New Braunfels Herald Zeitung (Newspaper) - October 15, 1993, New Braunfels, Texas
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IS Pages In one section ■ Oct. 15,
1993 Serving Comal County ■ Home of MELBA ROTH
Vol. 141, No. 233
STAMM I ISC II
The New Braunfels Herald-Zeitung extends the following birthday wishes; Chrlelopher Muzchalek, /seater Prod,
Pedro Martinez, IrraslLaraJr., Melba Roth, Bd* Koan*, Ayond* "Alex" Gonzalez,
JuUe Wallace, Becky Cram, Mart Diaz, Jacqueline Joy We*, Gilbert Hernandez, Aurora Sulker. Mopey Aaaivertary lo George A Irmo Aleman, Theora A Johnnie Mondln (43rd), MleheBc A Scott Yogee (let), Gilbert A Loulea Alvarez (28th),
New Braunfels Chapter No. 666 of the National Association for Retired Federal Employees will meet Friday, Oct. 15, at the Senior Citizens Center, 855 Lands Street, at 9:30 am. A New Braunfels police officer will present a program on protecting your home when you are away, and Congressional legislation will be scrutinized. Everyone is invited. Coffee and refreshments will be served. Call Wilbur Wieding at 629-6522.
Symphony Qui Id raffle
Members of the New Braunfels chapter of the MidTexas Symphony Guild will begin selling raffle tickets to benefit the symphony.
Fust prize is a round trip for two anywhere in the contiguous United States, donated by American Airlines and Rennert's Travel
Second prize is a gift certificate for $150 in merchandise from the merchants of Landmark Square.
Other prizes are a night for two at the River Haus Bed and Breakfast and aThanksgiving floral arrangement from Weid-ner’s Flowers. Tickets are SI, or six for $5, and are available from Guild members, or at Fast Choice at Landmark Square, the Children's Museum, Home Hardware, China N1 Things and the Retreat Salon.
The drawing will be held Nov. 14 following foe symphony concert at the Civic Center.
A Taste of Theater to be present ad
A Taste of Theater from "The Dining Room" of AU. Gurney will be presented by retiring officers of the Book Review Cub at its last regular meeting of the year, Tuesday, Oct 26.
Those presenting excerpts from the play ate: Lucille Downs, Joyce Billingsley, Sue Luttrell, Nancy and Howard Schultz and Many and Dick Weicker. The slate of officers for 1994 includes: Doris Amacher, president; Linden Anderson, vice president; Shirley Brooks treasurer, and Isabel Magel, secretary. The program is at IO ajn. in the ballroom of the Senior Citizens' Center with coffee at 9:30 arn. and short business meeting to follow the program. The public is welcome with a$2 donation per person.
(Th4 New Braunftls Herald-Zeitung invites its readers to submit items lo Stammlisch. According lo the Sophienbnrg Archives end members cf the German community,"Stemmtisch" represente a silting place for members Cf the community la gather and share the day's happenings. We invite yon to With MSJ
Plaza Bank closed
Bank’s customers now in hands of Texas Commerce
MARK LYON big Editor
New Braunfels' second oldest bank, Plaza Bank, was closed at the end of the business day yesterday and reopened this morning as part of Texas Commerce Bank - New Braunfels, according to TCB chairman and CEO Bob Smith.
Plaza Bank was closed by the Office of the Comptroller of the Currency (OCC) and the Federal Insurance Deposit Corp. (FDIC) was named receiver.
Texas Commerce Bank assumed the insured deposits of Plaza Bank, totaling approximately $55 million and assets worth approximately $35 million from the FDIC. Texas Commerce Bank agreed to pay a $3 million premium to the FDIC, according to Smith. The action now makes Texas Commerce Bank the largest bank in Comal County with deposits in excess of $200 million.
Plaza Bank, which had assets of about $61 million, was closed by the OCC because the bank had incurred losses that depleted all of its capital, an FMC spokesman said The losses were related to MBank Dallas, which failed in March 1989.
Plaza Bank, which was then known as MBank New Braunfels, had sold fomk to MBank Dallas in 1989 and later claimed in a lawsuit that the FDIC owed them the fonds it had sold to MBank Dallas.
When it was determined that the FDIC was not required to give Plaza Bank those fonds, Plaza Bank recorded the loss on its books. The OCC then determined that closure and appointment of the FDIC as receiver was necessary to protect the interests of the bank's depositors.
According to the FDIC and the OCC, 77 accounts totaling $665,000 exceeded the federal insurance limit of $100,000 and will not be assumed by Texas Commerce.
The FDIC board of directors also voted to make a prompt advance payment to uninsured depositors equal to 70 percent of uninsured claims. Uninsured depositors can call an FDIC claims agent at the failed bank’s main offices Friday.
Smith said he expects a smooth transition, noting that Plaza customers should continue to use their current banking facilities as well as existing checks, deposit slips, ATM cards, loan payment coupons and other related material.
"We're very excited about it,” Smith said. "Plaza Bank has a lot of great depositors and great customers. Tomorrow morning, we’ll be open for business as usual. We’re looking to make this transition as smooth as possible.”
Randall Haugh, President of Plaza Bank, said the bank was the only bank left in the MCorp holding company and that the only resolution was to sell it.
"Qir association with MCorp was the only problem,” he said. "It was a very well-run bank. We just were not paid back aa other creditors were. I’m glad that it is over but sorry that there
Harsdd-Zaitung photo by JOHN HUSETH
Joan Slocum Hannan (pictured) want to Plaza Bank to make a deposit lata yesterday, only to find her bank of 23 years had cloaad and that aha was now a customer of Texas Commerce Bank of Now Braunfels across the street. Sh# saki aha hat kept a savings account, checking account and a horns mortgage for that length of lima.
bank’s board of directors were Ray-m o n d B a e s e , Mitchell J. Sacco, DDS, Stanley Woodward MD., Steve D.
At least 15 institutions, all of them unnamed except Texas Commerce Bank, submitted bids to obtain Plaza Bank, Smith said "We’ve been looking at it for several —— weeks,”
will be a vacant building on the Plaza.
The bank had a good position but this was the only way to do it. I'm real proud of our board of directors for seeing it through.”
I h e ■»■.........................
'Our association with MCorp was the only problem. It was a vary wall-run bank. Wa Just ware not paid back as other creditors wore. I’m glad that It Is over but sorry that there will bo a vacant building on Taylor jim the Plaza.’
j a n e 11 c - Randall W. Haugh
Berger, President, Plaza Bank number
he said. “It’s been in the bid process for that long. We’re going to b e putting additional capital on top. There are a small
Hollmig and Randall Haugh.
Smith echoed Haugh’s comments, saying "the reason this happened is due to old involvement with MCorp, not because banking is weak here. I don't see it as an indicator of weak business.”
deposits in question. The FDIC will have contact people here in the morning to answer any questions.”
Smith said that Texas Commerce did not purchase the building which Plaza Bank is located and that it would soon be vacated. However, the Plaza
Bank Motor Bank was included in the deal and will be operated by Texas Commerce Bank. Smith said that it will take about three months to transfer all the accounts to Texas Commerce Bank, and also noted that Plaza Bank customers will now be able to bank at any of TCB’s 120 Texas locations.
Plaza Bank, chartered in 1928, has 26 employees which Texas Commerce Bank will try to retain. Smith said. The bank began operating in 1921 as Guaranty State Bank and was acquired by MBank in 1986, and then became Plaza Bank in January of 1991.
Smith, who is heavily involved with the New Braunfels Main Street Project, said he will be working diligently to find another tenant for the Plaza Bank building. Texas Commerce Bank, founded in 1881, is the oldest bank in New Braunfels.
When asked what his immediate plans were, Haugh said he was going to "enjoy living in New Braunfels and enjoy Wurstfest. Past that, I don't know."
Haugh has served as president of Plaza Bank for the last seven years.
Bank’s closing brings surprise, concern to many
By ROSE MARIE EASH
Local reaction to the closing of the Plaza Bank was surprise and concern for the future of the employees and foe building.
"I’m saddened,” said County Judge Carter Casteel. "MBank has been here all the years I've been here. (The Plaza) was a successful bank, it was being part of MBank that led to this. I am concerned about that large building being empty there. That will affect the city’s tax base. I'm hoping someone will get busy real quick to fill it. As a community, we need to do whatever we can to help find those people displaced employment.”
"We’re as much surprised as anyone in town,” said Tom Purdum, President of the Greater New Braunfels Chamber of Commerce. "We knew there was an attempt to sell, but that was all we knew. We’re going to try again to fill (the building). Fortunately, we are adding jobs in town. Our economy is picking up. I think it is a setback, but not a mtyor setback”
"I think it’s most important for people to understand that the local board and the bank’s management have always done a good job with the bank,” said Bill Cone, President of Citizens Bank. "The only reason it was failed by the regulators was because of its ownership by a DaUas-based multi-bank holding company. If it had been locally owned it would still be here. We hope that the ultimate influence will be minor. We know Texas Commerce will do as much as they can to assure that.”
“Ifs sad,” said T. L. Walker, Regional Director for Victoria Bank & Trust. "In this case, that bank was successful but they got caught up in a circumstance with their ownership. I’m very pleased that the assuming institution is a local one and there won’t be a new player here. I wish all of them the best of luck. From a customer's point of view, I think that banking in New Braunfels will continue to move forward.”
“It’s devastating news to the city,” said Jan Kennady, New Braunfels Qty Councilmcmber. "I bank there, I feel like that’s my banking home. I’m thrilled that TCB has bought it because the depositors will be safe. We’ll have to regroup — maybe we can all pull together to do something with that building.”
Kennady also expressed concern for the employees and frustration at the loss of a major downtown tenant.
Another customer expressed her disappointment at the Plaza closing.
"Boy, I hate to see this happen,” said Joan Slocum Hannan. "I know everyone here —the tellers, the officers. I’ve been banking here for 23 years. My house mortgage, my savings, my checking accounts are all here.”
Slocum had just made s deposit in the night depository when she learned the bank was closing. She was able to speak to a Texas Commerce bank employee who assured her that her deposit would be safe.
Local convenience store held up
New Braunfels poUce arc looking fix two men who held up a local convenience store using a tire iron last night.
The two suspects entered the Pit Stop store at Walnut Street and Interstate 35 shortly after 11 p.m. Thursday night They took beer from the cooler, but instead of paying for it, one of the men brandished a tire iron at clerk Debbie Shepherd and demanded the money from the cash register, according to a police report. The report •tatee the amount of cash the men fled with has not been determined. No one was injured in the robbery.
Police said the clerk and another witness gave descriptions of the suspects and the truck they fled in. The police report states that evidence gathered from the store and from the witnesses should be helpful in the investigation.
The first suspect was described as a white man, 20 to 25 years old, with brown eyes, short brown hair, five-feet ll inches tall and 160 pounds. He wore a blue jacket and jeans. Die second suspect is a white man, 30 to 35 years old, with blonde hair, lix-feet tall, 160 pounds and wearing a stone-washed jacket and red baseball cap.
They drove a late 1970s white and brown Chevrolet fill! size pickup truck.
Look-a-Like deadline approaching
From staff reports
The deadline for entries in the Hummel Museum Look-a-Like contest is quickly approaching.
Entries for the contest, which will be held Oct. 30 on the steps of the Hummel Museum, must be submitted by Od. 25.
The costs will be held at IO a.m. Contestants will be judged on the likeness to Hummel figurines.
Children who would like to enter should stop by the Hummel Museum and choose the figurine they would
like to imitate The entry fee is $10 per child.
Entries will be accepted in two categories: individual figurines and group figurines. Entry forms are available at the Hummel Museum, Opa’s Haus, or the Municipal Building at 424 Casten Street. Proceeds from the event will be given to the Hummel Museum.
Grand prize winners in each category will receive a $50 savings bond from Citizen’s Bank, Texas Commerce Bank or Victoria Bank and Trust. Every entrant will receive a $10 gift certificate from Opa’s Haus.Buy it! Sell it! Trade it! Herald-Zeitung Classifieds Get Results! 625-9144