Company News - Sept. 2000

BB&T to acquire commercial mortgage banking firm

WINSTON-SALEM, N.C.
BB&T Corporation today said it has signed a definitive agreement to buy commercial mortgage banking firm Laureate Capital Corp. of Charlotte, N.C.

Laureate Capital Corp, a subsidiary of Columbia, S.C.-based Resource Bancshares Mortgage Group Inc., is among the 25 largest commercial mortgage banking firms in the United States, with a loan servicing portfolio of $4.3 billion.

The transaction will be accounted for as an asset purchase. Terms were not disclosed. The wholly owned subsidiary will retain its name and all 85 employees.

“Laureate represents a strategic enhancement to BB&T’s long standing reputation as a market leader in the real estate lending business,” said Clarke Starnes, manager of BB&T Specialized Lending. “We’ll now be able to offer our commercial clients access to a broader selection of competitive products and services and one of the premier commercial real estate loan origination and servicing platforms in the nation.

“This acquisition includes offices that fit ideally within BB&T’s geographic market area as well as several additional commercial markets.”

Laureate specializes in arranging financing, brokerage services, and asset and portfolio management. Its niche is also loan servicing for financial institutions as well as owners and developers of commercial and multi-family real estate.

“The entire Laureate organization is excited about our upcoming association with BB&T,” said Laureate President and Chief Executive Officer Thomas S. Dennard. “Laureate is growth-minded through strategic acquisitions and local autonomy. These shared characteristics with BB&T make us an excellent combination.”

The 6-year-old firm operates 12 offices in the Carolinas, Virginia, Florida, Alabama, Tennessee, Indiana and Pennsylvania.

“Laureate is a well-run commercial real estate operation,” said RBMG Chief Executive Officer Doug Freeman. “However, RBMG’s strategy is centered around the consumer markets which makes this transaction a necessary step.”

The merger is subject to the approval of Laureate’s correspondent relationships, which include major life insurance companies, Freddie Mac, Fannie Mae and capital market sources.

Winston-Salem-based BB&T Corporation, with $55.2 billion in assets, operates 825 banking offices in the Carolinas, Virginia, Maryland, Georgia, West Virginia, Kentucky and Washington, D.C. It is the nation’s 18th largest financial holding company.

BB&T and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, retail brokerage, corporate finance, international banking, leasing and trust. More information is available at www.BBandT.com.

For more information contact:
Thomas S. Dennard
President and CEO
Laureate Capital Corp.
(704) 379-6910