- Now that Charles Schwab’s acquisition of TD Ameritrade is complete, the brokerage and wealth management giant is starting to mesh the two branch networks.
- The firms’ executives have said they are set to shutter branches and offered more detail during a business update call on Thursday.
- Business Insider has mapped out both firms’ US branches to illustrate regions where their branches overlapped before the merger. Scroll down for an interactive version of both networks.
- Visit Business Insider’s homepage for more stories.
Charles Schwab has “moved aggressively” to start combining branch networks now that its tie-up with TD Ameritrade is complete, the firm said Thursday during its latest business update.
“There was a significant amount of overlap across our footprint, which we’re eliminating,” Charles Schwab Chief Operating Officer Joe Martinetto, who is leading the integration efforts, said on the call with analysts.
“Of the roughly 260 branches, we’re retaining about 55. The majority of the rest will co-locate into nearby Schwab branches where we’ll have both Schwab and TD Ameritrade employees,” Martinetto said, referring to shuttering some 205 TD Ameritrade branches.
There will be more than 400 branches once the consolidation is complete, he said. The firms’ overall integration is still expected to take between 18 months and three years.
“As we move forward with the integration of Schwab and TD Ameritrade, we remain fully committed to bringing together the best of people and technology to serve our clients,” a spokesperson said in a statement.
Martinetto emphasized that 90% of clients will now have a branch within 25 miles, up from 80% before the deal, according to a transcript on the investment research firm Sentieo.
Along with its branch consolidation, Schwab has started layoffs. Earlier this week, Schwab said in a public statement and an email to employees that it would cut some 1,000 jobs, or 3% of its combined workforce with TD Ameritrade.
Executives had already signaled it would close branches and shrink its workforce. Schwab expects to save up to $2 billion in expenses with the acquisition, as it originally guided.
The all-stock Schwab-TD Ameritrade deal, worth $26 billion when it was announced last year and valued at $22 billion at the time it closed, is the largest securities-brokerage deal on record, according to Dealogic data.
Business Insider has mapped out each of the two firms’ branches, using their official lists of branch locations, to illustrate regions where the two firms’ branches overlap. Schwab’s network was about double that of TD Ameritrade’s.
Before the deal, TD Ameritrade and Schwab had significant overlap in states like California, where Schwab is headquartered, and in Texas, where the firms are taking their new combined headquarters.
Meanwhile, there are some states where TD Ameritrade had a presence, like in West Virginia, where Schwab did not. And Charles Schwab had branches in Wyoming, South Dakota, and Puerto Rico, where TD Ameritrade did not.
Editor’s note: This story was originally published in February, and was updated on Thursday, October 29 to reflect Schwab’s business update. The two firms’ branch data is updated as of February 8.
Read more:
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- Charles Schwab is launching fractional stock-trading in June, making good on a promise that sent rivals Robinhood and Fidelity racing to offer slices of pricey shares
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