BB&T Corp., the banking group that entered the Texas market just a few years ago, has acquired 41 branches from Citigroup Inc., including branches in Dallas, Houston and Midland. The sale will give BB&T an additional $2.3 billion deposits and $87 million in loans. Citi said in a statement that its branch network in Texas did not provide the scale for future growth or market share. The purchase will give BB&T a total of 123 branches in Texas with $5.3 billion in deposits.
Citi will continue its other financial businesses in Texas. “We could not be more pleased to welcome our new Texas clients and associates into the BB&T family,” said chairman and CEO 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 adds more Texas branches 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. BB&T’s Texas presence extends 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 do business in the state. Including today’s announced acquisition, BB&T has approximately 2,050 employees in Texas. Deutsche Bank Securities Inc. provided financial advice and Wachtell, Lipton, Rosen & Katz provided legal counsel to BB&T in this transaction.