Regions Merger with Union Planters Creates a Top 20 Servicer
When Regions Financial here merges with Union Planters Corp., Memphis, Tenn., it will create a Southeast-based regional mortgage giant that will rank 20th among all residential servicers nationwide, according to figures compiled by Mortgage Servicing News.
The merger also will create the nation's 28th largest residential funder.
Once the deal is completed, the new bank will have at least $45 billion in residential servicing rights on its books and the capacity to fund $25 billion a year in home mortgages. (Both figures are based on third-quarter numbers.)
Union Planters Mortgage, a subsidiary of the bank, is the largest lender in the Memphis Metropolitan Statistical Area with a market share of 5.07%.
But in the Birmingham MSA, Regions Mortgage, the bank's affiliate, is ranked fifth behind Countrywide Home Loans, New South Federal Savings, Amsouth Bank and Southtrust Mortgage.
Memphis is the nation's 52nd largest MSA, Birmingham the 71st, as measured by Home Mortgage Disclosure Act figures compiled by the Federal Reserve.
The merger of the two financial institutions is valued at $5.9 billion. The combined bank will be called Regions Financial Corp., and will have $80.5 billion of assets and almost 1,400 offices in 15 states stretching from Florida to Iowa.
"The combination of our two companies will create a new regional force in the banking and financial services industry and further our respective strategic objectives," said Carl Jones Jr., chairman, president and chief executive of Regions.
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