Truist Bank Merger Creates New Financial Giant

The Truist Bank merger is a significant development in the financial industry, creating a new giant in the process. The merger was announced in 2020 and completed in 2021.

SunTrust Bank and BB&T, two major banks, merged to form Truist Bank. The combined entity has over 275,000 employees and more than 2,500 branches.

The merger created a new company with a total of $545 billion in assets. This is a massive increase from the $434 billion in assets SunTrust Bank had before the merger.

The new company operates in 11 states, serving over 10 million customers.

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The Truist Bank merger is a significant deal that has finally come to fruition. BB&T has finalized its $28 billion purchase of SunTrust, forming the sixth-largest bank in the nation.

The transition to the new Truist brand is expected to take up to two years, with the company planning to roll out its logo and branding early next year.

Truist will be headquartered in Charlotte, North Carolina, where 2,000 former BB&T and SunTrust employees will relocate. This move will likely have a significant impact on the local community.

Here's a quick rundown of the key details:

The truist bank merger has resulted in the largest bank in the US by deposits. The new bank will have over 5,000 ATMs and 2,500 branches.

With the merger, customers of both banks will have access to a wider range of services and products. This includes online and mobile banking, as well as a broader range of loan and deposit products.

The merged bank will also have a more extensive network of ATMs and branches, making it easier for customers to access their accounts and conduct financial transactions.

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The post-merger period is a critical time for any organization. It's a time of intense change and uncertainty, but also a time of great opportunity.

In the first 100 days after a merger, 75% of employees are likely to leave the company, which is a staggering statistic.

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During this period, it's essential to establish a clear vision and strategy for the merged organization. This will help to provide direction and purpose for employees, customers, and stakeholders.

A study found that companies that communicate effectively during a merger are 50% more likely to achieve their goals. Communication is key to success in this period.

The merged organization will need to integrate its systems, processes, and cultures. This can be a complex and time-consuming process, but it's essential for long-term success.

According to research, 80% of mergers fail to achieve their expected financial benefits. However, with careful planning and execution, it's possible to achieve significant cost savings and revenue growth.

Truist Financial Corporation received the highest possible overall rating of "Outstanding" from the Federal Deposit Insurance Corporation.

This rating is a testament to the company's commitment to investing in the communities it serves.

The "Outstanding" rating is the highest rating a bank can receive under the Community Reinvestment Act.

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Truist's insurance division has been a key area of growth for the company, and its history of strategic acquisitions has played a significant role in its success.

In 1995, the insurance services division made 6 acquisitions of insurance companies based across North Carolina, and by 1999, it had acquired 24 insurance companies in North Carolina, 15 in Virginia, 3 in South Carolina, and 1 in Georgia. This rapid expansion continued over the years, with the division completing 60 mergers since 1999.

The acquisitions have significantly boosted the division's revenue, with BB&T's insurance division growing to be the sixth largest broker in the US and the seventh largest in the world with $1 billion in annual revenue by 2010. The division has continued to expand its services, acquiring companies such as CRC in 2002, Burkey Risk Services in 2008, and Oswald Trippe in 2009.

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Acquisitions can be a game-changer for businesses, but they also come with risks. Companies like Google and Amazon have made successful acquisitions, such as Google's purchase of Android in 2005 for $50 million.

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A well-executed acquisition can expand a company's offerings, increase market share, and provide access to new technologies. This is what happened when Facebook acquired Instagram in 2012 for $1 billion.

However, not all acquisitions are successful, and some can even lead to financial losses. For example, Microsoft's acquisition of Nokia's mobile division in 2014 resulted in a $7.6 billion write-down.

A key factor in a successful acquisition is cultural alignment between the two companies. This is what made the acquisition of LinkedIn by Microsoft in 2016 a success, as both companies shared similar values and work cultures.

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In 1922, BB&T started its insurance services business, which was struggling in the late '80s and early '90s.

By 1995, the division made 6 acquisitions of insurance companies across North Carolina, and by 1999, it had acquired 24 insurance companies in North Carolina, 15 in Virginia, 3 in South Carolina, and 1 in Georgia.

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The division completed 60 mergers since 1999 and became the sixth largest broker in the US and the seventh largest in the world with $1 billion in annual revenue by 2010.

BB&T acquired CRC in 2002, whose businesses include specialty and high-risk clients, and also acquired TAPCO and Southern Cross, which were merged into CRC.

In 2008, the division acquired Burkey Risk Services and UnionBanc Insurance Services, and in 2009, it acquired Oswald Trippe.

By 2010, BB&T's insurance division had grown significantly, and in 2011, it acquired Liberty Benefit Insurance Services, an agency operating in California.

The division continued to expand, acquiring the life insurance, property, and casualty insurance divisions of Crump Group in 2012, and Woodbury & Co., an insurance broker operating in the Carolinas, in 2014.

In 2014, BB&T also acquired Caledonian Insurance Group, a company specializing in insurance brokerage services for the aviation industry.

The division continued to grow, acquiring Napco LLC, a broker of catastrophic commercial insurance, in 2015, and American Coastal Insurance, which increased BB&T's ownership in AMRisc, as part of the acquisition of Bank of Kentucky.

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In 2018, the insurance service division announced it was purchasing Regions Insurance Group, which was owned by Regions Financial Corporation, and the purchase was completed in July 2018.

This acquisition significantly added the insurance division's retail and whole lines of business, providing BB&T Insurance Services with 60,000 new clients in multiple states.

In 2020, BB&T Insurance Holdings rebranded as Truist Insurance Holdings and moved its headquarters to Charlotte, North Carolina inside the Truist Center.

By 2020, insurance services accounted for 10% of Truist's revenue, and the company's goal is to have the insurance division eventually make up 14% to 15% of Truist's revenue.

In 2024, Truist Financial agreed to divest the insurance business to an investor group led by Clayton, Dubilier & Rice and Stone Point Capital.

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