No need to even consider CF as a target for BBK, trust me. BBK has a reasonable presence in Virginia now. DC, Richmond, Hampton Roads area. UBSH may be a reasonable target. However, look at two areas going forward. Still a couple of strong candidates in Tidewater (CNIT and VABF- which is my favorite short term play). Start looking around Maryland. Some small S&Ls are left but nothing over the $1BB level. However, there are some interesting banks of that size left in Md.
One other interesting play. IFSB, a four branch S&L in DC with approximately $250MM in assets. 10% of the stock is owned by Fidelity Low Price Mutual Fund. Trading at 1.3 times book. Look for a sale in 1998.
I agree with your assessment of the CF rumor. BBK is in DC and MD area now, and in south Central VA and Tidewater area. FMN or (and?) UBS would be a good fit, but are there any indications either or both of them are interested? (Or are you thinking unsolicited?) Northern Virginia is a hot market; BBK might be willing to pay a real premium to get the market share.
In msg IFSB on 3/21 I mentioned management. Founder Bill Fitzgerald died on Monday. The company suddenly is very much in play. He had an interest in keeping company independent - it employs several members of his family and gave him a great lectern for participation in DC matters. Now it's up for grabs.
Bill Fitzgerald will be missed by all in DC, regardless of race!
If you like banking stocks, check out First Security Financial (FSFF). Good results with a niche market - grossly undervalued. Several branches in Chicago and one in Philadelphia. Went public in October.
I suggest you do much more research on SNV. Has a PE
of 40, look at why? See where they rank among their
peers in ROE and ROA. Look at recent accolades for CEO
and Company, review management philosophy, a lot like
BB&T. They own banks in Georgia, Alabama, Florida and
South Carolina. Would be a good fit for BB&T. SNV owns
80.7% of the second largest credit card processor in
U.S., Total System Services (TSS), look at their performance,
sales and earnings growth.
I agree with many on the greatness of BBT and like you feel it has leveled off for a month or two but I feel it will get to
70 in six months. Look for them to expand their SC base as well as VA. They have #1 position in NC, #3 in SC, and growing in
VA. SC doesn't have many banks as well operated as BBT and is probably an easier market to expand than VA. My advise is: don't
go to GA yet, continue to expand VA, and do a trick or two in SC, and then move in on Tenn. Tenn. doesn't have the first bank
as well run as BBT.
CF is too big a target for BBK at $25 Billion. It would take a Bank One to pull that off! Much more likely is that BBK will continue its piecemeal strategy of buying small banks and thrifts at much lower premiums than the regionals are going for.
They just bought Franklin and now MFSL. Probably FMN or UBS is next.
Saw a couple of posts here for IFSB. Did a little research. Small thrift with 4 branches in D.C. Been around for a long time. Trading a strong discount (book value and P/E) to other thrifts in VA and MD. Just read their annual report and if you read closely, I swear it appears that they are setting the stage to sell. Might be a good fill in for BB&T.