PART ONE IN A FIVE-PART SERIES

Security National Bank arose out of the economic boom of the 1880s, which was very beneficial to Sioux City, Iowa.  Considered the "Gateway to the West," the city was thriving as an important railroad hub. From 1880 to 1890, the population of Sioux City grew from 7,500 to 50,000.

Earlier in 1874, Frank H. Peavey came to Sioux City from Chicago and his visionary efforts enriched the young, growing community. For example, in 1874 he built a grain warehouse and ran a successful business dealing in surplus grain. He also established the Peavey Grand Opera House, located approximately where the Sioux City Convention Center stands today.

Peavey’s most enduring legacy to the city, however, was the founding of Security National Bank. The bank received its first charter on February 16, 1884. Peavey was joined in this effort by Miles C. Davis, who was in the milling business; William Gordon, an attorney who served as the bank’s first accountant; James Spalding, a lumber dealer; Nicholas Tiedeman, a grocer; and W. P. Manley, Craig Goss, E. Richardson, and Allen Hoskins, all in real estate. The bank opened with assets totaling $100,000.

The men purchased a building and lot at 607 4th Street, on the northwest corner of Fourth and Pierce Streets, for $6,000. They spent another $1,900 on building repairs and constructing a vault. Peavey, who was described as "a man who loved humility and bore no malice in his heart," served as Security National Bank’s first President. His character set the tone for the organization, and his desire to contribute to the community became ingrained in the bank’s culture. After only a year or so, on April 14, 1885, the entrepreneurial Peavey resigned as President, much to the regret of the board. He moved to Minneapolis, Minnesota, to give more attention to his grain business, but he left behind a strong foundation that continued to prosper.

Steady Growth Continues
Despite Flood, Economic Panic

James Spaulding served as the second president of Security National Bank from 1886 to 1891. By 1887, the bank had outgrown its first building; a new one was built at Fourth and Pierce.  Just two years later, the Board voted to purchase a lot at Fourth and Nebraska Streets, a decision that Spalding did not approve. He soon tendered his resignation.The bank’s cashier, W. P. Manley, was elected as Security’s third president, a position he held until 1924, despite some tough times during the first few years of his tenure. The Floyd River Flood of 1892 devastated the Leeds neighborhood, the lumber yards, the railroad lines, and the stockyards, and left 3,000 people homeless.

Even more damaging than the flood, however, was the Panic of 1893, which brought the city’s growth to a complete halt.  Sadly, this economic depression had a long-term effect on the city: by 1900, Sioux City’s population had declined to 33,000.  Some Sioux City banks closed, but Security National Bank remained strong, moving to its new location at Fourth and Nebraska Streets in 1893. 

Four more presidents were to guide the growing bank through the early decades of the twentieth century: A.B. Darling, from 1924 to 1928; Leonard R. Manley, (son of W.P. Manley), from 1928 to 1933; Hubert H. Everist, from 1933 to 1935; and Edward C. Palmer, from 1935 to 1936. Palmer had joined the board in 1933 and remained on the board after his short term as President ended. Although these men led many important developments in the organization, it was a Vice President who would play the key role in securing the bank’s future during the Great Depression.

NEXT ISSUE:

PART TWO: The Gossett Years – Surviving and Thriving