 | |
 Edward Ball Building, formerly the Florida National Bank Building | |
| Company type | Banking |
|---|---|
| Predecessor | Mercantile Exchange Bank |
| Founded | 1905 |
| Founder | Samuel Hubbard |
| Defunct | 1990 |
| Fate | Acquired byFirst Union |
| Successor | Wells Fargo (throughWachovia andFirst Union) |
| Headquarters | |
Florida National Bank (FNB), founded in 1905, was the second largestcommercial bank inFlorida. Florida National Group was acquired in 1990 byFirst Union Corporation, which was renamedWachovia in 2001; Wachovia was subsequently acquired byWells Fargo in 2008.
Samuel Hubbard's Mercantile Exchange Bank eventually became Florida National Bank[1] after Jacksonville'sGreat Fire of 1901. MillionaireAlfred I. du Pont acquired a significant interest in the FNB shortly after moving to Jacksonville in the mid-1920s. Still, he was unable to gain control until theGreat Depression struck in 1929.[2] The FNB stayed solvent throughout the 1930s because du Pont put $15 million of his own money into the institution to coverBank runs.[3] During the early 1930s, six other Florida National Banks were opened throughout Florida, including Lakeland and Bartow; Alfred's wife,Jessie Ball du Pont was named a director of the bank. When Alfred du Pont died in 1935, the du Pont Trust, managed byEd Ball, Jessie du Pont's brother, continued to control the bank. Growth continued with the acquisition of many more Florida banks over the next two decades and became known as theFlorida National Group,[4] which was one of the strongest banks in the state. In size, the branches eventually numbered 185, second only in Florida toBarnett Bank.[5]
Ball built the Florida National Bank building at 214 North Hogan Street in Jacksonville in 1961.[6] The structure was constructed using materials that would appreciate, such as marble floors and granite exteriors, but excluded items that Ball considered frills.[citation needed] There were no executive washrooms and no hot water faucets in the entire eleven story edifice.[citation needed] The corporate offices of the group were housed in the upper floors and the bank's principal location was on the ground floor. Ed Ball also kept his office there for managing the du Pont Trust. After Ball's death, the structure was renamed theEdward Ball Building.[6]
Congress forced the du Pont Trust to divest itself of banking interests when it withdrew the trust's 15-year exemption from theBank Holding Company Act of 1956.[7] The trust sold 34.7% ownership in Florida National Banks toCharter Company in 1971 for $42M, leaving the du Pont Trust with 24.9%, below the legal definition of a bank holding company. The CEO of Charter wasRaymond Mason, a protégé of Ed Ball. Additionally, Ed Ball personally owned 6.4% of FNB and was executor of his sister's estate, which owned 4.5% of FNB.[8]
On July 9, 1973, the Federal Reserve Board issued a preliminary determination that the du Pont Trust had retained enough stock that would allow the trust to continue to exert some control over the bank.[9] Ball was forced to sell the trust's remaining shares and resign as chairman of FNB. However, the du Pont Trust owned a significant block of Charter stock, and the close personal relationship between Mason and Ball still allowed some indirect control.
Miami-based Southeast Banking Corporation (SBC), Florida's largest bank holding company, targeted FNB with a takeover bid in 1980, which the FNB board rejected. That same year, a group of foreign investors from Chile, Venezuela, Canada, and South Florida sought 40% ownership and control of FNB. FNB filed suit in circuit court and the group was enjoined from acquiring more than 25% of the bank holding company's outstanding shares.[10] However, Florida National revealed in 1981 that it was willing to permit acquisition byChemical Banking Corporation ofNew York City after laws preventing interstate banking were lifted.[11] At the same time, C.A. Cavendes Sociedad Financiera, a Venezuelan investment company, announced that it had acquired 24.99 percent of the common stock of Florida National.
In February 1982, SBC sued to obtain an injunction against the merger in Federal court, citing contrary banking laws in both Federal and Florida codes.[12] Florida National Bank countered with an antitrust suit against SBC. FNB contended that if SBC were allowed to complete the takeover, commercial banking competition would be unlawfully reduced.[13]
In early 1983, Southeast Banking Corporation dropped its takeover attempt and agreed to exchange their 1.73 million FNB shares for 24 FNB branch offices, $5.7M in cash, a downtown Miami real estate parcel and other assets.[14] This was when Charter was going through a bankruptcy. The Federal Reserve Board approved a revised merger plan between FNB and Chemical Bank in 1984. However, at the time, interstate banking acquisitions were prohibited by Federal law and required state legislative approval.[15] With the 1990 deadline running out for its option to buy FNB and no sign of state legislative approval, Chemical Bank sold their 4.9% interest toFirst Union Corporation ofCharlotte, North Carolina for $115 million.[5] On March 7, 1989, it was revealed First Union would acquire the remainder of FNB.[5] The transaction, valued at $849 million,[5] was consummated the following year.
Wachovia sold the Florida National Bank building at 214 North Hogan Street toFirst States Investors in September, 2004 for $23,234,071.[16]
TheSt. James Building became Jacksonville's City Hall in 1997, but it was too small to accommodate all departments. Needing more room,theCity of Jacksonville purchased the building fromFirst States Investors in February, 2006 for $23 million.[17] Less than two blocks from city hall, it was designated the City Hall Annex. The Building & Planning department relocated there.After a $1.3 million, 2012 renovation, additional city departments moved into the upper floors. Ground floor building tenants include aVyStar Credit Union,Quiznos and a coffee shop.[6]
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