AmSouth merges with Regions Financial
Published: Thursday, June 1, 2006 at 6:01 a.m.
Last Modified: Wednesday, May 31, 2006 at 10:31 a.m.
AmSouth Bancorporation, which this spring added two branches to its 2-year-old bank in Gainesville, has merged with Regions Financial Corp. Both are headquartered in Birmingham, Ala.
In an announcement released Thursday, the combined companies will form one of the 10 largest bank holding companies in the United States. The Regions name will be used.
The merger will have no effect on how AmSouth banks will be run here, said Jerri Franz, senior vice president and Florida public relations director.
"The closing won't occur until the fourth quarter of this year, and it will be business as usual for our banks and our customers," she said.
The transaction involved a $9.8 million trade of stock for AmSouth - 0.7974 Regions shares for each AmSouth share.
The new company will have almost $140 billion in assets, hold nearly $100 billion in deposits and operate 2,000 branches in 16 states across the South, Midwest and Texas. Combined, the two companies employ 37,000 people.
The combined company expects to realize cost savings of $400 million pre-tax. This would probably be realized by closing 150 branches and losing 10 percent of its employees through layoffs or attrition.
Franz said it was her understanding that branch closings will be where the two banks overlap. Regions and AmSouth have 230 branches within a mile of each other in Alabama.
Regions has a small presence in Florida, with banks mainly in the Volusia-Brevard county areas and in Orlando.
AmSouth announced in March that it planned to invest more than $150 million for 54 branches to open in Florida by the end of this year. Spokeswoman Franz said the merger will not change that.
Jackson W. Moore, 57, chairman, president and chief executive officer of Regions, will be chairman of the combined company. C. Dowd Ritter, 58, chairman, president and chief executive officer of AmSouth, will be the president and chief executive officer of Regions.
Marina Blomberg can be reached at (352) 374-5025 or firstname.lastname@example.org.
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