BB&T (BBT - Get Report) and SunTrust Banks (STI - Get Report) unveiled a $66 billion all-stock merger Thursday, Feb. 7 that would create the sixth-biggest commercial bank in the United States, TheStreet's Martin Baccardax reported.

SunTrust said the deal would create a company with $442 billion in assets, as well as $324 billion in deposits with a customer base of around 10 million American household. The all-stock deal will see SunTrust investors receiving 1.295 shares of BB&T for each stock they own, as well as a 5% increase in their dividend, with BB&T owning 57% of the combined group's $28.24 billion in equity to 43% for SunTrust.

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"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 CEO Kelly King. "It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services. Together with Bill's leadership and our new SunTrust teammates, we're going to bring the best of both companies forward to serve our clients and communities."

In his Real Money column Friday, Feb. 8, Jim Cramer wrote about the reason for this merger. Cramer believes that it's about digital defense and offense. Read the full column here

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So, what does this mean for the banking sector? Jim Cramer broke it down after the announcement Thursday.

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