State Bank of Lincoln expands facilities

[October 15, 2009]  In a time where bank closures and bank bailouts make the news, the State Bank of Lincoln makes the news for all the right reasons.

On Tuesday the distinctive State Bank of Lincoln signs were hung on the recently acquired building on the corner of Chicago Street and Broadway. Purchasing the addition was a natural for the bank, whose main facilities at 508 Broadway St. are adjacent to the corner building.

State Bank President Steve Aughenbaugh, on a tour of new addition, showed how just opening a large doorway between the two buildings allowed the bank to seamlessly expand.

This expansion of the State Bank has a century-old history, all within the same locale. The original bank building was located at the corner of Pulaski and Chicago streets when the bank opened on Jan. 16, 1904. In 1917 a new bank building was erected at 506 Broadway St. The existing main bank building, located at 508 Broadway, was then erected in 1963. The main bank further expanded into an adjacent building in 1979 and once again now in 2009.

The new 7,200-square-foot addition is in the finishing stages of remodeling by Roger Webster Construction. The furniture, equipment and various office items are being set in place by Glenn Brunk Stationers this week, with intentions that sometime next week the state fire marshal can approve the building for use.

Aughenbaugh explained the thinking concerning the addition. "Our expansion project is due to not only our overall growth, but primarily growth in our residential real estate lending activity," he said. "Although some of the major lenders in the country have gone by the wayside, our business has greatly increased. We have stayed away from the risky subprime mortgage loan business and have continued to concentrate on conventional real estate loans. Paul Short, who heads up the department, and his staff have done an outstanding job growing our business in conventional residential real estate loans, as well as Rural Development, guaranteed loans." The new area will be used primarily by the ever-growing mortgage department.

Outside reports bear out Aughenbaugh's claims of the bank's success and adhering to best business practices. The FDIC report for the first quarter of 2009 shows State Bank of Lincoln holding a strong 31.5 percent of the market. As of Sept. 30, the bank's total assets stood at almost $280,000,000 after the purchase of the John Warner Bank in Clinton. With the Clinton acquisition, State Bank now has five locations in Logan County and two in DeWitt County.

Bankrate, a ratings service for banks, said: "As of June 30, 2009, this bank exhibited a superior condition, characterized by very solid overall, sustainable profitability, good asset quality, very strong capitalization and ample liquidity." Further in the report, Bankrate used phrases such as "stronger than peers," "solid" and "exceeding the banking industry" in several other categories.

Bauer's, another bank rating company, gave the bank a five-star rating, the highest available, for the 80th consecutive quarter.

Aughenbaugh and all the staff at the State Bank of Lincoln are excited about the new addition to the parent location of the bank and can't wait to open the building to the public. The expansion further confirms that State Bank of Lincoln is aggressively attempting to grow and expand to meet the needs of the community.

[Text from files received from State Bank of Lincoln; LDN staff]