BB&T (BBT) Acquires Operations and Deposits of Colonial Bank (CNB)

August 17, 2009 7:08 AM EDT

Late Friday, as expected, BB&T Corporation (NYSE: BBT) announced it has acquired the banking operations of Colonial Bank (NYSE: CNB) of Montgomery, Ala. BB&T has acquired $22 billion in assets and assumed $20 billion in deposits in the transaction. The FDIC and BB&T have entered into a loss sharing agreement covering substantially all acquired loans and securities.

It moves BB&T to the No. 4 market share in Alabama and No. 5 in Florida, two key markets in the Southeast. Its No. 4 position in Georgia will not change. BB&T's goal is to be in the top five in deposit market share in all of its markets.

The announcement follows a decision by Alabama regulators to close Colonial Bank and name the FDIC as receiver. Under the terms of the agreement, BB&T has assumed all of Colonial Bank's deposit accounts, whether or not insured by the FDIC. BB&T will not acquire any of the assets or assume any obligations of Colonial's holding company or select assets and liabilities of Colonial Bank, including any relating to Taylor, Bean and Whitaker Mortgage Corporation.

Also excluded are assets and liabilities the FDIC determines are related to fraudulent or criminal activities. BB&T is indemnified by the FDIC for any liabilities not expressly assumed in the transaction, including those related to fraudulent, criminal or inappropriate activities of Colonial.

Related Categories

Mergers and Acquisitions

Stocks Mentioned

Related Entities

• UBS
• BB&T Capital Markets
• FDIC

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