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					Company Report
Banks & Thrifts
August 19, 2009 | 9 Pages

BB&T CORPORATION (NYSE: BBT)
PRICES COMMON OFFERING AT $26 AND INCREASES SIZE; ADJUSTING ESTIMATES; REITERATING NEUTRAL
Rating:

RATING: NEUTRAL
Fiscal Year Ends Dec
Neutral $27.30 -$12.90-$45.31 $17,692.3 648.1 $152,398 9615 $0.60 2.2% $22.76 120% $13.52 202%

Adjusting estimates – As a result of the increased size of the common issuance, we are adjusting our estimates with the higher share count by shaving a penny off our 2009 and 2010 estimates and $0.02 off our 2011 number. We would note that as compared to our last report, our 3Q estimated TCE/TA ratio rose slightly to 5.7% from 5.6% and our 3Q TBV estimate increased to $14.19 from $13.97, with both these assuming full utilization of the overallotment. Reiterating Neutral - While the acquisition enhances BB&T’s footprint and is immediately accretive to EPS, we feel the full advantages of the acquisition will occur over the longer term and the integration will require a considerable amount of management focus. As a result, we are reiterating our Neutral rating. Prices offering at $26 – On Monday, BB&T priced its common offering at $26. The size was also increased, from an announced $750 million to $870 million. Including the over-allotment, which we expect will be fully utilized; the total offering will be $1 billion with a total of 38.5 million shares issued.

Price: Price Target: 52-wk Range: Market Capitalization (M): Shares Outstanding (M): Assets (M): Avg. Daily Vol. (000): Dividend: Dividend Yield: Book Value/Share: Price/Book Value: Tangible Book Value/Share: Price/Tangible Book Value:

Adam Barkstrom, CFA (800) 906-0577
abarkstrom@sterneagee.com

William Griffin, CFA (800) 621-8635
wgriffin@sterneagee.com

FYE Dec

2009E

Earnings Summary 2010E EPS & P/E Summary 2010E 2010 Previous 2009 Previous $0.50 $0.32 $0.50 $0.51 $0.29 $0.51 $0.53 $0.35 $0.53 $0.60 $0.47 $0.59 $2.14 $1.43 $2.13 --12.8

2011E

EPS:

Q1 Q2 Q3 Q4 Full Year

P/E Ratio:

2009E $0.32 $0.29 $0.35 $0.47 $1.42 19.2

2011E $0.72 $0.69 $0.77 $0.81 $2.99 9.1

2011 Previous $0.72 $0.70 $0.78 $0.81 $3.01 --

Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification, Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.

BB&T CORPORATION (NYSE: BBT)
Adjusting estimates – As a result of the increased size of the common issuance, we are adjusting our estimates with the higher share count by shaving a penny off our 2009 and 2010 estimates and $0.02 off our 2011 number. We would note that as compared to our last report, our 3Q estimated TCE/TA ratio rose slightly to 5.7% from 5.6% and our 3Q TBV estimate increased to $14.19 from $13.97, with both these assuming full utilization of the over-allotment. While the acquisition enhances BB&T’s footprint and is immediately accretive to EPS, we feel the full advantages of the acquisition will occur over the longer term and the integration will require a considerable amount of management focus. As a result, we are reiterating our neutral rating. BB&T takes advantage of a buyer’s market - On Friday, Colonial Bancgroup was closed by the Alabama State Banking Department which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with BB&T to assume all the deposits and most of the assets of Colonial and the assets were acquired at a $4.5 billion discount to book. The FDIC entered into a loss sharing agreement with BB&T that covers substantially Colonial’s entire loan portfolio. As part of the deal, BB&T issued $1 billion of common (including the full over-allotment). Details of acquisition – BB&T is acquiring $21.8 billion of assets including $14.2 billion of loans, $4.0 billion of marketable securities $1.5 billion of cash & equivalents (excluding the $3.5 billion payment from the FDIC). Also acquired were $23.7 billion of liabilities including $20.1 billion of deposits and $3.3 billion of FHLB liabilities. Colonial also brings 346 branches to the franchise. The only assets not acquired were at the holding company of Colonial along with assets of Taylor Bean. Loss sharing agreement – The loss sharing agreement covers $14.3 billion of assets or basically Colonial’s entire loan portfolio. The FDIC will assume 80% of losses up to $5 billion and 95% of losses in excess of that number. With the marks taken on the portfolio taken upon acquisition, the maximum remaining exposure to BB&T will be $500 million pre-tax. The expected loss on the portfolio is $5.0 billion and BB&T will see no impact on earnings unless losses exceed this number. If losses are less than $4.3 billion, BB&T will give about 11% of the amount below this amount back to the FDIC. In short, BB&T has taken on nearly no credit risk with Colonial’s loan book. Portfolio mark – BB&T is taking a 37% mark on the total portfolio, which is ~$5.3 billion. As shown in the table below, the marks are fairly aggressive including 67% of the construction portfolio. We feel it is likely this mark will be sufficient to cover the losses in the portfolio and if not, the excess mark can be booked as earnings. We would note that these marks are far higher than other recent acquisitions.
Colonial Credit Marks* Construction Commercial Property C&I Home Equity Mortgage Total
*Includes related ORE
Source: Company Data

August 19, 2009

67% 31% 15% 21% 18% 37%

Page 2

BB&T CORPORATION (NYSE: BBT)
Capital – We estimate the TCE/TA ratio for BB&T will fall to 5.7% from 6.0% due to the effects of the acquisition which will be partially offset by a $1 billion sale of common (we included the 15% over-allotment in our share count adjustments). Other Highlights: • • • • • • BB&T expects $170 million of cost savings or about 30% of Colonial’s expenses base and merger costs of $245 million BB&T made a market price offer for CNB’s non-agency securities and if accepted will sell with no plans to hold on the balance sheet Deal should be immediately accretive on both a GAAP and cash EPS basis BB&T opened 72 of Colonial’s branches on Saturday with no problems Plans to stay in Texas but unlikely BB&T will retain the Nevada branches The acquisition meets or exceeds BB&T’s criteria for IRR (15%) and earnings accretion

August 19, 2009

Our Take – Overall, this appears to be a very positive deal for BB&T, likely due to the fact that it was the only bank willing (or really able – in our opinion) to take on Colonial in this environment, allowing CEO Kelly King to essentially name his terms. This combination will make BB&T the 8th largest bank in the country and will enhance the bank’s footprint, particularly in Alabama where it will rank #4 by deposits and will also give it a toehold in Texas with 22 branches. The downside is that the acquisition will take a significant amount of management focus, time and money to deal with both the integration and Colonial’s particularly toxic loan portfolio. Accretive to EPS - While the acquisition enhances BB&T’s footprint and is immediately accretive to EPS, we feel the full advantages of the acquisition will occur over the longer term and the integration will require a considerable amount of management focus over the next year. For this reason, we think the full advantages of the acquisition will not be seen for some time. Though we are certainly intrigued by the possibilities in Texas, which we feel is a market with a good strategic fit for BB&T and thus offers excellent opportunities for future expansion.

Page 3

BB&T CORPORATION (NYSE: BBT)

August 19, 2009

BB&T Corporation Quarterly Income Statement
BB&T Corporation (MM except per share data) FAS 142 ESTIMATES GAAP EPS Operating EPS Dividends Per Share Book Value Per Share Tangible Book Per Share EOP Shares Out. Average FD Shares Out. Income S tatement Net Interest Margin Average Earning Assets Net Interest Income *+ Taxable Equivalent Adj. Net Interest Income (FTE) Non-interest Income: Insurance Commissions Service charges on deposits Other nondeposit fees and commissions Investment bank and brokerage fees Trust Revenue M ortgage banking income Securities gains (losses), net Other non-interest income Total non-interest income Total Revenues Non-interest Expense: Personnel expense Occupancy and equipment expense Other non-interest expense Total non-interest Expenses Total Core Income: Provision for Loan Losses Operating Income Other Items: Restructuring/M erger related charges Other, primarily securities gains (losses) VISA Gain Income before taxes Income taxes M inority Interest Net Income Preferred Dividends Net Income Available To Common Balance Sheet EOP LOANS EOP INVESTM ENT SEC. EOP OTHER ASSETS EOP INTANGIBLES EOP ASSETS EOP NON-INT. BEARING EOP TOTAL DEPOSITS EOP BORROWINGS EOP TANGIBLE EQUITY EOP TOTAL EQUITY EOP PREFERRED EOP COM MON EQUITY EOP TANGIBLE COMM ON EQUITY AVG LOANS AVG INV SECURITIES AVG ASSETS AVG NON-INT BEARING AVG DEPOSITS AVG BORROWINGS AVG TANGIBLE EQUITY AVG TOTAL EQUITY AVG COMM ON EQUITY Performance Ratios (Based on Averages) Earning Assets / Assets Investment Sec. / Assets Borrowings/Assets [EOP] Loans / Assets Loans / Deposits NonInt. Dep / Total Dep. [EOP] Tang. Common Eqty/Tang Assets [EOP] Tang Eqty/Tang Assets [EOP] Tot. Equity / Assets [EOP] Core Income / Assets Return on Assets Return on Common Equity Operating Exp. / Revenues Operating Exp. / Assets Fee Income / Assets Fee Income / Revenues Deposit Fees / Deposits Effective Tax Rate (FTE) Common Div. Payout ratio NCOs/Average Loans Reserves/NPLoans LL Reserve / NPAs Reserves/Loans NPLs/Loans NPAs/Assets 3.57% 132331.0 1146.0 28.0 1174.0 252.0 156.0 137.0 82.0 32.0 188.0 0.0 34.0 881.0 2055.0 600.0 129.0 328.0 1057.0 998.0 676.0 322.0 3.56% 131156.0 1138.0 29.0 1167.0 281.0 168.0 149.0 92.0 33.0 184.0 0.0 67.0 974.0 2141.0 3.50% 150294.0 1315.1 1315.1 281.0 213.3 157.0 97.2 33.3 149.0 0.0 45.6 976.5 2291.5 690.7 166.3 478.2 1335.2 956.4 609.4 347.0 3.55% 157475.1 1397.6 1397.6 295.1 215.7 157.8 98.2 33.7 119.2 0.0 46.0 965.6 2363.2 683.8 166.3 478.2 1328.3 1034.9 563.2 471.7 3.55% 142814.0 4996.7 5053.7 1109.1 753.0 600.9 369.4 132.0 640.2 0.0 192.6 3797.1 8850.7 2597.4 589.6 1680.4 4867.4 3983.3 2549.6 1433.7 3.60% 159484.6 1435.4 1435.4 289.1 217.3 158.6 99.7 34.2 107.3 0.0 46.5 952.6 2388.0 687.2 168.0 483.0 1338.1 1049.9 544.7 505.1 3.62% 161273.9 1459.5 1459.5 300.7 218.9 159.4 101.2 34.7 96.6 0.0 46.9 958.4 2417.9 690.6 169.6 487.8 1348.1 1069.8 550.2 519.6 3.65% 163338.5 1490.5 1490.5 294.7 221.1 160.2 102.7 35.2 98.0 0.0 47.4 959.3 2449.8 695.8 173.0 497.6 1366.4 1083.4 545.5 537.8 3.68% 165941.8 1526.7 1526.7 306.5 223.9 161.0 104.7 35.9 100.0 0.0 47.9 979.8 2506.5 702.8 176.5 507.5 1386.8 1119.7 510.5 609.2 3.64% 162509.7 5912.0 5912.0 1191.1 881.2 639.3 408.2 140.0 401.8 0.0 188.7 3850.1 9762.1 2776.4 687.1 1975.9 5439.4 4322.8 2151.0 2171.8 3.70% 168350.0 1557.2 1557.2 300.4 226.7 162.6 106.8 36.6 102.0 0.0 48.5 983.5 2540.8 709.8 180.0 517.7 1407.5 1133.3 395.4 737.9 3.72% 170300.8 1583.8 1583.8 312.4 229.5 164.2 109.0 37.4 104.0 0.0 49.1 1005.5 2589.3 716.9 183.6 528.0 1428.5 1160.8 443.6 717.2 3.75% 172543.5 1617.6 1617.6 306.1 232.4 165.9 111.1 38.1 106.1 0.0 49.8 1009.5 2627.1 727.6 187.3 538.6 1453.5 1173.6 367.7 805.9 3.75% 175356.6 1644.0 1644.0 318.4 235.3 167.5 113.4 38.9 108.2 0.0 50.6 1032.2 2676.1 738.5 191.0 549.4 1478.9 1197.2 351.7 845.5 3.73% 171637.7 6402.6 6402.6 1237.2 923.8 660.3 440.3 150.9 420.2 0.0 197.9 4030.7 10433.3 2892.8 742.0 2133.6 5768.5 4664.8 1558.4 3106.5 -2.4% 18.2% 17.9% 17.0% 19.5% 11.9% 11.1% 4.4% -10.2% 178.3% 100.0% 29.6% 22.0% 19.8% 15.8% 37.7% 24.9% 18.8% 76.4% -24.9% 2.6% 13.8% 18.3% 17.0% 7.4% 17.0% 6.4% 10.5% 6.0% -37.2% -2.0% 1.4% 10.3% 6.9% 16.5% 17.6% 11.8% 8.5% -15.6% 51.5% 2.5% 5.6% 8.3% 8.3% 3.9% 4.8% 3.3% 7.9% 7.9% 4.6% 4.9% 4.7% 6.9% 4.2% 8.0% 8.0% 6.1% 7.9% -27.5% 43.0% -0.3% -0.9% -0.7% 3.6% -0.6% -2.5% 9.5% 6.6% 31.8% 7.1% 1Q09A $0.48 $0.32 $0.47 $23.36 $12.64 560.6 563.6 2Q09A $0.20 $0.29 $0.47 $22.76 $13.52 648.1 608.8 3Q09E $0.31 $0.35 $0.15 $22.98 $14.19 688.5 668.3 4Q09E $0.42 $0.47 $0.15 $23.18 $14.37 690.5 689.5 FY2009E $1.40 $1.42 $1.24 $23.18 $14.37 690.5 632.5 1Q10E $0.45 $0.50 $0.15 $23.41 $14.58 692.5 691.5 2Q10E $0.41 $0.51 $0.15 $23.60 $14.76 694.5 693.5 3Q10E $0.53 $0.53 $0.15 $23.91 $15.05 696.5 695.5 4Q10E $0.59 $0.59 $0.15 $24.28 $15.40 698.5 697.5 FY2010E $1.98 $2.13 $0.60 $24.28 $15.40 698.5 694.5 1Q11E $0.72 $0.72 $0.15 $24.71 $15.75 702.5 700.5 2Q11E $0.69 $0.69 $0.15 $25.11 $16.07 706.5 704.5 3Q11E $0.77 $0.77 $0.15 $25.59 $16.46 710.5 708.5 4Q11E $0.81 $0.81 $0.15 $26.10 $16.89 714.5 712.5 FY2011E $2.99 $2.99 $0.60 $26.10 $16.89 714.5 706.5 09/08 -48.3% -36.8% -33.3% 0.1% 16.0% 23.5% 14.5% 10/09 41.1% 49.6% -51.6% 4.8% 7.2% 1.2% 9.8% 11/10 51.0% 40.6% 0.0% 7.5% 9.6% 2.3% 1.7% 2Q09 Change Q/Q Y/Y -58.7% -74.5% -9.0% -55.8% 0.0% -2.6% 6.9% 15.6% 8.0% 2.2% -2.8% 5.8% 18.5% 10.7%

11.5% 18.6% 7.7% -2.3% 8.8% 7.2% 12.2% 4.5% 3.1% -13.2% -2.1% 327.9% 97.1% 10.6% 4.2% 3.8% -0.8% 20.7% 8.5% -0.4% 48.9% 27.8% 15.6% 13.5% 3.2% 28.6% 16.9% 14.1%

623.0 128.0 396.0 1147.0 994.0 701.0 293.0

3.7% 112.4% -9.0% -47.5%

(12.0) 150.0 0.0 460.0 142.0 (6.0) 312.0 (41.0) 271.0

1.0 (16.0) 0.0 278.0 70.0 (4.0) 204.0 (83.0) 121.0

(45.0) 0.0 0.0 302.0 96.6 205.4 0.0 205.4

(50.0) 0.0 0.0 421.7 134.9 286.8 0.0 286.8

(106.0) 134.0 0.0 1673.7 443.6 1230.1 (124.0) 1106.1

(50.0) 0.0 0.0 455.1 145.6 309.5 0.0 309.5

(100.0) 0.0 0.0 419.6 134.3 285.3 0.0 285.3

0.0 0.0 0.0 537.8 172.1 365.7 0.0 365.7

0.0 0.0 0.0 609.2 195.0 414.3 0.0 414.3

(150.0) 0.0 0.0 2021.8 647.0 1374.8 0.0 1374.8

0.0 0.0 0.0 737.9 236.1 501.7 0.0 501.7

0.0 0.0 0.0 717.2 229.5 487.7 0.0 487.7

0.0 0.0 0.0 805.9 257.9 548.0 0.0 548.0

0.0 0.0 0.0 845.5 270.6 575.0 0.0 575.0

0.0 0.0 0.0 3106.5 994.1 2112.4 0.0 2112.4 -22.2% -29.9% -19.0% -26.2% 20.8% 45.9% 11.8% 24.3% 53.6% 53.6% 53.6% 53.6% -39.6% -55.5% -50.7% -64.5% -34.6% -52.3% -55.4% -71.7%

100239.0 19736.0 17437.0 6013.0 143425.0 14766.0 90617.0 31676.0 10169.0 16182.0 3085.0 13097.0 7084.0 99724.0 31427.0 149876.0 13828.0 93934.0 34240.0 10090.5 16406.0 13026.0

100334.0 31802.0 14274.0 5988.0 152398.0 16054.0 102164.0 30741.0 8759.0 14747.0 0.0 14747.0 8759.0 99577.0 25769.0 148496.0 15443.0 94385.0 31208.5 9464.0 16683.0 13922.0

110588.2 35920.0 24314.8 6049.0 176872.0 19534.3 122774.8 31279.0 9772.0 15821.0 0.0 15821.0 9772.0 105461.1 33861.0 164635.0 17794.1 112469.4 31010.0 9265.5 15284.0 15284.0

112247.0 36279.2 24801.1 6079.2 179406.6 19680.8 123695.6 31826.3 9925.1 16004.3 0.0 16004.3 9925.1 111417.6 36099.6 178139.3 19607.5 123235.2 31552.7 9848.5 15912.7 15912.7

112247.0 36279.2 24801.1 6079.2 179406.6 19680.8 123695.6 31826.3 9925.1 16004.3 0.0 16004.3 9925.1 104044.9 31789.2 160286.6 16668.2 106005.9 32002.8 9667.1 16071.4 14536.2

113369.5 36642.0 25297.1 6109.6 181418.2 19877.6 124623.3 32224.2 10100.4 16210.1 0.0 16210.1 10100.4 112808.2 36460.6 180412.4 19779.2 124159.5 32025.3 10012.8 16107.2 16107.2

114503.2 37008.4 25803.1 6140.2 183454.8 20076.4 125558.0 32627.0 10251.2 16391.4 0.0 16391.4 10251.2 113936.3 36825.2 182436.5 19977.0 125090.7 32425.6 10175.8 16300.7 16300.7

116220.7 37378.5 26319.1 6170.9 186089.2 20377.5 127127.5 33034.8 10481.9 16652.8 0.0 16652.8 10481.9 115361.9 37193.5 184772.0 20226.9 126342.8 32830.9 10366.5 16522.1 16522.1

118545.1 37752.3 26845.5 6201.7 189344.7 20683.2 128716.6 33612.9 10760.7 16962.4 0.0 16962.4 10760.7 117382.9 37565.4 187717.0 20530.3 127922.0 33323.9 10621.3 16807.6 16807.6

118545.1 37752.3 26845.5 6201.7 189344.7 20683.2 128716.6 33612.9 10760.7 16962.4 0.0 16962.4 10760.7 114872.4 37011.2 183834.5 20128.4 125878.7 32651.4 10294.1 16434.4 16434.4

119730.6 38129.8 27382.4 6294.8 191537.6 20993.4 130325.5 33865.0 11064.3 17359.1 0.0 17359.1 11064.3 119137.8 37941.1 190441.1 20838.3 129521.1 33739.0 10912.5 17160.8 17160.8

120927.9 38511.1 27930.1 6389.2 193758.3 21308.3 131954.6 34119.0 11351.9 17741.1 0.0 17741.1 11351.9 120329.2 38320.5 192647.9 21150.9 131140.1 33992.0 11208.1 17550.1 17550.1

122741.8 38896.2 28488.7 6485.0 196611.7 21627.9 133604.1 34545.5 11697.8 18182.8 0.0 18182.8 11697.8 121834.8 38703.7 195185.0 21468.1 132779.3 34332.3 11524.8 17962.0 17962.0

125196.6 39285.2 29058.4 6582.3 200122.6 21952.4 135274.1 35150.0 12068.6 18650.9 2.6 18648.4 12066.1 123969.2 39090.7 198367.2 21790.2 134439.1 34847.8 11883.2 18416.9 18415.6

125196.6 39285.2 29058.4 6582.3 200122.6 21952.4 135274.1 35150.0 12068.6 18650.9 2.6 18648.4 12066.1 121317.8 38514.0 194160.3 21311.9 131969.9 34227.8 11382.2 17772.4 17772.1

13.8% 9.2% 75.9% 0.9% 18.0% 44.2% 25.4% 10.4% -0.9% -0.2% 23.5%

5.6% 4.1% 8.2% 2.0% 5.5% 5.1% 4.1% 5.6% 8.4% 6.0%

5.6% 4.1% 8.2% 6.1% 5.7% 6.1% 5.1% 4.6% 12.2% 10.0% #DIV/0! 6.0% 9.9% 12.1% 5.6% 4.1% 5.6% 5.9% 4.8% 4.8% 10.6% 8.1%

0.1% 61.1% -18.1% -0.4% 6.3% 8.7% 12.7% -3.0% -13.9% -8.9% 0.1% 12.6% 23.6% -0.1% -18.0% -0.9% 11.7% 0.5% -8.9% -6.2% 1.7%

4.8% 37.2% 21.3% 3.0% 11.7% 18.3% 15.8% -2.0% 25.3% 15.2% 15.2% 25.3% 5.0% 7.8% 9.5% 18.0% 8.9% -2.6% 33.9% 28.5%

9.3% 29.8% 17.1% 27.6% 19.4% 5.2% 30.2% 19.1%

10.4% 16.4% 14.7% 20.8% 18.7% 2.0% 6.5% 2.3%

88.3% 21.0% 22.1% 66.5% 106.2% 16.3% 5.2% 7.4% 11.3% 2.7% 0.72% 8.3% 51.4% 2.8% 2.4% 42.9% 0.66% 30.9% 97.7% 1.56% 90% 61% 1.89% 2.10% 2.18%

88.3% 17.4% 20.2% 67.1% 105.5% 15.7% 6.0% 6.0% 9.7% 2.7% 0.33% 3.5% 53.6% 3.1% 2.6% 45.5% 0.71% 25.2% 236.5% 1.81% 89% 58% 2.14% 2.41% 2.41%

91.3% 20.6% 17.7% 64.1% 93.8% 15.9% 5.7% 5.7% 8.9% 2.3% 0.50% 5.4% 58.3% 3.2% 2.4% 42.6% 0.76% 32.0% 48.8% 1.85%

88.4% 20.3% 17.7% 62.5% 90.4% 15.9% 5.7% 5.7% 8.9% 2.3% 0.64% 7.2% 56.2% 3.0% 2.2% 40.9% 0.70% 32.0% 36.1% 1.90%

89.1% 19.8% 20.0% 64.9% 98.2% 15.9% 5.7% 5.7% 8.9% 2.5% 0.69% 7.6% 55.0% 3.0% 9.5% 42.9% 0.71% 26.5% 88.4% 1.78%

88.4% 20.2% 17.8% 62.5% 90.9% 16.0% 5.8% 5.8% 8.9% 2.3% 0.69% 7.7% 56.0% 3.0% 2.1% 39.9% 0.70% 32.0% 33.5% 1.85%

88.4% 20.2% 17.8% 62.5% 91.1% 16.0% 5.8% 5.8% 8.9% 2.3% 0.63% 7.0% 55.8% 3.0% 2.1% 39.6% 0.70% 32.0% 36.5% 1.85%

88.4% 20.1% 17.8% 62.4% 91.3% 16.0% 5.8% 5.8% 8.9% 2.3% 0.79% 8.9% 55.8% 3.0% 2.1% 39.2% 0.70% 32.0% 28.5% 1.85%

88.4% 20.0% 17.8% 62.5% 91.8% 16.1% 5.9% 5.9% 9.0% 2.4% 0.88% 9.9% 55.3% 3.0% 2.1% 39.1% 0.70% 32.0% 25.3% 1.70%

88.4% 20.1% 17.8% 62.5% 91.3% 16.1% 5.9% 5.9% 9.0% 2.4% 0.75% 8.4% 55.7% 3.0% 8.4% 39.4% 0.70% 32.0% 30.3% 1.81%

88.4% 19.9% 17.7% 62.6% 92.0% 16.1% 6.0% 6.0% 9.1% 2.4% 1.05% 11.7% 55.4% 3.0% 2.1% 38.7% 0.70% 32.0% 20.9% 1.65%

88.4% 19.9% 17.6% 62.5% 91.8% 16.1% 6.1% 6.1% 9.2% 2.4% 1.01% 11.1% 55.2% 3.0% 2.1% 38.8% 0.70% 32.0% 21.7% 1.60%

88.4% 19.8% 17.6% 62.4% 91.8% 16.2% 6.2% 6.2% 9.2% 2.4% 1.12% 12.2% 55.3% 3.0% 2.1% 38.4% 0.70% 32.0% 19.4% 1.50%

88.4% 19.7% 17.6% 62.5% 92.2% 16.2% 6.2% 6.2% 9.3% 2.4% 1.16% 12.5% 55.3% 3.0% 2.1% 38.6% 0.70% 32.0% 18.6% 1.40%

88.4% 19.8% 17.6% 62.5% 91.9% 16.2% 6.2% 6.2% 9.3% 2.4% 1.09% 11.9% 55.3% 3.0% 8.3% 38.6% 0.70% 32.0% 20.1% 1.54%

2.05%

2.05%

2.05%

2.05%

2.05%

2.03%

2.00%

2.00%

1.90%

1.85%

1.75%

1.65%

1.65%

Source: Company reports and Sterne Agee estimates

Page 4

BB&T CORPORATION (NYSE: BBT)

August 19, 2009

APPENDIX SECTION
Company Description: BB&T was originally founded as Branch and Hadley in the wake of the Civil War in 1872 and adopted its
current name in 1913. Since then, BB&T has grown to a bank with $152 billion in assets and 1,505 banking offices in the Carolinas, Virginia, West Virginia, Kentucky, Georgia, Maryland, Tennessee, Florida, Alabama, Indiana and Washington, D.C. It focuses on commercial lending to small and medium-sized businesses, consumer lending, mortgage lending along with specialized lending.

IMPORTANT DISCLOSURES: Price Target Risks & Related Risk Factors:
Investment risks associated with the achievement of target prices consist of developments which could cause earnings to come in lower than expectations. For bank and thrift institutions we believe the most serious risk is the potential for loan credit quality to deteriorate thereby obviating a higher provision for loan losses to cover an immediate loan charge-off or to build a higher loan loss reserve to absorb a potential loss. The higher the degree of geographic focus, the greater the risk that worsening economic circumstances could have an adverse impact on loan portfolio quality. Also, the higher degree of concentration in specific type of loans or borrowers increases the potential for a large adverse impact on earnings. Banks and thrift institutions are also subject to interest rate sensitivity risks. Depending upon how the balance sheet is structured, increases or decreases in rates could reduce earnings. Additionally, regardless of how the balance sheet is positioned, a volatile interest rate environment could have an adverse impact on earnings. Depository institutions also possess compliance and operating risk such as the implementation of policies, procedures and controls required by the Bank Secrecy Act and U.S. Patriot Act. Failure to comply fully and effectively with these laws and other regulatory regimes could result in high fines and restrictions on the institution's freedom of action. Another prominent risk associated with bank and thrift stocks involves the potential for overpaying for an acquisition or an ineffective integration once an acquisition is closed. Paying too much for an acquisition or failing to properly integrate the acquired franchise could reduce earnings. For a complete discussion of the risk factors that could affect the market price of a company's shares, refer to the most recent Form 10Q or 10-K that a company has filed with the Securities and Exchange Commission.

Valuation Methodology:
Our ratings are based on a wide array of valuation methodology. Our "top-down" valuation approach makes extensive use of peer groups based on market capitalization, asset size, geographic location or the nature of the institution. We compare various valuation metrics to the peer group. Relevant valuation metrics include, but are not limited to, price to earnings (trailing twelve month as well as estimates), price to book value, price to tangible book value, dividend yield and several types of deposit premiums. Our "bottomup" valuation process examines the specific geographic franchise, management experience and record, credit culture, deposit composition, loan portfolio characteristics and interest rate sensitivity to aid in determining the overall prospects for the institution. At this level we sometimes employ discounted cash flow analysis to the specific institution. Another valuation process we go through attempts to determine the value of a depository institution as an acquisition. This requires judgments with regard to potential buyers and their wherewithal to purchase the candidate.

Regulation Analyst Certification:
I, Adam Barkstrom, CFA, hereby certify the views expressed in this research report accurately reflect my personal views about the subject security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by me in this report. Sterne, Agee & Leach, Inc. Disclosure Legend as of August 19, 2009: Company BB&T Corporation (BBT - NYSE): 1. 2. 3. 4. 5. 6. Disclosure(s) – See Below 6

Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company. Sterne, Agee & Leach, Inc. has, over the past 12 months, managed or co-managed a public securities offering or provided other investment banking services for the subject company. Sterne, Agee & Leach, Inc. has various security accounts open for the subject company. Sterne, Agee & Leach, Inc. provides administration for 401(k) plans for the subject company. Sterne Agee Financial Services, Inc. has clearing agreements with the subject company. The analyst who wrote this report owns a position in the subject company.

Appendix Section, Page I

BB&T CORPORATION (NYSE: BBT)

August 19, 2009

Sterne, Agee & Leach, Inc.’s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach, Inc.’s total revenues, a portion of which is generated by investment banking activities.

Definition of Investment Ratings:
BUY: NEUTRAL: SELL: RESTRICTED: We expect this stock to outperform the industry over the next 12 months. We expect this stock to perform in line with the industry over the next 12 months. We expect this stock to underperform the industry over the next 12 months. Restricted list requirements preclude comment.

Ratings Distribution:
Of the securities rated by Sterne, Agee & Leach, Inc., as of June 30, 2009, 35.3% had a BUY rating, 55.8% had a NEUTRAL rating, 8.9% had a SELL rating, and 0% was RESTRICTED. Within those ratings categories, 2.04% of the securities rated BUY, 1.94% rated NEUTRAL, 0% rated SELL, and 0% rated RESTRICTED received investment banking services from Sterne, Agee & Leach, Inc., within the 12 months preceding June 30, 2009.

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731.
Other Disclosures: Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein and may act as principal or agent to buy or sell such securities. Copyright © 2009 Sterne, Agee & Leach, Inc. All Rights Reserved. Sterne, Agee & Leach, Inc. disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until the following quarter.

Price Chart(s):

Appendix Section, Page II

STERNE, AGEE & LEACH, INC.
Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we have expanded to serve all regions of the country. Sterne, Agee is headquartered in Birmingham, Alabama with offices in 22 states including Alabama, Arkansas, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, New Jersey, New York, North Carolina, Pennsylvania South Carolina, Tennessee, Texas, Virginia, and Wisconsin. Sterne Agee is one of the largest independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also includes The Trust Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee Financial Services, Inc.—www.sterneagee.com

EQUITY CAPITAL MARKETS ADMINISTRATION
Ryan Medo Robert Lake Karen Bell Managing Dir., Eq. Cap. Mkts. Vice President Assistant Vice President (205) 949-3623 (205) 949-3624 (205) 380-1766 David Lee Chuck Carlisle Director, Equity Products Sr. Portfolio Analyst (205) 949-3689 (205) 949-3571

EQUITY RESEARCH
Robert Hoehn Director of Research (212) 338-4731

BASIC MATERIALS
Mark Connelly Ashish Gupta Jason Marcus Mng. Dir. Analyst Associate (212) 338-4712 (212) 338-4721 (212) 338-4746

FINANCIAL SERVICES Banks & Thrifts
James M. Schutz John Schutz Adam Barkstrom, CFA William R. Griffin, CFA Matthew Kelley Mike I. Shafir Matthew Breese Edward D. Timmons Brett Rabatin, CFA Kenneth James Peyton Green Michael Lipman Dir. of Fin. Ser. Associate Mng. Dir. Analyst Mng. Dir. VP, Sr. Analyst Analyst SVP, Sr. Analyst SVP, Sr. Analyst Analyst Mng. Dir. Analyst (864) 241-3384 (502) 420-4015 (800) 906-0577 (800) 621-8635 (207) 699-5800 (212) 763-8239 (207) 699-5800 (800) 203-5332 (877) 457-8625 (615) 760-1474 (877) 492-2663 (615) 269-7323

A

CHINA INTERNET & MEDIA
James Lee Jiawen Zhou Yan Chao SVP, Sr. Analyst Analyst Associate (617) 794-7851 (617) 281-6497 (205) 949-3622

CONSUMER Apparel Retailing & Toys
Margaret Whitfield Jennifer Milan SVP, Sr. Analyst VP, Analyst (973) 519-1019 (212) 763-8211

Educational Services / Interactive Entertainment
Arvind Bhatia, CFA Luke Shagets Mng. Dir. Analyst (214) 702-4001 (214) 702-4030

Life Insurance
John M. Nadel Jason Weyeneth, CFA Mng. Dir. Analyst (212) 338-4717 (212) 763-8293

Footwear & Apparel
Sam Poser Kenneth M. Stumphauzer SVP, Sr. Analyst Analyst (212) 763-8226 (212) 763-8287

Mortgage Finance & Specialty Finance
Henry J. Coffey, Jr., CFA John Sites, CFA SVP, Sr. Analyst Associate (615) 760-1472 (615) 760-1470

Leisure & Entertainment
David Bain Sherry Yin Mng. Dir. Associate (949) 721-6651 (949) 721-6651

GLOBAL INDUSTRIAL INFRASTRUCTURE (GII) Agriculture, Construction & Mining Equipment
Lawrence T. De Maria, CFA Ben Elias, CFA SVP, Sr. Analyst VP, Sr. Analyst (212) 338-4704 (212) 338-4706

Restaurants
Lynne Collier Philip May Mng. Dir. Analyst (214) 702-4045 (214) 702-4004

Building, Power & Water Infrastructure
Michael J. Coleman, CFA VP, Sr. Analyst (212) 338-4718

ENERGY Oilfield Services & Equipment
David S. Havens Karl Sowislo Mng. Dir. Analyst (212) 763-8238 (212) 338-4732

Engineering and Construction
Chase Jacobson VP, Sr. Analyst (212) 338-4753

Multi-Industry
Nicholas P. Heymann Samuel H. Eisner Immacolata Arlia Jordan Calabrese Mng. Dir. Analyst Associate Associate (212) 338-4703 (212) 338-4705 (212) 338-4762 (212) 338-4729

Exploration & Production
J. David Anderson, PE, CFA Mng. Dir. Adam Aron VP, Analyst (212) 338-4749 (212) 338-4748

ADMINISTRATION
Marianne Pence Nathan Mitchell Mgr., Res. Admin. Editor (205) 949-3618 (205) 949-3635

Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)

SALES & TRADING
ATLANTA
Adam Aspes Adam Kramer Joe Maloney Jamie Pennington John T. Riley (404) 812-3068 (404) 814-3902 (404) 814-3942 (404) 814-3948 (404) 814-3966

DALLAS
Jennifer Elkins Dan Griffith Candace Martin Bob Nasi Steve Pokorny John Schwalenberg (214) 702-4050 (214) 702-4044 (214) 702-4033 (214) 702-4017 (214) 702-4020 (214) 702-4010

NEW YORK (cont.)
Rich Gallagher Brian Haise Jeff Hood Alex Jones Carey Kaufman Konrad Krill Robert McGuire Brian McIlravy Adam Merlo John Molster Jake Morton Matt O’Kelly David O’Shea Jon Palan Bruce Rae Jon Schenk Chuck Schroeder Jason Scott Miko Tam Scott Tashman Ray Wardell (212) 763-8260 (212) 763-8206 (212) 490-1453 (212) 338-4701 (212) 763-8274 (212) 763-8218 (212) 763-8236 (212) 763-8258 (212) 763-8232 (212) 763-8210 (212) 763-8261 (212) 763-8227 (212) 763-8260 (212) 763-8225 (212) 763-8271 (212) 763-8221 (212) 763-8264 (212) 763-8215 (212) 763-8252 (212) 763-8256 (212) 763-8272

BIRMINGHAM
Gary Hagstrom Sam Haskell Scott Hughen Claude Preston Amber Spitzer (205) 380-1782 (205) 380-1781 (205) 380-1764 (205) 380-1762 (205) 380-1761

MINNEAPOLIS
John Regan III (952) 841-6408

NEW ORLEANS
Henry Corder Patrick Donnelly Cheryl Grabert John Regan, Jr. (504) 636-4921 (504) 636-4902 (504) 636-4911 (850) 650-5676

BOSTON
Richard Gill Tom Goode Ted Sheehan Mike Roncone Nicholas White (617) 478-5006 (617) 478-5008 (617) 478-5003 (617) 478-5001 (617) 478-5002

NEW YORK
Jason Barber Matt Boskin Adam Cavise Mike Cline Tom Criscoula Noel Cueto Enrico DeMatt Geri DeVito Eric Dusansky Mike Flanagan (212) 763-8219 (212) 763-8247 (212) 763-8292 (212) 763-8268 (212) 338-4719 (212) 763-8251 (212) 338-4724 (212) 763-8242 (212) 763-8231 (212) 763-8282

CHICAGO
Mark Burrier Scott Hallermann Scott Hootman Robert Hurley Vesna Radovic Dan Roesner Curt Thompson (312) 525-8425 (312) 525-8421 (312) 525-8426 (312) 525-8440 (312) 525-8429 (312) 525-8433 (312) 525-8427

SAN FRANCISCO
Tom Cervantez Brian Huerta Chris Larson (415) 954-7115 (415) 954-7121 (415) 954-7125

INVESTMENT BANKING
Mark Behrman, Mng Dir, Head of Inv Banking (212) 763-8286 Kimberlee Taylor, Admin. Asst. (212) 338-4715

FINANCIAL INSTITUTIONS GROUP
Michael J. O’Boyle, Mng. Dir. Michael Perry, Mng. Dir. Jeffrey W. Prochnow, CFA, SVP D. Timothy Speegle, SVP John McCrory, SVP Robert Toma, VP Horacio Barakat, VP Andrew Stager, Associate Nathan Strall, Associate Jung Lee, Associate Michael Stern, Analyst (205) 949-3592 (212) 338-4736 (402) 778-5054 (205) 380-1720 (205) 949-3664 (617) 478-5005 (212) 338-4768 (617) 478-5009 (617) 478-5010 (212) 338-4769 (212) 338-4756

NON-FINANCIALS
John Bolebruch, Mng. Dir. – Industrials Richard Cunniffe, SVP – Industrials Everett Titus III, Mng. Dir – Energy Will Brooke, Analyst - Industrials (212) 338-4716 (212) 338-4713 (908) 730-7882 (212) 763-8278

EQUITY SYNDICATE
Craig B. Jampol, Mng. Dir. (212) 338-4708

Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)

LOCATIONS
Corporate Headquarters 800 Shades Creek Parkway Suite 700 Birmingham, AL 35209 (205) 949-3500 (800) 239-2408 (205) 802-1414 fax 13727 Noel Road th 7 Floor Dallas, TX 75240 (972) 239-4806 (800) 404-2226 (972) 980-7125 fax 620 Newport Center Dr. Suite 1100 Newport Beach, CA 92660 (949) 721-6651 (949) 721-6652 fax

OTHER LOCATIONS
3475 Lenox Road Suite 800 Atlanta, GA 30326 (404) 365-9630 (404) 812-3097 fax

706 E. Washington Street Greenville, SC 29601 (864) 233-6630 (864) 233-6630 fax

2 Union Street Suite 403 Portland, ME 04101 (207) 699-5800 (207) 699-5888 fax

8400 Normandale Lake Boulevard Suite 920 Bloomington, MN 55437 (952) 841-6410 (800) 949-4102

3100 West End Avenue Suite 930 Nashville, TN 37203 (615) 269-7323 (615) 269-9223

5609 Patterson Avenue Suite B Richmond, VA 23226 (804) 521-3224 (804) 521-3199 fax

265 Franklin Street Suite 310 Boston, MA 02110 (617) 478-5000 (800) 836-4616 (617) 443-0310 fax

639 Loyola Ave Suite 200 New Orleans, LA 70113 (504) 299-1021 (888) 978-3763 (504) 299-0956 fax

1001 Craig Road Suite 330 St. Louis, MO 63146 (314) 872-2125 (314) 872-2126 fax

123 N. Wacker Drive Suite 1250 Chicago, IL 60606 (312) 525-8440 (800) 966-0815 (312) 525-8438 fax

2 Grand Central Tower 140 East 45th Street 18th Floor New York, NY 10017 (212) 763-8224 (800) 966-0814 (212) 763-8201 fax

1750 Montgomery Street Suite 134 San Francisco, CA 94111 (415) 954-7125 (415) 391-7784 fax

Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)


				
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