Megan Brooks
SunTrust Banks Inc. and BB&T Corporation, two of the largest financial services holding companies in the United States, announced a merger on February 7, 2019. The merger was approved by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board in November 2019, and the merged entity, named Truist Financial Corporation, was formed on December 6, 2019. The new company, headquartered in Charlotte, North Carolina, serves approximately 10 million households and offers a wide range of financial services.
| Characteristics | Values |
|---|---|
| Date of merger | 6 December 2019 |
| New company name | Truist Financial Corporation (Truist) |
| Headquarters | Charlotte, North Carolina |
| Number of households served | 10 million |
| Branches divested | 28-30 |
| Deposits divested | $2.3-$2.4 billion |
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What You'll Learn
The Federal Deposit Insurance Corporation approved the merger
The Federal Deposit Insurance Corporation (FDIC) unanimously approved the Bank Merger Act (BMA) application submitted by Branch Banking and Trust Company (BB&T) to merge with SunTrust Bank. The FDIC's approval was conditional on Truist Bank, the new merged entity, divesting 30 branches and $2.4 billion in associated deposits. The transaction was to be completed no sooner than 15 days after approval and no later than six months after it.
The FDIC considered the statutory factors outlined in the BMA when reviewing BB&T's application, including the effect of the transaction on competition, the financial and managerial resources of the existing and proposed institutions, and the convenience and needs of the communities served. The application satisfied these requirements as well as the additional requirements for interstate mergers under section 44 of the Federal Deposit Insurance (FDI) Act.
The FDIC's approval allowed SunTrust Bank's branches to be established as branches of Truist Bank. Truist Bank, headquartered in Charlotte, NC, would operate under BB&T's charter. The merger created one of the nation's largest financial services holding companies, offering a wide range of services including retail, small business and commercial banking, asset management, capital markets, and more.
The completion of the merger was announced on December 9, 2019, with the new entity called Truist Financial Corporation ("Truist"). The merger was first announced on February 7, 2019, and final regulatory approvals were received on November 19, 2019. Truist President and Chief Operating Officer Bill Rogers commented on the merger, stating that "we're creating a new company with a bold, transformative vision to increase investment in innovative technology and create a distinctive teammate and client experience."
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The merged bank is called Truist Bank
SunTrust and BB&T have merged to become Truist Bank. The merger was first announced on February 7, 2019, and final regulatory approval was received on November 19, 2019. The Federal Deposit Insurance Corporation (FDIC) unanimously approved the Bank Merger Act (BMA) application, allowing the two banks to merge. The resulting bank operates under BB&T's charter and is called Truist Bank, headquartered in Charlotte, North Carolina.
Truist Financial Corporation, the new entity, is dedicated to building a better future for its clients, teammates, and communities. With 275 years of combined history, Truist is one of the largest financial services holding companies in the nation. It offers a wide range of services, including retail, small business and commercial banking, asset management, capital markets, and insurance, among others.
The completion of this merger is a significant achievement, and Truist President and Chief Operating Officer, Bill Rogers, has shared a bold, transformative vision to increase investment in innovative technology and create a unique experience for teammates and clients. For the time being, clients will continue to be served through their respective BB&T or SunTrust branches, websites, mobile apps, and financial advisors. The transition to the full Truist experience will take place over the next two years as systems are integrated.
The merged entity, Truist Bank, will be the sixth-largest U.S. commercial bank, serving approximately 10 million households and business clients across the country. With this merger, Truist aims to create meaningful change for its clients and the communities it serves.
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Truist Bank is headquartered in Charlotte, North Carolina
Truist Bank is the product of the merger between SunTrust Bank and BB&T (Branch Banking and Trust Company). The merger was first announced on February 7, 2019, and was approved by the Federal Deposit Insurance Corporation (FDIC) on November 19, 2019. The merger was completed on December 6, 2019, with BB&T as the surviving corporation. The new bank, Truist, operates under BB&T's charter.
Truist Financial Corporation is headquartered in Charlotte, North Carolina. The bank's corporate headquarters are located in the Truist Center, formerly known as Hearst Tower, in downtown Charlotte. The building was renamed in March 2020, and Truist unveiled its logo in January 2020. The logo combines the blue of SunTrust and the burgundy of BB&T in a shade of purple, with two Ts representing touch and technology.
The decision to base the bank in Charlotte was a strategic one. Charlotte is a major financial hub, often referred to as the Wall Street of the South. It is the second-largest banking centre in the United States, after New York City. Many other large banks, such as Bank of America and Wells Fargo, also have their headquarters in Charlotte. Therefore, it makes sense for Truist, now one of the nation's largest financial services holding companies, to be headquartered there.
By being based in Charlotte, Truist gains access to a large talent pool of experienced financial professionals. The city is home to a number of universities and colleges, including the University of North Carolina at Charlotte, which offers a variety of business and finance-related degree programmes. This provides Truist with a steady stream of potential employees and allows the company to tap into a highly skilled workforce.
In addition, Charlotte offers a favourable business climate with relatively low corporate taxes and a low cost of living compared to other major financial centres. The city also has a vibrant cultural scene, with museums, theatres, and sports teams, making it an attractive place for both employees and clients to live and work.
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Truist Bank will divest branches and deposits
BB&T and SunTrust merged to become Truist Bank in December 2019. The Federal Deposit Insurance Corporation (FDIC) approved the merger, but it was conditional on Truist Bank divesting 30 branches and $2.4 billion in associated deposits. The Department of Justice (DOJ) also approved the merger, ordering the banks to divest 28 branches and approximately $2.3 billion in deposits to resolve antitrust concerns. The branches to be divested are located in North Carolina, Virginia, and Georgia. First Horizon Bank will acquire these branches and deposits from SunTrust.
The merger of equals was first announced on February 7, 2019, and final regulatory approvals were received on November 19, 2019. Truist Financial Corporation, the merged entity, is one of the nation's largest financial services holding companies, offering a wide range of services, including retail, small business, and commercial banking. Headquartered in Charlotte, North Carolina, Truist serves approximately 10 million households and has 1,928 branches in 15 states and Washington, D.C.
The completion of the merger was a significant achievement, and Truist President and Chief Operating Officer Bill Rogers emphasized the company's commitment to increasing investment in innovative technology and creating a distinctive client experience. The transition to the full Truist experience was expected to occur over the next two years as systems were integrated. However, due to delays related to the COVID-19 pandemic, Truist announced in April 2021 that the core conversion to combine the branches would be performed in early 2022.
During the transition period, clients continued to be served through their respective BB&T or SunTrust branches, websites, mobile apps, financial advisors, and relationship managers. Customers of both banks were given free access to all Truist ATMs without incurring out-of-network fees. The merger also provided the convenience of making withdrawals from either BB&T or SunTrust ATMs.
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The Federal Reserve Board approved the merger
The approval was conditional upon several factors. Firstly, BB&T was required to divest 30 branches and over $2.4 billion in deposits to mitigate the merger's competitive effects. Additionally, the Board issued a consent order against SunTrust for unfair and deceptive practices that occurred between 2013 and 2017. SunTrust had already terminated these practices and repaid approximately $8.8 million in fees to affected customers.
The merged entity, named Truist Financial Corporation (or Truist Bank), became one of the nation's largest financial services holding companies, offering a wide range of services, including retail, small business, and commercial banking. Headquartered in Charlotte, North Carolina, Truist serves approximately 10 million households and holds a leading market share in many high-growth markets across the country.
The regulatory approval process for the merger also included approvals from the Georgia Department of Banking and Finance and the North Carolina Commissioner of Banks. The U.S. Department of Justice had also completed its antitrust review in November, as part of an agreement to divest branches in North Carolina, Virginia, and Georgia. With all necessary approvals in place, the merger was completed on December 6, 2019, and the transition to the Truist brand was expected to occur over the following two years.
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Frequently asked questions
Yes, the Federal Deposit Insurance Corporation (FDIC) approved the merger between the two banks. The new bank will be called Truist Bank.
The merger was announced on February 7, 2019, and final regulatory approvals were received on November 19, 2019. The merger was completed on December 6, 2019.
The merged bank will operate under the BB&T charter and will be called Truist Bank.
Truist Financial Corporation will offer a wide range of services including retail, small business and commercial banking, asset management, capital markets, commercial real estate, corporate and institutional banking, insurance, mortgage, payments, specialized lending, and wealth management.
Truist Bank will be headquartered in Charlotte, North Carolina.
