Orders Issued Under Bank Holding Company Act

Federal Reserve Bulletin, Feb, 2000

By order of the Board of Governors, effective December 17, 1999.

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.

(1.) Asset data are as of June 30, 1999. Deposit data are as of June 30, 1999, and are adjusted to include acquisitions by BB&T after that date. In this context, depository institutions include commercial banks, savings banks, and savings associations.

(2.) See 12 U.S.C. [sections] 1842(d). A bank holding company's home state is the state in which the total deposits of all banking subsidiaries of such company were the largest on July 1, 1966, or the date on which the company became a bank holding company, whichever is later. 12 U.S.C. [sections] 1841(o)(4)(c).

(3.) For purposes of section 3(d) of the BHC Act, the Board considers a bank to be located in the states in which the bank is chartered, headquartered, or operates a branch. See 12 U.S.C. [subsections] 1841(o)(4)-(7) and 1842(d)(1)(A) and (2)(B).

(4.) See 12 U.S.C. [subsections] 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and (B). BB&T meets the capital and managerial requirements established under applicable law, and the subsidiary banks of Premier have beer, in existence and operated for five years, as required by applicable state law. See Ga. Code Ann. [sections] 7-1-622(b)(1) (Lexis 1999). After consummation of the proposal, BB&T would control less than 10 percent of the total amount of deposits of insured depository institutions in the United States and less than 30 percent of total deposits held by insured depository institutions in Georgia, which is the percentage established by state law. See Ga. Code Ann. [sections] 7-1-622(b)(2)(B). All other requirements under section 3(d) of the BHC Act also would be met on consummation of the proposal.

(5.) See 12 U.S.C. [sections] 1842(c).

(6.) The Atlanta banking market is defined as the counties of Bartow, Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinett, Hall (excluding the town of Clermont), Henry, Newton, Paulding, Rockdale, and Walton, and the towns of Auburn and Winder in Barrow County.

(7.) The Milledgeville banking market is defined as Baldwin and Hancock Counties and the northern half of Wilkinson County. BB&T entered the Milledgeville banking market in November 1999, through the acquisition of First Liberty Financial Corp. and its subsidiary bank, First Liberty Bank, both in Macon, Georgia.

(8.) Market share data for the Atlanta banking market are as of June 30, 1998, and for the Milledgeville banking market as of June 30, 1999. These data are based on calculations that include the deposits of thrift institutions at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1983). Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991).