Transaction further accelerates Texas build out
- Acquisition includes 41 branches with $2.3 billion in deposits and $87 million in loans in the Dallas, Houston, Midland and Odessa markets (0.15 percent average cost of deposits)
- 5.3 percent deposit premium paid on total deposits
- Acquisition follows 21 branch acquisition completed in June
WINSTON-SALEM, N.C., Sept. 3, 2014 /PRNewswire/ — BB&T Corporation (NYSE: BBT) announced today the signing of an agreement to acquire 41 branches in Texas from Citibank. The acquisition includes Citibank retail branches in the Dallas, Houston, Midland and Odessa markets, including $2.3 billion in deposits and $87 million in loans.
“We could not be more pleased to welcome our new Texas clients and associates into the BB&T family,” said Chairman and Chief Executive Officer Kelly S. King. “Our previous 21-branch acquisition from Citibank has already proven to be a cultural fit, and we are excited to extend the BB&T brand to these individuals and our presence in these fast-growing strategically important markets.”
BB&T will pay a premium to book value of approximately 5.3 percent of total deposits.
This transaction represents a strategically compelling addition to the June 2014 acquisition of 21 branches and $1.2 billion in deposits primarily in the Austin, Bryan-College Station and San Antonio markets. Pro forma for this transaction, BB&T will have approximately 123 branches and $5.3 billion of deposits in Texas.
BB&T’s Texas presence extends well beyond its core banking operations. BB&T subsidiaries McGriff, Seibels & Williams Inc.; BB&T Insurance Services; Regional Acceptance Corporation; BB&T Capital Markets; BB&T Investment Services; and Grandbridge Real Estate Capital LLC are well established in Texas. Including today’s announced acquisition, BB&T has approximately 2,050 employees in Texas.
BB&T has posted a presentation to its website discussing the terms of the transaction. To access the presentation, go to BBT.com and click on “About” and proceed to “Investor Relations.”
Deutsche Bank Securities Inc. provided financial advice and Wachtell, Lipton, Rosen & Katz provided legal counsel to BB&T in this transaction.
BB&T is one of the largest financial services holding companies in the U.S. with $188.0 billion in assets and market capitalization of $28.4 billion, as of June 30, 2014. Based in Winston-Salem, N.C., the company operates 1,844 financial centers in 12 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T has been recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others. More information about BB&T and its full line of products and services is available at BBT.com.
This news release contains certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results may differ materially from current projections. Please refer to BB&T’s filings with the Securities and Exchange Commission for a summary of important factors that may affect BB&T’s forward-looking statements. BB&T undertakes no obligation to revise these statements following the date of this news release.
SOURCE BB&T Corporation