Southern regional bank BB&T (BBT) reported a 37% decrease in quarterly profits on Friday, sending the shares lower.
BB&T reported a profit of $194 million, or 27 cents a share, down from $307 million, or 51 cents a share, from a year ago. The results were well ahead of an average 21 cents that analysts had forecasted, according to Thomson Reuters.
Meanwhile, BB&T's non-performing assets rose to 2.65% of the portfolio from 2.48% of the portfolio in the previous quarter and up from 1.34% last year. Net charge-offs rose to 1.83% from 1.29 in 2008.
The bank saw an increase of 37% to its loan-loss provisions to $725 million from a year ago, but it was up only 3.2% from the previous quarter. BB&T loan-losses rose primarily because the bank purchased failed Colonial Bank last year. BB&T had been one of the better-performing regional banks in the financial crisis.
Because of the acquisition, average deposits rose 29% from a year ago. Excluding the purchase, average deposits were up 7.1%.
"We continue to expect meaningful earnings accretion from the transaction, which provides tremendous strategic benefits for BB&T," said BB&T CEO Kelly King in a statement.
Shares of BB&T were down 4% to $28.92 a share on Friday.
Early-Market Movers: New York Community, Akamai TechnologiesGrowth stocks are back on top
