BB&T Corporation (NYSE: BBT) recently terminated $2.9 billion of higher-cost FHLB advances, resulting in a loss on early extinguishment of $392 million. This strategic action will lower the company’s future borrowing costs and provide a boost to future margins and earnings. The stock opened weak this morning and fell over 1.7% (as of 11:11AM EST January 19^th, 2017; Source: Google finance).

Meanwhile, BBT reported an adjusted earnings per share of 73 cents in the fourth quarter 2016 ended 31^st December, which is in line with the analysts’ estimates for the adjusted earnings per share of 73 cents. However, the company had reported the adjusted revenue of $2.73 billion in the fourth quarter 2016, missing the analysts’ estimates for revenue of $2.77 billion. After excluding the pre-tax merger-related and restructuring charges of $13 million and $8 million after tax, the net income available to common shareholders is $600 million.

On the other hand, in the fourth quarter 2016, the noninterest expense has increased 4.4 percent over the same period, due to the strong leverage from acquisitions and excellent control of operating costs. The Net interest income on a taxable-equivalent basis fall $44 million, Net interest margin has fallen seven basis points to 3.32%, while noninterest income is approximately flat in Q4 2016. The fee income ratio was 42.6%, compared to 41.9% for the prior quarter. The average deposits had increased to $160.1 billion compared to $159.5 billion for the prior quarter. The company has a strong deposit mix, with average noninterest-bearing deposits representing 32.1% of total deposits, as compared to 31.7% in the prior quarter.

The capital level in Q4 2016 has remained strong as the Common equity tier 1 to risk-weighted assets was 10.2%, or 10.0% on a fully phased-in basis. The nonperforming assets have decreased to $30 million, due to the reductions in commercial and industrial nonperforming loans.

Meanwhile, during the fourth quarter in 2016, BBT has repurchased 7.5 million shares through both open-market purchases and an accelerated share repurchase program.

For the full year 2016, the net income available to common shareholders grew 16.7 percent to $2.3 billion, from 2015. The company has reported the earnings per diluted share of $2.77 compared to $2.56 for 2015. In addition, the revenues grew 12.3 percent to $11.0 billion, from 2015.

BBT stock has risen 38% in the last one year (source: Google Finance).