BB&T's Virginia Bank Deal Includes $8M Agency
Reich-Hale, David, Gjertsen, Lee Ann, American Banker
BB&T Corp.'s plan to buy First Virginia Banks Inc. would add a $7.7 million-revenue insurance agency to its already extensive insurance operation.
Winston-Salem, N.C.-based BB&T said on Tuesday that it intends to buy $11.2 billion-asset First Virginia of Falls Church -- its largest deal to date.
Wade Reece, the president of Raleigh, N.C.-based BB&T Insurance Services, called the deal "an exciting announcement" but said his unit had not yet decided how it would incorporate the insurance operation of First Virginia.
"We're just learning about the acquisition ourselves," he said. "We're really just beginning to formulate a strategy as to how to partner with the insurance operations at First Virginia."
BB&T Insurance Services brought in $219.4 million of revenue in 2001, and the unit continued to add agencies and expand its business throughout 2002. Most recently, BB&T bought Cranman & Co. of Savannah, Ga., on Jan. 2. It also bought Landrum-Yaeger & Associates Inc. of Tallahassee, Fla., and Carolina Insurance Consultants Inc. of Greenville, S.C., on Nov. 1.
First Virginia Insurance Services sells insurance through 10 branch offices in Maryland and Virginia. BB&T has 19 agencies in Virginia and three in Maryland among the 75 it operates in the Southeast and Middle Atlantic states. …