UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 10-Q
Quarterly
Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended:
March 31, 2005
Commission file number: 1-10853
BB&T
CORPORATION
(Exact
name of registrant as specified in its charter)
| North Carolina | 56-0939887 |
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
| 200 West Second Street | 27101 |
| Winston-Salem, North Carolina | (Zip Code) |
| (Address of Principal Executive Offices) |
(336) 733-2000
(Registrant's Telephone Number,
Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ Ö ] No [__]
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ Ö ] No [__]
At April 30, 2005, 546,352,112 shares of the registrant's common stock, $5 par value, were outstanding.
BB&T CORPORATION
FORM 10-Q
March 31, 2005
BB&T Corporation Page 1 First Quarter 2005 10-Q
BB&T
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except per share data)
| March 31, | December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2005 | 2004 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 1,761,610 | $ | 1,782,323 | ||||
| Interest-bearing deposits with banks | 291,293 | 1,003,125 | ||||||
| Federal funds sold and securities purchased under resale agreements or | ||||||||
| similar arrangements | 275,213 | 240,387 | ||||||
| Trading securities at fair value | 478,661 | 334,256 | ||||||
| Securities available for sale at fair value | 19,562,488 | 18,838,196 | ||||||
| Securities held to maturity at amortized cost (fair value $125 at December 31, 2004) | -- | 125 | ||||||
| Loans held for sale | 630,992 | 613,476 | ||||||
| Loans and leases, net of unearned income of $2,517,047 at March 31, 2005 and $2,540,201 at December 31, 2004 | 68,756,940 | 67,549,125 | ||||||
| Allowance for loan and lease losses | (801,573 | ) | (804,932 | ) | ||||
| Loans and leases, net | 67,955,367 | 66,744,193 | ||||||
| Premises and equipment, net of accumulated depreciation | 1,274,167 | 1,283,546 | ||||||
| Goodwill | 4,163,108 | 4,124,241 | ||||||
| Core deposit and other intangible assets | 507,692 | 513,539 | ||||||
| Other assets | 5,114,495 | 5,031,234 | ||||||
| Total assets | $ | 102,015,086 | $ | 100,508,641 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing deposits | $ | 12,646,753 | $ | 12,246,248 | ||||
| Savings and interest checking | 4,481,740 | 4,490,214 | ||||||
| Money rate savings | 23,580,611 | 23,427,797 | ||||||
| Certificates of deposit and other time deposits | 26,127,235 | 27,535,078 | ||||||
| Total deposits | 66,836,339 | 67,699,337 | ||||||
| Federal funds purchased and securities sold under repurchase agreements | 5,766,207 | 5,387,243 | ||||||
| Short-term borrowed funds | 3,385,892 | 1,300,629 | ||||||
| Long-term debt | 11,126,988 | 11,419,624 | ||||||
| Accounts payable and other liabilities | 4,074,376 | 3,827,334 | ||||||
| Total liabilities | 91,189,802 | 89,634,167 | ||||||
| Commitments and contingencies (Note 5) | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $5 par, 5,000,000 shares authorized, none issued or | ||||||||
| outstanding at March 31, 2005 or at December 31, 2004 | -- | -- | ||||||
| Common stock, $5 par, 1,000,000,000 shares authorized; | ||||||||
| 548,638,822 issued and outstanding at March 31, 2005, and | ||||||||
| 550,406,287 issued and outstanding at December 31, 2004 | 2,743,194 | 2,752,032 | ||||||
| Additional paid-in capital | 3,057,625 | 3,121,716 | ||||||
| Retained earnings | 5,315,138 | 5,112,034 | ||||||
| Unvested restricted stock | (62 | ) | (107 | ) | ||||
| Accumulated other comprehensive loss, net of deferred income | ||||||||
| taxes of $(171,156) at March 31, 2005, and $(66,662) at December 31, 2004 | (290,611 | ) | (111,201 | ) | ||||
| Total shareholders' equity | 10,825,284 | 10,874,474 | ||||||
| Total liabilities and shareholders' equity | $ | 102,015,086 | $ | 100,508,641 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
BB&T Corporation Page 2 First Quarter 2005 10-Q
BB&T CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share
data)
| For the Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31, | ||||||||
| 2005 | 2004 | |||||||
| Interest Income | ||||||||
| Interest and fees on loans and leases | $ | 1,052,821 | $ | 912,156 | ||||
| Interest and dividends on securities | 186,788 | 165,784 | ||||||
| Interest on short-term investments | 3,883 | 2,509 | ||||||
| Total interest income | 1,243,492 | 1,080,449 | ||||||
| Interest Expense | ||||||||
| Interest on deposits | 241,299 | 166,777 | ||||||
| Interest on federal funds purchased, securities sold under | ||||||||
| repurchase agreements and short-term borrowed funds | 42,466 | 17,395 | ||||||
| Interest on long-term debt | 110,544 | 89,454 | ||||||
| Total interest expense | 394,309 | 273,626 | ||||||
| Net Interest Income | 849,183 | 806,823 | ||||||
| Provision for credit losses | 41,045 | 63,418 | ||||||
| Net Interest Income After Provision for Credit Losses | 808,138 | 743,405 | ||||||
| Noninterest Income | ||||||||
| Service charges on deposits | 120,772 | 122,763 | ||||||
| Mortgage banking income | 30,193 | 4,419 | ||||||
| Trust revenue | 30,407 | 29,985 | ||||||
| Investment banking and brokerage fees and commissions | 68,883 | 76,598 | ||||||
| Insurance commissions | 152,290 | 123,706 | ||||||
| Bankcard fees and merchant discounts | 25,436 | 22,845 | ||||||
| Other nondeposit fees and commissions | 54,946 | 48,789 | ||||||
| Securities gains (losses), net | 7 | (511 | ) | |||||
| Other income | 33,687 | 46,893 | ||||||
| Total noninterest income | 516,621 | 475,487 | ||||||
| Noninterest Expense | ||||||||
| Personnel expense | 415,116 | 420,275 | ||||||
| Occupancy and equipment expense | 105,744 | 100,147 | ||||||
| Amortization of intangibles | 28,102 | 24,056 | ||||||
| Professional services | 16,289 | 19,408 | ||||||
| Merger-related and restructuring charges (gains) | (2,557 | ) | 9,650 | |||||
| Other expense | 168,012 | 160,841 | ||||||
| Total noninterest expense | 730,706 | 734,377 | ||||||
| Earnings | ||||||||
| Income before income taxes | 594,053 | 484,515 | ||||||
| Provision for income taxes | 198,669 | 156,015 | ||||||
| Net income | $ | 395,384 | $ | 328,500 | ||||
| Per Common Share | ||||||||
| Net Income: | ||||||||
| Basic | $ | .72 | $ | .60 | ||||
| Diluted | $ | .71 | $ | .60 | ||||
| Cash dividends paid | $ | .35 | $ | .32 | ||||
| Weighted Average Shares Outstanding | ||||||||
| Basic | 549,282,008 | 546,576,484 | ||||||
| Diluted | 553,654,679 | 550,547,045 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
BB&T Corporation Page 3 First Quarter 2005 10-Q
BB&T
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For
the Three Months Ended March 31, 2005 and 2004
(Unaudited)
(Dollars in
thousands)
| Accumulated | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares of | Additional | Retained | Other | Total | ||||||||||||||||
| Common | Common | Paid-In | Earnings | Comprehensive | Shareholders' | |||||||||||||||
| Stock | Stock | Capital | and Other (1) | Income (Loss) | Equity | |||||||||||||||
| Balance, January 1, 2004 | 541,942,987 | $ | 2,709,715 | $ | 2,893,812 | $ | 4,309,325 | $ | 21,879 | $ | 9,934,731 | |||||||||
| Add (Deduct): | ||||||||||||||||||||
| Comprehensive income (loss): | ||||||||||||||||||||
| Net income | -- | -- | -- | 328,500 | -- | 328,500 | ||||||||||||||
| Unrealized holding gains (losses) arising during the period | ||||||||||||||||||||
| on securities available for sale, net of tax of $71,762 | -- | -- | -- | -- | 133,357 | 133,357 | ||||||||||||||
| Reclassification adjustment for losses (gains) | ||||||||||||||||||||
| on securities available for sale included in net | ||||||||||||||||||||
| income, net of tax of $199 | -- | -- | -- | -- | 312 | 312 | ||||||||||||||
| Change in unrealized gains (losses) on securities, net of tax | -- | -- | -- | -- | 133,669 | 133,669 | ||||||||||||||
| Change in unrecognized gains (losses) on cash flow hedges, | ||||||||||||||||||||
| net of tax of $(733) | (1,123 | ) | (1,123 | ) | ||||||||||||||||
| Change in minimum pension liability, net of tax of $(1,625) | -- | -- | -- | -- | (3,019 | ) | (3,019 | ) | ||||||||||||
| Total comprehensive income (loss) | -- | -- | -- | &n | ||||||||||||||||