Old Money

The year was 1913. Woodrow Wilson was just sworn in as president, stainless steel was invented, Henry Ford introduced the moving assembly line, the Federal Reserve was created and the nation had not yet felt the pain of two world wars or the crippling effects of the Great Depression.

A century ago, Springfield’s population hovered at just more than 35,000 residents and the little-known Guaranty Savings and Loan followed the development of the Frisco Railroad to set up shop in the Queen City of the Ozarks. Under the moniker Guaranty Bank (Nasdaq: GFED) today, the 100-year-old financial institution is one of a handful across the Ozarks that have passed the century mark and cemented its banking legacy in southwest Missouri. The Federal Deposit Insurance Corp. estimates more than 2,000 banks were formed in the U.S. in 1913; however, proper records were not kept until after the FDIC’s creation with the Banking Act of 1933.

“A 100-year-old bank open today survived the stock market crash, numerous wars and an ever-changing economy. I think that’s a big accomplishment,” said Shaun Burke, Guaranty Bank president and CEO.

A century of commerce
Originally established in St. Louis as Guaranty Savings and Loan in 1889 by a small group of investors, Burke said little information is available regarding Guaranty’s early years. Since its 1913 establishment in Springfield, Burke said the bank has grown to 170 employees, nine branches and a loan center across Springfield’s five-county metropolitan statistical area.

Burke said the institution’s biggest change was taking its stock public in 1997.

“Up until that point, we had always been a privately held savings and loan, but going public changes things,” he said. “Now, not only are you accountable to your clients and employees, but shareholders as well.”

When Burke signed on as president and CEO in 2003, the bank went commercial, dropping the savings and loan portion of its name and opting for the simpler Guaranty Bank label.

“We realized savings and loans were a dying breed and wanted a name that would propel us through another century,” he said.

With $300 million in assets at the time of its initial public offering, Burke said assets quickly doubled during the next four years. Today, the bank has $639 million in assets and controls 6.28 percent of the Springfield MSA deposit market share as of June 30, according to the FDIC.

In honor of its birthday, the bank is celebrating throughout 2013 with Treat Tuesdays for customers, a staff retreat to Silver Dollar City and numerous charity and community-based fundraisers.

“All of our events have a 100 theme in honor of our age,” said Carlye Wannenmacher, bank vice president and director of marketing. “We challenged each department to show bank spirit by creating a photo collage depicting 100 years, and as part of our wellness initiative, employees are taking part in Gov. Jay Nixon’s 100-mile walking challenge.”

Wannenmacher said the health of a bank depends on the success of its community and Guaranty is not only a business advocate in Springfield, but also has employees volunteer hundreds of hours each year.

Around the region
Other banking institutions around the Ozarks have passed the 100-year mark and are still going strong. Situated on Ozark’s downtown square, Ozark Bank has been in continuous operation since 1906. The 107-year-old bank was established as Ozark Savings Bank by 15 local investors with $10,000 in stock, five directors and a staff of four employees, according to OzarkBank.com. Today, third-generation family members and some original investors manage operations.

Metropolitan National Bank has been in the Ozarks in some capacity since 1905, with its first charter as First National Bank. The bank now claims 12 banking centers across 13 southwest Missouri communities.

While not established in Springfield until 1973, UMB Bank (Nasdaq: UMBF) put down roots in Kansas City as City Center Bank a century ago with a storefront location and first-day deposits of $1,100 according to UMB.com. The bank celebrated April 25 as Chairman and CEO Mariner Kemper rang the Nasdaq bell to open the market.

“UMB is very proud of its heritage,” said Ann Marie Baker, UMB Bank’s southwest Missouri region president. “The bank has seen tremendous growth overall and in Springfield. We are in such a great place because of the history we bring.”

UMB’s recent growth was tempered Sept. 5 as the company announced an unnamed Kansas City client will move about $1.08 billion in deposits from the bank within the next 120 days, according to a filing with the Securities and Exchange Commission.

Like Guaranty Bank, Baker attributes much of the bank’s success to its pension for community service, saying Springfield’s economy is a direct reflection of its quality of life and business community.

“The linkage between quality of life and the business community is strong,” she said. “When people want to live and work here, it’s good for business. UMB is very committed to serving this community through giving of our time and our support.”

Allowing its progressive history to shape its future, Baker said UMB continues to move forward with a focus on technology and integrating new systems and tools with client need.

“One hundred years is a very long time. Banks have endured boom times, some very tough times and managed to thrive,” she said. “Passing the century mark is a testament to a bank’s leadership, its employees, clients and the health of a community.”[[In-content Ad]]