Citi to Sell Remaining Texas Branches to BB&T
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Citigroup has agreed to sell its remaining 41 branches in Texas to BB&T, in an ongoing effort to trim its branch network.
The $188 billion-asset BB&T will pay a 5.3% deposit premium, or approximately $122 million, for the branches, which are located in Dallas, Houston and the Midland-Odessa area.
The deal includes $2.3 billion in deposits and $87 million in loans. It is expected to close in the first quarter.
The acquisition also continues BB&T's expansion in Texas. The bank in June bought 21 Citi branches in Austin, San Antonio and the Bryan-College Station area. When the new deal closes, BB&T will have 123 branches in Texas.
Citi said that its branch network in Texas "did not provide the scale to capture future growth and market share in traditional retail banking," and that it intends to focus instead on major urban markets elsewhere and digital banking. It plans to continue its corporate and investment banking, credit card, mortgage and other business in Texas.
The deals reflect a continuing effort by big banks to shed their retail branches. Bank of America, for instance, has sold hundreds of branches in recent years, particularly in North Carolina, South Carolina and Virginia.
BB&T operates more than 1,800 branches in 12 southern and eastern states, as well as the District of Columbia. Citi will have about 800 branches in the U.S. after the deal announced Wednesday closes.