BB&T shares rose 0.35% in pre-market trading (bbt), while SunTrust's stock (sti) was up 5.04%.
SunTrust shares were up 8.5% following the news, and BB&T's were higher by 4.8%.
BB&T Chairman and CEO Kelly S. King will perform those same roles in the new bank until 2021 - when current SunTrust Chairman and CEO William H. Rogers, Jr., will take over as CEO. BB&T shareholders will own about 57 percent and SunTrust shareholders will own the rest.
SunTrust shareholders will receive 1.295 shares of BB&T for each SunTrust share they own, the companies said in a joint statement on Thursday. "We spend $10 billion a year on technology". With our geographic position, enhanced scale and leading financial profile, these two companies will achieve substantially more for clients, teammates, associates, communities, and shareholders than we could alone. "We will leverage our respective strengths as we focus together on the future".
A Wachtell Lipton memo said the speed of the approvals was evidence of an "increasingly favorable regulatory environment for bank M&A". Cost cuts will come by eliminating duplicate administrative and technology services, and by closing bank branches.
While it may be tempting to explain the deal by pointing to the partial rollback of the postcrisis Dodd-Frank financial reform law that signed was into law last spring by President Donald Trump, the bulk of that law's measures were targeted at banks far smaller than the one that will be created by this deal, if it is approved by regulators.
William H. Rogers, Jr., Chairman and Chief Executive Officer of SunTrust will serve as President and Chief Operating Officer of the combined company and its bank subsidiary until September 12, 2021, at which time he will become Chief Executive Officer of the combined company and its bank subsidiary. He will remain on the board of directors until the end of 2023. Rogers will be president and chief operating officer.
Southern banking giants BB&T and SunTrust announced they would merge in a $66 billion deal, the first big bank merger since the chaos of the 2008 financial crisis.
The combined company's executive management team will be comprised equally from SunTrust and BB&T.
Klock said he believes that with attention of the SunTrust-BB&T deal, as well as the easier regulatory environment, more large bank mergers may be coming. They include Chris Henson, Clarke Starnes (Chief Risk Officer), Daryl Bible (Chief Financial Officer), Allison Dukes, Brant Standridge, David Weaver, Dontá Wilson, Ellen Fitzsimmons, Ellen Koebler, Hugh (Beau) Cummins, Joseph Thompson and Scott Case.