The $66 billion merger between BB&T and SunTrust Banks is now nearing the final stages, as the Department of Justice announced Friday that it has approved the banks’ merger, but ordered the banks to divest 28 branches as a condition of that approval.
In order to resolve antitrust concerns raised by the “merger of equals,” the DOJ is ordering BB&T and SunTrust, which will soon be known collectively as Truist Bank, to sell off 28 branches in North Carolina, Virginia, and Georgia with approximately $2.3 billion in deposits.
According to the DOJ, this divestiture represents the largest such maneuver in a bank merger in more than a decade.
Under the agreement with the DOJ, the banks agreed to divest SunTrust branches in the Eastern Shore, Virginia; Patrick County, Virginia; Franklin County, Virginia; Henry County/City of Martinsville, Virginia; Lumpkin County, Georgia; Winston-Salem, North Carolina; and Durham-Chapel Hill, North Carolina.
According to the DOJ, the divested assets will include all deposits and loans associated with the divested branches.
“Banks and the financial sector are at the heart of our economy,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement ensures that banking customers across Virginia, North Carolina, and Georgia will continue to have access to competitively priced banking products, including loans to small businesses while preserving the investments in innovation and technology this merger is expected to generate.”
As for what will happen to the branches in question, BB&T and SunTrust announced Friday that they are selling those 28 branches, along with two others, to First Horizon Bank.
According to the banks, First Horizon Bank will acquire 30 branches from SunTrust. As part of the agreement, First Horizon will assume approximately $2.4 billion in deposits for a deposit premium of 3.4%, and will purchase approximately $410 million in loans.
The banks expect the deal to go through in early 2020, and First Horizon expects to retain all current SunTrust employees in the acquired branches.
“First Horizon is excited to welcome new employees and customers to our family,” said Bryan Jordan, First Horizon’s chairman and CEO. “We are proud of the tradition of trust we have earned for more than 155 years and look forward to working with BB&T and SunTrust to design a seamless onboarding experience.”
While the DOJ has conditionally approved the merger, pending the successful completion of the divestiture, the merger still needs to be approved by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corp.
But the DOJ said Friday that it will advise the Fed and the FDIC that it will not challenge the merger as long as the banks satisfy any conditions raised by any of the regulatory bodies.
As for SunTrust and BB&T, they can now move forward toward their future as Truist.
“First Horizon is recognized in the industry for its outstanding customer service and commitment to a positive culture,” said SunTrust Chairman and CEO Bill Rogers. “We are pleased to have found a buyer that will retain the jobs of talented teammates and continue to foster the strong client relationships we have established in these branches.”
The companies did not disclose the financial terms of the acquisitions by First Horizon.
Here’s a full list of the branches that are being divested:
Winston-Salem, NC Fed Banking Market
- Medical Park, 2006 S. Hawthorne Rd., Winston-Salem, NC 27103
- Mocksville Yadkinville Road, 880 Yadkinville Rd., Mocksville, NC. 27028
- Yadkinville State Street, 200 S. State St., Yadkinville, NC 27055
- Reynolda Road, 2801 Reynolda Rd., Winston-Salem, NC 27106
- Hillsdale, 5361 US Highway 158 Advance, NC 27006
- Walkertown Main, 2820 Old Hollow Rd., Walkertown, NC 27051
- First Stratford, 101 South Stratford Rd., Winston-Salem, NC 27104
- Kernersville, 1000 S. Main St., Kernersville, NC 27284
- Ogburn Station, 4306 N. Liberty St., Winston-Salem, NC 27105
Durham-Chapel Hill, NC Banking Market
- South Square, 4235 University Drive, Durham, NC 27707
- Triangle Park, 2008 East NC Highway 54, Durham, NC 27713
- Croasdaile, 1821 Hillandale Rd., Durham, NC 27705
- Riverview, 5112 N. Roxboro Rd., Durham, NC 27704
- Northgate Mall, 1516 N. Gregson St., Durham, NC 27701
- Bethesda Point, 1611 S. Miami Blvd., Durham, NC 27703
- University Mall, 201 South Estes Dr, Chapel Hill, NC 27514
- West Franklin, 126 West Franklin Street, Chapel Hill, NC 27516
- Hillsborough Central, 260 S. Churton St., Hillsborough, NC 27278
- Pittsboro, 88 Hillsboro St. Pittsboro, NC 27312
- South Madison Boulevard, 207 S. Madison Blvd., Roxboro, NC 27573
Roanoke, VA Fed Banking Market
- Smith Mountain Lake, 13264 Booker T Washington Hwy., Hardy, VA 24101
- Main & Court, 260 S. Main St., Rocky Mount, VA 24151
Martinsville, VA Banking Market
- Collinsville, 3000 Virginia Ave, Collinsville, VA 24078
- Village of Martinsville, 250 Commonwealth Blvd., W. Martinsville, VA 24112
- Patrick County, 114 W. Blue Ridge St., Stuart, VA 24171
Eastern Shore, VA-MD Banking Market
- Onancock, 62 Market St., Onancock, VA 23417
- Cheriton, 21263 Lankford Hwy., Cape Charles, VA 23310
South Boston, VA Fed Banking Market
- South Boston, 410 Main St., South Boston, VA 24592
Wayne County, GA Fed Banking Market
- Jesup, 175 S. Macon St., Jesup, GA 31545
Lumpkin County, GA Fed Banking Market
- Dahlonega Main, 111 S Chestatee St., Dahlonega, GA 30533