BB&T in Winston-Salem, N.C., posted solid third-quarter results that reflected organic loan growth and its purchase of Susquehanna Bancshares in Lititz, Pa.
The $209 billion-asset company reported Thursday that net income available to shareholders fell 3.4% from a year earlier, to $492 million, though the amount included $77 million in merger-related expenses. Early indications from analysts were that BB&T topped Wall Street’s expectations for the quarter.
Revenue growth was a key component of BB&T’s quarterly performance, increasing 7% from a year earlier, to $2.45 billion. (Revenue rose slightly from a year earlier when excluding the $150 million that Susquehanna contributed.)
"We had a strong overall quarter with higher revenues and improved net interest margin, continued excellent results in asset quality, and strong capital and liquidity," Kelly King, BB&T’s chairman and chief executive, said in the release.
Net interest income increased 9% from a year earlier, to $1.5 billion. Total loans rose 14%, to $137 billion, while deposits increased by 13%, to $148 billion. The net interest margin widened by 8 basis points from the second quarter, but narrowed by 3 basis points from a year earlier, to 3.35%. BB&T said that higher yields on Susquehanna loans contributed to the expanded margin.
Commercial and industrial loans increased by 16% from a year earlier, to $46.5 billion, while mortgages fell by 5%, to $30 billion.
Noninterest income rose by 4%, to $988 million. Higher mortgage and investment banking income offset a decline in insurance income.
Merger-related costs drove up noninterest expenses, which increased 4%, to $1.6 billion. Personnel expense rose by 11%, largely reflected the addition of Susquehanna.
