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BB&T Corporation to buy The Bank of Kentucky

Staff writer |
BB&T Corporation (BBT) and The Bank of Kentucky Financial Corporation signed a definitive agreement under which BB&T will acquire The Bank of Kentucky in a cash and stock transaction for total consideration valued at approximately $363 million.

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This acquisition will establish a presence for BB&T in the Northern Kentucky / Cincinnati market.

The Bank of Kentucky, headquartered in Crestview Hills, Ky., has $1.9 billion in assets, $1.6 billion in deposits and 32 banking offices in Northern Kentucky and Cincinnati.

In connection with the acquisition, BB&T announced the creation of a new banking region encompassing Northern 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.

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.

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