Banks face challenges amid sour economy

By COURTNEY SERVAES, Herald Staff Writer

Ed York is just waiting for the dust to settle.

York, president of Ottawa’s Solutions Bank, said he, like many other bank leaders, is trying to weather the economic storm.

“It’s very quiet,” he said. “We’re not planning any major changes or doing anything major.”

Solutions Bank, 119 E. Third St., just like many of the other local banks, is just trying to survive — to do its best to provide good service and good rates.

“We try to provide [customers] with what they want,” he said.

But unlike Solutions Bank, several Ottawa area banks are planning major changes both internally and externally.

Citizens State Bank and GSSB

Citizens State Bank soon will get a new name — but not one unfamiliar in the area.

The bank at 118 E. Franklin St. in Pomona and Garnett State Savings Bank, 106 E. Fifth St., will combine assets in July.

In addition to its Pomona location, Citizens has a branch in Ottawa at 1250 E. Logan St. Likewise, Garnett State Savings Bank has another branch in Colony.

Combined, the two financial institutions will share more than $110 million in assets.

Garnett State Savings Bank was established in 1899. Citizens State Bank of Pomona was established in 1901.

Peoples Bank to First National Bank of Louisburg

In early May, the sale of Ottawa’s Peoples Bank was announced.

The acquisition of Ottawa’s Peoples Bank by First National Bank of Louisburg is scheduled to take place this summer.

Peoples has two Ottawa branches at 434 S. Main St. and 1506 S. Main St.

The First National Bank has locations in Louisburg and Stilwell, with $13 million in capital, and, coupled with the addition of the two Ottawa locations, the bank will have about $150 million in assets.

TeamBank to Great Southern Bank

The Federal Office of the Comptroller of the Currency closed Paola-based TeamBank earlier this year, including its Ottawa location at 2040 S. Princeton St.

Since then, the bank has switched ownership and is now known as Great Southern Bank.

Great Southern Bank, headquartered in Springfield, Mo., now operates 56 banking centers in three states.

Bank of the West: Business as usual

While some area banks are undergoing changes, Jeff Rea, branch manager of Ottawa’s Bank of the West, said he’s trying to keep things normal at his location, 700 S. Main St.

“There hasn’t been anything noticeable,” he said. “None of the things we are doing are affecting customers.”

Bank of the West underwent a name change in 2005. Before that, it was known as Commercial Federal Bank, but Rea said the bank currently is not making any drastic changes.

“We’ve basically reduced our spending a lot, and we’re doing a lot of cost control efforts right now,” he said. “That’s pretty much the only change we’ve made.”

Representatives from other area banks did not return phone calls by this morning.

Like Bank of the West, Solutions Bank’s Ed York said his customers aren’t noticing any changes or showing too many concerns with their banking.

Most of his customers — including senior citizens who often are eating away at their savings accounts to pay for living expenses — are understanding of the current situation, he said.

“We’re just trying to be competitive,” York said.

Courtney Servaes can be e-mailed at cservaes@ottawaherald.com.