Republic, BB&T assessing acquisition prospects in Bay area - Houston Business Journal:

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Inc. and both are in the hunt for bank prospectss that will contribute totheir growth. Republic, with $3.1 billioj in assets and an increasingstock price, entered the Florida markety two years ago when it acquired in Port Richeuy and proceeded to open branches, including one slated to open in week in Temple Terrace. “We’d like very much to grow in the Pinellaa andHillsborough markets,’ said Doug Winton, Republic’s Floridza market president. “They are more diversre markets. Further away, outside Pinellas and Hillsborough, ther e are less diverse markets that are more heavilyt tied toreal estate.
” The Pinellas and Hillsborough marketsa are attractive to Republic because the two countiesa have a wide variety of businesx segments, including manufacturing, distribution and international Republic is focused on growinf its presence by partnering with banks that fit well. “We’re not limiting ourselves to any particulad angle in termsof acquisition,” Winton said. “Financially, we’red very strong, and we bring that to the The company would be a good partnef for a bank with asset quality issues or one that is perhapsz running lowon capital, he said, noting that “ a number” of banks fit that profile.
Among the opportunitie Republic would look at isa well-capitalizes bank that has fallen on tough timews and may be having difficulty raising additional capital. The companyg has the resources to add severa l banksa year, he said. Republicv is not averse to acquiring a healthy butnow “is not a good time for a healthy bank to Winton said. “Our model is simpls and very different,” he said. “We find good bankers, give them a brancgh or have them tell us wheree oneshould be. We look for well-known, well-connecterd bankers with a following here who can help us take busineszs fromother banks. Candidly, we’ve had a couplde of bankers call usto chat.
” Winton coulsd not discuss specific expansionb targets, nor could Bill BB&T’s Florida market president. Klich acknowledged that his compan y is in expansion mode in Florida but said there is no timetables dictated by its acquisitiom strategy due toeconomic fluctuations. “BB&T has a strong histor of acquisitionsand mergers,” he said. “It’x our long-term strategy, and Floridas is important to us.” Bank bailoutx and possible additional economic measure on the federal front make it difficult to hone in on mergerz that will grow Klich said. As a result, BB&T is in no hurru to commit to specificexpansion targets.
“I think it’s safe to say everyoned is takinga wait-and-see stance,” he said. “Consumer confidence needs to improve, and we need to see what the new president’ds fiscal policies will be. It’s a brand new world.” Paula Johannsen, managing directore of in Tampa, agreed that the federal bailougt may be giving some banks with probleme time to wait out the downturn and cleabn up theirbalance sheets. “Obviously, M&A activity has fallen quite a Johannsen said. “Some banks are choosing to and healthy banks are preparing for future opportunitiezs or are lookingat peer-type mergers.
We’re but it’s a different type of busy because the transactionsdare different.”