WASHINGTON–The FDIC has unanimously approved the merger application submitted by Bank Branching and Trust Company (BB&T) in Winston-Salem, N.C., to merge with SunTrust Bank of Atlanta.
The resulting bank will operate under BB&T's charter and will be called Truist Bank, although it is being sued by Truliant FCU over the similarity of the name.
The merged bank will be headquartered in Charlotte, N.C.
“When reviewing applications under the (Bank Merger Act), the FDIC considers statutory factors, such as the transaction's effect on competition, the financial and managerial resources and future prospects of the existing and proposed institutions, the convenience and needs of the communities to be served, the risk to the stability of the U.S. banking or financial system, and the anti-money laundering records of the institutions involved,” the agency said in a statement. “The application satisfied those requirements as well as the additional requirements applicable to interstate mergers under section 44 of the Federal Deposit Insurance (FDI) Act. The FDIC exercised its authority under section 18(d) of the FDI Act to permit SunTrust Bank's branches to be established as branches of Truist Bank.”
Branch Divestiture
The FDIC said the approval is conditional upon the compliance of Truist Bank to divest 30 branches and $2.4 billion in associated deposits; and the applicant's commitment to provide post-merger updates describing any material changes to its legal structure since the submission of BB&T's last insured depository institution resolution plan, including changes that could impact information technology integration.
Meanwhile, as CUToday.info reported here, the credit union is suing the bank over the proposed name, alleging it will cause market confusion.