An application to organize Teutopolis State Bank was filed with the State of Illinois, Auditor of Public Accounts on August 2, 1913 by H. J. Weber, J. H. Uptmor, Leo Hardiek and Edward Niemeyer. These four along with John L. Runde and Frank Wernsing were founding partners of Bank of Teutopolis, a private banking partnership. This application was to create a new banking corporation under the provisions of an act of the General Assembly of the State of Illinois entitled “An Act Concerning Corporations with Banking Powers”. The bank was to be capitalized with 250 shares in the amount of $100.00 each, or $25,000.00.
Permission to organize Teutopolis State Bank was received from the Auditor’s Office on August 11, 1913.
By August 16, 1913, the stock was fully subscribed. The original owners were:
H. J. Weber 30 shares John L. Runde 30 shares
J. H. Uptmor 30 shares Leo Hardiek 30 shares
Edward Niemeyer 30 shares Frank Wernsing 30 shares
Joseph Siemer 20 shares Frank Schultz 20 shares
Herman J. Runde 10 shares Joseph G. Weber 10 shares
Ben Weber 5 shares William Weber 5 shares
On September 6, 1913, the initial directors were elected –
John L. Runde
H. J. Weber
J. H. Uptmor
On September 10, 1913, the By Laws were adopted and the following officers elected, and their salaries:
H. J. Weber, President $100.00/year
J. H. Uptmor, Vice President
Herman J. Runde, Cashier $750.00/year
Joseph C. Weber, Asst Cashier $450.00/year
On September 24, 1913, all organization documents were examined by the Auditor of Public Accounts, State of Illinois, and approved. The final certificate or charter was delivered at that time.
At a meeting on October 3, 1913, it was agreed to accept the assets and liabilities of the Bank of Teutopolis. It was also approved to pay $180.00 to the Bank of Teutopolis for books, stationery, furniture and fees advanced. It was agreed to open Teutopolis State Bank on the next day, Saturday, October 4, 1913.
Teutopolis State Bank opened for business on Saturday, October 4, 1913.
Minutes from 1913 through 1918 address routine banking business. Some interesting tidbits noted in the minutes during that time frame:
- Approval of a $6,000.00 loan secured by 160 acres of land, PROVIDED approval
was received by the State Auditor.
- Approval of purchase of a typewriter.
- Charge off of “old Creamery loan” of $10.90.
- Approval of purchase of a posting machine.
On January 4, 1919, the bank was robbed by Cleve Bliss and Harry Beebe, of $4,050.00. The
Cashier John Thies, was locked in the vault for a short time. He caught someone’s attention by banging on the inside of the vault door with coins and was freed from the vault. The robbers were eventually caught in April in Collinsville. A $100.00 reward was paid to: John Thies - $50.00; Chief of Police of Collinsville - $25.00; and Effingham County Sheriff - $25.00. Apparently traumatized by the robbery, John Thies resigned as Cashier on February 1, 1919. A few months earlier, Herman J. Runde, then Cashier, had been called to duty for World War I. He had been stationed at a base in Kentucky, but was allowed to return to Teutopolis State Bank after Thies’ resignation, to once again assume the office of Cashier.
For the next four years, the minutes reflect business as usual. In 1923, charge offs of several small loans began to appear in the minutes. In September 1923, the first foreclosure was approved.
In May 1925, the Effingham County Bankers Federation assessed local banks for the purpose of reducing crime in the county. The bank was authorized by the Board to investigate and install a silent alarm system.
Prior to 1926, little mention was made in the minutes of loan or asset charge offs. In late 1926, some loan charge offs, mainly small, and bond investment charge offs were beginning to be noted. Sales of bonds were also being noted.
The May 6, 1929 minutes noted the bank’s response to the Auditor of Public Accounts report of examination in regards to the sale of “Other Real Estate”. The bank responded that due to present conditions, they were not very optimistic about a sale in the near future.
The report of examination by the Auditor of Public Accounts, as of February 17, 1930, instructed the officers to make a special effort to have the slow loans reduced as much as possible. The next report of examination, as of October 22, 1930, recommended an increase in the Bond Depreciation Reserve, which was increased by $1,200.00 at the January 7, 1931 annual stockholders meeting.
In 1931, signs of the Great Depression were becoming more evident at Teutopolis State Bank. As a result of the April 23, 1931 Auditor’s report, the cashier was instructed to get extension agreements on past due loans and to get financial statements up to date. Officers’ salaries were reduced. As a result of the Auditor’s report, as of September 28, 1931, the Board requested that each stockholder contribute 50% of the par value of his stock to be used to charge off defaulted bonds. That was a required capital infusion of $12,500.00. Many of the bank’s losses are from corporate bonds in the investment portfolio.
On February 5, 1932, the Board agreed to act in accord with the resolution passed at the County Federation meeting of February 1st to place a restriction on withdrawals of deposits when necessary.
In April 1932, as the result of an examination, the following directors and officers advanced moneys to cover further charge offs of defaulted bonds: H. J. Weber $2,000.00, J. H. Uptmor $1,000.00, Ben Weber, Sr $1,000.00, Edward H Niemeyer $1,000.00, H. J. Runde $500.00, and Ben H. Weber $500.00. Salaries of the Cashier and Assistant Cashier were reduced by 10%. Salaries were reduced again in August 1932.
A Special Directors meeting was held on October 14, 1932 to consider the findings of the last report of examination. As a result, the Surplus account was reduced by $10,000.00 in order to charge off more bonds. Also approved was the sale of foreclosed real estate being held in “Other Real Estate”.
On March 6, 1933, all banks in the United States were closed as President Franklin D. Roosevelt declared a banking holiday. All banks were to cease banking activities and no transactions were to take place until further notice.
A Special Stockholders meeting was held on March 22, 1933 to address the Auditor of Public Accounts demand for $20,000.00 to be put into a Special Reserve account, in order to re-open. All stockholders agreed and deposited their respective amounts.
On March 24, 1933, the bank received permission to operate without restriction and resumed its business, the first since the bank holiday began on March 6th. No limit was placed on withdrawals from old or new accounts.
A Special Directors meeting was held on March 30, 1933 to charge off an additional $14,500.00 in bonds.
On November 16, 1933, a Special Directors meeting was called to address results of a recent examination. Charge offs of bonds and other assets in the amount of $23,000.00 were approved. It was also approved to apply for membership in the Temporary Federal Deposit Insurance Fund created under the provisions of the Banking Act of 1933.