Published July 19, 2012
BB&T Corp. reported record second-quarter net income of $510 million, up 66% from $307 million in the second quarter of 2011.
For the first six months of this year, BB&T reported net income of $941 million, a 77% increase from the first six months of 2011.
"We are excited to report the strongest net income for any quarter in our history," said Chairman and CEO Kelly S. King. "This record performance reflects a 7% increase in net interest income, a 44% increase in noninterest income, lower credit costs and effective expense control. The net interest margin increased this quarter following the call of our outstanding trust preferred securities.”
King said loan growth improved during the quarter as average loans increased 7% on an annualized basis compared with the first quarter.
That growth was led by a 33% increase in loans originated by BB&T lending subsidiaries, a 20% increase in residential mortgage loans, a 10% increase in direct retail loans and a 9% increase in sales finance loans.
Net revenues totaled $2.5 billion for the second quarter, an increase of 21% compared to the same quarter last year, King said. The bank attributed the growth to its acquisition of the insurance divisions of Crump.
"BB&T had another excellent quarter reducing credit costs," King said. "Nonperforming assets declined 16% compared to last quarter, including a 42% reduction in foreclosed real estate. Costs related to foreclosed properties decreased to $72 million in the second quarter, a 22% decline compared with last quarter, reflecting significant progress in our strategy. Net charge-offs fell to 1.22% of average loans and leases in the quarter compared to 1.28% last quarter, and losses are expected to continue to trend lower this year.
"We are also pleased to have completed the acquisition of Crump's insurance divisions, which is very positive for our shareholders, both strategically and financially," King said.