Standard Federal Bank
 | |
| Industry | Financial Services |
|---|---|
| Fate | Absorbed by Bank of America |
| Successor | Bank of America N.A. |
| Founded | 1893 |
| Defunct | 17 October 2008 |
| Headquarters | Troy, Michigan, United States |
| Products |
Middle-Market Commercial Lending, Middle-Market Commercial Real Estate Lending, Domestic and International Cash Management Commercial Banking, Wealth Management, Retail Banking, Trust and Treasury |
| Parent |
Standard Federal Bancorporation ABN AMRO |
Standard Federal Bank was a Troy, Michigan-based bank serving Michigan and Northern Indiana in the United States which was acquired by Bank of America on 5 May 2008.[1]
In 2005, Standard Federal was the largest bank in Michigan based on number of retail branches (265), ATMs (more than 1,000) and deposits (US 23.3B, 15.06% market share); it ranked second in assets.[2][3]
The bank was renamed LaSalle Bank Midwest after it was acquired by ABN AMRO in 2005. The bank and its parent LaSalle Bank Corporation were sold to Bank of America by ABN AMRO on 1 October 2007. LaSalle was dissolved into Bank of America on 17 October 2008.
History
Standard Federal began as Standard Savings & Loan Association; established on April 25, 1893, taking over the charter of the Workman's Savings and Loan Association. Offices opened in the basement of the old McGraw Building at the corner of Griswold and Lafayette in downtown Detroit. Standard moved to a larger building at the corner of Griswold and Larned Streets in 1914. Land was purchased in 1927 and Standard then constructed its own headquarters at the north-west corner of Griswold and Jefferson in 1927. This lot was known as "the Cornerstone of Detroit", as it was the site of the first building ever raised in Detroit: Ste. Anne's Church, built in 1701. In that year assets surpassed $10 million.
"Safety For Savings Since 1893"... an old Standard slogan that was never tested so severely as during the Crash of 1929 and subsequent Great Depression. This helped preclude a serious "run" on Standard's offices. Standard never closed its doors, surviving with strength through 1929 and through the terrible bank closings of 1933, when many banks that closed never opened again. The first branch office was opened in 1948 on Grand River near Southfield Road in Northwest Detroit.
Standard's name changes over the years reflected growth in its scope and capabilities. After 57 years as Standard Savings & Loan Association, the thrift applied for and received a federal charter in 1950. This expanded its lending powers and Standard became known as Standard Federal Savings & Loan Association. The first branch office outside Detroit city limits was opened in 1957 in suburban Royal Oak on North Woodward near 12 Mile Road. Assets meanwhile amounted to $100 million in 1957.
Mergers and acquisitions
In 1970, Birmingham Federal Savings (Michigan) merged with Standard Federal. Main offices were moved to Birmingham on Woodward Avenue near 16 Mile Road. Total assets in 1973 reached $1 billion. Also in 1973, Main offices were moved to a larger building in Troy at 2401 Big Beaver Road.
Wayne Federal Savings (Michigan) was acquired in 1975 and in 1980 First Federal Savings of Niles (Michigan) merged with Standard Federal. In 1981, Landmark Savings and Loan (Saginaw/Bay City, Michigan) and First Savings Association of Dowagiac (Michigan) were taken over.
In the largest merger in Standard Federal's history: American Federal Savings of Fort Wayne, First Federal Savings of Fort Wayne, Fort Wayne Federal Savings, and South Bend Federal Savings and Loan Association (all of Indiana) were taken over in November 1983. Assets reached $5 billion in 1984.
On January 1, 1985, the bank converted from a federally chartered mutual savings and loan association to a federally chartered mutual savings bank and changed its name from Standard Federal Savings and Loan Association to Standard Federal Bank. On 28 August 1986, the bank's Board of Directors adopted a Plan of Conversion providing for the bank's conversion from a mutual to a stock institution. As of 31 December 1986, Standard Federal had 83 offices in 16 counties in Michigan and Indiana; 78 of which were full-service branches. The conversion from a mutual company to a publicly owned stock company listed on the New York Stock Exchange took place on 28 January 1987. This was one of the largest stock conversions by dollar amount in the history of the thrift industry.
The acquisition of Tower Federal Savings Bank of South Bend (Indiana) was completed on June 18, 1988. During 1989, the bank acquired two savings institutions in Michigan: First Federal Savings and Loan Association of Kalamazoo (originally known as the Kalamazoo County Building Loan Association) and Peoples Savings Bank, F.S.B. in Monroe. On September 6, 1991, Standard Federal entered the Ohio market, gaining a significant presence in the north-west Ohio area through the acquisition of United Home Federal Savings and Loan Association of Toledo. First Federal Savings and Loan Association of Lenawee County, Adrian (Michigan) was acquired with effect of August 8, 1992.
On April 25, 1993, Standard Federal celebrated its centenary. The bank stood as the largest thrift institution in the Midwest and the 7th largest in the United States, with assets of approximately $10 billion. In December of the same year, Standard acquired Heritage Federal Savings Bank in Taylor (Michigan). This was the largest single acquisition in Standard Federal's history. Other acquisitions by Standard Federal include InterFirst Bankcorp (1993), Colonial Central Savings Bank (1994) and Fidelity Savings Bank (1996). Effective May 1, 1995, Standard Federal Bank became a wholly owned subsidiary of Standard Federal Bancorporation, Inc., a unitary thrift holding company.
Purchase by ABN AMRO
On 21 November 1996, ABN AMRO reached an agreement to purchase Standard Federal Bancorporation Inc for $1.9 billion; the acquisition was completed on May 1, 1997. In 1996, Standard Federal was the largest savings bank in the Midwest, and the fourth largest bank in the State of Michigan. At December 31, 1996, Standard Federal's total assets amounted to $15.7 billion, with total deposits of $11.0 billion, loans serviced for others of $10.5 billion and stockholders' equity of $956.8 million.
In 2001 Standard Federal Bank absorbed ABN AMRO's newly acquired Michigan National Bank. The merged bank adopted the acquired bank's national bank charter and the bank became Standard Federal Bank N.A., closing 59 overlapping branch offices and making Standard Federal Michigan's largest bank by the number of branch offices.
Rebranding to LaSalle Bank
On September 12, 2005, ABN AMRO and its American subsidiary LaSalle Bank Corporation officially changed the name of Standard Federal Bank N.A. to LaSalle Bank Midwest N.A. in what they called a "brand consolidation" instead of a merger with Chicago-based LaSalle Bank N.A. to pool the two banks' marketing resources.
Sale to Bank of America
On April 23, 2007, ABN AMRO announced the sale of LaSalle Bank Corporation to Bank of America for $21 billion, and a net sale of $16 billion after the return of $5 billion in excess capital. The sale was legally challenged as ABN AMRO did not seek higher bids from other potential purchasers, but it was ultimately cleared by the Dutch Supreme Court. Bank of America officially took over the bank on 1 October 2007.
LaSalle Bank Midwest began doing business under the Bank of America brand on May 5, 2008. Bank of America executive Kieth Cockrell, who had begun his banking career in Michigan, was appointed president of Bank of America's Michigan operations whose legal name at the time was LaSalle Bank Midwest N.A. while doing business as Bank of America. The legal name changed on 17 October.
References
- ↑ "BOA to 'paint the town red' with LaSalle name change". April 14, 2008.
- ↑ "Bank of America Agrees to Acquire LaSalle Bank".
- ↑ "Deposit Marketshare". Monroe bank and trust.
