Dealerships, especially ones located in the Southeast that have business relationships with SunTrust Banks and BB&T Corp., soon will be working with just one financial institution.
The banks announced on Thursday that both companies’ boards of directors have unanimously approved a definitive agreement to combine in an all-stock merger of equals valued at approximately $66 billion. According to a news release, the combined company will be the sixth-largest U.S. bank based on assets and deposits.
The banks highlighted a new corporate headquarters will be established in Charlotte, N.C., including an innovation and technology center to drive digital transformation. In the current home markets for both companies, the combined company said it will maintain the community banking center in Winston-Salem, N.C., and the wholesale banking center in Atlanta.
“This continued strong presence is also supported by the combined company’s commitment to increase the respective banks’ current levels of community investment,” officials said.
The merger is expected to close in the fourth quarter of 2019, subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of each company.
In a reflection of the equal contribution both banks bring to the new institution, officials explained the combined company will operate under a new name and brand, which will be determined prior to closing. The combined company’s board of directors and executive management team will be evenly split between the two institutions.
Kelly King, chairman and chief executive officer of BB&T and its bank subsidiary, will serve as chairman and chief executive officer of the combined company and its bank subsidiary until Sept. 12, 2021, after which time he will serve as executive chairman of both entities until March 12, 2022. King will continue to serve on the board of directors of the combined company until the end of 2023.
William Rogers Jr., chairman and chief executive officer of SunTrust, will serve as president and chief operating officer of the combined company and its bank subsidiary until Sept. 12, 2021, at which time he will become chief executive officer of the combined company and its bank subsidiary. He will also hold a seat on the combined company’s board of directors through his position as president and chief operating officer and then chief executive officer.
On March 12, 2022, Rogers will also become chairman and chief executive officer of the combined company and its bank subsidiary.
Upon the closing of the transaction, the board of directors of the combined company will consist of members equally split between BB&T and SunTrust’s current directors. David Ratcliffe, current lead director of SunTrust, will serve as lead director of the combined company until March 12, 2022, after which the lead director will be a legacy BB&T director.
The combined company’s executive management team will be comprised equally from SunTrust and BB&T. They include chief risk officer Clarke Starnes and chief financial officer Daryl Bible along with:
—Hugh (Beau) Cummins
“This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” King said. “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.”
Rogers added, “By bringing together these two mission- and purpose-driven institutions, we will accelerate our capacity to invest in transformational technologies for our clients. Our shared culture embraces the disruption of technology and we will take this innovative mindset to expand our leadership in the next chapter of these historic brands.
“With our geographic position, enhanced scale and leading financial profile, these two companies will achieve substantially more for clients, teammates, associates, communities and shareholders than we could alone,” Rogers went on to say. “I have tremendous respect for Kelly, his leadership team and the BB&T associates. We will leverage our respective strengths as we focus together on the future.”