BB&T, the nation’s ninth-largest bank based on deposits, said on Monday that it would acquire the Bank of Kentucky for $363 million in cash and stock.
The Bank of Kentucky, with headquarters in Crestview Hills, Ky., has $1.9 billion in assets, $1.6 billion in deposits and 32 branches in northern Kentucky and Cincinnati. For BB&T, based in Winston-Salem, N.C., the acquisition is its biggest since it bought insurance businesses from the Crump Group for $570 million in 2012, according to Standard & Poor’s Capital IQ.
Under the terms of the deal, Bank of Kentucky shareholders will receive 1.0126 shares of BB&T common stock and $9.40 for every share, or $47.35 based on Friday’s closing stock price – a premium of more than 30 percent to Bank of Kentucky’s closing stock price on Friday. Shares of Bank of Kentucky surged more than 28 percent in early trading on Monday.
Deutsche Bank and the law firm Wachtell, Lipton, Rosen & Katz advised BB&T. The Bank of Kentucky was advised by Keefe, Bruyette & Woods and the law firm Squire Patton Boggs.