NorCen Bank / NorCen Financial Center -

January 24, 1985 -1995, Aug. - NorCen Bank

NorCen Bank has its main offices in Culver with financial centers in Argos, Bremen and LaPaz.

The current chairman of the board is Bryce Burton and president and chief executive officer is Eldon W. Ploetz.

These four financial centers provide jobs for 93 persons in the community and have a current payroll of over one and a half million dollars annually.

The new logo.

1985 - Jan - 24 - the State Exchange Bank and Farmers State Bank, (ownded by Finance Company {SEFCO} ) State Exchnge merger ) ceased to exist and they became one as a result of an attempt to save them both - they became NorCen Bank / NorCen Financial Center.

1985 - Jan 25 - NorCen Bank arises from merger

Merger complete at NorCen Bank By JOHN WILCOX Tribune Plymoutn Bureau

CULVER The previously reported merger between the State Exchange Bank and Farmers State Bank became official late Thursday, creating a new institution called NorCen Bank.

The closing of the merger deal came after approval from the Federal Deposit Insurance Corp about one month ago. The merger is expected to help resolve problems stemming from the bankruptcy of the State Exchange Finance Co., an affiliate of the State Exchange Bank.

Bank officials apparently were successful in raising $B50.000 of new capital lo satisfy the FDIC. The new bank Is required to maintain a capital structure of 7 percent of its assets.

The bank lists more than $135 million in assets. The new bank will operate In the five Marshall County communities where the two former banks operated.

State Exchange Bank President A. Lee Campbell and Farmers State Bank President Michael Schell Issued a joint statement late Thursday, forecasting a bright future for NorCen.

"We are stronger than ever before, we are better equipped to serve the people of Marshall County" The pair also praised Ihe efforts of Sens Richard Lugar and Dan Quayle along with Rep John Hiler. in getting Ihe merger approved Campbell added the new bank will be able to offer higher loan limits to commercial and agncullural customers

While Ihe NorCen Bank is rising from the two former banks, questions of the SEFCO demise and of The State Exchange Bank remain, which apparently will be addressed by the Marshall County grand jury and the FBI

The grand jury is scheduled to convene in February, and it Is believed it will investigate the circumstances surrounding the collapse of SEFCO.

Craig Braje, a deputy proseculer from laPorte County who was appointed special prosecuter for the SEFCO case, said the jury will be convened on Monday, Feb. 11, and will investigate any possible criminal Involvement in the operation of the finance company.

Meanwhile, the FBI in South Bend confirmed they are continuing lo investigate SEFCO. An officer there said their investigation into the firm is not directly related to the grand jury, but there may be areas where both cases could overlap.

These ads ran in the February & March issues of the South Bend Tribune; also propbably in the Plymouth pilot and Culver Citizen:

1985 - Feb - The merger between The State Exchange Bank and Farmers State Bank to form NorCen Bank represents not only great opportunities but also new horizons for our communities. The dramatic symbol for NorGen Bank marks the dawning of a new era of financial service to the north central Indiana area. NorCen Bank represents a bold commitment to compete and expand business throughout this area through a network of strong community financial centers in Culver, Plymouth, Argos, LaPaz, and Bremen. The NorCen Bank corporate philosophy of being responsive to the needs of our communities meshes perfectly with pur commitment to bring innovative financial services as well as traditional banking services to those communities. Thus, a new symbol for new horizons. NjprCen Bank forms the groundwork for our new horizons. And while NorCen Bank is a larger, expanded corporation, we remain very much your hometown bank. supporting your goals, meeting your needs, and continuing your solid banking relationship... while enjoying the added financial support and management strength that comes. with the merger of State Exchange Bank and Farmers State Bank. So look for the new symbol of NorCen Bank. Youll see it more and more. It means that, more than ever, were your bank for the future. Member FDIC NorCen

NorCen Bank / NorCen Financial CenterPlyn=mouth branch od

1985 - Marc 11 - Five promotions announced CULVER

Five promotions announced CULVER Five promotions have been announced at NorCen Bank, Culver. Edna Mae Craft has been named cashier; Mona Karen Mendenhall, senior trust officer; Joyce L. Babcock, operations officer; C. Jon Bixel, personnel director; and Patti J. Pedigo, assistant cashier.

Craft had been assistant vice president and accounting department supervisor. She began working part-time at the bank in 1951. She has attended classes at Ancilla College, American Institute of Banking and the American Management Association.

Mendenhall had been a member of the staff of the banks Trust Department. She has taken classes and seminars sponsored by the AIB, the American Bankers Association and the National Association of Bank Women.

Babcock had been a customer -service officer. She joined the banks bookkeeping department after attending Ball State University. She has earned a general banking - diploma from the AIB.

Bixel had been in the operations division. He majored in business adminstration at Indiana Universit and has taken AIB training

EDIGO - Pedigo has moved to the Plymouth office from the Culver office, where she had been a personnel administrator. She has received a general banking diploma from the AIB and is working toward an asso ciate degree in business management. - South Bend Tribune

1985 - Jun 6 - Max O. Rarick, assistant vice president at NorCen has been Appointed to the position of Auditor by the bank's board of directors. Rarick, of Bremen, joined Farmers Stae Bank, LaPaz, in 1980 and was responsib;e for assisting the president in preparing call reports, financial statements, portfolio analysis and the trust department. He was previously employed with Peoples State Bank of Leesburg.

1985 - Jul 31 - Elkhart bank in buyout

By JOHN WILCOX Tribune Plymouth Bureau and JEFF KUROWSKI Tribune Elkhart Bureau

PLYMOUTH - The First National Bank of Elkhart announced plans Tuesday to buy the Plymouth branch of NorCen Bank for about $30 million.

Approval from the Indiana Department of Financial Institutions and the Controller of the Currency will be needed before the purchase can be completed. In making the purchase, the First National Bank acquires assets and assumes liabilities of the Plymouth branch of the NorCen Bank, totaling $30 million.

NorCen Bank is the combination of the State Exchange Bank of Culver and Farmers State Bank of LaPaz. The merger helped resolve the financial problems of the bankrupt State Exchange Bank Finance Co; (SEFCO), which was a subsidiary of the State Exchange Bank.

The sale of the Plymouth branch reduces the assets of the NorCen Bank to about $100 million, according to Jonathan W. Housand Jr., executive vice president of the First National Bank. The exact purchase price remains subject to negotiations, Housand said. ' In acquiring only the Plymouth branch of NorCen, the First National Bank of Elkhart will not become a party to any of the pending lawsuits associated with the SEFCO bankruptcy, Housand said.

The First National Bank of Elkhart will purchase assets, including certain loans, of the (NorCen) Plymouth branch and will assume all of the deposit liabilities of the Plymouth branch, according to a prepared statement from First National Bank President Thomas L. Dusthimer and Bryce Burton, chairman of the NorCen board of directors.

Dusthimer said the details of purchase agreement should be completed in about 30 days. After the closing, the NorCen depositors at the Plymouth branch will become depositors of First National.

Dusthimer added that First National has developed clients in the Plymouth area, and the addition of the Plymouth branch will help the Elkhart banks penetration in Plymouth and Marshall County.

First National lists assets of $600 million, and is headquartered in Elkhart, with full-service offices in Goshen, Nappanee and Bristol.The bank also operated a loan production office in Warsaw.

The Plymouth acquisition is First Nationals second expansion since changes allowing cross-county banking were enacted in July after being passed by the 1985 Indiana General Assembly. Previously, the First National Banks parent company, First Indiana Bancorp., announced plans to acquire the $44 million State Bank of Syracuse.

According to NorCens Burton, the sale of the branch made good economic sense for the NorCen Bank due to the significant capital enhancement which would result. Burton said NorCen will now have improved lending limits, lie added that NorCen will continue operating its other branches in Argos, Bremen and LaPaz as well as the banks Culver headquarters.

Dusthimer said there would be no significant changes in operations at the Plymouth branch, adding that the major thrust would be to serve the financial needs of the Plymouth market.

The agreement calls for First National to assume control of the branch with all of the 16 employees currently assigned to the Plymouth branch at the time of closing. According to the prepared statement, the former NorCen employees will be given the option of becoming First National employees. The new bank intends to serve the Plymouth market with the existing Plymouth branch employees, according to the statement.

The statement added that new services, including a 24-hour automated teller, will be added soon to the branch.

The acquisition of the NorCen Plymouth branch is a further example of First Nationals strategy of becoming a major regional banking entity, as opposed to becoming affiliated with a large money center bank.

First Nationals move into Marshall County is the second by a bank from outside the county since changes in state banking laws. In June, the 1st Source Bank of Marshall County merged with the larger 1st Source Bank of St. Joseph County.

Last December, 1st Source was the first banking institution in the state to push for cross-county banking when it acquired the Marshall County bank branches in Plymouth and Argos and merged them with the Bremen State Bank, calling the new corporation 1st Source Bank of Marshall County. After the new law went into effect, the two banks began the merger process and are awaiting final approval from federal . - South Bend Tribune

1986 - Feb 17 - Barak, investors reach Settlement

By JOHN WILCOX Tribune Plymouth Bureau

CULVER A settlement has been reached in the two suits against officers and directors of the State Exchange Bank seeking to recover investments from the bankrupt State Exchange Finance Co., NorCen Bank President Eldon Ploetz announced today.

Under the terms of the agreement, the SEFCO investors who filed suit against the bank will receive payment on the notes due as of Dec. 30, 1982, the official date of SEFCOs bankruptcy. Ploetz said the settlement was completed at 1:30 p.m. Friday in Indianapolis at its attorneys office.

According to Mark Bailey, attorney for the Indianapolis law firm of Wilson and Kehoe, which represented the plaintiffs, the money has been received by the law firm and it is dispersing the money to the plaintiffs. He would not disclose the amount of the settlement.

For NorCen officials, the settlement is the last tie it has to its former finance company. Under negotiation for about the last nine months, the settlement marks the end of NorCens involvement with its former finance company.

The settlement was proposed several months ago, but many of the plaintiffs could not agree to the terms, according to Ploetz, explaining the delay in the agreement.

Ploetz said negotiations with several plaintiffs were needed at the last minute to complete the agreement, with the last plaintiff agreeing at 1:30 p.m. Friday.

"We can now get back totally to the business of banking", Ploetz said.

Ploetz and interim NorCen Chairman Sam Schlosser said they believe the settlement serves both sides well It was a very prudent decision for us, Ploetz said, who added attorney fees for the bank have been in excess of $600,000 a year since 1982.

The settlement is in the best interest of both shareholders and depositors and for the community in the long term, according to Schlosser.

SEFCOs demise triggered a series of events leading to creation of NorCen Bank. As SEFCOs demise emerged, State Exchange Bank purchased Farm ers State Bank, owned by SEFCO, in order to give SEFCO capital to begin paying off its creditors.

The new bank, called NorCen, merged the two banks under one management. To further enhance its capital, partly in anticipation of Fridays settlement, NorCen sold its Plymouth branch to the First National Bank of Elkhart in August 1985.

The majority of SEFCO creditors did not join the suit. They are taking part in a SEFCO r eorganization plan, estimated to return around 86 cents on the dollar. That plan is about halfway through the three-year reorganization plan.

BANKS CHANGE WITH LAWS, Tribune lllustration DAVID KORDALSKI.

1986 Apr 13 - BANKS CHANGE WITH LAWS

MARSHALL COUNTY FINANCIAL LANDSCAPE ALTERED By JOHN WILCOX Tribune Plymouth Bureau

PLYMOUTH Changes In Indiana banking laws have made their mark in Marshall County A senes of bank acquisitions reshaped the county's financial landscape due to bank deregulation laws passed by the 1985 Indiana General Assembly.

Today, the countys three largest banks, 1st Source Marshall County, First National of Elkhart and NorCen, exist either totally or in part from the new regulations

In Marshall County, as well as throughout the state, takeovers have come from within and outside Indiana...in late 1985 NorCen Bank, the descendant of the State Exchange and Farmers State banks, remains locally operated But the bank is a steamlmed version of the two former institutions, with new management attempting to bring the bank out of past financial problems First National Bank of Elkhart acquired the Plymouth branch of NorCen Bank in 1985 ....

Here is a detailed report of the three Marshall banks how they were created and what officials plan for them customers :
NorCen Bank, the streamlined descendant of the State Exchange Bank, is attempting to emerge successfully from the collapse of the State Exchange Finance Corp , the sister institution to the State Exchange Bank SEFCO-related problems led to NorCens creation

When SEFCO filed for bankruptcy in December 1982, State Exchange officials moved to save the bank The LaPaz-based Farmers State Banks, owned by SEFCO, was purchased by State Exchange. Money from the sale went to SEFCO creditors The two banks reorganized under the name NorCen, with offices initially in Culver, Plymouth, Bremen, Argos and LaPaz

The new bank now has no ties to SEFCO after the recent settlement of two lawsuits agamst bank officials by dissident SEFCO creditors

Survival costs for NorCen were high SEFCO-related legal fees averaged around $600,000 a year since 1982 and NorCen was required to raise $850,000 in new capital before receivmg regulatory approval from the Federal Deposit Insurance Corp and other government agencies

NorCen sold its Plymouth branch to First National in 1985 to raise additional capital The result is a leaner NorCen, but with good future prospects, according to bank officials

Today, NorCen boasts a new management that is trying to put the memories of the final days of SEFCO behind them and return to normal banking business

NorCen is a different institution, said Eldon Ploetz, president. We are now able to concentrate totally on the business of banking

We needed to find a solid ground for us to structure NorCen, he said, in reference to the Plymouth sale Now, with assets of around $91 million, Ploetz feels the leaner NorCen, no longer burdened with SEFCO, can succeed.

Ploetz believes the costs would have been much higher if the bank failed. "You would have seen losses to the competitive banking market, as well as the significant shareholder and depositor losses", he said.

NorCen ls the countys leading locally owned and operated bank, something Ploetz believes will favor NorCen in the long run

He called indeoendent banking "the best way to serve the community. We can survive because independant banker get to know their people more than a branch manager who quite often is moving up through his company."

"We can give our customers a much dater answer back for their needs than (another) bank:, he said :We;re gearing ourselved up for a quick response to our clients" ...
- South Bend Tribune

1996 - May 1 - NorCen Bank gived officers promotions

NorCen Bank gived officers promotions ARGOS Eklon Ploetz, president of NorCen Bank, has announced a number of changes in the firms management structure.

E. Peter Fox has been appointed chief financial officer. Fox was most recently the comptroller and part owner of fox Certified Powder Finishing Systems Inc., South Bend: He holds a bachelors degree in accounting from Loyola University, Chicago.

Ronald L.Kirkpatrick, who previously provided consulting services to area financial institutions and businesses, has been appointed vice president and loan review officer.

Jack L. Carpenter, most recently manager of the banks Argod branch, has been promoted to senior vice president and manager of the banks lending division

Dale L. Cramer, located at the-LaPaz branch, has been promoted to vice president and manager the consumer loan division. He most recently served as manager of the loan service division in"' Culver. He received an undergraduate degree in business administration from Manchester College.

Donna Harvey, previously an assistant trust officer, has been promoted to auditor.

Robert W. Manuwal, previously a loan officer, has been promoted to assistant vice president and manager of loan services. He received an undergraduate degree from Manchester CoBege.

Hal E. Main, formerly a systems analyst with Ristance Corp. Bremen, has joined NorCen Bank" as a systems analyst He attended Rose-Hulman Institute of Technology, Terre Haute.

The bank has offices in Arg&' Bremen, Culver and LaPaz. -South Bend Tribune

1987 - Jan 26 NorCen ordered to pay up CULVER -

NorCen Pnesion trustees to resign, post secuirty.

The U.S. Department of Labor has received a court order guaranteeing payment of up to $500,000 by NorCen Bank and the trustees of its pension plan.

The Labor Department charged that the pension plans trustees violated the conflict-of-interest and diversification provisions of the Employee Retirement Income Security Act

The settlement calls for the defendants to post security for three years against potential losses to the plan,, up to $500,000.

It also calls for the defendants to resign their positions as trustees of the plan.

NorCen was ordered to appoint the St Joseph Bank and Trust Co. to serve as the plans sole trustee.

Named as defendants were NorCen Bank and trustees Charlotte Jung, Margaret Swanson, Edna Mae Craft, Michael Schell and Hampton Boswell

Peter Fox, a NorCen official, said the alleged violations occurred because the trustees were not aware of a change in federal law.

Fox said the trustees correctly followed the terms of the plan, but because of the change in the law, the plan Itself did not comply.

The court order was issued after the Labor Department filed a ciyil complaint against the bank and, trustees.

The complaint alleged the profit-sharing plan and trust of employees of the State Exchange Bank and Affiliated Organizations now NorCen Banks pension plan invested and maintained all the plans assets in unsecured loans with the State, Exchange Finance Co.

The departments complaint also alleged more than $16,000 in the plans funds were diverted to-the estate of William Osborn, former longtime president of the State Exchange Bank, by bank trustees. - South Bend Tribune

1987 - Jan 28 - LABOR DEPARTMENT OBTAINS COURT ORDER

The U.S. Department of Labor has obtained a federal court order guaranteeing payment of up to $500,000 from a Culver bank that allegedly invested assets from Its pension and profit-sharing plans In unsecured loans with the State Exchange Finance Co.

The civil complaint against NorCen Bank and trustees of its pension plan contends the investments violate conflict-of-interest and diversification provisions of the Retirement Income Security Act. Besides the monetary restitution, trustees were ordered to resign and permanently relinquish control of the plan's assets.

Four of the five trustees also were enjoined from serving In a fiduciary capacity to any plan governed by the retirement act for five years, and NorCen was required to appoint St. Joseph Bank and Trust Co. to serve as the plan's sole trustee.

The complaint was filed In December In U.S. District Court in Hammond, and the consent order was entere

Eldon W. Ploetz, left is president, and E. Peter Fox is chie financial officer of NorCen Bank at Culver - Dec. 13 1987

1987 - Dec 13 - NorCen Bank achieves turn around
By PAUL DODSON Tribune Business Writer

CULVER NorCen Bank of Culver has returned to profitability after five tumultuous years.

Eldon W. Ploetz, bank president, said NorCen reported a $517,000 profit for the first nine months of this year. Ploetz attributed the turnaround primarily to an improved agricultural economy in Marshall County.

The bank mainly serves farmers and small businesses which derive their income from the farm economy.

High interest rates, a virtual depression in the agricultural economy and the banks ties to the financially troubled State Exchange Finance Co. were sources of the banks problems earlier in this decade, he said.

As a result of the return to better times, the bank has been able to work its way off the federal Deposit Insurance Corp.s troubled bank list.

Ploetz said in 1983 the bank had been placed on that list and had been given an FDIC ?cease and desist" order that required the bank to meet certain financial guidelines by the end of 1987.

The key element of that order was that the bank was directed to raise its capital-to-asset ratio to 7.5. According to Ploetz, this ratio is now at 7.65 with bank assets at $93.7 million and capital at $7.16 million.

At one point in recent years, this ratio, which is an indication of financial strength, had been below 5.

"FDIC bank regulators hate to see this ratio get below 6", said E. Peter Fox, NorCens chief financial officer.

Donald E. Husk, deputy director of depository institutions with the Indiana Department of Financial Institutions, said of NorCen Bank, It is slowly improving but they have some progress to go.

Husk is a state banking regulator who has worked closely with NorCen following two precedessor banks brushes with financial disaster in 1982 and 1983. He said his agency will continue to closely watch NorCen Bank.

They have to be profitable and they have to watch their loans. They must make sure they have good, solid loans, said Husk. NorCen has one of the highest reserves for bad debt of any bank in Indiana, said Husk, adding that this reserve amounts to approximately 3 percent of total loans.

Stephen Katsanos, assistant director for corporate communications with the FDIC in Washington, D.C., said FDIC rules prohibit reload of information about a specific bank on the "troubled list". However, he chd explain how a bank gets on the list and how it can work its way off.

Katsanos said bank examiners use the so-called "CAMEL system" to determine a bank's safety, CAMEL is an acronym referring to capital, assets, managemenb cam tngs and liquidity.

Banks that are found to be deficient in any of these categories can be placed on the troubled list. "This means the bank gets an extra level of supervisory attention.The FDIC works closely with management." he said.

"They set milestones for accomplishments. It depends upon the situation at the certain bank," said Kalsanos,

Ploetz said, "The examiners have dropped the order, meaning we are off the troubled bank list." Both Ploetz and Fox began working at the bank after it got into financial trouble. Ploetz joined the bank In August 1985 and Fox In March 1986.

"It's been an interesting struggle," said Fox. "We cleaned up a lot of bad loans and the farmers have had a couple of good years."

At one point in early 1986, Nor-Cen had $7.7 million in non-performing loans on its books. Those bad loans have been whittled down to $2 million out of $64 million in total loans,

"We have excellent loan demand and excellent customer loyalty," said Ploetz.

NorCen Bank was formed in January 1985 by the merger of the Farmers State Bank of LaPaz and State Exchange Bank of Culver. Based in Culver, NorCen Bank has branches in LaPaz, Bremen and Argos.

On Dec. 31, 1981, prior to the onset of financial problems, the banks had combined assets of $187 million. With current assets of $917 million, this means that in the past six years, the bank's assets have been halved.

Ploetz said the decline in assets had two main causes withdrawals by worried depositors and the sale of the bank's Plymouth operations for $30 million.

Slate Exchange Finance Co. filed for Chapter 11 bankruptcy In December 1982 in the wake of a run on deposits and mounting farm loan losses. State Exchange Finance Co. and State Exchange Bank had common ownership and the finance company owned the LaPaz bank.

Although the two banks were not directly involved in the State Exchange Finance Co., they suffered because the three financial institutions formerly had common ownership.

The financial problems at State Exchange Finance Co. took a tragic turn in January 1983 when Frederic Adams committed suicide, Adams was a lifelong Culver resident and chairman of the finance company and the two banking affiliates.

At the time of Adams death. John Mars, a bank director, saul Adams had taken the financial problems and some personal attacks by several area residents very personally."

Marshall County's improving farm economy has four elements, according to John Steinmetz. executive director of the county's Agricultural Stabilization and Conservation committee.

These elements include improvements in federal programs which provide price support for agricultural commodities, higher livestock prices, higher gram prices and stabilization in the cost of vital inputs such as loan interest, fertilizer and motor fueL "This year crops in Marshall County have been real good", said Steinmetz.


1988 - Apr 4 - Buyback to benefit SEFCOs creditors
By JOHN WILCOX Tribune Plymouth Bureau

CULVER Unsecured creditors of the bankrupt State Exchange Finance Co. soon will receive $1.8 million from a preferred-stock buyback by NorCen Bank.

The move will give SEFCOs 900 unsecured creditors some more money and allow NorCen to form a bank holding company. The holding company will be the vehicle for the stock buyback, according to NorCen President Eldon Ploetz. NorCen, SEFCO and the SEFCO , creditors committee agreed to the banks buyback of $1.5 million of preferred stock from SEFCO.

An additional $300,000 in interest earned during the past five years is included in the agreement. NorCen will keep the remaining $105,000 of interest.

SEFCO filed for bankruptcy in Dec. 1982, forcing its parent bank, State Exchange Bank, to cease operation and reorganize as NorCen.

Under its 1985 federal bankruptcy reorganization plan, SEFCO had to give NorCen $1.5 million in SEFCO assets as capital for the new bank.

SEFCO was issued $1.5 million in NorCen preferred stock. NorCen has shown a profit since late last year and now is able to buy back the stock, according to Ploetz... - South Bend Tribune


1989 Jan 6 - LEGAL NOTICE: NOTICE OF APPLICATION TO ESTABLISH BRANCH
NorCen Bonk, Culver, Marshall County, Indiana has filed an application tor permission to establish a branch at 12455 Adams Road. Granger, St. Joseph County, Indiana.

Any person wishing to comment on this application may file his or her comments In writing with the regional director of the Federal Deposit Insurance Corporation at Its regional office. 30 Sputh Wacker Drive, Suite 3100, Chicago, Illinois 60606, telephone (312 ) 207-0210.before processing of the application has been completed.

Processing will be completed no earlier than the 15th day following either the date of the last required publication or the date of receipt of the application by the FDIC, which ever Is later.

The period may be extended by the regional director for good cause.

The nonconfidenitial portion of the application file is available for Inspection within one day following the request for Such file. It may be Inspected in the Corporations regional office during regular business Photocopies of Information in the nonconfidential portion of the application file will bemade available upon request, A schedule of charges for such copies can be obtained from th regional office.

1988 - May 22 - Eldon W. Ploetz, president and executive chief officer of NorCen Bank has announced that the following directors were re-elected at the annual shareholder's meeting: Clark H. Byum, Indianapolis; Dr. Vactor O. Connell, Bourbon; Jack L. Carpenter, Argos; Edwin G. Demont, Plymouth; E. Peter Fox, Misawaka; Charlotte Jung, Rochester; James E. Meister, Bremen; Ploetz, South Bend; Samuel C. Schlosser, Plymouth; Dale S. Smith, Rochester; Ricihard P. SMith, St. George, Utah and Paul Winn, Culver - South Bend Tribune.

1988 - Nov. 13 - NorCen dividend ready, its first in seven years
CULVER NorCen Bank on Tuesday will make its first common stock dividend payment in seven years.

This represents a significant achievement for the bank, which had long been financially troubled.

We're awfully proud of this, because there havent been any dividends since 1981," said Eldon Ploetz,president.

The dividend of 30 cents per share will go to holders of approximately 4 00,000 shares of common stock.

The bank said in a prepared statement, as a result of the diligent efforts of all the loyal employees through these severe economic times, the bank has, over the past three years, steadily improved its financial condition, thereby making this dividend possible."

Payment of the common stock dividend totalling 4120,000 was made possible by payment of $472,500 on the arrearage pertaining to the banks preferred stock, which is held by the State Exchange Finance Co.

This payment brings up-to-date NorCen Banks indebtedness to SEFCO and gives assurance to the creditors of the value of the preferred stock," said the banks prepared statement. - South Bend Tribune


1988 - Dec. 20 - BANK STOCK FOR SALE 225 shares of capital stock of State Exchange Bank, now NorCen Bank, for sale by executor to settle estate. Clem Miller, Jr. Executor of estate of Huldah B Volpert, Route 1, Rochester, IN. 219-223-2013.- South Bend Tribune

1988 - NorCen Bank reported $93,564,243 in assets at the close of business in 1988 - South Bend Tribune

1989 - Jan 6 - LEGAL NOTICE: NOTICE OF APPLICATION TO ESTABLISH BRANCH
NorCen Bonk, Culver, Marshall County, Indiana hos filed on application for permission to establish a branch at 12455 Adams Road. Granger, St. Joseph County, Indiana.

Any person wishing to comment on this application may file his or her comments In writing with the regional director of the Federal Deposit Insurance Corporation at Its regional office. 30 Sputh Wacker Drive, Suite 3100, Chlcooo, Illinois 60606, telephono (3)2 ) 207-0210.

before processing of the application hos been completed. Processing will be completed no earner than the 15th day following either the date ot the losT recieed publication or the date of receipt of the application by the FOIC, which ever Is later.

The period may be extended by the regional director for good cause.

The nonconflden-tlal portion of the application file t available for Inspection within one day following the request for Such file. It may be Inspected in the Corporation's regional office during regular business hours.

Photocopies of Information in tho nonconfidentlal portion of the application file will be made available upon request, A schedule of charges for such copies can be obtained from the regional office.




1989 Mar 28 -This is an artists drawing of new new Norcen Bank branch that will be built at Indiana 23 and Bitterweet Trail in Granger.




NorCen starts on NorCen Bank held ground-breaking ceremonies today for a branch office at Indiana 23 and Bittersweet Trail in Granger. This is the Culver-based banks first establishment outside Marshall County.

Eldon Ploetz, president of NorCen Bank, said his company decided to locate the new branch in Granger because of the rapid growth of residential and business development there.

The branch will offer a full range of services, including mortgage loans, checking, savings, investments and commercial loans.

The branch is being built in the Bittersweet Centre Office Complex, which is being developed by David Huntington and Associates Inc. The $390,000 building will be owned by Roger Johnson and leased to the bank.

Completion of the building is expected by midsummer.

Establishment of the branch office is another sign the small Marshall County bank has made it;s back from a near brush with financial collapse in the early years of this decade.

NorCen had seven money-losing years before reporting a profit of $1.03 million in 1987.

It reported a profit of $1.1 million for 1988.

The bank, which has assets of $95 million, also has branch offices in LaPaz, Bremen and Argos. - South Ben Tribune




1989 - May 23 - Eldon Floetz, chief executive officer at NorCen, said he felt something should be done with "his very expensive wallpaper." As a result, he contacted Butler and Janis L Johnston, associate director for technical services at the Kresge Library. The law library of William Osborn is being donated to the Kresge Library at the Notre Dame Law School by Osborn's daughter, Fran Butler, center. The books were presented Monday by NorCen Bank's chief executive officer, Eldon Ploetz, and accepted by Janis L. Johnston of Notre Dame



1990 Apr 15 CULVER - Krls W. Ploetz and Seven J, Richter have Joined Nor-Cen Bank, Culver, as vice presidents.
Ploetz has joined the bank a vice president and cashier tn charge of operations Ploetz was formerly executive vice president at Boonvtlle F ederal Savings Bank, where he created it Consumer Lending Department He is a graduate of Purdue University, West Lafayette, with a bachelor's degree in finance management He also holds certification through the American Banking Association school in Indianapolis.

Richter joins the bank as vice president and controller. Prior to joining Richter was a manager for nine years with Crowe. Chizek, serving in Indiana, Michigan and Illinois He Is a I9h0 graduate of Manchester College, Manchester, Ind , with a bachelors degree tn accounting and business administration


1990 jun 27 - Culver NorCen Bank(NCB Corp.) $102,301,000 North Main St. Box 71 . Pres CEO Eldon Ploetz Branches: Argos, Bremen, Granger, LaPaz.

1991 feb 16 Cost of starting Granger branch cuts into companys 1990 profits
CULVER - A decline in 1990 profits at NorCen Bank was attributed to start-up costs for a new Granger branch.

The Culver-based bank reported 1990 profits of $800,000, the equivalent of $2 per share of common stock. This compares with 1989 earnings of $1.2 million, the equivalent of $3 per share.

The Granger branch opened in late 1989.

Eldon Ploetz, NorCen president, said even with the decline, NORCEN BANK the bank ended up with a return-on-average assets ratio of 0.8 percent, the state average for banks under $300 million in assets.

NorCens assets reached $104 million in 1990, a six-year high. In addition to Culver and Granger, NorCen has branches in LaPaz, Argos and Bremen..


1991 march 34 - Banks ranked by assets... NorCen Bank, Culver, 117th (was 115th), $103.94 million.. South Bend Tribune

1991 jul 26 1st Source buys NorCen LaPaz branch
LAPAZ - NorCen Bank and 1st Source Bank this morning announced the sale of NorCens LaPaz branch to the South Bend-based 1st Source. Eldon Ploetz, NorCen president and chief executive officer, said the proceeds of the sale will allow the Culver-based bank to take advantage of a tax-loss and to increase the capital of the bank.

The acquisition fits with the longterm strategy of expanding in Michiana, Christopher J. Murphy III, 1st Source president and chief executive officer, said

The deal is subject to approval of state and federal banking regulators.

Murphy and Ploetz said the sale of the branch is expected to be completed by the end of the year.

The LaPaz branch has deposits of about $25 million. The purchase price will depend on appraisals and other factors, Murphy and Ploetz said.


1991 Aug 7 - NorCen plans sale of three branches
By PAUL DODSON Tribune Business Writer CULVER NorCen Bank is selling three branch offices to take advantage of federal income tax provisions.

The Culver bank recently announced the sale of its Bremen and Argos offices to Lake City Bank of Warsaw.

Earlier, NorCen announced the sale of its LaPaz branch to 1st Source Bank of South Bend.

The impending sales are subject to approval by state and federal regulators. Eldon Ploetz, president of NorCen, said the three branches are being sold for approximately $2.5 million.

As a result of the tax provisions, NorCen bank will not have to pay federal income tax on much of the profit from the transactions. This is because NorCen holds tax-loss carryforwards from the mid-1980s when the bank was losing money as it struggled to recover from the State Exchange Finance Co. debacle.

The State Exchange Bank, the predecessor of NorCen, had close ties to the State Exchange Finance Co., which collapsed in 1982, almost taking the bank with it.

Since that near disaster, NorCen bank has returned to profitability and would lose the tax-loss carryforwards if they are not used by the end of this year, according to Ploetz.

We couldn't let the tax advantage go by, he said.

The LaPaz branch has deposits of approximately $25 million while the Bremen and Argos branches have deposits of approximately $20 million. As a result of the sales of the Firms receive branches and the deposits that go with them, NorCen bank is shrinking in size by approximately 40 percent

NorCen will end up with approximately $60 million in assets.

Lake City Bank has approximately $300 million in assets while 1st Source has some $1.22 billion in assets.

Ploetz said proceeds of the sales will strengthen NorCens capital base. At the end of the second quarter June 30, NorCen had a capital-to-asset ratio of 8.2 percent

Following the sale of the three branches, NorCen will have a capital of more than $9 million, resulting in a capital-to-asset ratio of 15.41 percent, said Ploetz.

George Gregorash, an assistant vice president with the Federal Reserve Bank of Chicago, said the U.S. banking industry has an average capital-to-asset ratio of between 5 and 6 percent

Therefore, NorCens capital-to-asset ratio of more than 15 percent would be unusually high and a indication of financial strength. The capital-to-asset ratio is an extremely important matter to NorCen.

The Federal Deposit Insurance Corp had placed NorCen on its troubled bank list in 1983.

At that time, NorCen was ordered by regulators to meet certain financial guidelines by the end of 1987. One of those guidelines was that NorCen raise its capital-to-asset ratio from below 5 percent to 7.5 percent. NorCen met that goal and returned to profitability in late 1987.

Following the sale of the three branches, Nor-Cen will have offices in Culver and Granger.

With that strong of a capital base, we could easily do some expansion elsewhere. But at this point we do not know where, said Ploetz. - South Bend Tribune


1991 Aug 14 - NORCEN BANK TO SELL BREMEN, ARGOS, LAPAZ BRANCHES CULVER
NorCen Bank is selling three branch offices to take advantage of federal income tax provisions.

The Culver bank recently announced the sale of its Bremen and Argos offices to Lake City Bank of Warsaw. Earlier, NorCen announced the sale of its LaPaz branch to 1st Source Bank of South Bend.

The impending sales are subject to approval by state and federal regulators.

Eldon Ploetz, president of NorCen, said the three branches are being sold for approximately $2.5 million.

As a result of the tax provisions, NorCen bank will not have to pay federal income tax on much of the profit from the transactions.

This is because NorCen holds tax-loss carryforwards from the mid-1980s when the bank was losing money as it struggled to recover from the State Exchange Finance Co. debacle..


1991 - Dec 31 - 1992 Jan 14 - NOTICE TO DEPOSITORS OF THE LAPAZ BRANCH OF NORCEN BANK
The deposits shown on the books of the LaPaz branch of the NorCen Bonk as of the close of business on December 31, 1991 have, been transferred to the 1st Source Bank, which is now legally responsible for the payment of the deposits. Although the insured status of the LaPaz branch of the NorCen Bank will end when the Federal Deposit Insurance Corporation (FDIC) has received satisfactory evidence of the transfer, 1st Source Bank is an insured bank and your deposits will continue to be insured by the FDIC in the manner and to the extent provided in the Federal Deposit Insurance Act. Your deposits that were maintained in the LaPaz branch of the NorCen Bank will be separately insured from any deposits you may have in 1st Source Bank until May 31, 1992, In case of a time deposit which matures after that period, until the earliest maturity date after May 31, 1992. At that time, your deposits from Lapaz branch of the NorCen Bank will be combined with any deposit you may have in 1st Source Bank tor purposes of determining deposit insurance 1st source Bank- 100 North Michigan, South Bend Indiana 46601


1992 Jan 15 1st Source and NorCen announce completion of the sale of NorCen's LaPaz branch to 1st Source. The proposed transaction was announced last July.

1992 - Feb 2 - Plymouth - Lawrence J. Miller, senior vice president of NorCen Bank. has been promoted to senior lending officer. Miller will be responsible for all loan officers and supervisor of loan service and loan documentation. An employee since 1968, Miller started as a teller in Culver and advanced to the loan area in 1973 to set up the "dealer paper" department for the bank. He has worked in the Plymouth, Bremen and Lapaz branches. Miller is a graduate of Vincennes University and attended Indiana University of SOuth Bend.

1992 Feb 18 Norcen will buy Knox Ameritrust branch KNOX
Norcen Bank announced it has a definitive agreement to purchase the Knox branch of Ameritrust National Bank from the Cleveland-based Ameritrust Co. The branch, located at 307 Carlson Drive on the south side of Knox, was formerly owned by the defunct Pioneer Federal Savings & Loan Association. Ameritrust purchased Pioneer in May 1990 from a federal agency that had taken over the failed savings and loan institution. At the time of the Ameritrust purchase, Pioneer had offices in Plymouth, South Bend, Mishawaka and Knox. The Culver-based Norcen Bank said in a prepared statement its purchase of the Knox branch is subject to regulatory approval which is expected at mid year.

Deposits and certain loans are included in the overall acquisition agreement, said Norcen.

It added that the transaction is expected to enhance the stock value of NCB Corp. which owns Norcen. Furthermore, the purchase is expected to facilitate regulatory approval needed for the impending merger of Ameritrust and Society Corp. Terms and conditions of the purchase agreement were not disclosed.

Eldon Ploetz, Norcen president, said we have full intention to keep the staff of the Knox branch. The branch has three employees. We are extremely pleased to be entering this new market area and expect to be an effective competitor for a full range of banking services. Our community banking philosophy fits quite nicely in the Starke County market and we are eager to provide our products and services to this community, said Ploetz. In addition to its home offices in Culver,

Norcen has a branch bank in Granger and a trust office in Plymouth.

1992 Feb 18 Merger moves more muscle into michiana
The Society-Ameritrust merger is turning out to be a good business move for northeast Indiana...Overlap if Ameritrust and Society branches in Know was taken care of by NorCen Bank of Culver which this month announced an agreement to acquire the Knox Ameritrust Branch....


NOTE - could not find anymore out about this possible merge - assuming it did not occur.


1992 - Mar 22 - NorCen was listed as # 196 at $55 million, out of 286 bank in Indiana

1994 Apr 22 INDIANA Northern Indiana banks plan merger Indiana Federal Corp., holding company for Indiana Federal Bank in Valparaiso, announced a merger agreement to purchase NCB Corp., parent of NorCen Bank, based in Culver. The $8 million purchase requires approval by shareholders and regulators. Indiana Federal has 11 branches and $562 million in assets, and will acquire Nor-Cen's offices in Culver and Granger and $52 million in assets.

1994 Apr 25 NorCen Bank sale in works
VALPARAISO Indiana Federal Corp., the holding company for Indiana Federal Bank, announced it has agreed to purchase NCB Corp., parent company of NorCen Bank, Culver. The $8 million purchase is subject to approval by NorCen shareholders and state and federal regulators

. Indiana Federal said in a prepared statement that it expects the transaction to be completed by years end. NorCen, which has assets of $52 million, is the successor of the State Exchange Bank, which was founded in 1890. It has offices in Culver and Granger.

Indiana Federal has assets of $562 million. Headquartered in Valparaiso, it has 11 offices in northwestern Indiana, including a loan office in South Bend.

The acquisition of NorCen Bank fits well with our strategic plan, which focuses on the long-range development of our core community banking business, said Peter R. Candela, president of Indiana Federal. The acquisition complements our geographic market thrust in expanding towards SL Joseph and Marshall counties, said Candela.

Eldon Ploetz, president of NorCen, said, We are confident that Indiana Federal is one of the regions most successful community banks that is committed to providing customers with a broader array of services, products and locations.


1994 Apr 26 - IFB merger with NorCen near completion
VALPARAISO Indiana Federal Corp., the holding company for Indiana Federal Bank, has executed a definitive merger agreement to buy NCB Corp., parent company of NorCen Bank, headquartered in Culver.

The acquisition is subject to approval by shareholders of NCB Corp., the state and federal banking authorities.

The transaction, valued at approximately $8 million, will be accounted for as a purchase, Indiana Federal officials said.

NorCen Bank, founded in 1985, is the successor of the State Exchange Bank founded in 1890.

The FDIC-insured commercial bank has assets of approximately $52 million and has offices in Granger and Culver.

"The acquisition of NorCen Bank fits well with our strategic plan which focuses on long-range development of our core-community banking business," said Indiana Federal Bank President Peter Candela. "The acquisition complements our geographic market thurst in expanding toward St. Joseph and Marshall counties."

Indiana Federal operates a loan production office in South Bend.

IFB conducts business through 11 centers in Northwest Indiana and has about $562 million in asets and shareholders' equity of $63.8 million.

The acquisition could be completed by the end of the year, officials said..


1994 oct 12 - Indiana Fed purchase approval anticipated
VALPARAISO State action is expected Thursday on Indiana Federal Bank's move to acquire NorCen Bank of Culver in Marshall County.

Valparaiso-based Indiana Federal also is in the process of acquiring American State Bank of North Judson, an action which Indiana Federal President Peter Candela expects to be completed by the end of November.

When complete, NorCen Bank's offices in Culver and Granger, as well as two American offices in Starke County, will become Indiana Federal branches. Indiana Federal will have 15 offices once all official approvals are received.


1995 - Feb 5, NorCen Bank of Culver has quiet ending
PAUL DODSOM ON THE BUSINESS BEAT

NorCen Bank went out of existence this past week.

NorCen was purchased by Valparaiso- based Indiana Federal Bank for Savings. It was a quiet ending for a little country bank that had a long and turbulent history.

NorCen, which traced its roots to 1890, survived several wars and economic downturns. It was formed in the 1985 merger of two financially troubled banks Fanners State Bank of LaPaz and State Exchange Bank of Culver.

The LaPaz and Culver banks primarily served farmers and small businesses which derived their incomes from the farm economy in Marshall County. Sky-high interest rates, a virtual depression in the agricultural econ omy and the banks' ties to the financially troubled State Lx-change Finance Co. (SEFCO) were sources of the banks' problems.

SEFCO filed for Chapter 11 bankruptcy in December 1982 in the wake of a run on deposits and mounting loan losses.

The Culver and LaPaz banks became ensnared in the SEFCO debacle because the financial institutions had common ownership and management

The darkest days for State Exchange Bank came in 1983 when the Federal Deposit Insurance Corp. placed it on the infamous "troubled bank" list The bank earned this distinction because it had bushels of bad loans.

Many other American banks were in the same predicament back then and many of them did fail, with the government swooping in, taking them over and paying off their depositors with cash from a federal insurance fund.

The financial problems for the Culver and LaPaz banks took a tragic turn in January 1983 when Frederic Adams committed suicide. Adams was a lifelong Culver resident and chairman of the finance company and the two banking affiliates.

At the time of Adams' death, a director of State Exchange Bank said Adams had taken the financial problems and some personal attacks by several area residents "very personally."

Over the years the SEFCO case generated much emotion and name-calling and numerous lawsuits.

Some creditors of the finance company went so far as to charge that as SEFCO neared insolvency, company insiders had withdrawn money from SEFCO accounts while at the same time encouraging customers to invest their life savings in SEFCO's uninsured accounts.

Despite this bitter history, NorCen survived and returned to profitability in 1987.

"It's been an interesting struggle. We cleaned up a lot of bad loans and the farmers have had a couple of good years," said E. Peter Fox in late 1987. At that time, Fox was chief financial officer for NorCen

In 1988, NorCen was finally able to pay a dividend on its common stock, the first such dividend since 1981.

Asset figures show the intensity of the struggle endured by NorCen and its two predecessor banks.

In 1981, prior to the onset of financial problems, Farmers State Bank and State Exchange Bank had combined assets of $187 millioa Within six years, assets had plummeted to $94 millioa A major part of the decline was withdrawals by worried depositors.

When it was absorbed into Indiana Federal, NorCen had assets of just $52 million

The sale of a bank this size would not ordinarily attract much public interest but there was a great deal of history and drama behind this sale. - South Bend Tribune



OP LOT #7 S 60' & 1/2 VAC ALLEY ADJ

COM 16.5' WEST OF NW COR LOT 9 OP CULVER TH S0-04-49W ALG W LN VACATED ALLEY 75' TO POB TH CONT S0-04-49W 123.21' TO N LN JEFFERSON ST TH S89-05-14W 99.64' TH N0-05-17E 123.37' TH N89-10-51E 99.62' TO POB & 1/2 VAC ALLEY ORD 2002-005