Later in the decade, the bank offered its automated services to other banks and corporate clients. By the early s, Midwest Payment Services maintained automated teller machines and electronic cash registers for more than 1, clients. This lucrative business niche contributed one-third of the bank's annual income in the early s.
The creation of a bank holding company, Fifth Third Bancorp, enabled the institution to sidestep some of the most rigorous state banking regulations. This new corporate entity was not technically a bank and thus was exempt from laws that prohibited cross-county branching. By Fifth Third included 37 banking offices. The further liberalization of Ohio banking laws in the early s expanded both the types of products banks were permitted to offer and the geographic reach they were allowed to attain.
Strictures against growth outside the home bank's county were first to fall. Barriers to interstate branching continued to deteriorate in the early s. In September , federal and state banking regulations changed dramatically, freeing Ohio's banks to enter into agreements with banking organizations outside the state. Fifth Third became Ohio's first holding company to take advantage of the new legislation when it acquired American National Bank in Newport, Kentucky, just across the Ohio River, later that year.
Fifth Third's roster of branches increased by percent over the course of the s, and it expanded its reach from a single Ohio county to an interstate bank. Much of this vigorous growth was inspired by a new corporate leader, Clement L.
Buenger, who took the helm of Fifth Third in Buenger, who was called 'one of the best acts in the business' in a Fortune article, brought his background in life insurance sales to the bank. The new president transformed the bank's corporate culture through innovative incentive programs and personal example.
Whereas some Fifth Third offices were only open from a. The president who later became CEO and chairman even made cold calls on prospective clients. One incentive program, the 'Shoe Leather Award,' evolved from his passion for earning new business. A new pair of designer shoes was awarded to each month's best cold caller.
Fifth Third's focus on consumer banking and safe lending helped the bank avoid the real estate loans, Third World debt, and leveraged buyout problems that troubled many financial institutions during the s.
The 'banking bust' that followed led Fortune to call the early s 'the hardest times for bankers since the Great Depression' in November George Schaefer, Jr. Schaefer was trained in engineering, but when a hoped for job designing a nuclear power plant fell through in , he entered the bank's management trainee program.
Some industry observers predicted that the new leader would be stymied, both by the shadow of his predecessor and by the difficult banking environment. But while literally hundreds of banks failed each year in the late s and early s, Fifth Third continued its outstanding performance and was even able to benefit from the misfortune of others by inexpensively acquiring dozens of new outlets.
This allowed the bank to slowly expand its sphere of influence, yet maintain shareholder value. Star had not grown as fast as Fifth Third, but its recent record of continued growth made it an enticing acquisition target. But when CEO Schaefer prematurely publicized the heretofore private proposition, Star's longtime president, Oliver Waddell, balked, and the target's board unanimously rejected the offer. Shunned by Star, Schaefer returned to Fifth Third's previous course of growth through relatively small acquisitions.
According to the company's annual report, these two acquisitions contributed to the largest one-year increase in assets percent--in the institution's history. The purchases also made Fifth Third the preeminent operator of supermarket bank locations in the United States, with 81 full-service locations. Fifth Third moved aggressively through the second half of the decade, building upon its 20 consecutive years of increased earnings.
To remain competitive and to assure continued growth and strong earnings, the company stepped up its acquisition efforts and began to pursue new businesses, including mortgage brokering and investment services, and new territories.
In mid, for instance, Fifth Third acquired Bank of Naples, Florida, and increased its assets in the Florida region, which Fifth Third first entered in Skip to main navigation Skip to main content Press enter to activate the dialog and use the tab key to navigate through the options. Nominate Your Workplace. Purpose To listen to customers and inspire them with smart financial solutions that continually improve their lives and the well-being of our communities.
Vision To be the One Bank people most value and trust. Additional Culture Details Everyone matters. Everyone counts. Out west, Zions Bank was founded by a Vermont visionary pioneer named Brigham Young, a Moses-like figure who led a group of Mormons across the desert to settle in what is now Salt Lake City.
Yes, I know Brigham Young had 55 wives. Yes, with that many wives, what else was he going to found, a deli counter? Yeah, you too. Get a haircut. Banks have rich and sometimes colorful histories.
Case in point, Fifth Third Bank. Sanjaya has Carrie Underwood and Adam Lambert over for pie, Sanjaya cuts the pie in thirds — end of pie, right? You want a fourth or fifth third, here are the keys to the Ford Focus, the pie store is that direction. And a third of what? My trust? My portfolio? My patience? According to company lore, the name Fifth Third was chosen over Third Fifth out of deference to the growing temperance movement at the time. No one wants to see a banker on their third fifth, believe me.
Fifth Third has since embraced its greater-than-zero status with special employee recognition and customer promotions on May 3 and its Zen-like URL: www. If you have a comment or suggestion about this column, write to Bank Shots. How We Make Money. Jay MacDonald. Written by. Share this page.
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