SAN ANTONIO-BB&T Corp. reports it has reached an agreement with Citibank to acquire 21 of its bank branches in Texas.

The Winston-Salem, NC-based financial services firm will purchase all of Citibank's branch locations in the Austin, Bryan-College Station and San Antonio markets, including $1.2 billion in deposits and $134 million in loans. BB&T will pay a premium to book value of 4.25% of core deposits. Based on Sept. 30, 2013 balances the expected premium is approximately $36 million, company officials state.

"I want to warmly welcome our new clients and associates to BB&T," states BB&T Chairman and Chief Executive Officer Kelly S. King. "This acquisition is a compelling strategic expansion in Texas, where the BB&T brand and approach to client service have been very well received. We are excited about this transaction and look forward to our expanding opportunities in these fast-growing markets." The transactions are reportedly scheduled to close during the second quarter of 2014.

The acquisition expands BB&T's presence in Texas to 81 financial centers, $2.8 billion of deposits and $2.1 billion of loans. Deutsche Bank Securities Inc. provided financial advice and Wachtell, Lipton, Rosen & Katz provided legal counsel to BB&T in the deal.