The impending merger between SunTrust and BB&T will not result in the closing of one of those bank branches in Roxboro as some had feared.
SunTrust and BB&T announced Friday their plans to divest of about 30 SunTrust branches as part of the requirements set out by regulators overseeing the sale. The Roxboro branch of SunTrust is among the locations included in that divestiture.
The Department of Justice, which typically has final jurisdiction over large mergers, has said it will not challenge the merger between SunTrust and BB&T as long as both companies meet the requirements set out by regulatory agencies.
A company called First Horizon Bank is buying up the jettisoned branches. The sale includes deposits and loan portfolios from each of the affected branches. Company officials have said all current SunTrust employees will be retained as part of the sale.
“We wanted our bankers in those communities to be able to tell their customers that everything was going to be OK and that they were going to be there,” said First Horizon executive vice president Tammy LoCascio. “We believe its very important to communicate that with our customers. These are very good branches that have done a good job of investing themselves into the community.”
First Horizon officials have said they expect to gain $410 million in loans and roughly $2.4 billion in deposits through the sale.
The branches First Horizon will purchase are in North Carolina, Virginia and Georgia. A cluster of SunTrust banks in the Triangle is among those branches which make up the sale, including six Durham locations, three Chapel Hill branches and another in Hillsborough in addition to the Roxboro branch. The sale also includes the South Boston, Va. branch of SunTrust.
Terms of the sale were not disclosed.
Memphis, Tenn.-based First Horizon Bank, which has a small footprint in North Carolina, will increase its presence in the state significantly with the move. The company has said it will retain all current SunTrust employees through the sale.
“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.”
The divestiture sale is expected to be complete by January, 2020. The $66 billion merger between BB&T and SunTrust, which create a new bank called Truist, is expected to be concluded later in the year following approval by the Federal Reserve and the FDIC.