Press Releases

The transaction is subject to approval by regulatory authorities and B C Bankshares shareholders. It is expected to close in the first quarter of 2000. The transaction is structured as a purchase. The agreement provides for a fixed exchange ratio of 2.914 shares of Wachovia Corporation common stock for each share of B C Bankshares common stock and is expected to result in the issuance of approximately 1.6 million shares. Based on Wachovia’s closing stock price of $82.44 on Wednesday, the transaction would have a value of approximately $134 million.

The acquisition will increase Wachovia’s presence in the highly attractive Cherokee County area. The county was the second fastest-growing county in Metro Atlanta between 1990 and 1997 with a population increase of 39 percent. The Bank of Canton is a deposit share leader in the county and has a history of strong financial performance.

"Wachovia is pleased to have the Bank of Canton join with us to serve customers in the Metro Atlanta market," said D. Gary Thompson, Wachovia chief executive officer for Georgia and Florida banking. "The Bank of Canton is an exceptional bank. We have admired its performance for a number of years."

Following the completion of the acquisition, the Bank of Canton will become part of Wachovia Bank, N.A. E.O. McFather Jr., the bank’s chairman and chief executive officer, will be Wachovia chairman for Cherokee County, and Steven L. Holcomb, president and chief operations officer, will be Wachovia’s Cherokee County executive.

The Bank of Canton primarily serves small businesses and individuals. By merging with Wachovia, the bank will be able to offer additional services to its customers.

"Through this strategic transaction, our shareholders will realize significant value for their shares. In addition, our customers will gain access to a broad array of services such as trust, investments, insurance and other wealth management services," said McFather. "We believe our customers will enjoy the enhanced services while continuing to be served by people they know."

In connection with the acquisition, B C Bankshares issued to Wachovia an option to purchase up to 19.9 percent of B C Bankshares’ stock under certain circumstances. In addition, directors and certain large shareholders controlling approximately 20 percent of B C Bankshares’ outstanding shares have agreed to vote in favor of the merger.

Wachovia Corporation is a leading bank holding company with Wachovia Bank, N.A. its principal subsidiary. At June 30, 1999, Wachovia had $67 billion in assets and ranked 16th among U.S. banking firms. Wachovia Bank, N.A. has more than 700 offices and 1,300 ATMs in Florida, Georgia, North Carolina, South Carolina and Virginia. Wachovia also is a leading corporate bank with business relationships in 50 states and global activity in 40 countries. Wachovia common stock is traded under the New York Stock Exchange symbol of WB.