National Bank of Detroit

The National Bank of Detroit, commonly known as NBD, was a Detroit-based American bank established in 1933 during the banking crisis of the Great Depression. It was created with support from the Reconstruction Finance Corporation, a federal agency formed to stabilize financial institutions, and initially had equal ownership by General Motors and the U.S. government through the RFC. NBD opened for business on March 24, 1933, at a time when widespread bank failures had severely weakened confidence in the American financial system. The bank developed close ties to Detroit’s industrial economy, particularly the automobile sector, while gradually building a broader commercial and retail banking franchise. Charles T. Fisher Jr., a member of the Fisher automobile-body manufacturing family, became a director and was appointed president in 1938. He remained in that role until his death in 1958. General Motors had disposed of its ownership by 1945, and the RFC had ended its involvement by 1947, leaving NBD to operate as an independent commercial bank. From 1959 through 1995, the institution was headquartered in the National Bank of Detroit Building, now known as The Qube. For much of its early existence, Michigan banking law constrained branch expansion across county lines. Regulatory changes in the 1970s allowed multibank holding companies, and NBD responded by creating National Detroit Corporation on January 1, 1973. The holding company subsequently listed its shares on the New York Stock Exchange under the symbol NBD and was renamed NBD Bancorp in 1981. NBD Bancorp used acquisitions to transform the bank from a Detroit-area institution into a major Midwestern banking group. Its expansion included banks and bank holding companies in Michigan, Indiana, Illinois, Florida, and Ohio. The organization also acquired selected assets and offices from failed banks and savings and loan institutions during the financial-sector difficulties of the 1980s and early 1990s. By the mid-1990s, its network extended across several states and included hundreds of offices. NBD also maintained international offices or branches in Toronto, Windsor, London, Tokyo, and Frankfurt, although its principal business remained concentrated in the American Midwest. In 1995, NBD Bancorp agreed to combine with First Chicago Corporation in a stock transaction valued at approximately $5.3 billion at announcement. The resulting company, First Chicago NBD Corporation, began operating on December 1, 1995, and traded on the New York Stock Exchange under the symbol FCN. Although NBD was the nominal surviving institution, the combined organization was headquartered in Chicago and adopted the First Chicago NBD name. Overlapping branches in the Chicago suburbs were consolidated, while many NBD locations outside Illinois initially continued operating with limited visible change. First Chicago NBD later merged with Bank One Corporation. The transaction eliminated the NBD name in 1999, ending the brand as an independent banking identity. Bank One was acquired by JPMorgan Chase in 2004, and former NBD operations are now part of JPMorgan Chase. Most branches that once carried the NBD name subsequently adopted the Chase brand. NBD is therefore a defunct bank brand whose institutional legacy survives within the JPMorgan Chase organization.

National Bank of Detroit was founded in 1933 amid the severe financial disruption of the Great Depression. Its formation was encouraged by the Reconstruction Finance Corporation, which sought to support the banking system during a period of widespread failures. General Motors and the RFC initially held equal interests in the new institution. NBD opened on March 24, 1933, and became closely associated with Detroit’s industrial and automotive economy. Charles T. Fisher Jr., from the Fisher automobile-body manufacturing family, joined the bank’s leadership as a director and became president in 1938. He served until his death in 1958, with Walter F. Truettner serving as vice president. The original public-private ownership structure gradually disappeared: General Motors divested its bank stock by 1945, and the RFC ended its involvement by 1947. NBD thereafter developed as an independent commercial bank. Between 1959 and 1995, its headquarters was the National Bank of Detroit Building, now called The Qube. Michigan banking restrictions originally limited the ability of banks to establish branches outside their home counties. Legislative changes beginning in 1972 permitted multibank holding companies, allowing banks to expand through affiliated institutions. NBD formed National Detroit Corporation on January 1, 1973. The holding company listed on the New York Stock Exchange under the symbol NBD and changed its name to NBD Bancorp in 1981. The holding company pursued an extensive acquisition program. In Michigan it acquired or absorbed institutions including Grand Valley National Bank, Bank of Commerce, First State Bank of Saginaw, Peoples Bank and Trust of Alpena, Farmers and Merchants National Bank, West Michigan Financial, National Ann Arbor, Roscommon State Bank, Wolverine State Bank, Pontiac State Bank, United Michigan, Peoples Bank of Port Huron, Union Bancorp, and OmniBank. It also acquired deposits or assets from failed institutions, including National Bank & Trust Company of Traverse City and New Guaranty Federal Savings & Loan Association. NBD expanded beyond Michigan during the 1980s and 1990s. Its first major out-of-state move was into Indiana through the acquisition of Midwest Commerce Corporation. It later acquired Gainer Bank, Summcorp, and INB Financial Corporation, the parent of Indiana National Bank. In Illinois, NBD acquired USAmeribancs, State National Corporation, Charter Bank Group, FNW Bancorp, AmeriFed Financial Corporation, and Deerbank Corporation, creating a substantial suburban Chicago presence. In Florida, it operated NBD Trust Company of Florida and acquired assets from First Venice Savings & Loan, while in Ohio it acquired Mid-America Federal Savings and Loan’s assets and offices before selling the Ohio operation to Fifth Third Bank in 1995. NBD also maintained an international presence, with offices or branches in Toronto, Windsor, London, Tokyo, and Frankfurt. Nevertheless, the bank’s core identity remained that of a Midwestern regional institution serving businesses, consumers, and communities across the Great Lakes region. In July 1995, NBD Bancorp and First Chicago Corporation announced a stock merger valued at approximately $5.3 billion. The transaction closed on December 1, 1995, creating First Chicago NBD Corporation. First Chicago shareholders held a narrow majority of the combined company, while NBD shareholders held the remainder. The combined company was headquartered in Chicago and traded under the symbol FCN. Branch overlap in suburban Chicago led to the closure of 15 former NBD offices and nine former First Chicago offices, while many NBD branches elsewhere initially retained their existing operations. First Chicago NBD subsequently combined with Bank One, and the NBD name was discontinued in 1999. Bank One was acquired by JPMorgan Chase in 2004. Former NBD assets and branches consequently became part of JPMorgan Chase, with most surviving branches eventually operating under the Chase name.

• 2004

  Former NBD operations enter JPMorgan Chase

  [1]National Bank of Detroiten.wikipedia.org

  JPMorgan Chase acquired Bank One, the successor organization to First Chicago NBD.

• 1999

  NBD brand discontinued

  [1]National Bank of Detroiten.wikipedia.org

  The NBD name disappeared following the combination of First Chicago NBD and Bank One.

• 1995

  Merger with First Chicago completed

  [1]National Bank of Detroiten.wikipedia.org

  First Chicago NBD Corporation was formed on December 1.

• 1992

  Indiana National Bank acquisition completed

  [1]National Bank of Detroiten.wikipedia.org

  NBD completed its acquisition of INB Financial Corporation and its subsidiary banks, including Indiana National Bank.

• 1981

  Holding company renamed NBD Bancorp

  [1]National Bank of Detroiten.wikipedia.org

  National Detroit Corporation adopted the NBD Bancorp name.

• 1973

  National Detroit Corporation established

  [1]National Bank of Detroiten.wikipedia.org

  NBD formed a multibank holding company after Michigan permitted this organizational structure.

• 1947

  RFC involvement ends

  [1]National Bank of Detroiten.wikipedia.org

  The Reconstruction Finance Corporation had ended its involvement in the bank.

• 1945

  General Motors exits ownership

  [1]National Bank of Detroiten.wikipedia.org

  General Motors had divested its ownership of NBD stock by this year.

• 1938

  Charles T. Fisher Jr. becomes president

  [1]National Bank of Detroiten.wikipedia.org

  Charles T. Fisher Jr. became president after serving as a director.

• 1933

  Bank founded and opened

  [1]National Bank of Detroiten.wikipedia.org

  National Bank of Detroit was established during the Great Depression and opened for business on March 24.

A Detroit-rooted full-service bank positioned around commercial banking, industrial relationships, regional branch expansion, and eventual scale across the Midwest.

• Business banking · 1933

  Commercial banking

  NBD’s core franchise served commercial customers in Detroit and across the Midwest. Its banking network supported business deposits, lending, payments, and other conventional banking needs. The institution’s origins and relationships were closely connected to Detroit’s industrial economy, while its later holding-company structure allowed these services to be delivered through regional subsidiary banks.

• Consumer banking

  Retail and consumer banking

  Through its branch network and acquired banks, NBD offered local customers deposit accounts and general branch-banking services. The retail business expanded as NBD entered additional Michigan, Indiana, Illinois, Florida, and Ohio markets, although individual products and account terms varied among subsidiaries and operating periods.

• Trust and fiduciary services · 1982

  Trust services

  NBD maintained trust operations, including NBD Trust Company of Florida, established in West Palm Beach and later relocated to North Palm Beach. These activities complemented the bank’s commercial and retail operations with fiduciary and related financial services.

• 1995

  Merge with First Chicago CorporationM&A

  Background

  NBD Bancorp sought to combine with First Chicago Corporation to create a larger regional banking organization.

  Action taken

  The companies announced a stock merger valued at approximately $5.3 billion and completed it on December 1, creating First Chicago NBD Corporation.

  Aftermath

  The combined company was based in Chicago, consolidated overlapping suburban branches, and later became part of Bank One. The NBD name was discontinued in 1999.

  Announced transaction value. $5.3 billion (Announcement in 1995)

  Source

• 1995

  Exit Ohio operationsStrategy

  Background

  NBD had entered Ohio by acquiring failed savings-and-loan assets and offices, but subsequently decided to leave the state.

  Action taken

  NBD sold all NBD Ohio assets and offices to Fifth Third Bank.

  Aftermath

  The divestiture was finalized in February 1996 for $52 million, ending NBD’s Ohio operating presence.

  Divestiture consideration. $52 million (Finalized February 1996)

  Source

• 1973

  Create a multibank holding companyStrategy

  Background

  Michigan banking-law changes began allowing multibank holding companies, creating a route for expansion beyond NBD’s original local branch constraints.

  Action taken

  NBD formed National Detroit Corporation on January 1, 1973, later renamed NBD Bancorp.

  Aftermath

  The structure enabled a prolonged acquisition program across Michigan and other Midwestern states.

  Source

1. 1National Bank of Detroiten.wikipedia.org