National City Corporation's Rise to Banking Conglomerate

National City Corporation's Rise to Banking Conglomerate was a remarkable journey that spanned over a century. Founded in 1845, the company started as a small bank in Ohio and gradually expanded its operations to become one of the largest banking conglomerates in the United States.

The company's early success can be attributed to its innovative approach to banking, which included introducing the concept of trust services in the late 19th century. This move helped National City Corporation to diversify its services and attract a wider range of clients.

By the mid-20th century, National City Corporation had established itself as a major player in the banking industry, with a presence in over 20 states across the country. Its aggressive expansion strategy and commitment to excellent customer service contributed significantly to its growth and success.

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National City Corporation has a rich history that spans over 170 years. It was founded on May 17, 1845, when a group of Cleveland, Ohio businessmen pooled $50,000 to organize the City Bank of Cleveland.

The bank was the first to open under the Ohio Bank Act of 1845 in a small town with no gas, electricity, public waterworks, or railroad. It was located at No. 52 Superior Street.

National City Corporation played a significant role in the post World War I period by contributing $173,000,000 in loans to rebuild Germany as part of the Dawes Plan. This included a $30,000,000 insurance on the securities of Allgemeine Elektrizitäts-Gesellschaft (A.E.G.), aka German General Electric, and $35,000,000 to American I.G. Chemical (I.G. Farben).

In 1973, National City Corporation was formed as the holding company for the National City Bank of Cleveland to allow the company to expand outside of Cuyahoga County through the purchase of other banks.

Here are some key acquisitions made by National City Corporation:

In 1992, National City announced that all member banks would change over to operate under the National City name within three years, allowing for a unified brand and simplified advertising.

National City Corporation experienced significant expansion and growth through strategic acquisitions. In Ohio, the company acquired several banks, including the Northern Ohio Bank in 1975 and the Ohio Citizens Bancorp in 1981.

The Ohio acquisitions gave National City a strong presence in the state. By 1984, the company had acquired BancOhio Bancorp for $310 million in stock and cash.

National City's expansion continued into neighboring states, including Kentucky and Indiana. In Kentucky, the company acquired First Kentucky National Corporation in 1988 for $660 million in stock.

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National City Corp. made significant strides in Ohio, expanding its presence through strategic acquisitions.

In February 1975, National City Corp. acquired the assets of the failed Northern Ohio Bank from the Federal Deposit Insurance Corporation. This marked a crucial step in the company's growth.

The acquisition of the Cleveland-based Bank of Cleveland in March 1975 further solidified National City Corp.'s position in the region. The deal was completed in January 1976.

In December 1975, National City Corp. acquired the Elyria-based First National Bank of Elyria for $4.6 million in cash. This acquisition was completed in August 1976.

National City Corp.'s expansion continued with the acquisition of the Norwalk-based Huron County Banking Company in July 1979. The deal was completed in May 1979.

In December 1981, National City Corp. acquired the Toledo-based Ohio Citizens Bancorp for $64 million in cash and notes. This marked a significant milestone in the company's growth.

The acquisition of the Columbus-based BancOhio Bancorp in March 1984 was another major move for National City Corp. The deal was worth $310 million in stock and cash.

In May 1986, National City Corp. acquired 18 offices from the troubled Cleveland-based Broadview Savings & Loan Company for $24 million. This deal helped the company expand its reach in the region.

National City Corp.'s expansion continued with the acquisition of the Youngstown-based Ohio Bancorp in April 1993. The deal was worth $200 million in stock and cash.

The acquisition of the Cincinnati-based Provident Financial Group in February 2004 was a major coup for National City Corp. The deal was worth $2.1 billion in stock.

In January 1988, National City Corp. acquired First Kentucky National Corporation for $660 million in stock, giving them a strong presence in Kentucky and a token presence in southern Indiana.

This acquisition marked a significant milestone in National City Corp.'s expansion plans.

The acquired company was renamed National City Bank Kentucky in February 1993, solidifying National City Corp.'s foothold in the region.

A few years later, in January 1995, National City Corp. acquired United Bancorp of Kentucky Inc. for $63 million in stock, further expanding their reach in Kentucky.

National City Corp. expanded its presence in Indiana through strategic acquisitions.

In 1991, the company acquired Merchants National Corporation for $604 million in stock. This marked a significant milestone in its growth.

Between 1992 and 1998, National City Corp. made two more acquisitions in Indiana, expanding its reach further.

The acquisition of Central Indiana Bancorp in 1994 added to its portfolio, while the Fort Wayne National Corporation acquisition in 1998 was a major coup.

The total value of the two acquisitions was $848 million in stock.

In December 1997, National City Corp. made a significant move by announcing the acquisition of First of America Bank Corporation, a Kalamazoo-based bank with offices in Michigan, Illinois, and Indiana.

The acquisition price was a staggering $7.1 billion in stock.

National City Corp. made significant expansions in Florida, starting in 2006. They acquired Harbor Florida Bancshares for $1.1 billion in stock, a Fort Pierce-based company. The acquisition was completed in December 2006.

In the same year, National City Corp. acquired Harbor Fidelity Bankshares, a West Palm Beach-based company, for $1 billion in stock. The acquisition was completed in January 2007.

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National City Corporation had a busy period of mergers and acquisitions from 2004 to 2008.

The bank's aggressive expansion strategy involved acquiring several smaller banks and financial institutions. One notable acquisition was the $2.1 billion purchase of Cincinnati-based Provident Financial Group in 2004. This deal gave National City a significant presence in the Midwest and added $7.4 billion in assets and 94 branches in Florida through the acquisition of Harbor Florida Bancshares Inc.

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In 2007, National City acquired MAF Bancorp Inc., the holding company for MidAmerica Bank, which had a 2.18% market share in the Chicago metropolitan area. After the merger, the combined National City and MidAmerica Banks were expected to rank 4th in the Chicago market with a market share of 3.96% and deposits of more than $10 billion.

Here are some key acquisitions made by National City Corporation:

National City Corporation expanded into the Kentucky market in 1988 by acquiring First Kentucky National Corporation of Louisville, which included member banks dating back to 1863.

This marked the beginning of National City's growth into an interstate bank. The acquisition added several banks to the company's portfolio, including the largest bank in Lexington, Commerce National.

National City continued to expand its reach through strategic acquisitions. In 1990, the company acquired Gem Savings Association, a $1.6 billion asset savings and loan company with 25 branches in Dayton and Cincinnati.

The following year, National City announced its agreement to acquire Merchants National Corporation, a holding company with 16 member banks in Indiana.

Here are some of the banks acquired by National City through its merger with Merchants National:

National City's growth continued with the acquisition of Ohio Bancorp in 1993 and Central Indiana Bancorp and United Bancorp of Lexington in 1995.

National City's final years were marked by significant mergers and acquisitions. The company merged with First of America in 1997, creating the 13th-largest banking organization in the U.S. at the time.

The combined company had assets of $74.4 billion, deposits of $48.4 billion, and stockholders' equity of $6.1 billion. National City continued to expand, purchasing certain assets of First National Mortgage Corporation and Eastern Mortgage Services, Inc, and American Mortgage Source, Inc.

In 1998, National City acquired Fort Wayne National Corporation with assets of $3.3 billion. The company's expansion continued in 1999 with the closure of its acquisition of First Franklin Financial Companies.

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National City's acquisition spree continued into the 2000s. The company completed a $2.1 billion purchase of Cincinnati-based Provident Financial Group in 2004. This acquisition brought in $7.4 billion of assets and 94 branches in Florida.

Here's a breakdown of National City's major acquisitions:

National City's acquisitions brought in significant assets and expanded its reach, but the company's fortunes would soon take a turn for the worse.

In 2008, PNC Bank acquired National City, and the deal was approved by shareholders of both banks on December 23, 2008. The merged entity would have its headquarters in Pittsburgh, Pennsylvania.

PNC completed the acquisition of National City on December 31, 2008, but was ordered by the United States Department of Justice to sell off 61 National City branches in Western Pennsylvania for antitrust reasons.

Here's a list of key dates related to the acquisition:

In the late 1990s, National City began a strategy to increase yields on its assets under former CEO David Daberko.

This strategy led to the company purchasing First Franklin Financial Corp., a large subprime mortgage lender, in 1999.

National City retained many of the subprime loans to enhance its net interest spreads, a decision that would later prove costly.

The company's aggressive origination of home equity loans and its failure to sell the loans contributed to its rapid growth in residential mortgage loans.

By 2003, National City was the sixth-largest mortgage lender in the country, a position it held for several years.

However, the company's management failed to recognize the extent of problems in the subprime market, and it did not take sufficient action to reduce its real estate mortgage portfolio.

In 2007, National City made the strategic mistake of buying back $3 billion of its stock, reducing its level of capital.

The company also expanded into the Florida market in late 2006, just before the real estate market there went into a severe decline.

As the subprime mortgage market began to decline in mid-2007, loan losses mounted, and the company suffered a net loss of $19 million in the third quarter of that year.

By the second quarter of 2008, National City had a net loss of $1.8 billion, a stark contrast to its earlier success.

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National City Corporation was a major financial institution in the United States. It was founded in 1845 and was headquartered in Cleveland, Ohio.

The company provided a range of financial services, including consumer and commercial banking, investment services, and insurance. National City Corporation was a subsidiary of PNC Financial Services Group after it was acquired in 2008.

The regulatory environment for financial institutions has been a key factor in National City Corporation's history. In 2009, the company was required to pay a $215 million fine for violating the Bank Secrecy Act.

National City Corporation's financial performance was also impacted by the 2008 financial crisis. The company's stock price plummeted during this time, and it was eventually acquired by PNC Financial Services Group.

National City Corporation's financial performance was impacted by its large mortgage portfolio. In 2008, the company wrote down $1.3 billion in mortgage-related losses.

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National City Corporation's branch network grew significantly during the 1990s, with the company expanding its operations to over 2,000 branches across the United States.

This rapid growth was driven in part by the company's strategic acquisitions, including the purchase of Bank of New England in 1995.

National City's stock price fluctuated over the years, with a high of $74.19 per share in 1998 and a low of $1.41 per share in 2009.

The company's stock performance was heavily influenced by the financial crisis of 2008, which led to a significant decline in the value of its shares.

National City has 60 branches in the area, including Webster Groves, Kirkwood, and Des Peres.

These branches serve a significant portion of the community, offering a range of services to local customers.

The bank's extensive branch network in the area has allowed it to establish a strong presence in St. Louis, where it ranks as the seventh-largest bank.

With such a large number of branches, National City is well-positioned to meet the banking needs of its customers in the region.

The merger with PNC Financial Services Group is expected to expand the bank's reach even further, making it one of the largest banks in the country.

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National City Stock History is a fascinating topic, and I'm happy to share some key facts with you. The company's stock prices are available from June 2, 1980, through December 31, 2008.

If you're looking for more detailed information, you can also find the company's dividend history from January 1, 1980, through December 31, 2008. This is a great resource for investors who want to track the company's financial performance over the years.

One notable event in National City's history is the company's acquisition by PNC Financial Services Group. This acquisition was completed on April 4, 2008. If you're interested in learning more about the tax implications of this merger, you can view a sample tax worksheet, including merger consideration information, for Sterling purposes only.

If you're interested in the tax consequences of the merger, you can also view the "Material United States Federal Income Tax Consequences of the Merger" section (pages 56-58) of the Merger proxy statement/prospectus (Form S-4/A) dated February 11, 2008.

Here are the key dates for National City's stock history: