BB&T to buy Collateral Real Estate Capital
BB&T Corp, a large Southeast U.S. regional bank, said on Thursday it would buy Collateral Real Estate Capital LLC, creating one of the nation’s largest full-service commercial and multifamily mortgage banking companies.
Terms were not disclosed. BB&T said it would combine Collateral with its Laureate Capital LLC unit. It said the combined entity would have a commercial real estate servicing portfolio in excess of $20 billion.
Collateral is a Birmingham, Alabama-based commercial real estate finance company with a $10 billion loan servicing portfolio. Laureate also has a $10 billion servicing portfolio and is based in Charlotte, North Carolina.
The purchase extends BB&T Chief Executive John Allison’s strategy of making smaller acquisitions ahead of the “merger of equals” he has said he wants.
It also extends Winston-Salem, North Carolina-based BB&T’s exposure to commercial and residential real estate at a time when mortgage problems nationwide leave some valuations depressed.
BB&T said the combined entity would get a new name, employ close to 330 people, and be based in Charlotte. Laureate Chief Executive Thomas Dennard will run it, while Collateral Chief Executive David Roberts will become chief operating officer. Overlapping offices in four cities will be merged.
The transaction is expected to close in the fourth quarter pending regulatory approval.
BB&T has $127.6 billion of assets and operates more than 1,500 branches in 11 states and Washington, D.C.