UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
August 17, 2015
Date of Report (date of earliest event reported)
BB&T Corporation
(Exact name of registrant as specified in its charter)
Commission
file number: 1-10853
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North Carolina |
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56-0939887 |
(State of incorporation) |
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(I.R.S. Employer
Identification No.) |
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200 West Second Street
Winston-Salem, North Carolina |
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27101 |
(Address of principal executive offices) |
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(Zip Code) |
(336) 733-2000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
On August 17, 2015, BB&T Corporation
(BB&T) issued a press release announcing the signing of a definitive merger agreement providing for BB&T to acquire National Penn Bancshares, Inc. (National Penn) for consideration consisting of BB&T
stock and cash. A copy of the press release issued by BB&T announcing the transaction is attached hereto as Exhibit 99.1.
In
addition, BB&T intends to provide supplemental information regarding the proposed transaction in connection with presentations to analysts and investors. A copy of the slides that will be made available in connection with the presentations is
attached hereto as Exhibit 99.2.
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Forward-Looking Statements
This
communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving National Penns and BB&Ts expectations or predictions of future financial or business performance or
conditions. Forward-looking statements are typically identified by words such as believe, expect, anticipate, intend, target, estimate, continue,
positions, prospects or potential, by future conditional verbs such as will, would, should, could or may, or by variations of such words or by similar
expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and we assume no duty to update forward-looking
statements. Actual results may differ materially from current projections.
In addition to factors previously disclosed in National
Penns and BB&Ts reports filed with the U.S. Securities and Exchange Commission (the SEC) and those identified elsewhere in this document, the following factors among others, could cause actual results to differ materially
from forward-looking statements or historical performance: ability to obtain regulatory approvals and meet other closing conditions to the merger, including approval by National Penn shareholders; delay in closing the merger; difficulties and delays
in integrating the National Penn business or fully realizing cost savings and other benefits; business disruption following the merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in
interest rates and capital markets; inflation; customer acceptance of BB&T products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of
business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact,
extent and timing of technological changes, capital management activities, and other actions of the Federal Reserve Board and other legislative and regulatory actions and reforms.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual
results.
Important Additional Information and Where to Find It
In connection with the proposed merger, BB&T will file with the SEC a Registration Statement on Form S-4 that will include a Proxy
Statement of National Penn and a Prospectus of BB&T, as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. SHAREHOLDERS OF NATIONAL PENN ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the Proxy
Statement/Prospectus, as well as other filings containing information about BB&T and National Penn, may be obtained at the SECs Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from
BB&T at www.bbt.com under the heading About BB&T and then under the heading Investor Relations and then under BB&T Corporations SEC Filings or from National Penn at www.nationalpennbancshares.com
under the heading SEC Filings and then under Documents. Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to BB&T Corporation, 150 South Stratford Road, Suite 300,
Winston-Salem, North Carolina 27104, Attention: Shareholder Services, Telephone: (336) 733-3065 or to National Penn Bancshares, Inc., 645 Hamilton Street, Suite 1100, Allentown, PA 18101, Attention: Shareholder Services, Telephone:
(610) 861-3983.
National Penn and certain of its directors and executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of National Penn in connection with the proposed merger. Information about the directors and executive officers of National Penn and their ownership of National Penn common stock is set forth in the
proxy statement for National Penns 2015 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 18, 2015. Additional information regarding the interests of those participants and other persons who may be deemed
participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
ITEM 9.01. |
Financial Statements and Exhibits. |
(d) Exhibits.
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Exhibit No. |
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Description of Exhibit |
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99.1 |
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Press Release, dated August 17, 2015 |
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99.2 |
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Investor Presentation, dated August 17, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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BB&T CORPORATION |
(Registrant) |
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By: |
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/s/ Daryl N. Bible |
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Name: |
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Daryl N. Bible |
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Title: |
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Senior Executive Vice President and Chief Financial Officer |
Date: August 17, 2015
EXHIBIT INDEX
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Exhibit No. |
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Description of Exhibit |
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99.1 |
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Press Release, dated August 17, 2015 |
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99.2 |
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Investor Presentation, dated August 17, 2015 |
Exhibit 99.1
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BB&T Corporation |
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Corporate Communications 2400
Reynolda Road Winston-Salem, NC 27106-4606 |
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August 17, 2015 |
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FOR IMMEDIATE RELEASE |
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BB&T Contacts: |
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ANALYSTS Alan Greer
Executive Vice President Investor Relations
(336) 733-3021 |
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Tamera Gjesdal
Senior Vice President Investor Relations
(336) 733-3058 |
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MEDIA Cynthia A. Williams
Senior Executive Vice President Corporate
Communications (336) 733-1470 |
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National Penn Contacts: ANALYSTS
Michael J. Hughes Senior Executive Vice President
Chief Financial Officer (484) 709-3305
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BB&T to acquire National Penn Bancshares, Inc.
Strategically compelling, financially attractive transaction
Attractive expansion of Mid-Atlantic footprint
Combined #4
ranking in Pennsylvania
Complements legacy Susquehanna franchise
Strong fit
with BB&Ts culture and community banking model
EPS accretive and strong IRR
WINSTON-SALEM, N.C. and ALLENTOWN, PA. BB&T Corporation (NYSE: BBT) and
National Penn Bancshares, Inc. (NASDAQ: NPBC) announced today the signing of a definitive agreement under which BB&T will acquire National Penn in a cash and stock transaction for total consideration valued at approximately $1.8 billion.
This acquisition will significantly expand BB&Ts footprint in the Mid-Atlantic region and improve its deposit market share to #4 in Pennsylvania. |
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MORE
National Penn, headquartered in Allentown, Pa., has $9.6 billion in assets, $6.7 billion in deposits and 124
banking offices in Pennsylvania, New Jersey and Maryland.
The acquisition of National Penn provides a tremendous opportunity to strengthen our
franchise in Pennsylvania and continue building the scale necessary to operate efficiently and with high quality service, said BB&T Chairman and Chief Executive Officer Kelly S. King. As the fourth largest bank in the state, we will
have a significant presence in these markets. BB&T will have the breadth of market coverage combined with excellent client service levels that will allow us to grow our client base.
National Penn is an attractive, well run company with strong management. National Penns culture, commitment to its communities and business model
are a strong fit with BB&Ts, King said. We are extremely excited to welcome our new clients and associates to BB&T. National Penns strong reputation in these markets presents great opportunities for BB&T to
leverage our proven community banking capabilities.
I am very proud of the strong and consistent financial performance delivered by the team
members of National Penn, said National Penn President and Chief Executive Officer Scott V. Fainor. We believe partnering with a high-quality company such as BB&T will continue to benefit our shareholders, employees, customers and
communities.
Fainor will be named group executive, with responsibility to oversee multiple community banking regions with deposits in excess of $30
billion in Pennsylvania and contiguous states. In addition, BB&T plans to establish a fourth community banking region for eastern Pennsylvania, headquartered in Allentown, and will name David B. Kennedy, National Penns chief banking
officer, as the president of the region.
BB&Ts focus on culture, associates, clients and communities has and will continue to be a critical
part of all acquisitions. BB&T plans to continue National Penns tradition of commitment to its communities by creating a $5 million fund to support ongoing economic development in the greater Lehigh Valley and Berks County communities.
Under the terms of the agreement, which was approved by the board of directors of each company, merger consideration will be approximately $1.8 billion
consisting of 70 percent BB&T common stock and 30 percent cash. National Penn stockholders can elect to receive 0.3206 of a share of BB&T common stock or $13.00 in cash for each share of National Penn common stock, subject to proration such
that total consideration will consist of approximately $550 million in cash and approximately 31.6 million BB&T common shares. The merger consideration is valued at $13.00 per share based on the average closing price of BB&T over the 20
trading days ending on August 17, 2015.
BB&T expects to incur pre-tax merger and integration costs of approximately $100 million and expects to
achieve annual cost savings of approximately $65 million (approximately 30 percent of National Penns non-interest expenses). BB&T expects this acquisition to be accretive to earnings per share in the first full year excluding one-time
charges and expects the transaction to exceed its IRR hurdle.
MORE
This acquisition is subject to customary closing conditions including regulatory approvals and approval by
National Penn shareholders. The transaction is expected to close in mid-2016.
Deutsche Bank Securities Inc. served as financial advisor to BB&T.
OMelveny & Myers LLP served as legal counsel to BB&T in this transaction.
Sandler ONeill & Partners, L.P. served as
financial advisor to National Penn. Wachtell, Lipton, Rosen & Katz served as legal counsel to National Penn in this transaction.
BB&T has
posted a presentation to its website discussing the transaction. To access the presentation, go to BBT.com.
Conference Call Info
BB&T will host a conference call for investors at 8 a.m. ET on Aug. 18, 2015, to discuss the transaction. You may participate in the conference by dialing
877-604-9668 and entering the participant code 1695712. A presentation will be used during the conference call and is available on our website at BBT.com. Replays of the conference call will be available for 30 days by dialing 888-203-1112 (access
code 1695712).
About BB&T
BB&T is one of
the largest financial services holding companies in the U.S. with approximately $210 billion in assets and market capitalization of approximately $31.4 billion, as of August 14, 2015. Based in Winston-Salem, N.C., the company operates 2,149
financial centers in 15 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently
recognized for outstanding client satisfaction by the U.S. Small Business Administration, Greenwich Associates and others. BB&T has also been named one of the Worlds Strongest Banks by Bloomberg Markets Magazine, one of the top three in
the U.S. and in the top 15 globally. More information about BB&T and its full line of products and services is available at BBT.com.
MORE
About National Penn
National Penn Bancshares, Inc., with approximately $9.6 billion in assets, is a bank holding company headquartered in Allentown, Pa. National Penn Bank
operates 124 branch offices throughout Pennsylvania, New Jersey and Maryland.
National Penns financial services affiliates are National Penn Wealth
Management, NA, including its National Penn Investors Trust Company division; Institutional Advisors LLC; and National Penn Insurance Services Group, Inc.
National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock Market under the symbol NPBC. Please visit National Penns web site
at NationalPennBancshares.com to see National Penns regularly posted material information.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving National Penns
and BB&Ts expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as believe, expect, anticipate,
intend, target, estimate, continue, positions, prospects or potential, by future conditional verbs such as will, would, should,
could or may, or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak
only as of the date they are made and we assume no duty to update forward-looking statements. Actual results may differ materially from current projections.
In addition to factors previously disclosed in National Penns and BB&Ts reports filed with the U.S. Securities and Exchange Commission (the
SEC) and those identified elsewhere in this document, the following factors among others, could cause actual results to differ materially from forward-looking statements or historical performance: ability to obtain regulatory approvals
and meet other closing conditions to the merger, including approval by National Penn shareholders; delay in closing the merger; difficulties and delays in integrating the National Penn business or fully realizing cost savings and other benefits;
business disruption following the merger; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of BB&T products and
services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; the inability to realize cost savings or
revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and other
actions of the Federal Reserve Board and other legislative and regulatory actions and reforms.
Annualized, pro forma, projected and estimated numbers are
used for illustrative purpose only, are not forecasts and may not reflect actual results.
Important Additional Information and Where to Find It
In connection with the proposed merger, BB&T will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of National
Penn and a Prospectus of BB&T, as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote
or approval. SHAREHOLDERS OF NATIONAL PENN ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS
OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the Proxy Statement/Prospectus, as well as other
filings containing information about BB&T and National Penn, may be obtained at the SECs Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from BB&T at www.bbt.com under the heading
About BB&T and then under the heading Investor Relations and then under BB&T Corporations SEC Filings or from National Penn at www.nationalpennbancshares.com under the heading SEC Filings
and then under Documents. Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to BB&T Corporation, 150 South Stratford Road, Suite 300, Winston-Salem, North Carolina 27104, Attention:
Shareholder Services, Telephone: (336) 733-3065 or to National Penn Bancshares, Inc., 645 Hamilton Street, Suite 1100, Allentown, PA 18101, Attention: Shareholder Services, Telephone: (610) 861-3983.
National Penn and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of
National Penn in connection with the proposed merger. Information about the directors and executive officers of National Penn and their ownership of National Penn common stock is set forth in the proxy statement for National Penns 2015 annual
meeting of shareholders, as filed with the SEC on Schedule 14A on March 18, 2015. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by
reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.
###
1
Forward-Looking Statements
Important Additional Information and Where to Find It
This communication contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 giving National Penns and BB&Ts expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by
words such as believe, expect,
anticipate, intend, target, estimate, continue, positions, prospects or potential, by future conditional verbs such as will,
would, should, could or may, or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements
speak only as of the date they are made and we assume no duty to update forward-looking statements. Actual results may differ materially from current projections. In addition to factors previously disclosed in National Penns and BB&Ts reports filed with the U.S. Securities and Exchange
Commission (the SEC) and those identified elsewhere in this document, the following factors among others, could cause actual results to differ materially from forward-looking
statements or historical performance: ability to obtain regulatory
approvals and meet other closing conditions to the merger, including approval by National Penn shareholders; delay in closing the merger; difficulties and delays in integrating the National Penn business or fully realizing cost savings and other benefits; business disruption following the merger;
changes in asset quality and credit risk; the inability to sustain
revenue and earnings growth; changes in interest rates and capital markets; inflation; customer acceptance of BB&T products and services; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of
business initiatives; competitive conditions; the inability to
realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions and divestitures; economic conditions; and the impact, extent and timing of technological changes, capital management activities, and other actions
of the Federal Reserve Board and other legislative and regulatory
actions and reforms.
Annualized, pro forma, projected and estimated numbers are used for illustrative
purpose only, are not forecasts and may not reflect actual results.
In connection with the proposed merger, BB&T will file with the SEC a
Registration Statement on Form S-4 that will include a Proxy Statement of National Penn and a Prospectus of BB&T, as well as other relevant documents concerning the proposed transaction. This communication does not constitute an offer
to sell or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval. SHAREHOLDERS OF NATIONAL PENN ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE
DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about BB&T and National Penn, may be obtained
at the SECs Internet site
(http://www.sec.gov). You will also be able to obtain these documents, free of charge,
from BB&T at www.bbt.com under the heading About BB&T and then under the heading Investor Relations and then under BB&T Corporations SEC Filings or from National Penn at
www.nationalpennbancshares.com under the heading SEC
Filings and then under Documents. Copies of the Proxy
Statement/Prospectus can also be obtained, free of charge, by directing a request to BB&T Corporation, 150 South Stratford Road, Suite 300, Winston-Salem, North Carolina 27104, Attention: Shareholder Services, Telephone: (336) 733-3065 or to
National Penn Bancshares, Inc., 645 Hamilton Street, Suite 1100,
Allentown, PA 18101, Attention: Shareholder Services, Telephone: (610) 861-3983. National Penn and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the
shareholders of National Penn in connection with the proposed
merger. Information about the directors and executive officers of National Penn and their ownership of National Penn common stock is set forth in the proxy statement for National Penns 2015 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 18,
2015. Additional information regarding the interests of those
participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the
preceding paragraph.
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Strategic and Compelling Acquisition of National Penn
Note: Financial data at or for the six months ended June 30, 2015. Loan and deposit composition based on regulatory filings.
National Penn Financial Highlights
Loan Composition Deposit Composition Total: $6,168MM Yield on Total Loans: 3.87% Total: $6,733MM Cost of Total Deposits: 0.27% Strategically compelling Significant expansion in Mid-Atlantic Region #4 pro forma market share in Pennsylvania Highly synergistic with recently closed Susquehanna acquisition Consistent with BB&Ts acquisition criteria Financially attractive Approximately $1.8 billion aggregate deal value EPS accretive and exceeds IRR hurdle Compelling use of capital Partial reallocation of approved 2015 CCAR share buyback Significant expansion of attractive Mid-Atlantic footprint Eastern PA and the Philadelphia MSA BB&T well prepared to successfully execute on this acquisition Extensive due diligence process and planning Successful integration of recent acquisitions is well underway including cultural integration Compatible culture with BB&T Client oriented community bank model Experienced management team with deep knowledge of its Pennsylvania markets Assets ($MM) $9,604 Loans ($MM) 6,168 Deposits ($MM) 6,733 Common Equity ($MM) 1,138 YTD ROAA 1.1% YTD ROAE 9.5 YTD ROATE 13.3 TCE / TA 8.9 Common Equity Tier 1 Ratio 12.1 CRE 28% 1-4 Family 22% C&I 14% HELOC 12% Farm & Agriculture 9% Consumer 4% Multifamily 4% Construction 3% Other 3% Transaction / MMDA / Savings 82% Retail Time 13% Jumbo Time 5% 3 |
Key
Transaction Terms Purchase Price
$1.8 billion aggregate consideration
$13.00 per National Penn common share
(1) Price / 2016E Street EPS: 16.0x Price / TBV: 2.2x Consideration 70% stock / 30% cash in aggregate National Penn stockholders can elect to receive 0.3206 of a share of BB&T common stock or $13.00 in cash Subject to proration such that total consideration will be approximately $550 million in cash and approximately 31.6 million BB&T common shares (1) Tax free transaction for stock component Cost Savings Approximately $65 million pre-tax (fully phased-in) Approximately 30% of National Penns non-interest expense Merger & Integration Costs Approximately $100 million (pre-tax) Credit Mark 3.0% of loans and leases Expected Closing Mid-2016 Closing Conditions National Penn shareholder approval Other customary closing conditions including regulatory approval (1): Based on BB&Ts average closing stock price for the trailing 20 trading days through August 17, 2015.
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Note: Branches, deposits and deposit market share exclude branches with deposit balances greater than $1 billion.
Source: SNL Financial. BB&T branch data as of June 30, 2014; National Penn branch data as of June 30, 2015. Deposit data as of June 30, 2014. Branch and deposit data pro forma for announced BB&T National Penn Significant Penetration in Attractive Mid-Atlantic Region Deposits ($MM) Market Rank Market Share National Penn's Top 10 Counties National Penn BB&T Combined National Penn BB&T Combined National Penn BB&T Combined Berks, PA $1,337 $380 $1,717 2 8 1 18.7% 5.3% 24.0% Northampton, PA 1,042 85 1,126 2 13 2 18.4 1.5 19.9 Chester, PA 831 780 1,612 5 6 2 7.3 6.9 14.2 Lehigh, PA 701 161 862 2 13 2 10.9 2.5 13.4 Bucks, PA 618 173 792 8 19 6 3.9 1.1 5.0 Montgomery, PA 519 994 1,513 12 8 5 2.1 4.0 6.1 Philadelphia, PA 348 122 470 15 22 13 1.7 0.6 2.3 Luzerne, PA 329 152 481 6 11 4 5.6 2.6 8.3 Lancaster, PA 312 2,669 2,981 7 1 1 3.0 25.8 28.8 Centre, PA 310 85 396 3 9 3 11.9 3.3 15.1 Top 10 Counties Total $6,348 $5,600 $11,949 Other Counties 511 150,351 150,862 Total $6,860 $155,952 $162,811 Top 15 Banks in Pennsylvania Deposit Deposits Market Rank Institution Branches ($MM) Share 1. PNC 446 $35,394 14.4% 2. Wells Fargo 280 24,339 9.9 3. Citizens Financial 359 21,673 8.8 BB&T Pro Forma 294 15,715 6.4 4. Toronto-Dominion 97 12,042 4.9 5. M&T Bank 258 11,518 4.7 6. F.N.B. Corporation 196 10,689 4.3 7. BB&T 178 9,106 3.7 8. Fulton Financial 127 7,747 3.1 9. National Penn 116 6,609 2.7 10. Banco Santander 157 6,198 2.5 11. First Niagara 124 5,743 2.3 12. Northwest Bancshares 136 5,003 2.0 13. S&T Bancorp 63 4,617 1.9 14. First Commonwealth 107 4,476 1.8 15. Dollar Bank 37 3,656 1.5 Williamsport Washington D.C. Hagerstown Baltimore Philadelphia Reading Harrisburg Camden Lancaster Ocean City Allentown 5 M&A through August 17, 2015. BB&T pro forma for the acquisition of Susquehanna. |
6 National Penns Revenue Composition National Penns Revenue Profile Source: SNL Financial, Company filings. For the Six Months Ended June 30, 2015. Net Interest Income 74% Wealth Management 7% Cash Management and Electronic Banking Fees 5% Services Charges on Deposits 4% Insurance Commissions and fees 3% Other 3% Mortgage Banking 2% BOLI 2% Complementary business model which fits well with BB&Ts community banking model Several non-bank businesses that will contribute to BB&Ts continuing focus on revenue diversification National Penn Bank Commercial and consumer banking $9.6 billion of assets as of 6/30/15 Operates a regional community banking model National Penn Wealth Management Investment management and fiduciary services for individuals, corporations, government entities and non- profit institutions $2.6 billion AUM as of 6/30/15 Also offers private banking services for high net worth individuals National Penn Insurance Services Group ~11,000 customers Top 20 bank-owned insurance brokerage firm P&C insurance services for retail and business clients Specialized employee benefits consulting services |
Source: SNL Financial. Branch and deposit data as of June 30, 2014, pro forma for M&A announced through August 17, 2015.
Texas Acquisition of 63 branches ($3.5 billion in deposits) from Citibank 37 de novo branches since 2012 Branch presence has grown from 22 to 121 since our Colonial acquisition Fastest growing market in our franchise 28% increase in average June 30, 2015 YTD loan balance vs. June 30, 2014 YTD Cincinnati Acquisition of The Bank of Kentucky ($1.8 billion in assets) #1 in Northern Kentucky #7 in Cincinnati MSA Exciting opportunity to grow around the broader Cincinnati market Pennsylvania Pennsylvania will be BB&Ts 3 rd largest state presence Philadelphia MSA will be BB&Ts 5 th largest market Complementary franchises enhance market penetration and competitive positioning BB&T Susquehanna The Bank of Kentucky Citibank National Penn Leveraging BB&Ts Proven Practices Across a Broader Platform 7 |
BB&Ts Business Model Thrives Across Markets of Widely
Differing Characteristics
(1): Total estimated population as of January 1, 2015. (2): Number of firms with sales <$50 million as of August 17, 2015. (3): Real Gross Domestic Product as measure on January 1 of each year, adjusted for inflation.
(4): Represents the average annual growth rate from 12/31/09 12/31/13. (5): Preliminary for June 2015. (6): Non-seasonally adjusted. (7): Median household income estimated for the calendar year 2015 as of January 1, 2015.
Note: Branch data as of June 30, 2014, pro forma for announced M&A through August 17, 2015.
Source: SNL Financial, Nielsen, Hoovers, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis.
Winston- Washington, Philadelphia Allentown Lancaster Salem DC Miami Dallas Total Population (MM) (1) 6.1 0.8 0.5 0.7 6.1 5.9 7.0 per Bank Branch 3,440 3,057 2,768 4,046 3,609 3,600 4,070 # of Middle Market and Small Businesses (2) 297,621 38,426 26,338 29,205 335,587 470,763 392,568 per Bank Branch 169 142 136 180 200 286 230 2013 GDP ($BN) (3) $358,091 $32,416 $21,587 $25,382 $437,085 $263,115 $413,627 2013 GDP Growth (3) 0.4% 1.4% 1.8% 0.9% (0.8)% 2.4% 2.1% Avg. Annual GDP Growth '09 - '13 (3)(4) 0.8 1.9 2.5 0.7 1.2 1.5 3.9 Current Unemployment Rate (June '15) (5)(6) 5.6% 5.5% 4.5% 5.9% 4.8% 5.7% 4.0% 2009 Peak Unemployment (6) 8.8 9.1 7.6 10.8 6.3 11.2 8.7 Historical Population Growth '10 - '15 1.61% 0.88% 2.83% 2.31% 7.63% 6.50% 8.18% Projected Population Growth '15 - '20 1.63 0.88 2.39 3.30 6.30 6.37 7.12 Median Household Income (7) $62,072 $58,052 $56,243 $44,432 $92,441 $47,423 $58,865 8 |
Community Banking Model is a Key Driver of BB&Ts Success
BB&Ts approach to community banking has
yielded broad success Collaboration and integration Local, visible leadership Local decision-making Knowing your client Client advocacy: giving voice to the client Partnerships across the bank Seamless perfect client experience Acquisitions are structured to fit with the community banking model Texas operates in two newly established regions The Bank of Kentucky newly established Northern Kentucky / Greater Cincinnati region Susquehanna three newly established regions in Pennsylvania and New Jersey National Penn newly established Eastern Pennsylvania region, headquartered in Allentown Scott V. Fainor, National Penn CEO, to be named Group Executive and will oversee newly created regions throughout Pennsylvania and contiguous states One newly established region from National Penn and three newly established regions from Susquehanna 9 |
10 BB&Ts Culture is Non-negotiable To Create the Best Financial Institution Possible Be The Best of the Best! Helping our CLIENTS achieve economic success and financial security Creating a place where our ASSOCIATES can learn, grow and be fulfilled in their work Making the COMMUNITIES in which we work better places to be, and thereby Optimizing the long-term return to our SHAREHOLDERS, while
providing a safe and sound investment.
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BB&T is Continually Recognized as an Industry Leader
BB&T Ranked First for Overall Customer Experience Among U.S. Retail Banking
Websites for the Third Straight Year, Placing First in all Four Customer
Experience Categories.
BB&T was named the 2015 TNS Choice Awards winner for Commercial Banking. This
national award names BB&T as the preferred provider for acquiring,
developing, and retaining customers. 2015 Worlds Strongest Banks:
BB&T ranks in the top 3 in the U.S. and in the top 15 globally by Bloomberg Greenwich Associates recognized
BB&T as a Best Brand award recipient for 2014. BB&T was
one of more than 750 banks evaluated by clients and non-clients in
their Brand Study. BB&T Retirement and Institutional Services received a
top ranking and 33 Best-in-Class awards in the national 2014
Defined Contribution Survey, conducted by PLANSPONSOR magazine
Training Magazine has ranked us #1 among banks in their Top 125 list.
BB&T ranked 18th overall among all companies.
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Summary
Observations National Penn is an attractive opportunity to broaden
BB&Ts Mid- Atlantic region
Exciting build-out of BB&Ts newer Mid-Atlantic markets
Solidifies investment in new markets by creating top 4 market share in
Pennsylvania Compatible culture will help integrate National Penn markets within BB&Ts community banking model Compelling combination with legacy Susquehanna franchise Value accretive to shareholders Consistent with BB&Ts acquisition criteria Community banking model continues to be a key driver of BB&Ts success Culture has and will continue to be a critical part of all acquisitions Consistency around BB&Ts vision, values and mission is non-negotiable
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