Risk is something we all manage everyday of our lives. Whether it's eating a second doughnut, joining a pick up game, making friends over the internet, or passing the car in front of us, RISK is something we must deal with. In finance, it is generally assumed that the more risk you assume, the MORE opportunity you have for greater returns and greater loss. But in an imperfect world, with imperfect information, the relationships between risks and return can get out of whack. This happens when we find out that we really don't know what we thought we knew; when a AAA bond backed by mortgages goes into default, when the value of the second home in Florida drops by 50%, when a company's annual sales drop 40% from projections, and when the assets in a 401K drop by 25%. These disruptions to our "known world" will reveal miscalculations in our risk/return profile and cause us to adjust to the "new" known world at the same time; some people adjusting a lot more than others. Eventually the "new" world arrives and stabilizes-it is no longer new. We can all look back on that "old known world and wonder how we could have ever let things get so out of whack.
State Central Bank, representing five generations of continuous family management, is one of the oldest family-owned businesses in the United States. Its beginnings date back to September 13, 1858, when a charter was granted to the Keokuk Branch of the State Bank of Iowa.
The First Generation-Judge William Logan
In 1868, at the age of 21, William Logan moved to Schuyler County, Missouri where he operated a sawmill and established a lumber business. He developed a great interest in banking and came to organize the Logan Bank of Glenwood where he lived for twenty years. Logan later moved to Macon County where he served six years as county court judge. Later, he was elected President of First National Bank of Macon.
On May 23, 1885 the First National Bank of Macon became the State Bank of Keokuk. Five years later in 1890, Judge William Logan bought the controlling interest in the State Bank of Keokuk and moved his family from Missouri to Keokuk, Iowa. On November 23, 1893, the State Bank of Keokuk and Central Savings Bank of Keokuk consolidated to become the State Central Savings Bank with Judge William Logan as the President. It was under his direction in 1927 that the current five-story bank building was built on 601 Main Street.
The Second Generation-William Archibald Logan
William Archibald Logan, Judge Logan's only son, came to follow his father's footsteps and achieved the position of Vice President of the bank. However, his untimely death at the age of 32 left Judge little choice but to continue as President of the bank until his grandson, W. A. "Archie" Logan was old enough to learn the intricacies of the business he had founded.
Two years after "Archie" started his training in the business, Judge Logan passed away. It was obvious that "Archie" lacked the experience to take over the supervision of the bank, and for a short period of six years, the bank was operated under the guidance of Judge Logan's son-in-law, H.W. Huiskamp.
The Third Generation-W.A. "Archie" Logan
In 1933, it was determined that "Archie" was well qualified to take over the family business. For the next 40 years, he guided the bank with careful planning and foresight as the entire world crawled from the depths of the Great Depression. Through his wisdom and genius, State Central Bank continued to prosper.
Having made it through these difficult years, "Archie" cautiously started the bank on a course of expansion that would lead to its premier position among Keokuk's banks. Over a course of a few years, State Central Bank purchased banks in West Point, Farmington, Bonaparte, and even established a second facility in Keokuk: the Motor Bank, on 2nd and Main. These acquisitions were operated as branch offices to the Main Bank in Keokuk. The West Point operation was sold in 1993.
The Fourth Generation--William "Bill" Logan
By the time "Archie" was 67 years old, his son, Bill, was 36 and had already gained many years of banking knowledge and experience. With the father still active and the son highly experienced, the transition of management was smooth when Bill assumed presidency of the bank in 1970. Upholding his father's commitment to patron service and community involvement, Bill continued the trend of expansion and controlled growth. In 1977, Bill led the acquisition of an additional bank in Stockport, Iowa. For the convenience of Keokuk residents, he oversaw the establishment of a new drive-in banking facility on Boulevard Road in 1979. Eminent success made possible the purchase of a bank in downtown Fort Madison, Iowa (1988) as well as the purchase of a second bank on the west side of that town (1991). As with all of the previous expansions, those acquired under Bill Logan's presidency operated as branch offices to what was once the Main Bank in Keokuk.
The Fifth Generation--W. Tyler Logan
The tradition remains unbroken. Bill's eldest son, W. Tyler "Ty" Logan, assumed presidency of the bank in 1998. In that same year, he oversaw the establishment of a grocery store branch located in the Keokuk's County Market. He has been a bit of a pioneer, guiding the development of new services that the bank had not previously offered, such as Online Banking and Bill Pay. Partnering with Wells Insurance in Keokuk and Kern Insurance in Fort Madison, the State Central Financial Services was founded in 2000. In Dubuque, Iowa, a loan facility opened in 2001 and O'Connor Insurance joined State Central Financial Services in the years of 2003/2004. In 2004, a commercial lender was established in Johnson and Linn counties, (Iowa City and Cedar Rapids area) to develop relationships with small businesses.
Upholding the values of their fathers before them, they remains focused on the customer. Drawing from their knowledge and experience gained by the four generations of bankers, as well as their own intuition and understanding, The Logan's continues to keep the bank on the cutting edge of progress.