American Banker back issues from August 1995:
Merger mania leaves charities in many U.S. cities scrambling.
Aug 01, 1995; ... A decade ago, when Houston still had several $1 billion-plus local banks - and Walter Johnson ran one of them - he could raise $600,000 from the banking community in an hour for a civic project.Times have changed."It's hard to raise $50,000 for a project in Houston," ...
Banks see lessons from card business in projecting their identities on-line.
Aug 01, 1995; ... Credit cards, which pulled many banks through their most recent profitability problems, may now hold the key to one of the industry's more perplexing marketing challenges.Bankers are looking to their credit card experiences for clues about how to project their identities and hold ...
Banks rushing to finance Disney buyout of Cap Cities. (Walt Disney Co. planned purchase of Capital Cities/ABC Inc.)(Brief Article)
Aug 01, 1995; ... The scramble is on to lead the estimated $10 billion to $15 billion financing for Walt Disney Co.'s purchase of Capital Cities/ABC Inc."Anybody who believes they have a shot at leading this deal will move aggressively to bid for it," said one bank syndicator. "My guess is that ...
House rules chief warns that floor procedure could kill ban on wider powers. (insurance powers for national banks)
Aug 01, 1995; ... A key member of the House Republican leadership is fighting a plan that could wind up killing a proposed ban on new insurance powers for national banks.Rep. Gerald Solomon, chairman of the House Rules Committee, said in a memorandum to Majority Leader Richard Armey that a proposed ...
Originated mortgage servicing rights can count as capital, starting today. (Financial Accounting Standard 122 provision)(Brief Article)
Aug 01, 1995; ... Starting today, banks and thrifts may count originated mortgage servicing rights as capital.Federal regulators announced the change last Friday to bring bank capital standards in line with Financial Accounting Standard 122, which eliminated the distinction between originated and ...
Rx for setting capital standards: work from banks' own models. (New York Federal Reserve Bank vice president Arturo Estrella proposes regulatory model)(Brief Article)
Aug 01, 1995; ... Policymakers are pushing past the increasingly complex calculations of capital to find new and better ways to measure a bank's health.One suggestion comes from Arturo Estrella, vice president of financial markets and institutions at the Federal Reserve Bank of New York. ...
U.S. student-loan deal with EDS draws fire with banks. (Electronic Data Systems Corp. agreement to service government's student loans)
Aug 01, 1995; ... The Department of Education's decision to pay Electronic Data Systems Corp. $150 million to service the government's student loans is prompting complaints from bankers.Taxpayer dollars are being spent to put private-sector student lenders out of business, said Clark McGhee, vice ...
Union Planters earnings hit record $33.9M in 2d quarter.(Brief Article)
Aug 01, 1995; ... Union Planters Corp. reported record second-quarter earnings of $33.9 million, up 29% from $26.3 million in the 1994 quarter.Analysts said the Memphis-based bank had clearly pulled out of last year's slump, which had been caused by merger-related charges."They have moved ...
Keycorp joins U.S. banks' rush to Asia, opening a Hong Kong trade finance unit.(Brief Article)
Aug 01, 1995; ... Cleveland-based Keycorp has opened a Hong Kong-based financial subsidiary, becoming the latest regional bank to expand its global trade finance operations.The new unit, Key Trade Services Ltd., will issue documentary letters of credit for Hong Kong-based suppliers of the bank's ...
Teamsters union widens conflict with NationsBank by filing CRA protests. (Community Reinvestment Act)
Aug 01, 1995; ... The International Brotherhood of Teamsters said it has formally protested NationsBank Corp.'s two planned acquisitions in Florida, citing the Community Reinvestment Act.The union has complained to federal regulators, citing "evidence of persistent racial discrimination in ...
After losing software bid, TRW rips selection process. (TRW Business Credit Services criticizes selection process for Small Business Administration contract)(Brief Article)
Aug 01, 1995; ... The Small Business Administration's decision to use Fair, Isaac & Co.'s credit-scoring software to process low-documentation loan applications has at least one competing supplier very upset.TRW Business Credit Services, of Orange, Calif., which also tried to win the $110,000 ...
Prestige gets preferred status in N.Y. and Pa. (Prestige State Bank approved as Small Business Administration preferred lender)(Brief Article)
Aug 01, 1995 ... Prestige Financial Corp., the holding company for Prestige State Bank, said the U.S. Small Business Administration has approved its request to act as an SBA preferred lender in Pennsylvania and New York territories overseen by SBA district offices in Philadelphia, Pittsburgh, Buffalo, and ...
Ford unit buys $33M SBA portfolio in Calif. (Associates Corporation of North America)(Brief Article)
Aug 01, 1995; ... Associates Corporation of North America said one of its subsidiaries has acquired a $33 million portfolio of SBA loan assets from Tracy Federal Bank of Tracy, Calif., for an undisclosed sum.The assets include 350 accounts in unguaranteed SBA loans and all associated loan servicing ....
Value of deals soars as large players take field.(Merger & Acquisition Roundup)
Aug 01, 1995; ... The dollar value of banking industry mergers and acquisitions soared 61% during the first half of 1995, as the combined prices of announced deals topped $18.4 billion, according to SNL Securities.The bulk of the rise was due to a few megadeals, as large, strategic transactions ...
Bank customers buying bonds instead of bond funds.
Aug 01, 1995; ... Still rattled by last year's bond slump, bank customers are buying short-term bonds instead of shares in long-term bond funds.In a round of interviews last week, many bank brokerage presidents said their customers feel more comfortable with individual bonds.Though the ...
Shawmut drops its plans to merge 2 fund portfolios.(Brief Article)
Aug 01, 1995; ... Shawmut National Corp. has scuttled scuttle plans to merge two of its mutual fund portfolios, citing poor performance and feeble asset growth.Early this year, Federated Investors, Shawmut's fund distributor, filed with the Securities and Exchange Commission for permission to ...
Simplified fund prospectuses hit mails today; experiment includes Mellon, BankAmerica.(Brief Article)
Aug 01, 1995; ... Eight mutual fund operators, including two affiliated with big banks, will start today to mail experimental "user-friendly" fund profiles to prospective investors.The profiles, which discuss investment style and performance, will cover Mellon Bank Corp.'s Dreyfus Funds and ...
N.Y. Society for group execs taps Lehrman. (Robert O. Lehrman named chairman of the New York Society of Association Executives)(Brief Article)
Aug 01, 1995 ... Robert O. Lehrman, president of the Community Bankers Association of New York State, was elected chairman of the New York Society of Association Executives.He succeeds Marie Rossi in the position.Mr. Lehrman is head of an association representing savings ...
Sterling says profits up 34% in 2d quarter. (Sterling Bancorp)(Brief Article)
Aug 01, 1995 ... Sterling Bancorp reported a 34% increase in net income for the second quarter, to $1.297 million, and a 36% increase in net income for the six months ...
Jefferson acquiring another Texas thrift. (Jefferson Savings Bancorp acquires Shelby-Panola Savings)(Brief Article)
Aug 01, 1995 ... Jefferson Savings Bancorp completed its third acquisition in Texas with its purchase of Shelby-Panola Savings Association, Carthage. This deal follows the acquisition by Jefferson of North Texas Savings and Loan Association, Denton, and First Federal Savings Bank of Longview, on May 31. ...
1st National of Gainesville announces deal. (First National Bancorp of Gainesville, Georgia to acquire Bank of Heard County, Georgia)(Brief Article)
Aug 01, 1995 ... First National Bancorp is planning to buy Bank of Heard County in Franklin, Ga.First National will exchange 325.58 shares of common stock for every 1,000 shares ...
Mountain Parks reports record earnings. (Mountain Parks Financial Corp.)(Brief Article)
Aug 01, 1995 ... Mountain Parks Financial Corp. had record second-quarter earnings, with net income topping $1.6 million. For the first six months, Mountain ...
Banks in Conn. and Calif. seized, for 5th and 6th failures this year. (Founders Bank, New Haven, Connecticut and Pacific Heritage Bank, Los Angeles, California)(Brief Article)
Aug 01, 1995; ... Regulators seized two community banks this weekend after their managements failed to resuscitate them.Late on Friday, Connecticut Banking Commissioner John P. Burke closed New Haven-based Founders Bank, while California Superintendent of Banks Conrad W. Hewitt shuttered Pacific ...
Aggressive tactics foreseen as industry consolidates.(Merger & Acquisition Roundup)
Aug 01, 1995; ... It was not supposed to happen in the computer software business, but International Business Machines did it anyway this summer: making a hostile bid, and a successful one at that.Could it happen in the banking industry, where regulatory and cultural hurdles have long limited ...
Psst! Secret signs that a bank is about to be sold.
Aug 01, 1995; ... It was a tough decision.The contest question was: What are the best signs that a bank is "in play" - that management and the board are likely to try to sell it soon.Two readers sent in such good replies that we've decided to make both of them president for a day of the ...
After internal battle, broker trade group appears to rebound. (National Association of Mortgage Brokers)
Aug 01, 1995; ... The National Association of Mortgage Brokers, beset with internal strife over much of the past year, seems to be regaining its footing.Since last August, when its top executives began quitting, there have been worries that affiliated state associations would do the same. ...
Rising rates stall refinancings and put a brake on new loans. (mortgage banking refinancing volume declines)(Brief Article)
Aug 01, 1995; ... With interest rates hovering at a little over 8%, mortgage bankers have found refinancing volume drying up, and purchase loans falling as well."Over the last couple of weeks we've had a rather sharp backup in interest rates, much to the chagrin of mortgage bankers and consumers ...
Foreclosures depress S. California property values.(Brief Article)
Aug 01, 1995; ... Foreclosed properties put back on the market for sale are dragging down property values in Southern California, according to a recent study.Property values in Southern California have declined about 15% to 17%, according to Dataquick, a national real estate research company in La ...
Surf's up for small banks riding wave of mergers.(Merger & Acquisition Roundup)
Aug 01, 1995; ... Mergers among the nation's community banks, already steaming along at a record clip, could well heat up further in the next five years, particularly in fast-growing markets that still have many small institutions.Consolidation activity across the banking industry has been steadily ...
Equifax combines check and card service units.
Aug 01, 1995; ... Equifax Inc., the diversified Atlanta-based credit rating agency, has consolidated its check and card services business into one group.The new entity, Equifax Payment Services, based in Tampa, Fla., will combine the operating, risk management, processing, and sales functions of the ...
Wal-Mart to accept Maestro debit cards in 2,000 stores.(Brief Article)
Aug 01, 1995; ... The allure of point of sale debit has hooked another major retailer.Wal-Mart Stores Inc., Bentonville, Ark., has signed a contract with Checkmate Electronics Inc., to install the Roswell, Ga., company's CM 2001 automated teller machine/point of sale terminals in nearly 2,000 ...
Verifone to get Amex merchants on-line.(Brief Article)
Aug 01, 1995; ... Verifone Inc., Redwood City, Calif., has signed a product and service leasing agreement with American Express Travel Related Services Co.Under the agreement, Verifone will provide thousands of Omni 460 transaction automation systems and support services in a bundled leasing package ...
Australian terminal make jumps into U.S. market. (Intellect opens office in San Jose, California)(Brief Article)
Aug 01, 1995; ... An Australian terminal manufacturer, Intellect, is coming to the United States to grab a piece of the growing debit market.The company opened an office in San Jose, Calif., last week as its initial sales and distribution arm in North America.Intellect designs and ...
IBAA Bancard to push MasterCard debit plans. (MasterCard International)(Brief Article)
Aug 01, 1995 ... MasterCard International and IBAA Bancard said they have formed an alliance to market MasterCard's debit program.The Complete Debit Program includes MasterMoney, MasterCard's off-line debit card; Maestro, its on-line card; and Cirrus, its international network of automated teller ...
SPS says profits rose 10% in 2Q, to $9.8M. (SPS Transaction Services reports quarterly earnings)(Brief Article)
Aug 01, 1995 ... SPS Transaction Services Inc. reported that net income for the second quarter rose 10%, to $9.8 million or 36 cents per share.The provider of technology-based outsourcing services also reported a 28% increase in net operating revenues, to a record $76.2 million.President ...
Acquirers making up for lost decade in Louisiana.(Merger & Acquisition Roundup)
Aug 01, 1995; ... Louisiana, where bank consolidation was long delayed by a soft economy, is now one of the hottest merger and acquisition markets in the nation.Community banks have been selling out at steep prices as the state's largest institutions strive to build up their franchises. ...
Wealth builder vendor to sell through banks. (Reality Online Inc.)
Aug 01, 1995; ... Reality Online Inc. is following the lead of some larger rivals with plans to market its personal investment software through banks and other financial companies.The King of Prussia, Pa.-based software unit, owned by Reuters, has decided to go the wholesale route after years of ...
California economy thwarting deals for big thrifts.(Merger & Acquisition Roundup)
Aug 01, 1995; ... It's been said so often that it's become a cliche:Sometime soon, one of California's biggest thrift institutions will merge with an in-state competitor, or be bought by an out-of-state bank.And when that happens, the conventional wisdom goes, the floodgates for deals ...
Revenue add-ons to assume greater importance. (First Manhattan Consulting Group's Lawrence A. Willis and Robert Ziska)(Merger & Acquisition Roundup)(Interview)
Aug 01, 1995; ... Facing pressure to make acquisitions pay off quickly, bankers have grown skilled at targeting cost savings to offset premiums paid in mergers. But as acquirers increasingly focus on out-of-market targets, experts say that expense reductions may become less important than forecasting and ...
Goldman gives a different spin on spinoffs. (interview with Goldman, Sachs & Co. executives J. Christopher Flowers and Milton R. Berlinski)(Interview)
Aug 01, 1995; ... Contrary to those who advocate spinning off business lines to enhance shareholder value, J. Christopher Flowers and Milton R. Berlinski believe big conglomerates do well for the shareholders over the long haul.While acknowledging that some spinoffs have served shareholders well - ...
North Fork Bancorp loses bidding war for a local thrift.
Aug 01, 1995; ... A bidding war on Long Island, N.Y., ended Monday, when Sunrise Bancorp said it accepted a $110 million buyout offer from Reliance Bancorp - rejecting the overtures of North Fork Bancorp.The deal, at $32 a share - or about 1.6 times Sunrise's book value on June 30 - ends half a year ...
Moody's rating banks on safety. (Moody's Investor Service Inc. develops system to rate individual banks on safety)(Brief Article)
Aug 01, 1995; ... Hoping to help international investors and borrowers to differentiate between bank holding companies and their parts, Moody's Investors Service Inc. has established a system to rate the individual banks.The A-to-E scale is derived from Moody's debt and deposit ratings. The ...
Reconsidering the role of the outside attorney.(Merger & Acquisition Roundup)
Aug 01, 1995; ... If there is one person that should appreciate the role of outside lawyers in banking mergers, it is Robert Moore.Mr. Moore spent 15 years as outside legal counsel for Union Planters Corp. before being named president of the Memphis-based banking company.Once he put on ...
Beefed up adviser group paying off for Morgan Stanley. (includes rankings of bank-merger advisory services)(Merger & Acquisition Roundup)
Aug 01, 1995; ... Morgan Stanley & Co. had the leading position among top bank advisers at the midway point of 1995, according to SNL Securities Inc.The New York investment bank advised on five deals valued at $10.9 billion. Included among those deals was Morgan Stanley's representation of Banco ...
Theology grad is Norwest's apostle to buyout-bound. (Norwest Bank Minnesota's Justin Stets)(Merger & Acquisition Roundup)
Aug 01, 1995; ... With a master's degree in theology from Harvard University hanging on his wall, Justin Stets might seem out of place negotiating deals in the buy-and-sell world of bank acquisitions.But on the contrary, Mr. Stets, vice president and manager of correspondent advisory services for ...
From a lender's perspective, network deals are poles apart.(television network acquisition lending)(Brief Article)
Aug 02, 1995; ... Walt Disney and Westinghouse have turned the spotlight on media lending this week, announcing broadcast network acquisitions that could add as much as $20 billion in loan demand to what already is one of the most active sectors for bank financing.The deals are the latest in a wave ...
Amex joins cobranding fray with Delta card.(American Express Travel Related Services Company Inc., Delta Air Lines Inc.)(Product Announcement)
Aug 02, 1995; ... American Express Travel Related Services Co. has made its long-awaited entry into credit card cobranding, through a marketing partnership it announced Tuesday with Delta Airlines.The companies had long been rumored to be nearing a cobranding arrangement. Delta, which will call the ...
FDIC slashes failure estimates for thrifts as industry revives.(Federal Deposit Insurance Corp.)(Brief Article)
Aug 02, 1995; ... The government's forecast of failed thrift assets has been cut dramatically in recognition of the industry's improved fortunes.Roger Watson, research director at the Federal Deposit Insurance Corp., said the agency expects to handle just $100 million in failed thrift assets this ...
Ruling on derivatives favors large banks.(Brief Article)
Aug 02, 1995; ... West Virginia's Supreme Court of Appeals has made business safer for derivatives dealers, in a decision whose influence could both benefit and hurt the banking industry.In a surprisingly colorful 36-page ruling, the court placed responsibility for a securities purchase with the ...
A 'solid' quarter at Dime despite on-paper losses.(Dime Bancorp Inc., second quarter 1995)(Brief Article)
Aug 02, 1995; ... Dime Bancorp struggled with margin pressure in the second quarter. But the thrift, New York's largest, still managed to report $18.1 million in earnings on the basis of strong mortgage originations and merger-related cost savings."It was a good, solid quarter," said Smith Barney ...
Corporate banking at Citicorp realigned according to product and industry groups.(Brief Article)
Aug 02, 1995; ... Extending a corporate restructuring first announced in February, Citicorp has realigned its corporate banking operations along products and industry groups, rather than geographic regions.The three product groups include global transactions services, headed by James Bailey; capital ...
Wells Fargo investments in alternative delivery seen eroding profits.(second quarter 1995)(Brief Article)
Aug 02, 1995; ... Wells Fargo & Co. has been singled out by analysts as a leader in alternative delivery of banking services, but in the second quarter that spending finally began to take its toll.In the period ended June 30, Wells Fargo's noninterest expenses rose $17 million, to $560 million, more ...
BCCI figure finds new job: collecting on Iran debt.(Bank of Credit and Commerce International founder Roy Carlson)
Aug 02, 1995; ... Former banker Roy Carlson has found that there is life after BCCI.Mr. Carlson, who lives in Atlanta, was never indicted or even subpoenaed for his relationship with scandal-plagued Bank of Credit and Commerce International. He had, in fact, retired from banking several years before ...
Parent of Wilmington Savings may hang out 'for sale' sign.(WSFS Financial Corp.)(Brief Article)
Aug 02, 1995; ... WSFS Financial Corp., the second-biggest financial institution based in Delaware, may be putting itself on the block.WSFS, the $1.3 billion-asset parent of Wilmington Savings Fund Society, said this week that it had begun looking into strategic alternatives, "including a possible ...
Small banks eyeing acquisitions, poll says.(Grant Thornton L.L.P. study)(Brief Article)
Aug 02, 1995 ... Community banks expect to be active dealmakers under interstate branching, according to a study.About 37% of all community banks believe they will need to acquire at least one other bank in order to stay competitive when full interstate branching takes effect in July 1997, ...
Bank of L.A.'s parent turned profit in 1st half.(BKLA Bancorp., 1995)(Brief Article)
Aug 02, 1995 ... BKLA Bancorp, the parent of Bank of Los Angeles, earned $66,000 in the second quarter, bringing the earnings for the six months ended June 30 to $4,000, as compared with losses of $356,000 and $554,000 for the same periods in 1994.In addition to higher earnings, BKLA made progress ...
First Mariner, a start-up in Maryland, wheeling its way into supermarkets.(in-store branching)(Brief Article)
Aug 02, 1995; ... A tenacious new Baltimore community bank has begun its promised expansion plan - establishing branches in at least four supermarkets in the Baltimore area.First Mariner Bancorp, which opened its doors with $25 million of assets in May, would likely be one of the smallest ...
Bessemer Trust: top dog of a rich, rare breed.(Bessemer Trust Company N.A.)(Company Profile)
Aug 02, 1995; ... Even in the elite world of private banking, Bessemer Trust Co. stands apart.Founded in 1907 to manage a steel magnate's fortune, Bessemer has evolved into a full-fledged bank, albeit one that caters to an exceptionally wealthy clientele. Clients need $5 million just to get in the ...
Keystone acquiring investment firm. (Keystone Financial Inc., Martindale, Andres and Company Inc.)(Brief Article)
Aug 02, 1995; ... In the latest acquisition by a bank of an investment management firm, Keystone Financial Inc. has agreed to acquire Philadelphia-based Martindale Andres & Co. for an undisclosed sum.Under the deal, whose price industry sources estimated at three times Martindale's revenues, ...
A blueprint for brokers to buy thrifts.(Edward D. Jones and Co.)(Brief Article)
Aug 02, 1995; ... Edward D. Jones & Co. has come a long way from the spring of 1994, when it first approached federal regulators about the possibility of buying a small Missouri thrift.At that time, Jones officials said they were unsure how they should proceed with a plan to use Columbia, Mo.-based ...
Newcomer to home loans aims to put Natwest on map.(NatWest Home Mortgage Corp.)
Aug 02, 1995; ... He might be new and relatively unknown in the home mortgage industry, but the head of Natwest's mortgage unit does not intend to stay that way."We are setting up to be a superregional player," said Joseph G. Wessely, managing director of Natwest Home Mortgage Corp., Wall Township, ...
Activists attack Freddie's warning of delinquencies by low-income borrowers.(Federal Home Loan Mortgage Corp.)(Brief Article)
Aug 02, 1995; ... The debate over low-income lending is heating up. A prominent advocacy group has challenged Freddie Mac's assertions about the poor performance of some of its low-income loans.At a recent industry conference, Freddie Mac's chairman, Leland Brendsel, said that his agency's ...
S.C. lender posts 43% fall in profits for second quarter.(Resource Bancshares Mortgage Group Inc.)(Brief Article)
Aug 02, 1995; ... Resource Bancshares Mortgage Group Inc., Columbia, S.C., reported a 43% decline in second-quarter earnings.Net income was $2.5 million, down from $4.4 million in the second quarter of 1994."The impact of the recent significant increase in our mortgage loan pipeline and ...
Law firm hangs shingle in loan software program.(Prieston Law Firm offers loan fraud services via software)(Brief Article)
Aug 02, 1995; ... A San Rafael, Calif., law firm had added its icon to a home mortgage computer system, to help lenders fight loan fraud.Users of Contour Software's Loan Handler program can select the icon to get in touch with the Prieston Law Firm when they are suspicious of a particular loan ....
Fair, Isaac steps up international effort by combining 3 credit-scoring products.(Fair, Isaac and Company Inc.)(Brief Article)
Aug 02, 1995; ... Fair, Isaac & Co., a provider of credit-scoring products, is pushing harder to make its mark on the international scene.The San Rafael, Calif.-based company launched CrediTable International, which consolidates three existing evaluators of a person's ability to repay a loan and ...