BB&T and SunTrust

BB&T And SunTrust To Merge, Forming 6th-Largest Bank In The U.S.

February 7, 20197:51 AM ET

BILL CHAPPELL

Twitter

BB&T and SunTrust Decide It’s Time for 2 to Become 1

Not sure who gave the two regional banks a Spice Girls album, but most analysts are here for it.

The details: BB&T (+3.98%) will buy SunTrust Banks (+10.18%) for about $28 billion in stock, the largest U.S. bank merger since the financial crisis.

• The combined entity (name TBD) would have $442 billion in assets, making it the sixth-largest retail bank in the U.S.

Why the timing felt right: The U.S. banking sector has been the Sahara of consolidation for years. But the Trump administration’s rollback of federal banking regulations has upped the likelihood of regional lenders joining forces to fend off larger rivals…

Which could still be tough. National banks like JPMorgan and Bank of America have attracted a growing share of checking accounts, especially among younger customers who appreciate their millennial-approved digital offerings.

That's why, as part of its plan to “compete and win,” the new BB&T-SunTrust will invest heavily in tech. If you need proof, the statement announcing the deal used the words “technology,” “innovation,” and “digital” more than a dozen times. Okay, sold. 

BB&T and SunTrust announced plans to merge, in a deal worth some $66 billion. The deal is weighted toward BB&T, whose shareholders will own around 57 percent of the new bank.

Chip Somodevilla/Getty Images

BB&T and SunTrust have agreed to merge into a new and as-yet-unnamed bank, in an all-stock deal valued at approximately $66 billion. The new bank, which would have its headquarters in Charlotte, N.C., will be the sixth-largest in the U.S. based on assets and deposits.

Both of the banks are calling it a "merger of equals." But the deal is weighted toward BB&T, whose shareholders will own around 57 percent of the new bank compared with SunTrust shareholders' 43 percent.

BB&T Chairman and CEO Kelly S. King will perform those same roles in the new bank until 2021 — when current SunTrust Chairman and CEO William H. Rogers Jr. will take over as CEO. Until then, Rogers will serve as president and chief operating officer. The new company's board will be evenly split between the banks' current boards of directors.

"This is a true merger of equals, combining the best of both companies," King said in a news release about the plan, which he said would bring the banks new scale that will help them "compete and win in the rapidly evolving world of financial services."

Sign Up For The Planet Money Newsletter

Break down our complex economy with easy-to-understand insights, sent weekly.

E-mail address

By subscribing, you agree to NPR's terms of use and privacy policy.

The merger joins two banks that have grown along with the bustling Southeast and Mid-Atlantic regions where they began. BB&T has more than 1,800 financial centers in 15 states and Washington; SunTrust has an extensive network of branches, along with corporate and investment banking operations.

When the two Southern banks are combined, the new company will serve more than 10 million U.S. households, with approximately $442 billion in assets, $301 billion in loans and $324 billion in deposits, according to a joint news release detailing the plan.

The deal calls for both banks to leave their roots behind. BB&T has long been based in Winston-Salem, N.C., while SunTrust is based in Atlanta. The banks say they will continue to have "significant operations and investment" in their hometowns.

The merger is expected to close in the fourth quarter of 2019, the banks say, subject to approval from regulators and their shareholders.

The combined bank's name and brand "will be determined prior to closing," the companies said.