Custer Federal moves to State Charter system
Custer Federal Savings and Loan will soon look a little different. The name gracing its building and sitting on top of its letterhead will soon read Custer Federal State Bank. A press release from Custer Federal talks about the how much the bank and its officers are looking forward to the change. “The Stockholders, Board of Directors and Employees are enthusiastic to convert to a State Bank Charter with subsequent regulation and oversight by the Nebraska State Department of Banking and Finance. This conversion will enhance Custer Federal’s commitment and desire to provide excellent service and products for our customers and community.”The only immediate difference Custer Federal’s customers should see is the name on the door, says Bank President Jim Varney. What the conversion to a state bank charter accomplishes is that it allows the bank to be better invested in their local area. “I am pleased with our decision to change to a State Bank. From our good customers view, the only thing they will notice outside is a change in our signage. We’ve always been known as Custer Federal. So instead of our sign saying Custer Federal Savings and Loan it will say Custer Federal State Bank,” restated Varney. “Our customers won’t see a change on the inside. We will continue to offer the same great products and service with our same dedicated employees.”Board Chairman Brad Shinn explained that by converting to a State Bank, this locally owned bank will fall under the state regulatory agencies, and this is a change that the bank officials are very much looking forward to. “Custer Federal wants the deposits in our bank to be invested in our local area. A State Banking Charter allows us to do a better job in this regard. Our employees, Stockholder and Board of Directors have had and continue to have the best interest of the community in mind. We are the definition of a community bank,” said Varney. “When you look around, Broken Bow has strong banking traditions. We are proud to be part of that tradition,” said Varney, going on to name these great banks … Nebraska State, Bank of Broken Bow, Great Western, Heritage … Converting to the State Bank Charter, Custer Federal joins Nebraska State, the Bank of Broken Bow and Heritage under the State Bank regulatory system. “Custer Federal is a solid financial institution,” said Varney, commenting that he has seen the assets grow from $23 million in the early 1970s when he first came to Custer Federal, to the $83 million of today. The conversion to State Bank will allow the bank to better grow these assets and to be better able to put these investments back into the community. Shinn talks about how pleased they are when they can help a family purchase a home or start a business and the pride they have in those customers when 15 or so years later they pay off the loan. This pride in their customers dates back to the foundation of the financial institution 88 years ago when a local lawyer, William G. Schaper, helped incorporate the Broken Bow Building and Loan Association. His goal was to form a local institution to promote thrift by providing a safe place for people to save money and an economical means of securing funds for home ownership. Schaper went on to stay active and served as president from 1925 until his death in 1977. The association first called a desk located at the back of the Mackie Grocery Store home until 1927 when it moved to the front part of the Shaper Law Building on South 10th. Broken Bow Building and Loan applied for and received a Federal Charter Nov. 8, 1934, made possible by the Home Owners Loan Act of 1933. The Federal Home Loan Bank system served as the reserve for the savings and loan businesses and Custer Federal Savings and Loan was born. In 1965, Custer Federal remodeled what was then the Jack & Jill Grocery Store next door to the present Schaper and White Law Office and conducted business in what is now the south half of the its present building. In 1980, the north half of the building was added. That same year, Custer Federal began offering checking accounts and customer loans. In October 1990, Custer Federal was converted to a stock Federal Saving and Loan Association. The conversion of Custer Federal to a State Bank takes effect June 28, 2013. Custer Federal has planned a weeklong celebration of the conversion and name change. As part of this celebration, Custer Federal will be awarding “State” themed prizes via various registered drawings over the course of the week. Custer Federal staff encourages and welcomes those who have questions or concerns to stop by the bank or call 308-872-6486.