Orlando Harmon
SunTrust Banks, Inc. was an American bank holding company with SunTrust Bank as its largest subsidiary. In February 2019, SunTrust Banks announced its pending purchase by BB&T for $28 billion, and the merger was closed in December 2019, forming Truist Financial Corporation. The Federal Deposit Insurance Corporation (FDIC) approved the merger, and Truist Bank is an FDIC member bank. This means that deposits are insured through the U.S. government, with depositors' money insured for at least $250,000 for certain account types.
| Characteristics | Values |
|---|---|
| SunTrust Bank's merger with BB&T | Approved by the Federal Deposit Insurance Corporation (FDIC) in 2019 |
| SunTrust Bank's new name | Truist Bank |
| Truist Bank's headquarters | Charlotte, NC |
| Truist Bank's FDIC membership | Yes |
| FDIC insurance coverage | Up to $250,000 per depositor, per FDIC-insured institution, and per ownership category |
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What You'll Learn
SunTrust Bank merged with BB&T to form Truist Bank
SunTrust Banks Inc. was formed in 1985 when the Trust Company of Georgia and Sun Banks Inc. merged. The Trust Company of Georgia was founded in 1891, while Sun Banks Inc. was formed in 1973. SunTrust Banks, therefore, has a long history of over 130 years.
On February 7, 2019, SunTrust Bank and BB&T Corporation announced their intention to merge. The merger was approved by the Federal Deposit Insurance Corporation (FDIC) Board of Directors. The merger was completed on December 6, 2019, with the new entity being called Truist Bank. Truist Bank is headquartered in Charlotte, North Carolina, and is the sixth-largest bank in the US by assets and deposits.
The $66 billion merger between SunTrust and BB&T was the largest bank merger since the financial crisis a decade ago. The new entity, Truist, is one of the nation's largest financial services holding companies, offering a wide range of services, including retail, small business and commercial banking, asset management, capital markets, commercial real estate, corporate and institutional banking, insurance, mortgage, payments, specialized lending, and wealth management.
The merger is expected to achieve $1.6 billion in net cost savings by the end of 2022, partly through the closure of 800 branches and office consolidation. Truist expects the transition to the new brand to be completed in about two years. In the meantime, clients will continue to be served through their respective BB&T or SunTrust branches, websites, mobile apps, financial advisors, and relationship managers.
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Truist Bank is FDIC-insured
Truist Bank was formed in 2019 after the merger between Branch Banking and Trust Company (BB&T) and SunTrust Bank. The FDIC approved the merger, which resulted in the creation of the sixth-largest US lender. The merger was the biggest bank deal since the 2008 financial crisis.
As an FDIC member bank, Truist Bank offers its customers protection for their deposits. The FDIC provides insurance coverage of up to $250,000 for each depositor, per FDIC-insured institution, and per ownership category. This means that if Truist Bank were to fail, the FDIC would protect depositors' money up to the insured amount.
It is important to note that the $250,000 coverage limit applies per depositor and per institution, so customers with multiple accounts at Truist Bank would be covered up to $250,000 in total across all their accounts. Additionally, distinct coverage is offered for deposits in different account ownership categories, such as individual and joint accounts.
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FDIC insures deposits at banks and savings associations
SunTrust Bank merged with Branch Banking and Trust Company (BB&T) in 2019 to form Truist Bank. The Federal Deposit Insurance Corporation (FDIC) approved this merger, and Truist Bank is FDIC-insured.
The FDIC is an independent agency of the United States government that insures deposits at banks and savings associations. As of June 30, 2019, the FDIC insured deposits at 5,303 banks and savings associations across the nation. The FDIC was created by Congress in 1933 to restore and maintain stability and public confidence in the nation's financial system. It insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
The FDIC provides deposit insurance to bank customers, protecting them against the loss of their insured deposits in the event that an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government. Deposit insurance is automatic and free for any deposit account opened at an FDIC-insured bank, with deposits insured up to at least $250,000 per depositor, per bank, per ownership category. This limit applies to most common account types, including checking and savings accounts. The FDIC provides tools like the BankFind tool and the Electronic Deposit Insurance Estimator (EDIE) to help consumers identify FDIC-insured institutions and understand their deposit insurance coverage.
FDIC deposit insurance coverage varies depending on the ownership category and the type of account. For example, employee benefit plan deposits, such as health and welfare plans, are typically insured up to $250,000 per bank. Accounts owned by corporations, partnerships, or unincorporated associations, including churches and community organizations, are insured separately from the personal deposits of their owners or members and are combined across all accounts at the same bank, with total deposits insured up to $250,000. As of April 1, 2024, the maximum insurance coverage for a trust owner with five or more beneficiaries is $1,250,000 per owner for all trust accounts held at the same bank.
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FDIC insurance covers up to $250,000 per depositor
SunTrust Bank merged with BB&T in 2019 to form Truist Bank, which is headquartered in Charlotte, North Carolina. The merger was approved by the Federal Deposit Insurance Corporation (FDIC), which insures deposits at banks and savings associations in the US.
The FDIC is an independent agency of the federal government that insures depositors at member banks for at least $250,000 for certain account types. This means that if a bank fails, the FDIC will protect account holders and ensure they receive their deposits back, up to $250,000. This insurance is automatic and free for customers, as insured financial institutions fund the FDIC's operations, not federal tax dollars.
The $250,000 limit applies per depositor, per insured bank, and for each account ownership category. This means that a depositor with multiple accounts at the same bank will still only be covered up to $250,000 in total. However, a depositor with accounts at multiple banks could be covered up to $250,000 at each bank. Additionally, a depositor may qualify for insurance coverage above $250,000 in some cases.
The FDIC provides a tool called the Electronic Deposit Insurance Estimator on its website to help depositors estimate their coverage. Depositors can also search for their bank using the FDIC's BankFind tool to confirm if it is FDIC-insured.
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The Federal Deposit Insurance Corporation was established in 1933
SunTrust Bank merged with Branch Banking and Trust Company (BB&T) in 2019, forming Truist Bank. The Federal Deposit Insurance Corporation (FDIC) approved this merger. The FDIC is a United States government corporation that provides deposit insurance to depositors in American commercial banks and savings banks. The FDIC was established in 1933 by the Banking Act of 1933, also known as the Glass-Steagall Act, which was enacted during the Great Depression.
The Great Depression was the longest and deepest economic downturn in the history of the United States. It was caused by a series of bank panics in 1930 and 1931, which occurred after the stock market crash of 1929. This crash led to people withdrawing their money from banks, resulting in a wave of bank failures across the country. Between 1929 and 1933, over 4,000 American banks collapsed, causing a loss of around $1.3 billion to depositors. The FDIC was created to restore trust in the American banking system and protect bank depositors. From 1893 to 1933, 150 bills were proposed in Congress to address the issue of deposit insurance, as bank instability was a significant concern even before the Great Depression.
The FDIC is funded through insurance assessments collected from its member depository institutions, which are held in the Deposit Insurance Fund (DIF). This fund is used to reimburse depositors if member institutions fail. The FDIC insures deposits in member banks up to $250,000 per ownership category, and since its inception in 1933, no depositor has lost any FDIC-insured funds. The FDIC promotes the safety and soundness of banks and savings associations by identifying, monitoring, and addressing the risks they face.
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Frequently asked questions
SunTrust Bank merged with BB&T in 2019 to form Truist Bank, which is a member of the Federal Deposit Insurance Corporation (FDIC) and is therefore federally insured.
The FDIC is an independent agency of the federal government that insures depositors at member banks for at least $250,000 for certain account types. It was created in 1933 to restore public confidence in the nation's banking system following bank failures during the Great Depression.
If an FDIC-insured bank fails, the FDIC will protect account holders and keep their money safe. The FDIC insures up to $250,000 per depositor, per FDIC-insured institution, and per ownership category.
If a bank is FDIC-insured, it will have the FDIC logo on its website. You can also use the FDIC's BankFind tool to search for your bank.
SunTrust Banks, Inc. was an American bank holding company with SunTrust Bank as its largest subsidiary. It was founded in 1891 in Atlanta, Georgia, and as of September 2016, it operated 1,400 bank branches and 2,160 ATMs across 11 southeastern states and Washington, D.C. In February 2019, SunTrust announced its pending purchase by BB&T, and the merger was completed in December of that year, forming Truist Financial Corporation.
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