Stephen Simpson, CFA
Stephen Simpson, CFA
Dec. 23, 2015, 6:41 PM
- The Fed, the FDIC, and "all required state banking regulators" have approved BB&T's (NYSE:BBT) planned $1.8B acquisition of mid-Atlantic bank National Penn Bancshares (NASDAQ:NPBC). The cash/stock deal, first announced in August, is expected to close in the next few months.
- National Penn has $9.6B in assets, $7B in deposits, and 124 branch offices. BB&T plans to make National Penn CEO Scott Fainor a group executive overseeing "multiple community banking regions in Pennsylvania and contiguous states."
- Three months ago: BB&T deal pause may not last long
Oct. 2, 2015, 11:33 AM
- The long-awaited regulatory approval of the M&T Bank's purchase of Hudson City Bancorp, and the relatively quick green light for BB&T's acquisition of Susquehanna Bancshares has lifted M&A animal spirits in the regional bank sector.
- Another possible buyer could be Regions Financial (NYSE:RF) - its done well on its annual stress tests, and has expressed a willingness to look into deals. There's also Memphis-based First Horizon National (NYSE:FHN), though at least one activist believes the bank is more target than hunter.
- Possible sellers include First Niagara Financial (NASDAQ:FNFG), which has already put itself on the block.
- A target for BBT or Regions might be Georgia's Synovus Financial (NYSE:SNV), with $27B in assets, and an activist investor pushing for a sale.
- Another target might be Astoria Financial (NYSE:AF), with $15.3B in assets, and a neighbor in New York Community Bancorp (NYSE:NYCB) which might be on the hunt for acquisitions.
Sep. 24, 2015, 1:29 PM
- Among the more acquisitive of U.S. banks, BB&T's (NYSE:BBT) recent purchase of National Penn Bancshares was its third in a year (it hasn't closed yet), and will take assets to roughly $220B. It was enough for CEO Kelly King to talk about a "pause" in deals during the bank's earnings call in July.
- At $250B in assets, banks are subject to a kicked-up notch of regulatory oversight.
- "As we approach $250B you wouldn’t likely see us slip over . . . to $251B," King tells the FT today. "We will have a strategy in place to meaningfully go over, to absorb the additional cost of that hurdle point."
- While others are cautious about bank M&A, King says the Fed will approve deals if the buyer shows it is operating under the highest standards.
- Scale matters, says King. "I’ve made it very clear we are trying to get larger in this particular timeframe. Not because we want to be bigger but because we need scale to afford investments in technology and regulatory compliance.”
Aug. 18, 2015, 7:49 AM
- Headquartered in Allentown, PA, National Penn Bancshares (NASDAQ:NPBC), has $9.6B in assets, $6.7B in deposits, and 124 banking offices in PA, NJ, and MD. With the purchase, BB&T (NYSE:BBT) will significantly expand its footprint in the mid-Atlantic and boost its deposit share in PA to #4.
- Consideration of about $1.8B will be made up of 70% BB&T stock and 30% cash. National Penn owners can choose either 0.3206 share of BB&T stock or $13 in cash per share, subject to proration limiting total cash in the deal to about $550M. NPBC closed last night at $10.92.
- The deal is expected to be accretive to EPS in year one (excluding one-time acquisition-related charges).
Jul. 7, 2015, 4:17 PM
- With the federal and state approvals in hand, BB&T (NYSE:BBT) expects to close its purchase of SUSQ on August 1, with the systems conversion anticipated during Q4.
- Previously: BB&T selling two Susquehanna branches to help grease purchase deal (May 1)
- Previously: BB&T's King makes the rounds after Susquehanna purchase (Nov. 12, 2014)
May 1, 2015, 9:07 AM
- BB&T Corp. (NYSE:BBT) and Susquehanna Bancshares (NASDAQ:SUSQ) agree to sell two Susquehanna branches in Berkeley, West Virginia to MVB Bank (OTCQB:MVBF). The two have about $69M in deposits and $17M of loans.
- The two branches are being sold under BB&T's agreement with the DOJ and the Fed in order to get a green light for its Susquehanna acquisition.
Mar. 11, 2015, 3:10 PM
- "First Niagara (FNFG +0.9%) clearly bit off more than they could chew, trying to do four large acquisitions over a three-year period of time," says analyst Robert Wagner. Now it's paying the price, writes Patty Tascarella, in terms of lagging profits and pressure on the management team to turn things around.
- If no turnaround, who might be a buyer? It would have to be a sizable player, given FNFG's $38B balance sheet.
- Two Ohio-based banks which already have retail presences in Pittsburgh - where Fifth Third operates 59 branches - could make sense, particularly Fifth Third Bank (NASDAQ:FITB), and maybe Huntington Bancshares (NASDAQ:HBAN).
- BB&T (NYSE:BBT) is in the process of buying eastern-PA's Susquehanna Bancshares, and might want to extend its footprint further west, but it could be another few years before BB&T is ready for another major deal.
- Then there's Cleveland-based KeyCorp (NYSE:KEY) which may want to move into a contiguous market, and New York Community Bancorp (NYSE:NYCB) which is based in the same state as First Niagara.
Nov. 12, 2014, 11:03 AM
- Regulatory headwinds in banking are "plateauing," says BB&T (BBT -2.5%) chief Kelly King, appearing on CNBC after his bank's agreement to purchase Susquehanna Bancorp (SUSQ +32.1%) for about $2.5B. The issues being talked about today are quickly become yesterday's news, he says.
- Speaking with analysts/investors on a conference call, King says the two lenders had been in talks for several months. One wonders if the deal's announcement one week after last week's Republican landslide is just a coincidence.
- BB&T, says King, is very interested in other opportunities, but naturally the price has to be right. Texas? Not interested, he says, as those lenders are asking 2x-3x book (SUSQ looks like it's being purchased for about 1.7x tangible book).
- A move further up the East coast? King says BB&T could eventually move into NYC and Boston, but for now will focus on the Mid-Atlantic and Southeast.
- Possibly helping to push Susquehanna into a sale (and no doubt on the minds of other smaller lenders) are the compliance costs associated with the Bank Secrecy Act and Anti-Money Laundering rules, and King notes SUSQ can now fold those costs into BB&T's.
- Previously: First Niagara on the move after BB&T/Susquehanna deal
- Regional and small-cap bank ETFs: KRE, KBE, IAT, KBWB, RKH, QABA, KRU, KBWR, PSCF, KRS
Nov. 12, 2014, 7:10 AM
- Headquartered in Lititz, PA, Susquehanna Bancshares (NASDAQ:SUSQ) has $18.6B in assets to go along with BB&T's (NYSE:BBT) $187B.
- Terms: Susquehanna owners will receive 0.253 shares of BB&T common stock and $4.05 in cash for each share of Susquehanna they hold, valuing Susquehanna at $13.50 per share based on the closing price of BB&T over the last 45 days.
- SUSQ +18.8% premarket to $11.76.
- BB&T expects the deal to be accretive to EPS in year one, excluding one-time charges.
- A conference call to discuss the deal is set for 8:30 ET
- Presentation slides
Sep. 8, 2014, 9:46 AM
- The Bank of Kentucky Financial Corporation (BKYF +28.3%) is headquartered in Crestview Hills, and has $1.9B in assets, $1.6B in deposits, and 32 branches in Northern Kentucky and Cincinnati. BB&T (BBT) is purchasing the lender in a cash and stock deal valued at about $363M.
- In connection with the purchase, BB&T creates a new banking region encompassing Northern Kentucky and Cincinnati.
- BKYF owners will receive 1.0126 shares of BB&T common stock and $9.40 in cash for each share of BKYF they own, roughly equivalent to $47 per share at current prices.
- BB&T expects the deal to be accretive to EPS in the first full year.
Dec. 18, 2013, 11:10 AM
- BB&T(BBT +0.1%) is set to acquire 21 Citibank branches in Texas, including all of Citibank's retail branches in Austin and San Antonio.
- After the deal, BBT will have 81 financial centers in the state with $2.8B in deposits and $2.1B in loans.
- BBT is paying a 4.25% premium (~$36M) to book for the core deposits. (PR)
Mar. 6, 2013, 2:27 PM
Take a number if you have interest in Bankia's City National Bank of Florida. Among those expected to put in a bid are TD, BBT, PNC as well as two healthier Spanish lenders. Goldman is leading the sale and is asking $900M-$1B, while sources say $600M-$800M will get it done. "It is a nice little property ... but it is not a must-have," says one source, playing it cool.| Mar. 6, 2013, 2:27 PM
Dec. 18, 2012, 2:53 PMPNC Financial, TD Bank, BB&T (BBT) and BankUnited (BKU) are among the potential bidders as Spain's troubled Bankia looks to raise cash by putting its Florida unit - City National Bank of Florida - up for sale. With 26 branches, $4.3B in assets, and a loan book doing quite well for Florida, the business could fetch in the area of $500M. | Dec. 18, 2012, 2:53 PM
Aug. 17, 2012, 6:35 AM
BankUnited (BKU) is considering offers of around $25 a share from Toronto-Dominion Bank (TD) and BB&T (BBT), The NY Post reports, although the Florida-based firm is not in formal negotiations. The bids are below BankUnited's close of $25.70 yesterday and its asking price of $27-$29.| Aug. 17, 2012, 6:35 AM
Aug. 7, 2012, 12:36 PM
Mar. 13, 2012, 9:45 AM
BB&T (BBT +0.6%) agrees to take on the obligation of BankAtlantic’s (BBX +95.3%) $285M in trust-preferred securities to close the bank's takeover of the Florida lender following a judge’s recent ruling that blocked the deal because of the securities. BBT says its $301M deal for BBX has been made “even more compelling” by the improving economy in Florida.| Mar. 13, 2012, 9:45 AM