First Federal Savings and Loan Association
opens Jan 3, 1966 at 301 E. Ninth Street in Rochester
You can’t talk about First Federal Savings Bank without talking about its founder and only president, Richard E. Belcher. Around Rochester, many locals simply refer to First Federal as “Dick’s Bank”.
It takes vision to start a financial institution in the back room of a neighborhood grocery store, but that was how Dick Belcher introduced First Federal Savings and Loan Association of Fulton County to Rochester, Indiana. On Jan. 3, 1966, he and one other employee greeted their very first customer ten minutes after the door opened.
Dick Belcher closes the first mortgage loan
with Mr. and Mrs. John Waltz in February 1966.
First Federal was founded to fulfill a public need. In the early 1960s, Rochester’s area banks did not offer mortgage loans. To fulfill that need, Dick and his college roommate from Purdue University, Joseph Hasler, formed the idea in 1964 of founding a thrift bank. After obtaining the charter, they and the directors were ready to open the door on the first business day of 1966 in a room warmed by a one lung furnace. By the end of the first year, First Federal had $1 million in savings deposits.
In addition to Dick, the founding directors were Dean K. Stinson, physician; Jay Heyde, oil company owner; Jesse Brown, local attorney; Garland “Bat” Masterson, grain dealer; John Howkinson, high school industrial arts teacher, and Joseph Hasler, manufacturer of corn products.
Providing quality customer service has been First Federal’s focus from the beginning. “It has been said that to survive as a small community bank today, one must have a niche in the market,” Dick said. “Mortgage banking is and has been the niche that has worked well for us.” Customers could expect personalized service from the start. Dick took loan applications and held loan closings in places as diverse as kitchens, offices, across the hoods of pick-up trucks and even in a bowling alley. Loan servicing was done in the bank, where Dick and his growing staff could be found to answer customer’s questions whenever the need arose.
The Squirrel Club for young savers enjoys a movie at the Times Theatre in Rochester in the 1970s.
As deposits grew, the need to provide the best service possible led to the introduction of the area’s very first, homemade drive-up window. By the end of 1972, First Federal had assets of more than $7 million. Two years later, total assets came to more than $18 million. First Federal became the first thrift in Indiana to convert from a mutual association to stock by issuing 130,000 shares in 1977. The name was changed to First Federal Savings Bank in 1984 to better reflect the function of the bank.
As First Federal’s branch offices throughout northern Indiana were opened, loan originators and loan servicers provided the same localized service to their communities. Branch offices were opened in Winamac in 1973 and in Bremen in 1974. In 1976, the main branch was moved into the newly constructed facility next to the original grocery store, which was then demolished. The Plymouth branch opened in 1979. A branch in Elkhart began as a mortgage origination office in 1989 and became a full service office in 1998. That year also saw the opening of a mortgage origination office in Mishawaka. That office in turn became not only a full service branch in 2008, but also Indiana’s first bank facility built to achieve Silver Certification for meeting the U.S. Green Building Council’s requirements for Leadership in Energy and Environmental Design (LEED).
Through good economic times and bad, the bank adjusted to meet the conditions of the time. “We recall prime in the 1980s up to 20%, which caused us to have inverted yield curves,” Dick said. “That meant that we lost money every day except Sundays, living out of our reserves. Some policies that we put in place at that time because of necessity we still use. We became a better bank because of those adversities. We learned early on that luck happens when preparation and opportunity meet.”
In January 1991, First Federal was able to report a record net income of $861,600 for 1990, up from $286,195 the year before. Dick attributed the bank’s record performance to a robust local economy, which enabled the bank to record a record $37 million in first mortgage home loans in its market area. For 1992, First Federal’s high return on assets out-performed every commercial and savings bank in Indiana, including those of over $1 billion in assets. When industry analysts considered a one percent ROA a good return, First Federal’s ROA for 1992 was 2.19 percent. The bank earned the same state ranking the following year. When asked about the bank’s achievement, Dick said, “All our staff’s hard work for the past finally is coming together and the success that we have had is because we concentrate in our niche of home mortgage lending.”
In 1997, Dick was named Northern Indiana Entrepreneur of the Year in the financial services category. The awards program was sponsored nationally by Ernst and Young, USA Today and the Nasdaq Stock Market.
Year after year, the bank continued to show healthy profits. Even during the economic crisis of 2008, when other banks accepted bail-out money from the federal government, First Federal declined the funds because of its healthy balance sheet and its conservative loan policy, and still showed a profit for the year.
From 2005 through 2008, First Federal Savings Bank achieved Freddie Mac’s Tier One Platinum performance ranking for excellence in investor reporting and default management. It is the government agency’s highest rating.
Service to their customers and to their communities is part of the bank’s culture. In addition to financial donations to various local organizations and charities, several bank employees actively participate in projects such as the Monroe Circle Financial Literacy Program for children and adults in the South Bend/Mishawaka area. In 2010, First Federal Savings Bank was honored by the Indiana Bar Foundation. The Interest on Lawyers’ Trust Accounts (IOLTA) program offers access to the justice system for low-income people, based on interest accrued from these accounts. First Federal stood out as paying a fixed rate of 6% for six years, far above the next highest IOLTA rate of 2.02%. The report in the Bar Foundations’ 2009 Annual Report said, “First Federal is an institution exemplar of stewardship, signaling nothing short of excellence in generosity.”
Entertaining the public is also counted as service to the community. In Rochester, First Federal hosted four free concerts by the Purdue University Varsity Glee Club over the years. In addition, Dick’s weekly half-hour radio show on local station WROI, WROIFM.com, features guest speakers, announcements of local events and sports, as well as bank news.
Dick often refers to the staff as the “First Federal Family”, and the relaxed working atmosphere is behind First Federal’s success. The bank offers its employees health insurance, health savings accounts and 401(k) plans. Profit-sharing is an added bonus when the bank’s quarterly performance is well above the peer-group average.
Each First Federal branch celebrates Customer Appreciation Day each summer. A jazz group, with loan originator Tim Hershberger playing trombone, performed at the September 2012 event in Elkhart.
“Our staff through the years has helped make First Federal the fine bank it is today,” Dick said. “Our mission statement says it very well: First Federal’s mission is to serve our customers with the newest, competitively priced products delivered to them with state-of-the-art technology; to provide to all First Federal Family members a favorable working environment with reasonable compensation and benefits; and to treat all customers and First Federal Family members in the manner that all would like to be treated.”
“We don’t want to be the biggest bank,” he said, “just the best.”
- Message from the President
Mortgage rates are still low
The low mortgage rates we've been seeing are still with us. This remains a good time to consider the purchase or refinance of a home loan with First Federal. Our loan servicing is second to none, and our loan products are designed to fit almost every mortgage need.
If you've never owned a home, our First Time Homebuyers Loan Program is for you. Your standard closing costs will be paid by First Federal Savings Bank, which will save you hundreds of dollars. This type of loan is available for single family primary residences only, and may include manufactured homes, depending on the type of loan.
We also offer FHA Loans. Borrowers who may not have perfect credit may qualify for a fixed rate loan insured by the Federal Housing Administration. This loan is for primary residences, and the down payment of just 3.50% can be a gift from a family member, an employer, a charitable organization or a local government entity.
These are just a few of our mortgage loan products. Our loan originators are able to help you determine which type of loan best suits your needs. For all of our loans, borrowers must meet underwriting guidelines, and a delivery fee may be applicable to the loan.
When you are ready to apply for a loan, contact one of our originators. He or she can take your application online, or they can meet with you at a time and place that fits your schedule.
I welcome your questions, comments or concerns. Please feel free to contact me at firstname.lastname@example.org, or call 800-422-3372.
- Community Involvement
First Federal donates time to relief project
A group of nearly 40 First Federal members and their families helped pack meals for "Feed My Starving Children MobilePack", a Christian non-profit international relief organization. The group worked a two-hour shift during the two-day event Aug. 23 and 24 at Mill Creek Missionary Church in Rochester. A total of 116,000 meals were packed over the weekend, exceeding the goal of 100,000 meals.
- Mission Statement
First Federal’s mission is to serve our customers with the newest, competitively priced products delivered to them with state-of-the-art technology; to provide to all First Federal Family members a favorable working environment with reasonable compensation and benefits; to treat all customers and First Federal Family members in the manner that all would like to be treated.