The National Exchange Bank of Lexington was established in August 1878, with the nationalization of J. B. Wilgus & Company. The bank was granted by the Comptroller charter number 2393, with initial capital of one hundred thousand dollars. The National Exchange was first located in the Wilgus Building on the north side of Main Street, between Mill and Broadway. James P. Metcalfe was its first President; John L. Barkley, Vice President and Captain John B. Wilgus, Cashier.
National Bank Note, Series of 1875
Chase National Bank in New York was National Exchange Bank's principal correspondent in that city. Chase National is now part of Chase Manhattan, who continues to serve as one of First Security's correspondent banks. In September 1879, the Board of Directors declared a four percent, semi-annual dividend.
By 1881, Mr. Metcalfe was replaced by Captain John B. Wilgus as President. On May 14, 1881, ten shares of stock traded for one hundred thirty one dollars per share. After Captain Wilgus's death in January 1887, Dr. David Bennett was selected President.
National Bank Note, Brown Back, Series of 1882
In December 1891, shortages were found by the Federal Marshals during a surprise inspection of the bank's records. In January 1892, the Grand Jury in Frankfort charged the bank's cashier, William Bright, and two other employees (W. H. Chepper and Frank Gilmore, Assistant Cashier) with embezzlement. James E. McFarland was appointed Cashier to replace William Bright.
The National Exchange Bank relocated in September 1895 to the north side of Main Street, between Mill Street and Cheapside (adjacent to the City National Bank Building).
In 1902, Christopher D. Chenault of Richmond, Kentucky became President. Shortly afterwards, the bank under Mr. Chenault's direction introduced a number of innovations to Lexington banking. During June 1902, it established a "ladies" department, with a private entrance, so that the female customers would not be "crowded.” Freshly minted banknotes and coins were used to avoid soiling the white gloves used by women of the time. The Lexington Herald described the department as having "private teller's windows, private desks and chairs, entirely separate from the rest of the bank office.”
On November 29, 1902, a Saving Department was opened, the first by a commercial bank in Lexington. Interest was three percent annually.
Advertisement, 1903
By 1904, William C. Smith became President. In March 1904, the bank's building was sold to John G. Stoll and the National Exchange relocated on Cheapside to the old Fayette Safety Vault Building (where it remained until the merger with the Central Bank).
In January 1906, the bank's directors approved the consolidation with the Central Bank, forming the Lexington Banking and Trust Company.
