American State Bank celebrates 30 years

The year was 1987, and one of Osceola’s two financial institutions was going under. Five local families with a eye for finance saw an opportunity to turn things around while creating more jobs and expanding investment opportunities for everyone in town.

Jim Schipper is no longer the president of American State Bank, but he’s ready to celebrate the impact it has had on Osceola for the last 30 years — and what it took to get there.

“We did a new bank charter, and that charter acquired the charter of the failed Osceola State Bank and Trust Company. It was interesting,” said Schipper. “We had a town meeting at the high school gymnasium and a question-and-answer public session. It was quite an event.”

According to an article in the April 30, 1987 edition of the Osceola Sentinel-Tribune, the Osceola State Bank was declared insolvent and was closed 3 p.m. Thursday, April 23, 1987 by State Superintendent of Banking William Bernau. The Federal Deposit Insurance Corporation (FDIC) took over the bank’s $8.3 million in deposits.

Schipper, along with four other area residents, stepped up to the plate and pitched the FDIC a winning proposal. They would establish Osceola Bancorporation and purchase Osceola State Bank’s deposits as newly chartered American State Bank. Creating a new bank to take over the assets meant continued service for customers of Osceola State Bank, nearly half of which were holders of residential loans.

Osceola Bancorporation paid $62,558 to buy the majority of the failed bank’s assets, though the FDIC retained around $3.3 million worth of bad loans. Schipper and his team also had to contribute an additional $600,000 to the new bank’s capital.

Officers of the newly minted American State Bank included: President and Chief Executive Officer Jim Schipper, Senior Vice President Forest Lewis, and Board of Directors: W. J. Emary of Osceola, Robert Garnett of Des Moines, Fred Reed, Jr., of Truro.

Now chairman of the board, Schipper is staying focused on the future.

“We’re planning a retreat next month with our board to take a look at our 30 years of success and how to build on that,” he said, and there’s plenty to think about.

Over the past 30 years, American State Bank has expanded to two Osceola locations, it’s original spot at 1000 Jeffreys Drive and another downtown at 101 S. Main St., along with a branch in Winterset and another in Lamoni. Resources have grown to $185 million in assets and $18 million in capital.

As for festivities, the bank’s 30th anniversary, which kicks off official Monday, April 24, will see a mixture of internal and customer-focused appreciation programs. The current contest running in the pages of the Osceola Sentinel-Tribune gives readers a chance to win a grill or one of 30 $30 prizes. The bank’s traditional booth at the Iowa State Fair will be transformed into what Schipper described as a “hot dog stand on steroids.”

More than anything, this will be a year of introspection and investment in the people who’ve made American State Bank’s business flow so reliably over the years.

“I’m really proud of the people we have and the 48 jobs that were created with this bank,” said Schipper. “We have outstanding staff who consistently take care of our customers and cause our bank to perform at its best.”