BB&T and SunTrust are joining to create new $66 billion bank

07 February, 2019, 21:52 | Author: Brooke Harris
  • Enlarge this image

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.

"The business has been changing and will be changing", SunTrust Chief Executive William Rogers said.

BB&T and SunTrust Banks announced Thursday that they have agreed to merge in a $66 billion deal to form a new bank that will be headquartered in Charlotte.

BB&T Chairman and chief executive officer Kelly King called the deal a "true merger of equals" in prepared remarks.

SunTrust was already the region's largest bank before the merger announcement, with about 21 percent of the area's deposits.

Klock said he believes that with attention of the SunTrust-BB&T deal, as well as the easier regulatory environment, more large bank mergers may be coming.

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.

"Deadpool 3" Will Retain Its R-Ratedness Despite Disney Takeover
Talking about Deadpool series, the first movie which was released on 2016 raked in $363 million domestically and $783 million worldwide.

Analysts largely expect regulators to approve the deal, although it will likely draw scrutiny from vocal bank critics like USA senators Elizabeth Warren and Bernie Sanders.

The combined company will be based in Charlotte and operate under a new name but continue to have operations in Winston-Salem and Atlanta.

The combined company will be the sixth-largest retail bank in the country, putting BB&T and SunTrust in the ranks of other megabanks like JPMorgan Chase, Bank of America and Wells Fargo.

Industry executives have long predicted a wave of bank mergers that's so far played out only in smaller or mid-sized deals. SunTrust shareholders will receive a 5% increase in their dividend upon consummation of the transaction based upon each Company's current dividend per share. BB&T shareholders will own about 57 percent of the combined company and SunTrust shareholders will own the rest - creating roughly a merger of equals. "Together with Bill's leadership and our new SunTrust teammates, we're going to bring the best of both companies forward to serve our clients and communities". GAAP and Cash EPS accretion per SunTrust share in 2021 is expected to be approximately 9% and 16%, respectively (based on Street estimates).

King will serve as chairman and CEO of the new company until September 2021, but will stay on the board through 2023. Until then, Rogers will serve as president and chief operating officer. He will then become CEO for six months, after which he'll add board chairman to his title.

Shares of SunTrust jumped 11.1 percent in early morning trading, while BB&T's stock rose 5 percent.

Recommended:



Popular

Jennifer Lawrence engaged to art director Cooke Maroney
They appeared to be in a celebratory mood while dining at French restaurant Raoul's . 'The ring was very noticeable. She was also nominated for three other Oscars for her roles in " Joy ", "Winter's Bone" and " American Hustle ".

Aaron Judge Would Switch Positions If New York Yankees Sign Bryce Harper
As of Monday morning, the 26-year-old still had not made a decision public on where he's planning to sign. Whether it evolves into something more is a reasonable question, one with some history to back it.

230 new emojis have been approved for release
A new "people holding hands" emoji will let users mix and match different skin tones and genders, with 171 possible combinations. Emojis are small graphics and smiley faces you can send with your keyboard and incorporate in messages and online text.

Freezing rain causes power outages, ices Midwest roads
This thaw will be brief, however, as a strong cold front will slam the area late Thursday night. The advisory warns that highways, roads, walkways, and parking lots may become icy and slippery.

R Kelly deletes post about tour after lawmaker threatens ban
Kelly ", the "Bump N Grind" crooner has never been convicted of a crime and he has always adamantly maintained his innocence . The tour, which listed no dates, will take him to Australia, New Zealand and Sri Lanka, according to the Hollywood Reporter .

US oil prices dip on rising crude inventories, record output
Supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies since January have been supporting prices. USA distillate stocks fell by 2.3 million barrels, while inventories of other refined fuels dropped by 2.9 million barrels.

Closs kidnapping, murder suspect due in court Wednesday for preliminary hearing
Patterson then allegedly took the teen to his cabin near Gordon, a township of 645 people in thickly forested Douglas County. He told investigators he took her to a remote cabin, sometimes hiding her under his bed for hours, until she escaped.

Men who have smoked weed have higher sperm concentrations
But many of these studies have only involved animals or focused on a small group of people (including the one last December). Experts believe there may be a link between moderate cannabis use and how that can benefit the male's reproductive system.

Eden Hazard to tell Chelsea FC about Real Madrid decision
The Belgium global has made no secret of his admiration for Madrid and was tipped to join them after the World Cup, only to stay at Stamford Bridge.

Slow over rate policy to be modified - Cameron
Speaking in the wake of the suspension of captain Jason Holder from the third test against England starting in St. Cameron did not specify exactly what modification he favored, and he is not arguing the letter of the law.