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First Bank System

First Bank System was a Minneapolis, Minnesota-based regional bank holding company that operated from 1864 to 1997. What was once First Bank forms the core of today's U.S. Bancorp; First Bank merged with the old U.S. Bancorp in 1997 and took the U.S. Bancorp name.

History

First Bank's earliest direct corporate ancestor, First National Bank of Minneapolis, was founded in 1864 and received its charter in 1865. That bank, in turn, grew out of private banking house Sidel, Wolford and Co.[1][2]

On August 23, 1929, First National Bank of Minneapolis merged with First National Bank of Saint Paul (founded in 1864 out of private banking house Parker, Paine and Co.) to form the First Bank Stock Corporation. The two banks jointly acquired the stock in 32 other banks in Minnesota, North and South Dakota and Montana.[3][4][5]

In February 1956, First Bank Stock Corporation announced the pending acquisition of six banks in Minnesota and one bank in La Crosse, Wisconsin.[6][7] This transaction is significant for the holding company since it marks its first entry into the state of Wisconsin and would also mark its last acquisition outside of Minnesota due to the passage of the Bank Holding Company Act of 1956 a few months later which would forbid new interstate acquisitions until provisions of this act were gradually weakened during the mid-1980s and later removed the following decade.

In April 1968, the First Bank Stock Corporation changed its name to First Bank System Inc.[8]

In 1992, the company moved into its new 53-story headquarters building called First Bank Place.[9] At the time of its completion, the building was one of the tallest buildings in Minneapolis.

Expansion in Minnesota

In May 1989, First Bank System announced the pending acquisition of the Anoka-based Northern Cities Bancorp. Inc. with its Northern Bank of Anoka and Northern National Bank of Forest Lake subsidiaries for an undisclosed amount.[10]

In January 1992, First Bank System announced the pending acquisition of Carl Pohlad's Minneapolis-based Bank Shares Inc. with its Marquette Bank Minneapolis and Marquette Bank Rochester subsidiary for $230 million in stock.[11] After hearing that Federal and state regulators had plan to block the acquisition on the grounds that the acquisition as planned would result in capturing a too large of the percentage of the banking market in the Rochester area, the acquisition was modified in October to exclude the purchase of the Rochester bank so that the new deal was only for the 22-office Marquette Bank Minneapolis for $200 million in stock.[12] The acquisition was completed in December 1992.[13] Three First Bank and seven Marquette Minneapolis offices were closed as a result of the acquisition.

In April 1993, First Bank System announced the pending acquisition of the Mankato-based American Bancshares and its American Bank subsidiary for an undisclosed amount.[14] The acquisition was completed in March 1994.[15]

In July 1994, First Bank System announced the pending acquisition of the Minneapolis-based Metropolitan Financial Corporation with its Metropolitan Federal Savings Bank subsidiary for approximately $877 million in stock.[16] At the time of the announcement, Metropolitan Financial had 211 offices in Minnesota, Nebraska, Iowa, Kansas, Wisconsin, Wyoming and the Dakotas while First Bank had 215 offices in Minnesota, Colorado, Illinois, Montana, Wisconsin and the Dakotas. The acquisition was completed in January 1995 for $800 million in stock.[17] This acquisition gave First Bank System first time entry into the states of Nebraska, Iowa, Kansas and Wyoming. First Bank sold off 63 Metropolitan Financial locations in eight states to 28 different banks since First Bank believed that those locations had lacked the potential for growth.[18]

Expansion in North Dakota

In December 1991, First Bank System announced the pending acquisition of the Fargo-based Siouxland Bank Holding Co. with its Dakota Bank and Trust of Fargo and First National Bank of Hettinger subsidiaries for an undisclosed amount.[19] The acquisition was completed in July 1992.[20] As required by North Dakota state regulators, First Bank sold First National Bank of Hettinger to Rolla-based Rolla Holding Co. in the following year.[21]

In December 1993, First Bank System announced the pending acquisition of the Bismarck-based United Bank of Bismarck in North Dakota for an undisclosed amount.[22][23] The acquisition was completed in September 1994.[24]

Expansion in South Dakota

In October 1994, First Bank System announced the pending acquisition of the Sioux Falls-based First Western Corporation with its Western Bank subsidiary for an undisclosed amount.[25] The acquisition was completed in March 1995.[26]

Expansion in Wisconsin

First Bank System first entered the state of Wisconsin by announcing in February 1956 the pending acquisition of the La Crosse-based Batavian National Bank,[7][6] later renamed National Bank of Wisconsin.

In July 1977, First Bank System announced that its Wisconsin subsidiary had purchased the ailing Midland National Bank of Milwaukee for $13 million in a transaction facilitated by the Comptroller of Currency.[27][28] After the acquisition, La Crosse-based National Bank of Wisconsin was renamed First Bank, La Crosse, and Midland National Bank became a branch of the La Crosse bank and was then renamed First Bank-Midland Milwaukee Division. Since First Bank System had entered Milwaukee through a loophole in the Bank Holding Company Act of 1956, the three largest Milwaukee-based banks immediately tried to get the federal courts to reverse the Comptroller's ruling,[29][30] but were unsuccessful.[31]

Temporary expansion in Washington

In September 1986, First Bank System announced the acquisition of the failed Omak-based Mid Valley Bank of Omak for an undisclosed amount from Washington state regulators in a Federal Deposit Insurance Corporation facilitated transaction. The acquired bank was renamed First Bank Washington.[32][33]

Seven years later, First Bank System announced the pending sale of the four-office First Bank Washington to a group of local investors for $4 million. The sale was completed in May 1994.[34][35]

Expansion in Colorado

First Bank System first entered the state of Colorado by announcing in June 1988 the pending acquisition of the Denver-based Central Bancorporation with its 19 Central Bank subsidiaries for $135 million for AmeriTrust's 88% interest in the company and $17.5 million to acquire the remaining 12% from the minority investors.[36] To allow First Bank to make a bid on Central, First Bank had to agree with the state of Colorado to help bail out 9,000 industrial bank depositors in 14 failed Colorado industrial banks by paying those depositors $8 million.[37] The acquisition was completed in December 1988.[38]

In July 1991, First Bank System announced the acquisition of deposits and 18 branch offices of the failed Aurora-based Capitol Federal Savings from the Resolution Trust Corporation for $12.5 million.[39] Two of the acquired offices were closed and the remaining 16 offices became branch offices of Central Bank.

In May 1992, First Bank System announced the pending acquisition of the Denver-based Western Capital Investment Corporation with its 35-location Bank Western for $150 million in stock.[40] The acquisition was completed in December 1992.[41]

In November 1992, First Bank System announced the pending acquisition of the Denver-based Colorado National Bankshares with its Colorado National Bank subsidiary for $500 million in stock.[42] The acquisition was completed in May 1993.[43]

In June 1993, First Bank System merged all of its Colorado interests into Colorado National Bank. Ten redundant branch offices were closed at this time.[44]

Expansion in Illinois

First Bank System first entered the state of Illinois by announcing in September 1993 the pending acquisition of the troubled Chicago-based Boulevard Bancorp with its Boulevard Bank in the Wrigley Building, National Security Bank of Chicago, First National Bank of Des Plaines and Citizens National Bank of Downers Grove subsidiaries for $200 million in stock.[45][46] The acquisition was completed in March 1994.[47][48] The four separate subsidiary banks were combined to form the statewide 10-office First Bank Illinois.

Expansion in Nebraska

First Bank System first entered Nebraska through the January 1995 acquisition of the Minnesota-based Metropolitan Financial.

In June 1995, First Bank System announced the pending acquisitions of Southwest Bank of Omaha and also First Bank of Omaha in two separate transaction for disclosed amounts.[49][50][51] Both acquisitions was completed in November 1995.[52]

In August 1995, First Bank System announced the pending acquisition of the Omaha-based Firstier Financial Inc. for $700 million in stock.[53][54] The acquisition was completed in February 1996 for $908 million in stock.[55] After completing the acquisition, merged all of the offices in Nebraska that were formerly offices of Metropolitan Federal Savings, Southwest Bank and First Bank of Omaha to form First Bank Nebraska. 28 offices were closed while 65 were retained.[56]

U.S. Bancorp

In March 1997, First Bank System announced its pending acquisition of Portland, Oregon-based U.S. Bancorp for $9 billion in stock.[57][58][59] At the time of the announcement, U.S. Bancorp of Oregon had banking offices in Oregon, Washington, California, Idaho and Utah while First Bank System had banking offices in Minnesota, Colorado, Nebraska, North Dakota, South Dakota, Montana, Iowa, Illinois, Wisconsin, Kansas, and Wyoming. Under the terms of the acquisition, First Bank System would be the nominal survivor, and the merged company would be based at First Bank's headquarters in Minneapolis. However, the merged bank took the more recognizable U. S. Bancorp name. John F. Grundhofer, chairman and chief executive of First Bank, was appointed president and chief executive of the new company while Gerry B. Cameron, chairman and chief executive of U.S. Bancorp of Oregon, was appointed chairman of the new company, which he held until his retirement in 1998. The acquisition was completed in August 1997.[60] Approximately 4000 jobs were eliminated, mostly in Portland.[61]

External links

References

  1. History: Learn how our past is shaping our future.^
  2. U.S. Bank: A Rich Heritage^
  3. Bank Group of Northwest in Huge Combine Los Angeles Times, August 23, 1929^
  4. Merge 37 Banks With Resources Of $341,000,000: Minneapolis 1st National Heads Organization. Chicago Daily Tribune, August 23, 1929^
  5. Twin Cities Bank Merger Wall Street Journal, August 24, 1929^
  6. 6 Banks May Join Holding Company New York Times, February 7, 1956^
  7. 7 Banks Merging New York Herald Tribune, February 4, 1956^
  8. Banking Concern Changes Name Wall Street Journal, April 25, 1968^
  9. Minneapolis / Skyscraper celebration set Minneapolis Star-Tribune, October 17, 1992^
  10. Neal St. Anthony. First Bank System will buy 2 banks Star-Tribune, May 19, 1989^
  11. page 8A Neal St. Anthony, Tony Kennedy. FBS to buy Pohlad banks - Proposed First Bank-Marquette deal would be largest in Twin Cities history Minneapolis Star-Tribune, January 17, 1992^
  12. page 6D Neal St. Anthony. First Bank System, Bank Shares Inc. to exclude Marquette Bank Rochester from merger plans - Justice Department said deal would limit competition in area Minneapolis Star-Tribune, October 23, 1992^
  13. Bank Acquisition Complete St. Paul Pioneer Press, January 1, 1993^
  14. Neal St. Anthony. FBS agrees to buy bank in Mankato Minneapolis Star-Tribune, April 28, 1993^
  15. Neal St. Anthony. FBS completes Mankato acquisition Minneapolis Star-Tribune, March 1, 1994^
  16. Bank May Offer Up to $877 Million For Metropolitan Omaha World-Herald, July 1, 1994, retrieved June 20, 2017^
  17. Neal St. Anthony. FBS, Metropolitan shareholders OK deal Minneapolis Star-Tribune, January 25, 1995, retrieved June 20, 2017^
  18. Martin J. Moylan. FBS Sells Metropolitan Banks St. Paul Pioneer Press, February 4, 1995, retrieved June 21, 2017^
  19. First Bank Buys Fargo, Hettinger Banks Grand Forks Herald, December 17, 1991^
  20. Neal St. Anthony. N.D. panel approves FBS purchase Minneapolis Star-Tribune, July 1, 1992^
  21. FBS Institution to Be Sold St. Paul Pioneer Press, April 24, 1993^
  22. First Bank System Acquisition Wall Street Journal, December 27, 1993^
  23. Dee DePass. First Bank Systems signs agreement to acquire United Bank of Bismarck - Deal would double First's presence in N.D. city where it has three branches Minneapolis Star-Tribune, December 24, 1993^
  24. First Bank Buy Complete St. Paul Pioneer Press, September 13, 1994^
  25. Dee DePass. First Bank System signs agreement to buy S.D. bank holding company with 9 branches - First Western Corp. includes 3rd-largest bank in Sioux Falls Minneapolis Star-Tribune, October 19, 1994^
  26. First Bank Buys S. Dakota Firm Omaha World-Herald, March 17, 1995^
  27. Ailing Midland National Is Sold For $13 Million Wall Street Journal, July 25, 1977^
  28. Fourth Largest Bank In Wisconsin Sold New York Times, July 25, 1977^
  29. U.S. Comptroller Sued By 3 Milwaukee Banks Because of Acquisition Wall Street Journal, January 23, 1978^
  30. Bank takeover in Wisconsin prompts lawsuit Chicago Tribune, January 21, 1978^
  31. First Bank System Inc. Wins Dismissal of Suit On Milwaukee Merger Wall Street Journal, July 9, 1980^
  32. Joe Blade. First Bank System buys Washington state bank - Move allows expansion to a sixth state Minneapolis Star-Tribune, September 3, 1986^
  33. First Bank Buys Omak Institution Seattle Post-Intelligencer, September 2, 1986^
  34. Bill Virgin. Minneapolis Bank Pulling Back From Move Into State - Omak-Based Operation Sold to Local Investors Seattle Post-Intelligencer, October 20, 1993^
  35. Wenatchee Bank Expands North: Central Washington Bank Acquires First Bank, Stretching Holdings Into Okanogan County. Wenatchee World, May 3, 1994^
  36. Wayne Heilman. Minneapolis firm will purchase Central banks - Part of deal to help customers of failed industrials Cedar Rapids Gazette, June 22, 1988^
  37. Minneapolis firm bids for Central - Help for industrials' customers Cedar Rapids Gazette, June 3, 1988^
  38. Business Briefing St. Paul Pioneer Press, December 3, 1988^
  39. Steve Brook. First Bank Buys Deposits Of Failed S&L // purchase Expands Colorado Holdings St. Paul Pioneer Press, July 13, 1991^
  40. John Rebchook. Bank Firm Buying Big Colo. S&L First Bank to Pay $150 Million for Bank Western Parent Firm Rocky Mountain News, May 1, 1992^
  41. Neal St. Anthony. First Bank System completes purchase of Western Capital - FBS on way to becoming Colorado banking leader Minneapolis Star-Tribune, December 19, 1992^
  42. Michael Quint. Takeover Set For a Bank In Colorado New York Times, November 10, 1992^
  43. FBS Buys Colorado Bank St. Paul Pioneer Press, May 29, 1993^
  44. Steven Wilmsen. First Bank to close 10 offices - Cuts latest phase in 3-way merger of Colo. National Denver Post, June 15, 1993^
  45. Sharon Stangenes. 1st Bank To Buy Boulevard Chicago Tribune, September 30, 1993^
  46. Susan Chandler. Minn. Giant Buys Boulevard Bank Chicago Sun-Times, September 30, 1993^
  47. FBS Buys Illinois Banks St. Paul Pioneer Press, March 26, 1994^
  48. Neal St. Anthony. Acquisition of Chicago banking company gives First Bank System expansion foothold in Illinois - 10 Boulevard offices will be changed to First Bank Illinois Minneapolis Star-Tribune, March 26, 1994^
  49. Steve Jordon. Southwest, First Bank To Be Sold Omaha World-Herald, June 26, 1995^
  50. FBS to Acquire Two Banks St. Paul Pioneer Press, June 27, 1995^
  51. Neal St. Anthony. First Bank System to buy Omaha banks - Deal, designed to boost commercial loan business, to close by end of year Minneapolis Star-Tribune, June 27, 1995^
  52. First Bank Finishes Area Acquisitions Omaha World-Herald, November 2, 1995^
  53. First Bank System to Acquire Firstier Financial in Stock Swap New York Times, August 8, 1995^
  54. Steve Jordon. First Bank of Minneapolis Buying FirsTier of Omaha Closings, Layoffs Are Expected Omaha World-Herald, August 7, 1995^
  55. Steve Jordon. FirsTier Is Biggest Bank Takeover In Nebraska Annals Omaha World-Herald, February 17, 1996^
  56. Steve Jordon. First Bank Will Close 28 Branches Official Mum On Number Of Lost Jobs First Bank's Plan Branch Consolidation Plan Omaha World-Herald, October 18, 1995^
  57. Saul Hansell. First Bank System to Buy U.S. Bancorp of Oregon New York Times, March 21, 1997^
  58. First Bank System to buy U.S. Bancorp: Minneapolis-based... Chicago Tribune, March 20, 1997^
  59. First Bank Strikes Deal To Acquire U.S. Bancorp $9 Billion Deal Will Create 14th-Largest Bank In America The Spokesman-Review, March 21, 1997^
  60. Dee DePass. It's a done deal: First Bank System acquires U.S. Bancorp - and its name - Analysts are waiting to see whether new combined company will make planned $340 million in expense cuts by next year Minneapolis Star-Tribune, August 2, 1997^
  61. Alan K. Ota. U.S. Bank Workers Leave for Good The Oregonian, August 2, 1997, retrieved June 18, 2017^