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 two companies called it a merger of equals, valued at $66 billion.
SunTrust was already the region's largest bank before the merger announcement, with about 21 percent of the area's deposits.
The law raised the asset threshold that brings stricter regulatory supervision from $50 billion to $250 billion, effectively making M&A for mid-size banks more attractive.
"We have been expecting a step up in the pace of banking industry consolidation with the belief that the increasing importance of scale and branding coupled with regulatory support (i.e., the $700bn tailoring line) would drive bigger bank deals", Credit Suisse's Susan Katzke said in a note to clients.
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. More broadly, he argues, "the deal represents an acknowledgment of the growing need for scale in the USA banking business".
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The combined company will be rebranded and establish a new headquarters in Charlotte, North Carolina. Both have survived decades of bank merger mania by acquiring smaller banks and expanding beyond their home states.
A bank that got its start here in Eastern Carolina is merging with another financial institution to become the 6th largest bank in the country. To that end, an innovation and technology center will be based in Charlotte.
Kelly King, BB&T's chief executive officer, will be the CEO of the combined company until Sept.12, 2021, after which SunTrust CEO, William Rogers Jr. will take over. SunTrust has more of a commercial focus and larger clients, while BB&T has a substantial insurance business. GAAP and Cash EPS accretion per SunTrust share in 2021 is expected to be approximately 9% and 16%, respectively (based on Street estimates).
BB&T shareholders will own 57% of the new entity, while those of SunTrust receive 43%. After that, he'll serve a further six months as executive chairman.
King will serve as chairman and CEO of the combined business until September 12, 2021. The new company's board will be evenly split between the banks' current boards of directors.
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.