U.S. Markets close in 6 hrs 2 mins

Fifth Third (FITB) Undertakes Job Cut in Cincinnati Region

Zacks Equity Research

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.

Bottom Line

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.

Other Stocks to Consider

Webster Financial Corporation WBS has been witnessing upward estimate revisions for the past 60 days. Further, the stock has appreciated more than 14% in the past three months. It currently carries a Zacks Rank #2.

M&T Bank Corporation MTB has been witnessing upward estimate revisions for the past 60 days, with the company’s shares rising nearly 21.9%, in three months’ time. It holds a Zacks Rank of 2, at present.

Bank of America Corporation BAC has been witnessing upward estimate revisions for the past 60 days. Over the past three months, this Zacks #2 Ranked company’s shares have been up more than 21%.
Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
M&T Bank Corporation (MTB) : Free Stock Analysis Report
Fifth Third Bancorp (FITB) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Webster Financial Corporation (WBS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research