BB&T has received regulatory approval for its acquisition of Bank of Kentucky Financial, with the Federal Reserve providing a blueprint for approvals of future deals.
The Federal Deposit Insurance Corp., the Fed and state regulators approved the Winston-Salem, N.C., banks purchase of Bank of Kentucky for $363 million in cash and stock, BB&T said Wednesday. The companies expect the deal to close June 19.
The Fed's order approving the deal, which was announced in September, showed that Bank of Kentucky's small size helped pave the way for the regulatory green-light. The Crestview Hills, Ky., company has $1.9 billion in assets.
"The Board generally presumes that a proposal that involves an acquisition of less than $2 billion in assets will not pose significant risks to the financial stability of the United States absent evidence that the transaction would result in a significant increase in interconnectedness, complexity, cross-border activities, or other risk factors," the Fed said in its order.
After the Bank of Kentucky deal closes, BB&T will have about $191 billion in assets. BB&T is still waiting on approval for a much-larger acquisition, its deal to purchase $19 billion-asset Susquehanna Bancshares in Lititz, Pa.