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NOt sure I understand what you said, there might be minimal losses totally but hundreds will be moving? I see this similar to the Wells purchase of Wachovia. Wells purchased Wachovia but still has a very similar employment number in Charlotte as Wachovia did prior to the purchase. Some of the HQ functions may be consolidated but from what I understand, there was a lot of synergies between the sister companies already in place.
Most jobs in the Operations areas will likely move to Raleigh. Raleigh will gain jobs and Columbia will lose. The synergies you speak of will result in the total Operations jobs (Finance, Loans, Call Center, etc) staying around the same, but most will probably move to Raleigh. FCBNC has been consolidating their on jobs to Raleigh for years, so they should not be expected to hold job functions here. Most larger banks are reducing the number of operations sites, specifically due to Check 21 and the adoption of electronic exchange by the Federal Reserve.
Big difference in the Wells/Wachovia purchase is that Wells actually converted to some of Wachovia's systems. Keeping the same people in Charlotte, while paying much lower rent than in California made sense as well.
Most jobs in the Operations areas will likely move to Raleigh. Raleigh will gain jobs and Columbia will lose. The synergies you speak of will result in the total Operations jobs (Finance, Loans, Call Center, etc) staying around the same, but most will probably move to Raleigh. FCBNC has been consolidating their on jobs to Raleigh for years, so they should not be expected to hold job functions here. Most larger banks are reducing the number of operations sites, specifically due to Check 21 and the adoption of electronic exchange by the Federal Reserve.
Big difference in the Wells/Wachovia purchase is that Wells actually converted to some of Wachovia's systems. Keeping the same people in Charlotte, while paying much lower rent than in California made sense as well.
Check 21 is 10 years old and these cousin companies have had working agreements in place since the 90's where the NC side performed many operational activities for the SC corp. Because of that, business continuity, and the fact that these companies operated closely for decades (the Holding family sits on the SC Board), I don't see this as a typical merger where operations, admin, business and other functions are moved, that has been in place a while.
In the old days, a bank HQ was huge in establishing a lot of jobs but today, banks have numerous facilities that house operations, IT, Risk, and other necessary functions. Wells is based in SF but Charlotte is the largest employment site followed by Minneapolis. BofA is based on N Tryon St in Charlotte but has huge operations in NYC and other cities. JPM is based in NYC with large operational facilities in the west. Banks are becoming much less centralized than before outside of high impact jobs like trading floors.
So, while not great news, it is not like a downtown tower will be vacated along with hundreds of thousands of sq feet of space, these banks have been operating like that for years.
Check 21 is 10 years old and these cousin companies have had working agreements in place since the 90's where the NC side performed many operational activities for the SC corp. Because of that, business continuity, and the fact that these companies operated closely for decades (the Holding family sits on the SC Board), I don't see this as a typical merger where operations, admin, business and other functions are moved, that has been in place a while.
In the old days, a bank HQ was huge in establishing a lot of jobs but today, banks have numerous facilities that house operations, IT, Risk, and other necessary functions. Wells is based in SF but Charlotte is the largest employment site followed by Minneapolis. BofA is based on N Tryon St in Charlotte but has huge operations in NYC and other cities. JPM is based in NYC with large operational facilities in the west. Banks are becoming much less centralized than before outside of high impact jobs like trading floors.
So, while not great news, it is not like a downtown tower will be vacated along with hundreds of thousands of sq feet of space, these banks have been operating like that for years.
Understand your points, but keep in mind that BOA, Wells and JP are enormous banks compared to this proposed merger. Wells at $1.42Trillion, BOA at $2.21Trillion and Chase/JP at $2.36Trillion, so the smallest of the 3 has 46 times the assets of a combined FCB will have around $30.7Billion. Those banks are less centralized because of their size.
First Citizens has multiple buildings downtown and while the one on Main will probably keep the branch and hopefully the cafe, they will most likely lose some workers there. They will have no problem renting that space though. Remember also that mergers are really expensive, so you have to pay for that somehow, and selling one of the other buildings (Washington St, Park & Lady) helps a bunch.
To bring it back to the topic of Columbia, this could be good for Columbia since that building at Park & Lady has 2 surface lots and no ground level retail. I would love for a mixed use development to be built where that building and lots are now.
Understand your points, but keep in mind that BOA, Wells and JP are enormous banks compared to this proposed merger. Wells at $1.42Trillion, BOA at $2.21Trillion and Chase/JP at $2.36Trillion, so the smallest of the 3 has 46 times the assets of a combined FCB will have around $30.7Billion. Those banks are less centralized because of their size.
First Citizens has multiple buildings downtown and while the one on Main will probably keep the branch and hopefully the cafe, they will most likely lose some workers there. They will have no problem renting that space though. Remember also that mergers are really expensive, so you have to pay for that somehow, and selling one of the other buildings (Washington St, Park & Lady) helps a bunch.
To bring it back to the topic of Columbia, this could be good for Columbia since that building at Park & Lady has 2 surface lots and no ground level retail. I would love for a mixed use development to be built where that building and lots are now.
I know the size levels but the principles are the same. The expense savings necessary from a merger all depend on the premium paid. Based on what I have read, a lot of the synergies are already in existence between these banks. If the NC operation is providing operational and IT support for the SC operation, that is usually the first place to make gains. Risk & Compliance will most likely be left alone in this environment and the SC operation will remain the state HQ. Some of the financi/HR/admin functions may be trimmed or there may be movement to Columbia since it is a lower cost area than Raleigh. In the end, bank mergers are about efficiencies and personalities. Since these companies are cousins, I don't see a lot of places to gain material efficiencies. But, this is all speculation.
Regarding your last paragraph, who owns the lot? Do you know if there is any interest?
I know the size levels but the principles are the same. The expense savings necessary from a merger all depend on the premium paid. Based on what I have read, a lot of the synergies are already in existence between these banks. If the NC operation is providing operational and IT support for the SC operation, that is usually the first place to make gains. Risk & Compliance will most likely be left alone in this environment and the SC operation will remain the state HQ. Some of the financi/HR/admin functions may be trimmed or there may be movement to Columbia since it is a lower cost area than Raleigh. In the end, bank mergers are about efficiencies and personalities. Since these companies are cousins, I don't see a lot of places to gain material efficiencies. But, this is all speculation.
Regarding your last paragraph, who owns the lot? Do you know if there is any interest?
First Citizens owns both lots. That is their Operations/Service Center/Drive Thru Branch. They have owned it since purchasing from SC National Bank in the 1980's. Not aware of any interest, but if it goes on the market for redevelopment it will be very interesting.
Columbia is not on Movoto Real Estate's list of the 50 most boring cities in America, while Dallas, Phoenix, San Antonio and Jacksonville are. So there.
Moderator cut: link removed, linking to competitor sites is not allowed
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Plan Columbia Workshop
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Thanks for registering to attend the Plan Columbia Workshop.
The city wants to make sure that participation in the workshop is a choice for anyone who cares about Columbia's future. You can help us spread the word.
Invite your friends, family, and co-workers and encourage them to attend.
You should know that...
For the first time in nearly 50 years, the City of Columbia will rewrite the rules for development—zoning and land development ordinances. Adding to the unique timing is the fact that Richland County is also preparing an update to their land use plan and priority investment areas.
If you care about Columbia’s future...connecting neighborhoods, providing places for jobs, ensuring housing choice, preserving special places, building vibrant commercial districts, protecting greenways, addressing vacant lots, reusing empty buildings, and creating a place future generations will love, then you should get involved.
The Workshop involves two public sessions (at 6pm on June 24, and 6pm on June 26), each with a distinct format and agenda. The second session will build upon the work from the first, so attend both sessions to fully participate. If you can’t attend both sessions, you may attend whichever one is most convenient. You may also stop by during drop-in hours on June 25 to talk one-on-one with the planning team and see the work in progress.
We'll see you next week!
Plan Columbia Workshop
Tuesday, June 24, 2014 at 6:00 PM - Thursday, June 26, 2014 at 8:00 PM (EDT)
Columbia Metropolitan Convention Center, 1101 Lincoln St, Columbia, SC 29201 | Directions
For the sake of being in a more appropriate thread, I'm copying this from the other:
I'm not sure why Greenville gets singled out on this by so many. It's been noted several times that this apparent attitude exists throughout the state, and specific examples have been cited with both Greenville and Charleston in the other thread. However, we then see posts that rail solely against Greenville. Is there some perception difference between the two from Columbia residents? I think we've established that Greenville is NOT the exception. I'd be interested in hearing your thoughts as it relates to your own view of Columbia's position in the state.
I think we could see a more positive view of Columbia emerge with the current leadership in Columbia's City Hall. From an amateur perspective, I think there's NOW a mayor leading Columbia with a strong vision and a focus on results. As a result, I think the City CAN benefit immensely and has the potential to transform. The results remain to be seen, but the initiative certainly seems to be there, it's the follow through that I'm waiting for-- not the short term gains, but continued reaching of benchmarks and sustained results.
You mean the mayor who just got caught with hookers in his hotel room ?
^That may very well have happened, but he wasn't "caught", it was a comment by someone testifying at another man's trial. Just because someone says something, it doesn't automatically make it true.
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