|
|
Commercial National and City Bank of Commerce of Columbus, Ohio merged to form City National Bank and Trust in 1929. John H. McCoy became president in 1935, starting a family dynasty. His son John G. McCoy took over for him in 1958. In the 1960’s, City National hired a comedienne, Phyllis Diller to do its radio and TV commercials. The commercials launched Diller’s career and made the bank famous. In 1966, City National offered the first Visa credit Card outside of California. It also created the first drive-up bank, and was one of the first banks to use ATM’s. Later, McCoy formed a holding company called First Bank Group of Ohio, which became Banc One in 1979. As soon as interstate barriers collapsed, the bank moved into India, Kentucky, Michigan, and Wisconsin. John B. McCoy, third generation of the banking family, became CEO in 1984. During his reign, the bank acquired over 100 banks in the Midwest. The bank also bought over twenty failed banks and expanded into Texas in 1989. In 1991, the bank moved into Illinois. The bank entered a development alliance with Banco Nacional de Mexico in 1992. The number three bank in Louisiana, Premier Bancorp, was purchased in 1996. A year later, it added Liberty Bancorp, based in Oklahoma City. With the purchase of First USA in 1997, Banc One became the third largest credit card issuer behind Citicorp and MBNA. Bank One formed after a $29 billion merger in 1998 between Banc One of Columbus, OH and First Chicago NBD. The combined Bank One was 40% owned y First Chicago stockholders and 60% owned by Banc One, to become the fifth largest bank in the nation. (Later dropping to sixth) In 1991, Banc One’s annual report announced the slogan “Building share-holder value by sticking to the nuts and bolts”, with a focus on having a good understanding of the ‘nuts and bolts’ of the business. The strategy developed was straightforward and simple to continue the success of the organization. The 1992 annual report, almost identical to the prior year, cited three basic strategies: Serving retail and middle market customers through community banks, with operation on local autonomy, plus a strong central financial and credit controls Enhancements of retail products, competitive advantages, operating efficiencies and the generation of nontraditional bank revenue source, technologies Bank acquisitions to be treated as ongoing lines of business, with a focus on pricing and management disciplines Banc One had many challenges implementing the above strategies.
|
