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BB&T and SunTrust agree to combine in US$66 billion merger

09 February 2019

According to a joint press release, the pro forma company will have approximately $442 billion in assets, $301 billion in loans, and $324 billion in deposits serving more than 10 million households in the United States, with leading market share in numerous most attractive, high-growth markets in the country.

RBC bankers advising BB&T on the deal, according to a bank spokeswoman, were Vinnie Badinehal, its head of financial institutions investment banking, Jason Braunstein, head of bank M&A, Eric Martinez and Sabrina Kureshy.

Industry executives have long predicted a wave of bank mergers that's so far played out only in smaller or mid-sized deals. "These are both very clean banks".

BB&T, which has deep roots in Robeson County and employs about 500 people here, will merge with SunTrust, creating the nation's sixth largest bank. It is America's 11th largest lender by assets and is valued at $38 billion. The U.S. economy was sizzling in the a year ago.

"The regulatory environment is much easier for something of this size to happen", said Brian Klock, an analyst with KBW.

Two of the largest banks in the Southeast have just announced they'll be merging and establishing a new headquarters right here in the Queen City. Under the terms of the merger agreement, SunTrust shareholders will receive 1.295 shares of BB&T for each SunTrust share they own.

Together, BB&T and SunTrust will have about $442 billion in assets, $301 billion in loans, and $324 billion in deposits, the companies said. The new merged bank will have a new name, the companies said, and will be headquartered in Charlotte, North Carolina.

BB&T moved its headquarters from Wilson to Winston-Salem in 1995, but the new company says it will still maintain a strong presence in the Triad. BB&T has always been based in Winston-Salem, N.C., while SunTrust is based in Atlanta.

In the Baltimore metro area, BB&T has 69 branches with $5.47 billion in deposits for a market share of 7.5 percent, according to the FDIC.

The two companies employ a combined 4,600 workers around the region - 3,800 at SunTrust's local outposts and 840 at BB&T, according to the most recent figures from the Greater Richmond Partnership.

Bank of America is the market leader with $21.3 billion in deposits and a almost 30 percent market share.

Several other mid-sized banks also gained, including KeyCorp, Huntington Bancshares and M&T Bank.

King will serve as CEO of the combined company through September 12, 2021, when Rogers will take over.

The transaction will deliver at least US$1.6 billion in annual cost savings by 2022, the companies said.

"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future", King said.

Shares of Atlanta-based SunTrust jumped 8.3 percent to $63.62, above the acquisition price, while BB&T rose 2.4 percent to $49.71.

BB&T and SunTrust agree to combine in US$66 billion merger