Maybe it's been jinxed by Armand. naaa. Looking over this board's postings, I say don't let this fellow get to you. This is a mild, polite place compared to what goes on at other boards.
Just a little tidbit of information to add to
your research on the Matewan / BB & T saga. Yes,
Matewan does offer a credit card and Matewan does have a
dealer finance department.
I was shocked you
didn't know this already. I guess your research wasn't
as "in-depth" as it was meant to appear.
I for one have enjoyed the Bankonimics 101 these
of days. I have learned much and still
have a long ways to
go. Thanks to all and I would
like to say that I have great
confidence in BB&T
management. They have preformed very well
Off topic---could do with less of the personal
Long on BB&T
Profits increasing, ROA over 1. Thin out the
equity a little, make things a little more efficient,
Purchase price less than 2 times book. We are ok.
Talk about demographics all you want, but this
transaction will be profitable.
As a banker, I can,
and I do, make money off every slice of the
demographic pie. I know BB&T will do the same....and I don't
need a 3,500 word esssay attacking someone to do it.
I like to think of myself as a "learned expert"
in an area of learning; and if this "learned
expertise" has taught me anything, it is that even fools and
idiots and jerks have something to teach me --especially
fools and idiots and jerks because as such they are
outside of the received or conventional learning which is
almost always inadequate or often simply wrong.
our different views of Matewan's market. I'll
admit my view is based on conjecture: I'm assuming that
the future of that market will in at least some ways
resemble the model I've seen elsewhere. The foothills of
the Cascades east of Seattle; the hills around Boise,
Idaho; the High Plateau around Bend, Oregon; the High
Country north and west of Santa Fe, N.M.; the hills
around Ithaca, NY: these are affluent, desirable markets
for any bank. Certainly, poverty and other problems
persist; but these areas are magnets for money, and their
scenic beauty is no small factor in this. The one major
"ingredient" I see lacking in western West Virginia is a major
urban area a few hours' drive away.
One additional advantage of the Internet is the
ability of "jerks" to have equal time with learned
experts. Contrary to your MSG 861, you have not backed up
most of your assertions any more than you are accusing
me of not doing. I will respond with facts and not
insults to your posts.
(1) The $1.2 billion figure
for capital improvements is from the BB&T release.
Where they got that from, I don't know. But assuming
it's true, your conclusion that none of it is
earmarked for Matewan's market area is WRONG. One of the
biggest economic development projects in WV in the last
ten years concerns the development of and along U.S.
119 from Charleston to Williamson. This development
also represents one of the state's better growth
prospects for the next decade as well. This development
does not bypass Matewan's market area. It is right
through the heart of it.
(2) Read the 1997 10-K for
Matewan. You obviously have one since most of your factual
information in your posts is from it. Matewan was in Kentucky
two full years before its Bank One acquisition. In
1994 it chartered a thrift that grew to over $100
million in assets as of 9/30/98. And it is in at least
three other Kentucky counties. Obviously the Bank One
acquisition represented a big jump. But it hardly supports
your assertion that Matewan's sole Kentucky presence
is due to Bank One. Given its multicounty presence
and the business base of its thrift, your contention
that Matewan had no real internal core growth is
(3) Matewan efficiency ratios have
been headed in the wrong direction since 1994. But
reading the 10-K, it opened 11 new offices in that time
and made a $200 million acquisition (quadrupling its
intangible related expenses in 2 years). Not to make
excuses, but increasing its size by 60% in a 2 year
period, tripling the number of its offices, and taking on
the additional intangibles burden could be expected
to negatively effect efficiency ratios.
coal industry obviously has a significant impact in
the Matewan market areas. But again reading the 10-K,
less than 5% of the loan portfolio is direct coal
related credits. This would seem to refute your assertion
that the majority of Matewan's commercial loans are
collateralized with either coal mining equipment or coal
(5) I don't know Bank One's motivation in selling off
its Pikeville operation, but compliance with Kentucky
aggregate deposit laws does not appear to be one of them.
Even with the Pikeville franchise, they appeared
comfortably under the cap 12/31/95.
I apologize to the
other readers of this board for taking up so much
space, but felt compelled to respond to what I consider
erroneous and distorted perceptions about BB&T's latest
acquisition. BB&T didn't get big and successful by being
stupid and I'm sure they are comfortable in what they
are getting. Matewan will probably never be the
leading producer in the BB&T system. But it will make a
more positive contribution than the postings of
Tush_Push would indicate and BB&T will probably not regret
As for you Tush_Push, I generally
refrain from responding to posts on message boards or
from characterizing posters. But based on your
comments, your sources of information, and your seeming
familiarity with Matewan, you strike me as one with an axe to
grind with Matewan. Look at the bright side, as one of
the posters to this board opined, BB&T bought it
Andy........you're on to something here. Most
commercial banks use the so-called rule of thumb that "80%
of the profits come from 20% of the customers". You
imply that it is the "upscale" customers that are the
most profitable, and you are correct. As to the
lower-end customers [i.e., PLanigan's W.V "hippy"], all the
credit card companies want them now because they can be
gouged for the highest interest rates. Further, when
they buy automobiles, they usually obtain their
financing at the dealer, not at the bank. Things they DON'T
do include setting up wills and trusts, purchasing
securities, and leaving much in the way of deposit balances
in the bank. Which brings to mind a couple
questions: does Matewan offer a credit card, and does
Matewan offer dealer financing ?
If we assume that
Matewan's management knows its unique market well, what is
it that BBT can bring to the table there that can
cause Matewan's profits to increase ? Please......don't
say "a higher legal lending limit", because there are
no borrowers in that market that require that level
you seem to be be. But from what I've seen in and
around such places as Greenville SC, Gatlinburg TN,
Asheville and Hendersonville and other areas in NC, I'll
say that Appalachia is changing: outsiders are moving
in, money is flowing into the area, much of it from
Florida. Maybe West Virginia hasn't seen much of that yet,
but give it time. The upscale retirement homes, the
golf courses, the yuppies who like their rustic
retreats from where they can still access the net, and the
services they nonetheless expect "out there," all will
come. Around the U.S.A., there's a definite demographic
trend of the highly skilled, entrepreneurial,
well-to-do, etc., moving from old urban areas --where they
may have made their money initially and to which they
will still return frequently-- to greener pastures.
And the technology, the new mobility and booming
economy (for some), is making this possible as never
before. Maybe you haven't noticed. But how's the road
construction in your area? Have you noticed an increase of
SUVs with out-of-state licence plates, driven by
"hippie" types who are far from Planigan's "hippies" in
their education levels and income?
from what I hear and read, it is indeed the
"well-off types," such as Dr.JunJun probably, from whom
banks derive more profit than from that imagined hippy
of yours, Planigan. Let's suppose, and it is a very
reasonable assumption, that Dr. JunJun has his stock and
other investments at BB&T: what do you think they do
with that? Just let it sit there, without breeding it?
They loan it out! All the statistics I've seen
indicate that the more money, in its various forms, a
client has with a bank --the better, more profitable for
the bank. That hippy of yours with all his debts
requires a lot of paperwork, and that can cost plenty. And
the banks tell you this when they offer so many
"perks" to those with fat deposits in various forms ...
Do do think they'd offer these "perks" if there
isn't something "in it" for them?