A Brief History of Barnett Bank of Florida

By Joe Marzo

Introduction

Barnett Bank, once a cornerstone of Florida's financial landscape, traces its roots back to 1877, when it began as a small, family-run operation in Jacksonville. Over the course of more than a century, the bank grew from a modest local institution into the largest bank in Florida, earning a reputation for its conservative management, community engagement, and innovative financial services. As Florida underwent dramatic growth, from post-

Reconstruction recovery to a booming modern state, Barnett Bank played a crucial role in supporting that expansion. Its history is intertwined with the state’s economic development, marked by resilience through financial crises, aggressive growth during the post-war era, and ultimately, its acquisition by NationsBank in one of the largest banking mergers in U.S. history. Despite its eventual absorption into Bank of America, Barnett Bank remains a symbol of stability, progress, and civic responsibility in Florida's banking history.

Founding and Early Years (1877-1900s)

William Boyd Barnett, a banker from Kansas, moved to Jacksonville, Florida, in 1877 after the post-Civil War economy provided fertile ground for business opportunities. Jacksonville was recovering from the devastation of war and Reconstruction, and Barnett saw the potential in the rebuilding efforts. He founded the Bank of Jacksonville with an initial capitalization of $43,000, a modest sum but enough to begin building a reputable institution.

In the early years, the bank served the local community, supporting businesses engaged in agriculture, lumber, and trade through Jacksonville’s port. William Barnett’s conservative approach to banking emphasized security and trust, which helped the bank build a solid reputation. His two sons, Bion Barnett and William D. Barnett Jr., eventually joined the bank, and Bion’s sharp financial mind would play a pivotal role in its future expansion.

Weathering Financial Crises

Barnett Bank survived its first major test during the Panic of 1893, a nationwide economic depression that led to widespread bank failures. Barnett's cautious lending policies helped insulate the bank from the worst effects, bolstering its reputation as a safe and secure place to keep money.

In 1888, the bank was renamed Barnett Bank in honor of the family’s leadership. By the turn of the century, Barnett Bank was one of the largest banks in Jacksonville, which had become a key economic hub for Florida.

Early Expansion (1900s-1940s)

As the bank entered the 20th century, Florida’s population began to grow rapidly, spurred by real estate booms, tourism, and agriculture. Barnett Bank capitalized on this growth, expanding its operations beyond Jacksonville. By acquiring smaller banks across Florida, Barnett began creating a statewide network of branches, making it one of the first banks in the state to establish such an extensive footprint.

Florida’s land boom in the 1920s brought even more business to Barnett Bank, but the subsequent bust in the late 1920s, followed by the Great Depression, tested its resilience again. Barnett Bank survived these challenges by continuing its conservative lending policies and avoiding speculative real estate investments that sank many other banks.

Post-War Boom and Aggressive Growth (1940s-1970s)

After World War II, Florida’s economy experienced a surge due to returning veterans, a rise in tourism, and the migration of retirees from northern states. Barnett Bank took advantage of this growth, expanding into new markets and regions within Florida. During the 1950s and 1960s, the bank made strategic acquisitions, absorbing smaller, often family-owned banks across the state. This period of expansion saw Barnett grow into the largest bank in

Florida, with branches in major cities like Miami, Tampa, and Orlando.

Under the leadership of Hugh Jones and later, Charles Rice, Barnett Bank embraced modern banking practices. It expanded its services to include consumer banking, mortgage lending, and commercial banking, making it a key player in Florida's post-war development boom.

In the 1960s, Barnett Bank introduced innovative financial services, such as offering personal loans and expanding credit card services, making it more accessible to individual customers. This helped establish Barnett as a bank that served both businesses and everyday Floridians.

Leading the Market in Florida (1980s)

By the 1980s, Barnett Bank had firmly established itself as a powerhouse in Florida banking. It was recognized for its stability, its commitment to local communities, and its innovative financial services. In a period marked by volatile interest rates and banking deregulation, Barnett remained a stalwart institution, avoiding the pitfalls that caused many other banks to falter.

The bank continued to acquire smaller regional banks, extending its influence not only throughout Florida but also into neighboring states like Georgia and Alabama. At its height, Barnett Bank was the largest commercial bank headquartered in Florida, with assets totaling around $40 billion. It had more than 600 branches and 23,000 employees by the early 1990s, serving millions of customers.

Community Engagement and Philanthropy

Throughout its history, Barnett Bank maintained a strong commitment to community service. The Barnett family and the bank itself were involved in numerous philanthropic efforts, contributing to the growth of cultural, educational, and health institutions across Florida. They supported local schools, hospitals, and charities, cementing their legacy not just as bankers but as key contributors to Florida’s civic and social landscape.

The NationsBank Merger (1997)

As the banking industry consolidated in the 1990s, even regional powerhouses like Barnett Bank became targets for acquisition. Barnett’s profitability, large customer base, and strong market share made it a desirable acquisition. In 1997, Barnett Bank was bought by NationsBank for $15.5 billion in what was, at the time, the largest bank acquisition in U.S. history.

The merger was a reflection of the broader trend of consolidation in the banking industry, driven by deregulation and the increasing costs of technological upgrades required to stay competitive. NationsBank, seeking to expand its presence in the Southeast, saw Barnett Bank as a perfect fit.

Following the merger, NationsBank itself merged with Bank of America in 1998, effectively dissolving the Barnett Bank brand. While the name disappeared, Barnett’s legacy continued through Bank of America’s operations, as it absorbed the branches, customers, and infrastructure that Barnett had built.

Legacy

The Barnett family’s influence on Florida’s financial sector remains significant even after the bank’s dissolution. The Barnett Tower in Jacksonville, once the headquarters of Barnett Bank, stands as a symbol of the bank’s prominence. Barnett Bank played a crucial role in shaping Florida’s modern financial landscape, especially during its expansion period when it was involved in virtually every aspect of the state’s economic growth.

Today, although the Barnett Bank name no longer exists, it is remembered as one of Florida’s greatest banking institutions, known for its sound financial practices, community involvement, and pivotal role in the state's history.

Barnett Bank’s story is a key chapter in the history of Florida, representing over 120 years of growth, challenges, and transformation in the state’s economy and community development.