Straus National Bank and Trust Company (Chicago)
| Company type | Subsidiary |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | Straus National Bank and Trust Company |
| Founded | June 27, 1928 in Chicago, Illinois, United States |
| Fate | Acquired by Walter E. Heller International Corporation in 1973; later acquired by First Chicago Corporation in 1984 |
| Headquarters | Chicago , United States |
Area served | Chicago metropolitan area |
Key people | Simon W. Straus (president at founding), S. J. T. Straus (executive vice president), Robert E. Straus (president in 1962), Allen P. Stults (president post-1973 acquisition), Keene H. Addington (president in 1985), Ronald J. Grayheck (CEO in 1990) |
| Products | Banking services, Trust services |
| Parent | Walter E. Heller International Corporation (1973–1984), First Chicago Corporation (from 1984) |
The Straus National Bank and Trust Company was a financial institution based in Chicago, originating in 1928 as a successor to the Straus Trust Company. In 1933, it adopted the new name American National Bank and Trust Company. By the year 1973, it ranked as Chicago’s fifth largest bank, holding assets valued at $1.3 billion, when it was acquired by Walter E. Heller International Corporation. Subsequently, in 1984, First Chicago Corporation acquired its parent company, American National Corporation, for approximately $275 million.
1928–1929: Establishment of the bank
The Straus National Bank and Trust Company was incorporated on June 27, 1928, taking over operations from the Straus Trust Company, which had been founded in 1924 as an Illinois state-chartered bank. The institution commenced with a capital base of $1 million, along with a surplus of $250,000 and a special reserve amounting to $50,000. Leadership included Simon W. Straus as president; S. J. T. Straus served as executive vice president; John H. Kraft held the roles of vice president and cashier; and J. H. Frazier was vice president and trust officer. The bank maintained its offices within the Straus Building located at the intersection of Jackson Boulevard and Michigan Avenue. By November 21, 1929, total deposits had reached $17.95 million, with undivided profits amounting to $573,778.
1930–1971: Operating as American National
On January 3, 1933, the institution changed its name from Straus National Bank and Trust Company to American National Bank and Trust Company. Subsequently, Manufacturers Trust Company of New York acquired it and assumed some collateral securing loans extended to former management personnel. By March 1933, the bank’s deposits stood at $10.5 million, and it was a member of the Federal Reserve System.
Control of the bank transitioned on June 16, 1933, to a local business syndicate led by Weymouth Kirkland. At this time, S. J. T. Straus was expected to step down from his presidency while Melvin L. Straus continued as executive vice president and investor. Melvin L. Straus remained in his executive vice president role through March 1934.
On September 18, 1962, Robert E. Straus, then serving as president, announced that Leigh R. Gignilliat Jr., who had been vice president of the commercial division since 1941 and held board positions including at Martin Marietta Corporation, was promoted to senior vice president.
1972–1983: Ownership under Walter E. Heller
During the 1970s, American National Bank and Trust Company of Chicago functioned as the principal subsidiary of American National Corporation. On August 14, 1972, Walter E. Heller International Corporation raised its acquisition bid for American National Corporation to $48 per share. The Federal Reserve Board approved this acquisition on May 11, 1973, despite a dissenting opinion that cautioned about potential risks related to market concentration. At that point in time, American National ranked as Chicago’s fifth largest bank with assets totaling $1.3 billion; Walter E. Heller was the twelfth largest finance company in the United States with assets of $1 billion. Following the acquisition, Walter E. Heller became a bank holding company and was mandated to divest its manufacturing subsidiaries within two years.
Subsequent to the acquisition, leadership adjustments were made: Allen P. Stults assumed the presidency of Heller while retaining his roles as chairman and chief executive officer at American National; William G. Ericsson took on executive vice president responsibilities at both organizations.
By 1980, American National reported earnings growth of 13.7%, reaching $22.5 million; nevertheless, analysts considered the bank a liability on Heller’s overall results due to Illinois’ restrictive banking regulations—specifically prohibitions against branch banking or interstate banking—which impeded efforts to fully integrate American National within Heller’s corporate structure through 1981.
1984-1990s: Acquisition by First Chicago
In May 1984, the largest bank holding company in Chicago, First Chicago Corporation, purchased American National Corporation from Walter E. Heller International Corporation for approximately $275 million. During that year, American National Bank focused primarily on serving middle-market businesses and reported a 32% rise in earnings, reaching a record $34.1 million. By early 1985, it ranked as Chicago's fifth-largest bank, holding $3.8 billion in assets and serving around 1,200 clients under the leadership of President Keene H. Addington. On July 1, 1990, Ronald J. Grayheck took over as CEO of both American National Bank and Trust Company and American National Corporation, replacing Michael E. Tobin. As of April 1995, American National continued to operate as a fully owned subsidiary of First Chicago Corporation.