North Carolina Banking Companies Expand Presence in Virginia through Acquisitions

Strategic Insights -

Two North Carolina-based banking companies, Centura Banks Inc. and BB&T Corp., have expanded their presence in Virginia through separate acquisitions of financial institutions. Centura completed its merger with First Coastal Bankshares Inc. of Virginia Beach in an exchange of stock worth $114 million, while BB&T acquired the parent of investment banking and brokerage firm Scott & Stringfellow for $142 million of BB&T common stock. The acquisitions further consolidation of financial-service providers in the region and the expansion of North Carolina-based banking companies into Virginia.

Key Takeaways:

  • Centura acquired First Coastal Bankshares Inc. of Virginia Beach in an exchange of stock worth $114 million, expanding its presence in Hampton Roads and adding almost $400 million of deposits, $440 million of loans, and 40,000 accounts.
  • BB&T acquired the parent of investment banking and brokerage firm Scott & Stringfellow for $142 million of BB&T common stock, expanding its operations in Virginia, the Carolinas, and West Virginia.
  • The acquisitions have resulted in 75 job losses at First Coastal, while Centura has assigned a team of about 50 employees from North Carolina to work in Hampton Roads temporarily to help with the transition.
  • Scot & Stringfellow will continue to operate separately from BB&T and has not been affected by the acquisition, with plans to expand into new markets in North Carolina and Virginia.
  • Centura has established a foothold in Hampton Roads by installing branches in Hannaford supermarkets two years ago and has expanded its branch network from 8 to 26 with the acquisition of First Coastal.
  • BB&T has assets of $37 billion and 581 offices in the Carolinas, Virginia, Washington, D.C., and Maryland, while Centura had assets of $8.24 billion and slightly more than 200 branches in the Carolinas and Virginia at the end of 1998.

Statistics:

  • $400 million: the deposits acquired by Centura through the merger with First Coastal
  • $440 million: the loans acquired by Centura through the merger with First Coastal
  • 40,000: the number of accounts acquired by Centura through the merger with First Coastal
  • $114 million: the value of the exchange of stock for the acquisition of First Coastal Bankshares Inc. by Centura
  • $142 million: the value of the acquisition of the parent of investment banking and brokerage firm Scott & Stringfellow by BB&T
  • $8.24 billion: the assets of Centura at the end of 1998
  • 581: the number of offices operated by BB&T in the Carolinas, Virginia, Washington, D.C., and Maryland
  • 75: the number of job losses at First Coastal as a result of the merger
  • 50: the number of employees from North Carolina assigned to work in Hampton Roads temporarily to help with the transition

Sources:

  • "Banking Companies Expand Presence in Virginia," The Richmond Times-Dispatch
  • "Centura, First Coastal Complete Merger," The Virginian-Pilot
  • "BB&T Acquires Scott & Stringfellow," The Roanoke Times