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BB&T reports drop in profits

BB&T profits fell 57 percent in the third quarter as the North Carolina bank set aside more money to cover bad real estate loans, including those from recently acquired Colonial Bank.

The Aug. 14 acquisition of Alabama-based Colonial turned BB&T into Florida's fifth largest bank.

The bank posted $157 million in quarterly net income, or 23 cents per diluted share, compared to $362 million, or 65 cents per share, in the year-ago quarter.

BB&T CEO Kelly King said the Colonial acquisition has met all its objectives, including boosting earnings in the near-term at minimal credit risk. Under an agreement with the FDIC, federal regulators are reimbursing BB&T "for the vast majority of the losses" on acquired Colonial assets, King said.

Shares in BB&T closed at $27.03, down $1.22 or 4.3 percent.

BB&T reports drop in profits 10/19/09 [Last modified: Tuesday, October 20, 2009 12:37pm]
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