Although BB&T Corp. (NYSE:BBT) has received little recognition and press coverage through the years, that has now changed that it has been recognized as one of the top ten banks in the country.
Much of the recent recognition has come from an article in Time magazine which talked of the BB&T takeover of Colonial BancGroup as the 3rd best business deal in all of 2009.
What has been particularly impressive about BB&T and its leadership is its conservative and patient approach concerning growing into markets it desired to have a strong presence in. They turned down a number of deals for community banks in those markets because the terms and costs were too high for their tastes. There was also the risky loans connected to the housing market bubble which would drag down even some of the strongest banks.
Amazingly, the bank has grown from about $5 billion in overall assets as of 1989, to the approximate $163.5 billion in assets it held at the quarter ending on September 30, 2009.
Also contrasted was the way Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) responded to the banking crisis by making a number of rushed and dubious deals, while BB&T and its conservative methodology was patient and picked up one of the great deals of the year through its acquisition of Colonial.
Many competitors and industry watchers were impressed by the deal BB&T made for Colonial, where they picked up assets of $21.8 billion, with $14.3 billion of that protected by the FDIC via a loss-share agreement.
What that did for Colonial strengthen their existing No. 4 spot in Georgia, bring them to No. 4 in Alabama, and finally really helped them surge in Florida, where they went from No. 17 to No. 5.
Now it seems BB&T Chairman and CEO Kelly King will have his work cut out for him to maintain the operational strategy now that the company is viewed as a strong competitor and significant threat in a number of markets in the U.S.
If he can keep the conservative strategy while remaining a top bank, we could see BB&T become one of the elite banks of the world, and among the more profitable as well.
Another challenge King and BB&T will face is increased scrutiny from the government as they become a larger player in the game and their continued growth draws more attention to them.
Their relative operations below the radar kept them from being interfered with by the government, but that could also change soon if they continue to grow and make waves in the banking industry.
