Upcoming AWS Coverage on Trustmark Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 26, 2017 / Active Wall St. announces its post-earnings coverage on BB&T Corp. (NYSE: BBT). The Company announced its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on January 19, 2017. The Winston-Salem, North Carolina-based Company's quarterly diluted EPS grew 12.5% y-o-y, meeting analysts' consensus estimates. Register with us now for your free membership at:

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One of BB&T's competitors within the Regional - Southeast Banks space, Trustmark Corp. (NASDAQ: TRMK), reported its Q4 2016 financial results in a news release on Tuesday, January 24, after close of the market. AWS will be initiating a research report on Trustmark in the coming days.

Today, AWS is promoting its earnings coverage on BBT; touching on TRMK. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=BBT

http://www.activewallst.com/registration-3/?symbol=TRMK

Earnings Reviewed

In Q4 FY16, BB&T's taxable-equivalent revenues were $2.8 billion, up 8.3% y-o-y, and at par with Wall Street's consensus estimates. In the reported quarter, the Company's net interest income grew 4.1% to $1.57 billion from $1.50 billion in Q4 FY15. Furthermore, noninterest income rose 14.5% in Q4 FY16 to $1.16 billion from $1.02 billion in the prior year's same quarter.

For Q4 FY16, the regional banking Company reported net earnings applicable to common shareholders of $592 million, or $0.72 per diluted share, in Q4 FY16, compared to $502 million, or $0.64 per diluted share, in Q4 FY15. Excluding merger-related and restructuring charges, the Company's adjusted EPS stood at $0.73 per diluted share, meeting market consensus estimates.

In full year FY16, BB&T's net interest income was $6.32 billion, up 13.0% from $5.59 billion in FY15. The Company reported noninterest income of $4.47 billion in FY16 compared to $4.02 million in the previous year. Meanwhile, the Company's net earnings applicable to common shareholders also rose to a record $2.26 billion or $2.77 per diluted share during FY16 from $1.94 billion, or $2.56 per diluted share, in the previous year.

Performance Metrics

For the reported period, BB&T' return on average assets was 1.16% compared to 1.03% in the prior year's comparable quarter. In Q4 FY16, return on average risk-weighted assets stood at 1.45% compared to 1.29% in Q4 FY15. The Company provided 8.75% of return on average common shareholders' equity during the reported period compared to 8.06% in Q4 FY15. Furthermore, taxable equivalent net interest margin for Q4 FY16 was 3.32% versus 3.35% in Q4 FY15.

The bank's common equity tier (CET) 1 ratio stood at 10.2% as on December 31, 2016, compared to 10.3% as of December 31, 2015. The Company's adjusted efficiency ratio was 59.5% in Q4 FY16 compared to 59.2% in Q4 FY15. As of December 31, 2016, tangible common equity per common share was $20.18 compared to $19.82 as on December 31, 2015. Furthermore, total nonperforming assets balance as on December 31, 2016, stood at $813 million, or 0.37% of total assets, compared to $712 million, or 0.34% of total assets, at the end of last year's comparable quarter.

Segment Performance

During the quarter ended on December 31, 2016, Community Banking segment's net interest income came in at $984 million compared to $853 million in the year ago comparable quarter. In the reported quarter, noninterest income rose to $317 million from $301 million in Q4 FY15. Furthermore, the segment's net income came in at $334 million compared to $262 in the prior year's corresponding quarter.

Residential Mortgage Banking segment's net interest income was down to $109 million in Q4 FY16 from $111 million in Q4 FY15. However, segment's net income improved to $64 million in Q4 FY16 from $49 million in Q4 FY15.

In Q4 FY16, Dealer Financial Services, net interest income improved to $203 million from $192 million in Q4 FY15. Furthermore, segment's net income came in flat at $41 million.

Specialized Lending segment's net interest income came in at $120 million versus $113 million reported in the year ago same quarter. The segment's net income fell to $55 million in Q4 FY16 from $63 million in Q4 FY15.

In Q4 FY16 Financial Services segment's net interest income advanced to $161 million from $145 million in Q4 FY15. The segment's net income for the reported quarter came in at $122 million, compared to $104 million in Q4 FY15.

Dividend and Buyback

In a separate press release on January 24, 2017, BB&T Corp.'s Board of Directors announced regular quarterly dividends of $0.30 per common share, which is payable March 01, 2017, to shareholders of record on February 10, 2017.

During Q4 FY16, the Company repurchased 4.1 million shares for $160 million through open market share repurchases. Furthermore, the Company retired 3.4 million shares under its previously announced $200 million accelerated share repurchase (ASR) program.

Stock Performance

On Wednesday, January 25, 2017, the stock closed the trading session at $46.98, rising 2.22% from its previous closing price of $45.96. A total volume of 4.99 million shares have exchanged hands. BB&T's stock price advanced 21.64% in the last three months, 29.00% in the past six months, and 54.19% in the previous twelve months. The Company's shares are trading at a PE ratio of 17.49 and have a dividend yield of 2.55%.

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SOURCE: Active Wall Street