The story of the Lincoln Building is a fascinating journey through the evolution of financial institutions and the changing landscape of American banking. It begins in the midst of the Great Depression, a period of economic turmoil and uncertainty, when the Federal Home Loan Bank Act of 1932 introduced a novel concept: federal underwriting and direct loans to small banks, known as savings and loan associations or thrifts. These thrifts, often rooted in the community, offered a range of services, primarily passbook savings, home loans, and a few other basic financial products.
One such thrift, the National Saving and Loan Association, was founded in Spokane by prominent business figures, including A.W. Lindsay, around 1920. Lindsay's sons, Roderick and Donald, took over the business after their father's death in 1933, and they established the First Federal Savings and Loan Association in 1934. This new institution quickly gained traction, securing mortgages on 20 homes within the first three months of its operation, demonstrating the trust and confidence that the community had in this new model of banking.
In 1950, the Lindsay brothers merged with another thrift, and the combined entity was renamed Lincoln First Federal. This name change was strategic, as Roderick Lindsay explained, aiming to convey the bank's commitment to warm, friendly service and to distinguish itself from other organizations with similar names. The Lincoln name, inspired by the 16th president, was prominently featured on letterhead, advertising materials, and even promotional items like piggy banks and calendars, symbolizing the bank's values and the trust it sought to build with its customers.
The Lincoln Building itself underwent a significant transformation. Initially located at 120 N. Wall St., the company later constructed an eight-story tower at Riverside Avenue and Lincoln Street, which opened in 1964. This move symbolized the bank's growth and its commitment to serving the community's evolving financial needs.
In 1965, Donald Lindsay, then the CEO, commissioned a remarkable piece of art: a giant portrait of Abraham Lincoln by the renowned illustrator Norman Rockwell. This portrait, which hung in the bank's lobby for 20 years, became an iconic symbol of the bank's history and values, reflecting the importance of the Lincoln name and the legacy it represented.
However, the story of Lincoln Mutual Savings, as the bank was renamed in 1976, is a cautionary tale. The era of high interest rates in the 1980s put significant pressure on thrifts, and Lincoln Mutual Savings was not immune to the challenges. Like many other S&L associations, it did not survive the economic turmoil and was eventually taken over by Washington Mutual, the largest savings and loan in the U.S. at the time.
The Lindsay brothers, Roderick and Donald, passed away in 1991 and 2000, respectively, marking the end of an era. Washington Mutual, too, met its fate in 2008, with its assets transferred to JPMorgan Chase. This sequence of events highlights the fragility of even the most well-established financial institutions and the impact of economic shifts on the banking industry.
The Lincoln Building's story is a testament to the power of community-based banking and the importance of trust in financial institutions. It also serves as a reminder of the cyclical nature of the economy and the need for adaptability in the face of economic challenges. As the banking industry continues to evolve, the lessons from this historical narrative remain relevant, offering valuable insights into the past and a guide for the future.
