120 years: SVB&T committed to communities it serves
Springs Valley Bank & Trust is celebrating its 120th anniversary this year.
What began as two separate banking institutes in Orange County is now a publicly-traded regional bank headquartered in Jasper with more than $500 million in total assets.
The company traces its history back to the West Baden National Bank. It was established in the West Baden Springs Hotel in 1902 by the owner, Lee W. Sinclair, in the circular rotunda at the hotel. A year later, the French Lick State Bank opened a short distance down the road. The two banks successfully survived the depression and operated independently for the next 50 years.
Then in the late 50s, Arnold F. Habig became interested in acquiring a supplemental funding mechanism for Kimball International as well as providing a bank for the company’s employees. So in 1958, Habig and Kimball International’s profit-sharing trust purchased both Orange County banks separately. The two banks merged to become Springs Valley National Bank a year later. Beginning assets were $5,250,745.73.
During the following several years, Springs Valley National Bank continued to grow and innovate. In 1968, Springs Valley installed the state’s first TV drive-up unit — soon, branches will have ITM or smart ATMs that have screens connecting customers to a teller. In 1971, Harriet Brown became Indiana’s first female bank president.
Springs Valley National Bank changed its charter to a State bank in 1979 and became Springs Valley Bank & Trust Company.
By 1986, SVB&T’s Main Street Jasper location opened.
From those humble beginnings of two banks in Orange County, SVB&T now boasts banking centers in four counties: Dubois County (Jasper), Orange County (French Lick and Paoli) and one each in Daviess (Washington) and Gibson (Princeton) counties.
According to Craig Buse, Senior Executive Vice President, CLO and COO, the company differentiates itself from other banks by being planted in the communities it serves. “It’s really the community focus as well as our ability to take on additional risk for some folks that the bigger institutes aren’t necessarily able to,” he said.
In the newly refurbished and renovated Newton Street headquarters, trucker caps with farm services or equipment brand patches are common among the customers stopping in.
President and CEO, Jamie Shinabarger is quoted as saying that if the company is going to grow in the cornfields of Indiana, it needs to participate in that industry.
“Historically, before I got here, ag was only about 20 million or 30 million (dollars),” Shinabarger pointed out.
A small portion of the bank’s assets by comparison to today.
Shinabarger joined the company during the 2008 Recession. At the time, the bank was invested in acquisition, development and construction in more urban areas like Indianapolis and Chicago. Over the years following 2008, Shinabarger was thrown into a position to help lead the company forward. He helped to refocus the company’s efforts on its customer base. “We came out of that knowing we had to rebuild with assets that better fit our footprint. One of those was ag,” Shinabarger said.
“Those years were painful,” he added, saying that since 2012, SVB&T has had the best ten years in the company’s history.
That success is due to the change in mindset from one focused on loan payments (tenure) to one focusing on the overall bank performance. Success came through becoming more relevant in rural markets. “Our best opportunity to stay independent as a community bank is to be relevant. Relevant for customers. Relevant for shareholders. Relevant for the community,” Shinabarger said.
What this translates to is proactively building better relationships within all those areas. And that relational shift is getting noticed.
“We’ve had four or five different towns ask us to come to meet with them because they have lost some of the bigger banks,” said Buse.
When considering a new location, SVB&T brings local people onboard as staff and part of that branch’s loan committee. “So they are making decisions for that community,” Buse added. “Plus, we go and get to know them and really try to get involved. That’s been huge.”
The bank’s size and relational value system also came into play during the pandemic. As some banks were slowing down and struggling with the overwhelming volume of Paycheck Protection Program loans and mortgages while workers were sent home, SVB&T adapted and overcame. They got up to speed on the intricacies of the PPP loans quickly and worked together as a team to meet the needs of their customers.
That footing led to SVB&T’s best year ever in 2021, with per-share earnings of $13.36 compared to $8.63 per share earnings in 2020.
The future looks bright as the company continues to consider its rural footprint and growth in the cornfields of Indiana.
“We have got to continue to perform financially but also be relevant in the community,” Shinabarger said.
At a recent open house celebrating the renovation of the company’s headquarters, more than 200 people showed up. “It was like all your friends came and just hung out,” Buse said. “I think that is the best thing about this bank.”
“(Being 120 years old) it’s a testament that we are doing something right,” Shinabarger added. “If you want to survive, you have to adjust to the paradigm and that’s one thing Springs Valley has been doing. You don’t last 120 years by doing the same thing over and over.”
A timeline
1902 West Baden National Bank established inside the West Baden Springs “dome” hotel by Lee Sinclair
1903 French Lick State Bank established by Tom Taggart
1908 French Lick State Bank moves to the corner of College and Maple Streets
1917 West Baden National moves to expanded facility in West Baden
1929 Both banks survive the Depression
1933 FDIC Insurance established
1958 Both banks acquired under separate transactions by Arnold F. Habig
1959 Banks merge and become Springs Valley National Bank with assets of $5,250,745.73
1959 Bank establishes Insurance and Realty Departments
1968 First TV Drive-up unit in the State is installed
1971 Harriet Brown of Springs Valley National Bank becomes the first female in the State of Indiana
to be named a bank president
1977 French Lick City Drug Store, the prior Insurance and Realty Building, is purchased
1979 Charter is changed to a State bank and becomes Springs Valley Bank & Trust Company
1982 A one-bank holding company, SVB&T Corporation, is formed
1984 ATMs at West Baden and Jasper are installed
