CHARLOTTE, N.C. (The Charlotte Observer) - The $66 billion merger between BB&T and SunTrust banks received the last pieces of regulatory approvals Tuesday, allowing the largest bank merger since the financial crisis to move forward.
The Federal Reserve Board and Federal Deposit Insurance Corporation announced they were allowing the merger to move forward. The Federal Reserve said its approval is contingent on BB&T divesting 30 branches and more than $2.4 billion in deposits to “mitigate the competitive effects of the merger.”
In a statement, the banks said they expect to complete the merger Dec. 6, pending satisfaction of customary closing conditions.
The banks previously announced their intent to combine and create a new bank, to be called Truist, that would be based in Charlotte. The merger will create the sixth-largest bank in the U.S. by assets and deposits.
The new bank is expected to have approximately $442 billion in assets and $324 billion in deposits.
“We are pleased to have received regulatory approval to merge two strong companies with complementary business models and a high level of cultural alignment,” BB&T chairman and CEO Kelly King said in the statement.
“We’ll be even better together for our clients, teammates, communities and shareholders.”
The banks said in the statement that the combined bank will serve about 10 million U.S. consumer households, in addition to business clients.
The regulatory approval is contingent on BB&T divesting 30 branches and more than $2.4 billion in deposits to “mitigate the competitive effects of the merger.”
This month, the U.S. Department of Justice announced an agreement with the banks for the divestiture, which it says is the largest of its kind in a bank merger in over a decade.
As part of that agreement, the banks announced that First Horizon Bank would acquire 30 SunTrust branches in North Carolina, Virginia and Georgia, and assume $2.4 billion in deposits. None of the branches are located in Charlotte, but there are nine in Winston-Salem and 11 in the Durham-Chapel Hill area.
During congressional hearings about the merger, Democratic lawmakers had raised concerns that the combination of the institutions would harm consumers and result in another large bank that could hurt the U.S. economy if it were to fail.
This is a developing story. Check back for updates.