Seems like the board has given up on discussing BBT's future. Stock price has been creeping up slowly for the past year; no great news coming out, I predict when the price of BBT is in the upper 40's, prospective buyers will start banging on our doors. If a decent premium is offered, BBT will be long gone.
It appears to me that BB&T is a bit of an enigma. I don't own the stock or work for the company but I have had limited dealings with them as a customer, prospective employee.
Their regional structure is expense. The larger they grow the more difficult it will be to remain "regionalized."
Their internal HR and recruiters leave much to be desired in terms of professionalism and their ability to source talent. They would rather pay headhunter fees than actually recruit people on their own.
The middle managers in many regions and markets consist of the management that was in place or left over after BB&T bought up strings of small community banks and attempted to knit them into a cohesive structure. Needless to say, these guys are inept and have no business in management at a sales organization. If you want to see some real losers take a look at the DC region and and the region that emcompasses Fairfax co. in Northern VA. REAL idiots. Not to mention, all of the upper level management throughout the company is basically good ole boy North Carolinians who all work in the eastern NC markets...particularly New Bern.
Their salary structure appears to be sub-par. They put a lot of emphasis on their management development program which is inadequate at best. The benefit is that it allows them to put inexperienced people into roles and pay them a lot less than a seasoned banker.
The brand is weak. Marketing research proves that no one remembers initials!
They are in some good markets but their footprint is muddied with markets like WV, KY, small towns in the Carolinas. The GA bank disapopints becasue they don't have the skill to compete in ATL. The Florida strategy is about a decade behind.
The employees either love it or hate. There does not appear to be any in between. The ones that are there can hardly keep up with all of the paperwork generated by the "Cohen Brown" sales process. In fact, BB&T is so caught up into this rediculous process that bankers are faced with either managing the Cohen Brown process or actually doing their jobs and generating business. Any process that gets in the way of the later should be scrapped.
The incentive program is laughable.
I am not sure about the future of the company. I don't know if it will ever be bought or continue in perpetuity. And I don't really care. But I would be concerned about any organization that does not put its best foot forward particularly in terms of its employees. Not only are these guys not the brightest candles on the cake but they stink of mediocraty.
And by the way, I have declined their offers of employment on 3 separate occasions. I just can't see myself at this type of organization.
>> Their regional structure is expense. The larger they grow the more difficult it will be to remain "regionalized."
The community banking model, with 37 community bank regions, is outdated. Have already consolidated six regional offices, including a pair in the Triad.
>> Their internal HR and recruiters leave much to be desired in terms of professionalism and their ability to source talent. They would rather pay headhunter fees than actually recruit people on their own.
This has always been a crutch for HR. Firms like AKA Associates and Coleman Lew & Associates feed off HR's incompetence. Why hasn't the "internal revenue enhancement task force" identified eliminating external recruiters for expense savings?
>> The GA bank disapopints becasue they don't have the skill to compete in ATL.
Lars Anderson has been a failure in building the brand in Georgia. Core deposits down in Atlanta, Gainesville, Macon.
>> The incentive program is laughable.
Capped merit-based raises at ~ 1%. Many have already posted the affect on morale and productivity. Read post 9025 by didiwah2112 for a good summary on this.
Current operational issues can be directly traced to the pace and price of their merger strategy. They have overpaid for acquisitions since 1999 when compared to median price-to-book values. Prominent examples include First Liberty, F&M, and Century South at 350%, 295%, and 271% and Community First and First Virginia at 331% and 270%, respectively. Median ratios for these deals normally range 1.9x-2.3x per SNL. Management also underestimated the merger and integration challenges which resultingly have not produced the promised synergies. Allison now induced into slicing costs wherever possible, with employees being forced to sacrifice to compensate for five years of management mistakes.
Somehow, the logic of watching a company's stock price appreciate another 12% and expecting suitors to then beat down the doors eludes me. Seems to me it goes against the old axiom of buying low...
BB& T is headquartered in Winston Salem. Formerly headquartered in Wilson with a lot of dead weight picked up from Lumberton. Let me rephrase for you idiot since we are simply aurguing over symantics. Most of the upper management come from Eastern NC. Not something I would be to proud of. For heavens sake...just look at most of the Regional Presidents.
Advocacy indicates that you are on the side of the client which in theory the bank is. In practice it cannot deliver on service for reasons previously mentioned.
The Carolinas are not a big deal. Real corporate growth will be delivered by moving into larger growing markets. AS I mentioned the BB& T brand is weak. It stands for very little. People don't look at the name and associate it with qualities or service. And as far as VA, you better thank God you bought First Virginia or your name would be nothing in that market. Although in doing so you overpaid for a bunch of underachievers. You should have just bought their indirect lending business and left it at that. As it stands now you have to spend spend spend to bring these slackers up to speed, teach them how to make a commercial loan, and instruct them on what retail sales is all about.
Being close to the client and having authority to make decisions ...credit and otherwise...has nothing to do with being structure into community banking regions. It can be accomplished more efficiently outside of a regionalized structure and still get the same results. Why do you think the company is consolidating regionals and has estblished a task force to evaluate its expense structure?
Now get back to work filling out your Cohen Brown weekly call report. At the rate you are going the 40 or so names you need to make up to put on your list will take you the better part of the afternoon. So get started. Then again....you probably just have your assistant list every client who called for a balance or wire transfer. The business development for you!
Upper management has a near avg of 35 years service. Duh, where did BBandT start? Regional prezs, you best take another look where they come from. Growing markets, can you say eastern wva panhandle areas. You don't go to near 100 billion by being dumb like a sled track. So apparently a few things have worked out. You arent ranked from 1st in one category, to top 5 to 10 in others by being run with rocket scientists such as yourself. Upper management isn't in here always whining as I've noticed.
The WVA panhandle? Are you talking about that sliver of land striaght across from DC? Please man! As soon as ole Senator Byrd drops dead you can kiss that "growing metropolis" goodbye.
Its easy to increase your asset size through acquisition. It's another thing altogether to make it work.
Your comments are displaying your true colors. Either you were with BB&T (or an acquired bank) and let go, or you were rejected when you interviewed. All I can say is thank goodness! I don't need my shares diluted by you.
And they're bright colors too. Interesting how he tried to mask his comments yesterday by suggesting he had limited dealings with BB&T. I don't think he realized that everyone on the board was seeing right through him. Like you, I believe he was either rejected by BB&T or asked to leave. Why else the venomous comments? And of course his irrational and groundless arguments run contrary to what the stock is doing, pushing $43 the last time I checked.
You appear to be incorrect about many things. I was never employed by BB&T or a predecessor. I was offered employment by BB&T on 3 occasions and turned them down each time.
Maybe you should take your head out of the sand and look at what is really happening in the industry and with your company.
If you must know....I am a consultant in the financial services industry. It is my job to know the inner workings of a company or the lack there of.
My comments are without emotion except of course in responding to your arrogant condescending dribble.
This stock has been a turd for years. Its movement as of late is based more on the merits of the overall markets than the company's own abilities.
You and the board may think what you wish but in the end BB&T will become part of the continuing consolidation within the industry. Amd you employess had better pray its not Wells Fargo.