Some Job Cuts Expected in SunTrust Deal

SunTrust Banks Inc. said that administrative positions could be affected but that it did not expect significant job cuts from its nearly $7-billion purchase of National Commerce Financial Corp., which is known for its outlets in supermarkets and retail stores.

The deal announced Sunday would make SunTrust the nation’s seventh-largest bank, with $148 billion in assets and $97 billion in deposits.

SunTrust spokesman Barry Koling said there would be job cuts among the companies’ 33,000 employees, mostly in back-office functions, such as administrative and operational positions.

Management changes are expected as well, but executives at Atlanta-based SunTrust and Memphis, Tenn.-based NCF declined to go into details during a conference call Monday with analysts.

Shares of SunTrust tumbled $5.08 to $61.80. National Commerce Financial fell 70 cents to $31.10. Both are traded on the New York Stock Exchange.

SunTrust Chief Executive L. Phillip Humann said the deal would expand SunTrust’s reach in the South and provide strong growth potential, especially in the supermarket and retail store segment where NCF specializes with in-store ATM machines and banking centers. The combined bank would operate as SunTrust.

“If we didn’t have the best footprint in banking before, I think you could make the case that we do now,” Humann said.

NCF is the holding company for National Bank of Commerce, Central Carolina Bank & Trust and NBC Bank.