Recent mergers and acquisitions
BB&T (BBT) entered into numerous mergers and acquisitions since its inception. Recently, the company acquired 21 branches from Citibank (C) in June 2014. It also acquired $1.2 billion in deposits and $122 million in loans in the Austin, Bryan-College Station, and San Antonio markets where these branches were located.
Acquisition of additional Texas branches from Citigroup
In September 2014, BB&T announced an agreement to acquire an additional 41 branches, $2.3 billion of deposits, and $87 million of loans in the Dallas, Houston, Midland, and Odessa markets from Citibank.
According to Citigroup, its branch network in Texas didn’t capture future growth and market share in traditional retail banking. It plans to focus on major urban markets for branch banking. Citigroup and other big banks, like JPMorgan Chase (JPM) and Bank of America (BAC), are currently focused more on expanding digital channels—including online and mobile banking. They’re optimizing their branch networks.
This is in response to the changing customer preferences towards the various banking channels.
Expanding footprints in Texas
BB&T entered Texas in 2009 with the acquisition of Colonial BancGroup. Colonial failed during the financial crisis. Regulators shut it down. Now, BB&T is looking to expand its branch network in Texas. BB&T’s branches in Texas grew from 22 to 123 since the Colonial acquisition.
The Citigroup branch acquisition includes retail deposits that strengthen BB&T’s presence in Texas. BB&T’s longer-term goal is to create a balanced retail and commercial franchise in key Texas markets. Texas has become one of BB&T’s fastest growing markets.
You’ll learn about BB&T’s Bank of Kentucky and Susquehanna acquisitions in the next part of this series.