BB&T Corp. to acquire the First Banking Co. of SE Georgia for 3.51 times revenue, The

Weekly Corporate Growth Report, Jan 10, 2000

The Deal: The BB&T Corporation has agreed to purchase the First Banking Company of Southeast Georgia for $123.7 million in stock. According to the terms of the transaction, BB&T will exchange 0.74 share for each First Banking share, or $22.10, based on BB&T's closing price of $29.86. After the news was announced, First Banking's shares fell 87.5 cents, to close at $21.625, while BB&T's shares increased 37.5 cents, to'close at $29.875.

Discussion: First Banking Company of Southeast Georgia is a holding company comprised of First Bulloch Bank & Trust, Metter Banking, First National Bank of Effingham and Wayne National Bank, which it acquired in 1999. The banks serve businesses and consumers through 12 offices in Georgia's Bulloch, Candler, Effingham, and Wayne counties. Besides consumer and construction loans, the banks offer commercial and agricultural real estate mortgages, which make up nearly 65% of the loan portfolio.

Although BB&T had no presence in Georgia at the start of 1999, it has made five Georgia bank purchase deals since, and currently has as well more than 650 branches in more than 270 cities. Its largest subsidiary, Branch Banking and Trust, is one of North Carolina's oldest banks. BB&T offers consumer and commercial loans funded primarily by saving accounts, CDs and IRAs. BB&T's growth through acquisitions isn't limited to banks, however, as the company bought several insurance companies in 1999 as well as securities firm Scott & Stringfellow Financial. Several other subsidiaries provide lease financing and investment services.