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BB&T Recaptures $4 Million of Servicing Value

BB&T Corp. reported net income of $416.9 million in the fourth quarter, 37% higher than in the fourth quarter of 2003.

Earnings per share were $0.75, up from $0.55 a year earlier. The bank said that fourth-quarter results were negatively affected by $71.8 million of merger-related and nonrecurring items. Full-year results were even better. BB&T earned $1.56 billion in 2004, an increase of 46.3% from 2003.

"2004 marks the 23rd consecutive year that BB&T has achieved record operating results," said chairman and CEO John Allison in a company news release. He also said the company met its strategic goals, including increasing the ratio of fee-based revenue to total revenue.

The company said mortgage lending contributed to a loan growth rate of 9.3% from the fourth quarter of 2003. Average mortgage loans on the company's books increased 11.1% year-over-year.

Revenue from mortgage banking totaled $26.9 million in the fourth quarter, down by $14.5 million.

The bank benefited from a $4 million net recapture of the valuation from mortgage servicing rights in the fourth quarter. However, that was down sharply from a $20 million reversal of impairment during the fourth quarter of 2003.

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