By Associated Press

BIRMINGHAM, Ala. -- The two giants of Alabama banking, Regions Financial Corp. and AmSouth Bancorp, are combining in a $9.8 billion stock deal that executives yesterday said would save money by closing branches and cutting as many as 3,600 jobs.

The company would become the nation's 10th-largest bank and accomplish annual savings of $400 million through cuts, officials said.

Markets were lukewarm to the deal, with both banks shares declining 3 percent.

The new company will retain the Regions name, and Jackson Moore, chairman, president, and chief executive of Regions, will become chairman of the combined entity.

C. Dowd Ritter, 58, chairman, president, and chief executive of AmSouth, will be the president and chief executive of the combined company.

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