BB&T 2013 Annual Report Download - page 83

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83
Total FTE revenues were $2.4 billion for the fourth quarter of 2013, down $151 million compared to the fourth quarter of
2012. The decrease in total revenues included a $116 million decline in FTE net interest income, primarily driven by lower
yields on new loans and the sale of a consumer lending subsidiary during October 2013. NIM was 3.56%, down 28 basis
points compared to the fourth quarter of 2012, which reflects covered loan run-off and lower yields on new loans and
securities, partially offset by lower funding costs. Noninterest income decreased $35 million, primarily attributable to a $131
million decline in mortgage banking income, partially offset by a $31 million gain on the sale of a consumer lending
subsidiary, a $22 million improvement in FDIC loss share income and other smaller increases.
Noninterest expense was $1.5 billion for the fourth quarter of 2013, a decrease of $32 million, or 2.2%, compared to the
fourth quarter of 2012. The decrease in noninterest expense was primarily due to a $37 million decline in foreclosed property
expense.
The provision for credit losses, excluding covered loans, for the fourth quarter of 2013 totaled $71 million, a decline of $185
million from the fourth quarter of 2012, as a result of continued improvement in credit quality. Net charge-offs, excluding
covered loans, for the fourth quarter of 2013 were $154 million lower than the fourth quarter of 2012 reflecting improved
credit quality. NPAs declined $483 million, or 31.4% compared to the fourth quarter of 2012.
The provision for income taxes was $243 million for the fourth quarter of 2013 compared to $207 million for the fourth
quarter of 2012. The effective tax rate for the fourth quarter of 2013 was 29.2% compared to 27.4% for the prior year’s fourth
quarter. The increase in the effective tax rate was primarily due to higher levels of pre-tax earnings relative to permanent tax
differences in 2013 compared to 2012.
Non-GAAP Information
Certain amounts have been presented that exclude the effect of the $516 million of adjustments for uncertain income tax
positions that were recognized during 2013. BB&T believes these adjusted measures are meaningful as excluding the
adjustments increases the comparability of certain period-to-period results. The following table reconciles these adjusted
measures to their corresponding GAAP amount:
Table 40
Non-GAAP Reconciliations
Year Ended December 31, 2013 As Reported
Tax
Adjustments
Excluding Tax
Adjustments
(Dollars in millions, except per share data)
N
et income available to common shareholders $ 1,562 $ 516 $ 2,078
Weighted average number of diluted common shares (thousands) 714,363 714,363
Diluted EPS $ 2.19 $ 2.91
N
et income $ 1,729 $ 516 $ 2,245
Average assets 181,262 296 181,558
Return on average assets 0.95 % 1.24 %
N
et income available to common shareholders $ 1,562 $ 516 $ 2,078
Average common shareholders' equity 19,397 296 19,693
Return on average common shareholders' equity 8.06 % 10.55 %
Income before income taxes $ 3,124 $ 3,124
Provision for income taxes 1,395 $ (516) 879
Effective tax rate 44.7 % 28.1 %