Continental Bank and Trust Company
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | German-American Bank |
| Founded | August 1, 1870 in New York City, United States |
| Defunct | 1948 |
| Fate | Merged with Chemical Bank and Trust Company |
| Headquarters | New York City , United States |
Key people | Frederick Harrison Hornby (President), James A. Jackson (President), Rafael Carrión Sr. (Major shareholder) |
| Products | Commercial banking, Investment banking, Trust services, Fiduciary services |
The Continental Bank and Trust Company of New York was a financial entity located in New York City, originally founded in 1870 under the name German-American Bank, and later renamed to the Continental Bank of New York. Its first headquarters were situated in the Equitable Building at 120 Broadway, before relocating to 50 Wall Street, then to 25 Broad Street, and from 1932 onward, it operated out of the Continental Bank Building. Often referred to as the "brokers bank" due to its strong connections with Wall Street brokerage firms and its involvement in investment banking, the institution adopted the name Continental Bank and Trust Company of New York around 1929. This period also saw growth through acquisitions in commercial banking and fiduciary services.
Significant acquisitions during this expansion included the Fidelity Trust Company in 1929, followed by both the International Trust Company and Straus National Bank and Trust Company in 1931, as well as the Industrial National Bank later that same year. By the close of 1947, Continental reported net earnings of $804,000, with total assets amounting to $202 million and deposits reaching $188 million. The bank ultimately merged with Chemical Bank and Trust Company in 1948.
1870-1927: German-American Bank
Established on August 1, 1870, the Continental Bank and Trust Company began operations within the original Equitable Building at 120 Broadway, notable for being New York City's first structure equipped with passenger elevators. Its principal offices later included a site at 50 Wall Street, directly across from the New York Custom House. Founding figures comprised influential financiers such as Jacob H. Schiff, H. B. Claflin, Marcellus Hartley, Robert L. Cutting, and Joseph Seligman.
Following the United States' entry into the First World War against the German Empire, the institution changed its name from German-American Bank to Continental Bank of New York in 1918. Prior to the 1930s, it maintained close affiliations with Wall Street brokerage houses and investment banks while expanding its trust service offerings, earning recognition as the "brokers bank" for its financial partnerships with Wall Street brokers.
1928-1929: Name change and initial acquisitions
Around 1929, to signify its expanding trust business, the bank adopted the title Continental Bank and Trust Company of New York, setting the stage for a series of mergers. That year, its capital surged from $2.5 million to $20 million through investments by over three hundred firms from both the Stock Exchange and the Curb Exchange, alongside individual partners and other Wall Street stakeholders. Under President Frederick Harrison Hornby’s leadership, plans commenced for a new headquarters—the fifty-story Continental Bank Building at 30 Broad Street—developed in collaboration with other entities.
In autumn 1929, Continental Bank entered merger discussions with the Fidelity Trust Company. On October 9, both institutions’ boards approved the merger agreement, marking a pivotal moment in broadening Continental’s market reach.
1930-1931: Banking Consolidations in the Early 1930s
During the early years of the 1930s, the bank grew by acquiring various commercial banking and fiduciary enterprises.
The merger between Continental Bank and Trust Company and Straus National Bank and Trust Company of New York took effect on September 16, 1931, coinciding with the purchase of select assets from the International Trust Company. The unified entity resumed operations on that same date, appointing Frederick H. Hornby as chairman and C. Howard Marfield—formerly Straus National’s president—as president. Hornby later reassumed the presidential role in 1933 after his tenure as chairman.
On December 21, 1931, Continental Bank absorbed Industrial National Bank, which resulted in combined deposits totaling $53 million without any increase in capital stock. This consolidation received approval from both institutions’ boards and significantly reinforced Continental’s competitive standing.
1932-1947: Headquarters Expansion and Leadership Changes
On May 9, 1932, Continental Bank and Trust Company commenced activities at its new high-rise located at 30 Broad Street, merging its former main office at 25 Broad Street with its branch at 26 Broadway. The bank occupied basement levels A and B along with the second through fourth floors, while continuing to operate branches at 565 Fifth Avenue, 512 Seventh Avenue, and 72 Second Avenue. Dubbed the "friendly bank," Continental’s leadership, including president F. H. Hornby, maintained a hands-on approach by working directly within the main banking hall. By 1940, the institution had expanded its footprint within the building to encompass seven floors.
Continental commemorated its seventieth anniversary on August 1, 1940. At that time, the president reported deposits amounting to $64.5 million and emphasized a unique approach focused on developing a selective and specialized commercial banking clientele, resulting in a shareholder base of 6,000 but only 3,500 depositors.
Following the death of President F. H. Hornby on October 19, 1942, interim leadership was held by chairman Frederick E. Hasler until James A. Jackson was appointed president in February 1944. By December 31, 1943, Continental’s total assets reached $129.6 million with deposits of $119.4 million; branch locations included 345 Madison Avenue and 512 Seventh Avenue. Among its major shareholders was prominent financier Rafael Carrión Sr.. In 1947, the bank reported net earnings of $804,000 with total assets rising to $202 million and deposits increasing to $188 million by year-end.
1948: Acquisition by Chemical Bank
On February 14, 1948, Chemical Bank and Trust Company announced its intention to acquire Continental Bank and Trust Company of New York. The transaction provided Continental’s shareholders with $12.5 million while transferring roughly $190 million in assets to Chemical Bank. The terms were considered "acceptable" by Continental’s board of directors. Following the acquisition, Continental’s headquarters on Broad Street along with two branches became part of Chemical Bank’s network. John K. McKee, then president of Continental, was invited to join Chemical as a senior executive alongside other key personnel from Continental. Chemical Bank expanded its board from 22 to 25 members, incorporating two former directors from Continental; notably, Rafael Carrión Sr. also joined Chemical’s board during this transition.
Presidents
- Frederick Harrison Hornby – served as president from 1928 to 1931 and again from 1933 to 1942
Board Members
- Walter E. Cosgriff: chairman
- George M. Reynolds: chairman (noted as of January 24, 1928)
- Horace Henry Baxter
- Rafael Carrión Sr. (tenure from 1946 to 1948)