Bank One Corporation was the sixth-largest bank in the United States. It traded on the New York Stock Exchange under the stock symbol ONE. The company merged with JPMorgan Chase & Co. on July 1, 2004. The company had its headquarters in the Bank One Plaza (now the Chase Tower) in the Chicago Loop in Chicago, Illinois, now the headquarters of Chase's retail banking division.
The bank traces its roots to the Ohio-based First Banc Group, that was formed in 1968 as a holding company for the City National Bank in Columbus, Ohio.
History
History of Banc One Corporation
First Banc Group
The First Banc Group, Inc. was formed in 1968 as a holding company for City National Bank and was used as a vehicle to acquire other banks. As Ohio began to gradually relax its very restrictive Great Depression era banking laws that had severely restricted bank branching and ownership, City National Bank, through its First Banc Group parent, started to purchase banks outside of its home county. The first acquisition by the new bank holding company was the 1968 acquisition of the Farmers Saving & Trust Company in Mansfield, Ohio. With each acquisition, new member banks kept their name, employees and management while obtaining new resources from the parent holding company. This is very important when the bank holding company was expanding into primarily rural and extremely conservative markets.
In 1971, First Banc acquired Security Central National in Portsmouth, Ohio.
Initially Ohio law did not permit bank mergers across county lines, but allowed bank holding companies to own multiple banks across the state. The newly acquired banks had to maintain their existing banking charters while each bank had to operate separately. Holding companies also were not have the word "bank" in their names so the word word "banc" was used in its place.
Expansion in central Ohio by Banc One Corp.
Although Ohio law still had restricted bank mergers outside a certain geographic area, the holding company management decided to unify the marketing efforts of its member banks by having all of its members banks adopt similar names. In October 1979, First Banc Group, Inc. became Banc One Corporation, and each member bank became Bank One followed by the city or the geographic area that the member bank served. For example, City National Bank was renamed Bank One Columbus, Security Central National Bank became Bank One Portsmouth, and Farmers Saving & Trust Company became Bank One Mansfield.
In 1980, Banc One acquired banks in Painesville, Ohio (Lake County National Bank; Bank One Painesville), Akron, Ohio (Firestone Bank; Bank One Akron), and Youngstown, Ohio (Union National Bank; Bank One Youngstown).
Winters National Bank in Dayton, Ohio was acquired in 1982 and rename Bank One Dayton. The merger with Winters National Corporation brought into the Bank One organization 42 Winters National Bank & Trust Co. branch offices in the greater Dayton area, a branch in Cincinnati and three offices in Circleville. Also added were 21 Euclid National Bank branch offices in the Cleveland area which were renamed Bank One Euclid.
Expansion beyond Ohio
With the change in federal and state banking laws in 1985, Banc One began to rapidly expand outside of Ohio. Its first out-of-state acquisition was of Purdue National Bank in Lafayette, Indiana which occurred just after the new laws went into effect. This bank was rename Bank One Lafayette. This merger was quickly followed by the purchase of other small banks in Indiana and Kentucky, the only states that initially allowed bank purchases by Ohio-based banks.
The bank entered Kentucky by acquiring Citizens Union National Bank & Trust Co. of Lexington, Kentucky in 1986. This bank was renamed Bank One Lexington.
Banc One acquired the Merrillville, Indiana based Bank of Indiana and rename it Bank One Merrillville in early 1986. This was quickly followed by acquisitions in Marion, Indiana (First National Bank of Marion; Bank One Marion), Rensselaer, Indiana (Northwest National Bank of Rensselaer; Bank One Rensselaer) and Richmond, Indiana (First National Bank of Richmond; Bank One Richmond).
The first major merger that had an effect on the management of the holding company occurred in 1986 with the acquisition of Indianapolis-based American Fletcher Corporation, a multi-bank holding company, with its lead bank, American Fletcher National Bank & Trust Company, which resulted in giving 20% of the voting stock in the new company to the former managers of American Fletcher and also had Frank E. McKinney, Jr., the head of American Fletcher, replaced John B. McCoy as president of Banc One Corp. and moved McCoy up to chairman of the combined organization. Another change made in the corporate organization was the formation of a two tiered management system with the formation of statewide holding companies that were placed in between the regional member banks and the ultimate Banc One parent holding company. So, in Indiana, American Fletcher Corporation became Indianapolis based Banc One Indiana and all member banks in Indiana, such as Bank One Lafayette, which previously reported directly to the main parent in Columbus, reported to management in Indianapolis instead.
The merger with American Fletcher Corp. also brought along five small banks that American Fletcher had just recently acquired or was in the process of acquiring. These banks included Citizens Northern Bank of Elkhart (Bank One Elkhart), Carmel Bank & Trust Co. (Bank One Carmel), First National Bank & Trust Co. of Crawfordsville (Bank One Crawfordsville), First American National Bank of Plainfield (Bank One Plainfield), and Union Bank & Trust Co. of Franklin (Bank One Franklin). Under Indiana law at that time, American Fletcher was not permitted to merger these banks into its main American Fletcher National Bank.
The First National Bank of Bloomington in Bloomington, Indiana was acquired in l987. This bank became Bank One Bloomington. With the acquisition of the Bloomington-based bank, Banc One temporarily ceased further acquisitions in the state in Indiana since they had reached that state's cap of percentage of ownership within that state at that time.
Early expansion into Michigan
Banc One expanded into the state of Michigan in late 1986 by acquiring the Citizens State Bank in Sturgis, Michigan and convert it into Bank One Sturgis. Within a few months of the Sturgis acquisition, additional acquisitions were quickly made in East Lansing, Michigan (East Lansing State Bank; Bank One East Lansing), Fenton, Michigan (First National Bank of Fenton; Bank One Fenton) and Ypsilanti, Michigan (National Bank of Ypsilanti; Bank One Ypsilanti) a few months later. After this activity, no further acquisitions were made within the state of Michigan until the First Chicago NBD merger in 1998. At that time, some of these branches were later divested to satisfy anti-trust requirements that would permit the First Chicago NBD merger to proceed.
History of Bank One Corporation
In 1998, Banc One Corporation merged with Chicago-based First Chicago NBD Corporation to form Bank One Corporation, and headquarters moved from Columbus to Chicago. Adverse financial results led to the departure of CEO John B. McCoy, whose father and grandfather had headed Banc One and predecessors. Jamie Dimon, a former key executive of Citigroup, was brought in to head the company.
Bank One was created in 1998, when Banc One Corporation merged with First Chicago NBD (itself a recent combination of First Chicago Corp. and NBD Bancorp, in 1995). These two large banking companies had themselves been created through the merger of many banks.
Acquisition history
The following is an illustration of the company's major mergers and acquisitions and historical predecessors (this is not a comprehensive list):
Some of the banks that were merged into these banks include:
- Bank One
- Alamo National Bank (San Antonio, TX)
- Security National Bank & Trust (Wheeling, WV)
- Affiliated Bankshares of Colorado (founded 1874)
- American Fletcher Corp. (Indianapolis) (founded 1839; merged with Bank One 1986)
- City National Bank and Trust Co. (Columbus, Ohio) (founded 1866; merged 1929)
- Commercial National Bank (Columbus, Ohio)
- City National Bank of Commerce (Columbus, Ohio)
- Barnitz Bank (founded 1850)
- Benjamin Franklin Saving
- Firestone Bank (founded 1918)
- First Illinois Bank Corporation (founded 1905; merged 1992)
- First Citizens Bank (Oxford, Ohio) (founded 1906; merged 1973)
- First National Bank of Bloomington (Bloomington, Indiana) (merged with Bank One 1986)
- First National Bank of Commerce (Founded 1971; merged with Bank One 1998)
- National Bank of Commerce (Formed with assets of CCTSB, 1933; Renamed First National Bank of Commerce, 1971)
- Canal Commercial Trust and Savings Bank (merger of Canal and Citizens, 1924; Controlled by Chase Bank 1931; failed 1933; assets used to form National Bank of Commerce, 1933)
- Canal Bank (founded 1831)
- Citizens Bank (founded 1833)
- Canal Commercial Trust and Savings Bank (merger of Canal and Citizens, 1924; Controlled by Chase Bank 1931; failed 1933; assets used to form National Bank of Commerce, 1933)
- City National Bank of Baton Rouge
- Rapides Bank & Trust
- First National Bank of Lafayette
- First National Bank of Lake Charles
- Central Bank
- Pelican Bank
- Bank of New Orleans (Merged with FNBC, 1982)
- Ponchatrain State Bank (Failed 1991, Assumed by FNBC)
- National Bank of Commerce (Formed with assets of CCTSB, 1933; Renamed First National Bank of Commerce, 1971)
- Euclid National Bank (Euclid, Ohio)
- First Huntington National Bank (founded 1872)
- First USA, Inc. (founded 1985, acquired 1997)
- Lake National Bank (originally Lake County National Bank of Painesville, Ohio. Not to be confused with the current Lake National Bank of Mentor, Ohio - no relation.)
- Liberty Bancorp of Oklahoma (founded 1895)
- Liberty National Bancorp (founded 1854)
- Marine Corp. (founded 1839)
- Marine Corp. of Springfield (founded 1851)
- MBanks (founded 1918)
- Metropolitan Bank (Lima, Ohio; founded 1890, merged 1990)
- Premier Bancorp of Oklahoma (founded 1882)
- Premier Bank of Louisiana
- Team Bank (founded 1873)
- Union Savings and Trust Co. (founded 1812)
- Valley Bank and Trust Co. (founded 1948)
- Valley National Bank of Arizona (founded 1899)
- Winters National Corp. (Dayton, Ohio) (founded 1815)
- First Chicago NBD
- First National Bank of Chicago (founded 1863)
- National Bank of Detroit (founded 1933)
- Genesee Merchants Bank and Trust Co. (founded 1872)
- Wyandotte Savings Bank (Wyandotte, Michigan; founded 1871, acquired 1989)
- American National Bank (founded 1928)
- First National Bank of Plymouth (founded 1871)
- Gainer Corp. (founded 1885)
- Gary-Wheaton Bank (founded 1874)
- INB Financial Corp. (founded 1883)
- Lake Shore Bancorp (founded 1943)
- Metropolitan National Bank (founded 1884)
- Midwest Commerce Corp. (founded 1872)
- Peoples State Bank of Belleville (founded 1913)
- Ravenswood Financial Corp. (founded 1933)
- Roscommon State Bank (founded 1907)
- Union Bancorp (founded 1916)
- Wayne State Bank (founded 1854)
- West Michigan Financial Corp. (founded 1895)
- Winnetka State Bank (founded 1894)
- Wolverine State Bank (founded 1887)
Private equity
In 2001, Dimon selected former colleague Dick Cashin, from Citicorp Venture Capital to run a new private equity effort within Bank One, One Equity Partners. Dick Cashin is the brother of Steven Cashin, founder and CEO of Pan African Capital Group, based in Washington, D.C.
In 2005, Bank One's private equity affiliate, One Equity Partners was selected to be the exclusive private equity affiliate for the combined firm, prompting the spinout of JPMorgan's private equity affiliate, which is today CCMP Capital.
See also
- Wingspan Bank
References
External links
- Bank One (Archive)
Interesting Informations
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