Wachovia to Buy SouthTrust

Wachovia Corp., Charlotte, N.C., is continuing its buying spree, having signed a merger agreement to acquire SouthTrust Corp., Birmingham, Ala., in a stock-for-stock transaction valued at $14.3 billion.Both companies are active in the mortgage market, with combined first-quarter production of $5.0 billion (on a pro forma basis) and a servicing portfolio of $10.3 billion, according to data compiled by National Mortgage News and the Quarterly Data Report. However Wachovia's first-quarter year-to-year mortgage activity is down some 47%, from $6.4 billion in the first quarter of 2003 to $3.4 billion for this year. SouthTrust had $1.7 billion in production in the past quarter. On the servicing side, SouthTrust has the larger portfolio, at $5.7 billion, versus Wachovia's $4.6 billion. Among the more recent acquisitions by Wachovia was First Union Corp.