BB&T in Winston-Salem, N.C., could abstain from bank acquisitions this year as it integrates recent purchases and contends with depressed stock prices across the banking industry.
The $210 billion-asset company, which bought Susquehanna Bancshares in Lititz, Pa., last fall, is close to completing its acquisition of National Penn Bancshares in Boyertown, Pa. Meanwhile, BB&T's stock has fallen 25% since hitting its 52-week high in late July.
"While long term, we're still bullish with regard to M&A, I wouldn't be surprised if we didn't do anything the rest of this year," Kelly King, BB&T's chairman and chief executive, said during a presentation Tuesday at a conference hosted by Credit Suisse.
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Kelly King was recently named American Banker's Banker of the Year based on his ability to complete big M&A deals and work through problems with regulators. Here are his extended thoughts on those topics as well as others, including the challenges behind making the payments system fast and safe.
December 30 -
For steering the Winston-Salem, N.C., company through an extended period of industry adversity, while providing a blueprint for large-scale M&A, King has been named American Banker's Banker of the Year for 2015.
December 20 -
The North Carolina regional bank is placing a big bet that targeting Pennsylvania's high earners will offset the state's reputation for having slower-than-average growth.
August 18
"We've got enough to do right now," King said, acknowledging that BB&T has its "plate full" in terms of integrating deals. "The other [reason] is I don't particularly like using our currency at these low prices."
BB&T isn't the only bank suffering from depressed stock prices. The KBW Nasdaq Bank Index has lost 26% since its 52-week peak on July 22.
"Our currency is doing well compared to the industry, but our industry has been overly beaten down," King said.
Instead, BB&T is thinking of buying back its own stock. "I think buybacks are getting more likely, because I don't really want to use our currency for M&A in this environment," King said.
BB&T, which likes to increase its assets by 5% to 10% annually, will remain opportunistic and would consider a great deal if it comes along.
"If we were to have a really attractive M&A opportunity that met all of our criteria – and we got really excited about – that would take precedence over a buyback," King said.
