Union Federal Bank: Indiana-owned since 1887.

• Author: Beck, Bill
• Position: Centennial Business

When Union Federal Bank first opened its doors in 1887, Indianapolis was a blossoming city, boasting a vibrant economy toward the turn of the century.

The introduction of electricity to Indianapolis in the mid-1890s had a profoundly positive impact on Indianapolis commerce. The electrified street railway system, known as the Interurban, expanded the city's boundaries after its arrival on January 1, 1900. Indianapolis acquired the reputation of being the "Crossroads of America" with its network of steam railroads and growing interurban system.

Union Federal Bank took advantage of Indianapolis' budding economy when the bank began its operation as the Indianola Building and Loan Association on West Washington Street in 1887. Its success has led it to become one of the few remaining Indiana-owned and -operated banks remaining in Indianapolis. In the early days, Union Federal's predecessor wrote home mortgages for working-class families in the Hoosier capital city.

In 1937, as Indianapolis was slowly recovering from the Great Depression, the Indianola Building and Loan Association was converted into a federal savings and loan association and moved its headquarters to East Market Street. The institution had withstood the toughest economic downturn in American history and soon thereafter experienced rapid growth. Another East Market Street location was opened in 1941 in response to the wartime development boom.

With the end of World War II, consumers who had little to spend their money on during the war found themselves able to afford automobiles, appliances and other consumer durables. Banks then began to get into the consumer installment-loan business. Union Federal opened Indianapolis' first savings and loan branch in 1948 on East Maple Road, now East 38th Street.

In 1959, Union Federal merged with Colonial Savings and Loan Association. The bank opened its new merged facility in 1964 on the corner of Pennsylvania and Market streets, which still houses Union Federal's main branch and much of its management and back-office operations.

Mortgage banking operations expanded significantly in 1984 when Union Federal was acquired by the principals of Waterfield Mortgage Co., which is headquartered in Fort Wayne. Union Federal then became a leader in home financing. The institution extensively renovated its downtown office in 1985 by adding a reflective glass exterior and new modular workstations.

In 1986, Union Federal was cited by American Banker...