Florida National Bank
Encyclopedia
Florida National Bank founded in 1905, grew to became the second largest commercial bank
in Florida
. Florida National Group was acquired in 1990 by First Union Corporation
, which was renamed Wachovia
in 2001.
. Millionaire Alfred I. du Pont
acquired a major interest in the FNB shortly after moving to Jacksonville in the mid-1920s, but he was unable to gain control until the Great Depression
struck in 1929. The FNB stayed solvent throughout the 1930s because du Pont put $15 million of his own money into the institution to cover Bank run
s. During the early 1930s, six other Florida National Banks were opened throughout Florida, including Lakeland and Bartow; Alfred's wife, Jessie Ball du Pont was named a director of the bank. When Alfred du Pont died in 1935, the du Pont Trust, managed by Ed Ball, Jessie du Pont's brother, continued to control the bank. Growth continued with the acquisition of many more Florida banks over the next two decades and became known as the Florida National Group, which was one of the strongest banks in the state. In size, the branches eventually numbered 185, second only in Florida to Barnett Bank
.
Ball built the Florida National Bank building at 214 North Hogan Street in Jacksonville in 1961. The structure was constructed using materials which would appreciate in value, such as marble floors and granite exteriors, but excluded items that Ball considered frills. There were no executive washrooms and no hot water faucets in the entire eleven story edifice. The corporate offices of the group were housed in the upper floors and the bank's principal location was on the ground floor. Ed Ball also kept his personal office there for managing the du Pont Trust. After Ball's death, the structure was renamed the Edward Ball Building.
Congress forced the du Pont Trust to divest itself of banking interests when they withdrew the trust's 15-year exemption from the Bank Holding Company Act of 1956
. The trust sold 34.7% ownership in Florida National Banks to Charter Company
in 1971 for $42M, leaving the du Pont Trust with 24.9%, below the legal definition of a bank holding company. The CEO of Charter was Raymond Mason
, a protege of Ed Ball. Additionally, Ed Ball personally owned 6.4% of FNB and was executor of his sister's estate, which owned 4.5% of FNB.
On July 9, 1973, the Federal Reserve Board issued a preliminary determination that the du Pont Trust had retained enough stock that would allow the trust to continue to exert some control over the bank. Ball was forced to sell the trust's remaining shares and resign as chairman of FNB. However, the du Pont Trust owned a significant block of Charter stock, and the close personal relationship between Mason and Ball still allowed some indirect control.
of New York
after laws preventing interstate banking were lifted. At the same time, C.A. Cavendes Sociedad Financiera, a Venezuelan investment company, announced that it had acquired 24.99 percent of the common stock of Florida National.
In February, 1982, SBC sued to obtain an injunction against the merger in Federal court, citing contrary banking laws in both Federal and Florida codes. Florida National Bank countered with an antitrust suit against SBC. It was FNB's contention that if SBC were allowed to complete the takeover, commercial banking competition would be unlawfully reduced.
In early 1983, Southeast Banking Corporation dropped its takeover attempt and agreed to exchange their 1.73 million FNB shares for 24 FNB branch offices, $5.7M in cash, a downtown Miami real estate parcel and other assets. This was during the time when Charter was going through a bankruptcy. The Federal Reserve Board approved a revised merger plan between FNB and Chemical Bank in 1984. However, at the time, interstate banking acquisitions were prohibited by Federal law and required state legislative approval. With the 1990 deadline running out for its option to buy FNB and no sign of state legislative approval, Chemical Bank sold their 4.9% interest to First Union for $115 million. On March 7, 1989, it was revealed that Florida National Banks was to be acquired by Charlotte, North Carolina
's First Union Corporation
. The transaction, valued at $849 million, was consummated the following year.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
in Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. Florida National Group was acquired in 1990 by First Union Corporation
First Union Corporation
First Union Corporation was a banking company providing commercial and retail banking services in eleven states in the eastern U.S. First Union also provided various other financial services, including mortgage banking, credit card, investment banking , investment advisory, home equity lending,...
, which was renamed Wachovia
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
in 2001.
Early years
Samuel Hubbard's Mercantile Exchange Bank eventually became Florida National Bank after Jacksonville's Great Fire of 1901Great Fire of 1901
The Great Fire of 1901 in Jacksonville, Florida was one of the worst disasters in Florida history and the largest urban fire in the Southeast. It was similar in scale and destruction to the 1871 Great Chicago Fire.-Origin:...
. Millionaire Alfred I. du Pont
Alfred I. du Pont
Alfred Irénée du Pont was an American industrialist, financier and philanthropist. A member of the influential Du Pont family, Alfred du Pont first rose to prominence through his work in his family's Delaware-based gunpowder manufacturing plant, E. I...
acquired a major interest in the FNB shortly after moving to Jacksonville in the mid-1920s, but he was unable to gain control until the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
struck in 1929. The FNB stayed solvent throughout the 1930s because du Pont put $15 million of his own money into the institution to cover Bank run
Bank run
A bank run occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent...
s. During the early 1930s, six other Florida National Banks were opened throughout Florida, including Lakeland and Bartow; Alfred's wife, Jessie Ball du Pont was named a director of the bank. When Alfred du Pont died in 1935, the du Pont Trust, managed by Ed Ball, Jessie du Pont's brother, continued to control the bank. Growth continued with the acquisition of many more Florida banks over the next two decades and became known as the Florida National Group, which was one of the strongest banks in the state. In size, the branches eventually numbered 185, second only in Florida to Barnett Bank
Barnett Bank
Barnett Bank, founded in 1877, eventually became the largest commercial bank in Florida with over 600 offices and $41.2 billion in deposits. The purchase by NationsBank was announced August 29, 1997, but even before signs on Barnett's branches were changed, NationsBank merged with BankAmerica in...
.
Congress forced the du Pont Trust to divest itself of banking interests when they withdrew the trust's 15-year exemption from the Bank Holding Company Act of 1956
Bank Holding Company Act of 1956
The Bank Holding Company Act of 1956 is a United States Act of Congress that regulates the actions of bank holding companies.The original law , specified that the Federal Reserve Board of Governors must approve the establishment of a bank holding company, and prohibited bank holding companies...
. The trust sold 34.7% ownership in Florida National Banks to Charter Company
Charter Company
The Charter Company of Jacksonville, Florida was a conglomerate with more than 180 subsidiaries that was in the Fortune 500 for 11 years beginning in 1974 and ranked 61st in 1984 before it sought bankruptcy protection in late 1984 and spiraled into obscurity....
in 1971 for $42M, leaving the du Pont Trust with 24.9%, below the legal definition of a bank holding company. The CEO of Charter was Raymond Mason
Raymond Mason
Raymond Grieg Mason OBE was a sculptor.He trained at the Birmingham School of Arts and Crafts under William Bloye, the Royal College of Art , and Slade School of Art. He lived and worked in Paris beginning in 1946...
, a protege of Ed Ball. Additionally, Ed Ball personally owned 6.4% of FNB and was executor of his sister's estate, which owned 4.5% of FNB.
On July 9, 1973, the Federal Reserve Board issued a preliminary determination that the du Pont Trust had retained enough stock that would allow the trust to continue to exert some control over the bank. Ball was forced to sell the trust's remaining shares and resign as chairman of FNB. However, the du Pont Trust owned a significant block of Charter stock, and the close personal relationship between Mason and Ball still allowed some indirect control.
Acquisition
Southeast Banking Corporation (SBC), Florida's largest bank holding company, targeted FNB with a takeover bid in 1980, which the FNB board rejected. That same year, a group of foreign investors from Chile, Venezuela, Canada and south Florida sought 40% ownership and control of FNB. FNB filed suit in circuit court and the group was enjoined from acquiring more than 25% of the bank holding company's outstanding shares. However, Florida National revealed in 1981 that it was willing to permit acquisition by Chemical Banking CorporationChemical Banking
Chemical Bank was a bank with headquarters in New York City from 1824 until 1996. The bank operated as the primary subsidiary of the Chemical Banking Corporation, a bank holding company established in 1988. At the end of 1995, Chemical was the third largest bank in the U.S...
of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
after laws preventing interstate banking were lifted. At the same time, C.A. Cavendes Sociedad Financiera, a Venezuelan investment company, announced that it had acquired 24.99 percent of the common stock of Florida National.
In February, 1982, SBC sued to obtain an injunction against the merger in Federal court, citing contrary banking laws in both Federal and Florida codes. Florida National Bank countered with an antitrust suit against SBC. It was FNB's contention that if SBC were allowed to complete the takeover, commercial banking competition would be unlawfully reduced.
In early 1983, Southeast Banking Corporation dropped its takeover attempt and agreed to exchange their 1.73 million FNB shares for 24 FNB branch offices, $5.7M in cash, a downtown Miami real estate parcel and other assets. This was during the time when Charter was going through a bankruptcy. The Federal Reserve Board approved a revised merger plan between FNB and Chemical Bank in 1984. However, at the time, interstate banking acquisitions were prohibited by Federal law and required state legislative approval. With the 1990 deadline running out for its option to buy FNB and no sign of state legislative approval, Chemical Bank sold their 4.9% interest to First Union for $115 million. On March 7, 1989, it was revealed that Florida National Banks was to be acquired by Charlotte, North Carolina
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
's First Union Corporation
First Union Corporation
First Union Corporation was a banking company providing commercial and retail banking services in eleven states in the eastern U.S. First Union also provided various other financial services, including mortgage banking, credit card, investment banking , investment advisory, home equity lending,...
. The transaction, valued at $849 million, was consummated the following year.