Summary
This 8-K filing from BB&T Corporation (then known as BB&T) announces a definitive agreement to acquire Regional Financial Corporation, the holding company for First South Bank, for approximately $274.6 million in stock. This strategic acquisition marks BB&T's entry into the Florida market, specifically targeting economically attractive areas like Tallahassee, the Panhandle, Jacksonville, and the Gulf Coast. First South Bank is a $1.6 billion institution known for its significant presence in residential and construction lending within its operating regions. The deal, structured as a tax-free stock swap, is expected to be completed in the third quarter of 2002, subject to regulatory and shareholder approvals. BB&T anticipates that this acquisition will enhance its franchise by leveraging First South Bank's branch network to cross-sell its broader product offerings and improve operational efficiency through an estimated 10% cost savings. The transaction is projected to be accretive to BB&T's earnings per share within its first few years.
Key Highlights
- 1BB&T to acquire Regional Financial Corporation (holding company for First South Bank) for $274.6 million in BB&T stock.
- 2Acquisition provides BB&T with entry into key Florida markets, including Tallahassee, Jacksonville, and the Gulf Coast.
- 3First South Bank is a $1.6 billion institution, strong in residential and construction lending.
- 4Transaction is structured as a tax-free stock swap and is expected to close in Q3 2002.
- 5BB&T anticipates approximately 10% cost savings from the integration.
- 6The deal is expected to be accretive to BB&T's earnings per share starting in year 2 (Cash Basis) and year 3 (GAAP).
- 7The acquisition aligns with BB&T's strategy of pursuing in-market and contiguous state acquisitions.