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[[Image:Compass Bank logo.png|right|275px]]
[[Image:BBVA Compass logo.png|thumb|right|275px|BBVA Compass logo]]
'''Compass Bank''' is a publicly held company and a subsidiary of '''Compass Bancshares, Inc.''', a financial holding company with $30.1 billion in assets and 385 full-service banking offices in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas. Compass is one of the nation's 30 largest banks, and is a member of the S&P 500 Index and the Dow Jones Select Dividend Index. [[D. Paul Jones]] is chairman and CEO. Its headquarters are in the [[Daniel Building]] at 15 [[20th Street South]] in [[Midtown]] [[Birmingham]].
[[Image:BBVA logo.png|thumb|right|224px|2019 BBVA logo]]
'''BBVA Compass''' (later simplified to '''BBVA''') was the US-based division of Spain's '''Banco Bilbao Vizcaya Argentaria''', operating from [[2007]] to [[2021]], when the division was sold to the Pittsburgh, Pennsylvania-based [[PNC Bank]].


==History==
Though BBVA had staffed a New York City office since [[1988]] and provided remittance services along the U.S./Mexico border after acquiring Mexico's Banco de Comercio (Bancomer) in [[1994]], it only entered the US banking market with the purchase of the 4-branch Valley Bank in Moreno Valley, California in [[2004]]. In order to extend its reach in Spanish-speaking communities familiar with its Bancomer brand, BBVA acquired three banks in South Texas between [[2005]] and [[2007]]: Laredo National Bank (32 branches), Texas State Bank (80 branches) and State National Bank (44 branches).
The company was founded in [[1964]] as '''Central Bank and Trust Company''' by [[Harry Brock, Jr]], [[Schuyler Baker]] and [[Hugh Daniel]] with $1 million of capital. Other founding directors included [[Frank L. Hardy]], [[John R. Israel]], [[Wendell H. Taylor]] and [[Stewart Welch]]. Soon later, [[Wally Nall]], [[John Evins]], [[Inos Heard]], and [[Tom Jernigan]] joined the board.


By [[1968]] agressive marketing and creative services propelled the state-chartered bank's assets to $82 million, or 7% of the Birmingham market after four years. The next year, Central made an unprecedented hostile takeover bid for Decatur's State National Bank, one of only a few with the right by charter to open branches across county lines. The bid was supported by [[Hugh Agricola]] and other shareholders of the First National Bank of Gadsden, which had been bought by State National. It was financed by a $10 million line of credit from the Bank of Virginia, which was pioneering its own statewide banking company. By July, Central was able to assemble a voting trust representing about a third of State National's shares in advance of a public offering of $70 per share. The [[City National Bank of Birmingham]], which had also been planning a merger, countered with $80 per share. Central instructed their brokers to buy as many shares as they could up to $85 and ended with enough shares to control State National's board.
During that period, BBVA expanded its growth strategy beyond the Spanish-speaking market, seeking inroads in the general banking market over a larger territory. On [[February 16]], [[2007]] BBVA took a major step toward that goal when it announced that it had agreed to purchase [[Birmingham]]'s [[Compass Bank]], which then had 422 branches in 6 Southern states, including a large presence in Texas. The sale price was announced as $9.6 billion, or $71.82 per share.


In response, Alabama's other major banks filed several court actions in an attempt to block the merger. One action, brought in Federal Court, did succeed with blocking it, on the technicality that Alabama's banking laws, under which the state-chartered bank operated, were incompatible on a few points with Federal banking laws that governed the national banks in the area of mergers. While this finding was being appealed, banking lobbyists were pushing for new legislation that would prevent the merged company from being able to operate in more than one county. Brock and Central Bank's other officers personally lobbied against the bill, and though it would have passed easily, died in committee without reaching the floor for a vote.
BBVA rebranded the newly-acquired operations under the BBVA Compass name and adopted Compass' administrative offices in the [[Daniel Building]] for its headquarters offices, with Compass' [[D. Paul Jones]] as CEO. In addition, Compass Bank's [[Harry B. Brock Administrative Center]] in [[Lakeview]] expanded its role as the technology center for the growing bank chain.


===Statewide banking===
The company's older Texas acquisitions continued to be overseen from a "BBVA USA" headquarters in Woodlands, Texas near Houston, and chairman José María García Meyer oversaw both operations from that office. On [[January 1]], [[2008]], former Compass chief financial officer [[Gary Hegel]] succeeded [[D. Paul Jones]] as CEO of BBVA Compass. Over the course of that year he oversaw the incorporation of BBVA USA's Texas-based banks into the BBVA Compass network.
The result of the failed bill was that statewide bank holding companies were recognized as a legal possibility for the first time, and the other major banks moved quickly to organize while Central was waiting for a decision on their appeal. Another group, led by [[Frank Plummer]], [[Norman Pless]], and [[Bob Lowery]] even stole Brock's intended name for the holding company, [[Regions Bank|First Alabama Bancshares]]. Central did win their appeal and formed the '''Central and State National Corporation''', which was soon renamed '''Central Bancshares of the South'''. In [[1973]] this new holding corporation issued a new stock offering to fuel the growth of the statewide network.


In [[1981]] Central and a coalition of other bank holding companies successfully lobbied for the [[Bank Merger Act]], allowing statewide bank branching under a single banking company. For the next two years, the combined holdings of '''Central Bank of the South''' were the largest single bank in Alabama.
Though stated publicly in January that, "Compass will remain based in Birmingham," in reality the ongoing process of merging BBVA USA with BBVA Compass resulted in the combined company's executive administrative center quietly migrating into the Woodlands offices, while many large departmental offices and the bank's technical operations were concentrated in Birmingham. BBVA's global presence helped to shield its overall balance sheet from the effects of the [[Great Recession]], but also made it ineligible for the Troubled Asset Relief Program (TARP) created under the Emergency Economic Stabilization Act of 2008.


===Interstate banking===
At the end of 2008 BBVA Compass reported total assets of approximately $61.2 billion, and operated 579 branch offices with more than 12,000 employees. During the course of that year, the bank laid off approximately 10% of its workforce to reduce its expenses in the face of depressed economic activity. In August, BBVA Compass acquired the failed Guaranty Bank of Austin, Texas through the FDIC's receivership, adding $12 billion in assets and 120 branches in Texas and California to its network.
Quickly, the bank began pursuing interstate banking in the legislature, and was successful, again with the help of other big banks, in passing enabling legislation that took effect in [[1986]].


Their first acquisition out of state was the failing First National Bank of Crosby, Texas in February [[1987]]. Central was the first out-of-state bank to operate in Texas, and they already had their foothold in Harris County, where Houston is located. After they established another group in the Dallas area, they created a new holding company, '''Compass Bancshares of Texas''', with headquarters in Houston. As other banks were acquired in Texas, Florida and New Mexico, the Compass name was applied to the entire corporation.
In [[2010]] the bank signed a 3-year agreement to become the title sponsor of the [[Birmingham Bowl|BBVA Compass Bowl]], a postseason bowl game at [[Legion Field]] which had previously been played as the "PapaJohns.com Bowl". The company also secured naming rights for the $95 million BBVA Compass Stadium in Houston and the $7.3 million [[BBVA Field]] on the [[UAB campus]]. Between [[2011]] and [[2013]] it also constructed a new headquarters building, the 22-story BBVA Compass Plaza in Houston's Uptown district.


===Major acquisitions===
Meanwhile, beginning in [[2011]] the bank also embarked on a $362 million project to re-engineer its "core technology platform", allowing for real-time processing of deposits and payments across its network of branch offices. Over the next few years the bank also invested in online banking, user experience design, digital analytics and other technologies by acquiring start-ups such as Simple, a Portland, Oregon-based "neobank", and Spring Studio, a digital design firm in San Francisco, California. BBVA began operating a "New Digitial Business Unit" in San Francisco and a "Creation Center" in Dallas, Texas. In Birmingham, the bank created a $13 million "Development Center" at the Brock Administrative Center, and also leased space at [[Innovation Depot]] for a "Cross Industry Development Center", both announced in the spring of [[2015]]. [[Onur Genç]] succeeded Sánchez as CEO at the end of [[2016]] and took charge of the bank's strategy to expand its business and corporate banking operations.
* First National Bank of Crosby, Texas - February 26, 1987
* City National Bank of Plano, Texas - November 10, 1989
* River Oaks Bancshares, Houston, Texas - March 28, 1991
* Promenade Bancshares, Richardson, Texas - July 31, 1991
* FWNB Bancshares, Carrollton, Texas - December 22, 1992
* Cornerstone Bancshares, Dallas, Texas - January 19, 1993
* First Federal Savings Bank of Northwest Florida, Ft Walton Beach, Florida - October 14, 1993
* First Performance National Bank, Jacksonville, Florida - January 27, 1994
* First Heights Bank FSB, Houston, Texas - October 1, 1994
* Equitable Bankshares, Dallas, Texas - April 11, 1996
* Post Oak Bank, Houston, Texas - April 19, 1996
* CFB Bancorp, Jacksonville, Florida - August 23, 1996
* Enterprise National Bank, Jacksonville, Florida - January 15, 1997
* Horizon Bancorp, Austin, Texas - March 12, 1997
* Central Texas Bancorp, Waco, Texas - July 15, 1997
* GSB Investments, Jacksonville, Florida - January 13, 1998
* Fidelity Resources Company, Dallas, Texas - February 9, 1998
* Arizona Bank, Tucson, Arizona - December 15, 1998
* Norwest/Well Fargo offices, Phoenix, Arizona - April 19, 1999
* Heartland Bank, Austin, Texas - October 20, 1999
* Western Bancshares, Albuquerque, New Mexico - January 13, 2000
* MegaBank Financial Corporation, Denver, Colorado - April 3, 2000
* Founders Bank of Arizona - July 17, 2000
* FirsTier Corporation, Colorado - January 4, 2001
* TexasBanc Holding Company, Fort Worth, Texas - March 24, 2006


===Sale===
In [[2019]] BBVA Compass held $91 billion in assets and operated 672 full-service banking offices in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. BBVA's United States banking division was one of the nation's 30 largest banks, and was a member of the S&P 500 Index and the Dow Jones Select Dividend Index.
On February 16, [[2007]], Compass announced that it would be acquired for $9.6 billion ($71.82 per share) by the Banco Bilbao Vizcaya Argentaria (BBVA), the second-largest bank in Spain.  


== External links ==
BBVA Compass and its siblings (Francés in Argentina, Bancomer in Mexico, and Continental in Peru) were rebranded as BBVA in [[2019]]. In November [[2020]] BBVA announced the sale of its US operations to [[PNC Bank]] of Pittsburgh, Pennsylvania for $11.6 billion. The sale closed in May [[2021]]. With the acquisition, PNC became the 5th largest bank in the United States with $550 billion in assets.
*[http://www.compassbank.com/ Compass Bank] website
 
== Chief executives ==
* [[D. Paul Jones]], 2007–January 2008
* [[Gary Hegel]], January–November 2008
* [[Manolo Sánchez]], 2008–December 2016
* [[Onur Genç]], January 2017–January 2019
* [[Javier Soler]], January 2019–May 2021


== References ==
== References ==
* Brock, Harry B. Jr (1991) ''A Competitive Spirit: How a Little Bank Made a Big Difference.'' New York: Newcomen Society. Publication No. 1351.
* Underwood, Jerry (November 17, 2008) "[https://www.al.com/businessnews/2008/11/compass_says_gary_hegel_steps.html Compass says Gary Hegel steps down as CEO, replaced by Texas executive for BBVA." {{BN}}
* "Spanish bank to buy Compass in blockbuster deal." (February 15, 2007) ''Birmingham News''.
* Williams, Roy L. (August 29, 2010) "[https://www.al.com/businessnews/2010/08/on_the_record_manolo_sanchez_p.html On the record: Manolo Sanchez, president and CEO of BBVA Compass]" {{BN}}
* Compass Bancshares. (2006, July 23). In Wikipedia, The Free Encyclopedia. Retrieved 16:53, October 25, 2006 [http://en.wikipedia.org/w/index.php?title=Compass_Bancshares&oldid=65386717]
* Curtis, Wayne C. (August 20, 2013) "[http://encyclopediaofalabama.org/article/h-3283 BBVA Compass Bank]". ''Encyclopedia of Alabama''
* Compass Bank. [http://investors.compassbank.com/phoenix.zhtml?c=77589&p=irol-mergeracquisition Merger & Acquisition History] - accessed February 18, 2007
* Seale, Michael (April 16, 2015) "BBVA Compass reveals newly renovated, $13 million development center." {{BBJ}}
 
* Seale, Michael (May 8, 2015) "BBVA Compass opens new center at Innovation Depot." {{BBJ}}
* Coker, Angel (April 24, 2019) "BBVA Compass to be rebranded to BBVA." {{BBJ}}
* Thornton, William (June 10, 2019) "New day for BBVA: Bank’s global brand strategy launches." {{BN}}
* "PNC to buy BBVA's U.S. operations for $11.6B." (November 16, 2020) {{BBJ}}
* Thornton, William (November 17, 2020) "What does PNC’s acquisition of BBVA mean for Birmingham." {{BN}}
* Crossman, Penny (January 7, 2021) "BBVA USA shuts down neobank Simple." ''American Banker''


[[Category:Banks]]
[[Category:Defunct banks]]
[[Category:Major corporations]]
[[Category:Former public companies]]
[[Category:20th Street South|015]]
[[Category:Daniel Building]]
[[Category:2007 establishments]]
[[Category:2021 disestablishments]]

Latest revision as of 12:38, 4 June 2021

BBVA Compass logo
2019 BBVA logo

BBVA Compass (later simplified to BBVA) was the US-based division of Spain's Banco Bilbao Vizcaya Argentaria, operating from 2007 to 2021, when the division was sold to the Pittsburgh, Pennsylvania-based PNC Bank.

Though BBVA had staffed a New York City office since 1988 and provided remittance services along the U.S./Mexico border after acquiring Mexico's Banco de Comercio (Bancomer) in 1994, it only entered the US banking market with the purchase of the 4-branch Valley Bank in Moreno Valley, California in 2004. In order to extend its reach in Spanish-speaking communities familiar with its Bancomer brand, BBVA acquired three banks in South Texas between 2005 and 2007: Laredo National Bank (32 branches), Texas State Bank (80 branches) and State National Bank (44 branches).

During that period, BBVA expanded its growth strategy beyond the Spanish-speaking market, seeking inroads in the general banking market over a larger territory. On February 16, 2007 BBVA took a major step toward that goal when it announced that it had agreed to purchase Birmingham's Compass Bank, which then had 422 branches in 6 Southern states, including a large presence in Texas. The sale price was announced as $9.6 billion, or $71.82 per share.

BBVA rebranded the newly-acquired operations under the BBVA Compass name and adopted Compass' administrative offices in the Daniel Building for its headquarters offices, with Compass' D. Paul Jones as CEO. In addition, Compass Bank's Harry B. Brock Administrative Center in Lakeview expanded its role as the technology center for the growing bank chain.

The company's older Texas acquisitions continued to be overseen from a "BBVA USA" headquarters in Woodlands, Texas near Houston, and chairman José María García Meyer oversaw both operations from that office. On January 1, 2008, former Compass chief financial officer Gary Hegel succeeded D. Paul Jones as CEO of BBVA Compass. Over the course of that year he oversaw the incorporation of BBVA USA's Texas-based banks into the BBVA Compass network.

Though stated publicly in January that, "Compass will remain based in Birmingham," in reality the ongoing process of merging BBVA USA with BBVA Compass resulted in the combined company's executive administrative center quietly migrating into the Woodlands offices, while many large departmental offices and the bank's technical operations were concentrated in Birmingham. BBVA's global presence helped to shield its overall balance sheet from the effects of the Great Recession, but also made it ineligible for the Troubled Asset Relief Program (TARP) created under the Emergency Economic Stabilization Act of 2008.

At the end of 2008 BBVA Compass reported total assets of approximately $61.2 billion, and operated 579 branch offices with more than 12,000 employees. During the course of that year, the bank laid off approximately 10% of its workforce to reduce its expenses in the face of depressed economic activity. In August, BBVA Compass acquired the failed Guaranty Bank of Austin, Texas through the FDIC's receivership, adding $12 billion in assets and 120 branches in Texas and California to its network.

In 2010 the bank signed a 3-year agreement to become the title sponsor of the BBVA Compass Bowl, a postseason bowl game at Legion Field which had previously been played as the "PapaJohns.com Bowl". The company also secured naming rights for the $95 million BBVA Compass Stadium in Houston and the $7.3 million BBVA Field on the UAB campus. Between 2011 and 2013 it also constructed a new headquarters building, the 22-story BBVA Compass Plaza in Houston's Uptown district.

Meanwhile, beginning in 2011 the bank also embarked on a $362 million project to re-engineer its "core technology platform", allowing for real-time processing of deposits and payments across its network of branch offices. Over the next few years the bank also invested in online banking, user experience design, digital analytics and other technologies by acquiring start-ups such as Simple, a Portland, Oregon-based "neobank", and Spring Studio, a digital design firm in San Francisco, California. BBVA began operating a "New Digitial Business Unit" in San Francisco and a "Creation Center" in Dallas, Texas. In Birmingham, the bank created a $13 million "Development Center" at the Brock Administrative Center, and also leased space at Innovation Depot for a "Cross Industry Development Center", both announced in the spring of 2015. Onur Genç succeeded Sánchez as CEO at the end of 2016 and took charge of the bank's strategy to expand its business and corporate banking operations.

In 2019 BBVA Compass held $91 billion in assets and operated 672 full-service banking offices in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. BBVA's United States banking division was one of the nation's 30 largest banks, and was a member of the S&P 500 Index and the Dow Jones Select Dividend Index.

BBVA Compass and its siblings (Francés in Argentina, Bancomer in Mexico, and Continental in Peru) were rebranded as BBVA in 2019. In November 2020 BBVA announced the sale of its US operations to PNC Bank of Pittsburgh, Pennsylvania for $11.6 billion. The sale closed in May 2021. With the acquisition, PNC became the 5th largest bank in the United States with $550 billion in assets.

Chief executives

References

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