Banc One's Expansion Journey

Banc One was formed in 1985 through the merger of six banks in Ohio. This marked the beginning of a significant expansion period for the company.

In the 1990s, Banc One expanded its operations into new markets, including Illinois, Indiana, and Kentucky. The company's acquisition of several smaller banks in these regions helped to establish a stronger presence in the Midwest.

Banc One's expansion efforts were also driven by a series of strategic partnerships and alliances. One notable example was its partnership with the Bank of Boston, which provided access to new markets and customers on the East Coast.

The company's growth and expansion continued throughout the 1990s, culminating in a major merger with First Chicago NBD in 1998.

Banc One's expansion into new states began in 1987 with the acquisition of Marine Corporation, the third-largest bank holding company in Wisconsin. This merger brought 21 banks and 76 offices into the organization, renaming Marine Corp. as Banc One Wisconsin Corp.

Banc One's first acquisition in a state that didn't share a border with Ohio was in Wisconsin. The company acquired Marine Corporation, which had recently purchased banks in Wisconsin, Minnesota, and Illinois. The acquisition also brought a Chicago bank into the organization, which was later sold and then repurchased by Banc One.

Banc One entered the Texas market in 1989 through the acquisition of failed banks seized by the Federal Deposit Insurance Corporation. This acquisition gave Banc One access to new markets in Texas and allowed the company to operate a single bank statewide.

In the early 1990s, Banc One made a significant move into the western states.

Banc One acquired two western-based holding bank holding companies, Affiliated Bankshares of Colorado and Valley National Corporation, in 1992. This gave the company access to new markets in Colorado, Arizona, Utah, and California.

The acquisitions were made through stock exchanges, with Banc One paying $378 million to stockholders of Affiliated Bankshares and $1.2 billion to stockholders of Valley National Corporation. This allowed Banc One to expand its presence in these new markets.

Banc One acquired 27 affiliate banks with 38 offices in Colorado, which were later renamed Banc One Colorado. They also acquired 206 offices in Arizona, 35 offices in Utah, and 7 offices in California.

However, Banc One's expansion into California proved to be challenging due to the remote locations of its offices. After two years, the company decided to withdraw from the California market by selling Bank One Fresno to ValliCorp Holdings.

In May 1994, Banc One increased its holdings in Arizona by acquiring 58 of 60 Arizona offices of the failed Great American Bank from the Resolution Trust Corporation for $49.36 million.

In 1993, Banc One made a significant move into the state of West Virginia by acquiring Key Centurion Bancshares for $536 million in stock.

Banc One's acquisition of Key Centurion Bancshares brought with it 54 offices throughout West Virginia and parts of eastern Kentucky.

This marked a major expansion for Banc One, allowing it to establish a strong presence in the region.

Key Centurion Bancshares was the largest bank holding company in West Virginia at the time, giving Banc One a significant foothold in the state's financial landscape.

Banc One entered Oklahoma by acquiring the Central Banking Group in Oklahoma City for $96 million in stock in 1994.

The acquisition gave Banc One eight offices all located in Oklahoma City.

Thirty months later, Banc One expanded further into the state by acquiring Liberty Bancorporation of Oklahoma City for $546 million in stock in 1997.

Liberty had 29 offices in Oklahoma City and Tulsa at the time of the acquisition, significantly increasing Banc One's presence in the state.

Banc One made a significant move into Louisiana in the mid-1990s.

In 1996, the company acquired Premier Bancorp of Baton Rouge for $700 million in stock. Premier Bancorp was the third-largest bank holding company in the state, with 150 offices.

This acquisition marked a long-standing relationship between Banc One and Premier, with Charles "Chuck" McCoy, the former head of Premier, having ties to Banc One's leadership.

A year later, Banc One acquired First Commerce Corporation of New Orleans for $3.5 billion in stock, expanding its presence in the state even further.

This acquisition included the lead bank First National Bank of Commerce and five other regional banks, totaling 144 banking offices.

In 1989, Banc One entered the state of Texas through the acquisition of 20 failed banks that were seized by the FDIC. The FDIC had consolidated these banks into a single bank called the Deposit Insurance Bridge Bank.

The failure of these 20 banks cost the FDIC $2.8 billion, and Banc One was able to acquire them at a discount. The banks were formerly owned by MCorp, the second largest bank holding company in Texas at the time of its failure.

Banc One formed Bank One Texas as the state holding company and brought in managers from other parts of the organization to correct mistakes that led to the insolvency. They kept a few key MCorp staff on board due to their leadership and connections.

Laws were changed in Texas to allow Banc One to operate a single bank statewide, rather than being restricted by narrow geographical regions. This change made it easier for Banc One to expand its operations in the state.

In 1990, Banc One acquired the failed Bright Banc Savings from the Resolution Trust Corporation for $1.4 billion. The 48 former branch offices were integrated into Bank One Texas, which had 63 branch offices at the time.

The following year, Banc One acquired 13 Houston-area offices of the failed Benjamin Franklin Savings from the RTC for $36 million.

In 1987, Banc One made its first acquisition in a state that didn't share a border with Ohio, buying Marine Corporation, the third-largest bank holding company in Wisconsin.

This merger brought 21 banks and 76 offices into the organization, with Marine Corp being renamed Banc One Wisconsin Corp. and its subsidiary banks becoming Bank One.

Marine was trying to resist an unwanted acquisition attempt by Marshall & Ilsley at the time, which would have led to massive firings.

Marine had been on a buying spree in Wisconsin and surrounding states since the banking laws loosened, purchasing banks in Minnesota and Illinois just a few months prior.

In December 1986, Marine entered the Chicago market by buying the American branch of Banco di Roma, which was then renamed Marine Bank Chicago.

However, Marine had to sell its Minnesota banks to First Bank System and the Chicago bank to a lawyer because Minnesota and Illinois wouldn't let Ohio-based companies own banks.

The lawyer sold the Chicago bank back to Banc One in 1990, after Illinois changed its laws to allow Ohio-based companies to own banks, and made a substantial profit in the process.

Banc One's expansion into Kentucky was a gradual process that spanned several years.

The bank first entered the state in 1986 with the acquisition of Citizens Union National Bank & Trust Co. of Lexington, Kentucky, which was renamed Bank One Lexington.

In 1992, Banc One acquired Lexington-based First Security Corporation of Kentucky, adding 28 offices to its presence in the state. The offices were folded into Bank One Lexington, with a few closures due to proximity to existing branches.

Banc One's presence in Kentucky was still limited beyond Lexington and suburban Cincinnati, so it acquired Louisville-based Liberty National Bancorp in 1994 for $842 million in stock. This acquisition brought 104 banking offices throughout Kentucky and Southern Indiana under the Banc One umbrella.

The Liberty National Bancorp was renamed Banc One Kentucky, with its lead bank, Liberty National Bank and Trust Company of Kentucky, becoming Bank One Kentucky.

Bank One expanded into Michigan in late 1986 by acquiring the Citizens State Bank in Sturgis, Michigan, and converting it into Bank One Sturgis.

Their quick expansion led to additional acquisitions in East Lansing, Fenton, and Ypsilanti, Michigan, within a few months.

The Citizens Banking Corp. later acquired all four Michigan banks from Banc One for $115 million in September 1994.

This divestiture was completed in February 1995, marking the end of Bank One's presence in Michigan for nearly a decade.

Bank One didn't return to Michigan until the 1998 merger with First Chicago NBD, which led to the rebranding of the former NBD offices.

Banc One rapidly expanded outside of Ohio in 1985, following a change in federal and state banking laws. This marked the beginning of the bank's growth beyond its home state.

Its first out-of-state acquisition was the Purdue National Bank in Lafayette, Indiana, which was renamed Bank One Lafayette. This was just the first of many acquisitions in the region.

In 1986, Banc One acquired the Citizens Union National Bank & Trust Co. of Lexington, Kentucky, renaming it Bank One Lexington. This was followed by the purchase of several small banks in Indiana and Kentucky.

The bank also acquired the Merrillville, Indiana-based Bank of Indiana and renamed it Bank One Merrillville. This was quickly followed by acquisitions in Marion, Indiana, and other nearby towns.

The acquisition of American Fletcher Corporation, a multi-bank holding company, had a significant impact on the management of Banc One Corp. in 1986. This merger gave 20% of the voting stock in the new company to the former managers of American Fletcher.

Frank E. McKinney, Jr., the head of American Fletcher, replaced John B. McCoy as president of Banc One Corp. and moved McCoy up to chairman of the combined organization. This change led to the formation of a two-tiered management system with statewide holding companies.

The merger with American Fletcher Corp. also brought along four small banks that American Fletcher had recently acquired or was in the process of acquiring. These banks included Citizens Northern Bank of Elkhart, Carmel Bank & Trust Co., First American National Bank of Plainfield, and Union Bank & Trust Co. of Franklin.

In 1987, Banc One acquired the First National Bank of Bloomington in Bloomington, Indiana, renaming it Bank One Bloomington. This acquisition temporarily ceased further acquisitions in the state of Indiana due to reaching the state's cap on ownership.

Banc One expanded into Michigan in late 1986 by acquiring the Citizens State Bank in Sturgis, Michigan, and converting it into Bank One Sturgis. Additional acquisitions were made in East Lansing, Fenton, and Ypsilanti, Michigan, within a few months.

Central Ohio saw significant expansion by Banc One Corp. In October 1979, First Banc Group, Inc. became Banc One Corporation, and each member bank was renamed Bank One followed by the city or geographic area it served.

City National Bank was renamed Bank One Columbus, and Security Central National Bank became Bank One Portsmouth. Farmers Saving & Trust Company was renamed Bank One Mansfield. These changes unified the marketing efforts of its member banks.

In 1980, Banc One acquired banks in Painesville, Ohio, including Lake County National Bank, which was renamed Bank One Painesville.

Bank One Corporation was formed in 1998 through the merger of Banc One Corporation and First Chicago NBD. This move marked a significant shift in the company's headquarters, which was relocated from Columbus to Chicago.

John B. McCoy, a long-time CEO, left the company due to adverse financial results. Jamie Dimon, a former executive at Citigroup, took over as CEO.

In 1998, Bank One paid $66 million for the naming rights to a new ballpark in Phoenix, which was later renamed Chase Field in 2005.

Banc One began to rapidly expand outside of Ohio in 1985, thanks to changes in federal and state banking laws. Its first out-of-state acquisition was Purdue National Bank in Lafayette, Indiana, which was renamed Bank One Lafayette.

The bank continued to expand in Indiana, acquiring several small banks, including Bank of Indiana, which was renamed Bank One Merrillville.

Banc One made a significant acquisition in 1997, buying First USA for $7.9 billion in stock, which was a major move to expand its national credit card business.

This acquisition brought a large number of cardholders into the fold, with First USA adding 32 million cardholders to Banc One's existing customer base.

Banc One's chairman and CEO, John McCoy, saw the acquisition as a way to create a powerful new dimension in the company's competitive arsenal and significantly change the way it could compete in the consumer financial services business.

First USA was known for its low-cost structure, marketing savvy, and cutting-edge technology, which would complement Banc One's existing operations.

The combined operation would have assets of $35 billion, and officials did not expect layoffs to result from the acquisition.

John McCoy had been eyeing the credit card industry for some time, predicting in a 1993 letter to shareholders that specialized card issuers would continue to develop economies of scale and drive smaller bank card programs out of the market.

Banc One was showing healthy growth in its credit card business, but First USA reported even faster growth and had lower losses from delinquencies, making it an attractive acquisition target.

John McCoy's vision for Banc One was to become a national banking company, and the acquisition of First USA was a key step in achieving that goal.

Bank One Corp. reached a settlement over improper mutual-fund trading practices just before its merger with J.P. Morgan Chase & Co. The settlement cost Bank One $90 million, which will be paid in civil penalties, restitution, and fee reductions for investors.

The agreement involves Bank One's investment unit, Banc One Investment Advisers, which has over $100 billion in assets. This unit's market timing practices were discovered last summer during an investigation of hedge fund Canary Capital Partners LLC.

Bank One agreed to pay $40 million in civil penalties, $10 million in restitution, and $40 million in fee reductions for investors over the next five years. This is another step forward for the agencies that uncovered the "market timing" scandal last year.

Mark Beeson, the former president and CEO of the company's One Group mutual funds, was ordered to pay a civil penalty of $100,000 and barred from the mutual-fund industry for three years.