Simple our manager"John Allison" over paid for all those assets.Our profits are small because those branchs that were making money 10 years ago are having to subsidies those non performing branchs John A has bought the last six or seven years .
But hey,John A ,Kelly King ,Scott Reed and the rest of those good ol boys have rewarded them selfs with great stock options.An to show you how much they believe in themselves they SELL the hell out of those shares once they are excerised.They dont want keep that free money in this sink hole.But they ask us to.
Don't overlook the fact JAA has 100% of his 401K in BB&T as do other execs and employees. Their interests aren't all that different from ours. They are shareholders too and want the stock to improve as much as we do but their focus is on running the company well. When shares are exercised, it's not unusual for some to be sold to pay for the exercise at the price of issue.
Looking at page 30 of the Annual Report: loans rising each year, but interest income falls since 2000 (security yields hurt a lot, too). While the question was about revenue, note interest expense has fallen as well, helping net income. Noninterest income has doubled since 1999.
Revenue has gone down because they made several investments to improve the strength of the company and its position in growth markets. I continue to believe that recent acqusitions such as First Virginia and Republic of Florida will enhance future earnings.
Sometimes you have to take one step back to take two steps forward. Most longs continue to believe in the success of this organization and not the short term results. If management continue to lag other peers then most longs will change their opinion, but in my view this is just a short term "blip". Yes, four or five years is still short term.
If you compare the long term results with other southeastern banks, you will see that they are still in-line w/ peers. Nothing to brag at, but nothing seriously flawed either. The last quarterly report showed several positive indicators that support management's view that the 2nd half of this year will yield better performance. Let's see what happens as the economy improves.