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*[http://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1919 Mills B Lane, Jr.]
*[http://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1919 Mills B Lane, Jr.]
*[http://www.dailymotion.com/video/x23en3_cs-bank_ads C&S of Georgia Checking Account TV Commercial]
*[http://www.dailymotion.com/video/x23en3_cs-bank_ads C&S of Georgia Checking Account TV Commercial]
*[http://www.nytimes.com/1991/07/23/business/c-s-sovran-merger-set-with-ncnb.html NY Times Article on C&S/NCNB Merger]


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{{coord missing|South Carolina}}

Revision as of 06:14, 23 July 2009

Citizens and Southern National Bank (C&S) began as a Georgia institution that expanded into South Carolina, Florida and into other states via mergers. C&S became part of NationsBank (formerly North Carolina National Bank) in 1991 when NationsBank bought newly merged C&S/Sovran. Both are now part of the modern day Bank of America.

A former Charleston, SC, C&S location is the second oldest bank building in the U.S. and possibly the oldest still used as a bank. Constructed in 1798 as the Bank of South Carolina it later became the home for the Charleston Library Society (1835), then belonged to the Charleston Chamber of Commerce (1914), and finally became a bank again when C&S purchased the two-story building in 1966.[1][2] Located at 50 Broad Street, it is now a private office building.[3]

History

Logo of the Citizens & Southern National Banks of Georgia, used prior to the NationsBank merger
Logo of the Citizens & Southern National Bank of South Carolina, used prior to the NationsBank merger

The bank began in Georgia with the merger of the Citizens Bank of Savannah (established November 2, 1887) and its crosstown rival, the Southern Bank of Georgia in 1906.[4] Mills B. Lane had begun at Citizens Bank as a vice president and director in 1891. In 1901, Lane became president of Citizens Bank. In 1906, Lane and his associates purchased Southern Bank of Georgia enabling them to merge the two banks as the new C&S Bank.[5] The newly merged banks were officially named the Citizens and Southern Bank of Georgia. In preparation to open offices in South Carolina, Citizens and Southern Bank received its charter from the Comptroller of the Currency on May 2, 1927. The "place where its operations ... are to be carried on," is described in that charter as the "City of Savannah, in the County of Chatham and State of Georgia."[6] Mills B. Lane and his sons, Mills Lane, Jr. and Hugh C. Lane were important figures in the growth and success of C&S. Hugh C. Lane was elected chairman of C&S in 1960. Mills Lane III (boxing referee, TV personality Judge Mills Lane) is a Savannah native and part of the Lane family often associated with C&S Bank.[7]

In South Carolina, parties associated with C&S of Georgia purchased all the stock of Charleston-based Atlantic Savings Bank and Atlantic National Bank. Atlantic Savings Bank, renamed in 1918, opened October 1, 1874, as the Germania Savings Bank. In May 1928, the names of the two Atlantic banks were changed to Citizens and Southern Bank of South Carolina, although the bank was operating only in Charleston with two locations on King Street and was owned by C&S of Georgia.[8]

Split, growth, and reunification

Quick growth ensued in both South Carolina and Georgia. In 1940, preparing for new federal rules that prohibited banks from operating in multiple states, C&S of South Carolina became a separate corporate entity from C&S of Georgia, allowing South Carolina to have a large "local" bank. In 1956, C&S of South Carolina merged with Growers Bank and Trust in Inman, South Carolina[5][4] In 1960, C&S of South Carolina installed computers which improved efficiency allowing accountholders with $100 minimum balance per month to have free checking, a first in South Carolina.[9]

In 1985, the Citizens and Southern Georgia Corporation agreed to acquire Citizens and Southern National Bank of South Carolina for $400m or $55/share, reuniting (in 1986) the two banks which had been separated in 1940. At the time the two C&S banks reunited, C&S of South Carolina had assets of $2.5 billion while C&S of Georgia's assets were $12.3 billion. [10]

C&S of Georgia also acquired Landmark Banks of Florida in 1985. C&S of Georgia doubled its size in eighteen months as a result of the acquisition of Landmark Banks and C&S of South Carolina.[4]

C&S had several affiliated companies including the C&S Corporation, the C&S Realty Corporation, the C&S Computer Services Corporation, and the C&S Housing Corporation.

"Distressed" due to mergers

From 1984–1986, the Southeastern Regional Banking Compact allowed Southern banks with primarily Southern deposits to acquire or be acquired by each other while keeping the feared New York, Chicago, and West Coast banks out. [11] This led numerous Southern banks to begin buying regional competitors.

Sovran Bank, soon to be purchased by C&S, acquired D.C. National Bancorp in 1986, then Commerce Union Bank in 1987.[4]

Mergers

Sovran Financial Corp.

Logo of former Sovran Bank, used prior to the creation of NationsBank

In 1988, C&S (before the Sovran merger) initiated merger talks with First Federal Savings Bank in Brunswick Ga. However, First Federal rejected the deal claiming C&S's offer was insufficient and C&S ended the talks. Later, First Federal unsuccessfully sued C&S/Sovran to block the NCNB/C&S/Sovran merger.[12]

In 1990, C&S acquired Sovran Financial Corp (Norfolk, VA) and its newly purchased acquisitions and became C&S/Sovran. C&S gained the Sovran branches in Virginia, Maryland, Kentucky, Tennessee and the District of Columbia. Combined with C&S branches in Florida, Georgia, and South Carolina, C&S/Sovran appeared to be an enormous regional bank resistant to takeover attempts by other banks.[4]

NationsBank

Logo of the former NationsBank Corp.

The hasty merger of C&S and Sovran Financial was intended to create a strong, dominant regional bank. However, two problems soon emerged that made C&S/Sovran a takeover target. First was infighting between executives of the two newly combined banks with an Atlanta faction (C&S) and a Virginia faction (Sovran). Second was former Sovran problem loans which weakened the newly merged banks. [13]

North Carolina National Bank (NCNB) which had been busy expanding by taking over distressed banks like Texas' First Republic Bank Corporation, [14] quickly recognized that C&S/Sovran was also "distressed". The NCNB purchase of First Republic almost doubled NCNB's assets [15] which helped it to acquire the weakened C&S/Sovran in 1991. C&S/Sovran had $49 billion in assets compared to NCNBs $69 billion in assets upon merger. NCNB then created the NationsBank brand bringing C&S, Sovran and NCNB under a single banner.[16]

Before the NCNB/C&S/Sovran merger, NCNB was ranked 10th in the US in terms of assets while C&S/Sovran was ranked 12th. Following the merger, NationsBank was ranked 3rd.[4]

C&S/Sovran merged into NCNB as a stock swap transaction and was valued at $4.259 billion. NCNB issued .84 of its shares for each C&S/Sovran shares. Based on NCNB's closing stock price of $37 on July 19, 1991, the last full trading day prior to the announcement, each share of C&S/Sovran was valued at $31.08.[17]

As part of the merger, some C&S branches were sold to other banks. The Moncks Corner (SC) C&S was sold to First National Bank, C&S in Marion, Barnwell, Chester, St. George, Darlington, and Williston, SC, were sold to First Citizens Bank. NCNB of South Carolina also sold some branches to other South Carolina banks. NCNB's Hilton Head, SC, branch went to First Union of NC.[18]

NationsBank continued to expand, eventually buying BankAmerica Corp. which had previously merged with Security Pacific National Bank of Los Angeles, another large California bank. [19] NationsBank chose to adopt the Bank of America marque and became Bank of America Corp, replacing the old BankAmerica eagle logo with a new stylized logo based on the U.S. flag.[20]

Headquarters buildings

C&S had two headquarters buildings in Atlanta, following its expansion out of Savannah. The first building is still standing and is known today as the Georgia State University J. Mack Robinson College of Business. It was built in 1901,[21] and has 14 floors. It was the first steel framed building to be built in Atlanta[22]. It was known as the Empire Building from 1901–1920, the Atlanta Trust Company Building from 1920-1929, and as the Citizens and Southern National Bank Building from 1929-1992.[23] This building was given as a gift to GSU in 1992 following the acquisition of C&S by NCNB. J. Mack Robinson had been a directer and large stockholder of NCNB rival, Wachovia Bank. [24]

In 1968, C&S moved its headquarters to the newly built C&S Bank Tower[25] (built 1964–1968) which was designed by Richard Aeck (1912–1996). A unique building for that time in Atlanta, it echoed Frank Lloyd Wright's design used in the Johnson Wax Research Tower (1944). [26]

The Aeck C&S Bank Tower building was later razed in the early 1990s to make way for a conference center for the planned new C&S headquarters building.

Construction of a new, much larger headquarters building in Atlanta was not completed until after NCNB had acquired C&S/Sovran and adopted the NationsBank brand. The new building would never be a headquarters for C&S. It was renamed NationsBank Plaza in 1992, and then renamed to Bank of America Plaza in 1998 after the NationsBank/BankAmerica Corp merger and NationsBank adopted the Bank of America brand to operate its banking operations under.

References

  1. ^ http://www.cr.nps.gov/nr/travel/charleston/cit.htm, Retrieved on 2009-04-23.
  2. ^ http://www.nationalregister.sc.gov/charleston/S10817710034, Retrieved on 2009-04-23.
  3. ^ http://www.nps.gov/history/nr/travel/charleston/cit.htm
  4. ^ a b c d e f http://www.referenceforbusiness.com/history2/18/Bank-of-America-Corporation.html, Retrieved on 2009-04-23.
  5. ^ a b http://www.knowitall.org/legacy/laureates/Hugh%20C.%20Lane.html, Retrieved on 2009-04-23.
  6. ^ http://supreme.justia.com/us/434/35/case.html, Retrieved on 2009-04-23.
  7. ^ http://www.mikemooneyham.com/pages/viewfull.cfm?ObjectID=BCE2CFC4-F0BB-4F01-8EAA0E585242561D, Retrieved on 2009-04-23.
  8. ^ http://www.clansinclairsc.org/csbank.htm, Retrieved on 2009-04-23.
  9. ^ http://www.knowitall.org/legacy/laureates/Hugh%20C.%20Lane.html
  10. ^ http://query.nytimes.com/gst/fullpage.html?res=9804E0DE1739F93BA2575AC0A963948260, Retrieved on 2009-04-23.
  11. ^ http://studentorgs.law.unc.edu/documents/ncbank/volume11/hills.pdf, Retrieved on 2009-04-23.
  12. ^ http://query.nytimes.com/gst/fullpage.html?res=9D0CE7D8153AF935A35752C1A967958260, Retrieved on 2009-04-23.
  13. ^ http://www.bai.org/bankingstrategies/1998-nov-dec/BankAmericas_Stress_Test, Retrieved on 2009-04-23.
  14. ^ http://money.cnn.com/magazines/fortune/fortune_archive/2005/09/05/8271409/index.htm, Retrieved on 2009-04-23.
  15. ^ http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20060205/NEWS/602050359, Retrieved on 2009-04-23.
  16. ^ http://www.identityworks.com/articles/spaeth1992.pdf, Retrieved on 2009-04-23.
  17. ^ http://www.alacrastore.com/storecontent/Thomson_M&A/NCNB_Corp_Charlotte_NC_acquires_C_S_Sovran_Corp_from_Bank_of_America_Corp-211321020, Retrieved on 2009-04-23.
  18. ^ http://www.scbankers.org/documents/SCBA_Article_20050414152926.pdf
  19. ^ http://www.duke.edu/~charvey/Finance/club/company.htm, Retrieved on 2009-04-23.
  20. ^ http://findarticles.com/p/articles/mi_qa3656/is_200007/ai_n8910638/
  21. ^ http://en.structurae.de/structures/data/index.cfm?id=s0038961
  22. ^ http://www.atlantatimemachine.com/downtown/broad35.htm
  23. ^ http://www.emporis.com/en/wm/bu/?id=jmackrobinsoncollegeofbusinessadministration-atlanta-ga-usa, Retrieved on 2009-04-23.
  24. ^ http://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1922
  25. ^ http://www.emporis.com/application/?nav=building&id=102766
  26. ^ http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-697, Retrieved on 2009-04-23.

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