BB&T 2008 Annual Report Download - page 16

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and acquisition opportunities. BB&T will continue to assess bank and thrift acquisitions subject to market
conditions and suitable candidates, primarily within BB&T’s existing footprint, and will pursue economically
advantageous acquisitions of insurance agencies, specialized lending businesses, and fee income generating
financial services businesses. BB&T’s acquisition strategy is focused on three primary objectives:
Što pursue acquisitions of banks and thrifts with compatible cultures that will enhance BB&T’s banking
network and customer delivery system;
Što acquire companies in niche markets that provide products or services that can be offered through the
existing distribution system to BB&T’s current customer base; and
Što consider strategic nonbank acquisitions in markets that are economically feasible and provide positive
long-term benefits.
BB&T completed acquisitions of 40 community banks and thrifts, 85 insurance agencies and 33 nonbank
financial services providers over the last fifteen years. In the long-term, BB&T expects to continue to take
advantage of the consolidation in the financial services industry and expand and enhance its franchise through
mergers and acquisitions. The consideration paid for these acquisitions may be in the form of cash, debt or BB&T
common stock. The amount of consideration paid to complete these transactions may be in excess of the book
value of the underlying net assets acquired, which could have a dilutive effect on BB&T’s earnings. In addition,
acquisitions often result in significant front-end charges against earnings; however, cost savings and revenue
enhancements, especially incident to in-market bank and thrift acquisitions, are also typically anticipated.
Lending Activities
The primary goal of the BB&T lending function is to help clients achieve their financial goals by providing
quality loan products that are fair to the client and profitable to the Corporation. Management believes that this
purpose can best be accomplished by building strong, profitable client relationships over time, with BB&T
becoming an important contributor to the prosperity and well-being of its clients. In addition to the importance
placed on client knowledge and continuous involvement with clients, BB&T’s lending process incorporates the
standards of a consistent company-wide credit culture and an in-depth local market knowledge. Furthermore, the
Corporation employs strict underwriting criteria governing the degree of assumed risk and the diversity of the
loan portfolio in terms of type, industry and geographical concentration. In this context, BB&T strives to meet
the credit needs of businesses and consumers in its markets while pursuing a balanced strategy of loan
profitability, loan growth and loan quality.
BB&T conducts the majority of its lending activities within the framework of the Corporation’s community
bank operating model, with lending decisions made as close to the client as practicable.
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