SOLD: Bank of Kentucky Acquired by BB&T for $363 Million
The homegrown Bank of Kentucky has been acquired by a large banking firm out of North Carolina.
BB&T announced Monday morning that it acquired Bank of Kentucky for $363 million in a cash and stock deal.
"We are extremely excited to welcome our new clients and associates in these vibrant markets to BB&T. The Bank of Kentucky's dedication to community investment and disciplined approach to business are a perfect fit with BB&T's culture," said Chairman and Chief Executive Officer Kelly S. King.
"We look forward to joining the BB&T team," said Robert W. Zapp, The Bank of Kentucky's President and Chief Executive Officer. "BB&T's expanded product offerings and resources will enable us to better serve our customers, employees and communities."
In connection with the acquisition, BB&T announced the creation of a new banking region encompassingNorthern Kentucky and Cincinnati. BB&T operates its community banking client service model through banking regions, which are not legal entities, but drive faster, simpler, more effective client service.
"We are very pleased to announce that Regional President Andrew Hawking and Retail and Small Business Banking Manager Mark Exterkamp will lead our new region in this important growth market," said King. "Both are banking veterans with The Bank of Kentucky and are very respected in the community. We also are pleased that Robert Zapp, The Bank of Kentucky's President and Chief Executive Officer, will be the chairman of BB&T's local advisory board.
"We are developing exciting plans for additional banking center locations in the Greater Cincinnati area. Establishing this new banking region with such strong leadership is an important first step," said King.
Under the terms of the agreement, which was approved by the Board of Directors of each company, shareholders of The Bank of Kentucky will receive 1.0126 shares of BB&T common stock and $9.40 of cash for each share of The Bank of Kentucky common stock. Based on BB&T's 14-day average closing price of$37.13 as of September 4, 2014, shareholders of The Bank of Kentucky will receive $47.00 per share.
BB&T expects this acquisition to be accretive to earnings per share in the first full year and to exceed its IRR hurdle.
The transaction is subject to customary closing conditions including regulatory approvals and approval of The Bank of Kentucky shareholders.
The Bank of Kentucky, headquartered in Crestview Hills, has $1.9 billion in assets, $1.6 billion in deposits and 32 banking offices in Northern Kentucky and Cincinnati. The acquisition gives BB&T its first presence in the Northern Kentucky and Cincinnati market.
Photo: Bank of Kentucky branch from the company