The Banking Industry in the Triad

[twincity]

The Journal broke the news a couple days ago. Now two other news sources, Bloomberg and the Wall Street Journal, are saying this is true. BB&T will buy troubled Colonial BancGroup Inc. The deal would be the largest ever for BB&T. Colonial has about $26 billion in total assets.

http://www2.journalnow.com/content/2009/au...eculation-abou/

[DCMetroRaleigh]

I guess the mods can edit the title accordingly as the story develops throughout the day. The Journal broke the news a couple days ago. Now two other news sources, Bloomberg and the Wall Street Journal, are saying this is true. BB&T will buy troubled Colonial BancGroup Inc. The deal would be the largest ever for BB&T. Colonial has about $26 billion in total assets.

http://www2.journalnow.com/content/2009/au...eculation-abou/

[krazeeboi]

Interesting. This part of the article stood out to me:

The risk for BB&T: Colonial could become as dicey a takeover target for BB&T as Golden West Financial Corp. proved to be for Wachovia Corp. Golden West's toxic exotic mortgages weighed so hard on Wachovia's financial health that it ultimately cost the bank its independence last year. Colonial has been hammered by bad mortgage loans in particular in Florida, Nevada and Texas.

The reward for BB&T: Colonial has the No. 4 deposits market share in Alabama, where BB&T has a token presence, and the No. 6 market share in Florida, where BB&T is 17th, according to the latest FDIC data. Colonial also has branches in Georgia and Texas and is selling its 21 branches in Nevada.

[suburban george3]

New jobs possible in Winston? New tower(s)?

[Gard]

According to articles I've read on the deal, BB&T is buying only the deposits and some branches of Colonial. The loans and remaining assets will remain with the FDIC to auction off. So basically, they are just purchasing the few good pieces left. I wouldn't count on too many, if any new jobs out of this. The most likely scenario will be that it will save any jobs they had considered cutting before. Banks are still holding onto their cash pretty tight and cutting heads.

[triadguy37]

According to articles I've read on the deal, BB&T is buying only the deposits and some branches of Colonial. The loans and remaining assets will remain with the FDIC to auction off. So basically, they are just purchasing the few good pieces left. I wouldn't count on too many, if any new jobs out of this. The most likely scenario will be that it will save any jobs they had considered cutting before. Banks are still holding onto their cash pretty tight and cutting heads.

[The Voice of Reason]

I secretly hate you guys for this business coup.

I have read a dozen or more articles on this including everything on the FDIC site. BB&T made a great move picking this company up. they got something like 22 billion in assets and only paid...... 500 million for it. absolutely nuts!

this includes massive loan loss guarantees from the FDIC.

this is pretty much as safe of a pick up as you can get in banking and pretty mcuh as good of a pick up as BB&T culd hope for.

The best part is that it only expands the banking territory slightly and will come with conciderable cost savings once integration is complete

cheers!