History of DSB

DeMotte State Bank opened its doors in 1917 as a locally owned community bank. Amidst the dramatic changes in the banking industry over the past several decades, DSB has held fast to its community bank roots. The bank's philosophy of providing personalized, quality service at the community bank level remains unchanged.

1917-1940

The ground for the first bank building was purchased from John Bunning and was located just south of the railroad on what is now Halleck Street in DeMotte. The bank started out as a privately owned bank with $10,000 in assets and two officers; president, John Bunning, and cashier, John J. DeKock. There were five shareholders; Daniel Wolf, Frank M. Hart, Albert Konovsky, Henry C. DeKock and Art L. Lagaveen.

When the stock market crashed in 1929, the U. S. Government ordered that all banks be closed. The Bank of DeMotte, the original chartered name at that time, was closed for only one day and was one of the few to survive the crash. Due to the intervention of August Schultz and stockholders who contributed their resources to keep the bank open, the bank rallied and remained solvent throughout the Great Depression.

By 1933, the bank had grown in assets to $114, 582 and was led by Frank M. Hart, bank president; A. Crawford, vice president; Harry Rathburn, cashier and Frank M. Hart, Jr., assistant cashier.

The bank was robbed in 1937 (at machine-gun point) by three men who escaped with $2,422.32. President Hart tried to stop the robbery with a gun that was kept at the bank, but wasn't able to release the safety catch in time. The trio were later caught and prosecuted. All losses were covered by insurance.

1941-1979

The World War II war effort brought prosperity back to the country and put everyone back to work. Sweeping changes in the laws governing banking institutions in 1942, ordered banks to be chartered by the state in which they were located and put stringent government regulations in place. The bank was again chartered, this time as the DeMotte State Bank. The board of directors were: Henry Swart, president of the bank from 1942-1959; August Schultz, Cornelius Westerhoff, Henry C. DeKock, Otto DeYoung, Albert Hamstra and Andres Crawford. Westerhoff became bank president in 1959 and remained in that capacity until 1966.

During the 1960s the DeMotte community experienced much growth, and it became apparent that a larger bank facility would be required. Paul Bauman, bank president from 1966 to 1983, steered the bank through the growth period of the 70's. In 1971, the Board of Directors paved the way for a new building to be constructed at 210 South Halleck Street. Since that time DeMotte has experienced strong growth, as has the bank. The current main office location has been expanded five times.

Prior to deregulation in the late 1970's, banks were permitted to offer only a narrow range of products which were limited to non-interest bearing checking accounts, savings passbooks, and a four year certificate of deposit. After deregulation, a wide array of services and products could be offered to customers which has transformed banking into a science.

1980-Present

Not only did the bank have to deal with deregulation and the high interest rate environment of the 80's, it was also faced with the change in banking structure. Hometown banks were originally protected by law in that a bank from another community could not branch into an area where a main office bank was located. In the 1980's, this protection was lifted. Banks were allowed to branch into towns within counties that were contiguous to where their main office was located. Donnie R. Morrison was bank president from 1983 to 1988.

In 1985, Senate Bill-1 was passed. The bill allowed out of state banks to purchase Indiana-based banks. According to Donald E. Goetz, who became president in 1988 and is still at the bank in that capacity, the banking industry has experienced tremendous consolidation under the guise of economies of scale. During that time, according to Goetz, the Board of Directors of the DeMotte State Bank felt that there would be no economies of scale experienced and decided it was in the best interest of the shareholders and customers for the bank to remain a locally owned and operated institution. Goetz further felt that the change in this regulation presented a "window of opportunity" to bring community banking back into towns that lost their "local bank".

In 1981, the bank opened a mini-branch location in the Tysen's Family Food Center in DeMotte, making it possible to offer extended banking hours and added convenience. DSB also offered Jasper County its first Automatic Teller Machine (ATM) in 1981, making 24-hour banking available. DSB further realized that in order to be more competitive, the bank needed to expand into other markets. Since then the bank has opened offices in the following markets: Morocco (1987), Lowell (1991), Knox (1992), Wheatfield (1995), Hebron (1996), Cedar Lake (1999), Kouts (2005), Roselawn (2005), and Rensselaer (2007). The bank currently has 12 ATM locations.

In 1994, DeMotte State Bank became the second bank in the state of Indiana to offer "Image" DDA statements. DeMotte State Bank was among the first 20 banks in the nation to produce this new statement format that gives customers an image copy of their cleared checks in check number order. Customers appreciate the convenience and efficiency that these statements afford. Also in 1994, the bank constructed a 4,000 square foot 'Operations Center' which houses the bank's computer equipment. In 1995, the bank began data processing in-house. Today the bank processes over 20,000 items per day on average.

From two employees and $10,000 in assets in 1917 to over one hundred-fifty employees and $330 million in assets in 2007, DSB has seen tremendous growth and prosperity over its 90-year history. The bank's ability to adapt to meet the ever-changing needs of its communities and its customers is the reason it has been successful. And it's that same mindset and spirit that will help DSB continue to thrive and prosper for many years to come.