Banking Environment Commentary

Strength in Uncertain Times

Much has been written regarding the recent failure of several banks and concerns about the health of other financial institutions both here and abroad. Clearly these events can create concern among depositors at any financial institution. While these concerns are understandable, there is no comparison between The National Bank of Indianapolis and the failed banks.

Unlike The National Bank of Indianapolis, the failed banks operated with very niche business models that differed from more traditional banks, which typically have highly diversified client and deposit bases. They rapidly expanded the size of their banks by accepting more risk in their lending and investments. Their failures were primarily the result of poor business decisions.

Since its founding in 1993, The National Bank of Indianapolis has been committed to the basic tenets of sound banking principles:

  • Strong Capital Base
  • Highest Credit Quality Standards
  • Safe, Profitable Growth

Adherence to these tenets, along with a very diversified client and deposit base, has resulted in continuous profitability and conservative growth for our Bank. Two indicators of the strength of the Bank are the amount of liquidity available to meet client and bank needs and the sufficiency of the Bank’s capital. Below are key measurements for each of these metrics.


  • Loan to Deposit ratio less than 65%, well below industry averages of 85% or more
  • Immediate cash resources more than $750 million
  • Total sources of liquidity more than $1.1 billion compared to deposits of $2.5 billion as of February 28, 2023

Compared to its peers, The National Bank of Indianapolis ranks in the top 10% in liquidity!

Capital as of December 31, 2022

Bank Regulatory Minimums
Leverage Capital Ratio 8.04% 4.00%
Tier 1 Risk-Based Capital Ratio 12.20% 8.50%
Total Risk-Based Capital Ratio 13.25% 10.50%

During the Financial Crisis of 2008 - 2009, The National Bank of Indianapolis continued to support its clients without the benefit of government support. The Bank remains committed to maintaining a conservative balance sheet and continued profitability allowing us to weather any type of financial condition and to meet the needs of our clients and communities.

Across all Bank operations, and as a fiduciary, our specialists provide highly personalized services, with a long-term, conservative approach to help clients protect what they’ve built. Whether it is for personal, private, commercial, nonprofit or wealth management services, The National Bank of Indianapolis works with our clients to deliver proven financial solutions to meet their specific needs. That is our difference.