Wachovia Completes Southtrust Merger Integration
Proven integration model delivers predicted results, lower costs
CHARLOTTE, N.C. – Wachovia Corp. (NYSE: WB) has successfully completed the merger integration of SouthTrust systems, products and signs to the Wachovia platform. The combined company offers customers more ways to bank – including branches, ATMs, telephone and online – as well as an increased product line across key businesses. Final merger one-time costs are estimated to come in at least $85 million under the original target of $700 million.
“Superior merger integration has become a hallmark for Wachovia” said Ken Thompson, Wachovia chairman and CEO. “Over the past 18 months, we have carefully planned and executed every detail of the SouthTrust integration. The result is that we have completed the work on time, and with lower costs than we initially expected. Most important, our intense focus on customers enabled us to deliver consistently high service throughout the transition.”
The SouthTrust acquisition gives Wachovia a leading market position in the Southeast, extends its footprint into high-growth Southern markets and creates immediate scale in the fast-growing Texas market.
The SouthTrust/Wachovia merger, announced June 21, 2004, was managed by a project team of more than 200 employees and led by Merger Executives Steve Boehm (Wachovia) and Frank Schmidt (SouthTrust.)
“As expected, we’ve delivered on our promise of a seamless integration; though it is important to recognize that each effort is unique,” said Boehm. “Through challenges like Hurricanes Katrina and Rita, our teammates from both companies stayed focused on employees, customers and the task at hand to deliver one of the best integrations in either company’s history.”
Wachovia responded to the Gulf Region hurricanes with a total donation of $2.9 million, an additional $800,000 in personal donations by employees, and numerous crisis assistance programs for employees and customers.
The merger also included a $75 billion community commitment over five years in affordable mortgages, small business, community development and low-to moderate-income loans and philanthropic activities. The program, which builds on a legacy of community excellence and extends Wachovia’s community development reach into new markets, is on track to exceed the first year’s goal and meet or exceed the long-term commitment.
SouthTrust conversion activities included:
* 1.2 million customer relationships, including 167,000 businesses
* 2.4 million accounts, including 1.9 million deposit accounts
* more than 700 branches
* nearly 900 ATMs
* 12,000 signs
* 594,000 employee training hours
* more than 20 million customer communications
* 563 systems platforms integrated into Wachovia systems
* enhanced online services through Wachovia.com.
Wachovia continues its current efforts to integrate the acquired international correspondent banking business of Union Bank of California and has pending the acquisitions of Westcorp and WFS Financial Inc (auto finance and California retail banking) and AmNet Mortgage.
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with banking operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $532.4 billion, market capitalization of $73.9 billion and stockholders’ equity of $46.8 billion at September 30, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 13 million household and business relationships primarily through 3,138 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 702 offices in 49 states and five Latin American countries. The Corporate and Investment Bank serves clients in selected industries nationwide. Global services are offered through 40 offices around the world. Online banking and brokerage products and services also are available through Wachovia.com.
The proposed merger among Wachovia, Westcorp and WFS Financial Inc will be submitted to Westcorp’s and WFS Financial Inc’s shareholders for their consideration. Stockholders are urged to read the definitive joint proxy statement/prospectus regarding the proposed transaction among Wachovia, Westcorp and WFS Financial Inc and any other relevant documents filed with the SEC because they contain important information. You may obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about Wachovia, Westcorp and WFS Financial, at the SEC’s Internet site (http://www.sec.gov). You will also be able to obtain these documents at www.wachovia.com, www.westcorpinc.com, or www.wfsfinancial.com. Copies of the joint proxy statement/prospectus and the SEC filings incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to Wachovia Corporation, Investor Relations, One Wachovia Center, 301 South College Street, Charlotte, NC 28288-0206, (704)-374-6782, to Westcorp, Attention: Guy Du Bose, Esq., 23 Pasteur, Irvine, CA 92618, (949) 727-1002, or to WFS Financial Inc, Attention: Guy Du Bose, Esq., 23 Pasteur, Irvine, CA 92618, (949) 727-1002. Additional copies of the joint proxy statement/prospectus may also be obtained by contacting Westcorp’s and WFS Financial Inc’s proxy solicitor, Mellon Investor Services, Attn: Peter Tomaszewski, telephone number 1-800-279-0618.
- Contact Information
- Allison Miley
- Wachovia Corp.
- Contact via E-mail
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.