BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 23, 2009--
Compass Bank announced today an organizational restructuring focused on integrating Compass with BBVA's universal banking model, upgrading technology platforms, and utilizing global resources and tools to gain further efficiencies throughout the organization.
"We are starting a new stage, the goals of which are to integrate Compass into the BBVA system and create a platform to further develop the BBVA franchise in the U.S.," noted
Jose Maria Garcia Meyer
, BBVA Country Manager-U.S. and Chairman of Compass Bank. "We are now ready to begin a strategic 'upgrade phase.' As we've discussed before, we want to transform Compass into the flagship of BBVA's franchise in the U.S. To do that, we need to fully integrate Compass into the BBVA system," added Garcia Meyer.
"The goal of our new organizational structure is to bring critical pieces of BBVA's recognized universal business model quickly and efficiently to Compass," stated
, President and CEO of Compass Bank. "This new structure will also enhance collaboration among our business units, creating a more client-focused organization. In addition, by more closely aligning our organizational structure with that of BBVA, we will be able to leverage global capabilities and resources, accelerate innovation and gain further efficiencies."
As part of the reorganization, Compass has upgraded its corporate governance system by further separating the responsibilities of risk management from control functions. As a result, the Audit Department, led by Ignacio Garijo, which resides in the Chairman's Office will operate completely independent of the business areas and report directly to the Audit Committee of the Board of Directors. Additionally, the Compliance Department will now report directly to
, General Counsel and Secretary.
Other areas within the Chairman's Office will not change their structure - Innovation, run by
, Economic Research, headed by
, and Corporate Communications and Corporate Responsibility, led by
The strategic reorganization will also reduce the number of business units from four to three. Compass' former Community Banking division has been combined into Corporate Banking and will be led by long-term Compass veteran George Boltwood. In addition, Boltwood will also serve as Vice Chairman of Compass Bank. Wealth Management and Retail Banking will continue to be led by
and Shelaghmichael Brown, respectively.
Within support functions, former Community Banking executive
has been named head of Human Resources.
will lead the Risk Management area, which will have enterprise-wide responsibility over all risk factors. Hernandez was previously in charge of Economic Capital and Basel II implementation for BBVA worldwide. BBVA veteran, Sergio Fidalgo, will head IT and Operations after having helped transform and enhance BBVA's Global Business division (Global Corporate Banking, Treasury, Capital Markets and Asset Management). Isabel Goiri will continue to support Compass in her role as Chief Financial Officer.
Sanchez added, "While we continue to outperform our peers in many key performance measures, we realize we are not immune to economic and market conditions. Therefore, we believe generating operational efficiencies and reducing costs to be especially prudent for the future growth and long-term health of our strong, forward-thinking organization."
As part of the reorganization, additional opportunities to further streamline operations and eliminate redundancies of the combined four banks have been identified. This includes a reduction in workforce of approximately 1,200 positions or about 10 percent of the company's total workforce. Positions to be eliminated have been identified from throughout all of the company's business units and across its six-state footprint. Impacted employees, which include both management and non-management positions, will be notified in the next few days and will receive severance packages and other assistance in accordance with company guidelines.
In November, Compass completed the integration of BBVA's four U.S. banks into a single, unified organization. During this process, State National Bank, Texas State Bank and LNB (formerly Laredo National Bank) were seamlessly converted to Compass' operating systems and product platforms. In addition to completing the integration in less than one year, synergies from the consolidation of the four banks are being realized ahead of expectations. In 2009, the further alignment of Compass with BBVA's recognized universal banking model will be supported by investments in core business technology as well as innovative products and services that enhance the client experience and promote cross-sell opportunities.
Compass Bank ranks among the top 25 largest banks in the U.S. based on deposit market share and ranks among the largest banks in Texas (4th) and Alabama (3rd). The company has total assets of approximately $61.5 billion and operates 577 branches across a six state Sunbelt Region including: 309 in Texas, 92 in Alabama, 77 in Arizona, 44 in Florida, 34 in Colorado, and 21 in New Mexico.
Compass Bank is a subsidiary of Compass Bancshares, Inc., a wholly owned subsidiary of BBVA (NYSE: BBV) (MAD: BBVA). BBVA is a financial services group with more than $740 billion in total assets, 47 million clients, 8,000 branches and approximately 112,000 employees in more than 35 countries. BBVA provides its customers around the world with a full range of financial services, including commercial and wholesale banking, retail banking services, consumer loans, mortgages, credit cards, securities brokerage, wealth management, pension plan management and insurance.The BBVA Group maintains a leadership position in Spain, Mexico, Latin America and the Sunbelt Region of the United States as well as operations in China, France, Germany, Hong Kong, Italy,Japan, Singapore, Switzerland, and the United Kingdom.
Source: Compass Bank
For further information: Ed Bilek, External Communications, 205-297-3331