The annual meeting
of the shareholders of the Bank of Stronghurst was held Tuesday, January
22, 2002 at Country Fun Restaurant near Biggsville.
The Hancock-Henderson Quill, Inc.
by Dessa Rodeffer, Publisher
The annual meeting
of the shareholders of the Bank of Stronghurst was held Tuesday, January
22, 2002 at Country Fun Restaurant near Biggsville.
It was a sunny, mild, and record-breaking day as the temperature reached 61 degrees for the approximately 75 shareholders and guests to enjoy the luncheon and meeting.
James A. Melvin, Chairman of the Board, welcomed shareholders and guests and reported the loss of ten stockholders in 2001.
Deaths included T. L. Henderson, Emily Morgan, John Allaman, Winifred Neff, Pearl Evelyn Shafer, Dick Stone, Leota Swanson, Darlene McGaw, Robert Seymour, and Mabel Malcolm.
President and C.E.O. Charles E. Vaughn led the shareholders and guests in the Pledge of Allegiance followed by the invocation by Director Wayne L. Waddill.
Following a delicious buffet luncheon, the meeting was brought to order by George Hennenfent, Chairman who introduced other officers of the meeting, namely Mitchell Cortelyou, Robert Dillon, and Ronald Stamp, Judges, and Marlene Knutstrom, Secretary.
Hennenfent, opened the meeting by asking for a moment of silence in remembering stockholders who had died and those affected by the tragedy of September 11 last year.
He also reported to the stockholders there had been some mishandling of funds by a bank employee no longer in their service, and that all accounts were covered by insurance.
He said the investigation was being handled by the authorities and said bank Employees, Officers and Directors were advised by the FBI not to discuss the subject during the investigation.
Chairman Hennenfent introduced Vice President and Cashier Rodney Brake who gave his financial report.
"The bank has enjoyed a record breaking year in profitability and unprecedented growth. Total assets increased over 13%, total deposits increased over 15%, and total investments increased to $39,768,991.73, all which represented record highs for the Bank.
Mr. Brake referred to the year of 2001, as a year of dramatic interest rate cuts, noting Fed Fund rates went from over 6.0% to the present 1.50% and that the Federal Reserve Bank had cut interest ratse on Fed Funds 11 times.
Mr. Brake went over the Statement of Earnings report, Balance sheet, and Reconcilement of the Capital and Reserve accounts. The report showed $120,000 paid out in cash dividends to stockholders at $20 a share and showed a net income of approximately $388,000.
Vice President and Loan Officer Jerry Keimig, gave his Loan report saying total loans reached 18.7 million in 2001, an all time high. He reported totals on the different categories of the Bank's loan programs, as commercial loans, 38% ($7 million), and Real Estate loans, 62% ($11 million) noting the majority of the loans (55%) were to farmers and/or Agri-Businesses. He concluded by stating that the Bank hopes to continue to improve loan totals by providing the customers with competitive interest rates and terms.
In the financial report, it shows the bank had $5,790.61 charged off for bad loans and at the same time $3,248.60 was recovered.
In their historical comparison as of the year end, The Bank of Stronghurst showed $50,878.25 in Stockholders Equity in 1946. Today, at the end of 2001, it is valued at $10,491,975.64.
The minutes were approved and Chairman Hennenfent asked for the Judges report. Out of the bank's 6,000 shares, 2,254 shares were represented by proxy and 2,691 in person making a total of 5,215 shares represented. Chairman Hennenfent declared a quorum was present for the transaction of business.
A motion to decrease the number of Directors of the Bank of Stronghurst from eight to seven was made by David Vancil, seconded by Richard Knutstrom and carried unanimously without discussion.
Chairman Hennenfent called for election of Directors. A motion was made by David Vancil, seconded by Richard Knutstrom, that the present directors, namely, Wayne L. Waddill, James A. Melvin, Kenneth Nimrick, George Hennenfent, Sidney L. Dowell, Charles E. Vaughn, and Charles E. Neff, be nominated, and that an unanimous ballot be cast to elect the nominees.
The motion carried unanimously and the nominees were elected for the coming year. The meeting ended with a drawing for door prizes and floral arrangements conducted by Marlene Knutstrom with winners:
Floral Arrangement Jessie Norwood
Floral Arrangement Ila Anguish
2001 Coin Proof Set Dessa Rodeffer
2001 Coin Proof Set Oma Johnson
The 2002 meeting adjourned at 2:05 p.m. according to secretary minutes, Marlene Knutstrom.
Bank Of Stronghurst Investigation
After several phone calls to the FBI last week, an FBI supervisor advised The Quill over the phone, prior to the Bank Of Stronghurst annual meeting, that an investigation is complete. The report has been sent to the prosecuting attorney in the Attorney General's Rock Island office which prosecute federal cases in Iowa and in Illinois.
In a return call to The Quill, FBI Prosecuting Attorney Jeff Lange said there is nothing that is a matter of public record as yet, but he will inform us by FAX when there is something filed on public record.
According to reports, audits have been completed back 17 years and all missing funds have been repaid by a $10,000 deductible insurance bond held by the Bank of Stronghurst.
No report has been given of the amount of funds that were missing, and FBI have asked bank officials not to release information but to refer inquiries to their FBI media coordinator. The coordinator referred us to a Supervisor who said notes on the case say the investigation is complete and has been sent to the Office of Attorney General in Rock Island for prosecution.
Bank of Stronghurst Board President James Melvin seated by Rodney Brake and Jerry Keimig (far left) pulls out names for door prizes for Marlene Knutstrom after their annual dinner meeting.George Hennenfent stands behind (at left back).