Girard Bank
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1811 |
| Defunct | 1983 |
| Fate | Acquired by Mellon Bank |
| Headquarters | Philadelphia , United States |
| Products | Banking services, financial services |
Girard Bank was a financial institution based in Philadelphia, founded after the death of Stephen Girard in 1831 by local businessmen who capitalized on his name. It is important to note that Stephen Girard himself did not establish nor was he financially connected to the bank bearing his name. The institution was later purchased by Mellon Bank in 1983 and subsequently became part of Citizens Bank.
Founding and early history
Following the expiration of the First Bank of the United States charter in 1811, Stephen Girard acquired most of the bank's shares and its South Third Street premises, reorganizing it under his sole ownership. He appointed George Simpson, previously cashier at the First Bank, to manage day-to-day operations with a staff of seven, officially opening on May 18, 1812. At that time, Pennsylvania law prohibited banking entities without official charters but permitted individuals to conduct banking activities; Girard’s personal credit instruments faced opposition from Philadelphia banks, which unsuccessfully sought legislative action to incorporate him.
During the War of 1812, Girard's bank played a crucial role as a government creditor, underwriting as much as 95% of war loan issues and thereby supporting U.S. military financing during a period of fiscal difficulty. After the conflict, Girard became a significant shareholder and board member of the Second Bank of the United States. Upon his passing in 1831, his bank’s assets were placed into a trust; subsequently, local merchants secured a charter for Girard Bank to acquire these assets and maintain banking services. Significantly, Girard Bank was among the pet banks that received Pennsylvania government deposits following Treasury Secretary Roger B. Taney’s decision to withdraw funds from the Second Bank. In accordance with the National Banking Act, it restructured in 1863 as Girard National Bank.
In February 1903, Girard Bank absorbed Mechanics National Bank (Philadelphia). Five years later, it established its new headquarters on Broad Street—the Girard Trust Building—conceived by architect Frank Furness. Between 1930 and 1931, an adjacent tower designed by McKim, Mead & White was constructed on the site formerly occupied by West End Trust Building. The original domed structure now functions as The Ritz-Carlton Philadelphia hotel.
Acquisition of Corn Exchange Bank
In 1952, Girard Trust Company acquired Philadelphia branches of The Corn Exchange Bank, adopting the name Girard Trust Corn Exchange Bank. Between 1964 and 1971, it operated under the title Girard Trust Bank before shortening it to Girard Bank.
Acquisition by Mellon Bank
In 1983, following legislative changes in Pennsylvania permitting statewide banking through holding companies, Girard merged with Mellon Bank in a $220 million transaction. After this merger, the institution was rebranded as Mellon Bank (East), marking the end of Girard’s century-long independent identity and presenting integration challenges for both staff and clients. Approximately twenty years later, much of this entity was sold to Citizens Bank. The landmark headquarters in Philadelphia currently serves as a Ritz hotel.
During the 1970s, Girard was an innovator in automated banking by launching its proprietary ATM system named "George" in 1978. In response, Philadelphia National Bank (PNB) introduced its own ATM network in 1979, which expanded into the MAC system with collaboration from thirteen other banks. Following its acquisition of Girard in 1983, Mellon Bank also joined the MAC network.
See also
- Stephen Simpson, a former employee of Girard and author of Biography of Stephen Girard, with His Will Affixed (1832), which provides a critical perspective on Girard and his banking institution.
- Bibliography
- The history of the Girard National Bank of Philadelphia, 1832-1902, published by J. B. Lippincott Co., 1902
- Girard Trust Company: a century of financial activity, 1836-1936, E. Stern & Co., Inc., 1936
- Girard National of Philadelphia Has Acquired the Independence National, New York Times, April 3, 1901
- Girard Trust Corn Exchange Bank