By Glenn Tschimpke
Staff Writer
Another North Carolina bank has taken over a Jacksonville operation.
This time, it’s BB&T of Winston-Salem, who will soon finish the deal to acquire First South Bank. In recent years, First Union took over the Florida National Bank and Bank of America gobbled up Barnett.
Bigger will be better, say officials involved in the new bank merger. First South Bank customers will soon see expanded services and a name change as the acquisition moves closer to reality.
BB&T officials announced in May that it would purchase First South’s holding company, First Financial Corporation of Tallahassee, in a $274.6 million stock deal. Pending last minute details, the deal should close next month with First South branches and systems converted to BB&T in November.
First South Senior Executive Vice President Wyndham Manning said the merger will open new banking and business opportunities for current and future customers.
“Right now, we’re a thrift savings and loan,” said Manning. “We offer mortgages and deposit services. We will soon offer everything from car loans to personal loans to insurance —all sorts of things.”
BB&T — it’s full name is Branch Banking & Trust Company —is a full-service financial institution offering small business, commercial and consumer lending opportunities. It also provides international banking, personal and corporate insurance packages, retail brokerage, investment banking and treasury services as well as additional mortgage services like home equity lines of credit.
BB&T’s acquisition of First South marks its first foray into Florida.
Currently the nation’s 14th largest financial institution with over 1,100 banking offices in 10 states, primarily in the Southeast, BB&T has displayed an aggressive expansion posture in the last decade.
Since 1989, it has acquired 54 banks and thrifts, 64 insurance companies and 21 financial service companies.
BB&T officials would not comment on future Florida business ventures.
“The goal is to fill in the gaps so wherever we are, we can provide a full line of services,” said spokesperson A.C. McGraw. “It’s definitely our goal to become among the top five in the market share wherever we are.”
Not all of BB&T’s new services will be available initially at all former First South locations but McGraw could not give a detailed list of what services would be available when and where but assured that all services would come on line in time.
Locally, First South customers shouldn’t notice many negative changes at branch offices. Currently, First South operates six branches in Northeast Florida from Fernandina Beach to St. Augustine. Besides the name change, expanded services and internal changes, McGraw assured the branches would not be adversely
affected.
“Very, very typically in a merger situation, the branch offices are left completely intact,” she said. “We need them to man the ship. Customers are used to dealing with the same employees so we want to leave that aspect alone.”
Manning confirmed that, noting that layoffs at the branch level are not expected to happen and branch closings are nowhere in sight.
“Because BB&T is not in Florida, we don’t have to worry about branches closing,” he said. “We do have some back room functions that will be duplicated. Most of those people with duplicate jobs will be given the opportunity to move elsewhere within the company if they choose to stay.”
Manning said about 44 First South employees statewide would be directly affected by the merger.
Future branch expansion locally is unknown, but Manning speculated there could be four to five new locations within the next few years and pointed to Orange Park and Mandarin specifically as potential sites.
BB&T dates back to 1872 when its first location opened in eastern North Carolina. Currently headquartered in Winston-Salem, it is a fast-growing financial institution with over $76 billion in assets.
First South is among the top three mortgage loan companies in Florida.
In 2001, it closed over $1.4 billion in residential loans. As of July, 2002, it had over $1.45 billion in assets. In 1995, First South was acquired by Regional Financial Corporation, a privately held partnership. For the merger, BB&T will issue 7.265 million shares of its stock at $37.80 a share to Regional Financial Corporations shareholders.
It is led by John Allison IV, a North Carolina native who has been chairman and CEO since 1989.