A HISTORY OF THE State Exchange Bank BY MARCIA P. ADAMS
AS PRESENTED TO THE ANTIQUARIAN SOCIETY OF CULVER ON AUGUST 8, 1998.
An institution's chronological history can be as cold as stones that mark the dead. Personal stories of events that took place during the life of the institution are what impart warmth to the account and make it come live.
If I were to sum up the history of The State Exchange Bank, I would say it was an institution begun by one family that existed for its customers and built community trust and helped people toward financial security. An institution built of brick and stone with a foundation of honesty and love for one's fellowman was the bank that Good Will built.
We think of Will Osborn as the personification of the institution and he was that, but it would be unfair to tell about W.O. and leave out the many other facets of the bank and its people that made it the grand institution it was. So, bear with me. I'll not get every name in place nor every promotion and change listed, but I'll use some of Charlotte Jung's history, some of Bob Rust's historical facts and my own additions.
Clarence E. Bair with board member O.T. Goss
Charlotte Jung, Esther Bolinger, Bonnie Reed, and Wilma Snyder
the board of directors, including Lewis Overmyer, O.T. Goss, W.O. Osborn, W.L. Johnson, H.E. Medbourn, Hampton Boswell, A.N. Butler, and Carl Adams
various shots of the bank and its staff in 1947
various shots of the bank and its staff in 1947
various shots of the bank and its staff in 1947
various shots of the bank and its staff in 1947
various shots of the bank and its staff in 1947
The State Exchange Bank in the 1950s, before the remodeling
A 1956 Culver Citizen article detailing the planned remodeling of the bank
The bank after its 1957 remodeling project.
The State Exchange Bank's 1960 book issued to the Culver Public Library.
Money bag from the State Exchange Bank, an undated item from the Kim Amond collection.
W.O. Osborn at the ribbon-cutting ceremony for the Plymouth branch of the bank, early 1960s. To provide for needed expansion at Culver, remodeling called for using the entire second floor of the building. The Masonic Lodge, which had occupied quarters on the second floor of the bank building since 1907, moved
across Main Street to the L.P. Building. Expansion included bookkeeping space on the second floor, new quarters for SEFCO and Insurance offices on the second floor and remodeling of first floor offices. The bank now boasted three branches one in Argos, one in Lapaz and one in Plymouth. Interest rates spiraled to record high levels reflecting a tight money flow in late 1968 through 1971 and in that year, President Nixon issued a national price-wage freeze to fight inflation.
Total combined resources were $63,810,867. In 1972, John J. Deery came to the bank as Assistant Vice President. A Carl M. Adams, Sr. retired as Cashier after S4 years of active service. With the new branches, it was impossible for all of the employees to know each other- important in the bank's caring-family relationships. Marcia Adams suggested and, with permission from the directors, published a house organ named "News notes" with the slogan, "Work Brings People together, News Brings Friends Together" The paper, told about the lives of bank employees, births, deaths, marriages, promotions. It was published once a month from 1975 to 1980. Samples of the paper are on the counter.
Custodian J.C. Beck in the 1970s. In 1975, Mr. Osborn was honored by the town on his 90th birthday. The grand opening of the Senior Citizen Osborn House was also on that festive day.
From the 1975 celebration honoring W.O. Osborn on his 90th birthday
Osborn and his wife with former Indiana Governor Otis Bowen, and a newspaper article commemorating the occasion. In November of 1976, a brochure was published commemorating the 75th anniversary of The State Exchange Bank. Combined resources of the four banks were $98,588,000. Hampton Boswell retired in 1976 after forty- years of service. Ground was broken for a new bank at Bremen in October of 1977, to be a branch of Farmers State Bank, LaPaz.
Minnie Shilling Osborn died in 1977. In 1977, the farm economy was at a high level. Reports showed that the average value of Indiana farm land was $1,154 per acre. In May of 1978, deposits hit a
new high of $95,949,019 with total resources of $100,014 000. Open house was held in August marking the completion of the new Farmers State Bank, at Bremen, located at the corner of Indiana 331 and High Road. In September, scholarships to county high school students were increased to $500 a year and the CMA scholarship was increased to $ 2,000.
For the first time in history, in October of 1981, service charges were placed on checking accounts. The Carter Administration's decisions abroad affected the farmers' abroad affected the farmer's grain abroad, affected the farmer grain prices. The farmer’s demise was to recall one of Mr. Osborn's sayings. "We're built with the earth as our foundation, not figures and promises. Farmers have played an important role" (in the bank's history-end of quote.) When farmers have hard times, they can't pay back their loans- "prime the pump" practice was essential to their solvency. The farmers, hurt-the bank hurts. A new All Savers Certificate of Deposit was authorized. On December 17, a Memorandum of Understanding was signed with the Federal Deposit Insurance Corporation and Department of Financial Institutions. At the December Directors' meeting, a plan was approved for a special mortgage loan promotion to try to boost the sluggish economy in the area. W.O. Osborn chairman Emeritus, died at his home on December 26, 1981. It was the end of an era for The State Exchange Bank. In spring of 1982, Carl M. Adams died at home. In September, 1982, the directors accepted the resignation of John Deery and named Allen Cummins, formerly the manager of the Farmers State Bank, LaPaz, was named Executive Vice President of The State Exchange Bank. In October a Merger Application was filed for the proposed merger of The State Exchange Bank and Farmers State Bank. On December 30, 1982, SEFCO filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Due to the bank's close association with SEFCO through the years, this move caused problems for the bank. The proposed merger wasn't accomplished before depositors pulled their money because of rumors and suppositions. During the Directors' Meeting scheduled for January 10, 1983, the Marshall County Sheriff interrupted the meeting with news that Fred Adams, President and Chief Executive Officer, had taken his life in a wooded area near Culver Military Academy. Directors employed the legal firm of Krieg DeVault Alexander and Capehart as Special Counsel to make an independent study of the relationship between the State Exchange Bank and State Exchange finance Company. Due to increased costs, after some forty years, the cafeteria service for employees was discontinued. On September 30, 1983, a definitive agreement was signed by the Bank and SEFCO, which would form the basis of SEFCO's Plan of Reorganization. The plan basically provided that as much of their principal and interest as possible be returned to the note holders and creditors of SEFCO (later, after lawyer fees, those note holders and creditors would be paid over 50% of the debt owed.) The plan further resolved to eliminate the years of litigation that could occur without a settlement, and to merge the Farmers State Bank with The State Exchange Bank. The Directors, attorneys and others began another year of frustration in ironing out all the details of the Plan and filing it with the Court, until finally, on January 24, 1995, it was consummated and NorCen Bank was born of the merger of The State Exchange Bank and Farmers State Bank. Bryce Burton was elected as the first Chairman of the Board of NorCen Bank. (This history of The State Exchange Bank was compiled by Charlotte J. Jung, Senior Vice President, in 1986, added to by Marcia P. Adams in 1998 and edited by Harvey Firari in 1998).
