History of Whiting’s Banks: Part Two

Anthony Borgo May 2025 

This installment will feature the second chapter in the history of banking in the city of Whiting.

The First Trust and Savings Bank of Whiting

Smith and Bader organized the First Trust and Savings Bank of Whiting in June, 1915.  Fred Smith, Gallus Bader, John Thiele, James Gill, John Schaub, Martin Hausler, Joseph Tapajua and John Klen served as directors.  During the institution’s first year the deposits were $32,279.35.  This figured was increased to $374,462.62 in 1927.  The capital, surplus and undivided profits were $84,854.80, and the total resources were $1,233,467.42. 

The bank opened in the former quarters of the First National Bank of Whiting, which was located at the corner of 119th and Oliver Streets.  The bank was involved in general banking, handling of life and fire, as well as, liability - personal, surety bonds and renting.

In 1920 the First Trust and Savings Bank of Whiting’s capital stock was increased to $100,000.  The institution also had a surplus of $25,000.  During this time, the bank had deposits of $1,553,373.52, and total resources of $2,080,409.77.  The bank’s officers at this time were: Fred J. Smith, president; John M. Thiele, vice president and cashier; William E. Warwick, vice president; A. H. Scholz and Louis Walsko, assistant cashiers. 

On December 12, 1931 the First National Bank of Whiting and the First Trust and Savings Bank of Whiting were taken over by a newly organized bank, the State Bank of Whiting.  The Standard Oil Company had subscribed the majority of the $50,000 capital stock and $25,000 surplus of the new bank.  The Schrage family also participated in the financing of the new banking organization, together with some of the stockholders of the First National Bank and First Trust and Savings Bank.

Edward G. Seubert, president of Standard Oil Company of Indiana served as president of the new bank.  The other officers were: W. R. Smith, formerly in the treasurer’s department of Standard of Indiana, vice president and cashier; and William Schrage, cashier of the Bank of Whiting, vice president.  The new board of directors were: Dr. R. F. Humphreys, vice-president of Standard Oil and former director of the First National Bank of Whiting; C.J. Barkdull, vice president and treasurer of Standard Oil; Walter H. Smith, formerly a director of the First National and Walter E. Schrage, president of the Bank of Whiting.

Standard Oil’s participation in the creation of the State Bank of Whiting was designed to aid its employees.  A large percentage of the depositors in the previous two banking institutions were employees of the refinery.  All remaining depositors were also able to benefit equally with Standard’s employees in this new venture.  Standard’s involvement was viewed at the time as one of the greatest stabilizing factors in local banking circles. 

The State Bank of Whiting opened for business at 9 a.m. on December 24, 1931.  The new bank was located at the former quarters of First National Bank at the corner of 119th Street and New York Avenue.  The personnel of the two banks affected were taken over by the new bank’s directors.  The reorganization marked the retirement from active banking business of Gallus Bader and Fred Smith, with Smith’s interests being represented by his son Walter Smith.

On January 19, 1945 Standard Oil Company of Indiana sold the State Bank of Whiting to W. R. Smith.  Smith was formerly vice president and cashier of the organization.  The Whiting bank at this time had assets totaling $6,572,452.  W. R. Smith purchased all the stock in the bank which was owned by Standard, thus eliminating the oil company from the banking business. 

Eight years later Smith sold the State Bank of Whiting to the Bankers’ Discount Corporation.  The corporation was stationed out of Dallas, Texas.  Smith reportedly received $1 million for the transaction.  At this time, Smith retired as bank president.  However, he remained on the bank’s board of directors.  Smith recommended Robert A. Morrow as his successor.  Morrow was serving as executive vice president of the State Bank of Whiting, at this time.

Three months later W. R. Smith returned as president of the State Bank of Whiting.  The Bankers’ Discount Corp. filed a bankruptcy action in federal district court in Dallas, prior to Smith’s return.  The Texas Corporation was forced by the Illinois auditor’s office to close two of its banks in Chicago on April 11, 1953.  All contracts and arrangements were cancelled under the terms of the contract on April 27, 1953 and returned to the control of Smith.

In 1968 the State Bank of Whiting was sold to a group of Indiana businessmen headed by Raymond E. Daly.  Daly was president of the Bank of Indiana located in Gary.  The 37-year old bank had total assets in excess of $17 million at the time of the sale.  Daly served as the bank’s chairman, while Carl E. Binhammer continued as bank president.  Charles Blackerby remained as vice president and cashier.  Blackerby and Binhammer were the only two holdover directors of the board.

Two years later, the State Bank of Whiting consolidated with the First National Bank of Cedar Lake.  The merger forged the Northwest Bank of Indiana, NA.  In 1973 the Northwest Bank of Indiana merged into the Bank of Indiana.  On July 1, 1986 the Bank of Indiana became Bank One.  Approximately two decades later Bank One was purchased by the Chase Bank organization.

The Whiting Savings and Loan Association 

The Whiting Savings and Loan Association was incorporated on May 5, 1907.  This organization provided a place of investment for its members.  Likewise, the financial institution was founded to assist in the building up of the Whiting community.  The advent of many industrial giants to the Calumet Region caused an increasing demand for dwellings, which the association attempted to meet.             

Loans were made only on real estate security.  Home builders were given the preference over all others.  Individuals building homes proved to be a safe investment.  Two months after incorporation there were $682 in deposits.  By 1910 that number had increased to $8,407.47. 

Deposits to the Whiting Savings and Loan could be made at any time and at any amount from 25 cents and up.  Depositors would then receive 5 per cent return on their initial investment, with dividends being declared twice a year.  Similarly, borrowers paid 7 per cent interest on any money loaned out. 

By 1915 the dividend rate was six per cent.  That same year the Whiting institution became the first Savings and Loan in Lake County to acquire its own office building.  The structure was located on the corner of 119th and Clark Streets.           

American Trust and Savings Bank 

The American Trust and Savings Bank was organized in 1920.  The institution was located, at this time, at 612 119th Street in a building adjacent to the Slovak Dom.  The bank opened its doors to the public for the first time on August 19, with deposits totaling $54,737.45.  American Trust and Savings also operated an insurance business in conjunction with the bank.

The founders of American Trust were Michael Kozacik, Roy E. Green, John Solapski, Joseph Tapajua, John Klen, Julius Gregorovick, and Michael E. Kozacik, Jr.  The officers of the bank were as follows: Michael Kozacik, Sr., president; Andrew L. Barau, vice president; John Salapski, secretary and treasurer, and Roy E. Green, bank attorney.  The men connected with this financial institution were well known business men.  At the time of incorporation, the bank directors had the greatest faith in the success of Whiting latest bank, the fifth of such to open in the city limits.

Over the years the bank enjoyed steady success.  By 1924 the American Trust and Savings Bank showed deposits of $490,477.40 and a total resource amount of $561,961.51.  Since the bank’s organization its customers and business increased to such an extent that the volume of transactions demanded larger quarters.  In December of 1924, construction of a new $100,000 bank building was started. The new bank was located at the corner of 119th Street and LaPorte Avenue, directly across the street from its previous quarters.

American Trust and Savings’ new home was the most modern financial institution in every respect.  According to a December 5, 1924 Hammond Times article titled “New Bank for Whiting” bank officials declared that the new quarters “will be the last word in efficiency for banking purposes.”  At the time of the new bank’s grand opening American Trust and Savings was considered to be one of the most progressive institutions in the district.  In addition to regular banking business the new headquarters was now able to handle large volume of high grade insurance.

The building was constructed in the Corinthian style of architecture.  The bank was furnished and completely equipped by the St. Louis (Mo.) Bank Equipment Company.  The lobby was finished in marble, with the teller cages being located in the rear of the lobby.  The new building featured five hundred safety deposit boxes along with a safety vault system.  In addition, large flood lights were installed, which were operated in conjunction with the modern burglar alarm apparatus.  The lights would entirely fill the bank with light, revealing the presence of any intruder and minimizing the danger of robbery.

In 1940, Joseph Grenchik, Sr. Immigrated to the United States from Czechoslovakia at the age of 16.  Shortly after arriving in Whiting Grenchik gained employment at America Trust and Savings Bank.  He was later promoted to bank president serving in this capacity until 1958.  For several years, the bank has stayed in the Grenchik family. 

The American Trust and Savings Bank served Northwest Indiana for nearly nine decades.  The bank experienced great growth in the 1990s when it opened branches in Hammond and Crown Point.  However, in 2009 Horizon announced that they would be acquiring all of the assets and liabilities of American Trust.  Horizon is a community bank serving Indiana and Michigan.  “Our focus is to anticipate and fulfill customer needs with exceptional service and sensible advice. This philosophy is what kept us growing stronger than ever since 1873.”

Come back next time for the conclusion of the history of banking in Whiting, Indiana.