The Salina Journal from Salina, Kansas on May 11, 1997 · Page 22
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The Salina Journal from Salina, Kansas · Page 22

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Salina, Kansas
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Sunday, May 11, 1997
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Page 22
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SUNDAY, MAY 11, 1997 BANKING MONEY THE SALINA JOURNAL Security Savings Bank steps into commercial lending field Expansion from home mortgages could help thfift's bottom line DyALFABUHAJLEH IliP-Xnliim/niirnnl Security Savings Bank, a Salin;i;based saving and loan institu- ii<m at 317 S. Santa Fe, is venturing into the commercial side of the lmilking industry. Security has begun offering-commercial loans as well as commer- > ial checking and savings accounts. Savings and loans, institutions that specialize in home mortgage landing, once were barred by federal Regulations from offering com- iii^rcial loans. Those rules were relaxed in 1995, and thrifts now can s'4' aside 20 percent of their loans lot; business customers. That means Security Savings Malik could offer about $40 million hi.loans to business customers, -aid Tom Wilbur, president. Wilbur said the bank last week in.'fcm marketing its products and . • "cviccs to Salina businesses. hi addition to commercial loans, Hie savings bank offers checking anil savings accounts tailored for businesses that often make more monthly transactions than individuals. The checking accounts pay no interest, and commercial cus- l omers are charged a monthly fee. "We are the small guys entering into the big market," Wilbur said. "We have been planning to do this for about a year. We wanted to make sure that we had the right personnel to head up the commercial part of the bank." Security Savings Bank hired Al Eichelberger last month as a senior vice president. Eichelberger, a commercial loan officer for 1.7 years at Bank IV, now Nations- Bank, 138 N. Santa Fe, is in charge of commercial loans in Salina. The savings bank, founded in 1898, has three other commercial loan officers at branches in Garden City. Olathe and Wichita. The thrift has $248 million of assets. One reason Security Savings Bank offers commercial loans, Eichelberger said, is to protect against changes in the interest rate. Most home mortgage loans have a maturity of 30 years and are locked into a fixed interest rate, he said. Commercial loans, however, are due within 10 years to 20 years and tied to a variable rate, he said. As interest rates increase, the savings bank has to pay more on savings accounts and certificates of deposit. But income from interest on mortgage loans would not increase, or would increase at a slower rate, Eichelberger said. Another reason is the thrift can charge more interest on commercial loans than they can on home mortgage loans, Eichelberger said. Mortgage rates at Salina banks are pegged at 8.25 percent. Commercial rates stand between 9 percent and 10 percent, Eichelberger said. The key to commercial lending is persuading businesses that you are reliable, Eichelberger said. BRIEFLY "There are too many banks in Salina and we have to compete with every one of them," he said. "We have to show clients that we are in this for the long run." Wilbur said he thinks the Salina market has room for one more commercial lender. "Some of our customers who own businesses have already approached us about commercial products and services," said Wilbur, adding the savings bank has yet to land its first commercial customer. "Commercial lending will improve our performance; by how much I don't know," he said. "We feel there are a lot of small businesses in the Salina market that we can build our portfolio around." Harold Stones, executive vice president of Kansas Bankers Association in Topeka, said many savings and loans choose not to expand into commercial lending. "They know the home mortgage industry and are good at that," he said. "There really isn't any need for them to change their business." Company officials at Salina's two other savings and loans — Capitol Federal Savings at 2550 S. Ninth and Commercial Federal Bank at 110 E. Iron — said they are not offering commercial loans. "We are primarily a single-family mortgage lending firm," said Jack Huey, first vice president of Capitol Federal Savings. "Commercial lending isn't something that we have experience in. You need the right people before you get into that." Optical Dispensers has new owner, name Doug Kelsey is the new owner of Doug's Optical Dispensers, 1495 K. Iron. The store was formerly owned by Duffens Optical, a Tope- Is a-based wholesale company. The store used to be named Optical IMspensers. Kelsey has worked at the store for 17 years and was store manag- er.for 11 years. The business is open 8:30 a.m. to .'i:30 p.m. Monday through Friday ;md 8:30 a.m. to noon Saturday. The phone number is 827-8123. Anesthesia practices merge in Salina Salina Physician Anesthesia at I'.UU S. Santa Fe and United Professional Anesthesia at 1300 E. Iron have merged. The new company has been nmned Anesthesia Associates of Central Kansas and has an office in the MarketAide Building, 1300 E. Iron. The 13 members of the Anesthesia Associates are independent health care providers. They all practice medicine at Salina Regional Health Center, 400 S. Santa Fe. Appointments can be scheduled Monday through Friday 8 a.m. to 4:30 p.m. The phone number is 827-2238. Baskin-Robbins stand opens in Abilene ABILENE — A Baskin-Robbins ice cream store has opened in the Amoco Food Shop, 2200 N. Buckeye. The ice cream stand, a scaled- down version of a full-size Baskin-Robbins, offers 24 flavors, including one sugar-free and one non-fat selection. The shop, which joins a convenience store and a Blimpie Subs and Salads at the gasoline station, is open Monday through Friday 11 a.m. to 10 p.m. The phone number is 913-263-1684. Orscheln to open store in Junction City JUNCTION CITY — Moberly, Mo.- based Orscheln Farm and Home Supply is opening a store this summer in Junction City. The retail chain sells landscaping, hardware, farm supplies, tires and automotive goods as well as western and working clothes. Orscheln Farm and Home Supply has 80 stores in the Midwest, including one in Salina at 360 N. Ohio. From Staff Reports lhe Salina Journal BUILDING PERMITS Exide Battery, 413 E. Berg, has boon issued a building permit to begin the first phase of a $3 mil- I ion expansion of its manufacturing plant. The company, which manufactures automotive batteries, will construct a $300,000 building to house equipment to make longer-lasting batteries. {These are the other building permits recently issued by the S-ilina Permits and Inspection Department and Saline County Planning and Zoning Department. SALINA "Commercial — 745 N. Hedville, Kolling Hills Refuge, footing for "Hack bar, $2,500. 167 E. Avenue A, KIN Network, Hi5-foot cellular tower, $430,000. Residential miscellaneous —153 Tulane, Roger Will, enlarge bedroom and install partition for bathroom, $3,000. loOl N. llth, Nancy Shanahan, porch, $800. SALINE COUNTY Commercial — Corner of South Old Highway 81 and Assaria Road, Great Plains Manufacturing, entrance sign, $1,500. Garage — 9104 S. Fairchilds, John Tillman, no price available. Single-family home — 2728 Rifle, Tamra Benson, manufactured home, no price available. From Staff Reports ADAM HEALY 2075 S.Ohio, Suite 7B 823-7713 For auto, home and life— Being in good hands is the only pkce to be: No Closing Costs If you've found that home of your dreams and you're just a little short on cash, come to Sunflower Bank. Take advantage of a mortgage loan with NO CLOSING COSTS. 'Available on bunllower Bank live-year and three-year «^«,«^ « ^«. iidfuslable rate mortgages Does not include pie pays Otter subject to change without notice Sunflower Bank's Mortgage Loan Department John Redding SUNKLOWKK HANK Catherine Nfogekbetg Steve Weis Drop by 2070 South Ohio or Call for an appointment CHAMPION SEMINARS MIDWEST PERSONAL GROWTH CENTER Phil Coleman Management and Sales Consultant, Seminar Leader, Motivational Speaker A partial client list of past, present, and future seminars, in-house training/ consulting and speaking. * Monfort Beef Division * Kevin Sterling, DOS •* Atchison Chamber •* Coldwater School System * Mid-Kansas Bankers * Weber Refrigeration * Seward Co. Community College * Pratt Community College * K-State Business Week * Andover School System * Excel Corporation * N.E. KS School Board Members it Topeka Capital-Journal * Hillcrest School System * Burlington Leadership * Dodge City Community College * Nemaha Co. Farmers Banquet * lola School System * Lyon Co. Electric Coops * Coastal Mart Corp. * Neodesha School System * Kansas Electric Cooperatives * American Management Association * Pratt School System * CusU,,,,ny Products * Dighton Conservation District •k Kinsley Student Motivation Program * Lamed Leadership Group * U.S. Postal Service * Wilson County Hospital * Oklahoma Electric Coops * Hamilton Co. Hospital * Ness City School System * Holcomb School System * Blish-Mize Co. * Holton Conservation District * NW Kansas Educational Coop * Garden City Chamber * Kansas Hospital Association * Kansas Court Reporters * Butler County EMS * Sedan USD Winner's Camp * Kansas Mappers Association * Howard Winner's Camp * Oakley Motors * Colby Chamber * Healthcare Data Systems lor information contact: Champion Seminars Phil Coleman, owner P.O. Box 6172 Salina, KS 67401-0172 (913)825-4161 "Our Training Creates Results" PUTTING YOUR FTJTtIRE FIRST IN OUR SECOND CENTURY INTEREST RATES AGEdwards «/ INVESTMENTS SINCE IKS? 118 W. Iron Salina, KS 825-4636 Doug Stein Member SIPC 1997 A.G. Edward & Sons. Inc. IB-24-0498-ESN. ^ P^ INSURANCE GROUPS STANDING GUARD • Business Insurance • Employee Benefits • Personal Insurance • Estate Planning • Surety Bonds 405 E. Iron • Box 2747 • Solino, KS 67402-2747 BUS. (785) 827-7233 • (785) 823-6341 101 1/2 North Main, Lindsborg, KS 67456 BUS. (785) 227-9945 1. TAX-FREE MUNICIPAL BONDS** ££5% BONDS 7,65% 3. U.S. GOVERNMENT GUARANTEED BONDS 6,67% Rates Effective (is nf 5-5-97 * Rale fxpresfed as a yir/rl In maturity " May he sabjfft In alternative minimum lax. JMS Financial Services Insurance and Retirement Planning 111 S. 5th 913-823-3035 o «i:«« I^O 1-800-823-3034 lIN.SCUTKIVOTKI-HXra balina, JVO MEMBER NASn.Tiid SIPC Kiln (iwinnri •COMMERCIAL Giving The Environme A Helping Hand •INDUSTRIAL -3% v •APARTMENTS^ •RESIDENTIAL »«.3w>j Commercial Service Re»fel«ntial Service 825-9T55 Free Service"£sfiftiates 827-3939 'Quality Waste Removal Service. F irst Bank Kansas is proud to introduce Advantage Trust Company and its management team — Mark L. Miller and Julie Sager Miller. TRUSTWORTHY With nearly 45 years of combined trust experience in Salina, Mark and Julie offer a wealth of trust and investment knowledge. Whether you need help with personal trusts and estates, conservatorships, estate and financial planning, investment advisory services, or custodial services, Mark and Julie are the right people to call. Because when you're making life's most important financial decisions, you need people you can trust. Mark I.. Miller and Julie Sager Miller can he reached at 452-3561. FIRST BANK KANSAS Advantage Trust Company is located In the First Bank Kansas building at M5 S. Santa Fe in Salina.

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