Laredo National Bank to lay off 170 in South Texas
About 170 employees will be laid off at the Laredo National Bank (LNB) headquarters in Laredo.
According to a letter sent to the Texas Workforce Commission (TWC), the bank’s merger with Birmingham, Ala.-based Compass Bank is the catalyst behind the layoffs.
In 2005, Spanish bank Banco Bilbao Vizcaya Argentaria S.A. (BBVA) purchased Laredo National Bancshares Inc. for $850 million, which at the time had six locations in San Antonio as well as branches in place in the Rio Grande Valley, Dallas and Houston.
BBVA later purchased regional bank company Compass Bank in 2007. Compass alone has total assets of $61.2 billion and 579 branches throughout its six-state region. Compass has 25 locations in San Antonio.
Last year, BBVA decided to merge LNB and two other banks it purchased — McAllen-based Texas Regional Bancshares Inc. and Fort Worth-based State National Bancshares — under the Compass Bank brand.
The letter to the TWC states that this merger “creates duplicate staffing in some technical and back office departments in the Laredo area.” The company adds, however, that about 400 people will continue to be employed in Laredo.
The “displacements” are slated to begin within one week after LNB’s operations systems are converted to Compass Bank systems, which is projected to be on or about Nov. 13 and may continue for a couple of weeks after that.
Those affected by the layoffs will be offered alternative positions within the bank or will be offered outplacement assistance. Employees were notified about the layoffs on July 7.
Thomas Graham, executive vice president of communications for Compass Bank, says the company takes layoffs seriously and makes it a point to notify affected employees four months in advance.
"These decisions are never easy and we greatly appreciate the valuable contribution these employees have made," Graham says. "We continue to look for opportunities to place these employees in new positions within the organization and, of course, we're helping them transition to new opportunities through outplacement support services that include, among others, resume writing, job search skills and interview coaching skills."
Employees who are displaced, the letter says, will have a certain level of pay continuation following the layoff to assist them during the employment transition period. During the time that this severance pay continues, employees can continue health care coverage at the same rate they paid while employed.
BBVA is a financial services group with more than $740 billion in total assets, 47 million clients, 8,000 global branches and 112,000 employees in more than 35 countries.
The company provides commercial and consumer banking services, consumer loans, mortgages, credit cards, securities brokerage, wealth management, pension plan management and insurance.
According to a letter sent to the Texas Workforce Commission (TWC), the bank’s merger with Birmingham, Ala.-based Compass Bank is the catalyst behind the layoffs.
In 2005, Spanish bank Banco Bilbao Vizcaya Argentaria S.A. (BBVA) purchased Laredo National Bancshares Inc. for $850 million, which at the time had six locations in San Antonio as well as branches in place in the Rio Grande Valley, Dallas and Houston.
BBVA later purchased regional bank company Compass Bank in 2007. Compass alone has total assets of $61.2 billion and 579 branches throughout its six-state region. Compass has 25 locations in San Antonio.
Last year, BBVA decided to merge LNB and two other banks it purchased — McAllen-based Texas Regional Bancshares Inc. and Fort Worth-based State National Bancshares — under the Compass Bank brand.
The letter to the TWC states that this merger “creates duplicate staffing in some technical and back office departments in the Laredo area.” The company adds, however, that about 400 people will continue to be employed in Laredo.
The “displacements” are slated to begin within one week after LNB’s operations systems are converted to Compass Bank systems, which is projected to be on or about Nov. 13 and may continue for a couple of weeks after that.
Those affected by the layoffs will be offered alternative positions within the bank or will be offered outplacement assistance. Employees were notified about the layoffs on July 7.
Thomas Graham, executive vice president of communications for Compass Bank, says the company takes layoffs seriously and makes it a point to notify affected employees four months in advance.
"These decisions are never easy and we greatly appreciate the valuable contribution these employees have made," Graham says. "We continue to look for opportunities to place these employees in new positions within the organization and, of course, we're helping them transition to new opportunities through outplacement support services that include, among others, resume writing, job search skills and interview coaching skills."
Employees who are displaced, the letter says, will have a certain level of pay continuation following the layoff to assist them during the employment transition period. During the time that this severance pay continues, employees can continue health care coverage at the same rate they paid while employed.
BBVA is a financial services group with more than $740 billion in total assets, 47 million clients, 8,000 global branches and 112,000 employees in more than 35 countries.
The company provides commercial and consumer banking services, consumer loans, mortgages, credit cards, securities brokerage, wealth management, pension plan management and insurance.
Labels: Laredo National Bank, layoffs, Texas
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