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BB&T Corporation Message Board

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  • dhrosier dhrosier Jun 2, 2011 12:44 AM Flag

    Management

    Strong growth in stock price 4th quarter 1990 through 1st quarter 1999.

    NO growth 2nd quarter 1999 until market started crashing around 3rd quarter 2007; price "vibrated" around $40 share.

    KK et al did not take control until well past 3rd quarter 2007, a time when market forces controlled.

    Folks you praise in nostalgic memory were in charge during the ennui of the first 7 years of last decade.

    Were they in charge during the 1990s when things were going gangbusters?

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    • The Mgmt team that existed in the 1990s when the share price took off were there for the doldrums of the last decade. The great stock run of the 1990s was not due to superior tactical management of products, services, employees, and customer relatonships. Instead BB&T found a nice niche at the right time and went out and bought bricks and mortar community banks in rural and other tertiary markets when everyone thought internet banking was the future. They got these little banks that nobody else was looking at, at a good price and used the comapny's stock (which got ahead of itself) as currency. At that time BB&T was much smaller, so these little banks did move the needle. And BB&T would clear out the back office, save some pennies, fire some admins, and move on like a big amoeba. That is the factual backdrop of the "nostalgic" look back to the 1990s. That ship ran out of steam over ten years ago. They have NOT introduced any new plays in the play book, unless you consider buying insurance agencies or Colonial as game changers, which they are not. This is now a bank with $130+B in assets. They need to archive the past and figure how to make ROE. Limited organic loan growth is a clear indicator they dont have it right. They are trying to make it work by gathering more deposits (to which they pay nothing) cutting expenses (do more with less qualified, lower paid talent), and charging above average spreads for the same loans offered by other banks. These "strategies" do not a successful bank make. What they do make is a bank that will be stuck in neutral for a long time, if not forever.

      • 2 Replies to nobankersplease
      • Great post, Nobanky, and an accurate summary of the past 20 years. This bank lost momentum at the end of 1999 and has been looking for a new identity ever since. I am somewhat sympathetic to current management because there is no magic answer here. In much of their footprint, real estate based lending represented the banks best opportunity to connect with customers. To make a meaningful splash in C&I lending, they are first going to have to find some meaningful C&I activity, which just doesn't exist in much of their market area. In order to compete successfully in the larger metropolitan areas, they are going to need to build a reputation as an aggressive lender and they are going to need to pay up for some bigtime talent from Stanford and Harvard and Wharton and I am not sure that happens under current management. I am also not sure where the revenue comes from when they can no longer borrow at 0.01% and invest in Treasuries and live off the spread. Your prediction of "stuck in neutral" may be right on the money---it will look like a stock but it will trade on its yield like a bond....

      • Best post I ever read on this board. BBT is a relic. It's regional structure is costly and inefficient. Technology is awful. Talent is laughable. Even it's officers have told me the can only grow by acquisition. Sad. And the brand sux. The people are nice but young and inexperienced. Products are 20th century and pricing across the board is non-competitive. This company will be acquired by U.S. Bank after they do a dumbazz merger of equals with regions bank......so the sh-t kicking hicks in Winston (all educated at ECU -LOL) make one last attempt to keep their jobs. Then the last man stand in is Kelly king who becomes the east coast prez of us bank for a year before retirement so he can collect his undeserved millions. Pathetic filthy bankers.

 
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