In a press release, the companies said the combined company will be the sixth-largest U.S. bank based on assets and deposits. The new company will have about $442 billion in assets, $301 billion in loans and $324 billion in deposits, serving more than 10 million households in the U.S.
The deal is an all-cash merger of equals and is expected to close in Q4 2019. The new combined entity will be based in Charlotte, N.C., with BB&T’s current Chairman and Chief Executive Officer, Kelly S. King, taking the reins as the CEO of the two companies. He will remain in that role until September 12, 2021. SunTrust’s current CEO, William Rogers, will serve as president and COO until he takes over as CEO and chairman of the new entity at that time. The announcement also pointed to cost synergies of $1.6 billion annually by 2022. Once the deal is complete, BB&T shareholders will own 57 percent of the new entity.
“This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” said BB&T’s King in the press release announcing the deal. “It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services. 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.”
The banks said that once the deal closes, the combined company will operate under a new name and brand that is still to be determined. The board and executive management team will be evenly split between both banks. BB&T reported strong earnings last month, with notable contributions in revenue coming from non-traditional services such as insurance and investment banking.