UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 28, 1999
CCB Financial Corporation
(Exact name of registrant as specified in its charter)
North Carolina 0-12358 56-1347849
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
111 Corcoran Street, Post Office Box 931, Durham, NC 27702
(Address of principal executive offices)
Registrant's telephone number, including area code (919) 683-7777
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events.
On June 28, 1999, the Registrant announced that it would
outsource its consumer credit card business to MBNA Corporation.
Under the agreement, the Registrant's subsidiary banks will offer
their customers credit card products through MBNA. Additionally,
MBNA will acquire approximately $150 million of consumer credit
card receivables from the Registrant's subsidiary banks. The sale
is expected to close on June 30, 1999 and result in an after-tax
gain of approximately $.48 per diluted share.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99 Press Release dated June 28, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
CCB FINANCIAL CORPORATION
Date: July 1, 1999 By: /s/ SHELDON M. FOX
Sheldon M. Fox
Executive Vice President and
Chief Financial Officer
Date: July 1, 1999 By: /s/ W. HAROLD PARKER, JR.
W. Harold Parker, Jr.
Senior Vice President and
Chief Accounting Officer
FOR IMMEDIATE RELEASE Contact: Jenny R. Kobin
June 28, 1999 Phone: (919)683-7646
CCB Financial Corporation To Partner With MBNA
Durham, N.C. - CCB Financial Corporation (NYSE: CCB) announced
today that it will outsource its consumer credit card business to
MBNA Corporation (NYSE: KRB). Under the agreement, CCB and MBNA
will enter into an agent bank arrangement whereby CCB will offer
its customers credit card products, using the CCB name, through
MBNA. In addition, under the agreement, MBNA will purchase
approximately $150 million in consumer credit card receivables from
CCB's specialized credit card bank, CCB-Georgia and CCB-Georgia's
affiliate banks, Central Carolina Bank and Trust Company and
American Federal Bank, FSB.
Subject to regulatory approval, the sale is expected to close on or
before June 30, 1999, at which time the outsourcing arrangement
will commence. In connection with the sale, CCB expects to
recognize an after-tax gain of approximately $.48 per diluted
share.
"We are constantly looking for opportunities to improve customer
service and product offerings," said Ernest C. Roessler, CCB's
chairman, president and chief executive officer. "Given the
changes and consolidation in the credit card industry and the scale
required to be competitive long-term in the consumer card business,
we feel that partnering with MBNA is the right solution for our
customers and will improve CCB's long-term profitability."
"The sale will free up capital to be redeployed in other growth
initiatives, improve CCB's overall credit quality and allow us to
focus on businesses that will create value for customers and
shareholders," stated Mr. Roessler.
CCB will continue to offer business credit cards in its markets and
will retain its existing portfolio of business credit card
receivables.
CCB Financial Corporation offers a complete line of traditional
banking services, as well as a full array of financial products,
such as investments, insurance and trust services. Its two
principal banking subsidiaries, Central Carolina Bank and Trust
Company in North Carolina and American Federal Bank, FSB in South
Carolina, serve customers through 203 offices, 216 ATMs, its
Telebanking Center, and on-line banking for both retail and
commercial accounts. The Trust and Investment Management division
currently has 14 offices in the Carolinas, Virginia and Florida,
with trust assets exceeding $4 billion. As of March 31, 1999, CCB
Financial Corporation had total assets of $7.8 billion. Additional
information about the Corporation is available on the Internet at
the Corporation's web site, CCBonline.com.
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