The Merchants National Bank was founded by New Albany businessmen Jacob Hangary and Robert McCord. This structure was built in 1869 on the former site of an 1830 bank. The distinctive stonework on the building's south facade was completed by Robert Emery of New Albany.

The building was extensively remodeled in 1905 - including moving the entrance to ground level rather than up several steps, as seen in the photo below - and restored in the late 1970s. In 1907, bank officer Jacob Hangary Fawcett was killed in an attempted hold-up at the bank.