BB&T Corporation Message Board

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  • queefoo queefoo • Mar 23, 2012 12:47 PM Flag

    just can't get any respect?

    More nonsense from the BB&T kool aid crowd. Loan growth is weak. 2009-2011 their loan portfolio increased from 96.1B to 98.1B, and all the net increase came from renewed residential mortgage lending (and there is not much more of that to be had), which saw yields drop from 5.7% to 4.8%. So they are NOT making new loans and the small net increase they are showing has lower yields. On top of that, they are still sitting on 30B in cash after 3 years...instead of lending it out and building a new loan portfolio they are just churning securities. So if you want to know why this is not at $45 read the K. The small community banks are making all the loans now, why? Because banks like BB&T don't have to, because they have all the cash from Uncle Ben. You are really buying an insurance agency (amongst other fee sourcing entities) when you buy this company

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    • normlasky normlasky • Mar 23, 2012 1:33 PM Flag

      Of course, queefoo overlooks the runoff of many portfolios - adc, commercial real estate, lot loans, home equity and jr. home lines, Alt. A loans, subprime re etc. The adc portfolio by itself dropped from $9 billion to $2 billion over last 3 years.

      I'm pleased that the bank was able to grow loans despite the huge amount of runoff. And the bank was also able to increase loan margins to plus 400 bsp . Not to0 many banks can make this claim.

      Loans this qtr. should increase by about 6% annualized. Most of the increase is attributable to market share gains.

      Queenfoo may have good intentions but she does not understand banking. However, she is several grades higher in terms of knowledge than nobankerplease.

      • 1 Reply to normlasky
      • toosmartforecu toosmartforecu • Mar 23, 2012 2:43 PM Flag

        lasky, you sound like Obama trying to explain gas prices. Gobbledeegoop. Quefoo's analysis is correct. If everything was a rosy as you and the other apologists contend, this stock wold be at $45 now and going higher. But I have heard that argument many times over. Regardless of spot, this stock is "always" undervalued becuase the pros "dont know anything" and no one respects all the bright minds in Winston. Sorry, if you were right you wouldn't be on a yahoo blog, but in NYC making millions. Fact is, this is a 2nd tier bank with mediocre management. The strategy ran out of steam 15 years ago. As to market share, you go into the sub markets and you will find the community banks are gobbling up share left and right.

 
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