EXHIBIT 20
BB&T BB&T Corporation
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Public Relations
200 West Second Street
Winston-Salem, NC 27101
October 29, 1997 News Release
FOR IMMEDIATE RELEASE
Contacts:
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ANALYSTS MEDIA
B. Gloyden Stewart, Jr. Scott E. Reed Bob Denham Tollie W. Rich, Jr.
BB&T BB&T BB&T Life Bancorp
Senior Vice President Sr. Exec. Vice President Vice President Exec. Vice President
Investor Relations Chief Financial Officer Public Relations Chief Operating Officer
(919) 246-4219 (910) 733-3088 (910) 733-2202 (757) 858-1088
Clarence W. Keel
Life Bancorp
Vice President
Investor Relations
(757) 858-1088
BB&T to acquire Life Bancorp, Inc. of Norfolk, VA.
WINSTON-SALEM, N.C. - BB&T Corporation (NYSE:BBK) announced today that a
definitive agreement has been executed to acquire Life Bancorp, Inc.
(NASDAQ/NMS:LIFB) of Norfolk, Va., in a stock transaction valued at $359.2
million, based on BB&T's closing price of $54.88 on Tuesday, Oct. 28. The
acquisition will give BB&T the largest market share of deposits in the Southside
Hampton Roads area, which includes Norfolk, Virginia Beach, Chesapeake,
Portsmouth and Suffolk.
The transaction, approved by the boards of directors of both companies,
will be accounted for as a pooling of interests. Based upon BB&T's closing
price on Oct. 28, the transaction is valued at $32.93 per share. The exchange
will be .58 shares of BB&T common stock, for each of Life Bancorp common stock,
if BB&T stock is trading at $57 or higher. The exchange ratio may be increased,
in increments, to a maximum of .60 shares if BB&T's common stock price is
between $57 and $55, and below $55 will be fixed at .60 shares. Pricing will be
based on the average of BB&T's closing prices for a specific period prior to
closing the transaction.
Life Bancorp, with approximately $1.5 billion in assets, operates 20 full
service banking offices in Norfolk, Virginia Beach, Chesapeake, Portsmouth and
Suffolk through its banking subsidiary, Life Savings Bank, FSB. Its primary
businesses are retail banking and mortgage banking.
MORE
"Life Bancorp is an outstanding institution that gives us a substantial
presence in southeastern Virginia as well as the top market share in Southside
Hampton Roads," said John Allison, BB&T chairman. "Our goal in Virginia is to
build a statewide franchise that excels in unmatched customer service value and
personal attention. The addition of Life Bancorp and their tradition of
providing outstanding service is a major step in achieving this goal."
Under terms of the agreement, Life has granted BB&T an option to purchase
Life Bancorp common shares up to 19.9% of shares currently outstanding. The
option agreement is only exercisable under certain circumstances.
BB&T will have approximately $3.5 billion in assets and $2.3 billion in
deposits in Virginia following the merger. BB&T controls the largest share of
deposits in the Carolinas and plans to build a similar franchise in Virginia.
BB&T of Virginia, which is expected to acquire Virginia First Financial
Corporation of Petersburg, Va. by year end, currently operates 53 branches in 26
cities and towns.
"We are delighted to team up with an institution with the financial
strength, image and market performance of BB&T and, importantly, the merger
enables us to offer a broader range of products, services and technologies to
meet our customers' needs," said Edward E. Cunningham, president and CEO of Life
Bancorp. Mr. Cunningham will serve as chairman of the board of directors of
BB&T Virginia.
The merger, which is subject to the approval of the shareholders of Life
Bancorp and the federal and state banking regulators, is expected to be
completed by spring 1998.
BB&T operates 485 banking offices throughout the Carolinas and Virginia.