First Union

First Union was an American banking and financial-services brand whose corporate history began with Union National Bank, a small banking operation established in Charlotte, North Carolina, in 1908. Under the leadership of H. M. Victor and later generations of management, the institution expanded through mergers, acquisitions, and diversification into a large regional bank holding company. Its core activities included commercial banking, retail banking, mortgage lending, home-equity finance, credit cards, investment banking, securities brokerage, investment advisory services, leasing, insurance, asset-based lending, international banking, private equity, and other financial services. The institution initially developed through consolidation in North Carolina. In 1958, Union National Bank merged with First National Bank and Trust Company of Asheville and adopted the name First Union National Bank of North Carolina. The company broadened its financial-services base in 1964 by acquiring Cameron-Brown Company, a mortgage-banking and insurance business. First Union Corporation was incorporated in 1967, and a 1968 reorganization placed the banking and mortgage businesses within a holding-company structure that became the foundation for later expansion. First Union's most aggressive growth phase followed the mid-1980s expansion of interstate banking. Beginning in 1985, the company pursued a large acquisition program across the eastern United States. It acquired or merged with numerous banks and financial institutions, including Atlantic National Bank in Florida, South Carolina Federal Corporation, First Fidelity of New Jersey, and CoreStates Financial Corporation of Philadelphia. By the time of its combination with Wachovia in 2001, First Union had completed more than 90 banking-related acquisitions, with approximately 50 of those transactions occurring between 1985 and 1995. The 1998 acquisition of CoreStates was particularly important because it gave First Union a major presence in Philadelphia and the Northeast, as well as a connection to the historical legacy of the Bank of North America, founded in 1781. First Union also expanded its investment-banking capabilities through the acquisition of Bowles Hollowell Conner & Co. and entered the consumer-finance market through its purchase of The Money Store. The latter transaction became a significant setback: First Union paid approximately $2.1 billion for The Money Store in 1998, subsequently closed the business, and recorded substantial losses. First Union's growth produced a broad regional banking franchise, but the company also faced operational and reputational challenges. The integration of CoreStates was troubled by a rapid attempt to combine computer systems, producing problems with account access, payment processing, and employee training. These difficulties influenced the way First Union approached its later merger with Wachovia National Bank. Although First Union was the nominal surviving corporation, the combined company adopted the Wachovia name and stock ticker in an effort to preserve Wachovia's stronger consumer reputation. The Wachovia transaction was announced in April 2001 and completed on September 4, 2001, ending First Union as a separately named corporation and creating the newly renamed Wachovia Corporation. The deal was contested by SunTrust, which launched a rival hostile takeover effort, but Wachovia shareholders approved the First Union transaction in August 2001. First Union's systems were gradually converted to the Wachovia platform, with the conversion completed in 2003. The First Union brand subsequently disappeared from the company's banking identity, buildings, and sponsored venues, although some historical corporate records and stock-price continuity were carried forward under Wachovia. Wachovia later became part of Wells Fargo in 2008.

First Union's history began on June 2, 1908, when H. M. Victor established Union National Bank as a small banking desk in the lobby of a Charlotte, North Carolina, hotel. The bank grew through local consolidation and in 1958 merged with First National Bank and Trust Company of Asheville. The resulting institution became First Union National Bank of North Carolina. The company expanded beyond traditional deposit-taking and lending in 1964, when it acquired Cameron-Brown Company, a mortgage-banking and insurance firm. First Union Corporation was incorporated in 1967. A corporate reorganization in 1968 placed the banking operation and the mortgage business, renamed First Union Mortgage Corporation, under the holding-company structure. This arrangement enabled the group to develop multiple financial-services businesses while retaining a common corporate identity. A major turning point came in the mid-1980s. Following legal and regulatory developments supporting regional interstate banking, First Union adopted an aggressive acquisition strategy. Atlantic National Bank of Jacksonville, Florida, merged into First Union in 1985. The company continued to acquire institutions across the Southeast and later the Mid-Atlantic and Northeast. In 1992, First Union agreed to acquire South Carolina Federal Corporation, strengthening its position in South Carolina. In 1995, it acquired First Fidelity of Newark, New Jersey, giving the company a larger northeastern presence. From 1985 until the Wachovia transaction, First Union completed more than 90 banking-related acquisitions. First Union also built businesses outside conventional branch banking. Its activities included mortgage origination, home-equity lending, credit cards, investment banking, securities underwriting, private placements, loan syndication, investment advice, insurance, leasing, international services, brokerage, and private equity. The acquisition of Bowles Hollowell Conner & Co. in April 1998 expanded the company's investment-banking and corporate-finance capabilities, including merger and acquisition advisory work, leveraged finance, equity underwriting, risk management, and public finance. In April 1998, First Union completed the acquisition of CoreStates Financial Corporation, headquartered in Philadelphia. CoreStates brought a substantial northeastern banking franchise and a historical claim reaching back to the Bank of North America, chartered in 1781. First Union used that older date in describing its corporate heritage and continued operating the Bank of North America's historic branch at Sixth and Chestnut Streets in Philadelphia. However, the integration was difficult. First Union attempted to combine the two organizations' computer systems rapidly, and inadequate training and system incompatibility caused problems involving customer account access, payment application, and loan servicing. The episode became an important cautionary example for the company's subsequent merger planning. Later in 1998, First Union paid about $2.1 billion for The Money Store, a consumer lender specializing in home-equity loans. The acquisition did not meet expectations. First Union closed the unit approximately two years later and recorded losses of about $1.7 billion. First Union also sold its credit-card portfolio to MBNA in 2000, illustrating the company's effort to reshape parts of its consumer-finance operation while concentrating on broader banking and financial-services activities. On April 16, 2001, First Union announced that it would merge with Wachovia. The proposal surprised many analysts because Wachovia had been viewed as a possible target for other institutions, including SunTrust. The transaction was structured so that First Union would technically survive, but the combined company would use the Wachovia name and ticker symbol. This arrangement was intended to preserve Wachovia's more favorable consumer identity and reduce the reputational burden associated with First Union's earlier integration problems. The merger faced a rival bid from SunTrust, announced on May 14, 2001. SunTrust offered a higher cash component and argued that it could provide a smoother transition. The contest involved increased offers, shareholder communications, advertising, and court proceedings. Wachovia's board remained committed to the First Union transaction. On August 3, 2001, Wachovia shareholders approved the merger and rejected SunTrust's attempt to change the company's board. The merger was completed on September 4, 2001, and the new company became Wachovia Corporation. The combined institution took steps to avoid repeating the CoreStates systems problems by converting legacy Wachovia systems gradually into the First Union platform, which was itself rebranded under the Wachovia name. Regional conversion began in the Southeast and later moved into the Northeast; the overall process concluded on August 18, 2003. First Union buildings and sponsored venues were renamed Wachovia properties. The First Union corporate brand therefore ended as an active banking identity, although the successor company retained the First Union stock-price history. Wachovia was later acquired by Wells Fargo in 2008, completing the next major stage in the corporate lineage.

• 2003

  Systems conversion is completed

  [1]First Unionen.wikipedia.org

  The successor Wachovia completes the phased conversion of legacy Wachovia systems into the First Union platform, operating under the Wachovia identity.

• 2001

  Wachovia merger is announced

  [1]First Unionen.wikipedia.org

  First Union announces its agreement to combine with Wachovia National Bank, while agreeing that the successor will use the Wachovia name and ticker.

• 2001

  Wachovia shareholders approve the First Union transaction

  [1]First Unionen.wikipedia.org

  Shareholders approve the First Union merger despite SunTrust's competing hostile bid.

• 2001

  First Union becomes Wachovia Corporation

  [1]First Unionen.wikipedia.org

  The transaction closes on September 4, ending First Union as the principal corporate brand.

• 2000

  The Money Store is closed

  [1]First Unionen.wikipedia.org

  First Union closes The Money Store after the business underperforms and records substantial losses.

• 1998

  CoreStates Financial Corporation is acquired

  [1]First Unionen.wikipedia.org

  First Union completes the large-scale acquisition of CoreStates, gaining a major Philadelphia and northeastern franchise but encountering serious systems-integration problems.

• 1998

  Bowles Hollowell Conner & Co. is acquired

  [1]First Unionen.wikipedia.org

  The investment-banking acquisition adds merger advisory, leveraged finance, equity underwriting, private placement, syndication, and public-finance capabilities.

• 1998

  The Money Store is acquired

  [1]First Unionen.wikipedia.org

  First Union buys the home-equity lender The Money Store for approximately $2.1 billion.

• 1995

  First Fidelity is acquired

  [1]First Unionen.wikipedia.org

  The acquisition of Newark-based First Fidelity extends First Union's branch and banking presence into the Northeast.

• 1992

  South Carolina Federal Corporation acquisition announced

  [1]First Unionen.wikipedia.org

  The transaction makes First Union the third-largest bank in South Carolina by deposits and significantly increases its regional scale.

• 1985

  Interstate acquisition program begins

  [1]First Unionen.wikipedia.org

  First Union begins an aggressive regional expansion program after legal developments support interstate banking, starting with Atlantic National Bank in Florida.

• 1967

  First Union Corporation is incorporated

  [1]First Unionen.wikipedia.org

  The holding company that coordinates the banking group's expanding businesses is incorporated.

• 1964

  Cameron-Brown Company is acquired

  [1]First Unionen.wikipedia.org

  First Union expands into mortgage banking and insurance through the acquisition of Cameron-Brown Company.

• 1958

  Merger creates First Union National Bank of North Carolina

  [1]First Unionen.wikipedia.org

  Union National Bank merges with First National Bank and Trust Company of Asheville and adopts the First Union National Bank of North Carolina name.

• 1908

  Union National Bank is founded

  [1]First Unionen.wikipedia.org

  H. M. Victor establishes Union National Bank in Charlotte, North Carolina, beginning the corporate history that later leads to First Union.

A large regional American bank holding company positioned as a diversified provider of banking, lending, investment, insurance, and other financial services, with a strategy centered on rapid interstate expansion and acquisition-led scale.

• Retail and commercial banking · 1908

  First Union National Bank

  The core banking operation provided deposit accounts, branch banking, commercial credit, consumer banking, and related services across First Union's expanding eastern United States network. It was the principal customer-facing banking platform around which the wider holding company organized its other lending and financial-services businesses.

• Mortgage banking · 1968

  First Union Mortgage

  First Union Mortgage developed from Cameron-Brown Company, acquired in 1964 and renamed First Union Mortgage Corporation during the 1968 corporate reorganization. The business extended First Union into mortgage origination and related housing finance, complementing the group's commercial and retail banking activities.

• Investment banking and securities

  First Union Securities

  First Union Securities represented the group's investment-banking and securities activities. These capabilities included corporate finance, securities underwriting, brokerage, loan syndication, leveraged finance, private placements, and advisory work, strengthened by the acquisition of Bowles Hollowell Conner & Co. in 1998.

• Private equity

  First Union Capital Partners

  First Union Capital Partners was the group's private-equity arm. It formed part of First Union's strategy of offering financial services beyond deposits and conventional lending, alongside investment advisory, asset-based lending, leasing, insurance, and international services.

• Home-equity lending · 1998

  The Money Store

  The Money Store was a specialist home-equity lender acquired by First Union in 1998. It was recognized for its consumer advertising and direct-lending profile, but the business later produced significant losses and was closed approximately two years after the acquisition.

• 2001

  Merge with Wachovia National BankM&A

  Background

  First Union wanted to expand its scale and improve its consumer identity after a period of rapid growth and difficult integrations. Wachovia was considered to have a stronger reputation with consumers.

  Action taken

  First Union agreed to combine with Wachovia, with the nominal surviving company adopting Wachovia's name and stock ticker.

  Aftermath

  The merger closed on September 4, 2001, creating Wachovia Corporation. SunTrust's competing bid failed, and the First Union brand was gradually removed from branches, buildings, and sponsored venues.

  • SunTrust — SunTrust launched a rival hostile takeover bid, raised its offer, communicated directly with shareholders, and challenged the transaction through public and legal actions.

  Source

• 2001

  Phase the Wachovia systems conversionStrategy

  Background

  The CoreStates integration had demonstrated the risks of rapidly combining incompatible banking computer systems.

  Action taken

  After the Wachovia merger, the successor company converted legacy Wachovia systems into the First Union platform in regional stages rather than attempting an immediate full conversion.

  Aftermath

  The conversion began in the Southeast, proceeded to the Northeast, and was completed on August 18, 2003, under the Wachovia name.

  Source

• 1998

  Acquire CoreStates Financial CorporationM&A

  Background

  First Union sought greater scale and a stronger presence in Philadelphia and the Northeast as part of its acquisition-led expansion strategy.

  Action taken

  First Union completed the acquisition of CoreStates Financial Corporation and integrated the acquired banking franchise into the First Union group.

  Aftermath

  The transaction expanded First Union's geographic reach and historical banking identity, but the rapid integration of computer systems caused account-access, payment-processing, and training problems.

  Source

• 1998

  Purchase The Money StoreM&A

  Background

  First Union aimed to expand its consumer-finance and home-equity lending activities through the acquisition of a specialist lender.

  Action taken

  First Union bought The Money Store for approximately $2.1 billion.

  Aftermath

  The unit was closed about two years later, and First Union recorded approximately $1.7 billion in losses associated with the business.

  Acquisition price. $2.1 billion (1998)

  Source

1. 1First Unionen.wikipedia.org