National Bank of Detroit
| Company type | Public (as NBD Bancorp) |
|---|---|
| Industry | Banking and financial services |
| Founded | March 24, 1933 in Detroit, Michigan, United States |
| Founder | General Motors and Reconstruction Finance Corporation (RFC) |
| Defunct | December 1, 1995 |
| Fate | Merged with First National Bank of Chicago to form First Chicago NBD; later merged into Bank One, now part of JPMorgan Chase & Co. |
| Headquarters | Detroit , United States |
Area served | Midwestern United States; branches also in Ontario, Canada; offices in London, Tokyo, Frankfurt |
Key people | Charles T. Fisher Jr. (president 1938–1958), Verne G. Istock (chairman and CEO 1993–1995), Thomas H. Jeffs II (president from 1993) |
| Products | Banking services |
| Parent | NBD Bancorp (holding company from 1973) |
The National Bank of Detroit (NBD), which later adopted the name NBD Bank, primarily served the Midwestern region of the United States. In 1995, it merged with First National Bank of Chicago to form First Chicago NBD. Although NBD was technically the surviving entity, the headquarters was established in Chicago. Eventually, this combined institution was integrated into Bank One, leading to the retirement of the NBD brand. Presently, NBD's heritage is incorporated within JPMorgan Chase & Co.
History
NBD was created in Detroit in 1933 during a period marked by numerous bank collapses amid the Great Depression. The bank was initially founded with equal stakes held by General Motors and the Reconstruction Finance Corporation (RFC), a U.S. government agency. It officially opened its doors on March 24, 1933. Charles T. Fisher Jr., a member of the prominent automobile manufacturing family, assumed the presidency in 1938 and led until 1958, supported closely by vice-president Walter F. Truettner. By 1945, General Motors had divested its shares, and by 1947, RFC withdrew its participation.
Between 1959 and 1995, NBD's main office was located in what is now known as The Qube.
In September 1993, a leadership change occurred: Charles T. Fisher III stepped down from his role; Thomas H. Jeffs II took over as president, while Verne G. Istock became chairman and CEO.
The merger in 1995 with First National Bank of Chicago resulted in First Chicago NBD, headquartered in Chicago despite NBD being the legal survivor. This institution later combined with Bank One, which phased out the NBD name entirely. After Bank One was acquired by JPMorgan Chase & Co., most former NBD branches were rebranded under Chase by 2006.
NBD operated branches beyond Michigan, including locations in Toronto and Windsor, Ontario, along with international offices situated in London’s Finsbury Circus, Tokyo, and Frankfurt.
NBD Bancorp
Prior to the 1970s, Michigan's retail banks were generally restricted to operating branches only within their original counties, with few exceptions. However, in 1972, legislation permitted the creation of multibank holding companies. Seizing this opportunity, National Bank of Detroit established National Detroit Corporation on January 1, 1973, as its holding company and began trading on the New York Stock Exchange under the ticker symbol NBD. In 1981, this entity was renamed NBD Bancorp.
Michigan
National Detroit pursued an aggressive expansion strategy across Michigan through a series of acquisitions:
- November 1974: Purchased Grand Valley National Bank located in Grandville for $3.4 million. - September 1975: Completed acquisition of Bank of Commerce in Lansing for $3 million. - November 1978: Acquired First State Bank of Saginaw for $8.3 million. - Between 1978 and 1979: Added Peoples Bank and Trust (Alpena), Farmers and Merchants National Bank (Benton Harbor), and West Michigan Financial Corp. (Cadillac) to its portfolio for $11 million, $108 million in deposits, and $21.3 million respectively. - May 1981: Finalized purchase of National Ann Arbor Corp. for $29 million. - During 1980–81: Bought Roscommon State Bank for $9.9 million and Wolverine State Bank for $11.2 million. - August 1984: Obtained United Michigan Corp., based in Flint, for $77.8 million. - August 1985: Acquired Peoples Bank of Port Huron at a cost of $22 million. - June 1986: Took over Union Bancorp from Grand Rapids for $104 million; this added $1.03 billion in assets and expanded operations to 40 branches. - January 1987: Completed a $51 million acquisition of OmniBank in Wyandotte, which included Wyandotte Savings Bank with its network of 15 offices.
Besides these purchases, NBD Bancorp also absorbed deposits and assets from failed financial institutions such as National Bank & Trust Co. of Traverse City in 1984 and New Guaranty Federal Savings & Loan Association based in Taylor in 1990.
By the mid-1980s, NBD Bancorp had grown into Michigan’s largest financial organization with assets surpassing $16 billion and operated more than twenty banks alongside several non-bank subsidiaries throughout the state.
Indiana
NBD Bancorp ventured beyond Michigan for the first time in May 1985 by declaring its intention to acquire Midwest Commerce Corp. of Elkhart, pending the enactment of enabling legislation in Michigan. The transaction was completed in May 1986, valued at $61 million in stock.
In June 1991, NBD revealed plans to purchase Gainer Bank of Merrillville for $134 million in stock, a deal finalized the following January. Later that year, in December 1991, NBD announced the acquisition of Summcorp, headquartered in Fort Wayne and owner of Summit Bank along with four additional banks. This $350 million stock deal was concluded in July 1992.
March 1992 saw NBD announce the acquisition of INB Financial Corporation from Indianapolis, the largest bank holding company in Indiana with six subsidiaries including Indiana National Bank. The acquisition cost $876 million in stock and was completed by October 1992. This transaction established NBD as Indiana’s leading banking institution and brought Summit Bank and INB Banking Co. Northeast together under the NBD Indiana umbrella.
Illinois
NBD Bancorp entered the Illinois market by disclosing its plan in October 1986 to acquire USAmeribancs, based in Bannockburn and consisting of six suburban Chicago banks, for $250 million in stock. The deal was finalized a year later; USAmeribancs was rebranded as NBD Illinois Inc., and each bank adopted the NBD name along with its local designation.
In June 1987, NBD announced it would acquire State National Corp., located in Evanston, for $103 million paid partly in cash and stock. By March 1988, NBD had agreed to purchase Charter Bank Group Inc. from Northfield for $65 million in stock, completing this acquisition by September.
In March 1991, NBD declared a $205 million stock acquisition of FNW Bancorp based in Mount Prospect, which owned 17 banks. Three years later, in March 1994, it acquired Amerifed Financial Corporation from Joliet—owner of AmeriFed Federal Savings Bank with ten branches—for $149 million in stock. Following these acquisitions, NBD operated 51 branches throughout Illinois and maintained a total of 630 offices across Michigan, Indiana, Illinois, Ohio, and Florida.
January 1995 brought news of a $120 million stock purchase of Deerbank Corporation from Deerfield, which held Deerfield Federal Savings and Loan Association with fifteen branches; this transaction closed in July. This expansion positioned NBD as the sixth-largest bank within Illinois and the dominant institution across numerous suburban Chicago counties, though it did not hold a leading presence inside Chicago itself.
Florida
NBD Bancorp initiated its Florida operations in 1982 by founding the NBD Trust Company of Florida, N.A., originally located in West Palm Beach before relocating to North Palm Beach. In June 1990, it acquired assets and branches from the failed First Venice Savings & Loan Association based in Venice through the Resolution Trust Corporation, establishing NBD Bank, FSB. Subsequently, in October 1991, NBD Bancorp purchased Boca Raton’s First Fidelity Trust and integrated it into the North Palm Beach-based NBD Trust Company of Florida, N.A.
Ohio
NBD Bancorp extended into Ohio during December 1990 by acquiring assets and twenty-one branches from the failed Mid-America Federal Savings and Loan headquartered in Columbus via the Resolution Trust Corporation for $48 million. These locations were converted into full-service banking centers under the name NBD Ohio, Inc., comprising thirteen branches in Columbus and eight in Dayton. After expanding its Columbus offices to seventeen while maintaining eight Dayton locations, NBD decided to exit Ohio by selling all assets and branches of NBD Ohio to Fifth Third Bank in October 1995. This divestiture was finalized by February 1996 for $52 million.
Merger with First Chicago
On July 12, 1995, First Chicago Corporation and NBD Bancorp Inc. revealed plans for a $5.3 billion stock exchange merger. Shareholders of First Chicago were set to receive a 50.1% stake in the new entity, while NBD investors would hold 49.9%. Richard L. Thomas, serving as chairman and CEO of First Chicago, was designated to remain chairman until May 20, 1996, at which point Verne G. Istock, NBD’s chairman, would take over both roles as chairman and CEO.
The transaction finalized on December 1, 1995, resulting in the creation of First Chicago NBD Corporation, which commenced trading on the New York Stock Exchange under the ticker "FCN". Customer impact was generally limited, except in suburban Chicago where branch redundancies prompted the closure of 15 former NBD locations and 9 from First Chicago. The remaining NBD branches were rebranded to carry the First Chicago name. Branches located outside Illinois retained their original NBD branding.
In February 1996, First Chicago NBD divested its Ohio-based NBD offices by selling them to Fifth Third Bancorp.