BB&T
Encyclopedia
BB&T Corporation is an American bank
with assets of $157 billion (March 2011), offering full-service commercial and retail banking services along with other financial services like insurance
, investments, retail brokerage, mortgage
, corporate finance, consumer finance, payment services, international banking, leasing
and trust. Based in Winston-Salem
, North Carolina
, BB&T operates more than 1,850 financial centers in the United States
of North Carolina
, South Carolina
, Virginia
, Maryland
, West Virginia
, Kentucky
, Tennessee
, Georgia
, Florida
, Alabama
, Indiana
, Texas
, and in Washington, D.C.
.
It is also notable for certain ideological stances taken by its management, and for its financial support of academic programs teaching the philosophy of Ayn Rand
.
In June 2009, its chairman, John A. Allison IV
delivered a keynote address to a meeting of the center-right Competitive Enterprise Institute
, where he said government regulation caused the 2007-2009 financial collapse. The bank had been forced to accept $3.1 billion in bailout money through the U.S. Treasury's Troubled Asset Relief Program.
Earlier, in 2006, BB&T said it wouldn't lend money for commercial projects on property acquired through eminent domain
. This was a reaction to the United States Supreme Court's decision in Kelo v. New London in 2005 that such transfers are permissible.
BB&T's beginnings date back to 1872, when Alpheus Branch and Thomas Jefferson Hadley founded the "Branch and Hadley" merchant bank in their small hometown of Wilson, North Carolina
. After many transactions, mostly with local farmers, Branch bought out Hadley's shares in 1887 and renamed the company to "Branch and Company, Bankers". Two years later, Branch, his father-in-law Gen. Joshua Barnes, Hadley, and three other men, secured a charter from the North Carolina General Assembly
to operate the "Wilson Banking and Trust Company". After numerous additional name changes, the company finally settled on the name "Branch Banking and Company". Branch remained an active member in the company until his death in 1893.
In 1900, all of Branch's banking companies consolidated as Branch Banking and Company, allowing the institution to expand its services. In 1902 a savings
department was created and in 1907 a trust
department was authorized; this made Branch's company the first in the state to engage in trust activities. The bank made its final name change in 1913 to "Branch Banking and Trust", or BB&T, to reflect its new activities.
BB&T sold Liberty Bonds during World War I
and grew to have more than $4 million in assets by 1923. An insurance division was added in 1922, followed by a mortgage division in 1923. As banks across the nation failed as a result of the 1929 Stock Market Crash, BB&T survived; it was the only one to do so in the town of Wilson.
World War II
revived BB&T. BB&T's prosperity continued into the 1960s, as mergers and acquisitions
grew the company to $343 million in assets with new branches in 35 cities. By 1994, BB&T had become North Carolina
's largest bank with $10.5 billion in assets and 263 offices in 138 cities in the Carolinas
, though it has since slipped to second behind Bank of America
.
In 1995, BB&T and Southern National Bank, another bank with roots in the eastern part of the state, completed a "merger of equals." In an unusual arrangement, the holding company retained the Southern National name for a few years, but all of its banks took the BB&T name. This gave the new BB&T 437 branches in 220 cities in the Carolinas and Virginia
. The bank continued to expand nationwide through the 1990s, purchasing Fidelity Federal Bankshares, First Financial of Petersburg, Maryland Federal Bancorp and Franklin Bancorporation in the Virginia/Maryland
area. In 1999, BB&T acquired MainStreet Financial Corp. of Martinsville, and Mason-Dixon Bancshares of Westminster, and further expanded into Georgia
and West Virginia
after purchasing First Liberty of Macon and Matewan Bancshares. The latter deal made BB&T the largest bank in West Virginia, a position it has held on to since.
From 2000 to 2005, BB&T acquired numerous smaller banks, expanding into Tennessee
, Kentucky
, and even Florida
. By Dec. 31, 2005, BB&T Corporation had secured $109.2 billion in assets; operated more than 1,500 banking offices in 11 states and the District of Columbia; and had more than 28,000 employees.
In early 2007 BB&T acquired Coastal Federal Bank which is primarily located in Myrtle Beach, South Carolina. It has been one of the Carolina's fastest growing banks. After BB&T's announcement of an opportunity for a "merger of equals" it was speculated that it would be a merger with either Regions Financial
of Birmingham
or Fifth Third
of Cincinnati.
In late 2008 the bank accepted $3.1 billion in bailout money through the sale of its preferred shares to the U.S. Treasury's Troubled Asset Relief Program. The bank said in June 2009 that it had received approval to repurchase the shares. Also in June 2009, its chairman, John A. Allison IV
delivered a keynote address to a meeting of the Competitive Enterprise Institute
, where he claimed to show how government regulation caused the 2007-2009 financial collapse.
On August 15, 2009, it was announced that the deposits and loan accounts of the Colonial Bank
were being transferred to BB&T as part of Colonial Bank's receivership by the FDIC. This acquisition added over 340 branches in Alabama
, Florida
, Georgia, Nevada
and Texas
along with approximately $26 billion in assets. This moved BB&T Corporation to the 8th largest commercial bank in the United States based on deposits. BB&T quickly flipped the Nevada branch to U.S. Bancorp
(dropping it to 10th overall), but hung on to its Texas branches, despite the Texas branches being outside of its historical footprint. As of November 1, 2011, In acquiring BankAtlantic, BB&T will acquire approximately $2.1 billion in loans and assume approximately $3.3 billion in deposits.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
with assets of $157 billion (March 2011), offering full-service commercial and retail banking services along with other financial services like insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, investments, retail brokerage, mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
, corporate finance, consumer finance, payment services, international banking, leasing
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....
and trust. Based in Winston-Salem
Winston-Salem, North Carolina
Winston-Salem is a city in the U.S. state of North Carolina, with a 2010 population of 229,617. Winston-Salem is the county seat and largest city of Forsyth County and the fourth-largest city in the state. Winston-Salem is the second largest municipality in the Piedmont Triad region and is home to...
, North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, BB&T operates more than 1,850 financial centers in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
of North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
, Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
, Kentucky
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
, Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
, Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, Indiana
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, and in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
.
It is also notable for certain ideological stances taken by its management, and for its financial support of academic programs teaching the philosophy of Ayn Rand
Ayn Rand
Ayn Rand was a Russian-American novelist, philosopher, playwright, and screenwriter. She is known for her two best-selling novels The Fountainhead and Atlas Shrugged and for developing a philosophical system she called Objectivism....
.
In June 2009, its chairman, John A. Allison IV
John A. Allison IV
John Allison was born on August 14, 1948, in Charlotte, North Carolina. He began his career with BB&T in 1971 following his graduation from the University of North Carolina with a degree in business administration...
delivered a keynote address to a meeting of the center-right Competitive Enterprise Institute
Competitive Enterprise Institute
The Competitive Enterprise Institute is a non-profit think tank founded on March 9, 1984 in Washington, D.C. by lobbyist Fred L. Smith, Jr to advance economic liberty and fight over-regulation by big government...
, where he said government regulation caused the 2007-2009 financial collapse. The bank had been forced to accept $3.1 billion in bailout money through the U.S. Treasury's Troubled Asset Relief Program.
Earlier, in 2006, BB&T said it wouldn't lend money for commercial projects on property acquired through eminent domain
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...
. This was a reaction to the United States Supreme Court's decision in Kelo v. New London in 2005 that such transfers are permissible.
History
Wilson, North Carolina
Wilson is a city and the county seat of Wilson County in the Coastal Plain region of the U.S. state of North Carolina. The 18th largest city in the state, Wilson had a population of 49,167 according to the 2010 census.- Geography :...
. After many transactions, mostly with local farmers, Branch bought out Hadley's shares in 1887 and renamed the company to "Branch and Company, Bankers". Two years later, Branch, his father-in-law Gen. Joshua Barnes, Hadley, and three other men, secured a charter from the North Carolina General Assembly
North Carolina General Assembly
The North Carolina General Assembly is the state legislature of the U.S. state of North Carolina. The General Assembly drafts and legislates the state laws of North Carolina, also known as the General Statutes...
to operate the "Wilson Banking and Trust Company". After numerous additional name changes, the company finally settled on the name "Branch Banking and Company". Branch remained an active member in the company until his death in 1893.
In 1900, all of Branch's banking companies consolidated as Branch Banking and Company, allowing the institution to expand its services. In 1902 a savings
Savings account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...
department was created and in 1907 a trust
Investment trust
An Investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies....
department was authorized; this made Branch's company the first in the state to engage in trust activities. The bank made its final name change in 1913 to "Branch Banking and Trust", or BB&T, to reflect its new activities.
BB&T sold Liberty Bonds during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
and grew to have more than $4 million in assets by 1923. An insurance division was added in 1922, followed by a mortgage division in 1923. As banks across the nation failed as a result of the 1929 Stock Market Crash, BB&T survived; it was the only one to do so in the town of Wilson.
World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
revived BB&T. BB&T's prosperity continued into the 1960s, as mergers and acquisitions
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
grew the company to $343 million in assets with new branches in 35 cities. By 1994, BB&T had become North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
's largest bank with $10.5 billion in assets and 263 offices in 138 cities in the Carolinas
The Carolinas
The Carolinas is a term used in the United States to refer collectively to the states of North and South Carolina. Together, the two states + have a population of 13,942,126. "Carolina" would be the fifth most populous state behind California, Texas, New York, and Florida...
, though it has since slipped to second behind Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
.
In 1995, BB&T and Southern National Bank, another bank with roots in the eastern part of the state, completed a "merger of equals." In an unusual arrangement, the holding company retained the Southern National name for a few years, but all of its banks took the BB&T name. This gave the new BB&T 437 branches in 220 cities in the Carolinas and Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
. The bank continued to expand nationwide through the 1990s, purchasing Fidelity Federal Bankshares, First Financial of Petersburg, Maryland Federal Bancorp and Franklin Bancorporation in the Virginia/Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
area. In 1999, BB&T acquired MainStreet Financial Corp. of Martinsville, and Mason-Dixon Bancshares of Westminster, and further expanded into Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
and West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
after purchasing First Liberty of Macon and Matewan Bancshares. The latter deal made BB&T the largest bank in West Virginia, a position it has held on to since.
From 2000 to 2005, BB&T acquired numerous smaller banks, expanding into Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
, Kentucky
Kentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
, and even Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. By Dec. 31, 2005, BB&T Corporation had secured $109.2 billion in assets; operated more than 1,500 banking offices in 11 states and the District of Columbia; and had more than 28,000 employees.
In early 2007 BB&T acquired Coastal Federal Bank which is primarily located in Myrtle Beach, South Carolina. It has been one of the Carolina's fastest growing banks. After BB&T's announcement of an opportunity for a "merger of equals" it was speculated that it would be a merger with either Regions Financial
Regions Financial
Regions Financial Corporation is a publicly held company based in Birmingham, Alabama, USA, with the corporate headquarters at the Regions Center...
of Birmingham
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
or Fifth Third
Fifth Third Bank
Fifth Third Bank is a U.S. regional banking corporation, headquartered in Cincinnati, Ohio and is the principal subsidiary of holding company Fifth Third Bancorp ....
of Cincinnati.
In late 2008 the bank accepted $3.1 billion in bailout money through the sale of its preferred shares to the U.S. Treasury's Troubled Asset Relief Program. The bank said in June 2009 that it had received approval to repurchase the shares. Also in June 2009, its chairman, John A. Allison IV
John A. Allison IV
John Allison was born on August 14, 1948, in Charlotte, North Carolina. He began his career with BB&T in 1971 following his graduation from the University of North Carolina with a degree in business administration...
delivered a keynote address to a meeting of the Competitive Enterprise Institute
Competitive Enterprise Institute
The Competitive Enterprise Institute is a non-profit think tank founded on March 9, 1984 in Washington, D.C. by lobbyist Fred L. Smith, Jr to advance economic liberty and fight over-regulation by big government...
, where he claimed to show how government regulation caused the 2007-2009 financial collapse.
On August 15, 2009, it was announced that the deposits and loan accounts of the Colonial Bank
Colonial Bank
Colonial Bank, formerly a subsidiary of Colonial Bancgroup Inc., was headquartered in Montgomery, Alabama. Colonial Bank had 346 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Colonial's assets had grown from $166 million in 1981 to $26 billion. This growth can be attributed...
were being transferred to BB&T as part of Colonial Bank's receivership by the FDIC. This acquisition added over 340 branches in Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Georgia, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
along with approximately $26 billion in assets. This moved BB&T Corporation to the 8th largest commercial bank in the United States based on deposits. BB&T quickly flipped the Nevada branch to U.S. Bancorp
U.S. Bancorp
U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on $330 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on...
(dropping it to 10th overall), but hung on to its Texas branches, despite the Texas branches being outside of its historical footprint. As of November 1, 2011, In acquiring BankAtlantic, BB&T will acquire approximately $2.1 billion in loans and assume approximately $3.3 billion in deposits.
Donations
- BB&T donated $3 million to fund the establishment of BB&T Program of Free Enterprise at the Florida State UniversityFlorida State UniversityThe Florida State University is a space-grant and sea-grant public university located in Tallahassee, Florida, United States. It is a comprehensive doctoral research university with medical programs and significant research activity as determined by the Carnegie Foundation...
. - The company donated $2 million to fund research on Ayn RandAyn RandAyn Rand was a Russian-American novelist, philosopher, playwright, and screenwriter. She is known for her two best-selling novels The Fountainhead and Atlas Shrugged and for developing a philosophical system she called Objectivism....
's work, which she called ObjectivismObjectivism (Ayn Rand)Objectivism is a philosophy created by the Russian-American philosopher and novelist Ayn Rand . Objectivism holds that reality exists independent of consciousness, that human beings have direct contact with reality through sense perception, that one can attain objective knowledge from perception...
, at the University of Texas. - The company donated $600,000 to Florida Gulf Coast UniversityFlorida Gulf Coast UniversityFlorida Gulf Coast University, also known as FGCU, is a coeducational public university located just south of the Southwest Florida International Airport in the South Fort Myers region of unincorporated Lee County, Florida, United States. The university belongs to the 11-campus State University...
for the growth of programs at the Lutgert College of Business. - The company donated $350,000 to fund the teaching of "The Moral Foundations of Capitalism" at the Loyola College in MarylandLoyola College in MarylandLoyola University Maryland is a Roman Catholic, Jesuit private university in Baltimore, Maryland, United States. Established as Loyola College in Maryland by John Early and eight other members of the Society of Jesus in 1852, it is one of 28 member institutions of the Association of Jesuit Colleges...
. - The company donated $1.5 million to the University of Georgia to "expand teaching and research into the foundations of capitalism and free market economies".
- The company donated $1 million to the University of Central FloridaUniversity of Central FloridaThe University of Central Florida, commonly referred to as UCF, is a metropolitan public research university located in Orlando, Florida, United States...
to create the BB&T Program for Business Ethics and fund the teaching of "The Moral Foundations of Capitalism"
- The company donated $1.75 million to West Virginia University's College of Business and Economics.The funds will establish a BB&T Chair in Free Market Thought and enhance the school's free market research and teaching programs.
External links
- Welcome to BB&T - Branch Banking & Trust Company
- In July 2007 BB&T Insurance Services, Inc. was ranked eighth in Business Insurances world's largest brokers list.
- In July 2010 BB&T Insurance Services, Inc. was ranked sixth in Business Insurances world's largest brokers list.
- Yahoo! - BB&T Corporation Company Profile