Southern National Bank
Encyclopedia
Southern National Bank was a bank
headquartered first in Lumberton, North Carolina
and then in Winston-Salem, North Carolina
. In a merger of equals, it joined with BB&T
in 1995.
In 1979, Carolina State Bank of Gastonia
, started in 1971, became part of Southern National.
In 1982, Southern National took over Winston-Salem-based Forsyth
Bank & Trust, led by Glenn Orr.
In 1985, Southern National had assets of $1.5 billion. With the purchase of a former Northwestern Bank branch in Hickory
, which had to be sold after the First Union-Northwestern merger, Southern National had 99 branches in 26 counties.
In 1986, Southern National Corporation entered South Carolina
with the $10 million purchase of Horry County
State Bank of Loris
. Later that year, Southern National announced the $5.6 million purchase of First Palmetto Bancshares Corp. of Columbia
and the $9.75 million purchase of Capital Bank and Trust Co. of Belton
. At the time, Southern National was North Carolina's seventh-largest banking company.
Also in 1986, Southern National sold its Southern National Mortgage Co. to NCNB for an estimated $7 million. Southern National had not intended to sell the business but NCNB made a good offer and the bank could use the money for its South Carolina purchases. NCNB had exited the mortgage
business in 1981 to concentrate on interstate banking, though NCNB bought Bank of North Carolina in 1982 and sold that bank's mortgages to Southern National.
In May 1989, Southern National announced its purchase of Allied Bankshares Inc. of Thomson, Georgia
. The $59 million deal fell apart but would have been the first acquisition of a Georgia
bank by a mid-sized N.C. bank. Another failed deal in 1990 would have given Southern National $1 billion in South Carolina assets and 53 offices in the state. NBSC had $540 million in assets, while Southern National Corp. had $3.4 billion and was N.C.'s fifth largest bank holding company. NBSC shareholders objected to the $53 million deal.
In 1990, with Hector MacLean's retirement, Orr took over the top spot at Southern National Corporation. As the bank grew, it became more difficult to recruit qualified executives to a town of 19,000 people. Several cities were considered, and Edward Pleasants of Winston-Salem, a member of the bank's local board, began a campaign to move Southern National to his city.
Also in 1990, Southern National bought two savings and loans with combined assets of $223 million--Western Carolina Savings and Loan Association in Valdese
and Mutual Federal Savings and Loan Association of Elkin
.
In 1991, Southern National took over two failed savings and loans, Preferred Savings Bank of High Point
and Southeastern Savings Bank of Charlotte
. Also that year, Southern National announced its largest acquisition yet--Workmen's Federal Savings Bank of Mount Airy
, with $260 million in assets.
In an unusual transaction in 1992, Southern National paid $3 million for $60 million in loans and $50 million in deposits of First Security Savings Bank of Pinehurst
. The Resolution Trust Corporation
, which had the duty of taking over failed savings and loans, had to obtain clearance for the sale from the Office of Thrift Supervision
, because while its former parent First Federal Savings Association of Raleigh
had failed in December 1990, First Security was healthy. Three of First Security's four branches closed and customers were sent to other Southern National branches. The deal made southern national the number three bank by deposits in Moore County
.
Early in 1993, Southern National completed its purchase of First Federal Savings Bank in Winston-Salem, putting Southern National behind only Wachovia
in Forsyth County deposits. Southern National had $4.5 billion in assets, $3.9 billion of those in North Carolina, and was the state's sixth largest banking company. The company's North Carolina banking operations began moving to Winston-Salem, though Orr and the corporate headquarters stayed in Lumberton. One reason for the move was the 20-story, 239000 square feet (22,203.8 m²) One Triad Park, which had 74000 square feet (6,874.8 m²) of space Southern National could move into immediately; the building would also be renamed for Southern National. One of the other contenders, Greensboro
, would not have a new building ready, and the bank would need a temporary home.
Also in 1993, Southern National announced the purchase of Goldsboro
-based East Coast Federal Savings Bank, with $256 million in assets, which Orr called "one of the best savings banks in the state." The deal would make Southern National number one in deposits in Fayetteville
, the state's fifth-largest banking market.
On August 1, 1994, BB&T
and Southern National announced a "merger of equals". The merged bank would be called BB&T, though at first, the holding company was Southern National Corp. With $19 billion in assets, BB&T would have the most North Carolina deposits and branches of any bank. Orr and new BB&T chairman John Allison said the merger would likely prevent out-of-state banks from taking over. Orr retired once the merger was complete.
On May 19, 1997, Southern National Corp. changed its name to BB&T Corp. and its stock symbol SN to BBK.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
headquartered first in Lumberton, North Carolina
Lumberton, North Carolina
Lumberton is a city in Robeson County, North Carolina, United States. The population was 20,795 at the 2000 census. It is the county seat of Robeson County. Lumberton, located in southern North Carolina's Inner Banks region, is located on the Lumber River...
and then in Winston-Salem, North Carolina
Winston-Salem, North Carolina
Winston-Salem is a city in the U.S. state of North Carolina, with a 2010 population of 229,617. Winston-Salem is the county seat and largest city of Forsyth County and the fourth-largest city in the state. Winston-Salem is the second largest municipality in the Piedmont Triad region and is home to...
. In a merger of equals, it joined with BB&T
BB&T
BB&T Corporation is an American bank with assets of $157 billion , offering full-service commercial and retail banking services along with other financial services like insurance, investments, retail brokerage, mortgage, corporate finance, consumer finance, payment services, international...
in 1995.
History
In 1897, former North Carolina governor Angus MacLean and Judge Thomas A. McNeill started the Bank of Lumberton with $15,000. In 1955, MacLean's son Hector became president, and in 1959, The National Bank of Lumberton changed its name to Southern National.In 1979, Carolina State Bank of Gastonia
Gastonia, North Carolina
Gastonia is the largest city and county seat of Gaston County, North Carolina, United States. It is also the third largest suburb of the Charlotte Area, behind Concord and Rock Hill. The population was 71,226 as of Gastonia is the largest city and county seat of Gaston County, North Carolina,...
, started in 1971, became part of Southern National.
In 1982, Southern National took over Winston-Salem-based Forsyth
Forsyth County, North Carolina
-Demographics:As of the census of 2000, there were 306,067 people, 123,851 households, and 81,741 families residing in the county. The population density was 747 people per square mile . There were 133,093 housing units at an average density of 325 per square mile...
Bank & Trust, led by Glenn Orr.
In 1985, Southern National had assets of $1.5 billion. With the purchase of a former Northwestern Bank branch in Hickory
Hickory, North Carolina
Hickory is a city in Catawba County, North Carolina. Hickory has the 162nd largest urban area in the United States. As of the 2000 census, the Metropolitan Statistical Area had a population of 341,851, making it the 4th largest metropolitan area in North Carolina. The city's population was 37,222...
, which had to be sold after the First Union-Northwestern merger, Southern National had 99 branches in 26 counties.
In 1986, Southern National Corporation entered South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
with the $10 million purchase of Horry County
Horry County, South Carolina
Horry County is a county located in the U.S. state of South Carolina. This name honored Revolutionary War Hero, Peter Horry. Brigadier General Horry was born in South Carolina sometime around 1743 and started his distinguished military career in 1775 as one of 20 captains the Provincial Congress...
State Bank of Loris
Loris, South Carolina
Loris is a city in Horry County, South Carolina, United States. The population was 2,079 at the 2000 census.-Geography:Loris is located at ....
. Later that year, Southern National announced the $5.6 million purchase of First Palmetto Bancshares Corp. of Columbia
Columbia, South Carolina
Columbia is the state capital and largest city in the U.S. state of South Carolina. The population was 129,272 according to the 2010 census. Columbia is the county seat of Richland County, but a portion of the city extends into neighboring Lexington County. The city is the center of a metropolitan...
and the $9.75 million purchase of Capital Bank and Trust Co. of Belton
Belton, South Carolina
Belton is a city in eastern Anderson County, South Carolina, United States. The population was 4,461 at the 2000 census.-Geography:Belton is located at ....
. At the time, Southern National was North Carolina's seventh-largest banking company.
Also in 1986, Southern National sold its Southern National Mortgage Co. to NCNB for an estimated $7 million. Southern National had not intended to sell the business but NCNB made a good offer and the bank could use the money for its South Carolina purchases. NCNB had exited the mortgage
Mortgage
A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money. A mortgage in itself is not a debt, it is the lender's security for a debt...
business in 1981 to concentrate on interstate banking, though NCNB bought Bank of North Carolina in 1982 and sold that bank's mortgages to Southern National.
In May 1989, Southern National announced its purchase of Allied Bankshares Inc. of Thomson, Georgia
Thomson, Georgia
Thomson, incorporated February 15, 1854, is a city in McDuffie County, Georgia, United States. The population was 6,828 at the 2000 census. The city is the county seat of McDuffie County. Thomson's nickname is "The Camellia City of the South", in honor of the thousands of camellia plants...
. The $59 million deal fell apart but would have been the first acquisition of a Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
bank by a mid-sized N.C. bank. Another failed deal in 1990 would have given Southern National $1 billion in South Carolina assets and 53 offices in the state. NBSC had $540 million in assets, while Southern National Corp. had $3.4 billion and was N.C.'s fifth largest bank holding company. NBSC shareholders objected to the $53 million deal.
In 1990, with Hector MacLean's retirement, Orr took over the top spot at Southern National Corporation. As the bank grew, it became more difficult to recruit qualified executives to a town of 19,000 people. Several cities were considered, and Edward Pleasants of Winston-Salem, a member of the bank's local board, began a campaign to move Southern National to his city.
Also in 1990, Southern National bought two savings and loans with combined assets of $223 million--Western Carolina Savings and Loan Association in Valdese
Valdese, North Carolina
Valdese is a town in Burke County, North Carolina, United States. The population was 4,485 at the 2000 census. It is part of the Hickory–Lenoir–Morganton Metropolitan Statistical Area.-Geography:Valdese is located at ....
and Mutual Federal Savings and Loan Association of Elkin
Elkin, North Carolina
Elkin is a town in Surry and Wilkes counties in the U.S. state of North Carolina, along the Yadkin River. Elkin shares its name with the surrounding township of Elkin Township...
.
In 1991, Southern National took over two failed savings and loans, Preferred Savings Bank of High Point
High Point, North Carolina
High Point is a city located in the Piedmont Triad region of North Carolina. As of 2010 the city had a total population of 104,371, according to the US Census Bureau. High Point is currently the eighth-largest municipality in North Carolina....
and Southeastern Savings Bank of Charlotte
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
. Also that year, Southern National announced its largest acquisition yet--Workmen's Federal Savings Bank of Mount Airy
Mount Airy, North Carolina
Mount Airy is a city in Surry County, North Carolina, United States. As of the 2010 census, the city population was 10,388.-History:Mount Airy was settled in the 1750s as a stagecoach stop on the road between Winston-Salem and Galax, Virginia. It was named for a nearby plantation...
, with $260 million in assets.
In an unusual transaction in 1992, Southern National paid $3 million for $60 million in loans and $50 million in deposits of First Security Savings Bank of Pinehurst
Pinehurst, North Carolina
Pinehurst is a village in Moore County, North Carolina, United States. The population was 9,706 at the 2000 census. It is the location of the Pinehurst Resort, venue of the 1936 PGA Championship, the 1951 Ryder Cup. The host site for the 1999, 2005,& 2014 U.S. Open Golf Championships, the 2008 U.S....
. The Resolution Trust Corporation
Resolution Trust Corporation
The Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
, which had the duty of taking over failed savings and loans, had to obtain clearance for the sale from the Office of Thrift Supervision
Office of Thrift Supervision
The Office of Thrift Supervision was a United States federal agency under the Department of the Treasury that charters, supervises, and regulates all federally- and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of another federal agency...
, because while its former parent First Federal Savings Association of Raleigh
Raleigh, North Carolina
Raleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...
had failed in December 1990, First Security was healthy. Three of First Security's four branches closed and customers were sent to other Southern National branches. The deal made southern national the number three bank by deposits in Moore County
Moore County, North Carolina
Moore County is a county located in the U.S. state of North Carolina. As of 2000, the population was 74,769. Its county seat is Carthage.- History :The county was formed in 1784 from Cumberland County...
.
Early in 1993, Southern National completed its purchase of First Federal Savings Bank in Winston-Salem, putting Southern National behind only Wachovia
Wachovia
Wachovia was a diversified financial services company based in Charlotte, North Carolina. Before its acquisition by Wells Fargo in 2008, Wachovia was the fourth-largest bank holding company in the United States based on total assets...
in Forsyth County deposits. Southern National had $4.5 billion in assets, $3.9 billion of those in North Carolina, and was the state's sixth largest banking company. The company's North Carolina banking operations began moving to Winston-Salem, though Orr and the corporate headquarters stayed in Lumberton. One reason for the move was the 20-story, 239000 square feet (22,203.8 m²) One Triad Park, which had 74000 square feet (6,874.8 m²) of space Southern National could move into immediately; the building would also be renamed for Southern National. One of the other contenders, Greensboro
Greensboro, North Carolina
Greensboro is a city in the U.S. state of North Carolina. It is the third-largest city by population in North Carolina and the largest city in Guilford County and the surrounding Piedmont Triad metropolitan region. According to the 2010 U.S...
, would not have a new building ready, and the bank would need a temporary home.
Also in 1993, Southern National announced the purchase of Goldsboro
Goldsboro, North Carolina
Goldsboro is a city in Wayne County, North Carolina, United States. The population was 37,597 at the 2008 census estimate. It is the principal city of and is included in the Goldsboro, North Carolina Metropolitan Statistical Area. The nearby town of Waynesboro was founded in 1787 and Goldsboro was...
-based East Coast Federal Savings Bank, with $256 million in assets, which Orr called "one of the best savings banks in the state." The deal would make Southern National number one in deposits in Fayetteville
Fayetteville, North Carolina
Fayetteville is a city located in Cumberland County, North Carolina, United States. It is the county seat of Cumberland County, and is best known as the home of Fort Bragg, a U.S. Army post located northwest of the city....
, the state's fifth-largest banking market.
On August 1, 1994, BB&T
BB&T
BB&T Corporation is an American bank with assets of $157 billion , offering full-service commercial and retail banking services along with other financial services like insurance, investments, retail brokerage, mortgage, corporate finance, consumer finance, payment services, international...
and Southern National announced a "merger of equals". The merged bank would be called BB&T, though at first, the holding company was Southern National Corp. With $19 billion in assets, BB&T would have the most North Carolina deposits and branches of any bank. Orr and new BB&T chairman John Allison said the merger would likely prevent out-of-state banks from taking over. Orr retired once the merger was complete.
On May 19, 1997, Southern National Corp. changed its name to BB&T Corp. and its stock symbol SN to BBK.