First Chicago NBD buys regional securities firm

Northwestern Financial Review, Jan 10, 1998

First Chicago NBDCoporation is acquiring Roney & Co., a regional full-service investment firm for $95 million. With the addition of Roney, First Chicago NBD will serve 300,000 retail brokerage customers across the Midwest through more than 500 investment representatives. Founded in 1925, Roney & Co., has 28 branch offices in Michigan, Indiana and Ohio. Its 700 employees serve more than 10,000 client accounts. The firm will continue to operate under the Roney name, and it will continue to provide equity as well as municipal and corporate debt underwriting in conjunction with First Chicago Capital Markets Inc., the Corporation's Section 20 subsidiary. First Chicago NBD also will continue to operate its broker-dealer subsidiary, First Chicago NBD Investment Services, Inc., which has more than 200 investment representatives serving more than 200,000 clients. Magna Group, Inc., of St. Louis is acquiring Charter Financial, Inc., of Sparta, Ill., in a stock transaction valued at approximately $100 million. Charter Financial is a $388 million holding company for Charter Bank, a savings bank which has eight offices in southern Illinois. The acquisition is expected to be completed in the second quarter. G. Thomas Andes is chairman and CEO of Magna Group. John A. Becker is president and CEO of Charter Financial Inc.

Salaries at community banks in Illinois increased an average of 2.94 percent in 1996, according to the annual compensation survey conducted by the Community Bankers Association of Illinois. The assets of the typical community bank grew by 7 percent during the year, the survey also notes. In addition, the survey notes that the typical CEO of a community bank has been in the banking industry for more than 21 years. Approximately 300 community banks were contacted for the annual survey.

The Federal Home Loan Bank of Chicago has a new web site. It contains information about Federal Home Loan Bank members, products, interest rates, publications and other news. Its address is www.fhlbc.com. Interest rate quotes for advances, updated daily, are accessible from the site. `Cost of funds' averages and other rates released in a monthly Index Report are also available. In addition, the site contains an interactive financial model which allows potential members and existing members to calculate the amount of capital stock needed to join the bank or to borrow additional funds. A similar model can be used to calculate liquidity measures.