BB&T Purchase May Spur More Mergers

BB&T is acquiring Susquehanna Bancshares Incorporated, increasing its presence in the Mid-Atlantic. The Winston-Salem-based corporation's purchase is one of the biggest in the banking sector since the financial crisis.

BB&T's $2.5 billion acquisition of Susquehanna might spark more merger and acquisition activity throughout the banking industry. The possibility of regulatory hassles has kept many companies away from such transactions. According to the Triad Business Journal, banks have been wary of major deals for the past couple of years, thinking that regulators did not like the idea of greater consolidation in the industry. This deal may open those doors again.

Also, while the deal will involve $250 million in integration expenses, the payoff should be quick: BB&T expects the deal to boost its per-share earnings in the first year.