Buckeye Federal Heritage
A Community Institution with 96 Years of Service (1895-1990)
— William S. Guthrie, 1969
This is the remarkable story of Buckeye Federal Savings and Loan Association, as presented to The Newcomen Society in North America on December 10, 1969. From humble beginnings in 1895 to becoming a cornerstone of the Columbus, Ohio community, Buckeye Federal's history reflects the growth and resilience of American financial institutions through prosperity, depression, and transformation.
The Founding Era (1895-1918)
Buckeye State Building and Loan Company Founded
Nine founding directors, including John J. Schwartz, L. L. Rankin, and L. P. McCullough, established the company in Mr. Rankin's law office on the second floor of the Wesley Block Building on High Street near Gay Street. The organization started with 511 shares of stock at $100 each, though they had planned for 10,000 shares.
Columbus in 1895
The city was experiencing the Railroad Prosperity Period, though recent economic challenges in 1893-1894 made it seemingly inauspicious times for starting a new financial institution. High Street had just been paved, horse car service was extended, and the first waterworks system was installed. Twenty-three establishments were manufacturing 20,000 horse-drawn vehicles annually, and The Lazarus store was already 44 years old.
Early Operations
The directors established a 50%-of-appraisal limit on real estate mortgage loans and were conservative with large loans, noting "The committee does not favor loans of more than $1,000." Most early loans were under $500 each, totaling $5,000 to $7,000 per month. The portfolio included both town and farm property, with farm loans extending to properties in what would later become Upper Arlington.
Presidential Leadership Through the Decades
One of the founding directors who served as the institution's first president for ten years, establishing the initial operational framework.
The attorney-founder who truly established Buckeye's foundation for growth. Under his leadership, the company moved from Mr. Rankin's law office to its first dedicated building at 22 West Gay Street in 1899, then to the larger, fireproof Rankin Building in 1911. He positioned Buckeye as the largest building and loan in Ohio and an organizational leader nationally. Assets grew from $5 million in 1912 to almost $16 million by 1918.
A founding director and close associate of L. L. Rankin, McCullough led the institution through its greatest expansion. Under his presidency, assets rose from $19 million in 1920 to $48 million by 1929. He oversaw construction of the impressive 15-story Buckeye Building at 36 East Gay Street in 1927, which featured innovative underground parking and was fully occupied within a month of completion.
Buckeye's longest-serving staff member, who started in 1912 and guided the institution through the Great Depression, World War II, and post-war recovery. His leadership during the 1913 flood demonstrated his commitment to the community—personally helping flood victims repair their homes and minimizing loan losses. Under his guidance, assets recovered from Depression lows to $53 million by 1955, and he established the branch system with locations at Great Western and Great Eastern Shopping Centers.
Depression Era Leadership
During the Great Depression, C. C. Guthrie's conservative lending practices and strong reserves enabled Buckeye to weather the crisis successfully. While maintaining its state charter, the institution joined the Federal Home Loan Bank System in 1932 and later federalized in 1949, converting to a mutual association with federal insurance.
Son of C. C. Guthrie, who left a 25-year career at The Ohio State University (including roles as Junior Dean and Executive Dean for Student Relations) to lead Buckeye into its modern era. Under his leadership, assets grew from $78 million in 1960 to $191 million in 1969, making Buckeye the 124th largest savings and loan among 6,000 institutions nationwide.
Major Challenges and Triumphs
The 1913 Flood
West Side Flood Crisis
The devastating flood overwhelmed Columbus's West Side, causing over $5.5 million in property damage and flooding 4,000 houses. Buckeye had 423 loans worth $117,000 in the affected area. C. C. Guthrie personally took old clothes and a wheelbarrow to help flood victims clean and repair their homes, even doing carpentry work to convert damaged two-story houses into decent one-story homes. This personal intervention reduced Buckeye's total losses to just $11,353—a remarkable achievement that impressed President Rankin and led to Guthrie's appointment to the Board of Directors.
World War I Impact
The war came home to Columbus with Franklin County's quota of 1,188 men for the National Army. Buckeye displayed a service flag for enlisted personnel and actively supported the war effort through Liberty Bond purchases and a contribution of 5% of 1917 earnings to the War Chest. The institution also faced the tragedy of losing President L. L. Rankin to the flu epidemic on December 27, 1918.
The Great Depression
Surviving the Crash
When the stock market crashed on October 29, 1929, and billions in stock values disappeared, Buckeye was prepared. The institution's strong reserve position and conservative lending practices enabled it to weather the Depression successfully. While many financial institutions failed, Buckeye maintained its operations and emerged stronger, later joining the Federal Home Loan Bank System in 1932.
World War II and Recovery
During World War II, Buckeye purchased and sold over $10 million worth of war bonds, with officers leading the Building and Loan Division in several Columbus drives. The post-war housing shortage created enormous demand, leading to thousands of FHA and GI loans and driving asset growth from $26 million in 1945 to $53 million in 1955.
Branch Expansion and Modernization
The 1960s Growth Strategy
Under William S. Guthrie's leadership, Buckeye pursued an aggressive but thoughtful expansion strategy:
First Branch System
Established storefront branches at Great Western Shopping Center (1956) and Great Eastern Shopping Center (1957), marking Buckeye's entry into suburban markets.
Urban and Suburban Expansion
Opened two new offices: Thurber Village (Buckeye's first inner-city office) and the Long Street drive-in facility, demonstrating commitment to both urban and suburban communities.
Major Expansion Year
Five new offices opened, including the merger with Home Savings Company of Westerville (adding Gahanna office), new Eastern Office at Livingston and Hamilton Road, rebuilt Great Western office, permanent North Arlington building, and Southern Office.
Mt. Vernon Avenue Office
Opened to serve the black community, reflecting Buckeye's commitment to inclusive banking. Within two years, this office had over $600,000 in savings deposits, $1 million in loans, and 1,300 customers. The office also trained black staff and provided community services including check cashing and food stamp distribution to 1,800 neighbors monthly.
Community Impact and Social Responsibility
Urban Renewal and Social Programs
Buckeye's commitment extended beyond traditional banking to address social challenges of the 1960s. The institution invested almost $5 million in inner-city improvement projects and better housing for low-income families over 2.5 years, demonstrating that profitable business and social responsibility could coexist.
Innovative Community Programs
- Project Renew: Purchased a condemned house on Seventeenth Street for $2,000, rehabilitated it, and sold it to a neighborhood family on FHA terms
- Beneficial Acceptance Corporation: Committed funds to this black-owned local mortgage company
- TownHomes Partnership: Cooperative project with National Gypsum Company for house rehabilitation and resale
- Greater Columbus Action Housing Corporation: Joined effort to help low and middle-income families obtain homes
- East High School Program: Continuous business training and job experience program
International Partnership
Santiago, Chile Connection
Buckeye pioneered an international partnership with Libertad Asociacion de Ahorro y Prestamo in Santiago, Chile. This innovative program financed 282 housing units for low-income families under a U.S. AID guarantee program. Buckeye's investment of just 0.5% of its resources created a people-to-people business relationship with two-way benefits, inspiring 40 other savings and loans to follow their lead.
International Recognition and Legacy
Global Leadership
Buckeye's influence extended far beyond Columbus. Both L. L. Rankin and L. P. McCullough served as presidents of International Congresses, with Rankin being President of the Second International Congress in 1915 and First Vice-President at the inaugural meeting in 1914. McCullough presided at the International Congress in Philadelphia in 1931.
— E. H. Tytherleigh, President, International Union of Building Societies and Savings Associations
The Newcomen Society Recognition
The presentation of this history to The Newcomen Society in North America on December 10, 1969, recognized Buckeye Federal as an institution worthy of historical preservation and study. The Society's mission to share "strengthened inspiration to continue the struggle towards a nobler Civilization" through the stories of business leaders made Buckeye's 75-year journey a fitting subject for their prestigious platform.
Enduring Principles
Throughout its 75-year history, Buckeye Federal maintained consistent principles that enabled its success:
- Conservative Lending: Maintaining prudent loan-to-value ratios and careful underwriting
- Community Focus: Serving both urban and suburban markets with equal commitment
- Innovation: Embracing new technologies and service models while maintaining traditional values
- Leadership Development: Cultivating talent and surrounding leaders with capable people
- Social Responsibility: Recognizing that business success and community welfare are interconnected
Looking Forward from 1969
As William S. Guthrie concluded his address to the Newcomen Society, he emphasized that while Buckeye was proud of its 75-year history, the institution's "hopes and highest pride are in the opportunities which are ahead." The theme for their anniversary promotion was not the past, but "75 years and looking ahead."
— L. L. Rankin, speaking in London, 1914
This forward-looking perspective, established by founder L. L. Rankin even during World War I, remained the guiding philosophy that carried Buckeye Federal through three-quarters of a century of service to the Columbus community and beyond.