NationsBank Completes Largest Acquisition in Banking History, Creating Premarket Leader in Florida and Third-Largest in the U.S.

Strategic Insights -

NationsBank Corporation has completed the largest-ever acquisition in the banking industry with the closing of its purchase of Barnett Banks, Inc., creating a preeminent banking company in Florida and the third-largest in the United States. The combined entity now spans 16 states and the District of Columbia, with over 3,000 banking centers and 7,000 ATMs, offering a wide range of financial services to over 3.9 million households. The acquisition has significant implications for the banking landscape, with NationsBank emerging as a major player in the U.S. market.

Key Takeaways:

  • The acquisition creates the premier banking franchise in Florida, with a scope capable of meeting the needs of over 3.9 million households in one of the nation's fastest-growing states.
  • NationsBank becomes the third-largest banking company in the U.S., with assets expected to reach approximately $310 billion by the end of 1997.
  • The combined entity spans 16 states and the District of Columbia, with over 3,000 banking centers and 7,000 ATMs.
  • NationsBank shareholders will receive 1.1875 shares of nationsBank stock for each outstanding share of Barnett common stock.
  • The acquisition has added four current members of Barnett's board of directors to the NationsBank Corporation Board of Directors, including Charles E. Rice, who will become chairman of NationsBank Corporation following the retirement of current Chairman Andy Craig.
  • NationsBank customers can now withdraw cash, transfer funds, and make account inquiries at both banks' ATMs without being charged a fee, as well as withdraw cash from Publix Presto! ATMs without being charged a fee.

Statistics:

  • Total assets: approximately $310 billion by the end of 1997.
  • Year-end 1997 shareholder equity: $25 billion.
  • Market capitalization of any banking company: largest in the United States.
  • Number of banking centers: over 3,000.
  • Number of ATMs: 7,000.
  • Number of households served: over 3.9 million.
  • Number of states and the District of Columbia served: 16.

Sources:

  • NationsBank Corporation (NYSE: NB) press release, January 9, 1998
  • PR Newswire, January 9, 1998
  • CO: NationsBank Corporation; Barnett Banks, Inc.

ST: North Carolina, Florida

IN: FIN SU: TNM TL -- CHF002 -- 6151 01/09/98 10:50 EST

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