From the beginning, Ballard Savings & Loan’s reputation began to grow as its business philosophy was exactly right for the thrifty, hard-working residents of greater Seattle. During the Great Depression, many financial institutions lost everything, including depositors’ funds due to the absence of insurance protection. The little Ballard thrift survived those hard times and became increasingly popular. In June 1931, Ballard Savings notified all of its borrowers that it would not press for repossession of any home as long as the property was kept in good repair and the taxes and assessment paid, and would collect interest only – a home savings measure to many in those cash-short years.
In 1933, Franklin D. Roosevelt was elected president by an overwhelming margin and set about a major wave of New Deal reforms. Meanwhile, Ballard Savings and Loan converted to a federal charter and became a member of the Federal Home Loan Bank System. This change brought about another benefit to the depositors—federal deposit insurance coverage through the FSLIC (later merged with the FDIC).
Check our blog tomorrow for more of the story!