The Bank of the State of Indiana — the successor branch

1858 – 1864

A new state bank: As the old state bank's charter ran out, Indiana chartered a successor, the Bank of the State of Indiana — a privately owned institution built on the same branch plan. The South Bend branch's charter was obtained on 3 March 1855, three years before it was needed, with capital of $150,000, and when the old branch closed in 1858 the new one took its place in the same banking room at Michigan and Colfax. Its officers joined the old bank's men to the new: John Brownfield was president; Horatio Chapin, the first branch's manager, was cashier; and the teller was John T. Lindsey, who would carry the thread further than any of them — he had been the state-bank branch's teller from 1856, and in 1863 he became the first cashier of the First National Bank.

The end: The Bank of the State of Indiana's South Bend branch ran from 1858 to 1864. The branch system itself was killed nationally: Congress in 1865 laid a ten percent federal tax on the notes of state banks, which destroyed the profit in state-bank currency, and Indiana's second state bank wound up its branches in the middle 1860s. South Bend's banking passed at that point to the new national system — and the First National Bank, opened in November 1863 while the state branch still had a year to run, was already waiting to receive it.

Sources:

1. Timothy E. Howard, A History of St. Joseph County, Indiana (1907), vol. 1, §16, "Banks" — the charter obtained 3 March 1855, capital $150,000, the run of 1858–1864, and the officers Brownfield, Chapin and Lindsey.
2. C. C. Chapman & Co., History of St. Joseph County, Indiana (1880) — John T. Lindsey as the state-bank branch's teller from 1856, the link carried into the First National entry below.
3. The standard record of the federal ten percent tax on state bank notes (Act of 3 March 1865) and the winding-up of the Bank of the State of Indiana's branch system.