BB&T Profits Fall, Weighed Down By Restructuring Charges
BB&T, the nation's 10th largest bank, said profits fell 42%, hurt by a number of charges to restructure its portfolio.
Excluding the charges, BB&T's operating profits rose 5%, helped by growth in its fee-based businesses.
Net income fell to $250.8 million, or 46 cents a share, from $429.6 million, or 78 cents a share, a year earlier.
Results included charges of $139.1 million to add tax reserves for leveraged leases, and $46.9 million for a sale of $2.5 billion of securities to prepare for future interest-rate changes.
BB&T said it also incurred $12.1 million of charges for mergers and equity-based compensation.
On an operating basis, profit rose to $448.9 million, or 82 cents a share, from $425.8 million, or 78 cents a share.
Analysts polled by Thomson Financial on average forecast profit of 77 cents a share. Those estimates typically exclude one-time charges.
"I am particularly pleased with our core trends in light of the difficult interest-rate environment and slowing real estate market," Chief Executive John Allison said in a statement.
Lending income rose 6% and fees rose 9%, while expenses also increased 9%, BB&T said.
BB&T, of Winston-Salem, N.C., will host a conference call and webcast at 11 am New York time.