Layoffs to occur in Alabama
By COCO SALAZAR
4/14/2004

The merger of two companies' mortgage operations will reportedly form one of the nation's top mortgage lenders, but over 400 mortgage jobs will be lost in the process.

Regions Financial Corp. and Union Planters Corp. announced Monday they plan to integrate their mortgage operations. The combined operations will reportedly create one of the country's Top 20 mortgage companies under the name Regions Mortgage.

Most of the Regions Mortgage operations in Montgomery, Ala., will be relocated to Hattiesburg, Miss. and Memphis, Tenn., where it is headquartered, the parent company reported. Excluding the wholesale lending office, Union Planters' mortgage operations will also be relocated from Montgomery to the Tennessee site.

The merger is an integral part of the two companies' efforts to "create a new regional force in banking and financial services," said Regions Mortgage Chairman Robert Goethe, who will serve as chairman of the merged company.

"However, while in many ways this is an important and exciting time in the history of Regions and Union Planters, many very difficult decisions have had to be made that will affect our Montgomery-area associates," he added.

Regions said approximately 450 mortgage associate positions will be eliminated beginning October through March 2005. The jobs range from entry level clerical, processing and support jobs to senior officers, said Regions spokeswoman Kristi Ellis, who added that about 400 of the cuts will occur within Regions, while the remaining will come from Union Planters.

The affected mortgage employees who work through their job-ending date, will be offered a severance package, which includes a lump-sum severance payment and company-paid insurance for a fixed period of time, Regions said. The individuals will also be able to apply for other positions within the company.

"We did not approach these decisions lightly, and every attempt has been made to minimize the negative repercussions on the people involved," Goethe said.

Employee meetings to inform all associates about the announced plans were held Monday morning in Montgomery, Memphis and Hattiesburg at both Regions and Union Planters offices, Ellis said. Representatives from human resources, and from outplacement service and employee assistance programs were present in areas where positions will be reduced.

However, Regions said the changes will add about 100 new mortgage job opportunities in Memphis. Meanwhile, about 70 jobs will become available in Hattiesburg, where Union Planters mortgage facility will continue loan administrative and banking portfolio support functions for the combined company.

The new-formed company will employ approximately 1,400 people and the combination of its servicing portfolios is planned for Sept. 30, 2004, with some process and system conversions possibly continuing through March 2005, Regions reported. At the end of the fourth quarter Region's servicing portfolio stood at $16.1 billion and mortgage loan volume was $1.9 billion, while for Union the figures were $28.2 billion and $2.1 billion, respectively, Ellis said.

The plan to merge mortgage operations follows Regions' announcement in January of its definitive merger agreement with Union Planters, expected to be complete in summer 2004. The combined company will operate under the name Regions Financial Corp. and will be among the nation's Top 15 largest bank holding companies with $81 billion in assets, according to the announcement.

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