BB&T to acquire commercial mortgage company Collateral Real Estate Capital LLC

Aug 23, 2007, 01:00 ET from BB&T Corporation

    WINSTON-SALEM, N.C., Aug. 23 /PRNewswire-FirstCall/ -- BB&T Corporation
 (NYSE:   BBT) principal subsidiary Branch Banking and Trust Company today
 said it plans to buy commercial real estate finance company Collateral Real
 Estate Capital LLC of Birmingham, Ala.
     BB&T would combine Collateral with Laureate Capital LLC, its existing
 commercial mortgage banking firm, and give BB&T one of the largest full-
 service commercial and multifamily mortgage banking companies in the
 nation. The combined company would have a commercial real estate servicing
 portfolio of more than $20 billion.
     The transaction is subject to regulatory approval and investor consents
 and is expected to be completed in the fourth quarter. The combined
 company's new name and brand will be announced at closing. Terms were not
     "This acquisition is consistent with our announced strategy to add high
 quality, well managed, nonbank financial services companies," said Clarke
 Starnes, BB&T's manager of Specialized Lending. "Partnering with the very
 experienced professionals at Collateral will significantly strengthen our
 commercial mortgage franchise with a compatible business and management
     The combined company will offer a full range of commercial real estate
 financing programs, including life insurance companies, pension funds,
 commercial mortgage-backed securities and proprietary products. The company
 also will be a Fannie Mae DUS (R) (Delegated Underwriting and Servicing)
 lender, a Freddie Mac Program Plus (R) Seller/Servicer, and will offer
 multifamily products insured by the Federal Housing Administration (FHA).
 The combined company's projected originations for 2007 are more than $9
     With a $10 billion loan servicing portfolio in 43 states, Laureate
 Capital primarily arranges permanent commercial and multifamily real estate
 loans. It also services loan portfolios, and provides asset and portfolio
 management, and real estate brokerage services. Operating predominately in
 the Southeast and mid-Atlantic, Laureate Capital has about 150 employees in
 its 17 offices and Charlotte, N.C.-based corporate headquarters and loan
 servicing center.
     "This will be a transforming event for Laureate Capital and BB&T, one
 that will substantially increase our specialty product lines -- including
 the addition of a Fannie Mae platform along with enhanced Freddie Mac
 geographic coverage," said Laureate Capital President and Chief Executive
 Officer Thomas Dennard, who will be named chief executive officer of the
 combined company.
     "This merger provides additional needed depth in highly qualified
 management and producer personnel. It will also add a complete array of
 capital solutions along with our life insurance and commercial
 mortgage-backed securities placement capabilities. With the increased
 capabilities, we plan to provide both third-party and on-book bridge
 financing to facilitate and position long-term financing opportunities."
     With a $10 billion loan servicing portfolio, Collateral provides debt
 and equity capital as well as consulting and advisory services for all
 types of commercial and multifamily real estate across the nation. One of
 the largest privately owned commercial mortgage companies in the nation,
 Collateral's production volume was more than $5 billion in 2006.
     Collateral has about 180 employees in its 14 offices and Birmingham,
 Ala.- based corporate headquarters and loan servicing center. Laureate
 Capital and Collateral will combine overlapping offices in Atlanta,
 Birmingham, Indianapolis and Jacksonville, Fla.
     Corporate headquarters for the new company will be in Charlotte, with
 underwriting for Freddie Mac, Fannie Mae, FHA and proprietary loan
 operations remaining in Birmingham. The loan servicing centers will
 continue to operate in both cities.
     "A merger with Laureate is a growth opportunity too promising to pass
 up," said Collateral President and CEO David Roberts, who will be named
 president and chief operating officer of the new company.
     "Especially when you consider we also will benefit tremendously from
 our association with BB&T and its strong balance sheet and investment
 ratings. In all, we'll gain an expanded delivery network for Collateral's
 investment partners and enhanced access to capital markets and proprietary
 lending sources."
     Laureate Capital operates production offices that serve Alabama,
 Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, North Carolina,
 Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and
 Washington, D.C. BB&T acquired Laureate in 2000. More information about the
 company is available at More information about
 Collateral is available at
     The acquisition would expand BB&T's commercial mortgage operation into
 Kansas City; Milwaukee; Dallas; Ft. Lauderdale, Fla.; Orlando, Fla.;
 Minneapolis; Chicago; Columbus, Ohio; and Madison, Wis.
     Winston-Salem, N.C.-based BB&T Corporation (NYSE:   BBT) and its
 subsidiaries offer full-service commercial and retail banking and
 additional financial services such as insurance, investments, retail
 brokerage, mortgage, corporate finance, consumer finance, payment services,
 international banking, leasing and trust.
     BB&T operates more than 1,500 financial centers in the Carolinas,
 Virginia, Maryland, West Virginia, Tennessee, Kentucky, Georgia, Florida,
 Alabama, Indiana and Washington, D.C.
     With $127.6 billion in assets, BB&T Corporation is the nation's 11th
 largest financial holding company. More information about the company is
 available at

SOURCE BB&T Corporation