BB&T to acquire select Texas branches from Citibank
WINSTON-SALEM, N.C., Dec. 18, 2013 /PRNewswire/ -- BB&T Corporation (BBT) announced today the signing of an agreement to acquire 21 branches in Texas from Citibank. The acquisition includes all Citibank's retail branches in the Austin, Bryan-College Station and San Antonio markets, including $1.2 billion in deposits and $134 million in loans. The acquisition expands BB&T's presence in Texas to 81 financial centers, $2.8 billion of deposits and $2.1 billion of loans.
"I want to warmly welcome our new clients and associates to BB&T," said Chairman and Chief Executive Officer Kelly S. King. "This acquisition is a compelling strategic expansion in Texas, where the BB&T brand and approach to client service have been very well received. We are excited about this transaction and look forward to our expanding opportunities in these fast-growing markets."
BB&T will pay a premium to book value of 4.25% of core deposits. Based on Sept. 30, 2013, balances, the expected premium is approximately $36 million.
"This acquisition is a great fit to leverage our current strategy and will allow our Texas operation to make an even bigger contribution to our future success," said President, Community Banking Ricky K. Brown.
BB&T's banking presence in Texas was established with its 2009 acquisition of Colonial Bank. Since then, BB&T has significantly expanded in Texas with great success through a targeted de novo strategy. In November 2012, BB&T announced plans to open 30 new commercially focused financial centers during 2013. That plan has been accomplished and, along with the acquisition announced today, has helped establish BB&T as a top-20 bank in Texas with strong momentum to continue its growth.
BB&T's Texas presence extends well beyond its core banking operations. BB&T subsidiaries McGriff, Siebel (SEBL) and 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 1,500 employees in Texas.
Deutsche Bank Securities Inc. provided financial advice and Wachtell, Lipton, Rosen & Katz provided legal counsel to BB&T in this transaction.
As of Sept. 30, 2013, BB&T is one of the largest financial services holding companies in the U.S. with $181.1 billion in assets and market capitalization of $23.8 billion. Based in Winston-Salem, N.C., the company operates 1,824 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 is consistently 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 www.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