State Bank of Southern Utah
|Industry||Banking, Financial services|
|Headquarters||Cedar City, Utah, United States|
Number of locations
|12 branches (2016)|
|Utah, Arizona, Nevada|
|Eric Schmutz (President & CEO)|
|Products||Consumer banking, credit cards, auto lender, financial services, foreign currency exchange, investment banking, mortgage loans|
Number of employees
State Bank of Southern Utah is a community bank in southwestern Utah. Its corporate headquarters are located in Cedar City. It was established in 1957 and has 12 branches. The president is Eric Schmutz.
In 2017, the bank has over 200 employees in twelve locations with over $950 million in assets. Most of its lending is for land purchases and small-business loans. The vast majority of its mortgages are sold on to the Federal Housing Administration or Fannie Mae.
In 1954, as a result of a rift between its major stockholders, stock in the Bank of Southern Utah, then the only bank in town, was sold to First Security Corporation, a regional banking firm headquartered in Salt Lake City. On November 21, 1956, prominent community leaders met to discuss the need for a bank headquartered in Cedar City. By December 1956 eleven directors of the proposed new bank were selected by secret ballot: Stanley Bradshaw, Dr. L.V. Broadbent, Warren H. Bulloch, Clarence E. Miller, William R. Thorley, Elwood J. Corry, Lehi M Jones, Loren A. Whetten, Alex B. Williams, Maeser Dalley, and Arthur Joseph.
Each director provided $100 in personal funds to cover initial organization costs, and committed to subscribe for 500 shares of stock. As soon as the Bank Commissioner of the State of Utah approved the application on February 25, 1957, the Articles of Incorporation were filed with the Secretary of State and an issue of common stock was made available to the general public with a limit of 500 shares per person. The offering was quickly oversubscribed by 2,330 shares. Directors relinquished some of their stock purchase rights so that every interested subscriber could buy shares.
At the first official meeting of stockholders it was announced that November 18, 1957, was the target opening date, with or without FDIC insurance. The grand opening date was later changed to November 25, 1957, with overwhelming support from the community. One month later a total of $901,332.10 had been deposited.
The FDIC was not willing to approve the bank's application in 1959 until the bank's capital had been increased by $50,000 before the end of the year. That goal was met, the bank was insured, and by January 9, 1961, the first cash dividends were paid to investors, salaries were increased, and employees were provided with a retirement plan.
State Bank of Southern Utah employed five people when it opened. Robert B. White, a native of Beaver, Utah, who was employed by a bank in northeast Colorado, was hired as the bank's first cashier. He was paid a yearly salary of $6,600 and was authorized to hire an assistant. Eldon W. Schmutz, a previous employee of First Security Bank, was hired for that job and paid $4,800 plus medical benefits. Tellers were paid $1 per hour.
In 2017, the bank has over 195 employees in thirteen locations with over $950 million in assets. The first year's payroll of $20,000 has grown to a payroll in the millions. State Bank of Southern Utah is Member FDIC and Equal Housing Lender.
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