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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


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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


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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
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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
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SECURITY
INSURANCE GROUP
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3 2 9 0 Northside Parkway, N.W.
Atlanta, Georqia 3 0 3 2 7
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I '

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AMERICAN SECU RITY INSURANCE CO. •STANDARD GUARANTY INSURANCE CO.
UNION SECURITY LIFE INSURANCE CO.

10


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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
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Billing an hourly rate, or per a fixed price con tract.

THE RESULT
In-house d a ta processing cap ab ilities which truly
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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


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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
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20


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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.
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If you’re planning to issue plastic cards to
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Our ACS Bureau can develop and maintain
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We itemize our estimate so you know exactly
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MID-CONTINENT BANKER for March, 1 9 8 3

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Federal Reserve Bank of St. Louis

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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

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a division of BANK NEWS
912 Baltimore
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816 421-7941
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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

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If your present insurance services program makes
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Integon Life Insurance Corporation
P.O. Box 3199
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N am e

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In s titu tio n

INTEGON
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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

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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

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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


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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

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correspondent's
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than it was ten or twenty years ago. You were important then, but they have
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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
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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

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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


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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

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$17.50

B

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LOAN POLICY

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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,
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.........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

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(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

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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
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Total
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TOTAL

Enclose check p a y a b le to
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Name

...........................................................

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......................................

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.

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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

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copies. Effective Shareholder Meetings

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copies, Responsibilities o f Directors

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Effective Shareholder Mtgs.

Responsibilities of Directors

2 -5 ......................... $11.00
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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

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projects 90 day, 180 day
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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

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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,
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Programs soon to be available: I R A., Five Year Planning, Agri-Lender #3, Commercial Loans, "C.D.'s", Bond Swap,
Trust Package

34

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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-

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Federal Reserve Bank of St. Louis

Moslems total ATM-security system
includes videotape surveillance (see
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According to Mosler, all, or any
combination, of the components of
this turnkey-security package can be
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Total ATM security is being mar­
keted by Mosler Safe Co., Hamilton,
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features video surveillance, card ac­
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terface. The firm recommends these
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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

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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
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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

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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
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Now, you can shelter your home improvement loans from
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William F. Schumann, President, Insured Credit Services,
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IN SU R E D C R E D IT
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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..
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MID-CONTINENT BANKER for March, 1 9 8 3

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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


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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


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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
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Start with the routine o f keeping your back room
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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
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Federal Reserve Bank of St. Louis

ords. Get special m anagem ent and ratio reports at the
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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


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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-

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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

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Federal Reserve Bank of St. Louis

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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
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Federal Reserve Bank of St. Louis

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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

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Federal Reserve Bank of St. Louis

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800-392-9168 (In Missouri)

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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Services that make you more
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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