) announced the closure of a few of its branches along with
layoffs. These initiatives are a part of the company's reorganizing
efforts following its acquisition of the wholly owned bank
BankAtlantic Bancorp, Inc
) on July 31, 2012.
The banking behemoth is about to close down and combine almost 21
of its branches in South Florida. Out of these, 14 are located in
Miami-Dade and Broward counties, and the rest are located in Palm
Beach County and the Treasure Coast.
The acquisition of BankAtlantic resulted in inclusion of certain
branches that were situated in the same vicinity as BB&T's.
This compelled BB&T to consolidate the additional branches by
assessing their feasibility, convenience and overall condition.
Barely a week earlier, BB&T declared its plan to retrench
nearly 365 employees between October 1, 2012 and February 1, 2013.
Most of these employees will be axed from back-office and
administrative positions at the BankAtlantic headquarters.
Following the takeover, all the work at the BankAtlantic
headquarters will be carried out by the BB&T headquarters.
However, the employees who deal with the customers directly will be
retained and those who worked in the ceased branches will be
transferred to the other branches. The 650 employees of
BankAtlantic, who were not retrenched during the takeover, are
still not in the danger zone.
The BankAtlantic deal has catapulted BB&T into the list of the
top 20 banking giants. Under the terms of the deal, BB&T
acquired $2.1 billion in loans and roughly $3.3 billion in
This transaction has allowed the company to fast track its
expansion strategy in the coveted Florida region. In addition to
substantially increasing the company's market share and footprints,
the acquisition would improve its top line over the medium term.
BB&T CORP (BBT): Free Stock Analysis Report
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BB&T currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. Considering the fundamentals, we also
maintain a long-term Neutral recommendation on the shares.