Salisbury’s largest First Union office, the main branch at 215 W. Innes St., will be sold as part of the divestiture of banks necessary for the federal government to approve the pending First Union-Wachovia merger.
In all, First Union and Wachovia have agreed to sell 38 branch offices with roughly $1.5 billion in deposits in North Carolina, South Carolina, Virginia and Georgia.
All of the 25 banks to be divested in North Carolina belong to First Union. First Union also will sell a branch in York, S.C., and three branches in Savannah, Ga.
Wachovia will divest itself of nine branches in Virginia, including five in Roanoke.
The sales will include deposits, loans and related premises and equipment — all contingent on approval of the merger.
First Union said its customers at the affected banks will begin to receive information about the transition process once buyers are identified and enter into agreements with Wachovia and First Union.
First Union customers do not have to do anything at this time, company officials said.
The Salisbury First Union Bank at 215 W. Innes St. is the only Rowan County office that is part of the approved divestiture by the Department of Justice.
Brian Miller, market executive and assistant vice president of First Union in Salisbury, referred questions about the local office to corporate headquarters in Charlotte.
Sarah Holden, of First Union corporate communications, said Thursday that First Union is looking for another financial institution to purchase the Salisbury bank and hopes the bank’s current employees will work for that buyer.
As for the bank’s customers, First Union will try to make the transition “as seamless as possible,” Holden said.
First Union will try to find a buyer who can match the types of accounts the Salisbury office now offers, according to Holden. She said experience has shown that customers usually want to continue banking at a branch that is most convenient to them, though she added that, “We would work with customers on a one-by-one basis.”
“We are committed to finding buyers that best suit the needs of our customers, employees and communities,” said Ben Jenkins, First Union vice chairman and head of general banking for the proposed new company.
“It is our intent that the employees of the affected branches will continue to be employed with the purchasing institutions and that customers will experience little or no disruption as a result of this transition.”
First Union officials have reportedly told the staff at the downtown Salisbury branch that Winston-Salem-based BB&T is considering buying the branch and keeping its employees.
BB&T currently has no branches in Rowan County.
A.C. McGraw, director of media relations for BB&T, said this morning, “Generally, it is our policy not to comment on anything that is rumor- or speculation-based. But if you care to check back with me in a day or two, that might change.”
The Justice Department ordered the two banks to sell the branches to resolve antitrust concerns in the companies’ pending merger. First Union and Wachovia are divesting banks in areas where they are judged to have too much market share and overlapping of branches.
Salisbury has two First Union branches and three Wachovia branches. China Grove also has a First Union bank.
“These divestitures ensure that consumers and businesses in Virginia, North Carolina, South Carolina and Georgia will continue to have choices for banking services and continue to enjoy the benefits of competition,” said Charles James, assistant attorney general in charge of the Justice Department’s Antitrust Division.
With the divestiture, the Antitrust Division will not challenge the merger, which still must meet approval of the companies’ shareholders and the Board of Governors of the Federal Reserve System.
Of the 25 First Union branches to be sold in North Carolina, eight are in Buncombe County, including five Asheville offices.
First Union also intends to sell five offices in Forsyth County, including four in Winston-Salem.
First Union also will sell three branches in Henderson, two in Burke, two in Haywood and one each in Stokes, Pasquotank, Wilkes and Jackson counties.
Together, the targeted N.C. First Union branches represent $915 million in deposits.
The nine Wachovia offices in Virginia represent $420 million in deposits; the three Georgia branches, $148 million; and the S.C. branch, $28 million.
First Union shareholders will vote on the merger Tuesday; Wachovia shareholders vote on Aug. 3.
Contact Mark Wineka at 704-797-4263, or mwineka@salisburypost.com.
Today's News
