Lafayette Savings Bank

Lafayette Savings Bank Celebrates 140 Years with Ribbon Re-Cutting Ceremony on July 1, 2009

Lafayette, IN. – June 26, 2009 – Randolph F. Williams, President/CEO, is pleased to announce Lafayette Savings Bank’s milestone anniversary of 140 years serving Greater Lafayette.

Bank History…the Beginning

Under a partnership proposed by Martin L. Peirce for an institution that could receive small sums of deposits, lend them and return them on call with accrued interest, Lafayette Savings Bank (LSB) was established on April 25, 1868. During the 1869 session of the Indiana General Assembly, Lafayette attorney Hiram W. Chase drafted a bill for an act to provide for savings banks. The main feature of the law was that it essentially set up a co-op. There were to be no savings bank stockholders. All profits belonged to depositors, so all losses fell upon them as well. The bank was chartered on June 26, 1869 and 16 trustees elected, who chose as president, Lafayette dry goods merchant John Purdue. Henry T. Sample and Israel Spencer took office as vice presidents, with insurance agent William S. Peckham as the secretary and treasurer.

On July 1, 1871 Spencer took over as president, succeeded in 1880 by Chase. After 15 years, the steadily growing bank reported 2,286 depositors and assets of $674,887. A statement reported that the bank’s assets had surpassed $2 million in 1909. Most deposits, except a cash balance, were at that time invested in first mortgage loans on farm properties.

Until 1875, LSB conducted business in the basement of the First National Bank (present site of the Girardot, Strauch & Co, 316 Main Street, Lafayette). Business hours were from 2 to 4 p.m. each Saturday. Deposits had to be at least 25 cents and could not exceed $500 per year. [What cost 25 cents in 1869 would cost $3.25 in 2002. What cost $500 in 1869, would cost $6,493.38 in 2002.] Withdrawals could only be made during Saturday hours and had to be less than $10. Withdrawals between $10 and $25 required one week’s notice. Withdrawals between $25 and $100 required one month’s notice.

LSB’s next location was part of the main floor of the First National Bank. Attempts to purchase two separate sites in 1883 and 1884 were rejected. In 1913, LSB trustees approved the purchase of the Moore and Kemple store building, located just east of the first location, north of the courthouse square, for $29,100. There is no record of LSB ever occupying or selling the building.

On February 4, 1918, the Bank’s trustees passed a resolution to move to the Lafayette Life Building at Third and Main. LSB moved to this location in 1919. In 1958, Lafayette Life Insurance Company began plans to construct and move into a new building within two years. LSB President Ted Axton faced a rent increase of 225% upon expiration of the current lease in 1969. This prompted the construction of LSB’s current main branch at Second and Main.

In 1962, LSB moved one block west from Third and Main. The site was selected because of the convenience and the chance to enrich the downtown area with modern architecture. The construction was contracted to Kettlehut Construction, using limestone cut by Harding and Goswell Stone Company of Ellettsville, Indiana. Among the features offered by the new facility, the bank’s executive offices are “right up front, accessible to everyone.” The executives thought it was important to be available to “visit with customers and discuss business.”

In December 1989, LSB officially opened its West Branch in the Sagamore Park Centre in West Lafayette. Three other branches followed… one in October 1993 (East Branch, corner of Greenbush and Sagamore Parkway), July 1996 (South Branch, South 9th Street and Twyckenham) and April 2001 (Highway 38th East).

Today, Lafayette Savings Bank is the oldest and largest locally owned bank in Greater Lafayette. 2009 marks the 140th year in operation for the “Bank on the Wabash” which was the first savings bank in the state of Indiana. LSB is a full service financial institution with assets of $384 million, making it the fourth largest bank in Greater Lafayette. In 1994, the bank went public offering nearly 1.5 million shares priced at $10/share. Then president, John Corey, stated, “We will still be known as Lafayette Savings Bank, will continue to be headquartered in Lafayette where we have operated since our charter was issued in 1869, and our deposits will continue to be insured by the FDIC.”

LSB was first in many financial milestones throughout its rich history. We were the first and only bank that John Purdue presided as president. The first saving bank chartered in Indiana. Mariellen Neudeck was the first woman elected chairperson of a bank’s Board of Directors in Greater Lafayette. We are also the first and only bank that has kept its same name that is independently owned and locally operated for 140 years in Greater Lafayette.

There have been only 11 presidents of the bank since 1868.

John Purdue: 1868-1871
Israel Spencer: 1871-1880
Hiram W. Chase: 1880-1889
A.G. Carnahan: 1889-1903
Richard B. Sample: 1903-1945
Ward E. Skinner: 1945-1951
Ted P. Axton: 1951-1975
Emery M. Brunnell: 1975-1982
E. Dana Smith: 1982-1991
John E. Corey: 1991-2001
Randolph F. Williams: 2001-present

Anniversary Activities

To celebrate the Bank’s 140th year, many activities and events are scheduled throughout 2009. On July 1, 2009, the day the bank first opened its doors 140 years ago, we will celebrate Founders Day. In conjunction with the Greater Lafayette Commerce, the bank will have a Ribbon Re-Cutting Ceremony at the Main Office, 101 Main Street, Lafayette. The event will be held from 2 p.m. to 4 p.m., the same time the bank opened its doors 140 years ago on Saturday, July 1, 1869. President Randy Williams will give a brief history of the bank; a gift will be presented to the Community Foundation of Greater Lafayette in honor of our first president John Purdue, the ribbon re-cutting ceremony plus live Chamber music and food provided for our invited guests. A webcast of the event will be made available at 2 pm on July 1 by visiting our website at www.lsbank.com. Also on July 1, anniversary cake and door prize drawings will be held at all LSB branch locations throughout the day for our customers. Stop in to enjoy some cake and visit with our staff.

Honoring John Purdue

To honor our founding president, John Purdue, and the Bank’s continued support in the community, LSB will establish a $25,000 unrestricted endowment fund at the Community Foundation of Greater Lafayette to support non-profit organizations in the Greater Lafayette Community. The endowment, the Lafayette Savings Bank – John Purdue Benevolent Endowment, will honor the legacy of John Purdue and his efforts to help others less fortunate. The endowment will offer assistance to 501 c 3 non-profit organizations for general operating needs. “The Community Foundation welcomes Lafayette Savings Bank as a partner in philanthropy,” states Marianne Rose, Community Foundation Development Director. “Not only do we celebrate Lafayette Savings Bank’s 140th Anniversary, we also celebrate this fund as the first corporate endowment established at The Foundation. By partnering with The Community Foundation, Lafayette Savings Bank will actively participate in recommending grants from their new endowment, and they also maximize their giving opportunities by utilizing the many resources available at The Foundation.”

This is the second endowment of $25,000 in the past five years that has honored the bank’s anniversary milestones and its first president, John Purdue. In celebration of the bank’s 135th anniversary in 2004, a $25,000 endowment was established at Purdue University for a student majoring in finance or a related field who is also involved with Purdue Musical Organizations.

Our Future Commitment

Lafayette Savings Bank understands who we are and what we offer to the banking community of Greater Lafayette. We are the community bank and if we had a middle name, it would be stability. “Since 1869 we have been calling Greater Lafayette home…the same amount of time it’s been calling us Lafayette Savings Bank,” states Randolph Williams, President/CEO. “Our goal is to remain a local independent financial institution that exceeds your expectations everyday. Our staff works here, raises their families here, volunteers here, and decisions are made here. In 2009, we were approved for the Troubled Asset Relief Program (TARP) money but declined the bailout. Our relief effort is providing loans in the community. That is our financial umbrella. We invite you to stop in and visit us on July 1 and help us celebrate 140 years!”

^ Back to Top ^