Backhouse's Bank of Darlington (James & Jonathan Backhouse and Co., from 1798 Jonathan Backhouse and Co.) was founded in 1774 by James Backhouse (1720-1798), a wealthy Quaker flax dresser and linen manufacturer, and his sons Jonathan (1747-1826) and James (1757-1804).
Jonathan Backhouse succeeded his father as senior partner, and was in turn succeeded by his son, also named Jonathan (1779-1842), his grandson Edmund Backhouse, M.P. for Darlington, and his great-grandson Sir Jonathan Edmund Backhouse Bt.. Under Sir Jonathan's management Backhouse's Bank merged in 1896 with Gurney's Bank of Norwich and Barclays of London to form what is now Barclays Bank.
Originally James Backhouse offered banking services as a sideline to the linen business, before he established a separate banking business.
The bank expanded throughout County Durham as industry grew, becoming one of the strongest banks in the North of England.
In 1896, it merged with Barclay of London and Gurney's of Norwich. At the time, Backhouse had 20 branches, managed £3.3 million in deposits, with £250,000 capital and reserves.