The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The Financial Magazine of the Mississippi Valley & Southwest JULY, 1976 CHRISTMAS/MARKETING ISSUE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ¿ S i Ed. i ♦ 3 6 -V 5 . J / • t 6 > a & s . -y- > Market Area Profile 1 • 3 * ) H O Jrt Unté. Êtalffe^CorpeTihon .2 . 6 1 > I î s * o J LIBERTY PRESENTS RAUL NADLER ON NEW ELECTRONIC TECHNIQUES AND HARDWARE. Paul Nadler says: Liberty says: Banking is in an evolution ary period. We are close to the time when people in Oklahoma will come to the checkout counter of a supermarket, put a card in the machine; and automat ically move the money to pay for the purchase. And, if th e y ’re overdraw n, a light will light up saying “ put back the bacon.” Much of this is a reality, with point-of-sale terminals and automatic teller machines. Yet, bankers wonder, “We spent twenty years training liquor and grocery stores to cash the public’s checks for them, and then we spend $30,000 to buy a machine that puts the burden right back on us.” What path should a community bank take in the complex and expensive environ m ent of new banking te ch n iq u e s th a t electronic transfer of money is bringing? Look at it this way. You may not yet be ready to invest in an expensive system with unproven reliability for many of the same reasons thatyour customers may not be ready to “ put back the bacon” because a machine tells them to. ChecOKard Banking Center Number One is now providing ON-LINE electronic bank ing services for Liberty ChecOKard hold ers. And more bankers are learning about the ChecOKard system everyday. These progressive bankers are learning they can take advantage of an existing educated customer card base. Plus, they can offer their customers the extra con venience of over sixty guaranteed check cashing locations in the greater Oklahoma City area alone. What are your needs in the sophisticated world of electronic bank ing services? Should you begin w ith verification and guarantee services only? Or, should you consider a full service POS/ATM operation? It’s all available... tie m LIBERTY THE BANK OF MID-AMERICA Liberty National Bank and Trust Company/P. O. Box 25848/Oklahoma City, Oklahoma 73125/405/231-6164/Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Louisiana bankers call: Alabama, Arkansas, Mississippi, Oklahoma and East Texas bankers call: Bankers in all other parts of the country call collect: At First NBC —New Orleans, our Correspondent Banking Department is service-intensive and we’re always available to help you find a creative solution to any correspondent banking problem. That’s why we’ve recently improved our incoming WATS facilities —so reaching us is easier than ever. Try one of our brand-new numbers. We’re anxious to hear from you. FUST NATNMl MJK OFCOMMERCI Correspondent Banking 210 Baronne Street / New Orléans, Louisiana 70112 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Convention Calendar July Volume 1 2 , No. 8 July, 1976 FEATURES 35 PREMIUMS KEEP MONEY FLOW ING INTO BANK VAULTS Variety of items includes plants, CB radios 37 HISTORIC FORT MODEL GIVEN TO CITY Bicentennial project by Detroit Bank 42 CARD PROGRAM POPULAR CONSUMER SERVICE Favorite person’ package plan promoted 44 WEST COAST BANK HOLDS SWEEPSTAKES For the bank that has tried everything! Jim Fabian August SPECIAL CHRISTMAS SECTION 52 IDEAS TO BOOST CHRISTMAS CLUBS 54 TRAINS ARE BIG AT CHRISTMAS July 18-21: ABA I&PD Risk Management in Banking Seminar, Boulder, University of Colorado. July 19-23: ABA National School of Bank Card Management, Evanston, 111., North western University. July 20-22: ABA Governmental Relations Council Meeting, Washington, D. C., Wash ington Hilton. July 25-31: ABA Operations/Automation Divi sion Business of Banking School, Durham, N. H., New England Center. July 25-Aug. 6: Southwestern Graduate School of Banking, Dallas, Southern Meth odist University. 56 OZARK CHRISTMAS IS SMASH HIT 62 H O W BANKS CELEBRATE CHRISTMAS Aug. 1-13: Consumer Bankers Association, Graduate School of Consumer Banking, Charlottesville, Va. Aug. 8-13: ABA National School of Real Estate Finance, Columbus, O., Ohio State University. Aug. 14-20: Bank Marketing Association, Graduate Course in Bank Marketing Man agement, Madison, Wis., University of Wisconsin. Aug. 15-28: Central States Conference, Grad uate School of Banking, Madison, Wis., University of Wisconsin. Aug. 16-27: ABA National Trust School/ National Graduate Trust School, Evanston, 111., Northwestern University. September CONVENTION REPORTS 74 NEW MEXICO 78 IN D IA N A DEPARTMENTS 6 THE BANKING SCENE 12 SELLING/MARKETING 14 CO M M U N ITY INVOLVEMENT 16 20 22 22 BANKING W ORLD AGRICULTURAL NEWS CORPORATE NEWS NEW CUSTOMER SERVICES 24 26 28 30 INSTALLMENT LENDING NEW PRODUCTS EFTS NEWS NEWS ROUNDUP STATE NEWS 84 ALABAM A 84 ARKANSAS 85 ILLINOIS 86 IN D IA N A 88 KANSAS 88 KENTUCKY 88 LO UISIAN A 90 MISSISSIPPI 90 MISSOURI 92 TEXAS 91 NEW MEXICO 91 O K L A H O M A 92 TENNESSEE October (ll!llll!l!lllll!ll!llllllllll!llll![|||||IUI!fll!llll!llinill!imillll^^ Editors Ralph B. Cox Editor & Publisher Lawrence W. Colbert Assistant to the Publisher Rosemary McKelvey Managing Editor Jim Fabian Associate Editor Daniel H. Clark Editorial Assistant Advertising Offices St. Louis, Mo., 408 Olive, 63102, Tel. 314/ 421-5445; Ralph B. Cox, Publisher; Mar garet Holz, Advertising Production Mgr. Milwaukee, Wis., 161 W. Wisconsin Ave., 53203, Tel. 414/276-3432; Torben Soren son, Advertising Representative. 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sept. 4-7 : Assembly for Bank Directors, Colo rado Springs, Colo., The Broadmoor. Sept. 12-14: Kentucky Bankers Association Annual Convention, Louisville, Galt House. Sept. 12-14: Bank Marketing Association, EFTS Conference, Toronto, Can., Hotel To ronto. Sept. 12-15: ABA Bank Card Annual Con vention, San Francisco, Hyatt Embarcadero. Sept. 12-17: Robert Morris Associates, Loan Management Seminar, Bloomington, Ind., Indiana University. Sept. 12-17: Kansas, Missouri & Nebraska Bankers Associations, School of Basic Bank ing, Lincoln, Neb., University of Nebraska. Sept. 15-17 : ABA Southern Regional Opera tions/Automation Workshop, San Antonio, Tex., Hilton Palacio del Rio. Sept. 19-21: Bank Marketing Association. Pub lic Relations Conference, Chicago, Chicago Marriott Hotel. Sept. 19-22: ABA National Personnel Con ference, San Francisco. Fairmont Hotel. Sept. 20-21: Mortgage Bankers Association, President’s Conference, New Orleans, Hyatt Regency Hotel. Sept. 26-29: National Association of Bank Women. Inc., Annual Convention, New York Waldorf Astoria. Sept. 27-28: Robert Morris Associates, Lend ing to Banks & Bank Holding Companies Workshop, Chicago, Hyatt Regency O’Hare. MID-CONTINENT BANKER is published 13 times annually (two issues in May) by Commerce Publishing Co. at 1201-05 Bluff, Fulton, Mo. 65251. Editorial, execu tive and business offices, 408 Olive, St. Louis, Mo. 63102. Printed by The Ovid Bell Press, Inc., Fulton, Mo. Second-class postage paid at Fulton, Mo. Subscription rates: Three years $21; two years $16; one year $10. Single copies, $1.50 each. Commerce Publications: American Agent & Broker, Club Management, Decor, Life Insurance Selling, Mid-Continent Banker, Mid-Western Banker, The Bank Board Letter and Program. Donald H. Clark, chairman; Wesley H. Clark, president; Johnson Poor, executive vice president and secretary; Ralph B. Cox, first vice president and treasurer; Bernard A. Beggan. William M. Humberg, Allan Kent, James T. Poor and Don J. Robertson, vice presidents; Lawrence W. Colbert, assistant vice president. Oct. 2-6: ABA Annual Convention, Washing ton. D. C. Oct. 6-8: National Association of Real Estate Investment Trusts, Annual Conference, Chi cago, Hyatt Regency, Chicago. Oct. 13-17: Consumer Bankers Association, Annual Convention, White Sulphur Springs. W. Va.. The Greenbrier. Oct. 17-20: Robert Morris Associates, Annual Fall Conference. Chicago, Hyatt Regency. Oct. 17-20: Bank Administration Institute, Annual Convention, Philadelphia. Oct. 24-27 : Bank Marketing Association, An nual Convention, Miami, Fontainebleau Hotel. Oct. 24-29: Kansas, Missouri & Nebraska Bankers Associations, Intermediate School of Banking, Lincoln, Neb., University of Nebraska. Oct. 25-27: Mortgage Bankers Association, Annual Convention, San Francisco, San Francisco Hilton. Oct. 27-29: ABA Midwestern Regional Opera tions/Automation Workshop, St. Louis, Chase Park Plaza. Oct. 31-Nov. 5: Kansas, Missouri & Nebraska Bankers Associations, Advanced School of Banking, Lincoln, Neb., University of Nebraska. MID-CONTINENT BANKER for July, 1976 You’re looking for extra profits Our cash letter an alysis can uncover ’em . It’s surprising how much potential pro fit is buried under slow paper. That’s w hy w e ’ve developed an e ffe ctive action program to help you get things m oving. Our program includes com puterized cash letter analysis ... plus practical m ethods for im proving proof operations and check co lle ction . Start us digging for those p ro fits —call 314-425-2404. We’re with you. MERCRflTILE BACK Central Group, Banking Dept • Mercantile Trust Company N.A • (314) 425-2404 • St. Louis, Mo. • Member F.D.I.C. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Banking Scene By Dr. Lewis E. Davids Hill Professor of Bank Management, University of Missouri, Columbia W h at Future for Bank Purchases? O W MANY of the 14,000 or so banks in the U. S. are for sale? No one knows. Often, a sale of a bank is between insiders and isn’t discussed in public. An advertisement in a recent issue of a nationwide banking publication was headed, “ Banks for Sale: The fol lowing summations represent only a few of the over 100 banks we have for sale all across the United States. Please do not call, no information will be giv en on the phone. If interested, please write, giving full information.” H " The e x tr a e x p e rtis e p ro fessed by the HC in g e n e ra t ing incom e has ten d ed to be co u n te rv ailed b y the higher price th a t HCs could a ffo rd to o ffe r beyo n d w h a t a unitb a n k purchaser n o rm a lly w o u ld h av e considered." A listing of seven banks followed: institutions in Ohio, Wisconsin, Massa chusetts, Illinois, Texas and Alabama. They ranged in size from approximate ly $4 million in assets to one having over $130 million in assets and 13 branches. Obviously, a single advertiser of banks for sale couldn’t have a m onopo ly in this country. In fact, there are a number of agencies that specialize in selling banks in limited geographic areas. The previously mentioned ad vertisement raises questions on the sub ject: Has there been a structural change in the sale of banks from, say, a decade ago? The bank HC movement, in its pres ent form, is less than 10 years old. Be fore that, most bank sales were of a unit type, purchased for unit operation. The advent of the HC has resulted in a number of situations where unit banks suddenly became more attractive 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to purchasers, who believed that by af filiating the unit bank into an HC, the substantial economies of scale and op portunities as well as increased profit ability could be achieved. Looking back, it appears that much of this attitude was based on wishful thinking. The extra expertise professed by the HC in generating income has tended to be countervailed by the higher price that HCs could afford to offer beyond what a unit-bank pur chaser normally would have consid ered. In the early 1960s, the typical unit bank ranged in price from book to something around 20% over book. The premium tended to be associated with those banks’ communities that were likely to have above-average growth. In the intervening 10-15 years, the sale price of the average bank went up to as much as 50% over book value. Financial academicians shudder at the thought of using book value as the measure of price. They feel more com fortable in relating a bank’s price to earnings. In recent years, unit banks have been capitalized at approximately 10% of net earnings, selling at 1,000% of net earnings. One of the difficulties of using book value or net earnings is the considerable difference between the actual market value of the assets in cluded in the book value of a bank. Since the book value is predicated on cost rather than market, in periods of increasing interest rates the book value — in the concept of current market value— should decline if banks use the generally accepted accounting princi ples rather than the accounting con ventions that are unique to banks. I discussed a problem institution with a leading Missouri banker who was anxious to purchase a bank in the problem bank’s locality, for his HC. The bank’s community had a high growth rate but the bank itself was poorly run. Its owners were asking twice book value. The prospective buy er said he would pay twice the real, book value of the bank, but only the stated book value. The transaction never was consummated and that insti tution continues to limp along with little or no earnings. If the institution had sold at twice its real book value or twice its stated book value, it would have been capitalized at a fantastic rate of return, because its earnings were so small. For a number of years, the HC movement has provided the greatest " H isto ry suggests th a t the tre n d (fo r m u ltib a n k HCs) w ill continue to g ro w and be p e rm itte d b y statu te . Concentration o f b a n kin g w ill be lim ite d o n ly m odest ly outlet for sales of unit banks to affili ate with HCs. For the past year or so, it appears that HCs have been trying to digest and assimilate their existing institutions. They have pulled back somewhat from seeking additional member banks, due in part to the drop in securities prices of bank HCs, mak ing it difficult to have the exchange value of the HC stock be attractive enough to the unit banker for affilia tion. Now that overall security prices have been moving up and the econom ic outlook appears favorable, the tap ping of capital markets by all institu tions appears more attractive. In addi tion, the novice figures on book value and price-times-earnings seem to pro vide a fairly clear view of the determi nation of the sale price of a stock. Actually, there are many other fac tors that have a bearing on stock prices. One is that few individual pur chasers of banks actually have the fi- MID-CONTINENT BANKER for July, 1976 Correspond with us. * Reliability in banking since 1883 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By keeping in touch, your bank and the Whitney can successfully work together. Now, as for more than ninety years, the Whitney stands ready to go to work with correspondent banks, small and large, to achieve mutual progress. It’s time for us to get to know each other better. Correspond with us! 7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “The key difference between our Directors’ & Officers’ liability insurance and others is an exclusive combination of features that give banks total coverage!’ Dennis Layne, Chief Operating Officer, D & O Division of MGIC Indemnity Corp., explains how our highly specialized Directors’ and Officers’ liability policy provides comprehensive protection for banks when a lawsuit strikes. “ Each of M G IC ’s special features—in combination with “ standard” features— interacts to provide exclu sive total protection. Very important is waiver of exclusions. I f your board legally indemnifies your officials, exclusions which would otherwise limit cov erage no longer apply. Also, deductible options from $2,500 to $20,000 or more provide higher coverage at very low cost. Other features include protection for retired officers and directors, and an extended coverage option with full original limits of coverage when a policy is cancelled or not renewed. “ Perhaps the most im portant difference between our policy and others is the way our individual limits can pro tect you in case of lawsuits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ As an example, let’s take a million-dollar coverage pol icy. Most provide just a simple total annual limit of one million dollars. Not ours. M GIC lets you choose a million dollars of coverage for each individual director or officer, no matter how many you have. This means many millions of extra cov erage in case of multiple lawsuits in a given year. “ Should a lawsuit strike, we support you all the w ay—the way you want. “ Some D & 0 insurers take a very strong stand and take over the case, period. Some avoid any involvement. We like to act as a helpful partner. For example, when you tell us about a lawsuit, you have the right—with our approval—to select counsel. Then we’ll work with you on any significant steps that are taken. What we don’t like to do is take control, because we believe no out sider should determine the proper course for you in such a serious situation. After all, it isn’t only money that’s involved, the reputations of the individuals and the institutions also are at stake. “ Ours is the one policy specifically designed for banks. “ When you buy from us, you get insurance specially tai lored to your needs, right down to the application form. As a subsidiary of M GIC Investment Corpo ration (a respected member of the financial community), we are thoroughly familial’ with bank operations and needs. Our underwriting, we think, is of higher quality due to this expertise. So, when you join the more than 1,400 financial institutions insured by M GIC, you’re keeping good company. “ For a point-by-point comparison between MGIC and any other D & O policy, w e’ll be happy to talk with you, or your attorney. “ You may feel more com fortable having your attor ney contact us because he’s the expert you head for fast when threatened with a law suit. And he’s probably best qualified to help you make the right decisions on cover age. He’s also probably best able to show you what we mean by “ total protection” and why, dollar-for-dollar, you get a better value with M GIC Directors’ and Offi cers’ liability insurance. So for the full story, I suggest either you or your attorney call me or our Marketing Director, Art Barnard, toll-free, at 800-558-9900. Or write today.” MGIC Total D & O liability protection. And we mean total. MGIC Indemnity Corporation A Subsidiary o f M G IC Investm ent Corp. M G IC Plaza, M ilw a u ke e, W l 53201 nancial wherewithal— cash— to swing the transaction. Therefore, they must turn to some other financial institution to help finance the purchase. A decade ago, many correspondent banks were willing to give preferential loan rates for bank-stock acquisitions, predicated on the fact that the new purchaser would maintain attractive compensat ing balances with the financing institu tion from the purchased bank. In addi tion, the purchaser also could put up the purchased bank’s stock as collat eral. The spread between the cost of carrying the collateral and the earnings of the controlled stock frequently were such that the transaction was quite viable. With loan interest rates increasing at a faster rate than bank earnings— because banks were forced to pay high er amounts for deposits— such financ ing arrangements no longer were at tractive. In a number of situations, x'egulatory agencies issued strongly worded “letters" pointing out the unde sirability of a city correspondent bank financing bank purchases with prefer ential rates tied to compensating bal ances. Several lawsuits in the last five years have convinced many bankers that this is an area that should be avoided. Perhaps the most important develop ment has been the regulatory agencies’ perception of capital adequacy. Be cause of that perception, bank HCs were strapped and highly leveraged. The HCs increasingly found that the Fed would turn down applications for bank acquisitions until the HC im proved its capital position. The Fed is sympathetic to the sale of smaller institutions to individuals having requisite skills and capital, but those with hard-earned skills and long years in banking find they haven’t been able to acquire enough capital to meet the standards of the equity needed to gain control. For a while, it appeared that the Fed had assumed the posture taken by the Securities & Exchange Commission (S E C ), which held that, in making a tender offer for stock of a bank, all in dividual shareholders were to be given an equal opportunity to subscribe to the tender offer on a pro rata basis. This idea had been held by the SEC for a long time and was shot down by judicial decisions, which accepted the real-world fact that a higher price could be paid for control and that higher prices needn’t be extended to all the minority shareholders of a bank. This development restored, if it hadn’t always existed, the two-tier price struc ture for bank stocks: one price for con 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis trol and one for noncontrol, at least for modest sized and nonpublic banks. Preference for the concept of equal tender offers to all shareholders on a pro rata basis still is held to strongly by influential elements in regulatory agencies. Working against the aforementioned factor of control has been the implica tion of using the one-bank HC or the multibank HC approach. Tax laws vir tually preclude the use of an HC ap proach unless 80% or more of the bank’s stock is acquired, so obtaining defacto control by an amount less than that ap pears to ameliorate the situation favor ing unit acquisition. There still are a number o f unit bankers who refuse to consider the sale of their banks to a multibank HC, pre ferring a sale to an individual or to a one-bank HC. This reduces the alterna tives for a broader selling market and probably has tended to reduce the up ward pressure on the stock price of such banks. Looking to the days ahead, there are questions about the possibility for a resurgence of the multibank HC. His tory suggests that the trend will contin ue to grow and be permitted by stat ute. Concentration of banking will be limited only modestly. Several states have adopted legislation limiting onebank HCs to a percentage of the total deposits in the state. At the federal level, the concentration figures are of interest to the Justice Department and serve as a constraint where more than one-third o f a community’s or market area’s resources are in one bank. Still, some developments have the potential for making radical but evolu tionary changes in the sale and pur chase of banks— either as units or in HCs. One is the ESOP (Employee Stock Option Plan), a complex piece of legislation. Few banks have them. There is some need for clarification by the IRS on the valuation concepts of closely held bank stock which would, in effect, becom e available to the ESOP. ESOPs’ proponents feel the plans have definite value, that the plans en courage capitalism by helping existing employees and officers acquire owner ship in an institution. Opponents hold that ESOPs lead to dilution for exist ing shareholders and may pose prob lems of control in years ahead. At this point it’s difficult to say what will be the result o f ESOPs. W ill they be an important factor in the determination of control of banks or, like the Small Business Investment companies, will they be like a comet, having a brief flash and then fade rapidly? * # Ivey Is First W o m a n Pres. O f A la . Young Bankers; Powell C ite d a t C o n v e n tio n M OBILE— Kay Ivey, assistant cash ier, Merchants National, has been in stalled as president of the Alabama Young Bankers and Ray O. Powell, the bank’s vice president and auditor, has been named the association’s outstand ing young banker for 1976. Those announcements came at the 21st annual convention of the Young Bankers in Gulf Shores May 12-14. Miss Ivey has served as the Young Bankers’ treasurer and vice president and is the first woman president since it was organized in 1955. She joined Merchants National in 1970 and was instrumental in the establishment of the Alabama Banking School at the University of South Alabama here. IV E Y POW ELL The outstanding young banker award is based on the contributions made by the nominees to their own banks and to banking in general, and for commu nity interest demonstrated through leadership or participation in civic, cultural, church or fraternal organiza tions. Mr. Powell is a graduate of the American Institute of Banking and the School for Bank Administration at the University of Wisconsin, Madison. He is the Bank Administration Institute’s state director for Alabama and is a member of the Ala.BA operations com mittee. W . J. “ Happy” Fulford, assistant cashier at Merchants National, has been named outstanding group chair man by the Young Bankers. Other newly elected Young Bankers officers are J. R. Jones, vice president, Escambia County Bank, Flomaton— vice president; D ow d Ritter, assistant vice president, First National, Birming ham— treasurer; and Ranee Kelley, vice president, Central Bank, Hunts ville— secretary. MID-CONTINENT BANKER for July, 1976 On a New Source o f Money for \bur Customers from Ronald J. Krause, President and Sheldon G. Karras, Sr.VP Associates Commercial Corporation banks recognize us as partners and not competitors. Our bank participa tion program is positioned to bring new business to your bank and present the added opportunity to service your customers in an imaginative and innovative way. The careful planning for growth of a customer by both the bank and our commercial finance team can lead to long-term, profitable relation ships foryou. Annual Industry Volume lor Commercial Financing 1965-1974 Billions of S 35______________________________________ We are pleased to introduce Associates Commercial Corporation, the “ new” billion dollar financial resource. Associates is a subsidiary of Associates Corporation of North America, a Gulf + Western company. With over 50 years of financial experience, we are proud of our corporate heritage and our financial stability, and we are proud of this opportunity to serve you and your customers. Associates Commercial offers to our banking friends an extensive network of financial services, staffed by what we believe to be among the most experienced, knowledgeable and talented people in commercial finance. Our group is dedicated to developing creative ideas and methods to work with you and your customers in providing timely and responsive financing. The commercial finance industry has grown dramatically during the past decade as more and more other transportation and material handling programs through its transportation division. Through the industrial financing and leasing departments, Associates finances production, construction and plant and field equipment. We finance and lease vehicle and fleet programs directly with customers or through banks. May we suggest you retain this letter and file under "Associates Commercial Corporation, The Billion Dollar Financial Resource.” If we can answer any questions or discuss opportunities with you, we’d be most happy to do so. We believe the professionals at Associates Commercial Corporation can be a most significant and vital source of funds for your customers, and look forward to enhancing our relationships with you. Sincerely, Our program is, as you know, extremely useful when a customer is at the upper limits of his borrow ing capacity, but needs additional money for expansion, acquisition, or seasonal working capital. We have a large and highly efficient com puterized operating department and can monitor client needs on a daily basis. We respond decisively and are not bound by many of the tradi tional commercial borrowing criteria. Additionally, Associates continues as a dominant factor in financing heavy duty trucks and trailers and Ronald J. Krause President Sheldon G. Karras Senior Vice President We listen We understand We respond Associates Commercial Corporation A subsidiary of Associates Corporation of North America, a Gulf + Western Company. 55 East Monroe Street • Chicago, Illinois 60603 • (312)781-5888 • C o m m e rcia l F ina n cin g • F a cto rin g „ • T ru c k /T ra ile r/T ra n s p o rta tio n E q u ip m e nt F inancing • In d u stria l E qu ip m e nt F inancing • Leasing • C ustom ized F inancial P rogram s 50 offices nationwide/over a billion dollars working for business. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Selling / Marketing ABA Runs First Issue-Ad Campaign; Bank W e lco m e s Spring By D is trib u tin g Flowers Supports Right of Consumer Privacy Suburban National, Elk Grove Vil lage, 111., welcomed spring in a unique way. On May Day (M ay 1) it handed out more than 3,500 narcissus blooms to residents of the area. “ Seven Suburban Bank sweethearts” wore bright corsages and distributed the flowers. And of course, a bank o f ficial adds, most recipients were very complimentary to the gestures of hap piness. T HE AM ERICAN Bankers Associa tion has launched what reportedly is the industry’s first issue-advertising campaign. Based on the right of consumer pri vacy, the ad begins, “ Right now fed eral, state and local government offi cials are legally empowered to require your bank to show them records of your private banking transactions— without first notifying you. This is to tally opposed to a tradition in Ameri can banking, in which an individual’s private financial records are handled with the utmost confidentiality.’’ During the past four years, the ABA has run network TV ads with consumer banking messages, but it was felt that the area of consumer privacy merited special attention. The association has prepared ad copy, entitled “ Which W ay Are W e Going?” which it has mailed to all member banks for use in the news media. The ads don’t affect relationships be tween banks, an ABA spokesman says, and it is suggested that banks coordi nate efforts and share the costs of such advertising with other banks in their communities. A letter to all CEOs says: “ W e ask you to read this ad and strongly consider running it in your local newspaper. As you know, many congressmen and senators have the newspapers from ‘back home’ moni tored. This advertising will have na tional as well as local impact on a sub ject of concern to banking and in the public interest. . . . You and the entire banking industry and the public should benefit.” The ad points out that there is the need for the government to curb crime, but that there is an obvious potential for abuse. While there is the need for privacy in a free society, there also is the need to prevent criminals from hiding behind those barriers of priva cy. But, the ABA says, searching through an individual’s bank records “is like leafing through your personal diary.” The ad points out what should be done about the problem, saying that the ABA is supporting legislation to safeguard the right to financial priva cy: the Tax Reform Act, which now is 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Which Way Are We Going? O b s e rvin g the Bicentennial? Bank Says It W ith Flowers This is a d copy b e in g m a ile d to A B A m em b er b an ks. A d is p a r t o f A B A c a m p a ig n fo r con sum er p riv a c y con cernin g c o m p le m e n te d by TV ad s subject. bank records, is by ass o cia tio n on under review by the Senate after pas sage by the House, and the Right to Privacy Act of 1976. The ABA hasn’t specifically sched uled additional issue-oriented ads, but indicates that “ as issues of public inter est arise, they will be addressed.” * * Here’s a novel and attractive way to observe the nation’s bicentennial: Say it with flowers! That’s what Bank of Ladue, Mo., has done in its lobby. That institution has become known in the St. Louis area for the flower displays it has. held since 1973, the year it opened. What Bank of Ladue does is to offer premiums of flowering trees, plants and shrubs for deposits. The promotion ties in with a lobby display of flora, and this year the bank’s lobby was a garden of more than 16,000 red, white and blue petunias. The idea for the spring promotions came from Director Howard F. Baer, who is a gardener. During this year’s one-week promotion, a horticulturist was on hand to offer advice to customers and help them select plants. This is b ic e n te n n ia l g a r d e n in lo b b y o f B ank o f Lad u e, M o . A d m irin g th e c re a tio n a re H o w ard F. B a er, d ir., a n d S h aron N a v o , a custom er. F lo w e r d is p la y s , th e id e a o f M r. B aer, h a v e been held in con jun ction w ith p la n ts -fo r-d e p o s its p ro m o tio n s since b a n k o p e n e d in 1 9 7 3 . This y e a r, lo b b y d is p la y w a s o f re d , w h ite a n d b lu e p e tu n ia s . MID-CONTINENT BANKER for July, 1976 A Deluxe double feature to help your people sell. To help you train and encourage your new accounts people, we’re offering two color-sound filmstrips that present techniques o f more effective selling through improved customer relations. New Accounts-Lasting Accounts is a quick refresher course in opening new checking accounts with special emphasis on cross-selling other services to your new customers. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Relating: The Key to Customer Relations is a completely new film strip that shows how to make your customers feel more at ease in your bank and more responsive to your people. Both films were prepared by specialists. They’re well-produced, easy to comprehend and train your people in a “ non-threatening” manner. Used separately or in combination, they’re designed to complement your regular training effort. Your Deluxe representative will be glad to show them to you. Just ask about this double feature. CH ECK PRINTERS, INC. S A LES HEADQUARTERS P .O .B O X 3 3 9 9 S T .P A U L ,M N .55165 STRATEGICALLY LOCATED P U N T S FROM COAST TO COAST I3 Bank Refurbishes Historic Room Community Involvement 'Dimension 60': Senior C itizens Program H olds Series of Seminars C la re n c e C. B a rk s d a le (c.), ch. a n d CEO, First N a t'l in St. Louis, cuts th e rib b o n to open th e St. Louis Room o f th e historic O ld C o urtho use in St. Louis. As a b ic e n te n n ia l g ift to th e com m u n ity , First N a t 'l sponsored th e re fu rb is h in g o f th e fo r m e r c o u rtro o m w h ic h n o w serves as a setting fo r a g ra p h ic in te rp re ta tio n o f th e city's histo ry. A ssisting M r. B a rk s d a le a re Lu Ann Leder, M s. D o w n to w n St. Louis, a n d R o b ert S. C h a n d le r, s u p e rin te n d e n t, Jefferson N a t'l E x p an sio n M e m o r ia l. Loss Prevention; Bank Uses M o b ile U nit; Shows P ro te ctio n M e th o ds After one year of operation, 12,000 people reportedly have visited the mo bile HELP unit of National Bank of Detroit. The unit contains over 100 tips and products for fire prevention and auto theft, burglary and small business protection. Winner of the 1974 Public Relations Society of America’s Silver Anvil Award, Project HELP— Help Enforce Loss Prevention— works in cooperation with Detroit and Michigan State Police, the Wayne County Sheriff’s Depart ment, the EBI and many suburban law enforcement agencies. Displays include door and window locks, a variety of home protection de vices priced under $10 and burglary prevention suggestions. HELP also pro vides information for merchants, stress ing store protection measures and badcheck safeguards. “ Operation Identification” is a city wide program for marking valuables with electric engravers, which are avail able through local police precincts. The bank has donated more than 3,000 en gravers to community groups for use in the program. Also available from N BD’s library are two films, “ Woman, Beware” and "The Bunco Boys,” along with eight slide presentations on self-protection, burglary prevention, crime and the citi zen, bad checks, shoplifting, robbery, crime prevention and auto theft. 14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis About 700 people— all members of the Dimension 60 program of the af filiate banks of First Midwest Bancorp., Inc., St. Joseph, M o.— were on hand for a seminar on “ Changes and Update in Social Security and M edicare." The seminar was held in St. Joseph. Participating HC banks were First Na tional, First Trust and First Stock Yards Bank, all of St. Joseph, and Home Bank of Savannah. A panel of speakers, moderated by Gary Mowrey, assistant marketing manager for the HC, included Don Johnson, assistant district manager, So cial Security Administration; Arlene Minks, director of social services, St. Joseph Hospital; and Richard W ollenschlager, office manager, Methodist M edical Center. A question-and-answer period followed the panel presentation. The Dimension 60 program includes a variety of free banking services and discounts from participating merchants and stores in the area. To be a member of the program, one must be 60 years old “ or better” and have a savings ac count or CD at any of the affiliate banks. The seminar featured free refresh ments and door prizes and the HC pro vided free rides on the city bus line to and from the event. Upcoming seminars will cover topics such as “ How to Protect Your Health After Age 60,” "The Ins and Outs of Income Tax Preparation” and "H ow to Avoid Fraud and Confidence Schemes.” Free A d v i c e : Bank-Sponsored Sem inar Analyzes Trusts, Estates Webster Groves (M o.) Trust has sponsored a seminar on trusts and estate analysis. Offered to area residents at no cost or obligation, the event drew a near capacity crowd of 225 to a local hall. Webster Groves is located in St. Louis County. As part of the program, a trust rep resentative of an affiliate, First Na tional, Kansas City, was on hand to dis cuss and answer questions about trusts, money management, estate taxes, con tinued management of businesses and other related topics. That represent ative was Tom Foster, vice president with the bank. Both the Kansas City bank and W eb ster Groves Trust are affiliated with First National Charter Corp., Kansas City. O n h a n d fa p ro v id e in fo rm a tio n a n d a n s w e r questions d u rin g tru st a n d e s ta te a n a ly s is s e m in a r o f W e b s te r G ro ves (M o .) Trust w e r e (fro m I.) W a r r e n Druschky, b a n k pres. & ch ief a d m in , off.; Tom Foster, v .p ., First N a t'l, K a n sas C ity, a ffilia te b a n k ; M . Leon H a ll, host b a n k ch. & CEO; a n d N o rv ille R. G ish, s.v .p .. First N a t'l C h a rte r C o rp ., p a re n t HC fo r b an ks. N e a r -c a p a c ity cro w d o f 2 2 5 w a s in a tte n d a n c e d u rin g tru s t a n d e s ta te an a ly s is s e m in a r o f W e b s te r G ro ves (M o .) Trust. J. M . Ford II (r.), ch. & pres., First M id w e s t B a n co rp ., Inc., St. Joseph, M o ., a n d G a ry M o w rey (c.), ass istan t m k tg . m g r., g re e t a guest d u rin g first o f HC 's D im ension 6 0 sem in ars. MID-CONTINENT BANKER for July, 1976 O ur idea of correspondent banking: THE COMMITTEE O F ONE. Our people are real, live, experienced correspondent professionals, with years of correspondent banking behind them. They aren’t management trainees or just goodwill ambassadors, so they can okay loans or services—like our new EFTS services—on the spot. Without going through unwieldy, time-wasting committees. WE CALL YOU BYNAME NOT BY PHONE. You see, National Boulevard believes in person-to-person, eye-to-eye contact with the management of every correspondent bank. Right there at the correspondent bank. So things get done faster, friendlier. THE FUTURE STARTS TODAY. And now our individualized services will be better than ever, because National Boulevard is ready with EFTS. Electronic Funds Transfer Systems. EFTS means efficient response to your service requests. Immediate response. For instance, our Central Information File is already on line, sending special data to correspondents at a moment’s notice. Soon, checking and savings accounts will be on line. Then, step-by-step through the year, every correspondent service will be fully integrated into the system for more convenience, for better banking. The bank for the New Downtown NATIONAL BOULEVARD BANK OF CHICAGO 400-410 North Michigan Ave., Chicago, 111. 60611 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone (312) 467-4100 Member FDIC 15 BANKING WORLD SM ITH JO HN SO N • James E. Smith resigned as Comp troller of the Currency last month, two years short of fulfilling his five-year term. Mr. Smith cited personal reasons for his resignation, which becomes ef fective at the end of this month. Dur ing his tenure in office, the nation wit nessed the four largest bank failures in its history. All four were national banks under the jurisdiction of the Comptrol ler. The failures brought charges of lax ity against Comptroller Smith, but it was thought he had weathered the storm prior to his resignation. Secretary of the Treasury William Simon praised Mr. Smith’s “ skillful leadership” and his “major initiatives to modernize the regulatory and supervisory process.” • Bradford M. Johnson has been promoted from account officer to senior account officer at Citibank, New York City. He joined the bank in 1972 and for the past three years has had lend ing and account responsibility for cor respondent banks in Texas, Oklahoma and New Mexico. • Phillip B. Isbell, correspondent officer with National Stock Yards Na tional, National City, 111., who calls on banks in Illinois and Indiana, and D on ald J. Baldwin, correspondent officer who calls on banks in southern Mis souri and Arkansas, have been named assistant vice presidents. Also elevated to assistant vice president was Ronald L. Watson, the bank’s tax and trust of ficer. Mr. Isbell joined the bank in 1963; Mr. Baldwin, in 1968; and Mr. Watson, in 1962. • Morgan Guaranty Trust, New York City, has promoted the following from vice presidents to senior vice presidents: Frank E. Reed, Neil D. Chrisman, David B. Dyche Jr., William J. McGoldrick, John K. Sands, Henry C. Schreier Jr., Thomas W . Stanley, 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ISBELL ING ERSOLL B A L D W IN Thomas J. Sweeney, Rodney B. W ag ner and David D. Wakefield. Mr. Reed has been with the bank since 1968 and previously was in charge of a group serving clients in five mid western states. He now is head of the banking group of the national banking division serving midwestern and western states. • Robert S. Ingersoll has been elect ed a director of First Chicago Corp. and its subsidiary, First National, Chi cago. He is deputy chairman and first vice chairman, University of Chicago board of trustees. He previously served on the First Chicago board, 1958-72, when he was named ambassador to Japan. He served in other government posts until this year. Mr. Ingersoll fills the space on the bank and HC boards left by the resignation of Gaylord D on nelley, executive committee chairman,1 R. R. Donnelley & Sons Co. Mr. D on nelley had served as a bank and HC director since 1969. • Chauncey E. Schmidt, president, chairman and CEO, BanCal Tri-State Corp., and CEO of its subsidiary, Bank of California, both of San Francisco, has assumed the additional duties of bank chairman, succeeding Charles de Bretteville, who has retired. Mr. de Bretteville will continue as a bank and HC director. Prior to joining the bank and HC, Mr. Schmidt was presi dent, First National, Chicago. • Gaylord Freeman, honorary chair man, First National, Chicago; Gabriel Hauge, chairman, Manufacturers Han over Trust, New York City; and W il liam H. Baughn, director, Stonier Graduate School of Banking, Rutgers University, New Brunswick, N. J., have received Stonier’s Ayres Leadership Award. Presented only eight times since its 1947 establishment, the award is made to those who have encouraged a better understanding of economic S C H M ID T problems in the U. S. and support of banking. The award was established to perpetuate the intellectual achieve ments of the late Brig. Gen. Leonard P. Ayres, a former Stonier instructor and vice president, Cleveland Trust. • David H. Jones, deputy com p troller for strategic studies, Comptroller of the Currency’s Office, Washington, D. C., has been assigned additional re sponsibility for the Banking Research Division by Comptroller James E. Smith. The division formerly was su pervised by the deputy comptroller for Washington operations as the Research and Analysis Division. The Strategic Studies Department now comprises two divisions: Strategic Analyses, with Gordon Eastbum as director, and Banking Research, with Robert Dince as acting director. In addition, Comp troller Smith has appointed William A. Longbrake, formerly economist, Divi sion of Corporate Planning, FDIC, as associate director, Banking Research Division. • David M. Lilly, chairman, Toro Industries, Minneapolis, has been con firmed by the U. S. Senate to fill the Federal Reserve Board seat left vacant by the May resignation of Robert C. Holland. The unexpired term ends January 31, 1978. Mr. Lilly is a former chairman, Minneapolis Fed. • J. P. Morgan & Co., and its sub sidiary, Morgan Guaranty Trust, New York City, have announced the follow ing elections: Lewis T. Preston and John P. Schroeder, to vice chairmen of both firms, to succeed Thomas Rodd and DeW itt Peterkin Jr., and Daniel P. Davison, Robert V. Lindsay and Alex ander M. Vagliano, to bank executive vice presidents. MID-CONTINENT BANKER for July, 1976 are still going strong. So are Mississippi's efforts at industrial expansion and in state processing of our agricultural products and timber resources for increased sales on the international market We'll bet you don't know all the facts about the good things we’re doing in Mississippi. Find out more from First National Bank., you’ll be interested in what you hear. Jackson. Mississippi M em ber FDSC MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ifyou sell your customers an ordinary brand oftravelers cheques, be sure to tell them not to lose them on a weekend. U r on a holiday. Or even at night. W hy? Because ordinary travelers cheques have ordinary refund systems. W hich are only open during normal banking hours, Monday through Friday. If a customer loses ordinary travelers cheques on a weekend, he could be out o f funds for quite some time. A n d that’s enough to ruin a per fectly good vacation. Your customer deserves better than this. He deserves American Express® Travelers Cheques. O nly American Express can give your customers an Emergency Refund 24 hours a day, 365 days a year, for up to $100 at Holiday Inns across America and Canada. Our Emergency Refund system alone is enough to rescue a vacation from disaster. But it’s just one o f the reasons https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis why American Express is the world’s number one brand of travelers cheque. Here are a few more. 1. American Express Travelers Cheques are good at thousands more h o tels, motels, restaurants and gas stations across America than any other brand. 2. In addition to Emergency Refunds at odd hours, your customers can get full refunds during normal business hours. Usually on the very same day. 3. Only American Express Travelers Cheques are supported by the world’s largest network o f travel offices. Helpful places around the world where your customers can go with a problem. G ood customer relations are price less. You can protect them with the world’s number one brand o f travelers cheques: American Express. Fischer Elected AIB President At 76th Convention in St. Louis Agricultural News ABA Offers Action Agenda to Congress To Ensure Future for Young Farmers T HE ABA has proposed actions to ensure that young people are able to move into agricultural production with reasonable opportunities for suc cess. In testimony presented before the Senate Subcommittee on Agricultural Credit and Rural Electrification, C. P. Moore, an executive committee mem ber of the ABA’s Agricultural Bankers Division, outlined measures that call for a combination of actions by public and private sectors. Such actions, he testified, should allow an environment which offers profit opportunities, since favorable in come conditions of recent years is one reason college graduates are returning to the business of farming. He said that preservation of capital resources in agricultural production is important. In addition to ABA support of estate tax law relief for small estates and farms presently before Congress, the ABA testimony suggested that Con gress consider the establishment of a tax incentive for the early (before death) transfer of complete farm op eration— personal property, land, or a combination of both. “ Such a tax incentive could make an orderly transfer of farms possible,” Mr. Moore stated. He added that the effectiveness of existing Farmers Home Administration (F m H A ) loan programs be maximized. “ Basic tools are available to aid young people,” Mr. Moore observed. “ Some definite steps should be taken by Congress to increase the effective ness of these tools.’ Mr. Moore is president of the North western National Bank of Sioux Falls, S. D,, which ranks 24th among the top 100 U. S. agricultural bank lenders. The ABA testimony presented by Mr. Moore suggested four principal legis lative proposals that Congress should first consider as actions to help young farmers and to encourage lenders to take advantage of the existing guaran teed FmHA farm loan programs. • Increase the FmHA individual farm loan limits for both operating and ownership programs; • Separate funding for the loan levels for direct and guaranteed loan programs; • Allow the FmHA direct lending rate at a cost no less than the cost of money to the Treasury and allow all the FmHA guaranteed loan programs to be at local negotiated rates; and, • Give high priority to provide FmHA with the resources— personnel and systems— and the authority needed to effectively service farm loans. W hile calling the objectives of the Young Farmers Homestead Act of 1975 “ commendable,” Mr. Moore noted two major ABA concerns. “ W e believe it is economically un sound for the federal government to compete in the marketplace for a scarce resource— farmland,” and, Mr. Moore observed, “ the overall program does not appear to be helpful to young farm ers in establishing an economical unit.” “ All lenders can do more to help fi nance young farmers,” Mr. Moore ob served. “ It only takes an attitude change, solid educational effort on the methods and tools presently available and some research and development to make improved changes with an exist ing lending program.” * * ST. LOUIS— Clyde H. Fischer, con troller, Northwestern National, Sioux Falls, S.D., was elected president of the American Institute of Banking at the group’s annual convention here last month. Elected vice president was Jerry J. Jason, personnel officer, Southeast First National, Miami. New executive coun cil members are S. Gerald Hummel, Farmers First Bank, Lititz, Pa.; W il liam W. Bawden III, Barnett Comput ing Co., Jacksonville, Fla.; Joseph H. Hill, County Bank of Santa Cruz, Boulder Creek, Calif.; and Myrtle M. Miller, Citizens Trust, Toledo, O. Winner of the AIB national public speaking contest was Kris Maul, Lloyds Bank, Fresno, Calif. She told the 1,200 convention delegates that the banking industry can no longer afford a su perficial view of corporate responsibil ity. The 50th anniversary of the speak ing contest was observed at the con vention. Rudolph R. Fichtel, AIB national di rector, reported that an associate or baccalaureate degree from the Boston AIB Chapter could becom e a realitv by 1979. D u rin g recen t A IB n a tio n a l co n v e n tio n in St. Louis, M rs. C la ire G ia n n in i H o ffm a n (I.) accepts trib u te to m e m o ry o f her f a th e r , th e la te A. P, G ia n n in i, fo u n d e r o f Bank o f A m e ric a a n d o f the A IB 's p u b lic s p e a k in g contest. O ccasion w a s 5 0 th a n n iv e rs a ry o f s p e a k in g contest, w h ic h w a s e n d o w e d by M r. G ia n n in i. T rib u te , p rese n te d by H a r t w e ll D a vis , A IB a d m in is tr a tiv e d ire c to r, consisted o f le a th e r-b o u n d boo k c o n ta in in g letters o f a p p re c ia tio n fro m fo rm e r w in n e rs a n d p a rtic ip a n ts in s p e a k in g contest. FARMERS GRAIN & LIVESTOCK HEDGING CORP. LOOKING FOR IM MEDIA TE A CCURA TE INFORMA VON TO DEAL WITH TODAY'S WILDLY FLUCTUATING GRAINS, LIVESTOCK MARKET? OUR ONLY BUSINESS WRITE OR CALL F G L* 1200 35th St West Des Moines. Iowa 50265 515 223-2200 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IS A D V I C F ^ AUVI^t MID-CONTINENT BANKER for July, 1976 “Wh can handle most things, but when we can’t it’s nice to be able to call on the First.” The Kaw Valley Statç Bank and Trust Company o f Wamego Kansas is a true success story. A — . First National BanLfiff Kansas City correspondent relationship has given it added financial strength and a team o f specialists, Frank Meek, president, is à ^¡ppman who conducts modern day ipS^banking from behind a rolltop € desk. He understands and g|f .«studies each customer’s » ^ b u s in e s s needs in the best traditions o f the old-fashioned, small town bank. In a town with a population o f 2,500, his customers are his friends and neighbors. And he can give them most services they might require. But Frank Meek has a correspondent relationship with the First National Bank o f Kansas City to help him handle those services his customers may need from time to time that ¿ ¿ ^ h e cannot give. -Together, with the First, Kaw Valley State Bank has the added strength o f both economic and manpower resources. If your bank could benefit from assistance with overline loans, investments, transit collection, bonds, international services, trusts, cash management.and other financial services, call the professional staff o f the First National Bank Correspondent Department. We take pride in the success o f Frank Meek and the Kaw Valley State Bank o f Wamego. Our correspondent banking tradition has been built on help like this. Why not put our strong tradition o f excellence to work for your success. Frank Meek Kaw Valley State Bank and Trust Company of Wamego 'four success is our tradition. First . National Natip Bank 'of KANSAS CITY. MISSOURI An Affiliate of First National Charter Corporation MID-CONTINENT BANKER lor July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 21 Corporate News Roundup Houston Office. Mr. D ow d will direct all sales development activities relat ing to Travelers Cheques and Financial Institution Money Orders in the U. S. Previously, he was a vice president in the card division. Miss Blanks formerly was with South Main Bank and River Oaks Bank, both of Houston. HANSON SEX TO N • Federal Signal Corp. E. J. “ Roy’ Hanson has been named district man ager, Houston Office, of the Federal Sign division of Federal Signal Corp., Burr Ridge, 111. Mr. Hanson has been with Federal Sign 10 years and will manage and direct the sales force, art department and manufacturing and in stallation operations in the Houston area. • Brandt, Inc. Lynn M. Kruger has been named district manager by Brandt, Inc., which is headquartered in Watertown, Wis. Mr. Kruger will cover the Indiana, Kentucky and Illinois area. He most recently was district manager, Cleveland area. LE V E R IC H LA R R A B U R E TA Y LO R • Bank Building Corp. Richard L. Larrabure has been promoted to group vice president by Bank Building Corp., which is headquartered in St. Louis. The following have joined the firm as consultant services managers: Daniel J. Sexton, Bernard J. Leverieh and Clay M. Taylor. As group vice president, Mr. Larrabure will have executive re sponsibility for Bank Building’s eight financial market divisions and related services, and of BBC Financial Research Associates, a separate consulting di vision. Mr. Sexton will serve BBC Cen tral Financial Facilities in the central Illinois area; Mr. Leverieh, BBC Cen tral Financial Facilities, Kansas City area; and Mr. Taylor, BBC Southwest ern Financial Facilities, Dallas area. New C A R TE R P A TR IC K B O W EN • John H. Harland Co. The following have been named vice presidents by John H. Harland Co., Atlanta: Hugh A. Carter Jr., Joseph E. Patrick Jr. and Robert H. Bowen. Mr. Carter joined Harland in 1968 and continues as dis trict operations manager. Mr. Patrick has been with the firm since 1969 and retains his duties as area sales manager, based in California, while Mr. Bowen, who joined Harland in 1975, has a background in personnel and banking. • American Express Co. John Dowd has been appointed vice president-na tional sales, Travelers Cheque and money order divisions, American Ex press Co., which is headquartered in New York City. Lynn Blanks has been named district sales manager, Travel ers Cheque and money order divisions, 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Jordan/Marks & Associates. Glen Jordan and John A. Marks have formed Jordan/Marks & Associates to provide management advisory services. The firm initially will have offices in El Paso and Dallas. Mr. Jordan formerly was president, PanNational Group, Inc., El Paso, while Mr. Marks former ly was executive vice president, First National, Albuquerque. Jordan/Marks will be associated with Banking Sys tems Inc., Dallas, a banking, computer and data processing company. Services provided by Jordan/ Marks will include areas such as computer systems, acqui sitions, mergers, marketing studies and corporate planning. Economic Chart Service Begun by Harris Bank C H ICAG O— Harris Bank has intro duced an economic chart service for business firms and institutions. Harrischarts, as the service is called, offers a monthly packet of 30 major economic indicators in chart form. A printed summary of each chart’s sig nificance in the economy also is pro vided. Subjects covered by Harrischarts range from “Automobile Sales” to “ Wages and Prices." The service in cludes the GNP, consumer spending, corporate profits, federal budget, hous ing starts and stock prices. Bank officials say the Harrischarts service has been designed as a visual tool for corporate decision making and as an aid in marketing and planning presentations. Women in Business Is Topic Of SBA-Sponsored Forum The “ W omen in Business Forum” has been slated for mid-July in Kansas City, according to the U. S. Small Busi ness Administration’s (SBA) Kansas City Office. The forum is a national pilot project sponsored by the SBA, the Kansas City Federal Executive Board and the MidContinent Federal Regional Council in cooperation with several women’s or ganizations throughout Missouri, Iowa, Kansas and Nebraska. A number of other federal agencies have provided services and support for the project. The forum will feature a nationally recognized keynote speaker at the luncheon. The “ W om en in Business Forum” will provide an opportunity for attendees to increase their markets, ob tain up-to-date business assistance and gain information from leading experts in their respective business fields on how to start and stay in business. The forum’s schedule will enable each registrant to attend a series of six 50-minute related “W omen in Business” forums, which will provide specific techniques on how to progress from the idea stage to the opening of the doors of a business, and beyond. Topics cov ered will be of interest to small and medium-sized businesses. Registration fee is $12.50— $15 after July 7— which includes admission to all activities, forums and a luncheon. Write: “ W omen in Business Forum,” Small Business Administration, 911 Walnut Street, Room 2300, Kansas City, M O 64106. MID-CONTINENT BANKER for July, 1976 You've got to hand it to First Minneapolis. W e’re the stud en t loan a d m in istra tio n p a p e rw o rk people. Turn your paperwork over to the Student Loan Servicing Center of the First National Bank of Minneapolis. We’re specialists. We’re geared with the proper people and equipment to take this load out of your hands and save you money. Over 325 lenders of every size have found that First Minneapolis ¿ m can actually make their student loan programs more profitable. We can probably give you a hand, too. Call us collect at (612) 370-4114. The Student Loan Servicing Center. First National Bank of Minneapolis. First ■ ■ Minneapolis Student Loan Servicing Center First National Bank of Minneapolis 120 South Sixth St., Minneapolis, Minnesota 55402 • Member FDIC MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 Installment Lending Insured Credit Offers Business Builders To Push Home Improvement Loans ENDERS desiring to expand their i bank’s home improvement loan portfolios can try any number of busi ness builders, according to “ Moderniza tion Topics,” newsletter published by Insured Credit Services, Inc., Chicago. A recent issue suggested eight proj ects, all designed to encourage bank customers to take out home improve ment loans. • A power tool offer was made by a bank in Florida the first three months of this year. According to the news letter, home improvement loans total ing more than $250,000 were generat ed largely by a $2,000 investment in sample power tools, mail flyers, radio ads and a lobby display. According to the terms of the promotion, a borrower of $1,000 to $3,500 would get a drill or jigsaw free; borrowers of from $3,500 to $5,000 were eligible for a drill, a jigsaw or power sander at no cost; and borrowers of from $5,000 to $7,500 could have any two of the tools or one circular saw. • A “ brown bag seminar" was spon sored by a bank in Houston. The bank invited office workers to attend the seminar, which was held in the bank. About a hundred came, bringing their own lunches. The bank furnished soft L 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis drinks and coffee and arranged for speakers to discuss home improvement financing, as well as planning, con tracting, costs, pitfalls and the advan tages of modernizing instead of mov ing. A question-and-answer session fol lowed. Each guest signed a card to make himself eligible for a free gift and to give the bank a solicitation list. According to the bank, the seminar, along with bank advertising, resulted in a substantial increase in home im provement loan volume. • A bank in Missouri staged a “ get your home improvement money during March” promotion to get customers thinking about the fixing up they would be doing as the weather im proved. • Do-it-yourself instruction books can be put to work as premiums to stimulate home improvement loans. Books such as Kitchen Ideas, Bathroom Ideas, Decks and Patios and The Better Homes i? Gardens Handyman’s Book can be obtained with bank imprints when ordered in quantities of 15,000 or more, according to the newsletter. • Miscellaneous giveaways can lure potential customers into the bank. Items such as hammers, hand saws, ladders, trees, flower seeds and other items that are psychologically compati ble with home improvement can trig ger loan applications. The cost of these giveaways is small in relation to the potential benefits. • A bank near St. Louis offered re bates to customers taking out home im provement loans. The announcement of $50 rebates on loans of more than $1,000 and less than $5,000 resulted in 60 new loans. The rebates were in the form of interest and payment re ductions. • A newspaper ad listing 30 ways to make a house a dream home was published by an Ohio bank as an eco nomical way to call home improvement loans to the attention of the public. • Another Ohio bank tried a selec tive-file mailing that started out like this: “ Dear Preferred Customer: Your past credit rating now entitles you to additional money!” Letters were sent to customers who had good payment records on past loans. Included in the announcements were wallet-sized cards proclaiming the customer to be a pre ferred customer. Although the cards didn’t entitle recipients to any extras, the mailing resulted in a 3% increase in home improvement loans. * • Schultz Named President Of KC Clearing House KANSAS CITY— Norman C. Schultz, president and CEO, Merchants-Produce Bank, has been elected president of the Greater Kansas City Clearing House Association. He previously has served as vice president and as treasurer of the association. Assuming the duties of vice president o f the association is Jerome If. Scott Jr., president, United Missouri Bank. He also serves as a director and secre tary for his bank’s affiliate HC, United Missouri Bancshares, Inc., which also is headquartered in this city. Succeeding Mr. Scott as treasurer of the Greater Kansas City Clearing House Association is Donald L. Hallier, execu tive vice president, Brotherhood State, Kansas City, Kan., where he also is trust officer, security officer and as sistant secretary. He is a past president of the Wyandotte County Bankers As sociation and of the Kansas City Chap ter of the Bank Administration Insti tute. John P. Borden will continue as executive director and secretary of the clearing house, a position he has held since 1971. He holds a similar post with the Mid-America Automated Clearing House Association. MID-CONTINENT BANKER for July, 1976 Fred N. Coulson, Jr. Joe W illiam s "You do the impossible ultim ately the difficult, immediately." Joe Williams was a familiar figure in early Commerce days. Red-haired, nattily dressed, he was one banker who always seemed to remember your name. Joe Williams headed the Com m erce Correspondent Department during the turbulent time of the 30’s. He later became president of the bank. Joe believed that Commerce bankers should do the impossible ultimately—the difficult immediately. That included pioneering the nation’s first 24-hour transit department in 1928. A transit department so complete that banks all over the country turned to Commerce for advice. It also included special attention to each and every ban k we se rved. is » ■J ® J ff OFBANKING C o m m erce Bank QJ K jflS tlS C ity 9th & Main 234-2000 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis There was no end to what Joe believed could and should be done for his customers. Banking is more sophisticated today, but Fred N. Coulson, Jr. head of our Correspondent Department, still believes in complete service for our customers. Fred’s people become totally involved with the banks they serve. They continue to find new, innovative means to help correspondent banks. Maybe that’s why approximately one out of every ten banks in the country maintains a relationship with Com m erce Bank of Kansas City. Commerce Bank, what can we do for you? 10th & W alnut 12th & Charlotte M e m b e r FDIC 25 !0 2 3 '7 5 r w u u l 052 0566 AUSTRIA 023 Û2S3 BELGIUM 35 98 CANADA .¡56 .¡730 DENMARK ENGLAND FINLAND FRANCE GERMANY GREECE HONG KONG ITALY •• .0012500143 JAPAN '.0 0 3 2 0 3 3 4 5 MEXICO .0 7 8 082S Ne t h e r l a n d s - - 3 6 5 0 ,3940. NORWAY ___.¡7 .1870 PORTUGAL „ r g m ,03$ I .0158 .017- 200 3 GOLD «WLU i 0564 .0263 98 J730 z'è .1: ' coin supply wanes in a given channel, the Model 570 automatically locks to prevent short payment. The display then flashes until the coin supply is re plenished or until the warning is by passed by pushing a lock release. Write: Brandt, Inc., M O D EL 570, Watertown, W I 53094. New Products and Services • LeFebure Corp. The LM-3800, a telephone line monitoring system, has been introduced by LeFebure Corp., Cedar Rapids, la. The system sends a succession of unrelated random audio frequency signals from a police panel to the bank that are said to be nearly impossible to compromise. The bank then re-transmits the signal to the p o lice panel, where it is verified. If a signal isn’t received in the amount of time allotted, or if the signals are out of phase, a signal lamp and audio alert are activated at the central unit. Write: LeFebure Corp., P.O. Box 2028, Cedar Rapids, IA 52406. ¡45,00.1 ar« I44J51 • Magna Visual, Inc. A complete visual control system offering foreign currency rates has been introduced by Magna Visual, Inc., St. Louis. The board shown in the accompanying photo is on a wall in a busy traffic area adjacent to the currency exchange de partment of Clayton (M o.) Bank. As late figures are received, they are post ed on the board with magnetic letters and numbers. Bank personnel are able to refer to the board from their desks and answer questions from customers throughout the day. For details and a free 32-page catalog of magnetic visual control systems, write: John Winkler, Magna Visual, Ine., 1200 North Rock Hill Road, St. Louis, MO 63124. LARGEST IN MICHIGAN • Meilink Bank Equipment. The M D -350 stainless steel vault door has been unveiled by Meilink Bank Equip ment, Toledo, O. All parts of the door, including bolts, are of stainless and the door features a 3/2-inch attack-resistant monolithic slab throughout and twoway bolt action on both door edges. The M D-350 has a 36-inch clear open ing, a floor-mounted doorstop and a daylock feature which eliminates the possibility of personnel being locked in the vault. Write: Meilink Bank Equip ment, 3100 Hill Avenue, Toledo, OH 43607. • R-W ay Furniture Co. “The Crestw ood Collection,” a full-color catalog of contemporary office groupings, seating and their features, is available from R-Way Furniture Co., Sheboygan, Wis. The collection combines solid walnut and matched walnut veneers with ex truded aluminum inlays and walnut, olive ash burl or black vinyl tops. As a complement, R-W ay has included a wide selection of coordinated executive, secretarial and lounge seating. Write: R-W ay Furniture Co.. 740 South Com merce Street, Sheboygan, W I 53081. • Brandt, Inc. A newly designed 10key calculator keyboard and digital audit display are features of the new Model 570 Electronic Cashier from Brandt, Inc., Watertown, Wis. The unit is available with a variety of optional systems for coin delivery. W hen the NATIONAL BANK OF DETROIT assets over 7 billion dollars F e a tu re d in th e " C re s tw o o d C o lle c tio n " c a ta lo g o f R -W a y th ese Member Federal Deposit Insurance Corporation 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis w ith F u rn itu re C o ., S h e b o y g a n , W is ., a r e fu rn is h in g s: b la c k fe re n c e v in y l desk c re d e n z a , to p w ith cludes c o o rd in a te d lo u n g e s e a tin g . co n feren ce (b a c k g ro u n d ) w a ln u t to p . e x e c u tiv e , and C a ta lo g s e c re ta ria l desk con in and MID-CONTINENT BANKER for July, 1976 As a bank officer or director you have to worry about how well your liability coverage fits The public and the stockholders have their eyes on you, and suing is in style. The courts have broadened the grounds, and it’s more difficult to tell what might be construed later as imprudence or negligence. Even innocent directors can never be sure that they, aren’t exposed. That’s why it’s important to imagine what could happen and compare coverages—the stipulations in the application, the definition of “wrongful act,” the wording of the exclu sions—as well as dollar limits and premium costs. You’ll find that Financial Insurance Serv ice, Inc., can give you more reasons to feel comfortable and secure—especially in the role of innocent director. For instance, your legal costs could be covered in case of a lawsuit as well as the amount of any unfavor able judgment. We are the professionals who know the insurance that banks need. Dealing only with the highest-rated insurance companies, we can handle any risk, provide any service. Our field force of highly trained specialists serves banks—and only banks—in 25 states. They’ll be happy to explain the advantages of our directors’ and officers’ liability insur ance or answer your questions about any other kind of bank insurance. Or call or write today for our free booklet, The Risks That Take Bankers. It’s designed to help you avoid losing your shirt. FINANCIAL INSURANCE SE R V IC E , INC. 2 2 0 0 EAST DEVON AVENUE • D E S PLAINES, ILLINOIS 6 0 0 1 6 • 3 1 2 / 2 0 7 - 4 6 6 0 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 EFTS (Electronic Funds Transfer Systems) Firm Predicts EFT Development Rise, Sees Public Acceptance as Big Hurdle o f e f t will in crease in the next few years, but the biggest hurdle it will face is in gaining public acceptance. Those are two major conclusions reached in “ Trends in Electronic Funds Transfer,” a 20-page booklet from Peat, Marwick, Mitchell & Co. (P M M ), New York City. The publication pre sents a detailed examination of prin cipal factors affecting development and direction of EFT and outlines E FT ’s probable impact on financial institu tions, retailers, consumers, the data processing industry and auditing prac tices. The report’s opening section deline ates the present status of four EFT systems: automated clearing houses (A C H s), automated teller machines (A T M s), point-of-sale (PO S) termi nals and automatic telephone pay ments. Advantages and disadvantages of each of the four systems are examined from the viewpoints of suppliers of the services— financial institutions— and the users— retailers, employers and consumers. The conclusion reached in the first chapter is that public accept ance of E FT is the number-one prob lem to be overcome. Once that is solved, the booklet points out, “ other issues, whether arising from legal or technological sources, will be resolved.” W hy has acceptance of EFT been so slow to com e? The report points to two causes. The first is psychological; consumers resist change, they fear be ing treated like a number, thus losing their identities. The second problem is loss of float, accessibility of an in dividual’s financial records by outsiders and unresolved legal issues. Education and compromise are seen as solutions to the problem by PMM. But, the CPA firm says, due to the steadily increasing burdens o f paper handling and operating costs, many facets of EFT will becom e common in the next five to seven years. E FT ’s importance to auditors, retail ers and the data processing industry is outlined in the ensuing three sec tions of “Trends in Electronic Funds Transfer.” Auditors must become involved in evelopm ent D 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the design of EFT systems if efficient and effective auditing are to be possi ble, the booklet maintains. Retailers, it says, won’t be leaders in the move to EFT and the savings they will realize will be dependent on what inducements are offered by banks. EFT will reduce the number of checks retailers will be asked to cash, but bad-check losses won’t be eliminat ed unless all check cashing is done away with at the store level. PMM re ports that “ a significantly lower volume of checks may still result in the same dollar level of bad-check losses.” The data processing industry will be presented with problems and opportu nities. There presently are few EDP professionals with an understanding of E FT ’s technical issues, but, the booklet says, data processing will grow with EFT. Over the next five or 10 years, there will be a demand for data pro cessing specialists, equipment and communications systems. The final section of “ Trends in Elec tronic Funds Transfer” is based on in terviews made in St. Joseph, Mo., and is a case history treatment of the com munity’s attitudes toward EFT. St. Joseph, PMM indicates, has the physi cal and social characteristics of a small town combined with a financial and in dustrial community like that of a large city. Interviewers found many instances in which strategic planning for EFTservice development could be beneficial to banks, retailers and commerce. An aggressive policy, it is reasoned, might give a competitive edge to the bank that adopts it. But, PMM concluded, St. Joseph is a conservative community and most businessmen there probably would adopt a conservative attitude toward installation or acceptance of electronic banking services, especially since so many questions about it re main to be answered. * * Baynes, Dissmeyer Are Elected To Top Posts in NACHA H. L. "Ted Baynes, senior vice president, United Virginia Bankshares, Inc., Richmond, has been named presi dent of the National Automated Clear ing House Association (N A C H A ), which is headquartered in Washing ton, D. C. Mr. Baynes also is an incorporating director and executive c o m m it t e e member of the Virginia ACH Associ ation and is chairman of the ABA’s Operations and Automation Division. Elected as NACH A vice president was Virgil M. Dissmeyer, senior vice president, N o r t h w e s t e r n National, Minneapolis. He represents the Upper Midwest A CH Association and last year was chairman of N A C H A ’s Sys tems/ Operations Committee. Named chairman of NACFIA’s three working committees were James L, Miller, vice president, National Bank of Detroit, representing the M ichi gan ACH — Education/Communications Committee; George E. Lowther, vice president, Wells Fargo Bank, San Fran cisco, representing the California ACPI — Legal/Legislative Committee; and R. G. McElhatton, vice president, Cleveland Trust, representing the MidAmerica Automated Payments System — Systems/Operations Committee. Francis P. Curran, director, ABA Payments System Planning, continues as N ACH A secretary/treasurer. Those six individuals constitute the NACH A Executive Committee. State-Wide Check Guarantees Announced by Bank in Arkansas NO RTH L ITTLE ROCK, ARK.— Terence E. Renaud, president and chairman, Twin City Bank, has an nounced what he says is the first check guarantee system in this state. The Twin City Banking Card allows the bank’s customers to have their checks guaranteed by participating merchants in amounts up to $100. In addition, customers can use the cards for identification or to withdraw as much as $100 from the bank’s All DayAll Night Banker ATM . Cash with drawals also may be made at any par ticipating Moneycard bank in the state. "You ought to be in pictures” was the introductory slogan used in mar keting the program. Special Polaroid identification cameras turn out complete cards, including plastic coating. In conjunction with the card’s intro duction, Twin City Bank also has an nounced installation of the city’s first ATM at the bank’s Lakewood Office at 4130 JFK. MID-CONTINENT BANKER for July, 1976 Central National Bank is now offering seven automated financial systems designed to help you fine tune your management controls, evaluate the performance and profitability of your departments, and spot problems, opportunities and trends early enough to do something about them. These systems give you crisply-reported data on your operations that you can interpret easily and apply quickly. They represent the most advanced state of the data processing art, are fully integrated and will interface with the next-step programs we are currently developing. The seven new Central A utom ated Financial Systems are: O n -L in e Savings C ertificates of Deposit D em and Deposit G eneral Ledger Installm ent Loan C om m ercial Loan Payroll Processing We would welcome the opportunity to discuss these systems with you and to answer any questions you or your operations officers may have. Call your Central Automated Financial Systems Representative at (312)443-7200. CENTRAL AUTOMATED FINANCIAL SYSTEMS 4 DIVISION OF CENTRAL NATIONAL BANK 120 South LaSalle Street, Chicago, Illinois 60603 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 29 NEWS ROUNDUP New s From Around the Nation Interest Withholding Hit The ABA has gone on record as opposing a congression al proposal to withhold federal income taxes on bank de posit interest and corporate dividend income. The measure is not needed, an ABA spokesman said, and its passage would create inequities and hardships for small savers. In addition, it would harm the economy. The ABA said the withholding tax would result in an unfair acceleration of many individuals’ tax payments and would come from a previously untapped source: individ uals’ savings, rather than wages or salary. The ABA’s opposition to tax withholding on interest and dividends at their source is based on four points: The need has not been demonstrated, since almost all individuals report their interest income on their tax forms; it will be burdensome and inequitable for taxpayers, since much of it would end up as refunds and those not required to file tax forms would have to do so to claim the refunds; it would transform banks into tax collectors; and it would re move as much as $10 billion from the nation’s capital sup ply. Similar proposals have been rejected in Congress on at least two previous occasions, the ABA said. Fed Finalizes Antiredlining Rules The Fed has issued final regulations to implement its antiredlining statute, which went into effect June 28. The statute, called the Home Mortgage Disclosure Act of 1975, requires lenders to disclose annually by census tract where and how many mortgage loans they make. The initial disclosure must be made by September 30 for the previous year’s loans. The regulation affects approximately 4,400 banks, 3,000 S&Ls, 470 mutual savings banks and 600 credit unions, all with assets of more than $10 million and with principal offices in Standard Metropolitan Statistical areas. All fi nancial institutions making mortgage loans on one- to fourfamily residences are covered. Chicago Pushes Off-Premises ATM Bill A proposal to permit Chicago banks to set up an unlim ited number of off-premise electronic banking machines has been introduced in the city council. The proposal would also permit banks to establish up to six loan pro duction offices within city limits. The city would be paid one-tenth of one cent for each transaction made on the devices. Sponsoring banks would collect the tax for the city. The proposal runs contrary to Illinois’ anti-branching regulation and is being proposed on the strength of homerule power granted municipalities in Illinois under the 1970 state constitution. If the proposal is enacted, a court fight is expected. 30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Overdraft Avoidance Plan Endorsed The ABA has endorsed a Fed proposal to permit bank customers to avoid checking account overdrafts via pre arranged transfers from their savings accounts. Under terms of the proposal, bank depositors maintain ing savings and checking accounts at the same institution would be permitted to arrange with the bank to have specified amounts of funds automatically transferred from savings to checking or to the bank itself, whenever the de mand account is overdrawn or the balance falls below an agreed-upon minimum. The Fed would require amounts transferred to be in multiples of $100 and the bank customer would forfeit an amount at least equal to 30 days’ interest on the trans ferred amount. The ABA took issue with the $100 amount, stating the figure should be flexible and should be set by individual banks based on their market experience. The association also stated the amount of interest for feited should be left to the discretion of the banks. A similar proposal by the FD IC was also endorsed. CUs Mull Credit Card Entry The Credit Union National Association (C U N A ) is pre paring to flex its muscles in both the bank and S&L areas by offering competing services, such as charge cards and home mortgages. In the charge card area, CUs can charge only 12% in terest, thus, they would have to make an annual charge for a card or compute interest from date of purchase in stead of date of billing, a CUNA spokesman said. CU’s answer to bank checking accounts is its “ share draft system,’’ which enables a CU member to write a draft on his account to pay a bill in exchange for forfeit ing interest on the amount of the draft for one quarter. The CUNA spokesman claims banks and thrifts are in fringing on CU territory by courting individual depositors, thus, the CUs are fighting back by invading bank and S&L territory. CofC To Make Guidelines Public? The Comptroller of the Currency has moved to make public the guidelines used to approve new national bank charters, as well as other things. This would be done by issuing written policy statements relating to the granting of bank charters and branches and the clearance of mergers, subsidiaries, relocations, conver sions and changes in capital. The Comptroller said the proposed policy statements should provide the banking industry and the public “ with a better understanding of the bases for decisions made by this office.’’ The proposal was made at the recommendation of an accounting firm that has completed a study of the C om p troller’s office. MID-CONTINENT BANKER for July, 1976 Charles Rice, a banker's banker. "«St Marvin Bray Lee Daniel Charles Rice heads our correspondent banking department. He’s one of five who can turn on the expertise, facilities and resources of Bank of Oklahoma for you. Call him, and find out how your financial needs fit into our capabilities —fast. (9 1 8 ) 5 8 4 -3 4 1 1 Charles M cNam ara Bill Hellen BANK OF OKLAHOMA P.O. Box 2300 / Tulsa, Oklahoma 74192 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOW TO AVOID SLEEPLESS NIGHTS IN THE BOND MARKET. “I United Missouri introduced its bond Investment Accounting System in 1972. Since then, we’ve added something. Now, in addition to your IAS report, we offer you a review of the report —an analysis o f your bond portfolio with recommendations from our skilled bank portfolio specialists. So call us or send the coupon. It doesn’t cost anything extra. And it might save you some restless nights. Pat Thom pson, Vice President United Missouri Bank o f Kansas City, N.A. P O. Box 226, Kansas City, Missouri 64H1 (816) 221-6800 1 would like someone to contact me about: □ Bond Investment Accounting Systems □ Bond Portfolio Analysis D Both o f the above I ! 1 1 Name__________ _____________________________________________ j Bank-------- -— _--------------------------------------------- .Title.__________ I Address____________________________________________________ ■ City--------------------------------------State______________________ Zip. j Telephone____________________________________________ __ L.___________________________ ______________ J f I I I J UNITED MISSOURI BANK OF KANSAS CITY, N .A . 10th and Grand • Kansas City, Missouri 64141 • 816-221-6800 32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 ON THE COVER: Proper planning is essential in building a marketing factor into a new banking facility. The planning phase for a new project, such as Mercantile Bank, St. Louis County, Mo., might include (clockwise, from upper left): a site location study and evaluation; a 15-year projected growth analysis based on historical trends; a traffic analysis to determine congestion levels in a drive-up facility and the site’s capacity for future growth; and a market area profile, a valuable tool in analyzing population characteristics, income distribution, market potential and competitive im pact. The planning program for Mercantile Bank was handled by Bank Building Corp., St. Louis. The same firm subsequently designed and is presently man aging the construction for the new project. Carefully Planned Building Marketability' Can Benefit Bank for Many Years BANK’ S building is one of its most prominent marketing tools. It is highly visible to the public and the im pression it makes can have a marked effect on consumer acceptance of the institution. However, the visual appearance of a building isn’t the only factor to be considered by bankers contemplating a new structure— be it a main office, drive-up or branch— according to the people at Bank Building Corp., St. Louis. “ Since a bank building is a major in vestment and an important marketing tool, it makes sense to plan the build ing for maximum efficiency and profit ability,” says Roger W . Grimshaw, sales manager for Bank Building’s Cen tral Division. “ Proper planning before A By JIM FABIAN Associate Editor the design phase can help reduce the risk of costly mistakes.” For instance, a building must be properly located or its marketing op portunity will be reduced, says Mr. Grimshaw. “ No matter how attractive a building is, no matter how efficiently it is laid out, no matter where it is p o sitioned on the site, if it is situated in an area of the community that has poor growth potential or if it is situated at an inconvenient location, these factors will tend to detract from the bank’s image and performance as measured by profit contribution.” Other factors, such as ingress and LEFT: C o m p u te r-a id e d p la n n in g m a te ria ls p r o v id e v a lu a b le in fo rm a tio n on w h ic h a b a n k clien t can m a k e decisions. W o rk in g w ith d e m o g ra p h ic s a n d p o te n tia l g r a p h a re Fred H. C o w e n (I.), system s a n d p ro ce d u res a n a ly s t, a n d Sam R. P a tte rs o n , d ire c to r o f in fo rm a tio n system s a t B ank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis egress, determine a facility’s market ability, he says. A busy intersection might appear to be an ideal location for a drive-up facility. But what if traffic makes it difficult for customers to drive on and off the site? These fac tors must be thoroughly investigated before architectural design and con struction arei attempted. Mr. Grimshaw’s views are supported by Peter J. Bruck, consultant services manager for the Central Division, and Glenn La Vine, director of architec tural technology. All three agree that good site plan ning and development can result in long-lasting benefits for a bank, benefits that will serve to make the bank attrac tive as well as convenient to customers throughout the time the building is B u ild in g C o rp ., St. Louis. RIG H T: C huck Jost (re a r ), e x e c u tiv e arch itect a t B ank B u ild in g , r e v ie w s p ro ject m a te r ia ls p ro d u ced w ith co m p u ter system w ith G len n La V in e , d ire c to r o f a rc h ite c tu ra l te c h n o lo g y , W a lte r E. Y e sb erg (I.), d irecto r of technical services fo r BBC F in a n c ia l R esearch A ssociates, a n d P e te r J. Bruck (c.), co n su ltan t services m a n a g e r fo r B ank B u ild in g C o rp ., r e v ie w m a r ket stu d y results w ith client. Results w e r e o b ta in e d w ith a id o f co m p u te r te c h n o lo g y . utilized. “ Bank Building specializes in plan ning, designing and building financial institutions and we believe that predesign analysis and planning are essen tial to an effective building program," Mr. Griinshaw says. The planning phase includes several important stages, he continues. “ First, we must find out where the bank is going, what its goals are, what its special problems and opportunities are, as outlined by bank management. “ Then we must obtain facts about the particular client’s bank and locale. This includes population growth pro jections, income levels, competition, employee work load, bank services preferences, etc. “ Then w e apply what we know about electronic funds transfer and oth er trends, financing, proposed changes in banking regulations and the overall economic outlook. “ All of these factors, combined, pro vide the client with a thorough evalua tion of his situation and his anticipated long-range needs.” Mr. La Vine points to his firm’s use of computer technology as an aid in project planning. “ The computer makes for a good be ginning," he says, “ because it can pro cess project information impersonally and lead the planner in making broad context decisions. The speed of the computer makes predesign analysis ser vices affordable even for smaller banks. If these projections were done manual ly, the cost would be prohibitive. This aid can prove to be decisive in making planning decisions.” W hen planning a drive-up installa tion, for example, Bank Building’s pro grams can furnish information on esti mated transaction times, the entire 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis time necessary for a customer to get through the facility, the number of tell ers needed to handle the expected number of customers and even the number of potential customers that might be lost due to facility limita tions. Thus, the banker can be shown the present and future number of drive-up lanes needed to provide both maximum customer service and opera tion efficiency. But a computer can develop only what it has been programmed to han dle, Mr. Grimshaw says. Thus, it is critical that the specialist have access to the latest demographic data, which must be obtained from various sources, including the most recent U. S. census data, updated annually. But— most im portant— is the information obtained through interviews with the client about his bank’s customers and trade area. No one has better knowledge in this area than the banker himself, Mr. Grimshaw says. Demographic data includes projec tions on population, age, sex, median income, home values and educational levels o f those residing in the identified market area of a new project. These projections must be sufficiently far sighted to enable the banker to deter mine his market share goals for the fu ture so expansion into new facilities can be accomplished in an orderly manner. The combined input of the banker and Bank Building provides a sound basis for realistic projections, Mr. Grimshaw says. “ It’s most important for a banker to have a realistic picture of the share of the market he wants to have at the end of a given planning period,” Mr. Brack says. “ Carrying the projections out with the aid of a computer enables the banker to receive all the data he needs from which to plan departmental goals and objectives that make sense.” Bank Building’s planners and design ers show the banker what his building will look like through visuals, Mr. La Vine says, but the computer can quickly and economically show him how the bank will appear in relation to other buildings in the area when it is completed. This information can be extremely useful to the banker, for it, too, can have a direct bearing on the market potential of the project, Mr. Bruck says. Because there is often a need for more in-depth research during the planning phase of a project, Bank Building has formed Financial Re search Associates, a separate division providing comprehensive consulting services on an a la carte basis. Services include the study and evaluation of existing facilities, economic feasibility studies including impact on earnings and return on investment, studies to determine and evaluate financing alter natives and preparation of new charter and branch applications. “ More and more of our clients are realizing the value and, indeed, the necessity of in-depth analysis of their situation, especially as they look ahead to a long-range expansion program,” Mr. Grimshaw says. “Often, bankers come to us to seek out answers, alternatives and priority recommendations that will aid them in making business decisions,” he contin ues. “ These data are needed in ad vance o f major architectural design considerations to assure that a project starts on the right foot. Anyone who has gone through the experience of last-minute design changes can testify to the costly delays and increased ex penditures that usually result." Often, Mr. Bruck says, projected growth for a bank dictates an expan sion of the building after a period of years. Proper planning can ensure that provisions are made for future con struction when the building is first con structed. For instance, the building can be framed to take additional floors, space can be allocated for automatic teller machines and conduits can be in stalled for future drive-up units. The vault can be placed away from the (Continued on page 68) MID-CONTINENT BANKER for July, 1976 To p ro m o te its citizens band r a d io p re m iu m p r o g r a m , First o f A t la n t a held a CB r a d io co f fe e b re a k fo r th e b e n e fit o f th e H e a rt A s so cia tio n la s t V a le n tin e 's D a y . B ank em p lo y e e s con ta c te d n e a rb y d riv e rs v ia CB r a d io , in v itin g th e m to stop by fo r fre e refre sh m en ts an d m a k e d o n a tio n s to th e H e a r t A s so ciatio n . B ank gave fre e CB ra d io s to custom ers ta k in g out in s ta llm e n t lo a n s a n d m a k in g p a y m e n ts th ro u g h First o f A t la n t a p e rs o n a l checking accounts. Variety of Premiums Keeps Money Flowing Into Bank, S&L Vaults By JIM FABIAN Associate Editor LTH O U G H no one premium item is the undisputed runaway best seller in this bicentennial year, a num ber of items are proving to be excel lent motivators to bring new money into financial institutions. Here’s proof: • A savings and loan netted more than $7 million in new deposits over an eight-week period with live plants and copperware items. • A Cincinnati bank moved 10,000 stylized tee-shirts in six days, most of which represented deposits of $100 or more. • A $44-million bank in Tennessee attracted $350,000 through the use of a series of watercolor prints by a local artist. • $3.8 million in installment loans resulted from a CB radio promotion in Atlanta. • More than 10,000 cameras were moved by a Chicago bank, represent ing about $3 million in deposits. Following are the details of the vari ous promotions. Taking advantage of the spring planting season, Carondelet Savings, St. Louis, offered four major categories of plants, as well as 16 pieces of cop perware, to its customers. Gary Strong, marketing officer, said the promotion A had to be cut short because it was bringing in too much new money! During the eight-week promotion, 500 new accounts were opened, amounting to more than $7 million in new funds. Plants accounted for about half of the premiums moved. To qualify for a premium, customers were required to deposit at least $200, after which they could purchase one plant for $3 and buy additional plants for $6 each. Selection could be made from potted plants, hanging plants, outdoor landscaping plants or small trees. If they chose copperware, cus tomers could purchase items at re duced prices, which ranged from a few dollars to close to $30 per item. Customers choosing to deposit $1,000 or more had the option of purchasing the first plant for $1 and additional plants for $5 each. Anyone depositing $5,000 was entitled to two free plants and additional plants at $4 each. Mr. Strong said the plants were of substantial size, coming in 10"-14" pots and ordinarily retailing for as much as $18. Hanging plants were the most popu lar and half of the nursery stock at each of the S&L’s offices consisted of hanging varieties. From 60-150 plants were kept on hand at each office (d e pending on the space available) and MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the nursery firm supplying the plants made deliveries three times a week to replenish the stock and weed out any plants that were not thriving. At the end of the promotion, the re maining plants were liquidated at be low cost to S&L employees. Carondelet Savings sponsors three or four premium promotions annually. Mr. Strong said the popularity of plants was second only to watches and cook ing ware. Lincoln Bank, Ardmore, Okla., also took advantage of customers’ green thumbs, but it didn’t offer plants— it offered planters! Customers could qualify for free hanging planters by depositing $250 or more, depending on which of the six planters being offered was chosen. Other than a basic hanging basket, the bank offered sweet potato pots, w ood tub/m acrame planters in two sizes, red cedar planters and rattan baskets. The latter was the only item that could not be obtained free, but it could be purchased for $3.95 with a deposit of $5,000 or more. According to E. Wilson Roberts, vice president, the six-week promotion resulted in 111 new accounts repre senting $273,000, and an equal num ber of add-on deposits, representing al most $200,000 more. Mr. Roberts said the promotion was successful because it enabled the bank to acquire new money at a cost of less than 1%. At the time the promotion be gan, the bank’s deposits stood at $13 million. At the present time, deposits are more than $16 million. (The plant er promotion took place last summer.) He said premiums are used from time to time to differentiate the bank in the market place and they constitute an important part of the bank’s market ing program. Timing in the use of a topical premi um is all-important. Lincoln Bank of fered hanging planters shortly before they had become popular enough to be stocked extensively by stores. The premium used by Central Trust, Cin cinnati, has been stocked in stores for years, but not in the form the bank of fered. Tee-shirts was the item, but not ordinary tee-shirts! Central Trust’s tee-shirts were im- 35 printed with the bank’s Day and Night Bank owl symbol, silk-screened in five colors. The owl is the symbol of Cen tral Trust’s automated tellers and is now used as identification for the net work of ATMs operating in Central Trust’s trade area. Imprinted tee-shirts are a current fad on the fashion scene, according to Jeanne W imberg at Central Trust. The bank took advantage of the fad by printing up 10,000 silk-screened teeshirts and offered them to customers at no cost if they deposited $100 or more to a savings account. Customers and non-customers could also purchase the shirts for $2 each. The supply was exhausted in six working days. A variety of media was used to pro mote the shirts, according to Miss Wimberg. TV commercials and news paper ads featured a local radio per sonality and his family, each clad in one of the shirts (which came in a full range of adults’ and children’s sizes). Also, posters showing the tee-shirtclad family were displayed in all bank offices and shirts of contrasting sizes were suspended from lobby ceilings on hangers bearing the faces of men, women and children. A side benefit of the promotion: Central Trust has up to 10,000 adver tisements for its Day and Night Bank service walking the streets of Cincin nati! People not only rush to get clothing with a bank’s logo imprinted on it, they rush to get watercolor prints of local scenes, especially if the scenes depict buildings that no longer exist. That’s the word from William B. Ewing, executive vice president at Cleveland (Tenn.) National. Not only A p p e a lin g f a m ily o f lo cal r a d io p e rs o n a l ity m o d e le d o w l te e shirts fo r p re m iu m p ro m o tio n o f C e n tra l T ru s t, C in c in n a t i. Shirts w e re g iv e n a w a y to custom ers m a k in g $100 de posits. 1 0 ,0 0 0 shirts w e r e m o v e d in six d a y s . O w l is logo fo r b a n k 's A T M ser vice. did the bank score well with the pub lic in the good will department, it net ted some $350,000 in new funds in the process! A series of 10 scenes was commis sioned by the bank, several of which depicted buildings that no longer ex ist. The local artist creating the se ries drew heavily on old photos. The final scene was of Cleveland National’s building, erected in 1855. Prints of the scenes were given to customers depositing $250 or more to existing checking or savings accounts or opening new accounts with $500 or more. Issuance of the series of watercolor prints was staggered and the bank published large newspaper ads This w a te rc o lo r p rin t o f b u ild in g housing C l e v e l a n d ( T e n n .) N a tio n a l w a s la s t in series o f 10 local scenes d is trib u te d by bank to custom ers m a k in g d ep osits. En tir e series w a s 'b e s t s e lle r,' som e issues o f 5 0 0 p rints d is a p p e a r ing in less th a n t w o hours! B a n k b u ild in g w as constructed 1855. in illustrating each scene and announcing its distribution date as each became ready. Five-hundred prints of each scene were printed and each print soon com manded a price of from $50 to $150 in the collector’s market, according to Mr. Ewing. Distribution of the prints has been 100%, and the bank had to rely on its friends to scrape up a set for its own files. The bank framed five sets of the prints and presented them to local dig nitaries as well as to individuals inti mately associated with the topics of the prints. He said that the prints were best sellers. Two issues were completely distributed within two hours of their being offered, others disappeared with in a few days. Mr. Ewing said about 400 new ac counts were opened during the promo tion and 95% of these accounts have re mained with the bank. Another bank to take advantage of a current fad was First National, At lanta, which distributed 760 citizenband (C B ) radios to individuals taking out $3.81 million in installment loans. To qualify for the radios, customers had to borrow $3,500 or more for periods of 36 months or more and their monthly payments had to be deducted from their personal checking accounts. Auto leases made through the bank’s Atlanta Leasing Center also qualified those taking the leases for free radios. Due to the checking account quali fication, some 200 new accounts were opened by those desiring the radios, according to Louise B. Hanlong, as(Continued. on page 68) 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 LEFT: This is o v e ra ll v ie w o f B ritish s tro n g h o ld in D e tro it scale m o d e l o f Fort L erno ult, d u rin g A m e ric a n R e v o lu tio n . M o d e l w a s p re s e n te d to city as g ift fro m D e tro it B a n k. R IG HT: This close-up lo o k at p a lis a d e d fo r t sho w s m in ia tu re v e r sions o f so ld iers, settlers a n d In d ia n s w h o w e r e p a r t o f life a t f o r t 2 0 0 y e a rs a g o . Figures a re o n ly 5 / 1 6 inch hig h . A Bicentennial Project Historic Fort Reconstructed As Scale Model and Given By Detroit Bank to City ICK UP almost any textbook on early American history, and it prob ably will contain lots of information about Lexington, Concord, Bunker Hill, Valley Forge and Yorktown, historic landmarks most frequently associated with the American Revolution. Oftenoverlooked is Detroit and the impor tant role it played in the colonial strug gle for independence. Even less well known in the “ fabric” of American his tory is Fort Lernoult— the stronghold built in Detroit by the British in 1779 to defend against possible attacks from American troops and militia led by P Lieutenant Colonel George Rogers Clark and Colonel Daniel Brodhead. This fort, by the way, remained under British rule for 13 years after the end of the Revolutionary War— until July 11, 1796, when the American flag was raised over it for the first time. Thus, more than a decade after the ces sation of hostilities, Detroit and the rest of Michigan became American. For Detroit Bank, there’s more than a passing interest in Fort Lernoult and the American Revolution. As Michi gan’s oldest bank, it has been linked to the state’s growth and progress for M ir iia tu r e h a rb o r a d d s to ch a rm a n d a u th e n tic ity o f scale m o d el o f Fort Lerno ult a n d v illa g e o f D e tro it as th e y a p p e a r e d in 1779. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This h o rs e -d ra w n w a g o n w a s h eld w ith tw e e z ers a n d v ie w e d th ro u g h m a g n ify in g glass w h ile it w a s b e in g a s s em b led a n d p a in te d . It is o n ly one o f h u n d red s o f objects t h a t scale m o d el o f Fort L erno ult. g iv e life to more than 125 years, but it wasn’t until the spring of 1962, when construction was going on for the Detroit Bank & Trust Building, that the bank’s rela tionship to American history was un covered. During excavations, artifacts from a portion of the southwest bastion of Fort Lernoult were uncovered at Fort Street near Washington Boule vard. The Detroit Bank & Trust Build ing now stands on that location, which has been officially designated a regis tered historic site by the Michigan His torical Commission. This accident of history provided the opportunity to cre ate a bicentennial program of benefit to the bank and its public for both to day and the years to come. As one of its major bicentennial proj ects, Detroit Bank had Fort Lernoult and the palisaded village of Detroit re built . . . this time in miniature. Re construction of this historic fort was done for the bank by Victor H ogg of Williamston, Mich., a nationally recog nized master of the art of recreating historic landmarks. This past Novem ber, the model of the fort was given to the city of Detroit at a bank-hosted civic reception. Detroit’s Fort W ayne Military Muse um— where the diorama of Fort Ler noult will be displayed as part of an ex hibit depicting Detroit’s role in the American Revolutionary War 200 years ago— is on the national register o f his- 37 toric sites. In addition, restoration of Fort Wayne lias been designated as one of Detroit’s principal bicentennial proj ects by the Detroit Bicentennial Com mission. It’s also recognized for its im portance by both the National and the Michigan American Revolution Bicen tennial commissions. Explaining details of the model, Charles J. Snell, the bank’s vice presi dent of marketing and a member of the Michigan Bicentennial Commission and chairman of its Heritage Committee, pointed out: “ Construction of the model was preceded by months of painstaking research to make it as au thentic as possible, and Dr. Philip Ma- Pictured at recep tio n at w h ich D e tro it B ank p re s e n te d scale m o d el o f Fort L erno ult to city of D e tro it a re (I. to r.): S o lan W eeks, exec, d ir., D e tro it H is to ric a l M u seu m ; C. Boyd Stockm e y e r, ch. o f b a n k ; Joyce G a r re tt, exec, d ir., D e tro it B icen ten n ial C o m m ission; M a lc o lm D a d e , exec. asst, to Ernest B ro w n e D e tro it M a y o r Jr., m on C ouncil; a n d m em ber C o le m a n of Young; D e tro it's Com R o d key C r a ig h e a d , pres, o f bank. son of Wayne State University served as historical consultant to the project. “ Literally hundreds o f figures 5 /1 6 inch-high were painstakingly handpainted to create a scene of soldiers, townspeople, Indians, tradesmen and animals at the time of the Revolution. The figures are so small that a magni fying glass had to be used while each one was being painted. The scale is 20 feet to the inch.” The cannons that defend this pres ent-day Fort Lernoult are tiny replicas of the 12-pounders that defended De troit so long ago. These were created from special molds, which were handcarved for this model only. The can nons are so tiny that they had to be held by a pair of tweezers while they were being painted in appropriate “military” colors used in the past. The craftsman or artisan who creates an exhibit or scale model “from scratch” must draw on a variety of re sources to create objects resembling their reality-counterparts using mate rials which, in their natural state, bear no resemblance to the final product. This diorama of Lort Lernoult is filled with such innovations. 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis For example, a Williamston hard ware store was the source of the more than 4,000 nails that were used to create the palisade and stockade o f this exhibit. Robert Fleck fashioned tiny trees from bits of weeds. For ladders, Victor H ogg and his associates used nylon screen. Picket fences were con structed out of corn husks taken from one of the many nearby corn fields, and the split-rail fences were fashioned from black thread by Mrs. Hogg. The “ earthen” ramparts of the fort and the surrounding contours were mechanically shaped from a single block o f polyurethane foam and then sanded to final shape by hand, a task involving hours of work. Before this work could begin, Mr. H ogg developed a contour map showing the surface topography of this portion of Detroit at the time Fort Lernoult was constructed by the British in 1779. Each of the more than 100 buildings in the exhibit— after careful research— was drawn by hand, photographically reduced in size and then printed on cardboard. They were then cut out, assembled, painted and glued into posi tion. A number o f reference sources were used to determine final appear ance and location. A similar photographic printing pro cess was utilized by Mr. H ogg to create the hundreds of soldiers, Indians, towns people, tradesmen and animals that give “life” to this diorama. However, the model is no small dis play identified as a gift from Detroit Bank. 1 he overall size o f the recon structed fort is five by eight feet, and it will be a significant, permanent ex hibit at the Lort Wayne Military Mu seum for hundreds of thousands of visi tors to veiw in the years to come. Evaluation o f the success of a com munity relations project of this sort can be accomplished using a number of criteria such as: its acceptance as a major activity by state, county and city officials; the degree of importance ac corded it by national, state and local bi centennial officials; media coverage giv en the activity and its ability to gen erate the interest and approval of the general public. At the bank-hosted civic reception, when the fort was presented to the city, more than 450 guests attended. These included important state, county and local officials, members of the state and city bicentennial commissions, univer sity historians, leading business and community leaders, along with numer ous members of the media. Their at tendance attested to its acceptance. Local media treated it significantly. Detroit’s two daily newspapers— The Detroit News and The Detroit Free Press— carried full-page photographic (Continued on page 69) Year-Long Anniversary Program At Detroit Bank Wins Award From Public Relations Group D E TR O IT— Detroit Bank has been named winner of the Public Relations Society of America’s (PRSA) Silver An vil Award for the most outstanding public relations program during 1975 in the special events and observances (business) category. The announcement was made at the society’s 32nd annual Silver Anvil awards banquet in Chica goThe award was given Detroit Bank in recognition of the year-long program developed by retail marketing to cele brate the bank’s 125th anniversary. The latter began in March, 1974, and ended in 1975. Its central theme was the his tory of Detroit banking since 1849. According to Charles j. Snell, vice president and officer in charge of retail marketing, the comprehensive program involved civic leaders, the banking community, employees, c u s to m e r s , shareholders, the press and public at large. A hardback 300-page history of banking activities in Detroit and Michi gan was published and distributed to libraries, schools and 10,000 interested readers. In addition, receptions, exhib its, ads, special radio shows and em ployee publications were incorporated into the program to repeat and em phasize Detroit Bank’s continuous ser vice to its customers and community since 1849. The PRSA’s Silver Anvil awards are described as the most prestigious na tional honors presented to PR programs in America that demonstrate profes sional performance and use sound PR objectives and philosophy. In addition, they must meet the highest standards of production, presentation execution and results, as well as make an impor tant contribution to the profession. A c cep tin g Public R e latio n s Society o f A m e ric a 's Silver A n v il A w a rd fo r D e tro it B ank a re C h a rle s J. Snell (r.), v .p . & officer in c h a rg e , r e t a il m a r k e tin g , a n d Jack E. H o u sm an (c.), a.c. & m g r., p u b lic re la tio n s . M a k in g p re s e n ta tio n is R o bert O . C a rb o n i, ch. o f Silver A n v il a w a r d s p r o g r a m a n d d ir. o f co m m u n icatio n s. N o rth w e s te rn M u tu a l Life In su ran ce Co. MID-CONTINENT BANKER for July, 1976 Name-Change Promotions Strive for Uniform Identity, Progressive Public Image By JIM FABIAN, Associate Editor ROBABLY never before in the long history of banking have financial in stitutions been conducting name-change promotions at the rate they have been in the last year or two. Not long ago, 11 banks in Alabama bearing various names all assumed new and identical names (except for name of dom icile)— First Alabama Bank— in one day’s time. Late last year, the largest bank in eastern Tennessee changed its wellknown name (Hamilton National) to United American of Knoxville. Early this year the names of 12 Houston-area banks were changed to incorporate the words “ First City Bank,’ the key words of their controlling HC, First City Bancorp, of Texas. Recently, six Illinois banks scrapped the various names they had been going under for years in favor of new moni kers, all of which incorporated the words “ United Bank,” which is the name of the confederation to which they belong. Naturally, customers could be ex pected to ask the reasons for changing the name of their bank. Bank marketing people realized this and were careful to anticipate and respond to such ques tions before they could be asked. They reasoned that no bank would want its customers to becom e confused about their relationship to a renamed institu tion. Following are the events leading up to the recent name changes of an HC and an independent bank. Both pro grams were ambitious and costly, but are expected to result in a better sense of identity and more economical opera tions in the long run. First Alabama Bancshares, an HC headquartered in Montgomery, is made up of banks scattered throughout the state. It was felt by HC management that there was a tremendous budget waste in maintaining separate identities for each affiliate. A study revealed there was no economy of scale under the system of different names for each af filiate because there was duplication P among banks in the printing of forms and stationery and in developing new services. Member banks were advertising for their competitors, due to media overlap among the various markets. For in stance, the T V commercials of City Na tional, Tuscaloosa (an HC affiliate), were being seen in Selma where anoth er City National (not an affiliate) op erated in competition with Selma Na tional (an HC affiliate). To eliminate the negative factors in volved with the diverse names of af filiate banks, a committee of bank presi dents from all affiliates recommended that the new name “ First Alabama Bank of (name of c ity )” be adopted for all affiliates. They realized the con version program necessary to adopt this name would be expensive, but they also knew it would result in economies in the long run. The name-change program was placed under the direction of James K. Boyd Jr., senior vice president, market- first Alabama /Bank UNITED AMERICAN BANK Im p o r ta n t a d v e rtis in g , A la b a m a of n a m e -c h a n g e p ro m o tio n is fo rm s . At to p is lo g o fo r First B ancshares b an ks; a t b o tto m is lo g o fo r U n ite d A m e ric a n B ank, K n o x v ille , Tenn. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p a rt d es ig n o f n e w lo g o to id e n tify b a n k b u ild in g s , ing, First National, Montgomery, the H C’s lead bank. Theme for the change was “ A new name for an old friend.’ The program consisted of these basic elements: advertising, staff training, o f ficer calls, publicity, bank identification signs and printing of forms and statio nery. The overall advertising strategy was to gain fast acceptance of the new name by building an image or feeling of humanness and concern, strong capa bility in money management and fi nancial counseling, excitement and se curity and a role in the betterment of all the people in the state and for the communities in the H C’s trade areas. A two-month statewide program was formulated to utilize a coordinated campaign in TV, radio, newspaper, out door and magazines. Collateral mate rials included point-of-purchase dis plays, statement stuffers and specialty items. In TV spot scheduling, the advertis ing agency projected a 90% reach with an average frequency of 10. A satura tion of morning and evening drive times was planned for each radio station with a significant audience rating, including ethnic or cultural groups. The plan for newspapers was 70% household cover age of each metro or home country of affiliates. A 100 showing in outdoor was programed for each market. In addi tion, ads were placed in bank trade publications, state and metropolitan news magazines and the state edition of R eaders Digest. The month before the name change, illuminated signs for the various bank buildings began being erected with the new names covered by plastic covers imprinted with each bank’s former name. News releases were prepared an nouncing the new name, the reason for the change and reassuring people that in every other way their bank was the same. The magnitude of the name change was heightened by listing the names of the other banks included in the original name-change program throughout the state. On Saturday, February 1, 1975, the name change became official and the bank signs were unveiled. An intensive program was under taken to win acceptance of the name change among bank personnel in an at tempt to make staff people enthusiastic about the new name. It was felt this en thusiasm would rub off on bank cus tomers. Just before the name change, every officer in each bank was given a list of major retail and commercial customers so he could call on same and personally explain the name change and answer any questions these customers might have. Costs of the marketing program were 39 borne by affiliates on a prorated basis (based on their share of usage of var ious media in individual markets). Total cost of the promotion was $280,- paign. The date coincided with com pletion of new signage. Letters were sent to all depositors explaining the change and the reasons behind it. The 000. letters emphasized the consumer’s con Results of the effectiveness of the tinued security and pointed to new and promotion were measured in various expanded services for the future. ways. HC officials were relieved to re Bank President G. Rex Moon stressed ceive no complaints from customers that all changes were made at the who had been calling their banks by bank’s end, which meant that depositors their former names for years (some af were required to do nothing. They au filiates are more than 100 years old ). tomatically became depositors with A survey showed that general aware United American. Account numbers re ness of the H C ’s advertising in all mained the same and all items bearing media increased from 30% to 49% while the Hamilton logo would continue to the awareness of two major competitors be honored until replaced with items in the Birmingham market (for ex bearing the United American logo. ample) decreased substantially. Prior to February 1, teaser billboards Despite the fact that First Alabama’s bearing the stylish UA logo appeared market campaign for a two-month pe and on February 1 a two-page news riod focused on the name change while paper ad was published containing a competitors’ campaigns concentrated on personal message from Mr. Butcher to bank services, First Alabama reported a Knoxville and the surrounding area. A steady growth pattern in total deposits T V commercial featuring Mr. Butcher in both small and large affiliates. also appeared, with Mr. Butcher asking To test the public’s confidence in the each bank depositor to remember that newly named banks, the HC conducted “ to grow is to change, and to change a savings campaign immediately follow often is to have grown much.” He cited ing the name change and all participat the 45 years of service Hamilton Na ing affiliates registered growth. First of tional had given to Knoxville residents. Montgomery, for example, increased de “ That’s the past,” he said. “And now posits by $3 million. we are looking to the future. . . . The The name change brought economic spirit of banking that has brought us benefits in the “ paper-work” area. Con this far will carry us into the future solidation and elimination of forms has with United American Bank.” resulted in a drastic reduction in the Costwise, the largest expenditures in number of different types of forms. the name-change program involved re Standardization of size and style of sta signing the bank’s headquarters and 16 tionery, computer supplies, deposit branches. With the installation of the bags, checks, etc., has resulted in de new “ UA” signs, the bank— for the first creased purchase costs. time— had uniform signage. Hamilton Bank, Knoxville, faced a Next-largest expense was the design different situation when considering a and reprinting of paper documents, name change. The bank was not affili from deposit slips to letterheads. The ated with any HC, but its name was occasion provided the bank with an op confusing, since Hamilton Baneshares portunity to review all its printed forms. of Chattanooga controlled numerous As a result, some were eliminated and banks in the state. some were combined to make a more Since the Hamilton HC was going efficient paper system. through a difficult period (that resulted According to bank officials, the tre in its bankruptcy early this year), the mendous amount of work involved in new executive management of Hamil changing the name of the bank was ton National, headed by Jake F. Butch well worth the effort. Within a year, the er, wished to put to rest any thought bank moved up 38 places in the tally of on the part of the public that Hamilton the nation’s largest banks. First-quarter National was a part of Hamilton Banc1976 earnings were the highest on rec shares. ord and a 100% increase in dividends Thus, the name “ United American over year-earlier figures was made. New Bank” was chosen and was adopted last departments were developed and others December, coincident to the time the expanded. But, best of all, officials state, bank broke ground for its new 30-story the bank has gained a new image— one regional banking center in Knoxville. that is aggressive and forward-looking. In developing the new name and de Space does not permit the detailing signing a new logo to express it, the of name-change activities of numerous bank’s desire was to accurately portray other financial institutions. But repre the company’s operational philosophy, sentatives of each one will be quick to which was to be progressive and up-tosay that much careful planning is in date. The former Hamilton logo was volved and the price tag is not low; conservative, thus an entirely new look yet the long-term results are expected was needed. to be rewarding to the banks and HCs February 1, 1976, was set as the making name changes. * * launch date for the name-change cam- 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bicentennial Christmas: 'S p irite d ' Bank C ustom ers Bring O ffe r to Eariy End Customers of Union Bank, Erie, Pa., must have had the spirits of Christmas and the bicentennial last year. Their demand for copies of the bank’s pre mium, a book entitled Flags of Ameri can History, caused the promotion to be brought to an early end. The book not only contained pic tures and histories of a number of early American flags, but included a special copy of the Commodore Perry “ Don’t Give Up the Ship” flag in the form of an iron-on transfer. The book was priced at $2.12, but for an additional 76 cents, one could purchase a copy of an 1876 centennial bookmark which originally was made by Thomas Stev ens. No deposit was required to obtain either item. Union Bank ordered 2,000 copies of each, and officials add that they feared they might have over-ordered. But in only three weeks— mid-November to December 4— all copies of the book had been sold! Bank officials say they definitely would make the offer again— perhaps then the orders they received for the book and markers from New York and Ohio could be filled! 'Many Faces' Marketing Program Aids Christmas Club Solicitation “The Many Faces of Christmas” is the title of the turn-key, fully coordi nated approach to marketing Christmas clubs being distributed this year by Christmas Club a Corporation, Easton, Pa. “ Many Faces” is one of several co ordinated graphic programs being of fered to financial institutions. It fea tures several full-color photos of chil dren registering delight typical of that which occurs when a Christmas gift is opened. The program includes several com ponents, such as floor displays; coupon books; passbooks and envelopes; appli cation folders; shopping and Christmas card list booklets; booklets of Christ mas carols; checks and envelopes; tell ers badges; and program manuals. According to officials at Christmas Club a Corporation, Christmas clubs and other holiday systematic savings programs represent a $3 billion market in the U. S. The average Christmas club customer comes to the bank 35 times each year to make his Christmas club payments, giving bank personnel numerous occasions to solicit the cus tomer to purchase other bank services. MID CONTINENT BANKER for July, 1976 Call frank 1 You can trust Frank X. Henke,III to provide you with the most reliable and competent advice possible regarding trusts and estate planning. As President of Fourth National Corporation and Executive Vice President of Fourth National Bank, Frank is well versed in every aspect of banking. Recognized as an expert in organizing and developing holding company operations, Frank is also called upon as frequent advisor on acquisitions. He has guided the trust department he heads into a position as one of the fastest growing in the Southwest. If your customers need advice, you know who to trust. Call Frank. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 A Real Favorite' Bank's Favorite Person' Card Program Hailed as Popular Consumer Service A RTFO R D (Conn.) National’s mul ti-service “ Favorite Person” card has proved to be a favorite with both the bank and consumers. Hartford Na tional officials say it is the “ single most successful consumer service ever intro duced or sponsored” by the bank. In the latter part of .1973, manage ment of Hartford National decided to take positive action to improve the in stitution’s recognition with the consum er. Bank officials also sought to in crease Hartford National’s market share. The result was the “ Favorite Person” card program. The program was developed by Kupper Advertising, Inc., Hartford, and launched by the bank in 1973. It offers four basic elements: a personal savings account, personal checking account, Master Charge account and a CheckCredit (overdraft) account. In addition to those four prerequisite services, the customer is offered other useful ser vices, such as personalized checks, money orders, travelers’ checks and no tary service, free. Initially, the program had a $3-permonth service fee, which was dropped in early 1974. All fees paid before that date were refunded by a credit to the customers’ savings accounts. What aspects of the package are at tributed with generating its appeal to consumers? The plastic identification card and establishment of guaranteed check cashing at retail businesses and supermarkets throughout the state. The card identifies the holder as a program participant, entitling him to cash personal checks in amounts up to $100 at any of the bank’s 66 offices in Connecticut or at any of 2,500 par ticipating retail establishments. The card carries an account number with which the bank can capture data on individual account activity for plan ning and profitability analysis. In addi tion, the arrangement with merchant outlets helps establish precedence for future merchant-bank activities aimed at the consumer market and strength ens Hartford National’s commercial re lationships with the participating busi nesses, officials state. The bank’s agency concentrated on the desired emphasis on the individual H 42 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No" '♦hen you become a favorite IVrson you get all the benefits ami services vou need in one complete, free package. A B O V E : H a r tfo r d (C o n n .) N a t'l g o t ex c e lle n t re sponse w ith a d des crib in g b en efits o f " F a v o r ite P e rs o n " card p r o g r a m . Services o ffe re d inclu de g u a ra n te e d check cashing th ro u g h o u t s tate, fre e cashier's checks a n d m o n e y o rd ers. M a s te r C h a rg e , fin a n c ia l co u nseling . BELOW : Pocket c a lc u la to r p re m iu m p ro m o tio n a t b a n k o ffe re d in stru m e n ts to F a v o rite Person accounts fo r $5 discoun t o v e r n o rm a l sav in g s d ep o sito rs. To d a te , 2 ,5 0 0 m erch an ts p a r tic ip a te in p r o g r a m , b a n k has 6 5 ,0 0 0 a c tiv e F a v o rite Person ac counts. While m* add Interest y m t can add a iç lh in g »od tffv iirt fw o n fy S « « Ätt'i -v :: Wm \t A-i.\""i . •••:• >■ : ... s< . Ï, -Vi ;. . Vwmémm when designing the program: the in dividual’s wants, needs and desires, coupled with distinctive advertising, collateral, point-of-service and other promotional material. The result was a substantial impact on the target audi ence. Kupper Advertising’s 1974 market research survey showed that 82% of its respondents were aware of the Favor ite Person program, while 89% identi fied the program with the bank. Just how much business has Favorite Person meant for Hartford National? In 1974, it was found that 82% of the accounts were existent bank customers and 18% were new relationships. In the promotion’s first year, the bank re ports, 50,000 of the accounts were opened, representing over 125,000 re tail banking relationships. During that year, Hartford Na tional’s demand deposit accounts in creased 6%, savings accounts were up 14% and Master Charge accounts rose an astounding 47%! Since that time, the program has con tinued to grow. The bank reports hav ing 65,000 active Favorite Person ac counts and the result is that Hartford National is now known as the “ Favor ite Person Bank” throughout Connecti cut. In 1975 the program was tied to a calculator premium. With a savings de posit of $250, a customer could pur chase an electronic calculator for $19.95, but if the customer opened or already had a Favorite Person account, the price of the premium was reduced to $14.95. The results? During the pre mium offering, 25,000 of the pocket calculators were sold, 20,000 of them to Favorite Person accounts. Advertising media for the program has been in-bank counter literature and newspaper ads. Kupper Advertising has syndication rights for the Favorite Person program and is offering protected franchises to financial institutions outside Connecti cut. The agency also offers advertising, promotional and collateral material for the program, or participating institu tions may use their advertising agencies for promotional purposes. * * MID-CONTINENT BANKER for July, 1976 Let Tom Potter move TheFourth to your neighborhood. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You'll find The Fourth National Bank showing up in hundreds of towns. But then you'd expect that from the biggest bank in the state. What you may not expect is why so many banks work with us. It's because we have everything you'll ever need. And we make it available on a very neighborly basis—one service at a time, or everything at once. All it takes to put the resources of The Fourth to work in your neighborhood is a call to Tom Potter. He'll deliver the kind of "next-door-neighbor” enthusiasm and big bank facilities you've been looking for. Give Tom a call. Right now. He's in the neighborhood. TheFourth IT Fourth National Bank & Trust Co. / Wichita, Kansas / Member FDIC 316-261-4488 TV co m m ercial fo r " life s ty le s w e e p s ta k e s " w a s film ed in 1 1 2 -d e g re e h e a t on h e lic o p te r p a d a t a irp o rt n e a r Los A n g e le s . M a jo r prizes p ictu red in clu de a ir p la n e , a u to , s a ilb o a t, m o b ile h om e a n d g ia n t $ 7 ,5 0 0 check. For the Bank That Has Tried Everything: A $100,000 Sweepstakes Promotion! O UPERLATIVES abound in connec^ tion with the “ lifestyle sweepstakes” promotion conducted by Se curity Pacific National, Los Angeles, last fall. To begin with, banks don’t ordinari ly conduct sweepstakes contests, but the people of California apparently thought it was a good idea. Between eight and nine million residents par ticipated in an attempt to get a por tion of the $100,000 in prizes offered by the bank. The contest lasted just one month, but the weight of the en tries came close to 14 tons! Prizes offered included an airplane, a mobile home, a luxury auto, a sail boat and $7,500 in cash. In addition, each of the bank’s 497 branch offices gave away a 10-speed bicycle during week-long open house celebrations. The sweepstakes was the largest sin gle promotion in the bank’s history and featured the most concentrated adver tising campaign the bank had ever undertaken. Close to half a million dol lars was allocated for multi-media ad vertising, promotion and point-of-sale materials. The title “lifestyle sweepstakes” tied in with the bank’s “ lifestyle” theme used in its direct loan advertising. It also related to the leisure and recrea tion prizes offered. “ W e decided to take the marketing initiative in a bold, exciting and dra- 44 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis matic way by staging a gigantic sweepstakes involving all of our offices, in an effort to boost awareness of the bank throughout the state,” said Richard Schoonover, advertising director and vice president. The main objective was to generate more pedestrian traffic in SECURITY PACIFIC SANK N e w s p a p e r ads lik e this one reach ed fro m 8 5 % to 1 0 0 % o f hou seholds in Security P a ci fic's 2 9 -c o u n ty tra d e a r e a in C a lifo rn ia , a n nou ncing " life s ty le s w e e p s ta k e s ." all of the bank’s offices and to sell our services, he continued. He said that it was felt the sweepstakes would create a unique image for the bank by demonstrating that “ it is aggressive and on the move.” The pro motion also was designed to boost em ployee morale and to give branch per sonnel opportunities to meet potential new customers and to talk about direct consumer loans with both customers and non-customers. The sweepstakes was run in conjunc tion with an independent judging or ganization. The organization selected winners at random. A major multi-media ad campaign supported the contest. Saturation TV and radio spots throughout the bank’s 29-county service area were projected to reach 97% of all adults. In addition, newspaper ads were projected to reach from 85% to 100% of all households in areas where the bank has offices. A kit of display materials promoting the sweepstakes was displayed in each of the bank’s offices. Included were an assortment of lobby posters, a cloth banner, two window banners, entryforms and a deposit box for entries. Offices with sufficient space were en couraged to develop displays of mer chandise relating to consumer direct loans. The bank received three times the number of entries expected. * * MID-CONTINENT BANKER for July, 1976 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 Borman, Fed Presidents O n B M A C o n v e n tio n Slate Can Bank Go W rong W ith Photo Offer? Not if Goal Is Customer Satisfaction! HO CAN resist a family photo portrait— especially when it’s avail able at no cost? Almost 8,000 families in Knoxville, Tenn., couldn’t, and that not only made the families happy, but it made the people at United American, Knoxville, sponsors of the event, happy. It also surprised the bank’s manage ment, who confessed they had little idea of how popular their free photo offer would be. The promotion certainly accom plished what bank management had re quested of it— the generation of traffic through the various branches and the creation of good will among the bank’s established clientele. Contrary to most free-photo offers, United American’s was for customers only. All these customers had to do to take advantage of the offer was to call the portrait desk special phone num ber at the bank and make an appoint ment for a sitting during afternoon and evening hours. Any number of family members could assemble for a photo, but only one free photo was given to each group, regard less of the number of accounts the members of that group held at the bank. O f course, additional prints were available from the photographers, Olan Mills of Chattanooga. The bank pressed six of its 16 branches into service as photo studios, two for each week of the promotion. Customers were asked to select the branch most convenient and appoint ments were taken during regular bank ing hours. When the calls started pouring in, it quickly became evident that the offer would have to be extended to accom modate all requests. So two more weeks were added to the schedule and one more branch was designated as the lo cation for taking the photos. In addition, a special “employees only” week was added to the schedule at still another branch office. Proofs were available after 10 days and customers were asked to return to the branch at which their photo had been taken to see the proofs. Thus, each customer was required to come to the bank twice, generating additional traffic. The promotion was advertised with statement stuffers and in the Sunday edition of the local newspaper. The W 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis original ad, which ran for two Sundays, explained the promotion and gave the phone number to call for appointments. An extra ad was run to announce the extension of the promotion and to give two additional phone numbers for ap pointments. Additional personnel were necessary to handle the logistics of the promotion, including a full-time person to make appointments. Extra receptionists were put in the branches during the time sittings were being made. Community rooms with outside entrances were uti lized as photo-taking sites whenever possible, thus minimizing the need for extra security during after-hour ap pointments. A bank spokesman said many en thusiastic comments were made by cus tomers taking advantage of the offer. “ W e think that the Olan Mills quality was the key element. If people are happy with their photos, they are go ing to be happy with us. For the most part, we think our customers sincerely appreciated the opportunity to have family portraits made, compliments of United American Bank.” — Jim Fabian V x •; - we’ve «tended our Ay portrait UNITED AMERICAN BANK, N.A. *hs bank of tomorrow with tbo ©f the past. ; spirit This a d an n o u n c e d e x te n s io n o f fre e p h o to o ffe r fo r custom ers o f U n ite d A m e ric a n , K n o x v ille , Tenn. Tim e a llo tte d fo r o r ig in a l p h a s e o f o ffe r w as insufficient to h a n d le n e a rly sittings b e fo re O la n M ills p h o to g ra p h e rs . 8 ,0 0 0 Frank Borman, president and CEO, Eastern Airlines, and a panel of Federal Reserve Bank presidents are scheduled to be in the spotlight during the Bank Marketing Association’s 61st an nual convention. The BMA will meet at the Hotel Fontainebleau in Miami Beach October 24-27. This year’s convention theme is “ How To Gain the Competitive Edge” and more than 2,500 bank marketers from around the world are expected to be in attendance. BORMAN Mr. Borman, former astronaut, will deliver the keynote address, “ H ow T o Compete in a Regulated Industry.” The panel of Fed presidents will examine “ The State of Banking Today.” Also slated for the convention are the editors comprising the Periscope Panel of N ew sweek magazine. Their topic will be current national developments and the national election, which will take place one week after the close of the convention. BMA officials indicate that this year’s convention program is geared to up dating and informing the bank market ing executive on topics such as “ EFT— Competitive Impact for T oday/T om or row,” “Advertising in the ’70s— the Positioning Era” and “ Responsive Mar keting— the Increasing Power of the Consumer.” Also scheduled are 13 workshops on a variety of topics. For example: “ How To Compete Against N O W Accounts,” “ The President’s EFTS Commission,” "H ow To Compete With an S&L” and “ EFTS Planning for the Community Banker.” Also planned are 26 “rap” sessions that will zero in on a number of cur rent subjects. During the convention, the BM A’s 1976 Golden Coin awards will be pre sented and a special BMA TV network will be in operation, featuring programs of interest to convention registrants, on the hotel’s television sets. Alex W . “ Pete” Hart, vice presidentBankAmericard division, First National, Chicago, serves as this year’s BMA convention chairman. MID-CONTINENT BANKER for July, 1976 CANYDURTRUST OPERATION AFFORD SURCHARGE LIABILITY LITIGATION? Every bank with trust operations is ex posed to litigation. Increasingly, the bene ticiaries of trusts are challenging invest ment decisions and account servicing by trust departments. The concept of the “prudent man” rule in trust handling is changing. It is now felt that bank trust departments will probably be required to exercise a higher degree of care beyond that of the ordinary “prudent man”. And, with the passage of the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries of pension plans, as well as personal trusts, have been exposed to new interpretations of the “prudent man” rule. The Federal standards set by ERISA define rules and conduct, but interpretations of the law will be made by the courts. WHAT SCARBOROUGH CAN HELPTO DO ABOUTIT... The litigation of cases involved with trust handling can be expensive, even without a judgment. The answer is protection pro vided by Trust Operations Surcharge Liability Insurance through Scarborough. Now, this Scarborough designed policy has a specific endorsement to cover your trust department in the event of litigation resulting from the new ERISA Act. Defense costs, judgments, expenses, and out of court settlements (with Company’s consent) resulting from suits are reimbursed, excess of a deductible. Coverage is provided on a discovery basis. Since Surcharge Liability Insurance covers your bank as a corporate entity, (unlike Directors/Officers Liability), pro tection is provided for the bank’s capital structure from erosion, or worse, in the event of a substantial payout from litiga tion. Today, self-insurance.is a thing of the past. For more information—write or call collect to Bob Marshman or Dick Morran. Trust O p e r a t io n s S u rc h a rg e L ia b ility In s u ra n c e 1 1 1 | | FOP RANKS ANO 1 TRl'<TCOMPANIES 1 sc*As r ,9h bank im w » n c * Scarborough the bank insurance people Scarborough & Company, 222 N. Dearborn St., Chicago, Illinois 60601 Phone(312)346-6060 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 W hatever you’re looking for, I SANTA ttemtoTOI ; I k for in ELKHART you can find it r a Right here.PS U A A B 't tha nks Y O li ^ S h o p p in g in CITIZENS STAÌ BAM SffJPS rh e ir 's a s to p p ili bonanza rig h t m in your own backyard bonanza right ti in your own backyard. MARMI««* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T ry Culpeper First w as ly the most doubtedlu uccessful m arketing effort ■Veever tried. The real onus w as the low cost.” Burton Stacy, President The New Bank o f Culpeper When Burton Stacy heard about the “Try (Your Town) First” ogram, he knew it was a natural for Culpeper. Located within y driving distance of Richmond and Washington, D.C., Culper merchants suffered every year, when local residents did uch of their Christmas shopping in the nearby large cities. Things changed last year. The bank sponsored the “Try Culper First” program, a tested, proven program for keeping local oppers at home at Christmastime. This copyrighted program abled the bank to provide each merchant in Culpeper with means to promote hometown shopping within his store, in local newspaper, and on the area radio stations. The bank ovided everything. It was a marketing masterstroke. The local wspaper commended the bank in an editorial. Letters to the itor praised the community spirit of the bank. Both the radio tion and the local newspaper provided free press coverage, d the local merchants loved it. The bank was helping put oney in their pockets. Says Burton Stacy, “We not only gained their goodwill, but a of their business.” tising. He may include the program logo in all his regular news paper ads. And he can have the local radio station record his regular radio spots on top of the customized, “Try (Your Town) First” jingle. Your merchants will appreciate that kind of effort. But we want to bring the general public into the act, too. And we want them to realize who’s making it all possible—YOU! So we provide you with a press release for your local news paper. Generally, the newspaper will run a front page article about your sponsorship of the program... along with a photo of one of your bank officers pinning a button on a local mer chant’s lapel. We also provide you with newspaper ads that announce the program, and your reasons for sponsoring it, to the general public. And don’t forget the radio spots. Posters for your bank lobby. And a complete operations manual, so that you can take advantage of the many successful ideas for imple menting the program that have been generated by participating banks. Total coordination. It makes the difference between success and failure. Your program will be a success. OW YOU CAN SPONSOR THE “TRY (Your Town) RST” PROGRAM BUT DOES IT REALLY KEEP DOLLARS AT HOME? When you sponsor the “Try (Your Town) First” program, you’ll d that several things will happen: 'ou’ll keep needed dollars at home and in your bank. our bank will be a hero to local merchants, and will probably ick, up new commercial accounts. ou’ll have an officer call program that works. Lou ’ll receive free publicity in an amount that will surprise you. Ask Milton Dean about that. Milton bought the program for the Eufaula Bank and Trust Company mainly as a public rela tions effort. Then he saw what it could do in dollars and cents for Eufaula and for his bank. The sales tax figures told it all: E SECRET IS TOTAL COORDINATION JANUARY JANUARY JANUARY JANUARY 1971..........$17,201.85 1972..........$18,992.10 1973..........$18,525.28 1974..........$26,565.34 What did the big jump in Christmas season sales represent? We know, of course, that encouraging people to “shop at Since sales taxes in Eufaula are 1% of sales, that meant that the me” is nothing new. Your Chamber of Commerce has tried year the “Try Eufaula First” program was introduced, an extra Or the downtown merchants association. Maybe your bank $800,000 was kept at home. The program was successful in s even made a stab at it. causing Eufaula residents to think about shopping at home. And that’s precisely why we’ve put it all together. In the course Before heading out of town to do their Christmas shopping they working with nearly 300 communities on this program, we’ve tried Eufaula first. arned what makes a shop at home program go. It takes colorful In McHenry, Illinois, the McHenry State Bank reports, “We had ality materials, for one. The kind that every merchant is proud several people comment that they display (and the kind of quality did as much as 90% of their shopping aterials that only volume buying in town this year. In other years, akes possible). Most important, they had done as little as 20% takes total coordination. That’s to 40%.” hy we provide you with material ( 615 ) 327-0173 Goodwill among merchants. New r all media. You’ll give every mercommercial accounts. Favorable ant a kit which includes posters public reaction. Extra dollars stay r his window, counter cards for ing in town. These are the things splay shelves, buttons for his emyou can expect from the “Try (Your oyees, vinyl stickers for his front Town) First” program. or. Then you make it possible for MADISON AVENUE ASSOCIATES. IN C And you and your bank will be merchant to push the “Try (Your 2305 ELUSION PLACE NASHVILLE. TENNESSEE 37203 the hero. wn) First” program in his adver https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CALL COLLECT NOW 0 ...in one spirited promotion package. The appealing faces of happy youngsters reflect the joys of Christ mas giving ... and can make your next Christmas Club program the most successful. “The Many Faces of Christmas,” created and developed by the original Christmas Club a corporation, is a completely coordinated program with everything you need to reach and motivate all Christ mas savers. Plan now for Christmas Club full-color promotion materials. In clude attention-getting floor display, window and counter displays, application folders, coupon books or passbooks, checks and en velopes, teller badges, shopping and Christmas card lists and a book of Christmas Carols — a fine gift for clubbers. Well also supply you with a Program Manual filled with sales promotion and merchandising ideas, including PR releases and photos and tips on how you or your agency can use “The Many Faces of Christmas” theme in your bank’s advertising ... all de signed to make your program easier and more profitable. Let Christmas Club a corporation put the spirit into your promo tion package. Mail the coupon or call (800) 523-9440 toll free* today for full details on “The Many Faces of Christmas” promotion pro gram . .. and have the most successful Christmas Club in your bank’s history. *ln Pennsylvania call collect (2 1 5 ) 2 5 8 -6 1 0 1 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis chRisrraas dut) a corporation Cktti tftiaA Ccm* Sut Once a Ifeat— https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis findPlanning 7 W Hen! OST BUSINESSMEN and women would agree that it’s good business to take a practical interest in the Yuletide Season. And bankers are no exception to the statement. They also agree that mid-summer is the time to get started with plans for the coming holiday season! Seldom can it be said that the bank lobby does not hold its own in perpetuating the sounds, smells and friendliness so much a part of the holidays. Banks fairly exude the Christmas spirit with their huge decorated trees, wreaths, organ music, choirs, and— often— refreshments. But these things don’t just happen— they are planned well in advance. Many banks stage special promotions at holiday time that feature giveaways or premiums, from coin banks to electric train sets. But the commercial side of Christmas is usually subdued so it doesn’t intrude unduly in the effort to main tain an atmosphere of peace and joy. Most bankers realize that Christmas is the best time to court customer good will. This can be done easily because lobby traffic is usually higher than normal at the end of the year. Bankers find that, if their institution reflects the warm spirit of the season, much can be done to offset the cold, dehumanized impact of the age of technology that has caught financial institutions in its grasp. Christmas is the time of year when banks can put sizable new business on their books. Astute bankers have learned how to turn their institutions into “ Christmas stores” without jeopardizing their relations with local merchants. Among the items banks can offer shoppers are gift savings accounts, specially decorated Christmas checks and new currency in imprinted gift envelopes, pack aged currency ingeniously folded into Christmas tree (or other) shapes, canned money (sealed in tin), money by the pound and other novelties, limited in scope only by the imagination of the bank’s staff. Many gift suggestions are available to financial institution customers in the form of self-liquidating premiums, such as holiday record albums, books and silverware. These and other gift suggestions are offered at bargain prices and they tend to greatly increase lobby traffic, providing a means for bank personnel to practice their gentle cross-sell approach. Christmas, being the season for courting good will, provides opportunities for bankers to thank customers for their business over the year. These messages can be relayed via attractively printed statement stuffers, published in the newspaper or carried on radio and TV. Personal letters to special customers are said to reap the biggest dividends. For years, one of the most successful promotions at Christmas has been Christ mas club accounts. Customers like them and keep coming back to renew their ac counts following a little prodding on the part of banks. Firms providing Christ mas club services keep coming up with new twists on the old theme of saving for the holidays. Christmas promotion ideas for banks are many and cover a wide field. The special “ Christmas in July” section in this issue provides numerous ideas that bankers can utilize in their “ good will garnering operations” this coming winter. Remember, if you’re not beginning your holiday promotion planning about now, you’re flirting with the possibility of “ missing the sleigh” for the 1976 season! • • M Need an Idea to B oost Christmas Clubs? Read W h at O ther Banks A re Doing! HRISTMAS CLUB accounts no longer sell themselves to any great extent. Banks desiring to boost their clubs have often found that they ex pend more dollars on promoting the clubs than they can justify. Thus, bank ers are continually on the lookout for economical ways to promote their Christmas club service. The situation at First Galesburg (111.) National was somewhat typical— Christmas club accounts were declining in number each year and no amount of vigorous advertising on the part of the bank was reversing the trend. Bank management wanted to boost its accounts, not let them diminish, so its corporate planning/marketing de partment, headed by H. Ray Moore, vice president, developed an employee incentive program designed to sell Christmas club accounts on a one-toone basis. The plan called on bank personnel to solicit customers by asking them if they had opened their new Christmas club accounts. What employees were encour aged to do was invite customers to join by means of a personally extended in vitation. Cards were printed to aid in extend ing invitations. Each card stated, “ Have a Merry Christmas! You are invited to join our Christmas Club.” Space was provided on the card for the bank em ployee to sign his name. On the reverse of the card was a membership applica tion. When a customer turned in a card upon joining, the employee whose name was on it was credited according to a sliding scale. For instance: in the case of $5 and $10 weekly clubs, contact personnel re ceived $1 for each club opened; semicontact personnel received $2; and noncontact personnel received $3. In order to provide funds to reward personnel, the bank reduced its Christ mas club advertising from $1,100 for 1975 clubs to $350 for 1976 clubs. A termination date for memberships was set so the sales effort would not be drawn out. Employees were advised to stress the positive aspects of the club, such as one free payment after the cus tomer had paid for 50 weeks. C 52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t £r©m F IR S T N ATIO NAL BANS ImarnJ Join Our 1976 C hristm as Chib and when you do w e ll give you either a Bicentennial Tra y or a Bicentennial Bowl FREE! Join TO D A Y! N e w s p a p e r a d fo r First N a tio n a l, G ra n d Is la n d , N e b ., tra y s an n o u n c e d a v a ila b ilit y o f b ic e n te n n ia l a n d b o w ls , w h ic h w e r e g iv e n fre e to custom ers signing up fo r 1 9 7 6 C h ristm as clubs. w h en you open an NCB 1 9 7 6 C h ris tm a s C lub n a tio n a l C a m m u rn h j O an h C8paysymforcompktmgyourchib! .A- N a tio n a l C o m m u n ity B a n k, M ayw ood, N. J., sold p la c e m a ts a t reduced prices to custom ers sig n in g up fo r 19 7 6 C h ristm as clubs. B ank m o v e d 5 ,0 0 0 m ats, posted d o lla r increase. When the promotion was completed, a 2.83% increase in the number of clubs was realized that resulted in an 17.3% increase in dollar deposits after the first four months of payments. Almost 50% of the bank’s staff participated and $666 was distributed to participants. Mr. Moore said the bank was espe cially pleased that the three-year down turn in the number of clubs was re versed, despite the fact that 250 clubs had been eliminated. In addition, those who participated learned that it isn’t difficult to sell bank services. First National, Grand Island, Neb., had a Christmas club that was only holding its own as far as number of clubs went. Thus, it was looking for a way to boost the number of clubs. It hit upon the idea of offering bi centennial bowls and trays free to those opening 1976 clubs. Both items fea tured montages of scenes associated with the bicentennial and were ob tained through a local outlet. The premiums had the desired effect — a 23% increase in the number of clubs was posted and 1,170 premiums were moved in six weeks. National Community Bank, Maywood, N. J., also offered a premium to spur Christmas club accounts. The pre mium consisted of four reversible placemats featuring watercolor designs by John Audubon, available for $2 a set to those signing up for Christmas clubs. The bank reported a definite increase in the dollar amount of its 1976 clubs, due in part to the introduction of a $25 club and the elimination of the 500 club. In addition, 5,000 placemats were moved, resulting in a profit for the bank. Popcorn was the key to the success story at Berkshire County Savings Bank, Pittsfield, Mass., last year. In an attempt to make the bank more identifiable to the public, it installed an old-fashioned popcorn wagon on the premises and of fered free bags of fresh popcorn every Thursday. W hen it came time to solicit Christ mas club accounts, the bank arranged to have ceramic tiles bearing reproduc tions of the popcorn wagon as incen tives. Anyone opening a Christmas club account received one of the tiles. A 43% gain in accounts resulted. * * MID-CONTINENT BANKER for July, 1976 B E A U T IF U L C U R R IE R & IV E S T R A Y S Authentically reproduced in full color In this generous 11W x 1W size and lovely oval shape, they are not only a practical serving tray but beautiful enough to (and many d o) hang as decoration. THEY CAN INCREASE YOUR CHRISTMAS CLUB MEMBERSHIP SUBSTANTIALLY (note Bank comments below — letters we can show you ) “ With the help o f your trays, our Christmas Club accounts rose 54% over 1973” “ Unlike the usual candles, records, cookie-cutters, etc., your Currier & jv e s trays provided a new attraction and response. Club openings increased by 30% ” “ In 1973 we opened 3100 accounts. Y our trays helped us exceed 7700 this year” “ We initially ordered 1500 trays. All were sold out at $1.00 each in tw o days” “ Never have our customers and em ployees been so stimulated by a premium item ” INCREASE DEPOSITS AND BANK TRAFFIC AND GET AN ADDED BONUS TOO In use as a tray or wall decoration, neighbors and relatives see and com m ent on these unusual trays, you r bank name m entioned endless times as a source (can t be bought in a store anyw here!), price-less goodw ill advertising for you r bank over many years! Write for “ exclusive” in your trading area. Send $1.00 to cover postage and handling for free tray. J7 A o C R A - T i a.T Box M C -776 1 , 1 JM V__ 9 Frenchtown, New Jersey 0882 5 — (201) 9 9 6 -2 1 1 3 The “ Fine Arts” Tray People - beautiful exclusive trays for promotional use only https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trains Are Big at Christmas; Make Kids, Bankers Happy HAT IS the most effective premi um a financial institution can offer its customers during the Christmas sea son? A increasing number of financial peo ple would reply that model trains are a sure thing. Trains first came into their own as financial premiums last D ecem ber after at least one major train manu facturer put together a premium pro gram following tests at selected banks. What’s so great about trains at Christmas? Bankers who have offered model trains chorus that trains are in keeping with the traditions of Christmas. What child (and, often, his parents) doesn’t want a train of his own to set up close by the family Christmas tree? For this reason, the sets are appeal ing to almost everyone, since moms, dads, aunts, uncles, grandparents and older brothers and sisters all seem to have youngsters in their family who would break into smiles of joy upon re ceiving a model train as a Christmas gift. If there are no children in the house hold, there are many frustrated males who somehow missed the joy of having a train set during their youth who would love to make up for that fact. Thus, wives and other relatives are quick to realize the value of a model train for the older males in the family. And, of course, many bank customers simply want a train o f their own, no matter what sex or age they are! Taking advantage of the popularity of trains as financial premiums last W By JIM FABIAN Associate Editor Christmas was First National, Rock Is land, 111. The bank used train sets to generate new savings accounts and depositors, to provide a useful and interesting pre mium for customers and to provide a premium that dads could use and have fun with, as opposed to premiums di rected at women. The bank used a multimedia adver tising promotion, according to Charles Gross, assistant cashier. The “ First of Rock Island Savings Express” was ad vertised with TV spots, radio commer cials and newspaper ads. Mr. Gross said the TV commercials had a far-reaching effect that hadn’t been counted on— several accounts were opened by people from smaller communities outside the bank’s normal trading area. At the end of the three-month pro gram— which offered model train sets at $19.95, plus tax, after a $200 deposit was made to a new or existing savings account— 231 new accounts were on the books, representing more than $130,000 in new money. But the best news was in the add-on category, where more than 700 existing customers added $200 or more to their accounts, which to talled more than $450,000. More than 900 train sets were moved. Retention rate for the new accounts is 88%. Direct cost to the bank for the pro D e a f ch ild re n a t school in Jackson, M iss., p la y w ith m o d e l tr a in set d o n a te d b y First N a t'l in con jun ction w ith h o lid a y m o tion . p re m iu m p ro motion was $900, plus $15,000 for ad vertising. Mr. Gross said the train sets were well accepted by customers. “ The October-through-Christmas premium seemed to fit into the early Christmas season buying habits of our customers, whose initial purchases exceeded our expectations,” he said. In addition to the train sets, the bank offered accessories for train layouts at various prices, plus a $25 deposit. Among the items offered were buildings, special freight cars, railroad crossing gates and tunnels. Almost 350 acces sories were moved. First National, Jackson, Miss., also offered trains last Christmas. Purpose of the promotion was to increase the bank’s regular savings account base, ac cording to R. Gray Wiggers Jr., as sistant vice president. The six-week promotion offered 100piece train kits for $19.95 after a $200 deposit had been made. Sets could be billed to Master Charge accounts. On November 17, when the promo tion began, the bank had 1,500 train sets in stock. By early December, ac cording to Mr. Wiggers, the entire stock was gone and 250 more sets were or dered, all of which were snapped up by mid-December. The promotion was acclaimed as a “ giant success” by Mr. Wiggers. “ Final figures show that, compared with the same period in 1974, growth in state ment savings jumped 208% and growth in Golden Savings was up 23%. Also, over the same period, the number of new savings accounts opened was 58% higher in 1975 than in 1974. “An equally impressive figure is that the average deposit by customers ob taining trains was $450, although only $200 was required,” Mr. Wiggers said. He added that there were probably a lot of happy faces in Jackson on Christ mas morning, but none were more ap preciative than those at the Mississippi School for the Deaf. The two trains that had been set up on boards for display purposes at the bank were given to the children at the school. Kanawha Banking & Trust, Charles ton, W . Va., set ambitious goals for its train promotion last Christmas— $1 mil- (Continued on page 59) 54 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 Balloons all over Town are talking about BANKS they’re saying things like: * * * * * * * * * * * * * * * HAPPY BIRTHDAY, AMERICA WE LOVE PEOPLE WE’ RE A TOTAL BANK WE’RE HAVING A GRAND OPENING WE PAY HIGHER INTEREST NO BALLOON PAYMENTS WE OFFER FREE SAFE DEPOSIT BOXES YOU’RE INVITED TO AN ANNIVERSARY CELEBRATION DRIVE-IN TELLER SERVICE 48-MONTH AUTO LOANS FREE CHECKING SERVICES OVER 10,000,000 IN ASSETS JOIN OUR CHRISTMAS CLUB FREE NOTARY SERVICE FOR OUR CUSTOMERS AMERICA, WE LOVE YOU P U T T H E S P I R I T OF “ 7 6 ” TO Y O U R P R O M O T IO N Molded of UNBREAKABLE VINYL PLASTIC, painted in 6 WEATHER RESISTANT colors he’s equally effective indoors or out. W h a t ’s A m e r i c a ’s B ig g est B irth d a y P arty w it h o u t Balloons??? 12 C O M M E M O R A T I V E D E S I G N S to c e le b r a t e th is E n tire Y e a r ’s F es tivitie s Revolutionary invention makes it possible for YANKEE DANDY to inflate, seal and string up 1500 perfect helium balloons per hour automatically. W e can I M P R I N T a n y Ad M es s a g e on reverse side. Each b allo o n c o m e s P r e - S t r u n g w ith our e xc lu siv e S E L F - S E A L I N G V A L V E . ADVERTISING BALLOONS: Balloon Size 9" Diameter 9” Diameter 11" Diameter 11" Diameter YANKEE DANDY! a show stopper in his traditional tailor-made wet-look vinyl costume. He is completely portable, and stands 5’8” (when mounted on helium cylinder). Ya n k e e d a n d y f r e e with every order of 10,000 balloons. * PRICING—FINANCIAL INSTITUTIONS Printed: 1 Side 2 Sides 1 Side 2 Sides 2,500 Cost $119.14/M 126.00/M 134.57/M 144.86/M * PRICES INCLUDE YOUR MESSAGE IN “ BLOCK LETTERING” 10,000 Cost 5,000 Cost $116.07/M $105.47/M 123.50/M 112.93/M 120.40/M 13Û.93/M 126.93/M 139.29/M Available in smaller quantities ALL BALLOONS FEATURE CREATIVE’S SELF SEALING VALVE & 5' OF PATRIOTIC STRING For additional information and our new fall catalog write or call collect P R E M IU M S FOR F IN A N C IA L IN S T IT U T IO N S , IN C . 5019 W. Belmont Avenue Chicago, Illinois 60841 (312) 889-4210 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 First of Little Rock s Ozark Christmas Was Hit in 7 5 ; Will Return This Year By DANIEL H. CLARK Editorial Assistant HEN PLANNING for its 1975 Christmas celebration, officials of First National, Little Rock, had the bi centennial uppermost in mind. A num ber of bicentennial-related themes were considered, but it was decided that an “American Revolution” theme wouldn’t be appropriate. The bank decided to concentrate on its own state’s heritage and the “ Ozark Crafts of Christmas” was the result. Not only did an Ozark Christmas fit the bill, it proved so popular with area residents that bank officials say the theme will be repeated this year! Planning the Christmas trees for the Main Office and 13 First National branches was the first step in the cele bration. Rank officials contacted the Ozark Folk Center in Mountain View and commissioned many of its craft people to create small versions of their wares to be used as ornaments for the trees. The old-fashioned ornaments in cluded appleface and cornshuck dolls, hand-carved toy trucks, woven baskets, spice balls, bread dough items and quilted and woven pieces. In First National’s Main Office, a large cedar tree was used. Marvin W C h ristm as tre es a t a ll offices o f First o f Little Rock w e r e fo c a l p o in t o f b a n k 's " O z a r k C ra fts o f C h ris tm a s " e v e n t. D e co ratio n s w e r e m in ia tu re versions o f A rk a n s a s c ra fts c re a te d fo r b a n k b y re p re s e n ta tiv e s o f O z a r k Folk C e n te r, M o u n ta in V ie w . Vines, farm service director with KAAY radio in Little Rock, provided the tree, hand picking and transporting it from his farm. To round out the event, representa tives of the Ozark Folk Center came to the bank each day from December 8-23 and gave a showing of their handiwork. A different craft was fea tured daily and the public was invited by statement stuffers and newspaper ads outlining the day’s spotlighted craft. First National’s employee news paper also acquainted the staff with de tails of the celebration. As the craftsmen demonstrated thenskills, the public was able to watch, ask questions and see a number of ex amples of the wares being produced. Since bank officials and the Folk Center representatives wanted the Christmas celebration to be void of any hint of commercialism, no craft items were sold during demonstration hours. However, customers could make private orders with the Folk Center people and some purchases were made after demonstration periods. In addi tion, craftsmen handed out brochures about the activities of the Ozark Foot- D iffe re n t c ra ft o f O z a rk s w a s s p o tlig h te d d a ily d u rin g 10 a .m .-2 p.m . p e rio d as p a r t o f First o f Little Rock's C h ristm as c e le b ra tio n . A t I., p o tte ry d e m o n s tra tio n fa s c in a te s g ro u p o f you n g sters; a t c. is w o m a n w o r k in g on q u ilt; a t r., w o o d c a r v e r chips o u t s ta tu e o f old m a n . 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 hills Craft Guild, which is headquar tered in Mountain View. Of course, an Ozark Christmas wouldn’t be complete without music, so a native music program was pre sented in three 20-minute performances during the noon hour on December 16. Attired in costumes such as calico or jeans, a troupe sang Christmas carols and played native instruments: banjos, dulcimers and autoharps, to name a few. Several groups of children took time off from school to attend what re portedly was the first Ozark music pro gram by the Center’s musicians to be held in Little Rock. • • First o f Little Rock's O z a r k -c r a ft C h ristm as c o u ld n 't h a v e been co m p lete w ith o u t som e o f a re a 's fo lk m usic. H e re , re p re s e n ta tiv e s o f O z a r k Folk C e n te r, M o u n ta in V ie w , p e rfo rm fo r b a n k 's " 6 0 G r a n d " (a sen ior citizen s' b a n k club) C h ristm as p a r ty . Yesterday's Ch ild ren: A n tiq u e Toy C o lle c tio n Recalls H o lid a ys of Past Citizens of Denver were able to re flect on how Christmases of the past must have been, when United Bank exhibited a collection o f antique toys in its lobby during the last holiday season. “ A Children’s W orld,” as the show ing was entitled, contained over 90 tin plate and cast iron toys manufactured in America between 1875 and 1950. It’s part of a collection of 2,000 toys which were donated to the Smithsonian Institution by Sears, Roebuck & Co. Many of the toys depict modes of transportation, such as a horse-drawn hose wagon, a milk wagon or a doubledecker bus. There are circus toys in the collection. Some examples ring or chime as they’re moved and other toys are reminiscent of personalities of their day— the “ Toonerville Folks” and the “ Happy Hooligans.” Another holiday activity was carol ing during the noon hours in the bank’s lobby by a number of Denver school choirs and by the Denver Children’s Chorale. YO U 'Christmas “Cannery” m creates 4P Customer Appreciation You'll be Santa's best helper when you offer to seal any small gift . . . or cash . . . in a #2 can. Each can is “ wrapped" in a bright red ribbon over white or gingham paper. The unique three dimensional bow and gift card may be imprinted with your firm's name. Opened, the can converts to a year-long savings bank. Program selfIiqu¡dates. Offered on exclusive basis. Package includes all promotional materials. Mail Sample To: FIR M N A M E _______________________________________________ Can-O-Cash Advertising Concepts, Inc. 260 North Rock Road, Suite 260 Wichita, Kansas 67206 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Y O U R N A M E ______________________________________________ A D D R E S S — ________________________________________________ C I T Y ________________________________ S T A T E ___________ ZIP 57 Concept of Sealing M oney in Tin Cans Gains Popularity W ith Banks, S&Ls ORE TH AN 800 financial institu tions have found that their cus tomers enjoy giving canned goods as Christmas gifts. Not ordinary canned goods, but Can-O-Cash gifts, courtesy of participating banks and other finan cial institutions. Can-O-Cash has been on the scene for five years. It was developed and is marketed by Dale Krebbs of Advertis ing Concepts, Wichita, Kan. Participat ing banks offer customers a service that enables them to place money (or other small items) into a number-two tin can and have it sealed as a gift. The cans bear colorful holiday labels that include a “ T o” and “From” desig nation, along with the name of the participating bank. The cans are sealed in front of the customer’s eyes at the bank and the customer goes home with his unique Christmas gift under his arm. Conceived as the answer to those seeking last-minute gifts at Christmas time, the Can-O-Cash idea has been expanded to include other special occa sions, such as birthdays, graduations, etc. One of the newest aspects of the service is one in which the participat ing bank makes a small charge for the service and turns the money collected over to a charity during the holiday season. Thus, banks not only garner good will for offering the gift service, they receive an extra measure of pub licity and good will when making the charitable donation. M N e w la b e ls h a v e been d e v e lo p e d fo r this y e a r's C a n -O -C a s h cans, fe a tu r in g b rig h t red rib b o n o v e r w h ite o r g in g h a m p a p e r . B o w is threed im e n s io n a l a n d la b e l inclu des p rin te d w ith b a n k 's n a m e . g ift c a rd im Bank of Maryville, Tenn., offered Can-O-Cash for the first time last Christmas. A 500 charge was made per can and the proceeds ($500) were turned over to the Maryville United Way. The donation was especially wel come, since the United W ay was short of its goal at the time. The bank ordered 1,000 cans, along with the lids and sealer that are part of a Can-O-Cash kit. Also included in the kit are plastic slotted snap-on lids that convert the opened cans into coin banks, a supply of labels imprinted with the bank’s name, reproduction proofs for newspaper ads, two radio commercials, motorized lobby display materials and counter cards. The Can-O-Cash display was set up in the lobbies of the Main Office and one of the bank’s seven branches, along with the usual holiday decorations. By the time Decem ber 24 rolled around, C a n n in g cash a t B ank o f M a r y v ille , Tenn., is bank e m p lo y e e M rs. C o nnie D ra p e r. Look ing on a r e officials o f lo cal U n ite d W ay, w h ic h w a s re c ip ie n t o f p ro ce ed s of C a n -O Cash e v e n t a t b a n k last y e a r. 58 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the bank had run out of cans. According to'W ilson Borden, senior vice president, Can-O-Cash “ is one of the most unusual gift ideas I’ve ever come across^’ . He said that staff mem bers took to the concept immediately, ordering a number of cans for their own use. Customers were alerted to the service by ads on radio and in news papers and enterprising customers came in with such things as diamond engagement rings to be sealed as gifts. One customer sent a can to Los Angeles filled with clean east Tennessee air” ! Mr. Borden said he likes Can-OCash because it is uncomplicated to explain to customers, it doesn’t require extra help and it provides the bank’s new accounts people with a popular service. It also serves as a means to draw traffic to the bank, including cus tomers of competing institutions. The bank intends to repeat the ser vice this year. Peoples Bank, Branson, Mo., has been using Can-O-Cash since its incep tion, according to Lawanna Langston, marketing officer. In the past, the bank has offered the service free to custom ers, but will impose a 750-per-can fee this year. Mrs. Langston says the service is valuable to her bank because it is avail able on an exclusive basis and is ideal ly suited for the bank’s area. She says it enables the bank to offer a service that its competition can’t. Mrs. Langston points to the impor tance of ordering enough cans to meet anticipated demand, since last minute reordering is risky. Until last year, the bank usually had some cans left over after the holidays, but in 1975 the sup ply ran out prior to the holiday and it was necessary to “ borrow” extra cans from another bank some distance from Branson to satisfy customer requests. Peoples Bank thinks so highly of the concept that it has begun stocking vari ous types of cans for year-round use. Among the 300 banks and thrifts of fering Can-O-Cash last Christmas was Peoples First National, Paducah, Ky. According to Chris Garnett, “ It’s been the best progi'am w e’ve ever had in our bank. W e’ve had tremendous re- MID-CONTINENT BANKER for July, 1976 sponse and people ask for it from year to year.” Dale E. Wallace, executive vice president, National Bank, Wichita, said, “ Money in a can seems to be a fun gift for everyone, and, you know, we’ve not had one Can-O-Cash gift brought back for exchange!” One of the first banks to turn the proceeds from its Can-O-Cash program over to charity was W achovia Bank, Winston-Salem, N. C. The bank do nates more than $1,500 annually to the city’s Empty Stocking Fund. In addi tion to helping a worthy cause, the bank has received considerable recogni tion through local newspaper, radio and T V news stories. * * Trains (Continued from page 54) lion in new deposits and 250 new ac count relationships. The bank selected model trains after checking their effectiveness as financial premiums with other institutions that had used them in the past, according to John L. Wynne, marketing director. To generate interest in the promo tion, the bank set up a lobby display that featured trains that were run throughout the day. It also supplied tellers with railroad caps and bandanas and one employee came to work dressed in engineer’s overalls. He became a topic of conversation throughout the city, Mr. Wynne said. Newspaper and radio ads were the principal means of advertising the pro gram. Customers were required to deposit $100 or more to a savings or CD ac count. The train sets were sold for $20.95 and were said to be a $60 value. The ambitious goal set by the bank was more than met: Dollar volume gen erated by the train sets was $1,250,000, with 318 new accounts put on the books. Betention of the new accounts has been 75% and a 7% increase in the balances of the new accounts had been posted four months after the promotion ended. Entire cost of the promotion was about $4,000. Mr. W ynne said it was difficult to obtain additional train sets after the initial supply was exhausted, due to shipping delays. He also said the qual ity of the premium was very good and that customers were impressed with the train sets. There’s little doubt that model trains are good performers for financial institu tions— especially at Christmas time! MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Presenting the successor to the Christmas Club : The After-Christmas CHRISTMAS CLUB A total marketing program to help you revolutionize your Christmas Club enrollment with potential increases of "I'm D ream ing of a G reen Christm as' * * W r i t e o r t e l e p h o n e t o: S r i l / and trust II ll\ com pany Verona,Virginia 24482 M A R K E T E R S plus, Inc. 2 0 1 4 - 1 8 Tate Springs Road Lynchburg , Virginia 2 4 5 0 1 I Telephone 8 0 4 -8 4 5 -4 5 5 1 IJuJ o II1 The A fte r-Ch ristm as C hristm as C lu b is a Trade < nd Service M ark of Com m unity Bank and Trust Com pany, and its a d v e rtisin g agency, M arketers Plus, Inc. copyright applied for. J 59 T ry St. Joseph First' Marketing Effort Encourages People to Shop at Home By JIM FABIAN Associate Editor LM OST EVERY community can - benefit from efforts to convince shoppers to spend their money locally. And, as the community benefits, so does its hanking establishment. But how can shoppers be encour aged to “keep their money at home,” rather than scampering off to the big city— or even the next town— to spend it? Ask Henry Lammers, vice president in the marketing department at First Midwest Bancorp., St. Joseph, Mo. He’ll tell you how the “ Try St. Joseph First” promotion his HC started last year helped stem the tide of shoppers who were increasingly forsaking St. Joe for the shopping centers of nearby Kansas City. The “ Try St. Joseph First” program is described by Mr. Lammers as a marketing effort to encourage St. Jo seph residents to do their shopping at home, particularly during the Christ mas season. The program includes distribution of packets of material to be used by mer chants and store personnel. Included are red and green buttons to be worn by store clerks that bear the message “Try St. Joseph First,” and window posters, counter cards and door stick ers carrying the same slogan. In addi tion, the three banks sponsoring the program— First National, First Trust and First Stock Yards— were distribu tion centers for free plastic shopping bags that also bore the “ Try St. Joseph First” slogan. The St. Joseph-based HC also sponsored the same program through its affiliate, Home Bank, for merchants in Savannah, Mo. According to Mr. Lammers, “ Home town shopping benefits all of us. It cre ates jobs. It improves the standard of living and it makes possible a wider selection of merchandise in our local stores. “The First Banks organization is backing our merchants at Christmas and hopes that all St. Joseph residents will ‘Try St. Joseph First’ for their holiday shopping because, in all prob ability, what they’re looking for can be found right here in town.” Mr. Lammers cites the benefits of shopping at home to keep dollars in the local economy and encourage the growth and development of new stores and shopping centers. The program was dependent on A 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis merchant cooperation. To generate merchant interest, Mr. Lammers con ducted a series of four breakfast meet ings to explain the concept. Merchants were told how the free program would boost their sales volume. A total of 150 businessmen gave their support to the program last year and most rated it well and asked that it be repeated this coming Christmas season. The banks advertised the program extensively, utilizing colorful newspa per ads that announced “ There’s a shopping bonanza right here in your own backyard.” Ad copy stressed the benefits of hometown shopping, how it creates new jobs, improves the standard of living and makes for a wider selection of merchandise in local shops. Following last year’s initial program, Mr. Lammers made an assessment of its effectiveness. The result will be an earlier start this year so the program can be launched by Thanksgiving; the involvement of additional merchants and, in turn, more exposure of the pro motional materials to shoppers; and the use of outdoor advertising and TV commercials to spread the word of the program. The “ Try (name of town) First” program was developed and is mar keted by Madison Avenue Associates, Nashville. Its use has not been limited to St. Joe. Other banks making use of the pro gram include Bank of Gainesville, Mo.; P h ilip M . P fe ffe r, v .p ., M a d is o n A v e n u e Assoc., N a s h v ille , d is p la y s p ro m o tio n a l s h o p -a t-h o m e p ro m o tio n . m a te ria ls fo r Winchester (K y.) Bank; Eufaula (Ala.) Bank; McHenry (111.) State; Jackson County Bank, Seymour, Ind.; Scott County State, Scottsburg, Ind.; Butler (M o .) State; and First State, Rolla, Mo. Bankers have reported that the pro gram has resulted in as much as a 90% increase in local holiday sales, that merchants tend to work closely with each other when they are participating in the program and that the use of the program often serves as an incentive for organizations to sponsor tie-in events, such as parades, contests, etc. A dd to that the accolades the spon soring bank is likely to receive for its efforts in boosting local sales, and you have some pretty good reasons for en couraging people to “ Try (name of city) First!” * • Try Rutherford County P o rtion o f C h ristm as p a r a d e flo a t spo nsored by C itizen s C e n tra l B ank, M u rfre e s b o ro , Ten n., p ro m o tin g "T ry R u th e rfo rd C o u n ty F irst" s h o p -a t-h o m e th e m e . P ro m o tio n w a s c re d ite d w ith $3.8 m illio n in crease in lo cal h o lid a y sales in 1 97 5. MID-CONTINENT HANKER for July, 1976 Let Tom Sloan’s training seminars put your bankers in a class by them selves. They’re designed to help managers become more effective. Employees to be more productive. And everyone to be better communicators. They can be as valuable an asset in personnel traininganddevelopmentforyour people as they've proven themselves to be for hundreds of Harris Bankers. Andtheycan increase productivity to provide your bank with a smoother, more efficient and profitable operation. So, take a look at this year’s semi nar offeri ngs, and decide which ones best suit your own personnel development programs. Then get in touch with Tom Sloan by phone at (312) 461-6990 or by mail. He’s a man who believes that every banker should have a touch of class. "Executive Workshop!’ July 19-20. Designed for both senior-level managers and executive officers. Topics include improvement of meetings, planning, policy making and employee motivation. "Transactional Analysis for Bankers!’ Sept. 20-21. Intendedforall managerial levels. Particularly bene ficial in helping managersdeal with subordinates in a productive manner. "ResultsThrough People!’ July 7-8. Covers man agement functionsand different management styles, with emphasis placed on delegation and motivation. "Teaching You to Train Others!’ August 18-20. A special “ howto’’seminar for employees assigned to training functions. "Teller Training!’ August 9-13. Deals with the mechanical duties of tellers on a daily basis, as well as the establishment and maintenance of good cus tomer relations. HARRIS BANK Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, Illinois 60690. Member F.D.I.C., Federal Reserve System. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 How Banks Celebrate Christmas A potpourri o f ideas adaptable to most banks M a n y Fa cets: Bank's H o lid a y C e le b ra tio n Takes Form in M any W a ys Christmas time at National Bank of Commerce, Memphis, is a multifacet ed experience which includes choral groups, sing-alongs, an employee din ner and, of course, the traditional Christmas tree. Last year, the Main Office lobby rang with the sounds of choral groups from area high schools. Programs ranged from the traditional carols to spirituals during the lunch hour. Also on hand was Deborah Card of the personnel de partment, who played organ music dur ing the first part of those programs. The bank also cosponsored a singalong, another annual event, with Memphis’ Area Chamber of Commerce and Recreation Department. The singalong was held in the Commerce Square Plaza last December 18 and Deborah Card played organ music in the bank lobby prior to the event. On hand to participate were local digni taries such as Mayor W yeth Chandler, Wayne W . Pyeatt, bank chairman, a local radio station’s public service di rector and others. In NBC’s Tower Plaza every year a Christmas tree, nearly two-stories tall, is constructed— it’s an artificial one— and decorated. Red poinsettias are placed in lobby planters and on credenzas. Tw o large wreaths are hung in the tree’s vicinity and the Plaza’s ficus trees are decorated with minia ture white lights. A highlight of the seasonal festivi ties is the annual employees’ dinner, which is held in the bank lobby. A sitdown dinner is served and Santa ap pears, giving away humorous “pres ents” such as bloomers, then the tables are cleared away for dancing into the “ wee” hours. In St. Louis: 'H o w -T o ' Series Is Used To A tt r a c t N ew C ustom ers In its quest for new customers for its affiliate banks, Mark Twain Bancshares, Inc., St. Louis, ran a “ H ow -T o” series and invited area residents to at tend each session at the various bank 62 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis offices. At each session’s end, bank o f ficers would mingle with the crowd and solicit accounts. Last Christmas season, the series fo cused on how to bake holiday breads. Three sessions were held during D e It's a 'Man-Bites-Dog' Story N A S H V I L L E — Som eone o n c e said, “ A dog biting a man isn’t news. W h en man bites dog— that’s news!” W ell, here’s just such a story. Angel is a silver-gray French poodle ow ned b y D avid “ Skull” Schulman. Angel, for the past 15 o f her 16 years, has had a Christmas club ac count at First Am erican National. Last year w hen Angel appeared at the bank to pick up her $500 Christmas check, a newspaper ph oto grapher was there and took the ac com panying picture o f her, along with Mr. Schulman and a bank tell er, as Angel “ signed” for the money. The results of the photo, w hich the next day made the front page of the evening paper, w ere 42 pro posals of marriage from dogs throughout m iddle Tennessee (fo r tune hunters, no d o u b t), two calls from the A von lady, inquiries from stock and bon d brokers and real estate salesmen and an offer to in vest in an Alabama oil well. H ow is Angel handling all that fam e? “ She’s becom e so tem pera mental that she now wants an un listed phone num ber,” Mr. Schul man said, noting that the canine knows what to do with a dollar: “ After she shops for m y Christmas gift, she deposits the remainder of her Christmas savings in her regular savings account. And her balance is $5,000!” As evid e n c e d b y g o o d a tte n d a n c e , " H o w -T o " series o f M a r k T w a in B ancshares, In c., St. Louis, w a s p o p u la r. C h ristm as-seaso n sessions d e m o n s tra te d tech n iq u es , recipes fo r b a k in g h o lid a y b re a d s . B a n k officers solicited accounts a fte r end o f each session. cember and a representative of the Missouri University Extension Center was on hand to show basic techniques and recipes. Bank officers have found the series to be extraordinarily productive. At least 80% of the audiences for each ses sion reportedly was non-customer and many, before being asked for their business, told the bank officer of their appreciation for the series and that they would like to convert some ac counts to the bank. Although attendance for the first ses sions wasn’t high— statement stuffers and newspaper ads served as invita tions— most news of the promotion was by word-of-mouth, which caused a snowball effect in attendance as the series progressed. Other topics covered by the series— there were 20 in all— included plant ing a vegetable garden, refinishing furniture and packing luggage for travel. Sessions that proved most popu lar were those in which the speaker actually worked with materials or showed, step-by-step, how to accom plish a task, rather than merely deliv ering a speech. HC officials note that particular in terests of the bank’s surrounding com munity should be considered when planning such a program. Are there any popular sports? Are crafts popular? W hich crafts are most popular? The more time spent on answers to these questions, the better will be the pro gram, Mark Twain Bancshares officials say. MID-CONTINENT BANKER for July, 1976 THESE GUYS W O N T LEAVE WELL ENOUGH ALONE. Toe Blank, Mike Miller and Ron Deal. It seems they have a couple of key phrases that work consistently well. For us, and our corre spondent banking friends. They go like this: What if? Why don’t we? Why not try this? (and) I wonder why nobody else thought of that? W e didn’t get to be the largest bank in the state by offering you the same tired solutions over and over again. W e keep it loose. Because every bank, ana every banking problem, are MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis unique. And w ere flexible enough to find the best solution for you. Because we’ve got people who won’t leave well enough alone. Call us toll free. In Tennessee, T 8 0 0 -3 4 2 -8 2 4 0 . In other states, 1 -8 0 0 -2 5 1 -8 5 1 4 . First A m erican First American Center, Nashville 37237 FirstAmtennBankgroup M em ber FDIC Free With Dep osit: In Baton Rou g e: Bank's Present Is Free Portrait Fam iliar C h ic a g o Scenes D e co ra te C o lle c to r's Plates ‘Silver C h ris tm a s ’ O ffe r Uses G o b lets as Premiums FE R G U SO N , M O .— As a “ thankyou ” to its customers, United Mis souri Bank o f Ferguson offered free full-color photographic portraits as Christmas gifts last year. Customers— both long-tim e and new— merely had to phone the bank for a reservation and 30 days after the sitting, the portrait was finished. Sittings were held at the bank’s two locations. T he photos w ere taken b y Chrornalloy Photographic Industries of St. Louis. Each customer was en titled to one eight-by-10-inch por trait, w hile additional copies could be purchased. The 85-foot-tall lighted Christmas tree in the Civic Center Plaza is a scene that is familiar to many Chica goans and is one of two illustrations that appeared on the 1975 edition of Continental Illinois National’s collector plates. Nutcrack er': Bank Sponsors Ballet; Is Tchaikovsky A d a p ta tio n The plates, which are offered free at Christmas time to those making $300 deposits, also feature a view down State Street in the Loop. The depictions were painted by the nation ally known artist, Franklin McMahon. Last year was the fourth time the bank offered the McM ahon plates as year-end savings-account premiums. The previous issues, now out of stock, were of the John Hancock Building, the Wrigley Building, the Water Tower on North Michigan Avenue, Belmont Harbor, a balloon man in Lincoln Park and a snow scene. European-American Bank, New York City, scored a big hit with “ The Nut cracker Ballet,’’ which it sponsored last December 26-30. The bank sold tickets at all its of fices for the adaptation of the Tchai kovsky musical. Prices were $3-4 per ticket. Performing the ballet was the Eglevsky Ballet Co. of Massapequa. Adding to the interest in the per formance were six members of the cast who were residents of the bank’s area. The ballet tells the story of Clara, a young girl, who receives a nutcracker on Christmas eve. She dreams of the gift throughout the night, imagining that it turns into a young prince who escorts her to the make-believe King dom of Sweets. r This is no ordinary bank directory. $30 $40 standing order single issue »Plus sh ip p in g an d h an d lin g 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AMERICAN Bank Directory 6364 Warren Drive Norcross, Ga. 30071 (404) 448-1011 What’s so special about the American Bank Directory? it’s the only desk-top national bank directory, so compact you can hold it in one hand. A B D ’s convenient thumb-indexed, two-volume format makes it easy to locate complete, essential facts and figures on every bank and multi-bank holding company in the nation. But that’s not all. The American Bank Directory is still America's lowest-priced complete bank directory. That’s what’s so special. Call or write today to order The Extraordinary Bank Directory. Silver goblets proved to be a popular item as premiums during a Christmasseason promotion in Baton Rouge. Fi delity National took in $6.5 million in new deposits during its “ a free start on a silver Christmas” event. Bank officials say the goblets, which were made by Salem China Co., were “of excellent quality and their accept ance by customers was outstanding.” Customers who deposited $25 in a savings account received a champagne/ sherbet goblet free. For an additional $25 deposit, they could purchase either a water, cordial, wine or champagne/ sherbet goblet for prices ranging from $3.50 to $4.75. W hy use goblets as premiums? A c cording to a bank spokesman, the South always has been a good area for silver promotions. It was felt that goblets would appeal to the entire cus tomer base of the bank, that the pro motion could be run long enough to encourage repeat deposits and that the goblets were low in price yet high in quality. And Fidelity National wanted to run a self-liquidating premium pro motion. An initial advertisement offered cus tomers the opportunity to get “ a free start on a silver Christmas” and told readers how they could begin and com plete as many sets as they wished. All they had to do was make qualifying deposits. Was the promotion a success in the long run? One year after its end, 83% of the new accounts still were active and most showed considerable in creases in deposits, an official said. Holiday Drinks 'On the House' A b o u t 2 ,0 0 0 St. Louisans d ro p p e d b y th e " M e r ry D a iry D rin k C o u n te r" t h a t w a s open fo r tw o d a y s p rio r to C h ristm as a t M e rc a n tile Trust. Free cups o f e g g n o g w e r e p ro v id e d b y th e St. Louis D istrict D a iry C ouncil in th e b a n k 's m a in lo b b y d u rin g th e 1 1 a .m . to 2 p .m . p e rio d a n d ________________________ ) visitors received le a fle ts c o n ta in in g h o lid a y recipes. B ank officials say 5 0 g a llo n s o f e g g nog w e r e consum ed d u rin g th e t w o - d a y e v e n t. MID-CONTINENT BANKER for July, 1976 A Different' Loan: with the middle cubed and arranged ornately. T o complement the cheese, a tray of crackers was provided. Since Branson is minutes from the School of the Ozarks, where “ some of the best fruitcakes in the world are baked,” Peoples Bank also had fresh fruitcakes on silver trays. Coffee and chilled cider completed the menu. T o round out the decor, women em ployees wore long skirts and antirrhi num corsages, while the men sported Christmas-greenery boutonnieres, some thing that not only created customer interest, but served to increase staff morale, a bank official reports. In Branson, M o .: Santa Claus Visits Bank, Borrows for New Sleigh Show of Christmas Spirit is Made W ith Decor, Food The first time in 20 years that a downtown Fort Worth bank opened its doors for Saturday business hours proved to fit the schedule of one fa mous person perfectly. W hen Conti nental National opened its mini-bank last November 29, Santa Claus showed up to ask for a loan. As the interested crowd drew closer, Mr. Claus explained that he needed to replace his old sleigh but hadn’t found the time during weekdays to arrange the financing. Wes Clements, the mini-bank’s man ager, handled the transaction for Santa’s new model, which came with a red exterior and chrome railing and runners, deluxe padded bench seat and fold-down rear storage compartment. Santa’s new sleigh even had a fully in strumented dash with a special Christmas-music tape deck. The sleigh’s new owner said the EPA, FEA and FTC gave the new ve hicle full approval: He planned to re tain the time-proven nine-reindeer power plant and bell mounted reins, adding that the sleigh came with a 12year, no-mileage-limit warranty. At press time, no information was available on the terms or length o f time on the loan. “All I can tell you,” said Mr. Clements, “ is that Mr. Claus is married, lives in the North and claims 16,237 dependents, all elves.” An annual holiday tradition of Peo ples Bank, Branson, Mo., is to decorate the lobby and exterior by the first Sun day of December for the town’s An nual Adoration Scene Christmas Pa rade. The week before Christmas each year, a long table is placed in the lobby and heaped with refreshments for cus tomers. Last year, a 30-pound wheel of cheese was cut in a doughnut shape, We are pleased to announce recent elections to the Board of Directors L.J. Weigle Vice Chairman Corporate Secretary, Exxon C o., USA, Retired Richard J. G reen Senior Vice President Secretary and Treasurer Lester R. M oore, Jr. Singing, Presents: Treasurer, Exxon Co., USA, Retired Bank Entertains Children A t Its Annual Holiday Party William E. Westrup, Jr. Youngsters from three San Antonio children’s homes were able to experi ence the joy of Christmas last year when Frost National hosted them at its 10th annual children’s Christmas party. Location for the event was the bank’s cafeteria. The youngsters re ceived refreshments and were enter tained by the Frost Bank choir. The party’s highlight was a visit by Santa Claus, who handed out toys to the visiting children. The gifts were prepared by Frost National staff mem bers as part of the bank’s annual “ Dress-a-Doll, Build-a-Model” contest. Each year, the dolls and model trucks are dressed or decorated by staffers and displayed in the bank lob by for three weeks prior to the party. Representatives of the local news me dia judge the dolls and trucks on ap pearance and originality and cash prizes are given to the creators of the winning entries. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Investments HIBBARD, O'CONNOR & WEEKS, INC. INVESTMENT BANKERS AND SUBSIDIARY COMPANIES 1300 MAIN STREET HOUSTON, TEXAS 77002 65 Bio-degradable: Recyclable Materials Used To Decorate Bank's Trees About 9,000 students from schools across Utah participated in the decorat ing of 40 Chritsmas trees in the lobbies of Zions First National banks through out the state last year. The bank is headquartered in Salt Lake City. Skating Santa Greets Autos Local Choirs Sing at Bank A tradition for the past few years at Palatine (111.) National has been performances in the lobby by out standing area choral groups during the Christmas season. Last year, 12 different groups ap peared during the tw o-day songfest and the pu blic was invited. livery by mail. This system eliminates the need for the institution to inventory glassware. Elements of the promotion include point-of-purchase displays, instructional employee manuals, newspaper glossies, radio commercials, direct mail pieces and in-bank materials, such as teller badges and cards. The program is self-liquidating and is offered on a guarantee sale basis. Event With a C a u s e: 'Dress-A-DoH' Contest Adds Cheer to Christmas Doris T a g g a rt, a.v.p . & PR off., Zio n s First N at'l, Salt Lake C ity, show s off one of 40 of b an k's C hristm as trees w hich w ere decorated w ith re cycled m aterials by 9,000 elem entary-school students from acro ss state. Cash re w ard s w ent to decorators fo r job. What was unusual wasn’t the fact that the students were rewarded in cash for their hand-made decorations or for the job of decorating the trees, rather that all the decorations were of recycled materials. E gg cartons, paper cups, tuna and soda cans, cottage cheese container lids and more were used to beautify the trees. Students from grades three to six worked on the project for two months prior to the actual decorating ceremo nies. W hen the time came, 12-15 delegates from each school were sent to do the decorating. The average tree accommodated 200-300 orna ments, bringing each school involved about $50 to $60, which was used to buy needed materials for the schools, aid needy families, etc. One school bought a parachute for its gym. The students claim it’s better than jumping on a trampoline! H a -H o - H o ! About 100 needy children received dolls for Christmas last year as a result of the Dress-A-Doll contest held by Community Bank of Homewood-Flossmoor, Homewood, 111. The bank provided dolls free to any one who wanted to design and sew a costume for one. The dolls were re turned to the bank, where they weie displayed in the lobby and judged by a panel of local people. Prizes were awarded in the follow ing categories: fancy dress, nationality costume, character, knit and crochet, sensible dress, special class and a bi centennial category. Dolls in the latter category were entered in national com petition. Each contestant received a free photo of her doll and costume. The dolls were turned over to local chari table organizations for distribution to needy families. Coin Banks Appeal to Youngsters Monogrammed Glassware Premiums Offered by Christmas Club A year-round deposit acquisition pro gram for financial institutions was in troduced recently by Christmas Club a Corporation that is said to feature unique benefits for financial institutions and premiums for their customers. The premium is monogrammed glass ware in four-piece settings. The items are obtained b y use of certificates given by the institutions and sent by cus tomers directly to the supplier, with de66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Santa C la u s is an in novative old soul, and proved to be so last Ch ristm as season w hen an ice storm sw ept through Tulsa. He hauled out his roller skates to keep a date at B oulderb an k's drive-up : W hile the b an k's w alk-u p cus tom ers sipped e g g n o g an d munched cookies, Santa skim m ed am on g w a itin g cars and d is tributed go od ie s to d rive -u p patrons. Boulderb an k officials say the h igh ly successful prom o tion, w hich w as held for three d a y s, p ro b ab ly w as a first for Tulsa and b egan a tradition at the bank. Bank Employees’ Club Brings Santa to Youngsters Santa was able to make two special stops in Dallas last Christmas, thanks to the employees of Dallas National. Each year the bank’s Employees Club hosts a special Christmas party, complete with Santa, gifts, musical en tertainment and trimmings. Last D e cember 18, 21 youngsters were trans ported to the bank lobby, where each child received toys and practical gifts, such as clothing. That group of kids was sponsored by the Pleasant Grove Salvation Army. The next day, Santa visited young sters at T. C. Hassell Elementary School. Santa visited each classroom, helping deliver apples, oranges and candy-cane pens. Many of the tots told Santa their last-minute Christmas wishes and promised to be good. Some even stuffed letters into Santa’s hands. Dallas National adopted the public school through the D.I.S.D. Adopt-ASchool program early in 1975. Weekly, 10 or more bank employees leave their jobs and spend two hours volunteer time helping the young students with everything from Spanish to math. Christmas A r t : HC Sponsors A rt Contest For Employees, Children These elfin coin b an ks are m arketed by Money in the Bank, H ialea h, Fla., and can serve as cheerful rem inders to children to save fo r a h ap p y h o lid ay. The b an ks are nontoxic and m ade in the U. S. Besides these tw o, M oney in the B ank has a line of toy-like coin b an ks for other occasions. Heritage Bancorp., Chicago, has an annual event that involves employees and families of all its client banks. It holds a Christmas art contest for chil dren ages five and older. MID-CONTINENT BANKER for July, 1976 Prizes last year varied from category to category— some received $10 or $15 gift certificates for Sears, Roebuck or, for the older entrants, the awards were dinners and theater tickets. New Coupon Books Offered For Christmas Clubbers Rand McNally & Co. has announced a new coupon book for manual and on line Christmas club customers. The new book updates the manual style coupon system in use since the mid-1930s. Featuring a two-coupons-to-a-page concept, the coupon book becomes longer, but thinner, with the ultimate coupon approximately the same size as the older variety. The new books are compatible with old books and can be used interchangeably. The new coupon design includes a preprinted due date that appears under a captioned heading of “ week due.” The preprinted date schedule on paper jacket or inside front cover can be re tained or dropped as wished or plastic jackets can be used so the colorful cover designs can be seen. The two-to-a-page concept is said to encourage multiple payments and saves time in handling, since a teller can han dle one piece of paper for two pay ments. Som etim es enough NewiSbrk’s enough. It really is The Big Apple. There really are a hundred places to find Szechwan oysters, kinesiology classes, maritime lawyers or a Spode gravy boat like the kids broke. But sometimes New York can get to be too much of a good thing. Unless you know somewhere to hide. Welcome to The Barclay. The Barclay is a small east side hotel. (The lobby is about fifty steps across. The Big Conference Room holds twenty people.) The Barclay is elegant without being stuffy, expensive without being ridiculous. Next time you need to get in out of New York, remember The Barclay. N ew coupon b ook by Rand M cN ally fo r its C h ristm as clubs fe atu res tw o -to -a -p a g e cou pons, colorfu l covers. Balloon-Inflating Machine Makes Friends for Banks Financial institutions have been gar nering good will for themselves during this bicentennial year by arranging to loan automated balloon inflator ma chines in the form of manikins to civic organizations staging celebrations. The manikins are equipped with space for tanks of helium. By placing uninflated balloons on the mouthpiece of the manikin and setting a dial, the machine automatically inflates up to 1,500 balloons per hour. The manikins stand almost six feet tall and are garbed in colorful painted outfits. One design features an Amer ican flag motif. The manikins and balloons are avail able from Premiums for Financial In stitutions, Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis When enough New York’s enough. 48th just off Park. (800) 221-2690. In New York State, call (800) 522-6449. In the city 755-5900. Call your corporate travel office or travel agent. Multimillion-Dollar Expansion Program Completed b y NBC of San Antonio OM PLETION of its multimilliondollar expansion project was cele brated recently by National Bank of Commerce, San Antonio, with a grand opening attended by city officials, dig nitaries and friends of the bank. Included on the program were pre sentations by the Central Catholic High School Stage Band, a strolling mariachi group, and the Freedom Folk singers, a patriotic folk group made up of San Antonio high school students. Hostesses provided guided tours of the new NBC Center following a brief audio/visual feature on the cen ter in the Commerce Room. The latter, available for use by civic groups, is sur rounded by trees and other greenery, and its auditorium is equipped for audio/visual presentations. C The NBC Center is a three-cityblock complex linked by landscaped underground walkways to form a bank ing/office building/parking n e tw o r k . The new eight-story office building is located between Soledad and Main, di rectly west of the NBC Tower, which continues to be the center’s major com ponent. The new 10-level parking structure is located just north of the new office building. The office building’s design empha sizes open space and landscaping. A plaza forms the focal point between the new structures and the original bank building. The four banking sta tions on the plaza are covered by a “ space frame,” and the entire area will 68 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis have trees, plants and a fountain. The project has given NBC nine TV banking stations in addition to six pre viously existing personal-contact driveup stations. A commercial customers’ drive-up and walk-up teller and armored car service are located on the parking structure’s ground level. The TV stations allow the teller to be located on the basement level of the motor bank, and the teller and cus tomer see and talk with each other on a TV screen located at each bank ing station. Transactions are handled through pneumatic tubes. As part of the opening festivities, NBC distributed 38,000 American an tenna flags and window decal flags to those going through the new drive-up facilities. Building M arketability' (Continued from page 34) center of the building to facilitate ex pansion and remodeling. Or, ample space for future expan sion can be constructed initially and the bank can lease portions of the building to tenants, staggering lease expirations so they coincide with a timetable consistent with the estimated space needs of the bank. Bank Building can determine tenant potential and project lease rates for the banker, Mr. Bruck says. Mr. Grimshaw points out that many construction firms can build a bank, but few can provide a single source of responsibility for consulting, planning, designing, constructing, equipping and furnishing financial institutions— all of which are provided by Bank Building. Proper site selection, development and utilization are bywords at Bank Building, Mr. Grimshaw says. After these essentials are in hand, a project is ready for planning and design. When all the components of a building proj ect are accomplished in proper se quence, the finished product can serve as a marketing asset for the bank for many years. * * V ariety of Premiums (Continued from page 36) sistant director of public relations at First of Atalnta. T o promote the program, the bank sponsored a “ good buddy” contest on a local radio station, with CB radios going to the four top winners. Con testants were asked to write to the sta tion to nominate someone who had been a good buddy (a term made popular by CB radio fans) to them or others. The people nominated won the prizes, not those who did the nominat ing. About 200 letters were received, each one testifying to someone who had gone out of his way to help some one. Thus, the bank built an extra measure o f good will into its premium promotion. Continental Illinois National, Chi cago, is a long way from Atlanta, but it scored recently with a premium pro motion featuring an item many people wanted. More than 10,000 cameras were moved to customers depositing $300 or more into their savings ac counts during a six-week period early this year. The Polaroid “ Clincher” cameras were not given away, but were sold for about $10. Their retail value was estimated to be $25. Depositors at the bank’s personal banking teller windows were given certificates redeemable for cameras. Those using the bank’s ATM units re ceived certificates in the mail. During the first week of the promo tion, representatives of Polaroid were on hand to demonstrate the camera’s use. A pledge of $2 of each $200 de posited during the “ Greening of the Glenn” promotion at First National, Northglenn, Colo., resulted in a total MID-CONTINENT BANKER for July, 1976 donation of more than $2,000 to the local park department for the purchase of greenery for the city’s parks. In addition, the bank realized more than $800,000 in new money for its own use. The promotion was the idea of the local mayor and was launched during a ceremonial tree-planting last April. There’s no limit to the success a bank can enjoy with the use o f pre miums— as long as the promotion is well thought-out and holds a measure of appeal to the public. * # Historic Fort (Continued from page 38) features on the creation of Fort Lernoult. Full-page coverage also was giv en to the project in the Legal Advertis er, a publication read by more than 5,000 attorneys and businessmen in a tri-eounty area of which Detroit is the principal city. The exhibit was featured on two of Detroit’s major television stations and written about extensively by several of Michigan’s banking trade journals. In addition, a number of suburban weekly publications carried large write-ups about the diorama. At the request of the Michigan D e partment of Natural Resources, a fea ture article was prepared by the bank and was published in the January-February issue of “ Michigan Natural Re sources,” that department’s official pub lication. The magazine is read by thou sands in Michigan and elsewhere in the country. Furthermore, the Fort Lernoult proj ect was written up in “ Bicentennial Times,” official publication of the American Revolution Bicentennial Ad ministration. The importance of the project was also recognized by others. Last March it was a featured exhibit in the 1976 Home, Furniture & Flower Show held at Cobo Hall in Detroit. More than 600,000 who attended the show saw the diorama of Fort Lernoult and its bank-related identification. In addition, as part of the pre-show publicity, extensive information about the scale model of the fort was promi nently featured in the show’s official newsletter, “The Bicentennial Bellring er,” sent to all exhibitors, local city of ficials, community leaders and the me dia. Another part of the publicity build up included a half-hour taped program aired over one of Detroit’s major TV stations two days before the show opened; the scale model of Fort Ler noult was featured on that program as MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis one of the show’s major attractions. Judged by comments to question naires filled out last November by visi tors who saw the diorama while it was on display at Detroit Bank, the model was received favorably by them. Based on information provided by the Detroit Historical Museum, visitors who have seen it there also are favorably im pressed. By these “ yardsticks” then, the bank believes the project can be termed a success. Its real value, how ever, lies in the fact that it helps, once more, to bring attention and perspec tive to the important role Detroit played in the American Revolution. The first professional archaeological work on the Fort Lernoult site occurred in the spring of 1962. Following dis covery of the southwest bastion while constructing the then new Detroit Bank & Trust Building, the bank and build ing owner, Sam Minskoff & Sons, underwrote archaeological research con ducted by Dr. Arnold Pilling of Wayne State University. T o commemorate the official opening of the new building, the bank also com missioned Dr. Philip P. Mason of Wayne State University to write a monograph Detroit, Fort Lernoult and the American Revolution— which re mains the principal authoritative trea tise on Detroit during the Revolution ary War. • * 69 Commerce Bancshares Directors Look at EFTS, International Scene And What's Ahead for Banking By ROSEMARY McKELVEY Managing Editor FTS, international banking, duties of bank directors— subjects such as these were on the two-day program of the 1976 directors’ conference held by Commerce Bancshares, Kansas Citybased multibank HC, at that city’s Ala meda Plaza Hotel last month. Guests included more than 200 directors of the various Commerce banks spread around Missouri. In opening the business session June 5, James Kemper, the H C’s chairman and p r e s id e n t , n o t e d th a t th e group a s s e m b le d that morning rep resented 31 differ ent banks in 29 different communi ties, and it includ ed the largest bank in Kansas City, the smallest one in St. Louis, the second KEMPER largest in Springfield and the newest in Independence. Because the group includes banks in agricultural communities, shopping cen ter banks and banks in older cities that have been surrounded by rapidly de veloping metropolitan areas, Mr. Kem per said, the group is a complete cross section of Missouri. In addition, he con tinued, these banks' directors represent a cross section of business leadership in middle America. E Mr. Kemper paid tribute to the di rectors, saying, “ The management of your banks recognizes our great in debtedness to all of your directors and your communities for your support, and we are anxious to continue to merit your interest and esteem for us as a banking profession.-’ He recommended that those con nected with banking stress the good points of a banking system that has been a major factor in financing an eco nomic system that has out-performed every other system known to history. Mr. Kemper said he believes this is true because banking in this country has been innovative, not over-regulated, and has attracted some of the best tal ent available for that reason. “ W e must not,” he warned, “let the few horror stories in banking in the last few years crowd out the predomi nance of sound, strong banking in a system of free enterprise, and we must not accept complacently the argument that all political problems can be solved by playing around with the money sup ply. If we are to be associated with banks, we must think well of them and speak well of them. W e should do everything in our power to improve the public perspective on banking.” Mr. Kemper pointed out how, as a group, bankers have been criticized for not making more money available on easier terms to people in all walks of life, while, on the other hand, there have been all kinds of investigations of bankers’ “liberality’- in extending cred it. Therefore, he asked, why would any one want to be a banker? The principal M arion O. Riem eier (l.)f ch., Com m erce B ank o f Kirkw ood , talks w ith Mrs. B arney Rullm an and Mr. Rullm an. Mr. Rullm an is pres, of new Com m erce Bank of G ra n d vie w , w hich is sched uled to open Ju ly 12. compensation, according to the Kansas City banker, must be that of the power to get things done, the exhilaration of being at the center of the finest econ omy the world has seen and full par ticipation in the life of one’s com munity. A Director’s Duties. Bill Lamberson, vice chairman of the HC, discussed the duties, responsibilities and opportuni ties of a bank director. He quoted from the Comptroller’s policy guide lines: “ Directors have been placed in positions of trust by the shareholders of the bank. Both statutory and com mon law have placed responsibility for the management of banks, whether it involves the lending or investing func tion, protection against internal fraud or any other activity of the bank, firm ly and squarely on the members of the bank’s board of directors. The directors of a national bank may delegate the day-to-day routine of conducting the bank’s business, but they cannot dele gate to their officers and employees re sponsibility for the consequences result ing from unsound or imprudent policies and practices.” He added that a ma jority of Commerce Bancshares banks are state chartered, but he was sure that Missouri has policy guidelines “ with equally frightening wordage.” Mr. Lamberson had some advice for bank directors: Leave the job of op erating a bank to its management if the latter is capable. This doesn’t mean, he LEFT: P. V. " P le z" M iller Jr. (2nd from r.), pres., Com m erce Bank of K an sas C ity, and H C director, visits d u ring Com m erce B ancshares directors' conference w ith Mr. Don L. Smith and Mrs. Smith (I. and 2nd from I.) and M enefee D. " C h u c k " B lackw ell. Mr. Smith is v.p. & compt,. Southw est ern Bell, St. Louis, an d a director of Com m erce B ank of St. Louis. Mr. Blackw ell, a Com m erce B an csh ares director, is a partner, B lackw ell, Sa n d ers, M atheny, W eary & Lo m bard i, K a n sa s City. CEN TER: Jam es M. Kem per Jr. (r.), ch. & pres., Com m erce B ancshares, talks w ith CBS N ew s com m entator D o u glas Ed w ard s, w ho spoke at conference. RIG H T: W arren W W eaver (I.), e.v.p., Com m erce Bancshares, and N orm an C ow p e rth w aite, pres., Com m erce B ank o f M oberly, get together fo llo w in g business session of H C d irectors' conference. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The daisy is just one of four designs in this exciting new series. And the Earth series is just one of four beautiful new scenic check groups now available for your customers from the Kansas Bank Note Company. J Œ a f t h S / h a All 16 checks are in the new Kansas Bank Note check brochure — designed so the customer may take it home to make his selection. Write or call for sample checks of the Earth Series. e k s KANSAS BANK NOTE COMPANY FIFTH 6. JEFFERSON STREETS • FREDONIA. KANSAS 6673S • 316-378-2146 For your total bank printing needs. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 Presenting BANKERS A Sensible Risk i Management Program In One Step- By-Step Practical Desk Top Reference Guide Mrs. Robert E. Fay (I.) and Mrs. John S. Leffen ta lk w ith each other at p oolside p arty that preceded Friday night dinner and entertain ment. Mr. Fay is a Jo p lin businessm an, and Mr. leffen is ch., Com m erce Bank of Jop lin. N ow ev ery c o m m e r c ia l b a n k e r ca n u n d e r s ta n d , p la n a n d m o n it o r a s e n s ib le p r o g r a m of R is k M a n a g e m e n t . T h is n e w , c o n c is e m a n u a l h e lp s you m ea su re a ll th e lo s s exp osu res you f a c e ...s h o w s h o w t o r e d u c e n e e d le s s a n d c o s tly in s u r a n c e gaps e s t a b lis h in g m ent a or p rogra m , con serve your o v e r l a p s ...a id s fu ll-d im e n s io n a l in c lu d in g bank a ssets lo s s and y o u r in s u r a n c e a n d p r o te c tio n you r is k in m anage fu n d in g , get m ore to fo r d o lla r . (which is by the same publisher o f the Risk and Insurance Manage ment Guide For Savings Institutions) - t a k e s T h is u n iq u e you m anual ste p -b y -s te p - th rou g h ev ery area of R is k M a n a g e m e n t p l a n n i n g - in s i m p l e t e r m s , w i t h s p e c ific e x a m p le s . Y ou n e e d n ’t be an in s u r a n c e a g e n t t o u n d e r s t a n d it . Y e t e v e r y s e c t i o n r e v e a ls n e w , p r o v e n w a y s t o r e d u c e y o u r ris k s , l o s s e s a n d p r o b l e m s a n d is c o n s t a n t l y k e p t u p to d a te. THE RISK AND INSURANCE MANAGEMENT GUIDE •Complete Loose-Leaf, Tab-D ivided, Section Indexed •Ten issues of “ Risk Management News" •Guide Updates For The First Year * 1 0 0 .° ° HOW YOUR GUIDE STAYS UP-TO-DATE You will be automatically billed $50.00 annually for continuing service beyond the first year to keep your guide current. 10-DAY TRIAL OFFER Take 10 days to examine this vital manual at your leisure. If you are not satisfied, simply return the guide at no cost or obligation. Mid-Continent Banker 408 O live St. St. Louis, Mo. 63102 t I I i Please send me The Risk and Insurance Management I Guide for Bankers. The $100.00 initial price includes the j first ten issues o f "R isk Management News" plus all revisions and additions to the Guide. 1 understand if 1 I am not completely satisfied 1 may return the Guide f within ten days and my money will be refunded. Please include appropriate sales tax. □ Check enclosed, please ship postage paid. □ Bill me and add $2.50 to cover postage and handling. □ Please send me further information. } I Name................ .............................................................. ............. j Ti-tle................................................................................................ i Institution................................................................................... I Street................. ........................................ .............................. j City...............................State....................... Z ip ......... 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis said, that directors should abdicate their legal and moral responsibility; it doesn’t mean they shouldn’t keep themselves fully informed as to the execution of the board’s policies, how management is performing and the bank’s doing. On the other hand, he continued, if the bank’s officers aren’t capable of carry ing out policies and operating a profit able institution, they should be re placed. One thing is clear, he empha sized: Directors cannot manage the bank. A bank director, said Mr. Lamberson, must see that his bank functions as a positive contributory element of com munity life, must not divulge confi dences exposed in the board room and should bring new business to his bank. The first thing a director can do, he continued, is to bring in his own ac count and that of his business. How ever, he warned, before recommending his bank’s services to others, the di rector should be thoroughly familiar with its facilities and capacities and be sure that it’s able to take adequate care of a prospect’s needs. Naturally, said Mr. Lamberson, a director should not try to take over functions of the credit and loan officer and shouldn’t put him self in the embarrassing position of seeming to promise something the bank has to turn down. Apart from being a bank booster among business and social acquaint ances, Mr. Lamberson advised, a di rector can be extremely helpful to the bank’s new business department by providing it with leads on prospects, giving introductions and even using his influence with prospects in support of the bank’s own efforts. A Forecast for Banking. Potential de velopments in the financial field were discussed by J. B. Bowers, the H C’s director of research and planning. The laundry list, which included those al ready occurring and those likely to occur, is as follows: 1. All federally chartered financial institutions, includ ing S&Ls, savings banks and credit un ions, will offer checking accounts. 2. All these financial institutions, as well as commercial banks, will pay interest on checking accounts. 3. Interest-rate ceilings on savings and time accounts will be modified or removed. 4. S&Ls, credit unions and savings banks will be granted expanded consumer lending powers, including credit card programs and trust powers, nearly equivalent to banks. 5. All federally chartered thrifts will becom e active participants in com mercial paper markets, corporate debit markets and bankers acceptances. 6. Tax treatment will be equalized for fi nancial institutions, and tax incentives will be given those institutions willing to commit certain levels of their fi nancial resources to the residential mortgage market and to community de velopment. All the foregoing, said Mr. Bowers, will have the effect of blurring the distinctions between commercial banks and other financial institutions. He also had a laundry list of future consumer services, including: direct and automatic deposit of checks; guar anteed check-cashing privileges for most consumers in all major retail stores; bank teller services at major grocery store outlets, at some retail out lets and at unmanned automated teller machines; bill paying by phone for routine bills; transfer by phone of funds between checking and saving, install ment loan or credit card accounts; and a combined single monthly statement from a bank reflecting transactions and status of each banking service. At about the same time as these innovations take effect, Mr. Bowers continued, incentives will be offered consumers to forego re turn of their canceled checks and, in their place, receive descriptive state ments much like their current charge card statements. Mr. Bowers foresees consumers be coming increasingly protected against infringement on their financial privacy by the government, creditors and em ployers. Corporate bank customers also were in Mr. Bowers’ forecasting: They will get more efficient collection of items de posited in corporate demand accounts; increasingly greater amounts of corpo rate receivables will be collected elec- Enjoying cocktails before luncheon that closed directors' m eeting are these P op lar Bluff resi dents (I. to r.): Mrs. D onald E. Ham m , w ife of pres., Com m erce Bank o f P op lar Bluff; Mrs. Lew is M iller; Mr. M iller, real estate agen t; J. Lee Purcell, law y e r; an d Mrs. Purcell. MID-CONTINENT BANKER for Julv, 1976 Some representatives of Com m erce Bank of H a n n ib a l at conference are (I. to r.): J. C. Raible, ch. of b an k; J F. " F ra n k " D avidson, M onroe City businessm an w ho is on H an n ib a l b an k's board ; Mrs. D avidso n and Mrs. Raible. sas City bank with a full-time foreign exchange trading desk. What’s New. Commerce Bancshares directors were shown samples of TV commercials that carry out the new HC banks’ theme, “ What Can W e Do for You? Just Ask.” They also saw com mercials of some individual HC banks and slides featuring various HC officers discussing what’s going on in the hold ing company and heard Douglas Ed wards, CBS news commentator, talk on “ W hat’s Right About America.” The night before the business meet ing, the HC was host at a dinner, fol lowed by entertainment that included Larry Logan, harmonica virtuoso, a tronically; the float game played so well by large firms will becom e one of di minishing returns as automated clear ing houses, regional check-processing centers and wire collection of large items result in one day or less present ment of checks, no matter where the checks are deposited or drawn; and as that day approaches, corporations will switch their cash-management priorities from float to that of total information about their immediate cash positions, cash requirements and status of alter native money markets in which to in vest idle funds. A principal effect of these corporate laundry list items, said Mr. Bowers, will be an unbundling of bank services in the sense that a more structured service fee will emerge be tween banks and corporate clients, and compensating balances will be less im portant, except to the extent that the balances are directly related to the terms of the loans themselves. The International Scene. Don Alex ander gave an international report. Formerly manager, international depart ment, Mr. Alexander recently was named vice president, loan administra tion, for the HC. However, he continues to manage international activities for Commerce Bancshares and its affiliates. He pointed out that in recent years, labor costs have risen slower in the U. S. than in most industrialized coun tries— a 40% increase in this country and anywhere from 100% to 300% in other industrialized nations. Mr. Alexander touched on the M id dle East, from which he had recently returned, and inflation in this and other industrialized countries. He then turned to Commerce Bancshares’ international department, saying it has entered into some new activities during the last two years and has changed its position from purely service to service and income producing. Although this department’s principal activities, he continued, still are letters of credit, collections, foreign currency, payment orders and transfers, an increasing portion of its time is de voted to foreign exchange trading and direct lending overseas. He pointed out that Commerce Bank is the only Kan MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis group from “ Up With People’ and dancing. Kansas City Mayor Charles Wheeler welcomed the directors dur ing the dinner. * * • BankAmerica Corp. San Francisco, has received approval to list its stock on the New York Stock Exchange. The HC has listed 70,429,630 shares of com mon stock, which has been allocated to the specialist firm, Robb, Peck, M cCooey & Co., Inc., New York City. In early June, the HC’s directors authorized a two-for-one stock split and, subject to market conditions, issuance of addition al shares. If approved by shareholders, the split would be effective August 17. Every banker has them —problem loans with seem ingly insufficient or unsatisfactorily controlled col lateral. And because business will be looking to their banks more and more for expansion capital, the prob lem will be compounded, not simplified. Douglas-Guardian has been in the business of uncomplicating inventory collateral for banks and their customers for over 50 years. We simply bring our Traveling Credit to the situation in the form of Field Warehousing. We are doing it every day for banks just like yours. We would like to work with you on your current “ problem child.” Together we might be able to turn him into a little angel. Douglas-Guardian Warehouse Corporation P.o. Box 52978, New Orleans, La. 70152, Phone (504) 523-5353 Offices in 15 principal cities 73 Go Slow' on EFT Development Advice of Retailer Rep At New Mexico Convention PLEA for a “ go slow” policy on EFTS legislation was voiced by H. R. Lively, director of public affairs for Sears, Roebuck & Co. at the New Mexico Bankers Association convention in Las Cruces last month. Mr. Lively told bankers in no uncer tain terms that the nation’s retailers will vigorously oppose any attempt on the part of financial institutions to encour age legislation that would interfere with retailers’ existing or planned ser vices in the EFTS area. He said that representatives o f the fi nancial industry are spreading fabrica tions about the intent o f the retailing industry to muscle in on banking’s do main by offering competing services, such as overdraft services on charge cards. He added that fabrications some times becom e true after they have been voiced over and over. Mr. Lively asked bankers to consider where the problem lies that has gen erated such heated debate. “ If retailers truly do not desire to enter traditional banking activities, why the allegations that we lurk in the wings ready to leap out and seize control o f EFTS? “ Those who promote these ideas have another motive. The magician knows that a little diversion will cause the eye to flicker. W e all know the hand is faster than the eye. Regrettably EFTS is being used as a vehicle and A the allegations about the big national retailers’ desire to take over banking services or, at the least, control of EFT systems, is designed to cause the eye to flicker while the traditional limita tions on branch banking are being man handled by the larger financial institu tions. “ For the fact is indisputable that any major roll out o f electronic banking will be difficult to cost-justify if branch banking laws limit installation o f ter minals and their distribution to con venience points for consumer access. “ There is no technical limit to the electronic marketplace, and, as we have said, cost justification demands an ex panded base. W e are in an era of tran sition imposed by the evolution of technology; thus, laws originally meant to protect financial institutions from en croachment now have a limiting and restraining effect upon those very in stitutions.” He said that Sears is never likely to utilize bank cards with a credit feature. “ But,’ he added, “ if consumers learn to accept a plastic card replacement for the more traditional demand-deposit in strument, we may wish to utilize them in our stores. W e don’t want laws that would mandate that we accept other services, either, for in our reluctance to enter other service fields, such as bank cards, we may be forced to refuse some F lan kin g convention sp eaker Ja m e s E. Smith, Com ptroller of the Currency, are NM BA Pres. W ayne Stew art (I.), pres., First N at'l, A la m o gordo, and Denton R. H udgeons, NM BA e.v.p. Mr. Smith announced his resignation shortly after convention ended. Live lys (I.) and Stew arts pose d u ring social hour at N ew M exico B an kers A ssn , convention in Las Cruces last month. H. R. Lively is dir. of p u blic affa irs for Sears, Roebuck & Co. and spoke at convention business session. W ayne Stew art, as NM BA pres., w as p resid in g officer at convention. services which square with our business philosophy. “ I urge that you not fall prey to over zealousness in seeking legislation in this field and urge most sincerely that, ab sent a serious and compelling need for legislation to deal with specific prob lems, that laws limiting, regulating or dealing with the development of EFT systems should be delayed until the Na tional Commission on Electronic Fund Transfers releases its report.” Comptroller o f the Currency James E. Smith forecast a good economy for the next 10 years. He said the country is forming a good base from which to expand for a healthy, lasting economic future. Tw o recommendations were made during the meeting in the area of NMBA operations. The first was that N ew NM BA officers pose w ith o u tgoin g Pres. W ayne Stew art (I.), pres., First N at'l, A la m o go rd o . They are: C h a rle s Jo p lin (2nd from I.), pres., Security N at'l, Rosw ell—pres.-elect; W. R. N icks (2nd from r.), pres., C itize n s State, S p rin g er—pres.; and Ralph F. Petty Jr. (r.), pres., Bank of Santa Fe—treas. 74 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 How to feed a fam ily of 12 m illion for only $106 m illion a week. First City National Bank provides an across-the-counter look at Texas retail businesses. The more than 12 m illion people w h o live in Texas carry hom e over $5Vi billion w orth o f groceries a year. That’s enough food to place grocery stores second in total retail sales statewide. A n d if that sounds appetizing, consider that Texans spend an additional $20 billion at 105,000 other retail e s ta b '. lishments every year... from cafeterias to camera stores. A s the cash registers total up, so does the retailer’s payroll, to the tune o f $3 billion a year for 650,000 employees. But it takes more than custom ers’ dollars to build a successful retail business in Texas. It takes solid financial backing. A n d First City National Bank is helping merchants find exactly what they need. This in v olv e ment has provided us with first hand retail experience.W hat w e’ve learned is yours for the asking. ' . W e ’re becom ing involved with MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis more and more industries every day. A n d w e’re proving to correspondents that more service is the result o f more experience. Understanding business as well as banking has made us a major finan cial strength behind Texas industry. FIRST COY NOTIONAL RANK OF HOUSTON 75 the convention site be changed to Al buquerque on a permanent basis. The second was that the NMBA consider moving its offices to Albuquerque from Santa Fe. Neither recommendation was acted upon. W . R. Nicks, president, Citizens State, Springer, was elected NMBA president. Mr. Nicks went on record in favor of moving slowly and cautiously in developing EFT. Mr. Nicks is succeeding Wayne Stew art as NMBA president. Mr. Stewart is president, First National, Alamogordo. Named president-elect for the coming year was Charles A. Joplin, president, n nn pphp r f ' r~\ FOR THE RIGHT MAN f. r r r r v r r Livin g past presidents of NM BA gath ered for g roup photo d u ring convention. O u tgo in g Pres, W ayne Stew art is 3rd from I. in front row . Security National, Roswell. Reelected treasurer was Ralph F. Petty Jr., presi dent, Bank o f Santa Fe. Serving as new executive council members will be H. Barton Jones, president, First National, Tucumcari; William Robertson, president, Citizens Bank, Las Cruces; and Reba Thomas, vice president, American Bank of Com merce, Albuquerque. Mrs. Thomas is said to be the first woman to serve on the NMBA executive council. Next year’s convention is scheduled for Santa Fe. • • ■ DALLAS N ATION AL Bank is the new name of Fair Park National, Dal las. According to a bank spokesman, the change emphasizes the bank’s de sire to be a major banking center. A new symbol which accompanies the name change has been described as nonrepresentational, reflecting “ diversi fication in banking, money in action and progressiveness.” Santa Picks Prize Winner HOUSTON— Richard J. Green has been elected senior vice president, sec retary, treasurer and director of Hib bard, O ’Connor & Weeks and subsidi ary companies, investment firm based in Houston. f.C'.OR THE RIGHT JOB FP Pf Green Leaves Houston HC To Join Investment Firm ...executive personnel for banking, finance and related fields contact TOM CHENOWETH, I , I I manager FINANCIAL?1 PLACEMENTS,^1 2 Baltimore, Kansas City, Mo. fa. phone 816 421-7941 g 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Santa C la u s, w ith the assistan ce of tam es N el son, a.c.. H eritage Bank, Coun try C lu b Hills, III., d ra w s the w in n in g entry for the gian t C h ristm as stocking. The d ra w in g for the eigh tfoot stocking, w hich w a s p acked w ith m ore than 25 toys, w as part of H e ritage B ank's h o lid a y celebration last year. He was formerly senior vice presi dent, secretary and treasurer of Fed erated Capital Corp., HC controlling Capital National, Houston, and other banks. Mr. Green’s new duties include serv ing as operations manager of the parent firm and its subsidiaries. He joined Capital National in 1965 as controller and organizing officer. MID-CONTINENT BANKER for July, 1976 After-Christmas Club Is Marketed Nationally By Bank, Ad Agency À new concept of Christmas clubs has been introduced by Community Bank, Verona, Va., and its advertising agency, Marketers plus, Inc., Lynchburg, Va. It’s called the “ After-Christmas Club” and is designed to counteract any mis givings bank customers might have to the traditional club concept, according to Louis B. Houff Jr., president, Mar keters plus. The major differences in concept are that After-Christmas Club payments be gin a month after the holiday, which enables members to use their entire Christmas club check for holiday spend ing before having to rejoin and com mence making payments on a new club. Customers can enroll in the club during a three-month period extending from November to January. Once the payments begin, they ex tend for 40 weeks, instead of the tradi tional 50, according to Mr. Houff. Checks are mailed the first week in N o vember. Five percent interest is paid on completed clubs. The new concept was tried out at Community Bank last year, following extensive marketing tests by Marketers plus. Announcement of the club was made on the final Sunday of 1975 (see advertisement in adjoining columns) and was followed by two more newspaper ads and a week of radio spot announce ments on two local stations. According to Mr. Houff, not only did the ad achieve remarkable readership for the bank, it sold the After-Christ mas Christmas Club. He said the re sults led to the decision to market the club nationally to one institution in a market. Mr. Houff estimates that the new club concept can result in increased enrollment of from 37% to 86%, depend ing on the demographics of the spon soring bank’s market. He also says the concept holds special appeal to the 35 to 49 age group in the $20,000 to $30,000 income level. ■ CAPITAL NAT L, Austin, Tex., has named J. Mike Battle vice president and marketing manager and Gene Richardson correspondent banking officer. Mr. Battle formerly was vice president, senior commercial loan officer and sen ior marketing officer with an out-ofstate bank, while Mr. Richardson pre viously was senior vice president, First State, Austin. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This ad introduced A fter-C h ristm as C hristm as Club to m arket served by Com m u nity Bank, V eron a, V a., last Decem ber. Success of prom otion resulted in decision to m arket p ro gram n atio n ally. stops at nothing except a counterfeit! The new Brandt®Countess®System 865 with Counterfeit Detection Aid (CDA) counts and batches currency at speeds up to 1200 per minute. But stops instantly when a suspected counterfeit is detected. A unique fail-safe feature assures you that the CDA is functioning properly. And by simply moving a switch, your staff can bypass the CDA to batch and count a wide range of documents. The new Countess System 865 with Counterfeit Detection Aid. To help you be more vigilant and more efficient at the same time. Call your local Brandt Representative today. Or write us for more information. BRANDT SYSTEMS is a strong chain of products and services to provide you with an efficient, coordinated money processing system. Our nationwide team of specialists provides the links of Analysis, Equip ment, Training and Service . . . to generate new profits for your operation. 77 Fed Policy, Legislation, ACHs Main Topics at French Lick As Indiana Bankers Gather ONTRARY to an increasingly popu lar view, the relationship between the growth of total spending and the more narrowly defined monetary ag gregates is still as stable and predict able as before. This was the personal view of Eu gene A. Leonard, first vice president, Federal Reserve Bank, St. Louis, at the 79th annual convention o f the Indiana Bankers Association last month at French Lick. “ It is possible, however,” he said, “that in the future the Federal Reserve may find that control of the growth rate . . . no longer has the pre dictable impact that it has had. Things do change and the central bank must be constantly alert to these changes. The process by which we measure the amount of money held by the public is subject to constant (F ed ) review,” he said. He noted that “ conventional wisdom now holds that the required degree of flexibility in short-term rates would cause an unacceptable degree of dis ruption in financial markets. I question the conventional wisdom— it is likely that if the Federal Reserve follow ed a policy of more stable monetary growth, then there would be less fluctuation in interest rates than we have observed over the last 10 years. “The Federal Reserve already pos sesses all of the powers and controls that it needs in order to control the monetary base. I would recommend that the Federal Reserve narrow its fo C cus, not broaden it, if it perceives a need to change the way it operates.” In his final business address to In diana bankers, C. Lloyd Griffis, IBA president, related some successes and some failures in the Washington legis lative halls. Saying Washington “ seems to thrive on tinkering,” he reported on Senator William Proxmire’s (D.,Wis.) intention to amend Senate Bill 2304, “ the so-called ‘insider bill,’ so as to lim it the aggregate of all insider loans to be no more than 20% of the bank’s capital accounts. “ Based on the definition o f loans to be aggregated and the definition of what constitutes an ‘insider,’ the amend ment would virtually eliminate half of the members of most bank boards if the businesses they own or manage are to be served by their bank.” Mr. Griffis said “ there was quite a fuss over a bill designed by Congress man Henry Reuss (D .,W is.) to increase earnings to savers, increase availability of mortgage money and reduce the cost of borrowing to the consumer. Obvious ly, Mr. Reuss was not able to prove all those paradoxes, even to his own com mittee, or the bill would have been re ported out. One of the items . . . was the removal of the prohibition of inter est payments on demand deposits. This again was supposed to make more cred it available, particularly for housing, and at lower costs, thereby helping the consumer.” The Bluffton banker said that func Eugene A , Leonard, 1st v.p., St. Louis Fed, spoke on "Th e Econom y—A m erican Style." BO W EN HU B B AR D B LA K E A m ong sp eak ers at IB A convention w ere In d ia n a G ove rn or O tis R. Bow en, M.D. (I.); Ja m e s J. H u b b ard (c.), pres., H u b bard & A ssoc., W heaton, III.; an d A ctor Richard B lake (r.) as A b ra h a m Lincoln. tional cost analysis reports prepared for his bank for 1974 and 1975 indicate that “ 76% of our checking account cus tomers hold 7% of our demand deposits. Put another way, if we were permitted or mandated to pay interest on check ing accounts, 93% of that interest paid would accrue to 24% of our checking account customers. “ All our efforts were not so success ful, however. The recent Federal Trade Commission ruling on the “ holder in due course doctrine” is a classic case of regulatory overkill. Despite strenu ous efforts by the ABA, the Fed and others, these rules have been put into effect; they not only extend their im pact beyond reason but contain enough ambiguities so as to defy rational in terpretation.” A new name for automated clearing IB A pres, for com ing y ear is W illiam C. Farrell Jr. (2nd from r.), pres., Elston B an k, C ra w fo rd sville. He iis w ith m em bers of panel d iscu ssin g A B A go ve rn in g council activities. From I., G e o rg e L. W hyel, council ch., and v. ch., G ene see M erchants Bank, Flint, Mich.; Richard A. Life, pres., W ab ash V a lle y B ank, Peru, an IBA p ast pres.; and C. Lloyd Griffis, pres., O ld -First N at'l, Bluffton, im m ediate IB A p ast pres. 78 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 Your bank m akes our investment service different Continental Bank’s Portfolio Advisory Service is different. W hy? Because w e know the needs and goals of every bank are different. Our banking and investment specialists initiate the service by doing a thorough analysis of your bank’s trade area along with your deposit and loan trends. Then, weighing these particulars against future market and econom ic indicators, w e help you build the kind of liquidity portfolio and investment port folio that are best for your bank. Join the Continental Correspondents w h o’ve added our years of commercial banking expertise to their portfolios. Call Barry Johnson at 312/828-4730. You’ll find w e'll go out of our w ay to find a w ay to help you. CONTINENTAL ILLINOIS CORPORATION MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 On the French Lick g o lf course w ere (I.) fou r some in clu d in g (front) Bob Rose (I.), A m erican N at'l, V incennes; Jim Barnett, C itizen s B an kin g Co., Lynn. Rear: Ken M iles (I.), C oryd on State; W ayne Pierce, Su llivan State. In r. photo are Rick Tow ler (I.) and M ike Richard, M erchants N at'l, In d ian ap o lis. houses (ACHs) was suggested to con vention delegates by Larry O ’Brien, executive director, Indiana Exchange for Automated Payments (INDEX), In dianapolis. “ SurePay” is the name he recommends to all 27 bank-sponsored ACHs in the country. He called it “ a universal name, one that will lend itself to successful advertising, promotion and marketing.” There are now more than 100 In diana members of INDEX, but Mr. O ’Brien admitted that progress had been slow since ACHs started in 1972. “ In 1975, only four million items were processed in the U. S.,” he said. He cited “huge volume in European countries— there were 240 million trans actions in Great Britain alone,” he re ported. As for IN DEX itself, Mr. O ’Brien said that the operating and marketing committees are being expanded and that advertising and promotion is need ed to educate the public. Governor Otis R. Bowen said “pocketbook economics still command atten tion,” and reported that unemployment in the state dropped from a high of 9.6% to 5.7% as of May, 1976. With obvious pride he said that Indiana ranks eighth among all states in export volume. “ Overseas business in our state amounted to $4 billion last year,” he said. The governor was critical of federal policies for the so-called “ Sunbelt” states in the midwest and said that Michigan, Ohio and Illinois would be hurt the most. Four panelists reviewed topics highly ranked by the ABA’s governing council. George L. Whyel, the council’s chair man and immediate past president of the ABA, chaired the panel. He said the council has 152 members, each having two-year terms. Four meetings are held each year and at last fall’s meeting “ these topics were considered uppermost: a financial advertising code of ethics, economic education, CBCTs, government relations and BankPAC.” 80 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Richard A. Life, ABA state vice president from Peru, said CBCTs “ com mand widely divergent views, to say the least, and this complex subject will continue to be a major topic among all financial institutions.” President-Elect William C. Farrell Jr. of Crawfordsville, speaking on BankPAC, admitted the national record “ isn’t good.” The national goal for polit ical contributions is $370,000 and In diana s is $9,000, he said. “ $2 per bank officer is the average donation sought,” he added. Speaking on government relations was C. Lloyd Griffis, IBA president. He listed four criteria as the basis for dis cussion o f this topic by council mem bers: What affect will a given bill have on the bank customer? What is the competitive situation? What is na tional policy on the proposed subject an d /or bill? What is the affect on all financial institutions? Answering criticism sometimes put to the ABA on negativism, Mr. Griffis said ' it is very difficult to be positive on negative topics.” James J. Hubbard, former bank and S&L executive and now a financial con sultant in Wheaton, 111., listed 12 “prac tical ideas for competing with S&Ls and credit unions.” 1. Sell your present customers. They’re already with you, but any where from 20%-50% of your checking customers don’t save with you. 2. Give your products a difference. Put together attractive bundled services that offer a benefit. 3. Put one person in charge of all personal banking services. This consoli dates accountability for all of the per sonal banking business— deposits and loans. 4. Start a call program for large-bal ance customers. W hat’s true for your wholesale business is true for your con sumer business— a high percentage of deposits belong to a small percentage of customers. 5. Know what your competition is doing. Use the telephone and shop your competitors. Or hire a competent shop ping service. Do it often, perhaps semi annually, and monitor competitors’ ads, too. 6. W elcom e W agon arrives too late. Seventy-five percent of the banking de cisions are made before the person moves to town or within the first five days. 7. Train your contact people. Offer good training in your products and those of your competitors. Provide writ ten manuals for your staff, with de scriptions of your products and compari sons with competitors’ products. 8. Make every customer feel like a king. Train employes to use customers’ names. Use a positive approach; elim inate the “ we don’t allow,” “ we can’t do that” phrases, have a “ can d o” phi losophy. 9. Open a $1 savings account for new checking customers. A healthy per centage— up to 80% or more— will grow into thriving savings accounts over a period of several months. 10. Screen customers, then offer pre approved installment loans and per sonal credit lines. Growth in outstand ings will more than justify the cost. Offer credit— both personal credit lines and pre-approved installment loans— to new checking customers in a positive benefit-oriented approach. 11. Use a single new accounts form for deposit and loan services. It makes buying easier for the customer and sell ing easier for your people. 12. Emphasize dollar return on sav ings vs. rate. Show how “ $1,000 can become $1,561.35 in just six years,” in stead of just saying “ we pay the top rate, or “we pay 7.5%.” Customers want dollars, not percentages. William C. Farrell Jr., president, Elston Bank, Crawfordsville, was elect ed president of the association. Other new officers are vice president, Tom G. Voss, president, Seymour National, and treasurer, William H. King, presi dent, Second National, Richmond. Three men were elected to one-year terms as members-at-large of the asso ciation: Lyle Brighton, executive vice president, Owen County State, Spencer; William R. Irwin, executive vice presi dent, Farmers Bank, Frankfort; and Robert E. Price, president, Central State, Connersville. * * MID-CONTINENT BANKER for July, 1976 Randolph Stivers, Executive Vice President of First National Bank & Trust of Corbin con ducts Jim McKenzie, Asst. Cashier, and Murphy Brock, Vice President of Liberty Bank, on a tour of downtown Corbin. MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Liberty National Bank and Trust Company of Louisville 81 Economist Tells Merc Baseball Party O f Possible Trouble in Late 1977 By DANIEL H. CLARK Editorial Assistant HE NEAR-TERM economic out look is good, but the last three quarters of 1977 may mean trouble. Those were the predictions of R. G. Dederick, senior vice president and economist, Northern Trust, Chicago, at the “ Spirit of ’76” Correspondent Easeball Party of Mercantile Bank, St. Lou is. The party was held at Stouffer’s Riverfront Towers in St. Louis. The annual event of Mercantile fea tured “ bullpen sessions’" for the men, during which Lynn H. Miller, bank executive vice president, was the mod erator of a commercial loan panel. Pan el members were Donald B. Wehrmann, senior vice president, St. Louis group; Patrick J. Brennan, senior vice president, international banking; Charles A. Elfrank, senior vice president, per sonal banking; J. Richard Skouby, sec retary, legal department; and James A. Smith, senior vice president, central group. Jack Buck, sports director of KMOX Radio, St. Louis, was on hand to pro vide commentary on recent develop ments on the major-league baseball situation. For the spouses, there was a concurrent program on the 1904 St. Louis W orld’s Fair, presented through the eyes of a photographer who was there, and including a slide program bv Mrs. E. J. Birk. Following the afternoon sessions, a cocktail reception was held. Dinner was served at 5 p.m. so guests could finish in time for the Cardinal baseball game at Busch Stadium at 7:30. In welcoming the correspondent bankers to the men’s bullpen session, Donald E. Lasater, chairman and CEO of Mercantile Bank, warned of the in creasing strength of credit unions. He called on bankers to examine them selves and find banking’s common ob jectives. Mr. Lasater urged bankers to speak out on the issues and to let peo ple know banking’s opinions about pro posed legislation before the lawmakers act on it. “ Regulators are going too far because banking hasn’t gone far enough,” he said. As far as the near-term economic outlook is concerned, things are rela tively cheerful, said Mr. Dederick, who was the featured guest speaker during the men’s bullpen session. During the rest of 1976 and into the T 82 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis first quarter of 1977, he predicted, out put and the economy will rise. “ There is no question that we will continue to experience a recovery for the next nine or 12 months: W e have something go ing for us, and that is the momentum of the recovery, momentum that will be self-reinforcing. Such momentum usual ly continues unless some serious imbal ance arises,’ Mr. Dederick said. The reasons for a predicted continu ance of that recovery, he indicated, are threefold. The first is that there is much room for growth in this country; the second, that there is much liquidity to finance that growth; and the third is our government’s policy, one “ that is hardly restrictive,” he said. The low level of business inventories is a good sign, the Northern Trust economist said. It is a major imbalance present in the economy that encourages spending gains rather than spending in creases. Mr. Dederick predicted that in the next year there would be a 5/2-6/2% real growth rate, a profit gain of 25-30% and that unemployment would dip to a figure somewhere below 7%. “ Inflation,” he said, “ is hardly a source of concern at present.” It will be under control through the next nine or 12 months. Mr. Dederick said that slack labor markets would keep wage increases down, as would the strained financial positions of state and local governments, adding that most union workers won’t be getting large wage increases during that period. What about the inflation rate over the next year? Mr. Dederick pegged that at 5-6%. As far as the financial markets are concerned, he said, "nothing disastrous” is ahead in the short-term future for money and bond sectors. He felt that the Fed would not impose a tight mon etary policy and forecast a rise in short term rates of possibly 100 basis points over the coming year. That, he said, would mean a prime rate of about 8%. Calling 1977 the “Year of the Capital Spender,” Mr. Dederick prognosticated about inflation concerns, a major is sue of the coming year. “ W e possibly will have very good crops this year and the next,” he said, something he saw as a constraint to inflationary pressures elsewhere in the economy. But, Dr. D ed erick added, we’ll have to be lucky, because 1977 will be the third year of the recovery. It’s almost certain, he said, that w e’ll run into some signs of strain in some markets, especially when R. G. Dederick, s.v.p. & econom ist. N orthern Trust, C h ica g o , w a s spotlighted sp eaker du ring B aseb all Party of M ercantile Bank, St. Louis. He predicted good near-term econom ic outlook, expressed concern fo r last three q u arters of 1977. a recovery is happening all over the world. During a synchronized world recov ery, he noted, some prices may rise faster than others, so we’ll have a wan ing of cost-push inflation, while de mand-pull pressures may begin to wax. Those demand-pull pressures, Mr. D ed erick said, are likely to outweigh the cost-push inflation in 1977, causing in flation to becom e a problem— but not one that’s likely to explode. The major concern, he pointed out, would be concerns about inflation. It would be approaching the fourth year of the recovery, and it is natural for people to begin expressing concern about “ rampant” inflation. What would be the response to those concerns? He said it would depend on the political party in power at that time. Republicans would have a low in flation-pain threshold; they would do something about inflation even if infla tion was only forecast. Republicans, he noted, don’t use fiscal policy well, due to a Democratic Congress. That would result in a tightened monetary policy; interest rates would then go up. If the Democrats were in power, they would be less frightened by infla tion, Mr. Dederick said. Democrats would wait until inflation “ showed the whites of its eyes,” then look for a new way of holding it down. Their solution probably would be innovation in the wage-price-interest rate setting process, he predicted. In conclusion, the Chicago economist saw 1977 as a year for possible concern because either aforementioned method of controlling the economy is bad. He expressed a dislike for reigning in the economy when unemployment is 6% or higher; likewise, he disdained a Dem o cratic-party interference with market mechanisms. “That,” Mr. Dederick stated, “ is something Americans have never been very successful at doing.” MID-CONTINENT BANKER for July, 1976 "T h is deposit ticket has cut our direct deposit processing tim e by at least 75%. If anything is w orth the money, this is it’ Robert S. Straz, Cashier Worth Bank & Trust Worth, Illinois “When the direct deposit of checks first becam e popular, we were doing all of our credits by hand. It involved a lot of time, especially forwarding an advice to the customer. “ Then, we began using Harland’s Direct Deposit ticket, and immediately we realized a time savings. Now, we simply fill in the amount of deposit on the MICR encoded, pre-im printed d ep osit ticket, drop the customer’s portion of the snapout form in the accom panying w indow envelope and mail it. Nothing could be easier. “ The Harland Direct Deposit ticket has cut our processing time by at least 75%. The cost of the tickets is easily o ffse t b y the amount of time saved. “ Once again, Harland helped us solve a problem with a good idea!’ A t Harland, we do more than print checks. We print good ideas. Q HARLAND BANK STATIONERS, PO. BOX 13085, ATLANTA, GEORGIA 30324 MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 From the Mid-Continent Area A labam a States Chapter. Mr. Ash joined the bank in 1972 and Mrs. Raley, in 1970. ■ CITY N ATION AL, Dothan, has named John P. Wilson and Nicholas R. Ash vice presidents and Bettye J. Raley assistant cashier. Air. Wilson, the bank’s senior commercial loan officer, joined City National in 1971 and is the com ing year’s president, BAI Southern Tri- E KEN W, RA4 has been named vice president, operations department, First National, Birmingham, while William C. M cDonald has been elected assistant cashier and Southside Branch assistant manager. Ernest W . Stephenson Jr. has been elevated to assistant cashier, First National branch administration depart ment. CRO W Let our billion dollar organization help your bank profit. Call Lynn Mosley (205/832-8588), president of First Alabama Bancshares, Inc. P E N N IN G T O N B JAMES S. CROW , chairman and president, First Bancgroup-Alabama, Inc., Mobile, has been named a member of the 1976 National U. N. Day Com mittee. Membership of the committee of business and labor leaders will help direct the October 24 United Nations Day program across the country. At the H C’s lead bank, First National, Mobile, Richard M. Pennington Jr., vice presi dent and marketing division manager, has been elected southern regional vice president of Sales and Marketing Exec utives International, an association con sidered the world voice of marketing. It provides information, education, communication and guidance to im prove the professional productivity of its members. Affiliate Banks First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama Bank of Montgomery, N. A. Bank of Birmingham Bank of Huntsville, N.A. Bank of Tuscaloosa, N.A. Bank of Dothan Bank of Selma, N.A. Bank of Gadsden, N.A. Bank of Athens, N.A. Bank of Baldwin County, N.A. Bank of Guntersville Bank of Hartselle Bank of Phenix City, N.A. Bank of Mobile County ma 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A rkansas AIB-Little Rock Installs Officers The Little Rock chapter of A IB has nam ed its officers for the com ing year (clockw ise, from I.): LaV erne Ku yken d all, W orthen B an k—treas.; D avid Burnett, Rose City bnkg. off., Twin City Bank, North Little Rock—2nd v.p .; Frances H eard, Union N a t'l—sec.; an d Jim D avis, a.v.p .. Union N a t'l—pres. MID-CONTINENT BANKER for July, 1976 ESOP Begun in Fort Smith F O R T S M I T H -T h e Em ployee Stock Ownership Plan (ESOP) has b ecom e a reality at City National. An ESOP is a form o f qualified deferred com pensation trust having features o f the stock bonus, profitsharing and stock purchase agree ment plans. W ith such a program, em ployees are given the extra in centive o f having a proprietary in terest in the corporation. And the plan can be carried out with tax deductible dollars, w ith no reduc tion in em ployees’ pay. City National reportedly is among the first national banks in the U. S. to adopt such a program. The bank’s ESOP was designed and im plem ent ed b y B ob L. Sellers & Associates, Memphis, representing Kelso-Bangert, San Francisco. Illinois STULTS C A R LSO N ■ A LLE N P. STULTS, chairman, American National, Chicago, has suc ceeded William G. Ericsson as presi dent of the bank, following Mr. Erics son’s appointment to the parent HC, Walter E. Heller International Corp., Chicago, as head of projects and plan ning. Mr. Stults, a past president of ABA and the Illinois Bankers Assn., re tains his posts of bank chairman and Heller International president. In other news at the bank, James A. Carlson, correspondent and institutional banking division head, and George K. Metzger, head of a commercial lending division, have been named senior vice presidents. ■ HARRIS TRUST, Chicago, has an nounced the following promotions: Ronald D. Sonneman, trust department, and James T. Overholt, investment de partment, to vice presidents; Steven J. Colbert and Ian T. Gilson, trust depart ment, Richard J. Moreland, banking de partment, London Branch, and Robert W . Goetter and Emil J. Schubert, bank ing department, to assistant vice presi dents. Martha T. Russell, formerly as sistant vice president, Valley National, Phoenix, has joined Harris Trust as as- sistant vice president. She will serve in its Scottsdale, Ariz., Representative O f fice, which is scheduled to open this fall. Mrs. Russell will have responsibil ity for new business development in several southwestern states. ■ D O N A LD C. M ILLER, executive vice president and treasurer, Continen tal Illinois Corp., Chicago, has joined the HC’s corporate office, joining Roger E. Anderson, chairman, and John H. Perkins, president, as a member of its senior management. Mr. Miller will oversee Continental’s worldwide per formance and activities, continuing as its chief financial officer. George R. Baker, executive vice president, will be responsible for commercial banking and international services, including the London-based merchant bank. At the H C ’s subsidiary, Continental Illinois National, Chicago, John B. Tingleff, vice president, commercial banking de partment, has been named correspon dent banking division head for Chicago and the midwest. He previously headed the Illinois division. ■ GEORGE L. BARR has been ap pointed president, Drovers National, Chicago, while Philip M. Lewin has been elected chairman and Robert Lough has been named honorary chair man. Mr. Barr was the bank’s executive vice president. ■ FIRST N ATION AL, Metamora, has opened its new quarters. O f a modern design, the building is of sand-colored HARROW SMITH COMPANY Union N atio nal B ank B ld g. TIN G LE FF BARR brick and bronze-finished fascia. Nat ural colors highlight its interior, with earth-colored quarry tile and coordinat ed browns in the wall covering and carpet. A mural behind the tellers area depicts a forest scene, while glass partitions between officers’ areas create an “ open” feeling. Design, construction management and interior furnishings were by Bunce Corp., St. Louis. ■ ANTHON Y DeM ARIA has been named president of Security Bank, W ood Dale, while Ron W . Teiwes has been elected vice president and Gary M. Newman, cashier. Mr. DeMaria, formerly executive vice president, joined the bank in 1972. Prior to that, he had been with Dempster Plaza State, Niles, and First Bank, Oak Park. Mr. Teiwes joined Security Bank in 1974 and formerly was with Bank of Bellwood, while Mr. Newman, formerly assistant cashier, joined Security Bank in 1973. In other news at the bank, G. Ward Stearns has been named chairman, suc ceeding Charles C. Looney, who has retired with the title of director emeri tus. James E. Burgess has been elected vice chairman. ■ JOSEPH R. FREY has been hon ored by a reception at the Drake Hotel in Chicago commemorating his contri bution to banking and the community. He retired as chairman of Lake Shore National, Chicago, but will remain ac tive in banking. Mr. Frey, a past presi dent of the Illinois Bankers Associa tion, joined his bank in 1929 and was named its president in 1933 at the age of 36. He had served as the institu tion’s chairman, president and CEO since 1952. 5 0 1 /3 7 4 -7 5 5 5 Little Rock, A rk a n sa s J. E. W O M ELDO RFF, Execu tive V ice President MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A KER M ILLER ■ BYRON P. BAKER has joined Millikin National, Decatur, as a farm man ager. 85 ■ ROBERT M. TYLUTKI. formerly vice president, La Grange State, has joined State Bank of Countryside as president. He joined his former bank in .1965 and prior to that had been with National Boulevard Bank, Chicago. ■ G LA D ST O N E -N O R W O O D TRUST, in less than five months of operation, has surpassed $5 million in total re sources. The present figure is $5,032,000, while total deposits are $3,070,000. Plans for the bank’s permanent building are nearly complete and ground-breaking ceremonies have been planned. ■ ROGER D. BOWERS has joined United Bank of Rockford as executive vice president, going there from United Bank of Illinois, Rockford, an affiliate. He joined his previous bank in 1969 and had served as assistant vice presi dent and manager of dealer relation ships and dealer paper, direct loan cus tomers and general departmental op erations in the retail services depart ment. ■ JAMES V. TOSTO, executive vice president, has been elevated to presi dent of Main Bank, Chicago, succeed ing Sidney J. Taylor, who remains chairman and CEO. Messrs. Tosto and Taylor joined the bank’s predecessor, Main State, in 1946. Mr. Tosto was named executive vice president in 1965, while Mr. Taylor advanced to president in 1960. He has held the title of chair man since purchasing the bank in 1969. Donald O'Toole Retires Safe Deposit Ruling Instated C H IC A G O —-Banks and other fi nancial institutions in Illinois m ay no longer open safe deposit boxes w ith out either written permission o f the director o f the Illinois Department o f Financial Institutions or personal supervision of the box opening by the director or his representative. That new ruling was announced b y Department Director A. T. Tsoumas. The ruling is intended to pro tect people w hose safe deposit boxes are opened for nonpaym ent o f box rental. T he rule also requires that D irec tor Tsoumas be notified 10 days prior to the opening, should his presence b e necessary. Previously, standard practice was for financial institutions to drill open a safe de posit box or safekeeping repository in the presence o f tw o employees without the consent or presence of any state agency or office. T h e con tents then w ould b e kept in the in stitution’s possession until claim ed b y the ow ner or until designated as abandoned property. The new rule has been added to the Uniform Disposition of U n claim ed Property Act, Chapter 141, Illinois Revised Statutes, and b e came effective M ay 3. Mr. Tsoumas estimated that the department will supervise the openings o f 15,000 de posit boxes during the rest o f the year. D onald O 'Toole (I.) is joined by W alter E. Ehrm ann, ch., H eritage /Pu llm a n Bank, C h i ca go , du ring the form er's retirement party. Mr. O 'Toole w as ch., H eritage Bancorp., Evergreen Park, and several H eritage banks. He entered b an kin g in 1946 as v.p., Pullm an Bank, C h ica g o , and later o rg a n ize d H e rita ge /Sta n d a rd Bank, Evergreen Park, an d H eritage /G len w o od Bank. He acquired interest in H eritage /C ou n ty Bank, Blue Isla n d ; H eritage First N ational of Lockport; and H eritage O lym p ia Bank, C h icago Heights. Mr. O 'Toole a lso o rgan ize d H eritage Bancorp. He w ill be active as a fin an cial con sultant to business. ■ ORRIN H. DU N CAN , formerly as sistant vice president, Bank of Naper ville, has joined First Security Bank, Addison, as vice president and cashier. He will supervise all areas of lending and operations. Indiana * HARRIS BANK, Chicago, has an nounced the following promotions: Rolland S. Carlson, group executive in charge of metropolitan banking, and F. Wendell Gooch, group executive in charge of corporate services, trust de partment— to senior vice presidents; William J. DeVerna, international bank ing division— to vice president; and John M. Chieppa and Ronald M. Bea con, banking and trust departments, respectively— to assistant vice presi dents. Edward J. Williams, assistant vice president, has been named division administrator, convenience banking. He will be responsible for the area that handles most of the bank’s consumer business. ■ VERN ON S. “ T E X ” HOESCH, founder, chairman and CEO, First O g den Corp., Naperville, has resigned. He has been succeeded by Joseph M. Quigley, financial vice president and secretary, Northern Illinois Gas, until First Ogden’s board appoints a perma nent successor. Mr. Quigley formerly was vice chairman. Mr. Hoesch, who serves as director of 16 First Ogden client banks, left to devote more time to his family. He entered banking at Harris Trust, Chicago, in 1948, going to Naperville National three years later. He served as administrative as sistant to the Illinois Bankers Associa tion, 1955-56, and organized Bank of Naperville in 1957. Mr. Hoesch ad vanced to president there prior to form ing First Ogden in 1970. * N O RTHERN TRUST, Chicago, has announced the following promotions: to second vice pi'esidents, Edgar G. Adam and Kenneth C. Quarfoot, fi nancial management department, and Thomas H. Lueck, administration de partment; Charles E. B. Jessopp, to ad vertising and sales promotion division manager; Sue A. Rageas, to public re lations division manager; and Betty S. Arlart, to assistant manager, financial management department. ■ JOSEPH D. BARNETTE JR. has been elected president and CEO, Lake View Bank, Chicago, succeeding R ob ert P. Kline, who resigned recently. Mr. Barnette formerly was president and CEO, First National, Evanston, which he joined in 1969. Prior to that, he was with American Fletcher Na tional, Indianapolis. He is treasurer, Region 1, Association for Modern Banking in Illinois. 86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ RAYM ON D E. SKELTON, assistant vice president, has been named to the newly created position of regional man ager, branch banks administration, at Indiana National, Indianapolis. He joined the bank in 1970. ■ IRW IN UNION BANK, Columbus, has announced the following promo tions: John H. Cragoe, to vice presi dent-finance; T ed J. Blank, to assistant vice president-farm loans; Karen S. Coldiron, to assistant vice president-op erations; James E. Meese, to assistant vice president-commercial loans; Cath erine W . Chinn, to assistant trust of ficer-tax supervisor, trust division; Hollie W . Greathouse, to loan officer-di versified financing; and William B. McNeely, to operations officer. ■ PATRICK E. McNARNY, formerly senior vice president, First National, Evanston, 111., has joined National Bank of I^ogansport as president and CEO. His appointment fills the vacan cy created by the death last Novem ber 15 of James P. Coplen. Prior to his service with the bank in Evanston, Mr. McNarny had been with banks in In dianapolis, Kankakee, 111., and Chica go. In addition, two new directors have been elected at National of Logansport: Edward J. Sydor, general man ager, National Friction, and James E. Kitchell of the Jim Kitchell Agency. MID-CONTINENT BANKER for July, 1976 Four Fact-Filled Manuals For the Bank Director (Every Director Should Have a Copy!) The Bank Director’s World. $6.25 T he Bank to rs Director! Worfa “ (Many) directors are unable to adopt (an) easy solution to the conflicts dilemma. T h ey must recognize that conflicts o f in terest always have and always will exist in bank boards . . . the board obviously can’t have each director resign w henever a conflict . . . presents itself. Rather, the WOMEN: the “Forgotten” Directors. WOMEN: The “ /(»-gotten” Directors ■ ^ r\ rii ZT.K $2.50 C ould be most helpful to banks contem plating the election of a w om an or w om en to the board. Survey results from w om en directors across the country show how they view their relationships to other di rectors o f their banks, what they feel are A Trust Guide for the Bank Director. $5.25 // / jl: V ' * TRUST GUIDE/ FORTHE / // / B AN K DIRECTOR / » / Since introduction o f the K eogh Act (H.R.10), many small firms and self-em ployed individuals have established pen sion trusts, so the num ber o f banks adding trust functions has increased substantially. Directors o f banks with new trust depart ments or new ly elected directors o f banks Behind Board Room Doors. Behind Boardroom Doors $6.00 Dr. Lew is E. Davids, Editor, The BANK B O A R D Letter, provides insights to fine points o f bank board membership. Sam ple chapter topics: C E O selection, reim bursement; management audits; finding customers; board minutes; director fees, retainers. T ypical paragraph: “ The chair man . . . receiving an examination report, Quantity Prices Listed Below B ank Director's W orld W O M EN: the "F o rgo tte n " Directors 2- 5 $6.00 eo. 11-25 $5.50 ea. 6-10 $5.75 ea. over 25 $5.25 ea 2- 5 $2.25 11-25 $1.85 6-10 $2.10 over 25 $1.75 Trust G uide For Bank Director Behind Board Room Doors 2- 5 $5.00 11-25 $4.65 6-10 $4.80 over 25 $4.75 2- 5 $5.25 ea. 11-25 $4.75 ea. 6-10 $5.00 ea. over 25 $4.50 ea MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis board should . . . police itself (and) openly discuss factors involving conflicts.” That quote illustrates one of many overlooked points o f bank board mem bership that are exam ined in this book b y Dr. Lewis E. Davids, Editor, The BANK B O ARD Let ter. Director relationships w ith the HC, CPAs, legal counsel, stockholders, corre spondents and advisory boards are co v ered. Includes models, exhibits. their relationships to m en and w om en staff members o f the institution, frustra tions and delights encountered in board service and what they see as today’s ma jor banking problem s. By A. Ruth Davids, Senior Research Associate, with Dr. Lewis E. Davids, Editor, The BANK B O A R D Letter. with established trust functions often aren’t fully conversant w ith direction of trust activities. They will find this book, b y Dr. Lewis E. Davids, Editor, T he BANK B O A R D Letter, to be a valuable aid. It delineates trust departm ent examinations, policies. Includes C om ptroller’s Regulation 9, covering fiduciary powers o f national banks, collective investment funds and dis closure o f trust department assets. verbally briefs the board on its contents, not permitting each to . . . review it in its entirety. A top bank supervisor told me o f an instance (where) a bank director dem anded to see the report. He saw it, but only after the C E O had rem oved pages containing the examiner’s com ments and conclusions and violations o f law and regulations. Fortunately, the director had the foresight to note the missing page numbers.” The BANK B O A R D Letter 408 O live St., St. Louis, MO 63102 P le a s e s e n d u s : ................ c o p ie s , B a n k D i r e c t o r ’ s W o r l d ................ c o p ie s , W o m e n : th e "F o r g o t t e n ” ................ c o p ie s , T r u s t G u i d e ................ c o p ie s , B e h in d D ir e c t o r s B oard R o o m D o o rs T o t a l E n c lo s e d $ $ $ $ $ .............. .............. .............. .............. .............. Name & T i t l e ...................................................... Bank ...................................................................... City, State, Zip ( P l e a s e s e n d c h e c k w i t h o r d e r . I n M i s s o u r i , a d d 4 lA % t a x .) 87 Merchants Plaza Is Topped Out Kentucky M erchants P la za , the new h ead q u arters fo r M erchants N atio nal, In d ia n a p o lis, has been topped out. Included in the project is a 20story H yatt Regency Hotel, tw in 15-story office b u ild in gs and un dergro un d p a rk in g . The bank w ill occupy more than 200,000 square feet of sp ace in the project w hen it is com pleted, p ro b ab ly in June, 1977. G ro u n d b re akin g cerem onies for the P la za w ere held in O ctober, 1974, and the project reportedly is the largest com m ercial un dertaking in the state. ■ M ALCOLM B. “ BURT” KING has been appointed marketing director of Old National, Evansville. Kansas ■ NORTH G ATE N ATION AL, Hutch inson, has broken ground for an addi tion to its facility at 601 East 30th which will increase its size by 3,000 square feet of space. The project will double the facility’s vault area; driveup services will be moved and pneu matic tubes eliminated. Completion is slated for early 1977. 1st NB, St. John, Opens New HQ Balloon Race Is No Bust ■ P O W E LL COUNTY BANK, Stanton, has opened its new building. The ribbon used in the opening ceremonies was made of 20 $10 bills and was pre sented to the Desi Scott Children’s Home. The building is of steel and pre stressed exposed aggregate concrete panels interspersed with smoked insu lating glass. It has 17,500 square feet of space and furnishings follow a red, white and blue theme. After the open ing ceremonies, the public was invited to tour the building and at day’s end, a drawing was held for two color TVs, washer, range, stereo, refrigerator, sev eral portable radios and stuffed toys. ■ N E W F A R M E R S N A T IO N A L , Glasgow, has named Jack London vice president and manager, Hiseville Bank ing Center, and Sandra Terry Ross, as sistant vice president and assistant man ager of the center. Both had been with Hiseville Deposit Bank, which was merged recently into New Farmers Na tional. Carolyn Strader, who was as sistant cashier at Hiseville, also was named assistant cashier at New Farm ers National. ■ JAMES E. HATH AW AY has ad vanced from assistant vice president and security officer to vice president and security officer of Citizens Fidelity, Louisville. John P. Kopple, assistant cashier, time credit, has been elected assistant vice president. Mr. Hathaway joined the bank in 1971 after 30 years with the FBI, while Mr. Kopple joined the bank in 1967. ■ KENTUCKY N ATION AL CORP., Louisville, has announced these promo tions in the branches: Paul E. Newton, Charles F. Mercer and H. David Simon, from assistant banking officers to bank ing officers, and Thomas R. Snyder, Larry T. Reardon and Thomas A. Ford, to assistant banking officers. i The new h ead q u arters b uilding of First N at'l, St. Jo h n , has opened. A s p art of the first-d ay cerem onies, an open house w as held with all are a residents invited. ■ STEVEN A. Mills has been pro moted from assistant trust officer to trust officer at Citizens Fidelity Bank, Louisville. Leonard A. Watkins, man ager, 23rd and Broadway Banking Cen ter, has been named assistant cashier and manager. A s part of the festivities during the w eek prior to the Kentucky Derby, Liberty N at'l, Louisville, sponsored an entry in the Fourth A n n u al Kentucky Derby Balloon Race. The race w as no bust; 25 balloons com peted and 20,000 people were on hand at the launch site. Several hundred thousand people w ere able to ob serve the race, w hich covered a course a p p ro xim ately 20 miles across Louisville. ■ J. C LIFTO N STILZ JR., formerly vice president and trust officer, W in chester Bank, has joined Montgomery National, Mt. Sterling, as executive vice president and CEO. Montgomery National also has announced the pro motions of Edward O. Crooks and Joe A. Evans Jr. to senior vice presidents. Mr. Crooks formerly was executive vice president and Mr. Evans, vice presi dent and cashier. Louisiana ■ GUARANTY BANK, Alexandria, has named K. Kirk Domingos III and Carl Hartzog senior vice presidents. Mr. Domingos joined the bank in 1975, while Mr. Hartzog formerly was vice president and senior lending officer, Charter Bankshares Corp., Jacksonville, Fla. Guaranty Bank’s interna] organiza tion has been restructured, with the majority of all banking functions co ordinated through the newly formed general banking group and the lending group. Mr. Domingos will head the former, while Mr. Hartzog will oversee the latter. ■ JOSEPH N. TRAIGLE, formerly Louisiana commissioner of revenue, has been elected senior executive vice pres ident, American Bank, Baton Rouge. C O M M E R C I A L N A T I O N A L B A N K 6 th & M in n eso ta A ve. 913 3 7 1 -0 0 3 5 Kansas C ity, Kansas 66101 P R O F E S S IO IV IA L C O R R E S P O N D E N T B A N K I N G S E R V I C E 88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 We made our mark in service Last year alone, the correspondent profes sionals of Citizens Fidelity Bank logged nearly 200,000 miles while making over 1,700 calls to bankers throughout the Southeast and Midwest. This commitment to personal serv ice is one reason Citizens Fidelity ranks in the top 25 of all correspondent banks in the na tion. Another reason is the development of an interdepartmental structure that extended to banks.over $80 million in credit and leases, Digitized 0 * for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis held over $1 billion worth of securities in safekeeping, and handled over $500 billion worth of federal funds for our correspon dents. For information on Citizens Fidelity's experience in these and other correspondent areas including cash management, EDP, and credit card operations, call Bob Aldridge or any member of his staff. They'll help you make your mark, too. Come grow with us® . . . under the Sign of the Service Tree. afeensTfidelity Bank ©Trust Company Citizens Plaza— Louisville. Kentucky 40202 (502) 581-3280 Kentucky WATS: 800-292-4593 Indiana, Tennessee WATS: 800-626-6505 ke f rviti-yone Ci/Saiitx/ R a n k A T ru s t n n m n a n v M em b er F D Missouri n a lty g ib b o n s ■ DO N A LD J. NALTY has been named vice chairman of Hibernia Na tional, New Orleans, while Richard A. M cNeece has been promoted to execu tive vice president. E. J. Kafoed, execu tive vice president and secretary of the bank and secretary of the HC, Hibernia Corp., New Orleans, has been elected an HC and bank director. ■ RUSSELL F. HAAS has been elect ed president, Guaranty Bank, Gretna, advancing from executive vice presi dent. He succeeds the late Charles A. Hendricks Jr. Mr. Haas joined the bank in 1955 as a bookkeeping department clerk, advancing to executive vice pres ident and director in 1971. ■ BOSSIER BANK, Bossier City, has elected the following as directors: Gladys Hendrick, Shreveport, reported ly the area’s first woman director; Ben F. Barnes of Brownwood, Tex., a for mer Texas lieutenant governor; and James M. George of Poplarville, Miss., owner of several oil-industry-related companies. M ississippi ■ JOHN D. GIBBONS has rejoined Deposit Guaranty National, Jackson, as vice president, investment division. He will have responsibility in the U. S. government and agency bonds depart ment. Ed M. Keeton has been elected assistant vice president, regional depart ment, corporate banking division. ■ STEW ART M. BRU M FIELD has been promoted to executive vice presi dent at Bank of Greenwood, branch of First National, Jackson. He has been there six years. ■ M A TT H E W L. H O LLE M AN III has been promoted to assistant vice president, First National, Jackson, while John W . Head, executive vice presi dent, Southern Farm Bureau Casualty Insurance Co., has been named a di rector of the bank and its parent HC, First Capitol Corp., Jackson. 90 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ground Broken in St. Peters ■ PATRICIA BARTSOKAS, assistant vice president-marketing, First National, Belleville, 111., has been elected chair man, Metropolitan St. Louis Group, National Association of Bank-Women Inc. Other officers are: vice chairman, Emma Scholl, vice president, Florissant (M o.) Bank; secretary, Barbara Shaffer, trust operations officer, First National, Alton; and treasurer, Elaine Colter, as sistant cashier, Lewis & Clark Mercan tile Bank, St. Louis County. ■ DELBERT L. JAMES has been elected senior vice president and cash ier of First National, Kansas City. He formerly was vice president and cashier and serves as board secretary. ■ CLARENCE A. SEHRT has been promoted to vice president, Mercantile Trust, St. Louis. He has administrative responsibility for the proof, transit, bookkeeping and analysis divisions. Named assistant vice presidents were Robert W. Bloemker, Gerald E. Croddy and William J. Lawton. ■ DON H. ALEXAN D ER has been appointed vice president, loan adminis tration, Commerce Bancshares, Inc., Kansas City. He formerly was vice president in charge of the international division, Commerce Bank of Kansas City, the HC’s lead bank, and con tinues to manage international activities at the HC. With the bank since 1966, Mr. Alexander was born in Amsterdam, the Netherlands. At the bank, Robert W . Wagstaff, president and chairman, Coca-Cola Bottling Co. of Mid-America, Inc., has been elected a director. ■ PAUL N. SHY, formerly vice presi dent and national division manager, Commerce Bank of Kansas City, has joined Citizens Bank, Smithville, as president. He succeeds Dean Henricksen, who has been elected president, Laurel Bank of Platte County, Kansas City. Mr. Shy entered banking in 1970 at Commerce Bancshares, Inc., Kansas City. JA M ES SEHRT State Treas. Jam es I. Sp ainhow er (2nd from r.), m ans shovel d u rin g ground b rea kin g cer em onies for new h ead q u arte rs of First N at'l, St. Peters. A lso p a rticip atin g are (from I.) Paul M. Ross, s.v.p., First Union Bancorp, St. Louis, H C for the b an k; Paul Richter Jr., b ank eh.; and R. Lester W hited, pres. Com pletion date for the $ l-m illio n b u ild in g, w hich w ill be in Clov erle af P la za Sh op p ing Center, is late fall. At that time, the b an k's present b u ild in g w ill be come a d riv e -u p / w a lk -u p facility. ■ ALBERT A. M ILLER, vice presi dent and cashier, Big Bend Bank, Webster Groves, has been elected pres ident, St. Louis Chapter, AIB. Also named to officer positions were Michael P. Dolan, executive vice president, Plaza First National of West Port, St. Louis County— first vice president; Rosemarie Stallings, assistant vice pres ident and trust operations officer, Edgemont Bank, East St. Louis, 111.— second vice president; Jean Oebermann, assistant cashier, Gravois Bank, St. Louis— associate vice president; Thomas M. Noonan, vice president, St. Louis County National, Clayton— treasurer; and Joseph G. Steel, St. Louis— executive director and secre tary. ■ JEROME M. GREEN BLATT has been named vice president, Plaza First National of West Port, St. Louis Coun ty. He formerly was assistant vice president and heads the marketing, ad vertising and business development de partments. A LE X A N D E R SH Y MID-CONTINENT BANKER for July, 1976 Merc Constructs Banking Center ■ RUDY J. STRETESKY, formerly executive vice president, Washington County Mercantile Bank, Potosi, has been elected president, following the death of Sam Richeson, who was presi dent and chairman. ■ SHAREHOLDERS of First Union, Inc., St. Louis, have approved a name change to First Union Bancorp. The change was proposed to provide greater identification of the PIC as a banking organization. C h eckin g the blueprints for the South Side B an kin g Center of M ercantile B ank, St. Louis, are (from I.) Russell Shilt, v.p., H. B. D eal Co, b u ild in g contractor; Jo h n H. Schw eitzer, bank a.v.p . w ho w ill be in ch arge of the center; W illiam H. D eal, pres., H. B. Deal Co.; Lynn H. Miller, b ank e.v.p.; and Ja m e s A. H ertzler, v.p. & treas., Interstate Supply Co., a bank custom er. The center w ill be in the G rav o is P la za Sh o p p ing Center and w ill have drive -up w in d o w s an d Fingertip B an kin g, M ercantile's EFT system . fi DAVID J. W EST has been named vice president and data processing manager at United Missouri Bank of Kansas City. He formerly was with Northern Trust, Chicago. ■ G. LYNN M ITCH ELSON , execu tive vice president, United Missouri Bancshares, Inc., and United Missouri Bank, both of Kansas City, has been elected a director of United Missouri Bank of Warrensburg and United Mis souri Bank of Boonville. The three banks are affiliates of the HC. At United Missouri of Warrensburg, Thomas A. Hill has been named vice president. He formerly was with an other affiliate, United Missouri of Hick man Mills, Kansas City. Robidoux Center Is Bank HQ R obidoux Center is the nam e chosen fo r the new h ead q u arters b u ild in g of A m erican N at'l, St. Josep h . The structure w ill house the bank an d outside tenants and w ill be located on the site of the form er Ro b id ou x Hotel. The b u ild in g w ill be eigh t to 10 stories tall and A m erican N at'l w ill occupy fo u r or five of its floors plus a m ain b a n kin g lobby w hich w ill be connected to the m ain office tow er by an atrium . The b ank w ill take up ab o u t 55,000 sq uare feet of sp ace in the structure. Com pletion date has been set fo r Ja n u a ry 1, 1978. W H EA T ■ LEM AY BANK at Oakville has opened in temporary quarters at Tele graph Road and Baumgartner in south St. Louis County. Construction of a permanent building at the same site is expected to begin soon. as vice president in charge of dues and membership for the Association of Com merce & Industry. Mr. Badai will travel throughout the country assuming re sponsibility for national accounts of the bank. ■ FIRST N ATION AL, St. Louis, has named David A. Dierks, regional bank ing division, and Keith R. Krieg, com mercial banking division, as vice presi dents. O klahom a New M exico ■ C O N TR O LLIN G INTEREST in Bank of Santa Fe has been purchased by a group of 17 Santa Fe and Albu querque businessmen headed by Ralph Petty Jr., bank president. Seventy per cent of the bank’s stock was obtained for an undisclosed price. The purchase was made from a group of 10 persons associated with Bank Securities Inc. HC. Included in the group of purchas ers are Jerry Henson, executive vice president and trust officer, Abe Silver Jr., chairman, and Phillip G. Levitt, an attorney who will serve as the bank’s senior vice president. It was announced that a new board and chairman would be elected. ■ RONN HAGAR, assistant vice pres ident in charge o f the loan and dis count department of the Main Branch of First National of Lea County, Hobbs, has advanced to vice president and loan review officer. ■ RIO GRANDE VALLEY BANK, Albuquerque, has opened its new Main Office at 501 Tijeras Avenue N. W . Said to be the only all-glass building in the city, the bank features a con temporary interior of woods-and-earth colors. The structure has 28,000 square feet of space, of which the bank will occupy 10,000 square feet. Drive-up banking facilities are located on its north side. ■ JOSEPH H. BADAL has rejoined First National, Albuquerque, as vice president, banking relations depart ment. He originally joined the bank in 1973. For the past year, he had served MID-CONTINENT BANKER for July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D IERKS ■ W ILLIS J. W H E AT, senior vice president-marketing, Liberty National, Oklahoma City, has been named Ex ecutive of the Year by the Oklahoma City chapter of the Society for Ad vancement of Management. The award is based on an individual’s leadership within his or her organization and con tribution to management excellence within the community. Mr. Wheat has been with Liberty National since 1964 and is responsible for the creation and implementation of its local, national and international marketing programs. ■ DAN L IT TL E has been elected a director o f Madill Bank. He is a local attorney. ■ LEE W A L L has advanced from as sistant vice president to vice president at City National, Lawton, while Glvdell “ Bud” Pawless has joined the bank as assistant vice president, installment loan department. Henry Sabine has been named collection officer. Mr. Paw less is president, Southwest Oklahoma Chapter, American Institute of Bank ing. ■ W AYNE D. GEIST, formerly vice president and agri-services officer, Home National, Eureka, Kan., has joined First National, Tulsa, as assistant vice president, agribusiness section. He will work as an account representative in agribusiness and will assist the re gional banking section in agricultural matters. ■ W IL L IA M T. SPERRY has ad vanced to vice president and trust of ficer at Fourth National, Tulsa. He specializes in pension and profit sharing and employee benefit programs. ■ JAMES W . BRUCE JR., senior vice president. Liberty National, Oklahoma 91 TILLEY B R A D SH A W City, has been named senior vice presi dent and secretary for the bank and its parent HC, Liberty National Corp., Oklahoma City. At the bank, Walter E. Sloan Jr. has been elected vice presi dent, while H. Eddie Beuchaw has been promoted to assistant vice presi dent. ■ JAMES E. TILLEY has joined Fi delity Bank, Oklahoma City, as vice president, to serve as a loan review o f ficer in the commercial credit and col lateral department. He formerly was with the FDIC, in Oklahoma City un der the Dallas Regional Office. ■ FIRST N ATION AL, Oklahoma City, has promoted Ronald E. Bradshaw, real estate division head, James L. Bush, energy division head, and David E. Gallman, national accounts department head, from vice presidents to senior vice presidents. ■ BRUCE E. CAM PBELL JR. has been named chairman, president and CEO, National Bank o f Commerce, Memphis, following the resignation of Wayne W. Pyeatt, the former chairman and CEO. He also has been elected a director of United Tennessee Bancshares Corp., HC that owns the bank. Mr. Campbell joined the bank in 1967 and advanced to president and chief ad ministrative officer in 1974. Prior to 1967, he was with Trust Co. of Georgia, Atlanta. BUSH G A LLM A N C LA R K E ■ W IL L IA M H. L O V E L L III has ad vanced to senior vice president and in stallment lending division manager at C & I Bank, Memphis. He joined the bank in 1967 and is president o f the Memphis Consumer Finance Exchange. ■ RICH ARD A. CLARKE, senior vice president, First Tennessee National, Chattanooga, has been named corre spondent department manager. He for merly was installment loan department manager. Mr. Clarke joined the bank in 1950 as a teller, advancing to senior vice president 10 years later. ■ BANK OF THE SOUTHW EST, Houston, has announced that James A. Flynn and Paul D. Lester have joined the bank as vice presidents. Mr. Flynn, who has commercial loan responsibil ities, formerly was assistant vice presi dent and commercial loan officer with Manufacturers Hanover Trust, New York City, while Mr. Lester, who is M A SO N Bank of the Southwest’s Latin American area representative with the interna tional banking division’s credit and in ternational relations department, pre viously was international division man ager, Citibank, New York City. At Bank of the Southwest, James W . Foster has been promoted to accounting officer and William Griffin III has been named international officer. ■ PAUL MASON, chairman and CEO, First National, Fort Worth, has been elected to the additional post of presi dent, following the resignation of Karl T. Butz Jr. Mr. Butz has joined Mer cantile National of Dallas as president. ■ FIRST CITY N ATION AL, El Paso, has promoted Stephen H. McDuffee and William B. Ramage to assistant cashiers in the credit department. ■ JACK L. W H IT T has joined First City Bancorp, of Texas, Inc., Houston, as vice president. He will have respon sibility for liaison with Houston-area member banks. He formerly was presi dent of one of those institutions, City Bank-Inwood Forest. ■ TONY F. PEREZ has been elected president and CEO, Pan American Na tional, Dallas. He formerly was vice president, Gulf Freeway National, Houston. Ei Paso Nat'l Honored LESTER FLYN N TEMPORARY . . BANKING FACILITIES MPA SYSTEMS 4120 RIO BRAVO EL PASO, TEXAS 79002 (915) 542-1345 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sam D. Y ou n g Sr. (c.), ch., El Paso N at'l, re ceives a p laq ue from John J. Thiebouth (I.), v.p., M ercantile Bank, St. Louis, com m em orating the 50th a n n ive rsa ry of the op en in g of the El Paso b an k's correspondent account w ith Mer cantile (the actual date w as Decem ber, 1975). Looking on is A than Mertis, also v.p.. M ercan tile. The presentation w as m ade d u ring the 1976 convention of the Te xas Bankers A sso cia tion in El Paso. Mr. Y ou n g told M essrs. Thiebauth and Mertis that he p erso n ally opened the account w ith M ercantile h a lf a century ago. MID-CONTINENT BANKER for July, 1976 Her friends know Helen M iller as a polished perform er in the kitchen. But it's as a Correspondent Banker that she really shines. As our Operations O fficer, Helen Miller coordinates the activities o f Third National’s far-ranging corres pondent bankers as they service m ore than 360 customers in five states. It’s no easy jo b , but Helen brings to it her ow n special mix o f ingredients: a world o f experience, an abundance o f energy, and a generous helping o f Southern charm. Whatever your correspondent bank ing need, call Helen Miller and ask her to put y ou in touch with the Third National professional who serves your area. Our Tennessee WATS line is 1-800-342-8360. In neighboring states, dial 1-800-251-8516. We’re here to help you. THIRD NATIONAL BANK IN NASHVILLE Member F.D.I.C M aking things happen fo r you. MID-CONTINENT BANKER fo r July, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 Index to Advertisers Advertising Concepts, Inc................................. 57 American Bank Directory ............................... 64 Amercian Express Co. (Travelers Cheques) 18-19 American Nat’l Bank, Chattanooga 45 Associates Commercial Corp............................ 11 Bank Board Letter ............................................ Bank of Oklahoma ............................................ Barclay, The ........................................................ Brandt, Inc............................................................ 87 31 67 77 Central National Bank, Chicago ................... Christmas Club— A Corporation ..................... Citizens Fidelity Bank, Louisville ............... Commerce Bank, Kansas City, Mo. ............. Commercial Nat’l Bank, Kansas City, Kan. Continental Bank, Chicago ............................. 29 50 89 25 88 79 De Luxe Check Printers, Inc............................ 13 Douglas Guardian Warehouse Corp............... 73 A w a rd in g tra v e lin g cop to R. i. A n derso n, v.p., Planters State, Sa lin a, Kan ., a t recent g o lf p arty at A m erican N at'l, St. Jo e, is Larry M orrow (r.), a.v.p . A t I. is host Don Folks, s.v.p., A m erican N at'l. Weather Holds Good for 25th Year For American Nat'l, St. Joe, Golf Party HE PEOPLE at American Nation al, St. Joseph, Mo., always luck out when it comes to fine weather for the bank’s annual golf party for correspon dent customers from Missouri, Kansas, Nebraska and Iowa. The 25th annual event was held at the St. Joseph Country Club in May this year, instead of June, and the weather was better than ever. (Last year’s event in June was almost washed out due to early morning showers.) Taking honors for the day were Thomas G. Ruth, assistant vice presi dent Cameron (M o .) State, whose 300-vard drive was judged best of the day; Dane! D. Franklin, president, Citizens State, Seneca, Kan., whose ball came closest to the pin on the 13th hole; Litton E. Tye, assistant secretary, Trenton (M o.) Trust, who had the fewest putts for the day (at 2 8 ); and R. C. King, executive vice president, Planters State, Salina, Kan., whose three birdies were judged best in that category. Best all-around players were Ted G. Robinson, vice president, Nodaway Valley Bank, Maryville, Mo., whose 79 was third low gross; Bob J. Anderson, vice president, Planters State, Salina, Kan. (a bank full of good golfers!), who took the traveling cup with the second low gross of 78 because the low gross of 77 was recorded by a non banker, Henry Williams, director, Unit ed Missouri Bank, Brookfield. # # Stan d in g , (from I.) W. F. Enright Jr., e.v.p., host b an k; Robert W. Horner, e.v.p., and E. B. W right, ch., both of Drovers & M erchants, St. Joseph. Seated: W ilson E. Ta lm ad g e (I.), v.p., Farm ers State, Stanb erry, Mo., and Robert V. A ll d red ge, a.c., Ex ch an ge Bank, Fair fa x , Mo. Fabcraft, Inc.......................................................... 53 Farmers Grain & Livestock Hedging Corp. . 20 Financial Insurance Service, Inc..................... 27 Financial Placements ...................................... 76 First Alabama Bancshares ............................. 84 First American Nat’l Bank, Nashville ......... 63 First City National Bank, Houston ............. 75 First National Bank, Jackson, Miss.............. 17 First National Bank, Kansas City, Mo............ 21 First National Bank, Minneapolis ............... 23 First National Bank, St. Louis ....................... 96 First Nat’l Bank of Commerce, New Orleans 3 Fourth National Bank, Tulsa ......................... 41 Fourth N at’l Bank & Tr. Co., Wichita .......... 43 Harland Co., John H.......................................... Harris Tr. & Savings Bank, Chicago ........... Harrow Smith Co.................................................. Hibbard, O’Connor & Weeks ........................... 83 61 85 65 Kansas Bank Note ............................................ 71 Liberty Nat’l Bank & Tr. Co., Louisville . . . 81 Liberty Nat’l Bank & Tr. Co., Oklahoma City 2 MGIC— Indemnity Corp..................................... 8-9 MPA Systems ...................................................... 92 Madison Avenue Associates, Inc............... 48-49 MARKETERS plus, Inc....................................... 59 Mercantile Bank, St. Louis ............................. 5 Missouri Envelope Co........................................ 94 National Bank of Detroit ................................. 26 National Blvd. Bank, Chicago ....................... 15 National Stock Yards Nat’l Bank ................. 95 Payment Plans, Inc............................................. 24 Premiums For Financial Institutions, Inc. . 55 Rand McNally & Co............................................ 69 Risk Insurance Management Guide ........... 72 Scarborough and Co............................................ 47 Third National Bank, Nashville ..................... 93 United Missouri Bank, Kansas City ............. 32 Whitney National Bank, New Orleans ........ 7 TRY US FOR YOUR NEXT ENVELOPE REQUIREMENT MISSOURI ENVELOPE CO. 10655 GATEWAY BLVD. ST. LOUIS, MO. 63132 Phone 314/994-1300 *Ask for our new Plastic Sizer® Tem plateFree with your first inquiry. 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for July, 1976 VIRGIL B. SORRELLS Wee President and Director WILLIAM J. THOMAS President and Director 100 years of service from just two men of Stock Yards Bank As each man rounds out his 50th year of banking with Stock Yards Bank, Bill Thomas and VirgSorrells can look back with nostalgia at their rise to leadership and their dedicated efforts to make and maintain their bank’s position as the nation’s No. 1 Correspondent Bank. They look forward, too, with complete confidence that S.Y.B. will continue in that leadership position. They insist that their officers know every phase of banking business, that they travel their territories religiously, that they keep abreast of varying local conditions and that they use their authority to make decisions judiciously. Their 100 combined years of service means better service for you now, and in the future, as they continue to spearhead the bank’s operations. And if you want to talk to either Virg or Bill, they’re available at 618-271-6633. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J u s t a c ro s s the r iv e r fro m S t Lo THE NATIONAL STOCK YARDS NATIONAL BANK OF N A TIO N A L C IT Y W ork w ith a banker who knows what his bank can do for you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At First National Bank in St. Louis, our corre spondent bankers are trained in what our bank can do for you. Across the board. Department by department. The result is men with solid experience and individual authority. So they can make fast decisions for you on their own. They’re backed by a bank with strong, steady growth. And total banking capabilities including overline loans, bond department services, computer ized check collection, cash management systems. Plus our annual correspondent seminars where you can exchange ideas and learn about new profit opportunities. Get to know your First National correspondent banker. He knows his bank. He’d like to put us to work for you. First National Bank in St.Louis Member FDIC I H Ifll
@FedFRASER