By Allison Prang
BB&T Corp. (BBT) expects its net interest margin to decline in the current quarter compared with the first quarter of this year.
The bank holding company said it expects its net interest margin on a GAAP and core basis to fall between four and six basis points. In the first quarter, the company reported a taxable-equivalent net interest margin of 3.51%, up from 3.44% a year earlier and 3.49% in the fourth quarter.
BB&T said it expects noninterest income to increase between 5% and 7% compared with the second quarter a year prior. It expects second-quarter expenses to be between flat to up 2% year over year. In the first quarter, BB&T -- which is planning to merge with SunTrust Banks -- had recorded $80 million in costs related to M&A and restructuring.
BB&T expects average total loans held for investment to grow between 4% and 6% on an annualized basis compared with the first quarter of this year. BB&T expects net charge-offs to be in the range of 35 to 45 basis points.
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