BB&T to Merge With SunTrust in $66 Billion All-Stock Deal

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Following the close of the deal, which is expected to happen in the fourth quarter, shareholders of North Carolina-based BB&T will own roughly 57% of the company while SunTrust’s investors will own the remaining 43%. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. If a stock’s Q1 estimate revision decreases leading up to its earnings release, that’s usually a negative sign, whereas an increase is typically a positive sign.

  1. When the merger is completed, the combined bank will have $442 billion in assets, which will make it the sixth-largest U.S. commercial bank.
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When logged into the site using either a free or Premier membership, you can change the amount of data to display using the data selector. It may come as a surprise, but the combined bank will operate under a new yet-to-be-announced name. The combined bank will be headquartered in Charlotte, North Carolina, which is currently home to neither of the banks. logistics software management erp logistics system BB&T is based in Winston-Salem, North Carolina, and SunTrust is based in Atlanta. Charlotte is a major banking city, home to Bank of America and a large portion of Wells Fargo’s operations. With that said, it’s worth noting that the actual value of the deal remains to be seen, since it depends on BB&T’s share price at the time the merger is finalized.

Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. Once again, cash flow is net income plus depreciation and other non-cash charges. Growth traders and investors will tend to look for growth rates of 20% or higher.

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He will also hold a seat on the combined company’s Board of Directors through his position as President and Chief Operating Officer and then Chief Executive Officer. On March 12, 2022, Rogers will also become Chairman and Chief Executive Officer of the combined company and its bank subsidiary. This widget shows the number of times this symbol reached a new low price for specific periods, from the past 5-Days to the past 20-Years. This widget shows the number of times this symbol reached a new high price for specific periods, from the past 5-Days to the past 20-Years.

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Which brand name will the new bank use? BB&T or SunTrust?

“The BB&T-SunTrust merger will open more eyes on the potential for more sizable bank M&A to occur,” Jefferies analyst Ken Usdin wrote in a note to clients. “Scale is the game here, as BBT-STI were both eventually going to cross into the $250 billion to $750 billion asset bucket.” “It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services,” he said. Highlights important summary options statistics to provide a forward looking indication of investors’ sentiment. RBC Capital Markets served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to BB&T in this transaction. Goldman Sachs and SunTrust Robinson Humphrey served as financial advisors and Sullivan & Cromwell served as legal counsel to SunTrust in this transaction.

In a reflection of the equal contribution both banks bring to the new institution, the combined company will operate under a new name and brand, which will be determined prior to closing. The combined company’s board of directors and executive management team will be evenly split between the two institutions. A new corporate headquarters will be established in Charlotte, NC, including an Innovation and Technology Center to drive digital transformation.

Bancorp, which will be just slightly larger than the combined BB&T and SunTrust operation. For context, the smallest of the big four has close to $2 trillion in assets, so it’s fair to say that the top four will stay the same for the foreseeable future. However, while this could be interesting for investors, Boord said he is a bit of a contrarian. Provides a general description of the business conducted by this company.

BB&T Corporation (BBT)

The Cash/Price ratio is calculated as cash and marketable securities per share divided by the stock price. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report. Ideally, an investor how to buy prl would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year.

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It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity. “This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” said BB&T Chairman and Chief Executive Officer Kelly S. King. Site visitors (not logged in) see 3-months of daily price information for any symbol that Barchart carries.

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