Citizens & Southern National Bank

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"C&S" redirects here. For the grocery distributor, see C&S Wholesale Grocers.

Citizens and Southern National Bank (C&S) is a historic bank located in Charleston, South Carolina.

The Charleston location is the 2nd oldest bank building in the U.S. Constructed in 1798 as the Bank of South Carolina,[1] it later became the home for the Charleston Library Society (1835), then belonged to the Charleston Chamber of Commerce (1914), and finally became a bank again when C&S purchased the 2 story building in 1966. Located at 50 Broad Street, it is now a private office and bears little importance to the history of C&S of South Carolina.[2]

[edit] History

The bank began in Georgia with the merger of the Citizens Bank of Savannah and the Southern Bank of Georgia in 1928[3]. The newly merged banks were named the Citizens and Southern National Bank of Georgia. However, Bank of America states that C&S was founded at 22 Bull Street in Savannah, Georgia, in 1906.[4] The BofA page also states that C&S financed the inception of Delta Airlines in 1971 which is definitely not true so an accurate date is not currently available and the BofA dates might not be accurate since Delta Airlines flew long, long, long before 1971.

In South Carolina, parties associated with C&S of Georgia purchased all the stock of Charleston based Atlantic Savings & Atlantic National Bank. The Atlantic banks had originally opened in 1874 as the Germania Savings Bank. In May, 1928, the names of the 2 Atlantic banks were changed to Citizens and Southern National Bank of South Carolina, although the bank was operating only in Charleston with two locations on King Street[5] and was owned by C&S of Georgia.

[edit] C&S Splits in 1940, Growth in Branches & Technology, C&S Reunites

Quick growth ensued in both South Carolina and Georgia. In 1940, C&S of South Carolina became a separate corporate entity from C&S of Georgia, allowing South Carolina to have a large "local" bank with offices in Charleston, Columbia, Spartanburg and other major SC cities. In 1956, C&S of South Carolina merged with Growers Bank and Trust in Inman. In 1960, C&S of South Carolina installed computers which improved efficiency allowing accountholders with $100 minimum balance per month to have free checking, a first in South Carolina.[6] In 1985, the Citizens and Southern Georgia Corporation agreed to acquire Citizens and Southern National Bank of South Carolina for $400m or $55/share, reuniting the two banks which had been separated in 1940. At the time the two C&S banks reunited, C&S of SC had assets of $2.5 billion while C&S of Georgia's assets were $12.3 billion.[7]

C&S had several affiliated companies including the C&S Corporation, the C&S Realty Corporation, the C&S Computer Services Corporation, and the C&S Housing Corporation.

C&S of South Carolina used red coloring in its logos while C&S of Georgia used primarily green in its brand logos.

[edit] C&S Becomes a "Distressed" Bank Due to Mergers

From 1984-1986, the Southeastern Regional Banking Compact allowed Southern banks with primarily Southern deposits to acquire or be acquired by each other while keeping the feared New York, Chicago, and West Coast banks out[8] This led numerous Southern banks to begin buying regional competitors. Sovran, soon to be purchased by C&S, acquired Suburban Bank in 1986, then Commerce Union Bank in 1987.[9] In 1990, C&S (official name was now Citizens and Southern Corporation reflecting the merger of the 2 C&S banks in 1985) acquired Sovran Financial Corp (Norfolk, VA) and its newly purchased acquisitions and became C&S/Sovran. [10] With Sovran branches in Virginia and C&S branches in Florida, Georgia, and South Carolina, C&S/Sovran appeared to be an enormous regional bank resistant to takeover attempts by other banks.

[edit] Headquarters Buildings

C&S/Sovran was now a regional powerhouse and began construction on a new, much larger headquarters building in Atlanta that was not completed until after NCNB (North Carolina National Bank) had acquired C&S/Sovran. The new building, now owned by NCNB/NationsBank, would no longer be a headquarters for C&S/Sovran but was renamed NationsBank Plaza (until 1992) and then the Bank of America Plaza after 1992.

Before the planned C&S/Sovran headquarters tower was completed (which never bore the C&S name due to the NCNB/C&S/Sovran merger), C&S had it's headquarters at what is now Georgia State University's J. Mack Robinson College of Business. This building, no longer needed by NationsBank since it now owned the newly built C&S/Sovran tower in downtown Atlanta, was given as a gift to GSU.[11]

Previously, C&S had it's headquarters in the C&S Bank Tower (1964-1968) which was designed by Richard Aeck (1912-1996). A unique building for that time in Atlanta, it echoed Frank Lloyd Wright's design used in the Johnson Wax Research Tower (1944). [12] The Aeck C&S building was later razed in the late 80s to make way for the building of the planned new C&S/Sovran headquarters building which was ultimately named NationsBank Plaza and currently is named Bank of America Plaza.[13]

[edit] C&S/Sovran & NCNB Merger Almost Fails

In 1988, C&S (before the Sovran merger) initiated merger talks with First Federal Savings Bank in Brunswick Ga. However, First Federal rejected the deal claiming C&S's offer was insufficient and C&S ended the talks. Later, First Federal unsuccessfully sued C&S/Sovran to block the NCNB/C&S/Sovran merger.[14]

[edit] The End of C&S/Sovran

The hasty merger of C&S & Sovran was intended to create a strong, dominate regional bank. However, 2 problems soon emerged that made C&S/Sovran a takeover target. First was infighting between executives of the two newly combined banks. Secondly was former Sovran problem loans which weakened the newly merged banks. [15] NCNB (North Carolina National Bank) which had been busy expanding by taking over distressed banks like Texas' First Republic Bank, [16] quickly recognized that C&S/Sovran was also "distressed". Unfortunately for C&S/Sovran, the NCNB purchase of the troubled, largest bank in Texas, First Republic, doubled NCNB's assets[17] which helped it to acquire the weakened C&S/Sovran in 1991. NCNB then began the NationsBank brand bringing C&S, Sovran, and NCNB under a single brand which could used anywhere.[18]

As part of the merger, some C&S branches were sold to other banks. Monks Corner C&S was sold to First National Bank, C&S in Marion, Barnwell, Chester, St. George, Darlington, and Williston were sold to First Citizens Bank. NCNB of South Carolina also sold some branches to other South Carolina banks (NCNB's Hilton Head Branch went to First Union of NC).[19]

NationsBank continued to expand eventually buying BankAmerica Corp (and it's fairly recent acquisition of Security Pacific National Bank, a large California bank [20] NationsBank chose to use the Bank of America marque and became Bank of America Corp, replacing the old BofA Eagle logo with a new stylized logo based on the U.S. flag. Many former C&S branches continue to operate under the "new" Bank of America brand. [21]

[edit] Similar Name, Similar Location

Of separate interest is the C&S Railroad (Charleston & Savannah Railroad). Never a part of the C&S Banking system, it shared a common abbreviated name. Built around 1860, it later became part of the Atlantic Coast Line Railroad, then Seaboard Coast Line. All tracks and right of ways of the old C&S Railroad apparently were abandoned in the 1980s before SCL merged with the Chessie Railroad system to become CSX.[22]