BB&T’s Kelly King made it clear that commercial real estate lending is starting to look good, particularly in the multifamily sector. From an article in the Triad Business Journal:
But CEO Kelly King surprised some analysts last week in a conference call about those quarterly results when he said BB&T is starting to change its outlook on CRE lending.
“I will point out that that’s an emerging opportunity for us because, as you know, that’s been running off really for the last several years,” King said. But “we certainly think it’s opportunistic now for us to get back more aggressively involved in that market.”
Nancy Bush of New Jersey-based NAB Research was among the analysts on the call whose ears perked up, telling King she “had a mini heart attack” at the notion of BB&T diving back into CRE lending and asking for some clarification. King told her not to worry, the bank will still stick to its conservative ways.
“No, not going out and doing all the crazy stuff that got everybody in trouble” such as big land loans and speculative projects, King said. “But on the other hand, when they are really fully cash flowing, good projects with good solid cash equities in the multifamily space, we’d be interested in that.”