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In Savings gfcAT U l_47v T he l i fe blood of a bank is the money o j oi l able for invest ing pnd for f i r . c lncing prof i table enterprises v-hich >n turn enables the bank to earn rt i f iey. This money largely comes f i .c.n the mult i tude of individual savings account and cert i f icates of d;. .- .?osit held by people in the community. Overseeing the more than $113 mi l l ion in deposits at the M- Henry State Bank are vi te president. Ronald J. Vacula and hi* c s'stant Chris Marke. Vacula is just i f iable proud of the r ruber, Variety and size of the t ounfst-deposit at the bank and i ims about savings plan " I f i t 's i tnble anywhere, i t 's avai lable r. ? e He notes that they presently 've over 19,000 passbook accounts taining over $42 mi l l ion and 7,500 'ders who have invested $47 mil l ion cert i f icates of deposit . He expects « bank wi l l pay out over $6 m i l l ion in i «t est: end of the year. In Hit iolv ' mfi jMj is $550,000 in Christm as club savings and undisclosed amount in "Silver Savings" accounts, now known as 90 day certificates. Vacula states that his department is charged with accepting deposits from all bank locations and to pay the maximum interest allowable on all accounts. H e points out that the bank compounds interest; daily on all a.c counts^ ex cp^p.t on ,six month ceryfiCates^foriwhich it is^prohibited by Jaw: k^P --sv a Instrumental in maintaining the savings accounts are the tellers at all three iocations and the six savings machines. All passbook records are fully autom ated. Vacula rem inds one that although a number identifies a person's account in the computer system, the bank considers a patron as an individual, not a number. Without considering the effect of the computers on the number of employees required to maintain the records and to prepare the required reports, Vacula says that much of the service being offered would not be- possible without the machines. These now are used to maintain accurate and up-to-date customer information and addresses and are used to prepare balances, reports and statements for mailing. Currently balances on an individual account can be determ ined literally by the push of a button with the assistance of "Ma Bell" and Inbanco, the computer center in Volo. Vacula says the routine work of his department includes reviewing reports of transactions daily for accuracy and obvious discrepancies and preparing the periodical reports required for the various federal, agencies. The bank is a member of the federal Deposit Insurance Corp. and of the Federal Reserve System. His department maintains the IRA's (individual retirement accounts) and is responsible for the annual preparation of IRS for 1099 notice of to the McHenry State Dank We at McHenry Ready-Mix Co. Inc. have been a part of the McHenry business scene for a great many years. We have experienced growth and suc­ cess along with the McHenry State Bank, and we are proud to be associated with McHenry's progressive and respected business community. McHenry Ready-Mix Co. Inc. congratulates the McHenry State Bank on this auspicious occasion and wishes them continued prosperity. $20 Million In Trust Assets Oneof the newer of the bank's many divisions, organized about 1967, is the Trust Department headed by vice presidents Lenora F risby and Robert Schneider, who are both trust officers. President Bolger recalls that originally McHenry State did not consistently solicit trust business, but the Board of Directors decided that if it was to offer this service it would develop the best trust department outside of Chicago... This goal has been reached and the department now holds about $20 million in assets. It also administers several hundred land trusts, a popular ifem in northern Illinois. Bolger notes that a knowledgeable trust department is necessary for a growing suburban area bank. The trust officers are well informed, and their ability to provide professional advice on truft services substantially contribute to the commercial growth of the bank. Trust officer F risby detailed some of the functions performed by the staff which under a number of individual agreements acts as fiduciary agents for all types of trusts. Under land trusts, she notes, the bank holds title to relal estate and acts as trustee while an individual or company maintains a beneficial interest in the trust. The bank will assume guardianship of legally incompetent or minor persons, manage the assets of living trust* or life insurance trusts for beneficiaries. In many cases the bank is named as the administrator of life insurance benefits and also manages assets for people under agency accounts. F risby adds that the trust department is now involved in estate planning and setting up and maintaining K E OGH (retirement savings) accounts. She notes that a more sophisticated public has become estate conscious and now seeks the benefits of trust agreements, formerly a province of the more wealthy. In managing affairs for other people the trust staff does a lot of things the average property owner normally takes care of, hiring persons for m aintenance work, reviewing and paying bills, consulting with attorneys, all with the aim of carefully conserving the assets entrusted to them. Trust officer Schneider is also an attorney and specializes in trust related agreements and problems. Schneider's educational background includes a B .S. In econom ics from the University of Wisconsin, two years in thearmy, and then a J.D. in law from the U. of W. law school in 1967. After 3 years of law practice in Kenosha and 4years with the T rust Department at the F irst National Bank of ^(enosha, Schmeider joined the McHenry State Bank's trust department on Feb. 15, 1974. Lenora .Frisby started with the McHenry State Bank in 1956 as a secretary and progressed through promotions to her key spot in the Trust Department. Previously she had 10 years experience with banks (Cont inued on page 8 ) M McHenry Ready-Mix Co.Inc. A SUBSIDIARY OF McHENRY SAND AND GRAVEL 1819 Dot Street McHenry, Illinois Phone::385-4920 Plants Centrally Located in McHenry Cr Lake County Bank Adopts New Name Taken form the files of July 12, 1928 C It izens State B a nk i s the new nam e adopted T uesday evening at a meeting of the stockholders of the F ox River Valley StateBank. Theelection of directors was also held, in which several new names were added to the board. A plan of reorganization of the bank has been in progress for the past year, which is now nearing completion and it was the general feeling of the stockholders that the institution is now on the way toward a happy growth and prosperous future. The new name was adopted by a unanimous vote of the stockholders present. It was chosen from a long list of appropriate names which had been suggested and it is believed it is one that will mark the beginning of a new era. and an upward turn in the b a n k ' s a f f a i r s . NE W BOARD OF D IRECTORS In the election of a new board of directors the following names were included: M.H. Detrich, Chas. F. Renich, William Welch, Fred Pabst, Dr. David G. Wells and Victor H. Thiele. Dr. Wells, Mr. Welch and Mr. Detrich are all known here and need no introduction. Chas. F . R enich of Woodstock is the owner and publisher of the McHenry Plaindealer and publisher of -the] Woodstock Daily Sentinel and is well known in McHenry, where he takes an active interest in public affairs concerning the development and growth of the community. F red P abst is president of the Pabst Chem ical Company of Chicago and is a man well qualified to serve as a director. He Is a successful business man and well known in Chicago business and social circles. Mr. Pabst has a summer home in the Fox R Iver near McHenry and the surrOurtding community. \ PLAN TOMAKE IMPROVE ME NTS Victor H. Thiele, the cashier of the bank, has had twenty two years of experience in Chicago banks and has served as a director on several Chicago banks. He is now a resident of McH enry and during the short time * he has been here has won the respect and confidence not only of the patrons of the bank but of the public in general. P lans are also now before the board of directors for a general rearrangement of the interior of the banking room, which, if made, will add much to the convenience of the public in transacting business at the bank. r i g s A c c o u n t D e p a r t m e n t f r o m t h e l e f t - V i c k y Pat Lewis and R on Vacu la , v ice pres ident . Not p ic tured k i n g e r . M a r y D i P r i m a , L o i s T u r c o t t e , C h r i s M a r k e , C h e r y l W e b e r ' . ' earnings for all accounts. He notes that he must keep up with the constantly changing federal regulations affecting accounts such as the notorious "Regulation Q" governing interest. Vacula's background includes time at Elgin Community College, Marquette University, several years in the Marine Corps and a varied work experience before joining the McHenry State Bank in 1961. He, as, most of the officers, rose through the ranks from starter jobs to assistant cashier and bank officer.' H e attended the various banking scho&U to learn his croft and like executive president Prust attended the graduate school of Banking at Madison's University of Wisconsin campus. Ins ta l lment Loan Depar tment : f rom the le f t -Judy Mazr in ; K a thy B lake ; James E . La rk in , v ice pres ident ; Ph i l ip R . Oe f f l ing , loan o f f i ce r ; Pa t Cervantes; and Rose Wagner . Installment Loans Popular At Bank Installment loans account for $10,800,000 of the banks investments with about 50 per cent of this amount in car loans, reports Philip R. Oeffling, loan officer, who administers all installment loan operations. This category covers loan for automobiles and home improvem ents and personal loans. Not included in these figures are student loans. This department also deals with a form of loan which provides a credit reserve to facilitate overdraft checking and revolving interest charges. In addition limited commercial and real estate loans are offered to qualified account holders, Oeffling indicates. Oeffling outlined the normal loan procedure which starts with the application. The information given by the customer is verified and evaluated along with the banks knowledge of his experience in handling his affairs. Further information is available from credit bureaus about his experience with other creditors. If necessary, loan officers will ask for a discussion of problem information. Once approval is given, the bank has only to complete the loan and note paperwork and get the appropriate signatures, then disburse the proceeds into the applicant's account or in the form of a draft or check. A paym ent book is prepared or schedule set up (automatic transfer of funds from checking or savings accounts is possible) and the customer begins his credit history. Oeffling notes that the bank believes the best way to avoid trouble in loans is in the beginning when the loan is negotiated. It should fit the needs and the ability to pay of the borrower besides considering the restrictions of the bank's own requirements and the laws. Also setting dates for payment during the month to avoid a number of debts falling due in a short time is also desireable. He emphasized that the bank watches out for the borrowers' interests in making these arrangem ents. Oeffling cited some statistics illustrating activity in this area. Of the 3,521 loans in effect as of Sept. 28, besides the almost 50 per cent auto loans, 20 per cent were personal loans, 10 percent hom e improvement, and the balance miscellaneous, including financing of equipment for homes and shops, appliance purchases, recreation vehicles and equipm ent and so forth. He also noted that $8,775,000 in new loans were granted during 1978. The average length or term of a loan, which can range from 6 months to 10 years, is 35 months and average value is $3,850. The limit is $15,000. •^Oeffling said a law change will permit a term up to 15 years and an upper limit of $25,000. The add-on interest ceiling now is 7 percent and will go to 9 percent. Add on interest differs from regular mortgage or loan interest in that the interest is com puted in advance and is added on the balance of the loan. This makes the effective annual rate higher than the stated rate depending on the Iwvgth of the repayment period. If an installment loan is repaid early a rebate is due and is figured on the "Rule of 78's." A method for computing the unearned interest. Oeffling said that rem arks made by recent state and federal bank examiners revealed that the McHenry State Bank's.;Hoan repayment experienceis "real good." He outlined the procedures for following up on delinquent borrowers and indicated that it was more of a request for information and counseling procedure unless it was determined that a deliberate attempt was being made to avoid the obligation. Three types of equipment aid in qualifing applicants for loans and for preparing the related documents. These include the CRT or computer remote terminal for putting in or retrieving information frorn the Inbanco data center; a microfiche reader to determine the current status of a custom er's account; and a preprogrammed calculator which figures automatically the terms, amount and interest rate of the loan for inclusion on the notes and papers. This latter machine replaces the voluminous tables to which banks formerly had to refer for these determ inations. Oeffling is well qualified for his position as loan officer. He started with the bank in 1970 and, after a year and half interruption for army service in Viet Nam, returned to the installment loan department where he has been employed since. He attended Northern Illinois University and appropriate banking schools as required. James L arkins, who is also a loan officer, started with the bank in 1940 as a bookkeeper and teller. After 2'/i years military service during WWII, he returned to the bank and in 1956 was appointed loan officer. He is also a bank vice president. Pat Cervantes who had worked from 1969 to this year in the note department, is in a training program for loan officer and will attend a school for this purpose at Ball State University in Muncie, Ind. PAGl. 6 WEDNESDAY. OCTOBER 10.1979 ( Cpfj f inued from page 5j_. , sysfom. ' l ane also served as cashier »- arte! 'oaf j off icer. At McHertry he has' served in al l qreas before sett l ing into- .•< the "Discount" sect ion. t one's educational background includes an advanced certificate from the American Institute of Banking (Racine-Kenosha area) and he is a graduate of the Graduate School of 6 anking, University of Wisconsin and Gt,ten*ded the I ending School at the ^.Diversity of Oklahoma in Norman. • • i - . Don Meyer has a 15 year record of " service at McHenry and has worked up through the ranks from the tellers' cage to assistant cashier and earning selection as assistant vice president. • Meyer attended Blackburn College and was graduated from the Commercial Lending School at the University of Oklahoma School for Bankers at Norman. In addition Meyer attended the usual classes for bankers at the various schools in this area. Meyer has specialized in installment, commercial and real estate loans. Meyer shares with president Tom Bolger the distinction of having served as president of the McHenry and Boone County Bankers' Association. Meyer was president of the two county federation of bank people in 1968 and '69. Vacula has developed a philosophy based on the observation that all a bank can sell is service. So he emphasizes that employees should make a customer feel well treated with courtesy and service. A good teller, he said, developes a sixth sense about how a customer is reacting. The bank, he believes, functions as a unit which requires the cooperation of all personnel from the president down to the new em ployed Their interaction makes the unit fiction properly. He also encourages employees to make suggestions and customers to comment on their treatment.