National City Corporation is a regional bank holding company based in Cleveland, Ohio, USA, founded in 1845; it was once one of the ten largest American banks in terms of deposits, mortgages, and home equity credit lines. Subsidiary National City Mortgage is credited for making the first mortgage in America. The company operates through an extensive banking network mainly in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania, Florida, and Wisconsin, and also serves customers in specific markets nationwide. Its core businesses include commercial and retail banking, mortgage financing and services, consumer finance, and asset management. The bank reaches customers primarily through mass advertising and offers comprehensive online banking services. In its last years, the company was known in the media by abbreviated NatCity , with its investment banking arm even carrying the official name of NatCity Investments .
In 2007, National City Corp. was ranked 188th in the Fortune 500 list, and ranked 9th in terms of revenue in the US commercial banking industry with total assets of about $ 140 billion.
PNC Financial Services announced October 24, 2008, the purchase of National City for approximately $ 5.2 billion in shares with funds from US Treasury. At the time of the acquisition, National City has become the 7th largest bank in the United States, two places ahead of the PNC acquisition. The agreement was settled on December 31, 2008, and the name of the National City has been retired on June 14, 2010.
Video National City Corp.
Regulatory monitoring
The Wall Street Journal reported on June 6, 2008, that National City Corp. has signed a memorandum of understanding with federal regulators, which effectively put the bank on probation. The terms of the secret agreement, entered into the preceding month with the Office of Currency Financial Supervisors (which regulates nationally hired banks), is unknown.
On June 10, 2008, National City Corp. confirmed that it has reached an agreement with the regulator "on the level of capital, risk management practices and other aspects of its business." The Company stated that there was no material development in these areas because the memorandum of understanding was signed in April and May 2008.
Maps National City Corp.
History
National City Bank was established on May 17, 1845, when a group of Cleveland businessmen collected $ 50,000 to organize City Bank of Cleveland , the first bank opened under the Ohio Bank Act of 1845 in a small town with no gas , electricity, public waterways, or railroads. Ruben Sheldon and Theodoric C. Severance, formerly of Fireman's Insurance Company, organized The City Bank of Cleveland. The only city bank at the time, opened its doors to the public at No. 52 Superior Street.
In April 1973, National City Corporation was formed as a holding company for National City Bank of Cleveland to allow the company to expand beyond Cuyahoga County through the purchase of other banks.
In February 1992, National City announced that all member banks would change to operate under the name of National City within three years. To date, all of the acquired banks continue to operate under the same name they used at the time of their acquisition. This change will allow integrated brands through companies and simplify advertising.
Expansion in Ohio
In February 1975, National City Corp. announced that it was seeking to acquire assets of a failed Northern Ohio Bank from the Federal Deposit Insurance Corporation. This acquisition was completed in March 1975.
In March 1975, National City Corp. announced that it acquired Cleveland-based Bank of Cleveland for an undisclosed amount. This acquisition was completed in January 1976.
In December 1975, National City Corp. announced that it acquired Elyria's US-based First National Bank of Elyria for $ 4.6 million in cash. This acquisition was completed in August 1976.
In April 1977, National City Corp. announced that it acquired Dayton-based First National Bank of Dayton for $ 40 million.
In July 1979, National City Corp. announced that it acquired Norwalk-based Huron County Banking Bank at an undisclosed price. This acquisition was completed in May 1979.
In September 1981, National City Corp. announced that it acquired Akron-based Goodyear Bank at an undisclosed price.
In December 1981, National City Corp. announced that it acquired Ohio-based Bancorp Ohio Citizens headquartered in Toledo for $ 64 million in cash and paper money.
In March 1984, National City Corp. announced that it acquired Columbus-based Bancoh Bancorp for $ 310 million in shares and cash.
In May 1986, Broadview Savings & amp; Cleveland is troubled. The Loan Company announced that it sold 18 of its 38 offices to National City for $ 24 million.
In June 1989, National City Corp. announced that it acquired the Dayton-based Permata Savings Association without the help of federal assistance. This acquisition was completed in January 1990.
In April 1993, National City Corp. announced that it acquired Youngstown-based Ohio Bancorp for $ 200 million in shares and cash and integrated it into National City Bank, Northeast. This acquisition was completed in October 1993.
In February 2004, National City Corp. announced that it acquired Cincinnati-based Provident Financial Group, with a major bank of Provident Bank and its offices located in Southwest Ohio and North Kentucky, for 2.1 billion US dollars. This acquisition was completed in July 2004.
In June 2004, National City Corp. announced that it acquired Wayne Bancorp-based Wooster for $ 180 million in cash. This acquisition was completed in October 2004.
Expansion in Kentucky
In January 1988, National City Corp. announced that it acquired the First Kentucky National Corporation based in Louisville for $ 660 million. The acquisition was completed in July 1988 and gave National City a strong presence in Kentucky plus a presence of marks in southern Indiana.
In February 1993, First Kentucky National Corp, a wholly-owned subsidiary of National City Corp., was renamed the National City Bank Kentucky.
In January 1995, National City Corp. announced that it acquired United Bancorp from Kentucky Inc. based in Lexington for $ 63 million.
Expansion in Indiana
In October 1991, National City Corp. announced that it acquired the Indianapolis-based Merchants National Corporation with its principal banks, Merchants National Bank and Trust Company of Indianapolis and 14 other banks for $ 604 million. This acquisition was completed in May 1992.
In July 1994, National City Corp. announced that it acquired the Central Indiana Bancorp based in Kokomo for $ 48 million.
In January 1998, National City Corp. announced that it acquired Fort Wayne National Corporation based in Fort Wayne for $ 800 million. This acquisition was completed in March 1998.
Expansion in Pennsylvania
In August 1995, National City Corp. announced that it acquired Pittsburgh-based Integra Financial Corporation for $ 2.1 billion. The acquisition was completed in May 1996 at a price of $ 2.4 billion.
Expansion in Michigan
In December 1997, National City Corp. announced that it acquired Kalamazoo-based First of America Bank Corporation, with offices in Michigan, Illinois and Indiana, at a price of 7.1 billion dollars. This acquisition was completed in March 1998.
Expansion in Missouri
In November 2003, National City Corp. announced that it acquired Allegiant Bancorp based in St. Louis. Louis is priced at $ 475 million. The acquisition was completed in April 2004 at a price of $ 500 million.
Expansion in Florida
In July 2006, National City Corp. announced that it acquired Fort Pierce-based Florida Bancshares at a price of 1.1 billion US dollars. This acquisition was completed in December 2006.
In July 2006, National City Corp. announced that it acquired West Palm Beach-based Harbor Fidelity Bankshares for $ 1 billion. The acquisition was completed in January 2007.
Expansion in Illinois and Wisconsin
In May 2007, National City Corp. announced that it acquired MAF Bancorp based in Clarendon Hills, with offices in Chicago and Milwaukee, for $ 1.9 billion in stock. This acquisition was completed in September 2007.
Recent transactions
National City continued its acquisition spree from 2004 to 2008, led by a 2.1 billion purchase of the Cincinnati-based Provident Financial Group. Provident Financial Group's banking group, Provident Bank, is specialized in a warehouse loan facility where it extends commercial credit lines for mortgage banking companies so that mortgage banking companies can lend to their customers and either maintain the loan or sell it in the secondary market to the government. - sponsored companies (GSEs) or other institutional investors. After the acquisition, National City was renamed the division of National City Warehouse Resources . The warehouse loan division is a profit center and does not contribute to the fall of the bank. In addition, in 2005, National City acquired Allegiant Bancorp to secure a presence in the St. Louis, Missouri. In 2006, they acquired Fidelity Bankshares Inc. for a $ 1 billion transaction that is half cash, half share. The Bank also acquired Harbor Florida Bancshares Inc. through a $ 1.1 billion stock deal, with the two acquired banks located in Florida; This acquisition provides 7.4 billion assets and 94 branches in Florida.
On the other side of the ledger, National City sells to Bank of America, an 83% stake in the National Processing Company, which gets fees from processing merchant credit card transactions. Sales of San Jose, California, based on the First Franklin origination franchise and associated service platform for Merrill Lynch & amp; Co completed on December 30, 2006 for $ 1.3 billion.
In May 2007, National City announced the purchase of MAF Bancorp Inc., the parent company for MidAmerica Bank. On June 30, 2006, MidAmerica Bank had a 9-rank market share in the Chicago metropolitan area (Chicago-Joliet-Naperville) at 2.18%. After the merger using the same dataset, the combined National City and MidAmerica Banks are expected to be ranked 4th in the Chicago market with 3.96% market share and deposits of more than $ 10 billion.
The next strategic change and fallout
In the late 1990s, under former CEO David Daberko, National City embarked on a strategy to increase its asset yield. In 1999, the company bought First Franklin Financial Corp., a major subprime mortgage lender. Instead of selling loans, like most mortgage companies, National City maintains many loans to increase the net interest spread. The loan also comes from aggressive loans granted to the company by third party mortgage brokers, as well as coming from a large number of home equity loans. The number of residential mortgage loans grew rapidly and exceeded commercial credit levels. In 2003, National City was the sixth largest mortgage lender in the country. The company sold its First Franklin Financial subsidiary in December 2006, but retained substantial amounts of its subsidiary loans. Management failed to recognize the level of problems in the subprime market and did not take aggressive action to reduce its mortgage real estate portfolio. National City then made several other strategic mistakes, including repurchasing its $ 3 billion stake in early 2007, thereby reducing its capital level, and expanding into the Florida market in late 2006, just before the real estate market suffered a severe decline.. When the subprime mortgage market began to fall freely in mid-2007 and continued into 2008, loan losses increased. In the third quarter of 2007, the company suffered a net loss of $ 19 million. In the second quarter of 2008, the company suffered a net loss of $ 1.8 billion.
Acquired by PNC
On October 9, 2008, The Wall Street Journal published an article citing anonymous sources indicating that National City is in talks with several other banks for possible sales. The article mentions Pittsburgh-based PNC Financial Services, Toronto-based Scotiabank, and Minneapolis-based Bancorp AS as a major competitor. A spokesman for National City declined to comment on the report. On October 24, 2008, PNC announced that it has completed a purchase agreement for National City.
The acquisition is a share purchase transaction that will be completed before the end of 2008. National City will be merged into PNC, and the National City brand will be dissolved. The deal was approved by shareholders of both banks on December 23, 2008, and the acquisition is completed by 31 December.
The deal makes PNC the largest bank in Pennsylvania, Ohio, and Kentucky, as well as the second largest bank in Maryland and Indiana. This greatly expanded the PNC presence in the Midwest, as well as entering the PNC into the Florida market. Pittsburgh, Louisville, Kentucky, and Cincinnati are the three markets prior to the acquisition where both banks have a large presence.
In the case of Pittsburgh, the two banks have significant overlap, leading to antitrust problems in western Pennsylvania, as both banks have the top two market shares in the region. As a result, the US Department of Justice requires PNC to sell 50 branches of National City in the Pittsburgh area and 11 more branches in and around Erie to competitors. On April 7, 2009, PNC reached an agreement with First Niagara Bank based in Buffalo to sell 57 branches; First Niagara officially took over the branch on September 8, after signs were changed from the National City over the Labor Day weekend of that year. The branches not purchased by First Niagara are four in Crawford County, Pennsylvania where PNC still needs to be divested: a branch in Titusville is sold to the Peasant National Bank Emlenton, with three others (one at Conneaut Lake, and others). two in Meadville, including a branch inside Wal-Mart) were sold to Marquette Savings Bank.
Although employees in sold-out branches are maintained, there is still heavy dismissal at National City headquarters in Cleveland. PNC initially stated that 5,800 employees would be laid off throughout the company throughout the new organization. In fact, more than 15,000 employees were dismissed, all from the previous National City, with PNC losing customers and the deposit market share in the Cleveland area as a result. National City Bank has become the largest bank in the Cleveland market and holds the largest deposit share of all its competitors. Following the merger of PNC, Crosstown's competitor, KeyBank, became the largest bank in Cleveland, acquiring a significant share of deposits ever owned by National City; KeyBank will then buy First Niagara and move to the PNC Pittsburgh home market with the former National City PNC branch to be sold.
Source of the article : Wikipedia
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