By Connie Morrison — SunTrust branches in Onancock and Cheriton are among 30 being sold to First Horizon Bank as part of the $66 billion BB&T/SunTrust merger approval announced Friday by the U.S. Department of Justice.
The DOJ conditioned its approval on the sale of 28 SunTrust branches “to resolve antitrust concerns arising from BB&T’s proposed merger with SunTrust,” according to a DOJ press release. Two more branches were added to the sale to bring the total number of branches being sold to 30. The branches have combined deposits of $2.4 billion and loans totaling $410 million.
BB&T and SunTrust agreed to divest SunTrust branches on the Eastern Shore of Virginia; Patrick County, Va.; Franklin County, Va.; Henry County/City of Martinsville, Va.; Lumpkin County, Ga.; Winston-Salem, N. C.; and Durham-Chapel Hill, N.C.
“The divestiture constitutes the largest divestiture in a bank merger in over a decade,” according to the DOJ press release.
First Horizon is planning to retain current SunTrust employees in the acquired branches when the transaction closes.
“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,” said SunTrust Chairman and CEO Bill Rogers in a Friday press release issued jointly by BB&T, SunTrust, and First Horizon Bank
First Horizon National Corp. parent company of First Horizon Bank, announced Nov. 4 it was acquiring IBERIABANK in a merger of equals.
That merger, combined with 30 SunTrust branches First Horizon is acquiring, will bring First Horizon assets to $77.4 billion, and will bring the number of First Horizon branches to 300.
The BB&T/Sun Trust merger still needs the approval of the Federal Reserve System Board of Governors and the Federal Deposit Insurance Corp. Once those approvals are obtained, the merger is expected to close in early 2020. The resulting bank will trade under the name Truist and will be the country’s sixth largest bank with assets of $441 billion, deposits of $324 billion, and $301 billion in loans.
The DOJ said in its press release that “As a result of the divestitures, the Justice Department will advise the Federal Reserve Board and the FDIC that it will not challenge the merger.”