NationsBank Expands Cleveland Office, Taps as Regional Headquarters

Strategic Insights -

NationsBank Corp., a leading banking giant in the United States, has strengthened its presence in the Northeast Ohio market by expanding its Cleveland office and designating it as the headquarters of its Midwest region. The subsidiary, NationsBank Business Credit, has quietly built a full-service financial services company capable of offering various financing options to its business clients, including large transactions, asset-based loans, and mezzanine financing. This growth has enabled the company to complete 16 local transactions worth $700 million since 1994, with a projected additional $500 million by the end of 1998.

Key Takeaways:

  • NationsBank Business Credit has designated Cleveland as the headquarters of its Midwest region, expanding its presence in the Northeast Ohio market.
  • The subsidiary has built a full-service financial services company capable of offering various financing options, including large transactions, asset-based loans, and mezzanine financing.
  • Since 1994, NationsBank Business Credit has completed 16 local transactions worth $700 million.
  • The company aims to achieve an additional $500 million in transactions by the end of 1998.
  • NationsBank has hired two key executives, James M. Doyle and Robert T. McGuire, to facilitate growth in the 12-state region.
  • The region includes 12 states, including Ohio, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Pennsylvania, Tennessee, West Virginia, and Wisconsin.
  • Michael E. Gibbons, an investment banker, believes NationsBank will be a more aggressive competitor in the market.
  • National City Commercial Finance, a competitor, increased its portfolio by 104% in 1998 to $250 million, with projected growth to $400 million this year.

Statistics:

  • NationsBank Business Credit has completed 16 local transactions worth $700 million since 1994.
  • The company aims to increase transactions by an additional $500 million by the end of 1998.
  • National City Commercial Finance increased its portfolio by 104% in 1998 to $250 million.
  • The company's portfolio is expected to grow to $400 million this year, representing a 60% increase.
  • NationsBank Business Credit has a 10-person Midwest operation across offices in Cleveland, Chicago, Pittsburgh, and St. Louis.

Sources:

  • NationsBank Corp., press release
  • Joseph J. Virzi, Midwest regional manager for NationsBank subsidiary (quoted in the article)
  • Michael E. Gibbons, investment banker at Brown, Gibbons, Lang & Co. (quoted in the article)
  • Tom Poe, president of National City Commercial Finance (quoted in the article)