First National Bank of Omaha

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First National Bank of Omaha
Type	Private
Founded	Omaha, Nebraska December 10, 1857 (as Kountze Brothers Bank); July 1, 1865 (First National Bank of Omaha)
Headquarters	Omaha, Nebraska
Key people	Rajive Johri, President (FNBO) Stephen Eulie, President (FNCCC)
Industry	Finance and Insurance
Products	Financial Services
Parent	First National of Nebraska
Subsidiaries	First National Bank Southwest FNBO Direct
Website	www.firstnational.com

First National Bank of Omaha, a subsidiary of First National of Nebraska, has a history that parallels that of the city of Omaha and the state of Nebraska.^[1]

Contents 1 Board of Directors 2 Executives 3 History 3.1 Presidents 3.2 1850 to 1899 3.3 1900 to 1949 3.4 1950 to 1999 3.5 2000 to present 4 Branches 5 FNBO Direct 6 First National Merchant Solutions 7 First National Credit Card Center 7.1 Interest Rate Battles 8 See also 9 External links 10 References

[edit] Board of Directors

The Board of Directors is chaired by Mr. Bruce Lauritzen, whose family owns a controlling interest in the Bank's ultimate holding company. The board of directors are comprised of family stockholders, independent directors, and members of the management of the Bank and its holding company ^[2].

• Margaret Dodge
• William Henry
• Rajive Johri
• Bruce Lauritzen
• Clark Lauritzen
• Daniel O'Neill
• John Reed

[edit] Executives

Name	Position	Division
Rajive Johri	President	First National Bank of Omaha
Stephen Eulie	President/Division Head	First National Credit Card Center
Walter Douglas	Exec. Vice Pres & CFO	First National Bank of Omaha
Clark Lauritzen	Sr Vice Pres/Division Head	Investment Banking
David Sweiderk	Sr Vice Pres/Division Head	Consumer Lending
Stephanie Moline	Exec. Vice Pres	Corporate Banking Group
Diana Mehochko	President	First National Merchant Solutions
Craig McGarry	Sr Vice Pres/Division Head	Wealth Management
Rolland Johannsen	Sr Vice Pres/Division Head	Retail Distribution
Robin Nakamura	Sr Vice Pres	eBusiness
David Downing	Sr Vice Pres/Division Head	Centralized Operations
Stephen Zubrod	Vice President	Corporate Marketing
Mike Foutch	Sr Vice Pres/Division Head	Human Resources

[edit] History

[edit] Presidents

Years	President
1863-1874	Edward Creighton
1875-1906	Herman Kountze
1906-1907	John A Creighton
1907-1914	Charles T Kountze
1914-1934	Frederick H Davis
1935-1948	Thomas L Davis
1948-1953	Fred W Thomas
1953-1966	John F Davis
1966-1970	John R Lauritzen
1971-1986	F Phillips Giltner
1987-unknown	Bruce R Lauritzen
current	Rajive Johri

[edit] 1850 to 1899

In 1850, a group of settlers from Kanesville, Iowa crossed the Missouri River to picnic in the newly named Nebraska Territory. One of the visitors, Thomas Davis, helped found Omaha when he donates $600 in gold dust for an official charter. He eventually serves on First National Bank's Board of Directors. Two immigrant brothers from Ohio, Herman and Augustus opened Kountze Brothers Bank in 1857. Omaha's first bank opened its doors and started trading primarily in gold dust and buffalo hides. Kountze Brothers Bank receives national charter #209 in 1863. Today, theirs is the oldest national bank west of the Missouri River. In 1863, they also began doing business as First National Bank of Omaha and brought in additional investors, including Edward Creighton, who served as president.

In 1883, Herman Kountze speculated on land in North Omaha, eventually developing an affluent Omaha suburb called Kountze Place in the former town of Saratoga. The panic of 1893 sparks the worst depression of the 19th century. In 1895, twelve businessmen from Omaha, including Herman Kountze, started the Knights of Ak-Sar-Ben. Their mission, "to build a more prosperous Heartland, where communities can flourish and every child can succeed," carries on to this day. In 1898 Herman Kountze donated the use of 60 acres of his Kountze Place development for the Trans-Mississippi Exposition, one of the crowning events in Omaha's history. Featuring a lagoon filled with Venetian gondolas, it attracted 2.6 million visitors at a time when Omaha's population was roughly 100,000.

[edit] 1900 to 1949

In 1913, First National Bank became one of the first banks to specifically target women with a Ladies' Department. Staffed with female tellers in a comfortable and accommodating setting, it helped make banking a mainstream activity for women. During a five-year span ending in 1933, the Great Depression caused more than 750 Nebraska banks to close. On one Saturday in August, skittish depositors begin withdrawing their funds en masse from Omaha banks. When their requests were met, the banks proved their solvency; if not, the banks faced almost certain collapse. During this period First National Bank extended their hours, honored every withdrawal and proved their financial strength once and for all.

[edit] 1950 to 1999

In 1953, under the visionary leadership of John Lauritzen, First National Bank became the first bank in the region and the fifth in the nation to issue their own credit card. It proved to be one of the most innovative and profitable moments in their history. Also in 1953, First National Merchant Solutions began processing for 125 merchants. ^[3] In 1971 employees start moving into the 22-story First National Center. Attached to a 420-room hotel and a 550-stall parking garage, it became one of the most modern and attractive buildings in the region, providing some much-needed economic development in downtown Omaha.

[edit] 2000 to present

In 2000 First National Bank designated two parcels of green space for the city of Omaha. They are the future site of two sculpture park called "Spirit of Nebraska's Wilderness" and "Pioneer Courage". Working in tandem, the two sculptures join to make one of the largest bronze sculptures in the world. In 2002 First National Bank completed construction on the First National Tower, the tallest building between Chicago and Denver. With almost a million square feet of office space, it dramatically changed Omaha's skyline. The First National Technology Center is also completed, becoming the first business in the country to utilize hydrogen fuel cells.

Thanks in part to their Child Development Center, in 2002 First National Bank is selected one of "America's Best Companies for Working Mothers" according to Working Mother magazine, an honor that has been repeated annually. In 2003 First National Bank was named "One of America's Most Admired Companies", as judged by their peers for Fortune Magazine. FNBO Direct, an online savings account, began operations in 2006^[4]. First National was named to IDG's Computerworld "100 Best Places to work in Information Technology", as well.

First National Bank opened a new 'state-of-the-art' branch in Papillion, Nebraska. ^[5] The features at this new branch includes:

• Learning Center: a place to learn more about the products and services
• Business Center: computer, phone, fax, copy machine and free wireless access for the business customers. There is also 'business specific' teller windows
• Gourmet Coffee Bar
• Kids Area: a place just for kids to play games and watch kid-friendly shows
• Super ATM: no deposit envelopes needed and will save customized preferences for that particular ATM
• Retina Scan Safe deposit box Entry

It was announced on February 8, 2008 that Mills County Bank in Glenwood, Iowa and Silver City, Iowa will be First National Bank of Omaha, effective February 9, 2008. The full transition to First National Bank is expected to be completed mid-year. ^[6]

In March 2008, First National Bank opened a new branch with their new partnership with Scooter's Coffeehouse, based out of Bellevue, Nebraska. This new branch is located in the Old Market in Downtown Omaha. ^[7]

More than 150 years after being founded, and in its sixth generation of family leadership, First National Bank is recognized as the largest privately held bank in the country with $20 billion in managed assets.^[8]

[edit] Branches

Currently, First National Bank has branches in Nebraska, Iowa and Texas. In Nebraska, there are 20 branches in Omaha, four in Lincoln, two in Beatrice, and one in Bellevue, David City, and Papillion. Texas is also the home to four branches, however, they operate under the name of First National Bank Southwest. There are currently two branches in Frisco and two in Plano. On February 9, 2008, Mills County Bank in Iowa became First National Bank of Omaha. There is currently a branch in Glenwood and Silver City. These will be the first FNBO branches in Iowa.

[edit] FNBO Direct

Main article: FNBO Direct

Call Center located in Omaha, Nebraska

FNBO Direct, a division of First National Bank of Omaha, started operations in November 2006 at a 5.25% Annual Percentage Yield (APY).

FNBO Direct launched a nationwide campaign to promote their online savings account on May 1, 2007. In honor of the bank's 150th anniversary, the APY was placed at 6.0% for 150 days from May 1 through September 28, 2007.

In an e-mail sent to customers at the end of August, it was announced that the FNBO Direct Credit Card will give a competitive interest rate and cash back rewards that would be deposited directly into the online savings account. The credit card product launched to a selected number of customers that currently have an online savings account on September 26, 2007.

On November 28, 2007, FNBO Direct launched an Online Billpay account as well as offering a certificate of deposit available, at first, for four different terms (9 month, 12 month, 18 month, and 24 month). Currently, customers are able to choose from a six month term as well.

[edit] First National Merchant Solutions

In addition to being a top-10 payment processor, First National Merchant Solutions is also the 4th largest bank processor in the United States and is the 6th largest in-house processor of credit cards.

In 1967, First National Bank of Omaha automated many of its manual credit card processes and was the first credit card processing center in the nation to offer descriptive billing statements. In 1988, First National Bank of Omaha became the first processor to develop authorization slips for restaurants with a blank area for including tip. A couple of years later, FNBO's acquiring division was renamed to First of Omaha Merchant Processing. First of Omaha Merchant Processing received the 1994 Member Service Quality Performance Award for Best Copy Performance by an acquirer with Visa sales over $1.5 billion. In 2002, First of Omaha Merchant Processing changed its name to First National Merchant Solutions. A year later, FNMS celebrated its 50th year of processing payments. First National Merchant Solutions became one of the first processors to offer merchants ACH and credit card transactions in the same batch file in 2004. The following year, First National Merchant Solutions introduced First Resolution OnlineTM, the first chargeback management tool in the market to allow merchants to resolve chargebacks online.

[edit] First National Credit Card Center

Call Center locations: Omaha, Nebraska; Atlanta, Georgia; Bloomfield, Nebraska; Kearney, Nebraska; Norcross, Georgia; Wayne, Nebraska; Yankton, South Dakota

In January of 1953, John Lauritzen focused his inventive attention on First National's consumer finance operation. Lauritzen's "First Charge" card, which made its debut in March of 1953, remains to this day the most profitable innovation in First National's long history ^[9]

The bank issued a simple little card, which was nothing more than a white piece of plasticized paper, complete with a green logo, and an inscription which spelled "First Charge Account Service" and a red number which served to identify the cardholder. ^[10]

First National Credit Card Center (FNCCC) is one of the top three banks serving the credit card needs of other financial institutions, including Union Bank of California and Sovereign Bank. FNCCC also services credit cards for the National Rifle Association, Major League Lacrosse, Concerned Women of America, World of Warcraft, Scheels All Sports, just to name a few.

SunTrust Bank announced on December 12, 2006, that it has signed an agreement with Atlanta-based InfiCorp Holdings, Inc. (subsidiary of First National of Nebraska) for issuing consumer credit cards. Under terms of the agreement, InfiCorp will market, originate and service SunTrust-branded cards starting in the first quarter of 2007, focusing on SunTrust clients.^[11]

[edit] Interest Rate Battles

An Iowa resident by the name of Fred Fisher received an unsolicited BankAmericard from First National Bank of Omaha, in February of 1969. Fisher was one of thousands of Iowans contacted in this manner, but it was this particular mailing that triggered a 10-year chain of historic events which, in the words of the November 19, 1991, edition of the Wall Street Journal, "effectively opened the door to interstate consumer lending."

Fisher filed a complaint against the Omaha bank on September 3, 1971, for exporting Nebraska's higher interest rates to his state. He told the U.S. District Court that since the Iowa legislature had fixed the usury ceiling at nine percent, First National was breaking the law by charging him 18 percent for advance of up to $500.

On February 22, 1972, the U.S. District Court of Iowa ordered the Fisher case be transferred to the U.S. District Court of Nebraska because the Omaha bank had "not waived its privilege of being sued in the district where it was established." In an opinion filed on June 24, 1975, the Nebraska court ruled that the interest rate which First National may legally charge in Iowa if governed by the usury laws of the state "where the extension of credit occurs" and that since the credit was extended in Omaha where the 18 percent interest rate was not usurious, it was entirely within the legal bounds in Iowa as well.

Marquette National Bank of Minneapolis, who was also issuing credit cards, confronted First National Bank of Omaha and informed them that what they were doing with the interest rate was illegal. Marquette threatened by taking the Omaha bank to the U.S. Supreme Court if necessary if their practice continued. The Marquette bank offered credit cards for a $10 fee at a flat rate of 12 percent interest on outstanding credit. First National required no fee and it charged 18 percent interest for credit up to $500 and 12 percent on all additional balances.

Marquette began to lobby for the passage of a state law designed to put a 12 percent ceiling on all bank credit card oustandings. In May 1976, about one month after that measure was signed into law, Marquette filed a suit to make its Omaha rival conform to the 12 percent limit.

Things were starting to heat up again in Iowa on November 1, 1974, when the attorney general, Richard C. Turner, filed a petition with the District Court, requesting a permanent injunction enjoining the Omaha bank and a Des Moines bank from assessing or collecting a finance charge in excess of the amount permitted by the Iowa Consumer Credit Code. The court ruled in favor of the defendants on July 6, 1977, six months after the U.S. Court of Appeals affirmed the judgment of the District Court in the Fisher case, saying that First National's Visa program should not be restrained or restricted in any way because it "promotes and facilitates, rather than limits or inhibits, interstate trade and commerce.

On August 30, 1978, the Iowa Supreme Court threw out the lower court decisions and ruled in favor of both Fisher and the attorney general. As a result, First National filed an appeal with the U.S. Supreme Court on September 11 and hired the renowned attorney and former solicitor general under President Richard Nixon, Robert H. Bork, to argue its case.

Justice Thurgood Marshall gave his analysis of the case. He asked the Marquette attorney if he was correct in stating that the citizens of Minnesota can go to their bank and get a credit card at 12 percent. The attorney agreed. Justice Marshall again asked the Marquette attorney if he was correct in stating that First National Bank of Omaha is sending mailing solicitations into his territory and signing up a large number of citizens. The attorney agreed. Finally, Justice Marshall asked the Marquette attorney, "You're claiming that the Omaha bank is taking customers away from Marquette?" The attorney agreed. Justice Marshall concluded that the bank does not have a legal problem, but that they have a marketing problem.

On December 18, 1978, the high court, fully agreeing with Marhsall's analysis, ruled unanimously in First National Bank's favor. The decision maintained that the 115-year-old National Bank Act takes precedence over usury statues in individual states. Justice William Brennan wrote that the 1863 law permitted a national bank to charge interest at the rate allowed by the regulations of the state in which the lending institution is located.

Brennan rejected Marquette National's argument that just because First National was soliciting credit card customers in Minnesota, it was "located" in that state for purposes of the credit card program. "Minnesota residents were always free to visit Nebraska and receive loans in that state." Brennan continued to say that it hadn't been suggested that Minnesota usury laws would apply in such transactions. They should not be allowed to become any more applicable in the case at hand just because "the convenience of modern mail" permits Minnesota residents to receive loans from the Omaha bank without the need to visit Nebraska.

On July 25, 1979, the Iowa Supreme Court overturned their decision that was made on August 30, 1978.

(All of the information above was obtained from the book "The First National Bank Story", written by Dr. Stephen Szmrecsanyi, which was published in 1996.)

[edit] See also

• FNBO Direct
• First National of Nebraska

[edit] External links

• First National Bank of Omaha
• FNBO Direct
• First National Merchant Solutions
• First National of Nebraska
• First National Bank Southwest
• Mills County Bank-new bank acquired by First National Bank of Omaha
• Scooter's Coffeehouse First ever partnership with First National Bank

[edit] References