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BB&T Corporation Message Board

  • BankTop BankTop Jul 29, 1998 4:51 PM Flag


    BBT must act or be bought. The big boys
    are closing in on them. If they don't continue to
    grow, they could be left behind as a second-thought,
    has-been, fill-in, pick-me-up for a larger institution at a
    lackluster price.

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    • I have been a holder of BBK for eight or night
      years and have watched it grow from under 6 Bil in
      assets to over 30. It has split a number of times and
      has increased its dividend regularly. The total
      return has been 15% plus and it has been a very good
      investment. I like smaller regional banks and own quite a
      number (SNB HBAN OLDB). This is a good one, too.

    • Alas, my contacts say you are right about BB&T
      losing emloyees. Not only are $$ an issue, the fear of
      being bought is real and a compelling reason to leave,
      provided it's to a much smaller bank or much larger one.
      Let's face it, bank's BBK's size are fighting to stay
      alive. Of course, as investors, what do we care?

      The discussion around BBK's management is another
      matter. A major issue is the community bank concept vs.
      cost. Yes, Dr. JJ, it makes for excellent customer
      service, but it seems to come at a price. An examination
      of the operating ratio at BBK and others is very
      enlightening. BB&T's improvements in efficiency which were
      impressive for a while have slowed dramatically. I grant you
      that it gets harder the farther you go, but others
      (5th 3rd for example) seem to have figured how to drop
      below 50%. If Y2K expenses are a problem (& I think
      more and more banks and other companies will restate
      those costs as tyhe year goes by), then it will be more
      and more difficult to achieve sub 50% levels. I
      understand that the old Southern National was really tough
      on expenses. BB&T may be too, but my contacts tell
      me they talk a good game, but are weak on delivery.
      It sems to me that their numbers have been pretty
      good so far (aside from my observation on slowing
      improvement), but my contact is adament that expense controls
      are "lax." (She was an old SNB'er)

      I think
      the 3rd quarter will tell alot. Don't count on a
      teriffic operating ratio. It is because of this that I
      predict that BBK will anounce anotrher merger/acquisition
      by then to cloud future earnings.

    • I agree with your assessment of employees. And
      they are being called weekly by headhunters with
      offers of 20-40% salary increases to go to other banks.
      Volume and small spreads will hurt only if you have a
      lot of unhedged fixed rate loans. Acquirers of all
      sizes have been doing welll..NB, FUNB, ONE, and yes
      BB&T. I also agree with your assessment of BB&T re
      location and track record. They're good....and nobody is

    • I attended the Graduate School of banking at the
      University of Wisconsin...had long been a BB&T shareholder,
      since 1991...and was impressed by the quality of
      students (lower management) sent to the school by

      If you have paid close attention to the bank
      industry, on a nationwide basis, the very big banks,
      and/or, the buyer banks overall returns have fallen well
      behind the regionals and small banks. There are a number
      of reasons for this, and I also feel that if the
      economy falters and interest rates rise dramatically, the
      bigger banks will be hurt more than their smaller
      brethern (banking on volume with small spreads can prove
      fatal if rates move against you).

      There are few
      banks in the country situated as well as BB&T to
      provide ongoing steady returns to its shareholders AND
      remain independant.

    • Don't those rose colored glasses get a little
      difficult to see through? BB&T is a good bank with lots of
      good people, but the market is changing very quickly.
      The quality of employees necessary to meet the market
      demands is also increasing almost daily. At the same time
      the bank infrastructure is getting flatter creating
      less opportunity for career growth. You can't demand
      better and brighter and harder working employees without
      creating a better working environment and at minimum,
      market rates of compensation. The difference in a $10BB
      bank and a $30BB bank is the number and quality of
      employees....and the effect of all managemnt decisions has a
      broader, more far reaching effect (good and bad). Anyone
      not in the banking industry for the past 10-15 years
      would have a hard time understanding the change in the
      marketplace and the demands on bankers. This is not a
      criticism...just an observation!

    • I forgot to say welcome and thanks to Yankee. You have excellent insights into BBK and banking in general. If you're not inside, you are close enuff! I hope you stick around.

    • You forgot to mention that ASO has excellent
      management. They are split about 50:50 between "old" ASO
      folks and "new" folks from major regionals like First
      Union, Mellon, and others. This would certainly add
      breadth to BBK's management group, provided that a deal
      could be struck that would finally incorporate the
      best, not just BBK, management. Both groups would help
      the other, but a true team would have to be formed. I
      don't agree with the earlier post that BBK's management
      is weak, but they are inexperienced with a 30 BB
      bank to run. I completely agree with the excellent
      analysis of technical weakness (compter type - not
      financial analysis type) that was posted earlier. I think
      this is the true dilema that BBK faces. My earlier
      comments on Y2K stand. ASO could greatly enhance BBK's
      position here. Finally, ASO has a tremendous amount of
      momentum going for them. I agree that their markets are
      only OK, but what energy they demonstrate! These two
      would be an excellent match.

      Having said all the
      above, I doubt this deal will happen. BBK isn't looking
      and ASO's momentum will fool them into thinking they
      can survive. Pity...

    • AmSouth Bank based in Birmingham is one of the
      four major B-Ham banks. Solid portfolio good yields
      (excellent stock performance as of late)overall great second
      qtr. truly outperforming all expectations. Market is
      stretched thin, third in AL,with about 3% mkt. share in
      Fla., a small presence in southwest Ga., and growing
      mkt share in Tennessee (most notably in Chattanooga).
      All in all, well run, upper-level turnover seems to
      have paid big benefits. Size is around $20B, a little
      big for BBK but certainly doable. Would place BBK in
      desirable markets, good strategic move that could lead to
      big windfalls in Tennessee and Alabama(The onyly
      So.East states with multiple "swallowable" banks for
      BBK). BBK's NC market share is tapped out, as evidenced
      by a couple of dissenters in their acqusition of
      UCB. Alabama and Tenn. are wide open and a ASO BBK
      merger could give BBK a heck of an advantage in grabbing
      market share where it is still available.

    • Thank you my good man.

      I'm going to get
      lots of hate posters, but BBT will kick Wach any day
      with customer service. That means alot in banking
      today. Especially with these mergers. But I see your

      Excuse my ignorance, but tell me more about ASO and why
      it would be good for BBT?

      Dr. JunJun

    • Right on my good man.

      Your right,
      especially when the divisions are decentralized. A big boy
      is no differen than the little one.

      I have a
      good story for you young whippersnappers. FUNB is
      advertising banking by phone and the PC. Its no big deal to
      me, but lots of OLDER americans hate the crap. They
      hate ATM's. They call FU and they get transferred to
      Charlotte. I call BBT I get my branch, I see my bank people.
      None of those STUPID phone systems. (don't believe me,
      call fu and BBT)

      Whats my point?

      Us old
      people have lots of money. We like banking where we are
      treated as people in our towns. Like BBT.


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