American Banker back issues from July 1994:
Natwest in $300M deal for N.J. bank. (National Westminster Bank to acquire Central Jersey Bancorp)
Jul 01, 1994; ... Moving to strengthen its retail network in New Jersey, National Westminister Bank announced Thursday that it had agreed to acquire Freeholdbased Central Jersey Bancorp. Central Jersey's main subsidiary, Central Jersey Bank and Trust Co., has $1.8 billion of assets and 38 ...
Household buying 1st Nationwide offices. (Household International; First Nationwide Bank) (Brief Article)
Jul 01, 1994 ... PROSPECT HEIGHTS, Ill. -- Household International Inc. said its consumer banking and mortgage subsidiary agreed to buy 26 Chicago-area branches of First Nationwide Bank. Household, which did not disclose terms of the purchase, is buying the offices from First Madison ...
Marshall & Ilsley taking $59M charge. (Brief Article)
Jul 01, 1994 ... MILWAUKEE -- Marshall & Ilsley Corp. said it would take a one-time merger-restructuring charge of $59 million after taxes for the second quarter, associated with its May 31 acquisition of Valley Bancorp. of Appleton, Wis. The charge is in line with what management expected when ...
Puerto Rican thrift seeks charter switch. (Federal Savings Bank of Puerto Rico to convert to a state-chartered commercial bank) (Brief Article)
Jul 01, 1994 ... SAN JUAN, Puerto Rico -- First Federal Savings Bank of Puerto Rico said its board approved a plan to convert to a state-chartered commercial bank. The thrift said it must get approvals from the Office of Thrift Supervision, the Puerto Rico commissioner offinancial institutions, ...
Charter buying Texas building portfolio. (Charter Bancshares acquiring Farm and Home Financial Corp.'s residential construction lending division) (Brief Article)
Jul 01, 1994 ... HOUSTON -- Charter Bancshares said it is purchasing the residential construction lending division of Farm and Home Financial Corp., following the acquisition Thursday of Farm and Home by Roosevelt Financial Group. Charter is acquiring the existing construction portfolio and ...
Shawmut in ATM deal with grocery chain. (Shawmut National Corp. to put automated teller machines in Honey Farms Inc.'s stores) (Brief Article)
Jul 01, 1994 ... HARTFORD -- Shawmut National Corp. said it has an agreement to place automated teller machines at 42 Honey Farms Inc. stores in the Worcester County, Mass., area. Paul DelFino, Shawmut's executive vice president for community banking, said the installations, which are to be ...
Southeast Banking is paid $152M by FDIC in failure suit. (Federal Deposit Insurance Corp.)
Jul 01, 1994 ... WASHINGTON -- The Federal Deposit Insurance Corp. paid $152 million Thursday to the parent company of the failed Southeast Bank, Miami. The government repaid Southeast Banking Corp. a debt outstanding when the bank failed in September 1991. The payment settles a claim ...
House panel hears pros, cons of fees; Kennedy sees price gouging, but N.C. banker disagrees. (Representative Joseph P. Kennedy II, First National Bank Chairman James M. Culberson) (Transcript)
Jul 01, 1994 ... REP. KENNEDY: These fees are growing at an explosive rate. Today, lenders are charging higher fees for more services, even though they are enjoying record profits and lower costs through technological innovation. Last year, banks earned $15.2 billion on fees alone. That's an ...
Treasury fights bill to expand ranks of FHLB. (Federal Home Loan Bank system) (Brief Article)
Jul 01, 1994; ... WASHINGTON -- The Clinton administration mounted a new attack this week on legislative efforts to expand commercial bank membership in the Federal Home Loan Bank System, drawing a rebuke from a key Republican lawmaker. Rep. Richard Baker, R-La., told the administration that its ...
OTS moves against ex-head of Alaska's Home Savings. (Office of Thrift supervision seeking cease and desist order against former Home Savings Bank chief executive Robert Gillam) (Brief Article)
Jul 01, 1994 ... WASHINGTON -- The Office of Thrift Supervision wants to prohibit a former Alaska thrift chairman from working in the industry. The agency said Thursday it is seeking a cease and desist order against Robert Gillam, former chairman and chief executive officer of ...
Citi looks south, expanding rapidly with a well-placed Latin network. (Citicorp; bank branches in Latin America)
Jul 01, 1994; ... After setting aside $3 billion to cover loan losses in Latin America seven years ago, Citicorp is now making multimillion dollar investments in its South American units. But the South American landscape has changed dramatically. Instead of lending money to insolvent governments, ...
First Hawaiian hires a new president. (First Hawaiian Bank; John K. Tsui) (Brief Article)
Jul 01, 1994; ... Management changes swept Hawaii's top financial institutions this week as First Hawaiian Bank tapped a Bank of Hawaii vice chairman to replace its president, who said he would retire early. John K. Tsui, 56, resigned Thursday from $11.2 billion-asset Bank of Hawaii, Honolulu, to ...
Credit unions viewed as main rivals. (competition with banks)
Jul 01, 1994; ... Community bankers worry more about competing head on with credit unions than moneycenter and regional banks, according to a survey by Grant Thornton. The Chicago-based accounting firm found that 55% of community bankers participating in its survey listed credit unions as a major ...
Calif. bank put on the spot by fallout from bankrupt pension advisory firm. (CommerceBancorp; First Pension Corp.) (Brief Article)
Jul 01, 1994; ... The fallout from a bankrupt, and apparently crooked, pension advisory firm has ensnared at least two Southern California community banks. CommerceBancorp, a capitalpoor Newport Beach community bank, was forced to postpone indefinitely a much-needed offering of $15 million in ...
Indiana's Old National to buy Ill. bank. (Old National Bancorp; Oblong Bancshares, Oblong, Illinois) (Brief Article)
Jul 01, 1994 ... OBLONG, Ill. -- Oblong Bancshares said it plans to merge with Old National Bancorp of Evansville, Ind., in an all stock transaction valued at $14.7 million. The deal is expected to be completed either late this year or in early 1995, and it's subject to shareholder and ...
Progress Financial posts $1.5M provision. (Brief Article)
Jul 01, 1994 ... PLYMOUTH MEETING, Pa. -- Progress Financial Corp., the parent of Progress Federal Savings Bank, said it is recording a $1.5 million provision for the disposition of real estate owned during the quarter ended June 30. ...
Bay Area Bancshares approves dividend. (Brief Article)
Jul 01, 1994 ... REDWOOD CITY, Calif. -- Bay Area Bancshares' board of directors approved the 11th consecutive quarterly dividend. ...
Virginia's third-largest thrift going public. (Life Savings Bank)
Jul 01, 1994; ... Life Savings Bank, the third-largest thrift in Virginia, is dropping its mutual status and selling stock to the public. [CHART OMITTED] It's the largest such deal in a recent spate of mutual conversions in the state, as the remaining large mutuals seek to cope with ...
West Coast Bancorp in share offering. ($4.4 million public stock offering) (Brief Article)
Jul 01, 1994 ... West Coast Bancorp is trying to raise $4.4 million in a public stock offering. The Newport, Ore.-based company is offering 600,000 shares of common stock at $8.25 apiece. The offering is being managed by Pacific Crest Securities. Proceeds from the stock sale will be ...
NCUA seizes Okla. group eyeing conversion. (National Credit Union Administration seizes OneOk Employees Credit Union)
Jul 01, 1994; ... The National Credit Union Administration has seized an Oklahoma credit union that was considering converting to a thrift charter. The agency blamed inattentive management at Tulsa-based OneOk Employees Credit Union, saying the institution's leaders let soaring operating costs ...
Scout gives demerit to State Dept. Credit Union. (House Banking subcommittee testimony on State Department Federal Credit Union)
Jul 01, 1994; ... A 10-year-old Girl Scout gave the credit union industry a black eye with testimony before House Banking's subcommittee on consumer credit last week. Ryan Lorraine Cobb of Arlington, Va., told the committee how her account with State Department Federal Credit Union was wiped out ...
Broker buys back 15-year CD after mix-up. (San Clemente Financial Group repurchases zero coupon certificate of deposit from United Hospital Federal Credit Union) (Brief Article)
Jul 01, 1994; ... A brokerage firm has repurchased the long-maturity CD it had sold to a credit union that apparently violated regulations by making the purchase. California-based San Clemente Financial Group sold the 15-year zero coupon certificate of deposit on June 21 for a loss of $4,500, ...
Bill pending in N.Y. would ease expansion. (bill allowing easier expansion of New York credit unions)
Jul 01, 1994; ... LAKE PLACID, N.Y. -- A bill before the New York State Assembly would make expansion easier for state-chartered credit unions. The bill would eliminate a requirement that a credit union must hold a meeting of its members to approve any widening of its customer base. ...
Regulator tells Ore. group to divest illegal deposits. (Highland Community Federal Credit Union to provide divestment plan to National Credit Union Administration) (Brief Article)
Jul 01, 1994; ... The National Credit Union Administration is reining in an Oregon credit union that illegally added roughly 2,000 customers since 1989, an agency official said. Highland Community Federal Credit Union, a community-based institution in Klamath Falls, may have to divest up to $4 ...
Teamwork drives Washington Mutual overhaul. (Washington Mutual Savings Bank overhauls loan-processing system)
Jul 01, 1994; ... SEATTLE -- Jack and Steve are the Ben and Jerry of Washington Mutual Savings Bank. Jack A. Cornick and Steve Freimuth are senior vice presidents who golf together, live near each other, often drive to work together, and finish each other's sentences. They are also ...
Knutson of Minn. for sale; Bear Stearns hired. (Knutson Mortgage Corp. of Bloomington, Minnesota) (Brief Article)
Jul 01, 1994; ... Knutson Mortgage Corp., a midsize mortgage bank based in Bloomington, Minn., has put itself up for sale. Confirming rumors about the plans, the company said Thursday that it had hired Bear, Stearns & Co. to assist. "We are aware of the significant premiums being ...
Ford ties rebates to equity lines. (Ford Consumer Finance Co. loan product offers automobile rebates) (Brief Article)
Jul 01, 1994; ... Ford Consumer Finance Co. is test-marketing a home equity loan product that would give consumers as much as $2,500 to be used toward the purchase or lease of a Ford vehicle. The program, called Ford Reward, is in place in 40 states but is only being offered through direct mail ...
Comptroller drafts guidelines for mutual fund activities. (Office of the Comptroller of the Currency issues draft bank examiner guidelines)
Jul 01, 1994; ... WASHINGTON -- Trust examiners from the Office of the Comptroller of the Currency have come up with a draft of guidelines for inspecting banks' mutual fund management activities. The guidelines would set ground rules for trust departments that have a hand in running banks' ...
B of A's bailout of fund raises no red flags at Fed. (Federal Reserve not alarmed by Bank of America Corp. mutual fund bailout)
Jul 01, 1994; ... WASHINGTON -- Bank-America Corp.'s recent bailout of a proprietary mutual fund managed by its lead bank set off no alarm bells at the Federal Reserve, according to Fed Governor John LaWare. In an interview this week, Mr. LaWare characterized the bailout as an "unusual ...
What to consider when picking a marketer. (securities program providers for banks)
Jul 01, 1994; ... Since the birth of investment programs at financial institutions in 1982, there has been an explosion in the number of brokerage firms, insurance companies, marketing companies, financial planners, and others offering these services. It is now estimated that over 300 firms ...
1st quarter dip in card delinquencies, chargeoffs confirmed by new data. (credit card loan quality reports)
Jul 01, 1994; ... Moody's Investors Service has come out with the latest confirmation of recent good news in key measures of credit card loan quality. On the heels of an American Bankers Association report a week ago that delinquent credit card accounts were near a four-year low in the first ...
BancOne card for BP; Cincinnati's Provident in tie with Thriftway. (cobranded credit cards announced by Banc One Corp. and BP Oil, Provident Bank of Cincinnati, Ohio and Thriftway Food-Drug) (Brief Article)
Jul 01, 1994; ... Two Ohio banks have announced cobranded cards, each in its own way furthering established trends and giving Visa a boost as it tries to match Master-Card's cobranding successes. Provident Bank of Cincinnati joined with Thriftway Food-Drug to introduce the first grocery-connected ...
Sears' secured card program advances to direct-mail testing. (Sears, Roebuck and Co. advances tests of SearsCharge proprietary card) (Brief Article)
Jul 01, 1994; ... Sears, Roebuck and Co. is advancing its secured credit card pilot into a second phase. The retailing giant, which began a trial of the secured version of the SearsCharge proprietary card last fall, will spend three months testing mail solicitations. "The nature of ...
Citibank purchases Cray supercomputer for derivatives unit. (Brief Article)
Jul 01, 1994; ... Citicorp's Citibank unit has announced its purchase of a supercomputer from Cray Research Inc., for its global derivatives business. The Beaverton, Ore.-based computer maker's Superserver 6400 will be used for high-speed processing of the complex numbers and equations in the ...
J.P. Morgan publications available electronically via Adobe's Acrobat. (Adobe Systems Inc. computer software products)
Jul 01, 1994 ... Adobe Systems Inc. announced this week that J.P. Morgan & Co. has established an on-line forum to deliver research publications electronically to its clients in the Adobe Acrobat Portable Document Format. The forum is carried by Compuserve Information Services and uses Adobe ...
Clearing house group renewing direct-deposit push. (National Automated Clearing House Association announces marketing program for direct deposit and payment services) (Brief Article)
Jul 01, 1994 ... HERNDON, Va. -- The National Automated Clearing House Association announced a marketing program for the rest of the year that it said will raise awareness of direct deposit and payment services among corporations, financial institutions, and consumers. "The campaign will use ...
Kiosks with on-screen tellers win award. (Cooperative Bank of Manchester, England wins award for innovative technology) (Brief Article)
Jul 01, 1994; ... At the Edinburgh Financial Conference held during May in Scotland, the Cooperative Bank was awarded the prize for "the most innovative use of self-service technology" for its Bank Point Kiosk program. Cooperative Bank, based in Manchester, England, boasts a customer base of five ...
Systematics to manage mortgage firm's data. (Systematics Financial Services Inc. signs outsourcing contract with National Home Mortgage Corp. of San Diego, California) (Brief Article)
Jul 01, 1994 ... Systematics Financial Services Inc. has signed a long-term outsourcing contract with National Home Mortgage Corp. of San Diego. Under terms of the agreement, Systematics will manage the mortgage company's loan processing operations. All loans, including real estate, general ...
Bank of Canada adds processing to IBM deal. (International Business Machines Corp. and ISM Information Systems Management to provide data processing services) (Brief Article)
Jul 01, 1994 ... National Bank of Canada said that, as part of its strategic alliance with International Business Machines Corp. and ISM Information Systems Management Corp., it has signed an outsourcing agreement providing for the takeover of its information processing operations by the ...
At CB&T, culture of caring yields consistent profits. (CB&T Bank) (Column)
Jul 01, 1994; ... My goal here is to provide some tangible evidence of an intangible phenomenon called culture and management style, as practiced by CB&T Bank, the lead bank of Synovus Financial Corp. in Columbus, Ga. Synovus, which has a 106-year history and $5.8 billion of assets, has 32 ...
Natwest's latest deal makes little impact on N.J. bank stocks. (National Westminster Bank PLC's acquisition of Central Jersey Bancorp)
Jul 01, 1994; ... In a sign of how hot the New Jersey bank merger market has become, investors Thursday shrugged off the agreement by National Westminster Bank PLC to pay an estimated 2.4 times stated book value for Freehold-based Central Jersey Bancorp. (See related story on page 1.) "I don't ...
B of A survey finds clients conservative with derivatives. (BankAmerica Corp.) (Brief Article) (Brief Article)
Jul 01, 1994; ... Horror stories about derivatives losses by corporations that speculated in the markets are the exception to the rule, according to a survey of 200 of Bank America Corp.'s derivatives clients. Bank America found that its clients' foreign exchange activities are conservatively ...
S&P will indicate derivatives risk in its bond ratings. (Standard and Poor's Ratings Group) (Brief Article)
Jul 01, 1994; ... Standard & Poor's Ratings Group staunchly opposes further regulation of the derivatives industry, but the agency said Thursday it will try to allay investor concerns about the products with an enhanced rating system. S&P said it will introduce within the next couple of weeks the ...
Fourth-of-July merger fireworks: Union Planters paying $361 million for Grenada Sunburst of Mississippi. (Grenada Sunburst System Corp.)
Jul 05, 1994; ... Union Planters Corp. announced Friday the biggest acquisition in its history, saying it had signed a definitive agreement to acquire Grenada Sunburst System Corp. of Mississippi. Union Planters said it would pay $361 million in stock for Grenada Sunburst, the thirdlargest ...
In Minnesota, big thrift goes to First Bank. (First Bank System Inc. plans to acquire Metropolitan Financial Corp.) (Fourth-of-July Merger Fireworks)
Jul 05, 1994; ... In an acquisition that could move it into the ranks of the top 25 banking companies, First Bank System Inc. said Friday it plans to acquire Metropolitan Financial Corp. for more than $800 million in stock. The companies, both based in Minneapolis and with a multistate network ...
Britain's NatWest: a giant in transition. (National Westminister Bank PLC) (Company Profile)
Jul 05, 1994; ... LONDON -- One of the battleships of British banking is being overhauled. Confronted with sagging demand for loans and more-de-manding customers, $230 billion-asset National Westminister Bank PLC is turning itself into a broad financial services group at home and is expanding ...
Small banks to seek home loan board seats. (Federal Home Loan Bank system)
Jul 05, 1994; ... Community banks, which have rushed to join the Federal Home Loan Bank system in recent years are now trying to influence the system's policies. The Independent Bankers Association of America is urging community bankers to run for 52 Federal Home Loan Bank seats, up for election ...
S&P slashes it rating on Wilmington Trust money market fund. (Standard & Poor's Corp.)
Jul 05, 1994; ... In the latest sign of trouble for bank-managed money market funds, Standard & Poor's Corp. has sharply downgraded a fund managed by a Wilmington Trust Corp. unit. S&P cited the fund's investments in derivatives as the reason for the unusually severe two-level downgrade. ...
Sacramento's 1st Commerce feels sting of Calif. recession. (First Commercial Bank)
Jul 05, 1994; ... The recession that derailed the careers of dozens of community bankers in the San Francisco Bay area hit the Sacramento Valley last week, a region that until now has been spared the worst of California's economic malaise. First Commercial Bank, the largest community bank in ...
Financial Management Advisors hires Anat Bird. (as partner) (Brief Article)
Jul 05, 1994 ... Anat Brid, the consultant and expert on super community banking strategy, has left BDO Seidman to join Financial Management Advisors, a New York based consulting firm. Ms. Bird became one of four partners in the independent firm, adding her consulting practice to specialties ...
Small banks can't afford to rest on their laurels. (Weekly Adviser) (Column)
Jul 05, 1994; ... If anything has been proved in the past several years, it is that the Cassandras who felt that community banking was finished have been proved dead wrong. Remember the famous study of a major management consulting firm, done a decade ago, which said that by 1995 we would have ...
HUD wants to ban referral fees to affiliated real estate agents. (Department of Housing and Urban Development) (Brief Article)
Jul 05, 1994; ... WASHINGTON -- The Department of Housing and Urban Development is proposing to outlaw the payment of referral fees by lenders to real estate agents of affiliated companies. A Bush administration proposal would have allowed such payments. The shift is the latest in a ...
Shrinking market brings fear of unprofitable competition. (Mortgages)
Jul 05, 1994; ... With demand for home loans falling sharply, competition among lenders may be getting out of hand, industry leaders and regulators are warning. They say that lenders, especially thrifts, are offering loans at rates that are so low as to render the products unprofitable. At the ...
IRS backs off rules on discharged debt. (Internal Revenue Service) (Brief Article)
Jul 05, 1994; ... WASHINGTON -- In a big win for banks, the Internal Revenue Service last week backed off rules requiring lenders to report discharged debts over $600. The rules took effect Jan. 1 but were labeled "temporary" while the IRS worked out how best to track borrowers with bad debts ....
Homeownership seen on road to recovery. (Mortgages)(Pipeline) (Column)
Jul 05, 1994; ... Did you have a barbecue in your backyard on the Fourth? Chances are you did. Almost two-thirds of U.S. households own their own homes, and most have yards, private or shared. After decades of steady growth, the incidence of homeownership topped out at just under 66% ...
Direct access to capital markets crucial. (Mortgages )
Jul 05, 1994; ... Capital requirements, regulatory changes, demographics, and technology will have a profound impact on mortgage lending as we move toward the year 2000. Among the likely consequences: * Only companies with direct access to the capital markets will be significant home ...
Direct student loan program greeted with skepticism by bank trade group. (Consumer Bankers Association) (Brief Article)
Jul 05, 1994; ... WASHINGTON -- The government has launched a program that will cut banks out of the student lending business, and at least one industry group is warning that the project faces major hurdles. "We question the management resources at the Department of Education, we challenge the ...
Norwest, with SEC approval, in 401(k) drive. (switches assets to mutual funds)
Jul 05, 1994; ... Now that regulators have approved its plan to convert a big chunk of employee benefit assets into mutual funds, Norwest Corp. Is stepping up its drive into the 401(k) plan market. The conversion, involving $2.5 billion of assets, should enable Norwest to compete forcefully in ...
Banc One to radically shorten menu of outside mutual funds it will sell. (Banc One Corp.) (Brief Article)
Jul 05, 1994; ... Banc One Corp. is slashing the list of mutual funds that it offers customers, sparing only four outside suppliers. The Columbus, Ohio, banking company now sells mutual funds from about 20 companies, as well as its proprietary One Group of Funds. Effective Jan. 1, it ...
Bond fund off on wrong foot as market slides. (Sunburst Bank)
Jul 05, 1994; ... A $2 billion-asset bank in Grenada, Miss., is finding out that it isn't easy to get a mutual fund family off the ground. Sunburst Bank launched its first mutual fund, the Sunburst Short-Intermediate Government Bond Fund, in October 1993. Four months later, the bond market went ...
Deluxe upgrades Medicaid services. (Deluxe Data Systems Inc.) (Brief Article)
Jul 05, 1994; ... Deluxe Data Systems Inc., one of the nation's largest processors of electronic banking transactions, has enhanced the Medicaid-related services it provides to New York State. The Glendale, Wis.-based company added drug-utilization review and electronic claims capture services to ...
Vending machines with cell modems. (DataWave Vending to buy radio modems for new vending machines that support on-line credit card transactions) (Brief Article)
Jul 05, 1994; ... A recent agreement between DataWave Vending Inc. and two Canadian telecommunications companies paves the way for a line of vending machines that perform on-line credit card transactions. Vancouver-based DataWave said it intends to purchase about 600 radio modems from Cantel Data ...
Compuserve adds services for Mexico, Pacific Rim. (transaction processing and network services) (Brief Article)
Jul 05, 1994; ... Compuserve Inc. has extended its transaction processing and network services into Mexico and the Pacific Rim. With the additions, Compuserve's network and support services are accessible by banks, retailers, and other transaction processing businesses in the United States, ...
Echo reverses slump with two new contracts. (Electronic Clearinghouse Inc. to supply point-of-sale hardware and software to with Integrated Payment Systems and U-Haul International) (Brief Article)
Jul 05, 1994; ... Electronic Clearing House Inc., a relatively small merchant processing company with a checkered financial past, announced two contracts expected to generate over $3 million in sales. The contracts, with an equipment subsidiary called Computer Based Controls Inc., call for ...
Nation's top 20 ATM networks gained ground against rivals in '93. (Automated Teller Machines)
Jul 05, 1994; ... The regional electronic banking industry continues to consolidate, with the top 20 networks getting more transactions and automated teller machines as smaller networks decline. According to an annual survey of shared networks by Atlanta-based Speer & Associates, the number of ...