BB&T 4Q14 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Acquiring susquehanna

“We did announce an agreement to acquire Susquehanna Bancshares, as you probably know, very excited about this. It’s a significant merger, $18.6 billion in assets, $13.6 billion in deposits for 245 retail branches. I’ve had the opportunity over the last several weeks to visit a lot of their branches, visit a lot of their clients, a lot of their community leaders. I’ll tell you, it’s a really great company, strong culture, strong community focus, looks just like BB&T.”

Very low NPAs

“NPAs as a percentage of total assets remained at the lowest level since 2007 at 42 basis points.”

If the Fed takes the word “patience” out LIBOR will start to move

“The Fed impact will impact us more than what we are seeing on the long end of the curve. As Kelly said, we are still expecting the Fed to increase middle of the year. And if Fed with their announcement in March takes the word patience out, you’re going to see LIBOR rates start to increase in the second quarter. What you’re going to see that starting to flow through in the net interest income in the second quarter just by LIBOR rates increasing.”

The 10 year affects the mortgage market

“So I know lot of people focus on a 10-year, but the 10-year really just impacts more the mortgage market little bit in prepayments from that perspective. When we ran our models, we basically used current rates and what was in the forward curve and all that, and I will say that net interest income will be challenging to grow. But I still think depending how we grow our loans and our funding mix continues to improve. I think we still have a good chance of actually growing NII little bit.”