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Kids" Go To Work ttpMM Inbanco Computer Center, Located In Volo, Il l inois each bank realizes certain advantages which would not be provided by contracting with a correspondent bank for services or by running a single bank data center. Services provided by correspondent processors are generally less flexible than independent banks would prefer and tend to be functionally less advanced than what the correspondent provides to its own operating departments. Inbanco members therefore are in a unique position of getting the most up- to-date batch and on-line systems and a high level of customer service at a monthly cost which is very competitive with the less advanced systems provided by correspondent service centers. McHenry State Bank is a charter member of Inbanco. Vice president and cashier Edwin J. Becker, Jr. serves as secretary of the computer CONGRATULATIONS Banks have always been concerned about the education v of their employees. In 1900 a group of bankers established the American Institute of Banking to provide a vehicle to maintain and improve the skill* required of bank personnel. The AIBN now has over 600 chapters which design and administer education and training programs (based on local need. These chapters are run by a board of volunteer bankers much like a school board. To assist these chapters the American Bonkers Association sets educational policies and develop -courses and programs for the institute. The American Institute of Banking is the educational arm of the American Bankers Association and is the largest industry-sponsored adult education organization in the world. AIB has over 250,000 members and has over 150,000regular students each year as well as 7S 100,000 participants in one to three day short courses and seminars. Most courses are held in the evening and are taught by experienced bankers. "Bankers helping bankers" is a phrase common to AIB. Where special expertise is required, professionals from other fields are employed. Since only member banks can participate in AIB programs, most banks are members. Those banks located in remote areas can avail themselves to AIB education through 1. correspondence study. 2. study team - a group of bankers studying together, or 3. accelerated study - self study and "testing out" procedure. In addition to bankers, employees of clearing house associations, bank supervisory agencies and other government financial agencies may participate. OTHER SCHOOLS F or the student who desires further banking education, graduate schools of banking are conducted at universities across the country. Probably the best known of these schools is The Stonier Graduate School of Banking sponsored by the American Bankers Association at Rutgers University. In addition, the Pacific Coast Banking School at the University of Washington, the Southwestern Graduate School of Banking at Southern Methodist University, the Graduate School of Banking at the University of Wisconsin and many other schools offer the banker an opportunity for higher education. Also, some banks regularly send qualified personnel to local colleges and universities for additional study. Bankers associations are numerous and are orgaMzedon a national; state, county, district and regional levels. Many of these organizations offer schooling in the area of operations, auditing, savings, credits, investments, mortgages, marketing and public relations. All of these associations contribute materially to increased banking competence and better banking service. The opportunities for education through these organizations "ttr# limitless. Few enterprises offer wider or more comprehensive opportunities for education, study, and self-development than banking and for all bankers, from the brand new employee to the president of the bank. The Auditing Department seeks to maintain a low profile but strives for a high level of effectiveness, notes Peter J . K eller , auditor. He views the departments work as a management function which independently evaluates the adequacy, effectiveness and efficiency of the systems of control within the organization and the quality of the ongoing operations. What this means, he adds, is that his office watches and tests the various systems set up to ensure employee honesty and minimize mistakes. When there are problems with safeguards, his people analyze the situations and make recommendations for corrections or modifications to the board of directors. If the auditors, by showing that such changes are cost effective (worth the money by preventing loss), can win approval of the recommendations, cnanges are made to the systems and the internal security is improved. The most important asset in the auditor's Job, Keller says, is imagination to find ways that people might use to beat the systems and then work to prevent this. But the actuclf auditing program would be a dull thing to discuss, he concedes. It consists of 25 pages of technical instructions. While evaluating the systems, his office can be routinely put on to problems by some department reporting some unexplained discrepancy in records or transactions. The auditors take it from there. Keller has a B.S. in finance from Northern Illinois University and has attended graduate school classes at De Paul University at Chicago. His education continues with special classes in taxes at McHenry County College, and course in banking laws. Carol A. Scholle, assistant auditor was appointed to this position about 8 years ago, having risen from the ranks in the auditing department. In 1963 she began her career with the bank. Dorothy L ewis is the third member, of the auditing team.* McHenry County Title Co. Modern banking in dependent on the almost infinite capacities of the computer for the necessary record storage and intricate computations and the rapid preparation and printing of periodic statements and reports. McHenry State Bank has cooperated with a number of other Institutions to form and operate Iribanco which makes advanced computer capabilities available to participating members. Inbanco, the Independent Bank Computer Corporation located in Volo, was formed in 1972 by a group of independent banks and the Weiland Computer Group as a bank service corporation dedicated to serving data processing needs of banks to the north and west of Chicago. Since that time the corporation has grown to a total of 16 banks whose combined assets are $1.5 billion. ^ The fourteen owner banks each own 5 percent of the corporation for a total of 70 percent of the outstanding stock Jwlth Weiland holding the remaining tfc percent. The Weiland Computer i^roup and the individual banks each carry one vote at board of directors meetings which are held monthly. Inbanco contracts with the Weiland Computer Group for basic management services which include all personnel necessary to provide the following: data center management, customer service, computer operations, accounting, internal auditing, personnel, purchasing, marketing, and facilities planning. As shareholders in the corporation Bankers Off To School Past Directors Of McHenry State Bank Lobby of new Gerald J. Carey building It takes many people, giving a great deal of thought and planning to a project as large and complicated as a bank ser­ vice facility, to accomplish what the McHenry State Bank has accomplished with their new Gerald J. Carey building. 4t--is an attractive, functional, well designed edifice and a welcome ad­ dition to McHenry's business scene. We offer you our congratulations and best wishes on this important occasion. ABSTRACTS OF TITLE-TITLE INSURANCE ESCROW SERVICE 1(11 N. Throop St, Woodstock, III. . 338-1140 Auditing Low Profile But Effective Audit Department: from left-Dorothy Lewis; Carol Scholle, assistant auditor; and Peter Keller, auditor. Each depositor insured to S40XXX) FEDERAL OEPOSIT INSURANCE CORPORATION Investment In Future Through Student Loans An investment in the future is what the McHenry State Bank views as its interest in student loans freely available to area young people. McHenry S.tate operates under the Illinois Guaranteed Loan Program, which is administered from the Deerfield, III. headquarters. The loans are not a profit making item but are considered as a community service which looks to returning to the community trained and educated people who wilI remember a friendly bank when they need one later. Virginia Mroz, who has been administering the loans recently, says there has been up to $1.5 million loans issued • since the program's inception about 12 years ago. There are 600 loans on the books which, allowing for repeaters, represents probably 400 students benefiting from this program. About 1200 loans have been made altogether. The Schools attended include local, state, out of state colleges and universities, and trade schools, all beyond the 12th grade in level. Mrs. Mroz says the delinquency rate on repayment for this bank has been very low, mostly because the bank knows the people seeking the loans, and conversely the borrowers and their families usually have a close relationship with the bank. The loan is an expression of the bank's confidence in the student's word and his arrival at maturity. The interest rate of the student loans is presently 7 percent and repayment is not required until a designated period after the student completes his educational program. The rate makes the loan non-profit, but the risk is assumed (under this program) by the Illinois state government who, in case of student default, pays off the loan and assumes collection responsibilties. The goWFhm ent is in effect the cosignor of the note. Many applicants are unaware of what aid is possible and the fiscal requirements of their college career and thus fail to seek the available funds. She said there is no state limits to the loan program and believes the state loan program is more flexible than its federal counterpart. R ules for adm 'mistering loans have changed, Mrs. M roz notes, and now no income test is applied. Availability of funds is dependent somewhat on the financial climate since the student loans compete with the regular lending and investment programs for available funds. Of interest to applicants she added is the provision that student loan obligations cannot be erased by bankruptcy, according to recent rulings, and the minimum monthly payment, when repayment begins, is $30per month. The government pays the interest while the student is in school, but when repayment begins, interest is added to the outstanding obligation. V* ^GEUJVEDNESDAV. OCTOBER 10,1979 I "Whiz DR. WILLIAM A. NY £ was a contributing force to the success of the McHenry State Bank. He served as a Director of the bank for many years and served several years as Chairman of the Board of Directors, R OB E R T L . WE B E R spent 55 years In banking In McHenry. Most of these were with the McHenry State Bank. He served as President of the bank In 1973 and was a member of the Board of D I rectors at the time of his death In 1979. C H A R L E S J . R E I H A N S P E R G E R served on the Board of Directors until his death In 1958. Mr. Relhansperger was Vice President of the bank for many years and was In charge of the construction of the main bank building. W I L L I A M M . C A R R O L L s e r v e d a s Chairman of the Board of Directors from 1935 until 1971 when state taw prohibited Circuit Court fudge*, from serving on bank boards.