BB&T CorporationBBT

Morningstar Rating

Stock Research and Analysis

by Jaime Peters, CFA, CPA

BB&T is a large regional bank operating in the southeastern United States. With a conservative balance sheet and plenty of capital, BB&T is taking advantage of this recession to expand its book and take market share, including buying the assets Read more

Bulls Say

Despite being a consolidator, BB&T maintains tight control over expenses. Total operating expenses were just 52% of total revenue in 2008.

BB&T is leveraging the relationships it has at its bank to expand its commercial insurance operations, using referrals to increase its insurance revenue.

BB&T passed the government's stress-test scenarios with flying colors and was approved to repay its TARP funding.

BB&T acquired Colonial's assets from the FDIC, adding to its footprint but leaving most of Colonial's problems at the government's door. Read more

Bears Say

BB&T has a large appetite for acquisitions. Although we like that the bank has shown some discipline by walking away from high-priced deals, BB&T's belief that it needs a merger of equals within the next 5-10 years to survive is worrisome.

BB&T's focus on construction lending is coming back to bite it, with nonperforming assets rising to 2.2% of total assets as of June 30, 2009. Read more

Strategy

By focusing on the complete relationship, BB&T tries to attract customers that will stay with the bank in the long run. Owning the entire relationship--the deposits, loans, and fee businesses of Read more

Management

After nearly 20 years as CEO, John Allison retired at the end of 2008. He will remain chairman of the board until the end of 2009. Replacing Allison is former COO Kelly King. During his tenure, Allison instilled a strong corporate culture at BB&T Read more

Profile

Operating more than 1,800 branches in Southeastern states and Washington, D.C., BB&T offers commercial and retail banking, residential mortgages, trust, insurance, specialty Read more

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