WINSTON-SALEM, N.C. -- BB&T, based in Winston-Salem, and SunTrust, based in Atlanta, are set to merge into one financial institution, according to a news release from BB&T.
Both companies' boards of directors unanimously approved an agreement to come together in an all-stock merger of equals valued at about $66 billion.
Combined, the company will become the sixth largest United States bank, based on assets and deposits.
BB&T reports that, as one company, they will service more than 10 million households across the nation.
In order to reflect the equal contributions each bank brings to this new company, they will merge under a new name and brand.
The name will be determine before closing.
This new company's corporate headquarters is set for Charlotte, featuring an Innovation and Technology Center to drive digital transformation.
They will continue to maintain the Community Banking Center in Winston-Salem and the Wholesale Banking Center in Atlanta.
“Many of their members have reached out to us personally this morning to show that they’re committed to the future of Winston-Salem as we continue to grow and evolve. But it’s also important that we focus on growing the next big BB&Ts, the next companies that are the next in the pipeline of our future Fortune 500 companies,” said Mark Owens, president and CEO of the Winston-Salem Chamber.
Winston-Salem Mayor Allen Joines says it’s disappointing to lose the “bragging rights” of having BB&T headquartered in the city, but believes there will be more jobs in Winston-Salem “once the dust settles.”
“Chris was very strong to reiterate the community investment piece of it, that will actually increase,” said Joines, of BB&T President Christopher Henson.
The United Way of Forsyth County says BB&T contributes about $2 million every year to their organization. Two of the company’s top people are on the United Way of Forsyth County Board, according to President and CEO Cindy Smith Gordineer.
“It will certainly change,” she said, referring to their relationship. “How exactly I don’t know but I remain very confident that they are going to continue to care a lot about Winston-Salem and Forsyth County.”
Smith Gordineer added that BB&T contributes their time, and talent, as well as being instrumental in their plan to end chronic homelessness.
“Continue to work with them, and make sure that they understand how important their support of our community has been and all of the great work it’s allowed to happen here, and I think that is probably the best use of our time,” she said.
The new company will be lead with BB&T Chairman and Chief Executive Officer Kelly S. King as the new company's chairman and chief executive officer until Sept. 12, 2021. SunTrust Chairman and Chief Executive Officer William H. Rogers Jr. will serve as president and chief operating officer.
Rogers will become CEO on Sept. 12, 2021 when King is set to become executive chairman.
On March 12, 2022, Rogers will become chairman as well as CEO, at which point King will continue to serve on the Board of Directors until the end of 2023.
BB&T Chairman and Chief Executive Officer Kelly S. King said in a statement:
"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future. 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."
William H. Rogers, Jr., Chairman and Chief Executive Officer of SunTrust, said in a statement:
"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. 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."
The Winston-Salem Chamber later released a statement saying Owens “and other community and economic leaders will continue to collaborate together, and with BB&T representatives, throughout the upcoming transition.”