i think bbt non-accruals have topped out and I look for the provision for bad loans to fall significantly throughout 2010 resulting in substantially higher earnings.
I also think that bbt will acquire additional banks from the fdic under similar terms as the cnb deal. Snv for example, is close to the edge. Their ceo is adamant that their capital is adequate to absorb future losses but given their portfolio, it's certainly questionable.
I think King and the Board will reiterate that they understand the importance of restoring the dividend but will state given the banking environment in 2010, shareholder value can best be maximized by temporarily deferring the increase in 2010 in order to build additional capital to fund acquisitions. Right now the market values bbt at twice it's tangible book and imo will likely increase in 2010 to three times tangible book as loan losses sharply drop.
Ok with me. Snv is larger than cnb and imo has much bigger cost synergies.
Usb will likely increase their dividend next week but it was cut 90% from $.45 to $.05 per quarter. Look for Usb to increase it to $.15 and provide to their shareholders the same rationale as above.