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/ V V - • • • • .. •;•• v-. §i> w- . PAGE 2 - WEDNESDAY. OCTOBER 10.1979 ew Carey Facility : "f • • -^f"-V•'•""-vT;.;^v >Pictured are Thomas F. Bolger, President of McHenry State Bank and Joanne Eppers planning the Grand 1 Opening Dedication of The Gerald J. Carey Drive-In and Operation Center for October 14, 1979. •T #• the continued growth of the ItHenry StateB ank has necessitated 0 continuing expansion of facilities* he bank moved to its present ion in 1956 and 10 years later it necessary to doublethe size of the building. A few years later additional vault space was added. The bank continued to grow and in addition to a shortage of space within thebuilding, traffic problems became acute. The Board of Directors determined that this could best be solved by building a drive-in facility so as to stack cars off the street. The change in Illinois banking law permitting the establishment of a limited facility within two miles of the bank, enabled the bank to open a second facility on the West part of the e«*y- The McHenry State Bank now porvide« service in three separate locations; namely the main building at the corner of Green and Elm, the Geraid J. Carey Drive-In F acility and Operations Center, and the Whispering Point Facility at the intersection of L iMian Street and the Crystal Lake blacktop. in response to many inquiries regarding the purpose of the three locations and of future plans of the bank; President Thomas F. Bolger issued the following statement: "Illinois is a strict unit banking state and the law does not perrtiit branching by commercial banks. The law does permit the establishment of two limited service facilities, one within 1500 feet of the main building and the second within two miles of the headquarters building." In the local situation, the Gerald J. Carey building is considered part of the main bank as it is located on the same property as the headquarters building. The law would permit all banking activities to be transacted at the Carey building. Whispering Point is the limited service facility permitted within the two mile limit. B olger stated that the main building located at 3510 W. E Im Street would be the hub of the McHenry State Bank operation. Located there will be the executive offices, the Trust Department; the Safe Deposit Vault, the Mortgage Loan Department, the Commercial Loan Department, fourteen universal tellers and most of the new account and customer service activities. The Whispering Point Facility is operating from atermporary building with plans being completed for a permanent structure. Present Illlnols law perm its only the accepting of all types of deposits which includes opening new accounts, receiving loan payments and cashing of checks. The granting of loans at a limited purpose facility is not permitted by law. The first floor of the Carey Building houses six drive-in lanes, a day and night depository and a small lobby with five inside teller windows. The first floor also includes the installment loan department and a new account desk. This building can handle almost all banking business,' but complicated and involved transactions are better accommodated at the main building. The second floor of the new building will contain the auditing, mailing and bookkeeping departments. This section will be served by an open stairway and also an elevator. A popular feature of this area is the customer service department where checking account holders may consult the bookkeepers regarding their account. Situated on the lower level of the Carey Building which is also served by the elevator are the employee lounges, mechanicaM-oom, employee dining room and kitchen, the proof department and a training center. F uture plans for the McHenry State Bank include the installation of automatic teller m achines. A new law permits each bank to disburse a' limited number of these units throughout its trade area. The local bank will install ATM's as the customer demand demonstrates the need. This is part of the Electronic Fund Transfer System which is sometimes described as a technology looking for a market. The bank does expect to install its first ATM soon in "VI either the main building or the Carey Building and will increase the unit* in accord with customer acceptance. As previously stated, future plans call for the building of a permanent building on the Whispering Point property. The popularity of this location dictates that construction begin as soon as possible. Facility Manager, Assistant Vice President, Donald Wattles, reports the handling of more than three thousand transactions a week in the temporary building. There have been many inquiries concerning the use of the main building. The present building figures very much in the future plans of the McHenry 3tafe Bank. After the Whispering Point Facility is completed and if continued growth Justifies the need, the main building will be enlarged. T entative plans call for an addition with a second banking floor being added. Bolger stated that future growth would dictate the time table for this expansion. In summary, Bolger stated that the Board of Directors recognizes there are some inconveniences for both customers and staff. He stated that it was felt that the added space and additional facilities would more than compensate for any inconvenience. It is a known fact that it is more convenient and more economical to have the entire operation under one roof, but the inconvenience that would have been caused by adding Ihe additional drive-in windows and the other needed space to the main building was prohibitive. The use of the Carey Building and the Whispering Point Facility will enable the McHenry State Bank to enlarge the main bank building when needed with very little interruption or inconvenience to either customer or staff. cHenry Bank Is Largest ort' « i*".r McHenry State Bank, the largest in ® Henry County, is one of McHenry's 9 oldest businesses. The bank's long history began on June, 1906 when a group of local eople applied to the state to organize i bank. Two days later the state onsented to such an institution in est McHenry, which at that time ^Svas a separate community with its n post office. > Originally subscribing to the $25,000 |$n capital stock initially authorized r the bank were Simon Stoffel, W. H. attles, Joseph W. F reund, P.S. ebster, N.J. Justen, and E. L. agner. They met in Stoffel's office $nd organized the West McHenry State Bank. On the first board of directors were E. L. Wagner, ^president, and P.S. Webster and Simon Stoffel, vice president, and Carl W. Stenger, cashier. The bank first opened for business „ Monday, Sept. 10, 1906 in the B refold building on the south side of Main St. The first employee was Julia Stoffel R eihansperger. I n 1914the board of directors moved r to secure a new building for their business. They purchased a lot west v,-of P .B . F reund' Saloon and then let a 00 contract for construction to "Nachtagel Manufacturing Co. of ^"^Orand Rapids, Michigan. Up to this time the bank's deposits had grown to nearly a quarter million dollars. The new building was ready to handle the expanded business by the spring of 1915. The capital stock of the bank was increased to $50,000 in 1916 and E .L . Wagner was named as the first chairman of the board of directors. Dr. C. H. F egers was elected president of the bank. , # t When the United States was engulfed in World War I, the West McHenry State Bank joined the Maximum War Savings Club. The .bank also handled the sale of liberty bonds for the government. Gerald J. Carey, who was to figure heavily in £".'t"he bank's future, was named as assistant cashier in 1918. T im e brought changes to the bank's organization. I n 1924 Dr. F egers died v 'and was replacd as bank president by Xarl Stenger. Then in 1926 Parker S. fr Webster was elevated fco president 'and Verona NieserV Kent was appointed cashier with Robert L. ^M/eber and Floyd M. F oss, who ? ' ^subsequently becam e president of the ° /Richmond State Bank, named as 'J assistant cashiers. # At this time Gerald Carey returned "j^ffom his military service and a stint ? as bank examiner to be appointed vice president and general manager. He was elected,, cashier -- in--the- t it n : • to Qf4 n h* following year. ^ Also in 1927 conditions improved * °.£md banking hours were adjusted to I.'Ttff low employees a half day off each e'(J"vYeek during the summer months. "'New employees included Harold J. . Bacon, who later headed a bank in * .'^Qrystal Lake, and Augustine M. Freund. Bacon was, appointed gssistant cashier in 1930. j® ,The original directors of the bank remained in control through 1930 when Simon Stoffel replaced Parker Webster, who died, as president. Frank Wattles was named chairman of the board in 1932. Weathering the vicissitudes of the "Bank Holiday" and the onset of a severe depression, the bank was strengthened by the election of William M. Carroll, Charles J. R eihansperger and Gerald Carey as directors in 1933. In the following year Joseph W. F reund and Dr. N. J. Nye joined the board. During this time the West McHenry State Bank took over the deposits and assets of the People's State Bank of McHenry and the R ingwood State Bank. Floyd F oss was appointed assistant cashier. The bank was admitted to membership in the Federal Deposit Insurance Corp. in 1935. Chairman of the board, Frank Wattles, died after thirty years as a director and he was replaced in 1937 by the election of William M. Carroll. ' Director Dr. N. J. Nye was replaced by Dr. Wiliam A. Nye. The bank joined the Federal R eserve System in 1938. By 1940 the bank was reporting that deposits had grown to a million dollars and in 1943 were in excess of two and one-half m ill ion dollars. President Simon Stoffel, the last of the original board of directors, died April 23, 1942. He had served as an officer and director for thirty six years. Gerald J. Carey was elected to take his place in the following year and held the presidency until his*, death In 1972. The bank name was changed to McHenry State Bank in 1946 and deposits were stated as more than five m i 11 ion dollars. James E . L arkin was newly appointed assistant cashier and two years later Verne E . Harrison and Thomas F . Bolger were also named to this position. In 1949 the bank's capital stock was increased to $1.00,000 and again in early 1960 to $200,000. This was s^jon doubled to $400,000, and in 1968 a ten for one split reduced the par value of the stock to $10 per share and the capitalization was increased to $800,000. Presently capital stock is - listed at $1,600,000. Deposits were " increasing also during this period from $9 m i I lion in 1953 to $113 m i 11 ion now being reported. In the early 50's the McHenry State established the five day week. Robert L . Weber replaced as director Joseph W. F reund who was the last of the original stock holders connected with the bank. Because of the increase in resources plans were prepared to reloccrts the bonk -to the -central par*-- of town. In 1956 the bank moved into a new colonial stylebuilding including drive up facilities (the first in the county) at 3510 W. E Im St. and the rapid growth forced the bank to double its space just ten years later. Bolger, who had been appointed cashier the previous year, was elected in 1959 to the board of directors replacing Charles L obby of Wm$t McHenry StateBankon Mr ,n Street 1915. R ei hansperger, who had died, after serving has vice president and director since the Depression days. Dr. Wiliam A. Nye replaced Judge William M. Carroll as chairmanof the board in 1971. In 1972 the bank suffered the loss of Gerald J. Carey who was chief executive officer for more than forty five years. Mr. Carey was considered by the communty as the greatest single factor in the success of the bank. His judgment guided the institution through the difficult depression years and led it to become the largest bank in McHenry County. Esther M. Carey, who still serves, was elected in 1973 to replace her husband on the board of directors. Robert L. Weber was named as president. New nam es were added to the board of directors in 1974 which included Elmer Adams, John Cowlin, Lenora Frisby, Ormel J. Prust, and Francis M.Schmitt. Mr. Weber was promoted to chairman of the executive committee. Thomas Bolger became the eighth president of the McHenry State Bank and retains that title tod ay. Promoted to the bank staff in '74 were Ormel J. Prust, executive vice president; Edwin J. Becker, Jr., cashier; Robert B. Schneider, vice president and trust officer; Peter Keller, auditor; and Yvonne R yden, credit officer. The bank also increased its safety deposit capacity. Other recent staff changes include naming Phil Oeffling as loan officer and the acquisition of John Murphy as a credit officer. During the current year Mrs. L orraine Nye replaced her deceased husband Dr. William A. Nye on the board of directors and director and long time bank officer, R obert L . Weber died. In the early seventies the bank had been acquiring adjoining properties near its present location anticipating the need to expand. I n 1977 plans were firmed up for a new building and drive-up facility on R ichmond Rd. at Pearl St. President Bolger had expressed a concern about the lim i tat ions of the present building. "It was sometimes difficult to provide the type of service that has become the trademark of the McHenry State Bank," he said. As president Bolger reported in the 1979 annual stockholders' meeting, 1978 was the largest year yet for the McHenry State Bank whose reported assets $124 million, interest paid to depositors of almost $5 million and a payroll exceeding $1 million. E dwin J. Becker, Jr., vice president and casfrier, advised that the new operations center on Richmond R d. and the Whispering Point drive-in facility were due for opening early in the year. He noted the importance of the bank to the community revealed by the fact of 45 percent of bank income being derived from interest on mortgage loans and that 63 percent of the bank's expense was due to interest paid to savings depositors. This indicated that the money was going back into the community. McHenry State Bank has grown along with city, the trading area, and with banking technology. It has survived econom ic situations that has foundered other less weW run brinks. It has adapted to and implemented, for the benefit of its customers, the increasing government regulation of banking. And most of all in 1979 it has greatly increased its physical facilities with the new Gerald J. Carey Building and the Whispering Point Drive-in building, and it is looking to further improvement of its capabilities with available electronic technology and expansion to meet the challenges of the future. •i • . . ? :«£ w hsmim - , . * ? i * wmmmmk ' 3s "'i- - " « mt cin ' * > 'k' ' i * 4"i T h e H o m e o f McHenry StateBankln West McHenry from 191Sto 1956 Bank Involved In Many Organizations The McHenry State Bank, in addition to being a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, also holds membership and has officers active in several banking associations. Pete Keller, the bank's Auditor, serves as Vice President of the McHenry - Boone County Bankers' Federation. T he McHenry State B ank has been a member of this F ederation since the inception of this bi-county Association. Donald H. Meyer and Thomas F. Bolger are bank officers who h,ave served as presidents of the F ederation. Membership is also held in the Northeastern Chapter of the Bank Administration Institute. B.A.I, deals specifically with auditing and operations. One the state level, the local bank holds membership in the Illinois Bankers Association, the Independent Community Bank in Illinois and the electronic funds transfer organization known as Electronic Funds Illinois (E.F.I.). The Illinois Bankers Association was founded'in 1891 at a time when there were many private banks operating in the state. In 1975, the Illinois Bankers Association retained Peat, Marwick, Mitchell & Co. to analyze the effect of electronic funds transfer sy stem s (E F T S) on the Illinois banking community. Peat, Marwick, Mitchell 6 Co. recommended that a statewide, bank- owned and bank-operated cooperative network be established to serve the Association of America was founded in Minnesota in 1930 by a group of bankers who were gravely concerned about the survival of community oriented institutions. The small group of bankers had little idea that they had created the nucleus of a national organization of home owned and locally managed banks. Today, membership of the I BAA totals almost 7500 banks in 45 states. A sister organization, the Western Independent Bankers, operates in the nine states of the Twelfth Federal Reserve District. ^Throughout the years, the IB AA has been dedicated to the belief that the public interest is best served when there are many units competing in the marketplace. It holds that a diffused banking structure is best suited to our nation with its wealth of geographical and social variety. It believes that trends toward concentration of economics and financial power into successively fewer hands are contrary to the American ideal of government by the people and its system of checks and balances designed to prevent dangerous centralization of political power. fs one of the oldest professfonaT^ Thorn as F . 6 olger, P resident of the particular needs of banks in Illinois in the area of EFT. Accordingly, a Steering Committee of interested Illinois bankers was formed to fulfill initial planning and directing roles in the initiation of the bank network. A successful membership drive led to Electronic F unds Illinois, Inc.'s incorporation on Jan. 20, 1977. "Electronic Funds Illinois, Inc. was organized to operate on a cooperative non-profit basis to (a) develop- , provide and operate as permitted by law, a system for use in connection with the electronic transfer of funds between commercial banks and their customers engaged in the sale of personal property and services at retail; and (b) provide other related banking services as permitted by law.. At the national level, the McHenry State Bank is a member of the Independent Bankers Association of America, The American Bankers Association and the Bank Marketing Association. The American Bankers Association is a national trade association of the commercial banking industry. Founded more than a century ago, it groups in the country. Its broadly based program of support for banks and their customers in built around a single long range goal: to enhance the ability of America's bankers and banks to serve profitable and effectively the wants and needs of the American public. Approximately 90 percent of the nation's banks are members of the A.B.A. The Independent Bankers McHenry State Bank, currently serves as F irst Vice P resident of the IBAA and will succeed to the presidency at the Golden Anniversary Convention next March. The Bank Marketing Association is dedicated to the principle of providing its' members with effective advertising that is beneficial to bdth the bank members and its' custom ers. Looking Into Computer Future In about ten years the country will be into computerized in-home banking, predicts a midwest banker. He envisions a calculator like computer terminal connected to banks by cable television. This development will enable many people to pay their monthly bills and do routine banking from the home, he claims. This is the future of banking as some see it, but skeptics are questioning the merits of the EFT (electric fund transfer) and the debit card, which is the individual's key to oper at ing such system s. As of the end of last year between 5 to 10 million debit cards were in circulation. These had been issued by banks, savings and loan associations, and one national bank-card plan. At present there is only one genuine cashless EFT system operating by a bank in California. It involves a checkstand computer terminal in a grocery store connected with the bank. With a codework and the plastic card, the system is activated to immediately transfer funds from the holders bank account into the store's account. Other systems cannot transfer money between two accounts by electronics. In other parts of the country a custom*r concenter a grocery store (Conttnu9<Ton page 3} ,