Going into the credit crisis, BB&T (BBT) had the record and reputation of one of the best banks in the country. Through the credit crisis BB&T proved that its underwriting was sound and that it didn't need assistance to stay in business (and in fact was able to do a sizable FDIC-assisted deal). Post-crisis, though, it seems like a lot of banking analysts have collective amnesia and seem to think that BB&T isn't the bank that it used to be. Perhaps a solid end to 2011 and healthy guidance will start to move attitudes back.
Good Numbers To End The Year
There have been varying degrees of "clean" earnings from large banks like Wells Fargo (WFC), PNC (PNC), and U.S. Bancorp (USB) this reporting season, and BB&T comes in somewhere near the middle. Reported earnings of $0.55 were better than the average guess from analysts, and the adjusted earnings of $0.61 were even better. Those adjustments consist primarily of reversing out a $0.09 gain on securities and a $0.19 valuation adjustment on foreclosed real estate. BB&T's earnings included a reserve release of $0.11 - definitely large relative to the reported earnings.
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A Strong Fourth Quarter May Change Perceptions On BB&T
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