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August 18, 2003
Wachovia Completes Merger Integration On Schedule, Under Budget, With Added Convenience for Customers
Wachovia achieved major milestones during the two-year integration and is uniquely positioned for continued success
Charlotte, N.C. - Wachovia Corp. (NYSE: WB) has successfully completed the merger integration of the former First Union and Wachovia systems, products and signs to the new Wachovia platform. The combined company offers customers more ways to bank - including branches, ATMs, and a new, enhanced website - as well as an increased product line across key businesses.
"Today's Wachovia is financially strong and focused on execution," said Ken Thompson, Wachovia chairman and CEO. "Our deliberate integration activities for the past two and a half years have allowed us to build the company we envisioned and position it for the future. We know what financial services customers want, and now Wachovia offers more convenience, more products and better service than either of our predecessor companies. We have delivered on what we promised, and that is why we're confident of long-term success."
Conversion activities included: - 9 million customer households, including 900,000 businesses
- 11.5 million accounts, including 3.7 million deposit accounts
- 2,600 branches
- 4,500 ATMs
- 75,000 signs
- 1.6 million employee training hours
- More than 100 million customer communications
- The combination of approximately 800 systems platforms such as human resources systems, general ledger, and data marts
- The creation of the new wachovia.com, with enhanced online services for more than six million enrolled customers
The First Union/Wachovia merger, announced in April of 2001, was managed by a project team of more than 200 employees and led by integration co-heads David Carroll and Bob McCoy.
"We've delivered on our promise of a methodical, deliberate integration, and have created an enviable model for combining all areas of an organization - from job selection to business model planning to complex systems conversions," said Carroll, merger integration co-head. "Our merger has gone extremely well for several reasons - successful execution of the merger was the company's top priority, we followed a painstakingly well-thought-out integration plan, and no decision was made without a thorough analysis of any potential customer impact. But the most important factor was the unprecedented teamwork and commitment of thousands of Wachovia employees."
While final low-risk integration activities continue throughout 2003 and early 2004, all aspects of the merger that are visible to customers are complete. A last step of integration includes the formal compilation of all merger processes, analyses of strategic approaches, and data shared during rigorous post-conversion assessments. This information captures and details Wachovia's thoughtful, well-planned approach to integration, with a focus on minimizing or eliminating customer concerns.
While focused on merger integration, the newly combined company also achieved many key successes over the last two years, some of which include:
Key Corporate Milestones- Wachovia was named 2002 best performing stock among the top 50 U.S. banks and among global financial service companies with more than $20 billion in market capitalization.
- In November 2002, Wachovia received an upgraded debt rating to double-A (Aa3) rating from Moody’s Investor Service.
- The company has led its peer group for two consecutive years in the American Customer Satisfaction Index, with service scores rising ten percent in the last two years.
- Voluntary employee attrition levels show continuous improvement since the merger announcement.
- Last year, Wachovia contributed more than $85 million to charitable organizations through direct contributions and employee giving, and made more than $19 billion in community development loans and investments. Employee volunteers read aloud and donated 59,000 books to 2,980 classrooms in 33 states.
- The new Wachovia brand was unveiled in March 2002, and rolled out to customers that summer with a focus on the Wachovia Securities platform. Over the course of integration, all businesses were rebranded globally. The First Union brand was retired with the final deposit conversion in July 2003.
- The inaugural Wachovia Championship – a new stop in May on the 2003 PGA Tour – created significant national and international branding exposure, with a portion of proceeds donated to charity.
Line of Businesses Successes- From fourth quarter 2001, Wachovia grew low-cost core deposits by 35 percent. The company – the largest East Coast retail bank – opened its first two retail financial centers in New York City at Rockefeller Plaza and Madison & 45th Street, with plans to open 12 financial centers and place 24 ATMs strategically around the City, primarily in Midtown Manhattan, by the end of 2004.
- In July 2003 Wachovia completed the legal consummation of the Wachovia Securities/Prudential Securities combination, making Wachovia Securities the third largest full service retail brokerage firm in the U.S. based on client assets.
- Wealth management now ranks as one of the top 10 providers to high net worth individuals, with assets under management of more than $60 billion, and is the largest trust company in America.
- The Corporate and Investment Bank continues to generate steady increases in revenue and gains in market share. The Treasury Services division is now the nation’s second-largest provider of cash management services in terms of market share.
- The new wachovia.com – number one in retail online customer satisfaction (Abt & Associates) – offers more than 100 online applications representing a comprehensive suite of products and services for retail and corporate customers.
"The accomplishments of the fully combined Wachovia are significant, and our commitment to shareholders, customers, employees and our communities is stronger than ever before," said Thompson. "I couldn't be more proud of our success, or more excited about the strength of our company."
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers throughout the East Coast and the nation, with assets of $364 billion and stockholders' equity of $32 billion at June 30, 2003. The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and offers retail brokerage services in 48 of the 50 states. Global services are provided through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com.
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