Indiana bank completes charter conversion

Northwestern Financial Review, Sep 1, 2001

The Federal Reserve Board has approved First Indiana Corp.'s application to become a national bank holding company. The Office of the Comptroller of the Currency has approved the conversion of First Indiana Bank from a federal savings bank to a national bank.

The charter conversion is the final step in First Indiana's transformation from a thrift to a commercial bank, said Marni McKinney, vice chairman, chief executive officer and daughter of Chairman Robert McKinney, who together own 40 percent of the company.

Current laws governing savings banks generally limit First Indiana's business loans outstanding to 10 percent of assets, McKinney said. National bank regulations contain no such restrictions.

"Adopting a national bank charter enables us to expand our business," said Marni McKinney"In addition, the recent merger of The Somerset Group with First Indiana makes tax planning, wealth management and consulting available to our business clients, owners and employees. A national bank charter will help First Indiana and Somerset join forces to create comprehensive financial solutions for our clients."

The Somerset Group provides banking, insurance and Internet services. Operating through subsidiaries, the company provides investment advice, tax planning, health care consulting, and insurance and investor products. First Indiana's primary business is making commercial loans, residential construction loans and mortgage loans.

The $2.1 billion bank, the largest headquartered in Indianapolis, has adopted the name "First Indiana Bank N.A." Its charter conversion will not instigate employee or operational changes in any of its 26 Indiana branches.