Regions Financial buys AmSouth for $9.8b in stock

BIRMINGHAM, Ala. -- The two giants of Alabama banking, Regions Financial Corp. and AmSouth Bancorp, are combining in a $9.8 billion stock deal that executives yesterday said would save money by closing branches and cutting as many as 3,600 jobs.

The agreement, in which Regions Financial will acquire AmSouth, would result in a powerhouse with nearly $140 billion in assets, market capitalization of about $26 billion, and 2,000 branches in the South, Midwest, and Texas.

The company would become the nation's 10th-largest bank and accomplish annual savings of $400 million through cuts, officials said.