BB&T........one of the best.....if not the best

I'm shocked they paid that dividend in January.  Impressive.

With a dividend of $1.88 each year that is $1.04 billion in fresh equity leaving the Bank each year.  If things don't improve with the economy I don't see how they can sustain that.  Working at a financial institution myself I know 2009 is going to be rough.

But you definitely have more knowledge of the institution than me.  Definitely one to keep on the radar.

https://www.americanbanker.com/article.html?id=20090113UREZO87F&queryid=1388628342&hitnum=3

acc,

Have you looked at their balance sheet?

Stock selling at near 2 times revenues, they have 3 times the debt to market cap and almost NINE times debt to cash. Margins and revenues are obviously slowing and they have doubled their interest expense since 2005 and that same interest expense eats up 30% of the remaining EBITDA cashflow.

I'd say they are fairly valued here, but that dividend is a nice cushion and good to see they didnt reduce it.

I dont see great value ratio wise or balance sheet wise, but down here at 15 or so there is less risk than 6 months ago.

Man they are so over-leveraged relative to cash it is crazy.

link

2.2B in cash, 137B in liabilities.

I also wonder what the true value of their long term investments are.

The leverage rules in our banking industry are out of control.

Acc...you still recommend them?

Absolutely. Colonial acquisition is a HUGE homerun.  Loss sharing that is a sweetheart deal; budgeted 8-12% deposit runoff and instead UP 8%!  Wait until the effects of becoming the second largest Ala bank and fifth largest Fla bank overnight kick in and this stock will fly.

 

Honestly think BB&T stock sees $40-45 during 2010.

Fourth quarter earnings should be solid too along with loans past due 30+ days being down Y-O-Y. Big internal push to make sure loans that could be renewed were unlike last year when the bank got caught with its pants down on good paying clinets having loans roll past due becuase of something stupid like being out of town for the holidays and unable to sign renewal docs.

Excellent 4th quarter report; almost $200MM net income and over $800MM net income for FY09.  This one is a winner.  Next stop $40/share.

You thought that report was excellent?

I see a mixed bag at best.

Bad loan provisions went up 50% from last year, earnings much lower than last year. Non-performing assets were up 10% Q over Q.

The bar was set quite low, they passed it even though expenses were up as much as interest income was..and bank fees up 20%, how is that good for anyone?

It also looks like they are still heavily leveraged debt to cash and debt to market cap.

Leveraging 10 to 1 on cash sounds concerning...what do you think?

First quarter past dues should be solid; non accruals slowing down; good handle on what might blow up next in the portfolio; stock making new highs.  On the way to 40 if it can break out on a point and figure chart.

 

BB&T one of three major banks to not show a single quarterly loss since the recession/depression began.  I think PNC and US Bank are the other two.

Look for another government assisted takeover for BB&T before the Fall.  Should be a good sized bank too.  SNV maybe?  Regions?

Earning should be good.  Quarter ended yesterday and past dues, non accruals and OREO were better than budget.