Surry Business

BB&T (NYSE: BBT) reported Oct. 18 that diluted earnings rose by 3 cents to 80 cents a share in the third quarter. The earnings fell 4 cents short of the average forecast by analysts surveyed by Zacks Investment Research.

However, the WInston-Salem-based bank increased its profit in the quarter while rivals Bank of America Corp. and SunTrust Banks Inc. reported sharp declines in net income.

“The third quarter presented significant challenges for the financial services industry, including unusual disruptions in financial markets and a rising level of loan losses,” said Chairman and Chief Executive Officer John A. Allison. “…I am pleased with a number of other positive accomplishments for the quarter. In particular, this quarter represents BB&T’s fourth consecutive quarter of generating positive operating leverage and improved operating efficiency through solid execution of our emphasis on expense control. Also, our loan and deposit growth continued to be healthy during the quarter. In addition, last week we received the results of the FDIC’s annual report on deposit market share, which were very positive for BB&T. On balance, our overall performance was very solid in a difficult
environment.”

BB&T’s net income in the third quarter of 2007 totaled $444 million, or $.80 per diluted share, up 6.5 percent and 3.9 percent, respectively, from $417 million, or $.77 per diluted share, in the third quarter of 2006. Operating earnings for the third quarter of 2007 grew to $448 million, or $.81 per diluted share, compared to $424 million, or $.78 per diluted share, in the third quarter of 2006.

Income from loan revenue was up 4.3 percent to $978 million before the bank raised its loan-loss provision by $43 million to $105 million during the quarter. Including the loan-loss provision increase, income from loans was down less than 1 percent at $873 million.

Noninterest income was up 2.3 percent to $675 million, including a 14 percent increase in revenue from service charges on deposit accounts at $157 million. “This increase was primarily attributable to growth in revenues from overdraft items,” the bank said in its quarterly report.

BB&T has five offices in Surry County: 108 E. Main in Pilot Mountain, 1661 N. Bridge St. and 202 W. Main in Elkin, and 541 N. Main and 2151 Rockford St. in Mount Airy.