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EXPANDING BB&T TO BUY STRONG DURHAM THRIFT
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EXPANDING BB&T TO BUY STRONG DURHAM THRIFT

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BB&T Financial Corp. is buying yet another healthy savings and loan and, in the process, strengthening its market position in one of the state's major metropolitan areas.

Wilson-based BB&T said Monday it has struck an agreement to acquire Home Savings and Loan Association of Durham through a cash and stock exchange valued at $30 million. Under terms of the agreement, BB&T expects to pay 0.97 percent of Home Savings' book value, or net worth. In contrast, bank acquisitions typically are priced at 1.5 times book value or more.Home Savings is the largest S&L in Durham with assets of $243 million. It has tangible capital of 11.4 percent, nearly 10 times the minimum required by federal regulators.

Home Savings also has 7.2 percent of all deposits in Durham County. BB&T has two offices in Durham with 1.3 percent of deposits. Deposits often are used as a measure of a financial institution's market share.

For BB&T, Home Federal is the fourth S&L acquisition it has announced in the past year. It also has merger agreements with Gate City Federal S&L in Greensboro, First Federal of the Carolinas in High Point and First Federal Savings Bank of Pitt County in Greenville.

The acquisitions are part of BB&T's strategy to expand its market share in the state's three major metropolitan areas: Raleigh-Durham, the Triad and Charlotte. BB&T traditionally has been perceived as an Eastern North Carolina bank.

Home Savings has been for sale for more than a year. It originally had a merger agreement with High Point-based Old Stone Bank of North Carolina, but that was canceled after Old Stone's parent company in Providence, R.I., decided to sell off its North Carolina subsidiary.

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