Tuesday, November 16, 1999
INDUSTRY NOTES: BANKING
Shareholders will vote on merger plans
BY JEFF McKINNEY
The Cincinnati Enquirer
Shareholders of Fidelity Financial of Ohio Inc. will vote Dec. 15 at the Preston Hotel in Sharonville on its proposed merger with Provident Financial Group Inc.
The Cincinnati-based parent of Fidelity Federal Savings Bank agreed in August to be bought by the parent of Provident Bank for about $191 million in stock. The deal would give Provident a thrift with assets of $808 million and 15 branches on Cincinnati's west and east sides.
The purchase of Fidelity comes after Provident said it would buy OHSL Financial Corp., parent of Oak Hills Savings Bank, for about $57 million in stock. That deal would give Provident six branches.
The purchases would allow Provident to increase its deposit market share and lower expenses by spreading the cost over a larger base. Both deals are expected to be completed by early next year.
Head of Bank One's Internet unit leaving
The head of WingspanBank.com, Bank One Corp.'s 5-month-old Internet banking unit, plans to resign Dec. 31 to pursue other opportunities.
The departure of James W. Stewart III, president and chief executive of the fledgling service, follows a management shake-up last month at Bank One and an acknowledgment last week of soft earnings at First USA, the credit card unit that controls WingspanBank.
Mr. Stewart said in a statement last week that he was considering “several Internet-based financial-service opportunities” after 11 years with First USA. In addition to his Wingspan duties, Mr. Stewart is executive vice president of Internet marketing for First USA.
Gary J. Marino, executive vice president of marketing at First USA, will assume responsibility for partnership marketing.
Michael J. Cleary, executive vice president of Internet marketing for WingspanBank.com, will take over its day-to-day management, the company said in a statement.
Bank One, based in Chicago, is the nation's fifth-largest bank holding company, with assets of more than $264 billion. It operates 33 branches in Greater Cincinnati.
Fifth Third finishes debt issue for Ohio
Fifth Third Securities, Fifth Third Bank's investment unit, has completed a $120 million debt issue for the Ohio treasury.
Fifth Third served as co-manager of the treasury's state general infrastructure improvement bonds. The 20-year issue is structured with bond maturities starting in 2000 and ending in 2019.
The debt issue also illustrates how Fifth Third is using its expanded bond-underwriting business with its acquisition last summer of Columbus-based Ohio Co. The business helps the banking company generate new sources of revenue.
Firstar stock named second-best in U.S.
Firstar, the successor to Cincinnati's Star Banc Corp., has been selected as the second-best stock in the latest edition of The 100 Best Stocks to Own in America, an annual publication.
Author Gene Walden reviewed more than 2,000 major U.S. companies for review in the book's sixth edition. He used five criteria to compile his list: share earnings growth; stock growth; dividend; consistency; and shareholder perks.
His No. 1 pick was Medtronic Inc., the world's largest manufacturer based in Minnesota. Two other banks with sizable Ohio operations also made the list. Cincinnati's Fifth Third Bancorp ranked seventh, while Chicago-based Bank One Corp. placed 97th.
Star Banc acquired Milwaukee-based Firstar last November in a stock swap valued at about $8 billion. Star adopted Firstar's name and moved its corporate headquarters to Milwaukee.
Kroll-O'Gara Co. agrees to buyout
Crystal ball cloudy on interest rates
Greenspan: Cooperation key in new marketplace
Pella to acquire Pease Industries
Cincinnati Bell begets BroadWing
Miniatures of Peace Bell are appealing
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