This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Betting on BB&T

NEW YORK ( TheStreet)- On more than one occasion, I've sang the praises of BB&T (BBT - Get Report) to just about anyone who cared to listen.

While this regional bank does not carry the high profile of JPMorgan Chase (JPM - Get Report) or the consistency of Wells Fargo (WFC - Get Report), BB&T was not bruised like many of its peers during the financial crisis.

Even though the stock has stagnated recently, the company does possess a solid operation and considerable value.

Investors, however, need more growth to justify hopping onboard. Last month's first-quarter earnings report offers clues about where BB&T is headed and whether its stock is worth a shot.

Mixed First Quarter

Not much was expected from BB&T, which was a good thing because there was little to get excited about.

The bank had a tough time with lending activity, which again was lethargic - albeit, consistent with the overall sector.

Despite the weak lending environment, BB&T s managed to report a 4% increase in operating revenue.

Net interest income fell 1% year over year and 4% from the prior quarter. Ordinarily that would be a concern, but BB&T's results were actually better than those of JPMorgan, whose net interest income fell 6% year-over-year and 2% from the prior quarter.

Other than U.S. Bancorp (USB - Get Report), which saw a 1% increase, there weren't many banks that saw an uptick in net interest income. So I'm willing to excuse BB&T here. But that needs to improve to support a higher valuation.

BB&T posted better-than-expected results in fee income, which rose 11% year over year. That is despite weak results in mortgage banking. Fee income is an area where BB&T is outperforming the likes of Bank of America (BAC - Get Report) and U.S. Bancorp.

These numbers weren't breathtaking. But they weren't horrible, either. The good news is that management expects better performances in the future and seemed to be optimistic about the rest of the year.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.36 0.00%
BBT $34.83 0.00%
JPM $62.56 0.00%
USB $42.50 0.00%
WFC $50.00 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs