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• The Spring Agricultural Outlook— Survey • Potential Risks of Bank Directors • Area Insurance Firms Report Progress https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Nebraska Bankers Annual Convention Program M eet our international people who can make M NB G retchen Sealls Don MacKay Vice President Carol Ridder Amy Baxter Karen De Meulenaere We can help you and your customers follow up on international sales leads by obtaining credit data, as well as providing documentation expertise once the sale has been confirmed. Our international team will provide you with qualified advice on long and short term global financing — advice that’s tailor-made to fit your customers’ needs. We process letters of credit, documentary collections, and foreign exchange transactions on an extensive daily basis, so we’ll handle your documents quickly and effi ciently. That’s pretty important when you’ve got a cus tomer waiting for his money. To take the “foreign” out of your foreign transac tions, call Don, Gretchen, Amy, Karen, or Carol. They’re eager to make MNB work for you. The number to call is 319-398-4332 or toll free 1-800-332-5991. Make sure you g et th e b e st by calling o n e of MNB’s C orrespondent Banking P rofession als. John E. Mangold Senior Vice President (319) 398-4313 Jerry N. Trudo Terry Martin Vice President Assistant Vice President (319) 398-4320 (319) 398-4306 Mark W. Christen Dale C. Froehlich Assistant Vice President Assistant Vice President (319) 398-4314 (319) 398-4315 Stan R. Farmer Correspondent Bank Representative (319) 398-4217 OUR PEOPLE MAKE IT WORK Merchants National Bank i : i Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK The promise of the future is perform ance today The futures of many depend on the prompt, well-informed decisions of a few—on specialists tuned to making the proper investments at the right time. Kirchner Moore & Company consistently delivers this kind of performance. We’re specialists, dealing exclusively with the underwriting and marketing of municipal securities. As such, we offer our clients an unsurpassed expertise in this increasingly complex field. ‘ The key to Kirchner Moore performance is our team approach to investment decision-making and client service. Our sales, public finance and trading departments work hand in hand through every phase of municipal financing. This tight coordination of daily departmental activities assures clients of accurate, up-to-the-minute information regarding interest rates, secondary market activity, forecasts and money market trends. Kirchner Moore performance means traders who can assess the market instantly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It means public finance specialists with an intimate knowledge of the long-range needs of municipalities in this region. It means sales representatives with a commitment to personal service and a firsthand knowledge of the territory they serve. Above all, it means prosperous futures for many because a few have performed with excellence today. Kirchner Moore & Company. We’re the Performance Team. Because when you do only one thing, you’re bound to do it better than anyone else. The Performance Team f M lM KIRCHNER MOORE & COMPANY Tax Exempt Municipal Bonds Denver 1600 Broadway, Suite 2500 Denver, Colorado 80202 (303)292-1600 Omaha 7171 Mercy Road Omaha, Nebraska 68106 (402)397-8520 4 “Our NCR Electronic Funds Transfer System is paperless.” Joseph F. Phernetton, President Banks of Iowa Computer Services, Inc., Cedar Rapids, Iowa ‘‘You lose the greatest advantage of an electronic funds transfer,” maintains Joe Phernetton of Banks of Iowa Computer Services (BICS), ‘‘unless you eliminate the processing of paper. And that’s what our NCR system does for us. Last month, we displaced over 100,000 pieces of paper.” BICS provides online paperless service fo 18 banks. As well as participation in the Iowa Transfer System, the first statewide EFTS system to go into operation. Bank customers receive a printed receipt. The terminal records transactions on-its journal to establish an audit trail. But all the processing is purely electronic. BICS’ online system, including teller termi nals and ATM’s, is all NCR, while master files are maintained by a 370. The NCR computer is current around the clock. The 370 is updated once a day by a simple exchange of tapes. The 370 software is untouched. ‘‘NCR hardware and software are ideal for running our online teller and EFT system,” says Joe Phernetton. Find out what an online NCR system can do for you. Call your local NCR representative. Or write to Financial Systems, NCR Corporation, Box 606, Dayton, Ohio 45401. Complete Com puter Syste m s N C□ Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 APRIL 1978 • 85th Year No. 1375 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION FEATURES 23 The spring ag outlook Area bankers discuss loan demand in survey 32 I BAA adopts 5-year plan Independent bankers name Ivan Fugate president 52 Winning with customers Continental of Chicago offers new program to banks 54 Women in banking Janet Taber comm ents on her career INSURANCE SECTION 39 Potential risks for directors Robert W. Marshman reviews lia b ility insurance 40 D&O eases lawsuit anxiety Joseph P. DeAlessandro looks at policy details 43 Area firms report progress Reports detail 1977 results, look at future Nebraska Convention DEPARTMENTS 12 18 20 21 57 61 62 74 Bank Promotions Calendar Corporate News W hat’s New Illinois Minnesota Twin Cities South Dakota 75 North Dakota 76 Wyoming 78 Montana 80 Colorado 81 Western 105 Iowa 116 Des Moines 120 Ad Index 83 86 90 90 92 99 100 103 Convention Program Omaha You W ill See them Registration Group Reports NETS Report Lincoln Consumer Survey Results NORTHWESTERN BANKER 306 151h Street, Des Moines, Iowa 50309 Publisher Editor Malcolm K. Freeland Phone 515—244-8163 Business Manager Ben Haller, Jr. Mike Freeland Associate Editor Linda L. Rhein Advertising Assistant Auditor Field Representative Field Representative Field Representative Delene Finch Mildred Barnes AI Kerbel Paul Masters Glen Hicks No. 1375 Northwestern Bsinker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ifyou sell your customers an ordinary brand o f travelers cheques, be sure to tell them not to lose them on a weekend. > V* Or on a holiday. Or even at night. Why? Because ordinary travelers cheques have ordinary refund systems. Which are only open during normal banking hours, Monday through Friday. If a customer loses ordinary travelers cheques on a weekend, he could be out of funds for quite some time. And that’s enough to ruin a per fectly good vacation. Your customer deserves better than this. Fie deserves American Express® Travelers Cheques. W ith American Express, your cus tomers can get an Emergency Refund" 24 hours a day, 365 days a year, for up to $100 at Holiday Inns across America and Canada. Our Emergency Refund system alone is enough to rescue a vacation from disaster. But it’s just one of the reasons why American Express is the world’s number one brand of travelers cheque. Here are a few more. 1. Your customers can get full refunds during normal business hours. Usually on the same day. In addition to Emergency Refunds at odd hours. 2. American Express Travelers Cheques are good at thousands more ho tels, motels, restaurants and gas stations across America than any other brand. 3. Only American Express Travelers Cheques are supported by the world’s largest network of travel offices. Helpful places around the world where your customers can go with a problem. Good customer relations are price less. You can protect them with the world’s number one brand of travelers cheques: American Express. American ExpressTravelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 8 BAI Holds Conference In San Francisco AUTOMATIC COIN WRAPPERS ■ Precision made on special machines from finest quality materials. ■ "Patented Red Bordered Windows automatically indicate the total amount and denomination of contents. ■ Diameter of coin automatically positions value of contents in red w indow openings. ■ Save tim e for tellers, buyers, stockkeepers and depositors. Eliminate errors. ■ For years a favorite w ith leading banks and financial institutions. ■ Wrap all coins from 10 to $1.00 in following amounts: 500 in pennies $10 in quarters $2 in nickels $10 in halves $5 in dimes $20 in dollars ■ Packed 1,000to a box. Tapered edges. Available Imprinted. For details on* other high quality “ Steel-Strong" Coin Handling Products, call your dealer or send coupon. The C. L. D O W N E Y C O M P A N Y / HANNIBAL, M IS S O U R I, DEPT. N PLEASE SEND FREE DETAILS ON “STEEL-STRONG" COIN HANDLING PRODUCTS TO: Name _____ ___________________________________________________________ ______ Title Firm ______________________________________________________________________ Address. City. AROUND State. MONEY Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE FINEST IS "STEEL-STRONG” U. S, Congressman Henry S. Reuss, chairman of the House Committee on Banking, Finance and U rban Affairs, will keynote the opening session of Bank A dm inistra tion In stitu te ’s (BAI) first Spring Conference in San Francisco. The m eeting will be held at the H y att Regency in Em barcadaro Center April 23-26. BAI Chairman Horace Dunagan, J r., also will address delegates at the opening session. He is president of the F irst S tate Bank of Caruthersville, Mo. Commenting on the meeting, Mr. Dunagan said the conference, and another to be held in May in New Orleans, will replace B A I’s four regional conventions previously held each spring. Five special interest workshops on W ednesday morning include an indepth discussion of the problems of international banking, the technique of memory recall, a case study approach to building a plan for teller selection, a bank performance clinic using a computer printout of the performance of the participant’s own bank, and how to sta rt a bank planning committee, w hat to expect from it, and w hat it will cost. In addition, the conference will have 17 technical sessions featuring more than 30 different speakers and banking subjects. Leading bank suppliers will exhibit the latest equipm ent and services throughout the meeting. Graduate School of Banking Names Nelson Chairman Robert C. Nelson, executive vice president, Indiana Bankers Associ ation, has been appointed chairman of the board of trustees of The G raduate School of Banking a t the University of W isconsin-M adison. The school is sponsored by the 16 s ta te s of th e C e n tra l S ta te s Conference of Bankers Associations. Mr. Nelson will complete the unexpired term of William J . Daner who left the board following his resignation as secretary and general counsel of the N orth D akota Bankers Association and his return to private law practice. versions of the riiprl^book Catalog. ----C T O ne v e rsio n is co m p le te in every d etail. Your new a c c o u n ts p eople c a n sh o w y o u r c u s to m e rs everything we have to offer in checking: so m e old favorites like S cen ic A m ericana, b ra n d new a d d itio n s like W in d jam m er... a n d m any, m a n y m ore. P lu s, a sam p le c h e c k b o o k of a c tu a l c h ec k s. T hey’ll find it e a sy to s e le c t c h e c k sty le s ... from tra d itio n a l w allet to d e sk b ooks. B ut, th a t’s o n ly o n e v ersio n . N um ber tw o is w h at w e call th e PPG. P o in t of P u rc h a s e G uide. It’s a hig h quality, full-color s e le c to r th a t h a s ev ery th in g y o u r c u s to m e r n e e d s to know a b o u t D eluxe C hecks. Yet it’s abridged. S h o rten e d . L ightw eight. S im ple to u se. And, m o st im p o rtan t, g re a t rea d in g m aterial for th o s e c u s to m e rs w ho a re w aitin g to b e serv ed in y o u r new a c c o u n ts area. T h e D eluxe c a ta lo g s ... u n a b rid g e d a n d abridged. TWo h ard-w orking a d d itio n s to v o u r n ew a c c o u n ts d e p artm en t. CHECK PRINTERS. INC SALES HEADQUARTERS F.O BOX 43399, ST PAUL. MN. 95164 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 How. much cad your bank lose^ today? If you’re still spending your time super vising day-to-day banking services, you’re losing money for your bank. You should be doing things that mean new business, better ways to in vest. That means leaving the day-to-day to people prepared to handle it efficiently and economically. Banks of Iowa Computer Services 3ICS) has made it possible for banks of all sizes to take advantage of the most modem banking tools without the ex pensive overhead costs of other sys tems. BICS is more efficient and saves you money fora simple reason: adaptability. Because there is no one right answer for streamlining each bank, BICS tailors its systems to your particular needs and problems. Equally important, BICS offers the best support team available. Don’t be misled; com puters aren’t the total answer. And BICS gives you the most effec tive support team going — proved by the constant enhancement of existing systems — proved by the introduction of key industry innovations. And as for services — BICS offers you the single largest group of services you’ll find anywhere. Electronic Funds Transfer System Central Information System Proof of Deposit Savings Accounting Loan Accounting Personal Trust Accounting Bond Accounting Demand Deposit Accounting Certificates of Deposit Accounting General Ledger Accounting The largest group of services avail able. A banking system tailored to your specific needs. The best support team going. BICS. If you’re still handling the day-to-day services, you’re losing money for your bank. And for yourself. For more information call Joe Phernetton or BICS marketing at (319) 398-4204. Banks of Iowa Computer Services A BANKS OF IOWA' SUBSIDIARY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 ROMOTIONS and other an nouncements have been made by P the following banks: American National Bank, Chicago: Frederic C. Dawson and Richard G. Harvie have been elected tru st investm ent officers. Mr. Dawson, portfolio m anager, joined the bank in 1976. Mr. Harvie, who joined the First Stock Yards Bank, St. Joseph, Mo.: John E. K am has beenj ele c te d p re s id e n t an d d ire c to r' succeeding H. H. Broadhead, Jr. who has been elected chairman. H . H.BROADHEAD F. DAWSON R. HARVIE bank last December as a portfolio m anager, is head of investm ent m anagem ent in the tru st investm ent division. a 5-character message center! Words change or travel. W ith tim e and tem perature. Now even the smaller financial institu tions can afford a message center display for advertising or public service. Daktronics Venus 500 has 32 columns of lamps w ith seven 15-w att bulbs per column for displaying 18" high charac ters. Flash on as many as 16 words of five letters or less, plus time and temperature or run a traveling message of up to 16 words of up to 16 characters each, plus time and temperature. At far less investment than our standard 10-character display. VENUS 500 M E S S A G E C EN TE R Write for literature and prices - DAKTRONICS, INC. Box 299-L Brookings, S.D. 57006 Telephone 605/692-6145 DigitizedNorthwestern for FRASERBanker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Drovers Bank of Chicago: Jam es J . Carmody, 53, has been named e x e c u tiv e vice president to head the banking divi sion responsible for all commer cial banking and co n su m er le n d ing o p e ra tio n s . B efore jo in in g the bank, Mr. N Carmody was a vice president of J. J. CARMODY the F irst National Bank of Chicago and head of the brokers division in the corporate banking departm ent. Prior to th a t he was senior vice president of corporate banking at LaSalle National Bank of Chicago for 12 years, and before th a t was vice president of the corporate division of Colonial Bank and T rust Company, Chicago. First National Bank, St. Louis, Mo.: Dennis L. Noah has been elected assistant vice president. New officers elected are C. Gean Griffin and Edw ard B. Parsons, personal banking officers; H arry J . Johnson, retail banking officer, and M ary M. M aurer, data processing officer. J. E. KARN Mr. K am joined the bank in 1960. He was promoted to assistant cashier in 1964, cashier in 1968, vice p r e s id e n t/c a s h ie r in 1970 and executive vice president in 1975. Mr. Broadhead has been with the bank since 1939. He progressed in 1947 to a s s is ta n t c a sh ie r, in 1951 to assistant vice president, in 1954 to vice president and director and in 1970 to president. Harris Trust and Savings Bank, Chicago: Richard L. McAuliffe, senior vice president, has been named controller and head of the planning and control group. He formerly served as head of the banking services group. Succeeding him in the post will be P. David H ubbard, vice president, who has been bank secretary and head of the corporate activities office. N. Daniel Engstrom , former vice president in charge of the tru s t departm ent’s estate adm inistration division, has become bank secretary and head ofj c o rp o ra te a c tiv itie s . R u sse ll L. Mitchem, vice president, succeeds Mr. Engstrom . Jam es A. Graves has been named head of the tru s t tax division. R. L. McAULIFFE P. D. HUBBARD 13 W hy banks suggested £ tn a Money for valves in Minnesota and light dimmers in Georgia. His banker had two good reasons to hesitate when the valve manufacturer asked for growth money. The growth that was forecast would quickly take oan beyond the bank’s legal lending limit. A nd inventory financing was needed, but the bank lacked the staff to m onitor the collateral. Solution? Æ tna Money!M In participation with the bank, we provided a revolving redit line secured by inventory and receivables, that could keep pace with the m anufacturer’s growth. We also gave the bank frequent collateral updates and periodic audit reports. - ----.... Result? The manufacturer continued his growth and fa improved his relationship with the bank. To stay competitive, the manufacturer of light dimmers had to expand his product line. But he was also having temporary financial difficulties, so his bank was unwilling to increase his credit line. Solution? /Etna Money. W ith the bank partici pating, we |j£, provided a financing program collateralized by inventory and receivables. Result? The manufacturer expanded his product line, his profits, and his business with the bank. /Etna Money. It’s flexible and quickly available for your customers. It’s a workable alternative for you. Call us for details. You get action with /Etna because our business is to help your business. A lth o u g h certain identifying facts have been changed to protect client confidentiality, these are a u th e n tic exam ples o f /E tna M oney at work. 530 North Water Street, Milwaukee, WI 53201 (414) 272-3102 -1717 Cargill Building, Minneapolis, MN 55402 (612) 339-2222 • One Post Street, San Francisco, CA 94104 (415) 956-4373 © Æ tn a Business Credit, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 14 H arris Bankcorp, Inc., parent of th e b a n k , h as a n n o u n c ed th e nom ination of two new directors: M ary P e trie , tre a s u re r of th e U niversity of Chicago, and John J . Schm idt, president of Santa Fe Industries. LaSalle National Bank, Chicago, 111.: Bruce L. D ahltorp has been promoted to senior vice president and Emil J . Schubert to vice p re s id e n t, m e tro p o lita n d iv isio n . W. J. ARMSTRONG D. W. FOX and continues as vice chairman of the holding company. Solomon B. Sm ith did not stand Northern Trust Company, Chica for reelection as a director of go: E. Norman Staub officially suc N ortrust Corporation, the parent ceeded E d w a rd holding company. In his place, Byron Sm ith last sto c k h o ld e rs ele c te d J a m e s W . m onth as chair Cozad, vice president-finance, and a m an and chief director of Standard Oil Company executive officer (Indiana). Stockholders also voted to of the bank, ac change the holding company name to cording to the Northern T rust Corporation. su c ce sso r p la n Mr. Staub last m onth announced re p o rte d la s t several top executive changes within November in an the bank. Charles H. Barrow, ticipation of Mr. C. H. BARROW executive vice president, has been S m ith’s retirem ent. Mr. Sm ith will appointed to the new post of senior continue his posts w ith the holding executive vice president and was company until M arch, 1979. Mr. elected a director of the bank. He will Staub was vice chairm an of the bank be the b an k ’s third principal officer, A SYSTEM FOR A BANK TO MANAGE WHAT SEEMS UNMANAGEABLE r AND IMPROVE THE VALUE OF ITS COMMERCIAL LOAN PORTFOLIO The Lawrence System has a new approach to the management of a bank’s loan collateral. It’s called preferred lending: a direct relation ship between the bank and Lawrence. More profitable for the bank. More economical for the borrower. It means that loans once consid ered unmanageable, even though worthy, can now be managed properly and profitably. For information write or phone Lawrence, the oldest and largest system of its kind in the world. Lawrence Systems, Inc., 37 Drumm Street, San Francisco, Ca., 94111. (415) 981-5575 or (800) 227-4644. TH E L A W R E N C E S Y ST E M A COLLATERAL M ANAGEM ENT Northwestern Banker, Apri! 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUBSIDIARY OF INA working with Mr. Staub and Philip W. K. Sweet, J r., president. Mr. Barrow will have responsibili ty for the banking, international operating, auditing, building, a n d . advertising and public relations departm ents. He joined N orthern T rust in 1952 and was named executive vice president in 1973. Mr. Staub also announced the assignm ent of W. Jam es A rm strong, executive vice president, to respon sibility for all bankwide planning activities. David W. Fox has been elected executive vice president to succeed Mr. A rm strong as head of the banking departm ent. Design Awards Competition Bank Building Corporation recent ly held its annual Design Awards Competition and selected 11 of the 64 projects entered for special awards. Banks winning awards from the area covered by th e N o r th w e s t ern Banker are: award of excellence —H erget National Bank, Pekin, 111; awards of m erit—M erchandise N a tional Bank, Chicago, 111., and F irst National Bank of W est Union, St. Lucas, la. BMA Announces School For Marketing Managers The Bank M arketing Association (BMA) has announced details of its 1978 Bank M anagem ent School for M arketing M anagers (formerly call ed the G raduate Course in Bank M arketing M anagem ent), A ugust 12-18 at the U niversity of W isconsin, M adison. The school is sponsored annually by BMA in cooperation with the U niversity. The program is designed to provide bank m arketing m anagers with exposure to advanced m arket ing s u b je c ts an d m a n a g e m e n t concepts and practices. A highlight will be the participa tion by students in BankSim I, a com puter bank sim ulation program which lets students act as members of a senior m anagem ent team . Intensive class discussion, visual presentations and swap sessions are included. Those interested should apply as soon as possible for the limited num ber of places available. For more information contact: Schools R egistrar, Bank M arketing Association, 309 W est W ashington Street, Chicago, 111. 60606. 15 What’s m ost important in a correspondent relationship? Quality W hen you evaluate a corre spondent bank, you look not only for specialized financial and operational expertise, but also for a high quality of service. T h at’s why throughout the country, bankers rely on The N orthern T rust Bank. We offer a complete range of advanced banking program s, supported by a tradition of excellence th a t is unsurpassed. How can we serve you? At The N orthern T rust, all correspondent services are designed w ith your needs in mind. And these services are constantly being improved to keep pace with the latest technology and regulations. A c c e le ra te d D ep o sit C ollection. To help your bank have more cash on hand, The N orthern T rust accepts unsorted cash letters, offers late deadlines, and provides im m ediate availability on major financial centers throughout the country. B o n d a n d M oney M a rk e t S erv ices. You have complete, accurate m arket inform ation with ju st one phone call. FOCUS™ Your b ank’s tru st investm ent officers have daily access to the research th a t our own portfolio m anagers use, weekly reports th a t can reduce th eir paperwork, and periodic sem inars with top N orthern T rust officers. S p e c ia l P ro je c t A ssista n c e. When you need help with operations analysis, float reduction, m arketing, or other im portant projects, your N orthern T rust calling officer and staff are available to assist you. They will put you in contact w ith other banking specialists who provide inform ation and perspective for your special assignm ents. For a quality of corre spondent service th a t’s rare in banking today, contact the calling officer for your area at The N orthern T rust Bank, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. The Northern Trust Bank Bring your financial future to us. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 16 ■t Big ideas come in all sizes... And First Minneapolis Leasing makes them profitable. if your customer has a big idea, tell us about it. We’ll put the idea to work . . . without tying up his investment capital. We’ve put together three potent leasing teams. People who can structure an innovative lease to meet virtually any need. People with years of experience. People who know the complex tax, accounting, ¥ https://fraser.stlouisfed.org Northwestern Banker, April 1978 Federal Reserve Bank of St. Louis legal and credit aspects of leasing. Our subsidiary, Matrix Leasing International, has offices in San Francisco, Los Angeles, New York, Chicago and Minneapolis. We’ve arranged leases for everything from computer terminals to power plants. Leases from $50,000 to $50,000,000... or more. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We’ll pay a fee to our correspondent banks when you refer your customers to us for leasing. You may also participate in your customers’ leases. Talk to Dick Parnell, 612/ 370-4692. First Minneapolis Leasing could make big ideas profitable. First ; Minneapolis The Committed Correspondent First National Bank of Minneapolis 120 South Sixth Street Northwestern Banker, April 1978 18 Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI— Bank Administration Institute BMA— Bank Marketing Association IBAA—Independent Bankers Association of America. NABW— National Association of Bank Women, Inc. RM A— Robert Morris Associates May 21-24 — ABA N ational Marketing Conference, Disneyland Hotel, Ana heim, Calif. May 21-24—ABA National Operations and Autom ation Conference, Peachtree Plaza Hotel, Atlanta. Apr. 5-7— National Association of Bank Directors 2nd Annual Convention, O’Hare Inn, Chicago. Apr. 8—AIB District 10 Vice President Workshop and Public Speaking Contest, Four Seasons Motor Inn, Colorado Springs, Col. May 22-24— North Dakota Bankers Associ ation 93rd Annual Convention, Ramada Inn, Minot. May 28-June 2— BMA School of Trust Business Development and Marketing, University of Colorado, Boulder. May 28-June 9— BMA Essentials of Bank Marketing Course, University of Colo rado, Boulder. May 29-30— AIB Annual Convention, Chicago. Apr. 9-12—Conference of State Bank Supervisors 77th Annual Convention, Hyatt Regency, San Francisco. Apr. 15—AIB District II Vice President Workshop and Public Speaking Contest, Concourse, Madison, Wise. May 21-27— NIB 19th Senior Bank Officer Seminar, Harvard Business School, Boston, Mass. June 1-3— Colorado Bankers Association 77th Annual Convention, Broadmoor Apr. 16-21—ABA Community Bank Chief Hotel, Colorado Springs. Executive Officer Program, The Wig June 4-6— Illinois Bankers Association wam, Litchfield Park, Ariz. Annual Convention, Peoria Hilton Hotel. Apr. 16-27—ABA National Commercial June 7-9— Nevada Bankers Association Lending School, University of Okla Annual Convention, The MGM Grand homa, Norman. Hotel, Reno. Apr. 26-28 — ABA Governing Council June 12-14— Minnesota Bankers Associa Meeting, The Greenbriar, White Sulphur tion 88th Annual Convention, Radisson Springs, W.V. Muehlebach, Bloomington. Apr. 30-May 2— Nebraska Bankers Associ June 14-16—Wyoming Bankers Associa ation Annual Conference, Omaha Hilton. tion Annual Convention, Jackson Lake Lodge, Moran. May 7-12—ABA National Commercial Lending Graduate School, University of June 18-21—Wisconsin Bankers Associa Oklahoma, Norman. tion Annual Convention, Pfister Hotel & Tower, Milwaukee. May 10-12—South Dakota Bankers Associ ation 86th annual Convention, Rush- July 8— District 7 AIB Leaders Conference, more Plaza Civic Center, Rapid City. MGM Grand Hotel, Reno. May 18-20— NABW Western and Rocky July 15— District 10 AIB Leaders Confer ence. Denver. Mountain Regional Conference, Century June 18-21—Wisconsin Bankers Associa Plaza, Los Angeles. SINCE 1919 UNDERWRITERS “ O,ST**IB0TORs • s s * A L L I cÄ rali Minnesota Ca,i No-Toll 800-328-4020 ^ ^ » e s ter„ Bank Bu„dmg Minneapolis, M ,„ „ esota Pilone: (612) 3 3 3 -3 4 7 5 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m s tion Annual Convention, Pfister Hotel & Tower, Milwaukee. July 8— District 7 AIB Leaders Conference, MGM Grand Hotel, Reno. July 15— District 10 AIB Leaders Confer ence, Denver. July 15— District 11 AIB Leaders Confer ence, Indianapolis, Ind. July 20-22— Iowa Independent Bankers Association 7th Annual Convention, The New Inn, Lake Okoboji. July 23-28—ABA National School of Bank Card Management, Northwestern Uni versity, Evanston, III. July 31-Aug. 12— BAI School of Bank Administration, Graduate Program, Uni versity of Wisconsin, Madison. Aug. 4-15— Northwest Intermediate Bank ing Schools, Lewis and Clark College, Portland, Ore. Aug. 6-18— Colorado Bankers Association Colorado School of Banking, University of Colorado, Boulder. Aug. 12-18— BMA Bank Management School for Marketing Managers, Univer sity of Wisconsin, Madison. Aug. 14-25—ABA National Graduate Trust School, Northwestern University, Evan ston, III. Aug. 17-20— Independent Bankers Assoc iation of Minnesota, 17th Annual Convention, Arrowwood Resort, Alex andria, Minn. Sept. 10-13—ABA Annual Bank Card Convention, Fairmount Hotel, Dallas. Sept. 10-15— RMA Loan Management Seminar, Indiana University, Blooming ton. Sept. 11-16— Nebraska Bankers Associa tion Basic School of Banking, Nebraska Center, Lincoln. Sept. 13-15— Association for Modern Banking in Illinois Annual Meeting, Continental Plaza, Chicago. Sept. 17-20— BAI 54th Annual Convention, Hilton Hotel, New York. Sept. 17-20— BMA Trust Marketing Work shop, Copley Plaza, Boston. Sept. 17-29—ABA National Instalment Credit School, Second Session, Univer sity of Oklahoma of Norman. Sept. 24-26—ABA National Personnel Conference, Denver Hilton, Denver. Sept. 24-26— Iowa Bankers Association 92nd Annual Convention, Hotel Fort Des Moines. Sept. 24-27— NABW 56th Annual Conven tion, Caesars Palace, Las Vegas. Sept. 25-27—ABA Secondary Mortgage Market Workshop, Chicago. Oct. 15-19— BMA 63rd Annual Convention, Palmer House, Chicago. Oct. 17-20— Independent Bankers Assoc iation of North Dakota, 11th Annual Convention, Kirkwood Motor Inn, Bismarck. Oct. 21-25—ABA Annual Convention, Honolulu, Hawaii. Oct. 22-26— Independent Bankers Assoc iation of America 12th Annual Seminar for Junior Bank Officers, Ball State University, Muncie, ind. Oct. 29-Nov. 2— BAI Bank EDP Audit Conference, San Francisco. Oct. 30-Nov. 4— Nebraska Bankers Assoc iation Advanced School of Banking, Overland Park, Kan. Nov. 5-8— RMA 54th Annual Convention, Dallas, Texas. Nov. 8-10—ABA Midcontinent Trust Con ference, Drake Hotel, Chicago. LeFebure Tel-Air System 1000 lets you expand without excavating your drive-up area. From the flawless styling of the kiosk to the overhead return and tim e-saving free carrier, LeFebure Tel-Air System 1000 is one of the finest drive-up systems available. It combines speed and simplicity for your customers. Tel-Air System 1000 can reduce installation and expansion costs because the carrier is transported overhead, and there's a turbo-com pressor in each kiosk that operates independently. 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Your LeFebure Sales Engineer can give you all the details. Convenient. Reliable. Overhead. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Division of Walter Kidde & Company, Inc. Cedar Rapids, Iowa 52406 20 ROMOTIONS and announce m ents have been made by the P following firms: A etna Business Credit, Inc., E a st H artford, Conn.: The creation of two e x e c u tiv e vice p re s id e n t p o s i tio n s a t th is co m m ercial f i nance company h as been a n nounced. Execu tives named to fill the positions are J a m e s T. V e rfu rth , co m J. T. VERFURTH m ercial fin an ce B. L. LAVERY J. L. WAREN operations, and Bernard L. Lavery, interm ediate term lending opera tions. Mr. V erfurth previously was senior vice president, eastern divi sion. M r. Lavery was senior vice president, commercial and industrial d iv isio n . A d d itio n a lly , J a c k L. W aren, head of the portfolio review departm ent, has been prom oted to senior vice president. Allison-Williams Company, M in neapolis, M inn.: I. D. Owen, who joined the company when it was founded in 1919, has been named chairm an em eritus. The appoint m ent follows a long career in the m u n ic ip a l a n d c o rp o ra te b o n d business, during which M r. Owen served as the com pany’s executive vice president, president and chair- I. D. OWEN D. H. OWEN Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis named are Char les A . Loop, m a rk e tin g a n d Lewis E. Jo h n son, operations. Mr. Loop, form erly director of m arketing in the firm ’s m id w est division office in Chicago, fills the C. A. LOOP n e w ly c r e a t e d position of vice president-m arketing. Mr. Johnson was prom oted from his position as m ountain states division m anager. The company m arkets a R. GILLIGAN R. C. TENGDIN complete package of design, engi neering, interior and construction m an. He shares the new title w ith W. m anagem ent services to financial J . Allison, one of the firm ’s institutions. founders. Named to succeed Mr. B lunt Ellis and Loewi Incor Owen as chairm an is Robert C. p o ra te d , C h icago a n d M ilw a u Tengdin, with the company since kee: Ronald Melvin, president of 1952 and formerly executive vice B lunt Ellis & Simmons, Incorpor president. Willy s P. Jones continues ated, and Gilbert H. Schubert, as president and chief executive. president of Loewi & Co., Incorpor Raym ond E. Gilligan and David H. ated, have announced an agreem ent Owen have been named executive in principle today for the m erger of vice presidents. the two firms to form B lunt Ellis and American International Group, Loew i In c o rp o ra te d w ith jo in t Inc., New York, N.Y.: William S. headquarters in Chicago and M il Mooney has been appointed adm in waukee. The company, which will be istrative vice president in addition to an affiliate of Loewi Financial his position as vice president-claim s. Companies, L td ., will become the Clifford E . Reedy has been elected largest regional investm ent secur president of American International itie s firm s e rv in g Illin o is a n d A djustm ent Company, Inc., newly- W isconsin. form ed s u b s id ia ry of A m e ric an International. The firm will function as an in d e p e n d e n t a d ju s tm e n t ABA Operations Survey organization and a t the outset will provide claim service prim arily to To Be Discussed in May Prelim inary results of the Am eri companies of American International Group. Mr. Reedy, who has over 30 can Bankers A ssociation’s (ABA) years experience in the claim field, National Operations and A utom a has been president of GAB Business tion Survey will be announced a t the 1978 N a tio n a l O p e ra tio n s a n d Services, Inc. A utom ation Conference, M ay 21-24, B ank Building Corporation, St. in A tlanta. Louis, Mo.: Patricia E. Fussner has The survey is conducted every been p ro m o te d three years by the A B A ’s operations to executive a s a n d a u to m a tio n d iv isio n . T he sistan t to the questionnaire has been sent to all chairm an, m ak banks w ith deposits over $500 ing her a member million as well as to a statified of the m anage random sample of about 4,500 banks m ent group. She w ith smaller deposit totals. joined the com Those interested in further infor pany in 1961 and m ation on either the Survey or the m o st re c e n tly 1978 N a tio n a l O p e ra tio n s a n d was special a s A utom ation Conference should con P. E. FUSSNER sistan t and sec tac t Arnold Kaplan, Operations and retary to Joseph A. Sm ith, chairm an A u to m a tio n D iv isio n , A m e ric an and chief executive officer. Bankers Association, 1120 Connecti B ank C onsultants of America, cut Ave., N .W ., W ashington, D.C. Denver, Colo: New vice presidents 20036. 21 What’s New NEW , coin sorter/counter for banks, savings and loans, A vending companies and other highvolum e m oney h a n d lin g firm s, allowing the operator to set the exact am ount of coins to be delivered to each bag, was announced recently by B randt, Inc. “ the file can provide orderly and easily accessible reference for tax paym ent evidence, for records of contributions, for medical bills and for m atters like utility, service, installm ent and other paym ents made by check.” Optional equipm ent includes an autom atic feed holding up to 19,000 dimes. An optim um loan of coins is autom atically regulated and m ain tained. Also available is a Model 946 printer to record coin totals, and a s e c u rity s ta n d in w hich b a g s mm hanging from the machine are \ o t i r ( '«««*«•!J<>il ( i K t i J i . locked. All B randt equipm ent is construc ted for precision, durability and long life. Machines are backed by service m provided through factory-trained specialists nationwide, who have immediate access to any replacement p art required. *s <!*«• Hosl For further information about the Model 936 and its capabilities, contact B randt, Inc., W atertown, W isconsin 53094. The firm is a leading m anufacturer of coin and Excellent display space is provid currency processing equipm ent, with nationwide sales and m anufacturing ed in three main areas of the graphic facilities serving users throughout design of the check file for an individual bank im print in the same the U .S. and Canada. bright blue as the registered Full Service Bank logo. Thus, the individual bank, the Full Service Bank organization and the American Bankers Association are all tied S A way of applying m erchandi together with the A B A ’s $4.1 million sing techniques to help Am eri national advertising program . Still c a ’s com m ercial b a n k s in th e further tying in for the additional multi-billion-dollar competition for power through unification are such personal checking accounts, the widely promoted copy themes as American Bankers Association has “ P ut your money where it does the recognized and endorsed the Full m ost” and “ No financial institution Service Bank Check File as an can help you and your community a ttr a c tiv e , d ig n ifie d an d u sefu l m ore.” means of holding onto cancelled For a free sample of the cancelled checks. These may be called into check file and for inquiries about service for some years as legally shipping and quantity prices, write: acceptable receipts for income tax A lbert C. W iniarski, Product M ana and bill paym ents. ger, Full Service Bank Productions, The file is shipped flat bu t easily Inc., P.O. Box 1098, Bethlehem. unfolds along clear creases into its Penna., 18016, or phone 215-258essential box-shape m easuring 8 3A ” 6101. long by 314 ” high by 2” wide. Colors are dark brown and sky blue on the white boxboard with a dull sheen. Microfilm Lamps Space is indicated for such filing ^ N O .FC S information as check dates and r-; Lots of: G.E. & Svl. Norelco num bers. 6-47 $4.29 $3.25 M anufactured for Full Service IT 48-95 3.63 3.00 Bank Productions, Inc., an affiliate N° 96-UP 3.43 2.95 of Christm as Club a Corporation, the We prepay any shipment over $100 00 net. Minimum order, $25.00 net. Write for special cancelled check file serves a num ber prices on other lamps. Your satisfaction guar of valuable purposes, according to anteed. Please save for future reference A lbert C. W iniarski, product m ana Sitter's s u p p l ie s , i n c . ger. P .O .B oxIO -Z 702 E. Washington St. Washington, Iowa 52353 “ As a great convenience for Ph. 319-653-2123 present bank custom ers,” he said, V a .m l V u ir ( ■»imiitlilaj ' !^ P W Ê m Ë M Ê ? r',mu-y The Model 936, scheduled for April production a t B randt head quarters, W atertow n, W ise., stops autom atically when the desired quantity of coins is reached. The operator-set bag stops make the machine particularly flexible and adaptable to any coin-counting operation. Controls are easily set, and the operator is free to perform other tasks while the 936 is sorting, counting and totaling up to 600 coins per m inute. Mixed coins from the hopper are handled in one smooth operation. The new B randt unit has a memory which always retains an accumulative total, and an in sta n ta neous electronic readout giving batch and accumulative figures. Backup mechanical registers by denomination add to the operator’s total control, according to the m anufacturer. The 936 is finished in a soft desert tan color to enhance a variety of setting. I t stands 20 inches deep, 19 inches wide and 25-14 inches high, and weighs only 115 pounds. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A fc s Northwestern Banker, April 1978 22 Our ideas have helped banks make financing possible for a frozen fish distributor who wanted to increase his catch, beefy feedlots, bushels of grain dealers, a whole range of appliance distributors, a successful idea sparked by an electronic game manufacturer. WeVe made it possible to shell out to peanut processors and we even helped distributor get rolling. o For all kinds o f borrowers, all kinds of banks, making growth-companies bankable is our business. Ifs good for your business. Our name is Collateral Control Corporation. Get to know us. In n o v a to rs , w ith c a p ita l ideas. Collateral Control Corporation Receivables Certification • Inventory Certification • Field Warehousing. Participation Leasing Offices in 36 financial centers. Call (800) 328-1434 or (612) 222-7792 for location nearest you. Banker, April 1978 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 The spring ag outlook A NORTHWESTERN BANKER Survey ONTINU ED high ag loan demand is expected to prevail throughout the spring m onths, according to responses from area bankers to the N orthwestern B anker ’s spring agricultural survey. Some improvement in cash flow has been noted by improved prices for grains and livestock, as well as various types of governm ent loans and subsidy paym ents. Ag banker participants in this latest survey report the following on current farm conditions and the outlook for the next few weeks. C W. E. Reigle, vice president, Dixon National Bank, Dixon, 111.: Our present loan deposit ratio is 57.6. This is higher than we have been in the past, largely due to the fact th a t we are carrying loans for last year’s produce and the grain has not been delivered because of tie-ups a t the river term inal. A large p art of this grain has been sold for January and February deliveries bu t as yet has not been delivered. We would anticipate th a t our farm loan demand for the next 60-90 days will be less than last year because of the anticipated pay back from undelivered grain. We are in a position to handle this demand and will be doing it all w ithout correspondent help. Our lending limit is sufficient to meet these demands. We do not see any paym ents because of SB A ’s involvement at this time. Planting intentions appear to be normal as far as averages of corn and beans are concerned. There has been very little effect in our immediate area because of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the farm strike and to my knowledge, we have no one actively taking part. Our current deposit total is $65,000,000 and Dixon is a comm unity of 18,000 people. C. N. Finson, president, National Bank of Monticello, 111.: We anticipate th a t our farm loan demand will increase during the next 60 to 90 days as farmers incur expenses for fuel, seed, fertilizer and other costs associated with the planting season. This demand m ight be offset by reductions in 1977 crop loans from sale of 1977 grain but we doubt if the reductions will be as great as the demand for advances. We are currently loaned to about 75% of deposits and expect this percentage to creep up 2 or 3% by June 1. Our bank expects to handle this demand except for some overlines exceeding our lending lim it. L ater in the year, we m ay have to sell some excess loans to correspondents and will probably utilize funds from the season loan program of Fed. Little SB A loan activity exists in our m arket area, and we do not expect any influence on either deposits or loans. Planting intentions for 1978 crop will not be Northwestern Banker. April 1978 24 taken a lot of fancy footwork to be able to keep up. We have received help from our correspondent banks and also have discounted through our Ag Credit Corporation. The SBA has not been helpful to our agricultural custom ers. Any requests seemed to be bogged down in paper work and the backlog a t the Des Moines office so th a t m ost farm ers are discouraged about even considering it. abnormal. A shift of some acreage from corn to soybeans may occur simply because production costs are lower. Farm ers generally will not comply with the USD A set-aside if the m arket price and loan price of corn stay close together, as they are now. The farm strike will have very little effect on 1978 plantings in our area. If a custom er of ours wished to participate in the strike and owned us money, we would not agree to finance annual paym ents and living costs above income projections unless the financial strength of the custom er would justify it. We have placed our emphasis in working with farm custom ers on trying to assist them in adjusting their operation to lower income, in paring costs and in attem pting to restore profitability. Jon E. Foley, vice president and agricultural representative, First National Bank, Creston, la.: Our demand for farm loans for the next 90 days will continue to increase for spring needs. Our ratio has been running in the 60% area and will continue there. We will be able to handle the demand for loans. We will be able to handle 98% of the loans in our bank; 2% will go outside as overline loans. SBA loans are helping pay down farm loan portfolio 40%. Planting intentions in our trade area are going to remain about the same. No m ajor change, only a small percentage more will be seeded down. USD A set-aside program will not have large participation in this area. Too m any farmers will not seed down 10% for nothing. The farm strike will not and does not mean much to many farmers in our area. Our farmers are selling grain as price dictates when they have paym ents due. Also, they are not holding livestock. James Lipton, president, Iola County State Bank, Ida Grove, la.: Farm ing intentions are normal. Little interest apparently is being shown the set-aside program at this tim e. Everybody is w aiting to see what the final details will be. Farm strike is not a factor in this area; few farmers even discuss it. I feel th a t the strike has received national attention because there w asn’t anything better for them to p u t on the TV and we have no feelings one way or the other about it except th a t some of the demands seem rather vague at the present time. Our loan demand has been very heavy and it has Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L. C. Pike, president, Farmers Savings Bank, Grundy Center, la.: We anticipate loan demand for farmers to be quite strong for the next 60-90 days; however, we do not expect loan to deposit ratios to change much during this period. We are between 73 to 75% loaned up and expect this ratio will remain steady. Good income from sale of hogs and cattle has helped pay off some loans and also has been a help in offsetting other income th at farmers would have had by now L c P(KE from sale of corn and beans. A large num ber of acres of our farm land is in seed corn. This is a cash crop and in m ost cases, pays out in December and May. Cash flow was helped w ith the December paym ent and income again will receive a boost from the second half paym ent th a t will come in May - ju st in time to help with the 1978 crop production expenses. Gross cash income from seed corn last year ran between $300-450 per acre. One of the saddest plights th a t our farmers are experiencing is the inability of our area elevators to move grain by rail. We are on the Rock Island Railroad, and because of the heavy winter snows, trains have not moved up and down our tracks for weeks. This, along with a car shortage, has plugged our elevators with grain, corn in particular, and has resulted in millions of dollars of loss income in our state for the farm ers and elevators alike. The apathy of our governm ent and the poor m anagem ent displayed by the owners of the railroads in connection with this problem perplexes the minds of all of us who have watched this situation deteriorate year after year. We feel we will be able to handle our local loan demand in 95% of the cases. Our bank is a member of Hawkeye Bancorporation, so any of our farm ers who need loans beyone our lending lim its can secure additional funding from another Hawkeye bank through our loan discount committee. Because of this unique situation, we do not have to go to our correspondent bank for overline help. A t this tim e I do not anticipate we will be overlining many of our agriculture loans. SBA disaster loans in our imm ediate area are negligible; am ounts will probably to tal less than $250,000. Money collected from disaster paym ents and loans has gone to pay for last year’s expenses. D isaster income or disaster loans has had little effect on the level of deposits for our bank. As near as we can tell, planting intentions for 1978 are near normal, w ith possibly a few more acres going to beans than in the past years. I t is too early to tell w hat effect the USD A set-aside program will have on our acreages. Our guess is th a t less th an 50% of our farmers will be participating. This m ay change as sign-up time rolls around, as many of the operators t realize they have to sign up to be eligible for any of the USD A farm program s unless they participate in the set-aside. I t looks like m ost of our livestock farmers and farm ers th a t grow seed corn or seed beans will not pay much attention to the program . There is a strong feeling locally th a t the present adm inistration is too consumer oriented; therefore, the attitu d e is “ the heck with being a p art of a lousy program .” v There has been very little activity or little talk in our area regarding the farm strike. We have not had any custom ers miss paying a loan off because of this activity. I believe some good has come from the farm strike in th a t it has been a good attention getter for the farmers. It is high tim e th a t the city people and our politicians wake up and realize th a t farmers have many 'r problems when they are forced to sell corn below $2 per bushel. Their problems are further compounded when they can’t deliver grain because of inadequate railroad services. We are firm believers th a t if we don’t have an economically healthy agriculture, the banks, business people, factory workers, and yes, the whole country will suffer financially. Some of our strong consumer advocates need to wake up soon and learn this lesson. Taunce H. Mathiason, president, The National Bank of Washington, la.: We do not expect farm loan demand to be significantly greater in the next three m onths than in comparable periods of p ast years. This prediction is based on two assum ptions. F irst, we expect hog prices to remain in the $40 range during this period, which should offset excessive borrowing needs. Second, we anticipate a late, wet spring, which should increase the already prevalent intention to plant j h . MATHIASON more soybeans and less corn than last year. Our bank has experienced a 70% loan to deposit ratio for the p ast several m onths. We expect this ratio to remain in this range for the balance of the year. Through participation arrangem ents with associate banks, our ability to meet the needs of placing overline credit will remain unimpaired. We have found an increased utilization of SB A, FH A and Federal Land Bank long term financing to be advantageous in restructuring short term debt in certain cases. W ith the anticipated increase in long term ratio, we feel it in the best interest of the bank and the custom er to restructure those lines with a disproportioned short to long term debt ratio at this time. We find our farm custom ers feel the USDA set-aside program has little appeal. The m ajority indicate no intention of participation in the program . The same feelings apply to the farm strike. Lee A. Sorenson, assistant vice president and ag finance representative, First Northwestern Bank, Thief River Falls, Minn.: Our demand for farm loans has been quite high due to low farm income and the need for refinancing. I ’m sure this dem and will continue, with the peak yet 60-90 days away. Our loan to deposit ratio https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 has been in the upper 70s. We will try to keep it there by selling as much of our loan portfolio as necessary. M ost of this will be handled through a corporation owned subsidiary. We will have our normal am ount of overlines but m ost will be created by this excessive demand. We have a few farmers involved in the strike m ovem ent but I seriously doubt if any will be on strike come seeding time. Planting intentions appear to be normal and there has been very little indication of participation in the set-aside a t this stage. Elwood C. Phelps, assistant vice president and agricultural representative, First Northwestern Bank, Redwood Falls, Minn.: Excellent crops in 1977 have helped improve the attitu d e of area farmers after three very disappointing years. The good operators who are able to keep their debts under control are showing good profits while others are experiencing extremely high costs of production because of high interest load, high machinery investm ent, and high land costs. We have been able to m aintain a desirable loan-to-deposit ratio over the last three to four years, and expect th a t this ratio will still remain desirable although somewhat higher with the spring and summer loan demands. Our funds will be adequate to take care of our custom ers except where lending limits require us to seek overlines. Planting intentions in our area are very unsettled at this point. We feel they will be approxim ately normal, as there are m any alternatives available in this area. Therefore, the farm program will not be widely accepted in this area. The farm strike really is not a factor here, as there are m any sym pathizers but very limited active support by area farmers. Paul Kosch, president, First National Bank, Da I Nebraska ^ % vid C ity, N ebr.: We expect our farm loan demand in the next 60 to 90 days to be ju st a little more than average. Our loan to deposit ratio at this time is surprisingly low, and we don’t expect it to increase m uch over 10% between now and harvest time. The voluntary 10% reduction on feed grain plantings, which I think about 55% of our farm ers will use, will tend to cut money needs some. While visiting with local farmers I gathered th a t m any of them do not expect to use as much fertilizer this year as normal. We have been able to handle the demand w ithout any problem. We will not need correspondent help, as we don’t anticipate any over lines. SBA is not affecting our deposits or loans at this time. We have had some pay downs from Farm ers H om e A d m in is tra tio n th ro u g h th e ir lo n g -te rm refinancing. As mentioned above, the planting intents will be normal w ith the exception of the 10% voluntary reduction which farmers need to follow in order to Northwestern Banker, April 1978 26 qualify for the Commodity Credit loan and any of the benefits which m ight develop from farm program s. In our particular areas, the farm ers are not hurting too badly. The prices are not w hat they should be, bu t to offset this situation we had a very good and more than average crops last year. The additional production per acre on dryland more than offsets the reduction in prices when it comes to total income. The fact th a t we had sufficient m oisture made it possible for the farmers who irrigate to cut costs by not having to use as much fuel. In reviewing the farm strike, I would say th a t locally we, of course, have farm custom ers who are sym pathetic tow ards the strike. B ut I can’t say th a t anyone here is taking a real active p a rt in the strike. We don’t have too many cattle feeders in the area. But, as you know, cattle prices have been good, and the cattle feeders are m aking a little profit. Hog prices are also very good and we are urging our hog raisers to get them off to m arket ju st as quick as they are ready, as we feel there m ight be some downward adjustm ent. We are going to have a late spring, and, needless to say, it is going to be wet. B ut we are not complaining. It is a lot better than dust. L. J. Titus, president, First National Bank, Holdrege, Nebr.: Holdrege, located in South Central N ebraska, has a population of 6,000. The area crops are predom inantly irrigated corn. We have had good crops and have not been affected by the drought. Our bank deposits are $51,800,000, with loans being 64% of this total. E ighty per cent of our loans are agricultural. We expect a strong loan demand from our farmers this spring and we are in a better |_ G. TITUS position to m eet this demand than we were a year ago. Our loans then were 73% of our deposits and reached a high of 78% by the fall of the year. L ast year at this time, very little 1976 corn had been sold and a big per cent of this corn was not sold until December when the price got up to the $2 level locally. This year we have seen a lot of corn sold instead of paying commercial storage or p u ttin g it under the governm ent loan program . We have been able to handle the loan dem and locally w ithout outside help and only use our correspondent bank for overlines. Farm planting in this area will be near normal. We are getting mixed reactions to the U .S .D .A . set-aside program . Our livestock feeders who feed their corn will Banker, April 1978 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis not participate. The other farm ers are weighing the benefits of the price support loans and the disaster protection against being able to plant all of their acres. I expect m any will w ant this protection. B ut, if the corn price looks like it will be in the $2 range this fall, it could lower the participation considerably. The farm ers in our area are sym pathetic to the farm strike, b u t I do not know of any who would not plant their crops. If they do wish to take p a rt and owe us money, we would have to look at each individual case. A lot depends on w hat the farm ers do in the southern p art of the country. Alm ost all of our farm ers have shown a reduction in net w orth on their financial statem ents and higher prices are definitely a m ust. James I. Black, president, Cones State Bank, Pierce, Nebr.: We expect loan dem and to be about the same as last year for the next 60 to 90 days. The loan deposit ratio is down about 3% due to an increase in deposits, not a decrease in loans. We anticipate being able to handle these loans w ithout correspondent help for liquidity purposes. Our excess overlines are about the same as last year. Charles W. Ekstrum, presi dent, First National Bank, Philip, S.D.: This bank does anticipate an increased farm loan dem and in the next 60 to 90 days. This demand is basically because of the m ost severe w inter this area has seen in some years. This area is heavy in livestock and, therefore, because of the severe winter we shall need to purchase additional feed, which will be a main item for increase. Also, because of the heavy snowfall our ranchers and farmers have had to use trem endous am ounts of fuel to take care of their livestock and this is also an additional expense. This, topped w ith the inflation on repairs, fuel and other farm supplies, will increase our dem and from 10 to 20% over a normal year. Our present loan to deposit ratio is running approxim ately 60 %, and we anticipate going to 67 to 70% by mid-summ er. Our bank is also anticipating and receiving a heavier loan dem and because of the severe drought th a t our area suffered in 1975 and 1976, where a large num ber of our cattle herds were liquidated. We anticipate w ith the good carry-over of m oisture from 1977 th a t there will be some restocking of ranch units. We also have a loan demand from the lack of profit in the livestock industry from the past few years. This, coupled w ith the severe drop in w inter wheat prices th a t caused disastrous losses in th a t industry, has increased our loan demand significantly. We will have a larger increase in dem and th an normal b u t p art of this is softened by the fact th a t we are receiving considerable repaym ents from disaster loans by the Farm ers Home A dm inistration. Approxim ately 10 to 15% of our total outstanding farm loans have been paid down through disaster loans. We anticipate another 3% to be repaid in the future. This will help us to handle a portion of an increased loan dem and, the balance will be handled mainly through our own resources liquidating governm ent bonds. A t the present tim e we are not anticipating h increasing our correspondent overlines in business ventures, bu t this is completely unrelated to the agriculture demand. We are also considering the sale of real estate and SBA loans to keep our loans and deposit ratio favorable to our policy. Our area as far as farm ing is concerned is mainly winter wheat and th a t planting has already been done. v The plantings appear to be slightly below a year ago but above the historical planting for the area. It appears th a t farm ers who are close to the USD A setaside program lim its will comply w ith the program . The farmers who have expanded have no way of m eeting these set-aside program lim its and will not participate; this will be the larger farmers. A t the present time it appears we have a small num ber of our custom ers participating in the farm strike, but we have a large num ber of them sym pathetic. We have not heard any one seriously considering the no plant portion of the farm strike; however it is a long time before planting season and this could change. As to the question of how we will handle an individual farm er who owes us money and tends to participate in the strike to full extent, this question has not been.posed to us, bu t if it is we will have to approach it on an individual basis. We will give consideration to anyone who has the equity to stand any possible losses resulting from a no plant. We will not take undue risk with depositors’ money. Our bank has $24 million in assets, total agricultural loans exceeding $8 million, and total loans exceeding $13 Vi million. We are in a town of 1,000 population and have custom ers scattered in a 75 mile circle around Philip. Tom Baxter, vice president, First National Bank, Watertown, S.D.: W ith good m oisture outlook, I expect a strong loan dem and both for operating loans and for livestock purchases. Our pastures should come back if we get m o is tu re . T he m an y p a s tu r e s which were diverted last year and no grazing was allowed on them will c re a te a s tro n g d e m a n d for ■livestock. Our present loan to deposit ratio is 66 %, about normal for our bank this tim e of year. We do not expect any problem in j BAXTER handling this loan demand. How ever, we m ay have to use the services of a correspondent bank for the purpose of selling overlines to accommodate our custom ers whose credit needs exceed our legal lending limits. F arm ers’ planting intentions are not yet clear in our area. I do not believe m ost farm ers will sign up on the farm program in its present form. I t is not a good program b u t it m ay be improved upon so th a t the farmers will sign up before planting. The farm strike in our area does not seem to be a big issue. Generally everyone is in sym pathy with it and recognizes the seriousness of the farm ers’ cost price squeeze. David D. Johnsen, assistant cashier and ag rep, First National Bank of Valley City, N.D.: During the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 North Dakota next 60-90 day period we expect strong operating loan demand, likely equal to last year. We are presently at a 66-68% loan/deposit ratio and we anticipate a peak ratio of 80-82% during the summ er m onths. We expect we will be able to handle this strong demand with our seasonal Fed borrowing. W heat and barley deficiency . 's m J l x paym ents have helped our cu st D. D. JOHNSEN omers pay down loans, although this would account for less than 10% of an average operator’s debt repaym ent. Their planting intentions appear to be normal to slightly below normal, w ith some indications of alternatives, especially crops, such as beans and sunflowers. The set-aside program appears to have little effect on total crop acres and participation at this time in our area is at best, poor. The farm strike appears to have considerable sym pathy but no real effect has been seen in our area. We have tried wherever possible to accommodate a striking farmer to a reasonable point. Daniel J. Lessard, president, Walsh County Bank and Trust Co., Grafton, N.D.: We anticipate a very active farm loan demand in the next 60-90 days when farmers will be getting ready to s ta rt planting. A t the present time our loan to deposit ratio is running about 70 % and we anticipate th a t it will be close to 75% after the spring demand runs its course. We expect to be able to handle this demand. However, we will be selling some of these loans to our correspondent banks or selling p a rtic ip a tio n s to o th e r b a n k s an d /o r other lending institutions if the demand goes higher. No problems are expected in overlines because of our lending limit, only due to the excess demand. The im pact of SBA or other paym ents in our area helping deposits and paydown on loans is negligible. It is a little early to tell, however, it appears th a t a good num ber of our farm ers will be participating in the governm ent farm program . The result will be about a 20% reduction in planting intentions. We don’t see or hear of anyone cutting down 50 %. Quite a few of our farm ers are active in the farm strike m ovement, American A gricultural M ovement, and of course some of them do owe us money. We feel th a t each case will be taken on a case-by-case basis, and we hope to be able to support these people and th a t the picture of agriculture will improve. Northwestern Banker, April 1978 28 flows based upon current commodity prices and we have been busy counseling these people and taking a little extra time to explain their individual financial pictures to them . Mote restructuring of debt has been necessary than in the past few years. R. J . K untz, assistant vice president, F irst National Bank, Havre, M ont.: H avre is a comm un ity of approxim ately 14,000 people located 40 miles south of the Canadian border in northcentral M ontana. Our area is heavily dependent on its agricultural base which consists mainly of dryland grain farm ing and cow/calf ranching operations. The F irst National is the largest of three banks in town w ith roughly $36 million in deposits and $27 million in loans, of which $8 million represents direct ag production loans. Our loan to deposit ratio has been running from 70 - 75%, b u t we get much tighter during the summer m onths which represents our peak borrowing season. L oan/deposit ratios of 85 - 90% during the summer also cause liquidity problems th a t have been relieved in the p ast with participations to correspondent banks. Regarding our ag loan demand, we expect it to continue to rise throughout the next 60 - 90 days as production costs spiral. We intend to handle our established custom ers for any reasonable requests and don’t really anticipate any m ajor problems in doing so. In the past we have been able to sell packages of ag credits to correspondent banks w ithout any difficulty. Any new custom er requests are being very carefully analyzed for adequate m anagem ent and cash flow before we take them on. As w ith other sections of the country, sym pathy with the farm strike is prevalent in our area. Poor weather conditions this w inter have helped make it easier for farmers and ranchers to be “ on strike’’ in this area. As a result, actual participation in the strike because of withholding sales, etc. has been somewhat hard to measure. Individual custom ers of this bank with strike intentions are being handled on a case by case basis. Some of them simply are not in a position to withhold produce from the m arket. Planting intentions appear to be normal in our area. Normal w inter wheat planting took place because of the confusion surrounding the set-aside program . Quite frankly, farmers in our area appear to be skeptical of any governm ent-initiated program s. Additionally, this is wheat country and our farmers really don’t have any viable production alternatives. Right now the attitu d e up here appears to be one of “business as usual’’ regarding production. The renewal process for our ag custom ers has been a long and involved process this year. By far the m ajority of our custom ers are showing negative annual cash VJ Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Robert L. Reiquam, president, F irst N ational B ank in Miles City, M ont.: W ith farm and ranch loans normally constituting about 40 % of this b ank’s total loan volume, and with a loan to deposit ratio flu c tu a tin g th ro u g h th e y e a r between 75 and 79%, we do not anticipate any substantial increase in the next 90-day period. A t the present time we have some decrease anticipated from the sale of calves wintered, but then we will see the loan demand pick back up and R. L. REIQUAM m aintain itself. We are also anticipating some decrease at the end of this quarter and the early p art of next from Farm ers Home A dm inistration second m ortgage refinancing. It is anticipated th a t we will be able to handle the loan demand we have this spring and, in fact, we are projecting a need for additional agricultural loans to fill our portfolio. The FH A refinancing has been considerable and, added to the long-term financing from insurance companies and Federal Land Bank loans, will bring our total loan portfolio about 20% lower than a year ago when all com m itm ents are fulfilled. W ith a legal loaning limit approaching a half million dollars (without using Exception 7) we do not anticipate the need for participation with other banks on overlines, and we believe we will have ample room to handle operating loans as requested. The SB A has not been noticed in this area, and I am only aware of one loan in which they have participated. They have not been eager for these, and it has been our feeling th a t they were not able to handle them on a very knowledgeable basis. The im pact of Farm ers Home A dm inistration has been very noticeable on loans th a t had deteriorated to the point where a commercial lender could no longer stay with them . The use of second m ortgages has provided new funds and given these people some additional life, b u t I am very concerned th a t it is only prolonging the inevitable, and will further erode the equity these people have left. Farm planting intentions for wheat are considerably above normal as a total for southeastern M ontana, because of the enormous acreage brought under cultivation in the last four years. W ith the good fall m oisture and the heavy snow pack, throughout eastern M ontana, m any farm ers will be tem pted to recrop, where before they had intended to sum m er fallow, and this will certainly increase the wheat acreage planted. M ost of the larger units intend to stay out of the farm program , due to the restrictions imposed on paym ents, and I am not anticipating any reduction in planting from this farm program . I t would appear a t this time th a t the smaller family farm will probably stay in the program , but overall, I do not anticipate much reduction in production because of the program . Our immediate area will be w ithout its main irrigated 29 Keeping checks from feeling lost, returned, or rejected. C ontinental Bank’s check processing excep tion rate is consistently low er th an national bank averages. Take lost item s for exam ple. Last year our free and lost item rate p er 100,000 checks proc essed w as only 13, w hile the national average w as 29? P retty good. But w e r e alw ays finding w ays to get b e tt e r ... this year our rate dropped to only 3 lost items, while the national average climbed to 32f T h at’s becau se our people never stop working to minimize annoying rejects, retu rn s and lost items. And this m eans our correspondents save money by spending a lot less time inquiring about problem s. loin the C ontinental correspondents w ho enjoy the advantages of our check processing service. Call John Tingleff at (312) 828-2191 to find out w hy it’s the b est in the business. ^N a tio n a l fig u re s a n ; ta k e n w ith p e rm iss io n from th e 1975 a n d 1979 B ank A d m in istra tio n S u rv e y s of the; C h e c k C o lle c tio n S y stem . C o n tin e n ta l B ank fig u re s a re as s u b m itte d to th e S u rv e y s. W e’ll find a way. C O N T IN E N T A L B A N K 231 SOUTH LASALLE STREET, CHICAGO, IL 60693 Continental Illinois National Bank and Trust Company of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 30 cash crop, which was sugar beets in the past, as Holly Sugar has restricted its production in this area, and so our irrigated farm ers will be faced with finding alternative crops. A t this point it looks as if m ost of them will be going w ith corn, and a considerable increase in alfalfa hay production. Some are talking beans, and there will also be an increase in small grain crops, particularly feed grains. This area has been very hard hit with the winter, some of the deepest snowfall on record, and also staying on longer than in recent history. This had depleted already weak feed supplies, and m any of the area’s producers will be looking at feed crops to restore this level of feed. Livestock losses in this area are going to be very heavy, with both sheep and cattle perishing in the w inter storm s, and m any of the losses yet to come as we dig out from under the snowbanks. There will be a light calf crop, due to this storm , and we would anticipate a poor breeding response on those animals th a t m ight calve. The economic condition of this area’s farm ers and ranchers is not good, as evidenced by the trem endous increase in Federal Land Bank loans, the m ajority of which have been refinancing. W hen you add to this the activity created at the Farm ers Home A dm inistration offices and the general comm ents of agricultural lenders in this area, it points to a very critical situation. Businessm en in the towns have been feeling the impact of this all w inter and will certainly notice it on into the summ er m onths. Looking at it from the -brighter side, we do have adequate soil m oisture from last fall and have had a trem endous snow cover which will provide good stock w ater and ample irrigation w ater. Cattle prices have been climbing and our feeders are going to show a profit for their w inter’s work. Sheep prices are at their highest level in memory and m any people are looking to build back their sheep num bers if they can control the coyotes. A dversity is a way of life for eastern M ontana farmers and ranchers, but there is little doubt b u t w hat we »will see some different faces on these units within the next three years. Paul L. Rice, president and chairman, First National Bank, Loveland, Colo.: I t appears to us th a t farm loan d em an d will rem a in re la tiv e ly normal, although there is some bulge in cattle loans due to increased cattle values and fairly strong num bers. SBA is not a factor relative to our farm custom ers. We participate w ith SBA in one loan, th a t of a dairy production loan. Perhaps it is us, bu t to get inform ation from SBA relative to farm loans seems to P. L. RICE be difficult. Planting intentions appear to be normal, w ith about Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15% increase in sugar beet acreage. The set-aside program will probably have little effect in this imm ediate area. We have no borrowing custom ers active in the farm strike. Wyoming Kenneth C. Naramore, president, Stockmens Bank and Trust Co., Gillette, Wyo.: We anticipate farm loan demand for the next 60 to 90 days to be near normal. Cattle prices are showing considerable strength, and if this continues, a num ber of our custom ers will be selling cattle. Some have indicated they plan to sell cows when the price reaches at least $400 per head. We feel they will perhaps sell pairs up in the $450 range. Farm planting intentions are K. C. NARAMORE about normal. The effect of the USD A set-aside program in this area is small. This is not an area th a t depends on grain crops as a m ainstay of the economy. The farm strike has had very little effect on us. The vast m ajority of the people supporting the farm strike are w heat farm ers. Few people in this area rely heavily on their wheat crop. None of our custom ers are participating in the strike. Our loan deposit ratio has been running about 70 %. We will experience in the next 60 days a reduction or runoff in deposits and an increased loan dem and, and we will probably be up around 75% loaned by June 1. We should be able to handle the credit needs of our custom ers w ithout selling loans or participations. Our bank does not handle SBA loans because of difficulties we have had w ith legal counsel a t the state SBA office. Dean M. Bartels, president, The First National Bank, Worland, Wyo.: We anticipate farm loan demand to be about the same as last year, with possibly a slight softening tow ards buying more equipm ent. Our loan deposit ratio has been hovering around 67 %. However, we anticipate th a t it will increase to 75 or 76% when the spring dem and runs its course. We anticipate being able to handle this dem and, although it will require some help from correspondent banks. M ost of this help will be needed because of overlines exceeding our legal lending limit. Our planting intentions remain stable in the sugar beet area. However, the m alting barley plantings may be reduced because ample satisfactory contracts have not been awarded. Some of this acreage will undoubtedly be planted to edible beans. We anticipate little effect of the set-aside program in our area. □ 31 W e’ll H e lp YOUR GOOD CUSTOM ERS m when YOUR requirements can’t meet THEIRS . . . if you’ll RECOMMEND W E ST E R N CAPITAL CO RPO RATIO N f for personal, confidential loan brokering TO CONVERT SHORT TERM DEBT TO LONG TERM LOANS FOR Farm Purchasing • Leasing • Refinancing 'I— W ESTERN CAPITAL CORPORATION WESTERN CAPITAL BUILDING • 3035 HARNEY • OMAHA, NEBR. 68131 Specialists in Loan Analysis, Packaging & Placement NEBRASKA 1-800-642-9390 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOLL FREE OUTSIDE NEBRASKA 1-800-228-2770 Northwestern Banker, April 1978 NEW OFFICERS—Is t v.p. Raymond D. Campbell; treas. Don F. Kirchner; 2nd v.p. Thomas F. Böiger, and pres. Ivan D. Fugate Independent Bankers Adopt Five Year Plan; Elect Colorado Banker By MALCOLM FREELAND Publisher H E Independent Bankers Assoc iation of America decided to T evaluate its own structure and develop a “ five -year action plan” for possible reorganization in action taken a t the 48th annual convention at the Diplomat Hotel here March 6- 8 . The IB A A e x e c u tiv e council approved the hiring of Dr. Robert F. Taylor, director of The M anagem ent Center at the College of St. Thom as, S t. P a u l, M in n ., to develop recommendations for the organiza tion, position responsibilities and geographical locations of the staff of the IBAA. Dr. Taylor, a former staff member of A rthur D. Little C o., said this would be done by analyzing data collected from a poll of the 7,300 member banks and through inter views with staff and outside sources. The study, to be completed in six m onths, will result in a five-year action program to recommend to the governing bodies of IBAA. Some 2,200 independent bankers and their spouses attended the convention. Next year the 7,300member bank association will meet Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M arch 4-8 at the Hilton Hotel in New Orleans, La. New Officers Advanced to IBAA president at the final convention session was Ivan D. Fugate, board chairm an and president of W estern National Bank in D en v er, Colo. M r. F u g a te succeeds Edw ard A. Trautz, presi dent of E ast Lansing (Michigan) State Bank, who presided at the general sessions. The new first vice president is Raymond D. Campbell, president and chief executive officer of Oberlin (Ohio) Savings Bank Company. Elected second vice president was Thomas F. Bolger, president and chief executive officer of M cHenry (Illinois) State Bank, and the new treasurer is Don F. Kirchner, board chairm an and president of Peoples T r u s t an d S a v in g s B a n k of Riverside, la. Mr. Kirchner succeeds Don R. O strand, vice president, F irst National Bank of Omaha, Neb. In Evasion of Branching o th e r c o n v e n tio n a c tio n , delegates ratified the association’s cooperation in challenging “the m ost open and obvious evasion of state b ra n c h in g la w s ” by M ich ig an National Corporation, a large m ulti bank holding company based in D etroit. Michigan National has e s ta b lis h e d w h a t it calls th e “ Accommodation Transaction Ser vice” (ATS) network through which deposits are received and checks paid at any of M NC’s 16 banks and 180 offices for any account at any MNC bank. The convention also ratified the following IBAA legal actions: —Challenging the regulation of the Comptroller of the Currency regarding sale of credit life insurance now pending in the federal court in the D istrict of Columbia. —Challenging federal and state agencies perm itting credit union share draft program s and EFTS activities. —Challenging the regulation of the Federal Home Loan Bank Board perm itting federal s&ls to engage in banking by use of EFT S, a suit now “Some people thought we were a little extravagant to remodel our 21-year-old building- -until they saw the results!’ “The bottom line is where it counts- O ur growth since the remodeling of our bank has been very strong” Richard E. Sitzer, President Lee Savings Bank Lee, Massachusetts “O ur present Lee Savings B a n k building was constructed in 1954. Its pure classic exterior design is as attractive today as the day it was com pleted. T h e in te rio r, how ever, had becom e o u td a te d ... b o th aesthetically and functionally. “T h a t’s w hen we tu rn e d to B an k B uilding C o rp o ratio n . T h ey - probed an d analyzed our business to d e te rm in e our future people, eq u ip m en t and space requirem ents, “T h e result is a n in te rio r th at not only beautifully com plem ents our exterior design, but m o re im portantly it accom m odates our business developm ent in the future and en h an ces our b ottom line, “W h en we decided recently to build a b ra n c h in Stockridge, we d id n ’t consider.any firm o th er th a n B an k B uilding, W h en you’ve got a good thing going, you d o n ’t dro p it.” OFFICES: St. Louis, Washington, D.C.; Hartford, Conn.; Chicago, Atlanta, Dallas, Denver, San Francisco https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Building Corporation 4 / W e ’ll b u ild y o u a business. B a n k B u ild in g C o rp o ra tio n 1130 H a m p to n Ave. St. Louis, M O 6 3 1 3 9 T e le p h o n e : (314) 6 4 7-3800 Please send information about how you can help build my business. N am e Title . Firm _ Address State _______ Zip 34 IOWA HOSPITALITY— MB Pres. Gordon Mennen, pres., LeMars Sav. Bk.; Terry Mennen; Diane Gibbs, secy., MB; Richard Berglund, e.v.p., MB; Mary Alice and Keith Campbell, IBAA state dir., and pres., Citizens St. Bk., Sheldon. RIGHT—Vera and Ben Eilders, sr. v.p., Bankers Tr. Co., Des Moines. pending in the federal court in the D istrict of Columbia. —Seeking rescission of operating circulars perm itting th rift organiza tions direct access to bank clearance system s. —Supporting the challenge to the activities of securities brokerage firms which am ount to branch banking. Paperwork Burden Bank regulatory excesses appear ed high on the list of priority issues among convention delegates. One resolution called for better coordina tion among the three federal banking agencies to end “confusion, conflict, duplication, overlap and endless forms and rep o rts.” In another resolution, the association urged Congress to establish a national commission to review fully the “ g ro w th , pow er an d lack of responsiveness of the federal agency stru c tu re .” Congress was also asked to reassert oversight and control over the “ apparently unm anageable federal agency stru ctu re.” In a related resolution, delegates called attention to the paperwork burden which has reached crisis proportion in the business and banking world. “ Ironically, the trend runs counter to the stated intention of the President to reduce the volume of governm ent regula tio n s,” the resolution stated. Commenting on the so-called “ Safe Banking Bill” (H.R. 9600), IBAA said it supports carefully considered, necessary changes which would improve the current system . “ However, we feel th a t endlessly drafting new laws rather than enforcing present laws is the wrong approach,” IBAA said. President Trautz reaffirmed AsNorthwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis so c ia tio n o p p o s itio n to in te r e s t paym ents on demand money. Citing IBAA action in the p ast year against the controversial proposal to take n e g o tia b le o rd e r of w ith d ra w a l accounts nationwide, he told the bankers, “ In the face of formidable forces p u s h in g for n a tio n w id e N O W s, IB A A te s tifie d before Congress th a t the cost of such accounts would be borne largely by the average consumer and small b an k —the m ajority of the nation’s banks and consum ers.” Resolutions In other convention resolutions IBAA: —Resolved to continue its support of interest rate controls on savings and CDs and removal of the favored rate which th rift institutions enjoy in those states where they have gained bank-like powers. —Contended th a t depository in stitutions th a t are perm itted by law to offer demand accounts should have nondiscrim inatory access into electronic fund transfer system s at n o n d isc rim in a to ry r a te s w ith o u t re g a rd to th e size of th e s e institutions. The association recom mended th a t state laws prevail over federal statu tes or regulations. —Expressed concern about cur rent proposals to reorganize the U .S. D epartm ent of Agriculture, suggest ed by the A dm inistration’s Reorgan ization Study Group. “ These propo sals would be the first step in the departm ent’s loss of cabinet s ta tu s ,” the resolution stated. IBA A , which is principally composed of rural banks, supported the concept of a strengthened USDA “whose prim ary purposes would be to assure a fair return for agricultural production and development of rural communi tie s.” —Opposed creation of a central liquidity facility for credit unions “because it would encourage u n sound liquidity m anagem ent by credit unions.” IBAA said credit unions have expanded their func tions with or w ithout legal authority, to the point where these institutions m ust address them selves to the problem of liquidity. “ IBAA believes the creation of a central liquidity facility is prem ature and tends to validate and encourage credit unions to expand their powers and further invade the field of commercial banking,” the resolution stated. —Urged Congress and the Presi dent to give a priority position among the nation’s issues to the m aintenance of agricultural prices in relative balance with other segm ents of the economy. “ A t present levels, farm ers are in a loss position on wheat, com and other feed g rain s,” IBAA said. “ I t is im perative th a t th e U .S . g o v e rn m e n t p u t an adequate support price under basic crop prices.” —Called upon the A dm inistration and Congress to take whatever action is necessary to insure the American farmer free and unhinder ed access to world m arkets. —Recommended th a t Farm ers H om e A d m in is tra tio n lo an s be raised as follows: On farm ownership loans, to $200,000 on direct and insured loans and to $300,000 on guaranteed loans; on farm operating loans, to $100,000 on direct loans and to $200,000 on guaranteed loans. The convention delegates also reaffirmed a num ber of positions taken at prior IBAA conventions. IBAA resolved to: MONTANA Ind. Bkrs. executive secretary, John Scully of Bozeman, Robert Sipple, adm. v.p., American Nat’l Bk. & Tr., St. Paul, and R. R. Bartschi, v.p., First St. Bk., Shelby, Mont. RIGHT—American of St. Paul hospitality room finds Mr. and Mrs. Don Johnson, v.p., and Mr. and Mrs. Bob Jacobson, v.p. —Oppose legislation which would perm it the further geographical expansion of branch banking and supported all legislation, rulings and interpretations which would require federally-chartered financial in stitu tions to comply w ith state branching laws applicable to each type of institution. —R esist vigorously attem p ts by federal banking agencies to preem pt state laws regulating insurance agencies or to interfere with private agencies on bank premises which operate in compliance with state law. — C o n tin u e e ffo rts to o b ta in am endm ents to the Internal Revenue Code which would prohibit m ulti bank holding companies from using capital stock exchanges as a means of expansion. —Seek an am endm ent to the Bank Holding Company Act th a t would bring it into conformity with the same controls applying to branching. Such an amendm ent would prohibit holding company expansion in any state having no legislation on the subject until the state legislature determined by specific enabling legislation the extent to which holding company operations would be perm itted to expand within the s ta te . A n e x c e p tio n for sm all one-bank holding companies would be included. —Seek an am endm ent to federal law which would bring federal s&ls into conformity w ith state control of branching, as in banking. FD IC Survey A t a panel discussion on federal legislation, Senate m inority staff member Anthony Cluff warned th a t the recent release of raw d ata from a special survey the FD IC conducted of the nation’s 14,000 commercial b a n k s lends its e lf to p o ssib le m isinterpretation. “ It is incum bent upon commercial banks to flesh out the survey,” M r. Cluff told the banking audience. “The raw data don’t tell the whole sto ry .” Although arm chair analysis of the statistics indicated th a t 92% of the 4,500 banks which reported th a t they allowed insider overdrafts had made a t least one a t a zero rate of interest, Mr. Cluff stressed th a t additional interpretation is needed, since there are frequently extenuat ing circum stances. The survey was also is o la tin g a “ w o rst c a s e ” situation, M r. Cluff noted, which was not representative of a crosssection of the banking comm unity. He speculated, however, th a t the figures could breathe new life into the stalled Safe Banking Act. Bank consultant Alex Sheshunoff, president of Sheshunoff and Co., A ustin, Texas, called for “ fairness in pricing bank services.” “ First, banks should charge at least w hat it costs to provide the service, plus an appropriate m argin of pro fit,” Mr. Sheshunoff said. “ Second, the custom er who uses the service should be the one to pay for i t.” For example, the speaker said, the cost of processing a “ hot check” should be borne by the hot check writer, not the b ank’s borrowers. “ All too often the costs of free or underpriced services are reflected in higher interest rates for borrowers or low er y ield s to s a v e r s ,” M r. Sheshunoff said. S h e sh u n o ff a n d Co.,, re c e n tly BANQUET GUESTS— Karen and Gary Todd, v.p., Peoples Nat’l. Bk., Columbus Junction; Mike Byrne, 2nd v.p., American Nat’l. Bk. £ Tr. Co., Chicago, and Myra Mohr, Miles Sav. Bk., Miles, la. RIGHT—Allen and Betty Stults, chmn. & pres., American Nat’l. Bk. & Tr. Co., Chicago, and Don and Ginny Ostrand, v.p., First Nat’l. Bk., Omaha. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 OLD FRIENDS— MEL KUPKA, pres., First Comm. Bk. & Tr., Traer; Morris Neighbor, pres., Mechanicsville Tr. & Sav. Bk.; W. N. Shellenbarger, dir., Farmers St. Bk., Marion, and Jim Lipton, pres., Ida Grove St. Bk. RIGHT— Mrs. Don Wenthe; John Cunningham, v.p., Chelsea Sav. Bk., Belle Plaine, and Don Wenthe, e.v.p., Nat’l. Bk. of Waterloo. completed a survey of service charges in which more than 4,000 b a n k s th ro u g h o u t th e c o u n try responded. In regard to a question about charges for returned checks, respon ses ranged from 25 cents to $10 per check. Some 26% now charge $5 per check, compared with 18% one year ago. The banks also reported th a t increasing the charge of insufficient fund checks or overdrafts did not necessarily reduce the volume of such checks. In fact, the num ber of such checks actually increased 15% of the time, remained the same 75% of the time and decreased only 10 % of the time. Also, 97.5% of the banks said the same custom ers continued to write the hot checks following the price increase. G uaranteed Loan Program s The bottom -line advantages to banks of utilizing Small Business A dm inistration and Farm ers Home A dm inistration guaranteed loans were underscored by panelists from governm ent and banking. Embree K. Easterly, president of Capital Bank & T rust Company of Baton Rouge, La., dem onstrated how the m aking of 242 guaranteed loans has saved nearly 3,000 jobs in his comm unity. An additional 1,139 jobs are at stake in loans still pending. A t the same tim e, Mr. E asterly said, the m arketing opportunities for the 90% guaranteed portion make these loans the m ost profitable in the b ank’s loan portfolio. He emphasized th a t these are not m arginal loans, and th a t the program is not a governm ent giveaway. By adding jobs and taxes, the guaranteed loan Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis program benefits both the bank and the comm unity. No Change in Farm Sector An agricultural economist told convention delegates th a t barring calamitous weather conditions, pros pects for the foreseeable future hold little promise for significant change from the current situation in the farm sector. Roby L. Sloan, vice president and associate director of research for the Federal Reserve Bank of Chicago, said financial problems in the m onths ahead will again be m ostly concentrated among grain farm ers as opposed to livestock producers. □ Kansas City Fed Elects McKinney Director John A. McKinney, president and chief executive officer of Johns-M anville Corp., Denver, has been elected a director of the Federal Reserve Bank of K ansas City. Mr. McKinney will serve through December 31, 1979. He is completing the term of Maurice B. Mitchell, chancellor of the U niversity of Denver, who is leaving for a new position in S anta B arbara, Calif., as head of the Center for the Study of Democratic Institutions. BMA Awards Competition Now Open for Entries The Bank M arketing Association now is accepting entry applications for its 1978 Golden Coin Awards Competition. The awards are confer red annually on banks producing outstanding, innovative and profit able m a rk e tin g p ro g ra m s a n d distinguished and socially produc tive public affairs program s. W inners of the com petition will be recognized at a special awards ceremony at B M A ’s 63rd annual convention in Chicago, October 15-18, 1978. News of winning entries also will be featured in B M A ’s “ Bank M arketing’’ magazine during 1978. Any bank m ay enter its program s in the competition in either the m arketing or public affairs category, or in both. M arketing entries m ay focus on new business development, product or service development, training, corporate m arketing, pub licity, tru s t m arketing, advertising or m ay include any m arketing program successfully completed by a bank within the last year. Public affairs entries are concerned w ith b a n k a c tiv itie s t h a t focus on objectives other th an imm ediate profit or sales response. Barron, W is., Bank Elects Director, Officer Jam es M. Simpson, president of the F irst N ational Bank of Barron, W ise., has announced the election of H. Gale Wells to the b ank’s board and the promotion of John Tjernagel to vice president. Mr. W ells’ father, the late Floyd J . Wells, was a p ast president and director of the bank for 22 years. Gale Wells is owner of N orthern G ranite Corporation. Previously an assistan t vice president, Mr. T jer nagel is responsible for ag loans, instalm ent loans and works with operations of the bank. He joined the bank from W atertow n, M inn., last May. 37 M eet the Ace in Cash Letter Relay Service. Over the last four years, the Manufacturers Hanover Early Bird has beaten the 10 A.M. New York Clearing House deadline more than 1,200 times. Mission accomplished: converting the 0210 items of correspondents into “ instant cash.” Our Early Bird relay service was the first of its kind among major New York banks. And now we have a mini “air force” of two helicopters for extra-busy days and for emergencies. Just send us your items via the priority parcel service of a major airline. Our helicopter at LaGuardia Airport will speed them to our Check Processing Department in plenty of time to beat the 10 A.M. gavel. For more information, contact your National Division Representative, or Herbert V. Fink, Operations Department, 4 New York Plaza, New York 10015 (212-623-3506), or Ronald R. Pabian, National Division, 350 Park Avenue, New York 10022 (212-350-4107). Just say you want to fly with the “Ace.” M A NUFACTURERS H A N O VER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. April 1978 38 Potential! risks of bank directors Why You May Need Liability Insurance Following are exerpts from a talk Mr. Marshman gave at the Bank Director Management Workshop sponsored by The National Associa tion of Bank Directors in Minneapo lis, Minn. EW positions in a com m unity F are as prestigious, influential, and generally laden with sta tu s as th a t of the bank director. This position is not, however, ju st honorific. Bank directors are charged with significant responsibilities and the m anner in which they meet these re s p o n s ib ilitie s h a s a m a te ria l im pact on the success enjoyed by their banks and their own potential liability. Directors of banks run a real risk of being personally named in a suit. In fact, research reveals th a t officers and directors of banks were the subjects of more suits over the last six years than were the officers and directors of any other category of business. A lthough this fact m ight surprise you, it should come as no surprise th a t there is a direct relationship between the lack of profitability and the frequency of suits filed against bank officers and directors. Stock holders bring alm ost one-half of all suits filed against bank officers and directors. The rem ainder of the claims are brought by disgruntled or otherwise unhappy bank custom ers (acting alone or in a class action), governm ental agencies, and citizen groups. Litigation Results Of all suits filed against bank officers and directors over the last six years, 10% were dropped by the claim ant, 36% were settled by litigation, 3% have been tried but are being appealed, and fully 51 % of all claims are currently awaiting trial. Such litigation is expensive. Over the last six years, the cost for attorney fees to defend against Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis claims involving officers and direc tors has averaged a whopping $205,000 per case. The average gross cost of these claims, including the legal fees and the settlem ent, is over $1,000,000 per case. Bank officers and directors are sued for m any reasons. Here are three examples. 1. The current officers and direc tors of a bank filed a suit against the b an k ’s former officers and directors, charging them with conflict of interest, self dealing and dereliction of duty. 2. A s u it a lle g in g fra u d u le n t breach of contract and requesting damages based upon the term ination of a M aster Charge contract was brought against a bank. 3. A state sued a bank, charging the bank and its tru s t officers with the unauthorized practice of law. Other Examples Consider also the catch 22 built into the selection of m any outside directors. One reason for electing a new board member is for the new business th a t he can bring to the bank. B ut this in itself could lead to a conflict of interest and a suit. P a rt of a director’s duties involves establishing a b ank’s overall lending By ROBERT W. MARSHMAN Vice President, M arketing Scarborough & Company Chicago, 111. and investm ent policies. If these policies produce poor results, the directors could be involved in litigation. In s id e r tra n s a c tio n s c o m p rise another m ajor area of concern. Sensitive to p ast losses and aware of the potential for future losses, the FD IC has adopted regulations to curb abuses th a t could occur in the context of transactions between state nonmember commercial banks and insiders of the banks. S tarting this year, the Federal Trade Commission is nam ing both the corporation and the directors in its com plaints against interlocking directors between commercial banks, savings and loan associations, and savings banks. The Justice D epart m en t an d v a rio u s o th e r s ta te regulators are investigating inter locks between the boards of banks and non-financial institutions. The Comptroller of the Currency has announced the establishm ent of a national banks early warning surveillance system designed to effect appropriate and tim ely deci sions by the board of directors, the examiners, and the Office of the Comptroller. One effect of this system could be an-increase in Cease and D esist orders, to which directors can be m ad e a p a r ty . T he Comptroller of the Currency issued a new regulation th a t prohibits the paym ent of commission or service fee to a national b an k ’s officers or directors acting as agents for the sale of credit life and accident and health insurance. The Employee Retirem ent Income Security Act of 1975, more common ly known as E R ISA , has created serious liability exposures. Many bank directors serve on boards whose banks service E R IS A pro gram s. The provisions and interpre tations of the “prudent expert” concept are fuzzy and will have to be POTENTIAL RISK S... [Turn to page 120, please] 39 ••• • • Agents • Adjusters 35 adjusters service 658 Independent Agents in North D akota, South D akota, M innesota, Iow a, and N ebraska... an area covering 25 0 ,0 0 0 square m iles. “The Premium Won’t Break You . . . A Loss Might!’’ JIM DAWSON BOB DAWSON LYLE ASKEROOTH TOM DAWSON CHUCK FOSBERG 20 SOUTH EIGHTH STREET BOX 1820 FARGO, ND 58102 If you are NOT a Dawson agent, call our office collect at 701-237-3311 or (N.D. toll free 800-342-4848) and we will send one of our key people to visit with you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 40 D&O lawsuit anxiety By JOSEPH P. DeALESSANDRO Executive Vice President American Home Assurance Company New York, N.Y. citizens on the boards of banks and savings S OLID and loan associations across the country know of their serious custodial responsibilities and sense the tru st th a t their fellow townspeople have vested in them . They m ust keep in touch with each other, stay aware of their position w ith regard to banking legislation, and m aintain the security of their depositors investm ents. W hether the institution comes under a federal or state charter, its affairs are closely scrutinized by banking regulatory authorities. The board of directors assum es a very specialized accountability to the depositors and the regulators. D&O Removes Fear of Suit A carefully w ritten Directors & Officers Liability Insurance policy for banks can protect the individuals involved and enable them to offer the best of their services to the comm unity w ithout fear of being □ THE AUTHOR Joseph P. DeAlessandro, is executive vice president and director of the American Hom e/N ational Union insurance companies and has executive responsibility for the financial services, sensitive risks and bonding divisions, as well as the accident and health division. He is also vice president of American International Underwriters, a division of American International Group in New York. He joined American Home in 1967; in 1971 was elected vice president, in 1974 senior vice president, and in 1977 executive vice president. A native of Brooklyn, New York, Mr. DeAlessandro received his education at Brooklyn College, New York University and The College of Insurance. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis financially penalized by acts, errors or omissions over which they had no control or of which they were not aware. The outside directors, as well as insiders, m ust uphold the corporate integrity. W ell-intentioned b u t uninitiated outside directors of banking corporations have a right to expect a detailed program of education to afford them the facts and information they need in order to use their judgm ent in m aking policy decisions. They m ay be expected to assim ilate a formidable and continuous stream of figures, statistics, reports and proposals. It is the responsibility of the bank officers to ascertain th a t outside, as well as inside directors, are effectively kept up to date on these subjects. The bank officers m ust make them selves fully aware of the regulatory legislation of the banking business and convey this to neophyte directors. It is to the best interests of the bank th a t all members of the board of directors should be able to interpret ongoing events with the best possible degree of professionalism and th a t they should consider them selves confident and well-qualified when casting their votes. Perhaps tw o-thirds of the banking institutions operating country-wide already enjoy the release from anxiety offered by a good D&O policy. Bank m anage m ent, periodically examining the litigious inclina tions of the public in all areas, may well look into the hazards of a lawsuit against one or more of the directors and officers. I t is reassuring to know th a t there is a way of protecting these valuable figures along w ith buildings and plate glass, data processing equipm ent, and millions of dollars in depositors funds. Financial institutions are liable in a variety of ways. Often, the directors and officers act as their brothers’ and sisters’ keepers, since they may be held accountable for the actions of the whole board. Errors or omissions on the p art of the b ank’s staff, upon whom the others m ust rely in technical m atters rather than areas of personal judgm ent, may also be the responsibility of the full board. The Directors & Officers Liability Insurance policy offers protection from negligent acts performed by any members of the board. In addition to suits brought by shareholders, the directors and officers of banks may find them selves being sued by the regulatory authorities for a m yriad of reasons. The directors of banks should be particularly concerned w ith the restrictions imposed by the regulatory authorities on both domestic and foreign loans. D&O Policy Coverages The Directors & Officers Policy and Corporate Reimbursement covers liabilities identified in the policy and protects the corporation as a beneficiary, for indemnification or liabilities assum ed through its by-laws, or through common or statu to ry law, dealing with responsibility to the directors. The contract of insurance also covers costs, changes and expenses involved in the defense of the litigated action, not only for the liability announced by the court or the jury excluding punitive and exemplary dam ages, bu t also for the atto rn ey s’ fees, accountants’ fees and all the other necessary and incidental defense costs th a t are involved in the case. □ 41 For 24 years we've been com peting w ith FHA Title I— and winning. Our specialty is cutting red tape. Here's how: Greater profits. Net yields to lenders average 25% more under the ICS Plan than under Title I. includes counsel and continuing portfolio review and evaluation. More flexibility. ICS tailors a program to your needs. Loan amounts. Loan terms. Marketing help. Promotional planning. Special programs. Today over 1,300 Institutions—from the smallest to the largest— use the ICS Plan. And all property improvements are eligible. From room additions to swimming pools. From garages to tennis courts. Risk-free security. You're shielded against every unpredictable default. Strikes. Divorces, skips. Bankruptcies. Layoffs. Superior service. Claims are paid in 7 to 10 days. Not weeks. Not months. Reporting procedures are simplified, too. Our service Learn for yourself why Insured Credit services has been competing with FHA Title l for 24 years—and winning! we have now insured more than $2 billion in property improvement loans, we're ready to help you increase your profits today. Call or write William F. 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PAUL, MINNESOTA 55102 Telex 297-417 Telephone 612/222-1824 Accident Plans ____Auto Racing ____Baseball Teams ____Camps ____Youth Groups Aircraft ____All Types Automobile ____Commercial ____Liability ____Physical Damage ____Cargo Burglary ____All Types Directors & Officers ____All Types Errors & Omissions ____All Types Excess Liability ____Auto ____Commercial ____Umbrella https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis General Liability ____Apartments ____Auto Racing ____Car Wash ____Demolition ____Dwellings ____Exterminators ____Merchant Police ____Personal Injury ____Products ____Special Events ____Others Livestock Mortality ____All Types Malpractice ___ Beauty Parlors ____Chiropractors ____Dentists ____Nursing Homes ____Physicians ____Others Marine ____Agricultural Equipment ____Coal Mining Equipment ____Jewelers Block ____Jewelry and Furs ____ Motor Cargo Mobile Homes ____All Types Motorcycles ____All Types Please send applications to our agency indicated below; NWB 4-78 N AM E:____________________________________________________________ AGENCY:__________________________________________________________ ADDRESS: ________________________________________________________ CITY: STATE: PHONE:. ZIP: Package Policies ____Apartments ____Commercial ____Restaurants ____Substandard (commercial) ____ Taverns Property ____B uilding/C ontents ____Manufacturing ____Mercantile ____Special Hazards Miscellaneous ____Kidnap/Ransom ____Any Unusual Risk ____We do not see what we need listed; can you help us on: t 43 A REV IEW of annual reports for 1977 and projections for the current year indicates th a t area insurance firms in general had another record breaking year. Crop hail insurers probably proved their value to farm operators in 1977 as much as at any other period in economic history. Crop hail losses, while heavy, were not catastrophic but paym ents for crop losses came at a tim e when sagging farm income was substantially bolstered by the insurance paym ents. M any firms also h a v e a n n o u n c ed new or improved services and expanded staffs to handle growing business. Their reports follow. MGIC Mortgage Volume Spurs 80% Earnings Gain A new p eak in re s id e n tia l m ortgage insurance application vol um e, com bined with strong in vestm ent income and im p ro v e m ent in previ ously losing op e ra tio n s , w ere the m ajor factors behind an 80 % gain in earnings for MGIC InM H KARL v e s tm e n t C o r poration, Milwaukee, according to Chairman M ax H. Karl. The company earned a record $2.03 per share for the year ended December 31, 1977, up sharply from the $1.15 per share earned in 1976. Consolidated net income for 1977 rose to $45,772,000, an 80% increase over the $25,370,000 reported in 1976. The 1977 results include $31,000, or less than $.01 per share, of realized investm ent losses, com pared with $48,000, or less than $.01 per share of realized investm ent losses the previous year. Consolidated net revenues in 1977 were $199.4 million, up from the $173.3 million in 1976. Consolidated net prem iums w ritten increased to $125.8 million from $107.8 million the prior year. Pretax investm ent income rose 15% to $36.6 million, compared w ith $31.8 million in 1976. The com pany’s prim ary business, residential m ortgage insurance, was the principal force behind the earnings gain. Pre-tax underw riting income rose to $50.5 million for the year, a gain of 27% over the $39.7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Area insurance firms report continued progress million realized in 1976. Residential m ortgage insurance application vol ume of $11.0 billion was 49% above the $7.4 billion reported a year earlier. “ Our application volume in 1977 eclipsed 1973, previously our all-time best y e a r,” said Mr. Karl. “ Renewal prem iums from the business w ritten last year will contribute to earnings well into the next decade.” Commercial m ortgage and lease insurance operations returned to p ro fita b ility in 1977, sho w in g pre-tax underw riting income of $2.4 million, compared with a loss of $7.3 million in 1976. Pre-tax underw riting losses in the c o m p a n y ’s m obile hom e c re d it insurance operations were $552,000 for the year, sharply beneath the $5.1 million loss recorded in 1976. Directors and officers liability insurance posted pre-tax underw rit ing income of $2.7 million in 1977, up from the $2.3 million the previous year. Municipal bond insurance underw riting income went from $377,000 earned in 1976 to $878,000. Real estate operations recorded a pre-tax loss of $17.6 million, up from $13.9 million in 1976. North Central Companies’ Income Tops $1.6 Million The N orth Central Companies, Inc., a M innesota-based financial services holding company, head quartered in St. Paul, announced year-end figures for 1977, which showed the com panies reaching new a ll- tim e highs for total re v e n u e s, cont . SANDBORN solidated net in come, net worth, assets, premium income, investm ent income, divid ends, benefits to policyholders and insurance- in-force. Consolidated net income for the companies, according to Theodore Sanborn, president, reached a new high of $1,629,089 in 1977, compared to $1,496,924 in 1976. Net income per share rose to $2.41 from the previous year’s $2.13. Total revenues rose substantially to $34,843,501 co m p a red to $28,803,270 for 1976. N et worth of the companies went to $14,048,380 up from $13,025,987 for 1976, while net w orth per share rose to $21.39 compared to the previous year’s $18.70. T o ta l a s s e ts clim b ed to $67,204,094 up from $56,709,274 at year-end 1976. Premium income for N orth Central Life Insurance Company, the hold ing com pany’s principal subsidiary, also reached an all-time high of $32,096,895 up from $26,611,088 the year before. Insurance-in-force grew rapidly to another all time high of $1,576,068,178 up 23.5% over last year’s $1,276,085,774. In a m essage to shareholders, Mr. Sanborn reported th a t “ Sales grew in all m ajor lines of business. The total grew more than 20% and group m ortgage excelled with a 33 % increase. Creditor insurance grew 21% , a n d o rd in a ry life 19% . Expenses and claims grew, partic ularly in accident and health. Yet, all b u t tw o b u s in e s s lin es w ere profitable. Ordinary life was espec ially so when m easured against 1976; its profitability grew significantly. Credit accident and health showed a small loss for the year. Individual accident and health showed a loss because of hospitalization insurance. Hospitalization insurance has not been a significant product in our operations in recent years, and has not been profitable; therefore, your Northwestern Banker, April 1978 44 m anagem ent has decided to stop writing it. “ In 1975, after 54 years of operation, The N orth Central Com panies prim ary subsidiary, N orth Central Life, reached the landm ark of $1,000,000,000 of life insurancein-force. L ast year, about IV years la te r, we h it th e m ark of $1,500,000,000.” 2 Richard Morran Joins Insurance Programmers Robert A. Carney, president of Insurance Program m ers, Inc., of R olling M e a d ow s, 111., a n nounced recently th a t J . Richard M o rra n jo in e d the firm as vice president. M r. M o rran has had 26 years of experience in fin a n c ia l in s u r ance as the u n derw riting vice president for Scar borough & Co. In his new position, he will be in charge of m arkets, new policy forms and underw riting. USLIFE Credit Life Has 36% Increase in Premiums Production in excess of $56 million in premium was recorded in 1977 by U S L IF E C re d it Life In s u ra n c e Company, according to Jam es E. Lee, vice president. The firm is headquartered in Schaum burg, 111. D istrict m anagers were appointed in O k lah o m a an d O hio, an d additional representation was added in M innesota and Michigan. IBIS Has Record Year; Staff Revisions Announced The Iowa Bankers Insurance & Services reported in fiscal year 1977 a record return of over $153,000 in dividends to 490 participating Iowa banks. The IB IS, owned by all Iowa banks, offers a complete line of services in the areas of pension and profit sharing program s, employee group, credit life, blanket bond, comprehensive bank, directors & officers liability, tru s t errors and omissions, and lenders single interest insurance. Total premiums for these program s for 1977 were $4,342,594, up 33% over 1976. Ron D ougherty, Ron Meyer, Bill Carr and Jim Jensen are the IB IS field representa tives and were recently named vice presidents. On April 1, 1978, A1 Tinder joined IB IS as office m an ag er and com es to th e corporation with over 25 y e a rs A TINDER experience in the —Our 58th Year THE CROP HAIL PROTECTION FARMERS PREFER — STATEMENT OF CONDITION At Close of Business December 31,1977 ADMITTED ASSETS U.S. Government B o n d s ................................. Other B o n d s ...................................................... Stocks ................................................................. Accrued Interest, etc......................................... Cash in Bank and Home O ffice....................... Total Admitted A ssets............................. LIABILITIES Reserve for Federal and State T a x e s ............ Other L ia b ilitie s ................................................ Total Liabilities.......................................... Funds for Policyholder Protection................. $6,179,422.81 1,428,469.17 135,775.38 196,445.99 156,096.34 $8,096,209.69 $ 133,063.19 1,062,812.15 $1,195,875.34 6,900,334.35 $8,096,209.69 Securities carried at $392,088.53 in above statement are deposited with public authorities as required by law. SQUARE DEAL INSURANCE COMPANY DES MOINES, IOWA 50308 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ^u iìtiteti? insurance field. Long-time banker Collin Fritz is available through the IB IS office as a consultant for IRA and Keogh p ro g ra m s.. The current officers for the IB IS are: Chairman, Don Curry, Farm ers Savings Bank, M assena; President, Rudolph Leytze, Farm ers S tate Savings Bank, Independence; Vice President, J . F. Simmens, Lee County Savings Bank, F ort M adi son, and Treasurer, Homer Jensen, Capital City S tate Bank, Des Moines. Dawson Hail Writes $89 Million in 1977 A total of $89 million in risks was produced in 1977 by approxim ately 600 local agents of Dawson Hail Insurance Com pany of Fargo, N. D. This total re p re s e n ts an eight percent in crease over 1976. Jam es Dawson, president of the widely - known j DAWSO n in su ra n c e firm , said his company will retain 10% of each risk in 1978. The rem ainder will be reinsured by several Lloyds of London syndicates and 20 other reinsurance companies, allowing for alm ost unlim ited capacity. Mr. Dawson reports 1978 pros pects are excellent due to adequate m oisture and considering an above normal num ber of very severe losses in 1977 (see prem ium s/losses chart in accom panying story.) A veteran insurance underw riter, Dawson Hail is licensed in N orth D akota, South D akota, M innesota and was adm itted to Iowa as a policy writing stock company in November, 1977. An affiliate, Dawson General Agency, has been in the crop hail business 61 years and m anages the business in these four states and Nebraska. In addition to President Jam es D aw son, o th e r o fficers of th e c o m p an y a re R o b e rt D aw so n , secretary; Lyle A skerooth, vice president; Pearl Burley, treasurer, Charles Fosberg and Tom Dawson, directors. Jam es Dawson was elected to the International Hail Insurers at its congress in Cannes, France last October, the first American to serve 45 ’4 R A N K E R S S P E C IA L R O A R The Broadest Coverage Available There's been a lot o f ta lk late ly a b o u t th e shrinking Bankers B lanket Bond m ark e t. A b o u t h o w only six or so sources n o w pro vide this necessary coverage. A b o u t th e tro u b leso m e restrictions placed on banks seeking th e insurance. Even a b o u t som e banks n ot being able to g e t a b la n k e t bond under any term s. In a d d itio n to o ffe rin g a stable m a rk e t and broad coverage, w e also m ake availab le p ro fessio n a l loss p re v e n tio n services to w o rk w ith banks to m in im ize losses. A n d, if a loss occurs, our direct claims processing m eans fast action. Call or w rite us fo r m ore in fo rm a tio n a b o u t our Bankers Special B ond— and all yo u r in surance needs. There's no d en yin g th a t th e last fe w years have been to u g h , both fo r some banks and fo r insurers. But Scarborough and C om pany has rem ained a stable source fo r b lan ke t bonds fo r alm ost 60 years. W h a t's m ore, w e d evelo p ed and w e continue to o ffe r " o t o îm / i a> th e broad est bond coverage in th e m ark e t — t h e B a n k e rs S p e c ia l B o n d . It Wm th e b a n k / a ffo rd s banks im p o rta n t e x ten s io n s ^ in su ra n ce p e o p le an d a d d itio n s to s ta n d a rd b la n k e t 222 N. D e a rb o rn Stre e t, C h ica g o , Illin o is bond coverage. 60601 (312) 346-6060 Please send me a copy of the "Insurance and Protection Handbook.' SEND TODAY FOR OUR NEW 20-PAGE “INSURANCE AND PROTECTION HANDBOOK.“ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Name. Title. Bank. State- Zip_ Northwestern Banker, April 1978 46 Crop Hail Results Reported for 1977 C ROP H A IL insurance premiums w ritten nationwide in 1977 by private firms totaled $338,963,263, according to statistics compiled by the Crop-Hail Insurance Actuarial Association and Crop Insurance R esearch B u re a u , In c . L o sses against these prem iums in 1977 were $216,898,113 for a total loss ratio of 63.99%. Fred W. Benson, general m anager of the Crop Insurance Research Bureau, who headquarters in Shel don, la ., said “while it was not a profitable year for the companies it was not a serious loss y ear.” Mr. Benson further noted, “ The area served by the N orthwestern B anker produces 61.4% of the toted business. We are proud of the fact t h a t we p a id lo sse s to ta lin g $136,194,352 to farmers in your area. Five of your s ta te s —Illinois, M inne sota, N orth D akota, Iowa and N ebraska—suffered losses paid of $122,701,926, equalling 56.7% of all losses paid in the nation. “ Despite lower prices the demand for hail insurance increased about 4% nationally.” State (Rank) Colorado (19) Idaho (16) Illinois (2) Iowa (1) K ansas (7) M innesota (4) M issouri (10) M ontana (9) N ebraska (3) N orth D akota (6) Oregon (31) South D akota (11) Texas (5) W ashington (24) Wisconsin (14) Wyoming (28) In addition to private industry coverage, the Federal Crop In su r ance Corporation wrote total prem i ums in 1977 of $101,964,000 and had losses of $151,638,000, for a loss ratio of 149%. The office of Jam es Deed, m anager of FCIC, told the N orthwestern B anker on March 15 th a t 98 % of all losses had been paid as of M arch 7. All losses settled by th a t date had been paid by the K ansas City disbursing office as of M arch 10, it was added. Previously, FCIC had been unable to pay an estim ated $6,800,000 of settled losses due to lack of funds. These losses have since been paid out of other collected prem iums and from Congressional appropriation. Below is a chart showing 1977 prem iums collected and losses paid by CH IA A and CIRB members for states in the N orthwestern B anker area, plus a num ber of surrounding states and leading prem ium -produ cing states. Number in parentheses indicates nationwide ranking by premium volume. These figures do not include Federal Crop Insurance Corporation figures. 1977 Premiums 1977 Losses Loss Ratio $ 3,850,865 $ 2,960,731 76.88 4,858,784 2,527,134 52.01 48,264,804 45.68 22,046,165 60,018,792 36,709,672 61.16 19,150,521 67.20 12,869,475 27,041,612 15,821,072 58.51 8,479,408 5,814,003 68.57 9,373,737 2,961,580 31.59 29,066,167 24,541,275 84.43 21,067,246 23,583,742 111.95 693,307 435,872 62.87 8,429,269 5,633,645 66.83 24,603,369 11,292,349 45.90 2,299,918 950,494 41.33 5,628,193 4,693,694 83.40 1,033,740 1,903,720 184.16 on the board of the association, P re s id e n t A lb e rt R u tle d g e a n whose headquarters are in Zurich, nounced the retirem ent of Fred W. S w itz e rla n d . M r. D aw son w as Benson of Sheldon, la ., after 49 appointed to the executive com m it years of service with the company. tee of the Crop Hail Insurance He had been an officer of the A c tu a ria l A s s o c ia tio n a t t h a t company since 1946 and served as group’s annual m eeting recently in vice president in charge of national Chicago. affairs when he retired. He has served as president of the National Association of M utual Farmers Mutual Announces Insurance Companies, president of Fred Benson Retirement the M utual Insurance Association of A t the 85th annual m eeting of the Iow a, p re s id e n t of th e C rop Farm ers M utual Hail Insurance Insurance Research Bureau and Company of Iowa, Des Moines, chairman of the National Crop Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Insurance Council. He also served on the board of the Federal Crop Insurance Corporation. Mr. Benson will continue as m anager of the Crop Insurance Research Bureau, representing its members in the legislative, educa tional and research areas of the crop insurance industry. He expects to continue to live in Sheldon. Mr. Benson also is a director of the Citizens S tate Bank in Sheldon. Employers Mutual Assets Top One Quarter Billion Total assets for Em ployers M u tu al Companies, Des Moines, topped a q u a rte r billio n dollars in 1977, w h ic h EM C President Robb B. K elley d e sc rib e d as “ a year of progress” for the insurance com pany. He said total assets rose from $210 million to 251 million. Premium writings for the fire and casualty companies increased by 11.9% to $147,223,000, Mr. Kelley reported. Em ployers Modern Life raised its life insurance in force to $356,000,000 from $329,305,000 in 1976. Frederick W. W eitz, chairm an and president of the Weitz Company, was elected to the board of directors of Em ployers M utual a t the annual m eeting of the board last m onth. He presently serves on the boards of Employers Modern Life and Union M u tu a l In s u ra n c e C om pany of Providence, subsidiaries of Em ploy ers M utual Companies. In o th e r a c tio n , th e b o a rd promoted George Kochheiser, senior vice president, to executive vice president. The board also approved home office promotions for Vice President T. X. W right to senior vice president; Vice President Philip T. Van Ekeren to vice president-secre ta r y , an d F o rre s t C. M ercer, assistan t vice president, to vice president. William Anderson, recently ap pointed branch m anager of the Minneapolis office, was named a resident vice president. Employers M utual Companies is licensed in all 50 states with 17 branch offices across the country. 47 We can solve your problem ! Here’s how Investment: U.S. Gov’t ’s. Federal agencies. Munic ipals. Federal funds. Commercial paper. Computer ized bond p o rtfo lio a ccounting. P ricing and counseling. Securities safekeeping. Trust: Public fund custodial accounts. Personal and corporate trusts. Bank Cards: Master Charge. Visa. Leasing: Direct. Or, participating. International Banking: Worldwide correspondent network. Letters of credit. Foreign collections. Currency exchange. We can help you find the solution to that problem lying on your desk right now. Over the long haul, we can help you grow, a little at a time, or a lot. Let’s get together! Account Services: Cash letters. Wire transfers. Coin and currency. Collections. Loan Administration: Commercial, agricultural, and real estate overlines. Bank loan counseling. Data Processing: “ On-line” and “ Batch'.’ Checking. Savings. Certificates of deposit. Installment and commercial loans. General ledger. Automated clearing house. Automatic teller machines. Payroll. E L B u rch V ice P re s id e n t C o rre s p o n d e n t B a n k D iv is io n D a ve Van A k e n V ic e P re s id e n t K ansas J a c k B e e ts V ic e P re s id e n t K ansas P hil S tra ig h t V ic e P re s id e n t N o rth e rn M is s o u r S te v e B la c k b u rn V ic e P re s id e n t K ansas D u n c a n K in c h e lo e V ic e P re s id e n t T e xa s-A rka n sa s D ic k M u ir A s s is ta n t V ic e P re s id e n t Io w a -N e b ra s k a G e o rg e C re w s A s s is ta n t V ic e P re s id e n t K a n sa s C ity M e tro D a le P a rk e r A s s is ta n t C a s h ie r M is s o u ri UNITED MISSOURI BANK OF KANSAS CITY, N.A. United we grow. Tbgether. 10th and Grand, Kansas City, Mo. 816/556-7000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC Northwestern Banker, April 1978 in these areas is forecast through 1978. AIG 7 7 Earnings Up 23% , Exceed $121 Million OPEN HOUSE was held recently for guests of John H. Crowther, Inc., when the Minneapolis-based insurance underwriter moved into new and larger offices. In addition to the Minneapolis headquarters, the Crother firm has offices in seven other citie s— Des Moines, Omaha, Sioux Falls, Boise, B illings, Madison and Bism arck—to serve its clients in upper midwest and mountain states. Pictured in the receiving line are, left to right: Doug and Dave Crowther, Alex Fjelstad, Mark Sheehan and Ray Johnston, all of the Minneapolis office. a new office was opened in Boise, Idaho, in mid Septem ber. Also, term s were finalized for the purchase A record year was achieved by of the Durand Insurance Agency, John H. Crowther, Inc., M inneapo which was acquired effective J a n u lis, in nearly every aspect of its ary 1, 1978. This office gives the insurance business during 1977, company a new foothold in the state according to John H. Crowther, of W isconsin. Also, 1977 was a year of turm oil president. Premiums w ritten and earnings within the excess and surplus lines in su ra n c e in d u s tr y . W hile th e both reached new all time highs. The rapid grow th experience in withdrawal from m any lines in the 1977 is witnessed by the fact th a t six standard insurance m arket created new potential within the excess and of its offices— surplus lines end of the industry, Minneapolis, Des limited capacity also crippled the Moines, Billings, E&S m arket. This lim iting of Omaha, B ism ar capacity restricted an even larger ck, and Sioux growth potential for all excess and F a l ls —a ll r e surplus lines companies. quired relocation in new offices in Lines m ost heavily w ritten at order to handle year-end included products liability, increased prem commercial automobile, liquor legal ium writing. In lia b ility , a n d m o st c la sse s of addition to this, umbrella liability. Continued grow th John Crowther Firm Sets Records, Expands in 1977 PROTECT THESE LOANS AGAINST PHYSICAL DAMAGE LOSSES ..............:all or write: G.D. VAN WAGENEN CO. 1006 Northwestern Bank Bldg., Minneapolis, Minn. 5 5 4 0 2 (612) 333-2261 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis American International Group, Inc., New York, reported consolida ted income from operations after income taxes reached a record $121,700,000 or $3.84 per share, and increase of 23% from $3.12 or $98,500,000 reported in 1976. Con solidated assets and capital funds achieved record levels at year end, approxim ating $2.9 billion and $612 million respectively. AIG President M. R. Greenberg commented th a t, overall, 1977 was a fine year for the company. The underw riting ratio for the year was 93.53, down from 94.44, reflecting essentially stable loss experience and overall continued control of expen ses. For the year, general insurance net prem iums w ritten were up 25.1% from 1976 ($1,155,700,000 in 1977 vs. $923,700,000 in 1976.). General insurance net investm ent income, reflecting the im pact of higher interest rates and very strong invested cash flow was $83,300,000, up 27.1% from 1976. Life insurance operating income was $14,900,000 for the year, up 25.6% . Life prem iums for the year were $140,735,000 up 31.3% from $106,800,000 in 1976. Agency operating income was 7,600,000 for the full year compared with $22,000,000 recorded in 1976 Casualty Underwriters Breaks Records in 1977 R alp h L ’A llie r, p re s id e n t of Casualty U nderw riters, Inc., St. Paul, announced last m onth th a t the company broke all its grow th records by reporting a 54 % increase in premium w ritings in 1977. The company specializes in w riting all types of transportation coverages, including long-haul, interm ediate and short-haul truck business. During 1977 the company was appointed m anaging general agent by seven additional m ajor insurance carriers, Mr. L ’Allier stated, thereby increasing the com pany’s capacity and expanding its product lines. One of these m arkets, he noted, will provide Casualty Underw riters with a nationwide boat program for its producers. 4 Lincoln Benefit Reaches Half Billion in Force Lincoln Benefit Life recorded another year of achievement in 1977, and surpassed a record of half a á billion dollars of life insurance in fo rc e ,” re p o rts C. T. “ Cemy” Young, president of Lincoln Bene fit Life, Lincoln, Nebr. The disability and life company reports to tal insurance in force rose 25% from $457 million to $574 million in 1977. Premium income climbed 24% , going from $11.3 million to $14.0 million. L incoln B e n e fit L ife, w hich operates a general agency system of ] 100 general agents and agency offices in 20 midwest and Rocky M ountain states, paid benefits to policyholders in 1977 am ounting to over $4.4 million, up over the previous year’s $3.3 million. In v est m ent income went from $2.1 million to $2.6 million and adm itted assets from $36.2 million up to $41.8 million. Lincoln Benefit Life is a member company of F irst G reatw est Corpor ation, Lincoln. m ortgage costs make it nearly impossible for the average consumer to move to d ay .” According to Mr. Schum ann, the three areas of greatest development in the field are: (1) added living space, (2) updated kitchen and bathroom facilities, and (3) luxury improvements designed to improve liveability, such as swimming pools, tennis courts and saunas. Insured Credit Services pioneered th e id ea of p riv a te ly in s u rin g property improvement loans 24 years ago and, today, more than 1,300 lenders are using the ICS 49 program . The company has insured more than $2 billion in property improvement loans. Life Investors Expands With Nationwide Offices Life Investors, Inc., Cedar R ap ids, la ., has expanded its area of operations further around the nation and has opened four new regional offices in recent m onths, according to Don N achtm an, credit life sales m anager. These expanded services helped account for a 138% premium rise, Rising to th e o ccasio n . . . Opportunity for Property Improvement Lending Seen A ctivity in the property im prove m ent loan field during 1978 is expected to be dram atically in creased, accord ing to William F. Schum ann, pres ident of Insured Credit Services, Inc., Chicago. ‘ ‘ A ll s i g n s point to a banner year in the prop- w F SCHUMANN e rty im p ro v e m ent loan field,” said Mr. Schu m ann. “ There are two prim ary reasons for the anticipated growth in the field. F irst, the energy situation dictates greater consumer spending on improvem ents th a t will reduce energy costs and, in m any cases, these consumers are in need of fin a n c in g . S econd, s k y ro c k e tin g housing prices and the increase in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S urvival, a rew ard N ature be sto w s on those species w h ich c o n s is te n tly rise to m eet her challenges. C onsistency . . . M e e tin g C hallenges . . . n o t bad q u a litie s to lo o k fo r in s e le ctin g an excess and su rp lu s lines broker. Think a b o u t it. Crowther Minneapolis 6 1 2 /3 3 3 -0 3 6 1 Des Moines 5 1 5 /2 4 3 -1 2 2 1 O m aha 4 0 2 /3 9 3 -2 0 4 0 Sioux Falls 6 0 5 /3 3 6 -0 9 6 0 Bismarck 7 0 1 /2 2 3 -1 1 12 Billings 4 0 6 /2 4 8 -7 1 8 3 Boise 2 0 8 /3 3 6 -7 1 3 1 Madison 6 0 8 /2 7 1 -6 5 0 0 Northwestern Banker, April 1978 50 going to $42,928,000 in 1977 from personnel of auto dealers served. $18,027,000 a year earlier. Pre-tax This program is being expanded in earnings rose 198% to $2,935,000, 1978 to installm ent loan officers of the highest level in the com pany’s Life Investors’ bank custom ers. history. These efforts, he noted, are expected Life Investors m arkets its credit to result in increased penetration of insurance through two separate existing accounts and the addition of organizations. The Cedar Rapids new accounts. credit operation services banks and auto dealers throughout the United Guardsman Life Hits States. A new regional office in $1.5 Billion of In-Force Troy, M ich., serves the credit union movement nationwide and the credit G uardsm an Life Insurance Com union block of insurance coverage pany, Des Moines, ended 1977 with assum ed in 1977 accounted for $1.5 billion life $19,941,000 of the increase in credit i n s u r a n c e in life and disability premiums regis force, represent tered over 1976. The rem aining ing a 43 % in $4,960,000 increase, according to crease in in-force Mr. N achtm an, was a direct result of w ith in a 12 a strong demand for automobiles and m o n th p e rio d . other consumer goods in 1977 and The volume in the com pany’s m arketing efforts to crease was 66% serve those custom ers. over the preced Other regional service offices ing y e a r an d R. R. HAGELMAN opened are in C hattanooga, Tenn.; there was a pre Orlando, Fla., and Greensboro, N. mium increase over 1976 of 23%. C. E ight additional field representa New ordinary life represented $379 tives were added to the staff in 1977. million as opposed to $229 million in In a d d itio n , M r. N a c h tm a n 1977. A t the same time, there was a reported, a program was developed very significant increase in group to train the finance and insurance and credit premium of 168%. New premium in 1977, group and credit, w as $6,687,311 c o m p a red w ith $2,496,670 in 1976. “ In sh o rt,’’ reported President Rudy Hagelm ann, “ it was the greatest year of G uardsm an grow th in its h isto ry .” The company hit $1 billion in force January 1, 1977, and attained $1.5 billion in the next 12 m onths. “ I t is the com pany’s objective now ,” M r. Hagelm ann said, “ to try to attain $2 billion in force by the end of 1978 or early 1979.” He said the company increased its area of operation in 1977 into the state of Georgia, to increase the num ber of brokerage general agents substantially, and to very m aterially increase the num ber of licensed brokers representing the company in its present 35-state area. In 1977 G uardsm an also in tro duced the Im m ediate Issue concept, which is a revolutionary new m ethod of issuing policies in the offices of the agent at the time the application is receiv ed an d th e p a y m e n t of commission at th a t tim e also. There is no limit as to the size of the policy as long as the papers are available or the applicant is within the non-medi- 85th ANNUAL FINANCIAL STATEMENT DECEMBER 31, 1977 ADMITTED ASSETS Bonds: (Amortized) G overnm ent ....................................... $15,220,637 State, County and M unicipal . . . . 26,787,890 All Other .............................................. 7,440,959 Stocks: (M ark et-N .A .I.C .) Preferred .............................................. 52,500 Common .............................................. 459,530 Real E state — Including H om e Office B ldg. . . . Cash and Bank D eposits ......................................... A gen ts B alances & Reinsurance Receivable . . . Interest Due and Accrued ....................................... All Other .......................................................................... TOTAL ..................................................................... LIABILITIES AND SURPLUS $49,449,486 Reserves for L osses and Loss E xpense .............................. Contingent C om m issions .............................. T axes (Other Than Federal Income) ......... Federal Income Tax ....................................... Unearned Prem ium s ....................................... Funds H eld Under Reinsurance Treaties Reinsurance Balances Payable .................. All Other .............................................................. TOTAL L IA B IL IT IE S 512,030 756,527 840,898 9,030,431 670,869 37,967 Surplus A s Regards Policyholders ............................ 36,263,841 $61,298,208 TOTAL ........................................................................ $61,298,208 ALBERT RUTLEDGE, President DALE DEN HARTOG, Treasurer PERRY RUTLEDGE, Vice President & Secretary Home Office 2323 Grand Avenue, Des Moines, Iowa 50312 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,918,838 ,441,651 562,214 ,129,124 ,135,219 692.820 ,824,871 329.630 $25,034,367 51 The best check collection services in the Midwest just got better. • We speed through items having a high dollar value. No special sorting requirements are necessary. • We utilize flexible check sorting routines which can be changed within a 24-hour period. • We have the ability to analyze your deposits and can recommend the optimum clearing arrangement for you. 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What can we do for you? €>Commerce Bank of Kansas City 10th & Walnut 234-2000 MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 52 Winning with Customers — a customer relations program from Continental Bank P OOR custom er relations could be costing banks up to 40 % of all the custom ers they loose each year, according to recent statistics. “W inning W ith Customers, Continental B ank’s latest packaged Financial Skills Development training program , was developed to make banks retain current custom ers, increase sales of bank services and reduce the num ber of custom ers who are lost because of poor custom er relations,’’ said John Tingleff, vice president, financial institutions division. The custom er relations program , which utilizes sound/slide presentations, audio casettes, and coordinated workbooks, is built into the framework of three 90 m inute workshops. The first unit of the course focuses on an individual’s efforts to build custom er confidence by teaching employees to listen attentively and communicate clearly. The second portion of the course covers m ethods of dealing directly with custom ers, and includes tips on handling difficult situations, answering questions, and com m unicating face-to-face, by telephone, and in writing. The third section presents techniques for discovering custom er needs and introducing the appropriate services to meet them . This portion of “W inning W ith C ustom ers” also perm its an institution to customize the course by introducing its own products and services as program m aterials. The workshop form at encourages the highest degree of participation and involvement by employees, with minimal preparation required by the workshop leader, and makes the program a practical, interesting and enjoyable way to learn. The program was designed for every public contact person in a bank...receptionists, secretaries, tellers, personal bankers, loan officers and everyone who transm its the personality and prestige of a bank. “W inning W ith C ustom ers” has achieved enthusiastic acceptance by the 300 banks across the country th a t have been using it since it was first offered last October. Now Continental is m aking this program available on a 30 day preview basis to give banks the opportunity to prove the effectiveness of the program with no obligation. “ W inning W ith C ustom ers” is the fourth in the financial skills development series of courses being offered by Continental Bank. F urther information on any of the courses is available from Jeanne Czarnecki, M anager, Educational Services Division, Continental Bank, 231 S. LaSalle Street, Chicago, Illinois. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cal lim its . The in fo rm a tio n is im m ed ia te ly tra n s fe r re d to th e office by telecopier. U nderw riting decisions are made and the agency is informed of the policy num ber and premium am ount and has trained staff prepared to issue the policy. This system was p u t into full operation approxim ately m idyear 1977 and by year end the company had issued $35 million of business via Im m ediate Issue and some $600,000 in annualized premium had been generated. As a result, the company is expanding its Im m ediate Issue program in 1978 and hopes to have by year-end over 100 agencies operating on this concept which has e lim in a te d , in la rg e p a r t, th e necessity to rely on U. S. mails and normal routine adm inistrative pro cedures. Omaha Financial Reports Progress and Promotions W arren R. W hitted, president of Omaha Financial Life Insurance Co., Bloomington, M inn., reported to stockholers last m onth th a t assets at 1977 year-end were $14,521,538. Life insurance in force on the same date was $539,202,000 and total prem i ums w ritten and assum ed for the year were $24,931,296. ,296. Omaha Financial Life, which is a M utual of Om a ha company, for merly was known as St. Paul H os pital & Casualty C om pany b u t w as g iv en its p re se n t nam e last Septem ber. W. R. WHITTED M r. W h itte d also announced four staff prom o tions. Named vice presidents were G ene C u rrie a n d P a u l W old. Advanced to second vice presidents were Michael Costello and John Mullen. A 31-year veteran w ith M utual of Omaha companies, Mr. Currie is in adm inistration. He has been with Omaha Financial since 1970. ACORN Sale Registers "A c c e p te d S ale R egis ters b y Bank C lerks E v e r y w h e r e " Tor in fo r m a tio n v.a ite THE ACORN PRINTING CO. O akland, Iowa 53 Banks & Heller: resourceful partners in profit. Astute bankers have found that under today's conditions, when it's more difficult to approve larger loan requests, participations with Heller make more sense than ever. Bankers look to Heller to maximize their customers'credit availability because Heller applies financial creativity developed over more than a half-century of specialized experience in secured lending. Hundreds of loans in our billion dollar portfolio have bank participations. Participants include about half of the nation's 25 largest commercial banks, but the great majority consists of aggressive banks of moderate size that are inclined to think big about loans. With a participation loan you profit ' ways: you continue to provide all the normal banking functions; and generate interest income from your portion of the loan, typically 30% to 50%. Heller assumes responsibility for all administrative and supervisory details but keeps you close to the situation with periodic examination reports. Start profiting now. Contact the Heller office nearest you. No home office red tape will hold things up. That's a promise. Walter E. Heller & Company 105 W. Adams St., Chicago, Illinois 60603 Financial Services https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New York • Boston • Philadelphia • Baltimore • Syracuse • Detroit • Kansas City Charlotte • Denver • Atlanta • Miami • Birmingham • New Orleans • Houston • Dallas San Antonio • Phoenix • Los Angeles • San Francisco • Portland • Seattle' San Juan, P.R. H e lle r s e rv ic e s a ls o a v a ila b le th ro u g h H e lle r C o m p a n ie s in C a n a d a a n d tw e n ty o th e r c o u n trie s a ro u n d th e w o rld . Northwestern Banker, April 1978 54 W O M E N IN B A N K I N G By JA N E T TA BER A ssistant Vice President F irst National Bank Long Prairie, Minn. W E, as women in banking, have to make work for us positive qualities th a t our male counterparts m ay not have, says Jan et Taber, assistant vice president and assistan t instalm ent loan officer of the F irst National Bank of Long Prairie, Minn. “We, for example, will have a greater sensitivity to oth ers’ needs as we have been basically trained from the tim e we were little girls to be the helpm ate. All the old stereotypes of women can be p u t into positive use on the job. “ A woman going into banking today will have the best advantage w ith some type of vocational banking schooling. The best advantage for a big city job would be a college business degree, but people’s feelings vary on this according to the area of the country. She m ust decide for herself if she w ants a career or a job. There is a big difference and m any people do not realize this. “ I m ust stress the fact th a t she, whoever she may be, has to be willing a t all tim es to continually learn more and work possibly twice as hard as her male counterpart to get ahead. Sometimes she m ust take extra banking courses or other business related courses th a t seem irrelevant a t the time. She m ust always think of the fu tu re.’’ F irst N ational Bank of Long Prairie is a very progressive bank in its area. In this field of education, it is a very strong backer of any and all employees getting further education through AIB courses or any of the other banking schools. This, in turn, is good for the bank. M rs. Taber joined the F irst N ational Bank of Long Prairie as safe deposit box custodian. She held th a t position for six m onths and then was transferred to the loan departm ent as a loan secretary, teller and all-around Girl Friday. She is now assistan t vice president and assistan t instalm ent loan officer covering all instalm ent loan departm ent activities—payroll, credit life, check charges, etc. Also, she makes airline arrangem ents as a free service for bank custom ers through M innesota S tate Automobile Association. Commenting on stereotype ideas of women, Ms. T aber said she identifies the problem m ost in the area of role stereotyping females into the secretary-teller-receptionist positions by both men and women. Women seem to get locked in for a very, very long term in the secretary-receptionist stereotype—even though they m ay have advanced to officer or higher m anagem ent roles. “A t this point in time, I would recommend banking to my sons as a career, b u t not to my daughters unless things really change now and in the next five y e a rs,’’ Ms. Taber said. “ We, as women, m ust accept the fact th a t changes will come, b u t we m ust also be willing to wait patiently, because pushing the issues only makes the road to success th a t m uch harder.” □ Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Wold is western general sales m anager. He joined the company in 1972 and has been assistan t vice president. Prior to joining the company, Mr. Wold had extensive experience in the credit life field in Iowa and surrounding states. He has been headquartered in Des Moines but will now move to Bloomington. Mr. Costello is in underw riting and Mr. Mullen is in claims. BAI To Award Continuing Education Units Bank A dm inistration In stitu te has begun to award continuing education units (CEUs) to bankers participating in in stitute educational program s. BA I President Ronald G. Burke announced th a t the new program would be available to participants in m ost BAI courses th a t meet national criteria and guidelines beginning April 1, 1978. One unit equals 10 contact hours of participation in an organized c o n tin u in g e d u c a tio n e x p e rien c e under responsible sponsorship and qualified instruction. Records will be kept for all individuals who wish to participate in the program . A t any time, a participant m ay request a transcript th a t will contain inform a tion regarding the num ber of CEUs which he or she has accum ulated. Kansas City Bank Schedules Correspondent Conference The Commerce Bank of K ansas City, N .A ., will host its 1978 C o rre sp o n d e n t B a n k C onference T hursday, April 20, a t the Alameda Plaza Hotel in K ansas City. This year’s them e is “ Professionalism in B anking—The Commerce Bank of K ansas City A pproach.” G uest speakers include Dr. E arl L. Butz, former secretary of agriculture and presently dean em eritus of agriculture a t Purdue U niversity, and M orton I. Sosland, editor and publisher of “ Milling and Banking News” and president of the Sosland Companies, Inc. Discussions will be led by various bank experts covering the fields of portfolio m anagem ent, corporate and retail lending, bank cards, estate planning, agribusiness, cash m anagem ent and other fields. T he o n e-d ay conference w ill conclude w ith dinner and en tertain m ent featuring Dian H art and Glenn Ash. When portfolio management becomes a second full-time job, you need a full-time investment management service. Subscribing to the Harris Bank's AM AS (Asset Management Advisory Service) is a convenient way for you to give your fixed incom e portfolio the attention it deserves w ithout taking valuable tim e away from your other responsibilities. AM AS is a “ one stop” investm ent service that makes the capabilities of the Harris Bank and its Investm ent Department available to you in four key areas: advice, execution, cashiering and reporting. In addition to advisory and functional services, AM AS also offers you the kind of individual attention that perm its Harris investm ent experts to meet changes in portfolio requirem ents and strategies when you need them. All it takes is a phone call to your AM AS representative. Harris Bank AM AS can be an invaluable tool in keeping up with market conditions and other factors that affect your investm ent decisions. You can learn more about AM AS by contacting your Harris Banker, or by w riting or calling the Harris Bank Investment Department at 312/461-3277. You should have a Harris Banker.® HARRIS BANK. Harris Trust and Savings Bank, 111 W, Monroe St., Chicago, III 60690 Member F D I C . Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 We give our correspondents In the Midwest three things no other bank can. Ted Axton, Rich Akin and Mike Byrne. They’re all yours The collective experience, dedication and knowledge of three full-time professionals, backed by top management commitment and the extensive facilities of one of the finest banks in Chicago. Most banks provide the same basic package of correspondent services. Cash letter analysis, over- line assistance, computer capabilities. But the American National Bank offers its correspondents all that and Mike, Ted and Rich, too. These men know the territory and can respond quickly to your needs. So if you’re a bank in the Midwest that wants more from its correspondent relationship, call Ted, Rich or Mike. At American National Bank. American National Bank and Trust Company of Chicago 33 N o rt h L a S a lle / L a S a lle a t W a c k e r 6 0 6 9 0 / P h o n e (312) 661-5000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 Illinois News JOHN R. MONTGOMERY W. J. HOCTER Pres. Exec. V.P. Chicago Chicago Pekin Banker Retires William E. Troutm an, vice chair man of F irst N ational Bank and T rust Company of P e k in an d d ire c to r an d cashier of F irst State Bank of Pekin, has re tired from both p o s itio n s . H e continues as di rector and presi dent of Court TROUTMAN Acceptance Company, holding company control ling the shares of F irst S tate Bank of Pekin. The retirem ent culm inated 44 years of banking experience begin ning in 1934 at the Central Bank and T rust Company of Denver, Colo. In 1961, Mr. T routm an assum ed the presidency of Rushm ore S tate Bank in Rapid City, S.D ., and was elected president of Group V of the South D akota Bankers Association during his tenure there. He also served as executive vice preisent of People’s B an k a n d T r u s t C om pany of W aterloo, la. M r. Troutm an was nam ed presi dent of Pekin’s F irst N ational Bank and T ru st Company in 1968, a post he held until becoming vice chairm an in 1976. Additionally, he was elected president of F irst S tate B ank of Pekin upon its chartering in 1971, a project in which he was instrum en tal. First National of Hinsdale Announces Staff Changes The F irst N ational Bank of Hinsdale has announced the election of Willys H. Monroe to its board. He is a senior vice president and partner in the firm of Booz, Allen & Ham ilton. Eugene C. Ognibene has been elected senior vice president. He recently joined the bank following 10 the F irst National Bank of Roches y e a rs a t th e N o rth e rn T r u s t ter, M inn., before joining the Peoria Company in Chicago. bank in February. In an earlier action, the board elected J . K. McCoy, president, to chief executive officer. M r. McCoy Elected at Woodfield joined the bank in 1963. He succeeds Dale M. H rouda has been elected D. F. W arnke as chief executive cashier of Suburban N ational Bank officer. M r. W arnke retired a t the of Woodfield. He joined the affiliated end of 1977 after serving the bank Suburban Bank of Rolling Meadows since 1955. Joseph Lancaster has been elected in 1975 after graduation from M arquette U niversity College of assistan t cashier after about two Business A dm inistration. He was years of operational duties at the assistan t cashier there until joining bank. He had previous experience in the F irst Ogden Banks. the Woodfield bank last January. Galesburg Bank Opens Sandburg Office T H E Sandburg Drive Office of the F irst G alesburg National Bank has opened, according to Richard M. Bishop, president. The office features three officers, new a c c o u n ts a re a , six te lle r w indow s, tw o a fte r-h o u r te lle r windows, nine drive-up lanes, one exclusively for commercial use, and a 24-hour Bank Machine. It also will have 270 square feet of vault storage space and 6,500 square feet of office space. The local architectural firm of Weber, Griffith and Mellican de signed the parking and drive-up layout and traffic pattern. Officers will include: Edwin Hick, assistan t vice president and m ana ger; Charles E. Haw kinson, assis ta n t m anager, and Robert Steele, operations officer. Mr. Hick has been with the bank for 20 years and has served in commercial lending. Mr. Hawkinson, w ith the bank since 1971, m o st re c e n tly w as an instalm ent loan officer. Mr. Steele has 30 years of experience in teller operations, m ost recently as m ana ger of the Prairie Street Drive-Up. Elected at Peoria The election of Howard P. G allatin to the position of tru s t officer has been announced by the Commercial National Bank of Peoria. A native of Milwaukee, Mr. G allatin was graduated in 1968 from the U niversity of Iowa where he m ajored in economics and from the university’s law school in 1974. He worked in the tru s t departm ent of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 58 Illinois N ew s GROUP SIX officers are shown from left: pres., Howard R. Walker, v.p. First Nat’l., Metamora; v.p., Gordon Brown, pres., St. Bk. of Havana, and secy—treas., Donald Whitier, v.p., Citizens Nat’l., Toluca. ANNUAL GROUP MEETINGS Defend New Illinois Banking Survey S INCE the current Illinois legis lative session is concerned w ith appropriations and budgetary m a t ters, there is little liklihood th a t any action will be taken to affect banking structure this y e a r.” This was the comment made by Robert Schrimple, former executive vice president of the Illinois Bankers Association, a t the recent series of annual group m eetings. Mr. Schrim ple is now serving as legislative consultant for IB A. Mr. Schrimple reported th a t IBA is backing an am endm ent to the usury rate law whereby a charge of $15 can be made on loans of $800 or less. This is expected to be brought up as “emergency legislation” this year. New Survey William J . Hocter, executive vice president of IBA, answered ques tions on a new survey sent to all members. The survey asks for opinions on banking structure, as well as on a wide variety of other c u rre n t b a n k in g s u b je c ts . The Council of A dm inistration developed the survey with the help of a well-known m arketing organization in an attem pt to determine the m ajor forces im pacting Illinois banking in 1978. Some IBA members felt th a t the survey prefaced the questions by suggestive comments concerning Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis branching by savings and loans and the issuing of share drafts by credit unions. They were assured by Mr. Hocter th a t IBA is not attem pting to influence the answers to the survey. Each group passed a resolution against the autom atic transfer of funds from savings to checking as proposed by the Fed and FD IC. The Fed had asked for comment on the IBA PRESIDENT John Montgomery des cribes new survey to the press. proposal as of M arch 20. As of M arch 1, only 14 banks throughout the nation had responded, indicating an indifference to the subject. Don Houk, vice president of Commercial National Bank, Peoria, issued an appeal during the Group 6 m eeting for a compromise between the IBA and AM BI (Association for Modern Banking in Illinois). The latter group withdrew from IBA several years ago because of its more liberal views on branching and registered m ulti-bank holding com panies. Mr. Houk said th a t 1978 is the year to form a compromise, so th a t all Illinois banks will face the 1979 legislature as a solid block. Commercial National is a member of both IBA and AM BI. President John M ontgom ery said th a t differences of opinion on banking structure am ong Illinois banks arises from the fact th a t varying degrees of competition are prevalent around the state. “ The rapid changes are im pacting some banks to a greater degree than o th ers,” according to Mr. M ontgom ery. Turning to another subject, he ad d e d t h a t th e in te r e s t r a te differential is only one factor in competing with savings and loans. He gave as an example a savings and loan in Chicago th a t has $1.9 billion in share accounts. A nnual earnings for this institution were less than $5 million, which is far below an a c ce p ted fig u re for co m m ercial banks. He indicated th a t savings and loans can spend a greater am ount of money on advertising and promotion because high earnings are not a requirem ent. Group 6 in Peoria again boasted a record registration of 421. 59 unique exhibit on counterfeit money in the bank lobby, according to Gavin Weir, chairman. On display were m any variations of the actual counterfeit notes presently being passed in the C h ic a g o la n d a re a . T he e x h ib it instructed both the novice and experienced money handler on w hat to look for and how to detect counterfeits. A popular portion of the exhibit then allowed visitors to actually test their newly gained knowledge by detecting counterfeit from genuine U .S. currency. *** Illinois N ew s First National of Lansing Announces Staff Promotions Gilbert J . Rynberk, J r., president of the F irst N ational Bank ol Lansing, recently announced the promotions of Thom as C. Cornwell and Stanley S. Pam edis to vice presidents, and Helen M. Kennedy to cashier. Mr. Cornwell will continue as tru s t officer and will supervise the tru s t operations. He joined the bank in 1972 after receiving his Doctor of Jurisprudence degree from Indiana U niversity. Mr. Pam edis will continue to supervise and operate the instalm ent loan departm ent. He is a business graduate of Governors S tate U niver sity and joined the bank in 1971. M rs. Kennedy, formerly assistan t cashier, will be in charge of bank operations. She joined the bank in 1961. T rust Co., Chicago. Elected to serve a one-year term is Tom P atton, F irst National Bank, Shawneetown. INCENT L. deMoya, president of Chicago’s H artford Plaza Bank, has announced the election of two new members of the b an k ’s board. They are: Clinton E . Frank, chairman of Bridelwood Corp., and honorary chairm an of a m ajor Chicago advertising agency bearing his name, and Sidney Friedland, vice president and treasurer of the Florsheim Shoe Company. *** V Promoted at Elmhurst William T. Giova, president of the Bank of E lm hurst, has announced the following promotions: Duane T. Carpen, William D. Howe and Z. J o h n K oper to a s s is ta n t vice presidents; and Rose DeFranceso, P at Glanville and M ary Anne Migasi to assistan t cashiers. Elected at N. Aurora John L. Oberweis has been elected to the board of directors of the Bank of N orth A urora. He is president of Oberweis Dairy, Inc. Michael E. Godwin has been elected vice president and M ara L. Tomsons assistan t vice president of Sears Bank and T rust Company. Mr. Godwin has joined the bank to To Head IBA Marketing, Public Relations Division G. Thomas Andes, executive vice president and director of The F irst National Bank of Belleville, has been elected president of the Illinois Bankers A ssociation’s m arketing and public relations division. Others elected include: first vice president, Gerald Feezor, president, Peoples Bank of Marion; second vice president, Dennis McMillan, vice president, Tuscola N ational Bank, and secretary, Karen Reeves DeLee, IBA director of communications. Executive comm ittee members elected to serve a three-year term are Ellis W aller, vice president, Illinois N a tio n a l B a n k & T r u s t C o., Rockford, and Jim Adam son, vice president, M etropolitan Bank & M. E. GODWIN M. L. TOMSON assum e responsibility for the internal audit function, and Ms. Tomsons will become head of bond departm ent operations. *** The Chicago City Bank and T rust Company, in cooperation with the United S tates Secret Service, Chi cago Division, recently displayed an Helen J . Tierney, vice president Financial Shares Corporation, Chi cago, has been n am ed to th e p la n n in g co m m itte e of th e Chicago M etro politan Housing an d P la n n in g C o u n c il. T h e council is a non p ro fit reg io n a l in s titu tio n for H. J. TIERNEY informed citizen action on m ajor housing, planning and development issues. In addition to the M HPC post, Ms. Tierney serves on the H ospital Review Committee of the City of Chicago H ealth System s Agency. She is also a director of the Chicago Chapter, Bank M arketing A ssocia tion, and is a member of several other professional and comm unity groups. Financial Shares Corporation is a Chicago-based m arketing and tra in ing consulting firm. *** The board of Capitol Bank of Chicago has announced the election of Amy Mazzolin, m anager of the b ank’s m arketing and advertising projects, to its board. She has been with the bank for two and a half years. *** Gayle R. Redfem has been elected custom er service officer in Michigan Avenue N ational B ank’s custom er service center. She joined the bank last December after serving as a m o rtg a g e loan officer for th e Telegraph Savings and Loan in Chicago. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 Stan Peterson Vice President 372-7067 Jackie Dunn Correspondent Services Coordinator 372-7054 Mike Higgins Assistant Vice President 372-7062 Call us by name (and call us often!) One of the beauties of dealing with Midland for Correspondent Bank services is the ac cessibility of our staff and the personal attention they can give you. Jackie Dunn, for instance, our Correspondent Services Coordinator ... is never more than a phone call away. (We say, if you want something done, call Dunn!) The solid fact is that these three people represent an institution of financial strength and broad experience in all areas of Correspondent Banking. Call us for assistance. Overlines Transit Federal Funds Bank Stock Loans Personal Loans Investments Credit Cards Money Transfer Data Processing Safekeeping Foreign Drafts & Currency Keogh Plan Right on the money. M idland National Bank Of Minneapolis An Affiliate of Northwest Bancorporation The Downtown Bank with Two Locations S e c o n d A venue S o u th at F o u rth S treet T h ird Avenue S o u th at S ix th S treet Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 Minnesota News G. BEITO Pres. Thief River Falls Mr. Lucken, who joined the bank last July, had previously been m anager of the Barron Credit Union in Barron, Wise. M rs. Florsheim has been with the bank since 1973. Brochure Features ATM Program at Bloomington A new case history brochure published by Mosler features the ATM program at Community State Bank, Bloomington. The bank has To Head Benson Bank N. Thomas W iedebush, executive Lohr joined the bank in 1963 serving three Mosler Teller-M atics run off vice president, has been elected as head teller and assistan t cashier. the same controller and capacity to In 1974 she was appointed cashier. expand the present system by three p re s id e n t an d M rs. Peil formerly was with Singer term inals. m anaging officer Among the highlights of the Sewing Company for three years. of T he F ir s t brochure is an explanation of how State Bank of the bank effectively solved the Benson. He suc Duluth Banker Retires problem of expensive free checking ceeds Jam es E. A rthur W. Danielson, cashier of with new options including its Ever H a u s a u e r who the F irst National Bank of D uluth, Ready Teller System . joined the W est retired M arch 31 after 31 years of ern Bank and serv ice to th e b a n k a n d its First National, Hutchinson, T rust Company predecessor, F irst American N ation of M arshall. Announces Staff Promotions N. T. WIEDEBUSH al Bank. Mr. Danielson joined the M r. W ie d e W. T. Richards, president and bush began his career with F irst bank in 1946, was promoted to chairman of the F irst National Bank a s s is ta n t c a sh ie r in 1956, to B an k S y ste m in 1968 as an of H u tc h in s o n , a d m in is tra tiv e a s s is ta n t a t th e assistant vice president in the has an n o u n c ed custom er services departm ent in Aberdeen National Bank in South th e f ol l owi ng D akota. He also has been with the 1962 and to cashier in 1973. promotions: Ch liaison credit office of F irst Bank uck Draeger, a s System and the F irst National Bank Bloomington Bank Names sistant vice pres in Miles City, M ont. He joined the ident; Lee Clark Vice President, Director Benson bank as vice president in The American State Bank of a n d R i c h a r d 1976 and was elected executive vice Bloomington has announced the B u r g a rt, a s s is president earlier this year. ta n t cashiers, to election of Rob a s s i s t a n t vice ert J . Facente, presidents; and C' DRAEGER J r., as vice presi R uth McKay, Doris Mohler and d e n t. F o rm e rly State Bank of Worthington M au reen H a n tg e , to a s s is ta n t with F&M Sav cashiers. Announces Staff Promotions in g s B a n k of Mr. Draeger was w ith the F irst The S tate Bank of W orthington M i n n e a p o l i s , State Bank of Brownton for 10 years has announced the following staff M r . F a c e n t e prior to joining the H utchinson promotions: Howard Meyer, execu joined American bank. M rs. Clark joined the bank in tiv e vice p re s id e n t; R a lp h E . State in Septem Schenck, J r., vice president; Deloris ber of 1976 as R. J. FACENTE Lohr, assistan t vice president, and a s s i s t a n t v i c e Gwen M. Peil, assistan t consumer president in the loan departm ent. He loan officer. is a business graduate of the Mr. Meyer, who joined the bank in U niversity of M innesota. The bank also announced the 1972, previously was cashier at Kanabec S tate Bank in M ora and election of Neil E. McGraw to its operations coordinator of the bank board of directors. Mr. McGraw is group w ith central offices in Eau president of Gill Brothers Funeral C laire, W ise. He jo in e d th e Chapels, Inc., Minneapolis. W orthington bank as assistan t vice R. BURGART L. CLARK president and agricultural represen 1962 as an assistan t cashier-adm in tative and was promoted to vice Advanced at Hastings Bank F irst National Bank of H astings istrative secretary. In 1975 she president in 1973. Mr. Schenck has been w ith the has announced the promotions of became a loan officer. Mr. B urgart bank since M arch of 1976 as cashier. LaRoy Lucken to vice president and joined the bank in 1975 from He formerly was w ith the F irst J u d ith F lo rsh e im to a s s is ta n t Community Credit Company of Hutchinson. M innetonka City State Bank. M rs. cashier. T. L. JEFFERS Exec. V.P. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis Northwestern Banker, April 1978 Twin Cities News 62 . H. ANKENY, JR., president and chief executive officer of the D F ir s t N a tio n a l Bank of M inne apolis, has a n nounced the a d dition of three members to the bank’s board of directors: George H. Dixon, presi dent and direc tor, F irst Bank G. H. DIXON System ; Robert H. Edwards, president, Carleton College, Northfield, M inn., and Richard L. Schall, vice president and chief adm inistrative officer, D ayton H udson Corporation. M r. D ixon r e t u r n s to F ir s t M inneapolis’ board after having served as president, then chairman R. H. EDWARDS R. L. SCHALL and president, from 1968-76. He was Deputy Secretary of the U .S. Treasury in 1976-77, then assum ed his present position with F irst Bank System . The bank also has promoted four of its officers to vice presidents and f our o th e rs to a s s is ta n t vice presidents. Named vice presidents are: Char les H. Strothman, corporate banking division D; D. Michael Anderson, corporate banking division I; David A. McChesney, instalm ent business loans, and Roger A. Bowers, tru s t Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pension and profit sharing m anage m ent departm ent. Named assistant vice presidents are: Lawrence A. Gregerson, corpor ate banking division C; Sally O. Forsberg, division H, professional accounts; Allen J. Anderson, real estate finance division II, and Robert G. Borgeson, m etropolitan corporate banking division. Mr. Strothm an began his career with F irst Minneapolis in 1964 in commercial banking. Mr. Anderson joined the bank in 1965, Mr. McChesney in 1960, and Mr. Bowers in 1968. Mr. Gregerson joined the bank in 1973 as a credit analyst. M rs. Forsberg, with the bank since 1976, formerly was with the Sum m it S tate Bank. Mr. Anderson joined the bank in 1973 and Mr. Borgeson in 1968. Seven new officers with functional titles have been announced: M. Claire Canavan and Sandra J. Anderson, commercial banking offi cers; Thomas Hanold and Sabina Sten, international banking officers; Kenneth L. Dagel, bond investm ent officer, bond departm ent; Marianne McArdle, tru s t officer, tru s t agencycustody division, and Michael R. Addy, system s officer, autom ated s y s te m s re se a rc h an d p la n n in g division. *** s u p e rv is o r, to loan c o lle ctio n s officer, and James J. Drealan and J. CARLSON R. BRIGUET J. DREALAN D. JOHNSON Dorie M. Johnson, to tru s t officers. Mr. Briguet formerly was w ith the F irst N ational Bank of Saint Paul. Mr. Drealan had experience w ith the N orthw estern National Bank of Minneapolis before joining the Saint Paul bank. M s. Johnson, formerly tru s t adm inistrator, has been w ith the bank since 1974. * * * John H. Carlson has joined the N orthw estern National Bank of Saint Paul as vice president of hum an resources, according to G. Richard Slade, president. An accred ited personnel m anager from the A m erican S o ciety of P e rso n n e l A dm inistration, Mr. Carlson form er ly was w ith Blue Cross and Blue Shield of M innesota. Also announced were the prom o tions of the following staff members: Richard J. Briguet, who recently joined the bank as collections Richard Kuxhausen has been appointed m arketing officer and sales training m anager in the regional m arketing services d epart m ent of F irst Bank System , Inc. He joined the staff in 1977 as sales training m anager. He had previously served as senior consultant and Minneapolis m anager for M arketing Psychologists, Inc., Chicago, and as m arketing consultant and adm inis trative m anager of Performance Incentives Corporation, M inneapo lis. 63 Leasing is a capital idea. Production machinery, data processing systems, materials handling equipment, whatever-the single strongest reason why a company should lease is to conserve working capital. In addition, the current line of bank credit will not be disturbed. Remember. A company makes money by using equipment. Not by owning it. Now when you consider reasons for using Lease Northwest instead of some other leasing company, you get into things like competitive rates, quick credit decisions, and full customer service. Plus more. If you have a customer who could profit from leasing, call Lease Northwest, Dave Michael at 612-372-7416, Mpls., Roger Meier, 402-536-2310, Omaha. We will work with you to keep your customer happy. LEASE NORTHWEST, INC. Affiliated with Northwest Bancorporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — Northwestern Banker, April 1978 64 M in n e s o ta News 8.35% , and the prime rate 8 % %. By year-end, rates will ease, he said. BANQUET finds James T. Gowan (standing), v.p. in charge of correspondent dept.; Andrew G. Sail (left), exec, v.p.; David G. Jones, v.p. & econom ist from Audrey G. Lanston, New York, and Richard C. Swanberg, v.p. “Profit Improvement 7 8 ” Sponsored by First National Bank of St. Paul By MALCOLM FREELAND Publisher HORT term interest rates will s ta rt moving up late this m onth and will continue the uptrend through J u ly .” This was the prediction made by David M. Jones, vice president and economist for A ubrey G. Lanston & Co., Inc., New York. Mr. Jones appeared as a key speaker a t the correspondent bank m anagem ent conference sponsored by The F irst National Bank of St. Paul last m onth. S Mr. Jones indicated th a t the Federal Reserve will exert strong influence on short term rates, as William Miller takes up where A rthur Burns left off in the fight against inflation. O ther influences will be a strong consumer credit expansion and anticipated large borrowings by the Treasury. Mr. Jones sees an inflation rate in 1978 of seven percent. He sees rates hitting a peak in June as follows: Fed Funds 7V2%; One-Year Treasury Issues Profit Improvement The Conference was term ed “ Profit Im provem ent ’78.” Officers from m ajor divisions of the host bank presented their thoughts in attaining this them e. Jam es T. Gowan, vice president in charge of the correspondent departm ent, serv ed as m oderator. S B A /F m H A loan participations were discussed by Richard C. Swanberg, vice president in the investm ent departm ent. He explain ed how com m unity banks m ight gain greater liquidity through the secon dary m arket. He said th a t new loans and old loans can qualify for sale in the open m arket. In addition to gaining greater liquidity, banks can increase earnings by getting a one per cent service fee. They can also increase their custom er base and offer greater service to their comm unity, according to Mr. Swanberg. A full length article on the subject will appear in the May issue of the N orthw estern Banker. Tax Reform The Tax Reform A ct of 1976 was discussed by Thom as T. Dwight, and Jon A. Theobald, vice presidents of the F irst T ru st Company. Mr. Dwight reminded bankers th a t the next exception is $134,000 this year, and it will increase to $175,625 by 1981. He also m entioned the importance of the new $250,000 m aximum m arital deduction. Mr. Theobald illustrated the advantages of “ two tru s t planning,” which is im portant in reducing or OLD FRIENDS—G. M. Pieschel, pres., Farmers & Mer. St. Bk., S pringfield, Minn.; George Volz, pres., Farmers & Mer. St. Bk., New Ulm, M inn.; Don Buckman, v.p. host bank, and Marv Campbell, pres., Citizens St. Bk., Brainerd, Minn. RIGHT— Speakers included Ken Heiser, correspondent bk. o ff.; William A. Wood of ABA staff, and Richard C. Swanberg, v.p. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M inn eso ta News 65 TAX REFORM was discussed by Thomas T. Dwight, v.p., and Jon Theobald, v.p., First Tr. Co., and Terrance Svejda, systems off., host bank, spoke on the Automated Payments Exchange. RIGHT—Hosts James A. Russell, a.v.p.; Robert Peroutka, a.v.p.; Judith Owen, real estate off.; and Andrew G. Sail, e.v.p. eliminating taxes following the death of the second spouse. Both speakers indicated the importance of having wills updated following the 1976 tax changes. A sset M anagem ent Loan and investm ent policies were discussed by Andrew G. Sail, executive vice president, and Robert J. Peroutka, assistan t vice presi dent. M r. Sail emphasized the im por tance of a w ritten loan policy, outlining the philosophy of lending for each com m unity bank. He said the policy should include im portant ingredients such as types of loans, lending lim its for individuals, geographic area, and type of loan review - b u t the policy should not be so restrictive th a t it removes initiative for lending personnel. A sample loan policy for medium-size banks was given to each guest. Mr. Peroutka stated th a t a w ritten investm ent policy leads to an improvement in handling invest m ents. He said bankers should list objectives, size, mix, m aturity distribution, and quality in form u lating investm ent policies. Mr. Peroutka indicated th a t losses in the past few years have been frequently due to poor selection of m aturities and not due to quality. M ortgage H ints Ju d ith A. Owen, real estate officer, explained proper procedures for m aking FH A , VA and conven tional real estate loans. She emphasized the importance of correct appraisal and credit inform a tion in selling m ortgages to FNM A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis or other secondary m ortgage inves tors. The bank plans a training program for m ortgage loan people late this m onth. A PEX Current information on the Upper M idwest A utom ated Clearinghouse was presented by Terrance E . Svejda, system s officer, and effec tive cash m anagem ent was discussed by John C. W hittaker, division assistant. Mr. Svejda explained how corporations can benefit from com puterized cash m anagem ent through “ FirstL ink S ystem ,” based upon the Chemical Bank of New York’s information service. William A. Wood, J r ., ABA governm ent relations division, ex plained the new options offered banks under the Treasury Tax and Loan Investm ent Program . Banks will be able to operate under the “ Note O ption” and elect to hold p art of the T reasury’s cash and function as a p art of the collection system - or they will be able to elect the “ Rem ittance O ption” whereby they will function as a collector only. F urther revisions on the current rules are anticipated. The 1978 conference was high lighted by Michael H . Mescon, chairman, departm ent of m anage m ent, Georgia S tate U niversity, A tlanta, as he talked on “ M anage m ent of an Effective O rganization.” Mr. Mescon rem inded guests th a t a m ajor problem we face is the failure to recognize and reward people as individual hum an beings. He said th a t bankers should regard change as p a rt of the sta tu s quo. Otherwise, they m ay face the same fate of W. T. G rant stores and Abercrombie & Fitch. He concluded by saying, “ If you don’t like the way things look at the bottom , take a look a t the top, In m ost instances, performance is reflective!” Marquette Assignment William Klein has been nam ed cor respondent banking officer for M ar quette National Bank, M inneap olis. H ew illtravvel N orth Dako ta and M ontana. M r. Klein was an in s ta lm e n t loan officer at S a v a g e S ta te Bank prior to joining M arquet W. KLEIN te . O r i g in a l ly from St. Peter, he attended the U niversity of M innesota and gradu ated from M ankato S tate College. Named at Elk River S. R. W heaton, executive vice president of The F irst N ational Bank of Elk River, has announced the promotion of Richard Van E rp to assistan t vice president, consumer loans, and the election of Gwen M cGhan to assistan t cashier, opera tions. Mr. Van E rp joined the bank in 1975 as instalm ent loan officer after experience as a loan officer in Spring Lake Park and E au Claire, Wise. Ms. M cGhan joined the bank as a teller in 1966. She has been supervisor of teller and bookkeeping operations for the p ast two years. Northwestern Benker, April 1978 Model 1780 Automatic Coin Wrapper The Model 1780 handles unculled coins with reliability, efficiency and high speed .. . up to 24 wraps per minute. It’s quiet, portable and easy to operate. Six simple settings control the total coin packaging operation. The 1780 will count, verify, and batch in quantities of five to 99,999. And the Model 1780 offsorts coins smaller than the denom ination being packaged. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Brandt helps you find tim e to make m oney ...then we sort, count, endorse, cancel, wrap it •' Brandt products support the people who meet your public and perform the up-front custom er services. They are the real sales p e o p le . . . if you train and give them tim e to sell. Brandt money processing systems are designed to do just that . . . to reduce errors, speed money handling and increase efficiency . . . free more tim e for your tellers to service, sell and keep your customers happy. Up fron t or back in the money room, Brandt equipm ent is quietly at work helping to build a better profit picture fo r you. Each piece of Brandt equipment, whether it is a sorter/counter, cashier, currency processor or automatic coin wrapper it’s designed to fit in t o a Brandt System. You may start with a coin wrapper or a cashier, but as you add equipm ent modules, it’s good to know that there’s a master plan to Brandt Systems. Every piece of equipm ent is com patible with the next. But equipm ent is only half of the Brandt story. The other half is a service network that stretches nationwide with 130 service branches with Brandt trained servicemen backed by a ready supply of replacement parts. Call your Brandt Representative fo r the full story this week. When it comes to Bigger Bottom Line Profits, come to Brandt for money processing answers. Brandt SINCE 1890 Brandt, Inc. Watertown, Wl 53094 Brandt® Cashier® Countess® Model 570 Electronic Cashier 100% accurate coin delivery, new simplified keyboard and visual audit display for instant verification Model 825 Countess Model 936 Coin Sorter/Counter Counts, batches, endorses or cancels checks and currency up to 1200 per minute. Counts, sorts and totals up to 600 coins per minute, autom atically delivers preset amounts to each bag. Model 815 Countess Jr. Counts, batches, endorses or cancels checks, currency & foodstamps . . . up to 750 per minute. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Model 1702 « Automatic Coin Wrapper Economical coin wrapping system that’s small, lightweight and simple to operate. Model 748 Electric Coin Counter/Packager Processes hundreds of coins per minute, ideal for processing large quantities of coins for bagging or packaging. 68 Twin Cities N ew s F irst System Services, Inc., the services subsidiary of F irst Bank System , Inc., has announced the promotions of D evem e Danburg and Stanley W. Janssan to assistant vice D. DANBURG S. W. JANSSAN presidents-exam inations. Mr. D an burg joined F irst Bank System in 1950 a t The F irst National Bank of Windom, where he was appointed auditor in 1952. Mr. Janssan began his banking career in 1948 at the F irst S tate Bank of Graceville. *** The Twin City Lenders Associa tion recently elected officers and board members for 1978. They are: president, John Burlowski, assistant cashier, National City Bank of Ridgedale; vice president, Robert Facente, Jr., vice president, Am eri can State Bank of Bloomington; s e c re ta ry , S te v e K in g , len d in g officer, Hillcrest M id-America State Bank of Maplewood, and treasurer, George Slinkard, vice president, M etropolitan S tate Bank. The following board members also w ere an n o u n ced : Joh n B a rth , assistant vice president, N orthw est ern National Bank, of St. Paul; S an d ra D o c k te r, a s s is ta n t vice president, M arquette National Bank of M in n e a p o lis; Tim D o h er ty , assistan t vice president, Community S tate Bank of Bloomington; Jerry Larson, assistan t vice president, N orthw estern S tate Bank of Osseo, and John Luce, assistant vice president, F irst Edina National Bank. *** F irst Bloomington Lake National Bank has announced the elections of W . N orm an S w en so n to vice president and cashier and Sheldon R. T he c o m m e r c ia l m a n ’s h otel in dow ntow n Minneapolis-| The Hotel Leamington in colorful Minneapolis ! Close to all business calls, so convenient for e n tertain in g and m eeting clients . . . excellent dining facilities, e n te rta in m en t and m eeting facilities. 600 outside m odern sleeping room s 80 luxurious suites 15 penthouses w ith patios 100 room M otor Hotel Am ple p ark in g with d irect hotel m otor e n tran ce C om m ercial ra te Largest convention and m eet ing facilities in the northwest, featuring the fabulous Hall of States, Hall of Cities and Hall of Presidents. TH R EE GREAT H O TELS IN ONE 612-370-1100 e a m in g to n 3rd Avenue South — 10 and 11 Streets Minneapolis, Minnesota 55404 Northwestern Banker. April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W. N. SWENSON S. R. CRAVENS Cravens to assistant vice president, commerical lending. Mr. Swenson began his career at the bank in 1966 as utility teller. He became assistant operations m ana ger in 1968, assistan t cashier in 1972 and cashier in 1975. In 1973 he joined the Personal Banking Center with operations duties. Mr. Cravens worked part-tim e at the bank before joining it full time in 1973. He became assistan t cashier, instalm ent lending in 1974. In 1975 he joined the Personal Banking Center and in 1976 was named sales finance m anager. He was named commercial loan officer in Septem ber of 1977. *** The F irst N ational Bank of Saint Paul has entered into an arrange m ent with the Chemical Bank of New York to m arket its new Chemlink c o m p u te riz e d c a sh m a n a g e m e n t system in the Upper M idwest, according to Andrew G. Sail, executive vice president of F irst National. The system , to be m arketed by the F irst of Saint Paul under the name FirstLink, involves a highly advan ced information gathering network th a t perm its the corporate treasurer to quickly assess his com pany’s cash position, make evaluations, and execute borrowing and investm ent decisions based on accurate, up-tothe-m inute information. *** Two new directors recently were elected to the board of the F irst National Bank of Saint Paul. They are: George H. Dixon, president and director of F irst Bank System , Inc., and Judith K. Healey, executive director of the M innesota Council on Foundations. Mr. Dixon was president of the F irst National Bank of Minneapolis from 1968-72 and served as president and chairman from 1972-76. In 1976 he was named deputy secretary of the Treasury, D epartm ent of the Treasury, W ashington, D.C. 69 * u „ . . t j "Part of my job is to understand your job.” 11rn Clmvan. Vice Jim G o w a n , V ic e P resident, C orre sp o nd e nt B a n k in g D iv is io n (6 1 2 ) 2 9 1 -5 5 7 7 “Operating the whole Correspondent Bank D ivision is my responsibility. A nd that means that it’s my duty to see that our correspondent customers are getting the best service possible. “To do that, I have to really understand correspondent banks’ needs, so that my division can tailor-make banking programs that best suit those needs. A n d I think the best way to stay in touch is by talking with correspondent bankers. T h at’s w hy I not only spend time out in the field, I also attend most of the regional conventions. T h e more time I spend with our correspondent customers, the more I learn. “Part of my job is to understand your job. S o next time you have an idea, a question or a problem, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis don’t hesitate to share it with m e— or with one of our people. Together w e can build better Correspondent services that truly serve your needs, and help you serve your customers best.” Correspondent Bank Division Member F.D.I.C. A Full Service Bank We do our job. \buget the credit Northwestern Banker, April 1978 70 Twin Cities N ew s The W estern S tate Bank of St. Paul has announced the promotion of A. William Sands, Jr., to president. A. W. Sands, Sr., who Schwinghamer, quality controller officer. Other promotions include: Phyllis A. Hoffman, card services officer, retail banking; and Inez V. Regan and Marilyn A. Reynolds, personal banking officers, Lake Street Office. *** N orthw estern National Bank of Minneapolis has elected Donald S. has served as p re s id e n t since 1936, has been nam ed c h a ir man. Hooper, John S. Hale, Alan D . Peck William Sands and Ted A. Sm ith vice presidents. is a graduate of A. W. SANDS the U niversity of M innesota and the W harton G radu ate School of Finance. Prior to joining the bank in 1969, he worked for two years at the F irst National Bank of St. Paul in commercial lending and equipm ent leasing. *** William W. George and John E. Pearson have been elected to the board of N orthw estern National Bank of Minneapolis. Mr. George is vice president of Litton Industries and president of Litton Microwave Cooking Products. Mr. Pearson is president and chief executive officer of N orthw estern Life Insurance Company. Merle Sampson has been elected vice p re s id e n t in th e h u m an resources departm ent, and Richard P. Huberty assistant vice president in the controller’s division. Mr. D. S. HOOPER J. S. HALE A. D. PECK T. A. SMITH Twelve persons have been prom ot ed to assistan t vice president and six others have been elected officers of the bank. Mr. Hooper, 40 joined the b ank’s tru st investm ent departm ent earlier this m onth to coordinate services to N orthw est Bancorporation (Banco) tru st companies in N ebraska, N orth M. A. SAMPSON R. P. HUBERTY D akota and South Dakota. He formerly was senior vice president Sam pson was m anager of organiza and treasurer of the F irst N orth tional planning and analysis for western T rust Company of South Honeywell, Inc., before joining the D akota, a Banco affiliate. Mr. bank in 1976. T hat same year he was Hooper will continue to office at elected assistant vice president and F irst N orthw estern in Sioux Falls. last May assum ed responsibility for Mr. Hale, 41, has been with o rg a n iz a tio n a l p la n n in g in th e N orthw estern since 1965. He was hum an resources departm ent. Mr. elected a tru s t officer in 1969, named H uberty joined the bank in 1964 and assistant vice president in 1972 and was elected an accounting officer promoted to section m anager in before being named section m anager personal tru s t in 1975. L ast M arch, of financial control in 1973. he was named section m anager in the Also promoted in the controller’s bank’s pension and profit sharing division are: Jam es J. Kuhn, Mary division. A . Sheflandand Jam es L. M ontague, Mr. Peck, 38, joined N orthw estern accounting officers, and Victor A. in 1963. T hat same year he was Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis named a tru s t adm inistrator. He was elected a pension tru s t officer in 1968, named assistan t vice president in 1971 and promoted to section m anager in personal tru s t in 1975. Mr. Sm ith, 60, has been w ith N orthw estern since 1943. He was elected a tru s t officer in 1966, named assistant vice president in 1969 and became section m anager in personal tru s t in 1975. Named assistan t vice president were: John R. Barlow, m arketing officer since 1976; Ardell C. Gilb, tax officer since 1974 and senior estate tax specialist since last October; Thomas E. Hatcher, pension tru s t officer since 1975 and senior pension adm inistrator since 1976; Ronald G. Hoffman, tru s t investm ent officer since 1974 and senior research analyst since 1977; Edward J. Meyer, Jr., section m anager and financial services officer since last A ugust; C. Roger Lundbeck, portfo lio m anager in the tru s t investm ent departm ent since 1974; Frederick K. Martin, tru s t investm ent officer since 1975 and senior portfolio m anager since 1977; Win J. Neuger, tru st investm ent officer since 1975 and investm ent strateg ist since 1977; Dennis L. Senneseth, tru s t officer since 1974 and investm ent strategist since 1977; John G. Skogm o, tru s t officer since 1975; and Jam es L. Swift, tax officer since 1973. Also promoted were: Gale R. Friedrich, to tru s t operations officer; Frances M. Gingras, to hum an resources officer; Thomas M. H estwood, to hum an resources officer; Kathleen B. Hoelscher, to probate officer, Thomas R. M axwell, to financial services officer; and W al lace D. Stukel, to tru s t operations officer. Carl R. Pohlad, president of the M arquette National Bank of M inne apolis, has announced the election of A. L. ZELICKSON E. H. STOTESBERY 71 In correspondent banking services, we’re the specialists. Here’s how First Chicago, a $20 billion banking corporation, can help you serve your customers more productively. You know what your correspondent banking needs are. You also know what services your present correspondent bank provides. Check this list of First Chicago's com prehensive services. See if there aren't many ways we can work together more productively. Then call a correspondent banker at First Chicago, (312) 732-4101, or write us. DATA PROCESSING Point-of-Sale Techniques Bank Accounting Services Bank Information Systems Electronic Funds Transfers CREDIT FACILITIES Holding Company Lines of Credit Participations: Upstream and Downstream Intermediate Term Credit Liquidity Lines of Credit Commercial Finance Services: Inventoiy and Receivable Financing Corporate Financing Advisory Services Leasing Activities and Analysis Credit Information Small Business Administration: Loan Counsel MANAGEMENT ASSISTANCE Loan Portfolio Review Techniques Economic Forecasting Profit Planning and Forecasting Marketing and Business Development Advice Personnel Assistance Operations Planning Organization Planning Visual Aids: Slides and Closed Circuit TV Production TRUST BANKING Personal and Corporate Trust Services Trust Investment Advisory Services Monthly Investment Services Stock Transfer and Shareholders Services Dividend Reinvestment PERSONAL BANKING ASSISTANCE Bank Promotions YES Card™ Visa® Savings Programs Automobile Leasing Program Bank-At-Work/Direct Deposit Program OPERATIONAL SERVICES Cash Letter Clearings: End-Point & Float Analyses Coin and Currency Collections Money Transfer Federal Reserve On-Line Settlement Securities Custody Security and Coupon Collection Payroll Accounting Student Loan Servicing INVESTMENTS Government Securities Municipals Federal Agency Securities Federal Funds Repurchase Agreements Commercial Paper Certificates of Deposit Treasury Tax and Loan Accounts Money Desk Reviews Portfolio Analysis Services SPECIAL CORRESPONDENT SERVICES INTERNATIONAL BANKING Annual Correspondent Conference Account Referrals Mini-conferences and Workshops, Special Events Planning Record Retention and Reconstruction Cash Management Consulting: Collection, Concentration, Disbursement and Control Worldwide Locations Merchant Banking Money Market Instruments Letters of Credit Foreign Exchange Transactions Transfers and Remittances Ex-Im Financing MEMBERFDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 72 Twin Cities N ew s Dr. Alvin L. Zelickson and Edward H. Stotesbery to the b ank’s board. Dr. Zelickson practices derm ato logy in Minneapolis and is a clinical professor at the U niversity of M innesota. Mr. Stotesbery has been affiliated with the M arquette Bank group for 22 years, beginning as president of the M arquette S tate Bank of Columbia H eights. He now serves as vice president of M arquette B a n k ’s p a re n t c o m p a n y , B an k Shares Incorporated, in its bank adm inistration division. *** Jam es W. Reagan, president of the American National Bank and T rust Company, St. Paul, has announced the election of Jermome B. Crary and Ruth Johnson to the bank’s board. Mr. Crary is opera tions m anager of N orthw estern Bell. M rs. Johnson is president and chief executive officer of I.C. System , Inc., national collection and com put er services company. Mr. Reagan also announced th a t George B. Benz, vice president, has been a p p o in te d director of eco nom ic d e v e lo p m en t for th e bank. Mr. Benz joined American in 1971 as assis ta n t vice presi dent and m arket ing officer. In 1972 he w as tra n s fe rre d to the commercial loan departm ent and in 1974 was elected vice president in the m etropolitan division. *** Stephen E. Jacobs has joined the staff of Dain, Kalman & Quail, Inc., M inneapolis-based regional invest ment banking firm, where he will specialize in investm ent banking services for the industrial develop m ent revenue bond area. Until recently, Mr. Jacobs was a partner in the Minneapolis law firm of Ramier & Gries. Prior to th a t he was a tru s t officer of the N orthw est ern National Bank of Minneapolis. *** e Grove Bank Completes Facility DON Nordlie, pres., Mid America Natl. Bank, Cottage Grove, has announced completion of the bank’s new remote facility, Vi> mi. w. of the bank’s main fa cility. Located in the Cottage Square Shopping Center, the fa cility has 3 drive-in lanes and 2 walk-up windows. To Head Owatonna Bank D. B. ANDREWS A. G. UNSETH b a n k , h as been p ro m o te d to assistan t vice president for custom er relations, and Arne G. U nseth to assistan t vice president. M rs. Andrews has served in public and custom er relations as well as being a receptionist, secretary and representative in the new accounts departm ent. Mr. U nseth previously served in the loan departm ent of M arquette N ational Bank in M inne apolis. He has worked in finance since 1968. Elected Director at Roseville David B. Crockett has been elected a director of Mid America National Bank of Roseville. He is a realtor with the Keller Corporation. Named at Coon Rapids Named at Brainerd A ppointm ent of two new assistan t vice presidents has been announced by the F irst Mid America State Bank of Coon Rapids. Dorothy B. Andrews, a 10-year employe a t the Del Junker has been named to the board of directors of the American National Bank of Brainerd. He is president of the Crow W ing County A bstract Company, Inc. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The F irst National Bank of Owatonna has elected Allan C. C haffee p r e s i dent and a direc to r su cceed in g W ardD . Dwight, who has been elected chairman and will continue as m anaging of ficer until his re tirem ent on May 31, 1978. A. C. CHAFFEE M r. C haffee has been w ith F irst Bank System since 1958 when he joined the F irst M etals Bank and T rust Company in B utte, M ont. In 1973 he joined The F irst National Bank and T rust Company of Bismarck, N .D ., where he m ost recently served as vice president and senior lending officer. Joins Silver Bay Bank Thomas W. M ahoney has joined the F irst N orthw estern S tate Bank of Silver Bay as m anaging agent of its insurance center. He prev iously was m an aging agent of McConnell, M a honey & Compa ny, Inc., of Ox ford, Ind., and also has tau g h t T. W. MAHONEY college in Phila delphia, Pa. 73 “Correspondent banking at the American involves listening to other bankers express their professional ne e d s-a n d the delivery of services to satisfy those needs by a staff steeped in the whole gamut of banking knowledge." Mike McNeil Correspondent Bank Officer Am erican National Bank andHust Com pany Correspondent Division 5th and Minnesota Streets St. Paul, Minnesota 55101 612/298-6000 Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 74 First of the Black Hills Announces Staff Changes South Dakota News CHARLES T. UNDLIN J. I. MILTON SCHWARTZ President Rapid City Secretary Pierre National Bank of S.D. Announces Promotions The National Bank of South D akota, Sioux Falls, has announced the advancem ent of Dennis Amdahl to assistan t vice president, South Branch, Sioux Falls, and the election D. AMDAHL M. L. MYERS of M ary Lynn Myers to personnel officer, M ain Office, Sioux Falls. Mr. Am dahl began his career with the bank at the m ain office in 1969 as auditor. He transferred to the South Branch in 1972 and was elected loan officer. Ms. M yers joined the bank last January a t the main office. SunBank of S.D. Names New Officers Citizen’s S tate Bank in Clark. She has been the bookkeeping supervisor for the last year. Western Bank, Sioux Fails, Elects Facility Manager T. M. Reardon, chairman and president of W estern Bank in Sioux Falls, has an nounced the elec tion of Robb G. Keizer as m ana ging officer of W e ste rn B an k North. Mr. Keizer is a g ra d u a te of Sioux Falls Col lege an d has R. G. KEIZER been with the bank since 1971. M ost recently he has been instalm ent loan officer at W estern Bank North. Charles T. Undlin, president of the F irst National Bank of the Black Hills, has announced the following elections: Kenneth K. McLin, loan officer and assistan t m anager, Villa R a n c h a ero B ra n c h , an d D u a n e Bunkowske, loan officer and assis ta n t m anager, Robbinsdale branch. Mr. McLin has been loan officer and assistant m anager of the Lead office since M ay of 1977. Mr. Bunkowski formerly was personal loan officer and assistan t m anager of the Villa Ranchaero office. Elected to Board at Pierre J . Fredrick Forney has been elected a director of The Pierre National Bank, according to W alter H. Burke, chairm an. Mr. Forney is a partner in the Forney-N euharth Oil Company. SDBA Calendar May 11-12—A nnual Conven tion, Civic Center, Rapid City. Commercial Bank of Mitchell To Expand Gary Mennen has been elected loan officer and Jody Bymers operations officer of SunBank of South Dakota, Sioux Falls. Mr. Mennen, a native of LeM ars, l a . , has been w ith the bank since its sta rt in 1975. He formerly served as operations officer. Miss Bymers of Clark previously was w ith the G. MENNEN J. BYMERS Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BOYD Knox, chmn. & pres., Commercial Bank, Mitchell, has announced plans for an addition to the main bank building. Included will be an expanded drive-up designed to accommodate three lanes of traffic and a walk-up window. Other features will be private offices and renovation and remodeling of existing lobby areas. 75 Association and vice president of the bank. Retires from Fargo Bank North Dakota News HENRY N. NESS HARRY J. ARGUE President Secretary Fargo Bismarck First Bank of Langdon Announces Changes Darwin Ronngren, president of F ir s t B a n k of L a n g d o n , h as an n o u n c ed th e election of three new d ire c to rs . They are: Robert (D o u g a l) M c Lean, J r ., H an nah; Jam es Sy m o n s, ru ra l L angdon, and B u rd e tte Saxlund, Alsen. M y B. HARBEKE les Johnson, for mer president of the bank for 20 years, retired. As a result of the changes, the board has increased in size from five to seven members. William Harbeke has been elected agricultural loan officer. He joined the bank in A ugust of 1977. First Trust Company Elects Two Members of Board David R. Johnson and W. M. Sanger have been elected to the board of directors of the F irst T rust Company of N orth D akota, Fargo, according to President Jack Riley. M r. Johnson is president and m anaging officer of the F irst Bank of N orth D akota-Fargo. He has been with F irst Bank System since 1956 beginning his career w ith the F irst N ational Bank of Minneapolis. He was named president of the Fargo bank in 1977. M r. Sanger has been president and m anaging officer of the F irst Bank of N orth DakotaW ahpeton since 1972. He began his career w ith F irst Bank System at the F irst N ational Bank of Milnor, S .D ., in 1951. Mr. Wilcox is a grain and livestock farmer. Mr. Tallackson is m anager of the Buffalo Insurance John H. M cNair has retired following 39 years service w ith the F irst N ational Bank of Fargo. Mr. M cNair began his association with the bank in 1939 as a messenger. He also has served as clerk, supervisor of the proof-transit departm ent, auditor, loan officer and m anager of the custom er service departm ent. He had been assistan t vice president. Bank of North Dakota Holds Conference T H E Bank of N orth D akota held its third annual “ M id-W inter B reak” at the Kirkwood M otor Inn in Bismarck. There were 247 in attendance. The group was welcomed by Robert Heskin, Bismarck M ayor, and Governor A rthur A. Link. Speakers covered a wide variety of topics. W. T. “ Tom ” M aloan, sr. vice president of the Commerce Union Bank of Nashville, Tenn., spoke about commercial funding prospects, and A1 G ustin, widely known and popular farm director of KFYR-TV, reviewed the current farm situation. Leroy Gilbertson, commissioner of banking for N orth D akota, reported on N orth Dakota banks, and Bob Karolevitz, of Mission Hills, S.D ., gave a humorous talk on “ Your M ost Valuable Asset-A Sense of Hum or. Vollis Summerlin, vice president of the F irst National Bank of Omaha, spoke on leasing, and David N auss, president of the Community Banking Co. of N orth Branford, Conn., spoke on “ NOW accounts and the New England Experience.” Dr. William Scheller of the Universi- ty of N ebraska gave a presentation on alcohol and gasoline - “ Gasohol and the F u tu re .” A lbert A. Wolf, executive secretary of the Indepen dent Community Bank of N orth D akota, addressed the conference Friday m orning and presented the concern of N orth D akota Indepen dent Banks. Dr. Paul S. Nadler, professor of banking a t R utgers U niversity, New Brunswick, N .J ., gave a wide ranging presentation, and then m oderated a panel of bankers, savings & loan officials, and public officials who discussed several current banking topics. John W. Fay and R. E. “ Bob” Caudel, senior vice presidents, M. E. Stenehjem and E. B. Sather, vice presidents, and Steve Tomac, assistan t cashier, spoke on various Bank of N orth D akota activities. The “ Hickory W isps” played for a dance W ednesday evening, and the “ Garrison Stone Inn Players” presented a uniquely N orth D akotan melodrama at a dinner theatre T hursday evening. Mr. Caudel was in charge of the arrangem ents and the program . Named at Buffalo J a c k D . W ilcox a n d T e rry Tallackson have been elected to the board of the F irst S tate B ank of Buffalo. They replace Fred J . W illiams, Jr.; R. Paul Pederson, and Jam es L. W illiams, who recently resigned. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dr. Paul S. Nadler (left) emphasizes a point, RIGHT—Vollis Summerlin (left) discusses a point with Dr. William Scheller (center) and host Bob Caudel. Northwestern Banker, April 1978 76 chartered in 1974. She has 10 years of banking experience. Wyoming News O. G. GEESEY M. C. MUNDELL President Secretary Farmers State of Burns Announces Appointments Kemmerer Laramie Promoted at E. Cheyenne W ayne Lutz has been promoted to senior vice president, loan d epart m ent, of F irst W yoming Bank, N .A ., E ast Cheyenne. A graduate of the U niversity of Northern Colorado, Greeley, Mr. Lutz has 20 years of experience in the fields of lending, insurance and real estate. Mr. Lutz joined the bank in 1974 as a loan officer and later was promoted to vice president of instalm ent lending. Elected at Casper Raymond Shellabarger has been elected to the board of W yoming N a tio n a l C o rp o ra tio n , re g is te re d bank holding company. He is p re s id e n t of R ay S h e lla b a rg e r Chevrolet. 2 Named at Buffalo A Kaycee area rancher and a Buffalo businessm an have been named to the board of the F irst National Bank of Buffalo. They are John Schiffer and Em erson Scott, J r., owner and operator of N orthern Feed and Seed Co., Buffalo. Joins Casper Bank Theodore B. B astian recently was elected to the board of directors of the Farm ers S tate Bank of Burns. He is a farmer and rancher. Charles T. (Tom) Fornstrom was elected cashier. He is a 1977 graduate of the U niversity of Wyoming. First Wyoming Bank, Hanna, Names Chairman David J . Palfrey has joined the Edw ard F. Ziolkowski has been Wyoming National Bank of Casper named chairm an of the board of F irst as tru s t officer. W yoming B ank—H anna. He has M r. P a l f r e y been a director since the bank opened formerly was a in M arch of 1975. Mr. Ziolkowski is tru st officer at vice president and general m anager the F irst N ation of Energy Development Company in al Bank of Colo Hanna. ra d o S p rin g s . From 1962-72 he was head of the 2 Advanced at Casper probate d epart Robert W. Miracle, president of m ent a t the Bos D. PALFREY th e W yom ing N a tio n a l B a n k , ton Safe Deposit Casper, recently reported the prom o and T rust Co. tions of Jam es Forsling to vice president, instalm ent loans, and Jam es W atson to assistan t vice Elected at Sheridan president, tru sts. F ir s t W yo m in g B a n k , N .A ., Mr. Forsling joined the bank in Sheridan, has announced the election 1956 as a teller. He was promoted to of Elaine Guilford from operations clerk to assistant instalm ent loan officer and compliance officer. M rs. Guilford joined the bank when it was DON'TFORGETUSAT U.S.CHECKD00KCO. for ALL your Bank Supplies We have Plenty of “TIME” for you! AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND^ • • • • Bank Printing Checks Computer Supplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3 162 Out of State Call Wats Line 1-800-228-9246 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. FORSLING J. WATSON assistan t cashier in 1960, instalm ent loan officer in 1967, and assistant vice president in 1968. He heads the dealer section of the instalm ent loan departm ent. Mr. W atson joined the bank as a teller in 1960, and was promoted to assistan t cashier in 1956, assistant tru st officer in 1967 and tru s t officer in 1976. He is in the tru st adm inistrative area of the tru s t division. 77 Wfemake big ideas happen with specialists who know your territory. When you bring your correspondent needs to Colorado National Bank, you’ll be working with people who understand the problems and recog nize the opportunities in your territory. Our specialists have the authority to make decisions fast—and provide the innovative service that you have to have in money markets that change every day. Whether you need an overline, a loan to start a new bank or acquire one, trust service, cash letter analysis or daily cash management assis tance-give our specialists a call. A. Tobie Safer, Administrative Assistant. B. Bill MacMillan, Assistant Vice President, Eastern Colorado, C. Dave Fowler, Correspondent Officer, Wyoming and other financial institutions, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. Jon Clark, Correspondent Officer, New Mexico and Western Colorado, E. Lance Johnson, Vice President and Manager, F. Bill Fleming, Vice President, Montana and Wyoming, You’ll find our correspondent team backed by top management commitment—to channel the full resources of Colorado National Bank—to make your ideas come to life. vtivcLioatail at (303) 893-1862. 1 CNB.f 1 «QS> I We make big ideas happen in correspondent banking. MemberFDIC COLORADO NATIO NAL ■ & V I Im Northwestern Banker, April 1978 78 New Building for Edgerton Bank Names Directors Six R aw lins m en and one Casperite have been named to the board of the newly-formed W yoming Bank of Rawlins, according to Henry R. H ew itt, president. The seven men include Mr. Hew itt, Sam Kelly, J r., owner and operator of the Kelly Oil Co.; Thomas G. Wilson, partner in McMahon M otors; Max J . Worley, o p to m e tris t; L a rry L. S h rin e r, president and general m anager of the Shriner M ortuary; Gerald A. Wise, owner of the Gerald A. Wise Agency, Inc., all of Rawlins, and Robert W. Miracle, president and chief e x e cu tiv e officer of th e W yoming National Bank of Casper and president and chief executive of the W yoming National Corporation. He also has been a director of W yoming National Bank of Gillette since its inception in 1974. THE Citizens State Bank, Midwest-Edgerton, which had been operating in a mobile unit since last spring, recently began operation in its newly-completed fa cility, according to Wynn M. Terwilliger, pres. The bank opened for business on March 17, 1977. The building includes four teller windows, large bookkeeping arda, four offices, two drive-up windows and storage on the main floor. Downstairs includes a kitchen area, large com m unity room, three large storage rooms and directors’ room. ABA To Hold Consumer Compliance Workshops Montana News W. R. TAIT President J. T. CADBY Secretary Butte Helena Trust Corporation Announcements Donald L. K nutson has been elected to the board of directors of T rust Corporation of M ontana. Brian J . Stoppel has been elected assistan t tru s t officer. elected assistan t tru s t officer in 1974, tru s t officer in 1975, vice president in 1976 and vice president and secretary in 1977. Mr. Stoppel began his banking career in 1974 with the F irst National Bank, Proctor, Minn. In 1976 he joined T rust Corporation as a m anagem ent trainee. T rust Corporation of M ontana is an affiliate of Bank of M ontana System and provides tru s t services to the 14 Bank of M ontana System banks. Five regional workshops designed to assist bankers in complying w ith the growing num ber of consumer regulations will be held in M ay by the American Bankers Association. All consumer regulations will be covered w ith a special emphasis on the Truth-In-Lending, E qual Credit O pportunity, and F air H ousing Acts. The form at will be instructional with support coming from consumer compliance examiners and regional consumer specialists from the Office of the Comptroller of the Currency plus representatives from the Fed eral Reserve and the Federal Deposit Insurance Corporation. The workshops will be held in the following locations: • M ay 7-9 San Diego (Harbor Island Hotel) • M ay 10-12 Denver (Stouffer’s Denver Inn) Named at Big Sandy D. L. KNUTSON B. J. STOPPEL Mr. Knutson began his tru st career in 1973 with T rust Corpora tion as a tru s t adm inistrator. He was Northwestern Benker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Glenn E. Skaalure has been elected to the board of N orthern Bank of M ontana, Big Sandy, according to Ronald J . Remick, president. Mr. Skaalure and his brother, Dale, own and operate a farm and ranch near Big Sandy. • M ay 14-16 New Orleans (Royal Orleans) • M ay 17-19 Chicago (H y att Re gency O ’Hare) • M ay 21-23 W ashington, D. C. (Dulles M arriott) ZS Suitable for fram ing. And lending. And advising. And a lot more. O r sharing our expertise in a m ultitude of O u r c o rre s p o n d e n t bankers are such a areas. Like helping you to manage your liq u id h a n d so m e lo t, we th o u g h t you m ig h t like ity through Treasury bills and Federal fund a p hoto of them. transactions. That way, when you call in, you'll be talking O r providing specialized services such as to a frie n dly face instead of just a number. data processing. O r our new VISA credit card Besides, we'd like it to remind you of all the or deb it card programs. O r helping you in a o th e r goo d th in g s these p e o p le can do fo r hundred and one other ways so you. you can serve y o u r cu s to m Like m a kin g loans to help ers faster and better. b u y banks. O r to start new Now that you've got the pic ones. ture, we hope you'll feel free O r participating w ith you in o f D enver to call on any of our people. loans to y o u r cu sto m e rs fo r A Financial Service of . B a l d w i n By name. specific ventures. Central Bank 303-893-3456 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 80 Mr. Troyer began his banking career at The F irst National Bank of Denver in 1962 after graduation from Goshen College in Indiana. Colorado News Kirchner Moore & Co. Announces Promotions LEO HILL G. L. SCARBORO President Exec. Mgr. Boulder Denver To Head Denver Bank G uaranty Bank & T rust Co., Denver, has named John C. Rudolph as its new president. Mr. Rudolph had been president of the Boulder National Bank since 1970. He has broad banking experience in the Chicago area where he worked at the F irst National Bank of Blue Island, Pullm an Bank and T rust Co., and F ir s t N a tio n a l B an k of E a s t Chicago. Mr. Rudolph succeeds John C. Macleod, who was promoted to a m anagem ent capacity for Ronald L. Moore and Jam es H. Oliver, owners of G uaranty Bank & T rust Co. as well as nine other banks in Colorado, four in N ebraska and one in New Mexico. Appointed at Greeley M ary Ann Feuerstein has been elected to the board of the United Bank of Greeley, according to Norman M. Dean, president. M rs. Feuerstein is Weld County clerk and recorder. Junction Bank Board Names 2 New Members Two b u sin e ssm e n have been n am ed new m em bers of th e 10-person board of the F irst National Bank N orth of Grand Junction, according to Jam es W. Mackley, president. They are W. R. Bray, president of Bray and Co. real estate firm, and Paul S. B arru, owner of Barru Homes, Inc. United Bank of Monaco Names Vice President Beverley A. Green has been promoted to vice president and cashier of the United Bank of Monaco. A native of Denver, Ms. Green is a 20-year veteran of the banking profession. Since 1964, she has held v a rio u s m an a g e m e n t Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis positions with United Bank of Denver including th a t of operations officer. She was chosen cashier for United Bank of Monaco prior to its opening in June of 1975. Promotions of four executives at Kirchner, Moore, & Co., Denver investm ent banking firm, have been announced by William J . W hite, president. Named vice presidents are: Robert C. Lom bardi, trading Guaranty Bank of Denver Names 4 Directors G uaranty Bank & T rust Co. of D enver has nam ed fo u r new directors. They are: Arnold Alpert, president of Joe Alpert Stores, Inc.; Bruce Bowers, vice president and director of Chilewich Corporation, New York; William P. Johnson, p a rtn e r in th e law firm of Rothgerber, Appel & Powers, and Homer E. Reed, president of Homer Reed L td., m en’s clothing store. B. LOMBARDI L. J. SWIATEK H. D. GOEMANS J. H. BARROWS National City of Denver Announces Staff Changes R. K. Hudson, president of The National City Bank of Denver, has announced the appointm ents of Dave D augherty as vice president, consumer loans; Jim Beck as vice president, personnel, and Barbara Hyde as accounting services officer. Mr. D augherty joined the bank in 1972 after working with several finance companies in Denver and Illinois. He formerly was assistant vice president and head of the consumer loan departm ent, a posi tion he continues to hold. Mr. Beck came to the bank three years ago from the F irst National Bank of D en v er. He w as p ro m o te d to personnel officer the following year. To Head Denver Bank Paul Troyer has been elected president of the National S tate Bank, Denver, according to Richard C. Meckley, chairm an and chief executive officer. Mr. Troyer had served as executive vice president of the bank since 1975. Mr. Meckley had been serving in a dual capacity as president and chairman. d e p a rtm e n t; L ouis J . S w ia te k , municipal bond specialist; John H. D. Goemans and Joseph Barrows, public finance division. Mr. Lombardi has been with the company since 1972 and Mr. Swiatek since 1974. Mr. Goemans joined the company in 1973. Also announced was the appointm ent of Richard D. Young as a principal in the co m p an y . M r. Young, who is a vice president of sales, began his career with the com pany in 1970. He previ ously was a reg istered represen tative for a m a R. D. YOUNG jo r in v e s tm e n t banking firm. Mr. Young was graduated from E astern Illinois U niversity. First of Evergreen Names Assistant Vice President > Michele M. Look has been elected an assistan t vice president of the F irst National Bank of Evergreen. She will be responsible for the m anagem ent of the real estate loan departm ent. A graduate of the U niversity of M innesota with a degree in business Idaho News adm inistration, she joined the bank in 1973 . Greeley Bank Selects Chief J . Barney Flood, chairm an of Flood and Peterson, Inc., recently was named chairman of the Cache National Bank of Greeley. He replaces Malcolm S. Anderson, who recently was elected chairman of staff promotions: Ronald C. Ashla, tru st officer, adm inistrative office, Boise; John V. Evans, J r., loan officer II, Pocatello Office, and Ronald W. Petersen, loan officer, Salmon Office. IBA Names Exec. Director T. H. ALLEN President Boise First Bank of Troy Names Orin Robinson President . The F irst Bank of Troy recently elected Orin Robinson as its new president and board chairman. He succeeds R. L. M ontgomery who retired from th a t position and as executive vice president of Idaho Bank & T rust Co. Also named to the board is Don Turner, F irst B ank’s . exécutive vice president. He has been board secretary since the bank became p a rt of IB&T Corp. in 1975. Mr. Orin will continue in his role as vice president and m anager for Idaho Bank & T ru s t’s northern area and will remain a t the Lewiston headquarters. Idaho Bank & Trust Co. Announces Changes The Idaho Bank & T rust Co., -■ Pocatello, has announced the follow| ing staff changes: Ferrel Dilworth, loan officer; Jerry M cG rath, vice president, to m anager at Paul; | Stephen Hale, loan officer, Paul; R. D. McKinney, m anager, Twin Falls, and Dan Jacobsen, assistan t manaager, Twin Falls. Idaho First National Announces Promotions The Idaho F irst National Bank, Boise, has announced the following https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 Greeley National and will remain a director of Cache. Both banks are p art of Affiliated Bankshares of Colorado. Also, George Goodell of E aton was newly elected to the board of Cache National. He is president of Goodell Bros., Inc., a partner in E aston Development Corp., and is involved in farm ing and cattle feeding. following staff changes: Angus H. Belliston, senior vice president and m anager of the U tah division and Ann A. W hitney, assistan t m anager and operations officer in the head office. BMA Marketing Conference The bank m arketing associa B ern e K. J e n s e n h as been tion’s annual m arketing planning appointed executive director of the conference will be held April 30 Id a h o B a n k e rs - May 2 at the H y a tt Regency-CapiAssociation ac tol Hill in W ashington, D.C. The c o rd in g to conference will present information Thomas H . A l on producing a m arketing plan len, p re s id e n t. directed at the accomplishment of M r.' Jensen is overall corporate goals and at serving his sec satisfying the requirem ents of the ond term on the C o m p tro lle r of th e C u rre n c y ’s Boise City Coun examination. cil and is chair In c o rp o ra te d in th e tw o -d ay m an of the Boise program is a “ mini-course” of four B. K. JENSEN R e d e v e lo p m e n t Agency. His other activities include practical sessions on the four stages executive secretary to a senator, of m arketing planning: situational general law practice and police analysis, setting objectives, strategy judge, director of the Idaho FH A determ ination, and implem entation insuring office, house counsel and and evaluation. Designed for the m a n a g e r of M obile S ales and banking industry, the course will be Leasing Company, Larry Barnes conducted by Jam es H. Donnelly, I n d u s tr ie s , and le g is la tiv e an d J r . , D .B .A . D r. D o n nelly is services director of M anufacturer professor of business adm inistration at the U niversity of Kentucky, Housing In stitu te. co-authored the books “ Fundam en tals of M anagem ent,” “ M arketing For B ankers” and “ O rganizations,” and has published articles in a variety of professional journals. In addition to the course, a series of special bonus sessions will be offered, including case histories on planning for pay-by-phone services, pricing, packaging services and financial distribution system s. Key note sessions will examine external communications and the regulatory issues affecting banking and the R .T . HEINER President m arketing planner. The closing Ogden session of the conference will provide a detailed description of M anufact Named at Zions Bank urers Hanover T rust Com pany’s successful planning program , “ The Zions F irst National Bank, Salt M anny H anny W ay.” Lake ‘s City, has announced the Utah News Northwestern Banker, April 1978 82 For a variety of money market instruments at competitive prices, call on the investment professionals at U.S. National Bank in Omaha. Talk to John Nelson, Bob Brown, John McCune, or Ruby Tiller, whenever your needs call for government or municipal bonds, time certificates, repurchase agreements, commercial paper, or just plain sound financial advice. For personal, professional service, call the people you know. Call U.S. National Bank's Investment Center at 402/536-2215. We'll make you feel right at home. The same investment opportunities available through New York, Chicago and Kansas City banks are available from us. (At prices you can feel at home with.) John Nelson John McCune Ruby Tiller Bob Brown US National Bank Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of Omaha Banco Member FDIC 83 Nebraska Bankers Association 81st Annual Convention Omaha Hilton April 30, May 1-2 Doc Severinsen HAROLD E. LARMON President KARL E. DICKINSON President-Elect OC Severinsen of Tonight Show fame will lead off the upcoming 81st annual convention of the N ebraska Bankers Association April 30, M ay 1-2, in Omaha. Along with the singing group, “ T oday’s Children,’’ Doc Severinsen and his trum pet will perform at O m aha’s Orpheum Theater on Sunday night, April 30. The performance will be preceded by dinners at the Om aha Hilton. The sessions on M onday and Tuesday, May 1-2, will feature a variety of presentations relating to banking, governm ental affairs, the economy and change of pace topics. One unique feature of the program will include 10 m inute talks at different tim es by each of the five leading candidates for governor of N ebraska. This y ear’s convention will bring two nationally known figures to N ebraska from the front pages. George Gallup, who operates the poll bearing his name, will address the convention banquet on M onday night while John Dean III, well known for his W atergate https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ROBERT E. HARRIS Executive Vice Pres. involvement, will make the closing speech on Tuesday. Following is the convention program . Sunday, April 30 A.M. 10 P.M . 2 3:30 4 4 4:15 5:45 6:45 7:30 Later Registration a t the Omaha Hilton. NBA executive council m eeting. H ospitality rooms open. NBA p ast presidents’ meeting. N ETS, Inc., board of directors meeting. F irst dinner for Tonight in Nebraska, Omaha Hilton. Second dinner for Tonight in Nebraska, Omaha Hilton. Doors open at The Orpheum Theater. Tonight in Nebraska floor show featuring Doc Severinsen and “ T oday’s Children.’’ H ospitality rooms open at the Om aha Hilton. Northwestern Banker, April 1978 84 M onday, M ay 1 JOHN PERKINS GEORGE GALLUP, JR. C, EDWARD HARSHBARGER Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN CAVANAUGH JOHN DEAN III BOB MURPHEY A.M. 7-2 R egistration. 7:45 B reakfast at the Omaha Hilton. 9 General session at The Orpheum. • “ Report from the House Banking Com m ittee” : The Hon. John Cavanaugh, U .S. R epresenta tive. • “ D on’t Forget To Pull the T rigger” : Bob M urphey, attorney, Nacogdoches, Tex. • “The Race for Governor-1978-Part I ” : Charles Thone, Lincoln. • “ U pdate on Banking Legislation” : John Perkins, president-elect, American Bankers Association and president, Continental Illinois Bank, Chicago. • NBA A dvertising Program A ctivity R eport” : Richard Bailey, president, Bailey Lewis & Associates, Lincoln. P.M . 12:15 Recess 12:30 Luncheon at the Om aha Hilton. • “ M eeting the Challenges A head” : Jam es M etzger, president, FINCOM , Inc., Topeka, Kan. 2:30 General session at The Orpheum. • “ The Race for Governor-1978-P a rt I I ” : Gerald W helan, H astings. • “ The Im pact of NOW Accounts-A Personal Experience” : Thornton M orris, president, Sim sbury Bank, Sim sbury, Conn. • NBA annual meeting. ABA annual m eeting and election. “ S tate of the A ssociation:” Harold Larmon, president. Financial report: Robert H arris, executive vice president. New business. New business. Election of officers. “ The Year A head” : Karl Dickinson, president elect. • “ The Race for Governor-1978-P a rt I I I ” : Vance Rogers, Lincoln. 4:30 Adjournm ent. 7 Convention banquet at the Omaha Hilton. • “ Mood of A m erica” : George Gallup, J r., presi dent, The Gallup Poll, Princeton, N .J. Tuesday, M ay 2 A.M. 7:45 B reakfast at the Om aha H ilton 8:45 General Session at the Om aha Hilton. • “ The Race for Governor-1978-P art IV ” : S tan Juelfs, Kimball. • “ Im p ro v in g B a n k S e c u r ity ’’: E d w a rd K rupinsky, special agent in charge, Federal Bureau of Investigation, Omaha. • NETS Inc. annual m eeting. • “ A Look at the N ebraska Farm Econom y” : C. Edw ard H arshbarger, economist, Federal Reserve Bank of K ansas City. • The Race for Governor -1978-Part V ” : Robert Phares, N orth Platte. • “ The Arrogance of Power” : John Dean III, author, Los Angeles. 85 George McFadden Our correspondent banking pros would love to go 0 on 0 with you This simple principle, one-on-one service, gardless of prevailing financial conditions. has enabled First National's Correspon dent Banking Division to become the fastest First National's Correspondent Banking Professionals are dedicated to meeting growing in the area. the individual needs of your bank and We earned our reputation, and intend your customers, and there's only one to keep it, by outworking the competition, way to do that. Come on ... We can't and by providing unrivaled service re wait to go ® on ® with you. first national I f ' 'l |% p , n n p i h n ln Nebraska call us toll free at 800-642-9907. w l I Ik-JI ITJ From states adjacent to Nebraska call us toll free at 800-228-9533. Member, FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 86 retirem ent of L t. Omaha News oriented. Prior to th a t, he was a credit analyst w ith the Dun & B radstreet Omaha office for three years after his graduation from Creighton University. Darrell Anderson, Steven A nder son, Robert Thilgen and Charles Sederstrom comprise the new board of directors. *** John M. Shonsey, chairm an of the American National Bank, Omaha, has announced the promotion of Ben G. Ohlander to assistant vice president, commercial loan d epart m ent. Following over two years with another Omaha bank, Mr. Ohlander joined American National in 1975. In December of th a t year, he was promoted to assistan t cashier and commercial loan officer. Mr. Shonsey also announced the CORRESPONDENT BANK SERVICE, call on Wes Bowen, our SR. V.P., Special Services PACKERS Dennis R. Wood, president of the Packers National Bank in Omaha, has announced the following elec tions of additional directors: Rudy F. Stoysich, owner, Stoysich House of S a u sa g e ; L arry L. C a llen , chairman, executive vice president and cashier, F irst National Bank, O g allala; J a m e s V . C h itw o o d , president, Cambridge State Bank; D on ald W . H ard in , p re s id e n t, Farm ers & M erchants Bank, Edison; R. E. M clllece, president, Lawrence S tate Bank; Jam es R. Owens, president and chairman, N ebraska S tate Bank, Weeping W ater, and Clarence H. Sixel, president, State Bank of Scotia. Mr. Wood also announced the addition of Robert L. Hain to the b ank’s staff as internal auditor. Mr. Hain received his BS degree from W ayne S ta te C ollege and his m aster’s of business adm inistration degree from the U niversity of A rkansas, Fayetteville, in December of 1977. *** Brig. Gen. Kermit R. Hansen U SA R [Ret.] was presented the fo r a le rt National Bank 24th & 0 • 402/731-4900 Omaha, Nebr. 68107 Member FDIC Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Ret.) ier and officer in charge of the b a n k ’s 90th and Maple Streets facility. A graduate of the U niversity of N ebraska at Lincoln, Mr. B lom str and joined the bank in 1973 following 29 years of m ilitary service. *** STEVEN Anderson purchased ■ controlling interest in Cornhusker Bank from the Blank family. Mr. Anderson is vice president of American Savings and Loan Associ ation, Omaha, where he will continue active in th a t post. He has also been elected vice president of Cornhusker Bank. His father, Darrell D . Anderson, chairman of American S&L, has been elected chairman and chief executive officer of Cornhusker bank. He is also owner of the Bank of Peru and Elba State Bank, both N ebraska banks. New president of Cornhusker Bank is Robert J. Thilgen, who resigned as vice president a t Ames Bank to accept the new appoint m ent. Mr. Thilgen had eight years of banking experience at Ames Bank, where his background was consumer D Colonel Robert Blomstrand, assistant cash c o v e te d “ M inutem an of the Y ear” award last m onth by the Omaha chapter of the Reserve Officers’ Associ ation. The pre s e n ta tio n w as m ade by th e 1977 re c ip ie n t, K. HANSEN Capt. Ivan C. Griswold U SN R [Ret.]. Mr. H ansen is retired former chairm an and president of the United States National Bank of Omaha. The award to Mr. H ansen was the latest in a long list of decorations and awards presented to him in a m ilitary career of active and reserve duty th a t spans a 39-year period. *** An unusual ribbon-cutting cere mony held on M arch 1 for Douglas 87 We’ll be handing out orchids at the Convention again... P A T R IC K H. R E N S C H H A R R Y E. C O E R O B E R T E. R O H C. W. P O O R E , J R . Vice P resident and Counsel V ice President Vice President Sec.-Treas. It’s traditional... like SCHWESER SERVICE People tell us it w o u ldn ’t be a bankers convention w ithout orchids from Schweser . . . they also tell us that municipal bonds remind them of us. It’s not surprising . . . it has been our pleasure to present orchids to the ladies for 20 years and w e ’ve been specializing in tax-free municipal bonds for 40 years. Last year, we handled over 1/3 of the m unicipal issues in Nebraska according to official statistics. So, if yo u ’re interested in tax-free income, you should be talking to us. See us at the Hilton in the Kansas Suite ROBERT E. Schweser Company INCORPORATED 208 So. 19th S treet • Omaha, Nebraska 68102 • (402) 344-4611 • TOLL FREE 800-642-8438 INVESTM ENT B A N K E R S -U N D E R W R IT E R S M e m b er of the S ecurities I nvestor Protection Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SÎPC Northwestern Banker, April 1978 88 Nebraska News County Bank & T rust Com pany’s new Harvey Oaks facility resulted in a $500 contribution to the American Cancer Society. O m aha’s M ayor A1 Veys cut a ribbon of 100 five-dollar bills signifying the official opening of the new office, one block north of 144th & W est Center Road. Carl Brady, president of the bank, officiated a t the ceremony. He said the opening of the new facility makes it the third location for Douglas County Bank & T rust Co. A grand opening promotion was held the entire m onth of M arch, with a drawing on M arch 31, for the grand prizes. *** Edw ard A. Kohout, president of the Northw estern National Bank, Omaha, has announced the following promotions and assignm ents: M ich ael D . M aso n , a s s is ta n t vice president, to vice president, com m ercial lo an s; John P. Carlson, a s s i s t a n t v ic e p re s id e n t and tru s t officer, to vice p re s id e n t and tru s t officer, and M argie J. B ow en, c re d it m . D. MASON departm ent officer, to real estate loan officer. Elected as a new officer is Jam es E . S te w a rt, c re d it d e p a rtm e n t officer. A ssignm ent changes announced are: P atrick J . Brady to credit J. P. CARLSON M. J. BOWEN J. E. STEWART P. J. BRADY adm inistrator; John R. Holtey, bank adm inistration and tru s t officer in bank planning, and John R. Miller, assistant vice president, to the commercial lending departm ent. Mr. M ason, a 1969 graduate of Creighton U niversity, began his banking career as a part-tim e teller with the bank in 1966. He joined the bank full tim e in 1972 and has worked in the commercial lending area. Mr. Carlson began his career in 1948. He will be in charge of the Livestock Exchange Office and will have agricultural lending and corres pondent banking duties. for ALL your Bank Supplies AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND!' • • • • Bank Printing Checks Computer Supplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3 162 Out of State Call Wats Line 1-800-228-9246 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. R. MILLER Scottsbluff National Bank Plans New Facility DON’T FORGETUSAT U.S. CHECKBOOKCO. We have Plenty of “TIME” for you! J. R. HOLTEY The Scottsbluff National Bank and T rust Company has announced plans for a new facility at E ast 27th and Seventh Avenue, according to Jack Selzer, president. Bank Build ing Corporation of St. Louis, Mo., will m anage the entire project, u tiliz in g local c o n tra c to rs an d m aterial suppliers. The new facility will contain over 5,200 square feet of floor space. One area will be occupied by Scotts Bluff Savings Co., a new industrial loan and investm ent company announced by officials recently, with the rem ainder to be occupied by a new Scottsbluff N ational M otor Bank. The m otor bank will be in addition to the one at F irst Avenue and 17th Street. D uring construction, which is scheduled to be completed before the end of the year, operations of both the Savings Co. and the bank will be c o n d u c te d from tw o te m p o ra ry buildings at the site. The new building is designed in a traditional style to complement the area in which it is located. The exterior will be constructed of antique finish brick accented by diagonal wood trim . B oth the Savings Co. and the bank will use th e tra d itio n a l s ty le in th e ir interiors, w ith a vaulted ceiling in the bank lobby. Mr. Selzer reported th a t the bank area will contain a lobby and teller counters, safe deposit vault, night depository and drive-up facilities. One of the features of the drive-up facilities will be a lane especially constructed to handle pickups and campers. The bank also will have a custom er lounge area, to be known as the A m bassador’s Club, and a community room. Parking for 50 cars will be provided as well as expansion room. Nebraska News 89 WAGONMASTER Merv Aegerter (left) introduces First National of Omaha’s “ outriders” of the correspondent bank department (I. to r.): Ralph Peterson and Bob Brown, v.p.s; Jeff Moran, mktg. off.: George McFadden, newest member of the team, and Bill Henry, v.p.-mktg. Chuck Wagon Speakers Review Price Trends W ARM W E A T H ER , better prices and m oisture combined to bring another record crowd of about 1,000 far mers, ranchers and their b ank ers to the F irst National Bank of Omaha 13th A n nual “ Chuck W agon Roundup last m onth at Ak-Sar-Ben Col iseum in Omaha. D- R- OSTRAND Im proved prices for commodities and a fat cattle and hog m arket pushing $50 was the keynote for talks presented during the day. The crowd was welcomed by Don R. O strand, vice president in charge of F irst N ational’s correspondent bank departm ent. Six states were repre sented, with the furthest registrant this year coming from Cheyenne. The first scheduled speaker, Jim Levy of the N ebraska ETV Network in Lincoln, was unable to attend because of serious illness. The following speaker was Lee Searle, editor of Professional Farm ers of America weekly news letter, “ Pro F arm er,” headquartered in Cedar Falls, la ., and he did an outstanding job in presenting his own m aterial over an extended tim e to occupy the morning period. A graduate of Iowa S tate and a former editor with Successful F arm ing m agazine in Des Moines, Mr. Searle displayed charts he has compiled himself th a t show basically no big surpluses in the world other than in the U nited S tates. His charts are developed based on m aterial he has personally gathered from num er ous sources. In his opinion, after visiting with governm ent officials and other sources in W ashington, D. C., Jack Canaday, exec. v.p. of the host bank, welcomes the crowd. SPEAKER Lee Searle tells why he’s bullish about the ag markets. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis chances are three out of four there will be some kind of farm emergency bill passed by Congress after the E aster recess. The Talmage bill and McGovern bills are receiving a tte n tion from the A dm inistration, he said, because they set lower targ et prices than previous proposed legislation. Mr. Searle stated th a t any acreage cutbacks will lead to higher prices based on his estim ate of lesser world surpluses at this tim e. The facts he is using, he said, are ones also being used by Cargill and Continental Grain, Russia, China and others. “The downside risk is p retty slim ,” he said, “ while the upside looks bullish” if acreage cuts are voted. “ Prices won’t go straig h t up b u t will rise in a trending fashion.” Ron Gerber, owner of Gerber Feed Lot a t Algona, la ., where he farms 440 acres, was the final speaker. He feeds cattle in a 650-head confine m ent shed and runs a 130-head beef cow herd. Mr. Gerber and his wife Deanne were honored a t the 1977 Beef Congress in K ansas City as “ Beef Producers of the Y ear.” He pays special attention to the m arketing of his cattle and feels success for any feeder hinges on knowing one’s packer and grading procedures. He suggested th a t each feeder should follow his cattle through the packing plant process, as he does regularly, to see how his cattle dress out. He sells all his cattle on a dress and grade basis in nearby Fort Dodge. H aving gone through this process he knows the kind of CHUCK W AGON. . . (Turn to page 99, please) Northwestern Banker, A pril 1978 90 Nebraska News You Will See Them at the 81 st Annual Nebraska Convention T H E follow ing m e tro p o lita n bankers, investm ent people and service equipm ent dealers have indicated they will be attending the 8 1 st a n n u a l N e b ra sk a B a n k e rs Association Convention in Omaha, April 30, May 1 & 2. Chicago American National Bank & Trust Company: Michael J . Byrne, second vice president. Continental Bank: John Perkins, president; Gary Scheuring and Bill Goodyear, vice presidents; Charles H uston, second vice president, and Becky Gollan, banking officer. First National Bank: G arth Dunn, vice p re s id e n t a n d M ary Jo Franklin, loan officer. The Northern Trust Company: Harold E. Hindsley and Orrin A. Wilson, vice presidents; L. H am ilton Kerr, commercial banking represen tative, and John E. Scully, bond investm ent officer. Denver Central Bank & Trust Company: Don H. Echterm eyer, senior vice president; Jim Simon, correspondent bank officer. First National Bank: Ron Rose, assistan t vice president, and Cliff B arrett, correspondent bank repre sentative. Security National Bank: John A. Edm iston, senior vice president, and S te v e S h e rid a n , a s s is ta n t vice president. K ansas City Commerce Plank of K ansas City: P. V. Miller, J r., president; Fred N. Coulson, J r., senior vice president, and Edwin B. Lewis, vice president. First National Bank: George C. Dudley and William G. D exter, senior vice presidents. United Missouri Bank of K ansas City: Jerry Scott, president; Bill Bolt, chairm an of executive com m it tee; E. L. Burch, senior vice president; Dick M uir and Kirk Vaughan, vice presidents; Steve Pankin and Kent Sm ith, special representatives, and George M orris, bond investm ent officer. Lincoln First National Lincoln: William Sm ith, president; David L. Patrick and Dale Young, executive vice presidents; William Edgecomb, vice p re s id e n t; C huck L e ffler, vice president and m anager, correspon dent bank division; Gary L. Bieck and Craig E. W anam aker, assistan t vice presidents and Steve Anderson, correspondent bank officer. National Bank of Commerce: G lenn Y a u ssi, c h a irm a n ; P a u l Amen, vice chairman; Jam es Nissen, president; Herm an Brockmeier, ex ecutive vice president; Loren A nder son, Douglas Alford, Robert H ans, Robert Hinds, Ross H echt and W ilbur Baack, senior vice presi dents; Roy O tte, Duane Nelson, Robert Deahn and Tom Stuckey, assistan t vice presidents; and Steve Kness and Jerry Runyan, corres pondent bank officers. New York B ank : J e ffre y W. Strong, assistan t m anager, and Richard G. Hall, vice president. C h em ical M a n u fa ctu rers H a n o v er T ru st Co.: Earl H. Lundin, J r., assistan t Serving the Midwest... FIRST MID AMERICA INC. Municipal Bonds Fiscal Agents Corporate Bonds Listed and Unlisted Securities Government Agency Bonds Investment Bankina Municipal Bond Departm ent 100 Continental Building 19th & Douglas Om aha, N ebraska 68102 Call collect 402-341-1500 First Mid America Member New York Stock Exchange, Inc. and other Principal Stock and Commodity Exchanges C O R P O R A TE A N D M U N IC IP A L B O N D S • G O V E R N M E N T A G E N C IE S STO CK S • C O M M O D IT IE S • O P T IO N S • IN V E S T M E N T B A N K IN G Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic Cedar Rapids • Des Moines • Fort Dodge • Kansas City • Chicago Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vice president. St. Joseph National Bank: Benton O’Neal, senior vice president. First Stock Yards Bank: Philip R. Miller, vice president-agriculture. First Sioux City First National Bank: Richard C. Taylor, president; Chas H. W alcott, executive vice president; Gary W. S te v e n s o n , vice p r e s id e n t, and Bernard J . L atty ak , assistan t vice president. N o r th w e ste r n N a tio n a l B ank : Jerry J u s t, vice president, and Tom Pohlm an, correspondent banking officer. Security National Bank: Gene H agen, executive vice president; Jim Hongslo, vice president, and W ayne Johnson and Steve H atz, correspon dent bank officers. T oy N a tio n a l B ank : R ic h a rd Breyfogle and S tan Fredericks, vice presidents. Nebraska News Sioux Falls National Bank: First Orv L. Bonacker, vice president and cash ier, and Tom Long and Dennis Kirkeby, vice presidents. You have the business. Well lend the money. Bank Equipment and Other Firms Accent Service Co., Inc.: R. C. Wilwerding, president and C. J. Brazelton, regional sales representa tive. Chiles, Heider & Co.: Bill Beavers, executive vice president; Hal Childs, vice president; Jim Foley and David Van M etre, senior vice presidents; and Fred Douglas, Tad Dunham, Roy Leibee and Jon Narmi. Collateral Control 91 Corporation: Mike Meyer, regional m anager and vice president; Bob Schwieson, regional operations m anager; and Dick Carlson, Dean Kedney and John Bergwell, representatives. Daktronics, Inc.: Larry Fjeldos, district sales m anager. Hibbard, O’Connor & W eeks, Inc.: David B. Brevard, registered representative. LeFebure Corp.: Rich Collins, branch m anager, and George Vin son, Gerry Cholet and Dan Denman, sales engineers. Hi Lincoln Benefit Life Company: Steve S utton, vice president. M idwest Bank Builders: M atthew J . Thornton, m anager. M ortgage Guaranty Insurance Corp. [M G IC ]: E d K allem y n , regional vice president, Des Moines; Ron Van Buren, Lincoln, and H arry Mitchell, Kearney. Mosler Safe Co.: J. M acDonald, senior vice president. National Fidelity Life Insurance Company: Dwight Judy, N ebraska sales representative. Robert E. Schweser Inc.: William M arch, Company, president; Robert E. Roh, vice president; Patrick H. Rensch, vice president and general counsel, and Frank E. W illiams, executive vice president. United S tates Check Book Com pany: C. B. Batchelder, president; Richard A. Dick, vice president; and Dick H ansen, Howard Yarwood, Ed Batchelder, Bill Connors, Kent Miller, Chuck Peterson, Bill Cum mings and Rick Clabaugh, sales representatives. USLife Credit Life Insurance Company: Steven McKelvey, dis tr ic t m a n a g e r a n d J o s e p h Zearing, field vice president. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H. Your community’s business should stay in your com munity. That’s where Security correspondent overline comes in. So, start corresponding with Security. You’ll be glad you did. At Security National, we can handle your paper quickly and economically. So your business can stay where it belongs. All it takes is a call. For overline, trust services, operations, ag lending, consumer credit, invest ments and data processing, we’re your single source. W ayn e J o h n so n Correspondent Bank Officer 712/277-6526 SECURITY NATIONAL BANK IN SIOUX CITY, IOWA. M EM BER F.D . I. C. Northwestern Banker, April 1978 92 Nebraska News Nebraska Group Presidents Report on Area Farm and Financial Conditions G ROUP presidents of the N ebras ka Bankers Association have subm itted the following reports on agricultural and business conditions as they existed in their areas in early to mid-March: G ROUP 1. Ellis C. Dann, vice president, Citibank, Lincoln: Loan demand in Lincoln is brisk, which has per m itted our bank to be more selec tive. The local econom y looks very healthy at the present time. To get a first hand appraisal of the situation in some other communities in the Group 1 area, we solicited reports from C a rle to n G. F ly n n , J r . , president of Citibank & T rust Company in Crete, and Ray J . Fiala, president of the F irst National Bank of Wahoo. M r. F ly n n s ta te s , in p a r t, “ General farm and business condi tions are above average, with a conservative view to the future. Our farmers have gone back to the land for refinancing, where necessary, and are utilizing more credit than ever. Crete farm ing is equally divided between dry land farm ing and irrigated farming. The final analysis seems to indicate the dry land farmer has fared better this past year than the irrigated farmer, especially if ground has ju st been placed under irrigation or purchased at high prices. Average yields on dry land farms are better than the previous six years, and in some instances close to all-time highs. “We have a fair industrial base; we have experienced a decrease in housing construction, and accounts receivable are running higher. “ Banks in the area have shown an a v e ra g e 10% in cre ase in loan demand over a year ago. We were 65% loaned up a year ago, peaked at 81 % in late fall and are now a t 77 % with little reduction anticipated before seasonal dem and increases. “ We have not experienced much impact from governm ent (farm) paym ents to date. I t appears more Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ROUP 2. Ellen Ann Q ualsett, president, First National Bank, S ch u yler: The G overall economic conditions of this area are looking good, which is q u ite an im provement over last year’s o u t look. Livestock pri ces hav e im proved consider ably and the m argin between the purchase price of feeder cattle and to d a y ’s fa t c a ttle m a rk e t h as provided a more promising profit picture for the industry. The anticipated downturn in hog prices did not materialize; therefore, a stabilization of the m arket seems to be a hopeful sign during the coming m onths. The current upswing in bean prices, due to increased export and higher domestic usage, has helped the cash flow for grain farmers. A t the present tim e, loan demand has increased, bu t availability of funds, so far, has not been a problem. W ith more adequate m oisture th e s e p a s t m o n th s , th e crop projection for 1978 seems to be m ost encouraging. (farmers) will participate in the setaside program . These program s have a negative im pact, to some degree. Our farmers would rather see effective beef im ports curtailed so they could m arket grains through livestock and not place an additional burden on the tax p ay er.” M r. F ia la r e p o rts , in p a rt: “ General farm and business condi tions appear much more favorable than they have the past four years due to excellent subm oisture we never experienced at this tim e of the year. M ajor portions of Saunders County and our trade area were hit by severe drought for three years s tr a ig h t a n d in 1977 d ro u g h t remained in the southeastern portion of the county. Due to this and depressed prices, our local busi nesses felt the effects along w ith our farmer friends. “ Our loan demand has changed completely from earlier years. Our portfolio has grown alm ost $7 million dollars over a four-year period. Our current loan-deposit ratio of 62 % is average for the district. We expect loan demand to ease somewhat because farmers have established a better cash flow position due to governm ent p ay m e n ts an d th e F e d e ra l Crop G ROUP 3. Roger L. W eiss, presi Insurance program s. d e n t, C om m ercial N a tio n a l “ M any of our credit lines have been realigned with the help of FH A B a n k , A i n s guaranteed emergency loans and the worth: This area SB A direct loans for which farmers has experienced are eligible subject to their losses. a long, cold win The SBA 3% loans will certainly ter. If present assist them to put past operational c o n d itio n s c o n loans on a long term payout so we tinue (below nor can again help them w ith current mal tem perature with snow), there operational debt. “This all evolves into larger farm may be larger credit lines, but the distribution of than usual losses paym ents makes the plans workable in spring calves. so they can absorb their p ast losses. However, w ith the reduced cattle Also, a strengthening of cattle prices num bers in the country and the gives farm ers a chance to make recent increase in price in all classes substantial profits on cattle op hand of cattle, the price prospects for 1978 and ready for m arket. Overall, the look good. The area is generally in good shape quality of our farm loan portfolios has been increased w ith governm ent for m oisture. Spring planting will be guaranteed loans, the SBA and somewhat smaller than last year prim arily because of the governm ent additions to real estate loans. “ Prospects for the coming year set aside program . I t is still too early depend on m oisture and stronger to tell how m any farm ers will prices. We will have funds available participate in the program , and reports vary across the area. Present for more loans.” 93 Wed like to tell you a ll about NBC and its services. In detail. In confidence. In person. This spring Wilbur Baack, head of our Correspondent Banking Division and Bill Norris head of our Information Management Division will be traveling Nebraska and Western Iowa. They’d like to meet with you face to face to discuss NBC’s Correspondent Services. They’re excited about what we have to offer these days . . . like a complete range of data processing services . . . and they know that the best way to hear about your needs and tell you how we think we can meet those needs, is in person. Both Wilbur and Bill are looking forward to meeting you. It should be a worthwhile visit . . . for everybody. Bill N orris, V ice P re sid en t - In fo rm a tio n M anagem ent an d W ilbur B aack, S enior V ice P re sid en t - C o rre sp o n d e n t. NBC National B a n k of Commerce NBC Center / 13th & O Streets / Lincoln, Nebraska WATS Line: 800 742-7317 / Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 94 N e b ra s k a N e w s indications are there will not be wide spread participation in the program . Loan demand is strong throughout the area for both long and short term lenders. There will be adequate funds available for legitim ate operators for 1978. I believe the only people having trouble finding operating money are grain producers who purchased or developed high-priced land for center pivot irrigation in recent years with little equity and little or no prospect for profit this year. ROUP 5. Donald E. Blaha, G president, First National Bank, Ord: I t appears the year 1978 will again be a very critical and im p o rta n t y e a r for the local far mers and busi nessmen in Group 5. Many Farm ers and ra n c h e rs have D.E. BLAHA completed refin ancing of real estate and are now ready for the upcoming planting season. There have been severe financial losses by all our cattle operators and, of course, in 1977 there were also substantial losses sustained by the grain farmers as well. We are now a t a point where substantial profits m ust be realized to help fig h t off an y m ore agricultural disasters. We have already seen several farmers quit farm ing and I am sure we will still see more of the same in 1978. The cattle prices have started a slow, steady rise and this will certainly help the profit picture for the upcoming year. We have received a large am ount of snow fall and, of course, the weather has been unusually cold which will probably result in some very late plantings for 1978. Because of the cold weather it has taken a considerable am ount of feed during the p ast 60 to 90 days. We feel th a t plantings in our area will not be d e c re a sed v e ry m uch for th e upcoming year. We will probably be fortunate to average a 5 % decline in planted acres for the upcoming season. Loans increased substantially in 1977 resulting in lower liquidity for m ost banks in our area. Because of a large am ount of re-financing, it appears th a t m ost banks will have an adequate supply of funds for good custom ers for the balance of 1978. In fact, there will probably be more funds available for agriculture in the upcoming year than there were in 1977 because of all the re-financing th a t has taken place in the past six m onths. Hog prices have held up very well for several years and I am sure they are much higher than anyone ever anticipated. We look for a decline in Let Me Help You With Your Credit Insurance Telephone-Quick Service on our WATS Line in Nebraska. Dial your Access Code, then 800-742-7335. • Group • Individual Life Accident & Sickness S te v e W . Sutton V ice P re sid e n t LIN CO LN W h e re B E N E F IT is m o r e t h a n a m i d d l e n a m e Lincoln, Nebraska 68508 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LIFE hog prices during the year and after some soft spots in the spring and summer, we look for cattle prices to be on a steady rise during m ost of the year. We feel in this particular area 1978 appears to be a much better profit year than the past three years. We hope our farmers and ranchers will, at least, be able to break even and possibly make a little money in the upcoming year and then once again s ta rt to increase incomes in 1979 and 1980. ROUP 4. Samuel P. Baird, president, Farmers State Bank, Superior: Our group is quite large and contains farmers with many different conditions. M any farmers in our immediate area have had an excellent year and are looking forward to 1978. These are the ones who had very unusual milo yields and then fed the milo to hogs and cattle. The cattle industry apparently is entering a cycle in which those with an inventory will prosper. However, those looking for cattle to put on spring grass are being discouraged by the prices. Feeders who are selling now appear to be cutting down on replacem ents or thinking about lighter stock. We have some in the area who were caught in a pocket of drought, hail or insect damage last year. These individuals have received some relief from S.B .A . disaster loans. The man who had only irrigated corn and did not feed livestock is suffering in our area as in other p arts of the state. Depending upon whether the high prices scare the cattlem en, I expect a very heavy loan demand this year. Planting intentions should not vary much from last year. I think many custom ers will be more careful with fertilizer and irrigation w ater appli cation than in the past. However, the local area, either the m erchant or bank, is being required to carry the fin a n c in g t h a t p re v io u s ly w as financed by those higher in the chain of distribution. I would like to encourage readers to contact the Small Business A dm inistration with regard to its d is a s te r loan p ro g ra m . I t is surprising the num ber of farmers who qualify, and no one can turn down the offer of a 3 % interest rate for seven to 10 years. 95 We have an arrangem ent te fit >tiir tune. Sometimes its difficult to reach a workable harmony within your own bank, meeting it s needs and those of your customers That’s where Correspondent Banking becomes useful. We at the Toy National Bank sincerely hope th you’ll think of us when the time comes to use the ground harmony that our Correspondent Department provides so well. We’ll work out arrangements in computer work, loans, analyses, demand deposits, EFTS, ProofTransit, ACH and in many other areas . . . arrangements that fit the particular tune your bank is play ing right now. We feel we ca arrange just the rigl combination of ser vices to keep your bank — and its pro fits — singing! Call us today at 1-712-279-5695; let us get started playing your tune! m TOY IMATIOIMAL BAIMK“ SIOUX CITY. IOWA Look for Rich Breyfogie and Stan Fredericks at the Nebraska State Conven tion, April 30-May 2, in Omaha, and the South Dakota State Convention, May 10-12, in Rapid City. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 96 Nebraska News 6. Jerry J . Johnson, G ROUP executive vice president, Bank of C had ro n : A ny d i s c u s s i o n of c o n d i t i o n s in Group 6 has to begin with the weather. I t has been super cold. New, a ll - t i me low m e r c u r y re a d in g s hav e been set. This winter has been J- L- J0HNS0N tough on the farm er-rancher and his livestock. Ranchers have seen their ample hay supplies diminish rapidly. It appears from all reports th a t the farmer-rancher, with supreme effort, has been able to hold his livestock death losses to a minimum in spite of m other nature. In the final tally for 1978, percentage calf crop will probably be down 2-3%. Livestock men should be pleased with the turnaround in the livestock m arket. Since the first of the year, the m arkets for m ost all classes of livestock have shown some improve m ent. I t is probably too early for all livestock people to celebrate, but the USD A ’s January all-cattle survey was encouraging for the future. We have seen a goodly num ber of cows being culled from ranch herds in this area for several years. The report agreed with our thoughts as total inventory had been reduced to 116.3 million head. This count, although optim istic for the long pull, in no way guarantees profits for the cattlem an regardless of w hat seg m ent he is in in the cattle industry. T he p re s e n t im p ro v e m e n t in livestock prices is of some relief to f ar mer s , wi t h som e deg ree of diversification, to endure the contin ued low grain prices. The acceptance of the governm ent set-aside pro gram , although attractin g a good deal of attention and stim ulating a good many questions is not at this time off the ground. The decision by the farmers on this program cannot practically be delayed too much longer. All can only agree th a t something needs to be done to bolster ailing grain prices. A lthough agricultural loan totals are up in the Group 6 area, sound operators will find bank lendable funds available for their operation. Farm ers and ranchers will need to be particularly watchful of expenses. Agriculture in N ebraska has seen its income drop 42% from a high of $1,4^1 million in 1975 to $817 million in 1976, with a further decline in 1977. Sound, well-managed opera tions still make money, however. Bank of Norfolk Names Assistant Vice President P re s id e n t Du a n e A cklie h as announced the promotion of Spencer M adden to as sistant vice pres ident of the Bank of Norfolk. M r. Ma d d e n joined the bank in May of 1973 and m ost recent ly managed the bank and insur ance agency in Swanton. He atMADDEN tended the U niversity of N ebraska, Fairbury Junior College and Peru State Teachers College m ajoring in business adm inistration. See you at the Nebraska Bankers Convention Chiles, H eider &Co., I nc. MEMBER NEW YORK STOCK EXCHANGE, INC. 1300 WOODMEN TOWER OMAHA, NEBRASKA 68102 ■ (402) 346-6677 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News NBA Group Officers Members of the N ebraska Bankers A ssociation’s (NBA) Group 1 and 2 recently elected new officers for the coming year. They are: Group 1 President, Ellis Dann, vice presi dent, Citibank, Lincoln. Vice p re s id e n t, J im O w ens, president and chairm an, N ebraska State Bank, W eeping W ater. Secretary-treasurer, Dave Schweitz, F irst National Bank, Lincoln. R e p re s e n ta tiv e to th e N B A nom inating committee, Dick Hahn, executive vice president and cashier, Carson N ational Bank, A uburn. public relations director, where he was in charge of publications, audio-visuals, ant promotional a s signm ents . He has served as staff director for th e C h a m b e r’s p u b lic re la tio n s committee and sports and recreation committee, which included responsi bility for last sum m er’s AAU Nationnal and Junior Olympic Cham pion ships. Orginally from Lincoln, Mr. M c Bride was graduated from the U ni versity of N ebraska School of Journalism . He has also worked in the U niversity of N ebraska Sports 97 Inform ation Office and as the assistan t director of public relations for the N ebraska Coaches Associa tion. Sutton Banker Retires Twenty-nine years of banking service recently came to an end with the retirem ent of Robert M. Figi, president of the City State Bank of Sutton. Mr. Figi joined the bank in 1949 and was named president in 1958. Fred Figi, vice president, succeeds his father as president. ■ Group 2 • ~ 1 President, Ellen A nn Q ulasett, president, F irst N ational Bank, Schuyler. Vice president, R. E. Grosse, president and cashier, Commercial State Bank, Cedar Bluffs. Secretary-treasurer, Gary Bern hardt, cashier, F irst National Bank, Frem ont. R e p re s e n ta tiv e to th e N B A n o m in a tin g c o m m itte e , C h a rle s Backer, executive vice president, B urt County S tate Bank, Tekamah. To Head Holdrege Bank Louis G. Titus is the new president of The F irst National Bank, Holdrege, succeeding his father, L. J . (Jo) Titus. Louis T itus, a 1962 economics graduate of the U niversity of N ebraska, joined the bank full-time in 1962. In 1964 he was elected an officer and director and in 1967 vice president. NBA Names Director Of Communications The N ebraska Bankers A ssocia tion has selected David S. McBride as its new director of comm unica tions. He replaces H arry J . Argue, who is now executive secretary with the N orth D akota Bankers A ssocia tion. As director of communications, Mr. McBride will have prim ary responsibility for all NBA member publications, the NBA advertising program , and other areas relating to member services. He has m ost recently been affiliated with the Lincoln Chamber of Commerce as https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K O N U S! Gary Stevenson and Bernie Lattyak are on the move to meet your needs by offe rin g the m ost c o m p le te range of co rre sp o n d e n t banking ser vices available. Talk to them and get to know them because you can bank on them. See you at the Nebraska Bankers Convention. Member FDIC First National Bank in S io u x C ity • A B A N K S OF IO W A BAN K Northwestern Banker, April 1978 98 Nebraska News 1977 Nebraska Deposit and Loan Totals NBA Calendar OTAL deposit and loan figures for N ebraska’s 450 banks, as T reported in the 1978 edition of the N ebraska Bank Directory, published by the N orthwestern B anker , as as follows for December 31, 1977: for the safekeeping of such valuables as gold dust, money and even expensive hand guns and boots, overnight and longer for a fee, according to J . Y. Castle, chairm an. A t the end of 100 years, the capital structure of the bank has grown to about $3 million. Deposits National Banks.................. $4,385,479,000* State B a n ks......................... 3,005.923.000 $7,391,402,000 Loans National B a n ks................. $2,863,044,000* State B anks......................... 1.964.939.000 $4,827,983,000 *1977 year-end deposit and loan figures were not available from the Comptroller of the Currency by M arch 21 and were not expected to be available for at least another two weeks for N ebraska’s 117 national banks. Figures for the 333 state b a n k s are from th e N e b ra sk a banking departm ent. Above national bank figures are estim ated, based on the 10.36% deposit .growth of state banks in 1977 and the 11.1% loan grow th of state banks in 1977. Elected at Fullerton Tim othy D. Horacek has been elected assistant, cashier of the F u lle rto n N a tional Bank, ac cording to Lev e tta M. Hosier, p re s id e n t. M r. H o ra c ek jo in e d the bank in A u gust of 1975 af te r g r a d u a tio n from the U niver sity of N ebras T. D. HORACEK ka-Lincoln. City National of Hastings Announces Staff Changes Northwestern Banker, April 1978 Wilke was promoted last m onth to assistan t cashier of American S tate Bank. RMA Publishes Booklet on Loan Review Procedures Robert M orris Associates (RMA) Lloyd R. Kitrell, president of the has published a booklet which gives City National Bank and T rust practical information on setting up a Company, H a s t b a n k ’s co m m ercial loan review in g s, h as a n procedures. The 36-page m onograph nounced the elec shows how a bank can use loan tion of Charles review to help spot deteriorating R. (Chuck) Bow credits before they become workouts m an as m arket and losses. ing officer. Mr. Copies can be purchased from B ow m an m o st RM A’s order departm ent, 1432 re c e n tly se rv e d Philadelphia National Bank Build as vice president ing, Philadelphia, Pa. 19107. Prices are $5 to member banks and $7.50 to of sales for outc. R. BOWMAN nonmembers. s ta te N e b ra sk a for B lue C ro ss-B lu e S h ield of Nebraska. Kearney State Bank Mr. Kitrell also announced the following bank promotions: Stanley Names Board Chairman The election of Dr. F. L. Richards D. W ieland, vice president, commer cial loan departm ent and Kenneth as chairm an of Kearney S tate Bank M. M eredith, vice president, instal has been announced by Bem ie m ent loan departm ent. Mr. W ieland Engles, president. Dick Rogers, Sr., joined the bank in 1974 as a loan has been elected honorary chairm an. Dr. Richards joined the bank as a officer and Mr. M eredith in 1972 as director when it was chartered in instalm ent loan officer. 1976. Mr. Rogers, active in the bank since its beginning, serves as agricultural representative. Homer Bank Is Sold The American S tate Bank at Homer recently was sold by Frank R. M ares, president and cashier, to a group of 13 people who also own the D akota County S tate Bank in South Sioux City. Mr. M ares now is chairm an of North Platte Bank American S tate Bank. John R. Celebrates 100th Year M urphy has been elected president The McDonald S tate Bank of of the bank in Homer, the same N orth P latte recently celebrated its position he holds at D akota County 100th anniversary. State. On January 1, 1878, Charles Ervin Habeck, who was assistan t McDonald moved a pioneer bank vice president and ag officer at into his log cabin store in N orth D akota County S tate Bank, has P latte. N ebraska did not have a moved to the Homer bank as banking departm ent until 1902 so executive vice president and cashier the bank was merely a private place and chief executive officer. Bonnie https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis April 30-May 2 —A nnual Con vention, Omaha. June 11-14—W ashington Visit. Northwestern of Norfolk Elects Vice President Tim V. Stem , president of N orth w estern N ational B ank, Norfolk, has an n o u n c ed th e election of H a r old E. M atney to vice p re s id e n t and head of the agricultural loan departm ent. Mr. M a tn e y p r e v i ously has served as president of the F irst N ation al Bank of W aithill and executive vice president of F irst Savings Company of Norfolk. Nebraska News NETS Switch Finally Goes into Operation FT E R four years of develop A m ent, the N ebraska Electronic Transfer System became a reality on advice of counsel to avoid danger of a lawsuit. N either has yet returned actively to N ETS. last m onth when the central switch U. S. N ational has sharing operated by MI COR went into agreem ents w ith F irst National operation M arch 27. Three of the Lincoln, its own Banco banks in s ta te ’s five largest correspondent O m aha—Center Bank and N orth banks have signed contracts With western N ational—and w ith G ate MICOR International, the company way Bank in Lincoln. Chairm an Don operating NETS W ITCH , a central M urphy said U. S. N ational has 19 com puter center in Omaha. term inals in Omaha, now available N ETS President S. N. W olbach, to custom ers of sharing banks. chairman of the F irst N ational Bank Bill Sm ith, president of F irst in G rand Island, told NETS National Lincoln, said his bank has members in a letter early last m onth sharing agreem ents w ith Gateway th a t E F T services will be supported Bank in Lincoln and U. S. National. by processing centers at F irst It has five custom er operated National Lincoln, N ational Bank of term inals in three grocery stores, a Commerce in Lincoln and United departm ent store and a large volume States National Bank of Omaha. liquor store, and has plans to install N ETS was ready to s ta rt one year another five term inals in grocery ago b u t was threatened with a stores within 45 days and probably lawsuit by the U nited S tates another seven beyond th a t by D epartm ent of Justice an titru st summer. division. Subsequently, it was National Bank of Commerce on decided to have the individual M arch 27 was aw aiting signing of processing banks negotiate contracts sharing agreem ents with U. S. with MICOR instead of NETS. National and Gateway National. Omaha N ational Bank and F irst NBC has seven off-premise term i National Bank of Omaha withdrew nals, according to President Jim 99 Nissen, including one ATM and six POS term inals, all in Safeway stores. NBC possibly will have more up by summ er, he said. CHUCK W A G O N ... (Continued from page 89) beef the packing company w ants and he feeds accordingly. Mr. Gerber feels strongly th a t the m arketing of cattle will have greater development in the next few years, more than any other aspect of livestock raising, such as genetic control. Also, he said, “we m ay see selling through co-operatives and adoption of regional livestock identification such as Florida has done with its orange crop. We can do the same for identification of certain kinds of beef.’’ Following the traditional barbe cued beef luncheon, Jam es Doc Blakely, billed as the only PhD speaker in Texas, lived up to his advance billing as an entertaining speaker. His strictly humorous talk, identified in his opening rem arks as having “ absolutely no social redeem ing value” was the right tonic for the crowd following the excellent noon meal. For Northwestern’s World of Service SEE Pohlman Northwestern Bank Of Sioux City An Affiliate of Northwest Bancorporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 100 In 1941, Mr. Stonem an joined the Federal Deposit Insurance C o r p o r ation as a junior examiner in K ansas City. He spent one year there and three years in N orth P latte, N ebr., returning to F irst N ational in the fall of 1944 as a member of the correspondent bank departm ent. * * * Jim N issen, president of the National Bank of Commerce in Lincoln, has an nounced the fol lowing staff pro m o tio n s: Tom BC C O ./s board chairman, N retired a t the end of Jan u ary as an Glenn Yaussi, active officer in the organization. He retains his position as chair m an of NBC Co. and its prim ary holding, N ation al Bank of Com merce. H aving s ta r t G. YAUSSI ed in the banking business over 50 years ago in M arysville, K an., Mr. Yaussi joined National Bank of Commerce 43 years ago as w hat was then known as a savings teller. He stayed in th a t position until November, 1939. A t th a t time he joined F ort Dodge National Bank of F ort Dodge, la ., where he remained until M ay, 1943. He rejoined the National Bank of Commerce as an assistant cashier, serving in various capacities until being elected president in 1961. Shortly after he became president, the National Bank of Commerce merged w ith F irst T rust Company of Lincoln in Septem ber, 1961, and becam e th e N a tio n a l B an k of Commerce T rust of Savings A ssocia tion. This m erger added nearly $100 million in assets to NBC. L ater Mr. Yaussi was instrum en tal in developing the affiliate system with the form ation of Lincoln Bank South in 1965. Under his leadership nine one-bank holding companies were formed. Stock in these holding companies is offered to NBC Co. stockholders. They are: LBE Co., Frem ont F irst National Co., F re m ont F irst S tate Co., Kearney F irst National Co., N orth P latte S tate Co., H astings City National Co., G rand Island Overland Co., W estNorthwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis point F irst National Co., and United Bancshares of Nebraska, Inc. M r. Y a u ssi h as se rv e d as chairman, president and treasurer of all the one-bank holding companies and is still active in many of them . D u rin g M r. Y a u s s i’s te n u re , M utual Savings Company of Lincoln was acquired in December, 1972. N e b ra sk a S a v in g s C om pany of Scottsbluff was acquired in Decem ber, 1973, and in 1976 M utual Savings Company of Omaha was formed. All are industrial banks and subsidiaries of NBC Co. Mr. Yaussi has served as a director of the Omaha Branch of the Federal Reserve Bank of K ansas City, president of Lincoln Chamber of Commerce and president of the Lincoln School Board. He belongs to A m erican B a n k e rs A s s o c ia tio n , R o b e rt M o rris a n d A s s o c ia te s, Independent Bankers Association, Lincoln Chamber of Commerce, Lincoln Chamber Industrial Devel opm ent Corp., and many other organizations. P o tte r , R. L. [Bob] H ans, and Loren R. Ander son, to executive vice presidents, and Dana Henricksen to vice T. POTTER president. In addition, the four, along w ith Vice President Jerry Thornton, have been named group heads under the b ank’s new organizational plan. The plan places internal reporting re sponsibilities within three functional groups and two support groups. The b ank’s division group heads, who previously reported to the president, will now report to one of the functional group heads. The functional groups are the lending group, headed by Mr. Potter; tru s t and bank investm ents group headed by M r. H ans; and adm inistrative group, headed by Mr. Anderson. The two support groups; m arketing, and planning and control, * * * Lyle F. Stonem an, vice president, correspondent bank division, F irst National Bank & T rust Co., re cently retired. M r. S to n e m an, who was born in Denton, joined the bank in the spring of 1936. He ran the wholesale route in the morning l . F. STONEMAN and worked in proof and tra n sit in the afternoon for a year. Then he worked in the bookkeeping departm ent until Feb ruary of 1941. D. HENRICKSEN J. R. THORNTON 101 Specialists in structuring solutions to correspondent problems... CHUCK LEFFLER IIIIIIIÍÜIIIIII! FIRST NATIONAL LINCOLN P.O. Box 81008, Lincoln, NE 68501 Phone: (402) 471-1231 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 102 Nebraska News will be headed by Mr. Thornton and Mr. Henricksen, respectively. Mr. P otter will oversee all loan and deposit areas of the bank. Lending division heads in the areas of consumer, m ortgage, and com mercial will report to him. The c o rre s p o n d e n t b a n k in g d iv isio n , headed by W ilbur Baack, also is a p art of the lending group. Mr. P otter had been vice president in charge of NBC’s commercial loan division. Mr. P otter joined the bank in 1975 following a 10 year career in international banking; two years as a financial and economic analyst w ith the African Development Bank, A bidjan, Ivroy Coast. Seven years of his career were spent as a loan officer and program budget officer with the Agency for International Development, U. S. D epartm ent of S tate. The S tate D epartm ent post included two years residency in U ruguay and two years of residency in Lima, Peru. Bob H ans will have the tru s t and bank investm ent division reporting to him. Prior to the promotion he had served as senior vice president and investm ent division head. Mr. H ans, a Lincoln native has been associated w ith NBC since 19*60. The adm inistrative group, under the direction of Loren R. Anderson, includes information m anagem ent (NBC’s com puter division headed by B ill N o rris ), b a n k o p e ra tio n s , personnel and the controller. He was senior vice president of adm inistra tion before his promotion. Mr. Anderson has spent his entire banking career at National Bank of Commerce, startin g in the bookkeep ing departm ent in 1949 and working his way through the organization, including a period as personnel director. M r. Thornton, who came to NBC last A ugust from B renton Banks, In c ., Des Moines, will continue in his capacity as m arketing vice president and will head the m arketing group. Mr. Henricksen, who will guide the b an k ’s planning and control function, has been with NBC since 1975. He started as a loan analyst and was serving as assistant to the president at the tim e of his new appointm ent. NATIONAL Bank of Commerce’s side-by-side ATMs handled over 26,000 completed monetary transactions and inquiries during January. TABS ATM in the main bank lobby and one a t Lincoln’s newest Safeway store. The additions were the fourth and fifth Bank-In-The-Box ATM s in the Lincoln m arket along with six POS term inals. F irst National Bank in Kearney, Neb., also m aintains an on-line Bank-In-The-Box ATM. The second NBC lobby unit was made necessary by the high volume of transactions processed by the first lobby ATM installed in M arch of 1976. D uring January of this year, the first full m onth of operation for b o th A T M s, 16,170 m o n e ta ry transactions were handled. Coupled with 10,141 balance inquiries, the side-by-side ATM s processed over 26,000 transactions and inquiries. W ith the opening of N ebraska’s largest Safeway store last October, the first Bank-In-The-Box ATM not located on a bank premises was put into operation. The store’s courtesy counter was designed to accommo date the ATM as a built-in feature. Bank-In-The-Box cardholders have night-and-day access to the machine in the 24-hour store. Lincoln’s other six Safeway stores utilize B urrough’s TTlOOs as BankIn-The-Box POS term inals a t their courtesy counters. NBC has 33,044 Bank-In-The-Box cardholders, and services B .I.T .B . * * * cards issued by Lincoln Bank E a st Lincoln’s N ational Bank of Com and Lincoln Bank South. During merce added to its Bank-In-The-Box January the deposit to withdrawal on-line E F T network recently w ith ratio a t the five ATM s ran 1.6:1. The the addition of a second Diebold six Safeway POS term inals produced DigitizedNorthwestern for FRASERBanker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a deposit to withdrawal ratio of 4.2:1. * * * F irst Mid America, Inc., has announced the election of Robert G. Hinrichs, senior vice president and treasurer, to its board. Prior to joining the company in 1975, Mr. Hinrichs, a certified public accoun tan t, was w ith a national public accounting firm for 19 years. He is a past president of the N ebraska Society of Certified Public Accoun tan ts. * * * Robert S. Hinds, senior vice president and tru s t officer of the National Bank of Commerce, was elected a member of the executive committee of the American Bankers Association tru s t division. He also is a member of the association’s taxation committee. Mr. Hinds heads the tru s t division of the bank. *** L. J. (Lud) Hallas Funeral services were held recently for L. J . (Lud) H allas, retired banker. Mr. Hallas began his banking career in 1919 at the N ational Bank of Commerce in Lincoln. He later moved to M urray where he served as cashier of The M urray S tate Bank. In 1930 he purchased controlling interest in The F irst S tate Bank in Shleton. He retired in 1970. Nebraska News -| Q3 Bankers Discuss Consumer Survey Results At NBA Regional Meetings By LIN D A R H E IN Associate E ditor EARLY nine out of every 10 N ebraskans feel th a t a bank is N their prim ary financial institution. However, half of all N ebraskans are doing business w ith a savings and loan association and one-fifth are doing business w ith a credit union, according to a survey commissioned by the N ebraska Bankers A ssocia tion (NBA). The average N ebraskan possesses three services at a bank. M ost banks offer a b o u t 12 s e rv ic e s. M ore effective cross-selling is im portant, says Tom Rozmarin, senior partner of Selection Research, Inc., of Omaha, which conducted the s ta te wide telephone consumer a ttitu d e survey of 1,000 N ebraskans last fall. The survey was m ade to determine how N ebraskans perceive and feel about their banks, s&ls and credit unions. According to the survey, the m ost frequent reason people have for doing business w ith a bank is its checking accounts and other servi ces. H igher interest rates and home m ortgages were listed as reasons for going to a s&l. In terest rates and auto loans were listed as reasons for choosing credit unions. Over one half of the credit union custom ers in the state reside in Omaha. Both s&l and credit union strength is greatest in Omaha and Lincoln, according to survey results. T he N B A re c e n tly h eld six m eetings throughout the sta te to explain the results of the survey. In addition, the program included a talk, “ Treasury Tax and Loan A c c o u n ts —A n U p d a te on New Procedures,” by Don M ahan, assis t a n t vice p r e s id e n t, a n d I v a r Andreasen, securities departm ent m anager, Federal Reserve Bank, Omaha. The m ajority of N ebraskans have a high level of awareness of ATM, POS and paying bills by phone, according to the survey. One in five adults in the state has at least one of the plastic transaction cards associ ated with E FT , bu t a very small percentage use the cards. “While m any people like to possess these cards for an emergency situation when they m ight need money, they feel little need to use them on a daily b asis,” said Mr. Rozmarin. “They are satisfied with the way things are...M erchants cash checks easily. If this changes, maybe E FT will be used m ore.” A bout 12% of the N ebraskans are interested in getting a E FT service. According to the survey, they are m ost interested in: 30% ATM, 42% POS and 68% phone bill paying. A large percentage of s&l growth has come through electronic banking services. W hen statew ide services were examined, 4% said they have the Money Service card and 25% said they use it regularly; 5% said they have the C ashA ction/Prestige THO M AS L. Rozm arin, sr. p a rtn e r, Selection Research, Inc., Omaha, explains survey results at a recent NBA regional meeting. card and 20% use it regularly, and 1% have a Telepay card and 100% use it regularly. Lincoln was found to be a very strong m arket for electronic b ank ing. A bout 44% possess at least one E FT service and another 19% say they will be getting one. In Omaha, 28 % have a service and 6 % say they will be getting one. NBA members m ay examine detailed printouts of the survey at nine locations throughout the state. Contact: W alt Griffis, Guardian State Bank, Alliance; Stan W irth, B e a tric e N a tio n a l B a n k ; M ike L in d a h l, F ir s t N a tio n a l B a n k , Frem ont; Bob Eversoll, Commercial National Bank, G rand Island; Barb McCormick, Lexington S tate Bank; Jackie Berkheim, NBA Office; Bill Deitemeyer, F irst National Bank, N orth P latte; Bill Henry, F irst National Bank, Omaha, or Dick Adkins, Osmond S tate Bank. □ LEFT Scott Newberry, oper. o ffic e r, & Lynda Trapp, asst. oper. officer, The Omaha Natl. Bank, examine survey results. RIGHT—Gene Tschida, pres., Bank of Papillion; Ronald Suhr, v.p. & cash. & Jerry Purintun, Gretna State Bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 104 I’m Don C arm ody your roving correspondent from Bankers Trust O v e r th e phone, through the mail or in person, I work with bankers all over Iowa, helping to bring our banking ser vices to banks like yours." D on C a r m o d y is y o u r c o r r e spondent banker from Bankers Trust. Know ledg eable and c o o p erative, Don will sit down with you and discuss your co rre sp o n d e n t needs. O nce he has the facts, he'll structure a co m p le te program to fill those needs. At Bankers Trust, our c o rre s p o n d ent bankers can im p le m e n t a full range of services, including c o m puter services, overlines and loan participations, trust services and w ire transfer of funds. “ I ’l l need be th e re m e .” w hen yo u Contact Don Carmody or one of our other roving correspondents, and find out more about the correspondent services of Bankers Trust. Bankers Trust wants to correspond with you . . . bank to bank ... person to person. Use our toll-free WATS line: 800-362-1688. Bankers Trust Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System DigitizedNorthwestern for FRASERBanker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105 Rock Valley Bank Remodels Iowa News C. F. ARMSTRONG NEIL MILNER President Exec. V.P. Dubuque Des Moines Jim Lipton Now President At Ida County State Bank president. Richard Anderson has joined the b an k ’s staff as loan officer. He had been engaged in farming. Jam es W. Lipton, J r., has been advanced from executive vice presi dent of the Ida Jefferson State Expands C o u n ty S t a t e Ag Lending Department B an k in Id a Grove. He suc Jefferson S tate Bank has announ ceeds H . W . ced the expansion of its agricultural Godbersen, who lending departm ent with the addi moves up to the tion of two representatives. Clay A. chairm anship of Miller has joined the bank as farm the bank. Mr. m a n a g e m e n t re p r e s e n ta tiv e and L ipton’s father, Paul Johnson will join the bank who died June 5, around July 1 as agricultural loan 1977, had been representative. c h a irm a n since J. W. LIPTON, JR. M r. M iller ta u g h t w ith th e 1961. Jefferson School System for four Jim Lipton attended Grinnell years. He received a BS and C ollege, th e n jo in e d B an k of America in San Francisco. A fter seven years there he returned to Iowa to join his father in the A rthur T rust & Savings Bank. W hen th a t bank merged w ith Ida County State Bank in 1961 the senior Mr. Lipton was elected chairman and Jim Lipton was elected executive vice president. Mr. Lipton is a graduate of the G raduate School of Banking a t the U niversity of W isconsin and the C. A. MILLER P. JOHNSON Independent Bankers of America Banking School a t H arvard. He has M aster’s degree from Iowa State been a c tiv e in Iow a B a n k e rs U niversity, Ames. Mr. Johnson Association activities for a num ber recently was graduated in agricul of years, serving in 1968-69 as tural education from Iowa State president of the IB A. U niversity, Ames. Named at Washington Bank Taunce H. M athiason, president of The N ational Bank of W ashing ton, has announced the election of Harvey B. Holden to the b ank’s board. Mr. Holden is an area farmer and also serves on the W ashington City Council and is a p ast director of the F .S . Services for I owa-IllinoisW isconsin, a position he held for 10 years. Kenneth W. Keniston has been promoted to vice president and cashier and Daniel B . Engler to vice https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W. C. (Speck) Anderson, presi dent of the Valley S tate Bank, Rock Valley, has announced construction on a remodeling and addition project to the bank. The completed facility will house the bank and offices of the Rock Valley Insurance Agency, providing a new look and an additional 2,000 square feet of space. Foss, Engelstad, Heil of Sioux City, architects for the project, indicate th a t the inside of the building will feature dram atic ceiling forms of wood using oak coffers, boards and beams, integrated with a system of lighting. Stained oak woodwork will be used. Other features of the remodeled building will include interior freestanding s tr u c tu r a l g la s s p a r titio n s , a r t display walls, informal seating areas and a custom er coffee room. Named Vice President At Sioux City Bank Karl H. Seeser has been elected vice president and tru s t officer of Toy N ational Bank, Sioux City. He will be in charge of the b ank’s- tru s t departm ent. Mr. Seeser holds undergraduate and law degrees from the U niversity of Iowa. He joins the bank from M idland National Bank of M ilwau kee where he was responsible for personal tru s t adm inistration. Prior to th a t he was with three Michigan banks in their tru s t departm ents. Marshalltown Bank Names Director Charles Nichols has been elected to the board of Fidelity Brenton Bank and T rust Co. He is senior vice president of the bank. 1978 Iowa Group Meetings Date May 8 May 9 May 10 May 11 May 22 May 23 May 25 May 26 Group 8 4 7 6 5 2 3 12 City Davenport Dubuque W aterloo Des Moines Council Bluffs Fort Dodge Clear Lake Okoboji Northwestern Banker, April 1978 106 Io w a New s T h e "b re a d n e g o tia b le ] B PICTURED at grand opening, I. to r.: Front—Bruce and Tom Anderson, their father, Gordon Anderson; Leo Carlson, pres., 1st Natl., Sibley, and Dave Wier, Mayor of Sibley and v.p. of the 1st Natl. Back-Mlckie Greeve (Leo’s daughter) and Ken Klaver, tellers. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ANKING in a supermarket! Don’t laugh! I t ’s here! Not in the big cities but in Sibley, la ., population 2,900. You don’t have to wade through food counters, the m eat departm ent or a delicatessen to find it, and when you get to the bank counter you don’t have to wait for the teller to tally up another c u s to m e r’s pop b o ttle re tu r n s . T h a t’s because the F irst National Bank of Sibley was there first! It all started when Gordon B. Anderson, owner of G ordy’s Super Valu stores, visited with Leo E. Carlson, J r., president of First National, in the fall of 1976 to determine if there was a good location for him to set up a new G ordy’s in Sibley. Mr. Anderson had a successful track record in the retail food business as the owner of five superm arkets in M innesota, with headquarters in W orthington, and another four stores in W aterloo, la. A num ber of residents of Osceola County, where Sibley is located in n o rth w e s t Iow a, a lre a d y were patrons of G ordy’s Super Valu in nearby W orthington. Earlier, the bank had purchased a large lot at the east side of the business section ju st one block from the main bank. The F irst National Bank building had a walkup window but no drive-up facilities. In fact, there was no possibility of getting any kind of on-premise parking. Consequently, the bank had been holding the land for construction of a detached facility. While Gordy Anderson outlined his plans and needs, Leo’s mental gears meshed into high speed. After a quick review of the situation, Leo took a cue from a popular TV show and said, “ L et’s make a deal!’’ He took Gordy Anderson to the bank property nearby where an old Iowa N ew s 107 store — or edible! ARCHITECT’S sketch of the Exchange State Bank in Exira, undergoing a major construction program. superm arket had burned to the ground, leaving a scarred, weedcovered cement platform as a “eminder. An old filling station occupied a corner of the lot. Leo suggested th a t G ordy’s Super Valu buy the lot, design a building th a t would tastefully incorporate a bank office a t one end, and F irst National would sign a long-term ease. The two agreed, the bank board concurred and the rest was up to the architect and contractor. Several principals in the bank have joined with Gordon Anderson in ownership of the building. The result is G ordy’s Super Valu of Sibley, which opened March 1 with a grand celebration. The F irst National Bank office opened Febru ary 22 to give bank personnel a week to test facilities and procedures. The detached office has a loan officer and two tellers, a drive-up window and ample parking. The property adjoins a half-block municial parking lot th a t will be paved h is s p rin g . F ir s t N a tio n a l is furnishing the light standards for the ot and the town of Sibley will rovide the electricity. In the first week of operation and hrough the grand opening of the uperm arket a num ber of new bank ccounts were opened. The conveience of the banking facility on remise for store custom ers has ecome evident and they are m aking teady use of it. A pharm acy will pen later in the store. Gordon Anderson is no stranger to anking. Recently, he became the ajor stockholder in the S tate Bank f W orthington. Now, w ith the F irst "ational as a ten an t in Sibley’s new uperm arket, his custom ers will ave a choice of whether the bread or ough they obtain in the building is f th e ed ib le v a rie ty or th e iversally accepted long green! □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exchange State of Exira To Expand H E Exchange State Bank in Exira has announced a m ajor T construction program , according to R. M. Anderson, president. Remodeling and expanding the building to the south and west will be included. The exterior will be completely refaced with brick and insulated windows. Bronze m aterials will be used in the windows and exterior panels. A drive-up window will be added on the south. O ther features will include new safety deposit vault with private coupon booths, enlarged bookkeeping, new teller windows and a sit-down station. Additional private offices, conference room and storage areas also are planned. The project should be completed in eight to nine m onths. The Kirk Gross Company of Waterloo responsible for the program . is Ben E. Reed Funeral services were held recently for Ben E. Reed, retired Cumberland banker. Mr. Reed became active in the Cumberland Savings Bank in 1956 and served as its president until 1972 when he sold his interest in the bank. Named at Keokuk Roger A. Burtraw has joined the board of directors of State Central Savings Bank, Keokuk. He is a group vice president of Sheller Globe. On target, on tim e, on the money. That’s what you get when you call on the Kirk Gross Company to handle your building or remodeling project. Our specialists handle everything from building plans, to construction and interior planning and design. Right down to your secretary’s chair. But most important, we ll be on target, on time and on the money. Call us. We’d like to discuss your project. 110 EAST 7TH ST., WATERLOO, IOWA 50705 PHONE 319/ 234-6641 Northwestern Banker, April 1978 108 Iowa N ew s LEFT—Ken Pennebaker, e.v.p., Twin Cities Bank, North Little Rock, Ark., and Bob Clark, chmn., IBA marketing comm ittee and v.p., Central Natl. Natk, Des Moines, discuss plans with Darrell Hick, a.v.p., Maquoketa State Bank. RIGHT— Dick Gerdes, Dick Gerdes Advertising, Inc., Des Moines; Mike Baehr, a.v.p., Farmers T&S Bank, Spencer, and Dr. Louis Wolter, professor of advertising, journalism dept., Drake University, Des Moines. Effective Planning Needed for a Successful Marketing Program OW to develop more successful H m arketing program s was the topic of discussion February 15-16 when Iowa bankers m et in Des M oines for th e Iow a B a n k e rs Association M arketing Conference. A num ber of advertising specialists outlined key ingredients to begin ning a successful program . The overriding them e was to plan a long range course and objective. Ken Pennebaker, executive vice president, Twin Cities Bank, N orth Little Rock, A rk., outlined his bank’s success over the last 10 years. Twin Cities, an old, established bank, realized it was becoming s ta g n a n t. In 1968 its officers analyzed the situation. They found th a t they were not serving the community and did not have an image or com m itm ent conducive to growth. Their study showed th a t m ost of the b an k ’s custom ers were over 45 years of age and th a t over half of the comm unity worked outside of the bank’s m arketing area. The bank has changed in m any ways over the last 10 years, concentrating on image, location and convenience, and attitudes of per sonnel. Em phasis Image — The bank began to direct program s and advertising to younger age groups. I t developed a student board of directors made up of high school seniors. (Over 230 students applied last year.) L o c a tio n a n d convenience — Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By M IK E FR EELA N D Business M anager its comm unity and then set out to serve these needs in a profitable manner. Local advertising experts Dick Gerdes, of Gerdes A dvertising, Des Moines, and Louis W olter, professor of advertising, Drake U niversity, outlined basics in establishing an effective advertising program . Mr. Gerdes said th a t few banks have a firm m arketing program . S a tu rd a y b a n k in g w as s ta r te d because m ost custom ers were unable to meet banking hours. This is now the second biggest day. O ther key program s are free checking, 42-mon th car loans, ATM s, telephone banking, drive-up windows, and check guarantee. A ttitude of Personnel — An Questions to Consider advertising campaign around per In b e g in n in g y o u r p ro g ra m sonnel began to build more pride. consider the following questions, he People were appointed to various commented. 1) W hat is your m arket share? How is it made up and w hat would you like it to be? 2) W hy do people bank w ith you? W hy not? The num ber one reason is still convenience. A main reason to leave is bank errors. Also of key importance is bank personnel a tti tude. 3) W hat can you do to increase deposits? 4) How can you reach custom ers and prospective customers? Mr. Gerdes reminded bankers th a t JOE Berner, creative advertising director, the average num ber of bank services Campbell-Mithun, Inc., Chicago, critiques used by custom ers is two. This is a current ads being used. key area for growth. Be sure bank groups, such as youth or senior p e rso n n e l u n d e rs ta n d an d can explain bank services. citizens. W hen determ ining where to spend Twin Cities Bank took a very aggressive approach to its problems. ad dollars, try to spend more on M any of its program s are not selling mediums such as television, feasible for some banks. However, radio, newspaper, direct mail, or Twin Cities did identify the needs of billboards, and less on give away Do yourself a favor. ßf a*-if- If you're like most bankers you've got a very busy workload. That's why we'd like to remind you that we can help you with your correspondent banking. Computer work ... proof of deposit ... transit work ... collection of checks... even the opportunity to increase your profits with our new BANKEASY card. As this area's largest correspondent bank, we do them all. And we do them well. So do yourself a favor. Call or write us today. National Bank o f Waterloo https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 00 East P a rk Northwestern Banker, April 1978 110 Iowa N ew s program s. A rule of thum b for your budget is .1% of assets. Joe Berner, Campbell-M ithun A d vertising, Inc., Chicago, critiqued many ads currently being used by Iowa bankers. Mr. Berner works with larger advertisers with budgets th a t can afford creative program s. Realizing m any bankers are not allowed this advantage, Mr. Berner suggests smaller banks seek local ta le n t to help develop m ore professional program s. □ Farmers Savings, Kalona Names Jan Skola President Ja n M. Skola has been advanced from vice president to president at Farm ers Savings Bank of Kalona to succeed his father, Ferd E. Skola, who continues active as chairman of the board. Ja n Skola has been with the bank six years. Ferd Skola has worked at the Farm ers Savings Bank throughout his banking career, startin g there under his father, who joined the bank in 1903. The senior employe of the bank is Belle Davis, honorary vice president, who started working at the bank for Ferd Skola’s father in 1918. This summer she will m ark her 60th anniversary of continued active service with the bank. Since she was born on July 4, 1891, M rs. D avis’ father named her Independence Belle Dunlap. Automated Systems Continues Expansion A utom ated System s of Iowa, Inc., is now servicing for Insurance Program m ers, Inc., the special Crum & Forster directors and officers liability program for Iowa banks. Crum & Forster is one of the m ajor underw riters in the nation of D & O liability coverage for financial institutions. Jon Grindle of M t. Vernon and Ed L e n a g h a n of A n k en y are th e principal officers of A utom ated System s of Iowa. Mr. Lenaghan said ASI also provides coverage for all other insurance needs of financial in stitu tions, including bankers’ blanket bonds, property and liability cover ages and special coverages such as lenders’ single interest and tru st errors and omissions. He also notes th a t the m arkets represented by ASI are top rated in “ B est’s ,” which is the m ajor insurance rating guide. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOP LEFT— Loretta Buchheit, a.c., LeClaire State Bank, and Doris Rankin, math instructor, work with students at the Black Hawk Trust and Savings Bank. TOP RIGHT— Students learn about banking by running the businesses in ato w n . LEFT— Ms. Buchheit introduces the unit. LeClaire State Bank Aids Junior High Students in Learning about Banking B Y the time they leave the eighth grade, the students of Blackhawk Junior High School in LeClaire will have felt the sting of financial stress or will have experienced the elation of financial success —hypothetically th a t is. W ith the cooperation of Le Claire State Bank, the m ath departm ent of the school, headed by Gordon Muller, has enacted the business life of a small town as a more interesting approach to presenting a unit in banking. A t the beginning of each unit, each student is required to complete an individual an d /o r business budget. The hub of the business world is the Blackhawk Bank, whose m aterials are sup plied by LeClaire S tate Bank. Each student visits the bank to open his or her accounts. A group of students serve as tellers. Daily business functions are enacted, such as paying light bills, buying groceries, with am ounts being furnished by a lottery drawing arrangem ent. Businesses not only pay operat ing and occupancy costs, bu t also pay their employees. Surprising ly, the students even go so far as to demand periodic raises. And they have even designated an Internal Revenue Service as one of the businesses in the town. The introduction to the unit is g iv en by L o re tte B u c h h e it, assistant cashier at LeClaire State Bank. She explains the im por tance of a bank in the community and d e ta ils th e serv ic es it provides. A movie, “Twenty Four Hours in the Life of a Check,” provided by the Iowa Bankers Association, is shown. The response of the students and parents to the program has been very positive, according to Ms. Buchheit. The b an k ’s staff feels the efforts will be realized in years to come with reduced pro b lem a c c o u n ts an d m ore efficient custom er accounting. 111 A correspondent bank should give you more than just a correspondent banker. We do. When you choose First National Bank in St. Louis as your correspondent bank, you get more than a correspondent banker. You get an entire staff of specialists who offer you daily assis tance for daily needs. For example, the “Rabbit Transit”check clearing systems our people have developed can help improve your earnings, because your transit items become collected balances rapidly. We also offer you the services of agricultural fi nance specialists who can help you provide your cus tomers with expert advice as well as flexible loan arrangements. In the area of Fed Funds, investments and the safe keeping of securities, we offer a performance rec ord that’s highly regarded in our industry. Our electronic data processing team brings you the most sensible systems for getting work done — reliably and accurately. And our computer specialists offer counsel and advice in all phases of EDP systems. Our capacity for overline lending, based on our sizable assets, allows you the opportunity to make larger loans than you otherwise might. We sponsor timely seminars where you and other top management of your bank meet with the top management of our bank to exchange ideas and share expertise. These seminars also serve to keep you up-to-date on recent developments in our industry. Of course, your correspondent banker is always available for individual consultation. He’s the key to our relationship and the person we depend on to make fast decisions on our behalf. He’s the one you can depend on, too, when you want to get more from your correspondent bank. He can help you plan for your bank’s future and for our future together. If you’re not already seeing a First National Bank in St. Louis correspondent banker, just call Chuck Betz at (314) 342-6386. He’ll make sure you get a correspondent banker... and a whole lot more. First National Bank in St.Louis A First Union Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member fdic Northwestern Banker, April 1978 112 Iowa N ew s Iowa NABW Group To Meet May 3-4 AY 3 and 4 are the dates set for the 1978 Iowa M eeting of the National Association of Bank M Women, Inc. (NABW) to be held at the Ram ada Inn, W aterloo. “ The Business of Banking ’’ is the m eeting’s theme. Registration will be held from 8-10 a.m . on W ednesday, May 3. H osts for the m eeting are the members of the north-central Iowa group. Sara Lee Yoder, cashier, Grundy National Bank, Grundy Center, is chairman. Discussion to p ic s w ill in clu d e m a rk e tin g , p e rso n a l b a n k in g , officer call program and bank profits. Following is the program. K. FULRATH S. L. YODER W ednesday, May 3 A.M. 8-10 Registration in the lobby. 10 Business M eeting Group Chairmen Reports. Legislative Update: Neil Milner, executive vice president, Iowa Bankers Association. 12:15 Luncheon Speaker: Kay Fulrath, midwest regional vice president of NABW and assistant vice president, M erchants National Bank, Cedar Rapids. P.M . 2:30 “ The Business B anking” Panel R. K. Sverdahl, president, Peoples Bank & T rust, Waterloo: R. Scott Fetner, president, National Bank of W aterloo, and Arnold M. F. HOLSTAD Schultz, president, G rundy National Bank, Grundy Center. 5:30 Social Hour. 6:45 B anquet Speaker; Bernard M cKinley—“ Are You Grow ing?” Thursday, May 4 A.M. 7:45 Prayer Breakfast: Audrey Michels —Living Flow ers.” 9:15 Speaker: M ary H olstad, Iowa State Commerce Commission. 10 Forum: “ The Business of B anking.” M ary Doak, m arketing officer, Grundy National Bank, Grundy Center; M argaret Hough, assistant vice president, M erchants National Bank, Cedar Rapids, and M arilyn Hurley, vice president, National Bank of Des Moines. 10 Luncheon Speaker: Inge Chase —“Anyone Can P a in t.” P.M . 2:30 A djournm ent. Peoples State Bank, Elkader, Opens Increase Capital The following Iowa banks have increased their common capital accounts: Mediapolis Savings B ank—100% sto c k d iv id e n d by tr a n s fe r rin g $150,000 from undivided profits to common capital. Capital now totals $300,000. Farm ers Savings Bank, T raer— 20% stock dividend by transferring $50,000 from undivided profits. Capital now totals $300,000. W ellman Savings Bank sold 150 shares of authorized but unissued common stock a t $66.67 totaling $100,000. Proceeds were distributed as follows: $15,000 to capital, and $85,000 to surplus. Capital now totals $115,000. Citizens S tate B an k ,W y o m in g 100 % stock dividend by transferring $200,000 from undivided profits. Capital now totals $400,000. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PEOPLES State Bank of Elkader (pictured above) recently o fficia lly opened its doors for business. Officers and directors of banks in the surrounding area and correspondent bankers attended an open house social hour and buffet supper. A public open house was held on a weekend. Refreshments were served in the bank’s com m unity room and door prizes were given away to many of the 1,000 attendees. 113 Jensen, Carr, Dougherty, dMever. and never. They sound lik e a good law firm, until you need insurance. Jim Jensen B ill C arr 490 participating banks already know these men and Iowa Bankers Insurance and Services. These banks are also aw are of the year-end dividend checks we wrote for fiscal year 1977 — a total of $140,837.07. Jensen an d Carr are responsible for bank and bank-m anagem ent insurance, which includes a comprehensive bank insurance plan, blanket bonds, director and officers liability, trust errors and om issions, and lenders single interest. Dougherty and Meyer handle our bank Ron Meyer employee group insurance, like Blue-Cross-BlueShield, Delta Dental, Group Life and Long Terms, Disability, high limit AD & D, and credit life programs. If you need insurance to cover your bank, its officers a n d employees, rem ember Jensen, Carr, Dougherty and Meyer. They represent Iowa Bankers Insurance and Services, Inc., which represents over $140,000 of dividend paym ents for fiscal year 1977. 430 Liberty Building, Des M oines, Iowa 50309 515 243-0179 Selling insurance protection just to banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, April 1978 114 Iow a New s Capital City Bank Seminar Features Talks on Loans, Trusts and Ag Income F IC E R S of c o rre s p o n d e n t O Fbanks served by Capital City State Bank of Des Moines attended a conference conducted in Des Moines last m onth by the Capital City Bank. The morning program featured three speakers covering the topics of loans and exam inations, tru s t and money services offered by the host bank, and an ag financial review. Guests were welcomed by Richard Buenneke, president, and Hom er R. Jensen, executive vice president of Capital City Bank. Jim Middendorf, who recently joined the host bank as commercial loan officer following several years of work as a state bank examiner, discussed loans. He stressed the need se v era l tim es for p ro p e r docum entation of each loan, includ ing complete statem ents, analysis of debt to worth of borrower, proper listing of carry over debt, a debt reduction plan in writing, and evidence th a t collateral has been checked. Mr. M iddendorf mentioned the problems caused by assum ing th a t collateral is good. He stated, “ Exam ining is subjec tive, so anything you have documen ted to support or explain loans is helpful not only to the examiner, but to yourself and your borrower as you review loans in the fu tu re.” Richard C. Hinson, vice president and tru s t officer at Capital City Bank, centered his rem arks prim ari ly on a review of money m arket instrum ents outlined in a printed folder distributed to each guest. In addition, he reviewed various m eth ods of compensation and reported on one new development th a t surfaced at a tru s t m eeting from which he had ju st returned. The Internal Revenue Service, he reported, recently wrote proposed regulations th a t would completely do away with deferred compensation. The regulations ap parently have not yet been finalized but they have been published in the Federal Register. The effect is to do away totally with the exclusion from current income taxes of any income designated as deferred. Present deferred compensation plans would be grandfathered, b u t only for money accum ulated up to the effective date of the proposed regulation; beyond th a t date, no fu rth e r c o n trib u tio n s a p p a re n tly could be made. E verett Stoneberg, professor of ag economics at Iowa S tate U niversity, Ames, presented a series of slides portraying ag income for specified years. These figures show the sharp slide in net income for all farmers from a peak of $34 billion in 1973 to $20 billion in 1977. In real dollars, he said, this was a drop from $22 billion to $11 billion. Mr. Stoneberg also reviewed the balance sheet of the farm ing sector for years from 1950 to 1977 and it reflected a rise in assets from $170 billion to $700 billion, with an accom panying rise in farm debt from $15 billion to ju st over $100 billion, with the big increase coming in real estate debt. Looking briefly a t crop and livestock income for the imm ediate past years, Mr. Stoneberg said, “ All this shows farmers are in a real cost/price squeeze. It came sharper and quicker than anticipated and I don’t see us working out of it soon. For the older m an w ith little or no land costs to pay off, the outlook is not so bad, b u t for the younger m an with high expenses, it ’s awful. “The key question for young people is, ‘How to gain control of land resources?’ Everyone thinks land will be more five years from now, so why aren’t they buying land? Because when you cash flow it you can’t make it pay!” After a noon luncheon President B u en n ek e m o d e ra te d a review session during which current m atters of m anagem ent interest also were discussed. 39 Attend S. Central NABW Meeting “ W hat I Can Do for My B ank” was the title of a talk given by Lois Irvin at a recent m eeting of the South Central Iowa Group of the N a tio n a l A s s o c ia tio n of B a n k Women, Inc., in Chariton. She is public relations officer for the Davis County Savings Bank of Bloomfield. Thirty members and nine guests attended the m eeting hosted by Cory don State Bank and National Bank & T rust Company of Chariton. PARTICIPANTS in Capital City Bank’s recent seminar in Des Moines included Everett Stoneberg (left), professor of ag economics, Iowa State, and these five host bank officers, left to right: Dick Buenneke, pres.; Homer Jensen, exec, v.p.; Jim Eick, corr. bk. o ff.; Jim Middendorf, comm. In. off., and Dick Hinson, v.p. & t.o. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T ru st • It's something you can't take for granted. You hove to earn it. At American Trust & Savings Dank w e know that. And w e work hard to earn your trust because it means a lot to us. A m e rican ¡¿T ru st Trust us to handle the full range of your bonk s correspondent needs. And trust us to do so quickly, efficiently TOWN CLOCK PLAZA DUBUQUE, IOW A 52001 and confidentially. &SavingsDanK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHONE COLLECT: 319-582-1641 MEMBER: PDIC & FEDERAL RESERVE SYSTEM 116 the Indiana division. He joined M erchants National in 1967 and served as assistant cashier and commercial loan officer until 1973. *** Des Moines News OND G. Johnston, presi R AYM dent and chief executive officer of Central N a tional Bank and T rust Company, h as a n n o u n ced the election of Ivan L. Johnson, Joe D. Young and Edward W. R oth to th e b ank’s board. He also announced the election of C. '■ L- JOHNSON Thomas Moore to vice president in charge of bank m arketing, Linda S. Schugt to custom er services officer, and a title change for Robert H. Clark, Jr., to vice president and tru s t development officer. Mr. Johnson joined the bank in 1948 and served in various d epart m ents before being elected a vice C. MOORE L. S. SCHUGT Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis president and head of the business development departm ent in 1965. In 1971 he was elected senior vice president and in 1975 senior lending officer. In 1977 he was elected executive vice president. Mr. Young joined the bank in 1958 as a tru st officer. In 1966 he was elected vice president, in 1969 senior vice president and senior tru st officer and in 1977 executive vice president. Mr. Roth is director and chairman of Statesm an Group, Inc. He also is director of various affiliated com pa nies of the Statesm an Group, Inc., and president and chairman of Vulvan Life Insurance Company. Mr. Moore recently joined the bank from the Iowa-Des Moines National Bank. He served there as sales m anager for the M aster Charge Credit Card, assistan t m anager and m anager of the Euclid Avenue branch office, director of m etropoli tan m arketing and corporate services officer. Mrs. Schugt, formerly new accounts representative, joined the bank in 1962. Mr. Clark joined the bank in 1968 and was promoted to vice president in 1969. He was named vice president and m anager of the W est Des Moines Office in 1974 and in 1975 returned to the main bank to serve in the m arketing area. *** Jam es I. Mackay has joined Central National Bancshares, Inc., as vice president in charge of loan policy and adm inistration. Mr. M ackay, a 1967 graduate of Indiana U niversity, formerly was with M erchants National Bank & T rust Co., Indianapolis, Ind., from 1973 to the present as vice president of commercial lending and head of David L. Miller, president of W est D es M oines S ta te B a n k , h a s announced the election of Jam es Hubbell III to its board and Richard A. Keene to assistant vice president. Mr. Hubbell is vice president, real estate development, of Hubbell Realty Company. Mr. Keene form er ly was with the E ast Des Moines National Bank. He attended Drake U niversity and Grandview College. * * * Richard W. Carey, vice presidenttru st of the Iowa-Des Moines National Bank, has been named chairman of Goodwill Industries. Harley L. Martin, real estate loan officer, has been elected president of the Des Moines Bankers A ssocia tion. * * * president of Plaza State Bank, has announced th e follow ing s ta f f p ro m o tio n s: Edward J. Cunningham, vice presi dent; Charles E. Breeding, assistan t vice president; Donna M. Jones, assistant cashier, and Veva Cramblit, executive secretary. Mr. Cunningham, w ith the bank since 1970, began as a messenger. He is first vice president of the American In stitu te of Banking. Mr. Breeding joined the bank in 1976, Mr. Jones in 1972 and Ms. Cramblit in 1969. Forest T. Lewis, D. M. JONES V. CRAMBLIT 117 Gyrus Kirk joins Central National Bank as Vice President W e're glad to welcome Cy back to Des M oines. A nd, w e're glad h e's now in our correspondent bank departm ent! Cy isn 't a stranger to banking or to Iowa. H e's been in correspondent banking for 24 years. A nd h e's a Des M oines native. You'll be seeing more of Cy in the w eeks to come. We just w an ted you to know that he's back in Iowa and w ith Central National. “C ” Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC LO C U S T AT SIXT H / F IF T H A G R A N D / 35TH A IN G E R S O LL W EST D ES M O IN E S W EST T O W ER S O F F IC E B U IL D IN G . 35T H A I-23 5 ^ J a f f i l i a t e d W IT H C E N T R A L N A T IO N A L B A N C S H A R E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN C Northwestern Banker, April 1978 118 Iow a New s Larry L. Retherford resigned last month as senior vice president in in charge of op erations at Cen t r a l N a t io n a l Bank and T rust C om pany. M r. R e th e rfo rd h as jo in ed H ow ard J. Blender Co., a D a l la s , T e x ., consulting firm which specializes L L r e t h e r f o r d in bank opera tions and electronic funds tra n s fer. He will continue to live in Des Moines, working with bank clients. A native of Lineville, la ., Mr. Retherford was graduated from high school there, then worked nine years at the Lineville S tate Bank before joining Central National in 1963. He served as supervisor in the proof and tran sit area, was elected assistant cashier in 1965 and was appointed operations officer in charge of bank operations in 1970. He was elected a vice president, then named senior vice president last year. Mr. Retherford was involved from the beginning with the Iowa Bankers A ssociation’s development of a statewide electronic funds transfer network and served as chairman of the Iowa A utom ated Clearing House Association steering committee. He has also served as a director of the National A utom ated Clearing House Association. He is a graduate of the G raduate School of Banking at the University of Wisconsin and the ABA Business and Banking School at Durham, N .H . *** Promoted at Knoxville John J . Brower recently was promoted to vice president at the Community National Bank and T rust Company, Knoxville, accord ing to President Jam es M. Bellamy. Other recent promotions include: Clifford Danner to operations officer, Lena Bankus to loan paym ent officer and Gloria Beard to data processing m anager. To Head BAI Chapter Clifford Danner recently was named president of the Central Iowa Chapter of Bank A dm inistration In stitu te (BAI). He is operations officer for Community National Bank and T rust Co., Knoxville. Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa Investment Bankers Elect Officers PICTURED are the new officers of the Iowa Investment Bankers: left to right — secy.-treas., Jim Weiser, Central National Bank, Des Moines; second v.p., Bill Goodwin, R. G. Dickinson & Co.; 1st v.p., Thomas Wormley, Shaw, McDermott & Co.; and pres., Gene Strandberg, Carleton Beh Co. ITS Debt Free; Volume Has Doubled ALE Dooley, executive m anager D of the Iowa Transfer System , reported last m onth th a t response to m embership, were sent to all ITS member banks April 5. the ITS membership special assess m ent brought in paym ents and comm itm ents exceeding the projec ted income of $430,000 from the assessm ent. This made it possible, he said, to repay in full the debt to First National Bank of Minneapolis, the debt incurred for research and development in the early stages of ITS development. ITS now has no debt, he added. The statewide electronic funds transfer system m arked its first year of operation on February 14. In th a t p e rio d , tra n s a c tio n volum e has doubled as noted in the accompa nying chart. Switch volume, repre senting “ not on u s ’’ items, started slowly since processing banks were added on a scheduled basis to make sure each individual system was totally operative. A t the sta rt of the second year, ITS members have 82 shared term inals operating in 21 communi ties. Of these, 56 are manned term inals at courtesy counters, 15 are on premise ATMS, 11 are off premise ATMs. Sight drafts for 1?78 dues, the third of the five scheduled dues paym ents under term s of ITS Trans. Volume Month 55,000 Feb., 1977 62,358 Mar., 70,720 Apr., 70,009 May, 74,273 June, 77,012 July, 85,936 Aug., ” 93,233 Sept., 81,579 Oct., Nov., 86,295 101,110 Dec., 111,526 Jan., 1978 ** Feb., “ Volumes not received yet. Switch Volume 499 5,870 9,921 12,206 13,694 16,290 19,044 21,181 28,127 31,905 42,833 40,917 40,591 Charles City Bank Celebrates 75th Year A series of special events and gifts for the comm unity is being planned for the seventy-fifth anniversary of the F irst Security Bank & T rust Co. of Charles City, according to William G. H erbrechtsm eyer, president. The observance will climax in a special celebration the weekend of July 14, the day the charter was issued to the Security T rust & Savings Bank. In 1929 the Security T rust absorbed the F irst National Bank of Charles City and renamed the bank the F irst Security Bank & T rust Co. Iowa N ew s Iowa Deposit and Loan Totals Reported r OTAL deposit and loan figures for Iow a’s 656 banks, as reported T in the 1978 edition of the Iowa Bank be available for at least another two weeks for Iow a’s 99 national banks. Figures for the 553 state banks are Directory, published by the N orth from the Iowa banking departm ent. western B anker , are as follows for Above national bank figures are December 31, 1977: estim ated, based on the 9.61% deposit growth of state banks in 1977 and the 19.03% loan growth of state banks in 1977. Figures for four private banks are not included. Deposits National B anks.................$ 4,484,631,000* State B a n ks....................... 9,792,038,000 $14,276,669,000 Loans National B anks.................$ 2,965,036,000* State B a n ks...................... 6,327,765,00 $ 9,292,801,000 *1977 year-end deposit and loan figures were not available from the Comptroller of the Currency by March 21 and were not expected to Holding Company Banks of Iowa, Inc., Cedar Rapids ........ Brenton Banks, Inc., Des M o in e s .......... Central Natl. Baneshares, Des Moines . . Hawkeye Bancorporatlon, Des Moines . . MorAmerica Fin. Corp., Cedar Rapids . . Northwest Bancorporation, Minneapolis Security Natl. Corp., Sioux City ............ Promoted at Davenport Jam es Segreto has been pro moted from a s sistant cashier to a s s i s t a n t v ic e president of the F ir s t N a tio n a l Bank of D aven port. He joined the bank in 1974 and is active as an officer in the b a n k ’s i n s t a l m ent loan de partm ent. Red Oak Bank Names Two Executives Houghton S tate Bank, Red Oak, has announced the addition of two executive staff members. Jam es H. Skahill has joined the bank as m arketing and personnel officer. He recently retired as plant m anager of Union Carbide. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis condition of the approval of the Board of Governors of the Federal Reserve System to C entral’s acquisi tion of Associated Bank Corpora tion. Elected at Sioux City M ary Kay Lagan recently was elected commercial loan officer of Security N ation al Bank, Sioux City. M rs . L a g a n began her associ Holding Companies ation with the The seven registered m ulti-bank b a n k in 1970 holding companies in Iowa held total serving as secre assets on December 31, 1977, of tary to the com $4,280,624,531 and total deposits of mercial loan di $3,603,323,916. This represents a vision and com M. K. LAGAN 12.42% growth over 1976 year-end m e r c ia l c r e d i t assets of $3,807,729,772, and a assistant. M ost recently she was 10.7% growth over 1976 deposits of commercial loan representative. $3,254,990,784. Figures for individ ual holding companies are shown National Bank of Waterloo below: Announces Staff Changes Assets $ 944,264,764 . 544,000,000 567,768,000 656,865,130 177,126,988 1,143,831,000 246,768,649 $4,280,624,531 Deposits $ 796,369,148 496,000,000 416.742.000 583,966,585 140,716,911 965.430.000 204,099,272 $3,603,323,916 David W. H am m er has joined the bank’s instalm ent loan departm ent as loan officer. Mr. Hammer, a graduate of Peru State College in Peru, Neb., has worked for England D istributing Co. and U nity Welding Co. Sells Clear Lake Bank j . SEGRETO 119 C e n tra l N a tio n a l B a n c s h a re s , Inc., Des Moines based m ulti-bank holding company, has announced the sale of the outstanding common stock, other than directors’ qualify ing shares, of Community State Bank of Clear Lake, to William L. Nicholas and J . Duane W alker, both of Clear Lake. Central acquired the Community State Bank on February 27, 1978, upon the merger of Associated Bank Corporation, M ason City, Iowa, into Central, following C entral’s purchase of 98.95% of the outstanding common stock of Associated Bank Corporation. Central had agreed to sell the Clear Lake bank as a The National Bank of Waterloo has announced the following staff c h a n g es: M ax W . C ory, vice president and m anager of the instalm ent loan departm ent; Gerald Cook, Norm an Timson and Jam es Freet, assistant vice presidents; Elcina Buck, loan servicing officer; M arcia Colwell, tru s t operations officer; Daniel O’Brien, operations officer; Brian VanderW ilt, assistant auditor, and Thomas Voiding, farm m anager. Mr. Cook joined the bank in 1937 as a collector and m ost recently has been an assistant cashier and m anager of the personal bankers in th e m ain office. M r. T im so n , consumer credit officer, joined the bank in 1955. He was elected operations officer in 1973. Mr. Freet has been a system s supervisor in the data processing departm ent since M arch of 1977. He formerly was associated w ith the Citizens National Bank in D ecatur, 111. Frederick W. M ast has moved from the board to the advisory board. He is chairm an of Jens Olesen & Sons. Named At Davenport Gerald L. Wallis has been named vice president and senior tru s t officer of F irst T rust and Savings Bank, D avenport. He formerly was tru s t officer at the United S tates National Bank in Galveston, Tex. Northwestern Banker, April 1978 120 the directors m ay become personally liable. Still another problem expos ing a director to personal liability m ight arise when the bank m akes the m arket for its own stock. If the stock is sold at a price relative to book value or to earnings, at a ratio well above other bank stocks whose price is set by m arket forces, then the directors run the risk of being subject to legal action. A num ber of banks (likely to be family held institutions) do not com pensate their directors. Accord ing to the Internal Revenue Service, „ if a director serves w ithout com pen sation and is subject to a judgm ent predicated upon an unlawful act during his board services, such a judgm ent cannot be construed as an ordinary and necessary business expense for the bank. Directors can protect them selves from the liabilities by learning as much as possible about their duties and responsibilities. T hat is one of th e p rin c ip a l fu n c tio n s of th e N a tio n a l A s s o c ia tio n of B a n k Directors. The knowledge, prudence, and care which a director brings to his task , however, does not g ran t im m unity from legal action. Som e d ire c to rs h a v e s o u g h t additional protection through in demnification agreem ents w ith their banks. The best and m ost common form of protection is offered by a Directors and Officers Liability Insurance policy. This is an all-risks policy protecting the b an k ’s officers and directors from loss involving alleged negligent acts, errors or omissions while directing or m anaging the b ank’s affairs. The coverage pays for defense and settlem ent costs. Few exclusions exist in m ost Directors and Officers policies. In m ost cases, directors can protect them selves from liability w ith th e s e v a rio u s sp e cia liz ed coverages. B ut of equal im portance is the need to know as much about their duties and responsibilities as possible. The National Association of Bank Directors is designed to p erfo rm th is fu n c tio n , m ak in g directors more efficient and effective. Continental Bank, Chicago ................................... Crowther, John H...................................................... 29 49 LeFebure Corporation ........................................... Lincoln Benefit Life ............................................... 19 94 Daktronics ............................................................... Dawson Hail ............................................................. DeLuxe Check Printers ........................................... Downey, C.L............................................................... 12 39 9 8 Manufacturers Hanover Trust Co............................. Merchants National Bank, Cedar Rapids .............. Midland National Bank, Minneapolis ................... 37 2 60 OPEN HOUSE was held by Piper, Jaffray & Hopwood last month for customers and members of the business com m unity to view the new PJH offices at 600 Employers Mutual Building in downtown Des Moines. The greatly expanded offices of the Minneapolis-based investment firm accommodate a staff of 21 registered representatives and seven office assistants. Several o fficia ls from Minneapolis headquarters were in Des Moines to greet guests at the open house. Pictured above at the entrance to the special customer lounge and library are, left to right: Stacey Henderson, Des Moines branch mgr.; Harry C. Piper, Jr., pres, of PJH, and his son, Tad Piper, v.p. of the firm in branch adm inistration. PO TEN T IA L R IS K S ... [Continued from page 38] interpreted through court decisions before we know exactly where we stand. The startling and dram atic in c rease in in te rn a l fra u d and embezzlement also poses another problem for directors. If a bank suffers a large loss of this type and does not carry a Blanket Bond with sufficiently high lim its of coverage, APRIL, 1978 Acorn Printing Company ....................................... Aetna Business Credit ........................................... Allison and W illiams ............................................... American Express Travelers Cheques ..................... American National Bank, Chicago ........................ American National Bank, St. Paul ....................... American Trust, Dubuque ....................................... 52 13 18 6-7 56 73 115 Bank Building Corporation ................................... 33 Bankers Trust Company, Des Moines .................. 104 Banks of Iowa Computer Services ..................... 10-11 Brandt, Inc.............................................................. 66-67 Casualty Underwriters ........................................... 42 Central Bank of Denver ........................................... 79 Central National Bank, Des Moines ...................... 117 Chiles, Heider, Omaha ........................................... 96 Collateral Control Corp............................................. 22 Colorado National Bank ......................................... 77 Commerce Bank of Kansas City ........................... 51 Northwestern Banker, April 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Farmers Mutual Hail ............................................... 50 First Mid America ................................................... 90 First National Bank, Chicago ............................... 47 First National Bank, Lincoln ................................. 101 First National Bank, Minneapolis ........................ 16-17 First National Bank, Omaha ................................. 87 First National Bank, St. Paul ................................. 69 First National Bank, St. Louis ............................... 111 First National Bank, Sioux City ............................. 97 Gross, Kirk Company ............................................. 107 Harris Bank, Chicago ............................................. 55 Heller, Walter E.......................................................... 53 Insured Credit Services ......................................... 41 Iowa Bankers Insurance & Services ..................... 113 lowa-Des Moines National Bank ........................... 122 Kirchner, Moore & Company ................................. 3 Lawrence Systems ................................................. Lease N.W., Inc......................................................... Leamington Hotel ................................................... 14 63 68 NCR Corporation ..................................................... 4 National Bank of Commerce ................................. 93 National Bank of Waterloo ..................................... 109 Northern Trust Company, Chicago ....................... 15 Northwestern National Bank, Sioux City .............. 99 Packers National Bank, Omaha ............................. 86 Schweser, Robert, Omaha ..................................... Security National Bank, Sioux City ..................... Sitlers Supplies ....................................................... Square Deal Insurance Company ......................... Scarborough ........................................................... 87 91 21 44 45 Toy National Bank, Sioux City 95 ............................. United Guaranty Insurance Co.................................... 121 United States National Bank ................................. 82 U.S. Checkbook Company ................................. 76,88 Van Wagenen, G. D.................................................... 48 Western Capital, Omaha 31 ....................................... “Get me tw o aspirin, a tranquilizer and the man from United Guaranty” Calling in U nited sim ply m akes good sense. O perating nationw ide m eans w e’ve al ready handled m ost headaches you’ll m eet in m ortgage insurance. H andled them fast. Big or little. I t ’s one reason w e’ve m ore th a n $8 billion of insurance in force — a figure th a t gets bigger every day. G U A Ic U lty THE MORTGAGE INSURER United Guaranty Corporation, 826 N. Elm, Box 21567, Greensboro, NC 27420 • (919) 373-0863 Contact: United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722 In Iowa, call (800) 292-0047. In States bordering Iowa, call (800) 553-8976 United Guaranty Residential Insurance Company • 421 S.W. 6th Avenue, Suite 900, Portland, Oregon 97204 In Washington and Idaho, call (800) 547-1064. In Oregon, call (800) 452-7697 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa Bankers depend on Bob Buenneke to give them a lot o f help for th eir money. Thirty-two years ago Bob Buenneke began his banking career at his father’s bank in Maynard, Iowa. Today, he is one of the state’s best known correspondent bankers, and has been bringing his expertise to Iowa-Des Moines correspondents for 19 years. With knowledgeable people like Bob, the team at the Iowa-Des Moines is able to provide total service — a commitment that extends to more than 400 banks. Having worked for smaller banks as well as the state’s largest, Bob knows how to tailor the services of the Iowa-Des Moines to fit the needs of your bank. His expertise in the area of bank stock loans and agricultural financing can be helpful to you and your customers. By putting experienced people like Bob Buenneke to work for you we can assure the prompt, attentive service you need. And what it adds up to is . . . a lot of help for your money, from all of us. Lance Davenport Lynn Horak Bemie Kersey Dorothea Wolfe Voldy Vanags Call toll free 1 800 362-2514 - - to g et a lot of help for your m oney. Y es, you can g e t a lo t o f h e lp fo r yo u r m oney. '7 th & W alnut, D e s M oines, Iowa 5 0 3 0 4 (5 1 5 ) 2 4 5 -3 1 3 1 © 1 9 7 8 Iow a -D es M o in es N ational B ank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC An Affiliate of Northwest Bancorporation BANCO®
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