National City Corp., the bank that is in the midst of buying Cincinnati's Provident Financial Group Inc., plans to grow yet again with the proposed acquisition of a bank in northeast Ohio for $180 million.

 

Cleveland-based National City said Friday it has signed a definitive agreement to purchase Wayne Bancorp, a Wooster-based bank with 26 branches in Wayne, Holmes, Medina and Stark counties.

 

This marks National City's second significant acquisition of 2004; earlier, the company announced plans to buy Cincinnati-based Provident Bank for $2.1 billion, a move that expands National City into the nation's 10th-largest bank.

 

Terms call for shareholders to receive $28.50 cash for each Wayne Bancorp share held. The all-cash transaction is subject to regulatory approval, with an expected close during this year's fourth quarter.

 

"This acquisition is part of the National City strategy for growth in our core banking business," said David Daberko, National City chairman and chief executive officer. "Wayne Bancorp operates in communities that are contiguous to the existing National City branch network in northern Ohio, one of our strategic markets."

 

National City operates banks in Ohio, Indiana, Illinois, Kentucky, Michigan, Missouri and Pennsylvania.

Is there any explanation for these recent expansions? It'd be interesting to see why banks seem to be very active lately- in particular National City Bank, and for the better it seems

The recent banking acquisition and merger trend has been brought on by an upswing in the economy (the same thing happened in the 1990s). Some banks make acquisitions to expand their retail 'footprint' (aka where they operate) - it's often cheaper to buy out an existing bank and refurbish/rebrand their branches than go into a new area and build from the ground up. In some cases, it's more a matter of 'killing the competition' by buying them out.

 

One of the biggest reasons that National City Bank has made some high-profile acquisitions is the simple fact that, in the banking industry, "stagnation equals death". If they didn't grow, they'd make it easier to be bought out. You're going to see this trend continue - with larger mid-size banks like National City, KeyBank, etc. being acquired by the mega-banks (Chase, Citi, etc.) and tiny banking groups - in other words, a more polarized industry.

Well, there goes Grasscat Savings and Loan, I guess....

National City to break ground on first Cincinnati branch

 

The Cleveland-based bank, which earlier this month closed on its acquisition of Cincinnati's Provident Financial Group, plans to add 12 to 15 National City branches in the Tri-State. Provident already had a 52-branch network in Greater Cincinnati and Northern Kentucky.

 

The first location is set for the corner of Union Centre Boulevard and State Route 747 in West Chester, according to a news release. The site's ground breaking is set for 2:30 p.m. July 29.

 

"This represents National City's first tangible step towards branch expansion in Cincinnati," said CEO Michael Price in a statement. "As we continue to grow, we will provide consumers with easy access to National City's comprehensive personal and small business financial services."

Good news. Give it 50 years and National City will be buying HSBC.

Everything is going out in Butler county. It will be over 400k before we know it.

National City and Key Bank have both been really expanding. All i keep hearing is about each other buying other banks out, just as long as one doesnt buy the other... heh heh

Key has been acquiring much smaller banks than National City - we're talking banks with around a dozen branches at most. I could only imagine if Key and NatCity merged - the clash of egos would be unimaginable! :lol:

If Key and National City merged it would be bad for the state. They compete in most markets and I could only imagine the flood of layoffs.

 

It would have been like 5/3rd and Provident merging in Cincy.

^Bad for the retail sector as far as layoffs? Yes. However, such a merger would eliminate a lot of redundant branch locations and save a lot as far as overhead. monte, while Provident is a larger regional bank - a merger between Key and National City would be much more significant (Provident is/was around the 57th largest by assets, Key and National City are around the 16th and 11th largest, respectively).

 

And while they do compete in some of the same markets, a merger would create a stronger retail footprint for both.

 

Key has operations in 12 states - Ohio, Indiana, Michigan, New York, Vermont, Maine, Colorado, Utah, Idaho, Oregon, Washington, and Alaska. National City operates in 6 - Ohio, Michigan, Pennsylvania, Indiana, Kentucky and Illinois.

 

A merger would give National City presence in the West and northeast, and give Key more saturation in the Midwest.

You work in the business from what I understand so you are more qualified in this department but it would not only cause layoffs but it would create urban/suburban blight by the closing of many redundant locations. I am not a fan of mergers, I don't see much good in them for the consumers, it is all about the investors. They care little about our towns.

 

Look what Winn Dixie buying Thriftway did for Cincinnati.

 

It will all in all create more blight and not we have Kroger and discount retailers. Grocery stores are becoming a rarity. Bigg's, Meijers, Super Centers are starting to dominate the market.

 

Back to banks, I liked Nations Bank, but when Bank of America bought them I ditched them and all the bull crap surcharges for seeing a teller.

 

I also believe a merger between National and Key would only bring lime light to the company in a buyout from one of the even larger banks like Citi, Chase, Chemical, Wells Fargo, Bank of America - oh wait one of those banks was bought out too.

 

Pretty soon, we will have only one bank in the country ;)

I'm surprised Bank of America hasn't made it into Ohio, or any other nearby states as of yet. It's probably only a matter of time before they make their presence known. Watch them buy out 5/3 or something like that.

Please don't say that. I have 5/3rd and am quite happy with them. If Bank of America bought them, I would be forced to close my account.

Sorry, Monte. I was being too pessimistic, and I don't want to see that happen (if anything, because I don't want to see Bank of America's logo on top of the 5/3 Building). :D

"Redundancies".  This will no longer be a problem when everyone in the world works for the same company.

 

:(

I am soooo tired of mergers, particularly bank mergers because it is so easy to consolodate big time and it kills so much of the economies in cities all over (and not even speaking of economy, it hurts alot of peoples lives). I think in this day and age it needs to be regulated a little more, I mean come on we even have a city built of stolen banks now *cough* *cough* The day those bastards steal 5/3 ... Actually though 5/3 can go ahead and gobble up some stuff  and build a new tower and I would be bias-ly ok with that.

Amen Chris...  I feel the same way - bias and all.

maybe we can be more like canada

 

Bank of montreal

TD/Canada Trust

royal bank of canada

scotia bank

 

that's it (yes there is few more random financial institutions, but that's it)

National City Corp. is creating a regional headquarters in Northern Kentucky to accommodate planned growth in the region and serve as a one-stop shop for customers.

 

Cleveland-based National City in July purchased Provident Financial Group Inc., the second-largest banking company in Greater Cincinnati, and in March, all 52 Provident branches in the region will switch to the National City name. National City also plans to add about 15 branches in the Cincinnati/Northern Kentucky area by 2007.

 

The Northern Kentucky facility will include a bank branch -- which replaces a Provident branch currently located in the former Thriftway supermarket on Dixie Highway -- as well as offices for corporate banking, investment banking, residential mortgage, merchant services, wealth management, business banking and commercial real estate.

 

The bank branch is expected to open in early March, while the other offices will open early in the second quarter. A company spokesman said National City hasn't yet determined employment figures for the headquarters.

 

http://cincinnati.bizjournals.com/cincinnati/stories/2005/01/31/daily11.html

Craptacular. I wonder how it's going to affect Provident's presence downtown.

^ BINGO, gotta love how a Cleveland based company buys out a home grown bank and opens the regional HQ in Kentucky.  You would think Ohio companies would have more state pride but no these days.

I changed banks a week after I heard about the buyout. National City Bank is as bland as they come, go back to cleveland!!

^ ha...  I have 5/3rd and have been extremely happy.  I used my ATM card several times overseas and didn't get one ATM surcharge.  Was quite impressed.  My wife one has an account with Provident to keep her school money seperate, she had to go into an abandoned Thriftway last week to deposit some money.  Apperantly they are keeping the bank open till the lease expires.

I miss the small neighborhood banks - the kind with only 3-4 branches.  They offered much better customer service, and they did not have fees for every service imaginable.  Most of these smaller banks have been bought out by the bigger banks.

 

 

I miss the small neighborhood banks - the kind with only 3-4 branches.  They offered much better customer service, and they did not have fees for every service imaginable.  Most of these smaller banks have been bought out by the bigger banks.

 

I agree.  I used to be a 5/3 customer, but have been much, much happier since I switched to a credit union.  The sad thing is consolidation will continue to be the trend in the banking industry, and before you know it, there will only be a couple of different banks in the country.

Its just a business trend thing, consolodation of previously fragmented industries.

A friend of mine that works for US Bank told me she heard something about 5/3 being bought out while in a meeting...

 

This would be horrible, but I think she is mistaken or maybe misunderstood what was being said ???

^ See, and you guys thought I was blowing smoke up your ass.

National City to acquire Florida bank

Business First of Columbus - 11:17 AM EDT Tuesday

 

National City Corp. said Tuesday it is acquiring Harbor Florida Bancshares Inc., which will give the company its first retail banking foothold in the Sunshine State.

 

The deal, valued at $1.1 billion, is expected to close during the fourth quarter. National City will acquire all 40 of the Fort Pierce, Fla.-based company's Harbor Federal Savings Bank branches, and $3.2 billion in assets.

 

Senior level executives will maintain their positions at Harbor Florida, although it is too early to speculate whether there will by any other reductions, National City spokeswoman Kelly Wagner Amen said.

 

After the acquisition, Harbor Florida banks will operate under the National City nameplate.

 

The acquisition is subject to regulatory and Harbor Florida stockholder approval.

 

Harbor Florida (NASDAQ:HARB), the holding company for Harbor Federal Bank, posted $188.3 million in 2005 revenue.

 

Cleveland-based National City (NYSE:NCC) provides commercial and retail banking services, as well as consumer finance and asset management. It employs more than 2,000 in Columbus and posted $11 billion in revenue last year.

So many buyouts and mergers lately...my father-in-law just got a job with a bank, and one of the big worries was if it was going to get bought out and his IT job outsourced...he had a choice between an Atlanta-based bank and a Columbus-based bank, and happily he chose Columbus...but every buyout story makes me wince...

 

Nonetheless, thanks for posting the story!

 

Hey, now us National City customers can use our debit cards in Florida and not get charged... :)

RiverViewer, I hate to say it but anyone working in any bank in just about any capacity should be concerned (not alarmed but a healthy concern). It's much like the auto industry which used to have 20 to 30 manufacturers of various sizes, now there are three mega-companies. Believe it or not, the big M&A stuff has yet to really happen to Ohio banks. The closest we've come was Chase's buyout of Bank One, and Royal Bank of Scotland's buyout of Charter One. Whenever one of the mega-banks makes a move, the others usually follow :|

^Exactly right.  I am relieved every day that goes by without a headline announcing that NCB or Key is being acquired by JPMChase, Citi or the Charlotte tower-builders.

Well luckily BofA can not expand in branch locations and deposits (something about banks not being able to control more than 10% of deposits). How big does National city of Key have to be so it would be too big for one of those banking giants to acquire?

RiverViewer, I hate to say it but anyone working in any bank in just about any capacity should be concerned (not alarmed but a healthy concern).

 

...yeah, it's definitely a concern.  And he's getting older, approaching retirement age...he certainly deserves a healthy dose of good luck after the assorted buyouts and resizings and such that have hit him over the years - but it's a great job, and hopefully it'll take him to retirement.  Our fingers are crossed!

 

It's much like the auto industry which used to have 20 to 30 manufacturers of various sizes, now there are three mega-companies.

 

Correction:  2.5

The reality is that the US still has WAY too many banks.  According to the Fed there are almost 1600 banks with more than $300MM in assets.  That doesn't even count all the little banks, credit unions, S&Ls, etc.  That number has been declining as many of the restrictions on bank size of have been lifted (e.g. interstate banking) and the technology has improved to allow things like Nat'l City owning a bank in FL.  While I like competition as much as the next guy, these small banks are often too small to be efficient or to offer the services I want (like finding one of my banks ATM's when I travel).  I don't think we want 3 banks (or 2.5) but whittling it down to 50-100 large ones (>$300MM which isn't even very big when you consider Nat'l City is #18 w/$73B in assets) seems very likely over the next few decades.

wasn't their some talk of one of the bigger banks, (chase) buying out 5/3?

^Yes, but that's a rumor that routinely surfaces not just for 5/3 but any of the larger regional banks.

 

"when you consider Nat'l City is #18 w/$73B in assets)"

 

Sorry to nitpick, but National City is #11 with $141B in assets:

 

http://www.onlinebankingreport.com/resources/100.html

^Probably a difference in definitions.  I got mine straight from the fed:

http://www.federalreserve.gov/releases/lbr/current/default.htm

 

 

National City profit falls

Yahoo News

 

 

National City Corp. (NYSE:NCC - news), a large Midwest U.S. bank, on Tuesday said second-quarter profit fell 24 percent because of hedging losses from mortgages.

 

The No. 8 U.S. bank said excluding the hedging results, profit rose from a year earlier, topping Wall Street forecasts, though bad loans more than doubled.

 

Results included $115 million of losses from mortgage servicing rights, compared with a year-earlier gain of $157 million.

 

Chief Executive David Daberko said that excluding mortgage servicing, results benefited from "strong operating performance in our retail, small business and corporate banking units."

 

National City is one of the largest U.S. mortgage lenders, but last week announced plans to cut back on subprime lending, or lending to less creditworthy borrowers.

 

National City makes second billion-dollar buy in Florida

 

 

9:25 a.m.

 

National City Corp. said it has agreed to buy Fidelity Bankshares Inc. of Florida for around $1 billion. Based in West Palm Beach, Fidelity operates 52 branches along the state's east coast and has $4.2 billion in assets. Earlier this month, Cleveland-based National City said it would buy Harbor Florida Bancshares Inc. of Fort Pierce for about $1.1 billion. Harbor, with assets of $3.2 billion, has 40 branches on Florida's east coast.

They just keep on coming...

 

Nat City makes another acquisition

 

By SHAWN A. TURNER

 

4:15 pm, August 10, 2006

 

National City Corp. reportedly has bought SSG Capital Advisors, a Philadelphia-area investment bank that with an office in Cleveland.

 

 

 

Continued:

http://www.crainscleveland.com/apps/pbcs.dll/article?AID=/20060810/FREE/60810011/1028

When are they gonna ditch their current building and build a huge new superscraper to show everyone who is really the big bank in Cleveland? :-D Just wishful thinking.

I wouldn't mind a new building, but I would not want the current one torn down.

Last year, NC sought and received approval from the city to reface the entrance on East 9th and the place (I can only describe it as) a crown on top of the tower.

 

With all of the acquisitions of late, you would think now is the time to get the crown started.

(When asked recently, Cimperman stated that as far as he knows, NC hasn't even filed permits.)

^That sounds interesting, a crown atop National city. If true it sounds like they are looking to stay put, so no new 'scraper. :-( If they were to build anew I would hope it would be where Ameritrust should be (keeping the current tower intact)and would be at least taller than the BP building. I have noticed that the lights shinning on their building seem very dim, barely lighting the building's facade at night. I remember when the building looked bright white at night, now it looks blackish yellow.

These acquisitions in no way warrant a new tower.  Most healthy banks grow through acquisitions, this is no different than what 5/3 experienced, a few years ago, when they acquired a lot of investment banks down south and other branches...combined with one big acquisition (Old Kent_5/3...Provident_NC).  Much of their growth will occur where they are acquiring these companies, but should they grow in Cleveland dont expect it to be much.....especially not enough for a new tower.

Remember that National City also recently bought their headquarters (as opposed to leasing their HQ like KeyBank). I seriously doubt we'd see any new construction from National City. Don't get me wrong, I'd love to see something bigger and better than Key ;-) but I don't think that's realistic.

Remember that National City fully occupies the entire National City Center complex between East 6th and East 9th - the original NCB building, the Holiday Inn Building, the "Annex" and the "Tower".  These are all connected from the inside.  Due to lack of space, NCB also has offices on a few floors of the BP Building.  A new building is unlikely but moving into adjacent space is happening.