BB&T Corporation (NYSE:BBT) Q1 2018 Earnings Conference Call Transcript

Apr 19, 2018 • 08:00 am ET


BB&T Corporation (NYSE:BBT) Q1 2018 Earnings Conference Call Transcript


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Greetings, ladies and gentlemen, and welcome to the BB&T Corporation First Quarter 2018 Earnings Conference. Currently, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this event is being recorded.

And it is now my pleasure to introduce your host, Alan Greer of Investor Relations for BB&T Corporation. Please go ahead, sir.

Alan Greer

Thank you, and good morning, everyone. Thanks to all of our listeners for joining us today. On today's call, we have Kelly King, our Chairman and Chief Executive Officer; and Daryl Bible, our Chief Financial Officer, who will review the results for the first quarter and provide some thoughts for next quarter and for the full year. We also have Chris Henson, our President and Chief Operating Officer; and Clarke Starnes, our Chief Risk Officer.

We will be referencing a slide presentation during today's comments. A copy of the presentation as well as our earnings release and supplemental financial information are available on the BB&T's website.

Let me remind you that BB&T does not provide public earnings predictions or forecasts. However, there may be statements made during the course of this call that express management's intentions, beliefs or expectations. BB&T's actual results may differ materially from those contemplated by these forward-looking statements.

Please refer to the cautionary statements regarding forward-looking information in our presentation and our SEC filings. Please also note that our presentation includes certain non-GAAP disclosures. Please refer to Page 2 and the appendix of the presentation for the appropriate reconciliations to GAAP.

At this time, I will turn it over to Kelly.

Kelly King

Thanks, Alan. Good morning, everybody, and thanks for joining our call. So, I think we had strong quarter with record earnings and returns, very good expense control, continued healthy asset quality and really we have strong commercial loan growth if you adjust for the mortgage warehouse lending.

Net income available to common shareholders was a record $745 million, up 97% versus the first quarter, and adjusted net income was a record $767 million. Diluted EPS was a record $0.94, up 104% versus first quarter and to adjust for diluted EPS for merger and loss on extinguishment of debt in first quarter is up -- it was $0.97, up 31%. But the way I think about this in time to get it through a real comparable run rate I go into pretax ex mergers and ex loss on extinguishment of debt to get it to real apples-to-apples and it's still up I think strong 5% versus first quarter, which is really good on a 2% environment.

Adjusted returns; our ROA was 1.49%, our common equity was 11.75% and internal tangible was 19.89%, so all very, very good returns. And very importantly we did achieve positive operating leverage on a debt basis versus the fourth quarter and the first. Taxable equivalent revenues totaled $2.8 billion, up 0.6% versus first quarter. Virtually the net interest margin increased 1 basis to 3.44%, our core margin increased 4 basis