About Us

History

“To know where you’re going, you first need to know where you’ve been.” While we don’t know who to credit for this nugget of wisdom, it’s an appropriate reference point as we look back upon the history of Pacesetter Bank.

Headquartered in Hartford City, Pacesetter Bank operates two offices in its home community-the main office on State Road 3 North & a drive-thru facility in the downtown business district. There are two other offices, Dunkirk and Montpelier, located within Blackford County. Additional banking offices are situated in Portland, Upland and Union City, IN.

The present day Pacesetter Bank became a reality in 1997 when three separate financial institutions controlled by the Maddox Family of Hartford City merged into a single bank. This consolidation involved City Savings Bank, Pacesetter Bank of Hartford City and Pacesetter Bank of Montpelier. By pooling the resources and strengths of each individual bank, the “new” Pacesetter Bank could provide additional services, an enhanced customer experience, and deliver improved operating efficiencies.

City Savings Bank began business as Rural Loan & Savings Association on March 20, 1920. Ten prominent Hartford City businessmen, all active members in the local chamber of commerce, provided the capital to form the association which operated under a state charter.

The group hired an enterprising young man, Raymond M. Maddox, to manage the day-to-day operations of the association in 1924. The move turned out to be a watershed event.

During the course of the next 34 years before his untimely death in 1958, Mr. Maddox would guide the business through the Great Depression, World War II and the post-war home building boom. Assets of the association grew from $75,000 in 1924 to $5,500,000. Even more importantly, Rural Loan helped countless area residents achieve the “American Dream” of home ownership.

Raymond Maddox became the majority shareholder of the association during his tenure and brought his two sons, John R. Maddox and James B. Maddox into the business. John, the older of the two brothers, succeeded his father as president. Under John’s leadership, Rural Loan subsequently opened branch offices in Dunkirk (1965), Union City (1975), and Upland (1977).

Rural Loan changed its name in 1980 to City Savings & Loan Association to reflect its broader market. At the same time, regulatory changes allowed the association to begin offering a number of “banking type products” including consumer loans and interest bearing NOW accounts. Innovations, such as the “Bi-Weekly Mortgage Loan” and an adjustable rate mortgage, provided customers with new choices when purchasing a home.

In 1984 John R. Maddox Jr. became the third generation of his family to lead the association when he was chosen as president by the board of directors. An attorney, he watched with great interest later that year when the Indiana General Assembly granted building & loan associations the opportunity to change their state charters to “savings bank” status. Mr. Maddox felt it a wise change to make and on October 30, 1984, the association became City Savings Bank.

John R. Maddox Jr. remained as president of City Savings Bank until 1988 when he succeeded his uncle, James B. Maddox, as chairman of the board. Replacing Mr. Maddox as president was Ted Leas who still serves as president of the present day Pacesetter Bank.

Pacesetter Bank of Hartford City opened for business on January 4, 1965, as First National Bank of Hartford City. The new bank culminated years of effort and commitment by a number of local business and professional people led by John and James Maddox. The community had been served by a single commercial bank ever since the Great Depression. The group foresaw that a new bank would serve as a catalyst to greater economic growth within the community.

James B. Maddox served as president of the new bank that was built along busy State Road 3 on the north side of Hartford City. To help build its business, First National began offering a service charge free checking account with no minimum balance requirement. A novel idea at the time, the strategy worked and the bank began enjoying steady growth through the years.

Joe Bonham became president of First National Bank in 1968 when James Maddox moved to New Castle to lead a new banking venture by the Maddox family. Mr. Bonham, a cousin of the Maddox brothers, spent the next 30 years as an integral part of the bank as either president or chairman of the board.

By the early 1970’s the bank had outgrown its original structure and purchased the adjoining lots to undertake an expansion project. Completed in the fall of 1974, it added 2,400 square feet to the building and included a three-bay drive-up to better serve its customers.

The downtown business district of Hartford City was hit hard by an economic contraction in the mid-1970s. To help improve the area, First National Bank added a branch office on the southwest corner of the courthouse square. The new office, featuring a Victorian motif, opened for business in late 1977.

In 1985 bank leadership elected to seek approval from regulatory authorities to change its charter from a national bank to a state-chartered institution. The move was approved and First National Bank of Hartford City became Pacesetter Bank of Hartford City on August 1, 1986.

Pacesetter Bank of Montpelier, originally known as The Bank of Montpelier, opened its doors for business on December 20, 1939. The charter granted the bank by Indiana Department of Financial Institutions gained much attention at the time because no new charters had been issued by the department since 1933.

A husband & wife combo, Jack and Mertie Rempel, were the principals in opening the new bank in the downtown business district. They purchased a building formerly occupied by the First National Bank which had closed during a wave of bank failures in the early 1930’s. A two-story structure, The Bank of Montpelier occupied the street level space while the Rempels made their home on the second floor.

Jack Rempel served as president until his death in the mid 1950’s. His widow, Mertie, assumed those duties and became a rarity in those days, a female bank president. Despite her promotion, she continued to occupy the first teller window just inside the front door. Occasionally, Mrs. Rempel would even pull out her checkerboard and engage a customer in a game or two of checkers.

By 1967 Mrs. Remple decided it was time to retire from banking. She contacted John R. Maddox, who had expressed an interest in purchasing her shares several years earlier, about selling. The details were finalized and the change in ownership came in November. Mr. Maddox became the new chairman of the board, a post he would retain for the next 30 years.

The Rempels’ second floor living quarters were eventually converted into a large community room; several local groups began using it as a meeting site. As the bank grew through the 1970’s, the need for additional space became apparent. The Bank of Montpelier purchased an adjacent building in 1980 that formerly housed Henderson Department Store. Once completed, the project provided the bank with plenty of room in which to grow.

With an eye towards eventually merging the bank with the other Maddox family banks in Blackford County, The Bank of Montpelier became Pacesetter Bank of Montpelier on January 1, 1986. The bank opened a branch office in Portland in March of 1990.