BB&T and Suntrust Announce $66 Billion Merger With New Headquarters in Charlotte

Roman Schwartz
February 8, 2019

Combined, the company will become the sixth largest United States bank, based on assets and deposits.

In December, BB&T said it was eliminating its Center City Allentown regional headquarters as well as positions held by Scott V. Fainor and David B. Kennedy, former executives at National Penn Bancshares and longtime Lehigh Valley bankers. The financial institution was formed when Trust Company of Georgia merged with SunBanks, 1985.

William H. Rogers, Jr., Chairman and Chief Executive Officer of SunTrust will serve as President and Chief Operating Officer of the combined company and its bank subsidiary until September 12, 2021, at which time he will become Chief Executive Officer of the combined company and its bank subsidiary.

A merger of two U.S. banks has handed RBC Capital Markets, the Canadian investment bank, its largest sole advisory role on a global mergers and acquisitions deal.

The Winston-Salem-based financial services holding company traces its roots to the post-Civil War era. The only bank with the size and scale of the new merged BB&T-SunTrust would be Minneapolis-based U.S. Bank, which has a large presence in the Midwest and Rocky Mountains. About one-quarter of the BB&T and SunTrust branches, 740 of them, are within two miles of each other. It now has over $222 billion in assets and operates in 15 states and Washington, D.C. It will create the sixth-largest bank in the USA, with assets of $442bn and deposits of $324bn, according to a statement. It has over 1,800 branches and around 37,000 employees.

"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future", said BB&T Chairman and Chief Executive Officer (CEO) Kelly S. King.

"It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services".

BB&T And SunTrust To Merge, Forming 6th-Largest Bank In The U.S.
SunTrust and BB&T Will Merge to Form the Sixth Largest U.S. Bank

UBS bank analyst Saul Martinez said in a note to clients that "at first blush, this looks like a good deal for BB&T", given both the financial terms of the deal and the fact that SunTrust's "footprint is in higher income and household density markets".

Each company will appoint half the seats on the board of directors. BB&T has always been based in Winston-Salem, N.C., while SunTrust is based in Atlanta.

Shares of SunTrust climbed 5.6 percent before the market open, while BB&T's stock rose slightly.

The deal is expected to close in the fourth quarter of this year.

SunTrust shareholders will receive 1.295 shares of BB&T for each SunTrust share they own, the companies said in a joint statement on Thursday. After that, he will serve as executive chairman for six months.

BB&T Chairman and CEO Kelly King said during a conference call that the companies will be "careful and methodical" about which branches they close. The banks said that they expect the merger will cut their costs by at least $1.6 billion by 2022.

The banks have a combined 275 years of history and culture serving clients and communities.

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