BB&T reports second quarter results; Adjusted diluted EPS totals $0.69 per share
"We are pleased to report solid results for the quarter, led by improved loan growth and strong credit quality," said Chairman and Chief Executive Officer Kelly S. King. "We completed several strategic transactions during the second quarter and reached an important milestone with the recent approval of the Susquehanna merger.
"Revenues were $2.4 billion, up $31 million, or 1.3% compared with the second quarter of 2014. These results were driven by continued strength in our fee-based businesses.
"We successfully completed our acquisition of The Bank of Kentucky," said King. "This strategic transaction added $1.6 billion in deposits and boosted us to the No. 2 marketplace ranking in Kentucky, and we look forward to expanding on this solid base with our diverse product offerings and strong customer focus.
"We were very pleased to receive regulatory approval to acquire Susquehanna Bancshares, which we expect to close on August 1. This transaction is very important strategically and will drive improved growth and efficiency in coming quarters.
"We reported an income tax benefit of $107 million as a result of a decision by the U.S. Court of Appeals related to previously disallowed deductions in connection with a financing transaction. We also extinguished nearly $1 billion of higher cost FHLB borrowings resulting in a $172 million pre-tax loss, or $107 million after-tax. The debt extinguishment will modestly benefit our net interest margin going forward.
"We also completed the sale of American Coastal and the related purchase of additional ownership in AmRisc," said King. "The sale resulted in an after-tax loss of $34 million due to the allocation of goodwill upon disposal. These transactions eliminate our exposure to future underwriting losses and significantly increase our share of a historically strong fee-based business."
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