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BB&T Corporation Message Board

  • jjni jjni Sep 23, 1999 10:43 AM Flag

    How strong are the reserves

    Can this bank with stand the loan and operational problems that are going to occur from the flooding?

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    • A long-time dog with no direction. The only thing
      this bank would offer anyone would be geographic
      expansion into less than attractive markets. They had a
      multi-million $$$ loss a couple of years ago on leases that
      they were buying. I believe fraud might have been
      involved, but not sure.

    • A small Georgia community bank, right outside of Atlanta warned of 3rd Quarter losses of 1 Million. This could prompt a sale to a regional bank, perhaps BB&T. Any comments?

    • There is an excellent article in Wall St. Journal
      of Thursday 9/22, page B1, "Floyd Teaches a Hard
      Lesson in Flood Insurance".

      I get the impression
      there is a lot of uninsured property in eastern NC.
      Example: mortgage lenders may require flood insurance on
      the mortgaged real property, but there may be no
      requirement for flood insurance on the contents, equipment,
      etc. Journal also says there are dollar limitations on
      the amounts of government coverage.

      since much of flood was in areas where no floods had
      happened heretofore, many people did not have flood
      insurance [why pay for flood insurance if you live where
      there are no floods?] at all. Some lenders will be left
      holding the bag, and are probably building loan loss
      reserves. AFter all, they did not expect a flood

      Is all very sad........the people without homes and
      potable water, the dead pets and farm


    • Flood Insurance is mandated for the 100 year flood plain to be more specific.

    • Flood Insurance is a Federally mandated requirement for property determined to be in the flood plain.

    • I understand that BB&T usually pays between 2-3 times book value for acquired banks. Will someone please explain the concept and calculations as it relates to bank mergers. Thanks.

    • I think the loans can still perform even if the
      paperwork gets wet. Just kidding/.

      professional underwriting standards would require insurance on
      all secured loans. BB&T should be fine. Also, the
      bank's growth in recent years protects it from being too
      dependent on a small geographic area.

      • 3 Replies to readum98
      • readum........I have a home equity line of
        credit, and the lender does not require that I have flood
        insurance coverage on the collateral.

        I think this
        is a very interesting situation vis-a-vis the flood
        in eastern NC. What will the lenders do to collect
        all the bad loans that they MUST have out there now?
        Just think of all those millions of hogs on the smelly
        corporate hog farms in Duplin County and other places down
        east...............Pictures of dead hogs floating down river.....and other
        places......are all over national television.

        "Slick" and Hillary will have some solutions forthcoming
        from Washington. Isn't Arkansas a big hog state, also?

        I truly feel sorry for all the people and animals
        caught in the floods out there. No one deserves what has
        been happening to them.

      • do not cover flood or rising water. Unless the
        property is in the 100 year flood plain, flood insurance
        is not required by federal regulation, and few take
        the coverage unless lenders require it. This flooding
        is into the 500 year flood plain. There will be many
        homeowners and many lenders not covered in this situation.
        Mobile home owners may be better off, because I believe
        they may be covered for flooding under the standard
        mobile home policy.

      • do think all those small business are realy carrying business interuption insurance?

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