ($0.60/share), a slight increase from $327.7 million in Q1 2003.
- 2Operating earnings were $334.6 million ($0.61/share), up 1.2% from $330.8 million in Q1 2003, but diluted operating EPS decreased.
- 3Average loans and leases grew by 10.0% to $63.2 billion, marking the strongest quarterly growth in three years.
- 4Mortgage banking income experienced a substantial decrease, significantly impacting the quarter's results.
- 5Noninterest income grew by 7.5% to $478.2 million, driven by strong performance in insurance, investment banking, and service charges.
- 6Asset quality improved, with nonperforming assets at 0.47% of total assets and net charge-offs at 0.36% of average loans.
- 7BB&T reiterated its 2004 operating earnings per diluted share projection of $2.75 to $2.90.