Regions, AmSouth Create Big Servicer
The merger between bank holding companies headquartered here, Regions Financial Corp. and AmSouth Bancorp., will double each firm's individual mortgage production capacity as well as create the nation's 22nd largest mortgage servicer.
According to the Quarterly Data Report, AmSouth and Regions finished 2005 next to each other in terms of residential mortgage volume.
AmSouth is ranked 48th, with volume of $7.6 billion, Regions is 49th at $7.2 billion. The pro-forma combination jumps to 34th at $14.8 billion.
On the servicing side, the pair will have a combined portfolio of $51.3 billion. The bulk of the portfolio will come from Regions, at $36.8 billion, ranked 26th. AmSouth has a $14.6 billion portfolio, ranked 46th.
Under the terms of the deal, 0.7974 shares of Regions will be exchanged for one share of AmSouth common stock. The combination will take the Regions name.
A selling point the parties presented
in their press release was that the combined company would have a "broad, balanced mix of businesses," which includes mortgage banking. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com