The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INCORPORATING MID-WESTERN BANKER MARCH, 1983 NORTHERN EDITION How to Evaluate It NO RTH CENTRAL HELPS YOU SQUEEZE MORE PROFIT O U T OF YO UR-tO feN'fO RTFO LIO ! Times are tough. C om petition is fierce. Profits are shrinking. The chairman of the board doesn’t smile much. You have to fight fo r every dollar. And every dollar has to w o rk hard fo r you. That's w here w e com e in. W hen the squeeze is on, N orth Central can help you make lemonade out o f a lemon. How? W e w o rk exclusively with financial institu tions like yours. W e provide and help you market a wide array o f loan-related insur ance products. Products that earn im por ta n t fee incom e fo r you and provide valuable protection fo r your customers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis And we make it easy fo r you. W ell train your loan officers to be more productive. W ell track your insurance penetration and profit ability and give you a profile o f the business you write. W e ll install a proven system that will help you extract virtually every last profit dollar out o f your loan portfolio. The bottom line? Your bank makes more money And the Board Chairman thinks you're a hero. Ask your N orth Central Life representa tive to show you how you can squeeze more profit out o f your loan portfolio. North Central Life Insurance Company NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 43139, ST, PAUL, MN 55164, Protection all ways In Minnesota call 800-792-1030. In Iowa, Wise., North and South Dakota 800-328-1612. All other states 800-328-9117. you W A N T TO W H EN GETIT DONE, CALL A CORRESPONDENT W HO HAS BEEN THERE . And his knowledge is now channeled into providing services like fast, efficient transit operations, bond and investment services and bank stock loans. The same responsiveness he provided to his bank cus tomers is now offered to you. There are only a handful of correspondents who can say they’ve learned the needs of community banks firsthand. Ernie Yake is one of them. He successfully man aged Commerce Bank of Moberly. And before that, he headed a subur ban Kansas City bank on the Kansas side. So give Ernie a call at 234-2483. He knows how to get it done for you, because he’s already done it himself. Today, Ernie runs the Correspondent Depart ment at Commerce Bank of Kansas City. Ernie knows what bankers need. Commerce Bank £% w •T ' NA of Kansas City MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER FDIC GETTIN G IT D ON E 3 MID-CONTINENT BANKER (Incorporating MID-WESTERN BANKER) Volume 79, No. 3 March, J983 IN THIS ISSUE 8 THE BAN KIN G SCENE W hat do your em ployees think of your bank? 10 CORPORATE NEWS Item s about firms that service banks 13 ATM NETWORKING: H O W TO EVALUATE IT And gain a persp ectiv e on the topic 16 JO IN IN G A SHARED-ATM NETWORK C hoose your p artn er carefully 18 BANK'S ATM OPERATION RESCUED By alliance with new netw ork 25 NEWS ABOUT BANKS A N D BANKERS A ppointm ents, prom otions, m ergers 42 MICRO-COMPUTERS SHARE SPOTLIGHT At bank m anagem ent con feren ce 44 HOW BANKS SHOULD PLAN FOR MICROS To make the m ost of productivity gains 48 MICROS CAN BOOST PROFIT, PRODUCTIVITY Interview with a specialist 55 COAAMUNITY BANK OFFERS MONEY-CENTER SERVICE W ith the assistance of an outside firm EDITORS Ralph B. Cox ........ Publisher Lawrence W. Colbert Assistant to the Publisher Rosemary McKelvey .. Editor Jim Fabian ___ Senior Editor Eleanor Wainwright .. Editorial Assistant MID-CONTINENT BANKER Editorial/Advertising Offices St. Louis, Mo., 408 Olive, 63102. Tel. 314/4215445; Ralph B. Cox, Publisher; Marge Bottiaux, Advertising Production Mgr. MID-CONTINENT BANKER is published monthly by Commerce Publishing Co., 408 Olive St., St. Louis, Mo. 63102. Printed by The Ovid Bell Press, Inc., Fulton, Mo. Controlled circulation postage paid at St. Louis, Mo., and at additional mailing offices. Subscription rates: Three years $27; two years $20; one year $12. Single copies, $2.50 each. Foreign subscriptions, 50% additional. 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Commerce Publications; American Agent & Bro ker, Club Management, Decor, Life Insurance Selling, Mid-Continent Banker, Mid-Western Banker and The Bank Board Letter. Officers: Donald H. Clark, chairman emeritus; Wesley H. Clark, president and chief executive officer; James T. Poor, executive vice president and secretary; Ralph B. Cox, first vice president and treasurer; Bernard A. Beggan, David A. Baetz, Lawrence W. Colbert and William M. Humberg, vice presidents. ConventionCalendar March 13-15: ABA National Credit/Correspondent Banking Conference, New Orleans, Fairmont Hotel. M arch 13-16: ABA Trust Operations/Automation Workshop, New York City, New York Hilton. March 13-16: Bank Marketing Association Consumer Business-Development Training Workshop, Nash ville, Badisson Hotel. March 14-16: Bobert Morris Associates Asset-Based Lending Workshop, Atlanta, Atlanta Hilton/Tower. March 17-20: AIB Leaders Workshop, Little Rock, Excelsior. March 20-23: ABA Western Regional Bank Card Con ference, Dallas, Fairmont Hotel. March 23-25: Dealer Bank Association Annual Meet ing, San Francisco, Fairmont Hotel. March 23-27: Independent Bankers Association of America Annual Convention, San Diego, Town & Country Hotel. March 27-30: Bank Marketing Association Advertising Conference, Chicago, Hyatt Regency Chicago. April 5-7: ABA International Banking Symposium, Chi cago, Hyatt Regency Chicago. April 5-8: Bank Administration Institute CheckProcessing Conference, Chicago, Marriott Hotel. April 7-10: AIB Leaders Workshop, Nashville, Hyatt Regency Nashville. April 10-13: ABA National Installment Credit Confer ence, Atlanta, Hyatt Regency Atlanta. April 14-17: Louisiana Bankers Association Annual Convention, New Orleans, New Orleans Hilton. April 17-20: Robert Morris Associates Credit Depart ment Management Workshop, Kansas City, Hyatt Regency Hotel. April 17-22: Bank Marketing Association Management School of Bank Marketing, Athens, Ga., University of Georgia. April 17-22: Robert Morris Associates Loan Manage ment Seminar, Columbus, O., Ohio State Universi tyApril 17-27: ABA National Commercial Lending School, Norman Okla., University of Oklahoma. April 24-27: Bank Marketing Association Research/ Planning Conference, Arlington, Va., Hyatt Regen cy Crystal City. April 24-27: Independent Bankers Association of Amer ica Seminar/Workshop on One-Bank Holding Com pany, Phoenix, Camelback Inn. April 24-30: ABA National School of Bank Card Man agement, Pomona, Calif., Kellogg West California State Poly University. April 27-29: Dealer Bank Association Compliance Seminar, St. Louis, Marriott’s Pavilion Hotel. May 1-4: ABA National Conference on Real Estate Finance, San Francisco, Hyatt Regency. May 1-4: Bank Marketing Association Public Relations Conference, Boston, Copley Plaza. May 2-3: Consumer Bankers Association Annual Leas ing Conference, Dallas, Lincoln Hotel. May 2-5: Premium Incentive Show, New York City, Coliseum. May 3-6: Bank Administration Institute Accounting/ Finance Conference, Dallas, Amfac Hotel. May 4-7: Alabama Bankers Association Annual Con vention, Huntsville. May 8-10: Oklahoma Bankers Association Annual Con vention, Tulsa, Tulsa Excelsior. May 8-10: Conference of State Bank Supervisors Annual Convention, Colorado Springs, Colo., the Broadmoor. May 8-11: ABA Eastern Regional Bank Card Confer ence, Lexington, Ky., Hyatt Regency Lexington. May 8-11: Association of Reserve City Bankers Annual Meeting, Boca Raton, Fla., Boca Raton Hotel. May 8-13: ABA National Commercial Lending Gradu ate School, Norman, Okla., University of Oklahoma. May 10-12: Ohio Bankers Association Annual Conven tion, Cleveland, Bond Court Hotel. May 12-14: Texas Bankers Association Annual Conven tion, San Antonio, Convention Center. May 12-15: Mississippi Bankers Association Annual Convention, Biloxi, Broadwater Beach/Biloxi Hilton Hotels. May 13-19: Bankers Association for Foreign Trade Annual Meeting, Dorado, P. R., Cerromar Beach Hotel. May 14-18: Arkansas Bankers Association Annual Con vention, Little Rock, Excelsior Hotel. May 15-18: ABA National Conference on Marketing Compliance/Planning, Dallas, Hyatt Regency Hotel. MID-CONTINENT BANKER for March, 1 9 8 3 CHICAGOm CE! AUTOMATION PAPERS COMPANY AMERICAS 0 SUPPLIER OF SPECIALTY PAPERS OPENS ITS CHICAGO OFFICE! For almost 20 years businesses coast to coast have counted on Automation Papers for a full line of small roll, fan folded and specialty paper supplies. Now we’re in Chicago, with a new office to provide you with even better service. Remember, Automation Papers has more rolls and folded paper supplies in stock than anyone. Our product inventory includes everything from telex rolls, ribbons and tapes, to special papers for banking machines, to personalized ATM receipts, to full lines of thermal and fac simile papers . .. and more! So for the highest quality spe cialty paper products, excellent prices and unsurpassed service in the Chicago area, call the number one source, Automation Papers. In the Chicago metro area, call us at (312) 266-8284, outside the metro area call toll-free, (800) 428-3690. automation papers atîonçompany« PaPers.inC. 7326 Niles Center R<±, Skokie, Illinois 60077 (312) 266-8284, outside the metro area, (800) 428-3690. \ MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 Computerized Bank Planning? It's crucial that the program be user friendly. - / 7 ? !^ You don’t have to be a computer expert to work with our computerized bank model. BancPlan is menu driven. You look at the screen and merely select what you want the pro gram to do. Along the way it will prompt you with questions, tell you when you've erred and suggest corrections. Your managers quickly gain the confidence they need to use / / the model frequently. This ^ assures the success of the model in your bank: pretesting your current profit plans, play ing the what if game on all the variables and trying alternative profit strategies. You can plan and monitor on a departmental, branch and bank-wide basis. forecasts with mid-term revi sions carried forward into succeeding quarters. BancPlan will even give you the ability to produce roll-out Call now and ask for John Monroe at 312-692-5787. Finally, you can have BancPlan entirely in-house or by time sharing. You benefit either way. Find out about all the ways BancPlan can help you. ADVANCED PLANNING SYSTEM S, INC. Subsidiary of Capsco Banking Systems, Inc. 6 3 0 0 North River Road Rosemont, III. 60018 -He^pùncj (jôyiO M ûU rf hU bnacfm o n a fyye , tAe p a s t, a o n b io i tk t p /im n t a *d p d a to , tA& ¡¡u tu M ,. 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for March, 1 9 8 3 NEEDN’T JOLT YOUR AUTO LOAN PORTFOLIO Our policy covers your risks With the av erag e new c a r note running more than $10,000, your bank should have blanket single interest insurance from Financial Insurance Service, Inc. Our policy covers all your physical d a m a g e an d theft risks. • Com pare oiir blanket single interest insurance with specific (force-placed) auto insurance an d see the ad van tages for yourself: Blanket single interest Force-placed Simple administration. One form per month. We furnish the forms. Complex administration. You have to process individual letters, certificates, premiums an d cancellations. No angry customers. Customers resent an d blam e you for high premiums an d limited coverage. Swift, easy claim s handling by FIS. Your interest is covered. Claims handling m ay be slow; also com p lex b ecau se borrower’s interest is involved too. You’re protected even if you fail to perfect your security interest in financed chattels. Failure to perfect security interest in chattels is not covered, Call or write today for more information an d a proposal. And ask for our new free publication, Risk M anagem ent Consultation. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fin a n c ia l in s u r a n c e S e r v i c e ,i n c . 1010 M eacham Road, Box 94099, Schaumburg, Illinois 60194, 312/884-3800 Protecting America's Financial Institutions with Integrity. 7 THE BANKING SC E N E By Dr. LEWIS E. DA VIDS Illinois Bankers Professor of Bank Management Southern Illinois University, Carbondale What Do Your Employees Think of Your Bank? EW BANKS are dissension-free. Yet often — especially in com munity banks — top management may be the last to know when dissension has become a problem. No one wants to be the one to tell the CEO that there is dissatisfaction in significant areas of the bank. For this reason, a survey of employees can be a valuable management tool. A number of banks use what is called a “termination interview, ” which is an attempt to determ ine why an em ployee has resigned. In a sense, this is akin to locking the barn door after the horse has been stolen, although the intelligence gained may be used to make changes to prevent other good employees from taking similar steps. A better way of approaching the problem is to conduct an attitude sur vey of employees, perhaps at one- or two-year intervals. A number of personnel organiza tions design and conduct such surveys. They also interpret responses and make recommendations to top man agement based on the responses. A professional survey for a bank with about 50 employees could cost about $3,000. Sometimes institutions ask local colleges or universities to review objectives and develop surveys. However, many bankers prefer to design their own surveys, tailoring them to their institutions’ particular circumstances. Some surveys take the form of on site interviews. Others are printed questionnaires distributed by person nel departments. Such questionnaires are to be completed anonymously at employees’ convenience and returned by mail or dropped into recepticles. Although the rate of return for ques tionnaires completed at home usually is less than 100%, replies are more likely to reflect genuine concerns of respondents than are responses obtained by personal interviews in which employees may skew or slant F 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis their answers. Most surveys are too long. It’s im portant to keep in mind the primary objective: What does bank manage ment need to know about the attitudes of employees? A series of statements works best. Employees are asked to indicate whether each statement does or doesn’t apply to their situation. One survey form I particularly like consists of a single page. Participants are asked to check words that apply to their situation under the categories “my work,” “my supervisor,” “my fel low w orkers,” “my pay” and “my promotions.” If an item applies, they place a “Y” next to the word. If it doesn’t, they place an “N” beside the word. If they can’t decide if the word applies or doesn’t apply, they place a “?” beside the word or phrase. Words appearing in the “my work” category include: fascinating, routine, satisfying, boring, good, creative, re spected, hot, pleasant, useful, tire some, healthful, challenging, on your feet, frustrating, simple, endless and gives sense of accomplishment. In the “my supervisor” column appear these words: asks my advice, hard to please, impolite, praises good work, tactful, influential, up-to-date, d oesn’t supervise enough, quick tempered, tells me where I stand, annoying, stubborn, knows job well, bad, intelligent, leaves me on my own, around when needed and lazy. In the “my fellow workers” eatergory appear the following words and phrases: stimulating, boring, slow, ambitious, stupid, responsible, fast, intelligent, easy to make enemies, talks too m uch, sm art, lazy, un pleasant, no privacy, active, narrow in terests, loyal and hard to meet. Words/phrases appearing under “my pay”: income adequate for normal expenses, satisfactory profit sharing, barely live on income, bad, income provides luxuries, insecure, less than I deserve, highly paid, underpaid. The following phrases appear in the final category, “my promotions”: good opportunity for advancement, oppor tunity somewhat limited, promotion on ability, dead-end job, good chance for promotion, unfair promotion poli cy, infrequent promotions, regular promotions and fairly good chance for promotion. Forms should have additional lines for comments of participants, but they should be told they need not sign the form. A return deadline should be in cluded. It should be relatively simple for larger banks to have forms tabulated for each major department. Depart ments showing considerable dissatis faction are obvious candidates for high er labor turnover and probably for management shake-ups. Feedback to employees is impor tant. A letter from the CEO or a high ranking personnel executive is ap propriate. The letter should explain that management is concerned about employees’ problems and would like to be able to react to them before they come to a head. The letter should assure employees that their opinions are valuable and that their responses will be kept confidential. At times — especially with respect to pay — the reply from management should be reinforced by factual data. It’s to be hoped that survey results will show management that employees have many positive feelings about their work, their supervisors, their fel low employees, pay and promotions. By finding those areas — preferably few — where there is dissatisfaction, management can zero in on problems and take corrective steps. A survey of this type gives a clear message to employees that top man agement is concerned about them and their working environment, and it gives management an overall percep tion of staff attitudes. • • MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis What good is an ATM service if it isn’t Don't let all the bells and whistles mislead you when you're considering an ATM system. Reliability should be one of your primary objectives. Consumer confidence in your ATM system and your bank is increased when your ATMs are operating when people need them... 7 days a week, 24 hours a day. That’s why we suggest you look into Tellerific. RELIABLE -Tellerif ic's Track Record Tellerific is the most reliable ATM system today. Even considering normal servicing like settlement and currency replenishment, Tellerific still has an average uptime of close to 99%. That means your customers can count on Tellerific being available when they need it. RELIABLE-Dual back-up processing The Tellerific system is driven by a Tandem Non-Stop™ computer. You get 100% reliability because all input is recorded on a dual processing system. Each operating independently of the other! And, you have the assurance that all ATM transactions are accurately recorded and available for retrieval at all times. RELIABLE-Tellerific N etw ork System reliability is one reason why Tellerific is one of the fastest growing networks today. Since June, 1981, the Tellerific network has grown from one financial institution to more than 24 located in five states. Plus, you start on-line with complete program implementation with marketing, training and documentation of all Tellerific operations. And, you'll receive the help and continuous support of our experienced Tellerific staff. Call us on FIRST LINE to find out why Tellerific is the most reliable ATM network for your customers and your bank. FIRST LINE Ohio 1-800-582-1804 Kentucky, Indiana, and West Virginia 1-800-543-7215 First in Cincinnati Department of Banks, David W. Stidham, Vice President; William C. Vermillion, Vice President; Jeffery S. Hiestand, Assistant Cashier HHaHc F ir s t National B ank CINCINNATI Member FDIC CORPORATE NEW S • Jacqueline P. Taylor has been named corporate counsel, Travelers Express C o ., M inneapolis. Ms. Taylor, with the Minnesota attorney general’s office since 1978, was the state’s special assistant attorney gener al. • Charles E . Geiwitz has joined Salem China C o., Salem, O ., as national sales manager/premium division. Until re cently, he was vice president/general manager-incentive division, W. Bell & Co., Rockville, Md. • Douglas C. R attray has join ed Brandt, Inc., Watertown, W is., as general manager/coin products divi sion. He succeeds William F. Kraemer, vice president, who has retired af ter 27 years with Brandt. Mr. Rattray was with Illinois Tool Works, Inc., Chicago, where he was special projects manager/ITW Switches Division. • Frank J. Partel Jr. has joined Amer ican Express C o.’s consumer financial services group/U. S. A. division, as senior vice president/financial services institution marketing and sales. Most recently, Mr. Partel was vice presi dent/general manager, business de TAYLOR GEIWITZ PARTEL RATTRAY velopment, of Citicorp of New York City’s consumer banking, travel and entertainment group. • R ob ert Vermillion has b een appointed loan development officer/ business loans division, Associates C om m ercial C orp ., com m ercialfinance subsidiary of Associates Corp. of North America (the Associates). The latter’s principal offices are in New York City and administrative offices in Dallas. Mr. Vermillion is responsible for managing the Associates’ newly established Kansas City sales office and for handling all business-loandevelopment activities in eastern Kan sas, western Missouri, western Iowa and Nebraska. His office is located in Overland Park, Kan. Mr. Vermillion has five years’ commercial-finance ex perience. • Automation Papers Co., Inc., Fairfield, N. J., has opened a new sales office to serve the greater Chicago area. It’s located in Skokie, 111. The firm also has a nationwide network of sales offices and warehouses in Boston, New York City, Philadelphia, Balti more, Washington, D. C ., Tampa, F la ., A tlanta, Indianapolis, Los Angeles, San Francisco and Orange County, Calif. Automation Papers pro vides a full line of small-roll, fan-folded and sp ecialty-p ap er supplies to businesses. It offers paper supplies for tele p rin ters, calcu lators, copiers, proof machines, etc. Also available is a full line of paper rolls for automatic teller machines, and the rolls can be custom printed for additional impact. • W illiam J. Duma has b een appointed bu sin ess-d ev elop m en t officer/Minneapolis region office, BarclaysAmerican/Business Credit, Inc., East Hartford, Conn. He is responsi ble for Minnesota, Iowa and the Dako tas. He has been with First National, Minneapolis, and First Bank, St. Paul. Put your bottom line w ith Am erican Security. Talk to an Am erican. Leading bankers look to American Security for protection of their bottom line and their customers. Our Collateral Protection Program can cover your bank and your customer under our Limited Physical Damage Plan. Our insurance program can be administered by one of several sophis ticated tracking systems, including our innovative System One, a major breakthrough in automated efficiency. Since 1938, we have been a leader with the most com plete line of credit-related insurance in the industry, in cluding life, accident and health, unemployment, and much more. Now, because of the ever changing leas ing environment, we offer a custom-design, residual value protection program to meet your bank’s leasing needs. We not only increase the bottom line on your non-interest income, we help pro tect your bank’s overall profits. AMERICAN Talk to one of our highly : SECURITY INSURANCE GROUP skilled professionals today. 3 2 9 0 Northside Parkway, N.W. Atlanta, Georqia 3 0 3 2 7 Talk to an American. I ' (4 0 4 )2 6 1 9 0 0 0 AMERICAN SECU RITY INSURANCE CO. •STANDARD GUARANTY INSURANCE CO. UNION SECURITY LIFE INSURANCE CO. 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for March, 1 9 8 3 /=7 ■■■ M ■ I ■ Jack Henry ■ I I Data Processing Applications. Series VI m m m n m ASSOCIATES INC. WHO'S BO SS? The program m ing for your in house d a ta processing system either REFLECTS your bank's policies or it DETERMINES your bank's policies. That's w hy w e find it critical to offer you a m easu re of flexibility not found elsew h ere in the industry. EH A lready-proven applications ... or the option to custom ize your own. 555 Source code delivered or escrow ed to you. 555 Continued support — including the developm ent of new offerings —and the kinds of services you need from d a y to d a y ... without a long-term support co n tract. The option of a p h ased installation ... or an "all at once" installation. Billing an hourly rate, or per a fixed price con tract. THE RESULT In-house d a ta processing cap ab ilities which truly reflect the w ishes an d p ractices of your m an ag em en t. B ecau se ... after all ... who's boss? Rock Valley, Iowa 712/476-5905 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Birmingham, Alabama Pleasant Hill, California 205/833-0920 415/689-2000 Moneti, Missouri P.O. Box 607, 65708 417/235-6652 Follow the Rainbow to Personalized ATM Receipts. Only from Automation Papers Date Time Mach. Account Number £ f> 3 National Bank TRANSACTION RECORD TRAM SMTEtMNK D«T= TIME Business Date TERM Code4 Serial l IE ...I M IBM Docutel w tÈ Ê Ê Ê È Burroughs NCR Diebold Only Automation Papers can personalize any ATM with custom colored ATM receipts. Whatever the ATM...Diebold, IBM, Docutel, NCR, Burroughs...custom printed receipts from Automation Papers can add your bank logo and sales message to every ATM transaction. And when you consider the substantial investment you’ve already made in your ATM capability, personalized receipts are an economical means of merchandising this convenient service to your customers. No one has more experience with ATM receipts than Automation Papers. All personalized receipts are guaranteed to meet or exceed ATM manufacturer specifications. There is even a ribbonless type paper available for most ATM equipment that eliminates misprints due to ribbon jams or light inking. In addition to being the nation’s largest supplier of specialty papers, we can also be your single source for ATM ribbons and ink rollers. Whatever the brand name, Automation Papers has supplies designed to fit your bank’s ATM equipment. To learn more about personalizing your ATM’s, or any of the other ways we can meet your specialty paper needs, call us at (800) 428-3690. In Indiana call (317) 263-0027, and in the Chicago metro area call (312) 266-8284. automation papers company, inc. Midwestern Regional Headquarters, P.O. Box 68206, 6700 Guion Rd., Indianapolis, IN 46268. 7326 Niles Center Rd., Skokie, IL 60077. Chicago Sales Office, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Amount I A T M N e tw o rk in g : H o w to Ev a lu ate It By Nancy L. Dokter OR MANY observers of the race of your program, your switch also Director toward national networking, the should provide testing of ATM hard whole thing seems to lack a great deal Corporate Communication ware, as well as training for your opera of perspective. Many are sitting back tions staff. Netw ork Management Corp. and asking for answers to these basic 2. Receive the message being trans Downers Grove, III. questions: mitted from the terminal, and provide H ow does a netw ork fi t tog eth er in your program grows. In other words, storage for it in computer files. the first p la ce ? your switch’s pricing schedule should 3. Verify the PIN, or personal iden W h ere d o e s b r o a d -s c a le sh arin g ensure that your unit-transaction costs tification number, being used. This com e into play? Is the en tire con cept will decrease as your transaction number always should be encrypted, designed simply to gen erate publicity volume increases. or in other words, put into another f o r the la rg e, politically m otivated net Specific functions of the switch are sequence of nonreversible numbers to w ork op erators? to: protect it while it is being transmitted. 1. Provide for operation of the ATM 4. Send the transaction request to W here does electronic-funds-transf e r netw orking fi t into plans o f my in or other device. During initial start-up your data processing center, when stitution? I believe these are important ques tions, deserving honest and straight forward answers. First o f all, how does a netw ork fit together? Let’s begin with a basic diagram (see diagram No. 1) and expand from there. By following that diagram, we see that a network’s basic components are: 1. A group of card-activated electronic devices. 2. A switching facility. 3. One or more data centers. 4. One or more financial institutions. We can best deal with these one at a time. F 1. The Electronic-Access Device Quite simply, the electronic device is the consumer’s point of access to the system. It can be an ATM, a point-ofsale (POS) terminal, an electronic cash register, a telephone or even a gaspump terminal. 2. The Switch The switch is the computer facility that actually provides you with the key operational, marketing and financial elements to make your program a suc cess. Operationally, the switch per forms all the functions needed to oper ate the ATM or other device, transfer transactions and provide settlement for all participants. Most importantly, the switch should provide flexibility in your marketing plans. The switch must be able to handle proprietary pro grams and sharing programs, to the extent of facilitating sharing on a local, reg ion a l o r even n ation al basis — without software renovation or mon umental timing delays. On a financial note, you should expect your pro gram’s cost-efficiency to increase as MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Diagram No. 1 13 such is available — to authorize or deny it against live customer balances. When the processing center is not available, it is the function of the switch to utilize off-line limits to au thorize or deny the transaction. Again, each step of the process is recorded electronically. 5. In a sharing environment, the switch routes each local transaction to the appropriate data processor for handling and each “foreign’ transac tion (card-holder not serviced by the switch) to the appropriate switch. 6. Perform a network reconciliation and settlement function each day of the week at a set time. This settlement might come to the financial institution or data center in the form of an ACH compatible file and a set of printed reports showing all transactions and transfers of funds that have taken place during the last 24 hours. 7. Monitor at all times and provide diagnostic analyses for the terminals it supports. This means that when an ATM is out of cash or has a mechanical problem, the switch’s operations per sonnel will notify the correct party for maintenance. 8. Provide immediate card-setup ability and allow you to issue cards to every customer. Due to high costs of balance” immediately. This allows most computer interconnections, the your customer the best possible access latter can be cost-effective only if the to his accounts. Also, the data center often will per switch can relate to your data proces sor in the processor’s own “language. ” form certain functions in support of 9. Produce m arket-support in settlement reporting. For example, formation. For example, you should be the data center might accept reports, able to obtain lists of customers who via a magnetic tape or communication have never used your ATMs or who line transmission, and print them for the financial institution. have tried to use them unsuccessfully. 3. The Data Center The next element of a network con figuration is the data center. A link between the switch and data process ing center (whether part of your finan cial institution or separate) facilitates the passing of information between the two computer systems. The data cen ter should not need to revise its ap plication software or hardware to link with the switch. Rather, the switch will accommodate or “emulate” the data center’s communication protocol and message format. In regard to net working, the main function of the data center is to approve and deny transac tions and post them for the financial institution. Thus, in the case of an approved cash withdrawal requested at an ATM, the data center would re duce the customer’s “available cash Diagram No. 2 14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4. Financial Institution The fourth component in a total net work schematic is the financial institu tion. The financial institution’s staff is responsible for setting the program’s goals and choosing equipment and ser vicers needed, carrying out certain ongoing administrative functions and providing the marketing plan for the program. If you now are planning an E F T program and choosing servicers, make certain that you will receive complete satisfaction from these service provid ers, and question your prospective switch operator as to its capability to provide all the services listed earlier in this article. Also, rely strongly on the reputation of the servicers in the mar ketplace. Your switch, for example, should be able to accommodate your business now an d assist you in expand ing your program in the future: by adding new vendor brands, using new types of E F T devices or branching into larger or new market areas. This may not seem terribly important if you are just deploying a few ATMs today, but remember to consider where you want to be in five years; changing switches can be expensive, not only in dollars, but also in lost opportunities!! Another important responsibility of a financial institution is to establish and update cu stom er-card -u sage files through use of an administrative ter minal. In this way, the financial in stitution maintains complete control of who is given an ATM card, what his transaction and dollar amount limita tions are and any changes in these limitations. Marketing an E F T program certain ly is another major aspect of estab lishing such a program. However, this topic deserves special attention that would take us beyond the scope of this article. All these components — the cardactivated device, the switch, the data processor and the financial institution, are part of the total E F T network. With the proper organizations assist ing in these capacities, you will have a flexible and secure core for any kind of E F T activity you wish to participate in. Now for the second qu estion : (C ontinued on page 22) MID-CONTINENT BANKER for March, 1 9 8 3 Youp ATM. Alone. Exposed. Vulnerable. Except for Mosler. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Seven-day-a-week, 24-hour-aday operation and isolated loca tions make ATMs particularly vulnerable to fraud, vandalism, attack. But you can protect your investment anywhere, any time, through one trusted security source—Mosler. A full-time ATM needs full-time surveillance, and that’s what you get with Mosler Photoguard® TV— a continuous videotape record before, during and after every transaction. Mosler’s compact ATM alarm system fits neatly inside the cash container. Its economical protection is designed for single ATM installa tions. For multiple units, specify the Mosler 400C Alarm. Or safeguard an entire ATM network through our far-reaching COMSEC™ Security Communications System. Mosler also offers an Access Control System for vestibule and freestanding ATMs, Magna® Night Depositories with ATM interface and more. Our broad capability provides total ATM security with single-source convenience. And nationwide Mosler Service main tains that ATM security 24 hours a day, seven days a week. So buy your ATMs from the ATM company you prefer, but buy your security from the security company you trust: Mosler. For more information, write Dept. ATM-83, 1561 Grand Blvd., Hamilton, OH 45012. Mosler An American-Standard Company Hamilton, Ohio 45012 Joining Shared-ATM Network: Choose Partner Carefully By Shelton Reichart OUR financial institution’s future will depend not only on respond Netw ork Services Marketing ing successfully to today’s contingen Decimus Corp. cies, but also on maintaining oper W alnut Creek, Calif. ational flexibility for the future. Un precedented challenges to the finan cial-services industry are resulting in unprecedented managerial and tech of A TM -transaction-sw itching ser nological responses. Can you be sure vices, we don’t impose restrictions your actions today will not limit your typical of the two large national net ability to respond successfully tomor works that have received extensive row? One way — the topic of this arti publicity. These networks are based cle — is to develop an E F T strategy on a “strategic-positioning” concept to and infrastructure that not only meet lock up markets through restrictive current marketplace demands, but agreements, which may dictate: also have built-in flexibility for the fu 1. With whom you may share. ture. 2. Under what conditions you may A void shotgun m arriag e. Increas share (reciprocity). ingly, today’s citizens are adapting 3. Which machines you make avail their lifestyles to high-cost housing by able. sharing living space. This manifesta tion of the “W e” decade is paralleled in the financial-services industry by de " W h a t . . . is the 'id e a l7 velopment of shared-ATM networks. No longer is the question, “Why n e tw o rk? W e a t Decim us share?” Now, “With whom to share?” C orp. . . . advocate nonreis the key. strictive sharing, whereby net As E F T commentator Paul Nadler work members work with us to points out, “The choice of an ATM partner may . . . be made in haste, in develop the network and use its order to meet the competition. But in identity to serve their specific many ways, it is like a marriage that forces the joining banks to go down the needs." road with the other banks in far more ways than just choice of ATM equip 4. Which cards you make available. ment and locations. (The networking) 5. Network identity and its use. decision may well be the most im 6. Interface requirements. portant decision that today’s CEOs make. . . . ” 7. Interaction or prohibition of in Thus, your decisions might result in teraction with other financial institu either assuring your financial institu tions, nonfinancial businesses and tion’s independence and operational other E F T systems such as VISA, Mas flexibility, or locking your institution terCard and AMEX. into an arrangement that serves the Exclusivity. Such restrictions run strategy or “charter” members of the counter to the underlying currents in netw ork to the disadvantage of the financial-services marketplace. In “junior” members. stead of fostering increased interaction John Fisher, senior vice president, and sharing of E F T resources among a Bank One, Columbus, O ., under group of financial institutions and scores this point by saying, “Exclusive other businesses, exclusivity might re systems are not likely to be viable. sult in creation of other exclusive net They’re just little games that little works. Moreover, excluding nonfinan bankers play, and they’re driven by cials such as Sears might result in ex emotion — based on the fear of being actly the opposite of the hoped-for left out of som ething (they don’t effect of retarding their development understand what).” of E F T capability. With their broadAs an impartial third-party provider based card and location systems and Y 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tremendous financial resources, many nonfinancials are poised to end-run the financial-services industry if neces sary. Nonexclusive sharing. What, then, is the “ideal” network? We at Decimus Corp., a data processing subsidiary of BankAmerica Corp., advocate nonrestrictive sharing, whereby network members work with us to develop the network and use its identity to serve their specific needs. Ours is a “custom(er)-built” network; i.e., one built by financial institutions and us to achieve financial institutions’ strategies and objectives. You retain control of criti cal elements such as your sharing part ners, reciprocity, network identity and its use, etc. Decimus is rapidly expanding its presence. With 14 years of financialindustry data-processing experience, resources of BankAmerica Corp. and a core of dedicated professionals, D e cimus is in the vanguard of the finan cial-services revolution. State-of-theart networking capability is provided by our switches in New Jersey and San Francisco, coupled with data-pro cessing hubs in Chicago, Pittsburgh, Nashville, Knoxville, South Carolina, Boston and Los Angeles. Our western network, which includes FASTRAC™ sharing members and several proprie tary members, serves more than three times as many ATMs as it did a year ago. Technical features of our system assure the most dependable, versatile and secure ATM system available, pro vide interface capability with other financial institutions, networks and businesses and lay the groundwork for future services, such as point-of-sale ánd home banking. Standards include: • DES personal-identification num ber (PIN) encryption. • Central PIN verification (no PIN transmitted “in the clear” on foreign transactions). • On-line, 100% authorization of all foreign transactions, 24 hours a day, seven days a week (or less, by mutual agreement). • Track 2. • Personal-account number (PAN; (C ontinued on page 40) MID-CONTINENT BANKER for March, 1 9 8 3 It m aybe a jungle, but m ost of the tigers are paper. The competition among EFT systems is heating up. And the tangle of competitive claims can become positively disorienting. But some claims have more credi bility than others. Because many systems, so far, deal mostly in paperwork: predictions, projec tions and promises. A select few actually have the capability to deliver. easy answer delivers. It's the driving force behind the first shared, electronically switched ATM network in Illinois. The first Illinois system to put point-of-sale (POS) terminals on-line. The first system in the country to offer on line direct-debit gasoline pumps. Right now, easy answer drives networks throughout Illinois. Sup ports services today that are still in the future elsewhere. And has won overwhelming consumer support with an incredible record of uptime reliability and convenience. Like other systems we have plans on the drawing board — more elaborate POS systems, home banking, regional and nationwide interchanges. Unlike other systems, we have what it takes to turn plans into reality: hardware, software, talent, and experience. If you would like to know more about the easy answer system — or if you think your system could benefit from our experience — feel free to call or write our Executive Director, Ben D. Mills, Jr. at easy answer, One Old State Capitol Plaza North, Springfield, Illinois, 62701. Area code 217: 525-4040. While others make plans, easy answer makes history. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 Bank's A TM O p eration Rescued by A llian ce W ith N ew N etw ork N 1975, First National in Troy, O., culties of the existing system had frus was the first bank in its market to trated them. W ith T E L L E R IF IC , offer automated teller machines. By th ese custom ers not only got a 1980, it found itself faced with an anti machine that was reliably available quated off-line system while other seven days a week, 24 hours a day, but competing banks were installing more they also received a number of addi modern ATM systems. And, by April tional transaction functions. Steve Val1981, F irst National-Troy had de lo, marketing director, says, “T E L L creased transaction usage to 2,000 a E R IFIC offers our customers a bank month, a drop from 5,000 a month ing system that meets all their needs. With our improved operating system, when the system was at its high point. Loss of transaction volume was at customers are confident they can do tributed directly to loss of customer their banking whenever it is conve confidence as the bank’s ATM opera nient to them. Plus, they can now tion became very unreliable. Exces make split deposits, make transfers, sive machine downtime spells instant payments, withdraw cash from their failure for any ATM program. In addi checking or savings or credit-card tion to loss of customer confidence, account and get instant balance update high machine-maintenance cost had after completing their transactions. boosted the average cost of processing Shortly, our customers will be able to an ATM transaction substantially high access up to nine accounts in our bank, er than human/paper-based transac which is particularly important now that we are offering money-market in tions. First National-Troy knew it had a vestment and checking accounts.” In May, 1981, First National Bankproblem and was faced with a major decision. The bank had to find a solu Troy installed T E L L E R IF IC ATMs at tion that would help it restore custom its main office and two additional higher confidence, increase its competitive traffic branches. A fourth ATM was in edge and, at the same time, lower its stalled in an off-prem ise location. ATM operating cost. After reviewing Activity at the off-premise location has the alternatives, First National-Troy elected to become a member of T E L L E R IFIC , the ATM network operated by First National of Cincinnati. “We felt the T E L L E R IF IC network would answer a number of our prob lems,” says Dave Ault, president of First National-Troy. “With T E L L E R IFIC , we received increased reliabil ity, increased security and, most im portantly, T E L L E R IF IC allowed us to go on-line. Plus, its 98.5% uptime is outstanding when measured by indus try standards. W e knew that if our machines were operational 98.5% of the time, we’d be able to gain back our customer credibility with respect to self-service banking. F irst N ational-Troy custom ers already were familiar with use of an ATM. They had proved they had a genuine interest, but operational diffi- I 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis been slower than at the other three b e tte r-e sta b lish e d F ir s t N ational offices, but it has been growing steadi ly. Currently, 14% of the bank’s total ATM transactions are conducted at the off-premise location. “W e’ve been pleased with the offpremise location and feel it will con tinue to expand as more and more of our customers adapt their routine banking habits to the ATM. The peo ple who use it really like it,” says Mr. Vallo. “But off-premise ATMs present a whole new field of questions when it comes to processing and servicing the ATM .” “But realistically speaking,” says Mr. Ault, “our continued expansion in off-premise sites will be governed pri marily by the growth of our card holder base and number of transac tions we experience.” First National-Troy feels its ATM in vestment will be cost justified when it reaches an average volume of about 3,000 transactions per machine per month. Its current average is just over 2,500 transactions for each of its four machines. The bank has not experi enced a decline in staffing, but it has stabilized at its current levels. Dave Ault explains, “Our primary objective right now is to convert our existing customer base to the self-service style of banking because of the proved fact that transaction costs d eclin e as machine usage increases.” From the start of the project to now, First National-Troy has commended the help it received from its network implementors. “The T E L L E R IF IC people at First National of Cincinnati are great,” says Mr. Vallo. “You name it; they’ve done it. The T E L L E R I F I C staff is in strumental in the management of our system. They helped in the hardware selection, setting up operational sys tems, ordering and distributing cards, establishing network-settlement pro cedures as well as card-holder and maintenance procedures. They had a MID-CONTINENT BANKER for March, 1 9 8 3 Our ATM network is custom (er)-built. Our customers buildour net work by telling us their needs... and we implement them. Work with us and you can custom-build your network, too. We specialize in providing nonrestrictive ATM network services that meet your strategies, goals and objectives. We don’t pick your sharing partners for you. We don’t limit your associations with other networks. We don’t impose a network identity on you. And we don’t tell you how to run your ATM network. We do offer customized ATM network services backed by four teen years of experience and expertise in the financial data processing industry. We’re a subsidiary of BankAmerica Cor poration and you can depend on us for impartial support, advice and assistance in the installation and marketing of your network. We provide ATM transaction switching to more than three times as many ATMs as we did a year ago. And we’re still growing. With our services, you’ll know exactly what you’re getting into because you’re in control. You can choose associate banks and less regulated businesses to be mem bers and still leave room for suc cessful relationships with other networks. Our services are dependable, versatile and expandable and allow you to meet present and future EFT demands with confidence. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Our cost structures are straight forward and clearly defined— designed to uncomplicate your budget and ease your cost burdens. We also offer flexible leases on your ATMs. And we offer other bonuses, too. You can take advantage of our agreements with American Express, MasterCard, VISA, and others to access their services. We even have our own shared network for commu nity banks. FASTRAC™ is also a non-restrictive arrangement offering selective/optional sharing. Our success depends on your success. So if you’ve defined your requirements in an ATM network, contact us. You’ll find us in strate gically located cities across the country. Network Services Group Walnut Creek, California 415/944-6176 ATM Center East Piscataway, New Jersey 201/981-9191 ATM Center West San Francisco, California 415/953-2860 Other locations: Los Angeles, California Chicago, Illinois Westboro, Massachusetts Pittsburgh, Pennsylvania Cayce, South Carolina Nashvilleand Knoxville, Tennessee ^ ^ J o e c tm u s corporation A BankAmerica Company 19 ASSET/LIABILITY MANAGEMENT ANALYSIS Professional Computer Software for Financial Institutions. __________________ COMPARE Super Now Account Analysis------------------------Balance Sheet & Income Statement Forecasts___ Net Interest Margin & GAP Analysis_________ Interest Rate Sensitivity Analysis--------------------Parent Company analysis-Debt Capacity, Dividends & Capital, Tax________________ Loan Pricing Analysis______________________ Computer Generated Investment Plan--------------Cost over $4000___________________________ YES YES YES YES NO YES YES SOME YES YES YES NO NO NO NO YES Cost only $695.00 Only at the PLANALYZER P A C K A G E IN C L U D E S : Documentation and literature on VHS, Beta, or audio training cassette including formulas, user instructions and discussion of current asset/liability management. S Y S T E M R E Q U I R E M E N T S : Apple II, Apple III, or IBM PC. W rite for information on other computers. VisiCalc (any version). LIMITED OFFER Planalyzer...........................$695.00 Local Prime M odel. . . . $165.00 Operation Analysis M o d e l........................ $ 210.00 Video Training System .. . $80.00 Reg Now only $ 8 6 2 . 0 0 FREE' 20 DAY TRIAL! To order, or for complete details, write: P L A N A L Y Z E R , 5 818 Lovers Lane, No. NO.104B, Dallas, Texas 75 2 2 5 . (2 1 4 )3 5 2 -8 5 9 6 . S o ftw a re Free trial includes PLANALYZER and training tapes. Send $50.00 return able deposit and specify VHS, Beta, or standard cassette. 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis w ell-docum ented im plem entation plan, which outlined everything we needed to do to go on-line in a hurry. P articu larly im portant to us was T E L L E R IF IC s marketing program, which is so important in the beginning, or ‘re-beginning, of an ATM pro gram.” T E L L E R IF IC support does not stop once a bank has its system up and running, Mr. Vallo continues, point ing out, “If we have a question, we know we can call F irst N ationalCincinnati. The bank keeps us abreast of all hardware and operational im provements and how those improve ments impact our system. Plus the T E L L E R IF IC network provides on going marketing tools, whether they be brochures, ads, radio spots or manuals we can tailor to our specific market needs. We know ATMs are here to stay and with T E L L E R IF IC we have a service that’s easy to sell. In thinking back to the experience we had with our first venture into ATMs, it is comforting to know we now are part of the most sophisticated ATM system.” F irst N ational-Troy feels that T E L L E R IF IC , as well as future E F T products, will keep it competitive in the marketplace, while at the same time help hold normal operating costs in check. “ But, another reason we joined T E L L E R IF IC , says Mr. Ault, “is be cause we know the people in Cincin nati constantly are exploring ways of keeping T E L L E R IF IC competitive in the E F T market. They are continuous ly on the lookout for new applications and expanded functions that will ben efit every member of the T E L L E R IF IC network.” Steve Vallo sums things up this way, “We feel that T E L L E R IF IC and First National-Troy are a winning combina tion. We re convinced we’ve got the best banking delivery system in town. ” • A 400-page guidebook designed to help financial institutions and other organizations comply with dividend/ interest withholding is available from Deloitte Haskins & Sells, accounting firm. Chapters in the book deal with T E FR A requirem ents, IRS regula tions, operation/computer systems changes necessary and other informa tion. Title of the manual is “Withhold ing on Interest and Dividends — Com prehensive Systems Guidebook for Compliance With T E F R A .” Cost is $300 and orders can be placed with Curtis H. Cadenhead, Deloitte Has kins & Sells, 1114 Avenue of the Amer icas, New York, NY 10036. MID-CONTINENT BANKER for March, 1 9 8 3 To offer a dependable card program, you need a dependable source. American Fletcher National Bank. If you’re planning to issue plastic cards to your customers or if you’re changing your present service, American Fletcher National Bank offers you a very dependable alternative. Our total Automated Card Services. Our ACS Bureau can develop and maintain your entire card program. A program we will customdesign to your requirements and those of your customers. A complete program offering every service from card design to form, envelope and brochure production, to stuffing and mailing, file maintenance, mass issues and ongoing plastic production. All protected by strict security. We itemize our estimate so you know exactly what our services will cost. And we provide a firm delivery schedule based on your timetable. Including Track I, Track II, Track III or Docutel encoding on mass issues, reissues and daily issues. Our expertise is based on years of program development and service. We’ve issued millions of cards to more than three hundred financial institutions throughout the United States. To offer the card that carries expert service, fill out and return the attached coupon, or call Jo e Renforth at 3 1 7 /6 3 9 -7 6 4 2 . MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Return to: Automated Card Services American Fletcher National Bank 4 5 0 E. Washington Street Indianapolis, IN 4 6 277 NAME POSITION COMPANY ADDRESS CITY STATE ZIP PHONE AMERICAN FLETCHER NATIONAL BANK AFNB INDIANAPOLIS 21 ATM Networking (C ontinued fr o m page 14) “W here does b road -scale sharing com e into play, and w hom does it ben efit? ” Basically, sharing can he broken down into three types: local, regional and national. 1. Local Sharing Local sharing works well for a group of financial institutions with a variety of locations in a well-defined geographi cal area. Mobility of customers should be high within this area, as they travel B a n k in g C a re e r S p e cia lists Financial Placements is built on a history of strong relationships betw een bankers and Bank News' publications. You can benefit from these rela tionships — plus the more than 65 years of bank-related experi ence of these two men — by using our specialized employ ment service. Mike Wall Manager Tom Cannon Associate Call us! We can help find the right person or the right position. FINANCIAL PLACEMENTS a division of BANK NEWS 912 Baltimore Kansas City, MO 64105 816 421-7941 - 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to work, to shopping centers or to places of entertainment, where they will have an opportunity to notice and use the machines. A good mix for a local sharing program might be a few financial institutions with drive-up ATMs, several with locations at shop ping malls and on high-traffic street corners, maybe some with locations at a train station and gas stations, and perhaps another party offering access to terminals in supermarkets. (Note: A good local sharing program will pro vide a solid base on which to expand and also allow you to measure benefits you are offering and re-evaluate your financial justification.) 2. Regional Sharing If your customers tend to travel fre quently, and on a broad basis, regional sharing may be the next step for your program. Probably the best way to move into regional sharing is to make sharing agreements with other local networks being serviced by your switch. This way, you can implement the sharing program quickly and with out additional linking costs. However, depending on the opportunities in volved, you may choose to include other groups in your regional network, if this is the case, your switch then needs to link with the other switches serving the outside groups. This will not be a problem if the initial choice was a good one. 3. National Sharing National sharing seems to be the most popular type in today’s hightechnology market. However, the way you approach the idea will make all the difference between great success and expensive failure. Naturally, every marketing decision should have as its base a firm understanding of goals and objectives sought, but with national in terchange, the need for these ideas to be established becomes even more vi tal. You see, the main advantage of national interchange is marketing sizzle, and that’s good. However, greatest usage of the national-sharing capability will be by the traveling con sumer for obtaining emergency funds. Since nearly all travelers carry an extra supply of cash with them or rely on credit cards, you should not expect to experience a high volume of transac tions. However, the sizzle can become a tangible customer service, and this may be worth consideration. Example: You have begun offering national ac cess to ATMs as part of your E F T pro gram and are explaining this to a re tired couple who spend every winter in their Florida home. Sizzle suddenly may turn to steak if the couple decides to close the account they opened in a Florida bank in favor of leaving the funds in you r institution and using your proprietary card to make deposits in a Florida shared ATM. V oila!! National sharing just paid off! A word of caution — national shar ing probably isn’t worth giving up the right to determine the future of your E F T programs, nor is it worth giving up potential market areas through ex clusivity arrangements sometimes re quired, nor is it worth paying out onehalf of your bank’s profits this year to participate. To summarize, treat national sh a r ing as a natural expansion o f your local an d regional sharing program s; this is possible once you have chosen your switch wisely. You should b e able to rely on your switch to do the m ajor techn ical an d interconnection w ork, w h ile you m aintain y ou r fo c u s on m arketing and oth er related institu tional objectives. See diagram No. 2 (page 14) as to how this can be accomplished. As shown, with our SATM program, a single investment in one link pro vides access to all three types of shar ing: local, regional and national, with out the high levels of confusion, effort, expense or time. To answer the second half of that initial question, “Is the w hole concept o f national sharing designed simply to generate publicity f o r the large, politi cally m otivated netw ork operators? let’s approach the issue head on. I f you do not m ake your decisions on a purely political basis, you will not be tem pted to deal with an organization that o p er ates on such a basis. Base your judg ments on solid technical capabilities and good marketing foundations; tell your switch operator what you expect in services, and don’t worry about the high rollers. Our third major consideration really is the most important of all: “W here does EFT netw orking fit into plans o f my fin an cial institution?” Without a solid understanding of realistic goals for your electronic funds transfer program, your success will be, at best, accidental. L et’s review some of the benefits associated with ATMs and POS programs. Benefits of E F T Networking 1. Customer convenience — the best possible advertising message to your customer is that he is no more than a few m inutes from service throughout the area. An E F T program can make that a reality your customer will quickly come to rely on. 2. Increase in your market share — yes, it is possible. In fact, one New MID-CONTINENT BANKER for March, 1 9 8 3 ATM Paper Supplies Acknowledgement and audit rolls and inked ribbons for Docutel TT2300 ATM equipment now are available from Automation Papers Co., Inc., Fairfield, N. J. Receipt rolls for the Docutel TT2300 are supplied in 12-lb. white bond or 14-lb. self-contained (rib bonless, impact) paper. They are packed 18 rolls per case. Other col ors available include canary, pink, green and blue. I n•*•• ■ Acknowledgement and audit rolls an d inked ribbons fo r Docutel TT2300 ATM equipm ent now are available from Automation Papers Co., Inc., Fairfield, N. J. Audit rolls in white 12-lb. bond or 14-lb. impact paper are packaged 50 per case. Fabric inked ribbons are offered in black or black/red com bination. Automation Papers will custom print customer-receipt rolls with legal disclaim er, bank logo or marketing message to bank custom ers. Contact: D. Carr, ATM Specialist, Automation Papers Co., Inc., 330 Fairfield Rd., Fairfield, NJ 07006. York City bank announced that its E F T program has effected a doubling of its share of consumer deposits since 1977. By expanding the availability of access to your financial institution, you are likely to attract new customers from within that area. Promote these strengths, and utilize the sizzle avail able to you. 3. Avoid increasing lobby hours and teller stations — by installing drive-up or 24-hour walk-up ATMs, you have an opportunity to avoid increasing the number of teller stations in your bank and also the number of hours the lobby is open. 4. Lower costs — for example, the national average cost per transaction at a live teller is 750-900. This same transaction at an ATM would be 300400. Also, with a balanced blend of on-prem ises/off-prem ises, shared/ proprietary ATMs plus a good POS program, you can negate the need for some brick-and-mortar expansion. 5. Receive transaction fees — if your machines are in key, high-traffic locations, it’s possible for your E F T program to become quite profitable for you through your own use and through fee income. However, if you need to install a machine to protect your mar ket share in an area where your cus tomer base is small, sharing may be almost essential to making it worth while. Another source of income can be gained by making ATMs available to credit card holders, through pro grams such as those organized by American Express and MasterCard, if you wish to participate. 6. Install fewer machines — if you participate in sharing with others that have E F T programs, you may each be able to install a few ATM or POS de vices, rather than each deploying inde pendently and over-saturating your area. 7. Effectively compete — if your competition is not keen on the idea of working together, you may need to use your ATM/POS program as part of your “competing strategy. ” If he does not have ATMs, install yours first! Or, if he has a comprehensive proprietary ATM program, include POS and shar ing arrangements in your program! Of course, remember that you may be working together down the road, and do not directly duplicate each other’s efforts. 8. Enhance your bank’s profession al image — in this age of high-tech nology and computers, it is important to be perceived as “on top” of the in dustry. Incidentally, this does not re duce the importance or necessarily the perception by customers of quality ser vice or personal contact; if done prop erly, an E F T program can help you build a reputation for providing topquality, 24-hour customer service. Do ask yourself, “Where do we want to be in today’s evolving market?, ’’ and set your goals accordingly. Evaluate the benefits of all levels of sharing, as described earlier, and decide where your best “fit” is. Review your prog ress frequently, evaluating each new industry innovation by asking as many questions as possible and by consider ing how it might aid you in realizing your objectives. The fact is, E F T is here to stay. Suc cessful bankers will be those who stay closely attuned to the needs of their customers, know their objectives, in vestigate options available, choose their services correctly and utilize their resources wisely. Here’s wishing you success. • • Easy Answer EFT Net Makes Gains in Illinois; Plans Link to Nationet months. In the Springfield area, Easy An swer supports 12 POS terminals in re tail outlets — from supermarkets to lumber yards. The system also sup ports 16 direct-debit gasoline pumps at two outlets. Last December, major banks in the Champaign-Urbana area announced th e ir in ten tion to becom e Easy Answer members and to market their ATM services under the Easy Answer banner, Mr. Mills says. He calls the move “an unprecedented area-wide conversion of previously competitive systems involving 24 financial institu tions.” Illinois is about to establish state wide sharing of electronic banking fa cilities and Easy Answer has been des ignated as one of the two fundstransm ission facilities for this ex panded service. Mr. Mills says Easy Answer will be the exclusive provider of switching services between Nationet — a nation al E F T network comprising 12 region al networks and more than 3,000 par ticipating financial institutions — and Illinois financial institutions, working through Electronic Funds Illinois. The network is expected to be live by sum mer. Banks in Illinois are finding it more economical to join the Easy Answer E F T system than establishing their own, says Ben D. Mills Jr., executive director of the Springfield, 111.-based operation. Mr. Mills says the largest financial institution in the state (outside of Chi cago) selected the Easy Answer system for its new shared network after deter mining that the system was capable of processing the high volume of transac tions it anticipated. It avoided the sub stantial startup costs associated with implementing an independent sys tem. Membership in Easy Answer now exceed s 90 financial in stitu tion s, according to Mr. Mills. Member in stitutions are distributed from the Chi cago suburbs in the north to Belleville in the south (a city near St. Louis). As of the first of February, 94 ATMs were being driven directly by Easy Answer and more than 240,000 trans actions were being processed month ly. A year earlier, the monthly transac tion figure was 50,000. A 350,000 fig ure has been predicted within six MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 When our insurance reps come in for a meeting, it's like a three-ring circus. It sure would be simpler to have one company that can do it all. I'm calling Integon today. Integon has all the answers to my customer's questions. Mortgage guaranty insurance, credit life and health, mortgage life, mortgage health and accidental death. That kind of variety is a rare find. The Integon account manager is my personal tie to the people who care about my customers just as much as I do. And he does his best to see that my institution's profits w on't do a juggling act. If your present insurance services program makes you feel too much like a ringmaster, give Integon a call. I'm calling Integon today. 919- 770-2588 Or, to request more information about Integon, mail this coupon. Please send me information about Integon's Credit Protection Division. John Messner, CLU President, Credit Protection Division Integon Life Insurance Corporation P.O. Box 3199 Winston-Salem, N.C. 27lb2 N am e T itle In s titu tio n INTEGON INSURANCE A d d ress S ta te C ity ( 0 ) T e le p h o n e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Z ip MCB 383 About Banks & Bankers ILLINOIS New $1.1 -Billion HC Created by Six Banks Midwest F in an cial Group, Inc. (MFG), said to be downstate Illinois’s largest bank HC, was created last month when banks in Peoria, Cham paign, K ankakee and Sp ringfield signed final merger documents. The $ 1 .1-billion company, described as the sixth largest in the state, unites six banks: Commercial National, Prospect National and University National, all in Peoria; Illinois National, Springfield; First Trust, Kankakee, and First National, Champaign. The M FG executive committee is made up of: David E. Connor, the HC’s president; A. D. Van Meter Jr., president, Illinois National; Walter J. Charlton, chairman, First Trust, and William C. Fox, chairman, First of Champaign. Donald R. Houk is senior vice president; Sandra M. Traicofif is corporation secretary, and Barbara J. Duryea is controller. Mr. Houk and Ms. Traicoff are former officers of Commercial National, Peoria. Mr. Connor continues as that bank’s president/chairman. Each bank in the HC continues to retain its own name and identity in the community it serves. Gilbert H. Todd, executive vice presi dent, Elliott State, Jacksonville, since 1973, has moved up to president/chief operating officer. Robert W. Morris, vice president, has assumed additional lending responsibilities as supervisor of all lending operations. He went to the bank in 1957. Richard A. Foss and Jeffrey B. Coultas were named vice presidents. Mr. Foss, with the bank since 1972, formerly was assistant vice president. Mr. Coultas, who joined Elliott State in 1981, continues as cashier. E llio tt State also named Douglas J. Thompson, farm manage ment-department manager, and Paul D. White assistant vice presidents. Rick L. Forth, accounting officer, has been made comptroller. Deanna L. Anderson has been promoted to assis tant cashier. RHODES Hedric E. (Pete) Rhodes, president of Quaker Oats’ U. S. Pet Foods Divi sion, has been elected a director of Chicago’s Merchandise National. John E . Brubaker has been elected president/CEO, First Bank of Illinois Co., Springfield, HC for First Nation al, Springfield; First Trust, Taylorville, and Firstbank Mortgage Co., Springfield. Mr. Brubaker joined First of Springfield in 1974, became a direc tor in 1979, president in 1981 and pres ident/CEO last year. He was elected secretary of the HC in 1978 and, in 1981, b ecam e its vice president/ treasurer/director. H arris Trust, Chicago, has estab lished an income-property fund for real estate investments of its trust de partment’s institutional clients. The new fund, directed toward smaller taxexempt pension/profit-sharing plans, will begin phasing in selective pur chases over the next several months. Its manager is John K. Rutledge, vice president/trust investment group. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRUBAKER Bank Declared Insolvent BRADLEY — American State was closed February 12 by First Deputy Commissioner John E. Treston, rep resenting William C. Harris, com missioner of banks/trust companies. The reason: The bank was deter mined to be insolvent because of ex cessive loan losses and because it failed to generate sufficient income to provide a sound capital structure. Deposits in the bank were pur chased from the FDIC by Midwest Trust here, whose president is Wal ter J. Charlton. Mr. Treston emphasized that American State’s depositors will not be inconvenienced in any way. The Fed has approved the application of Eagle Bancorp, In c., Highland, to form a multi-bank HC. Banks joining it include Farmers & Merchants, High land; First National, Nashville, and Sparta State. As members of the HC, these banks will have consolidated assets of more than $130 billion. C ontinental Bank, C hicago, has named two mergers and acquisitions specialists, who have joined an ex panded M&A group in the bank’s financial services department. Morris Gold, formerly president, Mesirow Capital Corp., will head a second Chi cago-based team as vice president/ manager. Joining his team is Jean E. Perkins, formerly with the mergers and acquisitions department of War burg Paribas Becker. The present Chi cago-based team is managed by Vice President Barton L. Faber. A New York team is headed by Vice President Richard J. Sandulli. INDIANA Joyce Stahl has been promoted to assistant trust officer, Community State, Huntington, which she joined in 1972 as a bookkeeper. She went to the trust department in 1978. Daniel B. Moore has joined Irwin Union Bank, Columbus, as vice president/business services division. He is responsible for business-services de velopment in Bartholomew County. Mr. Moore formerly was assistant vice president/loan officer, Second Nation al, Richmond. Also at Irwin Union, Nancy Merk was promoted to assistant vice president/deposit services. She joined the bank in 1978 and became systems project officer in 1979. Security Bank, Vincennes, is erecting a new, 7,500-square-foot branch build ing, which is expected to be completed in December. It will have the W il liam sburg colonial style of architecture. Bank Building Corp., St. Louis, is doing the building project. Steven R. Abel has moved up from assistant vice president to vice presi dent, Central Indiana Bank, Fairland. He joined the bank in 1974. 25 Detroit in 1966 and joined the Bay City bank last year as senior vice presi dent/chief operating officer. Richard J. Van Akker has been promoted to vice president/cashier. MICHIGAN Restructuring Is Announced By Bay City Bank HC Peoples Banking Corp., Bay City, has restructured the responsibilities of its senior executives to reflect more accurately its growing emphasis on strategic planning and centralized ser vices. Four new senior executive positions have been created. James L. Bichardson, formerly senior vice president/ secretary-treasu rer/ ch ief financial officer, has been appointed to the new office of executive vice president/ secretary-treasu rer/ ch ief financial officer, and he will have final responsi bility for all corporate-financial activi ties, investor relations, corporate in formation services, accounting and au diting. Bobert L. Kisiel, formerly vice president, has been named to the new ly created position of executive vice president/operating officer. He will work directly with CEOs of Peoples’ affiliate banks, will be in charge of in vestment portfolios and will coordi nate purchasing, person n el and marketing activities. James W. Kern, formerly senior vice president, Frankenmuth Bank, has been appointed to the new position of vice president/funds management. He will be responsible for the com bined investment portfolios of Peo ples’ affiliate banks and will work with municipalities in management of their short-term funds. Thomas Scampini, formerly controller at Peoples Nation al, has been named vice president/ corporate planning and will work with Peoples Chairman/President Franklin Bittm ueller to coordinate planning activities of affiliate banks with those of the parent corporation. Participating in ribbon-cutting ceremony to celebrate opening of Peoples National's new west side Bay City office were (I. to r.): bank Pres. Clifford C. Van Dyke; Mark Salogar, ch., M id lan d St. Citizens District Council; Thomas Casault, manager of new office, and Anne Hachtel, Bay City mayor. Peoples National, Bay City, cele brated the grand opening of its west side office with a reception for 150 businessmen and civic leaders. Bank Chairman Clifford C. Van Dyke pre sided at the ribbon cutting officially opening the new branch. The ribbon was made up of bills totaling $50, which were donated to the Bay County chapter of the Society for Crippled Children. The new office contains 3,400 square feet of floor space. O ld Kent Financial Corp. To Acquire Pacesetter HC The Fed has approved an applica tion by Old Kent Financial Corp., Grand Rapids, to acquire Grand Rapids-based Pacesetter Financial Corp. and, thereby indirectly, to ac quire all of Pacesetter’s bank sub sidiaries. Fed Governor Nancy Teet ers dissented from the board decision, citing adverse effects on the competi tive banking market. In a statement attached to the Fed s approval order, Governor Teeters says, in part, “the board has . . . deter mined that consummation of the pro New RMA Group Formed posal would not have any significant adverse effect on probable future com The Western Michigan Group, or petition in these markets. Given the subchapter, of Bobert Morris Associ relative and absolute size of the bank ates has been formed. The new group ing organizations involved, I find it dif is the first to operate under the RMA’s ficult to believe that the amount of Michigan Chapter. The group will ex probable future competition elim i pand the presence of the RMA in the nated as a result of this proposal would metropolitan areas of Grand Rapids be as insignificant as application of the and Muskegon, as well as surrounding board’s proposed guidelines seems to communities. Officers are: chairman, imply.’ Stephen A. Stream, senior vice presi dent, Lumberman’s Bank, Muskegon; Jack Steinmetz has been elected presivice chairman, Philip Koning, assis dent/CEO, Manufacturers Bank, Bay tant vice president, First Michigan City. He succeeds Thomas J. Conway, Bank, Z eeland; and secretary - president since 1977, who has joined treasurer, Peter E. Bolline, vice presi Manufacturers National Corp., D e dent, Pacesetter Bank-West, Grand troit. Mr. Steinmetz began his banking career with Manufacturers Bank of Haven. 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C om erica In c ., D e tro it, has an nounced that John A. Simonson has been promoted to senior vice president/treasurer-funds management; Arthur W. Hermann has been named first vice president/controller-controller department; Robert N. Olsen has been appointed first vice president/corporate tax; Matthew J. Plawehan has been named first vice presi dent/funds management, and Dodie C. David has been appointed vice president/consumer personnel. With in Comerica Bank-Detroit, Robert S. Colladay has been promoted to senior vice president/personal trust; Douglas G. Chalou has been named first vice president/distribution; Terrence E. Keating has been elected first vice president/employee benefit; James A. Mitchell has been promoted to first vice president/trust operations; James B. Wendt was named first vice president/international operations; Ronald P. Luker was promoted to assistant vice president/metropolitan corporate banking, and Gerald P. Piontkowski has been named assistant vice president/community banking, Eight MileDresden office. Teddy I. Holden, First American Bank Corp., Kalamazoo, has been rec ognized as a chartered bank auditor by the Bank Administration Institute. Mr. Holden was one of 143 internal bank auditors to qualify for the CBA certification this year. Successful candidates completed four compre hensive examinations to establish ex pertise in the areas of internal audit ing, accounting, business law, eco nomics, management and organiza tion. Frederick M. Adams Jr. has been appointed chairman/president-designate, NBD Troy Bank. Mr. Adams, who became first vice president in 1982, succeeds Aubrey W. Lee, who has been named head of National Bank of Detroit’s City West Regional Bank ing Center. Name Change for HC First American Bank Corp., Kala mazoo-based multi-bank HC, has re ceived shareholder approval to change its corporate name to First of America Bank Corp. It is expected that during the summer all affiliate bank names will be changed to First of America, with local designations for each bank’s market area. MID-CONTINENT BANKER for March, 1 9 8 3 John T. Cannis has been promoted to senior vice president at Manufacturers National, Detroit. Mr. Cannis is officer-in-charge of the bank’s corporate planning group, which includes the economics, marketing and planning departments. James J. Biundo has joined the bank as vice president/trust officer, corporate trust. He comes from Burroughs C orp ., where he served as assistant treasurer. Norman S. Miller has been promoted to vice president/trust officer, and John P. Richardson Jr. has been appointed vice president/investment officer in the trust department. Ronald S. Plaine has been promoted to vice president/ senior investment officer, bank invest ments department. Daniel J. Clarke and Edward F. Katterson have been named vice presidents, and Robert A. Sajdak, Adrian V. Wallace, Kenneth Scheffler, Mary M. Mote and Bradley A. Terryn have been promoted to second vice presidents/officers. At M an u factu rers Bank, Salin e, James E. Aldrich has been promoted to vice president. He currently is as signed to branch operations. At Dearborn Bank, Thomas G. Codet ta has been promoted to assistant vice president/manager, bankcard depart m ent; G erald Gajew ski has been named assistant vice president/man ager, data processing cen ter, and Kevin J. G riffindorf has been ap pointed assistant cashier/commercial lending. Marky J. Kalpthor has been appointed branch officer/manager of the Old Kent Bank of Kentwood/Eastern-52nd Office. Christine Hartman has been named corporate services officer. MINNESOTA Kenneth R. Murray has been elected to the new position of executive vice president/manager-commercial bank ing, Northwest Bancorp, Minneapolis. He will be responsible for develop ment of expanded programs to im prove market share and profitability from commercial business in current and future geographic target areas. He goes to Banco from BancOhio, Co lumbus, where he had been executive vice president/asset liability manage ment. Walter R. Miller Jr. has been named executive vice president/consumer banking, Northwest Bancorp. Mr. Miller joined the corporation in 1981 as senior vice president of the same area. Daniel Vandermark has been appointed vice president/tax, a newly created position that includes long- and short-range planning, com pliance and research. Mr. Vandermark was director/federal tax, Dart & Kraft, In c., Chicago-based consumer and food products manufacturer. Richard S. Levitt, Des Moines, la., has been named a director of the corporation. He had been chairman/CEO, Dial Corp., acquired by Banco last year, and continues as chairman. Northwestern Announces Relocation Plans MINNEAPOLIS — Northwestern National will relocate its administra tive offices and several other units, in cluding the downtown branch’s cus tomer banking services, early this spring. The bank will become the ma jor tenant of the Baker Block — Baker Building, Roanoke Building, 733 Mar quette Building (formerly Multifoods Building) and Peavey Building. Cus tomers will be able to use the new facility in early April. Other depart ments, including domestic banking, trust and investment and executive offices, will move into the new location by midsummer. The move was necessitated by the Thanksgiving Day fire that severely damaged the entire Northwestern Bank building. Plans to move the E llio tt Park Branch to a new facility also have been announced. It will provide new com bined drive-up service for all of Northwestern’s downtown branches. The new facility is expected to open in the fourth quarter of this year. Robert D. Stewart Sr., assistant vice president/ manager, Elliott Park Branch, will continue as manager. Richard Williams has been named ex ecutive vice president, First National, Duluth. Mr. Williams, who has been associated with the bank for 25 years, will continue in his position as regional vice president/human resources for Northwest Bancorp. Elisabeth Reznicek, auditor since 1981 at American State, Bloomington, has been named to the additional posi tion of operations officer. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Plans Facility In Hong Kong This Summer Northwestern National, Minneapo lis, has announced plans to open a com m ercial-banking subsidiary in Hong Kong, subject to final approval by the Fed and Hong Kong’s banking commissioner. Northwestern will be the first regional bank in the Upper Midwest to have an operating pres ence in Asia. The facility, which is expected to open in early July, will engage in com mercial and wholesale banking activi ties for all of Asia. Services will include loans, letters of credit, collections, wire transfers, foreign exchange and loan syndications. It will be restricted by law from retail and consumerbanking functions. The subsidiary is designed to serve customers who import or export in Asia, including local companies with Asian subsidiaries. The Hong Kong facility “will diver sify our geographic exposure and establish our presence in the third most important international financial center,” says James W. Johnson, head of Northwestern’s international bank ing group. Gary B. Hawk, currently vice presi dent of the Asia/Middle East/African division, has been named manager of the planned subsidiary. Michael J. Sadak, assistant vice president in charge of the Asian geographic region, will serve as associate director. At N orthw estern N ational, M in neapolis, Charles D. White has been elected vice president/treasury de partment administration. Mr. White joined Northwestern in November as chief financial futures trader. He had been with Staley Commodities, Chica go. Harold J. Stark has been named vice president/trust capital manage ment. He joined Northwestern in 1980. Named assistant vice presidents were Patricia Constans, Gerald B. Hamlin, Daniel D. Magnuson, Pamela R. Mohr, Colleen P. Mooney, Randon S. Pintens, Robert C. K la sjr., KentH . Bergem ann, R obert J. Brow nlee, Richard I. Carlson, Timothy R. Skildum, Gary D. Gilbert, Donald D. Ogren, Barbara M. Kiedrowski, Bryn Bjella Parchman, John McShane and Thomas L. Flack. Roger P. Foussard and William S. Marvin have been elected to the board of American National, St. Paul. Mr. Foussard is p resid en t, H ospital Linens, Inc., St. Paul; Mr. Marvin is chairman/CEO, Marvin Windows, 27 Warroad. Also at American National, J. Patrick Klett has been promoted to vice president/trust officer, and Robert E. Jenkins has been named assistant vice president/trust officer. At National C ity, M inneapolis, Kathryn L. House has been promoted to assistant vice president/Edina of fice; Connie G. Weinman has been named assistant vice president/trust; GeorgieAnn B. Bright has been ap pointed in v estm en t officer, and Cynthia J. Strand has been promoted to executive line officer/commercial banking. Honorary Vice Consul MINNEAPOLIS — W. James Arm strong, president/CEO, Northwestern National, has been appointed honor ary vice consul of Luxembourg for Minnesota and Wisconsin. He will serve Luxembourg citizens living in the two-state area as well as U. S. citizens planning to travel to Luxem bourg or making business contacts there. Mr. Armstrong joined North western in 1981 as president/chief operating officer and assumed his pres ent position in October, 1982. Timothy D. Marrinan, assistant vice president/legal counsel, First Bank System, Inc., Minneapolis, has been named to the Fed’s consumer advisory council. Mr. Marrinan is a faculty adviser for the ABA Graduate Com pliance School and former dean of its National Compliance School. He is a frequent lecturer at the University of Colorado’s Graduate School of Bank ing and at the H erbert Prochnow Graduate School of Banking at the University of Wisconsin/Madison. The Minneapolis Fed has approved applications of Starbuck Bancshares, Inc., Starbuck, to become a bank HC through acquisition of First National, Starbuck, and to acquire Olson Insur ance Agency, Starbuck; of Mahnomen Bancshares, Inc., to become a bank HC through acqu isition of F irst National, Mahnomen; of Duke Finan cial Group, Inc., New Prague, to be come a bank HC through acquisition of State Bank of New Prague; of Le Cen ter Financial Services, Inc., to become a bank HC through acquisition of First State, Le Center, and to continue to engage in operating a general insur ance agency; of Keewatin Bancorp, Inc., to acquire First National Insur ance Agency, K eew atin; of South Dakota Bancorp., Inc., Minneapolis, to become a bank HC through acquisi 28 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion of Big Stone Bank, Big Stone City, S. D., Farmers & Merchants, Huron, S. D., and South Dakota State, Milbank, and of Dakota Co., Minneapolis, to acquire South Dakota Bancorp., Inc. OHIO New Appointments Made At Huntington Affiliate Huntington Bank of Northeast Ohio (formerly Union Commerce), Cleve land, has realigned m anagem ent duties among senior executives who had major positions with Union Com merce. Robert W. Van Auken, former pres ident of Union Commerce and presi dent, Huntington of Northeast Ohio, now has added responsibility for six other Huntington city offices. Daniel J. Dougherty, executive vice presi dent, has assumed responsibility for six other branches owned by the parent company. Mr. Dougherty, formerly head of marketing for Union Commerce, heads marketing activities for all the northeast Ohio Huntington banks, including the 43 former Union Commerce offices in Cuyahoga and Lake counties. John E. Orin, who headed the energy and trust divisions at Union Commerce, has been named executive vice president/commercial banking. Executive vice president Brian S. Dickens, former Union Com m erce ch ief financial officer, now heads operations, finance, properties, human resources and legal divisions. Douglas P. Fox, former senior vice president at Union Commerce, has been named senior vice president/ trust. Larry D. Randall, who served as senior vice president/human resources at Union C om m erce, has been appointed senior vice president/hu man resources, Huntington Bank, Columbus. Kevin J. Rieke has been promoted to vice president/finance, and M ichael J. K uchar has been named assistant vice president/trust m arketing-business developm ent, Huntington Bank of Northeast Ohio. Gary E. Sternad has been promoted to assistant vice president/commercial loans, Central Trust of Northeastern Ohio, Cleveland. Mr. Sternad joined Central Trust in March as a loan offic er. John W. Kizer has been named vice president/trust tax, and John S. Szuch was appointed vice president/com mercial loans, Toledo Trust. Prior to joining Toledo Trust in December, Mr. Kizer served as assistant control ler for Champion Spark Plug Co. Mr. Szuch joined Toledo Trust in 1973 as a commercial loan representative. In 1977 he was named vice president/unit manager, a position he held until he left the bank in July, 1982. He rejoined the bank in December and was elected vice president at the time. At AmeriTrust, Cleveland, Janet M. Brooks was named vice president/unit manager-personal trust; William M. Hegarty was appointed vice president/ personal trust; James H. Mclnerney was elected vice president/employee benefits-new business; Dale P. Sparber was named vice president/national division; Richard J. Martinko was promoted to vice president/corporate banking, and Richard D. Yoaken was appointed vice president/financial in stitutions. Promoted to assistant vice presidents were Susan Bradley, John G. Martin and William F. Ujcic. Richard H. Bartholomew has been elected senior vice president/deputy group head-trust at BancOhio, Co lumbus. He joined the bank in 1956 and has been serving as statewide trust business development division man ager. James Ray Dennis, Morris L. Jackson, Johnny L. Johnson, Gary W. Kay and Steven A. Smith have been named vice presidents. New assistant vice presidents are Dale J. Abrams, Bradley J. Beahan, Elmer W. Bomlitz, Harold H. Elliott, Ronald W. Leslie, John P. Lyle, Kathleen A. Rigg and Paul L. Spring. Bankers Collect Food AmeriTrust employees topped all other businesses in Cleveland during the city's sixth annual food collection for the hunger task force. Nearly $14,000 was collected during a month-long drive to match the bank's $5,000 contribution. Sharing a look at the 270 cases of food presented to the task force are: (I. to r.) Janice Smith, Am eri Trust v.p.; Dan Elliott, hunger task force ch.; Myra Starr, branch mgr.; Marie Sedlecky, v.p.; M. Brock Weir, AmeriTrust ch., and the Reverend Donald Jacobs, executive direc tor, Interchurch Council. MID-CONTINENT BANKER for March, 1 9 8 3 Home-Loan Program Offered N ational C ity, C lev elan d , has launched an aggressive ad campaign for its hom e-equ ity-loan program (HELP) through direct mail of letters and brochures to 10,000 home owners in the greater Columbus area. Cus tomers can borrow up to 85% of their home’s market value, less the balance of their first mortgage. Loans are based on a v ariab le-rate program , with National City reviewing the borrow er’s interest every two years. If the program proves successful in the Co lumbus area, the bank plans to offer it across the state. Banc One, Columbus Makes Staff Changes COLU M BU S — John B. McCoy has been named president/chief oper ating officer, Banc One Corp. He suc ceeds Roman J. G erber, who was appointed executive vice president. Mr. McCoy, son of Banc One Corp. CEO John G. McCoy, had been presi dent since 1977 of Bank One of Co lumbus, the HC’s largest affiliate. Mr. Gerber’s new position is not being regarded as a demotion, accord ing to Banc One spokesman Michael Van Buskirk. “We just ran out of ti tles,’’ he said. Mr. Gerber, who also has been named board secretary, will oversee acquisitions and regulatory matters for the corportation. Robert F. Howarth has joined Hunt ington Bank, Columbus, as senior vice president/corporate relations. He is responsible for government relations, public relations and internal com munications. Before joining Huntington, he had been executive assistant to Governor James A. Rhodes since 1979. Richard H. Lehmann, vice president/ m anager-sp ecial assets, has been elected senior vice president; Stephen L. Leister, vice president/managernational accounts, has been promoted to senior vice president; Gregory C. Sheridan, executive officer for Co lumbus branch administration, was elected senior vice president; and Vice President William T. Williams, credit administration manager, has been promoted to senior vice president. D avid R. Owen and V oytek B. Zmijewski have been appointed vice presidents. Linda R. Kay, Donald R. Shively and William J. Thomas have been promoted to assistant vice presi dents. Lewis R. Smoot, president/ C EO , Sherman R. Smoot Co., Co lumbus-based construction firm, has been elected to the board. Gordon E . Heffern has been elected chairman/CEO and Robert W. Gilles pie has been named president/chief operation officer, Society National, Cleveland. J. Maurice Struchen has moved from chairman to vice chairman in anticipation of his relinquishing the chief executive role in April. At that time, Mr. Heffren will assume the title of chairman/CEO of the corporation as well as the bank, and Mr. Gillespie will becom e president/chief operating officer of both the parent company and the bank. Wilson M. Brown J r ., president/ CEO, Centran Corp., Cleveland, and of its principal affiliate, C en tral National, has been elected chairman of both Centran and Central National to fill positions vacant for the past year. Cleveland Ad Club Award Given to AmeriTrust A m eriT ru st’s “ Strong B an k ers’’ print advertising campaign has won the Cleveland Ad Club’s highest hon ors in the 1983 Best of Cleveland advertising competition. AmeriTrust won “Best of Show’’ (print) and “Best Print Campaign — Trade” for the ads, which promote the bank’s No. 1 posi tion among the nation’s 50 largest banks because of its strong capital structure and professional manage ment. By winning “Best of Show,” Ameri Trust bested over 425 print entries in the ad club’s largest competition in his tory. In addition, the bank scored a first place in the “Best Radio Commer cial’ category for its 60-second spot introducing its new generation of Asset ATMs. This is one of a series of "Strong Bank ers" ads that won "Best of Show" hon ors for AmeriTrust in Cleveland Ad Club's Best of Cleveland Advertising Competition. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Affiliation Discussions End Toledo Trustcorp, Inc. has discon tinued discussions concerning a possi ble affiliation with Banc One Corp., Columbus. Toledo Trustcorp President/CEO George W. Haigh said the parties were unable to reach an agree ment in principle on all terms of the possible affiliation. Toledo Trustcorp and Banc One Corp. announced in January that they were engaged in dis cussions concerning such an affiliation. Bruce Hecker, vice president, FirstKnox National, Mount Vernon, has been named senior loan officer. W ISCONSIN Minnesota Bank HC Seeks Expansion in Wisconsin Minnesota-based Northwest Bank Corp (Banco) is seeking passage of a bill to enable it to expand its operations in Wisconsin. The bill, to be intro duced in the Wisconsin legislature, would permit out-of-state HCs that already operate in the state to expand their holdings. Banco currently holds First Nation al, LaCrosse. Wisconsin-based HCs do not have reciprocal rights to expand into other states. Acquisition Planned F&M Financial Services Corp., par ent company of F&M Bank, Menom onee Falls, has entered into a letter of intent with Leasenu, In c., for acquisi tion of Leasenu. The transaction is subject to the necessary approvals. Leasenu is engaged in full-time leasing with emphasis on equipment in the medical field. F&M Bank, with offices in Lannon, Lake-Five and Sussex, has made application to establish offices in Waukesha and Oconomowoc. Thomas J. A lberti, N icholas R. Cochron, William H. Hanton and Katherine M. Klobuchar have been named vice presidents, Marine Corp., Milwaukee. Promoted to assistant vice presidents were Janet S. Brunlieb, David A. Grabski, Michael J. Linley, Noe F. Parenteau, J. Dean Potokar, Patricia A. Richter, Mark H. Rutter, Sharon L. Schmiedel and John A. Taflan II. Thomas P. Brogan Jr. has joined the corporation as marketing officer/ product development section. Mr. Brogan goes to the Marine from Elec- 29 tronic Data Systems Corp. At Marine Trust, Richard H. Bauzenberger has been appointed vice president and will continue as head of the corporate ser vices division; Michael J. Normand, Brenda K. Tipton, David B. Urben and Richard J. W alters have been named assistant vice presidents. William G. Ellis, president, Wayland Academy, Beaver Dam, has been elected a director of Marine Bank, Beaver Dam. Since 1969, Mr. Ellis has served as a consultant for the U. S. Small Business Administration and is a form er director of M aine Savings Bank. James H. Keyes, vice president/chief financial officer, Johnson Controls, Milwaukee, has been named a director of First Wisconsin Trust. 'W ally, the W alru s/ Opens Bank Drive-Up “Wally, the Walrus,” official repre sentative of Marine Banks, was the first customer at the new drive-up fa cilities of Marine of Waukesha’s Eastbrook Office when they were opened in January. Dollar bills covering a 10foot-long ribbon used to officially open the drive-up were deposited by Wally into a special fund for the Food Pantry, a local charitable group. The Eastbrook Office serves as a location for Waukesha-area residents to donate funds or food to the pantry. The opening ceremony included gifts of key rings to the first 100 cus tomers, refreshments in the lobby and an opportunity to visit and have pic tures taken with Wally. The d ollar-b ill rib b on , which spanned one of the drive-up lanes, was cut by Thomas Loew, bank president; Ken Cooley, administrator of the Food Pantry, and other Marine officials. Thomas Loew (I.), pres., M arine N a t'l, Waukesha, gives funds from ribbon cutting at opening of Eastbrook Office's new driveup facilities to Ken Cooley, administrator, Waukesha Food Pantry. Looking on are Marine's W ally the Walrus and Eastbrook Office Mgr. W illiam Gartm an. 30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Martin F. Pella Dies MILWAUKEE — Martin F. Pel la, 67, died January 22 in Caracas, Venezuela. He was special assistant to the president/international bank ing consultant, Marine Bank, and its parent HC, Marine Corp. Dr. Pella joined the Marine orga nization in 1977 after having been vice president/international banking department, Harris Trust, Chicago, which he joined in 1961. Dr. Pella was instrumental in de veloping Marine’s worldwide net work of correspondent banks and in ternational-lending services. Dr. Pella, born of Spanish ances try and educated in schools in Eng land, France and Spain, held a law degree, managed his grandfather’s cork, olive and wine interests in Spain, founded his own law firm in Cuba in 1949 and — after actively opposing the Batista dictatorship there — was named ambassador-atlarge to Russia by Fidel Castro. However, when he realized the Cas tro regime was moving toward Com munism, he left Cuba for the U. S., bearing the recommendation of the Kennedy Administration. Before going to Harris Trust, Dr. Pella was with the law firm of former U. S, Secretary of State Dean Acheson. Donald H. Gauger has been promoted to senior vice president, Citizens North Shore, Shorewood. Mr. Gauger had been vice president since 1979 and is responsible for all bank-lending op erations and com m ercial-area ac counts. At Lincoln State, Milwaukee, Steven J. Rutt has been promoted to vice president/cashier. Named assistant vice presidents were Marcella Karshen, Cynthia Knitter, Mary Jo Krawczyk and Sharon Tomczak. Robert W. Schoenke, president, State Bank, Slinger, has been named chair man. Jacob H. Hansen, president, Hansen Foods, In c., was named a director. Retiring from the board were Harry M. Schuck, chairman emeritus, and Richard W. Rosche, Norman A. Kletti and KermitW . Miller, directors emeritus. Christine Moberly, who has been with the bank since its merger with Bank of Jackson in 1982, was promoted to vice president. Nancy Bingen has been appointed assistant vice president, and Annette Mueller and Dianna J. Retzlaff have been named assistant cashiers. P. Michael Mahoney has been elected president/director, Park State, Mil waukee. He goes t6 Park State from First Bank, Milwaukee. John Kelly, who has been acting president/chairman, continues as chairman. Roseanna Dippmann has been elected operations officer,W est Allis State. She will manage the bookkeeping and proof departments of West Allis State and Southwest Bank, New Berlin. Herbert C. Martin has been named business development officer, M&I Bank, Madison. Mr. Martin joined the bank in 1982 as a business develop ment representative after a 44-year career with the J. C. Penney Co. Dale F. Guenther has been appointed vice president/commercial banking at Brown D eer Bank. Mr. Guenther joined the bank in 1981 and was named a commercial banking officer the same year. Marine Trust, Milwaukee, has estab lished a trust service office at First State, New London. Although First State is not part of Marine Corp., the office is on its premises, the second such office in the state for Marine Trust. Joseph E. McGrane, vice presi dent, and Richard L. Jones, trust offic er, are responsible for the operation of the office, which offers a full range of personal and corporate trust services. First National, West Bend, has been acquired by Marshall & Ilsley Corp., Milwaukee, becoming the 27th bank affiliated with M&I. Management and staff of the West Bend bank will remain unchanged. New Banking Commissioner MADISON — William P. Dixon has been appointed Wisconsin bank ing com m issioner, succeeding Thomas E. Pederson, who died in January while attending a bank con ference in Scottsdale, Ariz. Mr. Dixon was on the team that drafted the Wisconsin Consumer Act and was staff counsel to Gov ernor Patrick Lucey for two years. He then became counsel to the judiciary committee in the U. S. H ouse of Representatives, then general counsel to the House Bank ing Committee. Appointed by Presi dent Jimmy Carter to the World Bank, Mr. Dixon served two years as U. S. alternate executive director. Most recently, Mr. Dixon was with a Washington, D. C. law firm. MID-CONTINENT BANKER for March, 1 9 8 3 /hat do you have to do to get your correspondent's » attention? V' // 7 jkam Let's face it. The giant downtown bank you correspond with is a different place than it was ten or twenty years ago. You were important then, but they have other interests now. As a correspondent, you rarely get to deal with the top echelon —the people who could provide fast action and quick approvals for loan participations and the other services you need. It's time you started working with a bank you can bank on. At Drovers Bank of Chicago, you have direct daily access to top level banking professionals and a staff whose careers are centered on correspondent banking. We're one of the ten largest correspondents in Illinois. You and your bank’s financial needs are very impor tant to us. It explains why we're so responsive and why our correspondent relationships have almost quadrupled in three years. Call John C rotty toll-free at 800-621-8991 (in Illinois, 8 0 0 -5 7 2 -2 4 9 8 ). He’ll fill you in on all the ways we can help —a full range of services that includes overline participations, purchase and sale of Federal Funds, bond portfolio analysis, and any other service you want or need. The Responsive Correspondent r Drovers Bank of Chicago 47th & Ashland Avenue, Chicago, Illinois 60609, 312-927-7000 Member, Cole-Taylor Financial Group—Independent Banks Working Together MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Reserve System and FD.I.C. 31 Banking, Economie Issues Spotlighted At Wisconsin Bank Executives Seminar more disclosure, a situation many O R E THAN 350 bankers attended the Wisconsin Bank bankers believe to be unfair. Howev ers Association’s (WBA) banking er, ex when bankers were asked how ecutives sem inar in Madison last many had complained to the FD IC , month, following a tightly structured only a handful responded. “Write to and varied program dealing with cur your regulators about this,” Mr. Low rent issues affecting Wisconsin and its rie advised. John E. Knight, WBA legal counsel, depository institutions. Daniel G. Priske, president, Cit presented a legal update on a variety of izens National, Marshfield, and chair issues including Tru th-in-Lending man, WBA bank management com (not much change), equal credit oppor tunity (possibility of increased con mittee, presided. Gerald M. Lowrie, ABA executive sumer litigation), public disclosure (an director for government relations, dis F D IC study will be presented in cussed national public-policy issues for April), new banking products such as the coming year. “The Congress will discount brokerage (with a caution not have a lot less going on about which to overlook state law), retail repos bankers disagree than was the case in (phasing out), new kinds of accounts, truncation, withholding at source, new the last Congress,” he said. M Daniel G. Priske (I.), conf. ch., and Bryan K. Koontz, W BA exec, dir., took part in program at asso ciation's bank ex ecutives seminar in Madison last month. He spoke at length about withholding-at-source and bankruptcy reform. By a show of hands, CEOs made it clear that both issues are of prime im portance. The push for repeal of with holding, headed by Wisconsin Sen. Robert W. Kasten, has wide support and nearly all Wisconsin bankers have been informing customers about the issue and sending letters to Congress urging repeal. However, the outcome of the repeal movement is in doubt and bankers are preparing for compliance. On the topic of bankruptcy reform, Mr. Lowrie urged bankers to keep up the pressure on Congress. “Use anec dotal exam ples,” he suggested, to point up inequities. Addressing the topic of insurancerelated d isclosu res, Mr. Low rie pointed out that the trend is toward 32 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis payment code, variable rates and bankruptcy. “Adapting WBA to the ’80s” was dis cussed by Executive Director Bryan K. Koontz; WBA President Rowland J. McClellan, president, Bank of Wis consin, Janesville; and W BA Vice President William J. Morrissey, presi dent, Independence Bank, Elkhorn. Most of what will happen in Wiscon sin in the next few years will have to do with the state’s economic problems, Mr. Koontz noted. He explained what the WBA staff is doing to adapt to changing conditions that include a new governor and a legislature with 40% new faces. Mr. Koontz spoke briefly about the so-called Banco proposal that would permit-out-of-state HCs that have one bank in the state (such as Minnesota- based Northwest Bancorp.) to buy more banks. Since no Wisconsin HC has banks in other states, there is no possibility of reciprocity. The WBA has rejected the proposal that Banco is lobbying to have introduced as a bill. Mr. Koontz also told bank execu tives about discussions with the legis lature on the question of broadening state bank authority. A possible start ing point might be to seek to have bank service corporations authorized to do anything a nonbank corporation can do in the state. A bill to that effect is being planned. A proposal by state Sen. Timothy F. C ullen to extend the residentialmortgage redemption to three years was discussed. Although this is an un popular idea among bankers, Mr. Koontz reminded seminar participants that there are two sides to the ques tion. High unemployment has caused a number of homeowners to default on mortgage payments and foreclosures are up. Mr. McClellan asked attend ees to check on the current increase on foreclosures in their banks and to send the information to the WBA and the state legislature. There was general agreement that the number of foreclo sures in the state has been overesti mated and that most bankers are will ing to be patient with borrowers who are trying to pay. In a plea for support for the WBA p olitical action co m m ittee, Mr. Koontz emphasized that the PAC has been hampered by a lack of funds. He asked bankers to solicit private con tributions. “Shoot for $50,000 a year,” he suggested. Mr. McClellan explained the status of MABSCO — the group of state bankers associations formed to elimi nate redundancies. He presented an update on the subsidiaries of MABS CO Bankers Services: • The money-market fund (begun prior to December 14) still is operating although the new money-market sav ings instruments have caused a decline in deposits. At present there are no plans to disband the fund. • Discount brokerage is not ex pected to be a revenue producer, although there are some good pro grams. • MASI — MABSCO Agricultural Services, Inc. — is a new service for ag MID-CONTINENT BANKER for March, 1 9 8 3 Help Stamp Out Director Liability Risk With These Board-Related Manuals CORPORATE ETHICS . . . What Every Director Should Know. $23.00 Society is demanding more disclosure from all businesses, including banking. Thus, bankers literally are forced to re-exam ine policies on types of information that can be disclosed publicly. The board's disclosure policy can be a major factor in the public's judgment of a bank. The fact that a bank is willing to discuss . . . or make public . . . any of its actions will encourage high stan dards of conduct by the bank staff. This manual (over 200 pages) will help directors probe "grey” areas of business conduct so that directors can establish written codes for their own bank. Q U A N T IT Y PRICES 2 - 5 copies — $21.00 ea. 6 - 10 copies — $19.50 ea. BOARD POLICY ON RISK M A N A G E M ENT. $17.50 This 160-page manual provides the vital information a board needs to formulate a system to recog nize insurable and uninsurable risks and evaluate and provide for them. In cluded are an insurance guideline and checklists to identify and protect direc tors against various risks. Bonus fea ture: A model board policy of risk management adaptable to the unique situations at any bank. Every member of your bank's board should have a copy! Q U A N T IT Y PRICES 2 - 5 copies — $15.50 ea. 6 - 10 copies — $14.50 ea. THE EFFE C TIVE BOARD A U D IT . $19.00 Th is 184-page manual provides comprehensive information about the directors' audit function. It outlines board participation, selection of an audit committee and the magnitude of the audit. It provides guidelines for an audit committee, deals with social re sponsibility and gives insights on en gaging an outside auditor. It includes checklists for social responsibilities audits, audit engagement letters and bank audits. No director can afford to be without a copy! Q U A N T IT Y PRICES 2 - 5 copies — $17.00 ea. 6 - 10 copies — $16.00 ea. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $23 The Effective Board Audit What Every Director Should Know About Conflicts of Interest ForDtrrctonandOficer*ofFmcmciaiInshtutmu CORPORATE ETHICS BOARD B RISK MANAGEMENT $19 $12 U BANK BOARD o c $17.50 B □E LOAN POLICY . B THE BANK BOARD A ND LOAN POLICY. $12.00 (Fourth Edition) Recently off the press! This revised and expanded manual enables directors to be a step ahead of bank regulators by providing current loan and credit poli cies of numerous well-managed banks. These policies, adaptable to any bank situation, can aid your bank in estab lishing broad guidelines for lending officers. Bonus feature: Loan policy of one of the nation's major banks, loaded with ideas for your bank! Remember: A written loan policy can protect direc tors from lawsuits arising from failure to establish sound lending policies! Order enough copies for all your direc tors! $12 CONFLICTS OF IN TER EST. $12.00 (Third Edition) Conflicts of Interests presents everything directors and offi cers should know about the problem of "conflicts." It gives examiners'views of directors' business relationships with the bank, examines ethical pitfalls in volving conflicts and details positive actions for reducing the potential for conflicts. Also included is the Comp troller's ruling on statements of busi ness interests and sample conflict-ofinterest policies in use by other banks which can be adapted by your board. Q U A N T IT Y PRICES Q U A N T IT Y PRICES 2 - 5 copies — $10.00 ea. 6 - 1 0 copies — $9.50 ea. 2 - 5 copies - $10.00 ea. 6 - 1 0 copies — $9.50 ea. THE BANK BOARD LETTER 408 Olive St., St. Louis, MO 63102 .........copies, .........copies, .........copies, .........copies, .........copies, Name Bank. Street ............. City, State, Zip Board Policy on Risk Management The Effective Board Audit Bank Board & Loan Policy Conflict of Interest Corporate Ethics Total Enclosed $ $ $ $ . . . . . . . . . $ . . .Title (Please send check with order. In Missouri, add 4.6% tax. Four-Volum e MARKETING LIBRARY Regular Price $ 5 0 .0 0 NOW ONLY * 3 4 95 How to Plan, Organize and Conduct an Incentive Campaign . . . Mid-Continent Banker's newest how-to-do-it manual; a complete guide to procedure in evolving an effective in centive campaign to sell bank services and/or increase bank deposits; 96 pages, 16 illustrations; starts by telling you premium terms and the history of incentives, roams through such topics as trade area studies, tying in with cur rent events, getting new business from old customers, moti vating staff members and concluding with a series of six case histories of actual bank promotions that obtained ex ceptional results. Regular Price: $13.00 Profit-Building Ideas for Bank Christmas Promotions. This is NOT a Christmas Club book, although ONE chapter is devoted to Christmas savings promotion plans. Other chap ters: selling various bank services during the Holidays: using lobby decorations most effectively; helping children at Christmas; remembering employees in Christmas planning; using the "good will season" to build bank good will; get ting the most benefits from Holiday publicity; planning for the Holidays from mid-summer to New Year's. In 80 pages are packed tested Holiday ideas used by banks, big and small, from coast to coast. Regular Price: $9.00 How to Plan, Organize & Conduct Bank Anniversaries. . . The complete guide to procedure when holding a formal opening, an open house, any kind of bank celebration; 166 pages, many illustrations; 12 chapters starting with "First Things First," ranging through "Add a Little Pizazz and Oom-pah," concluding with " Expect the Unexpected ; eight appendices containing actual plans, budgets, programs used by banks in actual celebrations; a completely factual, step-by-step how-to-do-it book now in its second printing. Regular Price: $20.00 How to Write Bank Publicity and Get It Published. . . The complete guide to procedure in writing publicity releases and how to prepare them so that newspaper and magazine editors will use them; 61 pages; 12 chapters with titles such as " Constructing the News Story," "Placing the News Story," "Handling 'Sticky' Situations," "Dealing with News Media"; another completely factual, step-by-step how-todo-it manual. Regular Price: $8.00 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M O N E Y B A C K G U A R A N T E E — If n o t c o m p le te ly satisfied, re tu rn w ith in 10 days fo r fu ll re fu n d . FOR YOUR DIRECTORS - TO HELP THEM HELP YOU No. 101 DIRECTORS...Selection Qualifications, Evaluation and Retirement. Should the board “ intrude” upon management prerogatives of the CEO in the administration of the investment portfolio? Not at all, says the author. However, a written policy, carefully structured around the bank’s deposit and loan “ mix,” can be comforting during rising or falling interest rates. As an aid to management and the board, the a u th o r p re se n ts numerous investment and portfolio management policy statements presently in use by recognized weilrun banks. Also presented: a bibliography of recommended reading on the sub ject, plus excerpts from the Comp troller’s manual on regulations and rulings in regard to bank invest ments. These interpretations (also valuable to state banks), while available elsewhere, are placed together in this volume for handy reference by the director. This 42-page manual answers key questions concerning director selection, retention and retirement. Special section: the prospective director and how he should be ex pected to contribute to the bank’s success. Includes a rating chart. Manual also contains a section posing questions that a prospective director should ask himself before he accepts a bank board post. Another section deals with the sensitive nature of director retire ment. Age can be a guide but not an overriding factor in this decision. A manual that will help the board maintain its vitality. Price — $6.50 2-5 copies $6.00 ea. 6-10 copies $5.50 ea. No. 210 MAXIMIZING CORRESPONDENT BANK RELATIONSHIPS PRICE — $23.00 2 -5 copies$21.0 0 ea. 6 -1 0 copies$ 2 0 .0 0 ea. Directors aren’t “ born” cor respondent experts, but you can help them catch up in a hurry, and it’s profitable for you to do so. This 100-page manual covers all facets of correspondent banking. Clear ings and float analysis ... loan participations ... lines of credit ... foreign exchange, etc. This manual also helps directors APPRAISE cor respondent services — to make certain you receive maximum ser vice at a competitive price. The manual also discusses several fe d e ra l re g u la tio n s , including the constraints imposed on “ insider” bank lending by FIRA. A MUST for every bank director. No. 230 — CONTRACTS WITH BANK EXECUTIVES In many banks, salaries, bonuses and fringe benefits of top manage ment are covered by contracts. Since many contracts extend for periods of five years they call for careful construction. This 48-page manual discusses the role of the board’s Compensa tion Committee in determining the nature of such contracts. The author suggests that “ performance” can and should be the key in rewarding the executive. Charts and work sheets are included to help the com mittee arrive at “ fair and equitable” perquisites as motivating factors for the bank executive. An aid to writing a NEW contract or in REVIEWING e x is tin g contracts. PRICE — $12.00 2-5 copies $ 1 1 .0 0 ea. 6-10 copies $ 1 0.00 ea. No. 220 - AN INVESTMENT GUIDE For the Bank Director In this 192-page manual, the author discusses the merits of directors paying closer attention to the investment policies of their bank. It is normal, says the author, for the board to closely scrutinize loan transactions since these occur more frequently and represent the bank’s primary earning power. Yet, poorlythought-out-and-executed invest ment policies can place a bank's capital in jeopardy, particularly when a bank is forced to liquidate investments during a period of rising interest rates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICE — $8.00 2-5 copies $7 .00 ea. 6-10 copies $6 .50 ea. 1------------------------------------------------------------- I Please Send These Management Aids Send Completed Coupon WITH CHECK to: Commerce Publishing Co., 152 W. Wisconsin Ave. #6 3 0 , Milwaukee, W l 53203, publisher of the BANK BOARD Letter. | 1 0 1 . . . copies | 2 1 0 . . . copies $. . . $. . . 2 2 0 . . . copies $. . . 2 3 0 . . . copies $ . . . Total (In Missouri add 4 .6 % Tax) $ . . . ^ TOTAL Enclose check p a y a b le to The BA N K BOARD Letter Name ........................................................... Bank or Company ...................................... Address City ............ S t a t e .................Zip Four Fact-Filled Manuals for The Bank Director Every Director Should Have a Copy of Each One BOARD REPORTS . . . for The Bank Director $23.00 More effective board meetings begin with effective reports. This 200-page manual will help you determine the "quantity and quality" of monthly reports needed by directors so they (and management) can make proper decisions. Included are ex amples of reports most needed by directors who want to create policies that lead to prudent management. Contains information on many topics such as effective re porting. . . reports to shareholders. . . report of examination. . . bank liquidity and capital analysis. Manual illustrates various formats board reports can take. . . from oral to detailed graphic presentation. Author: Dr. Lewis E. Davids. PLANNING THE BOARD MEETING $7.00 This 64-page booklet provides some workable agenda, suggestions for advance plan ning and also lists types of reports a board should receive monthly and periodically. It emphasizes the need for informing the board as q u ic k ly and concisely as possible. Contains a chapter outlining a "workable" board meeting, another on visual aids for the board meeting. Also contains a model for minutes of the board, plus sample forms to communicate status of bank to the board. An excellent 'companion to BOARD REPORTS. Author: Dr. Lewis E. Davids. EFFECTIVE SHAREHOLDER MEETINGS $13.00 Before your next shareholder meeting, get ready for gadflies, activists and others who may be planning to disrupt your program. Here's howto anticipate1damaging incidents, prepare tested countermeasures, turn potential disasters into a plus for your bank. Details include handling of unusual actions (such as replacing a CEO) political contributions, laws and regulations directors may unwittingly break, stock purchases, sales and disclosures, proxy provisions, etc. A checklist of meeting de tails. Promoting attendance. Stockholder proposals. Materials to mail. Agenda and procedural rules.This book is a tested"how-to"of Annual Meetings from inception to final reports, including personnel responsible for each step. 96 pages of "must" reading for chairmen, directors and officers involved. RESPONSIBILITIES OF BANK DIRECTORS $7.50 This book is "right" for today's banking problems. Due to the economic influence banks have on their communities, the rapid growth of HCs and the ever-growing "consumer" movement, directors must know what is expected of them and their bank in terms of responsibilities to depositors, shareholders and the public. This manual examines recent court decisions, investment return, continuity of manage ment, long-range planning, effects of structural changes on competition, and more. Author: Raymond Van Houtte, president, Tompkins County Trust Co., Ithica, NY. QUANTITY PRICES Board Reports Planning The Board Meeting 2 - 5 ......................... $21.00 ea. 2 - 5 ...............................$6.00 ea. 6-10............................ $20.00 ea. 6-10...............................$5.50 ea. Over 10......................$19.00 ea. Over 10........................ $5.25 ea. The BANK BOARD Letter 152 W. Wisconsin Ave. #630 Milwaukee, Wl 53203 Please send: ____ copies. Board Reports ____ copies, Planning Meeting ____ copies. Effective Shareholder Meetings ____ copies, Responsibilities o f Directors ____ T otal Enclosed Name & T itle ___________ ________________ Effective Shareholder Mtgs. Responsibilities of Directors 2 -5 ......................... $11.00 6-10......................... $10.00 6-10..................................... $6.50 Over 10...............................$9.00 Over 10.............................. $6.25 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 - 5 ..................................... $7.00 B a n k ---------------------------- _____-------------------S tre e t-------------C ity, State, Zip (Please send check w ith order. In Missouri, add 4.6% tax. If a bank a n sw e rs, hang up. As a correspondent of The Boulevard Bank, you don’t deal with a bank, you deal with a person — a professional correspondent banker. Each one is a senior Boulevard officer and each one is capable of making some seventy Boulevard banking services available to you and your customers. This unique Boulevard combination of “ big bank” service and personal attention involves four basic areas - Loan participations, Assets-Liability Management Services, Operational and Clearing Services and Management and Marketing Services. It also involves our day-to-day dedication to applying people and state-of-the-art technology in helping our correspondent customers meet the challenges and benefit from the opportunities of today’s and tomorrow’s economy. If you’d like to find out more about the Boulevard approach to correspondent banking, call (312) 836-6868. And talk to a person, not a bank. Earning your business every day. National Boulevard Bank of Chicago B o u le v a r d B 410 N. M IC H IG AN AVE.. C H IC A G O , IL 60611 ONE ILLINOIS CENTER (111 E. W acker). C HICAG O, IL 60601 MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (312) 836-6500 a n k • MEMBER FDIC 33 loans. • A video-training clearinghouse is filling the “need for a better low-cost means of upgrading the understanding of employees on various products and services.” MABSCO is developing a clearinghouse for rental or purchase of low cost training tapes. • A study is being conducted to look into the possibility of forming an insur ance subsidiary. • A study on secondary marketing of mortgages revealed that the present marketplace is adequate. Touching on oth er topics, Mr. Koontz explained the new WBA pension/insurance program that has been incorporated as Employee Benefits Corp. He also noted that a model for the educational program’s structure has been completed. MASI, MABSCO’s new concept in agricultural lending, was explained by Greg Le Gare, who is a MASI board member and agricultural representa tive at Bank of Osseo. MASI makes it possible for community bankers to dis count short-term ag credit at a reason able rate and yet cover the cost of op erations and make a profit, he told par ticipants. Through an agreement with Rabobank, Nederlands, MASI-member banks have been provided with a new, relatively inexpensive source of GAIN THE COMPETITIVE EDGE Planning software that banks of all sizes can afford. Nortridge Asset/Liability Management software projects 90 day, 180 day and one year gaps in both dollar amounts and percentages. The program generates projected profits, profitability ratios, net profits, interest spread and many other key ratios for the current period and the next four quarters. Annual Financial Planning allows you to plan quarter-by-quarter; building financial models of your bank, simulating many economic conditions, and asking the important “ what-if” questions. Nine key ratios are generated both quarterly and annually. Nortridge software is designed by bankers to give bankers the management information they need for decision making. NORTRIDGE SOFTWARE 18 W. Stephenson Street, Box 522, Dept. M, Freeport, IL 61032 The software people for banks 1-800-435-7240 (In Illinois call collect 1-815-233-2050) Micro-computer programs available now: Agri-Lender #1, Agn-Lender #2 (cash flow analysis), General Ledger, Repurchase Agreement (REPO), Asset/Uability Management, Annual Planning, Safe Deposit Box. Stockholder Reports, Money Market Accounting. Programs soon to be available: I R A., Five Year Planning, Agri-Lender #3, Commercial Loans, "C.D.'s", Bond Swap, Trust Package 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis revenues. “We have finally found a secondary market that can compete,” he said. Mr. Le Gare emphasized the low cost to banks of joining MASI and pointed out that membership provides “a de pendable source of funds for your ag programs or farm overlines . . . a cheap insurance policy that will be there when you need it.” MASI has begun a pilot program in Wisconsin with four banks approved to sell loans — Bank of Osseo; Affiliated Bank, Cambridge; Commercial & Sav ings, Monroe; and Bank of Wisconsin, Janesville. Mr. Le Gare concluded: “I think we have found a vehicle that will allow banks to service their customers with out another bank coming into the pic ture. . . . Even if your bank does not have a liquidity problem, now is the time to be working on a secondary source of funds. ” A marketing program and workshops on M ASI will be offered if there is sufficient interest, he added. Gerald L. Snyder, president of Washington, D. C.-based Harvey Bas kin Co., spoke on an alternative fund ing method for community banks through the firm’s CDx service. CDx provides a clearinghouse for deposi tory institutions to list any quantity of $100,000 CDs they want to offer. The lists are made available in packages of $1 million or more to investors of large sums. CDx provides a low-cost deliv ery system that gives “smaller banks maximum flexibility for determining rates, amounts and timing” so they can participate in a national market. Using a touch-tone phone, a banker can dial directly into the computer — using a security code — to place offerings. Confirmation is both immediate and by mail. A banker can call the compu ter any time to verify listings. CDx has built up a large clientele, Mr. Snyder said. In recent months “banks and their trust departments have represented 80% of our buyers, he noted, “because insured CDs pro vide such an excellent balance be tween safety and yield.” CDx has provided a needed service to community banks, Mr. Snyder stated. “In these days of really hot money that results from new DIDC regulation, deposits can literally leave overnight — lured away by a competi tor who suddenly decides to offer 100 or 200 basis points more on his accounts than you are offering . . . CDx provides community bankers with a continuous and dependable source of funds from a nationwide clientele of depositors.” — Eleanor Wainwright, editorial assistant. MID-CONTINENT BANKER for March, 1 9 8 3 If you've fin anced o n e ho ld in g com pany, yo u 've fin an ced them a ll. Orhave you? t} MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L et’s face it. Holding companies aren’t always alike. So if your correspondent bank thinks all holding company financing is the same, maybe it’s time to look for a different correspondent bank. Like Continental B an k. At Continental, we hold no preconceived notions about what a holding company in your situation might need. We put together a credit especially made for a holding company of your size, in your state, and in your circumstances. With the combination of terms your individual situation calls for. And with any necessary regulatory modifications, evaluation analyses, and even negotiation assistance you might require. T h at’s the sort of flexibility you expect. And deserve. You expect decisiveness, too. At Continental, you get it. Credit requests don’t go from committee to com m ittee.They go directly to your account m anager—the person who can say “yes” or “no” on most loans. You get a decision fast. From the person who made it. Call Robert C. Vasko at (312) 828-4046 about your holding company financing. We won’t try to put you in one pigeonhole or another. We’ll ju st work out the credit that’s best for you. CONTINENTAL BANK Continental Illinois National Bank and Trust Company of Chicago, 231 South LaSalle Street, Chicago, Illinois 60693 A t l a n t a •B o s t o n •C h i c a g o •C l e v e l a n d •D a l l a s •D e n v e r D e t r o i t •H o u s t o n •L o s A n g e l e s •M i n n e a p o l i s •N e w Y o r k S t . L o u i s •S a n F r a n c i s c o •S e a t t l e •W h i t e P l a i n s 35 Thorough Investigation Pays Off When Bank Seeks Data Processor W HY W O U LD a bank HC in W isconsin be in terested in signing up for a data processing service out of Pittsburgh? Because it wanted the best service it could get for its product mix, no matter where it had to go to obtain it. Distance isn’t a factor when it comes to data processing, says Larry Spoon er, president, Heritage Data Services, data-processing arm of Heritage Wis consin Corp., Milwaukee. Heritage installed the Mellon Bank Datacenter Service in 26 offices of the 12 Heritage banks in 1979 and 1980, and, from the way Mr. Spooner talks, Heritage is one of Mellon’s most satisfied customers. H eritage had an in-house dataprocessing system under a facilitiesmanagement contract back in 1978. The HC desired a more sophisticated system when the contract expired, so Mr. Spooner coordinated a project to locate a data-processing system that would do the job best for Heritage. The search included visits to firstrate bank d ata-processin g shops around the nation to see what they were doing and where they were going with automation systems. In develop ing its laundry list of system needs, Heritage sought the assistance of Mel lon Bank because it has long been rec ognized as one of the premier operat ing banks in the country. From these visits, Heritage came to the conclusion that among capabilities it should in clude were proof of deposit, bulk filing, on-line exception pull, item truncation, system integration, on-line information and comprehensive man agement reporting. During the visit to Mellon Bank, Heritage had been introduced to the concept of remote-job entry (RJE), and it turned out that this capability from Mellon was the best resource for most of the systems that Heritage had iden tified. Mr. Spooner faced a considerable selling job once he had a supplier in mind. Changing data-processing sup pliers is very expensive, and a con siderable equipment outlay would be required for Heritage to install an on line system. Among the things that sold manage ment on the change, Mr. Spooner 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis says, was immediate availability of the items on Heritage’s laundry list, in cluding a comprehensive central refer ence file, combined statement capa bility and advanced m anagem ent reporting systems. A major factor was the great improvement in productivity that would result from installing the Datacenter Service. Proof of deposit, bulk filing, exception-item pull and item truncation created productivity improvements that tended to bring down the cost of installation through reduced number of employees. Mr. Spooner and the Heritage man agement also were impressed with Mellon’s commitment to the Datacen ter concept. M ellon’s people had helped Mr. Spooner develop the laun dry list of systems for Heritage and, in so doing, had recognized that its ad vanced operations system capability was up to the task of fulfilling Herit age’s demands for sophisticated ser vice. After almost four years’ experience with Datacenter, Mr. Spooner says he considers the system to be “a very powerful and complete product with plenty of horsepower to support the on-line system. The C IF, for instance, not only is very efficient, but also pro vides the HC with the ability to extract information that is very meaningful for marketing purposes. I also appreciate the ability to profile accounts on a reg ular basis to determine their profitabil ity“ One of the things I appreciate Mellon Bank provides dataprocessing services to nearly 200 banks in 16 states, including 50 banks in the Midwest. A Mellon affiliate, Mellon Financial Services, recently acquired the assets of F. T. I. Services, Inc., Chicago, and has opened a Datacenter office there. Products offered by M ellon Datacenter are based on an on-line network tied to a custom erinformation file. In addition to basic financial accounting systems, Mel lon D atacenter offers tellertransaction truncation, asset/liability reporting, account analysis, cor porate-customer profitability and management-marketing analyses. about the Mellon system is the sharing of development costs with the other Mellon users. This concept encour ages new-product development at a cost we can afford. “Mellon also gives its systems a level of flexibility that permits users to cre ate their own products for their mar ketplaces.” Heritage uses all Mellon services that are compatible with its product mix. Mr. Spooner is especially fond of the management-reporting systems and capability to perform rate analysis. The Datacenter enables Heritage to perform services that previously would have been too costly to perform. “The people at Mellon are always ready to listen to a user’s idea,” says Mr. Spooner. For instance: Heritage discovered that if Mellon would make a minor adjustment to its bulk-filing system, Heritage could eliminate mi crofilming all checks at statementcycle time. The suggestion for change was transmitted to Pittsburgh, where it was considered and implemented. As Mellon’s largest customer, $725million-asset Heritage maintains note books on each system it uses and al ways is on the lookout for refinement possibilities. Since the system was in stalled at Heritage, as many as 50 en hancement possibilities have been suggested. Among benefits of the Datacenter System is the improved service Heri tage has experienced at its teller win dows, since most of the information needed is available on-line to tellers. Datacenter enabled Heritage to cen tralize the back offices of its 12 banks at one location, resulting in abundant savings in time and personnel costs. There would have been considerable savings if the system had enabled the 12 banks in the Heritage HC to merely make their individual back offices more efficient, but the fact that all the work now is done in one central loca tion has compounded the savings. Installation of the Datacenter sys tems through the Heritage organiza tion took about eight months. There were some problems getting the sys tems installed, notably changes in Regulation E that were made just prior to conversion. But Mellon’s people MID-CONTINENT BANKER for March, 1 9 8 3 reacted well, according to Mr. Spoon er, especially when it’s considered that the conversion involved all 12 Herit age banks. Each of the Datacenter sys tems was installed first in a pilot bank, where any bugs could be detected and eliminated; then it was installed in the other 11 banks. There was consider able overlapping of installations, but after a system was running, further in stallation was turned over to a special team that didn t have to be concerned with fine tuning the systems. Customers were informed of the conversion by letter. And it wasn’t long before they could detect the high er level of sophistication taking place in Heritage’s data-processing opera tion. The new system enabled Herit age to change its debit-card design and services and to offer combined state ments — two things easily noticed by customers. Projects for the future involving the Datacenter Service include the capa bility of creating a teller-staffing model as well as other new systems, Mr. Spooner says. Since the cost of setting up a dataprocessing system is prohibitive to banks under $150 million, Mr. Spoon er says, Heritage is planning a program to offer its data-processing service to other banks. The service will enable these banks to use Mellon Datacenter systems through Heritage Data with out investing in an in-house computer center to support remote-job entry. — Jim Fabian, senior editor • • McGillicuddy Honored John F. McGillicuddy (I.), ch./CEO, M anu facturers Hanover Corp., New York City, holds the special Medal of Merit he re ceived from the Treasury Department for his outstanding service to the U. S. savings bonds program as 1 9 8 1 -8 2 b an kin g industry chairman. Presenting the award is W illiam R. Fuller, M anhattan district direc tor, U. S. savings bonds division. The award came from Treasury Secretary Donald T. Regan. Donald M. Carlson Dies Donald M. Carlson, 66, died January 17. He headed the Indepen dent Bankers Association of America in 1971-72 and the Illinois Bankers Association in 1960-61. How to Identify, Supervise and Collect the Problem Loan! Mr. Carlson entered banking 1933 at the Chicago Fed, went State Bank of Blue Island, 111., 1945, South Shore Nat’l, Chicago, 1949, and to Elmhurst (111.) Nat’l 1952. He advanced to president 1953 and retired in 1980. in to in in in in Centerre Bank, St. Louis Buys Missouri State Bonds Centerre Bank, St. Louis, was the successful bidder for the $60-million state of Missouri bond issue sold Janu ary 19. Its syndicate is comprised of 42 other securities dealers and dealer banks with local representation from Stifel, Nicolaus & Co., Inc., I. M. Simon & Co. and R. Rowland & Co. The $60-million bond issue is the largest syndicate ever managed by Centerre and the largest ever sold by the state. The series A state water pollution central bonds and state building bonds are the first block of M issou ri’s voter-approved $600million bond issue to be sold. Bidding was extremely competitive, said James R. Lanigan, Centerre vice president/municipal securities man ager, with all of the bids falling be tween 8.101% and 8.14%. A second bid of 8.106% was by a syndicate man aged by Morgan Guaranty Trust, New York City. Other competing syndicate m anagers included C itibank and Chase Manhattan, both in New York City, and Northern Trust, Chicago. The series A bonds range in matur ity from February 1, 1984, through 2008. Interest is exempt from federal and state income tax and is payable beginning August 1, 1983, and each February and August thereafter. According to Missouri Governor Christopher S. Bond, the sale of the bonds, earmarked for improvements, will begin to meet the state’s critical building needs and put Missourians back to work. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Com m ercial Problem Loans $35.00 A completely revised and ex panded second edition of Commer cial Problem Loans: How to Identify, Supervise, and Collect the Problem Loan by Robert H. Behrens has just been released by Bankers Pub lishing Company. This manual shows loan officers how to handle small-to-medium-sized commercial loans that are in danger of being classified as “ problem loans.” It stresses early identification of problems and th e ir underlying causes so that the loan officer can implement a plan for corrective ac tion. For those cases where the loan cannot be salvaged, a step-by-step program of collection will minimize loan lossesand safeguard the bank’s position. This well-organized text will serve as a working reference for lending officers, loan review officers, and credit and collection personnel. It provides 224 pages of procedures, checklists, and 21 sample docu ments including a credit file, a loan review log, and a charge-off work sheet. Two new chapters— “ Estab lishing a Loan Review Department” and “ Lender Errors that Lead to Loan Losses” — and an additional case study on how to salvage a loan are other features of this expanded second edition. In addition to over 20 years of lending experience, Mr. Behrens isa graduate of both the Stonier Gradu ate School of Banking and the National Commercial Lending School and holds the ABA’s profes sional designation of Certified Com mercial Lender. Mr. Behrens is cur rently vice president and senior loan officer at The Commercial Bank, Champaign, III. MID-CONTINENT BANKER 408 Olive St. Louis, M0 63102 Please send------ copies of Commercial Problem Loans @ $35 each NAME ___ _______________________ Bank__________ _________________ Address________ _________________ City ----------------- S tate_____ Z ip ____ 37 Total Security 'Through-Wall' Cameras Keep Eye On Mississippi Bank's ATM Sites O PROTECT its ATM installations ance cameras also guard the exits at and custom ers, C om m ercial these branches. This configuration enables Com National, Laurel, Miss., has installed Mosler through-the-wall videotape mercial National to monitor bank ac ATM cameras at its North and West tivities during the day and provides Laurel ATM locations. Using econom 24-hour surveillance at ATM locations. ical, reusable videotape, the cameras According to Robert S. Gaddis, presi generate time, day and date records of dent, Commercial National, “We b e every transaction and can be stopped lieve equipment that is available for for immediate hard-copy prints. Oper use 24 hours per day should be under ating on 24-volt power, the cameras surveillance 24 hours per day.’ A closed-circuit television system provide clear pictures day and night with just average lighting. The 8 mm was designed and installed by Mosler lenses give extrem ely w ide-angle and is tied directly into the Mosler coverage of customers and their trans bank-alarm system. “W e’ve had some problems with actions. Because of their unique through- bad-check scams and have been able to the-wall design, the units are not easily provide excellent photographs of sus recognizable as cameras by the general pects to our local law-enforcement public and are maintained inside the people,” says Mr. Gaddis. “In fact,’ he adds, “these cameras have been work bank building rather than outside. For additional protection and in ing so successfully for us since their installation early last fall, w e’ve conjunction with the ATM cameras, there are Mosler closed-circuit televi ordered another for our Sawmill sion cameras covering all teller sta Square Branch, which currently is tions, new-accounts desks and remote under construction on Sawmill Road. Mosler is an operating unit of Amerdrive-up lanes. Mosler 35 mm surveill- T Don't buy an A TM ! until you see the alternative... the c a s h - le s s ATM Datatrol's cash-less ATM allows your customers to access balance information, cash checks, approve w ith drawals, make deposits, and transfer funds between accounts. It delivers ATM benefits, not ATM costs. Available in several models, all are priced under $5,000! For information on the cash-less ATM, call us today 617-568-1411 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Moslems total ATM-security system includes videotape surveillance (see circled equipment). According to Mosler, all, or any combination, of the components of this turnkey-security package can be provided for new or existing installa tions. Mosler also says its nationwide network of trained technicians offers one source for service of the total security system 24 hours a day. Mosler’s Photoguard® surveil lance system assists banks in com plying with Regulation E of the Bank Protection Act by providing sharp, clear pictures and, with its recorder, tracking all ATM transactions around the clock. The equipment gets up to 10 full days from a reusable videotape. ican Standard, Inc. In addition to manufacturing bank security systems, American-Standard also is a leading producer of railway, mass transit and automotive braking and control de vices; plumbing and other building products; earth - and ore-m oving vehicles; industrial-fluid power prod ucts and graphic products. The com pany and its affiliates carry on manu facturing operations in more than 20 countries. • • Dataholii/ Brent Drive, Hudson, MA 01749 Telephone 617-568-1411 see us at EFT EXPO, Las V egas 38 Total ATM security is being mar keted by Mosler Safe Co., Hamilton, O. Its total ATM-security system features video surveillance, card ac cess, alarms and night-depository in terface. The firm recommends these products for a single ATM installa tion or a comprehensive ATM net work. b o o th s ** 6 7 - 6 8 MID-CONTINENT BANKER for March, 1 9 8 3 Micro-Management Correspondent Service Provides 'Big Bank' Expertise to Clients F EW COMMUNITY and rural bank managers have the expertise to make the right decisions when it comes to selecting micro-computer hardware and software for their in stitutions. That’s why Security National, Kan sas City, Kan., is offering its new cor respondent service — micro manage ment. Security National’s approach in de signing the service was to make sure that all the micro-computer needs of a client bank are filled. To do that, it takes what it terms the “whole system’’ approach to configuring a specific mi cro system. “We first determine what the bank would like to accomplish with its sys tem ,” says Stephen B. Ashley, senior vice president and head of the corre spondent d epartm ent at Secu rity National. “Then, from a list of ‘micro products’ that includes both hardware and software components, we select the components a client needs and actually build a system for the client bank right before the eyes of its man agers.” Stress is placed on the problem solving aspect of creating such a sys tem. We want the micro-computer system we configure to actually do something that will help our corre spondent. We won’t sell the bank a system that’s going to sit and gather dust, Mr. Ashley says. Client banks have several options to choose from when it comes to con figuration of the hardware components of a micro system. A bank can choose either one of the “recommended sys tems (systems configured to meet the needs of a broad cross section of bank users) or a system can be built compo nent by component. Security National has categorized all the software it offers to enable a client bank to zero in on the software it needs. All software for banks has been divided into one of three categories, Mr. Ashley says: accounting/operations, management support/decision aid and sales/customer service. The accounting/operations category consists primarily of packages that comprise a bank s major transactionbased banking systems; i.e., general ledger, CD, commercial loan, etc. The tions. Not to do so is to rely on blind second category — management sup luck. Asset/liability management was port/decision aid — consists of systems developed to enable bankers to get a that permit a bank to carry out plan handle on good management tech ning or modeling functions. Category niques,” Mr. Ashley says. three — sales/customer service — in “But, what is being called assetcludes programs that can help a bank liability management isn’t enough. sell a service or support a customer The problem of financial control of a relationship. bank today requires more than aging Security National joined with E n maturities and calculating interestterprise Management Systems (EMS), sensitivity gaps. Thus the concept of a software supplier that develops and micro management evolved. markets micro-computer programs for With the aid of micro-computers, the banking industry. we have developed a series of planning “By combining our banking exper and historical-analysis models that in tise with the smalbcomputer-system teract to provide bank management expertise of EM S, we have been able with a timely, flexible and inexpensive to develop micro-computer systems system of financial control. that can aid client banks in sound man In addition, we discovered that agement,” Mr. Ashley says. the micro-computer could be used to All systems are supported by Secur develop other functional applications ity National and EM S, which means that streamlined internal operations that Security National supports all and provided new services for custom physical components of the system it ers.” offers, which includes hardware/softMr. Ashley says the micro-man ware maintenance, documentation de agement system enables management velopment, program enhancements, of client banks to spend more time on etc. the analysis and evaluation process by According to Mr. Ashley, corre eliminating virtually all the tedious spondents using the program can ex computations associated with the com pect the following benefits: pilation of various financial reports. • Program development. New ways Benefits banks can derive from the to use micro-computers in a banking system include standardized and con environment are sought out by Secur sistent formatting of reports; detailed ity National and EM S. analysis of key ratios; graphical capa • Ongoing research . S ecu rity bilities; statistical-trend-analysis inter National and EM S monitor changes in face; planning/forecasting model inter information-processing technologies face; and freedom from “mainframe” on a full-time basis and pass the in programmers. formation on to client banks. Mr. Ashley says the system permits • Training. Security National and bank managers to devote more time to EMS train as many people as the client strategic decision making, which is a bank needs to operate both the gener must in today’s volatile banking en al-system usage and specific-system vironment. usage. General-system usage refers to One of Security National’s client operating the com puter; specificbanks is Citizens State, El Dorado, system usage refers to applying a Kan. The micro-management system bank’s system to everyday banking was installed in October, 1982, at the needs. $35-million institution, according to • Users’ group. All client banks are Ed Gard, vice president/cashier. entitled to membership in a users’ When Mr. Gard learned of the mi group that will serve as a general forum cro-management system, he visited through which users can keep up with Security National’s headquarters to new applications for micro-computers learn more about it. He had been in that can result in increased efficiency. terested in a micro-computer system Good management requires a bank for some time and had been looking at to project its financial statements into one marketed by a major computer the future for a variety of rate assump firm that would permit Citizens State MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 Douglas-Guardian WAREHOUSE CORPORATION Home Office P.O. BOX 52978, NEW ORLEANS, LA 70152 (504) 523-5353 For lasier service on CREDIT INSURANCE CALL THESE SPECIALISTS Harold E. Ball • Carl W. Buttenschon John E. King • M ilton G. Scarbrough 1-800-527-5511 ® INDUSTRIAL LIFE INSURANCE COMPANY P.O. Box 220998, Dallas, Texas 75222 /TQ O A member company of C P L F S u Republic Financial Services. Inc 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis your financial institution controls. to operate its own in-house system. Rather, successful responses depend But he favored a system developed by a bank, especially a bank that he on utilizing more effectively E F T re sources now available and making knew as well as he knew Security National, which has had a correspond sharing arrangements that assure fu ent relationship with Citizens State for ture operational flexibility. Develop your E F T future with a facilitator, not many years. The hardware for the system was a dominator. • • secured locally and the dealer took Real-Estate Finance Meeting care of training staff people at Citizens To View Deregulation's Impact State to operate the Apple II Plus mi cro-com puter. Security National s The impact of deregulation of banks’ people handled the software. liability structure and expansion of “I don’t want to sound like a com bank real-estate lending authority re mercial for the program,” Mr. Gard sulting from the Garn-St Germain Act says, “but I like it very much. ” He says will be featured at the ABA’s national his staff has yet to utilize the program’s conference on real-estate finance, set full potential, but initial applications for May 1-4 at the Hyatt Regency, are giving the bank better breakdowns Embarcadero Center, San Francisco. on the cost of funds and return on Program highlights will include a re assets. This is due to the capability of port on a major ABA market study on the program to provide daily break new opportunities in real-estate fi downs on the information needed to nance and panels giving regulators’ identify trends. Before micro manage views of deregulation, nonbank com ment, breakdowns were available only petitors in real estate finance and a on a monthly basis, which made it diffi perspective of bank management on cult for managers to stay abreast of the the future of bank involvement in realcondition of the bank’s asset/liability estate finance. mix. Special-interest sessions will ex Mr. Gard is anticipating use of the plore alternative mortgage instru graphics portion of the program in the ments, new strategies in incomenear future. This capability will enable property finance, effective use of the managers to play “what i f ’ games to secondary market and construction determine what would occur under a lending trends. given set of circumstances fed into and analyzed by the program. He says there were some operation al bugs to work out when the program was installed, but the transition was SAVE $$$ ON 1984 CALENDARS WITH A LOW, LOW COST AD THAT IS much less painful than he expected it WORKING FOR YOU 365 DAYS. to be. “It took some intensive work at the outset,’’ he says, “but the result was worth it. — Jim Fabian, senior editor. • • “MAKE IT MONARCH” Shared-ATM Network (C ontinued from, page 16) your but other data can be accommodated and passed on to the host). • Key management to protect en cryption. • Constant network monitoring to maximize customer service. Options include; • Use of FASTBAC™ service mark and camera-ready marketing materials at an institution’s discretion. • Accommodation of VISA, MasterCard, AMEX, private-label cards, etc. • Support of several v en d ors’ ATMs. • Piggybacking. • ATM leases. Conclusion. Flexibility in respond ing to present and future market chal lenges lies not in the number of ATMs b u s in e s s n am e here CALL COLLECT - ASK FOR OUR SPECIAL PRICES ON: Wall, Desk. Pocket Planners, Wallet Cards. ORDER NOW! RECEIVE A POCKET CALCULATOR FREE. YOUR SINGLE SOURCE ADVERTISINGSPECIALTIES • • • • CONVENTIONS SEMINARS GOLF TOURNAMENTS SALES AWARDS • BUSINESS GIFTS monarch . Graphics 333 NORTH MICHIGAN AVENUE CHICAGO, ILLINOIS 60601 (312) 236-1127/1128 MID-CONTINENT BANKER for March, 1 9 8 3 Forget about losses when your Home Improvement Loans are protected by Insured Credit Services. Without question, losses are a major threat to your loan portfolio today. Even the best lender can incur a loss when a stable borrower suddenly becomes a victim of unemployment, divorce, disablement, or bankruptcy. Now, you can shelter your home improvement loans from all risks with the Insured Credit Services Loan Profit Program. Any loan that is deemed uncollectable is guaranteed to give you maximum yield. We’ll quickly and completely reimburse you for the unpaid principal plus interest and costs, in addition, we offer 28 years of underwriting and marketing expertise to assist in the evaluation and development of your home improvement loan portfolio. Insured Credit Services, Inc. is a wholly owned subsidiary of Old Republic International Corporation, the nation’s largest provider of consumer credit insurance coverages. If you want to lorget about the threat of loss on home improvement lending and feel more secure about aggres sively pursuing this profitable market, please contact: William F. Schumann, President, Insured Credit Services, Inc.: 307 North Michigan Avenue; Chicago, Illinois 60601; (312) 621-9400. IN SU R E D C R E D IT (. S E R V I C E S 3 IN C . The O r d in a l H om e K q;;,tv in a I!o n :e Im p ro v e m e n t Lo on P riiie c tio n Specialists Visit our booth at the ABA National Retail Banking Conference in Atlanta, GA, April 10-13. MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Micro-Computers Share Spotlight At Missouri Bank Management Conference i c r o -c o m p u t e r s were the star attractions at the bank management conference sponsored recently by the Missouri Bankers Association in St. Louis. An exhibit area was jam m ed with m icro computer dealers and a portion of the first day’s program was devoted to the topic. Many of the almost 500 bankers attending the conference seemed un certain about entering the exhibit area because they weren’t very knowledge able about the products on display. That’s why conference planners sched uled a session titled “Micro-computers in Banking’’ that featured Peter C. Brown, research/planning officer, Mercantile Bank, Kansas City, and Gary L. Robben, president, Gary Robben & Associates, Merriam, Kan. When introducing Messrs. Brown and Robben, conference chairman Larry M. Burbank, president, Centerre Bank, Springfield, said the ses sion was scheduled up front on the program so bankers could learn enough about micro-computers to be knowledgeable when they toured the exhibits. Mr. Brown explained that micro com puters are gaining popularity among bankers because automation is synonymous with survival in today’s technological society. He said technol ogy no longer is beyond the reach of most banks because of the m icro com puter. C ost-per-pow er of ma chines is coming down by an average of M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28% a year. In contrast, he said, peo ple costs are rising; therefore, mi cro-computers enable banks to maxi mize costs to a degree. He said it costs a bank about 430 per hour to “hire” a micro-computer. Micro-computers are being used by bank management to enhance deci sion-making, Mr. Brown said. They are significant tools that are suited for stand-alone management applications. They are not clerical-only tools, he added, but are management-support tools. Micro-computers are useful in help ing banks sell services and to support custom er relationships. Customerservice representatives at banks that have micro-computers can access in formation about every service the cus tomer uses. Micro-computers can be used to project alternatives of various account possibilities. When so used, they have tremendous income-gen erating potential, he said. Mr. Brown ticked off a laundry list of micro-computer applications and gave the following hints to bankers: • Don’t make a hobby out of micro computers on company time; make them work for the bank. • Identify some products that you endorse, making sure they are com patible. Then you’ll know what to buy when the time comes to go with micro computers. • N egotiate bank-like contracts with computer dealers. • Get an on-premise maintenance Darryl R. Francis (r.), former pres., St. Louis Fed, chats with Ben A. Parnell Jr., ch., Centerre Bank, Springfield, Mo., and former MBA pres. person. • Encourage as many staff people as possible to use computers; it fosters creativeness in them. • Establish a central clearinghouse of applications, so someone at the bank won’t be “reinventing the wheel” be cause of ignorance of an existing ap plication. • Avoid time sharing by using mi cro-computers. • Use m icro-com puters to r e evaluate task processes. • Don’t copy someone’s software; buy it. Copying is illegal. Mr. Robben told the bankers that micro-computers enable bank man agement to stop using seat-of-thepants calculations. They eliminate the need to spend a great amount of time pushing pencils to arrive at bids on funds. Bankers don’t have time to push pencils all day, a fact that encourages them to make guesses when bidding. These guesses often fall short of the mark. Micro-computers enable banks to fine-tune their bids. A panel on fixed-rate term financing concluded that such financing isn’t (C ontinued on page 52B) Among principals a t Missouri Bankers Association bank management conference in St. Louis recently were (from I.) Charts E. W alker, W ashington, D. C.; Robert W. Crawford, MBA e.v.p.; Ethan A. H. Shepley, MBA pres., and v. ch., Boatmen's Nat'l, St. Louis; and Larry M. Burbank, ch., MBA bank-management committee, and pres., Centerre Bank, Springfield. MID-CONTINENT BANKER for March, 1 9 8 3 the bull by the.. Put your bank in the brokerage business. Im plem ent a highly profitable, proven program designed by a bank exclusively fo r banks. No bull. With this system, ordinary brokers listen when you talk. Offer dramatic savings on brokerage transactions to your customers. Up to 75 percent! Retain 40 percent of each commission. Most broker-designed systems offer you only about 15 percent. This plan is designed with a bank’s interests in mind. Provide your customers the convenience of dealing with one institution for all their financial needs. Add this profit center to your services now and stay in the forefront of this highly competitive banking environment. Take the bull by the horns and discover how easily Marine’s Banker-to-Banker Brokerage Program can go to work for you. Write or call collect TODAY: Ronald E. Sides, Assistant Vice President, (217) 525-9754. S P R IN G F IE L D Marine Bank E a s t Old State Capitol Plaza • 435 South Sixth Street * 2 1 0 North Grand Avenue West MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Springfield, Illinois 62701 • (2 1 7 )5 2 5 -9 6 0 0 • Member FDIC _y/j^ N ew H orizons in Banking Services How Banks Should Plan For M icros T H E R E has been an explosive growth of micro-computers — one that barely has begun. By year-end 1982, sales for the year should have surpassed the en tire base of micro com puters. As the cost of m icro computers and personal computers (PCs) decreases, growth will become geometric. IBM ’s introduction of its PC has had a profound effect on the market. Once a respected company came out behind "It's important to follow the same rules of pro d u ct, strategic, tactical and systems planning for micro-computer development as it is with any other support t o o l/7 PCs, buyers decided PCs were here to stay, and other vendors needed to in crease their market shares, too. Also with this increase in PCs, software vendors began developing software especially for micros or adapted soft ware previously written for minis or mainframes, thus increasing options available for users. This surge is being driven by the same economies of lower cost and greater function that have been preva lent over the past several years in the mini and mainframe markets. Much research and development are being focused on developing super-chips that will increase dramatically the capabilities and usefulness of micros. As micros become more powerful, people will be able to use them for more tasks in the workplace. While this may seem like a revolu tion, it actually is more of an evolution in the history of office work, an evolu tion that started with introduction of the typewriter, telephone, telegraph and copying machine. Many banks and 44 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Claude G. Stone professional offices still function much as they did in preindustrial times, but micros can help us work more effi ciently and allow faster communica tion of information. What are the important issues sur rounding micro-computers that bank ers need to look at? The most impor tant issues involve the following: 1. How do micro-computers fit into my overall business plan? 2. What are the potential benefits of micro-computers? 3. What are the potential pitfalls facing installation of micro-computers in banks, and how can they be avoided? 4. What micro-computer and soft ware should I buy? Planning f o r M icro-C om puters. It’s important to follow the same rules of product, strategic, tactical and systems planning for micro-computer develop ment as it is with any other support tool. While micros are less expensive than other forms of computer support, their product still is information, and accurate, complete information can make or break a bank. In addition, it’s important not to be overly enamored of technology for technology’s sake. Use business goals to direct your decisions. Other banks clearly have found it is much more important to look at the application you want to automate rather than at the specific kind of mi cro-com puter. Micros becom e ex tremely expensive if they do not fulfill requirements you have for them. Some kinds of processes that can be automated within small banks using C lau de G . Stone, vice president/system s an d MIS departm en t, First N at’l, C hicago, gave the talk on w hich this article is ba sed at his b a n k ’s 1982 corresp on d en t b an k con fe r e n c e . current micro-computer technology are: a. Transaction processing. b. Loan-application processing for commercial, installm ent, mortgage and personal loans. c. Decision support with electronic spread sheets. d. Word processing. e. Teller scheduling. f. Facilities depreciation, control and planning. "When you buy hardware and software for the first time, purchase o n l y w h a t y o u c a n p a y o u t o v e r the d e s ire d re tu rn o n -in v e s tm e n t tim e s c h e d u le . You always can purchase addi tional hardware. . . g. Interest-rate calculation. h. Payment scheduling and calcula tion. i. Personal financial planning/ budgeting services. j. Bank-at-home services. k. Access to public-inform ation sources, such as the Dow Jones Index. l. Safe-deposit-box management. m. Inventory. n. Personnel records/payroll. o. Access to other larger computer systems. p. Electronic mail. q. Access to autom atic-fundtransfer networks. r. Credit checking. Here is a “road map to follow in determining whether you should in vest in micro-computer software and hardware: 1. Analyze which banking proces ses within your organization would benefit from automation. 2. Survey your competition and de term ine how they currently are using automation techniques and capabili- MID-CONTINENT BANKER for March, 1 9 8 3 C o s t -e ffe c t iv e n e s s . @ Time after time, bank operations offi cers or their consultants recommend Mellon Remote Job Entry service after an analysis of in-house and con tract data processing. Why? Because cost-effectiveness requires the opti mum combination of capabilities and cost. By virtually eliminating paper and making vital operational data available instantaneously through teller and administrative terminals, Mellon R JE provides significant cost savings through in creased productivity. It also makes your bank more competitive by providing the most extensive range of capabilities available from any vendor, including: ■ a completely integrated central information file; ■ truncation of teller transactions; ■ complete and current documenta tion of all systems; ■ management report generation for marketing and administrative purposes—including analysis of markets and product lines, corporate customer profitability, and asset/liability management; ■ capability of supporting both on line and off-line automated teller machines in shared or proprietary networks: ■ comprehensive training resources and an active user group. Mellon R JE is the most advanced system available today, and our record says it will be the most ad vanced, reliable, and comprehensive data processing system available tomorrow. So, if you are concerned about your bank's cost-effectiveness, why not compare your processing costs and capabilities with those provided by Mellon R JE? Ju st call Harry Hritsko, Sales Manager, (412)234-4143, or write to Mellon Bank Datacenter, Mellon Square, Pittsburgh, PA 15230. M ellon Bank Helping bankers solve banking problems. MID-CONTINENT BANKER for M arch, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4. Micros can be used for communi ties. 3. D eterm in e what your bank cating with other large banking data would need to do to differentiate itself bases, information sources or electron from its competition in terms of auto ic-m ail facilities, with the goal of providing quick access to highly vola mation to meet your business goals. 4. Set your budget for automation. tile inform ation and reduction of 5. Survey available software to de courier/mail costs. 5. Micros can be used as a combina termine which software best meets tion of text processor and data proces your needs for automation purposes. 6. Survey available hardware to de sor to support information-intensive termine which hardware best fits the products, such as letters of credit, and software you have chosen for automa loan preparation. 6. Micros can be used as an entry tion purposes. 7. Develop a detailed plan for train point for T E L E X and wire transfer of ing, converting and implem enting funds in a rapidly growing internation al telecommunications network. hardware and software. 7. Micros can be used in commer 8. Purchase appropriate hardware cial-customer programs to allow cus and software. 9. Install hardware and software; tom ers to use a b an k’s m icro train personnel, and begin conversion computers on a “do-it-yourself servicebureau” basis to analyze their cash to automated processes. 10. Several months after complete flows and capital structures and to help them evaluate acquisitions and newconversion to the automated system, evaluate its usefulness and effective business ventures. 8. As video-text and tele-text grow, ness. Determine what changes, if any, personal computers can be used to need to be made. provide customers with bank-at-home 11. Institute changes if necessary, services. and repeat the process again in several 9. Micros can be used for training months for duration of the project. W hen d eterm in ing w h eth er to programs and professional programs purchase a micro-computer, consider for employees. such things as product differentiation. Pitfalls. There’s another side to mi 1. Can such a purchase enhance the cros, too — potential pitfalls. Here are quality of responsiveness of your oper a few: ational and/or marketing support to 1. Look at the pay-back p eriod for hold on to or increase your bank’s mar software and hardware. Most micro ket share? 2. Can micro-computers hardware and software can be written allow you to offer new, creative prod off in three to five years, depending on ucts or services to your customers or investment-tax schedules applicable to allow you to attract new customers? 3. your bank. Can a micro-computer and its products be packaged creatively for productdifferentiation purposes? Micro Videotape Micro-computer use can result in in creased productivity, effectiveness A videotape now offered by Bank and versatility. For instance: Administration Institute analyzes 1. Micros can be used by executives and discusses micro-computer ap for decision support and long-range plications for financial institutions. planning. Special m icro-com puter Topics covered include evaluation of hardware and off-the-shelf soft packages will continue to expand mi ware, sale of customer services cros’ usefulness in banking. through micro-computer usage, 2. Micros can be used by profes micro-mainframe interface tech sionals to support detailed cred it niques and future trends in banking. analysis, budgeting, planning and de Supplementing the two-hour tape velopment. Rapid growth of business is a 200-page notebook that includes graphics will continue to expand the a description of a total bank micro potential for use of micros in these system and a guideline on setting up areas. a distributed processing system with 3. Micros can be used in retail micros. The tape is available in VHS, Beta banking to handle retail financial ser and three-quarter-inch formats. vices — individual-retirem ent ac Cost, including the notebook, is counts, CDs, loans, bond-investment $300 to BAI members and F ISI programs, safe-deposit records, stock Video Network subscribers and $450 holder records, trust applications, to others. Send orders to: J. H. Per credit analysis — and a variety of other kins, Bank Administration Institute, retail services. Ampersand, Inc., re 60 Gould Center, Rolling Meadows, cently announced a family of 97 bank IL 60008. ing software programs designed for use on IBM ’s personal computer. 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2. B uyer bew are — not all software is equally good. Be sure you have a chance to test the software before you purchase it. 3. D eterm in e the sign ifican ce o f your investment in the softw are to de termine if it is worth your while to modify it. You can look at micro hard ware and software much as you would a note pad — you use it up and then you can throw it away after it has served your purpose. 4. If you plan to automate processes that depend on highly volatile informa tion, be sure the software is flex ible enough to handle it. 5. D on’t plan to use current micros f o r volum e tran saction s. They cur rently aren’t able to handle them. Time-sharing services or minis usually are more effective than micros. 6. Watch out for creepin g expenses once micros are installed. Once they are in, they becom e like the first copying machines you installed in your bank. Everybody wants to use them and can come up with a dozen more processes that could benefit from auto mation on them. 7. D ecide early i f you want to stan dardize m icros within your batik o r let them proliferate u n con trolled. Many banks have had problems with “hun dred-flowers” approach and recom mend at least requiring that all micros purchased be able to communicate with one another within the bank. W hich to buyP In deciding whether to go into micro-computers, the most important question is not, “Which micro should I buy?,” but rather, “What do I want to do with a micro?” By answering that question first, you narrow your field of choices consider ably, and you will be able to make a more effective purchase decision. Look for upw ard m igratability or u pgradability in your softw are and h a rd w a re. Once micros are inside the bank, your uses will grow, and it will be important to be able to expand and enlarge your equipment base effec tively. When you buy hardware and soft ware for the first time, purchase only w hat you can pay out over the desired return-on-investm ent time schedu le. You always can purchase additional hardware (especially if you made sure you could expand your system when you bought it), and the cost for hard ware and software is going down all the time. S um m ing u p . M icro-com pu ters have demonstrated a usefulness in banking, and, as more software is de veloped specifically for banking pur poses, their usefulness in banking will increase. • • MID -CONTINENT BANKER for March, 1 9 8 3 BA N K ERS: We’ve figured it o u t See how Hewlett-Packard computers and our banking packages could streamline your back room operation. Start with the routine o f keeping your back room going. Add in custom er activities. Multiply those by ten. And you could end up with total conf usion. But at M ARCAL SY ST E M S we’ve got a better answer: the HP com puter and our special banking software. Hewlett-Packard’s small but powerful systems use plain English instructions. Easily keep all o f your sav ings, loans, DDA, safe deposit box, sh areh old er, general ledger, and bond portfolio accounting rec MARCAL SYSTEMS MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ords. Get special m anagem ent and ratio reports at the push o f a button. I f you’d like to know m ore about Hewlett-Packard and Marcai System s’ banking packages, call Marc Veenem an at 312/639-6500. 4 Crystal Street m H E W L E T T P A C K A R D Cary, Illinois 60013 C O M P U T E R P R O D U C T S V A LU E-A D D ED SYSTEM SU PPLIER 312-639-6500 47 Profit, Productivity Can Be Boosted With Micro-Computers “ . . . A micro-computer — also known as a desk-top or personal computer (PC) — is any computer that uses micro-computer technology, namely, a micro-processor or silicon chip about the size of a dime on which electronic circuits are assembled.’ — W a y n e K . N y s t r o m , p r e s ./c o - f o u n d e r , functions, but they don’t have the capacity to crunch numbers and store large amounts of data like large compu ters. But the point is micros are not intended to rep lace the mainframe, but to serve as an additional and im I n f o w a r e , I n c . , N a s h v ille . mediately responsive, technological tool for specialized applications. Q. How about the reliability of mi cro-computers? Can a banker expect the same kind of problems with a mi cro as with a mainframe? A. No. First, problems with main frames generally are exaggerated be cause functions it performs are vital, time-dependent processing, such as billing, accounting, order processing. W hen something goes wrong, the problem receives high visibility and demands instant resolution. If hard ware fails on a micro, you can get an instant backup machine — either from another department or the computer shop down the street. Besides, micro “Essentially, a micro-computer . . . is systems today are extremely reliable, aimed at individual use. It can perform particularly with IBM and other bigonly one task at a time . . . Micros perform name companies in the business. an array of accounting functions, but they Q. Mr. Nystrom, let’s start with a Q. What are the advantages of mi don’t have the capacity to crunch numbers and store large amounts of data like large basic question. What precisely is a cro-computers over mainframes? micro-computer? computers.’’ — W a y n e K . N y s t r o m . A. Obviously, the cost. Timex/SinA. In the strictest sense, a micro clair has a system available for $100. computer — also known as a desk-top And last month, Apple announced or personal computer (PC) — is any LISA for around $10,000. Typically, a computer that uses micro-computer good m icro-com puter system sells technology, nam ely, a m icro processor or silicon chip about the size of a dime on which electronic circuits are assem bled. A typical m icro computer system used by a bank con sists of the computer itself, a keyboard and video-display screen, disk storage and a printer. Manufacturers include IB M , Apple, Tandy, Commodore, Texas Instruments, among others. Q. What makes a micro-computer different from what we call a large “mainframe” computer? A. Essentially, a micro-computer, “Here at Infoware, we recently con unlike a mainframe, is aimed at indi “Deciding to sit on the sidelines could be ducted a survey and discovered that 73% of the banking industry currently are using vidual use. It can perform only one fatal. Micros are here to stay. The first to micros, and 77% of the nonusers are plan task at a time. A mainframe, on the harness the power will be the winners. ning to begin using them this year. Also, other hand, is used to meet a bank’s Banks that learn to improve productivity we found that banks of all sizes use micros. ” needs on a company-wide basis. Mi and profit first through micros will be the cros perform an array of accounting survivors.” — W a y n e K . N y s t r o m . — W a y n e K . N y stro m . 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E D IT O R ’S N O T E : M ic r o -c o m puters are am ong the hottest subjects in today’s banking circ les. In the p res en t c h a o tic fin a n c ia l m a rk etp la c e, ban k executives are discovering m icro com puters as a key to retaining their com petitive e d g e . As a result, a kind o f technological revolution has seized the banking industry, rapidly, dram ati cally and perm anently changing the way in w hich institutions conduct their d a y -to -d a y bu sin ess, m a r k e t th e ir products and serve cu stom ers. To gain an up-to-date perspective on th e e ffe c t s o f m ic r o -c o m p u te r s in b a n k in g , M id -C ontinent B anker e d ito rs ta lk ed w ith W ayn e K . Ny strom , p r e s id e n t/c o -fo u n d e r , I n fo w are, In c., a N ashville-based fir m sp e cializing in m arketin g, distributin g a n d servicin g m icro-com p u ter so ft w are f o r the fin an cial industry. Mr. Nystrom is an author, lectu rer an d ex pert in helping fin an cial institutions harness the p ow er o f new technology, especially m icro-com pu ters. MID-CONTINENT BANKER for March, 1 9 8 3 complete for around $5,000 or less in cluding some software. Plus, a micro is small, fits nicely on a desk top and can be plugged into any wall socket and be operable instantly. A micro can serve as a tim e-sharing term inal or as a means of gaining access to large data bases. Also, a micro-computer is user friendly. Q. What is meant by user friendly? A. This simply means the user of a micro-computer can operate it without knowing technically how it works. Furthermore, the micro itself teaches the user how to operate the machine. It’s estimated that with just a few hours of self instruction, anyone can learn to use a micro. Contrast this with the op eration of a mainframe computer that requires highly skilled data-processing professionals. Q. Naturally, this has contributed to the growth and acceptance of mi cro-computers in the workplace? A. Most certainly. That’s what this so-called “technological revolution” is all about. To op erate a m icro computer with great skill does not re quire you to b ecom e a tech nical wizard. As we’ve said, an yon e can operate a micro with just a little in- struction. However, like learning to read, as in language literacy, you have to learn some basics to become compu ter literate. Q. In 1982, approximately 2.8 mil lion m icro-com puters w ere sold worldwide. In your opinion, why have m icro-com puters p roliferated so quickly? A. I believe the more developed countries — the United States, W est ern Europe, Japan and others — must develop high-technology economies to survive. Labor costs are high; welfare costs are high. We have no choice but to become more productive fast! Q. All right, how widespread are micros in banking? A. Here at Infoware, we recently conducted a survey and discovered that 73% of the banking industry cur rently are using micros, and 77% of the nonusers are planning to begin using them this year. Also, we found that banks of all sizes use micros. Q. Let’s get specific. How are mi cro-computers being used in banking? A. There literally are hundreds of ways banks are using micros. The mi cro-computer is an excellent analytical tool to aid in the decision-making pro cess. In the Infoware survey, we dis- Survey Results Show High Interest In M icro-Com puters by Bankers S E V E N T Y -T H R E E p e rce n t of banks in the U. S. currently use micro-computers, according to results of a research study made by Infoware, a micro-software supplier to the bank ing industry, headquartered in Nash ville. (An interview on micro-com puters with the firm’s president/cofounder, Wayne K. Nystrom, begins on page 48.) The study, whose results were re leased last month, included these find ings: • Of banks surveyed, 73% currently use m icro-com puters, and 84% of these users plan to expand their use of micros in the next 12 months. • Of the 27% that currently don’t use micros, 77% have plans to begin using them in the next 12 months. • Apple computers are used cur rently by 60% of banks surveyed; 30% use the IBM personal computer (PC), and 14% use a Radio Shack TRS-80 model computer. The survey shows that these micro-computers were by far the most popular brand of micro computers used today by banks. Also, 18% of the banks use more than one brand of micro-computer. • Most popular types of micro computer applications were: Application % that currently use or plan to use with micro Asset/liability VisiCalc (general use) Budgeting Spread-sheet analysis Board report Safe deposit Interest-rate analysis Cash Flow Fixed-asset accounting 72% 67% 56% 48% 45% 41% 39% 37% 36% “These survey findings confirm what has becom e increasingly ap parent to many of us in the industry, ” says Mr. Nystrom. “Bankers’ accept ance and use of m icro-com puters already are quite high, and interest in micros is broad and continuing to grow at extraordinary rates. Our survey findings merely quantify bankers’ re ceptivity to use of micro-computers that already has been evidenced at banking conventions, micro seminars and at com puter stores all across America. ” • • MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis covered the most widespread use was asset/liability management (72%), fol lowed by general-purpose VisiCalc ap plications such as simple-yield analy sis, gap analysis to staff projections and new-product pricing (67%); budgeting (56%); financial-statem ent analysis (48%), producing board reports (45%) and safe-deposit accounting (39%). Micros also perform modeling for in vestment research, interest-rate fore casting, economic modeling and tax projections. Word processing is a big function, as are teaching and training of employees. But perhaps the most exciting applications — and the ones with the most important implications for a bank’s survivability — are in m arketing. Q. Tell us about it. A. Just as micros are the key to in creased productivity in banking, they also are a means of increasing profits. Take direct selling for example. Today there is a plethora of alternatives open to a prospective customer who goes into a bank asking about services avail able. Is it reasonable to assume a bank representative can answer a prospect’s questions adequately or make in formed recommendations about all these services? However, using a properly programmed m icro-com puter, an employee can gather in formation from the prospect, feed it into the micro and instantly obtain answers and give sound financial advice. Interestingly, Infoware last month introduced a new software package for this purpose. Called RB3™ Relationship Banking System, the soft ware will dram atically im prove a bank’s ability to attract, maintain and enhance its relationship with custom ers. Q. How about marketing applica tions other than direct selling? A. Micros also are being used to store names and addresses of prospects and customers for direct-mail or tele phone follow-up. Marketing analysis also is a key function micros do well. For example, you can record and analyze new accounts, accounts that have closed or results of various cus tom er-profile and service surveys. Banks can spot trends in their custom er base and respond quickly. Q. Typically, who uses the micro computer in a bank? A. Just about everyone from the CEO on down to the customer-service representative! Last fall at the ABA convention, a large number of bank presidents who already were using micros stopped by our exhibit booth. Many were just getting their feet wet, gaining some basic understanding of the use and power of the micro. And 49 they were really excited. We also see a lot of micros in the comptroller’s office, in accounting departments, planning departments and even on senior man agers’ desks throughout a bank. They’re multiplying rapidly in the workplace. Q. Are micro-computers really cost justified? A. Definitely. As I said, the cost of employees is rising constantly, and im proved productivity is essential for im proved profits. I read recently that if a typical middle manager saved less than 30 minutes a day, the micro’s cost was justified on this time savings alone! And this doesn’t take into account the capability to be more accurate and thorough in evaluating alternatives and problem solving. Q. So tell us — do you use a micro computer on a day-to-day basis in your office? A. Yes. I use one for everything from developing financial forecasts for our investors to payroll planning, product pricing and evaluating trends in our d irect-m ail-m arketin g program. I even use a micro for my personal budget and working with the finance committee of the condominium asso ciation where I live to review our oper ating budget. So, I ’m hooked like ev- / •\ Just when you need it, Thunderbird has it. Banking isn't as simple as it once w a s-a n d neither is the terminology Now, Thunderbird Financial corporation has a handy, easy-reference glossary of terms and phrases most commonly used in the financial industry to describe products, regulations and procedures. Its ideal for outside directors and new employees... and it can help even the most seasoned personnel explain complex financial terminology. Cross referenced three ways: Alphabetically, By report usage, By banking function, with short forms and most commonly used titles EDUCATION & TRAINING DIVISION Thunderbird Financial corporation P.0. BOX 1608 - Shaw nee, OK 74801 (405) 275-0510 Order yours today! Please send me one copy of the Glossary of Banking Terms. I enclose $9.95, plus $2 postage and handling-----------Please send m e ______ copies. (If ordering 10 or more copies, you receive a 10% discount and pay no postage and handling) Nam e__ Bank__ Position Address City___ .State .zip I would also like information on Thunderbird's other services and products for the banking industry: □ Schools and seminars □ Banking products □ Employment search □ Data processings software □ Specialized/consulting services 50 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ery other micro user I ’ve met. And for an investment of under $5,000, there’s no question it’s cost justified to be come computer literate in a society that’s becoming increasingly technolo gically oriented. Q. Be honest. Can’t a bank’s main frame computer or service processor do the same things that can be han dled by a micro? A. Technically, yes. But you have to ask whether it’s cost effective. Does it make sense to tie up a computer that costs hundreds of thousands of dollars to accomplish what a micro can do? You wouldn’t hire a Greyhound bus to take your family to the beach; you’d go in your car. Also, because there literal ly are hundreds of micro-computer software programs already developed to take care of many banking needs, its ridiculous to absorb a bank’s program ming staff for weeks or even months to evaluate an application, develop the systems design, program and test the computer and write the documenta tion. It’s just so much easier, quicker and less costly for applications not re quiring horsepower to use the micro. Q. So how do micros fit into a bank’s overall data-processing picture? A. Micros help, not threaten dataprocessing managers because they take the load off for those special, inde pendent applications that are hard to justify. Already, some banks are tying micros into their mainframes to access vital internal information. But that’s the exception. Most micros, at least for now, will be used entirely indepen dent of the central data processing de partment and DP managers should not oppose the decision to use micros. Af ter all, data processing doesn’t use a pencil, paper and calculator to tell a department manager how to prepare his or her budget. Why be concerned if that manager now uses VisiCalc on a micro to perform the same budget analyses — more effectively and effi ciently? Q. You mentioned software. Just how important is it? A. It’s the difference between suc cess and failure with a micro. The com puter is just useless iron without prop er instructions. Think of the micro as a record player and the software as your record album. You decide whether to listen to jazz, rock, country, punk whatever. Similarly, with software you easily slip in a diskette with instruc tions for asset/liability management, or switch to payroll projections or statis tics on new-product promotion. Q. Your company provides soft ware for many of the country’s leading banks. How should a bank go about getting into micro-computers? MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FAMILYOF BRANDT. A NEW GENERATION O F MONEY SYSTEM S Now, a hybrid of microprocessor technology and performance engineering makes Brandt money handling a whole new experience. Microsort.™ The Model 986 coin sorter/ counter earns its reputation daily. It gives you the most reliable count in the industry. And, a paper tape audit trail that lets you balance faster at day end. It’s simply a smarter way to count coin. 2780 Series Teller Term inals. Now there’s an alternative to costly on-line teller systems. Brandt’s new micro processor teller terminals offer the economy of free-standing units, yet can be upgraded should you decide to go on-line! M odel 1800. Flagship of the new breed in automatic coin wrappers. It’s the American made auto wrapper that breaks with tradition. At a sprint speed of 30 wraps a minute! M odel 958. Human engineering means volume coin counting. Model 958 lets you through-put up to $6,000.00 per hour. Two hard working Brandt core sorters make the difference in medium to high volume mixed coin processing. M odel 856. Brandt interfaced coin and currency counting through a micro processor to create automatic cash settlement. Combining the new 862 currency counter and Model 955/57 coin counter, Model 856 deciphers totals and provides a paper tape audit trail that will speed deposits through your vault! B randt m oney handling systems. The next generation. A. Richard Trippeer, president of Union Planters National in Memphis, provided excellent guidance at the re cent MicroScope conference when he explained how his bank encourages ev ery department to identify applica tions for the micro and to get started now. No committee studies, no hassle, just management’s blessing for them to harness the new technology to im prove productivity and profits. Q. You seem to be emphasizing the importance of moving quickly. A. By all means. My advice to every CEO is to get your bank started in micro-computers now, at least on a limited basis. Let your employees get hands-on experience and start becom ing micro-computer literate. The cost is so low and benefits so great in terms of productivity and profits. Q. Wouldn’t it be better to hold back and see what new and better technology develops? A. Deciding to sit on the sidelines could be fatal. Micros are here to stay. Those who are the first to harness the power will be the winners. Banks that learn to improve productivity and profit first through micros will be the survivors. Those who wait will find their competitors have surpassed them on every competitive front — through customer service, productivity, man agement decision making and market ing. Q. In your opinion, what does the future hold in term s of m icro computer use in banking? A. Micros will continue to enjoy widespread acceptance on all fronts. In fact, some banks already are tying in their micro-computers with customer home computers for improved service. Micros also will help banks reduce per sonnel simply by programming micros to interact with customers and pros pects. And micros will be tied to video and sound to open up exciting selling possibilities at the bank, in the home or remote locations, such as offices, shopping malls and other high-traffic areas. Q. What about obsolescence? A. The Apple II already has been around for seven years and has just been upgraded to the Apple II E. Hardware improvement should stabi lize. The growth area is in software. Besides, even if the machines change dramatically, the initial investment is low relative to immediate and longrange benefits. Q. Do you believe the price of mi cro-computers will come down? A. Yes, hardware prices will decline to a degree. Or put another way, you’ll get more computer power for your dol52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis contained diagnostics. It operates on line to a central computer using stan dard IBM , Burroughs and MCR com munications procedures. Consum ers are guided through transactions by instructions provided on the alphanumeric display. Consum er prompting can be designed to match ATM prompting formats currently in use by the institution. The units are priced below $5,000, according to the manufacturer. School Dates Set The Bankers School for Supervi sory Training, sponsored by the Louisiana Bankers Association, will hold two identical sessions this year: May 15-20 and June 5-10, both on the campus of the University of Southwestern Louisiana in Lafay ette. The 10-year-old school previously was known as the Louisiana Banking School for Supervisory Training. Its name was changed to reflect the wide participation of bankers from a broad geographical area, says Wil liam F. Staats, program director. In each of the prior sessions, according to Mr. Staats, bankers attended from about a dozen states. More than 2 ,000 bankers have attended the school. Capacity for the 1983 sessions has been increased be cause the number of bankers reg istering has exceeded space formerly available. For information on the school, contact: Hudson Akin, Louisiana Bankers Association, P. O. Box 2871, Baton Rouge, LA 70821. Harris Bank Subsidiary Seeks Futures Status lar. However, I don’t see prices declin ing on software. It’s still labor inten sive. Q. What’s your advice to the banker contemplating a micro-computer in vestment? A. Again, I emphasize, don’t wait. Your competition certainly isn’t. Get involved personally on some level and witness for yourself how easy it is to learn to operate a micro and what it really can do for you in terms of pro ductivity and profit. • • New Banking Terminal Seen As Alternative to ATMs What is termed a major cost/performance breakthrough in consumeroperated banking terminals has been introduced by Datatrol, Inc., a sub sidiary of Applied Devices Corp., Hudson, Mass. The firm’s FT-3264 Consumer-Operated Banking Termi nal is described by the manufacturer as a cost-effective ATM alternative. The terminal permits customers to access balance inform ation, cash checks, approve withdrawals, make deposits and transfer funds between accounts. It is said to reduce lobby congestion and improve teller produc tivity by authorizing routine transac tions. It can provide banking transac tions at retail locations. The microprocessor-based terminal features a keyboard, alphanumeric dis play, magnetic stripe card reader, re ceipt printer (with optional audit jour nal), depository interface and self- CHICAGO — Harris Bank’s sub sidiary, Harris Futures Corp., has ap plied to the Commodity Futures Trad ing Commission (CFTC) for registra tion as a futures-commission m er chant. The new bank subsidiary will offer its customers and others financialfutures services, including execution and clearing of financial futures con tracts on major commodity exchanges. The move was described as “a natu ral outgrowth of our expanding par ticipation in the futures markets’’ by Dennis E. Lejeune, executive vice president, investment department. Multiple-Interest Deposit System Introduced by Computrol A system that permits banks to offer an adjustable/flexible d ep o sit-in strument mix is being offered by Com putrol, Inc., St. Louis. The IRAK multiple-instrument de posit system is said to eliminate the burden on bank operations and data processing of accommodating new instuments with varying interest rates, maturity dates and terms. It enables instrument variations to be handled by bank user personnel with little or no data processing assistance. Depositors set their own disburse ment plans and change, add or sus pend instuments at will. Once an account relationship has been estab lished, new deposits can be made to an instrument or new instruments pur chased through the teller, eliminating waiting in line for new-account repre sentatives to make deposits. Users can utilize and benefit from the system, having total control over customer data and reporting formats. Data fields can be changed, added or deleted from files without program ming or involvement from data proc essing because the system has a data dictionary system. File definitions are maintained within the dictionary in stead of within each individual pro gram, which elim in ates program maintenance related to file changes. MID CONTINENT BANKER for March, 1 9 8 3 Nothing Reaches Your Financial Market States Banker Like United States Banker Every banking institution with assets of $50,000,000 or more is covered. That’s 90% of the market. Senior officers in commercial banks, savings & loan associations, mutual sav ings banks, insurance companies, credit unions, investment and finance firms all read United States Banker. The in-depth analysis of current financial issues makes U .S. Banker essential reading for these leading executives. Tell your story in this authoritative editorial climate to a dynamic and recep tive audience. Why segment your adver tising effort when you can sell all the most important areas of your financial market in U .S. Banker? MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis For a complete media file, return the coupon below or call Angela Moran at (203) 661-5000. Please send a complete media file on United States Banker to: Name_________________________________________ T i t l e _________________________________________ C om pany_________________________________ ____ Address_________________________________ City___________________ State________ Zip________ Telephone_____________________________________ Return coupon to: United States Banker One River Road, Cos Cob, CT 06807 52A Micro-Computers (C ontinued fr o m p age 42) appropriate for commercial banks. They must turn to other sources, such as insurance firms, pension funds, etc., for this type of financing. M ichael T. Higgins, president, Overland National, Grand Island, Neb., told bankers about future bank ing products and how to make the most of them. He stressed that bankers must assume new marketing attitudes be cause banks find them selves in a buyers’ market. This forces them to switch from product orientation to cus tomer orientation, a change as dramat ic as going from horses to jet planes. Banks must be restructured to deliv er new products to customers, he said, and these new products must be tail ored to meet customer needs. How to determine the new products/services? Listen to customers, he said, focus on their needs, not the bank’s needs. Customers feel they de serve better products/services and they are demanding them. They have the option of going to nonbank institu tions if they become dissatisfied with banks. If banks don’t find a way to offer fixed-rate loans, Mr. Higgins said, Sears will. The customer has all the votes in the buyers’ market — some thing that has never happened before to banks. Bank custom ers want all-in-one monthly statements, he said. This is the number one need of high-balance clients. They also want equitable pric ing, personal-banker service, insur ance and one-stop financial services. They want discount-brokerage ser vices. They prefer to deal with banks rather than thrifts and investment houses. Mr. Higgins gave bankers a list of services banks should consider offer ing: • Financial planning. • Investm ent counsel, including securities, real estate, precious met als, etc. • Insurance, including personal and family, accident and health, liability, etc. • Beal estate sales and purchases. • Transaction instruments, includ ing E F T and wire services. • Besource acquisition, including loans, hedging, bankers acceptances, etc. • Besource placement, including bill payment, discount brokerage, money-market funds, etc. • Estate planning. He said 70% of the above services generate fee income, while others generate commissions and others pay off through spread. He said his bank was the first in its HC to offer a discount brokerage ser vice. From 30%-80% discounts are offered; the higher the volume of trade, the higher the discount. The local broker has begun offering dis counts to the bank’s customers, but not to others. Fifty percent of the bank’s discount brokerage accounts are new to the bank. The service is good for the customer, he said, and it has excellent cross-sell opportunities, brings in fee income and leads to good financial re lationships. The bank solicited high-balance cus tomers and invited them to a cocktail party by formal invitation. All the in vitation said was that the bank was going to make an announcem ent. Almost everyone invited appeared, which was about 300 people. The bank hoped to get 30 active clients in the first year, but got 67 instead. And the volume is almost 50% higher than ex pected. An interesting point: almost 50% of the bank’s discount-brokerage Investment Panel Predictions for February, 1984 Fed Funds Prime Rate 1-Yr. T-Bills 7-Yr. Govts. 10-Yr. Munis Rediscount Rate Gold Dow-Jones 52B https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hollister Rowe Spinner 10 V* 13 11 123/4 9 IOV2 $675 1090 73/4 93/4 8V4 9 ’/2 7 8 $450 1250 10’A 13 11 12 8V2 10 $600 985 Participating in investment panel at con ference were (from I.) Frank K. Spinner, moderator, and ch., County Bank of Tower Grove, St. Louis; Hal R. Hollister, e.v.p., United Missouri, Kansas City; John W. Rowe, s.v.p., Centerre Bank, St. Louis; and Darryl R. Francis, ch., Merchants Nat'l, Fort Smith, Ark. custom ers w ere not on the highbalance-customer list! Speaking on the state of the econ omy was Darryl R. Francis, former president, St. Louis Fed, and now chairman, Merchants National, Fort Smith, Ark. Mr. Francis said there’s plenty of evidence that the recession has bot tomed out. He predicted a gradual re turn to higher levels of economic activ ity. Consumers could slow recovery if they continue to save instead of spend. They are cautious because of high un employment — they want a nest egg of savings in case they find themselves on the unemployment rolls. Although the inflation rate has de clined dramatically, he said, the battle has not been permanently won. He predicted a rekindling of inflation by as early as mid-year; it must begin soon because of the stimulators the Fed has put in place. He predicted the federal deficit will be much more than $180 billion this year, and added that a competition for funds will develop between business and government before the end of 1983. He doesn’t expect the prime to go much lower; pressures for credit by mid-year could cause interest rates to rise. He predicted an “easy’’ Fed poli cy for the time being. As times get better, interest rates and the inflation rate will rise. Closing event on the program was the traditional investment panel, mod erated by Frank K. Spinner, chair man, County Bank of Tower Grove, St. Louis. Panelists included Hal R. Hollister, executive vice president, United Missouri, Kansas City, John W. Rowe, senior vice president, Cen terre Bank, St. Louis, and Mr. Fran cis. The accompanying chart shows how panelists see the state of the economy in February, 1984. The majority of in dicators will be up if, panelists are cor rect. — Jim Fabian, senior editor. • • MID-CONTINENT BANKER for March, 1 9 8 3 A r c h it e c t u r a l E x p e r ie n c e To be successful, an architectural design must provide more than aesthetic satisfaction. It must function as planned. That takes experience. And there is one uncompromising reality when it comes to the design of financial facilities. There is no substitute for experience. When planning new or remodeled quarters, you expect to retain the services of experts. You want them to be aware of your special needs and those of the community you serve. They should also be specialists in the unique requirements of financial institutions...experienced in facility design, space and function planning, security, customer service needs, equipment, furnishings and traffic control. In today s environment, the penalty for making the wrong architectural decision can be severe. We help protect your investment by sharing with you the advantages of our experience. For more information call Tom Spalding 8 0 0 -3 2 5 -9 5 7 3 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Building Corporation 1130 Hampton Avenue St. Louiis. MO 63139 800-392-9168 (In Missouri) Meeting the needs of the community you serve...by design. 4^ Bank Building Corporation Innovation. Vision. InnoVision™ A new word for a new world. InncMsionSMmeans excellence in this electronic age. For us and for you. It means looking the future in the eye and creating new infor mation and data-processing ser vices to meet the challenges. InnoVisionSM springs from a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Services that make you more dynamic combination of the right ideas, the right systems and the efficient, keep you abreast of high-tech escalation and help right timing. It’s a combination that now de you excel. Your bank needs InnoVisionf livers advanced information ser To see where it’s going. vices nationwide. And to make sure it gets there. Call us at (901) 523-6716. Ask for David Hayes, D irector of Computer Services. liu W is io n The Information Company of Union Planters Corp. Money-Center Services Offered by Community Bank With Outside Expertise AK BRO O K BANK, with an operate zero-balance, concentration processor for financial institutions. asset base of about $115 mil and draft activity; to process checks, FC D C is an item and data processor lion, is a medium-sized bank that has produce cash letters and speed checks for more than 100 Midwest financial successfully launched a unique through Oak Brook’s direct-send and institutions. Because its hardware and marketing strategy in which it offers corresp on d en t netw ork. Sim ulta software are shared by many, it has the products usually available only neously, these computers electron enormous base that makes responsive through large money-center banks. ically transmit information to First ness possible and profitable. Oak Located in Chicago’s western sub Chicago Data Corp. (FC D C ), the Brook Bank’s “boutique approach” urbs, Oak Brook lies in the midst of bank’s outside data center in down teams up nicely with FC D C ’s mass corporate and regional headquarters of town Chicago, where the bank’s mas merchandising formula. many Fortune 1000 and other public ter files are stored. There, the bank’s FC D C does even more. Some sys companies. Because of its prime loca files are au tom atically updated, tems development works best with tion, its management decided to for accounts posted and information about FC D C ’s master files, which have mul sake the traditional retail orientation of balances, overdrafts, etc., is transmit ti-bank application potential. So, when oth er suburban banks in favor of ted electronically back to the Oak Oak Brook Bank wanted to develop a emphasizing commercial needs of the Brook office. computerized profitability statement Chicago corporate community. The strategy appears to be paying off. In the six years since this strategic plan With regulations being eased and the financial-services industry be was formulated, Oak Brook Bank has coming increasingly competitive, more and more small and mid-sized more than doubled its asset base and, banks will turn to information-management experts to help them com more significantly, tripled its demand pete for attractive retail business. deposits. Its customers include some of the biggest names in business and industry. This computer hookup between Oak permitting the bank to track account According to Richard M. Rieser Jr., Brook and FC D C , while by no means a and service activity so it can assess fees vice chairman, “We started calling on unique experiment, seems to reflect or require com pensating balances big corporations. But when you offer the beginnings of a trend for the more commensurate with the customer’s them less than a $50-million line of sophisticated medium-sized banks. use, it sought out FCD C. Oak Brook’s credit, they really don’t have a lot of Mr. Rieser says, “Oak Brook Bank is specs became the basis for the new interest in your credit services. They focusing on the human side. Our chief account-analysis system now available said to us, “W e’d like to do business selling points over our giant competi to FC D C ’s 100-plus bank customers. with you. Do you offer cash-manage tors are the quality, dependability, Oak Brook Bank also wanted to ment services?’ ” price and flexibility of our services. We streamline its retail operations so it Mr. R ieser says, “ In itially , we employ a high-quality work force, who could devote more of its staff to its weren’t sure what they needed, but we handle volumes manageable during commercial base. With FC D C ’s help, learned quickly.” normal business hours. We assign the the bank has automated its lobby op Today Oak Brook Bank has a corpo same officers to a relationship year af eration. New computerized teller ter rate banking department that offers ter year. We offer price reductions by minals were installed to replace their payroll processing; automated check operating in a lower overhead environ “glorified adding machines and blot and draft reconciliation; cashiering; ment. We routinely modify our sys t e r s .” The term inals have on-line manual and automated lockboxes; con tems to meet the needs of major cus alphabetical and numerical access to centration, zero-balance and con- tom ers. N aturally, we cannot be the bank’s customer data base, which trolled-disbursing accounts — the spending our time modifying an ex is updated and stored in FC D C ’s cen same cash-m anagem ent services isting cash-management system for a tral computers. offered by money-center banks. particular company if we also are keep “The new terminals afford us greater To m eet its clien ts’ needs, Oak ing up with data-processing require secu rity because they check all Brook’s management has made the ments for the new m oney-market account balances. In the past, tellers capital investments necessary to han accounts or interest withholding. We checked only in instances where cus dle on premises many functions tradi would rather rely on outside help for tomers were making large withdraw tionally delegated to an outside data general information management.” als,” Mr. Rieser says. center. For example, Oak Brook Bank Hence, Oak Brook Bank’s special D espite its current emphasis on has its own computers to produce the partnership with First Chicago Data commercial business, Oak Brook Bank kinds of instantaneous data needed to C orp., a broad-based information is looking at one particularly attractive O MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 Youearn income fromoutgo when the PaperTiger handles your Official Checks. Your disbursements earn reimbursements—substantial cash income —when you have Travelers Express—the Paper Tiger—handle your Official Checks. You’ll make a substantial profit while we perform all the reconciling, storing, tracing, filing and payment stopping. You free up expensive employee time, you don’t pay for your customized drafts and you maintain financial control. You should see what we can do for your Money Order program, too! For more information call 1-800-328-5678 and ask for Gene Lewis. Travelers Expressly workingfor you. UTrsvcIcrs Express A GREYHOUND rnvtPANY COMPANY ■ 5 0 7 5 W a y z a ta B o u le v a rd , M in n eap o lis, M N 554 1 6 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for March, 1 9 8 3 When CInion National Banks Personnel Consulting Agency helps your financial institution find and hire an officer, our service comes with an unusual promise: You’ll be fully satisfied with the individual or we’ll give you your money back. Not 50% or 75%, like ordinary employment agencies. Not a prorated figure based on how long the individual works for you but 100% of our fee. Every penny. Or, if you desire, we’ll try again. For top level managers, you and the candidate have as long as six months to try each other out For middle and junior managers, three months. If everyone is not fully satisfied, you can call the deal off and get your money back. Or let us locate another candidate. It’s up to you. How can we afford to make such an offer? Because at Onion’s Personnel Consulting Agency, we’re professional financial people placing professional financial people. We’re in the banking business every day and we know what it takes to place the right person in the right job, for banks and savings and loans. So we do it right the first time. So we can make this simple promise: Satisfaction guaranteed or your money back. Union National Bank Personnel Consulting Agency Call Jo e Zegler or Linda Reh at (5 0 1 ) 3 7 8 - 4 2 5 7 . (In Arkansas, call toll free 1 -8 0 0 -4 8 2 -8 4 5 0 .) Or write to CInion National Bank Personnel Consulting Agency, Suite 1 0 3 0 , Onion National Building, Little Rock, AR 7 2 2 0 1 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Now, M ore Than Ever, You N eed INSTASIGN® With more to sell than ever before (and more to sell against), your customers need a current, easy to read, attractive display to sort out what you have. INSTASIGN® (patent pending) is the solution. This changeable display does it all because it is: • Totally changeable and flexible, to grow or contract as your marketing needs dictate A n investment of $ or more in a 2,500 • Totally usable, thanks to InstasetTM, our unique copy making system Money Market Account • T o ta lly yours, w ith its variety of colors, sizes and styles • Totally proven, by hundreds of banks with thousands of branches nationwide will earn for you • Totally economical, at a fraction of the cost of other magnetic displays M ake th e b e a u tifu l la s tin g s o lu tio n in v e s tm e n t th a t b rin g s in IN S T A S IG N , o rd er a n d g iv e s y o u th e c o m p e tit iv e e d g e . fro m th e chaos segment of the retail market as an area for future expansion. “Providing pro fessional and executive banking ser vices seems like a natural adjunct to what we re already doing,” Mr. Rieser says. Oak Brook Bank has targeted a tough market segment in one of the most competitive banking states in the country. Fortunately, it has an ally in its effort. First Chicago Data Corp., with its retail expertise, gives Oak Brook Bank all the capabilities of a much larger institution, but without the cost of maintaining its own retail data base. W ith regulations being eased and the financial-services indus try becoming increasingly competi tive, more and more small and mid sized banks will turn to informationmanagement experts to help them complete for attractive retail business. Visual Control Systems, Inc. 50 Watts Street, New York, NY 10013 212 925 7575 Designed for the busy executive — The nation’s newest and most com prehensive Financial Institutions Directory is now available. McFadden’s new Savings Directory when combined with its American Bank Directory becomes a handy 3-volume directory of American Financial Institutions. Each listing contains: city, population, mailing address, memberships, phone numbers, top officers/titles, financial data and much more! COMPLETE DIRECTORY — American Financial Institutions — Yes, I want all the nation’s top financial institutions in one complete directory: □ Send m e ______ copies of the 1982 AFI @ $130 ea. □ Enter standing order for each Spring AFI @ $105 ea. □ Enter standing order for each Spring AFI @ $90 ea. and stand ing order for Fall American Bank Directory @ $60 ea. (plus shipping and handling) SAVINGS DIRECTORY — American Savings Directory — Yes, I want to add this volume to my library to include savings and loans, mutual sav ings banks, major credit unions and money market funds. □ Send m e ______ copies of the 1982 ASD @ $65 ea. □ Enter standing order for each Spring ASD @ $50 ea. □ Enter standing order for each Spring ASD @ $50 ea. and stand ing order for Fall American Bank Directory @ $75 ea. (plus shipping and handling) □ SEND ME MORE INFORMATION PLACE YOUR ORDER TODAY! Mail to: McFadden Business Publications, 6195 Crooked Creek Rd., Norcross, GA 30092. COMPANY NAME ADDRESS 58 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE ZIP MID-CONTINENT BANKER for March, 1 9 8 3 If you’ve been eyeing the lucrative leasing market you know what it would cost. B e f o r e y o u even b o o k y o u r f ir s t l e a s e you could pay up to $50-150M for legal research, qualification requirem ents, data processing programs, promotional materials, and an expanded staff. Yet hundreds of banks just like yours are getting into leasing. W hat’s the key? The key is Bank Participation Leasing from Col lateral Financial Services. W ith Collateral Financial Services’ help you can add a lease program without adding to your staff. CFS takes care of the billing, collecting, taxes, marketing, documenting, and finan cial reports. They also provide the training you need to determine the lease contract and the amount of investment you would like to make in the lease. (You can make an investment of as little as 10% or as much as 75%). W ith Bank Participation Leasing you serve valued custom ers on a direct, personal basis. You attract new custom ers. And you can do it without Digitizedhigh for FRASER start-up costs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open the door to your own leasing program, call CFS or send in the coupon below. COLLATERAL FINANCIAL SERVICES INC. I want to find out how easy it is to enroll in your leasing program. Send me the brochure “How To Tap Into The $150 Billion Leasing Market.” .Title. Name. Institution. Address__ .State. Mail to: COLLATERAL FINANCIAL SERVICES INC. Corporate Offices 444 Lafayette Road St. Paul, MN 55101 612/222-7792 ESPECIALLY FOR BANK DIRECTORS . . . Program s d esigned to provide inform ation and opp ortu nity for discussion o f issues and tren d s in ban king vital to bank d irectors in m eetin g th e ir resp o n sib ilities and liab il ities. . . . P ro m in en t ban kers and sen io r national reg u la tory officials as sp eakers and discussion lead ers. . . . S p o n so re d by th e S o u th w e ste rn G rad u ate S ch o o l of B an king F ou n d atio n at S o u th ern M eth o d ist U niversity. A SS EM B LIE S F O R B A N K D IR E C T O R S CALENDAR October 23-26, 1983 ° April 12-15, 1984 The Hvatt on Hiltonhead Island at Palmetto Dunes, Hiltonhead Island, South Carolina The Greenbrier White Sulphur Springs West Virginia Assembly 54 November 3-6, 1983 The Fairmont New Orleans Louisiana _____________Assembly 57 September 1-4, 1984 The Broadmoor Colorado Springs, Colorado Assembly 55 February 16-19,1984 Assembly November 8-11, 1984 Hyatt Regency Maui, Hawaii Assembly 58 The Arizona Biltmore Phoenix, Arizona 56 Assembly 59 For inform ation, write or call: Dr. Alan B . Coleman or M rs. Nancy Griggs SM U B o x 214 D allas, Texas 75275 Telephone: 2 1 4 -6 9 1 -5 3 9 8 or 2 1 4 -6 9 2 -2 9 9 4 Cut costs (up to 40%) when you replace lost or damaged carriers: call Golston Co., tollfree, f -800-433-5526. 27 models to meet your requirements • Choose from end-opening or side-opening • Transparent Lexan or aluminum bodies • Molded eldstomer or felt end 60 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bumpers • Optional In-bank color coding • 11 standard colors. A complete Golston Co. catalog and trial carrier plan are available. For personalized service, Webb Golston and staff Low Cost, Movability In Turnkey-ATM Units, Says Manufacturer A turnkey-A TM program is avail able from F e d e ra l Sign, B u rr Ridge, 111., to m eet in creasing dem and by financial institutions for ATM rem ote facilities. Fed eral Sign, a division of F ed eral S ign al C o r p ., offers b o th p re -e n gineered and custom m odels. It also designs, builds, delivers and installs th e co m p le te ATM u nit, in clu d in g professionally designed signage and graphics reflecting the im age of the individual financial institution. Fed eral sign’s m odular ATM design includes factory-installed heating and air-conditioning system s. A ch oice of configurations is available, including outdoor walk-in units, outdoor driveup and self-contained indoor facilities. They also can be custom designed to m eet cu stom er specifications. F ed eral Sign says a m ajor advantage of these p re-en g in eered units is re duced installation tim e, com p ared to ATMs con stru cted locally on-site. B e cause of their m odular design, F ed eral Sign points out, th ese new units also can be m oved easily to new locations when m arket areas change. In addition, says F e d e ra l Sign, p re en g in eered units offer con sid erab le savings when com p ared to those built on a one-tim e basis by a local con trac tor. The latter, according to F ed eral Sign, often resu lt in cost overrun s, w h ich p re -e n g in e e rin g e lim in ates, since the units are p re-p riced at a firm cost before being m anufactured. Through its turnkey-ATM program , F ed eral Sign works directly with cu s tom ers from a p ro je ct’s inception. The firm ’s professionals plan the design and o v ersee installation p roced ures, in clu d in g th o se re q u ire d by local codes. can help you choose a carrier for your system • Call today. GOLSTON CO. P.O. Box 856, Sanger, TX 76266 1-817-458-7496 (In Texas, call collect) toll -free 1- 800- 433-5526 This is example of turnkey-ATM unit offered by Federal Sign, Burr Ridge, III. MID-CONTINENT BANKER for March, 1 9 8 3 JEANIE CAN DO! FIFTH THIRD HAS THE ELECTRONIC BANKING AND APPLICATION SYSTEMS OF TOM ORROW ... ON-LINE TODAY! On-line with all major ATM brands NOW YO U ‘ CAN DO!” A new teller named Jeanie is going to work today for many financial institutions. She can serve customers 24 hours a day, 7 days a week via Diebold, Docutel. IBM , and NCR auto mated teller machines (ATMs) and any Touch-Tone* phone. Why not call the pros at Fifth Third and put Jeanie to work for you and your customers? On-line in 7 states ENJOY MAXIMUM ELECTRONIC BANKING CAPABILITY, FLEXIBILITY AND RELIABILITY! Fifth Third’s Midwest Payment Systems (MPS) Division supports over 250 “direct attached” on line ATMs and one million plastic cards in over seven states. Jeanie’s current participating financial institutions range in asset size from $9 million to over $2 billion. Jeanie cardholders can use on e card to access m u ltip le checking, savings, investment and credit relation ships or even pay bills electron ically at any Jeanie ATM or Touch-Tone phone. You can even let your VISA® and Mas terCard® customers use Jeanie. MPS can provide your institu tion with a number of cost effec tive back office data processing options all the way from a complete on-line central information file to simply “switching’ transactions and information to your in-house your computer or cardholders service bureau. Jeanie also does not take vacations and she is a very reli able performer. The MPS Network Control \ Center continuously moni tors all electronic banking devices to minimize machine failures that can incon venience your customers. TAKE ADVANTAGE OF ALL ON-LINE APPLICATION SYSTEMS! On-line with any Fifth Third has a Touch-Tone phone complete assort ment of on-line applications sys tems including all Loan and Deposit products plus Trust, Investment, Financial Control, General Ledger and VISA/MasterCard credit and debit processing. These systems provide great flexi bility for you to design and implement unique products for your market place. Also, all customer relationships and management information are at your fingertips On-line at point of sale MID-CONTINENT BANKER for March, 1 9 8 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis with the most sophisticated central information file available. DATA PROCESSING SERVICES FOR TODAY...AND TOMORROW! Fifth Third has made a major commitment to on-line applica tion processing, plus ATM, ^ (3 ) \ home banking and point-ofsale elec tronic delivery system support. ** J Why not associate with some one who has the proven systems, equipment and tech nical support staff already in place to meet the many challenges and opportunities facing today’s financial service industry? Call or write Tom O’Donnell, Peggy Golden, Charlie Wilson, Bill Hagedorn or Tom Padgett and learn more about Jeanie and Fifth Third’s other on-line data processing services. Why wait until tomorrow when you can go “on-line” today? a CALL TO L L -F R E E 8 0 0 -5 4 3 -7 2 1 1 IN O HIO : 8 0 0 - 5 8 2 - 7 2 9 6 BD FIFTH THIRD BANK © Fifth Third Bank, 1982 Member: FDIC/Federal Reserve System ® Reg in U S Pat & T M Off. 'R e g is te re d Trademark of AT&T Co 61 Officer Changes Announced By CSBS After Edwards Resigns Commissioner Post W A S H IN G T O N , D. C. — Sidney A. Bailey, com m issioner of financial in stitu tio n s for V irg in ia, has b e e n nam ed ch airm an /p resid en t, C o n fer e n c e o f S ta te B an k S u p e rv is o rs (CSBS). H e succeeds M ichael D. E d wards, who resigned as supervisor of b an k in g in W a s h in g to n s ta te la st m onth. William C . H arris, com m is sioner of banks/trust com panies in Illi nois, was elected p re sid e n t-e le ct of C S B S , succeeding M r. Bailey. Suc ceeding Mr. H arris is Paul J. Am en, d irector of banking/finance for N ebras ka. banking. M r. Edw ards found him self in opposition to his boss, G overnor Jo h n S p e llm a n , as w e ll as th e W ashington Bankers Association. M r. Bailey has been Virginia’s bank ing com m issioner since 1977. As C SBS p re s id e n t-e le c t, he w ould have as sum ed the ch airm an/presid ent posi tion in May. In the past, he has served the C SBS as one of its ch ief spokesm en on federal legislative and regulatory issues in W ashington, D. C. M r. H arris, new C SB S p resident elect, has b een com m issioner of banks/ trust com panies in Illinois since 1977. H e previously was a state legislator. H e had b een C SB S vice p resident and is exp ected to be re e le cte d p resident e le ct of the association at its annual convention in May. Structure, Management Changes Announced by Manny Hanny EDWARDS BAILEY HARRIS O ther changes on the C SB S board w ere announced. R obert E . Stew art, Texas banking com m issioner, has been nam ed vice chairm an or alternate to the board in district four to fill a spot created w hen Glen F . R itterb u sch , d irector of banking/finance for South Dakota, was elevated to su cceed M r. Am en. Also, Thom as H. H uston, su p erintendent of banking for Iowa, was nam ed to fill the board vacancy created by the death of Thom as E . P ederson, W isconsin’s form er banking com m is sioner. T he C SB S to p -lev el v acan cy was created when M r. Edw ards resigned his post as W ashington banking co m m issioner rather than support a p ro posed bill in his state that would p e r mit state-ch artered com m ercial banks to invest up to 15% of th eir assets in e n te rp rise s n ot d ire c tly re la te d to 62 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N E W Y O R K — M a n u f a c tu re rs H anover T ru st has announced a new o rg an izatio n s tr u c tu r e and re la te d m anagem ent prom otions for the retail banking division. W illiam A. Buckingham has b een elected vice presid en t/d ep u ty general m a n a g e r in c h a rg e o f th e b ra n c h banking group. H e has b een p resi dent, M anufacturers H anover, the up state New York banking subsidiary of M anufacturers H an over C orp. F red erick G. W esterm an has been e le c t e d p r e s id e n t, M a n u fa c tu re rs H anover. H e had been execu tive vice president of the 36-b ran ch subsidiary which is based in R ochester. The branch-banking group has been realigned to include the 201 branches in m etropolitan New York, the m ar keting, cred it policy and staff-admin istration d ep artm en ts and M anufac turers H anover. Purpose of the change is to provide m axim um sen io r-m an ag em en t guid ance for con sum er and small co m m e r cial business in New York state, while enabling the division to m eet the chal lenges of nationwide retail banking, according to John R. Torell III, M anny Hanny president. • Index to Advertisers Advanced Planning Systems ............................... 6 American Fletcher National Bank, Indianapolis 21 American Security Insurance G ro u p ................... 10 American Bank Directory ..................................... 58 Arrow Business Services, Inc................................ 63 Assemblies for Bank D irectors............................. 60 Automation Papers Co., Inc............................. 5, 12 Bank Building Corp................................................ 53 Boatmen's National Bank, St. Louis ................. 64 Brandt, Inc.............................................................. 51 Central Bank of the South, Birmingham, Ala. 10C Cole-Taylor Financial G ro up................................. 31 Collateral Control Corp........................................... 59 3 Commerce Bank, Kansas City ............................. Continental Bank, C hicago........................... 27, 35 Daktronics, Inc..................................................... 54G Datatrol, Inc............................................................ 38 Decimus Corp.......................................................... 19 Douglas Guardian Warehouse Corp....................... 40 Easy Answer .......................................................... 17 Fifth Third Bank, Cincinnati ............................... 61 Financial Insurance Service, Inc........................... 7 Financial Placements ........................................... 22 First Alabama Bank, Montgomery....................... 25 9 First National Bank, C in cin n a ti........................... First National Bank, Kansas City ................... 54A First National Bank, St. Joseph ......................... 29 First National Bank of Commerce, New Orleans 10E First Oklahoma Bancorp......... ........................... 32 Golston Co............................................................... 60 Hagan & Associates, Tom ................................... 62 Henry & Associates Inc., J a c k ............................. 11 Industrial Life Insurance Co.................................. 40 Insured Credit Services, Inc.................................. 41 Integon Life Insurance Corp.................................. 24 Liberty National Bank & Trust Co., Oklahoma City 2 Marcal Systems .................................................... 47 Mellon Bank, P ittsburgh....................................... 45 Memphis Bank & Trust Co.................................. 10A Missouri Encom, Inc............................................ 54F Monarch Graphics ................................................ 40 Monteleone, T h e ........................................................ Mosler Safe Co........................................................ 15 National Boulevard Bank, Chicago ..................... 33 North Central Life Insurance Co........................... 2 Nortridge Softw are................................................ 34 Planalyzer Financial Software ............................. 20 Springfield Marine B a n k ....................................... 43 Stern Brothers & Co............................................. 54E Third National Bank, N ashville......................... 54C Thunderbird Education & Training Div................. 50 Travelers Express .................................................. 56 Union National Bank, Little R o c k ....................... 57 Union Planters National B a n k ............................. 54 United States Banker ......................................... 52A Visual Control Systems, Inc................................... 58 Whitney National Bank, New Orleans .............. 10G TRUST O FF IC E R : Bank holding company in South Central Illinois seeks Trust Officer for growing $30MM department rapidly expanding its market and services. Position is responsible for day-to-day management of department; re ports directly to Sr. Trust Officer. Ten years general experience required. Emphasis in estate planning and investm ents desired. W rite : Box 98-M , c/o M ID -C O N T IN EN T BANKER, 408 Olive St., St. Louis, MO 63102. FOR SALE: Used NCR 775-2000 proof with 12 pockets. 8250 Computer with 128K memory, 20 MB Disk, 6420 Printer, 1-5 C R T’s. 279 Teller Models 200 & 300. The above equipment is eligible for NCR m aintenance. Call: Dan Holte, (612) 331-1164. BANK POSITIONS President — rural ..................................... $35K President — small suburban ................... $40K President — medium size community . . . $50K Operations — urban ................................. $35K Agri Loan — large rural ........................... $35K Correspondent — urban ........................... $40K Cashier/Lending— ru ra l........................... $28K Commercial Loan — urban ..................... $45K Commercial Loan — suburban ............... $35K Additional opportunities available. Résumé and salary requirements requested. TOM HAGAN & ASSOCIATES of KANSAS CITY P.0. Box 12346/2024 Swift North Kansas City, MO 64116 816/474-6874 SERVING THE BANKING INDUSTRY SINCE 1970 MID-CONTINENT BANKER for March, 1 9 8 3 For \bur Bank, Nothing Less W ill Do. Arrow Business Services offers you Kittinger, including the Georgian Series pictured here. And Baker, Gunlocke, Steelcase, Knoll...the who’s who of office furnishings. All the prestige names display their best in our Memphis showroom, complete with accessories, carpet, window and wallcovering. Arrow’s staff of ten experienced bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis designers can make your bank a stunning and workable showcase from the executive offices to the customer, operations and data processing areas. Give us a call for a professional, costeffective proposal to meet your bank’s building and furnishings needs. We offer the best, and we know you expect nothing less. HRROkUi BUSINESS SERVICES, IN C. an affiliate of Memphis Bank & Trust 3050 Millbranch, Memphis, Tennessee 38116 9 0 1/345-9861 p https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Boatmen’s Ted Smothers. Operations Assistance Overline Assistance. Loan Participations. Investments. Boatmen’s Vice President Ted Smothers working with Bob Menz, Chairman and President o f The First National Bank o f Highland. Whatever your correspondent needs, Boatm en’s has knowl edgeable people to assist you. Call Ted Smothers. He can help. C orrespondent Banking Division THE BOATMEN'S NATIONAL BANK O F S T LO U IS 3 1 4 -4 2 5 -3 6 0 0 Member FDIC
@FedFRASER