Bank United Corporation, headquartered in

Houston, Texas Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...

, was a broad-based

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

provider and the largest

publicly traded A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

depository institution Colloquially, a depository institution is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumer ...

headquartered in

Texas Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...

before its

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...

with

Washington Mutual Washington Mutual, Inc. (often abbreviated to WaMu) was an American Bank holding company, savings bank holding company based in Seattle. It was the parent company of Washington Mutual Bank, which was the largest savings and loan association in ...

in 2001. Bank United Corp. conducted its business through its

wholly owned subsidiary A subsidiary, subsidiary company, or daughter company is a company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidiary company. Unl ...

, Bank United, a federally chartered

savings bank A savings bank is a financial institution that is not run on a profit-maximizing basis, and whose original or primary purpose is collecting deposits on savings accounts that are invested on a low-risk basis and receive interest. Savings banks ha ...

. The company operated a 155-branch community banking network in Texas, including 77 in the Dallas/Fort Worth Metroplex, 66 in the greater Houston area, five in

Midland Midland may refer to: Places Australia * Midland, Western Australia Canada * Midland, Albert County, New Brunswick * Midland, Kings County, New Brunswick * Midland, Newfoundland and Labrador * Midland, Ontario India * Midland Ward, Kohima, Nag ...

, four in

Austin Austin refers to: Common meanings * Austin, Texas, United States, a city * Austin (given name), a list of people and fictional characters * Austin (surname), a list of people and fictional characters * Austin Motor Company, a British car manufac ...

, and three in

San Antonio San Antonio ( ; Spanish for " Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the third-largest metropolitan area in Texas and the 24th-largest metropolitan area in the ...

; operated 19 SBA lending offices in 14 states; was a national middle market

commercial bank A commercial bank is a financial institution that accepts deposits from the public and gives loans for the purposes of consumption and investment to make a profit. It can also refer to a bank or a division of a larger bank that deals with whol ...

with 23 regional offices in 16 states; originated

mortgage loan A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

s through 11 wholesale offices in 10 states; operated a national

mortgage servicing A mortgage servicer is a company to which some borrowers pay their mortgage loan payments and which performs other services in connection with mortgages and mortgage-backed securities. The mortgage servicer may be the entity that originated the mo ...

business serving approximately 324,000 customers, and managed an

investment portfolio In finance, a portfolio is a collection of investments. Definition The term "portfolio" refers to any combination of financial assets such as stocks, bonds and cash. Portfolios may be held by individual investors or managed by financial profess ...

. As of June 30, 2000, Bank United Corp. had

asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...

s of $18.2 billion, deposits of $8.8 billion, and stockholder's equity of $823 million.

History

At the end of 1988,

Lewis Ranieri Lewis S. Ranieri (; born 1947) is a former bond trader, and founding partner and current chairman of Ranieri Partners, a real estate firm. He is considered the "father" of mortgage-backed securities and co-founder of mortgage-backed securitie ...

and his investor group Ranieri Wilson & Company acquired the deposits and 19 offices of the insolvent

savings and loan association A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. While the terms "S&L" and "thrift" are mainly used in the United States, ...

named United Savings Association of Texas from the

Federal Savings and Loan Insurance Corporation The Federal Savings and Loan Insurance Corporation (FSLIC) was an institution that administered deposit insurance for savings and loan institutions in the United States. History Establishment The FSLIC was established by the National Housing Act ...

for $200 million to create the new United Savings Association FSB. In May 1990, United Savings acquired the deposits and 4 offices of the insolvent Ameriway Savings Association from the

Resolution Trust Corporation Resolution Trust Corporation (RTC) was a U.S. government-owned asset management company first run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets ...

for $981 thousand. In June 1990, United Savings acquired the deposits and 19 offices of the insolvent Murray Savings Association of Dallas from the Resolution Trust Corporation for $809 million. In September 1991, United Savings acquired from the Resolution Trust Corporation the deposits and 20 offices of the insolvent San Jacinto Savings Association for $34.3 million and also the deposits and 6 offices of the failed BancPlus Federal Savings Association in Pasadena for $1.7 million. In October 1991, United Savings acquired from the Resolution Trust Corporation just the deposits from 1 office of the insolvent Victoria Savings Association of San Antonio for a $250 premium. In September 1992, United Savings Association FSB, which was formed from six failed Texas thrifts, was renamed Bank United of Texas FSB. In 1996, the privately owned holding company started to sell stock via an

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

while simultaneously, the original investors took this opportunity to cash in on their original investment by selling off their original shares. The

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...

held warrants worth 1.5 million common shares which were redeemed at that time. Early in 1997, Bank United petitioned the

Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to corporate charter, charter, bank regulation ...

to change its charter from a

federal savings bank Federal savings associations (also called "federal thrifts" or "federal Savings Banks"), in the United States, are institutions chartered by the Office of Thrift Supervision which is now administered by Office of the Comptroller of the Currency a ...

to a

but later withdrew its petition. In January 1999, Bank United announced that they had signed an agreement with

Kroger The Kroger Company, or simply Kroger, is an American retail company that operates (either directly or through its subsidiaries) supermarkets and multi-department stores throughout the United States. Founded by Bernard Kroger in 1883 in Cinc ...

to open 50 more branches inside Kroger supermarkets in the Houston and Dallas-Fort Worth metropolitan areas that were previously occupied by

Bank of America The Bank of America Corporation (Bank of America) (often abbreviated BofA or BoA) is an American multinational investment banking, investment bank and financial services holding company headquartered at the Bank of America Corporate Center in ...

and

NationsBank NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. The company named NationsBank was formed through the merger of several other banks in 1991, and prior to that had been through mul ...

. In March 1999, Bank United announced the pending acquisition of the Texas Central Bancshares with its 3-branch office Texas Central Bank subsidiary for an undisclosed amount. The acquisition was completed in August 1999.

Washington Mutual

In August 2000, Washington Mutual announced the pending acquisition of the

Houston Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...

-based Bank United Corporation with its 155 branch offices, all located in Texas, for $1.49 billion in stock. The acquisition was completed in February 2001. As a result of branch overlap between Bank United and Washington Mutual, 17 branch offices were closed in Texas, 10 of which were in Houston.

References

External links

* {{JPMorgan Chase, state=collapsed Companies based in Houston Defunct banks of the United States Banks disestablished in 2001 2001 disestablishments in Texas Banks established in 2001 2001 establishments in Texas