Many banks succeed in acquiring other banks and produce higher profits by slashing costs. Far fewer have been able to spur revenues through a merger.
Two of these unusually successful acquirers announced deals on Wednesday. In California, Greater Bay Bancorp said it would buy Coast Bancorp in a deal valued at about $125 million in stock, a 6.2% premium to Wednesday's trading price. And Winston-Salem, N.C.-based BB&T Corp. said it would buy First Banking Company of Southeast Georgia for $124.2 million in stock, a 2% discount from what the stock had been selling at before the announcement. First Banking's stock had run up in anticipation of a merger announcement, analysts said. (See related stories on page 1.)