Bank United of Texas
|Bank United of Texas|
|Traded as||NYSE: BKP|
|Industry||Banking; Federal savings bank|
|Fate||Acquired by Washington Mutual|
|Founded||December 31, 1988in Houston, Texas as United Savings Association FSB|
|Defunct||February 14, 2001|
Number of locations
|Website||archived official website|
Bank United Corporation, headquartered in Houston, Texas, was a broad-based financial services provider and the largest publicly traded depository institution headquartered in Texas before its merger with Washington Mutual in 2001. Bank United Corp. conducted its business through its wholly owned subsidiary, Bank United, a federally chartered savings bank. The company operated a 155-branch community banking network in Texas, including 77 in the Dallas/Fort Worth Metroplex, 66 in the greater Houston area, five in Midland, four in Austin, and three in San Antonio; operated 19 SBA lending offices in 14 states; was a national middle market commercial bank with 23 regional offices in 16 states; originated mortgage loans through 11 wholesale offices in 10 states; operated a national mortgage servicing business serving approximately 324,000 customers, and managed an investment portfolio. As of June 30, 2000, Bank United Corp. had assets of $18.2 billion, deposits of $8.8 billion, and stockholder's equity of $823 million.
At the end of 1988, Lewis Ranieri and his investor group Ranieri Wilson & Company acquired the deposits and 19 offices of the insolvent savings and loan association named United Savings Association of Texas from the Federal Savings and Loan Insurance Corporation for $200 million to create the new United Savings Association FSB.
In June 1990, United Savings acquired the deposits and 19 offices of the insolvent Murray Savings Association of Dallas from the Resolution Trust Corporation for $809 million.
In September 1991, United Savings acquired from the Resolution Trust Corporation the deposits and 20 offices of the insolvent San Jacinto Savings Association for $34.3 million and also the deposits and 6 offices of the failed BancPlus Federal Savings Association in Pasadena for $1.7 million.
In October 1991, United Savings acquired from the Resolution Trust Corporation just the deposits from 1 office of the insolvent Victoria Savings Association of San Antonio for a $250 premium.
In 1996, the privately owned holding company started to sell stock via an IPO while simultaneously, the original investors took this opportunity to cash in on their original investment by selling off their original shares. The Federal Deposit Insurance Corporation held warrants worth 1.5 million common shares which were redeemed at that time.
In January 1999, Bank United announced that they had signed an agreement with Kroger to open 50 more branches inside Kroger supermarkets in the Houston and Dallas-Fort Worth metropolitan areas that were previously occupied by Bank of America and NationsBank.
In March 1999, Bank United announced the pending acquisition of the Texas Central Bancshares with its 3-branch office Texas Central Bank subsidiary for an undisclosed amount. The acquisition was completed in August 1999.
In August 2000, Washington Mutual announced the pending acquisition of the Houston-based Bank United Corporation with its 155 branch offices, all located in Texas, for $1.49 billion in stock. The acquisition by was completed in February 2001.
- "Washington Mutual Completes Merger with Bank United" – via AllBusiness.com.[dead link]
- "Bank United website". Bank United. Archived from the original on October 19, 2000 – via Internet Archive.
- Nash, Nathaniel C. (December 31, 1988). "Ford Motor to Buy Weak Saving Units With Federal Help". New York Times.
- Steinmetz, Greg (December 31, 1988). "N.Y. financier leads United takeover". Houston Chronicle. p. 1. (Subscription required (. ))
Federal regulators concluded another massive Texas bailout late Friday with the sale of United Savings Association of Texas to an investment group led by a New York financier. Hyperion Partners, led by former Salomon Brothers Vice Chairman Lewis Ranieri, will invest $200 million to buy the Houston savings and loan that was once the largest in Texas. The Federal Savings and Loan Insurance Corp. will provide $1.37 billion to cover the thrift's losses. The deal was made under the regulator's controversial Southwest Plan to rebuild the Texas thrift industry and caps a week of frenzied deal-making in Texas. Regulators worked round-the-clock to beat the year-end expiration of tax breaks vital to investors buying troubled thrifts... United's 19 branches will open Tuesday under the name United Savings Association of Texas, Federal Savings Bank. Depositors are fully insured up to $100,000... United, like other Texas savings and loans, fell prey to the collapse of the Texas real estate market. Other factors also played a role, according to the Federal Home Loan Bank Board. Among them were poor underwriting, poor record keeping and insufficient internal controls. Unlike previous Southwest Plan deals, the United transaction offers few opportunities to cut costs. The thrift sold half its branches earlier this year and had by far the lowest overhead in the country among large savings and loans.
- "19 United Savings branches reopen". United Press International. January 3, 1989.
- Gill, Dee (May 15, 1990). "Houston S&L buys Ameriway Savings". Houston Chronicle. p. 1. (Subscription required (. ))
A sister company of United Savings Association of Texas bought the nearly $219 million worth of deposits of the failed Ameriway Savings Association Monday evening.
- "Thrift acquires Murray Savings". Austin American-Statesman. June 9, 1990. p. C11. (Subscription required (. ))
Houston-based United Savings Association of the Southwest FSB on Friday bought the insured deposits and 19 former offices of insolvent Murray Savings Association of Dallas, including one branch in Austin... United Savings assumed about $1.15 billion of Murray's deposits, which remain fully insured, and agreed to buy about $809 million of the failed association's cash, home mortgages and performing loans. The Resolution Trust Corp. advanced $467 million in cash and retained assets with a book value of $316 million. The ultimate cost of the sale to the RTC is estimated at $504 million. United Savings of the Southwest is a newly created affiliate of United Savings Association of Texas, which has $3.5 billion in assets and 19 branches including one in Austin. United Savings of the Southwest previously bought the defunct Ameriway Savings of Houston last month. After regulatory review of the 1988 assistance agreement, which enabled the creation of United Savings of Texas, the two affiliated Houston thrifts are expected to merge.
- Golz, Earl (September 28, 1991). "United acquires institution". Austin American-Statesman. p. E3. (Subscription required (. ))
San Jacinto Savings Association, a Houston thrift left with $2.7 billion in assets after once serving as one of Michael Milken's best junk bond customers, was acquired Friday by Houston-based United Savings Association of Texas. United, with two branches in Austin, strengthened its ranking as the second largest thrift in the state by increasing its total assets to $7 billion and its branch locations to 69. San Jacinto had been operating under management of the Resolution Trust Corp. since last December when regulators seized the S&L, then with $3.3 billion in assets and 20 branch locations... United Savings, a product of the old Federal Savings and Loan Insurance Corp.'s Southwest Plan in 1988, by which it acquired insolvent thrifts with federal assistance, one week ago acquired the deposits, locations and selected assets of BancPLUS Federal Savings Association of Pasadena. United assumed all insured deposits of San Jacinto totaling $2.3 billion in 81,904 accounts. Premiums paid by United to the RTC for the franchise and asset pool totaled $34.3 million.
- "Today's digest". Austin American-Statesman. September 21, 1991. p. E1. (Subscription required (. ))
The Resolution Trust Corp. Friday sold two failed S&Ls in Texas to other financial institutions and agreed to pay off $305.4 million in deposits of the failed El Paso Federal Savings Association. The federal agency assigned to United Savings Association of Texas in Pasadena all $521.8 million in deposits of the failed BancPlus Federal Savings Association in Pasadena and to Bayshore National Bank in La Porte all deposits of $47.5 million of the failed Bayshore Federal Savings Association in La Porte... The ultimate cost to the RTC for the Pasadena transaction is estimated at $702 million and for the La Porte transaction, $27.9 million.
- Sixel, L.M. & Ivanovich, David (September 21, 1991). "RTC sells off parts of failed BancPlus - United Savings pays for deposits". Houston Chronicle. p. 25. (Subscription required (. ))
United Savings Association of Texas bought the deposits, branches and some assets of BancPlus Federal Savings Association late Friday from the Resolution Trust Corp., the federal agency charged with selling failed thrifts. While regulators hope eventually to sell off some of BancPlus' remaining assets, they expect taxpayers will end up paying about $702 million for the transaction. United Savings agreed to pay nearly $1.7 million for the right to assume all of BancPlus' 18,000 deposit accounts, which total $521.8 million... The six former BancPlus branches will open Monday and operate during regular banking hours... With the sale Friday, United Savings now has 55 branches including 25 in Dallas, 18 in the Houston area and six others across the state.
- Gill, Dee (October 26, 1991). "Local S&Ls buy deposits of Victoria". Houston Chronicle. p. 1. (Subscription required (. ))
United Savings Association of Texas paid a $250 premium to acquire about $81 million in insured deposits at Victoria's main office in San Antonio. United will move those deposits to one of its own branches in San Antonio and will not reopen the Victoria office.
- "Briefings: United Savings to change its name". Fort Worth Star-Telegram. August 5, 1992. p. 1. (Subscription required (. ))
United Savings Association, the state's second-largest thrift with $6.6 billion in assets, will change its name to Bank United of Texas FSB effective Sept. 9... The Houston-based thrift has 65 offices statewide, including five in Tarrant County. It was formed from six failed Texas thrifts, including San Jacinto Savings.
- "Today's digest". Austin American-Statesman. August 5, 1992. p. E1. (Subscription required (. ))
United Savings Association of Texas is changing its name to Bank United of Texas. The Houston-based institution, which has a statewide network of 65 branches including one in Austin, announced Tuesday it will be known as Bank United.
- Pybus, Kenneth R. (July 7, 1996). "Bank United files for IPO in effort to convert from thrift". Houston Business Journal.
- "Business briefs: Bank United to sell $100 million in stock". Houston Chronicle. June 20, 1996. p. 2. (Subscription required (. ))
The people who built one of the city's largest banks from the ashes of the savings and loan crisis are planning to sell some of their holdings to the public. Bank United Corp., the holding company that owns Bank United of Texas, has filed documents with the Securities and Exchange Commission to sell about $100 million in Class A common shares in an initial public offering... The shares will be sold by LSR Hyperion, the partnership that is the company's largest shareholder with 49 percent of the company's outstanding Class A common stock and 6 percent of the nonvoting Class B stock, as well as other affiliates and partners in the investor group... The shares will be sold by LSR Hyperion, the partnership that is the company's largest shareholder with 49 percent of the company's outstanding Class A common stock and 6 percent of the nonvoting Class B stock, as well as other affiliates and partners in the investor group.
- "Bank United Corp.: Plan is filed with SEC for initial public offering". Wall Street Journal. July 29, 1996. p. B4. (Subscription required (. ))
Bank United Corp., Houston, said it registered with the Securities and Exchange Commission for an initial public offering of as many as 10.5 million common shares. The thrift said it expects the price for the stock to be between $18 and $20 a share. About 9.6 million shares are being sold on behalf of current shareholders, including the Federal Deposit Insurance Corp., which will sell all of a warrant position that includes about 1.5 million common shares. The selling shareholders include Hyperion Partners, a New York investment concern whose principals include Bank United Chairman Lewis Ranieri, the former Salomon Brothers Inc. vice chairman.Alternate Link via ProQuest.
- Pybus, Kenneth R. (January 12, 1997). "Bank United chooses status quo following SAIF recapitalization". Houston Business Journal.
- "Bank United Signs Agreement to Acquire 50 Kroger In-Store Branch Banks". PR Newswire (Press release). January 25, 1999.
- Yip, Pamela (January 22, 1999). "Bank United to take over 50 branches in Texas Kroger stores". Houston Chronicle. p. 1. (Subscription required (. ))
Bank United said Thursday it will take over 50 bank branches in Kroger supermarkets in Houston and the Dallas-Fort Worth area that are currently operated by NationsBank and Bank of America. Bank of America and NationsBank will close those branches as part of a consolidation triggered by their merger. Bank United plans to take over the branches in April.
- "Bank United to Purchase Texas Central Bank". PR Newswire (Press release). March 23, 1999.
- "Bank United Completes Acquisition of Texas Central Bancshares". PR Newswire (Press release). August 27, 1999.
- "Washington Mutual Agrees to Acquire Bank United". New York Times. August 22, 2000.
- Virgin, Bill (August 22, 2000). "Bank's Eyes Are Upon Texas - Washington Mutual Plans to Buy Houston's Bank United Corp., Which Will Provide 155 Branches". Seattle Post-Intelligencer. p. C1. (Subscription required (. ))
Washington Mutual Inc., looking to make itself as much a major player in Texas banking as it is in Washington and California, yesterday said it will buy a Houston-based company in a $1.5 billion stock deal. Seattle-based Washington Mutual will acquire Bank United Corp., the largest publicly traded Texas-based financial institution. Texas was something of an incidental market Washington Mutual picked up in its 1998 acquisition of H.F. Ahmanson & Co.; while the real prize in the Ahmanson deal was its huge share of the market in California, it also had 48 branches in Texas, primarily in Houston and Dallas... Bank United will provide that, with 155 branches, including 66 in Houston, 77 in Dallas-Fort Worth and a handful in Midland, Austin and San Antonio.
- Fuquay, Jim (August 22, 2000). "Bank United says yes to buyout - Washington Mutual to pay $1.5 billion in merger deal". Fort Worth Star-Telegram. p. 1. (Subscription required (. ))
Bank United, the largest financial institution based in Texas, said yesterday that it agreed to be acquired by Washington Mutual, the nation's biggest savings and loan. The deal, valued at $1.5 billion and expected to close by year's end, will greatly increase Washington Mutual's presence in the state. The Seattle-based institution entered Texas in 1998 with its acquisition of H.F. Ahmanson & Co., parent of Savings of America, and the Bank United merger will give it 3 percent of Texas deposits, according to June 30, 1999, reports, the latest available. Washington Mutual, which ranks No. 8 among all U.S. banks and thrifts, also has a previous Texas connection. In 1995, it acquired American Savings, a California thrift owned by Fort Worth investor Robert M. Bass, who became a major Washington Mutual shareholder as a result of that deal. A Bass lieutenant, Jay Crandall, remains on Washington Mutual's board of directors... Bank United has 155 retail branches in the state, including 77 in North Texas, along with 42 commercial loan offices and 11 other sales offices. Washington Mutual has 48 branches in Texas, including two in Tarrant County... About a dozen Texas branches share overlapping market areas, the companies said. That includes downtown Fort Worth, where two branches are within blocks of each other.
- "Washington Mutual and Bank United Holding Companies Merge; Banking Subsidiaries Expected to Merge on Tuesday" (Press release). Washington Mutual. February 9, 2001.
- "Business Briefing: Financial merger completed". San Diego Union Tribune. February 14, 2001. pp. C–2. (Subscription required (. ))
Washington Mutual Inc. of Seattle completed its $2.17 billion merger with Houston-based Bank United Corp. More than 200 retail United Bank branches in Texas will be converted over the next few weeks to branches of Washington Mutual, which operates more than 1,100 retail branches in seven Western states and Florida.
- Greer, Jim (December 17, 2000). "Merger with Washington Mutual will trim Bank United branches". Houston Business Journal.
After finalizing the acquisition of locally based Bank United Corp., Washington Mutual Inc. plans to close about 10 Houston-area branches from the combined operation -- including Bank United's corporate headquarters, sources say.
- Buggs, Shannon (February 14, 2001). "Merged bank planning to close 17 state branches". Houston Chronicle. p. 1. (Subscription required (. ))
Bank United and Washington Mutual on Tuesday identified 17 Texas bank branches that will close this summer as part of the recently completed merger of the two institutions.