INB Financial Corporation
| Company type | Public |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | Indiana National Bank (formerly Second State Bank of Indiana) |
| Founded | 1834 |
| Fate | Acquired by NBD Bancorp in 1992 |
| Headquarters | Indianapolis , United States |
Area served | Indiana |
| Products | Banking services |
INB Financial Corporation was a statewide bank holding company headquartered in Indianapolis and recognized as the largest financial institution based in Indiana until it was acquired in 1992 by Michigan-headquartered NBD Bancorp. Its main operating entity, INB National Bank (previously known as Indiana National Bank), traced its origins back to the Second State Bank of Indiana, established in 1834.
Between the mid-1950s and late 1980s, the three dominant banks in Indianapolis were Indiana National Bank, American Fletcher National Bank, and Merchants National Bank. Correspondingly, their parent holding companies—Indiana National (INB Financial) Corporation, American Fletcher Corporation, and Merchants National Corporation—ranked as the top three bank holding entities across the state.
History
The institution originated as the Indianapolis branch of the Second State Bank of Indiana, a prominent branch of the state-chartered bank founded in 1833. Following the enactment of the National Bank Act during the American Civil War, the Indiana National Bank of Indianapolis was established.
In 1895, a fire devastated the bank’s premises near Washington and Meridian Streets. Despite significant damage, the vault contents—including large quantities of gold, silver, and currency—remained unharmed. Subsequently, the board commissioned a new Neoclassical-style building at Pennsylvania Street and Virginia Avenue. Designed by D. A. Bohlen and Son and completed in 1896 at a cost of $140,000, this structure featured a colonnaded facade and an expansive stained glass skylight.
Further expansions included an addition on Virginia Avenue in 1913, a two-story extension built in 1935 replacing the Scottish Rite Cathedral on Pennsylvania Street, and a six-story vertical expansion added in 1950 costing $1 million.
By the 1960s, increasing demand for office space led to construction of the Indiana National Bank Tower at Ohio and Pennsylvania streets, which opened in 1970. The original Neoclassical building was sold to Jefferson National Life Insurance Company and replaced with a landscaped plaza showcasing Henry Saunders' Mercury and Two Allegorical Figures sculpture relocated to this site.
To enable acquisitions of other banks and financial institutions, Indiana National Bank formed Indiana National Corporation as its holding company in 1969, with Indiana National Bank serving as its primary subsidiary.
Expansion beyond Marion County
Prior to July 1, 1985, Indiana law prohibited banks from branching outside their home counties or owning banks beyond their holding company's county. A legislative change that year permitted limited statewide branching and acquisitions by bank holding companies, initially limiting control to 11% of total state deposits.
In May 1985, Indiana National Corporation began expanding beyond Marion County by announcing purchases of Lafayette National Bank (Lafayette), Union Bank & Trust Co. (Delphi), and Fidelity Bank of Indiana (Carmel) for approximately $54 million. This strategy positioned Indiana National as the state's largest bank holding company. The Lafayette acquisition finalized in November 1985 for $29.8 million; Fidelity Bank closed in December for $11.5 million; Union Bank also completed in December for $12.9 million.
In June 1985, Indiana National declared plans to acquire Lowell National Bancorp along with its subsidiary Lowell National Bank for $15.2 million; this transaction closed in November 1985.
November 1985 saw Indiana National purchase deposits and four branches from the failed Allen County Bank & Trust Company via FDIC receivership for $2 million, extending its branch network into Allen County.
In April 1986, acquisition of CommerceAmerica Corporation (Jeffersonville), which held assets totaling $446.1 million, was announced for $73.5 million in stock; this deal concluded in August 1986.
By late 1987, with restrictions preventing direct entry into Monroe County through branching laws, Indiana National acquired Morgan County Bancorp (Mooresville) in January 1988 for $4 million to gain access to Monroe County through neighboring Morgan County. This facilitated opening three branches in Bloomington by early 1989.
To support expansion beyond state borders and unify branding efforts, the corporation adopted the INB name in April 1989, consolidating all subsidiaries under this brand identity. Consequently, Indiana National Corporation was renamed INB Financial Corporation.
Following rebranding, INB Financial announced multiple acquisitions: Citizens Bancshares Corporation (Bedford) for $12.6 million in April 1989 (completed September); CSB Inc. (Chesterton) for $18.2 million in September 1989 (completed June 1990); Peoples Savings Bank (Evansville) announced February 1990 (completed November), later renamed INB Banking Company Southwest; FL&T Corporation (Columbia City) for $12 million announced June 1990 (completed January 1991); and Homestate Bancorp (Salem) for $6.1 million announced August 1990 (completed March 1991).
These calculated acquisitions broadened INB’s presence throughout key markets across Indiana, solidifying its status as the largest independent multi-bank holding company within the state with diversified regional operations and assets reaching into the billions.
NBD Indiana
In March 1992, NBD Bancorp, headquartered in Detroit, declared its purchase of INB Financial Corporation, the leading bank holding company in Indiana, along with its main entity, Indiana National Bank. The transaction, valued at $876 million in stock, was finalized by October 1992. After the merger, INB Financial was rebranded as NBD Indiana, merging all affiliated banks into a single statewide institution named NBD Bank, based in Indianapolis. This strategic consolidation enhanced NBD's footprint within Indiana and unified multiple regional banks under one unified brand.