BB&T, SunTrust outline $60B post-merger benefits plan
Plan focuses on communities, affordable housing small business, financial wellness
WINSTON-SALEM, NC >> The proposed merger of BB&T Corp. and SunTrust Banks is not expected to be completed until this fall when the two companies will become Truist Bank.
As the process moves forward, however, the companies have outlined a plan to lend or invest $60 billion to low- and moderate-income (LMI) borrowers and in low- and moderate-income communities.
The Truist Bank Community Benefits Plan would make the investments over a three year period — from 2020 to 2022, according to a press release.
“The Community Benefits Plan exemplifies what Truist will stand for and how it will support local communities in the years to come,” Kelly S. King, BB&T chairman and chief executive officer, said in the release. “Both BB&T and SunTrust have long legacies of serving the community, but together as Truist, we will be uniquely positioned to invest in ways we never could on our own.”
The $60 billion threeyear commitment includes:
• $31 billion for home purchase mortgage loans to low- and moderate-income borrowers, low- and moderate-income geographies, minority borrowers and/or majority-minority geographies.
• $7.8 billion for lending to small businesses and to support the growth of businesses with revenues less than $1 million.
• $17.2 billion in Community Development Lending (CDL) to support affordable housing development, small business growth lending to nonprofits that support the low- and moderate-income community.
• $3.6 billion in Community Reinvestment Act (CRA) Qualified Investments and Philanthropy, of which $120 million will be designated for Community Reinvestment Act-qualified philanthropic giving.
Once the merger is completed, Truist plans to open at least 15 new branches in low- and moderate-income and/or majority minority communities in its geographical footprint, which covers 17 states including Pennsylvania and New Jersey, as well as the District of Columbia.
“Truist is creating the premier financial institu
“With the merger of equals, our goal is to create a bold, transformative organization that delivers a smarter and easier client experience through technology and human connection.” — Kelly S. King, BB&T chairman and CEO
tion to serve the diverse needs of our clients and communities, and this plan is an initial stake in the ground as to our values and commitments.,” SunTrust chairman and chief executive officer William H. Rogers Jr., said in the release.
The companies worked with the National Community Reinvestment Coalition to draft the plan. The coalition is an association of more than 600 community-based organizations that promote access to essential banking services, affordable housing, entrepreneurship and job creation for working families.
According to Jesse Van Tol, CEO for the National Community Reinvestment Coalition, bank mergers often proceed without details provided on the impact the mergers will have on communities.
“However, BB&T and SunTrust showed tremendous leadership by participating in a collaborative process with NCRC and our community-based member organizations to establish the largest-to-date community benefits plan,” Von Tol said in the release.
Truist will work with a Community Advisory Board composed of representatives of nonprofit organizations serving low- and moderate-income communities, to provide updates on the progress of the plan, according to the companies.
The proposed merger of equals — valued at approximately $66 billion — was announced in February 2019 and will result in the sixth-largest U.S. bank holding company. In June it was announced the new company will take the name Truist Financial Corp. and the combined bank will be named Truist Bank.
The merger is expected to close in the third or fourth quarter of 2019, subject to customary closing conditions, including regulatory approvals and approval of both companies’ shareholders.
For more information about the combined companies visit https://thepremierfinancialinstitution. com.
Based in Winston-Salem, N.C., BB&T operates more than 1,800 financial centers in 15 states (including Pennsylvania) and Washington, D.C.
BB&T expanded its footprint in the Greater Philadelphia region in 2015 and 2016, with the acquisitions of Susquehanna Bank in August 2015 for $2.5 billion and National Penn Bancshares in April 2016 for $1.8 billion. For more information about BB&T visit www. bbt.com.
Headquartered in Atlanta, Ga., SunTrust Banks Inc. operates throughout the Southeast and Mid-Atlantic states. For more information visit www.suntrust.com.