State Exchange Bank History  

In 1917 The Exchange Bank, of Culver and after sixteen years of being successfully operated by S. C. Shilling, W. O. Osborn, and Minnie Osborn, the bank was newly chartered on Jan 4, 1918 by the Banking Department of the State of Indiana and became The State Exchange Bank of Culver , Indiana with $50,000 of paid-in stock ($60,000 captial), the same employees and seven stockholders: S. C. Shilling, W. O Osborn, Irene Bogardus, J. P. Walters, Lewis Dillon, Franklin Overmyer and S. E. Medbourn. The assets amounted to $366,545.20.

In the spring of 1918, the first Liberty Loan, World War I drive to raise funds for the war effort and to promote citizen support was initiated. The Culver bank was the only bank in Marshall County to meet every quota of World War I Liberty Loan Bonds.

In September of 1918, Carl M. Adams, husband of Margaret Shilling Adams, youngest daughter of Schuyler Shilling joined the bank family.

At 9:30 a.m. on Wednesday, December 29, 1920, robbers staged a bank hold-up. One of the men shot Jacob Saine, Culver resident who later died of the wounds. Jerome Zechiel was also wounded. Carl Adams twin brother, Earl, another defender on the scene, was not injured.

Sometime after this Culverites developed a plan of defense for its bank which included an arrangement by Philllip Middleton for the State Exchange Bank to buy a dozen of Krad 30-40 rifles, being Army surplus these were distributed to local business men in the downtown area points being:

the DX station at the corner of Lakeshore & Main
Sinclair Service Station at corner of Main & Washington
Easterday Funeral Home
Ewald's Grocery
Rector's Pharmacy
Culver city Drug Store
Service Station at Main & Davis.

there was also a concealed office in the bank where the girl at the switchboard could survey the premises and send out the alarm to set in action the pre-arranged plan of defense.

Stockholders of Marshall County Banking Companies 1921-1924:

Name	Residence	Banking Co.	Location
Adams Carl M.	Culver	State Exchange Bank	Culver
Bogardus Irene	Culver	State Exchange Bank	Culver
Currens Joseph W.	Culver	State Exchange Bank	Culver
Dillon Louis C.	Culver	State Exchange Bank	Culver
Druckermiller Austin	Culver	State Exchange Bank	Culver
Gignilliat Leigh R.	Culver	State Exchange Bank	Culver
Glascock Hugh G.	Culver	State Exchange Bank	Culver
Goss Oliver T.	Culver	State Exchange Bank	Culver
Greiner Bert H.	Culver	State Exchange Bank	Culver
Holt Arthur B.	Culver	State Exchange Bank	Culver
Medbourne Samuel E.	Culver	State Exchange Bank	Culver
Mitchell John	Culver	State Exchange Bank	Culver
Norris Norman S.	Culver	State Exchange Bank	Culver
Osborn W. O.	Culver	State Exchange Bank	Culver
Overmyer Franklin	Burr Oak	State Exchange Bank	Culver
Overmyer Lewis	Burr Oak	State Exchange Bank	Culver
Schilling S. C.	Culver	State Exchange Bank	Culver
Slonaker Clement L.	Burr Oak	State Exchange Bank	Culver
Smith David H.	Culver	State Exchange Bank	Culver
Stabenow Otto	Culver	State Exchange Bank	Culver
Walter John P.	Culver	State Exchange Bank	Culver

1921 - Mar 2 Among the real estate transfers recently recorded is the sale of the Shilling Bank Building to The State Exchange Bank for $10,000 which amount has been provided for by the sale of additional stock, increasing the capital of the bank to $60,000.

At the 1923 Annual Stockholders Meeting of State Exchange Bank, a new corporation was organized, to be known as State Exchange Finance Company (SEFCO).

The directors of the State Exchange bank at his time were:

S. C. Shilling, W. O. Osborn, I. M. Bogardus, S. E. Medbourn, L. C. Dillon, John P Walter, Louis Overmyer.

As boasted "Under one management with combined capital and surplus of...."

In 1924, the bank purchased the lot to the north of the bank to enlarge the bank building. 1924 - 26 March - Culver citizen - directors of the state Exchange Bank have purchased the lot next to their building and plan to enlarge and remodel their present banking quarters. A new vault will also be installed.

Rea Building

1924 Sep 17 - Plans have been made for the remodeling of The State Exchange Bank Building so that the bank will occupy the entire front across the two lots with the telegraph office in a room on the south side.

1925 - jan 13 - The State Exchange Bank has rented the room vacated by Mr. Johnson.The bank will construct a new building on its present site during the summer.

1925 - January 1928 - Albert F. Stahl Get Bank Building Contract

The sealed bids for the new building for the State Exchange Bank were opened last Thursday and it was found that Albert F Stahl, weel-know local contractor was the loewst bidder

Accordingly, he was given the general contract which merely includes the erection of the building.

Sub-contractors will be let for heating, lighting, plumbing, vault door, and fixtures.

Mr. Stahl whas already begun to make his plans for the work and the actual tearing down of the old byuildings will begin in the early spring.


When completed, the new edifice will be one of the mose handsom buildings in this section of the country.

1925 - Feb 11 - Dismantling of the old building began - Moves of businesses housed in the building were required

The bank continued operations in the Menser Building, across the street from the bank, until the grand opening of the renovated building one year later. The exterior of the building was of Bedford limestone and was trimmed in maroon brick. The original entrance located at the corner of Jefferson and Main was moved to face Main Street.

1925 - February 25, - Best Vault Door Made Is Purchased By Bank

S. C. Shilling and J. P. Walter made a trip to southern Ohio last week where they pruchased the best vault door made, for the new bank building. The door is made of Donsteel which is a new invention and wchich cannont be penetrated with any kind of heat processes.

The two men were shown the advantages of this new output of the Mosler safe Co. and were convinced beyond doubt of the impregnability of this type of steel door.

1925 - March 25 - Next Sunday morning the post office will be moved into its temporary home in the Warner Building on Main Street to allow the tearing down of the present structure (STate Exchange bank building).

The interior featured brass teller cages with Neapolitan marble counter tops, floors of mosaic tile, walnut woodwork. On the second floor were offices of Dr. Mackey; generally practitioner, Dr. Norris and Dr. Robinson; dentists, and the Masonic Lodge. Later, a tenant of the second floor was The Barnes Construction Company, which was to become the Easterday Construction Company. In the basement, a vault stored $29 a pound mint oil used as collateral for farm loans. Once, the mint oil leaked and the bank reeked of double-Mint gum for months.

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from left: the bank before remodeling...and after

the newly remodeled interior

1926 - Jul 25 - The Exchange Bank

One of the strikingly handsome buildings in Marmont, with its French-plate front, is the one occupied by the Marmont Exchane Bank, which was established in 1892.

The buildng is two story brick, and the banking department is supplied with all the modern impruvements, and is conducted by men of strict integrity and experieince.

All kinds of banking business is done with the greatest care, and the interests of its patrons are carefully looked after.

All kinds of collections are made with promptness and accuracy.

This bank will be of special benefit to students and other parties while spending the season at the Lake.

In 1927, because of increased business, the bank announced it would be open from 7 to 9 p.m. the first evening of each month to serve customers. That practice was later changed, but the six days a week, 8 to 4 pm hours would stay in operation until the 70's when the bank began to close at noon on Saturday. Will's grand quote: "If we want to help them (the people) we have to treat them right and be there when they need us." And two other quotes that liken the bank to a doctor:” You don't need a doctor unless you're sick" and "You don't go to a doctor who you don't cure you."

There were 14 banks in Marshall County in 1927. Only seven remained following the great Depression of 1930.

In 1929, when mint oil reached $29 per pound, special vaults were provided by State Exchange Bank for storing the valuable oil for local farmers

During the "Great Depression," State Exchange Bank never borrowed, restricted deposits, cut salaries or missed a dividend and s tate Exchange Bank was the only Marshall County bank licensed to reopen the first day following the nationwide bank moratorium as a "Class A" institution with no restrictions.

1931 - The State Exchange Bank upon a petition of Argos area residents in 1931 established an office there to provide for the areas banking needs.

As early as 1932 there was plans to purchase the Argos State Bank as found below:

NEW ARGOS BANK - Indianapolis, Sept. 21 - (U.P.) - Permission for the State Exchange Bank of Culver to establish a branch bank at Argos was granted today by the state charter board.- The News-Sentinel, Wednesday, September 21, 1932

On March 6, 1933, President Franklin D. Roosevelt declared the Bank Holiday. That day, all state and national banks, trust companies and credit unions were permitted to only accept deposits in cash and accept checks only on new accounts. To open and carry on normal operations, banks had to be approved with assurance of capability by the State and Federal governments. In Indiana, Class A banks could remain open with no restrictions; Class B to open subject to restrictions and conditions; and Class C were not permitted to reopen.

State Exchange Bank was the only bank in Marshall County to be licensed by the State of Indiana to reopen as a Class A financial institution with no restrictions the first day following the nationwide bank moratorium. State Exchange Bank never borrowed, never restricted deposits, cut salaries or skipped a dividend during the Depression.

The bank's sound financial reputation drew the attention of unsavory visitors. Famous bank robber Willie Sutton was once asked: "Why do you rob banks?" He replied, "Because that’s where the money is." As the late film actress Ruth Gordon was once asked how she felt about money. She answered: "It's right up there next to oxygen!"

On May 29, 1933, at 9:04 a.m., seven men staged a hold-up of the bank in a widely publicized robbery in which six robbers were captured after a chase west of Culver. The seventh was arrested in Chicago in late October. Of the $12,655.60 stolen, $9,375.61 was recovered.

1933 - Sep 13 - Exchange Bank Adds Delayed Control Lock

The newest device to protect banks against hold-ups has been installed by the Culver State Exchange Bank.

It is a delayed control time lock on the cash safe in the vault, the use of which insures the bank against loss of large sums by robbery.

The lock is automatic and rewinds itself for delayed control every time the safe is dialed to open. The lock consists of a complete combination Diebold lock and a double escapement timelock movement. When a sudden demand is made for the bank's cash, as happens in bank holdups, the attendant goes to the safe and dials the combination in the usual manner, but in dialing, the timelock is automatically wound and thus delays entrance into the safe until the elapse of a pre-determined period of time, varying from ten to thirty minutes.

This delay is supposed to frustrate the plans of the bandits, who will be forced to make their get-away before the elapsed time.

With this timelock in operation only small amounts of money on the bank counter will be easily available to bandits in a hurry.

The lock is similar to ones recently installed at the banks at Bremen, North Judson, and Walkerton.

The bank as it appeared in the 1930's and into the 1950's; the Culver Public Library can be seen to the right.

The State Exchange Bank upon a petition of Argos area residents in 1931 established an office there to provide for the areas banking needs.

1934 - Oct 31 - The statement of The State Exchange Bank showed a total increase of $99,459. 34 since June 30.

In 1935, with recourses at $1,700,000 and deposits at a record high, the bank officials decided to remodel the interior of the Culver bank.

1935 - January 16 — H. E. Medbourn was elected a director of The State Exchange Bank to succeed J. P. Walter who asked to be relieved because of ill health.

1935 - Exchange Bank to Expand to Handle Increase Business

The bank also added a cafeteria on the lower floor for employees and invited guests.

The remodeling was completed in 1936 with modern equipment including an inter-office telephone system with central switchboard, new filing system and Eastman Kodak Recordak with a 16 mm. camera capable of processing 12 S checks per minute. The bank was becoming an automated sophisticate Margaret Swanson joined the bank staff as comptroller.

Hampton Boswell joined the insurance staff in December 1936. (father of Carolyn Kline/father-in-law of Bob Kline).

Photos of the bank interior after the 1935 remodeling (these photos were taken in 1947).

	the assembly room which included a state of the art theater-seating projection room
	stairs leading to the basement & the Snack Bar
	pantry in the kitchenette & the hallway to the kitchen area
	the kitchenette [Glenda Sellers (seated) speaks to Alice Mikesell (standing) in the kitchenette area] & dinning room

In December of 1936, after nineteen years of continued growth, total assets reached close to two million dollars ($1,942,148.62). Also in that year the original shareholders were directors.

The Culver bank also established a branch bank in Argos in 1937. As required by law, the new State Charter changed the title of the bank from State Exchange Bank to The State Exchange Bank.

1938 - Jan 12 - New Bronze Doors for Two Bank Buildings

New bronze doors have been placed on the Culver and Argos buildings of the State Exchange Bank, replacing the wooden ones.

The attractive doors, with large convenient handles, wigh 150 pounds each, without the glass and are considered to be the finest on any banking institutions in the state.

In fitting the doors allowance had to be made for the contraction and expansion of the metal.

A liberal expanse of plate glass allows for ample light for the interior of the entry-way.

A. N. Butler, husband of Francis, son-in-law of W. O. Osborn and newly graduated from LU. Law school joined the bank as manager of the Argos branch.

1937 - A branch at Argos was chartered

The change over is found recorded as such:

State Exchange Bank Purchases Argos Building
The purchase of the building, furniture and fixtures of The Argos State Bank, of Argos, by the State Exchange Bank, of Culver, has been announced by the officers and directors of the latter institution. The transaction was completed on Monday.

The Argos building is located on one of the choice corners of the town and is a modern bank structure, with two vaults. It has two stories and a basement, with office rooms on the second floor. The attractive front is of white stone, with marble pillars.

The officials of the State Exchange Bank announce that they plan to replace all the furniture, and make several alterations and repairs, which will give Argos a well equipped and modern banking quarters.

Improvements Planned

It is planned to redecorate the interior of the building, place inlaid linoleum where the floor is not tiled, divide the back room that leads off the lobby by a glass partition, install Venetian blinds on the windows of the main floor and replace all furniture with the latest design of walnut.

Keeping their banking quarters modern and attractive is one of the fixed policies of the officials of the State Exchange Bank.

Miss Zita A. Boggs, who has capably managed the Argos branch during the past few years, will continue in charge as one of the assistant cashiers.

For more than five years the State Exchange Bank has operated a bank in Argos, and a comparison of the bank's statements in 1932 and 1937 reflects the progress the institution has made during that period.
The deposits have grown from $837,226.78 to $1,911,339.92,
loans from $728,794.42 to $1,372,087.03,
total assets from $1,187,489.22 to $2,136,273.58, and
the capital and surplus from $120,000 to $160,000,
showing that the State Exchange Bank is well equipped to give Argos complete banking service in every respect, and meet all the financial needs of the community. - CItiizen Aug 11 1937


Culver BANK PURCHASES BANK BUILDING IN ARGOS
The purchase of the building, furniture and fixtures of the Argos State Bank, of Argos, by the State Exchange Bank, of Culver , has been announced by the officers and directors of the latter institution. The transaction was completed on Monday.

The Argos building is located on one of the choice corners of the town and is a modern bank structure, with two va ults. It has two stories and a basement, with office rooms on the second floor. The attractive front is of white stone, with marble pillars.

The officials of the State Exchange Bank announce that they plan to replace all the furniture and make several alterations and repairs, which will give Argos a well-equipped and modern banking quarters.

It is planned to redecorate the interior of the building, place inlaid linoleum where the floor is not tiled, divide the back room that leads off the lobby by a glass partition, install Venetian blinds on the windows of the main floor and replace all furniture with the latest design of walnut. Keeping their banking quarters modern and attractive is one of the fixed policies of the officials of the State Exchange Bank.

Miss Zita A. Boggs, who has managed the Argos branch during the past few years, will continue in charge as one of the assistant cashiers. - The News-Sentinel, Thursday, August 12, 1937

1938 - January 12 - New bronze doors have been placed on the Culver and Argos buildings of he State Exchange Bank replacing the wooden ones.

In 1938, after much consultation with different insurance companies, Mr. Osborn met with Charles S. Miller, Tyner, Indiana who represented the Lincoln National Life Insurance Company, Ft. Wayne, and pioneered a plan to insure the lives of makers of loans, on a voluntary basis. The year-end statement showed deposits of $2,500,000 and capital accounts of $239,947.

The bank came to be known as "Will Osborn's" bank. He was an innovative banker who delighted in finding ways to do what others said could not be done to help the people of the community.

In the 40's the bank continued its philosophy of the ‘30’s, which stressed the customer-depositor, should not be charged for service of the bank and the bank should take care of the legitimate needs of the community. Free checking, free napkins and advertising hand-outs were given to organizations as well as to individuals.

A blotter the boasted resources over $3,000,000.00

a 1937 advertisement for the bank's 1938 Christmas Club
	1930s advertisement shows the bank decked out in Christmas finery

In the late 30's and early 40's, the growth of depositors necessitated an intensive Loan Policy to accommodate the ever increasing demand for money. The demand fostered another service to be pioneered by the bank-Field Representatives to call on farm customers. Clarence E. Bair, Sr. and O. T. Goss were the Field Men in the 40's. In the early 70's, Edward Schultz. That year, the October issue of "Burroughs Clearing House Magazine" featured an article on Country Bank Loans authored by W.O. Osborn. His innovative ideas were making news in banking circles throughout our country. In 1941, Will Osborn lectured at the Wisconsin State Bankers Association at Milwaukee, Wisconsin. The bank Vice President spoke on the State Exchange Bank's interest in the youth programs and education of the young and its sponsorship of the 4-H Program in the trade area. One coveted award at the Argos 4-H Fair is the Grand Champion farm animal award. The State Exchange Bank policy was to buy the animal at a top dollar price.

1941 - Apr. 24 A partition has been removed from the interior of The State Exchange Bank to allow more room for the note department.

1941 - Dec 17 - Remodeling Interior of State Exchange Bank

Don't think that a bomb has exploded when you walk into tht interior of the State Exchange Bank - the main room is just being remodeled to give more working space to handle the steady increase in business.

Two tellers' windows are being placed at the north side of the lobby so that improvement service may be given to customers.

The southeast corner is being changed to give space for the finance and insrurance departments.

The bank has ordered 560 new lock boxes to meet th demand for more this type of storage space. The saftey deposit boxes, which will be extended to the ceiling on one side of the vault, are expexted to be shipped within a short time.

1942 - in the magazine "Finance" Osborn was quoted as saying; "We believe that all of out employees belong to an 'official family' and that they should be taken into our confidence in being informed not only on the policy of the bank, but on the weak as well as the strong points affecting the same. We are strong believers in the paying of a bonus to everyone employed by our bank, not only because we think that those who ear the money should be paid, but because it puts them in the position of being stockholders, wothout being forced to by stock. As a result each of our employees becomes vitally interested in the success of the bank.'

The next few years during World War II the bank played an active role in supporting bond drives and promoting E-Bond sales.

In February 1943, the Board of Directors approved purchase of the Farmers State Bank, LaPaz, Indiana, by the State Exchange Finance Company. Deposits were $11,400,000, and Loans of over five million.

In 1946, Charlotte Jung joined the bank staff as secretary to W. O. Osborn.

Perhaps it is a good time to describe the Christmas parties the bank began in the late forties. Charlotte Jung was in charge of the Christmas Parties and had a delightfully different theme each year, which was carried out in table decorations and favors. No words can describe the events, but suffice it to say, all enjoyed the occasions.

1945 - Sep. 12 - A public parking lot is being planned by The State Exchange Bank at the corner of Jefferson and Plymouth Streets.

Charlotte Jung, having joined the bank in 1946, is pictured with W.O. Osborn in 1947.

In 1947, remodeling of the bank building provided added bookkeeping facilities on the lower floor and insurance offices on the second floor. Night depository facilities were provided at each bank during the 40's. Plans were announced to provide employees with life insurance ­another perk for employees.

Mr. Osborn had become a much-in-demand speaker. On October 16, 1947, when Mr. Osborn was sixty-two years old, he was the key note speaker at the prestigious International Business Machine 100°r6 Club Convention held in Endicott, New York. Mr. Osborn's speech was recorded on a 78 RPM platter.

Mr. Thomas J. Watson, Jr., IBM chairman and his officers standing in front of the bank with bank officials and employees, in 1947 The IBM executive staff was at the Culver bank for a meeting.

In 1948 Board of Directors of the State Exchange Bank of Culver & Argos - Lewis Overmyer, O. T. Goss, W. O. Osborn, W. L. Johnson, H. E. Medbourn, Hampton Boswell, A. N. Butler, and Carl. M. Adams - absent was S. C. Schilling.

They were: S. C. Shilling, President; O. T. Goss, Vice President; W. O. Osborn, cashier; Carl M. Adams Assistant cashier; Hampton Boswell assitant cashier; A. N. Bulter, assistant cashier; W. L. Johnson, assistant cashier; Margaret L. Swanson, Auditor. Its sister bank the Farmers State bank of Lapaz had the officers as follows: S. C. Shilling, President; O. T. Goss, Vice President; W. O. Osborn, executgive vice president; Carl M. Adams Assistant cashier; Hampton Boswell assitant cashier; A. N. Bulter, assistant cashier; E. N. Johnson, assistant cashier. The board of directors for the above institutions were: s. C SHilling, O. T. Goss, W.O. Osborn, carl M. Adams, H. E. Medbourn and Leis Overmyer. The associate directors were: Hampton Boswell, W. L. Johnson and A. N. Bulter.

As of 1948 the State Exchange Bank had as capital more than $650,000 and the Farmer State Bank, $150,000. Total resources for both totaled $16,000,000

1949 - feb 2 - February 2, 1949 Another new service for customers is being provided by The State Exchange Bank in the form of a night depository safe

In 1949, Fred E. Adams, grandson of Schuyler Shilling, nephew of W.O. Osborn joined the staff as a teller.

Fred had served three years in the U.S. Navy in World War II and obtained his LU. Business School Degree. In 1950, a survey published by Purdue University on bank practices in agricultural loans complimented the policy and practices of The State Exchange Bank. The board of Directors was increased from six to nine members.

from left: Wallace Clark and Zenith Crossgrove, State Exchange Bank custodians, in 1947.

Clarence E. Bair with board member O.T. Goss

Charlotte Jung, Esther Bolinger, Bonnie Reed, and Wilma Snyder

Carl M. Adams, Margaret Swanson, Wilmas Snyder, Hampton Boswell, Robert Lindvall, Betty Young and joan Weaver.

Margaret grindle, Esther Lindvail and betty Zechiel

These photos come from the bank's 1948 photo book and program. To view the entire book

Argos teller area

Agros employees - 1947-8 - Clarence E. Bair, clinton Bendecit, Lois Carl and Kathyrn Overmyer.

Argos custodian, Tony miller, 1948

W.L. Johnson, Cashier Farmers State Bank Lapaz

Lapaz employees of Framers State Bank - 1947-8: E. N. Johnson, Fern Baker, Ethel Sanders and Madeline Oler.

S .C. Shilling, President and Founder of the bank, passed away on September 13, 1951, at the age of 89. On September 18, 1951, W. O. Osborn was elected President of The State Exchange Bank, Farmers State Bank and State Exchange Finance Company. Carl M. Adams was named Cashier and Oliver C. Shilling, Riverside, California, was named Director to succeed his father.

The statement showed combined resources of $19,549,835. Surplus was increased to $500,000.

In the 1950's an annual $250 college scholarships for four years was established for seniors of the five surrounding county high schools and a $1,600 scholarship to Culver Military Academy.

1950 - Jan 18 - Local Bank Increases Directors From Six to Nine

At the annual stockholders’ meeting of The State Exchange Bank of Culver and Argos, and the Farmers’ State Bank at Lapaz, membership on the Board of Directors was increased from six to nine. Hampton Boswell of Culver , A. N. Bulter, manager of the State Exchange Bank at Argos, and W. L. Johnson, cashier at Farmers’ State Bank at Lapaz are the newly elected members of the board.

Each of the new directors has been closely associated with the development of the bank for several years. The six other members who were re-elected to the board of directors include S. C. Shilling, O. T. Goss, W. O. Osborn, Carl M. Adams, H. E. Medbourn and Lewis Overmyer.

Detailed reports given at the annual meeting indicated that both iinancial institutions, The State Exchange Bank and the Farmers’ State Bank, had had a successful year. The summary reports at the close of the year showed the banks had the largest statements ever published.

A 1950 Christmas ad from the Citizen

In 1951, the bank initiated the first of the annual Senior Class Educational Tours for five county high schools, which featured bus trips to Chicago to tour the Board of Trade, Federal Reserve Bank, and Continental Illinois National Bank.

1952 May 21 – The State Exchange Bank announces plans to occupy another room in the two-story bank building here; the room was formerly occupied by Western Union.-

1952 - Jul 2 - Finacial Statement and Officers.

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In 1953, Fred Adams left the bank to own and manage the Adams Men and Boys Wear Clothing Store in Culver .

In july, 1953, Farmers State Bank, Lapaz, Indiana, moved into a newly constructed bank building.

W. O. Osborn presented a series of lectures at the Fourth Annual School of Public Relations at the University of Missouri in 1953.

1955 - july 6 — Total resources of Culver , Argos, and Lapaz banks now listed at $26,670,704.00 as all three continue amazing growth.

On Nov. 28, 1956, the bank announced the purchase of the lots on the block past the library and plans were announced for major rehabilitation , remodeling, and redecorating of the Culver building starting in January of 1957 A 50-car parking lot was planned for the west side of the Culver building, and more space was to be added for bookkeeping, cafeteria and kitchen, offices, drive-up windows and central air conditioning. Argos was being revitalized and remodeled at the same time. The exterior was modernized and the brass teller cages were replaced with open stations.

1957 - Oct. 2 - Bryce Bigley Moving House From Expanding Culver Bank

Bryce Bigley has purchased the house on the corner of West Jefferson and Ohio Streets from the State Exchange Bank and work was begun last week to move ithe house about three blocks south to the corner of Ohio and West Milll Streets. The contractor in charge of the moving is Fred Hite of Plymouth.

Fred Adams was asked and returned to the bank to take the position of Vice President-Loan and Advertising Officer.

1958 - Jan 8 - State Exchange Ban Concludes Its Best Year

Total Resources Near $30 Million!

The end-of-year statement of the State Exchange Bank shows the combined resources of this local band and its affiliated bank, frarmers State Bank, LaPaz, Iindiana, to be $29,747,617.70.

This statement shows the largest totals the bank has ever published, except for Decemeber 1956,, at which time the bank had a large amount of temporary public funds

Three Beautiful Buildings

The officers anddirectors of the banks state that 1957 was the vest year they have ever had; and that since they have built a new building at LaPaz, completely remodeled the bank building at Argos, and hae rebuilt the bank in Culver, business should continue to grow.

W. O. Osborn, president of the three banks, states that it is the desire of the directors of the banks to give their customers the best service possible; and with this in mind, they jave made each of these three bank ultra modern and have equipped each with the latest and best equipment on the market.

The local bank now has 40 telephones, plus a direct line to the bank at Argos, which will make it possible for the Argos bank to be in contact with its parent bank at all times and without any delay.

Construction Nears Completion

Mr. Osborn also states that, with a few exceptions, the remodeling job at Argos is completed and that the bank here in Culver should be completed with 30 days, except for the parking lot which is to be blacktopped in the spring, due to weather conditions.

It was pointed out that it is the intention of the local bank to soon open up its drive-in-window. This will be open for longer hours than will the bank so that it will be possible for customers to make deposits and withdrawals after regular banking hours by using the new drive-in window, the opening date of whicvh will be ammnounced in the near future.

Open During Noon Hour

Beginning Jan 15, the Culver Bank will be open for regular banking buysiness during the noon hour in order to accommodate many customers who desire to use the noon hour to transact their banking business.

The local bank repoprts that its business at Argos and LaPaz has continued to grow as has the business here in Culver, and that with these three up-to-date bank buildings, the prospects for continued groweth are good.

Finance Company Quarters

Seperate quarters are being arranged here in Culver for the use of the State Exchanfe Finance Company, which is an affiliate of the State Exchange Bank, and whose groweth has been phenomenal.

It was stated that the local bank has take on several new employees int he past year, which will make it possible for the bank to give better serive to all of its customers.

Prompotions In The Offing

President Osborn also stated that there wouldl be several promotions in the official staff of the bank in the near future which will be reported in a later issue of the Citizen.

1958 groweth as annouced - The Combine year-end statement of the Culver , Argos and LaPaz branches of the State Exchange Bank continue to show a really marvelous growth. The combined assets of these great banks as of Dec. 31, 1958, amount to $30,716,099.11, nearly #1 million more then the same period last year. .... 7 Jan 1959 Culver Citizen

Two Open House receptions at the newly remodeled bank buildings at Argos and Culver , attracting hundreds of visitors. On June 12, 1958. Among other guests were 200 visiting bankers. Buses transported visitors between Argos and Culver to tour the bank buildings. A buffet lunch was served at the Culver Bank.

1959 - Dec. 31 financial report

1960 - Jan 6 - All =Time Records Set Resources Now Almost $31 1/2 Million!

1960 - Jan 27 - Culver Bank Is Featured In National Magazine - - W. O. Osborn Given Editorial Salute -

The January issue of Burroughs Clearing House, an important monthly national magazine for bank and financial officers, which boasts a circ ulation of 114,182, features a five page well illustrated story on The State Exchange Bank.

Written by the famous journalist, Arthur Van Vlissingen. the article beaded, " Will Osborn's Big Small-Town Bank." is a great advertisement for our community and a tremendous tribute to our No. 1 citizen.

Subhead of the feature article reads: "This unorthodox country banker operates fair beyond his farm community area, achieves remarkable results." Congrat ulatory letters by the dozen, from all over the United States, are arriving on President Osborn's desk in every mail. He generously gives a great deal of the credit for the bank's success to the teamwork of his associates and board of directors.

1960 jul. 6 Banks Continue To Establish Amazing Records

1961 - Jan. 11 - ALL RECORDS SHATTERED DURING 1960

1961, - June 30th financial statement.

1961 - Aug 23 - Great Artist Paints Portrait Of Noted Culver Banker; Edmund Brucker's Superb Portrait Of W. O. ( Will) Osborn

The current issue of the fast growing monthly magazine,Indiana Buisness and Industry, is the annual financial number of the publication saluting the Hoosier State's outsanding bankers and investment firms. A most faithful and striking new oil portait of W. O. Osborn president of the State Exchange Bank of Culver , appears in f ull color on its front cover which describes him as "America's most fabulous country Banker". Edmund Bruckner, distinguished artist, is pictured in his Indianapolis studio in the renowned John Herron Art School as he places the finishing touched on his portrait of Culver 's No. 1 citizen...

1961 - Nov. 15 - Local Christmas Club Checks Total $120,901

Being Mailed To 947 Members W. O. Osborn, president of The State Exchange Bank, on behalf of the institution's board of director's, has announced that a combined total of $120,901 will be mailed today to Christmas Club members among their many Culver and Argos bank customers.

The checks will be mailed to a combined total of 947 members of the 1961 Christmas Club.

This sum is $2,597.11 more than paid out last year at this time to a total membership of 1,004.

1962 - Jan 10 Combined Resources Over $33 Million; Capital Structure Exceeds $ 2 Million

1962 - jul 4 - State Exchange Banks Continue Amazing Growth Argos Bank Now Being Remodeled

1962 - Nov 14 - Local Christmas club Checks total $124,196

Local Christmas club Checks total $124,196

970 Members To receive Checks

W. O. Osborn, president of The State Exchange Bank, on behalf of the institution's board of diectors,has announced that a combined total of $124,196 will be mailed this week to Christmas club members among their many Culver and Argos bank customers.

The checks will be mailed to a combined total of 970 members if the 1962 Christmas Club. This sum is $3,295 more than laid out last year at this time to, membership of 947.

1963 - Janaury 9 - Ends Most successful Year Resources up $2,300,000 over 1961; Argos bank being remodeled and expanded.

State Exchange Bank Insurance Agency - American State Insurance

1963 july 3 State Exchange Banks Continue Amazing Growth Remodeling Nearly Finished At Argos

1964, January 8 - State Exchange Banks Continues Amazing Growth Argos Building and Facilities Remodeled and Improved

1964 - july 8 - Combined Resources Of Culver , Argos And LaPaz Banks Exceed $36 Million

1964 - Nov. 11 - Local Christmas Club Checks Total $131,300.16

W. O. Osborn, president of The State Exchange Bank, on behalf of the institution's Board of Directors, has announced that a combined total of $131,304.16 will be mailed tomorrow to Christmas Club members among their many Culver and Argos bank customers.

The checks will be mailed to a combined total of 969 members of the 1964 Christmas Club.

This sum is $3,668.92 more than paid out last year at this time to a membership of 978

1965 - January 7 - Combined Resources Of Culver , Argos And LaPaz Banks Exceed $41 Million', actual financial report

1965- Jan 21- Bank Stockholders Add new dircetors At Annual Meeting

Mr. W. O. Osborn, president of The State Exchange Bank of Culver and Argos, and the Farmers State Bank of LaPaz, has reported that the stockholders of the above named banks held their annual meeting Tuesday, Jan. 13, at which time three new Directors were added which makes 12 Directors in all.

The newly elected Directors are Edwin C. Boswell, Rochester; Miss Charlotte J. Jung, Argos; and Frederic E. Adams, Culver . All of the old Directors were re-elected.

The following is a complete list of all Directors for The State Exchange Bank, of Culver and Argos, Ind., Farmers State Bank, of LaPaz, Ind., and the State Exchange Finance Company, of Culver ,. Ind.: W. O. Osborn, Carl M. Adams, Hampton Boswell, W. L. Johnson, A. N. Butler, O. C. Shilling, Margaret L. Swanson, Glenn Overinyer, George E. Eley, Edwin C. Boswell, Charlotte J. Jung, and Frederic E. Adams. - THURSDAY, JANUARY 21, 1965 -

1965 - February - 25 - State Exchange Bank Ranks 1116 Largest In U. S.

The State Exchange Bank of Culver , whirch reported deposits of 329,615,416 on December 31, gained 54 places in its standing among the 12 00 largest commercial banks in the United States during 1964 and now ranks as 1116 largest in size compared with 1170 place at the end of 1963. Deposits of the bank totaled $26,214,356 a year ago.

This is revealed in the 1965 Annual Roll Call of the 1200 Largest Banks in the United States published by the daily AMERICAN BANKER of New York, which is the trade newspaper of t h e banking business. There are 13,673 banks in the United States.

1965, july 8 - Culver , Argos, LaPaz Banks End Greatest Growth Year In History Combined Resources, $42,879,106.26

1966 - The State Exchange Bank built a new facility property, at West 7th Road and U.S. 31, just north of the city limits of Plymouth. was annouced September, 2, 1965

1966 - Jan 6 - Resources Exceed $46 Million

Zenith Crossgrove first to retire under retirement pension plan from Culver Bank

1966 - Nov. 10 - Christmas Club Christinas Club $142,799.70.

W. O. Osborn, president of The State Exchange Bank, on behalf of the institution's Board of directors has announced that a combined total of $142,799.70. Including interest, was mailed today, Thursday, Nov. 10. to Christmas Club members among their many customer s of the Culver, Plymouth and Argos banks.

The checks were mailed to a combined total of 1,091 members of the 1966 Christmas Club.

This sum is $11,509.79 more than last year's total of $131,289.97, paid to an increased membership, up 63 from last year's total of 1,028.

1967 - Jan 12 - Resources exceeded the 50 million dollar mark, for 1966.

A proposal to assist the Culver Community School Building Corporation in a financial crisis involving construction cost of a new high school building in Culver , was approved with the bank purchasing $1,900,000 of bonds.

1968 - Jan 18 Banks Report Record High For Operations


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 ">K.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. lnterest 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.

1968 - Aug. 1 - Bank To Install New Drive-In Window - The State Exchange. Bank would like all their customers to know that the drive-in window will be closed Monday, August 5 through Wednesday, August 7 for the installation of a new and larger window

In 1972, John J. Deery came to the bank as Assistant Vice President.

Carl M. Adams, Sr. retired as Cashier after _4 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.

Custodian J. C. Beck in the 1970s.

1973 - Bank Remodeled At Culver

Construction work is currently being carried out on interior remodeling-rennovation, first and second floor levels of The State Exchange Bank here.

The project, initiated in late 1972, is a result of planning to fulfill a need for rearrangement for bank departmental areas and offices. Remodeled centers will be provided for the cashier, the bookkeeping and accounting departments on the second floor.

The new arrangement planning including offices for secretarial and bank officers on the first floor.

The plan also provides for greater functional coordination of bank operations including record files, supplies, PBX communications, check printing operation, accounting equipment and others. Included in the redecoration plan is a carpeted lobby.

Easterday Construction Co., Culver, is the general contractor. - April 12, 1973

1974 - Mar 12 - Fred E. Adams , executive vice president, The State Exchange Bank, has announced the appointment of Jack Keldenich to the bank bank staff Mr. Keldenich has, been names assistant vice president.

On February 1, 1975, hundred of persons joined to celebrate "Osborn Day", convocation and dinner marking his 90^th birthday.

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.

On july 3, 1979 they gave their customers a gift of a 1979 copper-nickel clad Susan B. Anthony dollar

In October, 1980, at age 95, W.O. Osborn suffered a slight stroke in his office at the bank and never fully recovered.

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" 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.

In December 1980, Fred E. Adams was appointed president and chairman of the board of the banks and W.O. Osborn was named chairman emeritus of the Board.

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.

1981 - Three Staff Members Advance At State Exchange Bank

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.

1982 - Sep 10, 1982 - Banks, plot merger in Culver, LaPaz

CULVER - The boards of directors of the State Exchange Bank of Culver and the Farmers State Bank, LaPaz, which are made np of the same Individuals, have authorized the managements of the two banks to pursue merger negotiations.

Fred Adams, chairman of the boards of the two banks, said the merged bank would be a stronger and more viable institution.

The merger plan will have to be approved by the Federal Deposit Insurance Corp. and the Indiana Department of Financial Institutions.

Adams said the merger would be completed by early 1983

The two banks are owned by the same group of shareholders and have the same boards - South Bend Tribune

1982 - Sep 19, - Bank Merger Proposed

Merger discussions are under way involving The State Exchange Bank, Culver, and Farmers State Bank, LaPaz.

The boards of directors of both banks have authorized the respective managements to pursue a merger.

The merger plan must be approved by the Federal Deposit Insurance Corporation and the Indiana Department of Financial Institutions.

Fred Adams, chairman of the boards of both banks, said the two banks arc presently owned by the same group of shareholders and have the same boards of directors.

Adams expects the merger to be completed by early 1983. - Logansport Pharos-Tribune

1982 - Nov 19, 1982 - State OK's 2 Bank Mergers Indianapolis - Two mergers invovling northern Indiana banks have won approval of the state's Department of Finanical Institution.

...

Also approval akso was given for the merger of the State Exchange Bank of Culver and Farmers State Bank at Lapaz. The name of the new bank s will be STATE EXCHANGE BANK.

Donald E. Husk, the department's supervisor of banks and trust companies, said he banks already have common shareholders and directors.

The mergers are conotingent upon the approval of the bank's stockholders and the Federal Reserve Bank at Chicago.

The U. S. Justice Deparment also could seek to block the mergers it if felt federal aint-trust laws were being violated, Husk saind - Indianapolis Star

1982 - December - Allen Cummins, who replaced Frederic E. Adams as president and chief executive officer

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.

1983 - Jan 2 - Bank to reorganize

1983 - Jan 10 1983 Jan 10 Bank suit seeks damages from State Exchange

PLYMOUTH A suit seeking damages of $75,377.56 in each of six paragraphs was filed in Marshall Circuit Court on Wednesday by the Industrial Trust and Savings Bank, of Muncie against the State Exchange Bank of Culver.

The suit says that Morris Bryant doing business as Quality Inn of ,. Muncie, cashed checks drawn on the State Exchange Bank at the Industrial Trust and Savings Bank, and the State Exchange Bank refused to honor the checks even though there was money in the accounts.

The suit also asks for interest punitive damages, and attorney fees, but does not specify an amount. South Bend Tribune

1983- Jul 10 - Publisher is linked to Culver bank - Forlow owed the bank or its sister company, State Exchange Finance (SEFCO), $1,865,000 on 10 promissory notes

1983 - Feb 3 Bank hires law firm for probe

1983 - Feb 5 Bank chairman named at Culver

Allen H. Cummins, president of the State Exchange Bank at Culver, has been elected chairman of the bank's board of directors, the bank announced Friday. In addition, the bank announced that members of the bank's board resigned Thursday as members of the board of directors of State Exchange Finance Co., the affiliated loan company that filed for reorganization under the bankruptcy code on Dec. 30. The bank's board, meanwhile, has hired the Indianapolis law firm of Krieg DeVault Alexander & Capehart to assist the bank "in evaluating the bank's relationship with the State Exchange Finance Company." CUMMINS SUCCEEDS Frederic E. Adams, who shot himself fatally Jan. 10. Adams was despondent over the problems encountered by the finance company, of which he was also chairman of the board. Cummins said that the bank's board members resigned from the board of the finance company because they "believe it is important for them to devote their full energies to management of the State Exchange Bank." In addition, he said, the resignations were "in keeping with the desires of the state and federal banking authorities." Randolph P. Wilson, a lawyer with Krieg DeValult Alexander & Capehart, said Friday that authorities had "expressed an interest" in there being separate boards for the bank and the finance company for several years. WILSON ESTIMATED that the law firm's study of the relationship of the two firms could last three to six months. In a prepared statement, Cummins said that "during the past several months, and particularly following the filing of the Chapter 11 bankruptcy proceedings by the finance company, there have been numerous rumors of improprieties by the bank and others." Five persons have been named to the finance company's board: Rex Figg, chief executive officer of the finance company; Sharon Brockus, secretary of the company; Donald Slyh, operator of Culver Accounting Services; Andrew Vernum, owner of Andy's Culver Clothier and The Shoe Stable, and George Schipper of Plymouth, a retired executive of United Telephone Co. - The Indianapolis Star

1983 - Feb 27 - Promotions of employees

Claudia Neff Promoted Claudia J. Neff has been promoted to the post of auditor at The State Exchange Bank in Culver.

A six-year staff member, Neff previously Swerved as assistant controller.

Carl W. Fox has been appointed Individual Retirement Account (IRA) Department manager at the Culver bank.

Fox has been with The State Exchange Bank 16 years and was formerly the operations manager and finance officer of the bank's Plymouth branch - Logansport Pharos-Tribune

1983- Feb. 28 - State Exchange promotes four

CULVER The appointment of Arthur L. Shafer as vice president and senior loan officer for the State Exchange Bank is among four promotions announced by Allen H. Cummins, president and chairman of the board.

Cummins also announced the promotions of ALLEN cummins Lawrence J. Miller to vice president, senior credit administrator Kenneth C. Aemmer to vice president and Mary E. Tousley to loan officer.

The appointments follow recent actions by the bank and State Exchange Finance Co., an affiliated company, to establish themselves as separate entities.

Executives of the bank and the finance company previously served in parallel roles in both institutions. State Exchange Finance, a bank holding company, has been reorganizing under protection of the federal bankruptcy court in South Bend.

State Exchange Bank, meanwhile, is in the process of merging with the Farmers State Bank of La-Paz, a State Exchange Finance subsidiary.

Shafer will supervise lending activities of the bank in Culver, Plymouth and Argos. He is a former vice president in the commercial division of the First National of Elkhart

Shafer attended Ball State University.

Miller, who has been with the bank for 14 years, will administer the banks loan portfolio and supervise the daily activities of the lending division. He previously was assistant vice president and loan officer.

Miller is a graduate of Vincennes University.

Aemmer will continue as manager of the loan service division. He has attended the American Banking Association Installment Credit School and the American Institute of Banking.

Ms. Tousley, who joined the bank three years ago, will specialize in real estate and consumer installment loans. She is a finance major at Indiana University at South Bend.

1983 - March - Bank Names New Directors

Three new members have been elected to the board of directors of The State Exchange Bank of Culver .

The new members are Dr. Vactor 0. Connell, Bourbon, Sam C. Schlosser, Plymouth, and Paul E. Winn, Culver . - Sunday, May 22, 1983 Logansport Pharos-Tribune

1983 - May 28, Bank offers to some of SEFCO assets

By MATT GALBRAITH Tribune Plymouth Bureau

CULVER The State Exchange Bank has offered to buy a substantial portion of the assets of the troubled State Exchange Finance Co. (SEFCO), according to bank chairman Allen H. Cummins.

Cummins said in a prepared statement released Friday the assets-purchase offer was made to assist SEFCO in meeting its obligations to creditors to the extent possible and also to permit a stronger (bank).

He did not say how much the bank wants to spend.

In addition, the bank proposes to assist SEFCO in liquidating remaining assets in an orderly manner, Cummins was quoted as saying.

A Letter of Intent, which outlines the banks proposal, has been delivered tb SEFCO officials, Cummins said. But he and others closely connected to SEFCOs reorganization plan, stemming from the companys Chapter 11 filing in December 1982, are not commenting on the details of the proposal.

Approval of it, he added, rests with the banks shareholders, SEFCO creditors, banking regulatory agencies and federal bankruptcy court.

SEFCO owes about $26 million to over 800 creditors.

Company officials have until July 30 to submit a repayment plan to the court, after receiving a 90-day extension.

Creditors are seeking full reimbursement from SEFCO. But Joseph Currens, who is chairman of the court-appointed creditors committee, would not say whether the bank proposal increases the chances of a 100 percent return.

I cant say at this time, Currens responded when reached Friday afternoon in Hamlet.

In a separate prepared statement, the creditors chairman said the proposal was reviewed Thursday. The committee, he said, believes certain improvements can be made to make it more acceptable and appropriate to incorporate into a plan for reorganization.

SEFCO chairman Rex, A. Figg, while not predicting how much creditors will get, has indicated a full return is unlikely: Most of the companys assets are in real estate holdings, and market prices have decreased their worth.

As a precautionary measure, attorneys for the creditors have filed a $5 million claim against the estate of the late Frederic A. Adams, former president and chairman of the board of both the bank and SEFCO.

Under the bank plan, Cummins said SEFCO assets would be purchased for cash and securities.

The bank, he added, also would go ahead with plans to merge with the Farmers State Bank, LaPaz, a wholly owned subsidiary of SEFCO.

Bank attorneys, hired on Feb. 2 to analyze the bank-SEFCO relationship and conduct an audit of the bank, are discussing terms of the proposal with - - South Bend Tribune

1984 - Aug 15 - Culver Bank Still Seeking Merger
CULVER, Ind. (UPI) - The State Exchange Bank Co. (SEFCO) will continue to seek a merger with Farmers State Bank of LaPaz, despite a setback by the federal government, officials said Tuesday.

Last week the Federal Deposit Insurance Corp. denied the original request to merge the two banks.

SEFCO said the merger is crucial to the reorganization of a bankrupt finance company which owned the Farmers Bank and was the sister company of the Exchange Bank located in this northern Indiana community.

The company is trying to recoup an estimated $26 million claimed by 791 unsecured creditors.

But the FDIC said the proposed merger was not promising. In a statement, they said the "proposed transaction would result in the formation of a bank with a very large volume of unsatisfactory assets uncertain earning prospects, and a very heavy volume of liabilities."

SEFCO president A. Lee Campbell said in a written statement that "the FDIC has expressed a willingness to reconsider the merger application."

An attorney representing unsecured SEFCO creditors, William Thorne of ELkhart, said that first-time denial by the FDIC is not unusual. - Logansport Pharos-Tribune


1984 April 25 Culver bank receives advertising awards State Exchange Bank ads

1983 - June - Bank Purchase Eyed
Culver (UPI) The State Exchange Bank of Culver is considering, the purchase of its sister company, the State Exchange Finance Co., which has filed for Chapter 11 bankruptcy.

Allen Cummins, chairman of the bank, said the deal would include buying the finance company's subsidiary, the Farmers State Bank in Lapaz.

The proposal would be subject to approval by bankruptcy court, bank shareholders, and governmental regulatory agencies. - Thursday, June 2, 1983 Logansport Pharos-Tribune



1983 - Aug. A. Lee Campbell Heads Bank
Culver — A. Lee Campbell has accepted the post of president and chief executive officer of The State Exchange Bank, Culver , effective August 15.

The announcement was made by Allen H. Cummins, who has been serving in the dual role as chairman of the board and president. Cummins will retain his responsibilities as chairman of the board. Logansport Pharos-Tribune Sunday, july 24, 1983


The 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 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.

1983 Oct 13, More changes at bank
State Exchange Bank changes leadership
By MATT GALBRAITH Tribune Plymouth Bureau

CULVER The State Exchange Bank, which is attempting to bail out the indebted State Exchange Finance Co., its former sister institution, has undergone a complete change of leadership, according to bank sources.

It is the local banks second change of chief executives in the last nine months. Allen Cummins, who replaced the late Frederic E. Adams as president and chief executive officer in December, 1982, and was board chairman, has relinquished both of those positions during the last two months.

The former president of Farmers State Bank, LaPaz, which is owned by SEFCO and is attempting to merge with State Exchange Bank, is no longer associated with either bank, sources confirmed today.

In August, Cummins was replaced as president and chief executive officer by A. Lee Campbell, who had headed the Peoples Trust Bank, Brookston, Ind. At the time, Cummins said the move was planned for several months to strengthen the bank.

Last month, Cummins resigned as board chairman. Campbell assumed the seat held by Cummins, although Herschel Umbaugh, a Plymouth accountant, has since been named chairman.

Umbaugh reported the news of the board shakeup in a letter to shareholders last week.

Neither Cummins nor Campbell could be reached today. Cummins, who lives in Plymouth, was away from home this morning, according to his wife, Marjorie. Campbell was detained in a meeting, a secretary said.

Mrs.Cummins said her husband is not now employed in any capacity with the Culver bank.

Cummins first joined the State Exchange Bank in August 1982, being named executive vice president. He was elected as president by the board of directors four months later, shortly before SEFCO filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

He was elected as board chairman last February.

At the same time, the bank was breaking away from SEFCO. Bank directors, who also had served on SEFCOs board with Adams chairman of both, resigned their positions with SEFCO.

Rex Figg was selected to head the finance company.

Just before Campbell was brought in to replace Cummins, the boards of the bank and SEFCO announced they had reached an agreement whereby the bank would purchase SEFCO assets as a way to assist the reorganization.

A SEFCO director, Donald L.Slyh, resiped a few days later, claiming the apeement was orchestrated by the bank with SEFCO directors not getting a chance to vote on it

The banks proposal awaits approval from a creditors committee, and the bankruptcy court.


1983 - Oct 14, Culver bank changes management again
By MATT GALBRAITH Tribune Plymouth Bureau

CULVER The State Exchange Bank, which is attempting to bail out the indebted State Exchange Finance Co., its former sister institution, has undergone a complete change of leadership, according to bank sources.

It is the local banks second change of chief executives in the last nine months.

Allen Cummins, who replaced the late Frederic E. Adams as president and chief executive officer in December 1982, and was board chairman, has relinquished each of those positions during the last two months. The former president of Farmers State Bank, LaPaz, which is owned by SEFCO and is attempting to merge with State Exchange Bank, is no longer associated with either bank, sources confirmed today.

In August, Cummins was replaced as president and chief executive officer by A. Lee Campbell who had headed the Peoples Trust Bank, Brookston, Ind. At the time. Cummins said the move was planned for several months to strengthen the bank.

Last month, Cummins resiged as board chairman.

Campbell assumed the seat held by Cummins, although Herschel Umbaugh, a Plymouth accountant, has since been named chairman.

Umbaugh reported the news of the board shakeup in a letter to shareholders last week.

Cummins first joined the State Exchange Bank in August 1982, being named executive vice president. He was elected as president by the board of directors four months later, shortly before SEFCO filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

He was elected as board chairman last February.

At the same time, the bank was breaking away from SEFCO. Bank directors, who also had served on SEFCOs board with Adams chairman of both, resiped their positions with SEFCO.

Rex Figg was selected to head the finance company. -SOuth Bend Tribune -




1984 - Feb 12 - In the article: Reorganization plan filed in bankruptcy court \ SEFCO
A contract for the anticipated merger of State Exchange Bank and Farmers State Bank, from which SEFCO, as the sole shareholder, would receive an amount of $5 million in common and preferred stock.

The new bank would retain the name State Exchange Bank.
* An agreement whereby State Exchange Bank would purchase from SEFCO $2.25 million in qualified assets, including loan accounts in the name of Plymouth Mayor Charles O. Glaub, Walter Glaub and former senior bank loan officer John J. Deerv, and also acquire, for $900,000, SEFCOs State Exchange Insurance Agency.

* And, an agreement under which several officers and directors of both banks would purchase a "substantial portion" of State Exchange Bank stock issued to Farmers State Bank in collection with the merger.


The reorganization plan also proposes naming a committee to "initiate, prosecute, compromise and settle" preference claims...

Most parts of the plan also must be approved by either bank shareholders, the state Department of Financial Institutions, the Federal Deposit Insurance Corp., and the Board of Governors of the Federal Reserve System before the court acts.


1984 - Apr - bank officials submitted a merger application to the FDIC and the Indiana Department of Financial Institutions.

1984 - August - Culver Bank Still Seeking Merger - The State Exchange Bank Co. (SEFCO) will continue to seek a merger with Farmers State Bank of LaPaz, despite a setback by the federal government, officials said Tuesday.

1984 - December Marshall County Bank Merger OK'd

WASHINGTON (UPI) - Federal authorities have approved the merger of two northern Indiana banks, although it is animproper marriage in the eyes of some creditors.

The Federal Deposit Insurance Corp. board of directors approved the merger of the State Exchange Bank of Culver and the Farmers State Bank of LaPaz Monday, citing increased capital and reduced contingent liabilities.

The FDIC staff had twice recommended disapproval of the union.

The new bank will be called the NorCen Bank and will have five offices. More details on the merger will be announced at Plymouth Thursday, officials said.

Donald F. Pfeiffer, FDIC supervising review examiner, said improvements in the merged bank's financial capabilities justified the approval.

Investors have pledged an additional $850,000 to the new entity since the FDIC first denied the merger request in August, said R. Matthew Neff, State Exchange Bank's Indianapolis lawyer.

Total resources for the State Exchange Bank are $102.7 million. - Wednesday, December 19, 1984 Logansport Pharos-Tribune



1984 - Dec 20 - The State Exchange Bank, Farmer's State Bank and State Exchange Finance Company have scheduled a press conference at 2 p.m. today in the Plymouth Public Library to announce further details Thursday, December 20, 1984 Logansport Pharos-Tribune

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, 1985, 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.

The State Exchange Bank which weathered the Stock market crash and depression without closing it doors ceased to exist...

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

State Exchange Bank Index

Sources: Culver Citizen
Logansport Pharos Tribune
Marshall county History, 1908
Rochester Sentinel
1948 Promotional Booklet of State Exchange Bank
1975/6 Booklet of State Exchange 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 was presentd to the Antiquartian Society of Culver on August 8, 1998) and edited by Harvey Firari in 1998, Jeff Kenney in 2005. and moreresearch has been added to it - by Judith E. (McKee) Burns