INB Financial Corporation

INB Financial Corporation was an Indiana bank holding company headquartered in Indianapolis. It developed from Indiana National Bank, an institution whose lineage reached back to the Second State Bank of Indiana, chartered in the 1830s. For much of the twentieth century, Indiana National Bank was one of the three dominant Indianapolis banks, alongside American Fletcher National Bank and Merchants National Bank. Its business centered on commercial banking, retail deposits, lending, branch banking, and the ownership and coordination of affiliated banks across Indiana. The holding company was created in 1969 as Indiana National Corporation. Its formation allowed Indiana National Bank to acquire other banks and related financial businesses while maintaining a common corporate structure. The company expanded particularly rapidly after Indiana changed its banking laws in 1985. Before then, restrictions limited bank branching across county lines and generally prevented a bank holding company from owning banks outside its home county. The amended rules permitted broader statewide acquisitions, subject to a limit on the proportion of Indiana deposits controlled by a holding company. Indiana National Corporation used the regulatory change to build a statewide network. In 1985 it acquired Lafayette National Bank, Fidelity Bank of Indiana, Union Bank & Trust Company, Lowell National Bank, and the deposits and branches of the failed Allen County Bank & Trust Company. In 1986 it added CommerceAmerica Corporation, which owned banks in Jeffersonville and Corydon. The company later entered Monroe County through the acquisition of Morgan County Bancorp and used that platform to establish branches in Bloomington. Further acquisitions between 1989 and 1991 extended the network into Bedford, Chesterton, Evansville, Columbia City, and Salem. In April 1989, the corporation adopted the INB identity throughout its organization in an effort to create a unified statewide brand. Indiana National Corporation became INB Financial Corporation, Indiana National Bank became INB National Bank, and several acquired institutions were renamed as INB banking companies. The rebranding represented a shift from a flagship-bank model, in which acquired institutions retained their local identities, toward a coordinated statewide banking system. At the time of its sale, INB Financial was described as the largest Indiana-based bank holding company and its flagship bank was the largest Indiana-owned bank. In March 1992, Michigan-based NBD Bancorp announced an agreement to acquire the company in a stock transaction valued at $876 million. The transaction closed in October 1992. INB Financial was renamed NBD Indiana, and its separate subsidiary banks were consolidated into a single statewide NBD Bank headquartered in Indianapolis. The INB Financial Corporation brand therefore ended as an independent banking group following the merger.

INB Financial Corporation's institutional history began with Indiana National Bank of Indianapolis, whose predecessors included the Indianapolis branch of the Second State Bank of Indiana. The Second State Bank was chartered in the late 1830s for a 25-year term and was followed by the Third State Bank of Indiana. During the Civil War era, federal banking legislation displaced the earlier state banking structure, and Indiana National Bank emerged as a national banking institution in Indianapolis. The bank became an important Indianapolis financial institution. In 1895, its Washington Street building was destroyed by fire. Although the vault fell from the first floor into the basement, the contents were reportedly preserved. The bank subsequently built a Neoclassical headquarters at the intersection of Pennsylvania Street and Virginia Avenue. Designed by D. A. Bohlen and completed in 1896, the building opened in January 1897. It was later expanded in 1913, 1935, and 1950. The site reflected the bank's civic prominence and long-standing role in the city's commercial life. By the late 1960s, the bank required additional office capacity. Construction of the Indiana National Bank Tower at Ohio and Pennsylvania streets began in that period, and the bank moved into the tower in 1970. The earlier Neoclassical building was later sold and demolished, although the Mercury and Two Allegorical Figures sculpture associated with its entrance was relocated to a nearby plaza. Indiana National Corporation was formed in 1969 as a holding company. The structure enabled Indiana National Bank to acquire other banks and financial businesses while managing them through a parent organization. Its most significant growth phase followed Indiana's relaxation of banking restrictions in 1985. Prior rules had generally confined bank branching and ownership to individual counties. The revised framework allowed holding companies to purchase banks across the state, although a deposit-concentration ceiling remained. The company quickly used the new rules to establish a statewide footprint. It acquired Lafayette National Bank, Fidelity Bank of Indiana, Union Bank & Trust Company, and Lowell National Bank in 1985. It also purchased the deposits and four branches of the failed Allen County Bank & Trust Company from the Federal Deposit Insurance Corporation. In 1986, the group acquired CommerceAmerica Corporation and its banking subsidiaries in Jeffersonville and Corydon. Expansion continued through a combination of acquisitions and new branch development. In 1988, Indiana National Corporation acquired Morgan County Bancorp and used the transaction to support entry into Bloomington, where it opened three branches in early 1989. In 1989, the corporation acquired Citizens Bancshares Corporation of Bedford. It later acquired Chesterton State Bank, Peoples Savings Bank of Evansville, Farmers Loan and Trust Company of Columbia City, and State Bank of Salem. These institutions were renamed under various INB Banking Company designations. The company adopted the INB brand in April 1989. Indiana National Corporation became INB Financial Corporation, Indiana National Bank became INB National Bank, and other subsidiaries were assigned INB names. The change sought to replace a collection of locally retained bank identities with a unified statewide brand, while preserving the group's Indiana focus. By 1992, INB Financial was characterized as the largest Indiana-based bank holding company, with six subsidiary banks, and its flagship institution was the largest Indiana-owned bank. NBD Bancorp of Detroit agreed to acquire it for $876 million in stock. Completion occurred in October 1992. The former holding company became NBD Indiana, and its separate banks were combined into a single NBD Bank headquartered in Indianapolis. This transaction ended INB Financial Corporation's independent existence.

• 1992

  Acquired by NBD Bancorp

  [1]INB Financial Corporationen.wikipedia.org

  NBD Bancorp completed its acquisition of INB Financial Corporation, which became NBD Indiana.

• 1989

  INB brand introduced

  [1]INB Financial Corporationen.wikipedia.org

  The corporation renamed itself INB Financial Corporation and applied the INB identity across its banking subsidiaries.

• 1985

  Statewide acquisition program begins

  [1]INB Financial Corporationen.wikipedia.org

  Following changes to Indiana banking law, Indiana National Corporation began acquiring banks outside Marion County.

• 1970

  Bank moves into Indiana National Bank Tower

  [1]INB Financial Corporationen.wikipedia.org

  The bank moved into its new tower at Ohio and Pennsylvania streets in Indianapolis.

• 1969

  Indiana National Corporation is formed

  [1]INB Financial Corporationen.wikipedia.org

  Indiana National Bank established a holding company to facilitate acquisitions of banks and related financial businesses.

• 1897

  New Neoclassical headquarters opens

  [1]INB Financial Corporationen.wikipedia.org

  Indiana National Bank opened a new headquarters at Pennsylvania Street and Virginia Avenue in Indianapolis.

• 1895

  Indianapolis bank building destroyed by fire

  [1]INB Financial Corporationen.wikipedia.org

  The bank's Washington Street building was destroyed by fire, but its vault contents were reportedly undamaged.

• 1834

  Origins in the Second State Bank of Indiana

  [1]INB Financial Corporationen.wikipedia.org

  The institutional lineage later associated with Indiana National Bank can be traced to the Indianapolis branch of the Second State Bank of Indiana, chartered in the 1830s.

A major Indiana-based regional banking group that combined the heritage of Indianapolis's Indiana National Bank with an acquisition-led strategy for statewide expansion.

• Commercial and retail banking

  INB National Bank

  The principal banking subsidiary of INB Financial Corporation and successor to Indiana National Bank. It provided the group's core commercial and retail banking activities and formed the center of the company's Indianapolis and statewide branch network.

• Regional banking subsidiaries · 1989

  INB Banking Companies

  A group of regional banking subsidiaries created or renamed as INB expanded across Indiana. The network included businesses serving southwestern, northeastern, northwestern, and other Indiana markets, allowing the holding company to combine local deposits and lending operations under a common brand.

• Branch banking · 1985

  Statewide branch banking network

  INB's branch network grew through acquisitions and new offices. Its expansion included branches in Marion County, Allen County, Bloomington, and other Indiana communities, reflecting the company's strategy of becoming a statewide rather than solely Indianapolis-based bank.

• 1989INB statewide brand consolidation

  Indiana

  INB Financial Corporation introduced a unified INB identity for its holding company, principal bank, and acquired banking subsidiaries. The initiative was intended to create a consistent statewide presence after years in which acquired banks retained their local names.

  Outcome. The acquired institutions were progressively renamed under INB designations until the group was absorbed by NBD Bancorp in 1992.

  Source

• 1992

  Sell the company to NBD BancorpM&A

  Background

  INB Financial had become the largest Indiana-based bank holding company, while the banking industry was undergoing consolidation across state and regional markets.

  Action taken

  NBD Bancorp agreed to acquire INB Financial Corporation in a stock transaction and completed the transaction in October.

  Aftermath

  INB Financial became NBD Indiana, and its separate banks were merged into a single statewide NBD Bank headquartered in Indianapolis.

  Acquisition value. $876 million in stock (1992)

  Source

• 1989

  Adopt the INB corporate identityStrategy

  Background

  The expanding company operated banks under multiple local identities, limiting the visibility of a common statewide organization.

  Action taken

  Indiana National Corporation changed its name to INB Financial Corporation and renamed its principal and acquired banks under the INB brand.

  Aftermath

  The group presented itself as a unified Indiana banking organization until its acquisition by NBD Bancorp.

  Source

• 1985

  Begin cross-county bank acquisitionsM&A

  Background

  Indiana banking law was changed to permit broader bank ownership across county lines, subject to a statewide deposit ceiling.

  Action taken

  Indiana National Corporation announced and completed acquisitions of several banks, including Lafayette National Bank, Fidelity Bank of Indiana, Union Bank & Trust Company, and Lowell National Bank.

  Aftermath

  The company expanded beyond Marion County and established the foundation for a statewide branch and subsidiary network.

  Acquisition consideration. $29.8 million for Lafayette National Bank; $11.5 million for Fidelity Bank; $12.9 million for Union Bank & Trust Company; $14.8 million for Lowell National Bank (1985)

  Source

• 1969

  Create a bank holding companyStrategy

  Background

  Indiana National Bank needed a corporate structure through which it could acquire other banks and related financial businesses.

  Action taken

  The organization formed Indiana National Corporation as its holding company.

  Aftermath

  The holding-company structure supported the later acquisition program that transformed the institution into a statewide Indiana banking group.

  Source

1. 1INB Financial Corporationen.wikipedia.org