BB&T to buy Mid-America Bancorp for 2.53 times revenue

Weekly Corporate Growth Report, Nov 19, 2001

The Deal: BB&T Corp. has agreed to purchase Mid-- America Bancorp for $372.4 million in cash and stock. After news of the transaction was announced, shares of Mid-- America jumped $7.62 to $31.77, while BB&T shares lost seven cents to close at $33.94.

Discussion: Mid-America Bancorp is the holding company for Bank of Louisville and Bank of Louisville, FSB, which operate about 25 branches in Jefferson County and one office in Oldham County, Kentucky. The banks offer a range of products and services to businesses and individuals, including checking and savings accounts, certificates of deposit, letters of credit, safe deposit boxes and loans. Business loans account for about half of the company's loan portfolio, which also includes residential real estate, construction, commercial and consumer loans.

BB&T has more than 900 banking branches in the Carolinas, Georgia, Kentucky, Maryland, Tennessee, Virginia, West Virginia and Washington, DC. Its largest subsidiary, Branch Banking and Trust, is one of North Carolina's oldest banks. BB&T writes real estate, consumer, and commercial loans funded primarily by savings accounts, CDs and IRAs. Subsidiary Scott & Stringfellow is a full-service brokerage, while Regional Acceptance provides used car loans. Other units offer insurance, lease financing and management and employee benefits consulting.