SunTrust Banks has agreed to sell 30 branches to First Horizon Bank involving a transfer of about $2.4bn in deposits.
The divestment is being carried out to fulfil regulatory requirements related to a previously announced merger between SunTrust and BB&T.
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Alongside, the deal will bolster First Horizon Bank’s presence in key growth markets in North Carolina, Virginia, Georgia.
With the branches, First Horizon Bank will assume around $410m in loans.
All SunTrust employees working in these branches are also expected to migrate to First Horizon Bank when the transaction closes.
First Horizon chairman and CEO Bryan Jordan said: “First Horizon is excited to welcome new employees and customers to our family.
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By GlobalData“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.”
SunTrust chairman and CEO Bill Rogers added: “First Horizon is recognised in the industry for its outstanding customer service and commitment to a positive culture.
“We are pleased to have found a buyer that will retain the jobs of talented teammates and continue to foster the strong client relationships we have established in these branches.”
The branch acquisition is pending regulatory nod and expected to complete in early next year.
In February, BB&T and SunTrust Banks signed a definitive agreement to merge their banking operations in a $66bn deal.
The transaction is said to create the sixth-largest lender in the country.
