ATLANTA, Aug. 6 /PRNewswire/ -- Premier Bancshares, Inc. (NYSE: PMB) today
announced that the following informational letter from Chairman and Chief
Executive Officer Darrell Pittard is being mailed to the company's
shareholders:
Dear Fellow Shareholder:
It is an exciting time for Premier Bancshares. Early next year, we will
become part of the BB&T family and achieve the objective we set for our
company six years ago. When we formed Premier Lending Corporation in 1993, we
intended to grow the company to a level that would attract the investment of a
high-quality regional bank. We have now reached this level and found a strong
partner -- an ideal opportunity at the exact right time.
The Right Time
As you know, we are in the process of completing three new mergers, which
will increase our asset size to more than $2 billion. We have reached the
limits of our current infrastructure. Expansion to the next level would
require a substantial long-term investment in support areas that would impact
our bottom line. Furthermore, investment in these areas would not be recouped
in an acquisition, since most acquirers discount much of the infrastructure
because it is redundant to their operations.
In addition to infrastructure considerations, we are facing a challenging
environment of rising interest rates, which is impacting the entire mortgage
lending industry. For Premier to remain a leader in this increasingly
competitive economy will require the resources to offer new products and
services and develop new business. And to continue such leadership, we must
maintain our character as a community-oriented financial institution
recognized for its high level of customer care.
Our partnership with BB&T will help us meet these needs.
The Right Partner
Premier Bancshares' high performance has attracted interest from several
respected, sizable institutions. In considering the greatest benefits to both
our shareholders and our employees, BB&T offers the most compelling
opportunity.
Premier's management has always operated with the goal of building
long-term value for our shareholders. In exchange for your shares in Premier,
you are gaining a tax-free investment in a top-performing financial
institution that offers tremendous long-term potential. BB&T is the fifth
largest bank-holding company in the Southeast, the 20th largest in the
country. It was ranked earlier this year by Business Week magazine as the
second-highest performing bank holding company in the U.S. On July 28th, the
day our agreement was announced, the transaction equaled 3.7 times Premier's
tangible book value and 27 times our 12-month trailing earnings. This is well
above the market value, based on similar acquisitions. With this stock-for-
stock transaction, our goal was not to lock-in a price, but to find an
opportunity that would provide you long-term value. Financial analysts are
applauding this strategy.
In addition to shareholder value, partnering with BB&T will offer the
smoothest transition possible. We share similar operating philosophies and
our lines of business complement each other well. BB&T will rely on current
Premier management and employees to play a leadership role as it expands in
the Atlanta metropolitan market. We expect our continued high level of
service and expanded product lines to be welcomed by current customers...and
to attract new ones.
Our future with BB&T is extremely promising. Thank you for your continued
support.
Premier Bancshares is a Georgia-based bank holding company with assets of
approximately $1.5 billion. After pending acquisitions, Premier Bancshares
and subsidiaries will have assets of approximately $1.9 billion and will be
operating in 40 offices. Both the common stock of Premier Bancshares, Inc.
and the preferred securities of Premier Capital Trust I are traded on the New
York Stock Exchange under the symbols PMB and PMB.PR, respectively.
SOURCE Premier Bancshares, Inc.
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Related links:
http://www.premierbancshares.com
Company News On-Call:
http://www.prnewswire.com/comp/283325.html or fax,
800-758-5804, ext. 283325
CONTACT:
Darrell D. Pittard, Chairman and Chief
Executive Officer, 404-814-3090, or Michael E. Ricketson, Exec.
Vice President and Chief Financial Officer, 770-476-3209, both of
Premier Bancshares, Inc.
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