Regional bank BB&T Corp. (BBT) Thursday reported a sharp fall in first-quarter profit, reflecting an earlier announced negative adjustment to provision for income taxes. Revenues grew 5 percent from last year. Adjusted earnings beat analysts' expectations, while revenues came in line with view.
In the first quarter, net income available to common shareholders more than halved to $210 million or $0.29 per share from $431 million or $0.61 per share in the previous year.
The latest-quarter result included impact of a previously announced $281 million adjustment related to an unresolved disputed tax liability. Excluding the tax adjustment, earnings per share were $0.69 per share in the first quarter of 2013.
On average, 29 analysts polled by Thomson Reuters expected the company to earn $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Kelly King, chairman and chief executive officer of the company said, "Earnings reflect a strong performance from our insurance group and a record production quarter from our mortgage group."
Revenues for the quarter grew 5 percent to $2.46 billion, which came in line with analysts' consensus estimate.
The company attributed the revenue growth to stronger insurance revenues resulted from its Crump acquisition and 5 percent organic growth with improved pricing in commercial property and casualty premiums.
Net interest income - taxable equivalent was $1.46 billion, compared to $1.47 billion a year earlier. The decrease in taxable-equivalent net interest income reflects an $84 million decrease in interest income, primarily driven by lower yields on new loans and securities, the company said.
Non-interest income grew to $1.00 billion from $871 million in the preceding year, which included a $94 million increase in insurance income. Insurance Services net income was $30 million, an increase of $7 million from the prior year.
Net interest margin - taxable equivalent declined to 3.76 percent from 3.93 percent reported last year.
The company said its Mortgage banking income declined $51 million as margins moved toward more normal levels. Provision for credit losses, excluding covered loans, declined 13.3 percent from last year.
Tier 1 risk-based capital was 10.8 percent, compared to 12.0 percent in the previous year.
BBT closed Wednesday's regular trading at $30.02 on the NYSE.
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