Estate of James Waldo Hendrickson - Page 13




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          tellers and bookkeepers on the one hand, and loan officers on the            
          other, resulting in little mingling between the two groups.                  
               2.   Facilities                                                         
               The operations of Peoples were housed in a two-story                    
          building built in 1964; Peoples had no branches.  Peoples'                   
          facilities and equipment were in average condition and considered            
          adequate for its operations.                                                 
               When Mark became president, Peoples was for the most part               
          operating with 1960's technology.  Most operations in the bank               
          were done manually, and there were no information systems to keep            
          track of customers' credit, payments, or deposits.  Peoples did              
          not have any ATM machines.  Peoples had desktop PC's for use by              
          loan officers and customer service representatives, but only to              
          print out loan applications, signature cards, and other                      
          operational documents.  Under Mark's direction, however, Peoples             
          had entered into a contract with Old National to provide                     
          electronic data processing (EDP) applications for deposits,                  
          loans, and accounting.  Although many of the directors were                  
          hesitant about learning the new technology, they reluctantly                 
          cooperated.  During 1991 and 1992, Peoples converted its system              
          of accounting for its loan portfolio from a manual system to a               
          computerized system and began having its loans serviced by Old               
          National; however, on the valuation date, the complete conversion            
          of Peoples to the Old National EDP applications had not been                 
          completed.                                                                   




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