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NationsBank
NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. The company named NationsBank was formed through the merger of several other banks in 1991, and prior to that had been through multiple iterations. Its oldest predecessor companies had been Commercial National Bank (CNB), formed in 1874, and American Trust Company founded in 1909.[citation needed] In 1998, NationsBank acquired BankAmerica, and modified that better-known name to become Bank of America Corporation. The CEO of NationsBank throughout its entire existence was Hugh McColl, who led the merger with BankAmerica and became the first CEO of the present-day Bank of America.
NationsBank traced its roots to two banks in Charlotte. Commercial National Bank (CNB), the earliest forerunner of NationsBank, was formed in 1874. American Trust Company was founded a few blocks down Tryon Street in 1909.[citation needed]
In 1957, American Trust merged with Commercial National to form American Commercial Bank. American Trust was the nominal survivor, and its president, Addison Reese, became president of the merged bank. Only four years later, in 1960, American Commercial merged with Greensboro-based Security National Bank to form North Carolina National Bank (NCNB). Although American Commercial was the nominal survivor, it gave up its North Carolina state charter and took over Security's national charter. In 1969, NCNB reorganized as a holding company, NCNB Corporation.
In 1973 Reese was succeeded as CEO by Tom Storrs, who the next year turned the presidency of NCNB over to then 39-year-old Hugh McColl, who began an aggressive period of expansion. This was initially a defensive move. At the time, it was feared that the New York City money center banks might devour local Southern banks. It was believed that the only way to prevent this was if the stronger banks in the region became too rich to be taken over. NCNB expanded beyond North Carolina for the first time in 1982, when it purchased Lake City, Florida–based First National Bank of Lake City. McColl became CEO of NCNB the following year. McColl would remain CEO until 2001, usually as president and intermittently as chairman.
In 1988, NCNB's assets grew to $60 billion after it bought the failed First RepublicBank Corporation of Dallas, Texas from the FDIC. FirstRepublic, the largest bank in Texas, had entered FDIC receivership after filing bankruptcy in March, and was the largest FDIC bank failure in history.[citation needed]
By that time, NCNB had become associated with "mergers, acquisitions, expansion, integration". From 1989 to 1992, NCNB acquired over 200 thrifts and community banks, many of these through the Resolution Trust program. Favorable terms, with the FDIC assuming most of the loan portfolios and absorbing mark-to-market losses, allowed NCNB to expand profitably, and a cost-cutting culture improved margins. Eventually, NCNB built a branch network stretching from Virginia to Florida, in addition to Texas.[citation needed]
In 1989, NCNB tried to become even more powerful by launching a hostile bid for Citizens & Southern Corporation of Atlanta, which had been the South's biggest bank for much of the 20th century until NCNB passed it. Partly as a defensive measure, C&S merged with Sovran Financial Corporation of Norfolk, Virginia to form C&S/Sovran.[citation needed]
Only two years later, however, C&S/Sovran was nearly brought down by problem loans in the Washington, D.C./Northern Virginia market, and was all but forced to merge with NCNB to form NationsBank. This created the largest bank in the Southeast, with assets of $118 billion. The merger allowed NCNB/NationsBank to enter Tennessee and Maryland for the first time. At one stroke, it became a major player in Georgia and Virginia, where it previously had a minimal presence.[citation needed]
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NationsBank
NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. The company named NationsBank was formed through the merger of several other banks in 1991, and prior to that had been through multiple iterations. Its oldest predecessor companies had been Commercial National Bank (CNB), formed in 1874, and American Trust Company founded in 1909.[citation needed] In 1998, NationsBank acquired BankAmerica, and modified that better-known name to become Bank of America Corporation. The CEO of NationsBank throughout its entire existence was Hugh McColl, who led the merger with BankAmerica and became the first CEO of the present-day Bank of America.
NationsBank traced its roots to two banks in Charlotte. Commercial National Bank (CNB), the earliest forerunner of NationsBank, was formed in 1874. American Trust Company was founded a few blocks down Tryon Street in 1909.[citation needed]
In 1957, American Trust merged with Commercial National to form American Commercial Bank. American Trust was the nominal survivor, and its president, Addison Reese, became president of the merged bank. Only four years later, in 1960, American Commercial merged with Greensboro-based Security National Bank to form North Carolina National Bank (NCNB). Although American Commercial was the nominal survivor, it gave up its North Carolina state charter and took over Security's national charter. In 1969, NCNB reorganized as a holding company, NCNB Corporation.
In 1973 Reese was succeeded as CEO by Tom Storrs, who the next year turned the presidency of NCNB over to then 39-year-old Hugh McColl, who began an aggressive period of expansion. This was initially a defensive move. At the time, it was feared that the New York City money center banks might devour local Southern banks. It was believed that the only way to prevent this was if the stronger banks in the region became too rich to be taken over. NCNB expanded beyond North Carolina for the first time in 1982, when it purchased Lake City, Florida–based First National Bank of Lake City. McColl became CEO of NCNB the following year. McColl would remain CEO until 2001, usually as president and intermittently as chairman.
In 1988, NCNB's assets grew to $60 billion after it bought the failed First RepublicBank Corporation of Dallas, Texas from the FDIC. FirstRepublic, the largest bank in Texas, had entered FDIC receivership after filing bankruptcy in March, and was the largest FDIC bank failure in history.[citation needed]
By that time, NCNB had become associated with "mergers, acquisitions, expansion, integration". From 1989 to 1992, NCNB acquired over 200 thrifts and community banks, many of these through the Resolution Trust program. Favorable terms, with the FDIC assuming most of the loan portfolios and absorbing mark-to-market losses, allowed NCNB to expand profitably, and a cost-cutting culture improved margins. Eventually, NCNB built a branch network stretching from Virginia to Florida, in addition to Texas.[citation needed]
In 1989, NCNB tried to become even more powerful by launching a hostile bid for Citizens & Southern Corporation of Atlanta, which had been the South's biggest bank for much of the 20th century until NCNB passed it. Partly as a defensive measure, C&S merged with Sovran Financial Corporation of Norfolk, Virginia to form C&S/Sovran.[citation needed]
Only two years later, however, C&S/Sovran was nearly brought down by problem loans in the Washington, D.C./Northern Virginia market, and was all but forced to merge with NCNB to form NationsBank. This created the largest bank in the Southeast, with assets of $118 billion. The merger allowed NCNB/NationsBank to enter Tennessee and Maryland for the first time. At one stroke, it became a major player in Georgia and Virginia, where it previously had a minimal presence.[citation needed]