Noticed Mr. Golden Parachute, Glenn Orr is off the board. Was this a friendly parting or something else? I will miss him. He was my inspiration to aspire to greatness or a reasonable facsimile thereof.
Part of my post about IS personnel was in jest. I actually own a few that I like a great deal. The purpose was to just declare that I am sick of hearing about it and to express faith in the business community to solve the problem quietly. Many if not most companies already have their plans in place. We keep hearing about it because no career-minded CEO on Earth would pooh=pooh this hot button issue. They have to act like it is THE most important issue facing mankind because the media has mandated that they must. Its not.
On second Qtr earnings, I'll take 20+% ROE every year for the next twenty and start planning my retirement at age 55. There are no holes in the earnings stream now. To all my former colleagues, I say make me rich.
SunTrust / BBK....interesting. Unfortunately no branch cost savings since no overlap. But it would create a SouthEastern Powerhouse. Huge marketshare from NC South. STI could learn expense control from Allison's efficiency ratio success,(BBK: 50%, STI 60%), and both company's could use the others distribution networks for their niche markets: STI - Trust, BBK - mortgage and insurance.
Frankly BBK "looks" like a better managed company, but STI has the silverspoon (Coke).
Looks alot more appealing from an l/t investment perspective than say BBK & SOTR. BBK could become tainted with SOTR's weak ROA, ROE and high efficiency ratio. Combined with a recession, and there goes the value.
Glenn Orr rode in to Lumberton a dozen or so years ago with the sole purpose of raiding the till. Every decision was made to dress up the balance sheet for the ultimate payday. That payday turned out to be for him only. The merger of equals did not immediately reward any shareholders, but Orr got his 20+ million. How can anyone call this greatness. This country must stop measuring greatness by the number of digits in our bank accounts. What about duty to community, employees, and shareholders. Lumberton got screwed, the merger of equals was a joke for employees, and we will have to wait and see if the shareholders are permanently rewarded.
Readum, you are "right on" with your assessment of the Orr situation. While the merger of "equals" was a little more equal for BBT, wonder if the time is right to do a real MOE with Crestar before Y2K becomes more of an issue. Your thoughts??
Many of your observations ar right, but Orr only took a fraction of the wealth he created for the BBK/SNB employees (401K's/Options), and shareholders throughout the Carolinas. Many folks in Lumberton, Wilson, etc. are much better off today for the merger. Orr and Allison made a solid play, and one that is reflected in returns far outpacing most of the industry. By the way, what do you think the chances are that either BBK or SNB would be independent today if they had not merged? Their signs may read "Bank One", or, their financial performance today may look more like that of their less stellar competitors in the Carolinas. I think I'd rather have a 1 yr. 52% return, and be sitting on shares in one of the highest performing banks in the country.
Orr looked out for #1, but the returns rubbed off on alot of Carolina folk along the way.