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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I Total Electronic Banking Convenienceright in the customer’s neighborhood is coming soon. 2. SAVINGS ACCOUNT DEPOSITS & WITHDRAWALS 1. CHECKING ACCOUNT DEPOSITS & WITHDRAWALS 3 .TRANSFER FUNDS BETWEEN CHECKING & SAVINGS I/ ISSUING BANKS NAME ~j r> C-.-J !' fZJD Participating ChecOKard Banks and Anthony’s Are Bringing Electronic BANKING To the Greater Oklahom a City Area In November, customers of participating ChecOKard banks can handle most all of their everyday banking needs — where and when it’s most convenient for them . . . at a nearby Anthony’s . . . right in their own neighborhood. No longer will they have to visit a bank to deposit a paycheck . . . no longer will they have to wait in long lines to make a savings withdrawal . . . or transfer money between checking and savings. CHEC0 AR D Participating Banks: American National Bank 1500 S. Midwest Blvd. Midwest City Choctaw State Bank 23rd & Harper Choctaw Citizens National Bank & Trust Co. N. W. 23rd & Classen Blvd. Oklahoma City Del State Bank 3000 Tower Drive Del City First National Bank 100 S. Broadway Moore Liberty National Bank & Trust Co. 100 Broadway Oklahoma City Medical Center State Bank 1300 Lottie Oklahoma City Park State Bank 2414 N. Westminster Road Nicoma Park Security Bank & Trust Co. 6914 S. E. 15 Midwest City Shepherd Mall State Bank 23rd & Villa Oklahoma City Southeast Plaza Bank 1300 S. E. 44 Oklahoma City Quail Creek Bank, N.A. 12201 N. May Oklahoma City ( f o t h o n if l Participating Stores: 9275 N. May Oklahoma City 4309 S. E. 15 Del City 2036 N. E. 23 Oklahoma City 115 E. Atkinson Plaza Midwest City 729 N. Moore Moore Participating ChecOKard Banks and Anthony’s are bringing everyday electronic banking to their customers. Think of the total convenience . . . the freedom to take care of most all banking needs where and when the CUSTOMER wants . . . at any of the participating Anthony’s in the metro Oklahoma City area. 2407 N. Westminster Road Nicoma Park If you want this kind of electronic banking convenience for your customers, too . . . contact the Correspondent Department. . . 5116 N. Shartel Oklahoma City at your É LIBERTY 2500 N. May Oklahoma City 4417 N. W. 50 Oklahoma City 9325 N. Pennsylvania The Village 4621 Windsor Mall Oklahoma City THE BANK OF MID-AMERICA 3025 S. E. 44 Oklahoma City Liberty National Bank and Trust Company • P.O. Box 25848 Oklahoma City, Oklahoma 73125 Phone: 405/231-6164 Member F.D.I.C, 4273 N. W. 63 Oklahoma City https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First NBC and New O rleans in 1831: The city was lit by 2 5 0 kerosene lamps, and had the beginnings of its first Im provem ent Bank. I n 1831 N ew Orleans was a 1 rapidly growing city constantly needing improvements. O ne of the vital improvements made at this time was the basis for the founding of a new bank, the N ew Orleans Canal and Banking C om pany, the ancestor of the First National Bank of Commerce. T he A ct of the Louisiana State Legis lature that created the N ew Orleans Canal and Banking Com pany stated that, in addition to its normal banking activities, the Bank had the purpose of cons tructing a much needed canal from above Poydras Street to Lake Pontchartrain. Thus the very first of a list of “ improvement banks” was begun. Since its beginning 14 3 years ago, First N B C has changed its name and location, but it has always adhered to the attitude of constant improvement, of progressiveness ana of stability. These are the qualities that enable First N B C to best serve all your corre spondent banking needs. For information on First N B C ’s cor respondent banking programs con tact D oug Lore at 1 / 8 0 0 / 4 6 2 9 3 1 1 , within Louisiana, or 1 / 8 0 0 / 3 3 3 - 9 6 0 1, outside Louisiana. First National Bank of C om m erce CORRESPONDENT BANKING DEPARTMENT 2 I 0 Baronne Street/New Orleans, Louisiana 7 0 1 1 2 Member F D IC M ID-CONTINENT B AN KER for October. 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 You want a bank that can back you ...over-line or overseas. Count on the total capa bility of Mercantile Trust in St. Louis. We can provide the over line support you need to take advantage of big opportunities And we can support you with a full range of specialized services. For instance, our International Department can help you and your customers with overseas contacts, docu ments, financing, even customs services. When you have an opportunity that calls for something specialcall 314-425-2404. W e ’r e w ith y o u . M E R C R flT IlE B R fK Central Group, Banking Dept. • M ercantile Trust Company N.A. • (314) 425-2404 • St. Louis, Mo. • Member F.D .I.C . 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID-CONTINENT BANKER for October, 1976 I1NENT BANKER Convention Calendar The Financial M agazine o f the M ississippi Valley & Southw est October Oct. 17-20: Robert Morris Associates Annual Fall Conference, Chicago, Hyatt Regency. Oct. 17-20: Bank Administration Institute Annual Convention, Philadelphia. Oct. 24-27: Bank Marketing Association An nual Convention, Miami Beach, Fontaine bleau Hotel. Oct. 24-29: Kansas, Missouri & Nebraska Bankers Associations Intermediate School of Banking, Lincoln, Neb., University of Nebraska. Oct. 25-27: Mortgage Bankers Association Annual Convention, San Francisco, San Francisco Hilton. Oct. 27-29: ABA Midwestern Regional Opera tions/Automation Workshop, St. Louis, PhaCA P o v lr October, Ì 9 7 6 Volume 1 2 , No. Ì Ì FEATURES 29 BANK BUILDER EXPERTISE LIGHTENS BUILDING COMMITTEE LOAD Union Bank, Kokomo, Ind., solves space problem P I0 70 Oct. 31-Nov. 5: Kansas, Missouri & Nebraska Bankers Associations Advanced School of Banking, Lincoln, Neb., University of Nebraska. November Nov. 3-5: ABA International Foreign Ex change Conference, New York City, Wal dorf Astoria Hotel. Nov. 3-5: Bank Administration Institute Fi nancial Accounting & Reporting Seminar, Dallas, Marriott Hotel. Nov. 4-7: Assembly for Bank Directors, Pinehurst, N. C., Pinehurst Hotel & Country Club. Nov. 7-10: ABA Correspondent Banking Con ference, Dallas, Fairmont Hotel. Nov. 7-10: Independent Bankers Association of America Bank Ownership Seminar/ Workshop, Phoenix, Ariz., Biltmore Hotel. Nov. 7-12: ABA National Personnel School, Memphis, Hyatt Regency Hotel. Nov. 7-19: ABA National Commercial Lending School, Norman, Okla., University of Okla homa. Nov. 8-10: Bank Administration Institute De termining EDP Job Costs, Boston, Colonnade Hotel. Nov. 10-12: ABA Mid-Continent Trust Con ference, Cincinnati, Stouifer’s Cincinnati Inn. Nov. 10-12: Bank Administration Institute Bank HC Administration Seminar, Park Ridge, 111., BAI Headquarters. Nov. 10-12: Association of Bank HCs Fall Meeting, Carefree, Ariz., Carefree Inn. Nov. 13-17: Bank Administration Institute Forum for Presidents of Not-So-Small Com munity Banks, Phoenix, Ariz., Biltmore Hotel. Nov. 14-17: ABA National Agricultural & Rural Affairs Conference, New Orleans, New Orleans Marriott. Nov. 17-19: Bank Administration Institute Float Management Seminar, Key Biscayne, Fla., Sonesta Beach Hotel. Nov. 18-19: Robert Morris Associates Lending to Banks & Bank HCs Workshop, Boston, Copley Plaza Hotel. Nov. 28-Dec. 1: Bank Marketing Association Trust Marketing Workshop, Houston, Sham rock Hilton Hotel. Nov. 30-Dec. 3: Bank Administration Institute Trust Operations Short Course, Park Ridge, 111., BAI Headquarters. December Dec. 8-10: Bank Administration Institute Organization Development Seminar, Park Ridge, 111., BAI Headquarters. February Feb. 3-6: Assembly for Bank Directors, Mexi co City, El Camino Real. Feb. 6-9: ABA National Trust Conference, New Orleans, Fairmont-Roosevelt Hotel. Feb. 6-9: ABA I&PD Risk and Insurance Management in Banking Seminar, Tucson, Doubletree Inn. Feb. 6-18: ABA National Installment Credit School, Norman, Okla., University of Okla homa. Feb. 13-15: ABA Bank Investment Conference, Atlanta, Peachtree Plaza Hotel. Feb. 14-16: ABA Bank Telecommunications Workshop, Atlanta, Omni International Hotel. Feb. 15-18: ABA Conference for Branch Ad ministrators, Atlanta, Fairmont Hotel. Feb. 20-26: ABA Operations/Automation Div. Business of Banking School, Fort Worth, American Airlines Learning Center. Feb. 27-March 1: ABA National Credit Con ference, Chicago, Palmer House Hotel. 32 BANK BUILDINGS FEATURE ART WORKS Photos, outdoor sculpture, murals decorate structures 34 A SHOWCASE OF BANK BUILDINGS Varied designs, ideas from Mid-Continent area 44 BANK BUILDING DESIGN OBJECTIVE Rosemary M cKelvey Should reflect character of bank, community 58 NEW EQUIPMENT FOR BANKS Enables them to serve public better 64 BUILDING IDEAS FOR YOUR BANK A potpourri of innovations 94 NEW LENDING CODE OF ETHICS First revision by RM A in 60 years 100 KENTUCKY CONVENTION REPORT Jim Fabian N ot everything is wrong in Washington! DEPARTMENTS 6 THE BANKING SCENE 10 COMMERCIAL LENDING 12 COMMUNITY INVOLVEMENT 16 SELLING/MARKETING 26 NEWS ROUNDUP 20 EFTS 24 NEW PRODUCTS STATE NEWS 108 ALABAMA 108 ARKANSAS 108 ILLINOIS 110 INDIANA 110 KANSAS 112 KENTUCKY 112 LOUISIANA 112 MISSISSIPPI 114 MISSOURI I 18 TEXAS 116 NEW MEXICO 116 OKLAHOMA 116 TENNESSEE IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllIlllllllim illlM IlM ^ Editors Ralph B. Cox Editor & Publisher Lawrence W. Colbert Assistant to the Publisher Rosemary McKelvey Managing Editor Jim Fabian Associate Editor Daniel H. Clark Assistant Editor Advertising Offices St. Louis, Mo., 408 Olive, 63102, Tel. 314/ 421-5445; Ralph B. Cox, Publisher; Mar garet Holz, Advertising Production Mgr. Milwaukee, Wis., 161 W. Wisconsin Ave., 53203, Tel. 414/276-3432; Torben Soren son, Advertising Representative. M ID -CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jim Fabian MID-CONTINENT BANKER is published 13 times annually (two issues in May) by Commerce Publishing Co. at 1201-05 Bluff, Fulton, Mo. 65251. Editorial, execu tive and business offices, 408 Olive, St. Louis, Mo. 63102. Printed by The Ovid Bell Press, Inc., Fulton, Mo. Second-class postage paid at Fulton, Mo. Subscription rates: Three years $21; two years $16; one year $10. Single copies, $1.50 each. Commerce Publications: American Agent & Broker, Club Management, Decor, Life Insurance Selling, Mid-Continent Banker, Mid-Western Banker, The Bank Board Letter and Program. Donald H. Clark, chairman; Wesley H. Clark, president; Johnson Poor, executive vice president and secretary; Ralph B. Cox, first vice president and treasurer; Bernard A. Beggan, William M. Humberg, Allan Kent, James T. Poor and Don J. Robertson, vice presidents; Lawrence W. Colbert, assistant vice president. 5 The Banking Scene By Dr. Lewis E. Davids Hill Professor of Bank Management, University of Missouri, Columbia Public Funds Don’t Fatten the Purse! ANKING FACES a very sensitive problem, that of the amounts of public funds in the commercial bank ing system. Consumerists such as Ralph Nader are likely to view federal, state and municipal deposits as a form of benefit to “fat-cat” bankers. But the typical institution has not grown fat on these funds despite the recent U. S. Treasury study that con cluded that the banks did obtain more benefits from such accounts than their costs. That finding, as a matter of fact, reversed all previous Treasury studies on the subject. Governmental agencies often are re stricted by the parameters set for stud ies: assumptions; use of cost data of, for instance, an incremental nature rather than a functional or standard cost basis; or use of historically high interest rates for computing rates of re turn, rather than interest rates that have been averaged over a period of time. Another restrictive feature is the underestimation of the upward trend of bank costs in nearly all areas. And I think we can expect more studies having findings that are ad verse to banking. W hy? The composi tion of both the House and Senate Banking committees can’t be consid ered pro-banking or even neutral. There is, I feel, a distinctly pro-creditunion and -S&L bias. It’s likely that the situation will worsen. Therefore, bankers must gird their loins in preparation for increased crit icism against balances of public agen cies in banks. It also is incumbent on bankers to have well-thought-out and accurate rebuttals ready to meet “ consumerist” charges of windfall profits re sulting from the allegedly less-thanarms-length dealings among bankers and treasurers or finance officers of public bodies. I’ve never known a bank’s manage ment to be overly concerned about a large volume or proportion of public funds on deposit. “ The more, the bet- B 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ter” has been the attitude. One hardly can fault banks for aggressively solicit ing and obtaining accounts of busi nesses, individuals, corporations or public bodies, yet at some point, some banks may becom e quite vulnerable to a change in public-agency policy re garding deposits or investments of funds. This could mean movement of funds to other banks or, more likely, to other financial intermediaries. Let’s look at some interesting figures. The July, 1976, issue of the Federal Reserve Bulletin showed that of $782,860,000,000 on deposit in commercial banks last June 30, U. S. Government demand deposits stood at $4,650,000,000 and had gone as low as $2,430,000,000 on the previous March 31. U. S. Government time deposits, by extrapo lation of data, amounted to $500-600 million. funds of states and municipalities vary even more dramatically from state to state and from political body to politi cal body. Other variants are factors such as state banking codes— whether a code permits S&Ls, individually or collec tively, to bid competitively for the pub lic funds. To a lesser degree, collateralization requirements for public funds vary con siderably from state to state. In many states, those requirements actually re duce a recipient bank’s lending base. That’s because a higher proportion (110 or 120%, for example) of the de posit must be secured with eligible in vestment-grade securities. Let’s tiy an experiment. Jot down a percentage on a piece of paper; let that figure represent the proportion of public funds of time and demand de " . . . I think we can expect more (government) studies having findings that are adverse to banking. Why? The composition of both the House and Senate Banking committees can't be con sidered pro-banking or even neutral." At that time, figures for states and for political subdivisions for all com mercial banks showed demand depos its of $18,726,000,000 and time and savings deposits of $48,113,000,000. That was when total demand deposits for all commercial banks were $323,617,000,000 and total time and savings deposits stood at $462,915,000,000. The concerned banker may find it interesting to work out figures for his own bank to see if it had an average share of such accounts. Theoretically, half the banks in this country would have more than an average amount, while half would have less than the average, if such deposits were distrib uted evenly. Fed funds vary by bank classifica tion: A, B or C. Such funds also vary by the amount of time they’re left in those three classes of banks. Public posits that you would feel comfortable for your bank to have. According to FD IC figures, more than 100 banks in the U. S. on D ecem ber 31, 1975, had over 40% of total de mand deposits attributable to state and local bodies! The highest had an as tounding 92.68%, and at least 15 in stitutions had totals in excess of 60%! Time and savings deposits of state and local governmental bodies are b e tween two and three times their de mand deposits. Also, U. S. Treasury policy has been to work down their balances with banks; and state and lo cal treasurers have been under similar pressures. W hile a number of the above-men tioned 100 banks were rather modest in size, and thus more vulnerable, a significant number had over $100 mil lion in total demand deposits, and one MID-CONTINENT BANKER for October, 1 9 76 A DAY IN THE TRANSIT DEPARTMENT. The Transit Department is working late again. United Missouri’s Transit Department works 24 hours a day —five days a week, and 18 hours a day on weekends. This enables us to give better service at lower costs. It’s why you should send the coupon for our Rapid Transit Item Profitability Schedule and other information. Or better yet, ask about our 30-day trial of guaranteed better service and better costs. You can phone collect. You have nothing to lose, and profits to gain. i ! ,i j Correspondent Department United Missouri Bank o f Kansas City, N .A . 10th & Grand, Kansas City, M o. 64141 (816) 22 1-6 8 0 0 j l ¡j □ □ Send me the Rapid Transit Profitability Schedule. I’m interested in your 30-day trial, too. I I Name__ l Address I City___ I State _ L------------ UNITED MISSOURI BANK OF KANSAS CITY, N. A . M ID-CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 " The Office of the Comptroller of the Currency, which supposedly is nonpolitical and professional, has become subject— as the political infighting over the nomination of a successor to for mer Comptroller of the Currency James E. Smith clearly indi cates— to undesirable political pressures." had in excess of a half-billion dollars in demand deposits. Such compilations increasingly are being called for by bank regulators and the House and Senate Banking committees. In past years, much of this kind of information wasn’t re leased or available, but the F D IC ’s powerful computers now can retrieve almost any relationship on call reports or reports of examination. The Office of the Comptroller of the Currency, which supposedly is non political and professional, has becom e subject— as the political infighting over the nomination of a successor to former Comptroller of the Currency James E. Smith clearly indicates— to undesirable political pressures. It’s doubtful wheth er true professionals of the caliber of C o m p t r o lle r-of-the-Currency-nominee Stanley Shirk would be willing to serve or be a candidate for the office. Non professionals having political ties will willingly join the “ sunshine” movement of fuller disclosure. Some disclosure is in the public’s in terest, as seen in statistical printouts of the regulators. It behooves not only banks with abnormal liability propor tions, but those with normal distribu tions, to ponder their implications, not only to individual banks, but to a crit ical public that probably will misinter pret the significance of the data. Most country bankers still favor Reg ulation Q. It has a significant impact on where time deposits— both public and private— will be placed in most lo calities. S&Ls, almost without excep tion, favor Q, due to their distinct ad vantage over commercial banks (at least in the $40,000-and-under cate gories: those institutions are able to “ broker” public funds in amounts in ex cess of $40,000 and have those amounts totally insured by federal agencies). Governmental and academic observ ers of banking increasingly agree that In 1849 we opened with a statement you could bank on. If s worth repeating. “It is intended to encourage the industrious and prudent, and to induce those who have not hitherto been such, to lay by something for a period of life when they will be less able to earn a support.” and we’ve been taking good care of people’s money ever since. LrX D E T R O IT W A BANK T N f Er T R U S T ^1® 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 'Woman of Year' Joins Bank FORT W O R TH — Alann B. Samp son, this city’s “Woman of the Year” and head of the town’s Bicentennial Committee, has joined First National in the bank’s newly created commu nity affairs position. According to a bank spokesman, Mrs. Sampson’s appointment repre sents a demonstration of First Na tional’s “ concern about our commu nity’s well-being. Her work,” he said, “will provide valuable information for the bank’s management.” it’s not a question of whether Regula tion Q will wither away or be repealed, the question is “ when?” That could have profound implica tions on whether public funds stay in individual banks or in the banking sys tem itself. Such funds could move to market instruments or other financial intermediaries. Will your bank be ready? * # Mexico City To Be Site Of Assembly Feb. 3-6 M EXICO CITY— The 27th Assem bly for Bank Directors of the Foun dation of the Southwestern Graduate School of Banking, Southern Methodist University, Dallas, will be held here February 3-6, 1977. Directing the Assembly will be B. Finley Vinson, Foundation chair man and chairman, First National, Lit tle Rock; headquarters for the event will be El Camino Real Hotel. The Assembly program will include lectures on contemporary financial de velopments; director organizations and functions; budgeting, planning and capital management; bank auditing and the director; and continuity and retirement standards for directors. Also covered will be regulatory procedures; legal developments, credit policy; and management selection and directormanagement relations. A special program for spouses will include lectures on contributions by diI'ectors’ wives, investments, trusts, de velopments in Mexico and Mexican crafts. Registration for the Assembly will be limited to 250 directors and spouse*and post-Assembly tours may be ar ranged through the Foundation. Eve ning programs are slated at the head quarters hotel and the Hacienda de los Morales. For additional information, write: Dr. Richard B. Johnson, the Assemblies for Bank Directors, SMU Box 214, Dal las, T X 75275. MID-CONTINENT BANKER for October, 1976 m a r v m D r a y f ^ H a banker's banker. Correspondent Bankers Bill Hellen Lee Daniel Marvin Bray has spent years helping our co-banks find their way through problems and developing new opportunities. H e’s ready and able to help you with yours. In petroleum, agribusiness, real estate, even international ventures. Call him, and find out how your financial needs fit into our capabilities —fast. (918) 584-3411 Charles McNamara BANK OF OKLAHOMA Charles Rice Department Manager P.O Box 2300 / Tulsa, Oklahoma 74192 M ID -CONTINENT BAN KER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C o m m e r c ia l L e n d in g Management Analysis Gives Strength To Faltering Bank Loan Portfolios By QUENTIN N. FINE Wargo & Co. Milwaukee OMPANIES are usually started by a specialized entrepreneur— sales man, engineer, inventor— rather than by a person with a balanced business background. As the company grows, so do operating problems which the specialist is ill-equipped to face. When the company reaches the $5-million volume level, problems begin to sur face. Entrepreneurs do not make the best managers and they tend to be penuri ous. Consequently, they fail to main tain managerial growth at a pace equal to that of the company by overcoming their management weaknesses with qualified talents. Unless it gets man agerial help, the company may well hit a plateau or start a decline. This is where problems start for the banker who has made loans to such a company during its growth period, only to find a deteriorating situation devel oping. An important part of the bank er’s job is to recognize problems early, while something can still be done to prevent a default or a bankruptcy. Reserves are not the answer to the problem of bad loans. Being able to spot the problems and to take early action is the only way to turn around a negative situation. Don’t procrasti nate until it is too late and only a sal vage job remains to be done. H ow can potential problems be rec ognized? Assume you are dealing with a company about which some indica tion of existing problems has been giv en, but you don’t know exactly what they are. The banker or a professional consultant hired by him usually begins his analysis of the company on-site, where he can personally inspect the firm’s personnel, facilities, operations, products and the like. This enables him to gain insight through discussions with management and other key employees. There is no substitute for experience in knowing what to look for, knowing the correct questions to ask and pos sessing sound judgment when making evaluations. A number of steps should be followed when undertaking a fact finding expedition into a problem com C 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pany. Among them are these: • Start by looking at the company’s numbers. Make a three-to-five-year his torical comparison of volume, cost of sales, expenses and the like, to spot significant trends. Develop the break even points for the same years. • Analyze the trend in cash flow. Are receivables building up with a trend toward slow pay? Are payables being strung out longer? Are withhold ing tax reports being filed promptly and the deposits made? Has there been a delinquency in debt payments? Note the date of the last financial statement and determine the normal time frame for its issuance after the close of an ac counting period. • Review the formal organization, pinpointing management and key peo ple with whom to hold private discus sions throughout your visit. Listen care fully to what they have to say and fer ret out their thoughts as to problems and solutions, giving heed to correlat ing relationships in discussions with others. "There is no substitute for ex perience in knowing what to look for, knowing the correct questions to ask and possessing sound judgment when making evaluations." Draw management out as to policies, degree of forward planning, manage ment control tools used in guiding dayto-day operations, overall knowledge of the industry, particular jobs, responsi bilities and levels of authority. Investigate the decision-making pro cesses being follow ed within the com pany. D o they follow normal organiza tional lines? Are they timely and ef fective? Identify management strengths and weaknesses as to functional responsi bility and individual employees. Re member, most employees want to do a good job, but they will be only as good as management wants them to be. When dealing with a company’s em ployees, be discreet, diplomatic and tactful in order to minimize rumors, jumpiness and any degree of uproar. Lack of these traits can be a major pitfall when examining a troubled firm. • Familiarize yourself with the product lines and types o f operations in which the company is presently en gaged. Be alert for trends in the back log, loss of major customers and effi ciency in meeting delivery commit ments, costly new ventures and devel opment efforts, product test results and market research on new products. • Tour facilities and review opera tions while being alert for these signs of how management is succeeding: adequate housekeeping, efficient work flow, satisfactory productivity level, minimum downtime, proper mainte nance of facilities, machinery and equipment and minimum rework and scrap rate. • Scrutinize inventories closely and look for obsolescence and determine their condition. Do they appear to be in salable condition? Can materials be used on present product lines? Are they dirty, damaged or lacking in turnover? H ow often do material shortages cause delays in completion o f processing? Is there any serious overstocking? Are closed stores methods (check out) used to control usage, particularly of more expensive items? • Make inquiries outside the com pany. Frank, confidential discussions with outside sources closely affiliated with the company can be quite helpful in corroborating opinions and securing added insight. The company’s bankers, legal counsel, auditors and major cred itors are potential sources. • Avoid biased data. Too often, the banker relies primarily on information furnished by the company itself. Thus, he uses biased data on which to make his determinations. He may also place too much reliance on audited financial statements. While no aspersion is in tended against public accountants, it should be understood that their work is not infallible. To illustrate: Tw o banks in the Mid west had made sizable loans to a pub licly held company. The banks became concerned over a sequence of happen ings— in particular, the company’s de faulting on its obligations. A consultant was called in to look at the situation and later to effect a turnaround in the company’s operations. The company had recently been through an audit and had been issued a clean certificate during the course of the consultant’s work. Within a few weeks the problems uncovered by the consultant caused the banks to call the loan. The firm found itself in a Chapter 11 bankruptcy. (Continued on page 98) MID-CONTINENT HANKER for October, 1976 HOW TO SAFEGUARD YOUR DIRECTORS AND OFFICERS PERSONAL ASSETS No doubt about it, bank directors and officers are going to court in increasing numbers to defend themselves against lawsuits brought by bank stock holders, depositors and third parties. One defense, of course, is to conduct your business in a manner which completely avoids lawsuits. Unfortunately, no bank can be certain it has the answer on how to do this. The best solution is coverage by D & O Liability Insurance through Scarborough. A D & O Liability Insurance policy with Scarborough protects the bank’s capital assets, and the bank’s directors’ and officers’ personal assets in cases in volving alleged wrongful acts while managing or directing the bank’s business affairs. Coverage in cludes damages, judgments, and defense costs. Our free “Guidebook for Bankers” has details on coverages, exclusions, typical premium rates, and illustrative claim situations. Scarborough has the professional know-how you require for these situations because it has served banks’ special insurance needs since 1919, devel oped the market for D & O Coverage and is the principal source for this coverage. Risky to htxy M » Jtl M t Call or write Warren Geary or, clip the coupon for more information. M ID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 Com m unity Involvem ent Cincinnati-Area Financial Institutions Black H isto ry : Aim to CURE Downtown s Problems Nearly Forgotten Paintings Examine Faces of History V a c a n t a n d d e t e r io r a t in g * buildings, congestion, lack of con venient parking, visual clutter. Sound like problems facing many of this na tion’s metropolitan areas, don’t they? In the Cincinnati area, a group of finan cial institutions have banded together to alleviate some of those problems. Covington, Ky., is part of the Cin cinnati metroplex. A group of five banks, nine S&Ls and one insurance company in 1972 formed CURE— C ov ington Urban Redevelopment Effort— and pledged funds to carry out C U RE’s objectives of preservation and vitalization of the central city. Spearheaded by Peoples Liberty Bank, the group’s objectives for saving the central Covington neighborhood in volves three basic strategies: • Preservation of the business area. That includes better traffic circulation, off-street parking, a pedestrian mall and a building facade treatment desig nated as the Downtown Covington Old Town Plaza. At press time, this phase of the project was nearly complete. Estimated cost is $1.6 million, half pri vately and half publicly funded. • Restoration of residential areas. City funds were provided to plan the improvements and the city and the fi nancial institutions have initiated a fi nancial program, estimated to cost $1.4 million during 1976-77. • A $ 15-million redevelopment of the riverfront that includes 500 luxury housing units. Proceeds from a planned bond issue will finance this phase. Chairman of CURE’s executive com mittee is Ralph V. Haile, president of Peoples Liberty Bank, while David Herriman, president, Covington Trust, is secretary. Other banks involved in the project are Citizens National and Security Bank. According to Mr. Haile, the 15 finan cial institutions provide the basic lead ership in the planning process, but re ceive input from all groups— public and private— having interest in the Covington central area. * * “ Faces of History” is the title of an exhibit of nearly forgotten paintings of distinguished historic black men and women that has been held in the lobby of Chicago City Bank. The showing, which was comprised of 50 portraits of people who contrib uted to the growth of the nation, was made possible by the cooperation of the DuSable Museum of African Ameri can History. The works were commissioned in 1959 by Balm Leavell, publisher of the N ew Crusader newspaper, and painted by Bernard Goss for the “ First Expo sition of the Negro in Business and Culture.” The exposition was repeated in 1960 and 1961 and was augmented until the paintings numbered 150, in cluding several murals. The collection was presented to the DuSable Museum in 1975 by the widow of the Neiv Crusaders publisher and, through an Illinois Bicentennial Commission grant, the deteriorating portraits were refurbished. As Bicentennial G i f t : the influential architecture of Louis Sullivan, Henry Van Brun and George I. Barnett. Also noted are poet Eugene Field and author and humorist Mark Twain. Through the eyes of such artists, the film gives a new perspective, not only on Missouri’s history, but on the special quality of Missouri life. The film, produced under the aus- Bank H C Provides Grant For Production of Film On State's Residents Mercantile Bancorp., St. Louis-based HC, as a lasting contribution to the nation’s bicentennial, is making avail able to Missouri residents a noncom mercial historical film, “ Missouri: Por trait of a People.” The 16mm, sound-and-color, halfhour film was introduced to the public last month on nine major T V stations across the state. Following its premiere, prints are now available, free of charge, to schools, churches, civic organizations and other groups. Order forms may be obtained from local Mercantile banks throughout the state. The film traces the history of Mis souri through the enduring works of the state’s artists, architects, sculptors, musicians and writers. It’s narrated by stage, screen and T V actor John For sythe. It includes, among others, paint ings, sketches and murals by such famed regional artists as George Caleb Bingham and Thomas Hart Benton and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This is p rep aratory d ra w in g —"Boatm an Seated With P ip e"—done by George C aleb Bingham , M issouri artist. It is central figure used in larg er oil-on-canvas painting, "W atching the C a rg o ," completed by Bingham in 1849. This draw in g ap p e a rs in film, "M issouri: Portrait of a P eople," w hich w a s produced under grant from M ercantile Bancorp., St. Louis-based HC. pices o f the Missouri Arts Council, was developed and produced by Pentade Productions, Inc., Kansas City. Mer cantile Bancorp, made the grant that financed the project. According to the H C’s chairman, Donald E. Lasater, the making of this film should reawaken residents of Mis souri to their heritage and natural beauty around th e m a n d s h o u ld strengthen their pride in their state. Senator Praises Bank's Ads WASHINGTON, D. C.— “ In Chat tanooga, they are spreading the truth about the free enterprise system,” was the proclamation made on the floor of the U. S. Senate by Senator Jesse Helms (R.,N.C.). Calling for unanimous consent— to which there was no objection—■ that the complete series of advertise ments by Pioneer Bank of Chatta nooga be reprinted in the Congres sional Record, Senator Helms com mended not only the bank, but its chairman, George M. Clark, and the Greater Chattanooga Area Chamber of Commerce. operation easy. Should you need service, the Sentinel III has a self-diagnostic feature that pinpoints a problem area fast, Meilink’s Sentinel ill remote drive-up system has one tube and many advanced features: The single tube design saves installation time and cost. Underground, the short radius bends allow a more shallow trench. A reversible blower contained in the remote station autom atically activates to dispatch the carrier in either direction. Everything must go into the removable carrier. That's the way Meilink designed the Sentinel III terminals. If a loose item is dropped, it will fall safely through to a catch receptacle. Can't enter the system and cause downtime. And to make it even https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis more convenient for the customer, the carrier is presented parallel to the drive lane. There's more counterwork area at the teller station. All controls are in the terminal and the small audio box ca n be positioned anywhere on the counter. Reliable solid state circuitry keeps things under control and makes One more thing. Sentinel III is m ade with Meilink quality. That fact alone should m ake Meilink's Sentinel III the remote drive-up system for your money. C all or write: IV L e ilin h BANK EQUIPMENT 3100 Hill Avenue, Toledo, Ohio 43607 Phone (419) 255-1000 Section 409(a) of ERISA states: “Any person who is a fiduciary with respect to a plan who breaches any of the responsibilities, obligations, or duties imposed upon fiduciaries by this title shall be personally liable to make good to such plan any losses to the plan re sulting from each such breach . . (Emphasis supplied) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "We should include our pension plan fiduciaries in our D & O coverage. Let's call M GIC for a rider/' No sooner said than done. Offering this extended coverage option demonstrates how quickly M GIC responds to the specialized requirements of financial institutions. Passage of ERISA created this need for additional liability protection for your directors or officers who are considered fiduciaries of your institution's pension/employee benefit plans. M GIC provides it—easily available as an endorsement to the M GIC Directors' and Officers' liability policy.* The policy also provides individual coverage, up to policy limits, for each person, each year. It recognizes your desire to select counsel, subject to M GIC's consent. And, at its option, M GIC can advance you money for costly fees. M GIC coverage also includes bank trust officers, which ERISA legislation makes more important than ever. In today's business climate, the need for adequate management protection is growing. Isn't it worth a few minutes to get a thorough analysis of your D & O coverage from your local insurance broker or M G IC representative? ? !> as Directors' and Officers' Liability Protection from M GIC. One more sound reason why we say, there is no substitute for experience. M G IC experience. Hi *Not available In Texas iiiis ii a§f|te||#j§ I jij| ife i llfl 11 ■ MB https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ MGIC :s ; ' is Because experience pays. ' M G IC Indem nity Corporation, a Subsidiary of M G IC Investment Corporation, M G IC Plaza, M ilw aukee, W l 53201 Phone: 800-558-9900; in W isconsin, 800-242-9275 Sei Iing / Marketing No Such Thing as a Free Lunch? This Bank s Customers Say There is! HE O L D SAYING, “ there’s no such thing as a free lunch,’’ just isn’t true. Customers of Missouri State, St. Louis, will verify that, because anyone who opened or added $50 to an ac count during a two-week promotion re ceived a free lunch in return! The promotion was in celebration of the opening of Missouri State’s “ Hub” center for retail accounts and it was publicized in these ways: The bank, prior to the event, distributed more than 10,000 free cups of root beer from a stand on its front sidewalk; a halfdozen teams sporting sandwich boards and handbills— accompanied by a highwheel bicycle— patrolled the downtown area every day at lunch time. The high-wheel bicycle plays up the “hub” idea of Missouri State’s new center. Focal point of the handbills was During free-lunch promotion at Missouri State, St. Louis, customers line up in " G a y '90s"style restaurant in bank lobby and help them selves. Welcoming them at left is Earl J. Bren nan Jr., bank pres. To qu alify for offer, $50 deposit w a s needed. a silhouette of the high wheeler and the bank’s catchphrase, “The Hub of All Your Financial Affairs.” Since Missouri State isn’t able to match larger banks in advertising ex penditures, the free lunch was thought to be a less expensive way to attract new accounts. “ People think of banks as stuffy, cold places,” said Earl J. Brennan Jr., bank president, “ but we want to be different. W e’ve decorated the Hub center like a restaurant to cor respond with the ‘Gay ’90s high wheeler symbol, with lots of stained glass and small cafe tables. “ Missouri State,” he continued, “ pre fers this idea to a continuity program. This way, we can welcome people per sonally to the bank. A staff member can chat with them over lunch; it will be fun to visit Missouri State.” And the promotion, besides making better customers of the bank’s present ones, has developed a lot of new busi ness, Mr. Brennan said. During one day, three times the normal number of new accounts were opened— averaging $1,000-$ 1,500 each! • • television ads featuring a different per son nightly. “ Happy Birthday, U. S. A.,” as the series was titled, was extremely popu lar with viewers, according to a bank spokesman. The ads produced many phone calls, many from area teachers requesting schedules o f the personages to be saluted. Each “program” had a 60-second opening for a commercial message, then Third National personnel gave the featured presentations. “The spokes men used in the bank’s ads were secre taries, commercial lending officers and even our chairman and president, Charles J. Kane,” the bank spokesman said. “ In fact, all the bank’s branch offices were represented by personnel in the spots. “And when the bank persons got over the initial paralysis of facing a camera and crew,” the spokesman add ed, “ some went on to do horrible jobs, while others were surprisingly good.” In Lib erty, M o .: Miniature-Wagon Display Recalls Area's History A miniature farm wagon, much like the full-sized versions used in the area’s past, has been displayed in the lobby of First National, Liberty, Mo. The wagon, which was loaned to the bank by a customer, was constructed by a man in Wichita, Kan. According to a bank spokesman, the model con sists of 552 handmade parts that took more than 160 hours to assemble. Other features o f the replica are its copper parts and stained woods. The wagon includes a spring seat, remov able sides and a towing harness. Five Minutes N ightly: TOP: Prior to free-lunch-for-deposits promotion of Missouri State, St. Louis, bank publicized event w ith free root beer stand on its side w a lk . H igh-w heeler bike and representatives sporting sandw ich boards patrolled dow ntow n a re a to publicize event. BOTTOM: Taking time out to sam ple free root beer are (from I.) Doug M cDowell, e.v.p.; Earl J. Brennan Jr., pres.; and Jam es Gem ignani, asst. op. ofF. Bank dispensed more than 10,000 cups of beverage. 16 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Historic Happy-Birthdays Are Topics of Ad Series Saluting the birthdays of famous Americans was one way Third Nation al, Nashville, celebrated the bicenten nial. At 6:55 p.m. Monday-throughFriday, the bank sponsored five-minute Looking over m iniature farm w agon displayed in lobby of First N at'l, Liberty, Mo. are Renner Bryan (r.), teller, and Huron V. M asser, owner of replica. Model has stained-w ood and brass parts, took over 160 hours to assem ble. M ID -CONTINENT BANKER for October, 1976 From then to now we've planned and built or remodeled more bank buildings than any other company anywhere. Since our beginning in 1913, when we were known as the St. Louis Bank Fixture Co., we’ve pioneered many designs, concepts and methods that are now banking standards. We were instrumental in the demise of tellers' cages. We "opened up" bank lobbies. We introduced drive-in banking. We have developed a revolu tionary concept in preplanned bank buildings. And on more than 6000 projects we’ve helped banks increase earnings through proper planning, design and construction (or remodeling) of their buildings. May we help you? We have a man right in your area. Bank Building fC ^ I Corporation / T, . , . j i i - 4 • Helping banks and b an k in g Since 1913 Client Service Mississippi, Georgia, Tennessee and Kentucky: 404/633-2971 Arkansas, Louisiana, Oklahom a and Texas: 214/630-1131 Missouri, Illinois and Indiana: 314/647-3800 Bank Building Corp., 1130 Hampton A ve., St. Louis, M O 63139 Please send me a cop y o f your brochure, "H ow T o Determine When, H ow and W hy You Should Remodel.” M C -1076 N a m e ---------------------------------------------------------------------------------Title Address. ite and Z i p -----------------------------------------------------------------------------------City, State M ID -CONTINENT BANKER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 Ivy and P opp ers: Opening In Small Town Brings Bank Big Results Branson, Mo., is a town with a popu lation of 2,400, but when Peoples Bank opened its Peoples Banking Center, more than $400,000 in new business was generated in three weeks’ time! Customers depositing $25 in a sav ings account or $100 in a checking ac count were given a choice between two premiums: a Swedish ivy plant from Turner Floral Co., Springfield, Mo., or a popcorn popper manufac tured by Munsey Co. During the grand opening, more than 100 plants and 700 poppers were distributed. A unique feature of the facility is the drive-up’s remote teller unit that has been raised 12 inches higher than its two companion units. That was done to accommodate recreational vehicles and pickup trucks. Since nearly 25% of the bank’s customers have those ve hicles and because Peoples Bank caters to a large Ozark-area tourist popula tion, the decision was made to elevate one of the remote teller units. During the grand opening festivi ties, customers were given refreshments and tours of the building. The event was publicized by the “Peoples Bank Gazette,” a supplement to the local newspaper. In it were photos of the new center and its staff. As an added bonus to customers using the drive-up lanes during the grand opening, Chairman Ben A. Par nell Jr. and President Smith Brookhart kept busy washing car windows and handing out premiums. W ashing w ind ow s of customers' vehicles at drive-up during grand opening of Peoples Banking Center of Peoples Bank, Branson, Mo., are Smith Brookhart (I.) pres., and Ben A. Parnell Jr., ch. They also handed out premiums of popcorn poppers and Sw edish ivy plants, w hich can be seen in foreground on remote teller unit. Also, feature of facility is teller unit at rear, w hich is raised 12 inches for customers in trucks, recreational vehicles. D avid vs. G o lia th ? Rockefeller Takes Notice Of Small Bank's Statement Farmers State, Chappell Hill, Tex., a bank with deposits of $1,609,631.56, has done something few other banks have accomplished. It has gotten the attention of David Rockefeller, chair man, Chase Manhattan Bank, New York City. Nathan Winfield, president of Farm ers State, usually finds a unique way to notify depositors of the bank’s finan cial status and his efforts of last June resulted in a letter from Mr. Rocke feller. The statement contained a cover il lustration of an elderly gentleman with the caption, “At this time, we would like to offer a brief comment concern ing our current financial position.” In side a single line said, “ Eat your heart 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis out, Chase Manhattan.” Accompany ing that was Farmers State’s statement of condition. An anonymous friend of Mr. W in field’s sent a copy to Mr. Rockefeller, who replied: “ Since our June 30, 1976, deposits total $35,195,265,162, and assuming your present annual dollar growth to tals $454,533, and also assuming that w e experience no growth, I figure you w ill b e even w ith us in 7,742 years. At that time, w e m ight discuss the Chase Manhattan Bank becom ing a correspondent o f Farmers State Bank. H ow ever, in the meantime, I thought you might like to b ecom e a correspon dent o f Chase, and I am enclosing sig nature cards to be used for that pur pose. “ Keep up the good work, and if w e are both around at that time, I w ould like to get together w ith you and dis cuss navigating steamships on the Brazos River. “ From one w ho stands in aw e.” Law n of Rochelle (III.) State w a s great attrac tion for a rea residents w hen bank, O gle Coun ty Pork Producers and local Future Farm ers of Am erica held barbeque. More than 4 0 % of tow n's population show ed up for meal featu r ing pork tenderloin sandw iches! M ig h ty Tasty! Barbequed Pork Tenderloin On Menu at Bank Picnic The weather was fine and there was plenty of barbequed pork tenderloin to eat when Rochelle (111.) State staged an annual cookout. The event was produced by the Ogle County Pork Producers and assisted by the local chapter of Future Farmers of America. Serving the pork tenderloin sand wiches, complete with trimmings, were the bank’s board and staff members. In addition, Rochelle State’s commer cial accounts contributed about 90 door prizes; the bank gave a grand prize of a $500 CD. Entertainment was provided by a local band, and to obtain a ticket to the barbeque, all one had to do was see one of the bank’s merchant patrons. How successful was the event? Ro chelle is a town with a population of 8,500 and 3,500 persons showed up and consumed 4,000 hamburger buns, 90 gallons of baked beans, a similar amount of applesauce and 4,000 bags of potato chips! That's L o g ic a l: Calendar Offered by Bank Puts Sunday 'in Its Place' Avenue Bank, Oak Park, 111., has put Sunday “in its place.” The institution has offered a “logical” calendar for 1976-77 that groups the weeks with Sunday as the final day, rather than at the first of the week. The calendar also salutes the prairie school of architecture, which abounds in the area. Featured are selected ex amples of Oak Park and River Forest works by Frank Lloyd Wright, Ezra Eben Roberts, William E. Drummond, John S. Van Bergen and George W . Maher. M ID-CONTINENT BANKER for October, 1976 They dont tick, w hir or plug in. But oh, how they move people! Searching for a premium that really stirs up action? Then take a closer look at silverplated holloware from International Silver. Unlike many short-lived mechan ical "marvels” with their problems of repairs, replacements and dimin ishing value, International Silver products offer lasting beauty and enduring quality. Plus an ever-increasing intrinsic lftr value that builds good will for you year after year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The International trademark on each piece is your assurance of a fine product backed up by a wellknown, respected manufacturer ready to plan with you now. And deliver now. Whatever incentive program you may be considering, talk to the incentive people at International INTERNATIONAL SILVER COMPANY The more you get into premiums the better we look. Silver, first. Our fifty years experi ence in premiums can really help. International Incentives A Division of International SilverCom pany Wallingford, Conn. 06492 Gentlemen: We’d like to see what you can do to help us. _____ Call us as soon as possible. _____ Send catalog before we meet. Name_________________________________________ C om pany. Address _ T itle______ City/State _Tel. No. EFTS (Electronic Funds Transfer Systems} 8,0 0 0 Electronic Terminals In U.S., According to Report; Their Number Growing Rapidly BROOKFIELD, ILL.— According to a survey of commercial banks and thrifts conducted by RoseMary Butkovic, independent EFTS consultant, there presently are 8,000 electronic terminals at nonbranch locations in the U. S. and the total is growing rapidly. The terminals are installed in shop ping centers, retail stores, offices, air ports and other locations. As far as use of the terminals is con cerned, the report says 80% of the ma chines are authorizing credit and veri fying or guaranteeing checks at POS locations, while 15% of the terminals offer electronic banking services at merchant locations. The remaining 5% of the machines are ATMs at locations other than bank premises. More than 500 financial institutions in 44 states and the District of Colum bia are offering electronic banking ser vices at remote merchant terminals and ATMs, the survey says, and institutions as small as $30 million in deposits have installed terminals for EFT services: deposits, withdrawals, transfers and au thorizations for check cashing and credit cards. Although only 4% of state- and na tional-charter thrifts and 2% of com mercial banks currently participate in remote EFT service offerings, previous surveys have shown that most financial institutions will offer merchant POS terminal services within the next five years. Remote banking services are expand ing rapidly, the survey shows, de spite legal and regulatory constraints in a number of states. More than 9,000 additional terminals are planned for in stallation over the next year and over 75% of those are expected to be for credit authorization and check verifica tion or guarantee service. Respondents to the survey cite the following reasons for installing remote electronic terminals : • Customer convenience and im proved service were cited as the pri mary reasons. • To reduce costs. • To differentiate services. • To attract new customers and de posits. • To relieve lobby and teller con gestion in branches. 20 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The report shows that the number of transactions performed by remote electronic terminals ranges from less than 100 monthly at a POS terminal to more than 5,000 over a similar peri od of time at an ATM . Costs for op erating a terminal were pegged at a low of $22 a month for a POS device to $50,000 monthly at an ATM . Respondents indicated that they con trolled access to customers’ account in formation by issuing personal identifi cation numbers— PINs— or codes— PICs— by restricting card issuance, maintaining activity and dollar-amount controls on withdrawals and by pro viding technological safeguards to pre vent unauthorized access to account balances. Availability of ATM Package Announced During CEO Seminar The availability to correspondents of the Bankmatic ATM package was an nounced by Bernard J. Ruysser, presi dent, Commercial National, Kansas City, Kan., during its CEO Seminar September 8 at the Alameda Plaza Hotel in Kansas City, Mo. Approximately 75 c o r r e s p o n d e n t bankers attended the annual event, which was sponsored by Commercial National’s commercial data division. Other topics covered during the hourlong program included a statement of the Commercial Data Center’s (C D C ) current position and future direction by Don Barnes, senior vice president. Also discussed were automated pay roll, electronic proof machines and C DC department functions and inno vations. According to a bank spokesman, the Bankmatic ATM service being offered to correspondents by Commercial Na tional is fully automated and on-line. Visiting w ith Bernard Ruysser (c.), pres., Com m ercial N at'l, K an sas City, K an., during bank's ann ual C EO sem inar are Norm Tice (I.), pres., City Bank, and Robert G a d d y , pres., Am erican N at'l, both of St. Louis. The program offers a complete tech nical and marketing system for assist ance in establishing a Bankmatic auto mated teller plan, he said. The package, he continued, also fea tures liaison with manufacturers in se lecting equipment; site analysis and recommendations; architectural plans for drive-up or walk-up structures; in terface coordination with Commercial National’s computer; consultation on customer procedures; marketing sup port; and a complete manual of internal operating procedures. 'EFTS in U. S.' Symposium To Be Held in Geneva, Nov. 7-9 GENEVA, SW ITZ.— The Intercon tinental Hotel will host “ Electronic Funds Transfer Systems,” an interna tional symposium sponsored by Pay ment Systems, Inc. (P S I), New York City, November 7-9. The symposium has been designed to provide the latest information on electronic banking developments in the U. S. to European financial leaders. It also will provide a forum for the ex change of information about European EFTS developments. Specific topics to be covered by a variety of experts will be checks, credit cards and wire transfer systems; POS systems; direct-deposit payroll pro grams; ATM s; ACHs; and bill payment systems. Other reports will examine strategies for marketing new banking services and developments in technol ogy. In addition, a comparative analysis will be made of European and Amer ican payments system developments, including GIRO and credit card sys tems, ACPIs and Eurocheque. Automatic Premium Payments Begun in Fla. by Blue Cross Blue Cross/Blue Shield customers in Florida now may have their bank accounts charged automatically for payment of insurance premiums. Orig inating bank for payments is Atlantic National, Jacksonville. The project reportedly is the bank’s initial entry into preauthorized ACH debits and will involve an estimated 56,000 items per month, with a growth potential of over 200,000. The bank is a member of Florida Payment Systems, Inc., Orlando, the firm that implemented the Jacksonville ACH, processor for customers’ banks. M ID-CONTINENT BANKER for October, 1 9 76 your operations, your bottom line CENTRAL AUTOMA FINANCI SYSTEM Central National Bank is now offering seven automated financial systems designed to help you fine tune your management controls, evaluate the performance and profitability of your departments, and spot problems, opportunities and trends early enough to do something about them. These systems give you crisply-reported data on your operations that you can interpret easily and apply quickly. They represent the most advanced state of the data processing art, are fully integrated and will interface with the next-step programs we are currently developing. The seven new Central Automated Financial Systems are: On-Line Savings Certificates of Deposit Demand Deposit General Ledger Installment Loan Commercial Loan Payroll Processing We would welcome the opportunity to discuss these systems with you and to answer any questions you or your operations officers may have. Call your Central Automated Financial Systems Representative at (312)443-7200. C E N T R A L AUTOM ATED FIN AN CIAL S Y S T E M S 4 DIVISION OF CEN TRAL NATIONAL BANK 120 South LaSalle Street, Chicago, Illinois 60603 M ID -CON TIN EN T B AN K ER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 Survey of Senior Financial Marketers A'MUST' Indicates High Interest in EFTS for Directors of State-Chartered Banks! "Bank Shareholders* Meeting Manual" A 60-page directors bring book designed of to state-chartered their operations enable banks to up-to-date. It was developed in recognition of several new trends in business and society— HE FUTURE of EFTS seems as sured by the results of a compre hensive survey of a large number of senior financial service institution mar keting executives in commercial banks, S&Ls, mutual savings banks and credit unions. The survey, conducted by Payment Systems, Inc., Atlanta, revealed that 93% o f bank marketers predict their in stitutions will offer automated teller service by 1980; that only about 5% of financial institution marketers believe their institutions will not participate in merchant point-of-sale terminals within the next five years; that about 60% b e lieve that consumers will view E FT terminals at retail outlets to be major benefits; that 55% of banks and 51% of thrifts expect EFTS to improve the profitability of consumer financial ser vices for their institutions. More than half the marketing execu tives agree with consumerists that con sumer liability for debit cards should be limited to the present credit card liability of $50; less than half of finan cial marketers believe their institutions are doing a good job in their advertis ing efforts; and most believe consumer complaints about E FT services can be handled relatively easily. Although new EFT systems are ex pensive, only 40% of the survey’s re spondents indicated that their institu tion’s research expenditures exceed $25,000 a year. Only 23% of the marketers in banks with more than 10 branches and almost 46% of marketers at high-branching thrifts expect to add over 10 branches by 1980. According to Payment Systems, the survey indicates that there is a favor able climate among financial service in stitution executives for the introduction of EFTS. Most marketers are actively planning participation in some sort of EFTS program within the next several years. Their interest in E FT stems pri marily from a desire to maintain or im prove their competitive positions in the marketplace. W hile they are aware of consumer concerns and not particularly satisfied with their present advertising efforts, they are spending a relatively limited amount of money on research into con sumer marketing of EFT. The rather low level of interest, particularly among banks, in establishing new branches may be an indication that E FT is replacing branching as a pri mary strategy for expansion and devel opment of markets. • • Bank's EFT-Program Step-Up Is Due to Unpredicted Popularity 1975, but 30 days later, customer use had reached levels far beyond expec tations. So a third automatic banking facility was opened at Spring and Block streets. That installation proved so popular that First National went ahead with a fourth ATM installation adjacent to the main pedestrian entrance to the North west Arkansas Shopping Plaza. In one month, officials stated, there were 13,125 transactions at the first three locations; 19,000 Bank Key cards for the machines have been issued, and the bank has begun issuing Master Charge cards for use with the Dieboid Total Automatic Banking System TABS 500 units. First National also is one of 12 banks in the state that participates in a state wide EFT interchange program. trends involving an increased sensitivity of the public regarding conflicts-of- interest; greater concern for minority rights; greater demand for fuller dis closure; data on control and ownership and of related business interests, includ ing voting of trust-held securities. The book also state bank provides a means for directors to modify pro cedures to bring their banks into com pliance with statutes and current state regulations. banking Its use can result in economies and efficiencies for banks. FAY ETTEV ILLE, ARK.— First Na tional’s ATM system has proven so popular with customers that the bank has twice moved up its schedule for additional installations. The bank launched its automatic banking program with installations at its Evelyn Hills Shopping Center and University Eranch offices in the fall of Can Your Bank Afford to be Out-of-Date? SPRICSE: $7.75 each SEND YOUR ORDER AND C H ECK (sorry, no billed orders) TO THE PUBLISHER: The BANK BOARD Letter 408 Olive St. (Suite 505) St. Louis, Mo. 63102 22 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dieboid TABS 500 m achines a re b asis of auto matic banking system of First N at'l, Fayette ville, Ark. Custom er acceptance of system e x ceeded expectations so g reatly that bank's ATM program had to be stepped up twice. M ID-CONTINENT BANKER for October, 1976 Ve make ab igth in g o f little M IC R characters Is the signal level right? Any extra neous ink? Voids? Tests to determine these and all other M IC R sp ecifi cations are con d u cted on random print samples from each o f our plants through sorter-readers. Rejects are scrutinized to find and correct poten tial problem s. G o a l? K eeping our checks out o f your reject pocket! But Quality Assurance goes even further than that. M IC R quality testing is only a part o f the efforts made by D eluxe’ s quality c o n scious people. From the time we first get the order to the time it’ s shipped the next day, there’ s an attitude we practice— a motto we use: “ Everyone is an in s p e c t o r ” . A n d e v e ry o n e from the typesetter to the packer tries to see to it that every little detail is right. Sure, we make mistakes. But when we do, we care. And our people work hard to make sure it doesn’ t happen again. Quality Assurance. It’s a pretty big thing with us. Little things make ci big difference. CH ECK PRINTERS, INC. SA LES HEADQUARTERS P.0. BOX 3 3 9 9 ST.PAU L. MN. 55165 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST M ID -CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 • National Safe Corp. The Cashguard Chest provides a secure area for money and valuables where there is no room for a large safe or vault, accord ing to National Safe Corp., Clearwater, Fla., a subsidiary of John H. Harland Co. Available in single- or double-door units, the Cashguard Chest has a oneinch-thick steel body, 1/2-inch thick doors and a heavy-duty locking bar. The chests also feature a three-tumbler combination lock, heavy-duty hinges, a relocking device and a deadlock. Lock ers for insertion in the chests come in a variety of sizes and have from one to six compartments. Write: Tom Seiter, National Safe Corp., 1908 Calumet Street, Clearwater, FL 33518. • Daktronics, Inc. The Venus 500 information display has been added to the line of products of Daktronics, Inc., Brookings, S. D. The unit has 32 col umns of lamps with seven bulbs per column and the capability for display ing five characters simultaneously. Sin gle- and double-stroke fonts are avail able in changing or traveling modes of New Products and Services operation. The Venus 500 displays time and temperature interspersed with mes sages. All circuits are solid state with data entry from a desktop keyboard control console, while a louvered shade screen and automatic dimming circuit maximize effectiveness day or night. Write: Daktronics, Inc., P.O. Box 299, 331 32nd Avenue, Brookings, SD 57006. • Steelcase, Inc. A full-color catalog featuring a complete family of Movable walls and hang-on accessories has been offered by Steelcase, Inc., Grand Rap ids, Mich. Movable Wall Standard Power panels are shown in use in a va riety of open-office situations and pho tographs are accompanied by plan views and exploded views of work station arrangements. The catalog also features a section on Paperflo, a series of V-shaped trays which are said to organize and simplify paper work in process. Write: J. A. Andrews, c /o Steelcase, Inc., 1120 36th Street, S. E., Grand Rapids, MI 49501. • Xerox Corp. A coin-operated ver sion of the Xerox 3100 copier, for use in banks and other public places, has been announced by Xerox Corp., Stam ford, Conn. The 3100 can be set to make a copy for any price— in five-cent increments— from a nickel to 75 cents and a single copy is produced in eight seconds on plain paper. A special by pass key allows use of the 3100 with out inserting a coin. The machine may be purchased or rented and present 3100 customers can have the coin-ac tivating mechanism installed on their machines. The 3100 is said to fit into a relatively small area and can be rolled on its wheeled stand. Write: Xerox Corp., Stamford, CT 06904. • Creative Industries, Inc. SwivelThru is a pass-through for bullet-re sistant counters that has been an nounced by Creative Industries, Inc., Indianapolis. Serving as a pass-through and a deal tray, the stainless steel Swivel-Thru is available as a drop-in unit or a counter-top model. It has only one moving part, can be used in exist ing or new counters and is available for class I or class II. Write: Creative Industries, Inc., 959 North Holmes, Indianapolis, IN 46222. 24 Hour Toll Free Telephone Service Weekly Confidential Market Report Marketing Seminars conducted for Clients in Your Area WRITE OR CALL F G L . 1200 35th St. West Des M oines. Iowa 50265 515 223-2200 24 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID -CONTINENT BANKER for October, 1 9 76 “ If there were any other way, we would have taken it, but our attorney recommended we file bankruptcy. That includes what we owe on the fam ily room. There’s no way in the world we can pay back the loan.” Bankruptcies are skyrocketing. And so are losses from unemployment, divorce, and extended illness. Cover your home improvement loan portfolio today with profitable, guaranteed protection from Insured Credit Services. As the world’s largest private source for HIL credit loss insurance, we’re currently working with over 1,000 leading banks. Call or write William F. Schumann, President, for details. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN SU R E D CR ED IT SER V ICE S INC.' 307 N. Michigan Avenue Chicago, Illinois 60601 312/263-2375 America's No. 1 insurer of home improvement loans. 4 ■ NEWS ROUNDUP Senate Kills Bank Bills Three banking bills that had been expected to be passed by the Senate have been killed. They would have allowed federal, state and local governments to collect in terest on official bank deposits; required separate Senate confirmation for the Fed chairman; and given federal regulators greater authority to order bankers to stop un sound practices. The first two bills contained extraneous “ N O W ’-account riders that would have permitted federally chartered fi nancial institutions in New York and New Jersey to offer interest-bearing checking accounts, provided the two states allowed state-chartered institutions to do likewise. The Senate Banking Committee was sharply divided on these riders. No attempt to revive the bills is expected in the near future. Paperwork Commission Hears ABA The ABA has advised that Congress needs to “ get a handle’ on the regulatory burden created by laws it passes, just as it has done in recent years with the federal budget. The advice was given before the Commission on Fed eral Paperwork by then-President-Elect W . Liddon M cPeters, president, Security Bank, Corinth, Miss. “ The tests of size, public need and economic impact can help to determine the justification— or lack of it— for individual paperwork requirements,” Mr. McPeters said. For example, some federal equal employment reporting and paperwork requirements apply only to banks over a certain work-force size. This sort of distinction might be applied elsewhere. Nine ABA-member banks have agreed to cooperate with the Commission in a study of banks’ paperwork burdens. CU Share-Draft Injunction Sought Suit has been brought against the National Credit Union Administration (N C U A ) by the ABA and a New York State bank seeking the withdrawal of authorization by NCUA for check-like share-draft accounts for federally chartered credit unions. The court has been asked to declare N C U A ’s approvals of share-draft and similar accounts for credit unions null and void and to issue a permanent injunction against the approval or offering of such accounts in the future. A share-draft account is a dividend (interest) earning account in a federal credit union. A share draft is a pay ment instrument that looks like a check and is used as a check. The complaint argues that commercial banks, by virtue of their state and national charters, are entitled to exclu sive authority to conduct commercial banking business, including the offering of accounts for third-party pay ments, such as checking accounts; that the NCU A’s ac tions violate the Federal Credit Union Act, since that law does not authorize share-draft accounts; and that NCUA and its administrator violated the Administrative Proce dures Act and usurped Congressional power to regulate 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis commerce by approving share-draft accounts for credit unions. Some 296 credit unions have been authorized to offer share-draft accounts. The accounts contain some $60 mil lion in unlawful deposits, the ABA said. Personnel Sharing Reexamined The Comptroller’s office is planning to take another look at the feasibility of sharing of facilities and personnel by bank trust and commercial departments. Banks have been asked to submit their views, comments and suggestions on how bank trust officers can serve best the interest of trust beneficiaries without violating securi ties laws against trading inside information. Several banks have asked the Comptroller’s office that an amendment proposed last year be adopted with modi fications. The amendment stated that facilities and person nel could be shared between bank trust and commercial departments, but added that the trust department should establish policies and procedures to make sure that invest ment decisions were based only on public information. Interested banks are not concerned over potential law suits resulting from any conflict the amendment would cause if it was adopted, but they have expressed a desire that the Comptroller’s office take a stand on the issue. Miss. Insurors Face Loss Insurance firms in Mississippi face the possibility of paying off the debt incurred by the failure of Bankers Trust Saving & Loan Association, one of the state’s largest S&Ls. State law requires all insurance firms doing business in the state to contribute proportionately to a fund designed to cover the losses of any insurance policyholder. Among the participants in the plan was American Savings Insur ance, the concern that insured the failed S&L. The S&L’s conservator said a recent audit disclosed the S&L had overvalued its assets by about $28 million. Since its true assets are only $9 million, the balance would have to be paid off by the special state fund. Efforts are being made to reorganize the S&L, which, if successful, would get the insurors off the hook. Bank, Insurance Interlocks O K d A U. S. district court judge in San Francisco has ruled that serving simultaneously as a director of a bank and an insurance firm does not constitute a violation of federal antitrust laws. The ruling upheld the contention of three major banks that the Clayton Act does not apply to bank directors sitting on the boards of non-bank corporations, as charged by the Justice Department last year. The suit involved Bank of America and Crocker Nation al, both of San Francisco; Bankers Trust, New York; and four insurance firms. Justice argued that banks and insurance firms are in competition in certain types of lending activities, particu larly mortgage loans. Federal laws generally prohibit per sons from being directors on the boards of competing institutions. M ID-CONTINENT BANKER for October, 1976 Foreign drafts and collections are processed faster w hen they go by the book. The b ook. Follow Bank of America’s Foreign Drawing and Remittance Manual and you can cut down on the usual processing time for overseas drafts and collections « —perhaps by as much as one half. Here’s how: we send you pre-authorized forms I for foreign drafts and documentary collections. So you ■ can give your customers an immediate confirmation. Then you can send the action form directly overseas. And even though you don’t have to route the processing through any office of Bank of America, everything still remains under our control. Why not send for a copy of our book and learn how you can speed up your foreign drafts and col lections. Just fill in the coupon and mail it to one of our correspondent banking sections. Go by the book and your processing goes a lot faster. BA N K of banko fA m erican t& sa•m em berfd ic A M E R IC A CorrGspondGnt Bank S g t v ic g M ID-CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Yes, I want to 90 by the book. Please have a correspondent banking specialist contact me about the Foreign Drawing and Remittance Manual, and your service. M AIL TO: Correspondent Banking Section, Bank of America Center, 555 California St., San Francisco, CA 94137 OR: Correspondent Banking Section, Bank of America Tower Bldg. 555 S. Flower St., Los Angeles, CA 90071 NAME T IT L E BANK AD D RESS ! CITY 1 ( PHONE STATE ) ZIP fl 27 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sketch of completed six-story structure now being built for Union Bank, Kokom o, Ind. Upon completion of new building, existing bank (not show n) w ill be torn down and replaced by p laza show n at left. Com pletion is expected by Ja n u a ry, 1978. Expertise of Bank Construction Company Lightens Load of Building Committee Union Bank, Kokomo, Ind., Solves Space Problem NION BANK, Kokomo, Ind., is a conservative bank— and a profitable one. Its shareholders appreciate the good dividends they have been receiv ing, not to mention the fact that the bank’s stock sells at a premium. But the bank has outgrown its 60year-old building. On busy days, cus tomers can barely make it inside the lobby, where they face the prospect of standing in line for 10 minutes or more before reaching a teller. Departments have been relocated in adjacent build ings due to lack of space. Dimensions of the bank building are such that work flow must be vertical rather than hori zontal, increasing costs and contributing to inefficiency. What’s the solution? To remodel or to build? Where can a bank go to ob tain reliable projections that will enable its building committee to make the cor rect choice for future housing for the institution? Will money spent on a re modeling project be wasted if the proj ect amounts to only a stopgap attempt to keep expansion costs low so earnings will not be greatly affected? These are some of the questions that filled the minds of management and directors of Union Bank recently. Man agement knew something had to be done to alleviate the crowded condition of its premises, but it wanted to ac complish its purpose at a minimum cost in order to keep earnings high. Experts were called in by the build ing committee of the board to assess the situation. Among the consultants By JIM FABIAN Associate Editor U was Bank Building Corp.’s Central Di vision, headquartered in St. Louis. Bank Building’s estimate to remodel the bank’s six-story building was $1.7 million. Remodeling, however, would take care of the bank’s needs for only five to ten years, according to Bank Building’s projections of the Union Bank’s future growth. The remodeling project, therefore, could not return its investment before it became obsolete. A compromise plan was worked out, involving removal of the top three floors of the existing building and construc tion of a three-story annex. While the plan was sound as far as future re quirements were concerned, it was not recommended by Bank Building or bank management because, among other things, the existing building would be costly to maintain in compari son with the new addition. Also, it was generally agreed that a new-old build ing combination would not be satis factory. Bank Building’s people asked for and were granted permission to present plans for an entirely new structure, one that would fulfill the bank’s space re quirements for 15 years or more, enable the bank to operate efficiently, be eco nomical to maintain, enable the bank to position its departments in an order ly way and make the best use of its personnel. MID-CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A break-even analysis of the proposed project was prepared that convinced the building committee that the bank could afford the $3.2-million project. Full agreement was reached and groundbreaking ceremonies for the new project were held July 2. The four-story-plus basement struc ture will give the bank about 50% more space, said William J. Carmichael, chairman and president, during a recent interview with M i d - C o n t i n e n t B a n k e r . In addition, after the new structure is occupied, the old building will be torn down and a tree-lined plaza put in its place. The basement of the new building will contain a lock box department, a safety deposit department 60% larger than the present one, a travel depart ment, a combination meeting room / lounge, a board room and lounges for officers and executives. The main level will house the bank ing floor, a cashier’s office, new ac counts, public relations/marketing and installment loan departments. The second floor will include offices for executives, a conference room and the commercial and mortgage loan de partments. About 40% of the space on this floor will be reserved for expansion. The trust department will occupy half the third floor, with the balance to be reserved for expansion. The top floor will house data processing, personnel, controller and bookkeeping depart ments. According to Mr. Carmichael, the 29 new bank building is the first structure of any size to be built in downtown Kokomo in more than 40 years. He said he hopes the project will spark revitali zation of the area, and initial response indicates that rejuvenation is in the air. The exterior of the 51,000-squarefoot building will feature gold mirror glass and beige and dark brown brick. Two sides will be done in each of the materials. Interior decor will be high lighted by brown, persimmon and gold tones, glazed ceramic tile floors, oiled oak furniture and a luminous vaulted ceiling to simulate a skylight. Union Bank’s new building will carry a written guarantee from Bank Build ing, according to John P. Mushill, vice president and general manager o f the Central Division. Major portions of a project are covered for at least five years and minor portions for at least three years. ‘It’s important that a firm be able to stand behind its guarantee,” Mr. Mushill said. "Bank Building has been in business for 64 years, during which time it has completed more than 6,000 projects. This record puts the custom er’s mind at ease because he knows the firm will be around if something should go wrong with the building in the fu ture.” Many banks cannot afford to take a chance with a shaky guarantee, he con tinued. They are concerned about tight ening their expenditures so they have sufficient reserves in their capital ac counts. This has made bankers take hard looks at the dollars available for new buildings. This is why Bank Build ing offers so many front-end services prior to the actual design phase o f a project. These services minimize client risk by providing facts on which a banker can make a sound decision. Among the front-end services sup plied clients by Bank Building are market evaluation/penetration, which determines the total deposit potential of an area based on demographic char acteristics including education, income, occupation and projected growth fac tors for the area. Isolating these prime geographic areas simplifies the siteselection process, Mr. Mushill said. A method of measuring the strength of a financial institution’s competition in an area of its community also is available from Bank Building. The measurement is determined through an analysis of existing financial institutions, particularly their past and present de posit and asset growth trends, existing and proposed branch office locations and determination of marketing and fa cilities philosophy. This isolates the competitive influences within the mar ket, enabling the client to determine the best spot for a branch or facility. Once high-potential areas have been 30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis determined, Mr. Mushill said, another Bank Building service isolates the pri mary and secondary sites within the prime subsector market locations that will provide the greatest opportunities for new business. Included is analysis as to traffic capacity, ingress and egress, proper drive-up system capability as well as convenience. Another service provided by Bank Building is the preparation of applica tions for approval by regulatory agen cies for a location of a branch or home office, establishment of a new branch or branches an d /or a new charter. One of the specialized services Bank Building is providing on the Union Bank project is construction risk man agement. “ The technology of construction has multiplied so rapidly in the past few years that specialized materials, meth ods and people are required on almost every phase of a major project,” said Richard B. Henderson, general manager of Construction Risk Management. Because many variables are involved, there is an increased need for a single source of responsibility. Hence, he said, the concept of construction risk man agement, which boils down to a method of managing a project to ensure maxi mum value within the client’s needs, desires, budget and time frame. Bank Building’s Construction Risk Management is an organization of ar chitects, construction specialists and es timators managing the planning, de signing and construction of a project under an agreement with the client, Mr. Henderson said. Alternative construc tion systems are examined and, follow ing an evaluation of the various sys tems, a design estimate model is sup plied to the architectural and engineer ing team. The design phase is monitored on the basis of compliance to the model. The construction document phase is moni tored for compliance to the approved budget and timetable. Bidding meth ods, subcontractor recommendations, construction coordination and other ser vices may be provided by Construction Risk Management, whose services are compensated by a percentage of the construction cost or a fixed fee. The service also is available to owners and lenders of outside building projects. After a facility is completed, the owner is visited periodically by a Bank Building representative to ensure that all components are functioning proper ly, Mr. Mushill said. Minor repairs are taken care of on the spot. Another service provided by Bank Building is a guaranteed estimate, Mr. Mushill said. Independent architects often make guesstimates that are con sidered to be reliable and are used as a basis for financial planning until drawings have been made and bids re ceived. Then the architect’s estimate sometimes is found to be extremely low and tbe result often is cancellation of the project. Bank Building’s plan enables the inhouse architect to work with the con struction department in ascertaining an estimate, Mr. Mushill said. Thus, the cost can be guaranteed within 10%. If the final bid comes in under the esti mate, the banker realizes 80% of the savings up to 10%, and 100% of the savings after the first 10%. According to Mr. Carmichael at Union Bank, Bank Building won the contract for the bank’s new building be cause of the convenience of having one firm handle the entire project, from fu ture projection of business through furnishing and decorating the building. He also cited the firm’s reputation as being the nation’s leading designer and builder of financial facilities. “ The job required a specialized firm,” he said, “ and bank management liked the concept of a complete package from Bank Building Corporation. * * Luminous vaulted ceiling in banking lobby is designed to sim ulate skylight. Interior decor w ill feature brow n, persimmon and gold, with glazed ceram ic tile floors and oiled oak furnishings. M ID -CONTINENT BANKER for October, 1976 Building Firm Executives Discuss Changes in Banking T W O MEN who vividly remember the trends in banking facilities over the past 30 years are Carl Weis and William Cann, top executives of Bank Building Corp., St. Louis, said to be the nation’s largest bank construction firm. Mr. Weis, who joined Bank Build ing in 1949, was recently elevated from senior vice president to president, and Mr. Cann, who has been with the firm since 1948, is now vice-chairman. The two men reminisced about bank facili ty trends during a recent exclusive in terview with M i d - C o n t i n e n t B a n k e r . Back in the days following W orld W ar II, Mr. Cann said, remodeling was necessary to accommodate then-new posting machines. A result of the in stallation of these machines was addi tional space for remodeling, since one machine could do the work of several humans in a more compact area. In the past, Mr. Weis said, when a bank’s premises became crowded it simply enlarged them, adding about 10% more space. It was as simple as that, he said. Today, the situation is approached from a much more busi nesslike basis— the economic feasibili ty route that determines project details by means of studies. The package of front-end services now supplied by the bank building expert plays a large role in determining the profitability of the facility for the client. This is a completely different ap proach from that of the days when lit tle time was spent in the study of mar ket area profiles, or the use of com pu ter programs to analyze census tracts, he said. An important development in the bank building industry was the authori ty granted to financial institutions in many states to establish branches. This triggered a solid growth period for institutions and builders in the 1950s. Drive-ins, as we know them today, were virtually unknown in the early 50s, Mr. Cann said. Some banker got the idea to cut a hole in the wall of his bank so he could install a primitive drive-up window. This resulted in the development of the drive-in concept, which brought a need for the creation of traffic-flow studies and sophisticated installations. Another important development was the growth of the thrift industry, which resulted from the housing boom of the ’50s, Mr. Cann said. S&L com petition forced banks to move out into the community and develop new ser vices. Bankers came to realize they must place their institutions where the market is, and the market was becom ing increasingly retail-oriented. In the old days, Mr. Weis said, the bank president was the kingpin. He owned most of the stock and made the most important decisions. He more than likely had one or tw o sons— or sonsin-law— coming up behind him. If he built a bank building, it usually was a monument to himself, whatever the cost. Today’s bank president is likely to be a graduate-degree holder, a trained professional manager— and perhaps not a major stockholder, Mr. Weis contin ued. This new breed of president rec ognizes the expertise that bank build ing specialists now have and thus they don’t hesitate to call on firms like Bank Building for advice. Today’s bank president is likely to find himself concerned about the cost of a new building, he said. He has to justify every expense and realize a re turn on his institution’s invested capi tal. Construction costs have skyrocket ed, as have salaries of bank personnel. Any technique that can result in the saving of costly space and labor means that the money saved can be placed toward the purchase of late-model equipment, the use of which can re duce operating costs. Yet, Mr. Weis said, a substantial group of people don’t like to be waited on by machines! Some financial institu tions have learned this when they in stalled automated teller machines. One of the advantages bankers con templating a new building have today that they didn’t when Messrs. Weis and Cann joined Bank Building is the package of services that provide eco nomic, site location and marketing in formation. These new services, available only for the past few years, Mr. Cann said, can assist a banker in determining the market potential of his bank’s trade area; they can predict where popula tion growth will be in the future; they can tell him if a site will develop prob lems as far as traffic flow is concerned. If too many negatives are predicted, it behooves a bank to stay put or think about relocating rather than putting up a new building on or near the present site. Mr. Weis cited situations in metro politan areas where banks have pulled up stakes and moved to different areas due to deteriorating conditions in their neighborhoods. He also cited instances of banks fighting to improve their neighborhoods and said they seldom receive the credit they deserve for their vigorous efforts. Mr. Cann took a look into the future. He sees the various types of financial institutions becoming homogenized in the years ahead. Thrifts will lose their interest differential and will be able to offer services similar to those now of fered by commercial banks. Credit un ions will becom e more aggressive and competitive. This homogenization will force individual institutions to identify and service specific markets. In turn, the marketing thrust of a bank or thrift W EIS CAN N M ID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Continued on page 42) 31 From Photos A r t Is Im porta; This tw o-story-high, 4V2-ton, stainless steel architectural sculpture stands at north base of new M ercantile Tower, w hich houses St. Louis-based HC, M ercantile Bancorp. C alled "Syn erg ism ," w ork integrates tow er's architectural trian g le motif in series of three intricately a rrang ed stainless steel cubes, one inside the other, and rests on north patio's tifed surface without noticeable sup port, perfectly b alanced on one point of its exterior cube. It w as created by 5t. Louis sculptors W illiam Conrad Severson and Saunders Schulte and is said to be first m ajor art w ork in St, Louis designed to integrate h o ld in g 's specific architecture and en vironm ent into single sculptural expression. r » '- i* / *> ,* B ANK BUILDINGS used to be strictly utilitarian and contained only what was needed to conduct bank ing business. However, in recent years, the trend has been for these structures not only to have unusual interior and exterior designs— a bank building often is the showplace of its community— but also to make use of art and sculpture inside and out. The St. Louis area’s Mark Twain banks, for example, have a permanent contemporary art collection so extensive that even with annual rotation, a bank’s customer will see fresh new displays ■ This Marc C h a g a ll m osaic, "The Four Seaso n s," is located in First Nat'l P laza in center of C hicag o's dow ntow n business loop. Part sculpture, part m ural, part architecture, w ork is 70 feet long, 14 feet high and 10 feet w id e —nearly 3,000 square feet on its top and four sides. It's m ade up of hundreds of tons of colored stone and g lass from around wcrlld. Its cost w a s underw ritten by W illiam Wood Prince in m em ory of his adoptive fath er, Frederick Henry Prince, turn-of-century railro ad financier. W ork belongs to Art in the Center, nonprofit organization form ed to own m osaic and for other public a rt purposes. H ow ever, upkeep of m osaic is m aintained by C h icag o 's First Nat'l, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LEFT: M ain Bank of C hicag o's real estate and trust dept, featu res tw o m ajor art w orks: Frank Piatek's "O siris the D eadm an's Starry Tree" (I.), oil on can v as, and Keith M orrison's "U nder the El," also oil on can v as. Both artists are C hicag o "im a g ist" painters. BOTTOM: Jam es Tosto (I.), pres., Main Bank, C hicag o; Sidney J. Taylor (r.), ch.; and Roberta Aronfeld, m arketing dir., meet in Mr. Taylor's office under Roger Brown painting, "A Sunday Afternoon a t the G rand Sla m ," oil on can vas. Mr. Taylor began bank's a rt collection in 1972 w ith acquisition of this w ork. Collection since has grow n to 24 m ajor w orks. Focal point of lobby of new home of First N at'l, Sioux Falls, S. D., is this 5 8 x 1 1-foot copper re lief sculpture mounted directly above tellers a re a . Conceived by W illiam Saltzm an of Min n eap olis, professor of art, M acalaster College, it is his conception of exp ansion and grow th that banking promotes in a community. W ork has more than 300 pieces of artistically per forated copper shafts, w hich required about 1,000 screw s to mount. First N at'l also has hung throughout its building 40 photos taken of Sioux Empire by Joel Strasser. MID-CONTINENT BANKER for October, 1976 utdoor Scu; M a n y Banks TOP: Overlooking pool at Citizens Fi delity of Louisville's Z ach a ry Taylor O f fice is this bronze sculpture, called "L an d sca p e ." Created by local artist Barney Bright, it has draw n architec tural students from around country and has been featured in architectural m ag azin es since it w a s installed in 1958. SECON D FROM TOP: This is sam ple of black and w hite photos of Shaker ob jects Citizens Fidelity of Louisville se lected to d isp lay a s link between bank and heritage of its region. each year for 10 years. As a spokesman for these banks points out, lobbies filled with art and paintings provide a warm change from the vinyl paneled sterility of many bank buildings. Customers return with friends to show them exhibits, thereby attract ing potential customers into a bank. The press considers the shows truly newsworthy, unlike the traditional rib bon cutting, and provides the Mark Twain banks with thousands of dollars of free coverage each year. Examples of the way various banks make use of paintings and sculpture ap pear on these pages. A B O V E : M ark Tw ain banks, located throughout St. Louis County, Mo., feature vario us w orks of art, including this w ire construction by Susan Eisler, asst, professor, fine arts dept., Florissant V a lle y Com m unity College, St. Louis County. RIGHT: Robert C. Butler, pres., M ark Tw ain N at'l, Ladue, Mo., and Sheila W eaver, sec., vie w Ernest Trova work to be hung in bank. This sculpture-like version of logo of Security Nat'l, K an sas City, K an., decorates a re a out side bank's new facility, Security Nat'l B an k/ W est (p artially seen at r.). G raceful design m akes logo seem to be " w a v in g " in its p ark like setting. Elaborate Italian glass mosaic has been erected in lobby of First State, C o n w ay , Ark. Located on panel facing north entrance to bank, it w as designed by mosaic artist and sculptor Merritt Y e arsle y of Dallas. Creation includes more than 120 shades of glass, m anufactured in Italy by fam ily now in fourth generation of creating this unusual glass. M osaic—30 feet w ide and three feet high and containing 280 pounds of g la ss—represents four a re a s that h ave played part in heri tage of Faulkner County and central A rk a n sa s. They are: education, M ID -CON TIN EN T B AN K ER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis industry, agriculture and recreation. At fa r left on m osaic is recreation section depicting a re a 's abu ndan ce of lakes, stream s and rivers. Next is education, depicted by group of gradu ates in caps and gow ns in front of school-type building. Industry is next and is represented by industrial buildings. At extrem e right is agriculture, sym bolized by several types of cattle, part of soybean and rice field and farm equip ment. 33 A Showcase of New and Renewed Facilities TMAGINATIVE might be the best word to describe the new and renewed A bank facilities that have been opened during the past year in the MidContinent area. Innovative architectural designs have been transformed into brick-and-mortar buildings that are enabling banks to offer services to their customers more efficiently than they did in the past. This is the striking headquarters building of North Fort Worth Bank, a five-story structure combining the new and the old. The contem porary p yram id al configuration is constructed of brick salv ag e d from old buildings in the nearby Fort Worth stockyards. The old bank building w a s incorporated into the new design, in order for operations to continue throughout construction. The bank has 24 inside tellers w ind ow s and 10 drive-up lanes. Reflecting the historic aspect, on disp lay during the bank's grand opening w a s the C onfederate flag used by Robert E. Lee at Appom attox in 1865. Please see page 36 for more bank buildings from in and around the Mid-Continent area. H ead quarters for City Savings Bank, DeRidder, La., is this Spanish Southw est-style building. Large cedar beam s, a red tile roof, stucco and M exican tiles are used inside and out, w ith the interior having a b e ig e /b ro w n and blue color scheme. The low er photo show s the board room, w hich also serves a s a community room featuring a living-room atm osphere accented by the w ood-burning fireplace. In the Latin style, the building has an enclosed patio for dining. The rounded arches at the entrance of State Bank, Satan ta, K an ., a re offset by the squared overhanging pieces above them. The building has 6,700 sq. ft. of space on its ground level and 2,500 sq. ft. of space in the basem ent. The "Fiesta Room ," a community room, is a v a ila b le to the public and w ill accom m odate 60 persons. Olton (Tex.) State is quartered in this remod eled and exp an ded building. Additions include a covered a ll-w eath er drive-up, computerized bookkeeping, a trust departm ent, a rental of fice and a large basem ent for storage. A clock now hangs at the building's main street cor ner and provides time and tem perature. The community room (bottom photo) includes a com plete kitchen, w hile a divider can be draw n across the room's center, enabling it to handle more than one event at a time. 34 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The facilities of First N at'l, Ardm ore, O kla ., are located on two separate sites, w ith the Main Office and customer parking on one site and the drive-up w ith a sm all attached lobby and em ployee parking on an adjacen t block. LEFT: The Main Office is tw o stories tall and has been designed so three more stories m ay be added. The structure's exterior is faced w ith precast a g g re g a te concrete panels of a sculptured and rounded design, creating a repetitive pattern of light and shadow . Recessed betw een the panels a re large exp an ses of bronze-tint g lass set in duronodic alum inum . The land scaping incorporates broad w alk s and p la z a s of exposed a g g re g ate concrete within brick patterns. At I. can be seen the bank's w ate rfall. RIGHT: The design of the drive-up is an expression of the Main Office in m iniature. There are six lanes and pro visions h ave been m ade for two addition al lanes. A w alk-in facility featu res three tellers stations and a re a s for special services and seating. M ID-CONTINENT BANKER for October, 19 76 Robertson Banking Co., Demopolis, A la ., is tbe oldest bank in M arengo County, so its new home is an adap ted and restored three-story red brick building representative of com m ercial architecture of the 1890s. Inside, the atm o sphere of the last century has been captured, a s seen in this photo of the first floor, through the use of muted colors and indirect lighting. The tellers counter (r.) follow s the style of the antique furniture that is used. N orthw est N at'l, Fayetteville, A rk., operates from this building, which is of brow n brick, smoked g lass and oxidized m etal. The exp an se of g lass provides an excellent vie w of the sur rounding a re a , and a brick floor enhances the foyer and tellers a re a . The rem ainder of the bank's interior is carpeted. N orthwest Nat'l is accented w ith a va rie ty of plan ts and original a rt w ork that carry out the contem porary dec orating theme. The bank's 24-hour autom ated teller is com pletely covered and the three driveup lanes a re served by a teller in the fa r left section. »»» > First N at'l, Effingham, III., is headquartered in this energy-conserving building that has de signed-in convenience featu res for the hand i capped. The brack exterior is highlighted by so lar bronze w in d o w s and harm onizes w ith the architecture of Effingham 's dow ntow n business airea. Special a re a s h a ve been set asid e within and outside the building for d isp lay s and a "Tot Lot" playground a re a is bordered for safety w ith a berm of bark- and ivy-covered earth to cushion fa lls. Bank officials say the tim ber-form p lay equipm ent often is m istaken for sculpture. City Bank, Jackson,, M ich., is located in Jackson Square, a com m ercial park at the tow n's cen ter. The bank's building and a Sheraton Inn (not show n) a re constructed over a 460-car parking lot from w hich the bank m ay be en tered. A covered shopping m all is located be tw een the hotel and bank, and the remote drive-up is accessed e asily from one of the a re a 's m ajor thoroughfares. Brick p a rap et w a lls ranging in color from buff to d a rk beige dom inate the exterior design of Rogers County Bank, C larem ore, O kla . A bronze-finished m etal fa scia and full-length solar bronze w in d o w s accent the building's front; the bank's drive-up w a s refurbished to complement the design. Rogers County Bank's canopied drive-through protects customers en tering the lobby in bad w eath er. Inside, terra cotta and burnt orange dom inate and a fire place is the center of attraction in the oakpaneled w aitin g a re a . Also decorating the open-space interior are several original paint ings, including a v a lu a b le oil of W ill Rogers. A highlight of the interior of Security Bank, M iam i, O k la ., is the staircase leading to the mez za n in e ; both a re decorated w ith stucco and heavy w ooden moulding. The interior is decorated throughout w ith natural brow ns and greys, w ood finishes and contrasting ceram ic tile. Exposed brick interior w a lls and redw ood beam s and columns reinforce the w estern contem porary a p pearan ce and carry out the exterior design theme. The bank's exterior features garden w a lb that p a rtia lly screen the parkin g a re a w hile a fountain and land scaping give w arm th to the surrounding a re a . M ID -CON TIN EN T B AN K ER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 LEFT: The lobby of City N at'l, W ichita Falls, Tex., has a 34-foot-high ceiling w ith skylights that spotlight the free-standing tellers island. Floor-to-ceiling w ind ow s overlook a sunken courtyard with a pool and w ate rfall at its center. RIGHT: The drive-up continues the "re ctan g le" theme with heavy stone elements in evidence throughout. Two-story-high w ind ow s highlight the entrance to First State, Larned, Kan. The interior features a centrally located open-space lobby sur rounded on three sides by offices and by the tellers line on the fourth. A three-lane drive-up is to the rear of the building and uses under ground pneumatic tubes. The new Main Office of G tiz e n s Bank, Hartselle, A la ., is three stories tall and has driveup facilities in a se p arate building on its lot. The Main Office design is m assive brick verti cal columns that surround the w indow a re a s. Offsetting the verticals are harizonal lines of aggregate concrete that shade the first- and third-floor w ind ow s from sunllight. R affle P rize: NABW Elects Anderson To Top Post; Calliham Is Named Vice Pres. Bette B. Anderson, assistant vice president, Citizens & Southern Nation al, Savannah, Ga., has been elected president, National Association of Bank-Women Inc., for 1976-77. She succeeds Betty L. Steele, vice presi dent and secretary, Brenton Banks, Inc., Des Moines, la. Other new N ABW officers are: vice president, Edith E. Calliham, vice pres ident, First National of South Caro lina, Charleston; secretary, Patsy T. Barnes, vice president, American Bank, Baton Rouge; and treasurer, Josephine M. Webster, vice president and invest ment officer, American Fletcher Na tional, Indianapolis. Fifteen regional vice presidents were elected for the coming year. They and the regions they serve are: Florida— Claire M. McMillen, assistant vice pres ident, Flagship Bank, Orlando; Lake— 36 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — Margaret Self ridge, vice president and board secretary, United American Bank, Wichita; N ew England— Rosalie A. Simeone, vice president, Natick (Mass.) Five Cents Savings Bank; North Atlantic— Helen R. Wetzel, vice president, cashier and trust officer, First National, Waterloo, N. Y.; North Central— June P. Hanson, assistant vice president, Second Northwestern Na tional, Minneapolis; Northwestern— Esther M. Murphy, assistant vice president and manager, news bureau, Seattle-First National; Rocky Mountain— Betty B. Perkins, vice president, First National, Albu querque; South Atlantic— Mary P. Carlton, vice president, Bank of Vir ginia Co., Richmond; South Central— Joyce M. Hardwick, assistant vice pres ident, Security Bank, Corinth, Miss.; Southeastern— Annie Rose Reynolds, vice president, North Carolina Nation al, Raleigh; Southern— Paulette Whit worth, vice president, First American National, Nashville; Southwestern— Melda A. Rice, senior vice president, First Jacksonville (Ark.) Bank; and W estern— Jane Vasconcellos, vice pres ident, Bank of Hawaii, Honolulu. Elected to serve two-year terms as quadrant directors are Donna S. Legan, vice president and branch manager, Merchants National, Indianapolis, for the Northeastern Quadrant; and Jane McGavock Smith, vice president, First & Merchants Corp., Richmond, South eastern Quadrant. Bicentennial-Quilt Exhibit Is a Thank Y o u to Bank WEBSTER BARNES Patricia Ann Enos, vice president, First National, Huntington, Ind.; Middle A t lantic— Joan L. Palmer, manager, Dela ware Trust, Fenwick Island; Midwest Customers of Palatine (III.) National have seen the area’s first exhibit of a Liberty Bell quilt made by 20 workers of the Palatine Township Senior Cit izens Center. The Center’s director was on hand for the occasion, explaining details of the 90-inch by 180-inch quilt to visitors and selling raffle tickets for the work. The Center director was dressed in a bright red-and-white Martha Wash ington dress and the display consisted of the quilt hanging from the institu tion’s balcony rail, a maple rocker and an old-style sampler that extolled the many pleasures of a warm, home-made quilt. “ The Center chose Palatine National as the first place to have the display,” the director said, “because the people here have been so nice to us and have helped the Center in so many ways.” The quilt later was exhibited throughout the area. M ID-CONTINENT B AN KER for October, 1 9 76 Call Red. If lie's in. Glenn P. "Red" Ward, Senior Vice President and Manager, Cor respondent Bank Divi sion, is one of the busiest and best bankers around. As Dean of the cor respondent bankers in Oklahoma, he has served longer in the field than anyone else. And that experience shows. He knows the Fourth's specialists. He knows exactly which one can help you with your needs. And, as past President of the Oklahoma Banker's Association he knows banking. Period. ■■ bankei «6 M ID -CON TIN EN T B AN K ER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Keeping Employees Cool While Moving Them To Their New Locations By ROSEMARY McKELVEY Managing Editor O VER several months, or perhaps years, you’ve made the decision to remodel your old building or erect new quarters; you’ve looked at other bank buildings for ideas; you’ve had representatives of various construction firms call on you soliciting your busi ness; you’ve talked with architects; and, finally, you’ve approved building or re modeling plans, and actual construction begins. As the time for unveiling the new or remodeled quarters approaches, there’s one important detail that shouldn’t be overlooked: moving your employees; that is, keeping them informed of prog ress on the project, preparing them for the actual move. All kinds of rumors can fly during a building or remodeling program. Although these rumors may be harmless, it’s better for banks to keep their staffs informed. Then, not only do the employees themselves have the correct information, but they also can answer knowledgeably customers’ questions about the scheduled move. St. Louis’ Mercantile Bank and CNA Insurance Corp., based in Chicago, are excellent examples of how to handle employees during a moving program. Mercantile Bank began moving em ployees into its new 35-story Mercan tile Tower in September, 1975, and completed the moving job early this year. However, in August, 1975, about a month before the first contingent of employees was moved, the bank’s mar keting, advertising and public relations department began publishing a news letter called Mercantile M oving Memo. Put together by Marj Longo, the memos were designed to keep every employee of the bank “fully informed as to the when and where regarding department moves into the new tower, the renovating of and moves into the main bank building and the innovations built into the Mercantile Tower.” The first memo, dated August 20, 1975, revealed that the first moves into the tower were scheduled for the week end of September 19 and that all moves would be made over 11 consecutive weekends and affect some 1,600 staff members. The memo went on to tell about orientation programs that would be held each W ednesday for depart ment personnel scheduled to move the Em ployees of CN A Insurance Corp., Chicago, enjoy coffee and rolls after com pleting move from one location to another. C N A provides free refreshm ents for staff mem bers of each departm ent after it's moved. Firm also distributes "su rv iv al kits," w hich contain headache tablets, stomach pow ders, etc., and can dy bar. In addition, each em ployee receives plant from CN A on first d a y he or she is at new location. 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fallowing weekend. It also emphasized that no employee was expected to work the weekend his or her department was moved; he or she was just to leave the old location on Friday and report to the new one the following Monday morning. As the memo pointed out, the bank’s operating department was to take care of the moving. Subsequent memos described various aspects of the new tower, including its TRAM automatic distribution system, accompanied by a drawing of it, and the new Centrex telephone system and various bits of information about the tower, such as how many eight-hour man days were needed to build it. Be cause the tower elevators are competely computerized, one memo emphasized the importance of pushing only the up or down button— not both— and of not standing in an elevator doorway. As the memo pointed out, these actions cause confusion in the computer’s “brain” and delay a car from proceeding to its next destination. Each memo listed the particular de partment that was to move the follow ing weekend. Changes in the moving schedule and reasons for the changes were announced in the memos. Thus, all Mercantile Bank employees knew what was going on, not just those in the departments affected. At first, the memos were published every week to 10 days, then every two or three weeks, as needed, and were discontinued after the moves were com pleted. They were distributed within the bank to each employee. CNA Insurance Corp. has initiated a “ Restacking Program” in conjunction with staff reshufflings at its home office in Chicago and at various regional of fices around the country. The objective is to turn the moves into fun projects for employees as much as possible. About a week before a department is to be moved, CNA sends an “ alert” letter to employees involved in that move. Bearing a caricature of the late W. C. Fields with smoke pouring from under his straw hat, the letter is head ed, “ Don’t Blow Your Stack!” The lat ter word is tied in with CNA’s descrip tion of the various moves as office “re stacking.” The letter assures recipients that the firm will handle everything: “ W e’ll move your desk, chairs, office equipment . . . anything that’s yours from the pictures o f your family to your flowering begonias.” The letter tells the employee when his or her department is scheduled to move and points out how the move will result in improved work flow and ease of operations. Then, the day before each move, in an extremely lighthearted vein, CNA distributes “ survival kits” to employees being moved. These kits, plastic tote (Continued on page 92) M ID-CONTINENT BANKER for October. 1 9 7 6 TELL US WHERE YOU WANT IT AND W E’LL SEND YOU A BANK Recently approved Illinois regulations gov erning new facilities can represent both a challenge and an opportunity. There are several ways Diebold can help you meet the challenge and make the most of the opportunity. and add people. The size range begins with 288 square feet . . . includes buildings with as many as 6,000 square feet. Best of all, you’re not swamped with decisions about building details. Instead, you can be build ing business for your bank. Our Diebold Financial Buildings, for ex ample, can enable you to be in business with a remote facility in as few as 90 days after signing the order. And these are com plete buildings — you simply plug them in We’ll be happy to send you full color litera ture detailing the advantages of Diebold Financial Buildings. A call or note will bring it to you. You’ll probably want to consider walk-up or drive-in banking for a new facility. With the broadest range of remote banking systems in our industry, Diebold can help you decide what system is best for you and your customers. You can make a new facility productive 24 hours a day with Diebold TABS Total Automatic Banking. It’s the easiest-to-use system on the market, and banks of all sizes are writing impressive success stories with it. DIEBOLD I N C O R P O R A T E D B A N K & B U S IN E S S S Y S T E M S C A N T O N , OHIO 44711 " We know how to help you " M ID -CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 When Banks Are Undecided About Building, Relocatable Structures Could Be Answer H AT E FFECT will automated teller machines (A T M s) or pointof-sale (POS) terminals have on con struction of new remote branches of banks? How does a banker determine the size of a facility, type of construc tion and amount of dollars to spend on installing a new facility? One answer during this period of uncertainty could be to use precon structed, relocatable buildings. Such structures, say their manufacturers, can be erected quickly and inexpensively, and banks can conduct business from them while conducting in-depth studies to determine whether permanent build ings or ATMs— or perhaps anything at all— should go there. For instance, Commercial National, Kansas City, Kan., was confronted with the problem of getting a facility into operation as soon as possible to meet competition in a certain geographic area. The bank didn’t want to spend a large amount of money on building this facility without knowing what size or type of building would be needed. The bank called on Son Corp., Wichita, to deliver and install a perma nent, yet transportable, building that would be used from two to six years. During this time, Commercial National will have an opportunity to determine exactly what size and type of building it wants to construct, if, in fact, the location itself proves to be successful. In other words, the bank was given a chance to “ breathe” and scrutinize the overall project—building size, location and effect of Ad Ms and POS terminals on the branch facilities. According to Son Corp., Commercial National reduced its capital building expenditures considerably. In fact, says Son, if the structure is transported to another location and utilized as a permanent branch, then all monies spent on it will be recovered by elimi nating most of the building and equip ment cost of the new location. The building itself was erected to match Commercial National’s down town motor facility, with the same type of exterior cladding, overhang and fas cia. The bank thus was able to main tain a similarity to present architectural designs. Lloyd Burton, vice president of the bank, said another benefit the bank de rived was that all of the top banking personnel could continue with their bank duties. No one was assigned as a full-time construction project man ager, and so many personnel dollars were saved. The new Commerce Bank, Grand view, Mo., opened for business recent ly in a relocatable building supplied by Space Bentals, Bala Cynwyd, Pa. The 1,440-square-foot modular structure was delivered to the bank site by the firm’s Kansas City office and was in stalled and made ready for operation in just 30 hours by the bank’s own con tracting firm, with Space Rentals per sonnel supervising. According to Norman Holst, director of real estate for the bank’s parent HC, Commerce Bancshares, Kansas City, the bank decided to use modular construc tion to help satisfy a rigid time frame and to afford itself the option of mov ing the new structure to a future facil ity location. Mr. Holst expects that the Grandview building will be replaced by a conventionally constructed building This relocatable building, supplied by Space Rentals, Bala C yn w yd , Pa., houses new Commerce Bank, G ra n d vie w , Mo. M odular structure, w hich contains 1,440 square feet, has four tellers w ind ow s, larg e customer w ork a re a , four new business desks, private offices for bank m an ag e ment, em ployee lounges and storage space, a s w ell os drive-up w ind ow and night depository. Bank plans to replace it eventually w ith conventionally constructed building and rem ove this structure to another location. 40 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This perm anent, yet transp ortab le, building is being used by Com m ercial N at'l, K an sas City, Kan., to house facility. By turning to re locatable building for its facility, bank w as able to open for business fast, yet still have time to study location to see whether it w ill w arran t erecting perm anent building later. and then the present building will be moved to a rural location and rein stalled for permanent use. The structure’s interior has four tell ers windows, a large customer work area and four new business desks. There also are private offices for bank management, employee lounges and storage space. In addition, there are a drive-up window and night depository. Only the specialized bank equipment in Commerce Bank of Grandview was not provided by Space Rentals. In discussing the place of modular temporary/permanent structures in the Kansas City area, Mr. Holst believes there will be wider acceptance among some area banks. However, he says he doubts that the modular buildings will replace brick and mortar in general facility banking. Mr. Holst adds, “ With the advent of electronic funds transfer and ATMs, and the growth of paperless money sys tems, the banking industry is forced to look even harder at any capital expendi tures. Modular construction is one sub stitute that allows a bank to sit back and review its markets.” Lincoln Bank, Ardmore, Okla., found a relocatable building the answer to a problem it was having with a planned off-premises ATM installation. The bank couldn’t locate the ATM on the prime site at a shopping center it really wanted for 12 months, but it didn’t want to put off installing an ATM in that area that long. Therefore, the bank turned to Cawthon Building Systems, De Soto, Tex., for a free-standing, re locatable building to house its ATM until the permanent site was available. “ W e learned very early,” says Larry M ID -CONTINENT BANKER for October, 1976 W H IT E W A Y SIGIVI 1317 NORTH C L Y B O U R N C H IC A G O , IL L . 60 610 31 2-6 42-65 80 W hite Way Sign & M aintenance Co. is committed to the constant evolution and innovation of sign arts. Forem ost in this pursuit is quality. Quality of design. Quality of fabrication. Com patibility. We realize the prim ary function of any sign is to com m unicate a m essage— that a sign should not ad vertise itself. Like a fine building, our product is aware of its environm ent and com plem entary to it. solid state electronics/energy saving system s/m etric tem perature/full m aintenance program s J have representative contact me send free brochure NAM E __________________________________________________________ T I T L E ------------------------------------------------C O M P A N Y —___________________________________________ _______________________________________________________________ .P H O N E . AD D RESS .Z IP . .S T A T E . C IT Y _______ M ID -CONTINENT B AN K ER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 Cawthon, the firm’s president, “ and again with the assistance of the Lincoln Bank in its constructive comments, that there is a unique demand on an airconditioning system in the ATM facil ity. In fact, it is entirely possible on some days that cool air may be required in the machine room of the building while heat is required in the lobby side. Conversely, a slanting sun can generate a great deal of heat through the glass of the lobby while the well-insulated equipment room remains relatively cool. Thus, air conditioning with a dual con trol was developed and has proved to be very satisfactory.” Since designing the Lincoln Bank FOR SALE Relocatable branch bank building, 12 x 40 foot, completely equipped. READY FOR BUSINESS Complete with approved drivein window, cash vault, night depository, alarms and security cameras. Has 3 steel teller units, formica counters, rest room, heating/air conditioning, ing. Immediate availability. CALL: JOHN J. DAGGETT MARINE BANK Erie, Pennsylvania (814) 453-5711 42 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis light Every Second Counts: Poison Centers’ Systems Are Donated by Banks This free-standing structure at shopping center houses ATM of Lincoln Bank, Ardm ore, O kla. Bank couldn't locate ATM on prime site it w anted for 12 months, and so it installed ATM in this building until desired site is a v a il able. ATM facility, Cawthon has modified the original and popular design of a single-door front entrance to the lobby in some cases to provide entry at each side of the lobby. This accommodates traffic flow from both sides of a build ing that may be placed adjacent to a driveway on the one hand and a side walk on the other, continues Mr. Caw thon. As Cawthon continues to research and gain information, it reconfirms that the large full glass-enclosed lobby is very important. One banker told the firm of people standing in line all the way out of the doorway to use the machine. In such a case, the lobby must be made larger, and double doors can be provided at the front so that incom ing and outgoing traffic won’t meet. To meet the growing financial needs of the expanding agricultural area of Shelbyville, Ind., Farmers National has installed a Diebold Mini-Branch direct ly behind its main building. The struc ture, which provides a quick, conveni ent and inexpensive satellite office, was delivered and opened for business in 90 days by D iebold’s Clearwater, Fla., subsidiary, Diebold Contract Services, Inc. The 12-by-40-foot branch includes one Diebold Double Thru-Way DriveIn W indow and one Diebold Visual Auto Teller located on each side of the building. This arrangement enables tellers to accommodate four customers at one time. Farmers National points out that space and facilities exist to per mit two more Visual Auto Teller units on each side, plus a Diebold lobby walk-up teller. W hen delivered, the Diebold MiniBranch was installed with Diebold se curity, alarm and operations equipment, as well as electrical, plumbing, air-con ditioning equipment and furniture, all part of the complete Mini-Branch pack age. ® * Poison management and information systems have been presented to two area hospitals by Detroit Bank-Southfield and Detroit Bank-Livonia. Recip ients of the systems were Providence Hospital in Southfield and Livonia’s St. Mary Hospital. The Poisindex System, as it’s called, consists of an “ ever growing” data bank of computer-generated information on poisonous compounds and their corre sponding treatments. Besides contain ing all information found in the D e partment of Health, Education and Welfare’s Clearinghouse Cardex, Pois index includes compound ingredient ra tios and formula information gathered from pharmaceutical, commercial and industrial chemical, paint, grocery, hardware, cosmetic and over-the-coun ter drug industries throughout the world. Users of the system are provided with desk-sized microfiche readers and a notebook-sized film file of microfiche cards, each containing more than 2,000 entries. After locating the suspected poison on the reader, the operator then can locate the proper medical proce dure for treatment of the compound. The process is said to take less than 25 seconds. Building Executives (Continued from page 31 ) will determine the design of its new building. Efficiency will be the byword in all cases. Mr. Weis sees a period of indecision regarding EFT services in the near fu ture. While there are common goals and needs among all facets of the fi nancial industry for EFT, he said, di verse ways of attaining them will be pursued. Bankers are concerned about spending the experimental money nec essary to automate services, he said. One thing for sure, Mr. Cann said, is that retailers will not want to be sad dled with doing a bank’s work. If they are going to have POS terminals in their stores, he said, they will make sure they make the rules and reap the majority of benefits. Mr. Weis said the period of indeci sion will have little effect on the bank building industry. The demand for fa cilities will continue high. In fact, he said, a significant increase in business is seen in the 200-plus contracts Bank Building averages annually. * * M ID -CONTINENT BANKER for October, 1 9 76 It’s A Pleasure... To know Beverly Anderson of Interior World. She specializes in interior design for banks. She offers complete planning. Proposals include furnishings, carpets, draperies, and accessories. For even the most modest budget. Beverly Anderson is ready to design the look you want. A t your bank . . . at your pleasure. 124 Seven th A v e .,So u th • N a s h v ille ,T N 6 1 5 /2 5 6 -3 0 1 7 M ID-CONTINENT BAN KER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D esigning a Building That Reflects Character O f Bank and Com m unity By ROSEMARY McKELVEY, Managing Editor W HEN a bank decides to erect new quarters or remodel its present home, many decisions have to be made, of course, from the design of the new or remodeled structure to the color of the draperies in the C E O ’s office. Al though the finished product should re flect the character of the bank itself, it also should complement the community the bank serves. In other words, a bank building should be designed so that those who enter it feel comfortable there and find doing business there a pleasure. For instance, when First & Peoples National, Gallatin, Tenn., decided it had to move to new quarters, officers realized the new structure must meet two criteria: Its design must fit in with a historically minded community, and its new location— away from the city square, where it had been doing busi ness since 1890— must be accepted by local residents. The new location is three blocks from the square and four blocks from its old quarters. The answer to the first problem, fit ting in with a historically minded com munity, came in the building’s design— TOP: Lobby of Am erican City Bank, Tullahom a, Tenn., featu res enlarged versions of nickels and pennies on w a ll behind tellers a re a and aquarium (c.). Ceiling over this section is raised to 17 feet. A ll projects described in accom panying article w ere carried out by In terior W orld, N ashville. SECO N D FROM TOP: Exterior of Am erican City Bank has contem porary design, with graceful arches supporting entrance portico. THIRD FROM TO P: Rem odeling program at West Cookeville Branch of First N at'l, Cookeville, Tenn., produced hom elike atm osphere in lobby. Upholstered chairs in foreground a re in cus tomer lounge are a . SECON D FROM BOTTOM: Tellers counter (r.), customer lounge a re a (I.) and check-writing desks (one is show n in foreground) a re ef ficiently integrated in rem odeled W est Cooke ville Branch of First N at'l, Cookeville. BOTTOM: This stan dard building design w a s used for new quarters for three Commerce Union banks in Tennessee: Com m erce Union of M urfreesboro's South Tennessee and Me m orial Boulevard branches and North Locust Avenue Office of Com m erce Union of La w rence County, Law renceburg. Structure is of contem porary style and suitable for rural and urban communities. colonial style, with interior elements (tellers windows, paneling, lighting) designed by the architect to com ple ment this style. The interior decorating theme also is traditional, with a soft green and gold color scheme and car peting throughout the lobby, officers area and private offices. According to Beverly Anderson, interior decorator, with the Nashville firm, Interior World, all this provides a gracious warmth, with customers remarking that they feel right at home. “ The lobby feels just like my living room,” one customer re marked. This inviting atmosphere is enhanced by soft cove lighting with two large brass Williamsburg-styled chandeliers in the raised ceiling area over the main lobby. Gallatin residents have taken an ac tive interest in the bank, sparked by the hanging throughout the building of local artists’ paintings, with special gal lery space provided in areas planned for future growth. Tennessee sculpture also is highlighted in the bank. The total effect, says Mrs. Anderson, is one of warmth and a “ come in, feel at home, talk personally and privately with your banker” atmosphere. Thus, the move from the square, made in O c tober, 1975, has been accepted by resi dents. The former bank building on the square was redecorated and now serves as a branch of First & Peoples National. Mrs. Anderson, along with James M. Wilson, architect and engineer, orga nized, in 1971, Interior World, described as a total design service for banks. Its main objective, say Mr. Wilson and Mrs. Anderson, is to achieve unity in design, to see that a building’s exterior and interior are planned so that they complement each other. To achieve this objective, Mr. W il son begins by talking with bank officers to determine spaces required, then draws the floor plans and discusses fur niture arrangement with Mrs. Ander son. As they put it, “ Form follows func tion.” The exterior then is designed and, from the beginning, the building is planned to be both functional and beautiful. Interior decorating is coordinated with the exterior design, and then col- MID-CONTINENT BANKER for October, 19 76 De/ign/for loving/ Save time and money in your expansion and new branch opening programs with Space Rentals modular temporary/permanent structures. Custom designed for savings. Let your expansion capital start generating profit almost immediately. In only 45 days a Space Rentals modular structure can be delivered to your site and open for business. Complete with tellers' windows, business offices, customer work areas, or whatever special provisions you require for your own security systems, on-line equipment, ATM s or remote facilities. What’s more, Space Rentals modular structures cost far less than conventionally constructed buildings. A complete modular banking facility can save you more than 40% over the cost of floor space alone in a new brick and mortar structure. And, if you decide to open in another location, your Space Rentals building can be re-installed at your new site for a fraction of its low initial cost. And, because we design every modular structure for your precise operating requirements, a Space Rentals financial institution can make doing business more convenient for your customers and more profitable for you. CHICAGO, 301 W. Willie Road, Des Plaines, Illinois 60018, (313) 694-2440 CINCINNATI, Crescentville & Mosteller Roads, Cincinnati, Ohio 45241, (513) 771-6620 KANSAS CITY, 3621 Empire Road, Kansas City, Missouri 64120, (816) 241-7105 MINNEAPOLIS, 1524 N.E. Arthur Street, Minneapolis, Minnesota 55413, (612) 781-3178 Call today for more information on Space Rentals designs for savings. Rent • Lease • Purchase* Nationwide Service M ID -CONTINENT BAN K ER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 LEFT: This colonial-styled building, w hich houses new Main Office of First & Peoples N at'l, G a lla tin , Tenn., fits in w ith historically minded community. CENTER: Robert L. Brown (I.), ch., First & Peoples Nat'l, shakes hands w ith Jam es M. W ilson, architect and engineer w ith In terior W orld, N ashville. Firm handled ban k's new-building program . ors of building finishes, carpeting, drap eries, furnishings and accessories are selected. Each item, says Mrs. Ander son, is chosen not only for its design and color, but for its ability to wear well under commercial conditions. Mrs. Anderson points out that by working with the banker in the early stages, she and Mr. Wilson are able to stay within the building budget and provide maximum value for each dollar spent. Both Mr. Wilson and Mrs. Anderson point to extensive cost studies they’ve made to help those in charge of build ing programs determine expenditures required to achieve a certain size, style and atmosphere for a designated price. Mr. Wilson has been in the archi tectural business 26 years and has com pleted more than 75 bank buildings in middle Tennessee. Mrs. Anderson has worked with him on 21 bank projects during the past four years. In addition to First & Peoples National, Gallatin, Paintings in background are some of m any by local artists that are hanging throughout bank quarters. RIGHT: Beverly Anderson, interior decorator w ith Interior W orld, straightens portrait hanging in board room of First & Peoples N at'l, G a lla tin . Floor-to-ceiling draperies add homelike atm osphere to room. the following are projects completed by Interior W orld (all are in Tennessee): Fentress County Bank, Jamestown— Pure white aggregate concrete arches on the front of the contemporary-styled building dominate the exterior, which is composed of rustic local field stone and solar gray glass. The structure, planned with growth in mind, has an officers area that will accommodate two additional stations and is shaped in a curve surrounded by a carved walnutpaneled railing. Two additional private offices have glass fronts that afford pri vacy, yet provide an open look. The tell ers area is large and has a counter behind it for easy working and storage. The lobby floor is of a resilient marble chip tile for ease of maintenance and to help reduce wear. Bookkeeping space also is large to allow for future growth. Like the exterior, the interior is con temporary in decor, except for the pri vate offices and conference rooms, which are more traditionally furnished. Avail able to the public is a community room, which can be used separately from the bank itself. First National, Cookeville— In a re modeling program at this bank’s West Cookeville Branch, the main objective was to incorporate a no-longer-desired community room into banking space and provide an attractive rear entrance as well as an enclosed area for a 24-hour teller. The building originally was de signed in 1967, but the number of its customers increased so much that four additional tellers stations and a larger T O P : C arved w aln u t railing outlines curvedshape officers a re a in lobby of Fentress County Bank, Jam estow n, Tenn. Two offices at rear are g lass enclosed for privacy, but still have open look. BOTTOM: Pure white aggregate concrete arches dom inate exterior of home of Fentress County Bank, Jam estow n. Building featu res com bina tion of rustic local field stone and solar gray glass. 46 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lobby were needed. The latter now has ample customer waiting space. The remodeling resulted in a new ceiling and lighting layout, which brightens and unifies the entire lobby, tellers and officers areas. Soft golds and greens replaced blues and greens. Interior W orld’s Mr. Wilson and Mrs. Anderson believe the main achieve ment in this project was to produce a building that looks newly designed, not just “ made over.” American City Bank, Tullahoma— When plans were being drawn up for a building, consideration had to be given the fact that this was a newly chartered bank, thus, a plan was chosen that could be adapted easily to growth by providing extra space in the officers area and private offices. The bank is carpeted throughout for visual enlarge ment of the lobby and officers area. Private offices and conference rooms are furnished in traditional style. The design is contemporary, with an exterior featuring light brick and white fascia panels. There’s a 17-foot raised center section over the lobby. A large bookkeeping and storage area and a comfortable employee lounge are part of the layout. Contrary to lack of use of color and natural grays and browns so popular now, says Mrs. Anderson, American City Bank’s color schemes reflect the owner’s preferences and are designed to create warmth and visually stimulat ing interiors. There are rusts with browns, golds and bright orange ac cents, greens with yellows and natural woods, even red, white and blue when needed to further extend the image of American City Bank. Commerce Union Bank, Nashville— A standard building design was used for new buildings for three Commerce Union banks— Commerce Union of Murfreesboro’s South Tennessee and Memorial Boulevard branches and the North Locust Avenue Office of Com- M ID-CONTINENT BANKER for October, 19 76 Are AT His for Y our Bank? These Tw o Independent Research Studies Can Provide Answers....Save Your Bank TIME and MONEY I S iJ S tr fB O N M ' Why re-invent the wheel? If you're considering the feasibility of ATMs for your bank, you'll save hundreds of T E I A K H m iO ö B A ll I X S T A W A T I O man-hours X M A N U A E on research by utilizing these studies created by the First Na tional Bank of Galesburg, III. And you may find that ATMs are not for you, thus saving your bank thousands of dollars of capital investment! The Galesburg bank, incidentally, has a successful track record with its ATM . It has, with its ATM, increased its market penetration of NEW A C CO U N TS from 37% to 56% in a fourbank community! And 16% of new checking accounts and 20% of new savings accounts came from competing banks. «125 HERE'S WHAT IS PROVIDED IN THESE TWO MANUALS ELECTRONIC TELLER PROGRAM INSTALLATION MANUAL In 275 pages, this manual tracks the Galesburg bank's ATM operation through market analysis, cost justifica tion, installation procedures and results. One chapter shows actual samples of supplies used in the program, plastic cards, machine receipts. Another chapter discusses customer identification programs, with advertising used to announce ATM services. Manual recommends HOW to issue user cards. . . per sonnel and department to be assigned responsibility. . . also some do's and don'ts affecting any ATM program. Also: newspaper reports of C B C T regulatory rulings . . . a 35-page "interpretive ruling" by the Comptroller. All valuable information to help your bank reach a pro per decision on ATMs. M O N E Y B A C K G U A R A N T E E - If n o t com pletely satisfied, return within 10 days for full refund. M ID -CO N TIN EN T B A N K ER 408 Olive St., St. Louis, Mo. 63102 ~~l Please send _______ copies of: Electronic Teller Program Installation Manual and C B C T Report to Management | Check enclosed * $ ________________ Name ______________________________________ __ T it le ________________ I CBCT REPORT TO MANAGEMENT This smaller report summarizes estimated vs. actual results of ATM operations. . . activity reports. . . income and expense items. . . also a seven-year projection of growth of checking and savings accounts originating from ATMs. M ID-CONTINENT BAN KER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank __ _______________________________________________________________ j S tree t___________ ______________________________________________________ | City, State, Z ip ________________________________________________________j * C h e c k m u s t a c c o m p a n y o rd e r. W e p a y p o stag e and h a n d lin g . M is s o u ri b a n k s : in c lu d e 4 y 2% sale s t a x . 47 merce Union of Lawrence County in Lawrenceburg. The contemporary style, which is said to be adaptable for both rural and urban communities, is contemporary, featuring dark brick, solar gray glass and white aggregate panels. The in terior also is contemporary, and there are two separate color schemes for two different sizes of branches. An open lobby, with hard surface flooring, accommodates heavy traffic. Carpeting was installed in the officers and tellers areas. The conference room is w ood and glass walled to afford privacy, but to be open visually. Light ing consists of recessed fluorescent for general lighting, but with a softening and decorative effect provided by chan deliers, bracket lights and lamps. # # Discussing portion of mural in Main Office lobby at Detroit Bank a re (from I.) M arie Henderson; C. Boyd Stockm eyer, ch.; and Rodkey C raig head , pres. Miss Henderson is head of art dept, at local high school, directed her students in artw ork covering w hat had been plain, w hite w all hiding renovation w ork in bank. It's Like Chasing Your Tail: Wall Hides Renovation Work; Hiding Ugly Wall Is Problem! D E TR O IT—-Detroit Bank faced a problem that probably has confronted many banks, a problem that made offi cials feel like they were “ chasing their tails” : The bank had an eight-foothigh, 90-foot-long retaining wall in its main office that served to hide an area under renovation. But the blank, white wall itself was just “ plain” ugly! The solution? Twenty-five area art students transformed the wall into a bicentennial mural entitled “ Scenes of America.” In return, Detroit Bank made a special contribution to the school’s art department for purchase of art materials. Six “ topic” panels were developed within the mural. The panels depicted people, locales, inventions and prin ciples that have made this countiy great. Themes of the panels were “ The Four Freedoms,” “The Old West,” “ In ventions,” “ Scenes of America,” “ Pol itics” and “ Hollywood.” According to a bank spokesman, more than 2,500 hours of work were spent on the project by the students during the four weeks needed for its completion. Tst-Missouri Rate Recognized DESIGNERS AND CON SULTAN TS TO FIN A N C IA L INSTITUTION S Let us make your new building a landmark in the community. Each phase of your project, from site selection through grand opening, is managed expertly by our specialists. 11054 SO. M IC H IG A N A V E. C H IC A G O , ILL. 60628 PH O N E: 312/568-1030 8111 -B N O. U N IVERSITY P EO RIA , ILL. 61614 PH O N E: 309/692-2625 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JE FF E R SO N C IT Y — T h e pre vailing prime rate o f interest in St. Louis has been recognized b y the U. S. Small Business Administration ( S B A ) for use b y First Missouri D evelopm ent Finance Corp., w hich is headquartered here, in loans made or participated in b y the statewide business developm ent corporation. A ccordin g to Jerry Stegall, First Missouri’s executive vice president, the corporation w ill publish quarter ly in Cole County the prevailing rate in accordance w ith its statutes. The rate, based on that prevailing in St. Louis on unsecured com m er cial loans, determines the rate o f interest paid to First Missouri’s m em ber banks. Mr. Stegall also said that the SBA’s recognition o f the prevailing rate base w ould permit more c o operation among First Missouri, m em ber banks and the SBA on loans involving greater-than-normal risks. First Missouri, under regulation o f the Missouri commissioner o f fi nance, specializes in lending to m anufacturing and other businesses that create or retain em ploym ent in the state. “ W e expect at least one job for each $10,000 loaned,” Mr. Stegall stated. M ID -CONTINENT BANKER for October, 1 9 76 Pmwheei Creates Quieter Conditions UBÂF Arab American Bank Emphasizes industrial Loans, Bringing investors Together N E W YORK CITY— A new institu tion, UBAF Arab American Bank, has announced its plans to bring together investors of the West and the Middle East. What the bank intends to do is em phasize commercial loans to finance in dustrial development of Arab lands by Americans and to trade major Arab currencies in the N ew York market. President of the new bank is Kevin G. Woelflein, who said the institution will act as an adviser on American in vestments ranging from Treasury bills and other short-term deposits to longer term investments in the American economy. Mr. Woelflein formerly head ed First Chicago Corp.’s Tokyo Branch. Shareholders in the bank include UBAF—Union de Banques Arabes et Françaises, a French-Arab group head quartered in Paris— which has a 12% share; eight banks from Egypt, Kuwait, Jordan, Oman, Syria, Libya and Abu Dhabi, each holding 7%; Banque du Maroc of M orocco, 5%; Riyad Bank, Saudi Arabia, 2%; and Sudan Commer cial Bank, Khartoum, 1%. Holding 5% interests each in the institution are i Em ployees at Equibank, Pittsburgh, a re said to be speaking in quieter voices lately, thanks to the p rivacy offered by the institution's pinw heel-style cluster of m ovable partitions. A part of the b an k's new 34-story building, the design provides a flexible appro ach to Equibank's con tinuously changing needs for space and w orks w ith other design factors in the structure to re duce energy requirem ents, a spokesm an said . The bank is experim enting w ith several pinw heel configurations to determ ine w hich form ation w orks best in v a rio u s a re a s. Bankers Trust, New York; First Chi cago Corp.; Security Pacific Corp., Los Angeles; and Texas Commerce Bancshares, Houston. Small investors ac count for the remaining 4%. According to Mr. Woelflein, the Arab shareholders in UBAF Arab American Bank are a veritable “ W ho’s W ho” of finance in that corner of the globe and added that “ W e can introduce qual ified American corporations to our shareholders and find people who can advise them wherever they want to go in the Arab world.” « I S illl A LO O KIN G P R O FES S IO N A L IS WHAT IT ’S A LL ABO UT i 1 Career apparel... by Creative Image... to make your corporation as individual as you. Don't compromise with one of your most valuable assets-you r personnel.Your co rp oration and personnel are different-w e show your difference the fashionable way. CREATIVE IMAGE M C B -1 0 for the corporate image. 1709 N. Market, Dallas, Tx. 75202 Name of Co. Name Title Address City State # of Women Phone -Zip TAKE A GOOD LOOK... THE IMAGE IS YOU THROUGH jtioiive Outage M ID -CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 Examples of Bank Building Designs https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BU ILDIN G chosen by City Na tional, Beverly Hills, Calif., to house its new Lido Village Branch pre sented a problem of low ceilings and extensive ductwork to Canned & Chaf fin Commercial Interiors, Los Angeles, the firm the bank asked to design the branch’s interior. The firm’s senior proj ect designer, Milt Patterson, wanted to save the bank the considerable expense that would be entailed in raising the ceilings and relocating the ductwork. He also wanted the branch to have a light-filled atmosphere that would ap peal to customers. His solution was to install two large stepped-up luminous skylights by Integrated Ceilings that require just 18 inches of plenum, but look as if they go much higher. Thus A was created the airy feeling with a min imum of relocated ductwork. The building chosen for the branch also had an asset: It’s located right on Balboa Bay, which is the focal point for Lido Village. Canned & Chaffin re ports doing tw o unusual things. The first, at the request of the bank, was to provide an exterior walk-up window for yachting customers who may moor at the bank’s dock, transact their business and sail away. The other was to make use of as many windows as possible. The firm placed furniture and bank equipment in such a way that every customer in the bank has a view of the bay and ships from every part of the public area. was realized in the erection of quarters for the Hollandale Branch of Guaranty Bank, Belzoni, Miss. The 7,987-square-foot frame and masonry building came in at a cost of under $30 per square foot, when the going rate now is $55 in the Mid-South, according to Nationwide Building Consultants, Inc., Memphis, which handled the project. This economy was achieved, says the firm, through a series of owner/ consultant meetings during which the client revealed to the firm his phi losophy and style of banking. This in formation was translated into the type, size and quality of building required. T HE N E W HOM E of Burbank (Id .) State has a graceful curved design to complement the corner site on which it’s located. Designed to accommodate a future second floor, the structure is of masonry-bearing construction supple mented with steel framing. The future floor is of steel bar joist and concretetopped metal deck construction. The first-floor structure is comprised of a combination of precast joists and a poured-in-place concrete beam and slab system whose advantages include speed of erection, structural integrity and fire proof construction. To give the building visual recog nition, the architectural firm of Mayes, Williams & Partners, Glen Ellyn, 111., oriented broad expanses of glass to the public approaches, inviting a view deep within the bank’s open interior. A focus on the nine-position tellers line and safe deposit vault is instantaneous from the diagonal circulation of the entry. There also are a walk-up lobby and four-lane drive-up. The crisp, contemporary exterior is of an exposed white marble aggregate finish with deep overhangs and large massing and is accented with dark bronze glass and mullions. The com er facing the street intersection is opened up to allow a view into the banking lobby. Interiors are composed of bright striking colors and easily maintained finishes to accent and highlight the simple form and tone of the building design. Desks, tellers lines, counterwork and finishes are coordinated to unify the interior design. UNIQUE and attention-getting building— functional, economical, yet architecturally pleasing— was re quired by First National, Petersburg, 111., for its off-premises drive-up facility. A picturesque site in the “ heart of the Lincoln country of Illinois” was select ed on the bend of the Sangamon River and Illinois Highway 97, at the south edge of the business district. The 1,300-square-foot facility seems to blend in with its setting because of its exterior of natural materials, includ ing feather rock, vertical w ood siding, cedar-shake shingles and bronze ano( Continued on page 52) E A conom y of c o n s t r u c t io n M ID -CON TIN EN T BANKER for October, 1 9 76 g s THE MODULAR BANK — QUALITY, ECONOM r> c 2 H © e* VO M ON MINIBRANCH MINI-INVESTMENT Y O U R C H O I C E O E: BUILDING DESIGN BUILDING MATERIALS FLOOR PLANS SECURITY EQUIPMENT FAST DELIVERY MALL OFFICES E.F.0A1IIS& ASSOC., INC. 200 JIMSON ROAD CINCINNATI, OHIO 45215 s 513 -733 3584 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chicago Heights N at'l First of El Dorado, Ark, Com m ercial Nat'l, Chicago First of Petersburg (Continued from page 50) dized aluminum trim. Large chains (Japanese drains) were used to direct flow of water from the roof at the en52 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B ECAUSE Chicago Heights (111.) National is located in a major shopping center, many studies of traffic flow and parking layouts were discussed by the new building’s designer, the Glen Ellyn (111.) architectural firm, Mayes, Williams & Partners, with bank and shopping-center p e r s o n n e l to achieve the best arrangement for the bank. The result is a structure con temporary in design utilizing masonry for various reasons: economy, simplicity o f design, spread of construction and ease of maintenance. R oof overhangs and one-inch bronze thermopane glass are set back from the face of brick fins to provide for a reduction in sun loads and allow substantial reduction in airconditioning costs. Cost reductions also were realized in the structural and me chanical areas by using a simple steel frame and bar joist construction for the above-grade work. Below-grade work was all concrete, with the first floor being concrete beams and poured floor. The simple-duct mechanical system utilizes zoning to reduce heating and cooling costs. Simplicity of design and ease of maintenance also are reflected in the interiors. Colors were chosen to comple ment the bank’s exterior and to blend with its logo and tellers’ career apparel. There are five drive-up lanes, four of which are of remote kiosk design and one a commercial drawer unit. The de sign allows for a future second floor to be added along with an elevator and 24-hour teller. A N E W 30,000-square-foot, threestory building is the first step in a long-range expansion program begun by First National, El Dorado, Ark. The structure, built adjacent to the existing five-story bank building, also is tangible evidence of the 72-year-old bank’s com mitment to remain in its downtown lo cation, yet expand to meet the growing needs of its customers. The new structure has one story underground to house safe deposit and storage facilities. It has been designed to support additional floors. This capa bility will be utilized within 10 or 15 years in the next phase of a master plan— addition of four floors to the structure. The resulting seven-story building will house all banking facili ties and commercial tenants at the site. Following the move of personnel and equipment into the new building, the old one will be razed, and a completely open plaza will be constructed to link the bank to Union Square, a pedestrian mall, which is El Dorado’s downtown focal point. In the meantime, the exist ing five-story building has been m od ernized, with the first floor removed to make room for a covered plaza from the main banking floor of the new building to the square. The Austin Co., Cleveland, working with its Southwest District in Houston, made the study that convinced the bank o f the feasibility of maintaining its central city location. The firm also worked in and around ongoing banking operations as the new facility was being constructed, providing everything— from the master plan through design and construction to landscaping the exterior and designing and furnishing the in teriors. W HEN Commercial National, Chi cago, not only needed to be re modeled, but expanded as well, the Glen Ellyn (111.) architectural firm, Mayes, Williams & Partners, came up with a plan for the bank’s old 9,000square-foot quarters and a 15,000square-foot addition. The new plan had an expanded teller arrangement, larger lobby area, more officer space on the first floor and an area for the many ethnic displays provided by the bank. The second floor has a new installment loan department, conference and board rooms, expanded space for bookkeeping, accounting, proof and other banking op erations. In the basement are a new community room, expanded coupon booths and employee facilities. The building’s exterior is contempo rary in design. Bronze thermopane glass helps reduce heating and cooling loads, and a new single-duct system was used in connection with zoned areas to help reduce operating costs. trance. Attention was paid to saving existing trees, adding complementary landscaping and emphasizing the quiet nature of the river in the background. A sign, in keeping with the basic archi tecture, proclaims the facility’s name, First National Bank on the Sangamon. Inside, there are a high ceiling with ex posed wood-laminated beams and a working fireplace. The facility was designed by Ralph M. Broughton Jr., president, Design +, Inc., St. Louis, who also acted as project manager and coordinator. M ID -CONTINENT BANKER for October, 1976 DANK DESIGN FO R BANKERS FUNCTIONAL, UNIQUE AND CO ST-EFFECTIVE. WRITE O R CALL COLLECT FO R INFORMATION. THE PLUS GROUP 1 0 75 8 Indian H ead Blvd. St. Louis, Mo. 6 3 1 3 2 1-314-426-2244 M ID -CON TIN EN T BANKER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE PLUS CROUP 53 À Growing Trend: Equipment Leasing by Banks ANKS of all sizes are leasing much more of their capital equipment these days, but it isn’t because they hadn’t heard about this popular method of financing before. Many of them have been arranging lease financing for their own customers for years. Nevertheless, proliferation of costly electronic transaction systems and rapid expansion of branch banking have per suaded many banks to look at leasing from another angle. What they’re dis covering is that the leasing remedy works just as well for themselves as for their customers. And while it’s not quite the classic case of the doctor taking his own medicine, the new-found applica tion of leasing to bank equipment seems to be stimulating a good deal of in terest among bank officers. David Knapp, senior vice president of the $ 198-million-deposit Citizens National of Evansville, Ind., is one such convert. His bank leased four auto matic tellers through U. S. Leasing In ternational, putting one in each corner of the city as part of its “ around the clock, around the town” banking ser vice. Leasing’s flexibility is what con vinced CNB that lease financing was the best method of acquisition. “ Leasing gives us the kind of flexi bility we need to keep our automatic teller system in top shape,” says Mr. Knapp. “ Through the lease conversion feature of our leasing plan, we can easily upgrade or add on to our equip ment to take advantage of technological advances. That capacity to deal with rapid obsolescence is a very attractive feature of leasing.” B By BERT LAING Sales Manager United States Leasing International, Inc. San Francisco Another officer at a $ 1-billion-plus midwestern bank agrees. “ Leasing was definitely the best way for us to go,” he says, noting that his bank had leased its automatic teller machines, too. “ After weighing the impact of in flation and the threat of obsolescence, we felt leasing would be the most eco nomical method of finance.” A tradition of ownership. That to day’s banks are leasing a sizable por tion of their equipment seems partic ularly significant in light of their leg endary reluctance to lease anything at all. Imbued with a solid tradition of “ strength through ownership,” most banks have tended to reject leasing out of hand as something alien to a bank’s image. As a result, banks often have been in the curious position of recommend ing leasing to some of their best cus tomers while paying hard cash for all their own needs. W hen the capital crunch of 1974 hit— just when many banks were spending heavily on elec tronic funds transfer systems— this dou ble standard toward leasing began to seem strangely illogical. The old tradition of ownership, in fact, has never been quite the same since the capital shortage surfaced in 1974. Banks that respond to leasing LEFT AND CENTER: These new ly announced Kodak products are exam ples of equipm ent banks can lease from U. S. Leasing Internat'l. Kodak O racle microfilmer (I.) is designed for filming documents up to 11 x 14 inches. Up to eight documents per minute can be encoded and microfilmed. Kodak O racle retrieval term inal (c.) is designed to provide high-speed, autom ated retrieval of micro-im age and is in- 54 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis suggestions with a “ Banks don’t lease” attitude are becoming increasingly rare. N ow they’re more likely to give any leasing proposal serious consideration, both for short-term and long-range fi nancial plans. With the ownership block removed, they’re becoming very interested in leasing on its own merits. Leasing’s advantages fundamentally are the same as they’ve always been. Its 100% financing conserves cash and maintains lines of credit for use else where in a company’s operations. It is an additional source of financing and thus a natural solution to capital con straints and tight budgets. Most leased equipment qualifies for the 10% federal investment tax credit, creating real cash savings. Leasing plans typically call for a level stream of payments over the term of the lease (and no heavy front-end down pay m ent), which makes leasing a natural hedge against inflation. Lease pay ments also are fully tax deductible. Since much of the equipment com ing into use today is obsolescenceprone, lease conversion and trade-up options are especially useful features of some leasing plans. Lease conver sion programs offered through U. S. Leasing (the nation’s largest indepen dent leasing company) permit an equipment trade-up at any point during the lease, with a liberal credit for past rental payments included in the new lease schedule. Says L. W ylie Price, executive vice president, Lyon County State ($12.6 million deposits), Emporia, Kan., and a long-time U. S. Leasing customer, tended for microfilm application s w here com plex coding isn't required, but w here rapid selective retrieval is necessary for business efficiency. Diebold Total Autom atic Banking System (TABS), at r., also can be leased from U. S. Leasing Internat'l. This ATM can perform several customer services and is operative 24 hours a d ay, seven da ys a w eek. MID-CONTINENT BAN KER for October, 1 9 76 r ' :. Boatmen's is gtbvdng into oold new headquarters, reflecting their strength arKf comnutm^T-t to the future. That same strength and commitment backs our con-espoocent ban* team, a team well-versed in today’s banking environment Put Correspondent bankers who know the answers and have the back-up on your team. Boatmen's Correspondent Bankers, specialists when you need them. VSSK THE BOATMEN'S NATIONAL BANK OF ST. LOUIS Srrrrrr fS É i ni ' ' 314 / 421-5200 "T - **n- n , U Uxu lîï -îfn«*■ rrrrrnl Ti fffff f n B ilp I - rrrrrrrrrrrrrrrrrrrrrsi^®« iÜ ll & \gj£.“**-*^""........... -^-iT-aYftrfcn.. --«4* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l S nnnRpp^ Eaa[ r ^ F r F H *J IIr^ fl|p te g ^ ^ ~ *- N È E p N c " l » railDpccrSSSgS F p rr?y p ^ a g g B te fn rt rr ■ P ^ lI l lS 8* ! ^ ' ^ S g f c ! J0- jS ÿ ^ S S S :^ U.. j „ “ You get a built-in updating system that beats the obsolescence threat. You know you’ll never be stuck with an ex pensive piece of equipment that’s no longer adequate. You can always trade up” Leasing a-s financial strategy. Appli cability of lease financing is not limited to state-of-the-art developments, how ever. As part of a bank’s total financial or operating strategy, leasing is well adapted to such commonplace items as microfilmers, microfilm readers, en coders, minicomputers, vaults, cameras, security systems and the like. And with the widespread (but capital-draining) push into branch banking, lease fi nancing is particularly useful in alle viating pressure on asset ratios and budgetary constraints. A healthy respect for the economy’s capriciousness simply reinforces the logic of leasing. The bank liquidity sit uation has improved considerably over a year or so ago, but the lessons of that event are well remembered. Cash has becom e a treasured commodity once again. Those banks that maintain ade quate reserves of it are probably the ones that will weather the next capital crunch with the least difficulty. Since leasing naturally conserves cash, banks are giving it a prominent position in their capital-acquisition plans. * * m FIRST CITY NATION AL, Houston, has announced the following reassign ments in the international division: John B. Jones, vice president, has trans ferred from Houston to the London Branch, with credit and business de Scholarship Fund Begun For Employees’ Children LeFebure Offers Leasing L eF ebure offers lease programs tailored to specific needs on its com plete line o f bank equipm ent and security systems. These lease pro grams are in addition to the usual direct-sales basis. Included on a lease basis are L e Febure M odel 724 automated cus tomer terminal, Tel-A ir remote drive-up, alarm and surveillance sys tems, security vault doors and vault products and all lines o f cash-han dling and teller equipment. Leasing is through Circle Leasing Corp., a subsidiary o f Merchants Na tional Corp., Indianapolis. Leasing is done under prime-rate, fair-m ar ket plans, and all offer the option to buy equipm ent at the end o f the lease. velopment responsibilities; Martin Bow en, vice president and former far east ern representative in Tokyo, has moved to Houston as area manager of the far East and Australasia, succeeding Mr. Jones; Jerrel D. Branson, assistant vice president, has becom e far eastern rep resentative; and John Davis, vice presi dent, who formerly was in the regional and correspondent banking department, has gone to the international division with responsibility for corporate de velopment and international banking services. First National, St. Louis has estab lished a scholarship trust fund for chil dren of its employees. The move was made in commemoration o f the bicen tennial. Recipients of the first two scholar ships are Gary Broome, whose mother works in the bank’s mail room, and Arnold Robinson Jr., whose father is in First National’s building services department. Telecommunications Overhaul To m odernize its telecom m unications system, Am erican N at'l, C hattano oga, has had South Central Bell change over all telephone num bers, lines and equipm ent at the bank's Main Office and all branches. The new "Centrex II" system brings touch-tone service to the bank, replacing the old rotary dial system. The entire project of changing over 600 phones and 550 lines is expected to be complete by Nov. 1. Outside Lease-Management Program Available to Regional Banks I F TO D AY ’S banks are more frequent lessees than ever before, they’re also far more active lessors. Their busi ness customers, it seems, are leasing more, too, and one of the first places they’re inclined to go for lease financing is their bank. Leasing, in fact, is becom ing an es sential part of any bank’s full-service capabilities. Yet the overhead involved in setting up and staffing a permanent leasing program can be high. To com pound that problem, the volume of leasing business available at any given time tends to fluctuate greatly, necessi tating frequent manpower adjustments. For a small to medium-sized bank, these considerations impose serious stumbling blocks in setting up an ef fective leasing program. Many regional banks solve this prob lem through an outside lease-manage ment program called Banklease. D e 56 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis veloped by U. S. Leasing International in 1964, Banklease gives its member banks a complete leasing capability with none of the overhead or start-up costs of an in-house operation. The pro gram allows each bank to adjust the amount of leasing activity it chooses to do at any time without penalty. And since all operational matters are han dled by Banklease, most banks can par ticipate effectively with one full-time leasing officer. Cost o f the program to each bank is simply its administrative costs. Banklease bases its fee on lease volume (in dependent of the bank’s predetermined yield ). The bank merely makes the credit decision, determines the yield and supplies the funds. Banklease does the rest, including all documentation, insurance follow-up, invoicing, filing of personal property taxes and sales and use taxes and managing residual dis^ position. Programs such as Banklease have an additional attraction for banks: Leasing’s historically high yields. Externa] lease management allows banks to capitalize on this situation freely when funds are plentiful. W hen the money supply con tracts, banks can return to more tra ditional lending activities without in curring overhead costs. For these and other reasons, leasemanagement programs are becoming popular among all but the very largest of banks (which generally maintain their own leasing operations). U. S. Leasing’s 12-year-old Banklease pro gram, prototype for similar programs offered through some other indepen dent lessors, now counts 42 banks among its membership. More than half the states of the union are represented, with total assets of all members near $40 billion. * * M ID -CONTINENT B AN K ER for October, 1 9 76 Wfe provide theBestcheckcollectionservices inthemidwest Here’showwedo it We expedite items hav ing a high dollar value. No special sorting requirements are necessary. □ We make direct presentment at 40 commercial banks and Federal Reserve Bank offices daily. □ We utilize flexible check sorting routines which can be changed within a 48 hour period. □ We have the ability to analyze your deposits and can recommend the optimum clearing arrangement for you. W hat can we do for you? Just call or write for our com plete availability schedule. Your Commerce correspon dent will come through for you. '^'‘ Com m erce Bank « g s i r of Kansas City W M E M B E R FD IC 9th & Main 10th & Walnut 12 th & Charlotte (8 1 6 ) 2 3 4 -2 0 0 0 M ID -CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 New Equipment Enables Banks to Serve Public Better Suppliers Showcase Lines From Terminals to Vault Doors Diebold Offers Vault Door The G u ard ian Door is the newest member of the Diebold fam ily of vault doors. The door features a 3 V2" solid thickness of steel plus proprietary high-security monolithic m aterial protecting the locking m echanism s. Other features include two full-height locking bars, a daylight holdup device to prevent forced lockins, three-m ovem ent 120-hour chronometer time lock and three relocking system s built into the door. Two relocking devices a re therm ally activated so that the boltwork is autom atically deadlocked by torch attack. The other device reacts to tam pering or exp losives by d e a d locking the locking m echanism . There is no need for a footbridge and the door can be placed in a raw concrete opening and the architect or decorator can proceed w ith w all treatm ent around the door fram e as their schedule dictates. Drive-Up Unit Offered m ----9UÊÊÊÊKKÊSSSS3 M eilink Bank Equipment is m arketing a new single-tube pneumatic remote system for driveup service, called Sentinel III. The unit features solid state controls and uses a reversible blow er to transm it the carrier either under ground or overhead. The term inal is positioned to extend and present the carrier p a rallel to the driver lane, instead of perpendicular, elim inating term inal door restriction. Design prevents loose transaction m aterials from acci d en tally entering the tube. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POS Terminal Introduced AM CAT III is a new transaction term inal for use in check cashing, credit authorization and funds tran sfer program s. It is a v a ila b le from A d dressagrap h-M ultigraph Corp. According to the m anufacturer, a typical customer tra n s action con be accom plished by a clerk passing a plastic card through the optional m ag netic stripe read er and completing the tran s action by keying in the am ount of the p a r ticular service involved. The term inal can be directly linked to a central processing com puter and is com patible w ith all AM CAT term inals. Message Center Offered A public inform ation disp lay is a v a ila b le through Tim e-O-M atic, Inc. D isplays can in clude both single- and double-stroke characters and m essages can be shown in a travelin g or flashing mode. Time and tem perature can be d isp layed in either Celsius or Fahrenheit. Dis play characters are a v a ila b le in vario us heights and four d isp lay lengths a re offered. A desk top keyboard program m er has autom atic centering of typed m essages and disp lays the m essage input being typed. The sam e keyboard monitor duplicates any outdoor disp lay and keeps it continuously in view to the operator. 'Thinnest' Drive-up Unit Unit Verifies ATM User It is estim ated that h alf or more of the frau ds associated w ith autom ated teller units a re committed by the cardholder, a m ember of his fam ily or an acqu aintance of the card holder. Cam -Dex Equip & Film Corp., is offering a cam era unit that autom atically takes two photos of the person m aking use of the ATM. The cam era is activated when the cardholder inserts his card in the ATM. Frauds a re said to be reduced 6 0 % w ith the unit, w hich is m anufactured by D /A G en eral. —— ------ Auto-Matic is the nam e of this new drive-up system offered by Security Corp. The unit has a teller carrier recall to retrieve the carrier and an autom atic door control to open, close or lock the customer console operable from the teller station. The unit is said to be the thinnest design on the m arket, which can enable a bank to add an additional lane in some instances. Mailing addresses o f the firms w hose products appear in this issue are available from the editors. Please send stamped, self-addressed enve lope with your request. The Road A lo o k at correspondent b a n k in g b y A m erica’s prem ier corresponden t ban k . MANUFACTURERS HANOVER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ‘A t M anufacturers H anover, the fational D ivision is a traveling u n it. k . stress n ot on ly the right road, but h e right people to travel that road? The right roacL When correspondent banking began, over a century ago, it grew with the railroads. New towns grew up along the “roads,” and new banks set up shop in the towns. We built our family o f correspondents by following the railroads—bringing “interior” banks the money center services they needed to serve their customers. Today, with more than 3,200 banks around the country calling us their banker, MHT is America’s premier correspondent bank. And for good reasons. As our correspondents have grown, Manufacturers Hanover has anticipated their needs. We offer not only the basic breadand-butter services, but innovative and specialized services as well. And we put our specialists at your disposal, to help you serve your customers completely and profitably. Making funds move—faster. The nitty-gritty of securities handling. Manufacturers Hanover has always been important to |its correspondents for safekeeping and handling o f securities. Vault safety was one o f our earliest concerns. Back in Ithe 1800s, some o f our people came up with the unique ]idea o f putting cannonballs in the walls around the vaults. Tius, if a thief tried to tunnel through to the money, he’d get zonked on the head with a cannonball! Times have changed. Today we house all securities in (underground vaults safeguarded by a highly sophisticated protection system and backed by a complete record keeping system. Looking toward a future book entry, certificate-less [system, we offer correspondents an inexpensive piggy-back participation at the Depository Trust Company, probably the Imost advanced and comprehensive securities depository |system in the world. If you want to act as a paying agent for bearer secu rities, consider our famous “Coupay” service, the first [completely automated system for coupon paying, recon ciliation and destruction. MHT gives you an edge in your day-in, day-out needs. For cash letters, domestic and foreign collections, wire and other funds transfers—the competitive edge we give you is speed. Automation where it counts most, insuring accuracy and better transaction control. We even serve correspondents by helicopter. Our Early Bird is a helicopter relay service that enables you to meet the 10 a.m. Clearing House deadline—speeding items from airport to our processing center, to turn checks into earning assets almost instantly. Serving your Aunt Jane. é Through our specialized corporate trust services, you can provide your corporate customers with modem stockholder relations programs. Transifac, our fully automated system o f securities transfer operations, provides complete on-line shareholder and bondholder information. MHT issues of commercial paper and certificates of deposit assure timely delivery to broker or purchaser. And we can act as paying agency, co-paying agency or trustee for corporate and municipal debt issues, and offer complete escrow services. : H ow now, Dow Jones? Correspondents can tap MHT’s trust specialists to serve their customers’ investment needs. For instance, more than 20 analysts in our research department, plus our roster o f economists, back up PIR/C—Professional Investment Research, Computer-Aided. In this program, we furnish subscribers with the same information supplied to our own portfolio managers-. And we back it up with additional counsel whenever needed. Manufacturers Hanover expertise is also available for assistance with a correspondent’s own investments. We tailor your program to your bank’s position. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The street that goes ’round the world. MHT is a leader in worldwide banking. We offer you the flexibility of this country’s largest network of international correspondents. You can also serve your customers with MHT counsel based on first-hand knowledge of economic and political conditions; and with foreign credit information, exchanges, collections and remittances. MHT international letters o f intro duction and commercial letters o f credit are recognized and used universally. Manufacturers Hanover pioneered the International Money Order in this country. It has worldwide negotiability and unique safety features, and the IMO is personalized with your bank logo for maximum identification. The credit alternatives of the ’ 70 s* Your ability to meet customers’ credit needs is crucial in maintain ing your position in your market. MHT’s capabilities help you to be competitive by making available a full range o f credit programs. Through our affiliate, Manufacturers Hanover Leasing Corporation, you can meet the growing demand for this equipment financing method, anywhere in the world. Our factoring and commercial financing affiliate, Manufacturers Hanover Commercial Corporation, helps you serve your customers’ accounts receivable financing needs. MHCC may participate in such lending but you retain the direct loan relationship with your customers. And you have MHT’s expertise, including our advanced computer programming, to evaluate loans in a variety o f industries. Benefits for your employees. Whether you have 15 employees or 1500, you can offer them a most attractive fringe benefit—at a modest cost to you—by joining our group life insurance program. It’s a plan with up to $250,000 in individual coverage that can be tailored to your bank needs. Economies o f scale also permit you to participate at low cost in our major medical and long-term income protection plans, as well as pension programs. As the leading supplier o f corre spondent benefit plans, MHT can make it possible for your bank to attract high quality personnel by providing big-company benefits. The right people. We’ve come a long way since the days when one o f our traveling bankers crossed the Andes on a burro to call on a South American correspondent. But it’s still a prime rule among our people to know the “territory.” The MHT traveling banker gets to know your needs. Behind each officer are service specialists who go into the field whenever needed. We group our people in multi-tiered teams to give you the kind o f professional service to help you meet competition. So if you want to get on the right road to correspondent banking services, give us a call. The number is (212) 350-6604. You’ll find us easy to talk to. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The road to the future. The banking marketplace is changing before our eyes, transformed by computer technology. Interbank funds transfer technology is in a revolution as well. As we look down the road, we see vital new services developing, while many traditional services disappear and transaction costs go down. Manufacturers Hanover is in the forefront o f EFTS changes, nationally and internationally, helping correspondents to manage the transi tion to the future. Through the New York Automated Clearing House, MHT will have access to the National Network o f Automated Clearing Houses, international depository account ing system has increased MHT’s efficiency in processing large dollar international payments. MANUFACTURERS HANOVER Correspondent Services. General Banking Corporate Trust Bank Money Orders Cash Letters Demand Deposit Facilities Domestic Collections Early Bird Gift Checks Money Transfer and Wire MOREC—Money Order Reconcilement Register Checks Transend Certificate o f Deposit Issuance Co-Paying Agent Co-Registrar Reconciliation and Destruction o f Debt Issues Transfer Agent/Co-Transfer Agent (Transifac) Meeting Room and Auditorium Special Services Economic and Business Publications Marketing Consultant Travel Service/Personal Service Credit Services Investigations Overlines Manufacturers Hanover Commercial Corporation (commercial finance, factoring) Manufacturers Hanover Leasing Corporation Employee Benefits Group Life Insurance Plan Long Term Income Protection Plan Major Medical Plan Retirement Program International Acceptance Financing Commercial Letters o f Credit Export Financing Foreign Credit Information Foreign Collections Foreign Exchange IM O —International Money Order M IDAS—MH International Payments System Overseas Branches, Representative Offices, Affiliates Remittance o f Funds Abroad Tip Packs Personal Trust Personal Financial Planning Course P IR/C —Professional Investment Research/Computer-Aided Trust Development Course Portfolio and Investment Banking Federal Funds MHC Commercial Paper—Other Commercial Paper MHT C /D s US Governments, Federal Agencies, Municipal Bonds, Bankers Acceptances! Investment Counseling Securities Coupon Collection Equity Safekeeping (Depository Trust Company) Federal Book Entry Safekeeping Security Drafts If you’d like to learn more about our Correspondent Services, call (212) 350-6604. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FD IC l Equipment Convenience Stressed Am ong the equipm ent installed at recently opened P laza First N at'l of W est Port in St. Louis a re these items from LeFebure Corp. TOP: C ash-hand ling and storage equipm ent at nine paying and receiving stations is a rra n g ed w ith a right-hand return that is low ered slightly to facilitate posting operations. BOT TOM: H eavy-duty note bus is engineered to fit under oak counter during w orking hours. Large w heels en ab le it to be rolled e asily to vault for storage. All equipm ent has A p ache red finish. Drive-In Unit Upgraded Without Client Disruption A drive-in facility can be upgraded with almost no interruption in service, according to officials at Mosler. Such an upgrading took place recently at First Bank, Savannah, Ga. The bank wanted to double its drivein lanes (from two to fou r), add a commercial lane, eliminate the use of T V monitors and increase the speed of service. All this was accomplished with instal lation of a Mosler Trans-Vista side-send system, which eliminated the need for underground tubing and trenching since the pneumatic tubing is housed in a brick planter. A 15-foot window en ables all customers to see the tellers and there has been no need to increase the number of tellers, since the new system enables one teller to handle two lanes. According to a bank officer, the new system enables the bank to service its customers much quicker and with re duced transaction time. Substantial sav ings were possible by locating the tub ing in the planter, since trenching costs were eliminated. Sensor Alerts Tellers U pgraded drive-in facility at First Bank, Sa van n ah , G a ., has pneum atic tubing running through brick planter and over lanes into bank. All customers can see tellers, elim inating need for TV monitors. Multi-Use Locks Offered Best Lock Corp. has announced a line of multi purpose padlocks that can be m aster-keyed into a padlock system. A single m aster key fits every lock in the system, yet each individual lock can have its own key w hich fits no other lock. If a key is lost, the com bination to its lock can be changed in 10 seconds and a new key issued im m ediately without discarding the lock. The padlocking system is m ade possible by an interchangeable core. Publicity With Chimes Banks can be the voice o f their communities b y installing carillons on their premises, say the people at I. T. Verdin Co., manufacturer o f bells and carillons. Chimes can be used to strike the time and to pre sent musical selections that can be “ broadcast” throughout the neigh b orh ood automatically with carillons. A bank that is identified with pleas ant sounds can capitalize on that fact in its prom otion efforts and thereby gain a surprising amount o f good will, the manufacturers say. Kiosk Units Popular Signs Eliminate Clutter Custom er irritation at not receiving im m ediate attention from drive-in tellers can be elim i nated w ith a new device that alerts the teller that a customer has driven up for service. As a vehicle appro aches the drive-in a re a , it passes over a concealed sensing device that transm its a signal through an am plifier to the teller. The sensor detects metal and can be program m ed to record the num ber of vehicles using a drive-in operation. It is m anufactured by Actron Inc. Putting a branch in a shopping center? M aybe a kiosk-type facility w ould do the trick, say the people at Creative Industries, w ho are re sponsible for this kiosk facility m aintained by Am erican Fletcher N ational in an In dianapo lis shopping center. Several models a re a v a ila b le , including circular, oval and square. All a re relocatable and some have w alk-in cap ab ility for customers. Units enab le ban ks to take their services out into the community. The site surrounding a bank structure can be kept more beautiful by not cluttering it w ith signs, according to Lake Shore M arkers, Inc. In dividual letters and logos of alum inum can be mounted on exterior w a lls and can either be spotlighted or illum inated from behind. The illustrated building signage plan elim inated several y ard posts. M ID-CONTINENT B AN KER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Building Ideas: Adapt Them to Your Bank! A Potpourri of Innovations You May Have Overlooked Albuquerque Nat I Has New Building; Resists Earthquakes, Saves Energy HE N E W nine-level Main Office building of Albuquerque National not only is attractive, but it resists earthquakes and was designed to con serve energy. Located at Third Street and Roma Avenue, N. W ., the structure has 113,000 square feet of space. Its basic construction is reinforced concrete; ex terior walls are of precast concrete pan els. The building’s gold-colored solar-re flecting windows are part of the cool ing and heating system. The windows provide a view of the city and the Sandia mountains to the east, while win dows on the north and south are pro tected from the sun by projecting bays. The building has no windows on its western side. During the warm season, the win dows reflect the sun’s heat, and the heat from lights and people within the structure is expelled. W hen the weather is cold, all heat generated from within the building is retained, cleansed and recirculated. The handicapped were taken into consideration when Albuquerque Na tional’s new Main Office was designed. Ramps, wide hallways and open areas provide easy access. To the building’s north is a land- T Interior of new headqu arters of Albuquerque Nat'I show s how building w a s designed w ith consideration for hand icapp ed. Ram ps, w ide h a llw a y s, open spaces a re e asily accessible. scaped parking area with space for 300 autos. It has two entrances. Facing the parking area are the walk-up teller windows. A feature soon to be added to the bank’s Roma Avenue and Fourth Street corner is Albuquerque National’s clock. Reportedly a landmark in the city since 1941, the timepiece was being repaired at press time. The clock has separate movements for each of its four faces and will be controlled by a master clock located in the building. During daylight hours, its chimes sound every 15 minutes. ° * stained, rough-sawn cedar. Touches of brick will be used at the front to set off the cedar. Windows will be of bronze insulating glass. The interior of the building will con tinue the “natural” theme with oak, walnut and pecan and a color scheme of rich earth- and autumn-tones. The construction site of Mehlville National is nearly two acres in size and is 50 feet higher at its back than in front. Plans call for graduated parking levels leading up to the one-story building and four drive-up stations. Provisions also have been made for in stallation of an ATM adjacent to the building’s front entrance. Every area of the building has been planned to accommodate present and future furniture and record-housing, storage and accounting equipment. Completion has been scheduled for early 1977. Mehlville National presently operates from temporary quarters. N ew headquarters building of M ehlville (Mo.) Nat'I w ill reflect w ooded nature of its site. Building's front w ill feature stained, roughsaw n cedar, w hile interior motif w ill be ash , oak, w aln u t, pecan and earth- and autum ntone color scheme. Woodsman, Spare That Tree' Clause in Branching Regs Clears Way for Facility Will Be Construction Theme Of New Mehlville (Mo.) Nat'I This is new Main Office of Albuquerque Nat'I. Designed to w ithstand earthqu akes, conserve energy, building has 113,000 sq. ft. of space, nine levels. 64 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M E H LVILLE, M O.— W hen con struction begins on the headquarters building of the newly chartered Mehl ville National, the call will be “ W oods man, spare that tree!” Plans developed by Planned Proj ects, Inc., the project’s developer, call for a great number of the site’s trees to be retained. The building itself will blend in with its w ooded surroundings; its front will utilize a great deal of DALLAS— W hen the auxiliary banking facility of First National was in the planning stages, officials faced something few banks in Texas had ex perienced. Texas is a unit-banking state, but regulations permit an additional office if it’s under the same roof or within 500 feet of the main banking facility and connected b y a tunnel. Since the retail banking market varies little with in a 500-foot radius of a primary bank- M ID -CONTINENT B AN KER for October, 1 9 7 6 Here’s check-cashing convenience you can offer to your banking customers when they visit Arizona. With your recommendation, well be happy to issue our exclusive V.I.P. check-cashing card to any of your customers who are going to be in Arizona for business or pleasure. Upon presentation of the card at any of our over 140 offices statewide, your customer’s personal check on your bank will be honored up to $ 5 0 0 .0 0 . No other identification or verification will be required. Just write and tell us when your customer will arrive in Arizona and how long he intends to stay. Well be pleased to send our V.I.P. card to you for presentation to your customer. Write to: National Accounts Department First National Bank of Arizona P.O. Box 20551 Phoenix, Arizona 85036 FIRST NATIONAL BANK OF ARIZONA MEMBER F.D .l.C. • FEDERAL RESERVE SYSTEM M ID -CON TIN EN T BAN K ER for October* 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 65 ing office, few banks in this state have taken advantage of the clause. But it was the tunnel connection that made the location of First Minibank— a full-service facility— practical and de sirable, said a bank spokesman. The fa cility is located in the lower level lob by of the First International Building, which is a link in the Downtown Dal las Underground Pedestrian Walkway System. It covers a six-block area in the city’s heart and will be expanded. The system consists of underground passageways that provide all-weather access to garages, a hotel, theater, health spa, retail shops, restaurants and several office buildings. Influencing the construction of First Minibank was First National’s master plan for a color-television banking sys tem to serve a nine-lane motor bank and several walk-up tellers. The colortelevision system is said to be the first major installation in the U. S. and be came operable in 1975. “ Customer response to the system surpassed even our most optimistic pre dictions,” a bank spokesman said. “ In creasing utilization of the street-level equipment prompted First National to open the First Minibank walk-up teller facilities five months prior to the time the remainder of the minibank services were begun.” On hand to greet custom ers during grand opening of First M inibank, the retail banking facility of First N at'l, D allas, a re Robert S. W illiam s, s.v.p., and Patricia A. Thompson, banking off. and facility supervisor. A rarity in Texas due to state branching la w s, First Mini bank is located in a tunnel system serving sev eral m ajor office buildings in D allas. Feature of facility is color-television w alk-u p tellers to provide all customer services. Newspaper advertising during the first week of the facility’s operation an nounced the “ grand opening of the First National Bank under Dallas” and invited everyone to “come on down— literally” to First Minibank. How popular is the facility? “ W e were opening savings and checking ac counts and receiving loan applications before we had our telephones in stalled,” said Patricia A. Thompson, banking officer and First Minibank su pervisor. “ W e literally were operating in the dark for the first few days while workmen were increasing the light lev els in the office.” The facility has 2,600 square feet of space and is surrounded on three sides by glass, giving an impression of spa ciousness and emphasizing the struc tural X-bracing of the First Internation al Building. A color used prominently throughout the facility is orange, which is accentuated by chrome and natural oak furniture. Wall hangings and live plants emphasize First Minibank’s in formal atmosphere. St. Louis Mercantile Tower Has Provision for Handicapped In Building and Garage ST. LOUIS— When Mercantile Bank was planning its new Mercantile Tower, the bank took handicapped persons in to consideration. Besult: Rest rooms feature wide doors and grab bars; sink counter lips are shortened, and mirrors are lowered. Outside the structure, curb ramps have been arranged for at each street corner. The Mercantile garage, attached to the tower, has nine reserved extra-wide SINCE 1971 PLANNED PROJECTS, IN CO R PO R A TED QUARTERS AND STRUCTURES FOR FINANCIAL INSTITUTIONS EXCLUSIVELY PROJECT COORDINATORS THE NEW APPROACH FOR THO SE WHO ARE G ENU INELY CONCERNED 9378 OLIVE BLVD. 66 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ST. LOUIS, MISSOURI 63132 (314) 991-3344 M ID-CONTINENT BAN KER for October, 1976 The Special Project Manager. H e k n e w w h e re to t u r n w h e n h e n e e d e d h e lp in a h u r r y 1 1 1 1 M M ■ It was an im portant assignment, not o n ly in his b a n k ’ s lon g-ra n ge plan s, but also for Jack’s career. T h a t’s w hy he w an ted som e ex p ert a d v ice . A nd he k n ew w h o c o u ld p r o v id e i t : his Northern Trust calling officer. A phone call and a few minutes later, Jack had an appointm ent with an expert who could give him the in- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis form ation and perspective he needed to manage his im portant new project successfully. T h a t’s one of the advantages of being a correspondent of The Northern T rust: a lasting personal relationship with a calling officer and staff who care about all your problem s. T hey are the kind of people who can provide spe- cial help with your special assignment, whether it’s building assistance, market planning, float reduction, or operational analysis. If y o u ’d like that kind of correspondent relationship, contact the calling officer for your area at The Northern Trust Bank, 50 S. LaSalle St., Chicago, 111.60690. T elep h on e (312) 630-6000. The Northern Trust Bank Bring your financial future to us. confronted with an insurmountable ob stacle. Mercantile has carried its concern further by offering free special decals to handicapped drivers in the St. Louis area. The blue and white decals can be displayed on bumpers or side windows of cars driven by or carrying handi capped persons. Designed to remind other drivers that wheelchair cars need parking space wide enough to permit loading and unloading a wheelchair, the decal reads: “ Wheelchair Car . . . needs extra parking space.” Precedent C laim ed for Drive-Up; Is M idw est's First Solar Facility TOP: Ram ps from M ercantile Bank of St. Louis' parking g a rag e to its tow er and Eighth Street building provide easy access for hand icapp ed. BOTTOM: Richard E. C allah a n , banking officer, internat'l banking dept., M ercantile Bank, is show n w ith his w heelch air van in M ercantile g a rag e . Latter has nine reserved extra-w ide parking spaces for such cars. parking spaces for wheelchair cars. Ramps from the garage to the tower and to the adjoining Eighth Street building provide easy access for the handicapped. In other words, Mercan tile has tried to permit persons in wheelchairs to travel throughout the bank building complex without being https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ROCKFORD, ILL.— First National has claimed a first for its planned motor-bank facility: Solar energy will be used to provide a portion of its heat ing requirements. While a few residential solar systems have been installed in the Midwest, the new drive-up of First National is be lieved to be the only installation of its kind in a bank office or commercial structure in the central states. The sys tem will be combined with an elec trically operated air-to-air heat pump to provide maximum conservation of energy during the heating season. According to Howard Bell, bank president, no savings in cost would be realized with use of the solar heating N ew drive-up of First N at'l, Rockford, 111., is set for Jan. 1, 1977, opening. Bank officials claim a precedent w ith facility: W ill be first com m ercial building in M idw est using solar energy. system due to additional costs of the equipment, but he estimates that 40% of the annual heat load would be car ried by the system. “ And that’s suffi cient justification for installation at a time when energy economics is receiv ing worldwide attention,” he said. “An additional reason for using solar heat,” Mr. Bell continued, “ is that the bank probably will be called upon to finance similar installations for custom ers who are likely to receive govern mental incentives to employ solar heat. By having first-hand experience with solar energy, First National should be in a better position to help its depositors when they seek help.” The facility will have 12 lanes for personal transactions, while two others will be used for commercial customers. A lobby teller window will serve walkup traffic and a 24-hour night deposi tory also will be installed. A January 1, 1977, opening date has been set for the motor bank. N ew Building Is 'Old-Tim ey' se le c t th e banking w e equipm^ deliver th e building. r ^ ^V e x p r e s s io n , m e . 3 4 5 w. prairie,tdecatur, Illinois 6 2 5 2 2 Fitting in w ith the historic atm osphere of its a re a , the new building of First N at'l, Jefferson, Tex., has an exterior o f antique brick. The them e continues w ithin. It has a colonnaded lobby w ith parqueted floor and a vaulted ceiling in ceil blue. The old-time tellers cages a re flanked by a reception a re a that features a 75-year-old Pakistani rug. Bank officials oc cupy cloistered offices having m ahogany furni ture, gold antique satin draperies and thick carpets typ ical of the 1890s. First N at'l h as a vault door that w a s built in 1885 and installed in First N at'l, P aris, Tex., in 1886. M ID -CONTINENT BAN KER for October, 1976 Republic National Bank, fo ra iyour correspondent needs. C a l (214 ) 6 5 3 -6607 . Republic National Bank of Dallas A Republic of Texas Company M ID -CON TIN EN T BAN KER for Oclober, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Transforms Former Dime Store Into Attractive, Room y Quarters This building form erly housed dime store, but w a s converted into new quarters of First N at'l, Rantoul, III. Structure is across street from bank's old location. P late-glass storefront gove w a y to red brick. Large cedar posts support canopy along front and part of sidle of building. HEN First National of Rantoul, needs of the growing community.) 111., realized it had outgrown Erect the new quarters? magnificent old building it had occu The bank found the answer just pied for more than 70 years, officers across the street— in an empty 15-yearhad to make a decision. Renovate old building that formerly housed a again? (Several remodeling projects dime store. Acquiring and renovating had been undertaken to keep the bank this structure gave the bank sorely modern and able to serve the banking needed space, utilized existing com munity resources, moved the bank into the new quarters less than five months after construction began and cost less than half what it would have cost to erect a new building. The remodeling program in the former dime store was completed for between $300,000 and $400,000. In addition, the bank now has 16,000 square feet in its main sec tion and 6,000 square feet of basement and storage space. The former quarters contained only 5,500 square feet over W S ee displayed sam ples of highly su ccessfu l envelopes designed to cross-sell even the seldom -seen bank custom er. "Hot Potato" coupon/ envelopes and standard use system s envelopes incorporating the "hitch-hike" technique co st little if any more. Get Your iL fr e e id e a k i t ] or write: Tension Envelope Corp. 816 E- 19® St. Kansas uuj, City, WO 64108 Kansas te .354rr ENVELOPE C O R P O R A T IO N NINE COAST-TO-COAST MANUFACTURING PLANTS T E N S IO N 70 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This vie w of interior of new quarters of First N at'l, Rantoul, III., show s how d rastically form er dime store building w a s changed to accom m odate bank. Offices h a v e modern motif, w ith hanging plants and latest w a llp a p e r de signs. all. There even was enough extra room in the new quarters for the bank to do nate a large area to the community for civic and other uses. The room, dedi cated to the city on July 4, was the bank’s bicentennial gift to Rantoul. It’s being used for band concerts, record “hops” for youngsters, wedding recep tions, etc. One of the main problems First Na tional faced when it announced its planned move was getting residents to accept the new location. They were at tached to the familiar old structure, but after the new banking home was unveiled last June 1, the public gladly approved it. During the reconstruction program, brick replaced the wide expanse of plate glass; walls were built, offices decorated and what had been a dime store was turned into a showplace bank building. The bank’s drive-up facilities and automated teller machine are lo cated at the old building across the street. First National plans either to move the ATM to the new site or close it down and install a new one near the parking lot at the new location. Calling the move tremendously suc cessful, President Robert Mills says, “ W e’ve been able to construct a new facility, capable of supporting our pro grams and expected growth over the foreseeable future, from an otherwise useless piece of real estate. And we’ve done so smoothly, quickly and without losing the ‘community-bank’ image we’ve enjoyed for so many years.” * * Gold Rush Days Recalled By Return of Wells Fargo To 1850s Agency-Office S A C R A M E N T O , C A L I F .— After more than 120 years, Wells Fargo has returned to the B. F. Hastings build ing. Wells Fargo Bank, which is head quartered in San Francisco, has opened a facility— the Old Sacramento Agen cy— in the same building in which it operated from 1854 to 1857. The Hast ings Building is the focal point of the Old Sacramento State Historic Park, a six-block area that has been restored by the state of California to its orig inal Gold-Rush-days appearance. The agency has been faithfully re stored to its 1850s appearance and op erates as a bank during the week and as a museum on weekends and holi days. The bank staff will conduct busi ness dressed in authentic period garb. Items of the 1850s, such as a gold scale, banjo clock and letter press dec orate the office. M odem services will be offered by M ID -CONTINENT BANKER for October, 1976 RABBIT TRANSIT. An advanced check-clearing system that can dramatically improve your availability of funds. Reserve Headquarters and International Airports in Chicago and Kansas City. “ Rabbit Transit.” It’s an improved system devised by First National Bank in St. Louis Our computer is to expedite the clearing of cash totally dedicated. letters. It’s the latest Burroughs For you, it can mean two computer system with IPS and important things: better avail MICR technology. ability and bigger profits. It’s used exclusively by our Here’s how. transit operation. And delays do not occur because of con We’re right in the heart flicting priorities or competi of the nation. That’s more important than tion for computer time. Our Proof-of-Deposit you might realize. Our location system computes float on each in the heart of Middle America item processed by endpoint permits ideal transportation into and time of day. and out of St. Louis and pro Full-time specialized staff. vides a superior transportation network to all Federal Reserve This staff monitors out cities. going transit and keeps current In addition, St. Louis is a with any changes in transporta Federal Reserve city which tion scheduling. Volumes and enjoys a proven advantage in endpoints are monitored con mail times, and is less than one tinually so cash letters clear hour by air from Federal efficiently. M ID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis With their up-to-the-minute knowledge, our specialized staff can also make a complete and objective analysis of your check clearing system after an appropriate test period. Then, they’ll present a written recom mendation of how it can be handled with increased speed and efficiency. Phone (314) 342-6222 for your own transit analysis. For a copy of our Avail ability Schedule, to arrange for an analysis of your check clearing system, or for more information about “Rabbit Transit,” phone us now. Or contact your Correspondent Banker at 510 Locust, St. Louis, Missouri 63101. First National Bank in St.LouisEf/2 Member FDIC I H IH I 7! the Old Sacramento Agency and fea tured will be checking accounts with exclusive checks fashioned after those used at the location in 1855. The office recalls the past of Wells Fargo Co., the ancester of Wells Fargo Bank. A century ago, a typical Wells Fargo banking and express office re ceived deposits for safekeeping and ex changes; made remittances and trans ferred funds by check or draft; deliv ered letters and parcels to miners; picked up miners’ letters, purchase or ders and gold; bought, sold, stored, transported and shipped gold in all forms; and forwarded gold, coins, bank bills, parcels and cargo throughout the world. Bank Uses Bldg. Courtyard for PR Purposes Fourth N at'l, W ichita, is m aking excellent use of the spacious, g la ss-w alled courtyard of the building it erected in 1974 by dispensing free popcorn there. A colorful old-fashioned popcorn w ag on attracts passersb y, w ho w ait patiently in line for their free bags. Um brella-topped patio tab les and chairs are placed around the lobby to be used by bank visitors. The ban k's pop corn m achine is operated a few hours each day, and about 350 servings can be m ade per hour. Fourth Nat'l also uses the w ag on for off-prem ises special events and elsew h ere in the bank for receptions. Bank, Reduced to Rubble by Tornado, Decor o f the C alifo rn ia gold-rush era high lights Old Sacram ento Agency of W ells Fargo Bank. Gold scale, banjo clock and staff's peri od dress are features o f facility that operates a s business during w eek, a s museum on w eek ends, holidays. The fact that Wells Fargo operates a business in the restored building brings to mind the words of a journal ist of the 1850s: “ Wells Fargo is the ready companion of civilization, the universal friend and agent of the miner, his errand man and his banker. A billiard saloon, a restaurant and a Wells Fargo office are the first three elements of a Pacific or coast mining town.” Airport-Style Drive-Up This is the drive-up of Atlantic First N at'l, D aytona Beach, Fla. Four tellers rem otely m oni tor 11 traffic lanes from the control tow er straddling the installation that g ives a pan o ramic vie w of the operation. Tw o lanes are served by paying-receiving type w in d o w s in stalled in the ovoid columns supporting the control tow er. A p proxim ately 900-1,500 cus tom ers can be served by the Diebold V isu al Auto Teller I system, bank officials said . Rather than having the conventional red and green "sto p " and "g o " signals, the facility uses a larg e sign w ith "o p e n " and at each entrance, an "e x p re ss" sign flashes, indicating the lane w ith the fastest service. 72 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Constructs Precedent-Setting Building ARLY IN 1974, Xenia, O., was hit by one o f history’s most destruc tive tornados. A major casualty of that storm was the W est Xenia Branch of Citizens First N a tion a l-on ly a portion of the foundation and the vault re mained. But 13 months later, grand opening ceremonies were held for the new building of the W est Xenia Branch, and that structure has features that are said to be precedent-setters: • The new, larger office has an in line installation of six Diebold Visual Auto Teller IV remote banking sys tems, reportedly the longest such in stallation in the state. One part-time and two full-time tellers monitor the installation. E W est X enia Branch's new facility includes this six lane, inline drive-up using Diebold equip ment. Drive-up reportedly is longest in state. TOP: W est X enia (O.) Branch of Citizens First N at'l, X e n ia , before tornado of A p ril, 1974, struck. CENTER: After tornado, only portion of foundation, vault rem ained in usable condi tion. BOTTOM: 13 months after storm, new building w a s opened. Is larger than orig inal, boasts featu res that set precedents for are a . • A Diebold TABS Total Auto matic Banking System also was in stalled, said to be the first in Greene County. Called the “ Freedom Ma chine,” the ATM , according to bank of ficials, gives customers the freedom to bank at their convenience, day or night. A “ Freedom Card” activates the system and the card is advertised as “ the key to the bank.” * * M ID -CONTINENT BANKER for October, 1 9 76 W ell handle your cards a s if they were our cards. We can deliver on that promise because we’re in the banking business ourselves. We know what the problems are and how to solve them. When you plan to issue plastic cards to your valuable customers, it’s good to know we’ll treat those cards with the expertise and strict security only a company in the banking business can offer. Your order will be custom-designed to fit your needs. We know the problems in a card issue, so we begin by asking the right questions. Once we have all the information, we plan a program specifically for you. A program which reflects your needs and those of your customers. encoding, stuffing and mailing, through housing of files, file maintenance, mass issues and daily plastics production, ACS can do it all for you. Our service bureau concept can turn any card program into a turnkey proposition. Our cost estimates are specific. Everything is itemized and all-inclusive. You know in advance what you’re getting for your money. Our turn-around time is especially short. Our Automated Consumer Services Bureau will handle the entire project. From issuing plastics, Y - r designing and printing of forms, embossing, And you always get a firm delivery schedule, based on your requirements. We’re experts at mass issues and daily plastics production. So, whether you plan a mass issue of a new card, a reissue of an old card or daily issuance of cards on an on-going basis, I ACS has the people and the high-speed equipment to get the job done— in 72 hours, or as little as 48 hours in some instances, after receiving the information from vou. Total service is only a phone call away. Whether you need a complete plastic card program designed specifically for you, or simply a secondary card source, American Fletcher’s Consumer Service Bureau provides personalized attention and the kind of security you’d expect from a bank. So give us a call, collect: (317) 633-1501. Ask for John Bradshaw or Fred Schorkopf. AMERICAN FLETCHER NATIONAL BANK A F N B Indianapolis, Indiana M ID -CON TIN EN T BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 Proper Site Selection Is Key to Success W hen Bank Undertakes Building Program W hot a p p e a r at first glance to be flying saucers turn out to be drive-up facility of First N at'l, D anville, III. Located across street from bank building, nine-lane facility is located on relatively sm all site at busy intersection. Drive-up units are placed so that visu al eye contact w ith all of them is m aintained from single building (foreground). This w a s project of Illinois Bank Building Corp., Chicago. By JO H N K. V A N SCHELTEMA President Illinois Bank Building Corp. Chicago T )A N K EXPANSION PROGRAMS J-J normally revolve around expand ing existing facilities or selecting new sites for additional facilities. The initial stage in selecting a site for a financial institution should begin with an opera tional survey of the existing bank. This survey should be conducted by a firm capable of analyzing operations and re lating them to future growth. Results o f this survey should assist in determin ing what courses of action are open to the bank in its expansion program. Once this has been explored, a mar keting survey for site locations often is useful. This survey would relate to the probabilities of shifts in population, commercial development and other con tributing factors. An equally important consideration in the process of choosing a site must be the capability of that site to receive the type of structure initial surveys deemed desirable. Once the general lo cation has been isolated and before property is purchased, the bank’s con sultants should prepare drawings of various sites and relate internal space requirements and organization to these sites so that a logical selection can be made based on physical characteristics. One of the most difficult and im portant aspects in the design of bank buildings is site use. Too often, this part of architectural planning is not re searched to the degree necessary to achieve proper site utilization. If the site once chosen is ill used, no matter how much time and effort are spent on functional planning for internal op erations, the entire project will suffer. Vertical and horizontal circulation pat terns, as well as the internal function and organization of the building, must be related to the entire site. The site and the building cannot be considered separately as they are both part of the whole. An excellent example of combining structure and site is to be found in the drive-up system designed for First Na tional, Danville, Illinois. This unique Special Building Features THE ASSEMBLY FDR HAM DIREETDRS Returns tu MEXIED EITY fur the TWENTY-SEVENTH ASSEMBLY at El Eamino Real Hutel February 3-6,1977 For information ivrite Dr. Richard B. Johnson . President, The Foundation o f The Southwestern Graduate School of Banking, SMIJ Box 2 1 4 , Dallas, Texas 7 5 2 7 5 ; or call A /C 2 1 4 /6 9 1 -5 3 9 8 . The recently completed facility of Peoples Bank, Branson, Mo., called Peoples Banking Center, has tw o unusual features. TOP: Because B ran son is located in a popular tourist a rea in the O zarks, one of the new facility's drive-up lanes w a s especially designed for cam pers, pickup trucks and recreational vehicles. The kiosk is a foot higher than norm al to accom m odate drivers seated in the higher vehicles. The young w om en pictured a re high school students who dem onstrated the drive-up's pneumatic-tube system during grand-opening cerem onies. Their dresses feature the sym bol of First Union, St. Louis-based HC to w hich Peoples Bank belongs. BOTTOM: Peoples Banking Center's building has a curved P lexiglas portion at the roof line to a llo w sunlight on indoor greenery. 74 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID-CONTINENT BANKER for October, 19 76 design has combined building and site into a single, useful tool for banking. A relatively small site (150x150 feet) at a busy intersection was developed into a nine-lane drive-up system cap able of accommodating 26 cars in the system at one time. The drive-up units are placed in such a manner that visual eye contact with all the units is main tained from a single building, with the average distance from the teller being 35 feet. The building also includes a small banking lobby as well as em ployee facilities. This facility is across the street from the main bank building and is connected by a pneumatic-tube system for transfer of items. Selection of a site not only must fill current requirements of the bank, but also project future expansion capabili ties. Often a site adequate for current operations lacks the capacity to serve even a minor expansion. The importance of proper site selec tion and site use cannot be overem phasized for this is the key to the suc cess of any building program. A wellorganized beginning results in a suc cessful ending. * * Bank of Oklahoma Makes Move To New 52-Story Building; W ill Open to Public in November TULSA— Employees of Bank of Oklahoma have begun their move to the bank’s new 52-story building, said to be the tallest in the state. The Bank of Oklahoma Tower reportedly will open to the public in November. The new structure is located one If you look better, you’ll feel better, and if you feel better, you’ll work better. Wear the best in business fashions N ew Bank of O klahom a Tower in Tulsa w ill open to public in N ovem ber. Said to be tallest building in state, 52-story structure has more than 34 acres of space. Bank w ill occupy 10 floors of Tow er; 25 other businesses w ill be headquartered there. M ID -CON TIN EN T BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FASHIONS FOR BUSINESS 404 S. Wells • Chicago 60606 • (312)922-8448 75 block from the bank’s present facility and is in the Williams Center. A ccord ing to a bank spokesman, the sky scraper will consolidate under one roof various operations that previously were housed in different buildings. The institution will occupy .10 floors in the Bank of Oklahoma Tower, which also will serve as headquarters for about 25 other firms. The Tower, which is 667 feet tall, contains more than 1.5 million square feet of office space— the equivalent of 34 acres of space. The first three levels of the building, which have 400,000 square feet of space, will be for bank ing, retail and support services. The “ open space” concept will change the physical appearance of the bank’s operations, the spokesman add ed. The interiors are accented with colorful partitions and plants in order to enhance the banking environment for staff and customers, he said. N ew Pedestrian Signal Future' Built Into Branch Bank Plans In Anticipation of Liberalized Statutes By WILLIAM C. G O O C H JR. President York State Bank Elm hurst, III. HENEVER someone asks what York State’s most successful in vestment has been, I have to answer “ our drive-up facility.” It has proved to have so many obvious benefits that our investment in the project has been more than outweighed by the results. In fact, after just 22 months of op eration, the facility handles 33% of our customer transactions. And, because of the additional space “built-in” by Bank Consultants of America, the facility can be expanded quickly and inexpensive lyThe facility was built for the future. But, when we first realized that a facil ity was absolutely necessary to serve present customers adequately, all we thought about was constructing a few drive-ups at as low a cost as possible. The first thing we considered, be- W cause the facility is on the site of an old gas station, was simply remodeling the station. Then we investigated vari ous low-budget facility construction ideas. Finally, we settled on the attractive “mini bank” design, because we be lieved it would return more, in the long run, for our investment. In addition to the three drive-up stations (and provisions for a fourth), the facility contains a lobby area with four teller windows and plenty of floor space. And, each teller area can service both a drive-up and lobby window if necessary. Bank Consultants included a full basement vault in the facility design. This is unusual; but w e wanted York State to be ready to take advantage of future changes in Illinois banking laws. For that same reason, the structure it self is sturdy enough to allow the addi tion of a second floor. In addition to its expansion poten tial, we believe the facility makes a Colorful exterior plantings around York State's drive-up facility have encouraged a re a m erchants to spruce up their prem ises, giving neighborhood a new look. 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Alm a Kim lin, asst, sec.-treas. and senior citi zens coordinator, To w er G rove Bank, St. Louis, and Joseph C. Sw arthout adm ire the n ew ly in stalled pedestrian signal outside the bank. Mr. Sw arthout had requested the signal for the busy intersection and w ith the help of Mrs. Kimlin and bankers Thom as H. Brouster, v.p., and Richard E. Fister, pres., city a p p ro v al w a s obtained for the cro ssw alk sign. RMA Chapter Elects Officers The Ohio Valley Chapter o f Robert Morris Associates has elected the fol lowing officers for 1976-77: Kenneth A. Kehlbeck, vice president, American Fletcher National, Indianapolis— presi dent; Clyde W . Howlett, vice president, Old National, Evansville— vice presi dent; and Barry L. Zerkle, assistant vice president, Fifth Third Bank, Cincin nati— secretary-treasurer. significant aesthetic contribution to the area. The plans allowed for a very at tractive, comfortable interior; but the outside landscaping is what makes the facility so unique. W e’ve planted a wide variety of shrubs and flowers in numerous garden areas around the building. And the side facing the street is highlighted by a fountain. The result is not only at tractive year-round, but has inspired merchants all along the block to place sidewalk planters outside their busi nesses and to remodel or repaint their store’s exteriors. The block has taken on a new look. And we’re proud to have been a mov ing force. W ere there any problems in con struction o f the facility? Yes, there were some, as there always are with a major construction project. But we found that working with a professional firm facilitated solving them. Was the investment worth it? Defi nitely! Our customers are pleased. W e are able to provide better, more con venient service. And we have been able to attribute a significant amount of new business to the convenience and attrac tiveness of the facility. * * M ID -CONTINENT BANKER for October, 1976 We’re giving our competition a warning . . . here come Lynn, Gus and Jim. Three of the most experienced and successful correspondent bankers anywhere are now heading the Corres pondent Bank Department at the same b ank. . . Memphis Bank & Trust. They do it all, right down the list, with a full staff behind them: Transit Operations, Credit Assistance, Investments, Bond Portfolio Analysis, Safekeeping, Trust Services, Data Processing, Business Referrals . . . and a few surprises like expert insurance capability, guidance in the construction and design of bank facilities, furniture, decor . . . even supplies. Now that’s correspondent banking with a flourish. We were good before. Now we’re terrific. Lynn Hobson, Vice President Gus Morris, Vice President Jim Newman, Vice President Call toll-free and they’ll rush to your rescue. In Tennessee, 1-800-582-6277. In other states, 1-800-238-7477. TH E TH REE M B & TE E R S Memphis Bank & Trust Correspondent Department M ID -CON TIN EN T BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 * First Alabama, Birmingham, Sets Ribbon-Cutting Event For Last Week in October O N THE COVER: First A labam a Bank B uilding soars skyward at corn er o f 20th Street and Fifth A ven u e North, Birm ingham . E ighteen-story tow er rises 253 feet, is clad w ith b ron ze panels. First A la b a m a 's tw o-level Hobby creates d ra matic study in Travertine m arble and bronzetone glass. T O 78 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HE SNIPPING of a colorful green ribbon measuring 300 feet in length and nine feet in width with a pair of scissors with 14-foot blades will mark the formal opening of the newest land mark in Birmingham, Ala.— the First Alabama Bank Building. The ceremony will take place the last week of this month. Birmingham’s main street will be cordoned off direct ly in front o f the bank to make room for spectators who will watch Norman D. Pless, chairman, cut the ribbon, which will drape the dramatic new building’s 18 stories from top to bot tom. The opening will mark the culmina tion of two years’ work on the 190,000-square-foot building that rises 253 feet from the sidewalk to take its place in Birmingham’s skyline. Build ing plans were announced in late 1973. Featuring a sunken garden and what is said to be the second installation of remote color TV drive-in facilities in the nation, the bronze-clad structure is a dream come true to officers and di rectors of the 48-year-old bank. The bank occupies 61,000 square feet on six floors. The remaining 130,000 square feet of rental space is being leased by Canal-Randolph Bir mingham, Inc., real estate developer headquartered in New York and co owner with the bank of the building. The ultra-modern exterior of the structure is complemented by interior decoration using earth tone fabrics and bronze and silver metals. Seventy tons of imported white Italian Travertine marble were used to grace the solid walls throughout the building and cre T ate dramatic teller lines in the bank’s two-level lobby that features a 36-foot ceiling in one area. Sixtv-seven tons of red marble were quarried in neighbor ing Tennessee to provide flooring and accents in both banking and public lob bies. Warm wall coverings of suede and natural grass combine with se quenced matched teak, mahogany and walnut paneling on banking floors. Fur niture, paneling, fabrics and even desk accessories match the overall mood of decoration. The exterior sunken garden theme is continued throughout the building by extensive use of living plants. A large Travertine gas-fueled fire place surrounded by overstuffed chairs highlights the 18th floor executive re ception area. Also on this floor is a Chinese-accented executive dining room seating 48 that overlooks the city below. An adjoining private dining room seats 12 for business meetings. Also on the 18th floor are an auditori um seating 150 and a board room, each of which is equipped with full rearscreen audio/ visual projection and sound capabilities. Chairman Pless and President W. L. Hurley have their of fices on this floor. All retail banking functions— such as teller line, new accounts and install ment loan functions— are located on the ground floor. Commercial loan of ficers and commercial loan tellers are on the second floor and a special teller services business firms with large cash transactions in the vault area. The 40-by-60-foot vault is protected from fire with a gaseous extinguishing system and an energy-conserving tem- M ID-CONTINENT BANKER for October, 1976 developers owners investors Telephone (212) 826-6040 277 Park Ave., New York, N.Y. 10017 Listed on N.Y. and London Stock Exchanges MID-CONTINENT BANKER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 perature control system for heating and air conditioning is run by a com puter. More than 300 feet of underground pneumatic tubes provide service to drive-up customers, who maintain vis ual contact with tellers via full color TV units. A similar TV walk-up unit is available in the building’s public lob by for after-hours transactions. The Diebold color T V system is said to be the second installation in the na tion featuring color TVs. The first in stallation was made at First National, Dallas. Drive-up tellers are situated some 300 feet from the two drive-up lanes. Adjacent to the building is a 750-car security controlled parking facility op erated by the Birmingham Parking Au thority. First Alabama’s building was de signed by John Carl Warnecke & Asso ciates, New York, and Russell McCalebe & Associates, Phoenix. General contractor was the Henry C. Beck Co., Birmingham, and interior design and decoration came from architects Cobb, Adams & Benton, Birmingham, and Welton Beckett, Houston. * * Leasing Success Story N orm an D. Pless (I.), ch., First A la b a m a Bank, and W. board room that overlooks Birm ingham 's new civic center. L. Hurley, bank pres., in 18th floor Bank d e p a r t m e n t s featu re living plants, glass and war m tones. First Alabama’s new building has 130,000 square feet of tenant space that is proving to be popular with business firms. More than 70% of the tenant space was leased by September 1 to such firms as Arthur Andersen & Co.; Touche Ross & Co.; Bache, Halsey & Stewart, Inc.; Walter E. Heller, Inc.; Robinson-Humphrey, Inc.; and Provident Life Insurance Co. m m First A la b a m a Bank's remote Diebold color TV drive-in facility is located about 300 feet from the banking tow er. ■ ■ Rental space in First A la b a m a Bank Building is custom designed. This is la w firm's reception are a . The building is just a few blocks from city hall, the county courthouse, the newly completed civic center and many other of fice buildings. The new building offered a good location and totally customized space design, all utilities, carpeting, drapes and cleaning service. Interior design is columnfree for flexibility and the structure is said to be the only new high-rise in Birming ham to be protected by a sprinkler system and computer-controlled energy manage ment system for low-cost heating and air conditioning. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID -CONTINENT B AN KER for October, 1976 TH ESE G U YS W O N T LEAVE W ELL ENOUGH jo e Blank, Mike Miller and Ron Deal. It seems they have a couple of key phrases that work consistently well. For us, and our corre spondent banking friends. They go like this: What if? Why don’t we? Why not try this? (and) I wonder why nobody else thought of that? W e didn’t get to be the largest bank in the state by offering you the same tired solutions over and over again. W e keep it loose. Because every bank, and every banking problem, are unique. And we’re flexible enough to find the best solution for you. Because we’ve got people who won't leave well enough alone. Call us toll free. In Tennessee, T800-342-8240. In other states, 1-800-251-8514, « First American First American Center, Nashville 37237 F irst AmtennBankgroup M e m b e r F D IC M ID -CONTINENT B AN KER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 Bank Interior Designed to Reflect Country s Heritage LEFT: Four m assive banners dom inate lobby of Banco Central del Ecuador in G u ay a q u il. They feature patterns, colors and textures taken from ancient Ecuadorian civilizations. Bank Interiors, Inc., Chicago, w a s responsible for design and developm ent of all interior space in bank building. RIGHT: Stark, modern look of exterior of Banco Central del Ecuador is balanced by w arm , colorful banners that hang inside building. EVELOPING a design strategy with a sincere philosophical under tone was the challenge facing Bank In teriors Inc., a Chicago-based firm, when it was asked to undertake a project for Banco Central del Ecuador. The South American bank, located in Guayaquil, is the bank of the government of Ecua dor and is responsible, among other things, for issuance and destruction of currency as well as being a repository for a portion of the Ecuadorian gold supply. Bank Interiors duties were varied on this project. The firm was responsible for the design and development of all interior space in the 18-story bank building, including work flow and functional design, layout of security systems and assisting in selection of materials. Bank Interiors also designed and color coordinated all interior fur nishings, including carpet and drapery materials and certain furniture. Coordinating design strategy for this project revolved around archeological investigations that have documented Ecuador’s role in the rise of formative cultures of the New W orld. Designs on banners and carpeting repeated through out the building are authentic repro ductions of designs found on artifacts uncovered by these expeditions within the past 20 years. From an interior de signer’s standpoint, the warmth, variety and geometric perfection of this early Ecuadorian art offered a wealth of ma terial on which to draw. The first visual impressions received by visitors to the bank are created by four massive banners displayed in the lobby. These banners counterpoint the starkly modern architectural patterns of the building by providing a softening influence of patterns, colors and tex tures taken from the ancient Ecua dorian civilization. According to Bank Interiors, the combined effect “ human ized” a building that otherwise might have reflected a cool, impersonal, in stitutional image. The Chicago design firm believes it’s appropriate that Banco Central del Ecuador— as the institution that will play a major role in its country’s future economic development— a lso s h o u ld graphically reflect the impressive tra ditions of Ecuador’s ancient culture. Bank Interiors, working out of its headquarters (Suite 2412, 155 Harbor Drive, Chicago, IL 60601), has clients throughout the continental U. S. and abroad and acts as a consultant to fi nancial institutions in interior design, development and use of space. * * Butz to Be Principal Speaker At A B A 's 25th Ag Conference The conference theme, “ Agriculture and Banking— Serving America,” will be developed by a variety of work shops, technical sessions and outlook presentations on specific aspects of ag riculture and ag finance. games in which ABA ads are slated to appear during the season will be the Liberty Bowl December 20, the Gator Bowl December 27, the Sugar Bowl January 1 and the N FL Pro Bowl Jan uary 16. According to an ABA spokesman, the commercial spots will highlight consumer banking services. D N E W ORLEANS— U. S. Secretary of Agriculture Earl L. Butz has been scheduled as the principal speaker \ at the November 17 general session of the American B a n k ers Associa tion’s 25th Nation al A g r ic u lt u r a l Bankers Confer ence, to be held here. D a te s fo r th e BUTZ event will be N o vember 14-17 and more than 1,000 bank CEOs and agricultural specialists from across the country are expected to attend. 82 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BA To Kick-Off Fall Season By Cosponsoring Football on TV W ASH IN G TO N , D. C.— The Amer ican Bankers Association will kick off the Fall television season b y cospon soring a number of football telecasts on all three major networks. The ABA “ season” is set to open N o vember 27, when it will cosponsor the Army-Navy game. Following that will be 17 N FL games, including three double-headers. The N FL playoffs will be aired December 18 and 19. Bowl • Several Mid-Continent-area bank ers have been appointed to the Re gional Advisory Committee on Banking Policies and Practices by John R. Burt, regional administrator of national banks, 10th region: Gray Breidenthal, president, Security National, Kansas City, Kan.; Joan B. Meader, chairman and president, First National, Waverly, Kan.; James Nicol, chairman, First Na tional, Independence, Mo.; and Eugene F. Everett, president. Boatmen’s UnionNational, Springfield, Mo. M ID -CONTINENT BANKER for October, 1 9 7 6 “Being a First correspondent bank helped us succeed in landing important new business like Floyd Fairleigh’s feed yard.” - mmmmà* •*****■>* * The Security State Bank f Scott City, Kansas is a true success story. A correspondent bank relationship has helped it grow and maintain important new accounts. It began in 1967 when Duane Ramsey o f Security State solicited the agri-business o f Mr. Floyd Fairleigh o f Scott City. To handle his sizeable credit needs, Security State sought the participation o f the First National Bank o f Kansas City. First National responded y offering a major line o f credit nd the agri-business expertise o f people like Gene Foncannon. Correspondent help like this has played a part in the growth o f Security State Bank. And as Floyd Fairleigh’ s small feed yard operation has grown to six agri-business corporations, Security State has grown with many new accounts. If your bank needs a productive correspondent relationship to solicit and obtain new business, extend credit, add expertise and a depth o f personnel in your area o f interest, call the professional staff o f the First National Bank ‘ Correspondent Department. We take pride in the success o f Security State Bank. Our correspondent banking tradition has been built on help like this. Why not put our strong tradition o f excellence to work for your success. Yxir success is our tradition. First . National R C U I k D Ü 1 UV 0 * KAN SAS CITY. MISSOURI An Affiliate of First National Charter Corporation M ID -CON TIN EN T BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 83 ATMs Shared Statew ide in Ky. With C ard interchange Service LOU ISVILLE— First National has announced Card Interchange, a service allowing bank cardholders to use ATMs outside their local trade areas. ATMs can be programmed for inter changing between banks’ transactions now possible on most teller machines. Services included in the program, with certain refinements, are acceptance of deposits, cash dispensing, transfer of funds between accounts, acceptance of payments on loan or credit card ac counts and cash advances. Banks joining the Card Interchange program are charged a membership fee and per-item charges on terminal trans actions. Coordinating the service is First National’s William T. Luckett, vice president-regional services. Let o u r b illio n d o lla r o r g a n iz a t io n h e lp y o u r b a n k p ro fit. C a ll F r a n k P lu m m e r ( 2 0 5 / 8 3 2 - 8 5 8 0 ) , c h a ir m a n o f t h e b o a r d o f F irst A la b a m a B a n c s h a r e s , In c . Card Affiliate Banks First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama First Alabama Bank of Montgomery, N.A. Bank of Birmingham Bank of Huntsville, N.A. Bank of Tuscaloosa, N.A. Bank of Dothan Bank of Selma, N.A. Bank of Gadsden, N.A. Bank of Athens, N.A. Bank of Baldwin County, N.A. Bank of Guntersville Bank of Hartselle Bank of Phenix City, N.A. Bank of Mobile County ma AVAILABLE FOR IMMEDIATE DELIVERY REBUILT NCR & BURROUGHS • • Bank Tellers Machines Bookkeeping Machine— Mechanical netic Ledger & Electronic Mag IBM SYSTEM/3 DISKS & SYSTEM 32 DISKETTES COM PUTER CO N TIN U O U S LISTER PAPER— STO CK SPECIA L DESIGN FORMS AND Illinois Banks: Check with us for new facility equip ment (safe deposit boxes, proof machines, etc.). « h JACK ROBERTS Ef ASSOCIATES Interchange Under Card Interchange, First Na tional acts as the “ transmittal” bank— a clearing house between participating banks issuing cards and providing ATMs. “ Each participant institution,” Mr. Luckett explained, “ continues its pres ent responsibility for maintenance of its terminals. Each ATM will display the Card Interchange symbol and will have posted nearby a list of banks whose cards operate the terminal, along with a list of functions of which the machine is capable. “ The usual memorandum receipt of the transaction is dispensed to the cus tomer, with a copy going to that per son’s bank,” he added. D A T A S Y S T E M S A N D C O N S U L T IN G P. O. BOX 365 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EDWARDSVILLE, ILLIN O IS 62025 in M etropolitan St. Louis PHONE: (618) 656-0105 M ID -CONTINENT BANKER for October, 1 9 7 6 A multi-billion dollar US. industry takes root inTexas. First City National Bank is helping cover the field. Agribusiness adds over $7.3 billion to the Texas economy each year — including livestock, crops and many related businesses. Half of the state’s agricultural cash receipts come from livestock and the remainder from various crops, yet no single geographic area dominates the industry. A more complete look at Texas’ total agribusiness shows its national leader- Cotton production in the northwest and central sections earns Texas a ranking o f first in the country. As does beef cattle raising in the west. Sheep and wool in the southwest. And rice on the Gulf plains. Citrus fruit production in the Rio Grande Valley is only slightly behind California and Florida. First C ity National Bank adds its financial seed to Texas agribusiness in many directions. What we’ve learned is yours. W e’re becoming involved with more and more industries every day. And we’re proving to correspondents that more ser vice is the result of more experience. Understanding business as well as bank ing has helped make us . . . A major financial strength behind Texas industry7. F IR S T C IT Y N A T IO N A L BANK O F H O U S TO N c n in ‘ M ID -CON TIN EN T B AN KER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 Illinois Bankers View New' Territory Most Survey Respondents Plan Facility Under III. Law Ât Bunce-Sponsored Facility Seminar By DANIEL H. CLARK A ssistant Editor EARLY lOO Illinois bankers were on hand to view “ new” territory during a facility planning seminar sponsored by Bunce Corp., St. Louis, at the Holiday Inn-East in Springfield, 111., September 8. The seminar was held in anticipation of a new facility law that went into effect October 1— House Bill 1955, al lowing banks in that state to operate a second remote banking facility within 3,500 yards of the home office. Pre viously, Illinois banks were allowed one facility within 1,500 feet of the home office. On hand as speakers for the seminar were a number of experts on the topic: guest speakers and representatives of N Bunce Corp. Joseph Ciaccio, Illinois' first deputy commissioner of banks and trust companies, defined the law, what it permits, what it requires, filing pro cedures that must be taken by banks and steps the office of the commission er of banks takes in upholding the pro visions of the regulation. Financial implications of facility planning were discussed by Gary L. Strickfadden, partner, Peat, Marwick, Mitchell & Co., St. Louis. He outlined economic and accounting considera tions, financing procedures and how to predict the profitability of a facility. Joseph Garafolo, financial institution division director with Real Estate Re search Corp., Chicago, addressed the audience on market analysis and site selection: why market analysis is need ed, determining optimum locations, se Coffee break provided time for discussion of facilities during Bunce sem inar (all photo identi fications are from I.): Top I.—W arren P. C happ ee, pres., Alton Banking & Trust; Violet L. Hosey, a .v .p ., Godfrey State; and Lynn H all, v.p., Alton Banking & Trust. Top r.—W ally G eoghegan, contract m gr., Bunce Corp., St. Louis, and John F. Reed, e.v.p. & C EO , W ayne County Bank, Fairfield. Bottom I.—Steve Dew, ad v. mgr., First N at'l, Sterling, and Forrest Erickson, dir., First State, Princeton. Bottom r.—Penny Klein, mktg. dir., Jefferson Trust, Peoria; Ron V au g h n , mktg. dept, ch., B radley U niversity, Peoria; and Jim Katek, mktg. specialist, Jefferson Trust, Peoria. M i d - C o n t i n e n t B a n k e r surveyed 125 Illinois banks on their intentions of building facilities after enactment of the new branching law— allowing a second bank facility within 3,500 yards of the main office— and of 24 respondents, the majority indicated plans to build. With one respondent expressing uncertainty as to facility plans for the coming year, 13 banks said they would open a new branch within the next 12 months. Of those, seven will be in the bank’s own community. Others planned branches for outly ing areas, nearby towns or a shop ping center and one was uncertain where the facility would be located. Eight banks, the vast majority of those planning new facilities, won’t install an ATM at the branch; three were uncertain and three indicated they would have the machines. In answer to a query whether the facility would be free-standing or in a building housing other busi nesses, nine opted for the former, while two were not certain. Two banks will locate in a building that houses other businesses. Only one of the respondents will not offer both drive-up and walk-up services; 10 said they would. When asked if they already had a first facility— in compliance with Illinois’ earlier branching law, with in 1,500 feet of the main office— 17 respondents’ answers were negative. lection of the site and determining de posit potential. Final guest speaker was Donald G. Reynolds, consultant with Lifson, W il son, Ferguson & Winick, Inc., Dallas. His topic was the impact of EFTS, and he delineated the background of EFTS development, its significance on facility construction and tools to be used for projecting its impact on any area. Rounding out the afternoon were Bunce representatives Peter Bunce, the firm’s president, and Ralph J. Koesterer, executive vice president. Mr. Bunce discussed space planning— reasons for building a facility, use of a site, ex pansion requirements, efficient use of personnel and security. And Mr. Koes terer explained costs involved in a fa cility, including site preparation, build ing expenses, security equipment and motor banking. * * This panel of speakers w a s on hand for Bunce sem inar on facility planning, held in Springfield, III. (from I.): Joseph Ciaccio, 1st deputy com m issioner of banks and trust com panies. Springfield; Ralph J. Koesterer, e.v.p., Bunce Corp., St. Louis; G a ry L. Strickfadden, partner, Peat, M arw ick, M itchell & Co., St. Louis; Peter H. Bunce, pres., Bunce C orp.; Donald G. Reynolds, consultant, Lifson, W ilson, Ferguson & W inick, Inc., D allas; and Joseph G a rafo lo , dir., financial institution div., Real Estate Research Corp., Chicago. 86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID -CON TIN EN T BANKER for October, 1976 Beryl W. Sprinkel, Executive Vice President and Economist. Harris Bank. WHEN BERYL SPRINKEL FORECASTS ECONOMIC SHOWERS, BANKERS CARRY UMBRELLAS. Few economic forecasters are as widely respected as Dr. Beryl Sprinkel. His credentials are impressive, his influence significant in national economic and governmental circles. Hundreds of banks here and abroad know the value of Dr. Sprinkel's input through seminars held in their areas or at the Harris Bank. Others profit from Sprinkel's "Barometer of Business" newsletter and "Sound of Business" cassette tapes, distributed each month. His straightforward and easy-to-read publications—and those of his associates. Dr. Herbert Neil and Dr. Robert Genetski—are available for the asking. The "Sound of Business" cassettes are available for a modest annual fee of $100. The point is, even if you can't get together personally, we can still bring Beryl and his associates to you. Just get in touch with your Harris Banker or write on your letterhead to Beryl Sprinkel. HARRIS f ä s BANK, Harris Trust and Savings Bank, 111 West Monroe Street, Chicago, Illinois 60690. Member F.D.I.C., Federal Reserve System M ID -CONTINENT BAN KER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 A 10 0 % Boost in Traffic Realized At Remodeled Drive-Up Facility; Little Increase in Personnel By DEAN R. MORE Bank Equipm ent Consultants Denton, Tex. EN TRAL BANK, Farmers Branch, Tex.,* recently built a drive-up facility the way you would “ if you had a chance to do it over again.” The bank built its first one six years ago and, with the equipment supplier’s help, out fitted it with top-of-the-line equipment, comprised of six lanes of captive-carrier TV units with plans for later expansion to 12 lanes as growth warranted. Some u n e x p e c t e d problems de veloped. A crushing load of annual service cost in conjunction with un reliability demanded that the bank take a fresh look at drive-up equipment and at its customers’ real needs. Central Bank retained Bank Equip ment Consultants to work with its own people and its architect, John R. Thompson & Associates, Inc., Dallas, to help plan and design a functional, cost-effective drive-up, a facility that would serve the bank’s customers quickly and efficiently and be aesthet ically pleasing to the community. The new facility opened March 2, 1976. It consists of 12 remote (non T V ) retail lanes “head-on’ and two com mercial lanes (one conventional drawer and one remote unit), a total of 14 lanes. The remote units are “loosecarrier.” In addition to space for a maximum of 10 tellers, the tellers building houses a postal lobby, an employee lounge and a workroom for proof machines. The facility is connected to the main office by a six-inch-diameter pneumatic tube for transferring work and currency, plus coaxial cable for a closed-circuit sig nature-verification system. A “ second chance” changed the bank’s attitude toward what’s really C * Central Bank is located in the Dallas area. The bank celebrated its 15th anni versary in September. It has total assets of $47 million and total deposits of $43 mil lion and services 16,000 checking accounts. 88 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis important in a drive-up facility and what to consider in drive-up equipment. The bank evaluated the following basic points during the selection process: First of all, why is the bank building a drive-up? Obviously, because some customers prefer the convenience of banking from their automobiles. What do those customers expect from drive-up equipment? Experience had shown that customers have only two demands— first and foremost, reliability. Everyone is a little reluctant to see his transaction vanish down a hole. If the equipment ever fails him, or if it fails the customer in the lane next to him, or if a lane is closed (it must be broken) or is being worked on, the customer’s confidence slips a little. The depositor wants total reliability. The customer’s only other desire is a reason able waiting time before being served, and that is a matter of providing enough lanes. When the bank emphasized reli ability, it was attracted toward the lesscomplex systems, without “ features” such as mechanical presentation trays, captive-carrier design, TV, etc. The bank’s management asked itself what “features” beyond basic equip ment can it buy (and pay a premium to own) that will in fact cause de positors to transfer their accounts from neighboring banks to do business with Central Bank? Answer— none. N obody will transfer his account to do business through a particular model of drive-up equipment. Next thought: W hat “fea tures” might the bank buy that could make its depositors unhappy? Any feature that reduces the machine’s re liability by adding unnecessary com plexity. That includes virtually any feature beyond a basic system. Three cost advantages of basic equip ment were immediately apparent: It sells for less, a difference of up to $8,100 per lane. Because of its simpler design, it is inherently less subject to breakdown and, therefore, the annual service contract is less, a savings of up to $7,000 per lane over 10 years. A d ditionally, replacement cost of the customer kiosk, in event of a collision, Above are front and rear view s of drive-up facility of Central Bank, Farm ers Branch, Tex. Accom panying article tells how ban k "red id " its motor bank so that it serves more customers than old facility did, but w ith little increase in personnel. DEAN R. MORE was general manager of field operations for Mosler until re signing in May, 1974, to start his oivn firm. At Mosler, he was responsible for sales, installation and service nationally. Refore that, Mr. More teas Mosler s Southivest regional manager, based in Dallas, and then general sales manager. can be less than half that of a complex system. The bank’s officers agreed that cus tomers should be able to use the system with an absolute minimum of confusion. That meant not having to push a button to receive the carrier or to dispatch it. Truly automatic. Also that the customer should be able to replace the carrier into the terminal any way he chose— vertically, horizontally or anywhere in between. Annual service-contract cost was con sidered by spreading it over a 10-year period, roughly the life of the equip ment. Centra] Bank took the 1976 service-contract cost, increased it 10% per year (a conservative increase), ex tended it for 10 years and totaled it. It ran as high as $10,165 per lane for one model. Incidentally, annual service-contract costs reflect a supplier’s confidence in his product. His service-contract amount is based on actual field experience, then perhaps shaved a little to avoid com petitive disadvantage. W hat the bank chose to purchase this second time around was dramati- M ID -CON TIN EN T BANKER for October, 1 9 7 6 M in n e a p o lis/S t. Paul ‘ ROCHESTER SIOUX FALLS MADISON ’ MASONCIT^ M ilw aukee )UBUQUE .ROCKFORD FT. DOOGt N ew York *TERI- ï S § C h ica g o EpAR rapios; D e s M oines QUAD CITIES] ^OOTTUMWA % -GALESBURGi BURLINGTON O m aha 1ISTERUNGW7I \ f^0RIA^y-|-- \ 4 ^ M i^ iB L 0 0 M I N G T 0 N X \ 1/ /l/ik ^ p ^ CHAMPAIGN^ / QUINCY o « .HANNIBAL, \ JROCK FA LL S// DECATURpr/ URBANA K a n sa s City MT VERNOM ^ COLUMBIA JEFFERSON CITYy D enver / S t. Lo u is V / / JOPLIN CAPE GIRARDEAU\ SIKESTON In dianapolis W ashington W FT LEONARD WOOD SPRINGFIELD Lo u isv ille MARION \HERRIN ■PADUCAh CLARKSVILLE HOPKINSVILLE' FT. CAMPBELL T u lsa A J L 4w l / / m mattoon V iSPRINGFIELD T CHARLESTON1 N a sh v ille D a lla s/F t. Worth * Every 2.3 minutes an O zark nonstop takes off somewhere betw een N ew \brk and Denver. Check our schedules against yours. '•‘Based on 459 weekday departures between 0545 and 2346. O Z A R K Q t A IR L IN E S G et yourselfup ! go O zark. M ID -CON TIN EN T BAN KER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S o m e t i m e s e n o u g h N e w a r k 's e n o u g h . It really is The Big Apple. There really are a hundred places to find Szechwan oysters, kinesiology classes, maritime lawyers or a Spode gravy boat like the kids broke. But sometimes New York can get to be too much o f a good thing. Unless you know somewhere to hide. Welcome to The Barclay. The Barclay is a small east side hotel. (The lobby is about fifty steps across. The Big Conference Room holds twenty people.) The Barclay is elegant without being stuffy, expensive without being ridiculous. Next time you need to get in out o f New York, remember The Barclay. cally different from its six-year ex perience with remote equipment. Since opening last March 2, the equipment has proved extremely re liable, having required just nine service calls, four of which were caused by defective electrical fuses. The annual service contract for 1977 will be ap proximately $3,500 for 13 lanes, versus $11,000 on six lanes at the old facility. Stephen T. Jordan, bank president, reports, "Customer acceptance has been excellent, and drive-up traffic has in creased 100% since the new facility opened. As many as 1,500 customers have been served in a three-hour period. The new equipment permits us to operate our new 14-lane facility with very little increase in personnel over the old six-lane facility.” Drive-up banking can be an effective and economical way to market a bank’s services, but only if the equipment functions as depositors expect it to— reliably. * * They're No A lc o h o lic s : Children Meet Brewers In Youth Baseball Clinic Frost National, San Antonio, has helped a number of area youngsters meet the Brewers. No, the bank isn’t contributing to child alcoholism; the Brewers are a class “A A ” affiliate of the Texas Rangers. The event was a free baseball clinic and game, called the Frost Bank Youth Baseball Clinic. Ball-club members were on hand to give the youngsters tips on baseball and to autograph free color photos of the team. Afterward, the children watched a game between the Brewers and the Midland Cubs. To obtain a ticket for the clinic, all a youth had to do was visit a reception ist in the bank’s lobby. Aid for Earthq uake Victim s When enough New York’s enough. 48th just o ff Park. (800) 221-2690. In New York State, call (800) 522-6449. In the city 755-5900. Call your corporate travel office or travel agent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gil M azzolin (I.), ch., Capitol Bank, C hicago, and Am y M azzolin, mktg. service off., present a check to Jam es Coli, pres., Joint C ivic Com mittee of Italian -A m erican s. The donation w a s raised during the bank's Italian earthqu ake drive and w ill be distributed to relief agencies in Italy. T h is book, and the company behind it, made the job of opening our new bank almost easy.” Phillip R. Boyce, President Pacific Valley Bank San Jose, Ca. “ Several months prior to opening Pacific V alley B ank, I contacted Harland about providing us with a basic check list of forms and supplies we might need in our day to day opera tions. Soon, a Harland representative showed up with this New Bank Plan ning Book and a sincere desire to help us. No strings attached. “ The New Bank Planning Book w as invalu able. It listed exactly what items we needed, some of which were not even produced or provided by Harland. “ Our H arland representative helped us immensely, giving us the benefit of his experience in opening new banks. He pointed out some prob lems we might experience, and helped us to avoid them before th ey h ap pened. Again, no strings attached. “ To m ake a long sto ry short, Pacific V alley B ank has grown e x tremely well, as has our relationship with Harland. The interest they showed in helping our small bank get started is still evident, and they continue to help us solve our day to day problems. “ I am extremely gratified with the relationship we enjoy with Harland, and I look forward to continuing it in the future’.’ A t Harland, we do more than print checks. W e print good ideas. UAHARiAND BANK STATIONERS. PO. BOX 13085. ATLANTA. GEORGIA 30324 M ID -CONTINENT BAN KER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9! A t Texas A & l: Work-Study Scholarship Begun for Finance Majors Corpus Christi National has estab lished a work-study scholarship pro gram at Texas A&I University, Corpus Christi, for students majoring in finance and/or accounting. The “ Corpus Christi National Bank Career Scholarship,” as it’s called, will provide a full scholarship and recipi ents will be employed by the bank on a part-time basis during the academic year for their on-the-job training. Two scholarships will be awarded this fall: one to a junior student and one to a senior. Preference will be given to minority group students. Recipients must main tain a grade point average of 2.5 on a four-point scale. G e t Your G r ip s : Luggage Draws Customers To First of Chicago opened new savings accounts. Total de posits were in the $7-million range. American Tourister “ Escort” luggage was offered at reduced prices for de posits of $250 or more. Customers could purchase as many as five different pieces of soft-sided, grained vinyl luggage from six sizes that were available: a 16inch tote for $9.95; a 22-inch carryon for $19.95; and for $24.95 each, a choice of a 26-inch pullman, 40-inch car bag or a three-inch or five-inch attache case. As an extra benefit, customers could request delivery service for a small charge. “ Travel in Good Company” was the headline of ads announcing the pro motion. Daily newspapers and a local radio station carried the bank’s in centive message to the public. Coupons for mailing deposits and luggage orders were included in print ads and displays featuring the merchandise were situated in various places around the bank. Keeping Employees Cool' (Continued f rom page 38) More than 7,000 new customers joined the rolls at First National, Chi cago earlier this year. And those cus tomers walked off with more than 14,000 pieces of luggage! O f the new customers, about 33% bags imprinted with the CNA logo, contain a plastic bandage, headache tablets, Turns, stomach powder, a cough drop, seltzer powder and mouth wash, all in a packet that resembles luggage, plus a candy bar in a firecracker-type container. CNA suggests that the latter could be used as a coin bank. The tote bag, which also can be used to carry personal belongings on moving day, comes with a note that says, “ There might be a moment or two when you'll find yourself getting hot under the col lar. Cool off . . . bank those fires . . . just count to 10 and drop some pennies into your firecracker bank. It’ll save the day.” After the moves are made, CNA ar ranges for a plant to be on the desk of an employee at his or her new lo cation the first thing Monday morning (the moves always are made on week ends) or within an hour or two after the employee arrives. Also, as soon as a department is settled down from its move— usually a day or two afterward — CNA serves coffee and rolls there, thus creating a party atmosphere and helping employees start out in their new offices in a good mood. Employees are an important asset to any business, including banks, and the happier and more contented they are, the better job they’ll do for their em ployers. Thus, when banks are making plans to remodel their present quarters or erect new buildings, they should con sider programs like those at Mercantile and CNA. They could help staff mem bers “ keep their cool” during a period of change and uncertainty. * * When You're in St. Louis, Why Not Go One Step Further And Take Advantage of the Finest Hotel Accommodations the City Has to Offer . . . C h e s h ir e H o b g e Located between, and only minutes from, Downtown St. Louis and the Clayton Business District (ührahirp Jrot 6300 CLAYTO N ROAD SAINT IGoitgr LOUIS, MO. 63117 (314) 647-7300 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID-CONTINENT BANKER for October, 19 76 Everything about the portfolio added up. But the earnings. A correspondent bank faced a big problem. Their million dollar portfolio wasn't per forming. And with rising expenses and de creasing loan demands, it looked like they wouldn’t meet their income goals in the years to come. Faced with this dilemma, they came to a bank with a proven earnings record. First in Dallas. Where a team of Asset and Liability Management Specialists rolled up their sleeves. And got down to business. They started by looking long and hard at the bank. Where it was and where it was go ing. The debt structure, their customer pro file, and a dozen other factors. Then, after they knew the bank and the town, they used their market knowledge and the experience they had gained from manag ing their own portfolio to recommend changes. Like the wider spread between “agen cies” and “governments.” A strategy for ad vance refunding maturities. And active man agement of both assets and liabilities. The result was a higher earning portfolio. One that was better geared to market condi tions. And supported by continuous, up-todate management strategy. And all it took was good thinking. Based on 100 years of experience and a concern for the customer’s best interests. If that’s the kind of creative thinking your bank needs, call Charles Dunlap, Vice Presi dent of our Correspondent Division at 214744-8030. Because at First in Dallas, good banking starts with good thinking. First National Bank in Dallas Member F.D.I.C. A subsidiary 01 ■ « « First International B an csliares.In c. Branch offices in London, Paris, Singapore and Cayman Islands. Representative offices in Tokyo and Sao Paulo. M ID -CONTINENT BAN KER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 Code of Ethics for Credit-Information Exchange Is Revised by RMA for First Time in 60 Years E X CH A N G IN G credit information, proving the situation by appointing a of course, is an essential part of special committee to conduct an in most commercial banks’ day-to-day op tensive study into all phases of the in erations. Their decisions to extend formation-exchange process. Through credit to borrowers often hinge on data research and discussions with bankers gathered from external sources. In ad around the country, the committee con dition, procuring information is an im firmed that many problems and viola portant service banks offer to their own tions stemmed from a lack of under customers so that those customers can standing of the credit-information-ex make wise credit decisions. change process and of RM A’s code. To help banks in this area, Robert Therefore, the group turned its at Morris Associates adopted— in 1916, tention to the code itself. It consolidat two years after it was founded— a ed the existing code’s 12 articles into eight, including a new one covering re Code of Ethics for the Exchange of quests for information based on actual Credit Information. Since then, accord ing to RMA, its principles on handling or contemplated litigation. Although none of the principles of the original inquiries and replies have provided the ethical framework for the exchange of code were deleted, RM A emphasizes, the resulting articles are clearer and credit information on commercial cus more concise. tomers. Although originally drafted to RMA also developed accompanying govern the exchange of such informa tion between banks, both RMA mem explanatory comments for each of the bers and nonmembers, the code’s pre articles. Much of the commentary ma cepts have spread to serve as the foun terial consists of guidelines on how to exchange credit information and abide dation for all commercial-credit-infor mation exchange in the U. S. by the Code of Ethics. The revised code was approved by However, RM A points out, in recent RM A’s board, and copies have been years, there’s been an increase in the mailed to the 6,600 individual repre number of problems in the credit-in sentatives in RM A’s 1,700 memberformation-exchange area as well as vio banks. These banks represent 75-80% lations of the code. The general result of all U. S. commercial banking re has been a deterioration in the ade sources. The association also mailed a quacy, accuracy and promptness of in copy to the CEO of each of the na formation exchanged. Principal viola tion’s commercial banks. tions of the code have included indis crete handling of confidential informa Up to 50 free copies are available tion, revealing the name of the source from RM A headquarters, 1432 Phila of information or the inquirer without delphia National Bank Building, Phila consent, failing to tell the bank of ac delphia, PA 19107. count that the subject of the inquiry Following are the revised code’s also is a prospect when an inquiry is eight articles and accompanying com made and failure to discuss frankly the ments: ARTICLE 1: There are two cardinal purpose of the inquiry. principles in the exchange of credit-in Starting in the fall of 1975, RM A’s formation: confidentiality and accuracy Credit Division gave top priority to im T h e re 's b e e n a n i n c r e a s e in t h e n u m b e r in fo rm a tio n -ex ch a n g e a rea of of inquiries and replies. Included are identity of inquirers and sources which cannot be disclosed without their per mission. Adherence to these and the other principles embodied in this code is essential, as offenders jeopardize their privilege to participate further in the exchange of credit information. COM M ENTS: Confidentiality, as used here, is based on the reliance placed on the fidelity of another with whom information is being exchanged. A trust is placed in all parties involved that the information has been request ed for a legitimate purpose and will not be used indiscriminately. When investigations are being con ducted, identity of the inquirer should not be divulged without its authoriza tion. Similarly, identity o f the source of the information should not be made known without its authorization. Facts presented must be accurate be cause the bank reference is one of the most pertinent sources of credit infor mation. W hen discussing data, favor able or unfavorable, the responding bank must give a reply that’s restricted to or based on fact. If a discrepancy is discovered within a reasonable time after an inquiry has been answered and is considered to be significant in rela tion to the purpose of the inquiry, it’s prudent and ethical that the discrepan cy be disclosed to the inquirer. It’s expected that, as a matter of pro fessional courtesy, no liability will be attached to or result from the goodfaith exchange of information. If the information is for a customer, it should be screened according to the customer’s needs, credit sophistication and ability to handle the information discreetly. Adherence to these and other prin- p r o b l e m s in t h e c r e d i t - a s w e ll a s v io la tio n s of th e (R M A ) co d e . T h e g e n e r a l r e s u l t h a s b e e n a d e t e r i o r a t i o n in t h e a d e q u a c y , a c c u r a c y a n d p ro m p tn e s s o f in fo rm a tio n e x c h a n g e d . P rin cip a l v io la tio n s o f th e code have in clu d e d in d iscree t h a n d lin g of co n fid e n tia l in fo rm a tio n , re v e a lin g th e n a m e o f th e so u rce of in fo rm a tio n or th e in q u ire r w ith o u t c o n s e n t , f a ilin g to te ll t h e b a n k o f a c c o u n t t h a t t h e s u b je c t o f t h e i n q u i r y a l s o is a p r o s p e c t w h e n a n i n q u i r y is m a d e a n d f a i l u r e t o d i s cu ss fra n k ly th e p u r p o s e o f th e in q u iry . 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID-CONTINENT BANKER for October, 1976 WE'RE HELPING TO BUILD-UP THIS PART OF OUR GREAT LAND. WE'RE W ITH YOU, EVERYWHERE! M T jP BANK« National Correspondent Division Chattanooga, Tennessee 37402 Phone 1-(800) 572-7308 in Tennessee or l-(800) 251-6266 in all adjacent states M ID -CONTINENT B AN KER for October. 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9E ciples embodied in this Code of Ethics is essential. Violations ' of the code could damage the reputations of of fending banks and individuals. If they demonstrate an inability an d /or un willingness to handle and exchange credit information responsibly, they risk losing the privilege. In addition, violations of the code by RMA member banks may lead to termination of their membership in the association, in accordance with Sec tion 2.07 of the RMA bylaws. ARTICLE 2: Each inquiry should specifically indicate its purpose and amount involved. COM M ENTS: One of the most im portant elements of an inquiry is its purpose. The bank receiving the in quiry has a right to know why the in formation is needed. If no purpose is given, there’s no obligation to respond. Knowing and understanding the pur pose of an inquiry places the recipient in a better position to respond with the type and amount of information need ed to satisfy the inquirer. When the purpose of the inquiry is solicitation, acquisition, merger, competition or ac tual or contemplated legal action, re ply is at the discretion of the bank of account. The inquirer should state the initial steps taken, as well as the information on hand, to avoid duplication of effort. Legitimate use of credit information is to assist an inquirer who expects to extend credit or otherwise rely on the subject of the inquiry in business deal ings. An inquiry should not be an swered without first determining its le gitimacy and establishing the identity of the inquirer. For example, when re ceiving a telephone inquiry, informa tion should not be disclosed on the first call unless the inquirer is known and identified. A return call usually will es tablish the inquirer’s identity. In the majority of instances, a spe cific amount is involved in the transac tion that generates an inquiry. When initial trade credit is involved and no amount is established, the inquiring party should be asked for the normal size of its transactions. A range of fig ures such as $500-$ 1,000 or $50,000$60,000 is acceptable. It’s unaccept able to use fictitious figures or to inflate the amount involved to induce the re sponding bank to provide details be yond what may be necessary to answer the inquiry suitably. If, for some reason, there’s no amount involved, the inquirer should state this in a manner that log ically would satisfy the respondent as to the overall purpose of the inquiry. A proper inquiry should contain the following: 1. Subject: The subject of the inquiry should be identified as completely as possible, including full 96 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis name, address and names of principals. 2. Purpose: Reason for the inquiry should be given in sufficient detail to allow the recipient to make an appro priate response. 3. Experience: If the inquirer has had experience with the subject, a summary of that experience should be provided. Doing this creates a true exchange of information and helps eliminate duplication of effort. 4. Requirements: The inquirer should be specific about the information re quired to satisfy the needs of the in quiry, such as deposit relationships, loan experience, financial information, assessment of management, etc. 5. Other: Any other factors relevant to the inquiry should be disclosed. ARTICLE 3: Responses should be prompt and disclose sufficient material facts commensurate with the purpose and amount of the inquiry. Specific questions should be given careful and frank replies. COM M ENTS: Prompt and accurate replies are signs of dependability and professionalism that help users of the information conduct business on a timely basis. Although response time to inquiries will vary depending on amount of information needed, the fol lowing general guidelines are consid ered appropriate TYPE W ire or cable inquiry Telephone inquiry W ritten inquiry Telephone investigation Written investigation RESPONSE TIME W ithin 24 hours of re ceipt Within 24 hours of re ceipt Within 4 d a y s of re ceipt Two w orking days Six w orking days If unusual delays are expected, the inquirer should be informed. Once the legitimacy and require ments of the inquiry are established, it’s answered by providing a summary of the bank’s experience and knowl edge of the subject commensurate with the amount involved and the respon dent’s confidence in the inquirer. A full response may include: 1. Opening date of the relationship. 2. History of the subject. 3. Demand-de posit relationships. 4. Summary of the borrowing relationship, if any. 5. Fi nancial statement data. ARTICLE 4: When an account is being solicited, it’s not permissible to make an inquiry of a competitor with out frankly disclosing that the subject of the inquiry is a prospect. Reply is at the discretion of the bank of ac count. COM M ENTS: Free exchange of in formation between banks depends, to a large degree, on the confidence that the inquiring bank will not use the credit information it receives to so licit the respondent’s accounts. Provid ing credit information is a courtesy, and, in some instances, revealing infor mation could jeopardize the account relationship between the responding bank and the subject. Violations of this confidence are very serious. They not only damage the in quirer’s relationship with the respond ing bank, but also create a guarded situation that can only impede the ex change of credit information. For this reason, when solicitation is the purpose of an inquiry, this fact must be stated clearly to the bank of account, which has the option to decline information on such inquiries. If a bank is soliciting an account of a competitor and is asked by a cus tomer to obtain credit information on that account, the soliciting bank should explain the ethical considerations in volved and suggest that the inquiring customer contact the subject’s bank di rectly. All parties to credit inquiries that in volve solicitation must be aware of the basic confidence inherent in the ex change of information and act in a re sponsible manner to preserve that con fidence and trust. ARTICLE 5: A request for infor mation based on actual or contemplat ed litigation shall be clearly identified as such. Reply is at the discretion of the bank of account. COM M ENTS: When the purpose of a request for information is actual or contemplated legal action, full dis closure of this fact by the inquirer is necessary. It’s clearly unethical to dis guise the purpose of any inquiry. This could be detrimental to the parties in volved, especially when legal action is associated with an inquiry. Under those circumstances, the potential for dam ages is such that all parties must exer cise considerable judgment before con ducting an investigation or answering an inquiry of this nature. Whenever the bank of account is placed in a conflicting position of pro viding information and, at the same time, protecting its customers, amount of information, if any, will be at the discretion of the responding bank. ARTICLE 6: All credit correspon dence, including form letters, should bear the manual signature of a respon sible party. COM M ENTS: Manual signatures on all credit correspondence, both inquir ies and replies, are essential. Goodfaith responsibility for accuracy of the information contained in the corre spondence is assumed by the signer. This is the case whether or not the signer gathers the information. The ti- M ID-CONTINENT BAN KER for October, 1976 Correspond with us. * NATIONAL BANK OF NEW ORLEANS R e lia b ility in banking since 1883 M ID -CON TIN EN T BAN KER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By keeping in touch, your bank and the Whitney can successfully work together. Now, as for more than ninety years, the Whitney stands ready to go to work with correspondent banks, small and large, to achieve mutual progress. It’s time for us to get to know each other better. Correspond with us! 97 tie, if any, and name of the authorized signer also should be typed or printed on the correspondence. Doing this will help address responses correctly and identify clearly the person to contact if questions arise regarding the inquiry or reply. ARTICLE 7: Sharing credit infor mation on a mutual customer should not be more frequent than annually, unless a significant change in the rela tionship requires an earlier revision. COM M EN TS: Credit information on mutual customers normally is reviewed annually. It should not be necessary to inquire more frequently unless interim financial data, news items, agency in formation or other sources point out an actual or potential problem. Informa tion should not be requested when there’s no real need. The bank requesting the informa tion should give a summary of its ex perience first. This sharing of informa tion by both inquirer and respondent is stressed because it prevents duplica tion of effort and is consistent with the cooperative spirit inherent in exchange of credit information. On mutual re visions in particular, care should be taken regarding discussion of interest rates charged and compensating-balance requirements since revealing this data could have antitrust implications. ARTICLE 8: W hen multiple inquir ies are made simultaneously on the same subject, the inquirer should state clearly that information from the bank’s own files is sufficient. COM M ENTS: Basically, there are two situations under which simultane ous inquiries are made to banks within the same city: where it’s known that the subject has account relationships with more than one of them or where the subject’s bank(s) of account is not known (which gives rise to what’s commonly known as a “ fishing expedi tion” ) . in question and ask if it would either conduct the investigation or at least lo cate the name of the bank of account— which the inquiring bank, in turn, then can approach separately. All banks, particularly RM A member banks, are encouraged to assist one another in sit uations like this, as long as this cour tesy isn’t abused. * * Citizens Nat’!, Decatur, Hosts Correspondents D E CATU R, ILL.— “The Real Issues of ’76” was the theme of the annual correspondent bankers party sponsored by Citizens National here last month at the Country Club of Decatur. O f the more than 340 bankers attending, .185 played golf. Golf prizes were awarded at the tra ditional stag dinner. L ow gross was won by Dr. Keith Correll of Crawford County State, Robinson, and low net by Harold Hooker, director, Peoples State, Newton. Presiding over the day-long event were William Barnes III, chairman; J. L. Hunter, president; and Dale P. Arnold, senior vice president, who is responsible for the bank’s correspon dent relationships. B ill B a r n e s w e lc o m e s g u e s t s e v e n in g w it h a fe w and w e ll - c h o s e n sta rts o ff t h e jo k e s . In the first instance— more than one known bank of account— courtesy dic tates that each responding bank be told that research beyond its own files won’t be necessary. The second situation— “ fishing”— should be avoided whenever possible. The inquiring bank should make every effort to determine the subject’s bank ( s ) of account before initiating any inquiry. But if for some reason the name of the bank(s) of account can’t be de termined, the inquiring bank then has two courses of action open. It could make multiple inquiries as described above, again indicating to each bank that research beyond its own records won’t be necessary. Or, preferably, it can approach just one bank in the city 98 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H a ro ld H o o k e r ( I.), d ir ., P e o p le s S t a t e , N e w t o n , w in s th e lo w in g p r iz e v .p ., th e w ho is n e t p r iz e is D a le r e s p o n s ib le s p o n d e n t r e la t io n s h i p s . of a P. g o lf b a g . A w a r d A r n o ld , fo r th e C i t iz e n s b a n k 's sr. co rre Management Analysis (Continued from page 10) The size o f the bank and of the problem firm has a lot to do with the type and quantity of assistance bankers can provide to a faltering firm. The re lationship between the banker and company management is also impor tant. Most banks can and will provide some assistance, particularly for a closely held small- to medium-sized firm. The situation is more complex where the firm is larger and publicly held, for in that case the Securities & Exchange Commission and the exchanges are in volved. Legal considerations must be reckoned with and it is questionable whether the bank should be involved at all in the company’s operations. In addition, most banks do not carry a staff large enough to provide adequate on-site and short-term management. The bank’s sole alternative might sim ply be to call the loan when it goes into default. In many cases, a bank can benefit a great deal from calling in a con sultant to help bail out a firm facing difficulties. Before doing so, however, the consultant’s capabilities and pro fessionalism should be investigated. The professionally qualified consultant should measure up to the following qualifications : • Have the background and experi ence necessary to do the job and pro vide personal and performance refer ences when requested. • Be completely objective and un biased in his approach, taking care to do a professional job, knowing that it does not always make everyone happy. • Be tactful and diplomatic. • Command the respect of those he associates with. ° Possess outstanding judgment and be willing to be gauged by the evalua tions he makes. • Respect the confidence and trust placed in him. A consultant who measures up to these standards is in a position to help the banker in three ways: • Providing on-site evaluations of a banker’s portfolio loan which may be suspect; • Undertaking short-term interim management assignments where a turnabout in a customer’s operations is desired by the bank and the cus tomer; • Making acquisition studies of banks available for purchase and giving factual, objective and unbiased data to the potential buyer. * * M ID -CONTINENT BAN KER for October, 1 9 76 ‘When you come up with a better credit life policy, it's hard to keep it to yourself.’ Durham Life’s new Low 100. Designed especially for mobile home loans and second mortgages, the fastest growing part of the mortgage loan We call it the Low 100 because premiums are lower for the borrower, but you get 100% protection. You’re paid back the entire unpaid balance net of unearned interest and finance charges, yet you can offer your custom ers lower monthly payments. We keep the premiums low by fully covering your exposure and no more. One premium is charged regardless of age. The entire premium is paid at one time, eliminating paper work, collec tions and policy lapses. And no medical exam is required. With all this you still get the same attractive com mission plan. The Low 100. One more policy in Durham Life’s complete line of credit life. Everything you’ll ever need. Call Dan Boney. Durham Life Durham Life Insurance Company Home Office: Raleigh, N.C. 27611 P.O. Box 27807, Tel. 919/782-6110 M ID -CONTINENT BAN K ER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Not Everything Is Wrong in Washington, Kentucky Bankers Learn at Convention , Pro-Banking Legislator Small Business Advocate Speak Out I N AN ERA in which it seems that the cards in Washington, D. C., are stacked against banking, it was refresh ing to hear Kentucky’s First District Congressman Carroll Hubbard keynote the 82nd annual convention of the Ken tucky Bankers Association. Congress man Hubbard is a definite friend of banking and he took pains to make sure every one of the 850 Kentucky bankers in attendance knew it. He described his efforts in fighting “ the battle of the Financial Reform Act in the House Banking, Currency and Housing Committee,” from which he emerged with “ an honest ‘peace with honor,’ ” an allusion to the Vietnam con flict. “ Unlike our experience in Vietnam, however,’ he said, “ this peace with honor was not achieved by withdrawing from the battle. Instead, the forces of common sense prevailed upon those members of Congress who advocated a piece of legislation that could have seriously destabilized the financial in stitutions industry.” He predicted that, although the Fi nancial Reform Act is dead for the pres ent, he is not optimistic about how long By JIM FABIAN A ssociate Editor it will be before similar legislation sur faces in the next Congress. Congressman Hubbard warned bank ers that “ unless a better dialogue be tween the banking community and the banking committee is established, I fear that the problems which have surfaced in the Congress will resurface in future congresses. Much of the legislation we have been considering in Washington makes a great deal of sense in theory. In practice, however, it has the p o tential for disaster.” He said that a number of legisla tive atrocities were nearly committed against the banking community in the name of reform in the last Congress. He added that it speaks well of the commit tee that most of the ill-advised financial institution reform measures never got as far as the House floor. After describing the inequities among financial institutions proposed by the Act, he said, “ If we in the Congress mean what we say about free competi tion, then we shall have to allow all financial institutions to compete in a free market under the same rules. Other wise, we might as well call the Financial Reform Act the Financial Reshuffle Act and at least admit that our banks are being dealt the worst hands.” Congressman Hubbard said that his experience with the Financial Reform Act had taught him a lesson, one from which all could benefit. “ First,” he said, “ Congress should be better attuned to the needs and interests of the financial community. Likewise, the financial com munity must determine what it needs and communicate this to Congress. I think we have all come to realize that, just as one cannot tell a book by its title, one cannot tell a bill by its title. Good legislation is not written by academics in a practical vacuum. The people who know best what a bill means are the people who stand to gain or lose from the legislation. These are not politicians; they are men and women like yourselves. I seek your help in filling the gaps in our knowledge so that the House of Representatives can be truly representative.” Another poptilar convention speaker was Milton J. Hayes, consultant for American National, Chicago. Mr. Hayes spoke about managing bank bond ac counts. He said the bond market is strong at this time because the Fed is keeping the money supply within a conserva tive range. It has withstood criticism for its stand and has acted to not fuel in flation, thus making investors come to the bond market for liberal yields. Another reason for a good bond mar ket is the fact that bank loans have been sluggish, he said, forcing banks to invest in government bonds. He added that individuals have a new pref erence for bonds over stocks, which N ew KBA o ff ic e r s a re (fro m I.) T. A . J u e t t J r . , p r e s .. C i t iz e n s S t a t e , W i c k li f f e — p r e s .- e le c t ; O . T . " T w ig " — p r e s .; D o r t o n , p r e s .. C i t iz e n s and H om er P r o f it t , N a t 'l, p r e s ., P a in t s v ille N a t 'l Bank, L a n ca ste r— tre a s. 100 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ID -CON TIN EN T BAN KER for October, 19 76 W e made our mark in leasing Since 1974, Citizens Fidelity Leasing Corpora tion has negotiated over $10 million worth of equipment financing either directly to or in participation with more than 100 banks. Part of the reason for this success is the commit ment of Citizens Fidelity towards serving the capital needs of its correspondents and their customers. Just as important, Mike Maxwell, president, and his staff are leasing profes sionals, experts at showing the banks they work with how they and their customers can benefit from the financial and other advan tages leasing provides. Call them at (502) 581-2686. They can help you make your mark, too. § Citizens I Fidelity Leasing Corporation M ID-CONTINENT BANKER for October, 1 9 76 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Citizens Plaza— Louisville, Kentucky 40202 Come grow with us®. . . under the Sign of the Service Tree 101 Am ong v i lle n e t t, sp e a k e rs la s t m o n th c h ., A m e r ic a n tre a s. and F D IC ; at KBA w e re c o n v e n t io n (fro m M ilt o n B a r n e t t d is c u s s e d L o u is E. Bank, B a r c o n s u lta n t H . D . S u lle n g e r , Farm e rs 100% in R o b e rt H ayes, N a t 'l, C h i c a g o ; p r e s ., I.) M a rio n . to KBA M r. d e p o s it in s u r a n c e . has helped to lower bank interest rates. He also said that corporations have cut down their expansion plans and thus are making fewer bond offerings, which has helped bolster the bond mar ket. He said that the economy will con tinue its upward trend for the next 18 months if the business climate continues to be favorable. He added that a new administration in Washington could spell the end of the recovery, should it be anti-business. If President Ford is reelected, Mr. Hayes said, continued fiscal restraints are seen. If the Fed’s policy stays the same, he added, interest rates should be stable or even lower. On the other hand, he said, if Gov ernor Carter is elected, Congress will pressure him to spend to lower the un employment figure, causing higher in terest rates. In addition, he said, Fed Chairman Arthur Burns might resign, ruining the stability factor. In answer to the question of how bankers should handle their bond ac counts, Mr. Hayes advised that they be aware of any possible long-term down trends in interest rates. Any interrup tions will be temporary, he said. He ad vised bankers to acquire 8% 10-year maturity bonds if they are available, and to confine their accounts to direct Treasury obligations, since agency bonds are not the best risks. He said bankers could do better by investing in the two- and five-year range because yields are more attractive in this area. He advised against using Treasury bills, however. The municipal bond area is a tough one, he said. Great caution and careful selection are advised. The situation could improve, he said, if municipals manage to ride on the coattails of other bonds. He said the crises of the cities are deepening and that the fiscal soundness of municipalities in general pose a seri 102 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis KBA P re s. Leon Page ( r .) , p r e s ., F r a n k li n c h a t s w it h c o n v e n t io n s p e a k e r W i ll ia m fo rd , M r. exec, d ir ., G la s s f o r d BANKPAC, sp o ke on th e W a s h in g t o n , need to Bank, A . G la s s D. C. p r o v id e ABA P r e s .- E le c t ( n o w (I.) d i s c u s s e s zen s F id e l it y , a p p o in t m e n t w it h Joe P r e s .) W . L id d o n M c P e t e r s L. H a m il t o n , e .v . p ., L o u is v i ll e , as n a t io n a l M r. H a m il t o n ' s c o m m a n d in g C it i re ce n t g e n e ra l fin a n c ia l s u p p o rt fo r c a n d id a t e s fo r f e d e r a l o f o f th e K e n t u c k y C o lo n e ls , w h ic h w a s a n n o u n c e d fic e a t c o n v e n t io n w ho a r e frie n d s of b a n k in g . ous situation to bondholders. He ad vised thorough credit analyses and said that bankers should not take the word of bond salesmen. “ You can’t justify a loan in a distant city,” he said, “ so don’t justify munici pal bonds in a distant city either!” Anthony S. Stasio, chief counsel for advocacy, Small Business Administra tion, Washington, D. C., presented a rousing talk on the merits of small busi ness people. He called on bankers and other small businessmen to get their act together to protest against restrictive consumer legislation that is pouring out of the federal legislature. He said conforming to federal regulations is non-productive to the businessman. Legislation such as OSHA is enacted due to a lack of awareness on the part of legislators to the problems of small business, he said. He advised building the small busi ness community up by making sure that every state has a small-business advo cate and that every school child is ex posed to support for free enterprise. He called on the KBA to support a small business advocate in Frankfort. Clyde W . Jackson, president, Kentuekiana Automated Clearing House (K A C H A ), and vice president, market ing, Bank of Louisville, reported on the status of KACHA. He said the ACH is not a competitive tool, thus it is not marketed to the general public by mem ber banks. He said the ACH has grown from the five instigating Louisville banks to a membership of 180. KACHA has been onstream since April and insurance firms and utilities are coming on board. He also said bi lateral exchanges with other ACHs are being explored and said that savings will be realized as volume increases. KACHA can reduce the paper flow, save money, prepare for future E FT services and enable a bank to market new services, he said. ABA President-Elect W . Liddon M c b re a k fa st. Peters warned Kentucky bankers that the unregulated expansion of credit un ions jeopardizes credit union members and the national economy. Mr. McPeters, who is president, Se curity Bank, Corinth, Miss., said that when credit unions depart from their traditional role and offer bank-like ser vices “without having to adhere to re sponsibilities and safeguards required of banks, then I becom e alarmed. This is not only unfair competition; it also jeop ardizes the financial well being of the credit union members and undermines the nation’s econom y.” Between 1950 and 1971, the number of credit unions doubled to 22,812 and their total assets increased 38-fold, he said. They currently provide 15.7% of total U. S. consumer installment credit. He said that the National Credit Un ion Administration (N C U A ) recently authorized more than 296 federal credit unions to offer sharedraft payment in struments which look like, and are used as, checks. Share-draft accounts already contain more than $60 million, he said. He added that the ABA believes this venture by credit unions into sharedraft accounts is illegal and the associa tion has brought suit against NCUA, asking the court to order share-draft ac count authorizations withdrawn and to prohibit future authorization of such accounts. He said the solution to the problem is for those credit unions desiring to assume bank-like status and powers also to accept the various requirements and restrictions imposed upon banks. KBA resolutions passed during the convention concerned overregulation of banks; the newly organized K B A /PAC , designed to provide financial assistance to candidates for state office who are friendly to banking; and a call to the state governor to include the topic of Workmen’s Compensation rate increases in his call for the 1976 special legisla- M ID-CONTINENT BANKER for October, 1 9 76 is fo r B a n k in g . That s your business, and we never forget it. I hat s why all the paperwork in our program is designed for quick and easy completion by loan officers, not underwriters. And we make sure you always have all the supplies you need. Free. B is also for Book. Ours is a thorough Reference Manual that details the entire Integon program of life and health coverage, contract limits, maximum terms, procedures for claims, refunds and reports, and samples of all charts, forms and certificates. Plus a bonus section to make selling easier for you. B is for Bread, too. And we know which side ours is buttered on. S o we never sign you up and then leave you hanging. Instead, the Integon representative works with you to get everything set up and running smoothly. Then he makes regular visits to keep things that way. And if you need him in-between times, just call. And he’ll make a beeline to your door. W hen a new loan officer joins your firm, our representative provides a complete training pres entation that helps your staff sell better. S o your bank can earn more. And finally, B is for Bottom Line. And we do everything possible to make sure yours is favorable. There s a lot more, and if you re interested, you should call J. Wayne Williard, Jr., collect at 919/725-7261. A s Vice-President of Credit Insurance, he’ll be happy to arrange an appointment at your convenience, without obligation. Or, if you don’t feel like talking, write him at Integon Life Insur ance Corporation, P O . B ox 3199, Winston-Salem, N. C. 27102. Either way, once you get all the facts, we think you 11 agree that Integon s Credit Insur ance program is not only pleasant and profitable. J . W a y n e W illiard , J r ., V ic e -P r e s id e n t But also easy as you-know-what. ( 4 M ID -CON TIN EN T BAN K ER for October, 1 9 7 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ) INTEGON 103 tive session. O. T. “T w ig’’ Dorton, president, Citi zens National, Paintsville, moved up to the president’s spot during the conven tion, succeeding Leon Page, president, Franklin Bank. Elected president-elect was T. A. Juett Jr., president, Citizens State, Wickliffe. The new KBA trea surer is Homer Profitt, president, Na tional Bank, Lancaster. Elected to the KBA board was I. B. Utley, president, Farmers Bank, Hen derson. Reelected to the board for full terms were J. David Grissom, chair man and CEO, Citizens Fidelity, Louis ville, and Joe D. Stacy, president, Bank of the Mountains, West Liberty. Both men had been serving partial terms. • Eugene H. Adams has announced that he will retire as chairman of First National and of its parent HC, First National Bancorp., Inc., both of Den ver, on December 1. Succeeding him in those posts will be Theodore D. Brown, who will remain as bank presi dent. Mr. Adams, a former ABA presi dent, will serve as vice chairman of the bank and HC until his retirement in January, 1977. Bruce D. Alexander re mains as president of the HC and will becom e HC executive committee chair man. Nat l Assn, of Bank Directors Forms With J. Webb as Prese ts Headquartered in Washington W A S H I N G T O N , D. C.— James W ebb, chairman, Nashville City Bank, has been elected president of the newly formed Na tional A ssociation of Bank Directors (N A B D ). The association, which has head quarters at 1019 19th Street, N. W ., here, is designed to serve the needs of directors through out the country. Directors and advisory board members of all banks joining the organization automatically becom e mem bers. Besides Mr. W ebb, the following NABD officers have been announced: chairman— Jerome D. Twomey, presi dent, Sterling National, New York City; vice president— Frank B. Hower Jr., chairman, Liberty National, Louisville; vice president— Robert E. Porter, presi dent, Planters Bank, Forrest City, Ark.; secretary— J. Clifford Ourso Jr., execu tive vice president, American Bank, Bat F R E E ...6 issues of Doane’s Farm ing for P rofit, Over 800 banks send this leading newsletter to farm customers each month. It’s filled with facts to help farmers boost income. They appreciate the information and the bank that sends it. There’s no better way to show you’re the ag bank in your area. Your attrac tive bank heading appears on each issue — and you get exclusive use in your trade area. EVALUATE FARMING FOR PROFIT. Mail coupon or your name and letterhead for six issues . . . Free. YO U R N A M E _____________________________________ T I T L E __________ BANK N A M E __________________________________________________________ A D D R E S S ______________________________________________________________ C I T Y _______________________________________ F A R M IN G FOR P R O FIT... ...a vital link between you and your farm community. 104 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S T A T E ___________ ZIP S3 DOANE Duane Agricultural Service, Inc. on Rouge; treasurer— O. Jay Tomson, president, Citizens National, Charles City, la.; and general counsel— Martin Sterenbuch, attorney, Washington, D. C. Named to the association’s executive committee were these Mid-Continentarea bankers: Pat Moore, president, American State, Thomas, Okla., and John H. Neill Jr., president, Union Bank, Montgomery, Ala. According to an NABD spokesman, several services will be provided by the organization to bank directors: • Educate them in the duties and responsibilities of their position. • Increase their understanding of how a director may better serve his bank and represent the institution in the community. • Inform them of critical economic and political issues. • Facilitate an interchange of in formation which directly concerns all bank directors. • Provide a certification program for directors. • Represent directors in legislative, legal and supervisory agency matters. According to Mr. W ebb, the associa tion will begin operations nationwide immediately and make memberships available to all banks. A first annual Bank Directors Conference has been slated for April in New Orleans and planned for members are seminars, regional workshops, Washington, D. C., study trips and foreign seminars. Beginning in 1977, the School for Bank Directors will be conducted at the University of Oklahoma, Norman, and the Bank Directors Information Letter will be sent periodically to all members to keep them informed on items of cur rent interest. “ Chief executives of banks as well as other bank directors long have felt the need for an organization to represent them,” an association spokesman said. “ With increased scrutiny being given to all organizations by governmental and consumer groups— particularly to the actions and responsibilities of bank di rectors, an association devoted to the needs and interests of bank directors is needed nationwide. Directors need to be informed constantly of their rights as well as their responsibilities. Also, they must be refreshed continually on how they can help their banks serve the public better. They must be in formed on the best methods of support ing legislation that will tend to make banks prosper and thus be more useful to their customers. “ These are things the National As sociation of Bank Directors will do for its members.” 8900 Manchester Road St. Louis, Missouri 63144 (314) 968-1000 iMID-CONTINENT BANKER for October, 1976 Building Better Customer Relations / i WB II I reaso n to u se Modern Teller Trai - ' 7?. *. T . fil I i . * ! •• ■■ I * *aia «asga 1 lib ^ )•+ "Q l V- Here are 11 m ore 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Im p ro v in g T e lle r P r o f e s s io n a lis m P ro p e r H a n d lin g of M o n ey R e d u c in g C h e c k - C a s h in g R is k s A c c e p t in g C h e c k in g D e p o s it s S a v in g s A c c o u n t P r o c e d u r e s Is s u in g O th e r N e g o tia b le In s t r u m e n t s H a n d lin g M is c e lla n e o u s T r a n s a c t io n s L e a r n in g a b o u t D e b its a n d C r e d it s R e d u c in g B a la n c in g - O u t E r r o r s U n d e r s ta n d in g O th e r B a n k O p e r a t io n s S e c u r it y a n d F ra u d D o ’s a n d D o n ’t s Modern Teller Training rapidly develops technical skills, self-confidence, and improved customer relations. Designed by a team of bankers, BAI staff professionals, and audiovisual training experts, the program is self-instructional and self-pacing. Over 500 illustrations in 12 workbooks coordinate with 7 hours of sound cassettes for the most comprehensive presentation ever developed to train tellers in your own bank. O R D E R T H I S P R O G R A M N OW : U S E D IN M O R E T H A N 4 0 0 B A N K S N A T I O N W I D E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis o BAN K ADMINISTRATION IN STITUTE 303 S. N O R TH W E ST HIGHWAY, PARK RIDG E, IL 60068 ADDITIONAL WORKBOOK KITS BASIC PROGRAM A tta c h e c a se w ith 12 c a s s e tte s , T e lle r Kit w ith 12 w o rk b o o k s , A d m in is tra to r's G u id e , O n -th e -Jo b C h e c k lis t: $350 ($450 to n o n -m e m b e rs) O n e set n eeded fo r e a ch s tu d e n t: $27 e a c h ($35 to n o n -m e m b e rs) PANASONIC RQ309 P L A Y E R /R E C O R D E R $39.95 □ □ □ 30-day preview check enclosed please bill us 10% d isc o u n t 10-24 20% d isc o u n t 25 + (ite m s ca n be m ixe d ) T IT L E □ C IT Y /S T A T E MODERN T E L L E R TR A IN IN G ” from BAI Your Own In-Bank School for Tellers BAI MEM BER ___ZIP_______ Cropland Sales to Europeans, Ag Reports Highlight 20th Market Day in St. Joe By JIM FABIAN A ssociate Editor F OR TW EN TY years, the people at First Stock Yards and First Nation al, St. Joseph, Mo., have been provid ing informative Market Day programs for client banks. And last month’s Mar ket Day was no exception. Beginning with a tour of the Blueside Co., cow-hide processor, and end ing with the traditional steak dinner, bankers gathered a wealth of informa tion on American ag property in Eu rope. Principal speaker at the afternoon meeting at the St. Joe Country Club was Brigadier General Harold L. Oppenheimer, chairman, Oppenheimer In dustries, Inc., Kansas City. His topic was “ An Update on the Overseas Agri cultural Investment Inflow.’’ General Oppenheimer said a total of $30 million worth of ranchland in the U. S. has been sold to European in terests in the last 14 months. He said there is intense interest in the acquisi tion of American ag property in Eur ope. This stems from the emotional appeal land has in Europe, where control of an area is often in the hands of the largest landowners. Due to this appeal, he said, the price of land in Europe bears no relationship to what can be earned from it, as is the case here. Europeans are so jealous of their landholdings that they often do not permit foreigners to gain title to land. The U. S., he said, is one of the few nations in the world that has no federal restric tions on acquisition of land by foreign ers. But the story is different at the state level, he said. Many state statutes for- P h il Y a rd s M il le r p ro g ram fr o m ( c .) , Bank, w it h St. v .p .- a g . Joe, Thom as rep . ch a ts D. Runyan N a t i o n a l O r d e r B u y in g v .p ., H o m e B a n k , S a v a n n a h . 106 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis at F ir s t d u r in g ( I.) , C o ., a n d S to ck b re a k in p a n e l is t B ill H o lt , bid ownership of land by foreigners. Most of these statutes are old and were enacted to forestall the possibility that America would adopt the landholding system prevalent in Europe, where a few individuals end up with the lion’s share of the land while the majority of citizens are land-poor. He said that Missouri and Kansas do not have restrictions on foreign acqui sition of land, but Iowa is quite hostile to foreign purchases. West Germans are especially fond of U. S. ranchland and have been buy ing it as fast as possible, he said. Highlight of the afternoon session was the traditional panel discussion on the state of the agricultural economy. Moderator this year was youthful Jim Reynolds, director, St. Joseph Market Foundation. Russell I. Hallberg, representing Seitz Packing Co., said cattle slaughter Jo h n E. K a r n ( I.) , e .v . p .. F ir s t S t o c k Y a r d s B a n k , S t. J o e , c h a t s w it h and h is b ro th e r, W i ll ia m John P. J. Kennedy, Kennedy, v .p ., e .v . p ., b o th w it h F ir s t N a t ' l, F r a n k f o r d , K a n . is up and cattle are heavier than nor mal. This condition has existed for three years and has resulted in much poorgrade beef. He called on bankers to advise farmers to cut down on the weight of their cattle. He also said things should improve by m id-1977. Frederick E. Hannah of Bartlett & Co. Grain told of the damage done to the grain crop by the drought. He said he expects to see the lowest grain carry over in the last five years in 1977. He said the price of wheat is competitive as feed grain, which will temper the use of corn as feed. The situation is similar to that of the last few years and it appears that an adequate supply of corn will be harvested. He said corn will probably trade down to the $2.50 to $2.75 level this fall. However, he said, the unknown needs of foreign na tions make the grain picture cloudy. He advised bankers not to expect corn to rise to the $3.50 or $4 level until next year and then only if demand rises due to another drought. Show n w it h p ro g ram . fe a tu re d B r ig . G en. ( r .) , c h ., a re H. H . " B e a n ie " sp e a k e r H a r o ld O p p e n h e im e r at L. In d u s t rie s , B ro a d h e a d S t o c k Y a r d s B a n k , St. J o e , a n d M a rk e t D ay O p p e n h e im e r K ansas J r ., p r e s ., C ity , F ir s t L e e R. S c h u s t e r , e .v . p ., O p p e n h e im e r I n d u s t r i e s . He predicted that the soybean crop would be one million bushels lower that the USD A figure, yet the U. S. is expected to be the only nation with soy beans to sell to other nations. Soybeans, he said, are expected to act indepen dently of the rest of the grain market. Glenn A. Long, St. Joe Stock Yards Co., reported on the remodeling job going on at the yards. Ivan R. Rowelett, Colt-Wall-Bethel Commission Co., said that slow hog sales are 9% above last year, but 11% below June of 1974. The total number of hogs marketed this year is the lowest since 1965. He said the number of feeding floors is up and there are more floors than people to raise them. If the price of corn stays high, he said, pigs will be marketed lighter in the future; if corn prices drop, marketed pigs will be heavier. Thomas D. Runyan, National Order Buying Co., said there are more feeder cattle sellers than buyers. This might change after the next 60 days. Calves will be high because they’re in short supply, but there are too many year lings because cows have been sold while calves have been retained. He predicted that this problem will not exist a year from now. He also predicted that the cattle feeder should make a profit next year. Harold W . Smith, Missouri-St. Joe Live Stock Co., called for a sound stocker and feeder market. He said that the St. Joe area is a marginal one re garding crops so more roughage and pasture production should be encour aged for use as feed. Such a situation would benefit the feeder market and bolster feeder farmers, he said. He pre dicted that a lot of cows will be mar keted this year due to lack of feed and water. He called on bankers to look at the larger picture and consider what the farmer is going through. The banker should try to keep the farmer in busi ness during these rough times. “The last thing we need today is wholesale bank ruptcies or forced sales,” he said. • * MID-CONTINENT BANKER for October, 1976 ^ J Q I! wi: Take a trip - s *> with me through ' the ¡Nature of America » f without leaving your desk. All you do is page through the brilliant full-color check brochure from Kansas Bank Note. Note how your customer can actually see what every check looks like in full detail. It is a beautiful brochure. They can pick from the exclusive Peace Series, the Seasons, the Life Series, the Earth Senes; sixteen irresistable scenic views of America. But that’s not all. There are seven individualized standard safety paper choices, end stub checks, desk book checks and business checks in standard or custom design.. Our wide variety of colorful covers are also shown in full detail. It is a complete marketing and advert sing strategy that enhances your oank s image and reduces consumer selection time. Put new sparkle in your customer service and image. Order your brochure today. ÎLIP AND MAIL TODAY Kansas Bank Note Company FIFTH & JEFFERSON STREETS • FREDONIA. KANSAS 66736 • 316-378-2146 For your total bank printing needs Please send me younulicofor Nature of America check brochure / T *q ■ime. 8 AN,< NAME . Wt AD D RESS. C TV „ . STATE . : MID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hik ng outfit içovidvd l>y CuHun Sonin. Tulsa Oklahoma 107 NEWS From the Mid-Continent Area Alabama from Bank Administration Institute’s School of Bank Administration at the University of Wisconsin, Madison. ■ JOSEPH L. COLEM AN has been appointed a sales engineer with LeFebure Corp., which is headquartered in Cedar Rapids, la. Mr. Coleman will operate out of LeFebure’s New Orleans Branch and will serve an area including southern Alabama. ■ FIRST NATION AL, Birmingham, has announced the election of Edmund A. Terrell as vice president and loan officer and W . Michael Graves as vice president and trust officer. ■ COMMERCIAL GUARANTY BANK, Mobile, has opened a new trust department with its philosophy based on in-depth financial planning. Head ing that department is William V. Gar in, vice president, who recently joined the bank and has an extensive trust background. ■ NANCY H. BAILEY has been ap pointed assistant vice president and business development officer at Union National, Little Rock. She previously served the bank from 1963-1969. Illin o is M A R IS CO LEM A N Arkansas ■ EUGENE L. “ PETE” MARIS, vice president, Worthen Bank, Little Rock, has been named to head the bank’s new agri-credit department. The new department will provide specialized fi nancial assistance to the state’s agri cultural industry and will work closely with Worthen’s correspondent depart ment. ■ N A TIO N AL BOULEVARD BANK, Chicago, has advanced Edward K. Aidworth and John C. Erwin to senior vice presidents. Mr. Aldworth will have ad ditional duties in commercial banking, while Mr. Erwin will head the com mercial department. Succeeding Mr. Erwin as real estate department head is Gerald W . Daly, who has been named vice president. ■ FRED W . W IL C O X , cashier, Se curity Bank, Paragould, has graduated E R W IN A LD W O R TH ■ CONTINENTAL ILLINOIS CORP., Chicago, has completed ac quisition of outstanding stock of Con tinental Illinois Venture Corp., a smallbusiness investment company (S B IC ). The unit will operate as a wholly owned subsidiary of the HC. Continu ing as president and CEO of the sub sidiary is John L. Hines. The acquisi- Don Lamon is waiting on your call. He — and Union Bank's Correspondent Banking Department — can help you make it happen. C A L L DON, T O L L FR EE A T 800-392-5821 UNION B8NK & TRUST CO. MEMBER F.D.I.C. 60 COMMERCE ST., MONTGOMERY, A L 36104 Alabama’s Largest Independent Bank. 108 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H ARROW SMITH C O M P A N Y U n io n N a t io n a l B a n k B ld g . 5 01 /37 4-75 55 L it t le R o c k , A r k a n s a s J . E . W O M E L D O R F F , E x e c u t iv e V i c e P r e s i d e n t MID-CONTINENT BANKER for October, 1976 O ur idea of correspondent banking: THE COMMITTEE OF ONE. Our people are real, live, experienced correspondent professionals, with years o f correspondent banking behind them. They aren’t management trainees or just goodwill ambassadors, so they can okay loans or services—like our new EFTS services—on the spot. Without going through unwieldy, time-wasting committees. WE CALL YOU BYNAME NOT BY PHONE. You see, National Boulevard believes in person-to-person, eye-to-eye contact with the management o f every correspondent bank. Right there at the correspondent bank. So things get done faster, friendlier. THE FUTURE STARTS TODAY. And now our individualized services will be better than ever, because National Boulevard is ready with EFTS. Electronic Funds Transfer Systems. EFTS means efficient response to your service requests. Immediate response. For instance, our Central Information File is already on line, sending special data to correspondents at a moment’s notice. Soon, checking and savings accounts will be on line. Then, step-by-step through the year, every correspondent service will be fully integrated into the system for more convenience, for better banking. The bank for the New Downtown NATIONAL BOULEVARD BANK OF CHICAGO 400-410 North Michigan Ave., Chicago, 111. 60611 MID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone (312) 467-4100 Member FDIC 109 tion was allowed by a recent change in the federal Small Business Investment Act enabling full ownership of an SBIC by a bank HC. Continental Illinois Ven ture was formed in 1970. can Fletcher National, Indianapolis. Named managers were Michael T. Price, Children’s Museum, and Cheryl D. Shelton, Riley Center. * FRANK E. BAUDER has joined Main Bank, Chicago, as executive com mittee chairman. He will head the bank’s commercial loan department and business development operations. Prior to joining Main Bank, Mr. Bauder was chairman, Central National Chicago Corp., and previously had been vice president, commercial lending division, Continental Illinois National, Chicago, for 17 years. K an sas T O P : M a ll ■ CITIZENS NATION AL, Decatur, has announced it will expand and re model its building. Familiar and tra ditional aspects of the bank’s lobby will be retained in a contemporary setting featuring a two-story planted atrium with a fountain and pools. The interior will be reorganized to provide better service to customers and an area for merly leased by a drug store will be occupied by the commercial and install ment loan departments. There also will be a new customer service area and the m o d e le d v ie w o f p la n n e d b u ild in g s h o w s , a t I., h o w sto re w il l p o sed o ld be a t r iu m b u ild i n g of and re N a t 'l, D e ca tu r, s it e f o r m e r ly le a s e d b y d ru g added lo b b y but expanded C i t iz e n s to bank. r e t a in s adds BO TTO M : m any P ro fe a tu re s o p e n -sp a ce of d e s ig n , p la n t s . tellers line will be moved. The main entrance will be moved, the safety de posit vault will be enlarged and an after-hours banking office will be ac cessible from the mall. Design, space planning and construction management for the project, which is scheduled for completion in spring, 1978, is Bunce Corp., St. Louis. Hoesch Is CEO of N ew Bank I n d ia n a C H I C A G O — Vernon S. “Tex” Hoesch has been named CEO of the newly chartered First Security Bank, which will be located at 196 East Pearson in Water Tower Place. Mr. Hoesch is founder and the former chairman and CEO of First Ogden Corp., Naperville. First Security Bank has been capitalized at $3 million, of which $1.2 million is in capital stock, $1.2 million in surplus and with a reserve of $600,000. The bank will have 240,000 shares of stock outstanding with a par value of $5 per share. In addition to Mr. Hoesch, First Security Bank’s other officers will include James Polivka as chairman. He is president, Willoway Enter prises, Inc., Naperville. John W . Baschen has been named First Se curity Bank’s vice chairman. A November 15 opening has been scheduled for the new bank. ■ CHARLES Q. CH AN DLER IV has becom e the fourth generation of his family to be associated with First Na tional, Wichita. He holds a degree in business administration from Kansas State University, Manhattan, and a Masters of Management degree in fi nance from Northwestern University, Evanston, 111. ■ IR W IN UNION BANK, Columbus, has named Michael F. Ryan vice presi dent and trust investment officer; James R. Barker, systems officer, trust depart ment; and Thomas Washburn, account ing officer, finance and control division. ■ ERNESTINE M. CARM ICH AEL has been elected chairman of FBT Bancorp., Inc., parent HC for First Bank, both of South Bend. She suc ceeds her husband, O. C. Carmichael Jr., who died August 3. Mrs. Car michael also has been named bank vice chairman. Joseph D. Barnett, HC vice chairman, has assumed additional re sponsibilities as executive committee chairman of the bank and the HC. CH A N D LER S C H M IT T ■ THOM AS L. SCH M ITT has been appointed a sales engineer with LeFebure Corp., which is headquartered in Cedar Rapids, la. Mr. Schmitt will operate out of the firm’s Kansas City Branch and will concentrate on the eastern Kansas market. ■ M ICH AEL G. GLASS, formerly president, Wichita State, has joined Bank Administration Institute as vice president in charge of community bank relations. The BAI is headquartered in Park Ridge, 111. Succeeding Mr. Glass ■ M ERRILL E. M ATLOCK has been named assistant vice president at the 16th Street Banking Center of Ameri- G LA SS COMME RCI AL N AT I ON AL B A N K 6th & Minnesota Ave. 913 3 7 1 -0 0 3 5 Kansas City, Kansas 66101 I P R O F E S S IO N A L C O R R E S P O N D E N T B A N K IN G S E R V IC E I I0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MID-CONTINENT BANKER for October, 1976 Must Reading for Every Director and Officer! T h e s e T h r e e B o a r d - R e la t e d B o o k s (In c lu d in g R e v is e d E d itio n o f C o n flic ts o f In terest) Conflicts of Interest Conflict Responsibilities of Bank Directors Composition and Com pensation of Bank Boards (1) CONFLICTS OF INTEREST FO R DIRECTORS AN D OFFICERS OF FINANCIAL INSTITUTIONS $6.25 . . . The new, revised edition includes everything directors and officers should know about the topic: Presents the problem of “ conflicts,” gives examiners’ views of directors’ business relationships with the bank, examines ethical pitfalls involving conflicts, conflicts in trust de partments, details positive actions for reducing potential for conflicts. Other important data are the Comptroller’s ruling on statements of business interest of directors and principal officers of national banks and sample conflict of interest policies in use today that can be adapted by your board. N ew material includes FD IC regulation on insider transactions. Q U A N T IT Y PR IC ES 2 -5 $ 5 .5 0 e a . 1 1 -2 5 $ 5 .0 0 e a . 6 -1 0 $ 5 .2 5 e a . o ver 25 $ 4 .7 5 e a . (2) RESPONSIBILITIES OF BANK DIRECTORS $4.95 . . . Written by Raymond Van Houtte, president & CEO of Tompkins County (New York) Trust Co., this book is “ right” for to day’s problems. Due to the economic influence banks have on their commu nities, the rapid growth of holding companies and the ever-growing “ con sumer” movement, directors must know what is expected of them and the bank they serve in terms of responsibilities to depositors, shareholders and the pub lic. Responsibilities examines recent court decisions, investment return, con tinuity of management, long-range planning, effects of structural changes — HCs, branching, mergers— on com petition, and more. Q U A N T IT Y PR ICES 2 -5 $ 4 .5 0 e a . 1 1 -2 5 $ 4 .2 0 e a . 6 -1 0 $ 4 .3 5 e a . over 25 $ 4 .1 0 e a . (3) COM POSITION AND COM PEN SATION OF BANK BOARDS $4.25 . . . A statistical analysis of bank boards based on comprehensive surveys by the Q U A N T IT Y PR ICES 2 -5 $ 3 .8 5 e a . 1 1 -2 5 $ 3 .3 5 e a . 6 -1 0 $ 3 .6 0 e a . over 25 $ 3 .1 0 e a . THE BANK BOARD LETTER 408 Olive St., St. Louis, Mo. 63102 Send These Books: ........................... copies, Conflicts of Interest $ ........................... copies, Responsibilities of Bank Directors $ ........................... copies, Composition & Compensation $ Total enclosed $ Name ................................................................. Title .......... Bank ......................................................................................... Street ....................................................................................... City, State, Zip ......................................................................... (P lea se s e n d c h e c k w ith o rd er. In M isso u r i, a d d MID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis author, Dr. Lewis E. Davids, editor of The BANK BOARD Letter. This book will give the reader an insight into the variety o f occupations represented on bank boards; the number of inside and outside directors; frequencies of meet ings; salaries paid. Also included are many tables, showing retirement ages for directors, per-meeting and annual fees, highest paid directors, etc. D e signed to help you make comparisons and put your board structure and fees in proper perspective. 414% t a x .) III YBOK Leadership Announced The n e w ly cho sen O f f ic e r s of d u r in g th e S e p te m b e r v .p ., M o u n tfo rd , v .p ., fro m S m it h Joe F ir s t Don B r e n in g , N a t ' l, S m it h and S e c u r it y fro m & c a s h ., & R o b e rt N a t 'l, I. a re Ray C i t iz e n s and CEO, N. K ansas T e rry N ot O d le , sh o w n Hom e S ta te , M c D o w e l l, C it y — b o th ■ W ILSON & M UIR BANK & TRUST CO. is the new name of Wilson & Muir, Inc., Bardstown. In addition, capital of the bank has been increased from $800,000 to $1 million through a onefor-four stock dividend. S ta te , p r e s .; D a r r y l L u e d k e , a .c ., S a lin a — p re s. p re s. W i n o n a — d ir .; N a t ' l, A t w o o d — d ir .; v .p ., C ro sse , S ta te , M ax N a t ' l, T o p e k a — p r e s .- e le c t ; e .v . p , Bank, B a tso n , S ta te , S ta n d in g M il t o n v a l e — o u t g o in g M a n h a tta n Roger F o u rth F ir s t Sta te in I.) Bank ■ TERRY W ELBY TYLER has joined Citizens Fidelity Bank, Louisville, as investment marketing officer in the fi nancial planning department. He for merly was with First National, M em phis, and will solicit new business in the employee benefits area, personal trust and agency accounts. In addition, the bank has named two new directors: Richard Van Horne, president and CEO, Anaconda Co., aluminum di vision, and Warner L. Jones Jr., owner of Hermitage Farm. p h o to S t o u t , v .p ., M a k a lo u s , v .p ., B r a d le y , g ro u p C o u n ty W ic h ita — tr e a s . D a le Young a M a n h a t t a n — d ir .; Fa rm e rs v .p ., C e n t e r — s e c .; a n d th e fo r c o n v e n t io n (S e a te d , S ta te , L u ll, of g a th e r YBOK 11: K ansas M u rra y le a d e r s K ansas Kentucky co rr. a re Lao fF., d ir e c t o r s . ■ FRANK D. H ACK ATH O RN has been named executive vice president of First National, Georgetown, succeed ing Robert Braden, who has resigned. Mr. Hackathorn formerly was execu tive vice president, corporate secretary and director of Bank Management As sociates, Inc., Lexington. as Wichita State president is M. D. Michaelis, who formerly was executive vice president, United American State, Wichita. In his newly created post, Mr. Glass will have responsibility for con tinuing evaluation of BAI membership in the community bank sector. He en tered banking in 1963 at Southwest National, Wichita, and is a past chair man of the KBA banking education commission and a past president of the Young Bank Officers of Kansas. Banker Cited in Bond Drive W. L o u is v i ll e , Jack b ased 71, o ff ic e r sta te Bond on th e in p a rt ( r .) , a he A m e r ic a " w as p la y e d p r e s .. p e w te r d ir ., D iv i s io n . A r c h ib a ld S p ir it o f ' 7 6 , " B la n c h a r d , fo rm e r P h e lp s r e c e iv e s M e t r ie , S a v in g s G. U. The S. a w ard e d s a v in g s N a t 'l, fro m T re a su ry sta tu e tte , W illa r d 's as L ib e r t y sta tu ette ch. o f bond D e p t .'s w h ic h p a in t in g , is "The t o M r . P h e lp s f o r th e "Take c a m p a ig n S to ck in th e g r e a t e r L o u is v i ll e a r e a . of C o m m e r c ia l N a t ' l, K a n sas C ity , s le e p d ie d R e t ir in g f r o m o n ly in la s t 11. th e b a n k s p r in g , B la n c h a r d Louisiana h is S e p te m b e r M r. had been w it h C o m m e r c ia l N a t 'l s in c e 1947. He headed th e c o rre s p o n d e n t b a n k d ep a rtm e n t u n t il 1953, w h e n h e b e c a m e e .v . p . He a d v a n ce d c h a ir m a n , He had M r. B la n c h a r d s o c ia tio n , to p r e s , in th e se rv e d in p o st as w as he 1961 h e ld v .c h . p r e s ., 1 97 3-74 . B l a n c h a r d , is v . p . , s in c e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis son , 1 9 7 0 , to he la s t K an sas H is F ir s t N a t ' l, I 12 a n d , in w hen r e t ir e d . Feb ru a ry . B a n k e rs A s R o b e rt H. C h ic a g o . ■ THOM AS G. BARKSDALE, president and CEO, Merchants National, Vicksburg, has assumed additional re sponsibilities as chairman. M. E. Ward, the former chairman, continues as di rector and executive committee mem ber. Mr. Barksdale has held the post of president since 1973. ■ JUNE G. M cM U LLAN has been promoted to senior vice president at Bank of Lucedale and R. C. Cook, own er of Cook Oil Co., has been named a director. Mrs. McMullan has been with the bank since 1956 and oversees gen eral banking operations, loans and ad vertising-public relations. ■ BILL DALY has been named vice president and manager of the Southhaven Branch of Coahoma Bank, Clarksdale. ■ CARLETON FREEM AN, vice chair man, Peoples Bank of Mississippi, Un ion, has assumed additional responsi bilities as executive committee chair man. In addition, Austin James has been appointed vice chairman and CEO. Jo sep h H e n ry M is s is s ip p i ■ CHARLES H. PETKOVSEK JR. has been elected president, Britton & Koontz First National, Natchez, while Clarence N. Young has been named executive committee chairman. ■ SCOTT A. W O O D S, senior vice president, commercial loans and mar keting, Hutchinson National, has been elected a bank director. Henry B lanchard Dies ■ HIBERNIA NATION AL, New Or leans, has named David E. Brown, data processing, and A. J. Krail, corporate division, assistant vice presidents. San dra S. Strough, branch administration, has been elected commercial officer, while Joe W . Landry, data processing, has advanced to systems officer. ■ E. A. COURTNEY has been elected chairman, First Guaranty Bank, Amite, succeeding F. E. Patenotte Sr., who has retired. In addition, William T. McKneely has been elected a director to fill the vacancy left by Mr. Patenotte’s retirement. Mr. Courtney has served the board since 1956 and is president, Gas Gathering Corp. Mr. McKneely is president, McKneely Fu neral Home. ■ BANK OF SARDIS has celebrated its 100th anniversary with an open house and a celebration meal for em ployees and spouses. Area residents were invited to the open house and to guess the number of coins in a jar, with the winner receiving the jar and its contents. In addition, anyone de positing to a pass book savings account was able to register for a matching de posit up to $500 or a minimum match ing deposit of $100. D ied: Jack D. Hill, 41, president, First Natchez Bank, after a lengthy ill ness. He entered banking by working part-time during his college years and joined Southern National, Hattiesburg, in 1966. Mr. Hill advanced to senior vice president there. He joined First Natchez Bank as president at its 1973 opening. MID-CONTINENT BANKER for October, 1976 Mississippi is Oil Country Bill Powell (left), Vice President and head of Deposit Guaranty’s Petroleum Department, and Paul Tsimortos, petroleum engineer Mississippi ranks among the top ten oil producing states in the nation, and is moving up everyday! Deposit Guaranty - M ississippi’s largest bank - is known as the Oil Bank of M ississippi. W hy? B ecau se, oilmen of the South, as well as the rest of the U .S., know experience, information and support is available through Deposit G uaranty’s Petroleum Department. If you have a custom er in need of assistance in this area, contact our oilm en/bankers - Bill Powell or Paul Tsimortos. (601 ) 354-8229. DEPOSIT GUARANTY NATIONAL BANK Main Office: Jackson, Mississippi; Grow with us; Member F.D.I.C.; Branch Banks: Greenville Bank, Greenville, LeFlore Bank, Greenwood; Mechanics Bank, McComb; City Bank &Trust Co., Natchez; Farmers Exchange Bank, Centreville; Monticello Bank, Monticello; Newhebron Bank, Newhebron, and offices in Clinton and Pearl. MID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 113 Missouri Consumer Finance Conf. Planned Nov. 17-18 COLUM BIA— The Ramada Inn will be the site of the 21st annual Con sumer Finance Conference of the Mis souri Bankers Association. Dates for the event will be November 17-18. During the opening session Novem ber 17, MBA President Charles K. Richmond, executive vice president, American National, St. Joseph, will ad dress his remarks to those in attend ance. He will be followed by guest speakers who will discuss “ W ho’s G o ing to Protect the Bankers?,” the “ E co nomic Forecast," and “ Federal Legis lation and Regulation.” After the noon luncheon Wednesday, the special interest sessions will begin. They will be repeated and will cover bankruptcy, “ Profitability in Dealer Fi nancing— Direct and Indirect” and “ H ow Good Is Your Customer?” O p tional will be a “ Rap Session on Stu dent Loans, Insurance Premiums, Air plane Financing, Etc.” The after-dinner speaker scheduled for that evening will be Joe Griffith, humorist and raconteur from Dallas, who will explain why “ It’s W hat’s Up Front That Counts.” Workshops on Thursday morning— which will be repeated— will cover Regulation “ B” and the Holder-in-DueCourse Law. Rounding out the confer ence program will be a panel discus sion of the “ Legal Aspects of Lending.” III TOP: S t. a w n in g Johns over 1948. Q u a rte rs ye a rs a fte r b u ild i n g . 1964 on Bank b u ild i n g e n tra n ce ) w e re (stru c tu re lo o k e d e re cte d in bank opened in CEN TER : P re se n t hom e f o u n d a t io n M in i- b a n k , lo c a t e d o f o ld about lik e 1929, s m a ll V /i in th re e sto re fro n t w as b u ild i n g . w it h t h is b u ilt in BO TTO M : m ile s fro m m a i n b a n k , h a s d r iv e - u p , w a l k - u p f a c i l i t i e s a n d Golden-Anniversary Observance S e r v in g a s ch. o f M B A C o n s u m e r F in a n c e C o n fe re n ce is W illia m s , C o m m e rce N o rm an re g . T. v .p ., For faster service on BANK CREDIT INSURANCE CALL THESE SPECIALISTS Harold E. Ball • Carl W. Buttenschon John E. King • Milton G. Scarbrough 214/ 748-9261 Foster (Horsey) Latimer Missouri General Agent INDUSTRIAL LIFE INSURANCE COMPANY 2808 Fairmount — Dallas, Texas 75201 _ _ _ /TQ ___ C5 A member company oI U U c D U Republic Financial Services. Inc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 6 to October 16 B a n csh are s, I n c ., K a n s a s C i t y . 14 Planned by St. Johns Bank I m ST. JOHN— St. Johns Bank will hold a public open house October 16 in honor of its 50th anniversary. The o b servance will include refreshments, ex hibits and gifts. The anniversary cele bration began officially September 6, with registration for prizes and a series of newspaper ads and lobby posters highlighting the community’s past and the bank’s growth. Current president of the bank, Syl vester F. Witte, joined it in 1927 as a 17-year-old clerk who swept out the bank and kept the potbelly stove burning in addi tion to regular cler ical duties. He ad vanc ed through several posts before b e c o m i n g presi dent in 1960. The bank opened W IT T E as St. Johns Com munity Bank October 2, 1926, in a St. Louis suburban area then known as St. Johns Station, which was incorporated in 1964 as the village of St. John. The bank has survived the bank holi day of 1933 (it was one of the first five banks permitted to reopen in St. Louis County) and a spectacular fire that did $65,000 worth of damage to its build ing during a modernization program in November, 1963. Alert employees saved bank records, documents and funds and, by working all night, were able to reopen the bank for business the following day. The original bank quarters were in a small storefront building, but a new brick structure was erected three years later. Early in 1964, lo b b y . it was updated and refurnished inside and out, but the same foundation that was laid in the late 1920s for the bank’s first permanent building stands beneath the modernized quarters. The bank changed its name in 1974 from its original form, St. Johns Com munity Bank, to St. Johns Bank & Trust Co. It also opened a mini-bank, which is located about 2 / 2 miles away and ' has a lobby and drive-up and walk-up facilities for checking, safe deposit box and night depository services. Walter C. Branneky, executive vice president and a director, is a secondgeneration member of the bank’s staff. His father, Walter H. Branneky, was a founder of the bank and its president 21 years and a director 31 years, serv ing as chairman for five of the 31 years. Another early director, Harold R. Lundius, has been succeeded on the board by his son, Earl R. Lundius, who also is a vice president of the bank. ■ W IL L IA M E. O’BRIEN has joined Civic Plaza National, Kansas City, as executive vice president and CEO. He formerly was vice president and direc tor, Home Savings, Kansas City. ■ JACK M ILLER has joined Ex change Bank of Richmond as cashier, succeeding Floyd L. Andersen, who has resigned. Mr. Miller formerly was a senior staff analyst with the Kansas City Fed. Died: Robert E. Dannenberg, 55, president, Rolla State, of cancer, August 22. Mr. Dannenberg joined Rolla State in 1973 as executive vice president, ad vancing to president in 1975. Prior to that, he had been vice president, agri cultural division, Toy National, Sioux City, la. MID-CONTINENT BANKER for October, 1976 Char+er Bank of Overland Completes Remodeling W RITTEN LOAN POLICY Every Bank Should Have One! T h is r ib b o n - c u t t in g ce re m o n y f ic e . The w as N a u n h e im L. Ruby ce re m o n y ( I.) , (3 rd p re s, fr o m of I., o f f ic ia lly f o l lo w e d bank; but p a r t ia lly H ap W e sem an and (6 t h I.) , c h . o f t h e bank; fr o m ( c u t t in g O v e r la n d N a t ' l, K a n s a s R. G i s h and (2 n d fro m J e n n in g s C i t y , H C 's l e a d C h ie f h id d e n A ld e r m a n Bob of in Jesse B e rtra m b e lo n g ; P o lic e of 5 th fro m W eaver and N a u n h e im p ic t u r e d P o esch el p r e s ., fr o m M u n sch C h arte r G o rd o n r e m o d e le d th o se (2 n d C h arte r C o r p ., W e lls and I.) ; (9 t h ( r .) , W ebe M a in are : fro m Bank I., r e s p e c t iv e ly ) ; W e b e (7 th Fra n k F ir s t N a t 'l O v e r la n d 's Am ong Raym ond b a ck g ro u n d ), and b a n k . A . R. " B o " Bank c e le b ra t io n . (4 t h a n d r .) , s .v .p . , banks C h arte r fo u r-d a y J o e G e r r e in r ib b o n ) ; A l d e r m e n t i v e l y ) ; N o r v i lle w h ic h opened a O v e r la n d A ld e rm e n M y e rs by of M ayor fro m K an sas c h ., N o rm a n I., r e s p e c C ity , b a n k p re s. H. N a u n h e im R. Ray J e n n in g s ; and v. I.) ; H . N a u n h e im O v e r la n d 1 0 th O f A. & a re HC CEO , to F ir s t b ro th e rs. ■ M E RCAN TILE TRUST, St. Louis, has announced a number of changes: Eugene E. Fincke, senior vice president and senior loan officer, has retired after 47 years. He has joined Beckers & M ey er, Inc., St. Louis financial consulting firm, as executive vice president. Mer cantile Trust has realigned its banking department into the regional, national The Bank Board And Loan Policy' Provides the Information Needed to Formulate a Written Loan Policy W EHRM AN N F IN C K E ■ J. BENJAMIN COURRIER JR., as sistant vice president, regional bank ing, First National, St. Louis, has been elected vice president-administration of Chesterfield Bank. Both banks are affiliates of First Union Bancorp., St. Louis. Mr. Courrier entered banking at First National in 1956. In 1973, he was named a commercial banking officer in regional banking and, in 1974, was elected assistant vice president. or Update an Existing One! A m u s t f o r b a n k s , t h is 4 0 - p a g e t e ll s w h y a ll b a n k s s h o u ld lo a n p o l ic ie s and la t e o r u p d a t e g u id e s p ro te ct fo r how such le n d in g th e bank m anua1 have th ey w r it t e n can fo rm u p o l ic ie s t o s e r v e o ff ic e r s fro m and to m a k in g as h e lp c o s t ly c o m m it m e n t s . The of m anual fo u r t a in s a p re se n ts th e lo a n w e ll- m a n a g e d banks r a t in g fo r f o r m u la u n se c u re d lo a n s , tra c ts, m o rtg a g e s, a ll p o lic ie s and se c u re d c o n d it io n a l co n and s a le s con g o vern m en t and m u n ic ip a l b o n d s a n d g o v e r n m e n t a g e n c y s e c u r i t ie s . T o p ic s s p o t li g h t e d in c lu d e : • Conditional Sales Contracts • All Mortgages • Loans for Education Also included are sections on who should have lending authority, lending procedures, loan limits, credit depart ment responsibilities and loan examiner responsibilities. ELFR A N K BREN N AN and international and personal depart ments. Heading the regional banking department is Donald B. Wehrmann, senior vice president, while Patrick J. Brennan, senior vice president, heads the national and international banking department. Charles A. Elfrank, senior vice president, has been appointed head of the personal banking department. ■ JAMES A. SMITH, formerly senior vice president, Mercantile Trust, St. Louis, has joined Manufacturers Bank, St. Louis, as executive vice president. Mr. Smith headed Mercantile’s central group, which is responsible for bank and corporate business in the Midwest and South. He had been with the bank since 1954. MID-CONTINENT BANKER for October, 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Can your bank afford to this manual? be without (Missouri banks add Price: $4.25 4'/2% tax) ORDER TOD AY! (Sorry, no billed orders) The BANK BOARD Letter 408 O live St., Suite 505 St. Louis, M O 63102 I 15 New Mexico ■ GROU ND has been broken for a downtown drive-up facility of Farmers & Merchants Bank, Las Cruces. The facility is the first phase of the bank's expansion and relocation. The drive-up will have four lanes, and will feature facilities by Diebold. A late October opening is scheduled. ■ PHILLOP E. “ GE N E ” BENTON has joined Farmington National as cashier. He formerly was with Permian Bank, Odessa, Tex. a JOHNNY A. TAYLOR has resigned as president of First State of Sierra County, Truth or Consequences, fol lowing the bank’s sale to Stephen Adams, president, Associated Bankers Corp., Minneapolis. At press time, Travis Waller, bank director and former president, said he also would resign at a future date. Mr. Taylor is a former state banking commissioner. a THOM AS W . BOND has joined First National, Farmington, as vice president. He formerly was vice presi dent and assistant trust officer, First National, McAlester, Okla., and suc ceeds Joe Mangum in his new post. a J. ALAN H U NTON has joined First National of Lea County, Hobbs, as as sistant vice president and operations officer. He formerly was an assistant national bank examiner. a J. P. BRANDENBURG has retired as director, P’irst National, Santa Fe, and continues as chairman of the par ent HC, New Mexico Bancorp., Inc., also of Santa Fe, and as chairman and CEO of another affiliate, First State, Taos. Replacing Mr. Brandenburg on the First National board is Roy B. Thompson, chairman, Territorial A b stract & Title Co. ■ W IL L IA M C. W H ITE , president, Santa Fe National, has assumed addi tional responsibilities as CEO, succeed ing William H. Vernon. Mr. Vernon will continue as chairman until his re tirement at the end of the month, when the title of chairman will be discon tinued. Those responsibilities then will I !6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis be carried out by the president. Mr. White joined the bank in 1958 as vice president and cashier; Mr. Vernon, in 1955 as executive vice president. Oklahoma ■ BANK OF OK LAHOM A, Tulsa, has announced the following promo tions: William L. Pritchett, to market ing officer; David Goodman and John Walstad, to commercial banking of ficers; James A. Tappan and Philip Burns, to investment officers; J. Michael George, to assistant trust officer, cor porate and real estate section; and Silas J. Burnham, to operations officer. In addition, Richard C. Hedges has been named assistant vice president, personal banking, while Ed F. Clark has been elected personal banking officer. trator of national banks for the Comp troller of the Currency; Quinton Thompson, regional administrator of national banks, FDIC; Harry E. Leon ard, Oklahoma state banking commis sioner; and John F. Zoellner, vice pres ident, Kansas City Fed. Also on hand to address the conven tion will be Charles O. Maddox Jr., president, Independent Bankers Asso ciation of America, and president, Peo ples Bank, Winder, Ga. A complete spouses’ program was in the planning stages at press time. A so cial program and election of officers are on the agenda. Heading the convention program committee is Royce G. Wilmoth, presi dent, Exchange National, Moore. ■ PEM BERTON COOLEY JR. has joined American National, Chattanooga, as vice president. Mr. Cooley, who twice has served as president, Tennes see Association of Finance Companies, formerly was with the Auto Credit Co. and Hamilton Investment Corp. FREEM A N ■ JAMES H. FREEM AN, manager of the systems planning and development unit, support division, Fidelity Bank, Oklahoma City, has been elected vice president. Regulatory Threat a M ajor Topic O f IBA O Meeting Oct, 21-22 OK LAH O M A CITY— The regula tory and congressional threat of nation alization of banks will be a major topic when the Independent Bankers Asso ciation of Oklahoma meets October 2122. Site for the event will be the Skirvin Plaza Hotel. Keynoters Senator Henry Bellmon and Congressman Tom Steed will dis cuss that topic and also will represent their respective political parties and give a presidential election campaign update on Friday, October 22. Prior to the featured speakers will be a panel discussion in which a num ber of experts will give “ An Overview of Banking Legislation on the Federal Level and Regulations and Problems of Regulatory Agencies With Emphasis on Problems Relating to Smaller Banks.” Moderator for the panel will be K. T. Hoyle, director of legislative studies and research for the IBAO in Washington, D. C. Other panelists will be Michael Doman, regional adminis CO O LEY GRAHAM ■ TPIOMAS H. GRAPIAM has been named vice president and director of personnel at First American National, Nashville. Barbara W . Brake has been appointed director of public relations, replacing Bill Boner, who resigned to enter his successful race for state sen ator. Daniel J. Rozelle has been elected director of marketing research and product development, a newly created post. In other news at First American National, William A. Blair, Edwin W . Moats, Gary O. Sharp, Thomas H. W ebber III and Nancy O. Zoretic have advanced to assistant vice presidents and Jack N. Curtis, president and di vision chief executive, Cain-Sloan Co., has been elected a bank director. At the bank’s parent HC, First Amtenn Corp., Nashville, Mary R. Franks has been named assistant treasurer. ■ JOSH C. COX JR. has been elected executive vice president and A. D oug las Krell has been named senior vice president of Commercial & Industrial Bank, Memphis. Mr. Cox, who former- MID-CONTINENT BANKER for October, 1976 Since 1889 The First National Bank and Trust Com pany of O klahom a City has been helping the state of O klaho m a grow and prosper. During the past two years we have been the major underwriters in these O klahom a projects: U niversity of O klaho m a Revenue Bonds. City of Lawton W ater System Bonds. O klahom a State U niversity Building Bonds. City of N ichols Hills Im provem ent Bonds. O klaho m a Student Loan Authority Revenue Bonds. Tulsa General O bligation Park Bonds. O klaho m a State University Student Health Center Bonds. State of O klaho m a Institutional Building Bonds.M uskogee Board of Education General Obligation Bonds. The First National M unicipal Bond Departm ent helps build O klahom a. D D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Underwriters and dealers of general market bonds specializing in western credits and Oklahoma Municipals since 1919. Member F.D.I.C. THE F IR ST NATIONAL BANK AND TIUST COMPANY OP OKLAHOMA CITY ment, to assistant vice presidents; and Jay A. Dudley, correspondent banking, to loan officer. ■ DA V ID TAPP, formerly chairman and president, First National, Bonham, has been named vice president at Fort Worth National. He had joined the bank earlier as a senior commercial loan officer. COX ■ REPUBLIC of Texas Corp., Dallas, has been listed on the New York Stock Exchange. Its symbol is RPT. In other news, an acquisition agreement has been reached between the HC and First National, Garland. Index to A d vertisers A m e r ic a n F le tc h e r N a t ’ l B a n k & T r. Co. .. A m e r ic a n N a t'l B a n k & T r. C o., C h a tta n o o g a A s s e m b lie s f o r B a n k D ir e c to r s ....................... A T M M a n u a l ................................................................. KRELL ■ M ICH AEL R. DOYLE has been named senior vice president at Capital National, Austin, following his promo tion earlier this year to correspondent and regional banking department head. James C. Doss has been named assist ant controller, retaining the title of vice president. ■ BANK OF THE SOUTHW EST, Houston, has announced the following promotions: James S. Fox, correspon dent banking department, and Sam S. Anzelmo, office services department manager, to vice presidents; James R. Young, personal trust department, to vice president and trust officer; David M. Johnson, methods department, and Erik C. Jensen, metropolitan depart C a n a l- R a n d o lp h C o rp ................................................ 79 C e n tr a l N a tio n a l B a n k , C h ic a g o ..................... 21 C h e s h ir e In n & L o d g e ............................................ 92 C itiz e n s F id e lit y B a n k & T r. C o., L o u is v ille 101 57 C o m m e r c e B a n k , K a n s a s C ity ......................... C o m m e r c ia l N a t ’ l B a n k , K a n s a s C ity K a n . 110 C r e a tiv e Im a g e ............................................................ 49 ■ CULLEN CENTER BANK, Hous ton, has named Randy Peacock and Gary M. Olander assistant cashiers. ■ JAMES D. BERRY, president, Re public of Texas Corp., Dallas, has been elected president, Texas Association of Bank Holding Companies. In that post, he succeeds Nat S. Rogers, president, First City Bancorp, of Texas, Inc., Houston. Other newly elected officers of the association are: Hubert Gentry Jr., president, Southwest Bancshares, Inc., Houston— vice president; Derrell Henry, chairman and CEO, American Bank, Odessa, and a member of Texas Commerce Bancshares, Inc., Houston— secretary; and P. K. Stubblefield, presi dent, Victoria Bankshares— treasurer. ■ W IL L IA M R. CARDEN has been named vice president, First National, McAllen. Prior to joining First National, he owned a wholesale import firm in Dallas and has had a number of fi nancial articles and reviews published. 23 D e L u x e C h e c k P r in te r s , I n c .................................. D e p o s it G u a r a n ty N a tio n a l B a n k ..................... 113 D e tr o it B a n k & T r u s t C o ......................................... 8 39 D ie b o ld , I n c ..................................................................... D o a n e A g r ic u lt u r a l S e rv ic e , I n c ....................... 104 99 D u rh a m L ife I n s u r a n c e C o .................................... E x p re s s io n , I n c .............................................................. H a r la n d C o., J o h n H .................................................. H a r r is T r u s t & S a v in g s B a n k ............................ H a rr o w S m it h C o ......................................................... 91 87 108 I lli n o i s B a n k B u ild in g C o rp .................................. I n d u s t r ia l L ife I n s u r a n c e C o ................................ In s u r e d C r e d it S e rv ic e s , I n c ................................ In te g o n C o rp ................................................................... I n t e r io r W o rld ....................................... I n te r n a t io n a l S ilv e r C o ............................................. 48 114 25 103 43 19 K a n s a s B a n k N o te ................................................... 107 L ib e r ty N a t ’ l B a n k a n d T r. C o., O k la h o m a C ity ................................................................................. 2 M G I C - In d e m n it y C o rp . ....................................... 14-15 M a n u f a c tu r e r s H a n o v e r T r u s t C o .................. 59-62 M a r in e B a n k , E rie , Pa. ......................................... 42 M e ilin k B a n k E q u ip m e n t ................................ 13 M e m p h is B a n k & T r u s t C o ............................. 28, 77 M e r c a n tile B a n k , S t. L o u is ................................ 4 M c C o u r t n e y - B r e c k e n r id g e & C o ......................... 118 O z a rk A ir JO HNSO N DUDLEY YOUNG L in e s , I n c ................................................. 89 66 53 R e p u b lic N a tio n a l B a n k , D a lla s ....................... R o b e rts , J a c k & A s s o c ia te s .............................. 69 84 S c a rb o ro u g h & C o ...................................................... S p a c e R e n ta ls ..................................................... S tr u v e n , G. C a rly le ................................................... 45 T e n s io n 70 E n v e lo p e C o rp ............................................ FOX INVESTMENT SECURITIES SAINT LOUIS, MISSOURI 6 3 1 0 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis u 75 U n io n B a n k & T r u s t C o., M o n tg o m e r y . . 108 U n ite d M is s o u r i B a n k , K a n s a s C ity .............. 7 McCOURTNEY-BRECKENRIDGE & COMPANY 118 109 119 67 P la n n e d P r o je c ts ..................................................... P lu s G ro u p , T h e , S t. L o u is ................................... W h ite W a y S ig n C o ..................................................... W h itn e y N a tio n a l B a n k .......................................... PH O N E 314/231-5730 68 F a r m e rs G ra in & L iv e s to c k H e d g in g C o rp . 24 F ir s t A la b a m a B a n c s h a r e s ................................... 84 F ir s t A m e r ic a n N a t'l B a n k , N a s h v ille ......... 81 85 F ir s t C ity N a tio n a l B a n k , H o u s to n ................ F ir s t N a tio n a l B a n k o f A r iz o n a ....................... 65 F ir s t N a tio n a l B a n k , D a lla s ................................. 93 F ir s t N a tio n a l B a n k , K a n s a s C ity .................. 83 F ir s t N a tio n a l B a n k , S t. L o u is ................ 71, 120 F ir s t N a t’ l B a n k o f C o m m e r c e , N e w O rle a n s 3 F ir s t O k la h o m a B a n c o r p ......................................... 117 F o u r th N a tio n a l B a n k , T u ls a .............................. 37 N a tio n a l B lv d . B a n k , C h ic a g o ............................ N a tio n a l S t o c k Y a rd s N a t ’ l B a n k ................ N o r th e r n T r u s t C o ....................................................... ANZELM O 73 95 74 47 B a n k A d m in is t r a t io n I n s t it u t e .......................... 105 B a n k B o a rd L e t te r 22, 111, 115 B a n k B u ild in g C o rp ................................................... 17 B a n k o f A m e r ic a ....................................................... 27 B a n k o f O k la h o m a ................................................... 9 B a rc la y , T h e ................................................................. 90 B a v is & A s s o c ia te s , E. F ......................................... 51 B o a tm e n ’ s N a tio n a l B a n k ................................... 55 ly was coordinator of branch activities for Union Planter’s National, Memphis, assumes a wide range of responsibilities in his new post. Mr. Krell will serve as C&I Bank’s senior real estate loan of ficer and has an extensive background in that field. ■ DON H. HIX has advanced from vice president to senior vice president at Third National, Nashville. He heads operations and is president and director o f the Tennessee Automated Clearing House Association. • 314 N. BR O A D W A Y 41 97 46MM National Bank, South Central Illinois, seeking a qualified individual for full time position. The applicant must be looking for a challenge, have sufficient banking back ground to develop and direct a complete audit program, sufficient accounting back ground and the ability to work with people. Salary commensurate with qualifications. Please forward resume prior to any interview. An equal opportunity employer. Norman L. Schultz, Executive Vice President, The First National Bank of Effingham, 200 North Third St., Effingham, IL 62401 (217) 347-7744. MID-CONTINENT BANKER for October, 1976 o f wagons The modern kind, of course, with plenty of horsepower, so the hard-driving men of Stock Yards Bank can continually bring personalized service right to your door. Bob Heifer, like the other officers who travel the circuit, keeps so well-informed of your local situation, he has full authority to grab the reins and make decisions. Selling out of wagons was a great way to do business a century ago. It still is, especially when you get the old-fashioned courteous, SYB service out of modern wagons. And if you come up with a problem after Bob has left your bank, you can bet your best whiffletree, there’s a load of good corres pondent ideas back at the store—always reachable at 618-271-6633. "YOU R BANKER'S B A N K " .. . J u s t a c ro s s the r iv e r from St. L o u is THE NATIONAL STOCK YARDS NATIONAL BANK O F N A T IO N A L C IT Y NATIONAL STOCK YARDS, ILLINOIS 62071 Membor Femoral Deposit Insurance Corp https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W ork with a banker who knows what his bank can do for you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A t First National Bank in St. Louis, our corre spondent bankers are trained in what our bank can do for you. Across the board. Department by department. The result is men with solid experience and individual authority. So they can make fast decisions for you on their own. They’re backed by a bank with strong, steady growth. And total banking capabilities including overline loans, bond department services, computer ized check collection, cash management systems. Plus our annual correspondent seminars where you can exchange ideas and learn about new profit opportunities. Get to know your First National correspondent banker. He knows his bank. He’d like to put us to work for you. First National Bank in St.Louis Member FDIC ■ I ÊÊÊ
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