Two state associations announce scholarship winners

Northwestern Financial Review, Jul 1, 2001

While most students were gearing up for graduation and looking forward to a summer free of schoolwork, some students were busy attending awards ceremonies and receiving college scholarships thanks to two state banker associations. The CBAI Foundation for Community Banking, Springfield, Ill., selected its 2001 Annual Scholarship Program winners in May. The Wisconsin Bankers Association (WBA) Retail Banking section also announced the winners of four scholarships.

The Community Bankers Association of Illinois has sponsored its scholarship program for the past 15 years. In cooperation with high school guidance counselors, students across Illinois were invited by their local community banks to participate in the scholarship program. The program awarded $16,000 in scholarships to 14 high school seniors who entered an essay-writing contest. This year, 65 CBAI member banks representing 155 students participated in the contest. The topic of the essay was "the future of community banking in the 21st century." A common theme this year was technology.

"Students wrote that community banks need to try to find a way to provide all the technological benefits that exist today without sacrificing the hands-on personal service," said Tom Neibrugge, president and CEO of The First National Bank, Dieterich, Ill. Neibrugge was the chairman of the CBAI communications committee, which read the scholarship essays. "They realize that customer service is what sets community banks apart, but the challenge is to make sure that our customers have access to the same types of products that the big banks can provide."

Students were encouraged to visit their community bank, interview their local banker and get information at the local level for their essays. Once students entered their essays through their local bank, the essays were submitted anonymously to CBAI, where they were read by committee members. One first-place winner was chosen to receive a four-year $4,000 scholarship and 13 additional $1,000 scholarships were awarded to one student from each of CBAI's 13 districts. The firstplace winner, Jennifer Osterhage, a student at Gibault Catholic High School, Waterloo, Ill., also received a $500 award.

"I think that what was encouraging was the students seemed to recognize what community banking is," said Niebrugge. "This was probably the first time that these students had to think about the issue of banking. In the future, when they have to make financial decisions, they will be aware of community banks."

The scholarship is funded by interest raised on foundation funds, which was chartered in August of 1996 in order to endow the scholarships.

"The scholarship program has become very successful," said Jim Shafer, president and CEO of The First National Bank of Tremont, Ill. Shafer has also served as president of the foundation since it was established. "This year, I happened to have had a regional winner. This is my first winner and I have been involved with the scholarship program since its inception. I was tickled."

Shafer presented the award at a CBAI group meeting. Other winners were honored by their community banks at high school award ceremonies or bank-- sponsored events.

While the program is not open to employees, or relatives of employees, this year the foundation has established another fouryear $4,000 scholarship specifically for the children and relatives of community bankers. CBAI member banks are allowed to enter one students name for every $1,000 contributed to the foundation.

The WBA has a similar program in place for employees, relatives and children of community bankers. Since 1990, the WBA awards annual scholarships based on the size of the retail banking section; scholarships are funded by membership fees paid by individual banks to become a member. This year, the association awarded three $1,000 scholarships and one $500 scholarship. More than 150 applicants entered this year's competition. Entrants were asked to fill out an application and write a short essay outlining their goals. Winners were chosen based on academic achievement, banking career goals or financial need. Students were honored at individual high school award ceremonies.