BB&T 3Q16 Earnings Call Notes

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BB&T Corp’s (BBT) CEO Kelly King on Q3 2016 Results

Companies are terming out their borrowing

“we like all the others did experienced higher pay-offs in our commercial area in the quarter. Frankly, a lot of good quality loans have just been refied out into the market, because of, I think, participants expectations that rates are going up, so they have gone out and taken advantage of long-term loan markets. That’s not a long-term change in terms of the commercial lending productivity. It’s just a temporary increase in pay-offs.”

Loan growth still very challenged

“Loan growth in today’s market to be honest is just very, very challenged. Still, Daryl indicated we do expect our loan growth to be in the 1% to 3% range as we look forward to the fourth quarter. And that’s going to be based, we think, probably somewhat lower levels of pay-offs. And we keep looking at possibilities of asset purchases from some other institutions that are rationalizing their balance sheet. So, when you put it all together, we think that we’ll be in the 1% to 3% range.”

Market is likely to get better after elections

” frankly, I expect much of an impact on the fourth quarter. But here in next year, I think the market is likely to get better, once we get through post elections. Part of what is going on in the third quarter and in turn that this kind of slowed down that everybody has talked about is there is just a lot of anxiety. I saw report a couple of days ago that 60%, or slightly less, but about 60% of the market it is really, really anxious about the elections. And I suppose we quite understand that. And so I think when all this subsides, however it goes, it will be less uncertainty and less anxiety, I think that will in still a bit more confidence then people will be a little bit more willing to invest, and make acquisitions and borrow money. ”

Clarke Starnes

Rate hike probably wont have much impact on NIM

The rate hike is so late in December. It’s not going to have a big material impact. You’re getting the LIBOR benefit just crossing over year-end. So, I wouldn’t view that as material and we might be off a basis point. But you could be up a basis-point in core margin. So, it’s pretty much a non-issue for fourth quarter.