HISTORY & MISSION

The Bank of Keystone received a charter from the Nebraska State Banking Board on June 7, 1909.  The business was conducted in a corner of the Welpton Lumber Company on the east corner of Fenwick and Sillasen Streets in the town of Keystone, Nebraska, approximately six miles east of what is currently Kingsley Dam and Lake McConaughy.  By 1911 a new brick building had been built on the west corner directly across the street from the original location. The capital stock was $1,500.

In 1929 D.D. Cole of Arthur, Nebraska, became Bank Manager and moved his family to Keystone.  Mr. Cole bought controlling interest in 1935 and became President.  The bank truly became a family-owned bank as other stockholders were Minor Cole, Ted Cole and D.O. Cole.  When Ted Cole was called to the Army, Gene and Ruby Feltz bought Ted’s stock to hold until he was discharged.  Upon his return Ted’s shares were sold to D.O. Cole and his daughter Donna.  The D.D. Coles moved to Ogallala, Nebraska, and sold the bank to Harold Orr in 1956.  Harold Orr is pictured at left standing in the vault door of the original bank in Keystone.  Mr. Orr sold the bank to Keystone Investments Corporation in 1971.  Keystone Investments Corporation was a group of local investors that marked a brief period of time when the bank was not a family affair.  In June 1981 the bank once again became a family-owned entity when Dr. Warren Orr, the son of the late Harold Orr, purchased the bank from the group of local investors.  The brick building in Keystone was expanded in 1984, nearly doubling the size of the location.  With an eye on the future but a pain in the hearts of long-time Keystone residents, the bank moved approximately seven miles to the west and north of Keystone in 1998.  The new building was built at the junction of Highways 92 and 61 north of Kingsley Dam and Lake McConaughy in 1998.  It opened its doors in November 1998.

Dr. Orr passed away in March 2002 shortly after retiring from his very successful radiology business.  Mrs. Alice Orr has kept the bank in the Orr family and in 2012 completed a transfer of ownership of stock to daughter Teresa Keslar, who is currently the bank's majority stockholder.

The Bank of Keystone currently has four locations in rural communities in Western Nebraska.  The bank’s branch in Arthur, Nebraska, was established in 1982.  Karen Hanna serves as Customer Service Representative/Branch Manager.  The branch in Hyannis, Nebraska began as a Loan Production Office in November 2000.  The building was expanded and the branch became full service in August 2004.  Linda Anderson serves as Customer Service Representative/Branch Manager.

The fourth location was added at the end of 2004 when Elsie, Inc., the holding company of Commercial State Bank in Elsie, Nebraska, was merged into Keystone Investment, Inc., the holding company of the Bank of Keystone.  It is said the original bank in Elsie went out of business and in 1907 two new banks were organized the same day.  One was the Commercial State Bank, which belonged to the Beaumont family, and was operated by Owen Stockton, cashier.  This bank was located in the old John Lonegan Saloon Building, which was later occupied as a telephone central office for a number of years just north of Matt McGahan’s Seed Store.  The other bank was the Citizens Bank, which was owned by the McCulloughs, Robert Taylor and Frank Pielsticker, with L. E. Mehlman as cashier.  This was located where the present bank now stands.  Later, about 1911, Robert Taylor and Sam J. O’Connor bought the control of the Citizens Bank from the Beaumont family and then worked out a merger with the Commercial State Bank, which was then owned by Frank Pielsticker and Frank Whitlake.

Following Sam J. O’Connor were H.D. Bancroft and his wife, Irene.  Bancroft had worked in the Bank before purchasing it.  In 1963, F.W. Jackman, C. Jackman, and D. Sexson acquired the Bank from the Bancrofts.  O.W. Bryant was bank manager for the Jackmans’ until 1970 when Dwaine C. Hendricks became bank manager, where he held employment until 1985.  Jackmans retained their interest until it was sold in 1977 to Gerald P. Wrage and Harvey E. Brott.

In June 1986 Dr. Warren Orr and Harvey E. Brott took ownership.  In 1987, ownership of the Bank changed to Dr. Warren Orr, Harvey E. Brott and Randall J. Hendricks.  Harvey E. Brott retired in 1997 with Hendricks and Orr retaining ownership.  Dr. Orr passed away in 2002 transferring his shares to his wife, Alice, of North Platte.

Commercial State Bank merged with the Bank of Keystone in 2005, combining forces to better serve the financial needs of the community.  Randy Hendricks of Elsie became a minority stockholder of Keystone Investment and Chief Executive Officer of the Bank of Keystone upon the merger.  Commercial State Bank added approximately $12 million in assets to the Bank of Keystone.  At present the Bank of Keystone has total assets of over $60 million, total equity of over $6 million and employs a total of twelve individuals. The bank’s Board of Directors currently consists of: Alice Orr (Shareholder), Randy Hendricks (Chairman of the Board/Bank President), Korey Schow (Chief Executive Officer/Board Secretary), Teresa Laflan (Bank Senior Vice President), Steve Clarke (outside director) and Bryan Sestak (outside director).  Other bank officers include: Stephen Klein (Vice President), Jane Potts (Branch Senior Vice President, Elsie) and Jason Wray (Branch Vice President, Elsie). Other employees include: Pam Hand, Pat Vapenik, Amy Johnson, Molly Sample, Karen Hanna and Linda Anderson.

Celebrating its 105^th birthday in 2014, the Bank of Keystone remains a locally owned bank dedicated to the success of the Sandhills and Western Nebraska.  From a lending standpoint the bank remains a dependable source of credit for the farmer and rancher, including operating lines of credit as well as intermediate and long-term financing for breeding livestock, machinery and equipment, and real estate.  The bank is not solely an ag lender, however, as it serves small business and consumers.  If your need is for long-term, fixed rate financing for ag land, the bank is an approved Farmer Mac seller.  On the deposit side the bank offers checking, savings, certificates of deposit, individual retirement accounts and health savings accounts.  The bank also offers modern financial services tools such as Internet banking and Visa debit cards.

While technology is a must in the financial services world, the Bank of Keystone remains grounded in what made it a success over 100 years: service to customers and attention to their needs.  We are active participants in the communities we serve and care deeply about the success of those who live and work in those communities.  We invite you to stop by or call any of our branches and find out more about what we can offer.