Thu, Jan. 22, 12:35 PM
- Mercilessly sold since the year turned, banks are putting in a rare session of outperformance, helped along by some earnings beats from regional lenders and the return of animal spirits in M&A with RBC's purchase of City National (CYN +18.6%) for $5.4B.
- The XLF +1.4% vs. the S&P's 0.6% gain today, and the regional bank ETF (NYSEARCA:KRE) is higher by 3.1%.
- Among today's reporters putting in big gains are KeyCorp (KEY +5.5%), BB&T (BBT +2.4%), and Huntington Bancshares (HBAN +2.6%), though Flagstar Bancorp (FBC -4.8%) missed estimates.
- Others: Regions Financial (RF +3.9%), PNC Financial (PNC +1.6%), Synovus (SNV +3.2%), M&T Bank (MTB +3%), Hudson City (HCBK +3.1%), First Horizon (FHN +2.7%), and First Republic (FRC +4.9%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, PSCF, FINZ, KRS
- Among the TBTFs, Citigroup (C +2.7%) and Bank of America (BAC +2.5%) are leading the way.
Thu, Jan. 22, 10:03 AM
- EPS of $0.76 vs. EPS of $0.71 in Q3, $0.75 in Q413.
- Total revenue of $2.38B up $54M Q/Q reflecting $68M increase in non interest income, $14M decrease in net interest income.
- Net interest margin of 3.36% down 2 bps from Q3 due to lower rates on new loans and runoff of loans acquired from the FDIC.
- Basel III common equity tier 1 was 10.3% up from 9.7% at the end of 2013.
- Return on average assets 1.30%. up from 1.19% in Q3.
- The annualized yield on the total loan portfolio was 4.30% down 7 bps from Q3.
- Conference call at 8 ET. BBT +1.85%
- Previously: BB&T beats by $0.03, beats on revenue
Thu, Jan. 22, 5:50 AM
Wed, Jan. 21, 5:30 PM
Dec. 5, 2014, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Nov. 12, 2014, 11:03 AM
- Regulatory headwinds in banking are "plateauing," says BB&T (BBT -2.5%) chief Kelly King, appearing on CNBC after his bank's agreement to purchase Susquehanna Bancorp (SUSQ +32.1%) for about $2.5B. The issues being talked about today are quickly become yesterday's news, he says.
- Speaking with analysts/investors on a conference call, King says the two lenders had been in talks for several months. One wonders if the deal's announcement one week after last week's Republican landslide is just a coincidence.
- BB&T, says King, is very interested in other opportunities, but naturally the price has to be right. Texas? Not interested, he says, as those lenders are asking 2x-3x book (SUSQ looks like it's being purchased for about 1.7x tangible book).
- A move further up the East coast? King says BB&T could eventually move into NYC and Boston, but for now will focus on the Mid-Atlantic and Southeast.
- Possibly helping to push Susquehanna into a sale (and no doubt on the minds of other smaller lenders) are the compliance costs associated with the Bank Secrecy Act and Anti-Money Laundering rules, and King notes SUSQ can now fold those costs into BB&T's.
- Previously: First Niagara on the move after BB&T/Susquehanna deal
- Regional and small-cap bank ETFs: KRE, KBE, IAT, KBWB, RKH, QABA, KRU, KBWR, PSCF, KRS
Nov. 12, 2014, 7:10 AM
- Headquartered in Lititz, PA, Susquehanna Bancshares (NASDAQ:SUSQ) has $18.6B in assets to go along with BB&T's (NYSE:BBT) $187B.
- Terms: Susquehanna owners will receive 0.253 shares of BB&T common stock and $4.05 in cash for each share of Susquehanna they hold, valuing Susquehanna at $13.50 per share based on the closing price of BB&T over the last 45 days.
- SUSQ +18.8% premarket to $11.76.
- BB&T expects the deal to be accretive to EPS in year one, excluding one-time charges.
- A conference call to discuss the deal is set for 8:30 ET
- Presentation slides
- Source: Press Release
Oct. 27, 2014, 10:01 AM
- Spotting value in BB&T (BBT +0.2%), Sterne Agee ups the stock to a Buy with $43 price target. PNC Financial (PNC -0.3%) - on the other hand - loses its Buy rating, and is now a Neutral.
- Thus far this year, PNC is up 6.2%, outperforming BB&T by nearly 800 basis points. Meanwhile, BB&T continues to make acquisitions, the latest being another 41 Texas branches from Citibank, and The Bank of Kentucky.
Oct. 23, 2014, 7:39 AM
Oct. 21, 2014, 3:55 PM
Oct. 16, 2014, 9:17 AM
- Total Revenue increased 0.4% q/q to $2.32B due to increases in NII of $7M and noninterest income of $3M.
- Average loans and leases increased 4.9% q/q on an annualized basis.
- Credit quality continued to improve as NPAs, excluding covered assets, declined 3.6%, and charge-offs remained below normalized range of 50 to 70bps.
- Net Interest Margin was 3.38% down 5bps q/q due to lower rates on new loans and covered loan runoff.
- ROA 1.19% Efficiency ratio 59.7%
- BBT no trades premarket.
- Previously:BB&T EPS in-line, beats on revenue
Oct. 16, 2014, 6:03 AM
Oct. 15, 2014, 5:30 PM
Sep. 15, 2014, 4:22 PM
- The severely adverse scenario used by BB&T (NYSE:BBT) was designed to be "substantially more severe" than the Fed's assumptions. It includes a peak unemployment rate of 11.2% by 2015's end, a 27% decline in home prices, and an inverted yield curve, with the 10-year yield inverted by 62 basis points.
- "BB&T’s performance under the BB&T Severely Adverse scenario indicated that BB&T would maintain strong capital levels to withstand a severe recession."
Sep. 8, 2014, 9:46 AM
- The Bank of Kentucky Financial Corporation (BKYF +28.3%) is headquartered in Crestview Hills, and has $1.9B in assets, $1.6B in deposits, and 32 branches in Northern Kentucky and Cincinnati. BB&T (BBT) is purchasing the lender in a cash and stock deal valued at about $363M.
- In connection with the purchase, BB&T creates a new banking region encompassing Northern Kentucky and Cincinnati.
- BKYF owners will receive 1.0126 shares of BB&T common stock and $9.40 in cash for each share of BKYF they own, roughly equivalent to $47 per share at current prices.
- BB&T expects the deal to be accretive to EPS in the first full year.
- Source: Press Release
Sep. 3, 2014, 9:33 AM
- "Our previous 21-branch acquisition from Citibank has already proven to be a cultural fit," says BB&T (NYSE:BBT) CEO Kelly King. Today's agreement is for another 41 branches in Dallas, Houston, Midland, and Odessa, and they come with $2.3B in deposits and $87M in loans. BB&T is paying a deposit premium of about 5.3%.
- After the deal, BB&T will have about 123 branches and $5.3B in deposits in Texas. For Citigroup (NYSE:C) the sale continues its move to cut costs and focus on core businesses.
- BB&T investor presentation
- Source: Press Release
BBT vs. ETF Alternatives
BB&T Corporation is a financial holding company, which through its subsidiary, Branch Banking and Trust Company provides a range of banking services to individuals and businesses, and offers loans to businesses and consumers.
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