National City Corp. has emerged largely unscathed from the integration of two recent acquisitions, chairman David A. Daberko said.
The $83 billion-asset banking company completed the assimilation of Fort Wayne (Ind.) National Corp. last month, merging seven computer systems into its own. There were relatively few glitches, National City said.
The integration in late October of First of America Bank Corp. of Kalamazoo, Mich., prompted about 300 customer complaints. These Michigan customers were unable to use their debit cards for purchases and, in some cases, could not withdraw money at automated teller machines. Officials said the problem has been resolved. Mr. Daberko dismissed the complaints as a small number relative to his company's base of 2.5 million Michigan customers.
"One of the points here is, even if we took two years there would be some small glitches," Mr. Daberko said.
He said the percentage of former First of America customers who complained was smaller than in past deals.
"Relative to the size of companies, we've had fewer problems with First of America than other mergers we've done before," Mr. Daberko said.
National City contrasts with other big banking companies, which have decided to take their time merging computer systems. Norwest Corp. and Wells Fargo & Co., for instance, plan to take three years to complete their post-merger integration.
Analysts said it is probably advantageous for National City to have worked quickly. "National City never had the problems Wells Fargo had," said James Schutz, an analyst at ABN Amro Inc., referring to the San Francisco banking company's difficulties integrating First Interstate Bancorp.
"There is a very definite philosophy," Mr. Daberko said. "There are three things that matter the most here, and they are speed, speed, speed."
Mr. Daberko said it is important to get through mergers quickly to minimize disruptions, particularly those involving employees. "The real enemy of a successful integration is uncertainty," he said.
