BB&T to offer $1.5 billion in stock, slash dividend to help repay government investment

BB&T to offer stock, cut dividend to repay gov’t

WINSTON-SALEM, N.C. — BB&T says it will sell $1.5 billion in common shares to help repay the government’s investment in its preferred stock and warrants through the U.S. Treasury’s TARP Capital Purchase Plan.

Winston-Salem, N.C.-based BB&T Corp. also says it is cutting its third-quarter dividend to 15 cents per share, down 68 percent. The bank says the dividend cut will save $725 million annually.

The government’s recent bank stress tests showed that BB&T was one of nine major banks that had sufficient capital to withstand a sharp economic downturn.