Orders Issued Under Bank Holding Company Act - BB and T Corp.'s acquisition of F and M National Corp - Statistical Data Included

Federal Reserve Bulletin, August, 2001 by Robert Dev. Frierson

Consummation of the proposal without divestitures would be consistent with Board precedent and the DOJ Guidelines in the Annapolis, Charlottesville, Danville, Fredericksburg, Harrisonburg, Lynchburg, Newport News-Hampton, Norfolk-Portsmouth, Richmond, Roanoke, Staunton, Winchester, and Metropolitan Washington, D.C. banking markets. In each of these markets, the increase in the HHI as a result of this proposal would be fewer than 200 points, in most cases fewer than 40 points, and numerous competitors would remain.(12)

In the Martinsburg, West Virginia, and Alleghany, Charlotte, and Emporia, Virginia, banking markets, consummation of the proposal would exceed the DOJ Guidelines. In order to mitigate potentially adverse competitive effects of the proposal in these markets, BB&T has proposed divestitures in each market that would reduce the HHIs to levels consistent with the DOJ Guidelines.(13)

Martinsburg. BB&T is the largest depository institution in the Martinsburg banking market, controlling deposits of $267.4 million, representing approximately 46.6 percent of market deposits. F&M is the third largest depository institution in the market, controlling deposits of $83.6 million, representing approximately 14.6 percent of market deposits. The HHI would increase 1357 points to 4215.

BB&T has committed to divest four branches in the banking market that control $68.4 million in deposits. On consummation of the proposal, and taking into account the proposed divestitures, BB&T would remain the largest depository institution in the Martinsburg banking market, controlling deposits of $282.5 million, representing approximately 49.2 percent of market deposits, and the HHI would increase 183 points to 3040. Seven other competitors would remain in the banking market, including three competitors that each would control at least 10 percent of market deposits. In addition, the market is attractive for entry; since 1997, four firms have entered the market de novo.

Alleghany. BB&T is the third largest depository institution in the Alleghany banking market, controlling deposits of $65 million, representing approximately 17.9 percent of market deposits. F&M is the largest depository institution in the market, controlling deposits of $129 million, representing approximately 35.6 percent of market deposits. On consummation, the HHI would increase 1244 points to 3628.

BB&T has committed to divest one branch in the banking market that controls approximately $61.5 million in deposits. On consummation of the proposal and taking into account the proposed divestiture, BB&T would become the largest depository institution in the Alleghany banking market, controlling deposits of $132.5 million, representing approximately 36.6 percent of market deposits. The HHI would increase by 36 points to 2421. Each of the five firms in the banking market would control at least 10 percent of market deposits.

Charlotte. BB&T is the second largest depository institution in the Charlotte banking market, controlling deposits of $29.8 million, representing approximately 25.2 percent of market deposits. F&M is the third largest depository institution in the market, controlling deposits of $18.5 million, representing approximately 15.7 percent of market deposits. On consummation of the proposal, the HHI would increase 788 points to 4487.