Megan Brooks
SunTrust Banks, Inc. and BB&T Corporation completed their merger of equals on December 6, 2019, to become Truist Financial Corporation (Truist Bank). The merger created the sixth-largest US commercial bank, serving approximately 10 million consumer households and a full range of business clients. Customers of both banks were given free access to all of Truist's ATMs without incurring out-of-network fees. However, the merger also caused issues for some Truist customers, who experienced difficulties accessing their money and long wait times for support.
| Characteristics | Values |
|---|---|
| Merger date | 6 December 2019 |
| Merger type | Merger of equals |
| New company name | Truist Financial Corporation |
| Previous names | BB&T Corporation, SunTrust Banks Inc. |
| Merger outcome | 8th-largest US bank |
| Merger benefits | $60 billion for lending or investment in low- and moderate-income communities |
| Customer experience | Issues with accessing money, poor customer service |
| Headquarters | Charlotte, North Carolina |
| Branches | 15 states |
| Customers | 10 million consumer households |
| Services | 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 |
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What You'll Learn
SunTrust and BB&T merged to become Truist in 2019
SunTrust Banks, Inc. and BB&T Corporation were two separate banks that merged in 2019 to become Truist Financial Corporation, or Truist Bank. The merger was first announced on February 7, 2019, and was amended on June 14, 2019, with the merger officially completing on December 6, 2019. The new company was to be headquartered in Charlotte, North Carolina, with significant operations in Winston-Salem, which would be the bank's headquarters for community banking.
The merger was a deal between two of the largest banks in the US, creating the sixth-largest US commercial bank, with approximately 10 million customers. The merger was a combination of equals, with BB&T as the nominal survivor, retaining its stock price history. SunTrust, however, brought its Atlanta headquarters to the deal, which had been the South's financial capital for much of the 20th century.
The merger was a long time in the making, with the two banks having a combined history of 275 years. The new company, Truist, was created with a vision to increase investment in innovative technology and create a distinctive client experience. The merger allowed Truist to access new markets and scale up, with the combined financial information of the two companies allowing for industry-leading numbers.
The transition to the full Truist experience was expected to take up to two years, with customers initially served through their respective BB&T or SunTrust branches, websites, mobile apps, and cards. Customers were also given free access to all Truist ATMs. However, the transition period saw issues and complaints from customers, with many experiencing problems accessing their money, and issues with new cards and pins.
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Truist is the sixth-largest bank in the US
Truist Financial Corporation (NYSE: TFC) is the sixth-largest bank in the US. It was formed by the merger of BB&T (Branch Banking and Trust Company) and SunTrust Banks, Inc.. The merger was first reported on February 7, 2019, and was completed on December 6, 2019. The merger was a combination of equals, with BB&T as the nominal survivor. The merged bank retained BB&T's stock price history and was headquartered in Charlotte, North Carolina, with significant operations in Winston-Salem.
Truist has a vision to make financial services better by leading with purpose, delivering an experience defined by advanced technology and a personal touch, and creating an impact on their clients, teammates, and communities. The company is committed to building and sustaining its communities. As part of the Truist Community Benefits Plan, $60 billion has been earmarked for lending or investment in low- and moderate-income (LMI) communities from 2020 to 2022. The plan includes goals for lending to LMI borrowers and small businesses, affordable housing development and community revitalisation, support of nonprofits, and participation in various service and outreach programs.
Truist is 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, commercial real estate, corporate and institutional banking, insurance, mortgage, payments, specialised lending, and wealth management. It serves approximately 10 million households with a leading market share in many high-growth markets in the country.
The new identity of Truist was unveiled by Interbrand, featuring the colour "Truist Purple", which represents the merger of equals by combining the burgundy of BB&T and the blue of SunTrust. The logo consists of a unique monogram made of two Ts, representing tech and touch, enclosed in a square that represents trust and security.
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Customers experienced issues and frustration following the merger
SunTrust Banks, Inc. ("SunTrust") and BB&T Corporation ("BB&T") merged to form Truist Financial Corporation ("Truist") in December 2019. The merger created the sixth-largest US commercial bank, serving approximately 10 million customers.
Following the merger, customers experienced issues and frustration. Many customers reported having trouble using their new debit cards, with some being locked out of their accounts and others experiencing fraudulent activity. Customers also reported long wait times when trying to resolve these issues, with some stating that they couldn't get through to anyone at Truist to address their concerns.
For example, Joe Hirsch reported issues with a home equity loan, with the check not clearing and the money not being returned to his equity line. Hirsch spent hours trying to reach bank representatives with no resolution. Marquenetta Clark-Bethune, a customer for six years, stated that Truist failed to notify her of a series of transactions during the merger, which left her account in the red. She also said that the bank threatened to close her account.
The issues and frustration experienced by customers were likely due to the complexity of merging the systems and regulations of two large banks. Dr. Ramnath Chellappa, associate dean of Emory University's Goizueta Business School, commented that growing pains were inevitable when two large banks come together.
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Truist is committed to investing in innovative technology
Truist Financial Corporation is the result of a merger between BB&T Corporation (Branch Banking and Trust Company) and SunTrust Banks. The merger was completed on December 6, 2019, and the new entity became the sixth-largest US commercial bank, serving approximately 10 million consumer households.
Truist's Chief Information Officer, Scott Case, emphasized their commitment to investing in new technologies, stating that quantum computing has the potential to transform how banking is done and solve complex problems. IBM, as a leader in quantum computing, provides invaluable collaboration and expertise to ensure Truist can leverage these technologies to their fullest potential.
Additionally, IBM will deploy dedicated teams with subject matter expertise to share knowledge in emerging payment technologies, artificial intelligence, automation, and business process transformation. Truist's Divisional Chief Information and Experience Officer, Ken Meyer, highlighted their focus on developing innovative solutions to complex challenges, delivering real value for their customers.
Truist's investment in technology is also reflected in their corporate and investment banking arm, Truist Securities. As a trusted advisor, they provide bespoke strategic advice and financial solutions to their clients in the Technology sector across mergers and acquisitions, capital markets, and risk management transactions.
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The merger was the biggest bank deal since the 2008 financial crisis
SunTrust Banks, Inc. and BB&T Corporation merged to become Truist Financial Corporation, or simply Truist, in December 2019. The merger was announced in February 2019, and the newly merged company was to be headquartered in Charlotte, North Carolina. The merger was the biggest bank deal since the 2008 financial crisis.
The 2008 financial crisis was characterized by a global panic and a series of bank bailouts. The crisis was triggered by a combination of risky mortgage lending, the proliferation of complex financial products, and a widespread loss of confidence in the financial system. Major institutions faced mounting losses, leading to a cascade of failures and near-collapses among some of the world's largest banks and investment firms. The crisis resulted in unprecedented bailouts, controversial interventions, and a fundamental reevaluation of the practices of large banks.
In the context of this financial turmoil, the merger of SunTrust and BB&T to form Truist stood out as the largest bank deal since 2008. The merged entity, Truist, became the sixth-largest US commercial bank, serving approximately 10 million consumer households and a full range of business clients. With 275 years of combined history, Truist boasts a strong market share in many attractive, high-growth markets across the country.
The merger was structured as a combination of equals, with BB&T as the nominal survivor, retaining its stock price history. However, SunTrust contributed significantly to the merged entity, including its history, clients, and market share. The integration process was expected to take time, with the merged bank initially operating under the separate BB&T and SunTrust names until their systems were fully streamlined.
The creation of Truist through the merger of SunTrust and BB&T marked a significant development in the US banking industry, reflecting the ongoing evolution and consolidation within the financial sector in the years following the 2008 financial crisis.
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Frequently asked questions
Yes, they are the same bank. SunTrust merged with BB&T in 2019 to become Truist Financial Corporation, one of the largest financial services holding companies in the US.
The merger caused some customers to lose access to their money and cards. There were also issues with unprocessed transactions, and some customers reported poor customer service.
SunTrust Banks is the combination of three companies: two banks, one based in Georgia and one in Florida, and an investment company. The three companies are the Trust Company of Georgia, Sun Bank, and The Robinson-Humphrey Company.
