Summary
TRUIST FINANCIAL CORP (TFC), under its former name BB&T Corporation, filed an 8-K on August 17, 2009, to disclose a significant acquisition. Effective August 14, 2009, Branch Bank, a subsidiary of BB&T, assumed all deposits and acquired certain assets and liabilities of Colonial Bank from the Federal Deposit Insurance Corporation (FDIC) as receiver. This transaction involved the assumption of approximately $21.8 billion in assets, including loans, marketable securities, and cash, and approximately $23.7 billion in liabilities, predominantly customer deposits. The acquisition was structured with certain loans acquired at a discount and a substantial payment from the FDIC to Branch Bank, along with significant loss-sharing agreements to mitigate risk on covered assets.
Key Highlights
- 1BB&T Corporation (TFC) subsidiary, Branch Bank, acquired substantially all assets and liabilities of Colonial Bank from the FDIC as receiver.
- 2The acquisition includes approximately $21.8 billion in assets and the assumption of $23.7 billion in liabilities, primarily customer deposits.
- 3The FDIC provided a payment of approximately $3.5 billion to Branch Bank as part of the transaction, subject to post-closing adjustments.
- 4Extensive loss-sharing agreements are in place with the FDIC covering significant portions of loans and securities, with the FDIC reimbursing 80% to 95% of covered losses.
- 5Residential mortgage loans and other real estate covered by loss sharing have a 10-year term; commercial loans and securities have a 5-year loss sharing term for the FDIC.
- 6BB&T also announced a public offering of its common stock on August 17, 2009, as disclosed in a separate press release.
- 7Financial statements and pro forma information related to the acquisition were to be filed in a subsequent amendment.