Per an article by Bizjournals, Fifth Third Bancorp FITB has laid off 30 employees at MB Financial in Wilmington (Clinton County). Per Worker Adjustment and Retraining Notification, the move followed Fifth Third's recent acquisition of MB Financial.
Notably, Fifth Third has received the Federal Reserve’s approval to complete the acquisition of MB Financial. The deal was entered into in May 2018, per which Fifth Third had agreed to be merged with MB Financial, for a total value of $4.7 billion. The merged entity will stand second in estimated retail deposits and acquire 20% share of middle-market relationships in Chicago.
The above-mentioned retrenchment, which begins on May 13, will be completed by Jul 31 at the mortgage loan servicing facility. Moreover, employees have been deprived off any “bumping” rights and therefore, these layoffs will be permanent. Furthermore, these employees will be granted severance and outplacement benefits.
Among others, 15 employees at MB Financial are expected to join Fifth Third’s Madisonville Operations Center, while around 60 will be maintained at the Wilmington office.
Fifth Third’s focus on strategic investments through North Star initiatives, which are expected to result in revenue growth, expense savings and operational excellence, remains a key positive point. The company’s repositioning and restructuring efforts, which are still underway, help it reallocate the capital into core markets. Additionally, its focus on cost control and efforts to boost long-term profitability are anticipated to augur well.
Shares of Fifth Third have gained 24.2% in the past three months compared with 15.5% growth recorded by the industry.
Currently, Fifth Third carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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