Seafirst Bank
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1929 |
| Defunct | 1999 |
| Fate | Acquired by BankAmerica in 1983; brand retired in 1999 after BankAmerica merged with NationsBank |
| Headquarters | Seattle , United States |
| Products | Banking services |
Seafirst Corporation was a prominent American bank holding company based in Seattle, Washington. Its principal banking entity, Seafirst Bank, stood as the largest financial institution in Washington state, operating a network of 235 branches alongside 497 ATMs throughout the region.
Established in 1929 through the consolidation of Seattle’s three major banks, Seafirst was acquired by BankAmerica in 1983 after incurring substantial losses tied to loans acquired from the defunct Penn Square Bank. The Seafirst name was phased out in 1999 following the acquisition of BankAmerica by NationsBank and the subsequent nationwide transition to the Bank of America brand.
History
Seafirst Corporation traces its origins to November 11, 1929, when Seattle’s foremost banks—the First National Bank Group (founded 1882), the Dexter Horton National Bank (established 1870 by Dexter Horton), and Seattle National Bank (established 1889)—merged. The newly formed institution initially operated as First Seattle Dexter Horton National Bank, was renamed First National Bank of Seattle in 1931, and later rebranded as Seattle-First National Bank in 1935.
In 1944, the bank secured a victory in the US Supreme Court case United States v. Seattle-First Nat. Bank, which exempted it from paying a transfer tax during its transition from a state to a federal charter. By 1970, it was known simply as Firstbank. On July 1, 1974, Seafirst Corporation was created as a holding company for Seattle-First National Bank. At launch, shareholders received two shares of Seafirst stock for every bank share they held, resulting in nine million shares issued initially.
1983 merger
In April 1983, San Francisco-based BankAmerica Corporation announced its purchase of the financially troubled Seafirst Corporation for $400 million in cash and stock. Seafirst had become insolvent due to heavy losses associated with loan participations linked to Oklahoma City’s Penn Square Bank, which collapsed in 1982. Because the FDIC covered only insured deposits at Penn Square’s failure, these loan assets lost their value.
The transaction closed in July 1983. By September, Seafirst began marketing itself under the Seafirst Bank name while retaining Seattle-First National Bank as its legal designation. For more than twenty years afterward, Seafirst operated with significant independence and remained Washington’s largest banking institution.
On February 10, 1997, a high-profile $4.4 million heist took place at the Seafirst branch in Lakewood, Washington, carried out by individuals known as the Trenchcoat Robbers.
Following the 1998 merger between BankAmerica Corp. and NationsBank Corp., which created today’s Bank of America Corporation, Seafirst transitioned to the Bank of America brand on September 27, 1999. This change reflected Bank of America’s strategy to consolidate its presence under a unified national brand after expanding into a banking network spanning 21 states.
See also
- Columbia Seafirst Center, served as corporate headquarters from 1985 to 1999
- Seafirst Building, served as corporate headquarters from 1969 to 1985
Further reading
- The Bankoscope: Staff Publication of the Seattle-First National Bank. Commemorative Anniversary Edition, June 1960, Volume XVIII. Seattle: Seattle-First National Bank, 1960.
External links
- Digitized Seafirst Corporation Annual Reports (1937–1995) available through University of Washington Libraries (high resolution; large file sizes)
- Historical overview of Seattle First National Bank Inc. at FundingUniverse