BB&T Corp. on Monday upwardly revised the amount of home equity loans it wrote off in the first quarter, but said the revisions had no impact on overall results reported earlier this month.
In a filing with the Securities and Exchange Commission, the Winston-Salem, N.C.-based regional bank disclosed that certain charge offs were inadvertently excluded from the calculation of gross charge off rates in the company's earnings report on April 17. Charge offs are loans the bank considers won't be repaid.
Home equity loan charge offs totaled 1.90 percent of home equity loans, not the 1.09 percent originally reported, the bank said.
As such, Fox-Pitt Kelton analyst Albert Savastano on Monday expressed concern over the significant jump in problem home equity loans in North and South Carolina, specifically.
"As these two states have greater economic stress, we believe credit losses will show in BB&T's numbers at an accelerated rate," wrote Savastano in a note to clients.
Savastano maintained an "Underperform" rating and $17 target price on the stock. He also said that a cut in the company's 47-cent quarterly dividend is likely.
"BB&T is not expected to earn its dividend in 2009 and with the increased stress in North and South Carolina, we continue to expect credit costs to pressure earnings," Savastano wrote.
BB&T will hold its annual shareholders meeting on Tuesday, and Savastano said he would not be surprised if the bank cuts its dividend at that time.
Earlier this month, BB&T reported a 37 percent decline in first-quarter profit, as loans that were overdue or written off as unpaid surged and the regional bank put aside more cash to cover souring credit. But results beat Wall Street's expectations.
Shares slipped 48 cents, or 2.1 percent, to $22.94 in afternoon trading.
In a filing with the Securities and Exchange Commission, the Winston-Salem, N.C.-based regional bank disclosed that certain charge offs were inadvertently excluded from the calculation of gross charge off rates in the company's earnings report on April 17. Charge offs are loans the bank considers won't be repaid.
Home equity loan charge offs totaled 1.90 percent of home equity loans, not the 1.09 percent originally reported, the bank said.
As such, Fox-Pitt Kelton analyst Albert Savastano on Monday expressed concern over the significant jump in problem home equity loans in North and South Carolina, specifically.
"As these two states have greater economic stress, we believe credit losses will show in BB&T's numbers at an accelerated rate," wrote Savastano in a note to clients.
Savastano maintained an "Underperform" rating and $17 target price on the stock. He also said that a cut in the company's 47-cent quarterly dividend is likely.
"BB&T is not expected to earn its dividend in 2009 and with the increased stress in North and South Carolina, we continue to expect credit costs to pressure earnings," Savastano wrote.
BB&T will hold its annual shareholders meeting on Tuesday, and Savastano said he would not be surprised if the bank cuts its dividend at that time.
Earlier this month, BB&T reported a 37 percent decline in first-quarter profit, as loans that were overdue or written off as unpaid surged and the regional bank put aside more cash to cover souring credit. But results beat Wall Street's expectations.
Shares slipped 48 cents, or 2.1 percent, to $22.94 in afternoon trading.
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