WFC to Close Wachovia Transition - Analyst Blog
May 19 2011 - 1:18PM
Zacks
Earlier this week, Wells Fargo & Company
(WFC) announced that it will complete the transition of the
remaining Wachovia signs and systems into WFC by mid-October
2011.
Specifically, Wachovia’s stores at Virginia will be converted in
August, Maryland, South Carolina, and Washington, D.C. in September
and finally North Carolina in October. The conversion of 868 stores
and 1,487 ATMs in the four states and the District of Columbia will
put an end to the transition from Wachovia to WFC.
WFC purchased Wachovia in December 2008, in a $12.7 billion
all-stock deal, after Wachovia suffered trouble due to its exposure
to bad mortgages right before the housing bubble burst.
With the completion of the merger, Wachovia’s transition to WFC
began. In connection with this, the company hired hundreds of added
tellers and bankers across the Carolinas and Mid-Atlantic.
Recently, WFC converted Wachovia’s banking locations in
Connecticut, New York, and Pennsylvania. Florida locations will be
converted in June and July of 2011. WFC has also converted Wachovia
stores in Alabama, Arizona, California, Colorado, Delaware,
Georgia, Illinois, Kansas, Mississippi, Nevada, New Jersey,
Tennessee and Texas.
Completed integrations included conversion of Wachovia Mortgage
to Wells Fargo Home Mortgage and bringing brokerage operations
under Wells Fargo Advisors.
WFC has given assurance to customers for delivering services as
before with the smooth completion of the transition.
With its diverse geographic and business mix, WFC is well
positioned compared to its peers. The Wachovia acquisition and the
demise of some smaller players helped it the company to garner a
larger share in the mortgage markets. Yet, the regulatory issues
remain a headwind.
WFC currently retains a Zacks #3 Rank, which translates into a
short-term ‘Hold’ rating. The company’s peer – Fifth Third
Bancorp (FITB) also retains a Zacks #3 Rank (a short-term
Hold rating).
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