BB&T Bank Weathers Servicing Impairment Charge

BB&T Corp. reported net income totaling $327.7 million, or $0.69 per share, in the first quarter despite a $37 million writedown to the value of its mortgage servicing portfolio. The company's net income increased 5.8%, compared from the first quarter of 2002.

Chairman and CEO John Allison said he was pleased to announce "solid first-quarter earnings, particularly given the continued weakness in overall economic conditions."

The company reported non-interest income of $444.9 million for the quarter, an increase of 24.4% from the year- earlier period. BB&T said that the increase was primarily driven by mortgage banking income, insurance commissions and income from non-deposit services.

However, income from mortgage banking was reduced by a $36.9 million writedown in the value of its mortgage servicing rights because of high levels of refinancing. However, the company said the writedown was largely offset by gains from the sale of securities.

A year earlier, BB&T had reported a servicing writedown of $9.8 million for the first quarter.

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