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Federal Reserve Bank of St. Louis

M eet the trust department
people who can make MNB
work for you.

Frank Ceynar
Our trust department will help you and your customers
deal with today’ s increasingly com p lex tax and estate
structures. A m on g the many trust services we offer:
Administration and execution o f estates; trustee for liv­
ing trust, trustee for trust under will, trustee for life insur­
ance trust, agency and custodian services, estate plan­

ning, trustee o f em ploym ent benefit accounts, corporate
accounts and trustee for investment management.
For knowledgeable, dependable planning, call on
o n e o f M NB’ s trust exp erts... Dick, Ed, Frank or H ugo
will make MNB work for you. The num ber to call is
3 1 9 -3 9 8 -4 2 2 4 or toll free 1 -8 0 0 -3 3 2 -5 9 9 1 .

Make sure you get the best by calling one of MNB’s Correspondent Banking Professionals.

John E. M angold

Terry Martin

Jerry N. Trudo

Dale C. Froehlich

Stan R. Farmer

Vice President


Vice President

Vice President

Vice President

(319) 398-4313

(319) 398-4320

(319) 398-4306

(319) 398-4314

(319) 398-4217


Merchants National Bank

Cedar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis




Here’s something comforting to take hold of:
the complete, coordinated securities services of
Manufacturers Hanover.
M HT has developed one of the most sophis­
ticated systems available for reporting, processing
and settlement of securities. We call it IMPAC,SM
and it allows you to communicate directly with
MHT via a dial-up terminal in your offices. So you
know, as quickly as possible, which funds will
be available when.
M HT has long championed book-entry
depository processing. As a major participant in the
Depository Trust Company and the Federal
Reserve book-entry program, we can help you gain
the benefits of the depository environment — like
reducing the high costs of holding and moving
physical certificates.
Federal Reserve Bank of St. Louis

In the safekeeping area, too, M HT offers
distinct advantages. Like our leadership as a
clearing agent. And our proven ability to handle
depository ineligibles, such as Commercial Paper,
Bankers Acceptances, Certificates of Deposit
and Municipals.
Questions? For answers and descriptive
literature, contact your National Division
representative. Or call Brian V. Carty, Vice
President, a t (212) 3 50 -46 5 8.
It ’s like having a securities security blanket.

America's premier correspondent bank
National Division. 350 Park Avenue, New York. N.Y. 10022


Northwestern Banker, April, 1980


N0 R M S T E R N
APRIL 1980 • 87th Year • No. 1399

New officers of the Independent Bankers Association of America are pictured at
the top of Nob Hill in San Francisco beside one of the c ity ’s famed cable cars. In
the background is the c ity ’s business d istrict skyline and the Oakland Bay
Bridge. Left to right are: W. C. Bennett, 1 st vice pres.; Robert L. McCormick, 2nd
vice pres.; Thomas F. Bolger, pres., and Robert H. Fearon, Jr., treasurer.
Complete story w ith pictures about the IBAA convention starts on page 30.


27 Planning for a PLAN
Guidelines dictate new procedures, says Robert F. Benzer

29 How to cope
Tom Smith looks at changing tim es w ith ag bankers

30 IBAA asks for rate equality
Government regulations stir controversy at 50th convention

34 Continued growth, less profit
United Bank of Denver speakers see inflation, com petition

36 What’s new
38 How to save oil!
New M inneapolis building aims at conservation


83rd Convention Program
You W ill See Them at the Nebraska Convention
Omaha News
Reports on Farm and Financial Conditions

c o

T3 ©


Bank Promotions
Corporate News
Twin Cities
South Dakota




- <

T3 «
” ©

North Dakota
W yoming
Des Moines

■5 «o



30615th Street, Des Moines, Iowa50309

Phone (515) 244-8163



Business Manager

Malcolm K. Freeland

Ben Haller, Jr.

Mike Freeland

Associate Editor
Deborah Peck


Field Representative

Field Representative

Debbie Hibbert

Glen Hicks

Paul Masters

No. 1399 Northwestern Banker (USPS 397-620) 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.
all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address.
Federal Reserve Bank of St. Louis

A lot of travelers cheques
But w e’ve got the
num bers to prove it:

34 070 196 648


orporation . ,.f
San Francisco.
California. U S A
pay Shis chepos,
to the order of
in United Sbttnt
Fifty Dollars,
fn ail other countries
at current buying rale
for Bankers' Cheques

v tô l

Saw fr*«W^Xs55K»l



•:aooD-OGO n:o?o i c}&"<E,i.aE,3M*
at-; taj ï c c ï •

. umm m im m m m ffim m m m m


For over 50 years we’ve been making the travelers cheque business
profitable for our sellers.
So if you’re considering a change, get the full story from us first. Just
call (800) 2270333.
Or if you’re in California, call us collect at (415) 622-4620.
We’ll talk about profits.
Not promises.

BankAmerica Travelers Cheques.
BA Cheque Corporation
A BankAmerica Company
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


If you’re a
Full Service Bank,

why keep it a secret?
If you’re a member of the American Bankers
Association, you are A FULL SERVICE BANK?
So display the A FULL SERVICE BANK symbol.
After all, w ith banking’s grow ing com petition,
why keep it a secret?
Display the A FULL SERVICE BANK symbol on
your doors, drive-in windows and in your adver­
tising. It tells your customers you offer onestop banking convenience in a place that’s pro­
fessional and accommodating.

So display this symbol. When your customers
see it, they’ll know you’ve “Got The Answers’.’
For free decals, call or w rite Gwen Strickland,
Media Coordinator, American Bankers Associa­
tion, 1120 Connecticut Ave., N.W., Washington,
D.C. 20036, (202) 467-4187.

Display the symbol and your bank automatically
benefits from the ABA, “We’ve Got The Answers”
national advertising campaign. Your dues have
helped finance this $5 million campaign to help
you com pete against the S8<L’s, savings banks
and credit unions.
Using the symbol says you’re part of a nation­
wide banking com munity that’s go t the answers
to all banking needs. Even if you are a small
bank, w ithout all services in house, you can
provide any banking function through corre­
spondent relations.

© 1980 American Bankers Association
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis



Convention Calendar

V __________________________________

___________________ J

A B A — American Bankers Association
A IB — American Institute of Banking
BAI — Bank A dm inistration Institute
BMA — Bank Marketing Association
IBAA — Independent Bankers Association
of America
NABW — National Association of Bank
Women, Inc.
RMA — Robert Morris Associates

79th Annual Convention, Broadmoor Ho­
tel, Colorado Springs.
Aug. 3-15— CBA School of Banking, Uni­
versity of Colorado, Boulder.
June 8-10— Illinois Bankers Association
89th Annual Convention, S touffer’s Ri­
verfront Towers, St. Louis, Mo.

June 8-14 — IBA A g ric u ltu ra l L e n d in g
School, Illinois State University, Normal.
Apr. 13-16— ABA National Instalment Cred­ June 11-14— IBA Advanced Agricultural
Lending C linic, Illinois State University,
it Conference, Sheraton Park, WashingNormal.
ton, D.C.
Apr. 23-25— ABA Governing Council Meet­ A ug. 1 7-23— IBA C o n su m e r L e n d in g
S c h o o l, E astern Illin o is U n iv e rs ity ,
in g , The G re e n b rier, W h ite S u lp h u r
Springs, W. Va.
19-20— IBA 35th Annual Bank Man­
Apr. 27-30— ABA National Marketing Con­
agement Conference, Holiday Inn, De­
ference, Americana Bal Harbour, Miami
Apr. 27-30— Conference of State Bank Su­ Iowa:
p e rv is o rs A nnual C o n v e n tio n , MGM April 24-25— IBA and NABW Management
Grand Hotel, Las Vegas.
Process Seminar, Eddie Webster’s, West
April 27-30—ABA Sales Training for Corre­
Des Moines.
spondent Bankers Seminar, Hyatt Re­ May 5— Gp. 8, Davenport.
gency, San Francisco, Calif.
May 6— Gp. 4, Dubuque.
May 1 -4 — IBAA S e m in a r-W o rk s h o p on May 7— Gp. 7, Marshalltown.
Bank Ownership, Boca Raton Hotel & May 8— Gp. 3, Clear Lake.
Club, Boca Raton, Fla.
May 19— Gp. 5, Council Bluffs.
May 7-10— NABW W estern/R ocky Moun­ May 20— Gp. 6, Des Moines.
tain Regional Conference, Doubletree May 21— Gp. 2, Fort Dodge.
Inn, Tuscon, Ariz.
May 22— Gp. 12, Okoboji.
May 11-14 —ABA Northern Regional Bank June 9-20—Ag Credit School, Iowa State
University, Ames.
Card Conference, The Fairmont Hotel,
June 15-20— Iowa School of Banking, Uni­
New Orleans.
versity of Iowa, Iowa City.
May 11-16— ABA Com m unity Bank CEO
Program, Houstonian Inn, Houston, Tex. July 17-19— Iowa Independent Bankers 9th
Annual Convention, The New Inn, Lake
May 15-18— IBA, 12th Sem inar/W orkshop
on Bank Ownership, Hilton Inn, Clear­
water Beach, Fla.
S ept. 21-23 — 94th A n n u a l C o n v e n tio n ,
May 15-18— NABW Northwestern Regional
Civic Center, Des Moines.
C o n fe re n ce , Red Lion M o to r Inn,
Portland, Ore.

National Conventions & Schools


May 18-21— ABA National Operations &
Autom ation Conference, New York H il­
ton and Sheraton Centre, New York City.
May 24-29— AIB Annual Convention, Hyatt
Regency, New Orleans.
May 25-30— BMA School of Trust Sales and
M a rk e tin g , U n iv e rs ity of C o lo ra d o ,
May 25-June 6 — BMA S ch o o l of Bank
M a rk e tin g , U n iv e rs ity of C o lo ra d o ,
May 31-June 6—ABA National and Gradu­
ate Schools of Bank Investment, Univer­
sity of Illinois, Urbana, III.
June5-7 — Assn, of Bank Holding Compan­
ies 22nd Annual Meeting, W illiam sburg
Inn, W illiam sburg, Va.
June 16-18— NABW Tri-Regional Confer­
ence, (North Central, Lake and Midwest
re g io n s ) P fis te r H otel and T ow er,
Milwaukee, Wis.
July 19— AIB Dist. 11 Leaders Conference,
Ramada Inn (Airport), Milwaukee, Wis.

State Conventions & Schools
June 5-7—Colorado Bankers Association
Federal Reserve Bank of St. Louis

B ro a d m o o r H o te l, C o lo ra d o S p rin g s ,
Apr. 8—Teller Training Symposium, Nor­
Apr. 9— Tel 1er Training Symposium, Omaha
Apr. 10—Teller Training Symposium, Lin­
co ln .
May 4-6—83rd Annual Convention, Hilton
Hotel, Omaha.
June 7-11—W ashington Legislative Visit.
North Dakota:
April 8-9— Consumer Credit Conference,
Kirkwood Motor Inn, Bismarck
A p ril 1 6 -1 8 — NABW S ta te C o n v e n tio n ,
Kirkwood Motor Inn, Bismarck.
May 19-20—95th Annual Convention, KirkWood Motor Inn, Bismarck.
June 8-13— School of Banking, University
of North Dakota, Grand Forks.
June 25-27— NDBA Upper Midwest A gricul­
tural Credit Conference, Medora.
Sept. 17-19— Ind. Bankers Annual Con­
vention, Ramada Inn, Minot.
South Dakota:
May 11-13—88th Annual Convention, How­
ard Johnson’s, Rapid City.
Oct. 22-23— SDBA Economics Seminar,
Holiday Inn, M itchell.
Oct. 9-10— SDBA Instalment Credit Con­
ference, Sheraton Hotel, Aberdeen.
Apr. 20-22— Biennial W ashington Trip.
June 11-13 — 72nd A n n u a l C o n v e n tio n ,
Jackson Lake Lodge, Moran.


For Installm ent Loans


May 2— M B A G p.6, War Bonnet Inn, Butte.
May 3— MBA Gp. 7A, Riverside Country
Club, Bozeman.
May 5— Gps. 2 and 7B, Crossroads Inn,
Miles City.
May 6— MBA Gp. 4, Golden Wheel Night
Club, Plentywood.
May 8— MBA Gps. 5A and 5B, Yogo Inn,
May 9— MBA Gp. 1, Marias Valley Golf
Club, Shelby.
May 10— MBAGps. 3 A a n d 3 B , Outlaw Inn,
May 22-23— MBA Trust Conference, Shera­
ton, Great Falls.
June 25-27 — 77th A n n u a l C o n v e n tio n ,



Apr. 22-23— Lending Conference, Radisson Hotel, St. Paul.
April 29-30—Word Processing Association
of Minneasota’s 1980 Symposium and
Exhibition, Leamington Hotel, Minne­
May 5-8—W ashington Legislative Trip.
June 16-17—90th Annual Convention, Du­
luth Arena Auditorium , Duluth.
June 22-27— Minnesota School of Banking,
St. Olaf College, Northfield.



• A u to m a te d
• M anual


call or write:

T E L /7 G-D- V A N
1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
(612) 333-2261

V ________


Northwestern Banker, April, 1980


ROMOTIONS and other changes
have been announced by the fol­
lowing banks:


inventory loan
floor plan
fo r...
lending institutions
Let us sew one
up for you.
Call John Cressend
Exec. Vice President
504/ 523-5353

offices in 15 principal cities
with Executive Offices
in New Orleans, LA
P.O. Box 52978, 70130

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

has held several positions within the
bank and its subsidiaries, most re­
cently in the worldwide loan admin ­
istration and review section.

Commerce Bancshares, Inc., Kan­
sas City: Thomas E. Bishop Jr. has
First National Bank of Kansas
been named vice president in the loan City: Promotions include Steven O.
administration department respons­ Stoecker to assistant vice president
ible for the holding company’s loan and Sally Platt to assistant cashier.
review department and commercial
Mr. Stoecker is a commercial loan
lending. He joined Commerce Bank officer in the metropolitan division.
of Kansas City, N .A., as an assistant He joined the bank in January after
vice president in charge of commer­ an association with Commerce Bank
cial lending in the correspondent of Kansas City. He has a BS and
division. Mr. Bishop has a BS degree M B A from the U niversity of
and an MBA from the University of Missouri-Columbia.
Ms. Platt joined the bank in 1967
Five new officers have been named and was most recently coordinator of
at the Commerce Bank of Kansas the human resources area, a
City. Price B. Blackwell, who joined com puterized payroll system . She
the bank in January, 1979, was has a BS from Kansas University appointed a com m ercial banking Lawrence.
officer in the national department.
Bradley L. Blevins and Janet M.
Fink were named consumer banking
officers in the retail department. Mr.
Blevins joined the bank in 1973 and
Ms. Fink has been with Commerce for
seven years.
Stephen L. Hallier and Martha S.
Tush were named operations officers.
Mr. Hallier becomes manager of the
exception processing department. He
has been with the bank since 1976.
Ms. Tush, with the bank for 15 years,
is transit manager in the check pro­
cessing department.
The First National Bank of
Chicago: Stanley A . Latham and
Colin C. Johnston have been pro­
moted to head divisions within the
correspondent banking group of the
commercial banking department.
Mr. Latham, a vice president, will
head the east central division, cover­
ing Illinois, Indiana and Michigan.
Mr. Latham joined First Chicago in
1973 as an equity analyst in the trust
department and later served in the
correspondent banking group. His
most recent assignment was in the
Atlanta regional office.
Mr. Johnston, also a vice presi­
dent, will become head of the west
central division, which includes W is­
consin, Iow a, Kansas, M issouri,
M innesota, Nebraska, Colorado,
Kentucky, North and South Dakota,
Wyoming and Montana. Mr. John­
ston joined First Chicago in 1964 and



Five bank employes have received
advancements: WilliamH. Broderick
III and Harold E. Mayse, assistant
vice president: Wendell T. Bollinger,
data processing officer, and Susan L.
Krieg and John M. Mikenis, com­
mercial banking officer.
Mr. Broderick, a member of the
credit department, joined the bank in
1976. He has an MBA degree in fi­
nance from Washington University.
Mr. Mayse joined the electronic data
processing department in 1969. He
has a BS degree from Southwest
Missouri State College.
Mr. Bollinger, who has an MBA



The ins and outs
of the agricultural
lending market

; ''3 3

A correspondent bank that’s in the ag overline
market one year and out the next is just the kind of
correspondent bank you don’t need. Your agri­
business customers need credit they can depend on.
Continental Bank is committed to the ag market.
This year. Last year. Next year. Not because it’s a
good crop year, or prices are high, or loan demand
is down in other industries. W e’re in it for the same
reason w e’re in the correspondent banking business.
To build long-term banking relationships.
Continental Bank has always provided corre­
spondents with seasonal loans and agricultural


overlines. Because consistency is something you
have every right to expect from your bank.
You expect decisiveness, also. At Continental,
you get it. Credit requests go directly to your account
manager. The officer who can say “yes” or “ no” on
most loans. You get a decision fast. From the person
who made it.
Call John Tingleff at (312) 828-2191. Tell him
you’re in the market for farm credit. You can bet
w e’ll be in the market, too.
It’s what you expect from a top correspondent
bank. At Continental Bank, it’s reality.

Continental Illinois National Bank and Trust Company of Chicago
231 South LaSalle Street, Chicago, Illinois 60693
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

Express Eac from
m akes short work;

Express PacYrom American Express is a simple, efficient
system for selling travelers cheques. A study conducted by
Arthur Young & Company showed that Express Pac can
save time and trouble for both you and your customer.

Express Pac
can cut transaction time
in half.

Shorter selling time—shorter lines.


Express Pac is an innovative precounted, color-coded system that speeds
up and streamlines the whole process of
selling travelers cheques.
The color-coded envelopes, prepackaged
in convenient multiples o f $50, enable the seller to quick­
ly select the proper denomination and number of cheques
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

required, completely eliminating the need for assembling
and counting loose cheques.

Prepackaged cheques and pre-numbered forms
enable tellers to serve your customers faster.
!Q 3(«T !


And Express Pac cheques are designed to
he signed away from the window,
I which means your customers can sign^
their cheques without the time pres­
of lines, while your tellers get on
to the next customer. Altogether,
Express Pac efficiencies can cut your
transaction time by 50% —which frees
valuable teller time and results in shorter, faster-moving
lines. So, customers can get in and out of the bank faster.



A m erican Express
o f travelers cheques

short lines.
Express Pac leaves little room for error.

that audits and reconciliations are easier and faster with
Express Pac, compared with loose cheques. In many cases,
Express Pac may also reduce reporting and exceptions
handling problems.

Prepackaging eliminates cheque-counting errors, while
preprinted Purchaser’s Applications do away
with recording errors by eliminating the need
for the seller to fill in cheque numbers.The
preprinted form also reduces calculation
errors. So Express Pac helps cut down on
costly reconciliation and correction.


Express Pac can speedup
the whole process—from front
window to back office.
The Express Pac system offers automatic replenishment of
inventories and supplies. A nd early indications suggest
Federal Reserve Bank of St. Louis

From waiting line to bottom
line—Express Pac improves
travelers cheque business.

O nce you put Express Pac into operation, you’ll
see why it has been so quickly and enthusias­
tically received by banks—and customers.
By saving you and your customers time
and trouble it can help make your
travelers cheque business not just faster and
simpler but more profitable.

American Express®Travelers Cheques
American Express Plaza, New York, New York 10004






degree in management from St. Louis
University, joined the bank in Febru­
ary. He was formerly manager of the
accounting department at the Fed­
eral Reserve Bank of St. Louis.
Ms. Krieg and Mr. Mikenis both
joined the bank as credit analysts in
1977. Last year they transferred to
the special industries department.

Changing or traveling
billboard forcom m unity
service and unique
Simple keyboard.

Daktronics has taken the service expense
out of message displays with 100% solid
state electronics. Our engineers will
custom design a display to enhance the
architecture of your building and will
provide a color drawing and quote at no
cost. Call or write for details today.



Box 299 Brookings, SD 57006
Phone 605-692-6145
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

First Stock Yards Bank of St.
Joseph, Mo.: Bob Azelton Jr. recent­
ly joined the
bank as agricul­
tural representa­
tive, according to
H. H. Broadhead
J r., chairman.
M o st r e c e n tly
Mr. Azelton was
farm service di­
rector at KFEQ
Radio in St. Jo­
seph. He has
been involved in ag-related activities
for six years in M issouri, Iow a,
Nebraska and Kansas and has a BS
degree in business from the Univer­
sity of South Dakota.
Harris Bankcorp, C hicago: A n ­
nouncement of the retirement of
Stanley G. Harris
Jr. as chairman
and other top
m anagem ent
c h a n g e s w as
made at the an­
nual meeting of
stockholders last
M r. H a rr is ,
who will be 62 in
June, will take



early retirement June 30. Charles M.
Bliss, chief executive officer, will be­
come chairman of the Harris Trust
and Savings Bank and its holding
company, Harris Bankcorp, effective
July 1.
Succeeding Mr. Bliss as president
of the bank and holding company,
effective July 1, is B. Kenneth West,
executive vice president and head of
the banking department.
Mr. Harris, who will continue as
a member of the board of directors of
the bank and holding company, is a A
35-year veteran of the bank. He is
grandson of Norman Wait Harris,
who in 1882 founded the investment
banking firm, N.W. Harris & Com­
pany, predecessor of Harris Bank.
Harris is the fourth in his family to
serve as chairman. Beside his grand­
father, the others were his uncle,
Albert W. Harris, and his father,
Stanley G. Harris.
Mr. Harris joined the bank in 1944,
working first in the credit division.
He became a director of the bank in
1962, senior vice president in 1966,
vice chairman in 1971 and chairman
in 1977.
Like Mr. Harris, Mr. Bliss, 58,
joined the bank in 1944 and became
chief executive officer in 1977.
Mr. West, 46, joined Harris in 1957
and headed the international banking
group until he becam e banking
department head in 1976. A Phi Beta
Kappa graduate of the University of
Illinois, he has been executive vice
president since 1977 and a director
since 1979.
Richard O. Ristine Jr. has been
appointed commercial banking repre­
sentative in the
national accounts
division of Harris
Bank, C hicago,
where he is re­
s p o n s i b l e for
services to corre­
spondent banks
and corporations
in Iowa, Indiana
and Kentucky.
He graduated


Sometimes it's better than being there.
Northwestern Bell
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

in 1970 from Coe College, Cedar
Rapids, Iowa, and later served as a
bank examiner for the Federal Re­
serve Bank of Chicago and his travel
assignm ents included many Iowa
bank examinations.
Mr. Ristine joined Harris in 1976
as a municipal bond salesman. He
transferred to commercial banking
last April, where he joined Jim Hill
and other members of the Harris
Iowa team.
National Boulevard Bank of
Chicago: Richard B. Stebbins was
elected a senior vice president, and
Timothy G . Towle was named a vice
president, according to Henry K.
Gardner, president.
Mr. Stebbins will head the com­
mercial department, divisions A, B &



C, corresprondent bank, real estate,
executive loan, credit and consumer
credit department. He joined Nation­
al Boulevard with 15 years banking
experience, m ost recently as vice
president and manager of the energy
industries group at The First Nation­
al Bank of Chicago. He has a BA from
Hamilton College, Clinton, N. Y ., and
an MA in international economics

from Fletcher School of Law and
Mr. Towle joined the bank’s con­
sumer credit department in 1977 and
most recently served as an assistant
vice president. He is a graduate of
Southern Illinois University with a
BS degree in finance. Prior to joining
the bank he headed dealer credit
operations with GMAC in Brook­
field, Wis.
Northern Trust Corporation, Chi­
cago: Harold B. Smith Jr. has been
nom ination for
election to the
board of direct­
ors. He is presi­
dent and a direct­
or of Illinois Tool
Works, Inc. Un­
der the corporat­
ion’s retirement
policy for direct­
ors, Douglas R.
Fuller and HarH. B. SMITH JR.
old Byron Smith will not stand for reelection.
It is planned that the senior Mr.
Smith will become honorary director
and Mr. Fuller will join the directors
advisory council. B oth men have
served on the board since its
inception in 1971. Mr. Fuller also was
vice chairman until his retirement in
At the subsidiary Northern Trust
Company, the following promotions
and new appointments were announc­
Promoted to vice president in the
trust department were Ronald D.

— Our 60th Year —
STATEMENT OF CONDITION At Close of Business December 31, 1979
U.S. Government B o n d s ................$5,726,896.70
OtherBonds ................................... 1,183,775,72
S to c k s .............................................
Accrued Interest, ept.
Cash In Bankand HomeOffice . . . .
Total Admitted Assets ..........$7,496,445,81
Reserve for Federal and State Taxes ......................$ 202,012-52
Other Liabilities ............................................... ..
Total Liepilities . .......... ................................. $ 822,550.02
Funds for Polievholder Protection ........................ 6,673,895.79


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Ififi £

United Missouri Bank of Kansas
City, N .A .: R. C rosby Kem per,
chairman and chief executive officer,
has announced the promotion of one
executive vice president and four
senior vice presidents.
Michael T. Fleming has been pro­
moted to executive vice president in
charge of business development. A
1969 graduate of the University of
Missouri-Kansas City, Mr. Fleming
joined United Missouri in 1970.
Michael R. Hart has been promot­
ed to senior vice president in business
development. He has an MBA from
Kansas University. Mr. Hart joined
United Missouri in 1972.
David D. Miller has been promoted
to senior vice president and trust
counsel. After receiving a masters in
accounting and a law degree from
Kansas University, Mr. Miller joined
United Missouri in 1965.
Barbara A. Carlson has been pro­
moted to senior vice president in the
investm ent division. She join ed
United Missouri in 1957 and is a 1978
graduate of the Graduate School of
Business A dm inistration, P ublic
Finance Institute.
Stephan P. Blackburn has been
promoted to senior vice president and
assistant manager of the correspond­
ent banks division. He has a masters
degree in agricultural econ om ics.
Previously with Central Soya Com­
pany, he joined United Missouri in

New ABA Executive
For Communications

Securities carried at $401,777.93 in above statement are deposit­
ed with public authorities as required by law.


Harkness, probate division , and
Carolyn L. Sachs, personal financial
planning. In the banking d ep a rt­
ment, Frank H. Creamer was named
second vice president and petroleum
Promoted to second vice president
in the operating department were
David K. Barclay, Daniel A. Ericson,
JohnT. Gatesy and Linda H. Higinbotham. Harold L. Cleal was pro­
moted to second vice president in the
farm acquisition area of the trust de­


# P(utual

James E. Lodge has been named
executive director of the American
Bankers Association’s communica­
tions group, Executive Vice Presi­
dent Willis W. Alexander announced.
Mr. Lodge joined the ABA in May,
1973, as associate director of the
operations and automation division.
He was named director of the division
in March, 1974.

LeFebure builds value, security and reliability
into its handsome Series 5000 vault door.
Here is classic beauty to complement virtually any
decor, plus the vault protection your customers expect
...a n d at an affordable price.
This polished, stainless-steel-clad door is accented
by a black and stainless handle which activates a full
length locking bar. Suspended on linear bearings, the
locking bar moves easily, permitting the door to swing
at a touch.
Dual spyproof combination locks are accented with
black inserts. The 120-hour time lock and anti-lock-in
mechanism are concealed beneath a full-length hinged
cover. When this cover is closed it provides a smooth,
uncluttered look.
Federal Reserve Bank of St. Louis

The door has exclusive Monolithiguard® torch and
drill protection over the locking mechanism, and torch
attack-resistant material over the entire surface. It is
U/L listed and meets all specifications of the Bank
Protection Act and the Insurance Service O ffice
You can choose from four different architraves. Ask
your LeFebure Sales Engineer to tell you more.

Division of Walter Kidde & Company, Inc.

Cedar Rapids, Iowa 52406









■ Precision made on special machines from finest quality
/' (
■ ‘ Patented Red Bordered W indows 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.
■ For years a favorite w ith leading banks and financial
■ 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 ,00 0 to a box. Tapered edges. Available Imprinted.
For details on* other high quality "S teel-S trong" 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 /

h a n n ib a l ,

M is s o u r i, d e p t , n




Firm ______________________________________ ___
A ddress___________

______ _______ ______________

City___________________________ State___________


Banker, April, 1980
Federal Reserve Bank of St. Louis





Truth in Lending
Guidelines Illegal
Guidelines issued for the enforce­
ment of the Truth in Lending A ct by
the federal banking regu latory
agencies have no legal effect on
banks, the U.S. District Court for the
District of Columbia ruled February
However, because requests made
to banks by the regulatory agencies
to search their loan records for
possible Trust in Lending Act violat­
ions and to make reimbursements to
their customers are requests and not
orders, the Court dismissed a legal
challenge of the enforcement guide­
lines which was lodged b y the
American Bankers Association last
In other w ords, because the
agencies’ instructions to banks to
make record searches and reimburse­
ments are not legally binding, they
cannot be challenged in a court of law.
The Court said: “ If a bank should
refuse to implement a guidelines prin­
ciple—by failing to search its records,
by failing to make reimbursements,
or otherwise—no action can or will be
taken against it as a result of the
guidelines . . . ”

Deluxe Check Applies
For New York Exchange
Deluxe Check Printers, Inc. an­
nounced recently that it will file an
application for the listing of its com ­
mon shares on the New York Stock
Exchange. It expects that the formal
application procedures will be com ­
pleted early in May, 1980, and that
its shares will then be cleared for
trading on the Exchange under the
symbol “ D L X .”
The com pany presently has
11,450,520 shares outstanding.

“Bankbook ’80” Available
“ Bankbook ’80,” a catalog of edu­
cational programs for professional
banking, has been published by Bank
Administration Institute. Developed
as a planning guide for banker edu­
cation, the catalog provides a com ­
plete listing of the Institute’s educat­
ional opportu nities and briefly
describes each program.
For more information, or to obtain
a copy of “ Bankbook ’80,” contact
the E ducation D evelopm ent D iv i­
sion, Bank Administration Institute,
303 S. Northwest Highway, Park
Ridge, 111. 60068.


RO M O TIO N S and other an­
nouncements have been made by
the following firms:


Brandt, Inc., Watertown, Wis.:
James A. Wilgus has been named to
the newly-created position of major
accounts manager, and Jack R. Luebeck has taken Mr. Wilgus’ former
position as western regional field
sales manager, according to Kenneth
H. Flitz, vice president-sales.


las before joining Daktronics in 1978.
He resides in Columbia, Mo.
Dennis Pohl has been named dis­
trict sales manager in Kansas and
N ebraska. A Kansas native, he
attended Em poria State and the
U niversity of K ansas-Law rence,
where he will reside. He formerly was
a golf pro at several country clubs and
has competed in PGA events.
Diebold, Incorporated, Canton,
Ohio: Ernesto R. Unanue has been
appointed managing director, inter­
national division (worldwide), and
Frank G. D ’Angelo was named vice
president, bank system s division,
and general manager of automatic
banking systems and services, it was
announced by Earl F. W earstler,
executive vice president.


Mr. Wilgus joined Brandt in 1976
as a region marketing manager after
earlier service with IBM and Union
Carbide. As major accounts manager
he takes responsibility for manage­
ment of the company’s major and
national account sales, serving as
liaison with manufacturer and field
sales organization. He has a BS de­
gree in marketing from the Univer­
In addition to his current duties
sity of Illinois.
coverin g the Latin Am erican and
Mr. Luebeck joined Brandt in 1978 Caribbean operations, Mr. Unanue
as a product sales manager with re­ will assume the balance of Diebold’s
sponsibility for introducing the com­ international division functions. He
pany’s new cash settlement system joined the firm in 1972 and was
for banks and retail stores. Formerly named general sales manager of the
associated with IBM, he has a BS international division in 1978. He has
degree from the University of Wis- a BS degree in industrial engineering
con sin -M adison and an MS from from the University of Houston.
Mr. D ’Angelo joined Diebold last
as general manager-of Total
Daktronics, Inc., Brookings, S.D.:
Dave Walkenbach has been promoted Automatic Banking Systems (TABS)
to regional manager for coordinating Support Services. He formerly held
com pany activities in Kansas, various management positions with
Missouri, Iowa and Nebraska. He the Burroughs Corp. and has an A A
was formerly with McDonnell Doug- degree from Santa Barbara (Calif.)
City College.

Federal Reserve Bank of St. Louis

LeFebure, Cedar Rapids, la .:
Fredrick Girbert has been appointed
manager of the St. Louis branch, and
Richard Wilson was named a sales
Mr. Girbert will supervise both
sales and service for the territory in­
cluding eastern Missouri, southern
Illinois and portions of Indiana and



Kentucky. He joined the firm in 1968
and was m ost recently a sales
engineer in the Columbus branch.
Mr. Wilson will be operating out of
Cedar Rapids concentrating on a 19county market area in south central
Iowa, including the markets of Des
Moines, Ames and Marshalltown. A
Des Moines resident, he has had ex­
tensive sales and sales management
Lincoln Benefit Life, Lincoln,
Neb.: Two marketing professionals
have joined the firm, according to
C.T. “ Cemy” Young, president.
J. “ T o n y ” Czerwinski, vice
president-agency, will manage LBL’s
six-man regional staff over 22 states
from Indiana to Oregon and be re­
sponsible for agency expansion and
sales growth. He was formerly area
sales manager for Fireman’s Fund
Am erican Life and regional sales
director at Midland National Life.
Robert E. Main, vice presidentspecial markets, will develop sales
arrangements of the firm’s life/disability/annuity products in special
markets. He also will have duties as
company representative in Indiana
and southern Illinois. He formerly
was vice president-payroll deduction
division of Underwriters Internation­
al, Inc. and with All American Life &
Casualty Co.
Northwest Computer Services,
Inc., Minneapolis, Minn.: David Van
Lear has been named executive vice
president, and Michael J. Jensen was
named vice president and controller
of NCS, the data processing subsid­
iary of Northwest Bancorporation.
Mr. Van Lear had been vice presi­
dent and controller.since 1977. Since
joining the company in 1969, he has
been project analyst, accounting
manager and assistant controller. He
is a graduate of San Diego State Uni­
Mr. Jensen had been controller
since 1977 and has held various
positions since joining NCS in 1970.
He is a graduate of the University of
Northwestern Banker, April, 1980


FDIC Challenges Labor Department


ECAUSE only the Federal De­
posit Insurance Corporation can
withdraw a bank’s deposit insurance,
the FDIC opposes a regulation pro­
posed by the Department of Labor’s
Office of Federal Contract Compli­
ance Programs that would permit
withdrawal of deposit insurance for
violation of the provisions of Execu­
tive Order 11246. This executive
order requires that “ governm ent
co n tra cts’ ’ provide that the co n ­
tractor cannot discrim inate in its
em ploym ent practices based on a
person’s race, color, religion, sex or
national origin.
The FDIC’s position on the pro­
posed regulation was set forth in
w ritten com m ents to OFCCP by
Chairman Irvine H. Sprague.
OFCCP has clarified its proposed
rules and stated that, as a matter of
“ enforcem ent p o lic y ,’ ’ it will not
terminate a bank’s deposit insurance.
This clarification was issued by
OFCCP following discussions with
the staffs of the financial institutions
regulatory agencies, including the
FDIC. The FDIC views this action by
OFCCP as a positive step. However,

such an amendment does not assure
continued protection to depositors
because the agency’s “ policy’ ’ may
change in the future and the FDIC
does not want it to appear that,
through inaction, it agrees with

Heads Chicago Area
Scout Fund Drive
Michael E. Tobin, chairman of the
board and chief executive officer of
A m e ric a n N a ­
tional Bank &
T rust Com pany
of Chicago, was
named general
chairman of the
$4 m illion C hi­
cago Area Coun­
cil Boy Scouts of
America Capital
Cam paign. Ac___
cording to Henry
M' E' T
A. Johnson, Chicago Area Council
president and chairman and chief
executive officer of Spiegel, Inc., in­
come from the campaign will be used
to support and im prove the B oy

Scout camping program.
Approximately $2,400,000 will be
spent to modernize camp properties
and to construct new camping facil­
ities. An additional $1 million will be
invested in a long-term endowment
fund, the interest from which will
finance more than 2,000 camperships
for underprivileged S co u ts , C u b s,
Webelos and Explorers, as well as
special scouting programs for the
handicapped and juvenile offenders.
The theme of the campaign will be
“ How Far Can An Eagle F ly?,’ ’ and
is scheduled to run through May 31 of
this year.

Opens Singapore Office
At formal ceremonies opening the
Singapore representative office of
First National Bank in St. Louis,
Edwin S. Jones, chairman of the
ban k ’ s executive com m ittee said,
“ We expect Asia, in general, and
Southeast Asian countries, in partic­
ular, to enjoy unprecedented growth
over the next four decades.’’
He added that the bright potential
in Asian investments and trade with
the U.S. was one of the major factors
in the bank’s decision to establish the
office in the Republic of Singapore.

DECEMBER 31,1979


Bonds: (Amortized)
Government ...........................................$23,276,652
State, County and M unicipal........... 27,802,766
AllOther ...............................................
Stocks: (M arket-N.A.I.C.)
Preferred ...............................................$
C o m m o n ..............................................._______527,141
Real Estate — Including Home Office Budding
Cash and Bank Deposits ...........................................
Agents Balances and Reinsurance Receivable
Interest Due and Accrued
All Other ........................................................................


Reserves for
Losses and Loss Expense .............................................$ 9,771,174
Contingent Commissions .............................................
Taxes (Other than Federal Income) .........................
Federal Income Tax ......................................................
Unearned Premiums ......................................................
Funds Held Under Reinsurance Treaties ................
Reinsurance Balances Payable ..................................
AllOther ........................................................................
TOTAL L IA B IL IT IE S ..................................$26,704,798
281,568 Surplus as Regards Policyholders ............................. 41,779,807


................................................................. $68,484,605

PERRY RUTLEDGE, Vice President & Secretary
Home Office 2323 Grand Avenue, Des Moines, Iowa 50312
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


The Mosler
Service people
w h erever y o u are*
It’s a fact that you’ll find Mosler service people in
places you won’t find anyone else. You’ll also find that
Mosler people understand that getting to you “as soon
as we can” just isn’t soon enough.
That’s why last year alone, Mosler service people
drove more than 20,000,000 miles in their customequipped vans to keep all kinds of security and
transaction products in operation. Twenty Tour hours
a day. Seven days a week. Even in Alaska.
Another fact. Mosler service people spend up to
20% of their careers staying up-to-date with current
technology. So they come to you trained to do the
job right. Usually the first time. And always at
prices you can live with.

Secu rity p rod u cts
w h erever th ey ’re n eeded.
Whether custom-guarding the original
Declaration of Independence in Washington, DC,
safeguarding the gold in Ft. Knox or protecting
valuables in a safe deposit box in Topeka, Mosler stands
for excellence
everywhere. All
because the quality of
Mosler products
stems from the
quality of its people-an
advantage our customers can’t get
from any other security company.
Put The Mosler Advantage to work for you. Start with
a copy of our “Scope of Mosler” and “Service” brochures by writing
Mosler, Dept. S-80, 1561 Grand Blvd., Hamilton, Ohio.

Q u ality P eople. Q u ality P ro d u cts.
Federal Reserve Bank of St. Louis


American-Standard Company

H am ilton, O hio 45012

Northwestern Banker, April, 1980


Chicago Office of Manufacturers Hanover


H anover
Corporation, the New Y ork-


based holding com pany, has an­
nounced the opening of a full-service
com m ercial financing office in
Chicago. The office will be the midwestern regional office for Manufac­
turers Hanover Commercial Corpor­
ation (Delaware), an asset-based fi­
nancial services subsidiary of MHC,
formed in July, 1979.
“ We believe that our commercial

Check Truncation Could
Save Banks $1 Billion
The formation of a national check
truncation system could save the
banking industry at least $1 billion
by putting an end to the 80-year-old
practice of returning checks to cus­
tomers, the cashier of the nation’s
seventh largest bank said in Dallas
last month.
Speaking to members of the Bank
Marketing Association, Joseph P.
Coriaci, senior vice president and
cashier of Continental Bank of
Chicago, said the $1 billion cost sav­
ings estimate was a “ conservative”
“ We are clearly dealing with a pro­
duct whose time has arrived,” Mr.
Coriaci said about truncation. “ We
aren’t sure what the final form will be,
but we do know that if interest, com­
mitment, and a willingness to partici­
pate mean anything, a positive
system, beneficial to our customers
and ourselves, is going to evolve,” he
Truncation, the non-return by
banks and other financial institutions
of checks or other check-like instru­
ments, is currently practiced by more
than 22,000 credit unions nationally.
More than 25 banks in the U.S. also
are practicing some form of trunca­
tion with their own checks, just as the
federal government has with checks
drawn on the Treasury.
Since the in troduction of share
drafts, the check-like product
handled by credit unions, the number
of non-return items has grown to 20
million per month. Mr. Coriaci said
the spread of “ N O W ” accounts,
another check-like product on which
interest is paid, will practically
necessitate a non-return policy to
help banks offset the added cost of
paying interest.
Mr. Coriaci, head of the American
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

financing activities provide the
greatest opportunities for expansion
now,” said S. Arnold Hickox, presi­
dent of M H CC, the fifth largest
factor in theU.S. “ Our Chicago office
will afford us added flexibility, in­
crease our com petitive advantage
and enable us to offer better service to
our clients.”
The new Chicago office, located at
100 S. Wacker Drive, is headed by
Richard N. L ovett J r., vice
Bankers Association task force com­
mittee studying the non-return of
checks, said the group has developed
a check truncation pilot program
tentatively scheduled to begin April
1. The pilot program, expected to run
about 18 months, will focus on cor­
porate dividend checks that will be
handled by about 40-50 check-pro­
cessing banks. Also participating will
be about 40-50 corporations that will
issue the checks.

Bank of China Sells First
Chicago Visa Cheques
The Bank of China has agreed to
sell First Chicago VISA Travelers
Cheques, according to Richard C.
Gallagher, president of First Chicago
Cheque Corporation, who said the
cheques will be cashable at Bank of
China branches throughout the
country as well as at the bank’s ex-

change centers in hotels, airports,
train stations, guesthouses and
friendship stores in all major cities.
VISA Travelers Cheques that are
sold by the Bank of China will carry
the name of First Chicago in the
upper left-hand corner. They will,
therefore, have the same acceptabil­
ity as any other First Chicago VISA
Travelers Cheque and will clear
through normal U.S. check clearing
system s, Mr. Gallagher said. He
noted that First Chicago Cheque
Corporation, as issuer and obliger,
bears the liability for any lost or
stolen cheques.

FDIC Names Thompson
The board of directors of the Fed­
eral Deposit Insurance Corporation
has announced the selection of Quin­
ton Thom pson as director o f the
F D IC ’ s D ivision of Bank Super­
vision. He succeeds John J. Early,
who is retiring.
Mr. Thompson’s appointment is
effective May 12, 1980. The board
named Robert V. Shumway, director
of the corporation’s Columbus, Ohio,
region, to serve as acting division
director until that date. Mr. Early,
who served as division director since
August, 1975, concludes a 31-year
career with the FDIC.
As DBS director, Mr. Thompson
assumes responsibility for the corp­
oration’s supervision of the nation’s
9,252 state-chartered banks which
are not members of the Federal Re­
serve System.

New Computer to Aid Correspondents
NEW IBM 3032 c o m p u t e r equal in power to all other ma­
chines in the bank—has been in­
stalled by the American National
Bank & Trust Company, Chicago.
With the new unit, which will be a
bridge to still larger computers in the
future, more program capability will
be handled by fewer central process­
ing units. There now are four com­
puters at work. With the 3032, there
will be needed only three and event­
ually there will be but two —with far
more job capacity than the existing
Currently, the bank’s computers
are running full time—24 hours every
day of the week—with some 8,000
separate programs servicing all bank
work: check processing, credit card
accounts, instalment and commercial
loans, American National Educat­
ional Corporation (educational loan


servicing subsidiary), and all finan­
cial reports.
Adding exponentially to the great­
er computer strength are two new
laser printers which went on line in
late 1979. The new lasers will increase
printing speed from 1,500 to 10,000
lines per minute! T h a t’ s a p p ro x i­
mately 40 pages of double-spaced
Laser printing will provide clean,
clear type on 8V2XII pages, replacing
the cumbersome, wallpaper-size rolls
of computer printout sheets.
This output will make m eeting
deadlines far more precise, particu­
larly benefitting correspondent bank
business and m aterially enlarging
service capability for such customers.
To optimize the efficient use of
these electronic additions, the bank’s
upper floor underwent m ajor re­


NOW Accounts ★ Pricing ★ Employee Training ★ Profitability
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H o n o ra b le J a k e G a rn , United States Senator
N. W . “ R e d ” P o p e , BMA President
A le x N e a le , Washington Consultant
Bob H e c k m a n , President, Combined Resources, Inc., Dallas, Texas
Dr. Bill S troud, Bank Employee Training Specialist
J a c k H o llo w a y , Director of Marketing, The DeKalb Bank, DeKalb, Illinois
B o b b y R ic h a rd s o n , former New York Yankee great


Cross S ection of N a tio n ’s BANKERS
O th e r s p e c ia l guests
A n d a ll th e fun of DISNEY WORLD


financial institution services inc.»
Federal Reserve Bank of St. Louis


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banks urged to attend
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B of A Initiates Pilot ATM Program
ANK of America, San Francisco,
recently initiated a pilot auto­
mated teller machine program which
could lead to one of the largest bankowned ATM networks in the world.
John M. Mickel, executive vice
president in charge of the bank’s
electronic banking services division,
said the bank initially placed 28
ATMs at 23 branches in Santa Clara
County. Installation of the units be­
gan this past summer, and they were
expected to be put into operation in
Customers will be able to use most
of the ATMs for 18 hours a day, seven
days a week. They will be installed in
the exterior walls and drive-up facil­
ities of branches. Two branches will
have ATMs that will not be accessible
after office hours, because the units
will be located inside the branch

George C. Strohl, senior vice presi­
dent in charge of the bank’s retail
marketing, systems and product de­
velopment, and responsible for the
ATM program, announced that the
ATMs for Santa Clara are being pro­
duced by Diebold, Incorporated, of
Canton, Ohio, and are named “ Versatellers.”
Mr. Strohl said the ATM pilot pro­
gram is one of the first steps in the
bank’s long-term program to simplify
branch procedures and to expand
banking services offered to the public
through an on -goin g, expanding
Money Convenience System of com­
puter-assisted services.
Mr. Mickel said that as a tie-in to
the new Versatel service, focus will be
placed in the near future on Electron­
ic Funds Transfer-related services.

Credit Life Tax Ruling

ruling also officially declares that the
certificates represent real estate
assets, which Mr. Ross said was a
critical distinction for some thrift in­
stitutions whose tax treatment is
based on their holdings.


A national bank cannot be taxed on
credit life insurance com m issions
paid by the borrowers to the bank’s
president who sold the insurance, the
U.S. Court of Appeals for the Sixth
Circuit has ruled. Receipt of the com­
missions by the bank would have
been illegal, and reallocation of the
commissions to the bank would not
be allowed under Internal Revenue
Code Section 482, the court said. The
court does not consider whether
banks could be licensed as insurance
agents under state law.

Favorable Tax Ruling
For Maggie Mae
MGIC Investment Corporation,
Milwaukee, announced recently the
receipt o f an Internal Revenue
Service ruling that enhances the
attractiveness of its M aggie Mae
mortgage pass-through certificates
for investors.
William B. Ross, senior vice presi­
dent of mortgage securities, said the
ruling classified the securities pack­
aged by the MGIC Mortgage Mar­
keting Corporation, or Maggie Mae,
subsidiary as a trust administered for
the benefit of investors rather than as
an association taxable as an inde­
pendent business before p a ss­
through of principal and interest to
The IRS ruling removes any doubt
about the tax status of Maggie Mae’s
transactions, Mr. R oss said. The

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Report 22,000 Hail
Claims in 1979
All officers and two directors of
Farmers Mutual Hail Insurance
Company of Iowa
were re-elected
last month at the
com p a n y’ s 87th
annual m eeting
in D es
D irectors re­
elected are Fost­
er Rutledge and
Ray S. Olson.
Mr. Olson was
recently appointed to the board to fill
the term of James Streepy who has
O fficers re-elected are A lbert
R utledge, president; D onald D.
B ockelm an, D avid Rutledge and
F oster Rutledge, vice president;
Perry Rutledge, vice president and
secretary; Dale Den Hartog, treasur­
er; Ray S. Olson, assistant secretary,
and Albert Carter, assistant treasur­
President Rutledge reported that
over 22,000 claims were paid totaling
an all-time high of more than $23

million to farmers in the nine midwestern states in which the company
writes crop hail protection. Net prem­
ium written exceeded $38.3 million
with $1.397 billion of crop hail insur­
ance coverage in force.
Nebraska and Iowa suffered the
greatest losses but satisfactory ex­
perience in other states and the rein­
surance and poultry departments was
sufficient to offset the heavy hail
damage in these states.

No Growth in GNP
In 1980, the real gross national
product in the U.S. will drop a mere
0.1% and the consumer price index
will rise 11.4%, according to three
economists at the Federal Reserve
Bank of Minneapolis.
The economists, Preston J. Miller,
Thomas M. Supel and Thomas H.
Turner, also predict that civilian em­
ployment will change little over the
year, although unemployment will
increase due to an expanding work
force. Hourly wages, they forecast,
will rise by a large 10%.
The forecast for essentially no
growth in real GNP leads some people
to call for tax cuts or other policies to
stimulate the economy. This would
be a m istake in our inflationary
environm ent, says Mr. M iller.
“ While economists disagree about
how a tax cut affects output, they
generally agree that it would make
our inflationary problem s even

ABA Studies Challenge
Of Money Market Funds
The membership of a banker strike
force charged with tackling the un­
precedented competition of money
market mutual funds was announced
recently by the American Bankers
ABA President C. C. Hope Jr. said
the strike force, which he appointed
at the suggestion of the association’s
government relations council, will
engage in an “ intensive evaluation of
the alternatives and options available
to the banking community for meet­
ing the money market funds’ new
competitive challenge. ’ ’
“ The money market funds have
grown by over $40 billion in the past
12 months, with a specific portion of
those funds being drawn out of com ­
munity and regional banks. They
now have over $50 billion in assets,
and the outlook is for them to grow
five-fold in the coming year.”

One more reason for you to
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BMA Convention to San Francisco

Guidebook to Help Meet
Community Credit Needs

ARKETING - Banking’s
IV I Bridge to the ’80s” will be
the theme for the
65th annual con­
vention of the
Bank Marketing
Associationplanned for Septem­
ber 14-17 at the
San F r a n c is c o
Key speakers
will include: C.
C. H ope, p resi­
dent of the American Bankers A sso­
ciation; John S. Reed, executive vice

Comptroller of the Currency John
G. Heimann has announced the pub­
lication of a “ Program Guidebook to
Help M eet Com m unity Credit
The guidebook, designed to assist
both bankers and bank examiners in
helping financial institutions meet
their local community credit needs,
as required by the Community Rein­
vestment Act, describes forty fed­
eral, state, and local government de­
velopment programs in which a bank
may participate directly.
Included in the guidebook are sev­
eral affirmative marketing programs
that may be used to actively promote
existing bank credit and services.
The guidebook also contains the
names, addresses, and telephone
numbers of key agency personnel to
contact for additional information.
Supplem entary materials will be
issued periodically to guidebook
This guidebook will be distributed
to all national banks, national bank
examiners, government officials and
community organizations through­
out the country.
For further information contact:
Michael B. Barton, Director, Com­
m unity D e v e lo p m e n t D iv is io n ,
Comptroller of the Currency, Wash­
ington, D.C. 20219.

Commerce Bank Will Raise
Rates on Mo. Bank Cards
In mid-February, Commerce Bank
of Kansas City issued a press release
stating that amid rising interest
rates, it remained the only card
issuing bank in Missouri to offer an
18% annual finance charge.
But Commerce Bank no longer will
buck the trend and will announce
shortly that its new interest rate on
Visa and Master Charge will go to
22% annually, the same rate that is
charged by two other large banks in
Kansas City. First National Bank of
Kansas City went to 22 % January 1,
following United Missouri Bank of
Kansas City, which posted the 22%
charge on December 1, 1979.
The three banks have issued
thousands of cards to customers re­
siding in Kansas, which requires a
six-month notification of any change
in rate. First N ational’ s rate in
Kansas will remain at 18 % until June
1 and U nited M issou ri’ s higher
charge in Kansas will become effect­
ive May 1.

MGIC Forms Mortgage
Securities Unit
To expand its role in the growing
mortgage-related securities sector,
MGIC Investment Corporation, Mil­
waukee, has formed a new subsidi­
ary, MGIC Mortgage Securities Cor­
Max H. Karl, chairman, said the
move will extend the secondary mort­
gage m arketing activities of the
MGIC organization to include mort­
gage-related securities as well as
mortgages and participations. Dur­
ing the past year, MGIC worked with

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

president, C iticorp, New Y ork;
Kenneth A. Randall, president, The
Conference Board, New York, and
former chairman of the FDIC; Roger
D. Blackwell, professor of marketing,
Ohio State U niversity; W illiam
Safire, New York Times, and five
editors from Newsweek magazine.
Reservation forms for hotels have
been mailed to members, together
with other pertinent information on
the 1980 convention.
Norwood W. Pope, vice president
of m arketing for Sun Banks,
Orlando, and current BMA presi­
dent, will preside at the convention.
mortgage securities issuers to pump
over $4 billion into local housing mar­
“ Our objective,” Mr. Karl said, “ is
to help our customers share in all
facets o f the trem endous grow th
potential in the new, emerging field of
mortgage securities.” He said the
company, which will become a reg­
istered broker/dealer, is applying for
membership in the National Associ­
ation of Securities Dealers.
MGIC has been active in providing
unique insurance coverages for mort­
gage-related securities since insuring
the landmark Bank of America con­
ventional pass-through which was
issued publicly in September, 1977.

Report on B of A Progress


ankAm erica Corporation has
just concluded “ one of the most
successful decades” of its 75-year
history, President A. W. Clausen
Mr. Clausen noted that a key factor
in BankAmerica’s progress has been
its policy of planning and controlling
expansion and growth, rather than
allowing it to proceed unrestrained.
T hough B ank A m erica’ s assets
have quadrupled since 1969, he said,
“ we derive much greater satisfaction
from the fact that our earnings have
also grown approximately four-fold
in the past decade. In other words, we
have met one of our most important
objectives: to grow profitably.”
To emphasize the importance of
managed growth—a policy the corp­
oration announced in 1974 — Mr.
Clausen explained: “ In banking,
billions of dollars can be added to
balance sheets with a few telephone
calls. But, while egos may be reward-

ed by size, shareholders are rewarded
by earnings and dividends, which are
a good deal harder to come b y .”
Return on Assets
He said that 1979 marked the fifth
consecutive year in which the com­
pany has improved its return on aver­
age total assets and the sixth straight
year in which return on average
equity capital has exceeded 15%.
Results for the year also extended
to 17 the number of years in which
earnings have reached higher levels,
and to 52 the string of quarters in
which profits have improved on a
year-to-year basis.
The performance of domestic oper­
ations as a whole was again favorable
in 1979 and provided the biggest
share of BankAmerica’s total income
before securities transactions —62 %
(versus 38% from international
operations). For the year, domestic
results were up 11.3%.

offers a wide range of term, premium
and payment options to meet any
combination of business and personal
salaries inthe$22,000-$29,500 range; needs.
up 8.4% over 1979.
To the lender, it offers ease of ad­
making for the pro­
• Senior programmers at mediumsize installations are being paid gram’s easy integration into the loan
process of any institution.
$19,000-$23,000; a 3.7% gain.
Among the main options of the new
• Systems analysts at small installa­ program are single or joint life and
tions will find salaries in the $19,000- level or decreasing term insurance for
$23,500 range; up 10.4%.
up to $100,000 with disability cover­
• Salaries for computer operators at ages. A com panion p olicy called
large installations are in the $12,500- Super Term has also been introduced
$15,000 range; a 10% increase over for coverages exceeding that amount.
This highly individualized insur­
last year.
ance package will be another North
• Data processing managers at small Central Life exclusive, offered
installations can anticipate starting through banks and lending institu­
salaries ranging from $22,000 to tions authorized to represent the
$29,000; a gain of 8.5% .
company’s credit-related lines to its
• Large installations are offering pro­ customers.
Marking the on-going expansion,
grammers, with up to one year of
experience, $14,500 - $17,500; up Mr. Ramaley added, will be the com­
pany’s forthcoming move to its 2710.3%.
story national headquarters building
Mr. Half pointed out that these
in the new Town Square complex in
figures are national averages and that
St. Paul, now scheduled for July of
geographic variances should be
this year.
applied to all financial and data pro­
cessing starting salaries of $50,000 or
less. He also said that 1980 starting Continental to Acquire
salaries for all the positions in the Commercial Finance Firm
R obert H alf study average 12%
Continental Illinois Corporation
higher in Hawaii and 18% higher in and The Foothill Group, Inc., a Los
Angeles-based commercial finance
And, Mr. Half said, if a position firm, have reached an agreement in
paying up to $50,000 is located in a principle for the acquisition of Foot­
city with a population of one million hill by Continental for consideration
or more, an additional 5% should be of approximately $50 million.
added to the prevailing starting
The joint announcement was made
by Roger E. Anderson, chairman of
the board of Continental, and Don L.
Gevirtz, chairman of the board, and
John F. Nickoll, president, of Foot­
Announce New Policy For
Farm /Business Owners
Both parties said that completion
An insurance program geared to of the acquisition depends on the suc­
the credit needs of farm and small cessful negotiation of definitive
business owners
agreem ents and is su bject to
has been an­
approval by the boards of directors of
nounced by the
both com panies, F ooth ill’ s s to ck ­
N o rth C en tra l
holders, the Federal Reserve Board,
Insurance Com­
and other government agencies.
pany of St. Paul,
A ccord in g to the agreem ent in
a c c o r d i n g to
principle, Continental would acquire
Robert D. Ramathe business, property, and assets of
ley, senior vice
Foothill through a merger of Foothill
president, m ar­
and a newly-formed Continental sub­
keting services.
Cal l e d the
Continental has assets of $34.2
Farmers’ and Businessmen’s Insur­ billion and more than 100 offices
ance, the program is designed to pro­ throughout the world. Foothill’s as­
tect the family and personal assets of sets are $121.5 million. It has offices
a small business owner operating or in Los Angeles, Orange County, San
expanding on credit.
F rancisco, H ouston, Dallas and
To the policyholder, the program Denver.

Robert Half Survey Shows Salaries Up 4.9%
C^TARTING salaries this year for
financial executives, accountants
and data processing personnel are at
record levels, according to a study
released by Robert Half, Inc., the
world’s largest financial and data
processing employment specialists.
The stu dy, con du cted annually
since 1950, is based on an analysis of
the thousands of position requests
the 65 Robert Half, Inc. U.S. offices
receive from employers throughout
the nation. (There are also five Robert
Half offices in Canada and Great
In releasing the 1980 study, the
orga n iza tion ’ s president, R obert
Half, noted that financial starting
salaries are up an average of 4.9%
over last year, with an 8.1 % increase
recorded for data processing posi­
tions. In the financial area, the study
covers: ch ief financial officers,
treasurers, controllers, tax manag­
ers, public and internal (m anage­
ment) accou n tan ts, financial ana­
lysts, credit and banking executives
and full-charge bookkeepers.
Here are some highlights from the
1980 Robert Half Study of Financial
and D ata P rocessing Prevailing
Starting Salaries:
• The starting-salary range for chief
financial officers at companies with a
$50-$250 million volume is $47,000$78,000; a 1.6% gain over 1979.
• Public accountants, with between
one and three years of experience, are
being offered salaries in the $17,000$20,000 range by large CPA firms; up
8.8% over last year.
• Starting salaries for senior internal
accountants at medium-size firms are
in the $19,500-$25,000 range; a 6.0 %
• The salary range for corporate con­
trollers joining firms with a volume of
$750 m illion or more is $92,000$126 ,000; a gain of 1.4%.
• Large banks are offering trust offi­
cers starting salaries o f $24,500$36,000; 4.7% more than last year.
• Large firms are paying senior finnancial analysts $21,000-$29,000; a
4.2% increase.
Data Processing
• Operations managers at large in­
stallations can expect to find starting
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

The W illiam M ason D ecoy.
Handcrafted in 1915 with the ultimate in
skill, patience and care. Reflections o f nature in
color and detail. Masterpieces by necessity.
From C olom bia to the Chesapeake, the standard
for weekend sportsmen, craftsmen, collectors.
Then, and now .
Since 1915, dedicated craftsmen. People
w h o demand o f themselves the ultimate in skill,
patience, perform ance. The result: quality

financial products and services. Functional tools
that meet your needs and satisfy your
expectations. By necessity.
Then, and n o w —the standard.
You see, others m ay try to imitate, but there’s
only one Deluxe.


Federal Reserve Bank of St. Louis


Planning for a PLAN
FIRA, ETC’s . . . where does it all end for your
Sorry tc say, it doesn’t end. It’s just beginning: The
beginning of more regulation, more competition, more
challenges, and a very definite need for more planning.
The banking industry is faced with a whole new set of
guidelines that bankers of years ago would not believe.
With these new guidelines, brought on primarily by
changing regulations and consumer demand, come a
whole new set of questions to be addressed by bank
How do you improve your service delivery?
How do you improve your products?
How do you segment your market to be more efficient
and profitable?
How do you motivate your staff to be more effective in
cross selling and financial counseling?
These questions, and more, must be answered if your
bank is to stay ahead of the game.


Senior Vice President
Financial Shares Corp.
Chicago, 111.

□ THE AUTHOR is a former banker w ith 17 years’ experience as
associate director of the W isconsin Bankers Association prior to
joining Financial Shares in 1978 as senior vice president in charge
of the marketing consulting division. At WBA he was responsible
for development and implem entation of programs in EFT, com­
m unity economic development, bank management, staff training
and corporate and marketing planning. He has authored books on
bank policies for loans, investments and bank security. Mr.
Benzer sp e n t six years as vice p re s id e n t o f m a rk e tin g ,
correspondent and retail banking for A ffiliated Bank of Madison,
Wis. From 1961 -68 he was an operations and lending officer with
Dubuque Bank & Trust Co., Dubuque, la.
Federal Reserve Bank of St. Louis

Commitment to Planning
The answer is planning. Everyone talks about it, but
too few bankers do anything about it. Let’s take a look at
planning from a very logical point of view. First, man­
agement must commit to planning—not just give it lip
service but total commitment and follow-through.
One of the biggest problems most bankers face is allo­
cation of time. More typically, everything addressed is
Northwestern Banker, April, 1960

done at once because it has a “ right now” effect. There
isn’t enough time in a given day to look beyond one day
at a time. The only range generally is short range.
Annual budgeting (profit planning) —a must—basically
gives a bank the short range look into the future . . . one
year at a time. With everything happening in the bank­
ing industry regarding regulations and increased com­
petition from all sides, a one-year-at-a-time look into the
future is shortsighted—and is catching bankers shorthanded.
Some bankers, however, are realizing that longer
range planning is becoming more vital to their day to
day planning. They are putting together long range
plans 5 ,7 , even 9, years into the future. Some of these
plans look pretty good —in theory. But are they
practical? There is nothing more time-wasting than
preparing a highly sophisticated plan that sits on the
CEO’s or marketing officer’s desk and collects dust
because it may not be practical or dovetail well with
today’s needs.
About now you’re saying to yourself, “ This all may be
true, but what do you suggest?”
Each bank is unique. The direction for developing a
plan is set by the bank’s goals and objectives. These are
established by top management and are communicated
throughout the organization so that everyone under­
stands them. Each person must recognize his responsi­
bility for support and participation.
In planning, the bank’s goal should be set forth in
quantitative terms, so that progress can be measured.
Organizing for Planning
The way to organize for planning depends primarily
on your bank’s size and capabilities. In large banks,
responsibility for planning often is shared among several
persons, usually the division or department heads and
finance and marketing officers. In smaller banks the
planning function may be performed by the president
and one or two other top managers. In either case, one
person should be in charge of coordinating and integrat­
ing all inputs to the plan.
The personnel selected as members of the planning
committee should be given portions of the task as they
relate to short, intermediate and long range needs of the
bank. For example, responsibilities should be broken
down as follows:
1. Economic conditions in your market—past, present,
and future.
2. Overall grow th and profit o f your bank —past,
present, and projected.
3. Banking legislation and regulation—their effect on
your bank, past and present, and their effect in the
future, in terms of your goals and objectives?
4. Overall growth and profit of other commercial banks
in your market as well as of other financial institu­
tions—past, present, and projected.
5. How has your market changed in terms of business,
industry, and consumer needs—past, present, and
6. Examination of your human resources and of the
various stages of development in which they are now
or should be in the future.
Each person assigned to planning should agree on a
due date for completion of the action for which he is
responsible. The entire process should not be kept a
secret; with full understanding, everyone can provide
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Establish bank’s mission, scope & goals
Organize for Planning
Examine current situation
Set specific marketing objectives
Select best strategies
Establish specific programs
Complete w ritten plan
Communicate plan
Establish control system
Copy-right 1979 FSC

necessary input to the plan. In other words, everyone
should be kept informed of what’s going on and of the
progress being made on all fronts.
After all of the basic data are collected, the planning
committee should evaluate the following:
Diagnosis: Where is the bank now, and why?
Prognosis: Where is the bank headed?
Objectives: Where should the bank be headed?
Strategy: What is the best way to get there?
Tactics: What action should be taken?
Control: What are the measurements of success?
Putting Plan in Action
Once you have agreed upon the m ost logical,
profitable, and positive path, your basic plan is off and
running. This basic approach should tie together your
short, intermediate, and long range goals and objectives
in a manner that provides sound management decisions
with enough flexibility to adjust for unseen changes in
the future.
All of this should be documented in writing with at
least an annual review for necessary update. It’s not
difficult to accomplish, once started. With this written
plan, you can realize significant successes in dealing
with the future. It will improve your bank’s overall
operation in terms of providing:
1. Efficient allocation of personnel and financial re­
(Turn to page 46, please)


Speaking to Iowa agricultural bankers . . .

How to cope with these changing times

done in the past. The funds we rely on is our raw product
and we’re going to have to pay market price for them.
We used to be 6% banks, then we got to be 9% banks
and now we’re money market banks.
Fidelity Brenton Bank & Tr.
Marshalltown, Iowa

ECHNOLOGY is changing at an exponential rate.
There’s an old French riddle that’s used to teach ex­
ponential growth: If you threw a lily out on a pond and
the lily doubled in size every day, and on the 30th day the
lily totally covered the pond, on which day was the pond
half covered? The answer is the 29th day. That’s expon­
ential growth. In the last 80 years we have acquired more
technology, more knowledge in this country, than in all
the previous time in history. That’s exponential growth.
If we don’t recognize the change in technology and the
higher volatilities in everything we do in our business,
then we don’t understand the world today and are very
apt to turn up with an inability to cope.
In a recent panel discussion I attended with about 10
farmers regarding the future of agriculture in the next
decade, they identified the following concerns: inflation,
capital needs, the ability of local merchants and agri­
business to keep up with the needs of the farmers and
their inputs, young farmer financing, energy, trans­
portation, loss of Grade A land to alternate uses (and all
the conservation elements therein), consumerism and
the export markets.



Inflation and Capital
From 1950 to 1970 the average annual inflation rate in
this country was 2Vi%. From 1970 to 1980 it was
5-6V2 %. The journals I read are predicting an 8V2 -10 %
inflation rate during this decade. Currently that is at a
15-20% pace. If we’re going to have an 8V2 % inflation
rate—the low side—in this decade, think how that will
affect our future.
The capital needs of agriculture, your farm customer,
are going to continue to increase at a 15% annual rate.
That means they will double about every five years.
Getting those customers back within your loan limits is
probably not in the cards. If you put an 8V2 % inflation
rate together with a 15% annual increase in capital
needs, what you get is the financial needs of our farm
customers in the future.
This society is presently oriented so that we savers are
not going to continue to subsidize borrowers, as has been
Federal Reserve Bank of St. Louis

Farm Profitability Law
Another concern of farmers is profitability. The
average return on investments in manufacturing in 1978
in this country was 14.1 %; in the petroleum industry it
was 13.8%; in the textile industry, 7.8% ; in our
industry about 12% and in the farming industry it was
2.1% . The day will soon pass when farmers’ increasing
equity will be able to support increasing capital needs. I
project a narrowing of current ratios and an increasing
net worth ratio—in other words, an increasing risk in
agriculture; therefore, profitability becomes even that
more important.
W e’re in a technological age. The communications
area of banking is going to increase. The Fed now has a
pilot project in wire clearings of all items of $250,000 or
more—truncation or removal of the flow. If that works
for $250,000 items, then it will go to $100,000, then
$50,000, then all items will be cleared by wire, and then,
truncation will become a fact. Remote terminal usage
will continue to increase. Those in the terminal business
have found their activity increasing 25% annually on a
compounded rate.
Regarding data generation, storage and retrieval, I
can foresee the farmer-customer being able to sit down at
home and with his telephone or a CRT tube access his
bank accounts —get inform ation, m onitor his cash
balances and line of credit and move funds by wire.
Corporate customers in the Chicago area are now able to
do that through correspondent banks.
Outflanked by Competitors
I believe we bankers will continue to be outflanked by
our competitors, the savings and loans and the credit
unions. Look at AT&T and how they’ve been outflanked
by those companies who have developed ancillary equip­
ment. Some of you probably have a different system now
other than AT&T or Northwestern Bell that you own or
lease. The new kid on the block has outflanked the
traditional type of enterprise. Look at what Visa did to
the banking industry with its credit cards at J.C.
Penney, Wards and Sears. They cut out the middle man.
However, I still believe there is an increasingly
important place for the so-called personal banker. Tech­
nology, machines, lines and communications are not
going to replace the expertise that’s available to our
customers in the personal banker. Through an advisory
relationship to the benefit of the customer, we will be
able to strengthen our hold in this competitive society.
(Turn to page 38, please)
Northwestern Banker, April, 1980

OFFICERS of the Independent Bankers Association of America
for 1980-81 are, from left: Pres.—Thomas F. Bolger, pres.,
McHenry State Bank, McHenry, III.; 1st Vice Pres.—W. C.
Bennett, c.e.o., Arthur State Bank, Union, S.C.; 2nd Vice Pres.—
Robert L. McCormick Jr., pres., Stillwater Nat’l. B&T, Stillwater,
Okla., and Treas. — Robert H. Fearon Jr., pres., Oneida Valley
Nat’l. Bank, Oneida, N.Y. RIGHT— Convention Speaker William
Isaac (right), FDIC director, discusses a point after his speech
with Dwight Bonham (center), Wyoming state examiner & chmn.
of Conf. of State Bank Supervisors, and two unidentified bankers.



IBA A Asks for Rate Equality
Thomas F. Bolger Elected 1980-81 President in San Francisco

HILE 2,500 registrants at the
Independent Bankers Associ­
ation of America 50th annual con­
vention were meeting in San Fran­
cisco early last month, The House
and Senate Conference Committee
was releasing details of their com­
promise on HR 4986. That conference
was to resolve differences that en-


compassed previous House action on
the Fed membership problem and
Senate action aimed at Reg Q revi­
sion. Newly elected IB A A officers are
pictured above and on the front
The IB AA leadership reviewed the
Conference Com m ittee action and
im m ediately drafted a resolution,

which was adopted unanimously by
the membership, and then telegraph­
ed to members of the House. That
resolution urged the House to reject
the conference report and send it back
to conference with instructions to
eliminate the rate differential as of
January 1, 1981. Basically, the Con­
ference Committee report gives thrift


At Illinois Bankers Assn, reception for the new IBAA president: Bill Hocter, IBA exec, v.p., Chicago, and his wife, June; IBAA Pres.
Thomas F. Bolger, pres., McHenry State, McHenry, and his wife, Kathryn; Arlene and Guy Weir, pres, of IBA and pres., Chicago City B&T,
Chicago. RIGHT—Coloradoans— Leon Winters, pres., Bank of the West, Parker; George T. Sweeney, chmn., Adams County Bank,
Northglenn; Sally Winters; Dennis Rhoades, pres., 1st Nat’l., Otis, and his wife, Peggy; C. E. Snow, pres., Arvada State, and his wife,
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Iowa Reception— In host line were (from left): Bob Ross, pres., City Nat’l., Shenandoah, & member IIB exec, council, and his wife,
Marjorie; Jean and Gerald Clause, pres., Home State, Jefferson, & v.p. of IIB. RIGHT— Don Heineking, pres., Security State, Hubbard,
and his wife, Marilyn; Jean and Herman Kilpper, pres., Bankers Trust, Des Moines; Diane Gibbs Berglund, IIB exec, secy., and Richard
Berglund, IIB exec. v.p. & genl. counsel, Des Moines. Mr. Heineking and Mr. Kilpper are IIB directors.

Nebraska Reception participants included Glenn Adair, exec. v.p. & cash., Springfield State; Clark Caley, pres, of Nebraska Indep.
Bankers and pres., Bank of Clarks; Jim Moylan, Omaha, exec. secy. & counsel of NIB: H. L. Bud Gerhart, pres., 1st Nat’l., Newman
Grove; Vince Rossiter, chmn., Bank of Hartington, and Bob Conrad, pres., Sidney Nat’l. RIGHT— Don Ostrand, v.p., 1st Nat’l., Omaha,
and his wife, Ginny, with Kathryn and Tom Bolger, pres., McHenry State, McHenry, III. Mr. Bolger is the newly-elected pres, of IBAA.

institutions more powers to make federal pre-emption of state law, and
loans and accept deposits, imposes interference with bank insurance
reserves on all banks whether Fed agencies operating in com pliance
members or not, provides for elimi­ with state law. One resolution sup­
nation of R eg Q over a six-year ported the increase from $100 to
period, and legalizes NOW accounts $200 (increase from $200 to $400 for
nationwide as of this year-end.
married couples) in exclusion of
The resolution said the bill should reportable income for interest and
be returned to conference, “ Since the dividends.
overridin g im portant issue of the
Another resolution endorsed the
termination of interest rate controls, concept of tax-free exchange of small
expanded asset and liability powers independent bank stock by exchang­
of the thrifts and the relationship ing that stock for any other type of
thereto to the continuation of the security acceptable to the seller.
differential has not been considered IB AA also called on Congress to look
by the House of Representatives in further at the Fed m em bership
this Congress . . . It is not in the problem, especially the cost to small
nation’s interest to foster a national banks of reserves being suggested.
p olicy o f discrim ination against One resolution endorsed HR 2747
banks (and their customers) lending which limits the growth and activity
to the consumer, agriculture, small of large bank holding companies and
business, and housing.”
eliminates arbitrary guidelines of the
Other IB A A resolutions opposed Fed for establishing and regulating
Federal Reserve Bank of St. Louis

small one-bank holding companies. A
second resolution favored legislation
which would force the Fed to relax its
guidelines limiting a bank stock loan
made by a one-bank holding company
to 75% of the purchase price and re­
quiring repayment of the loan within
12 years.
A resolution proposed from the
floor by Vince Rossiter, president of
the Bank of Hartington, Hartington,
Neb., was rejected by voice vote. It
asked IB AA to endorse in principle
the goals of the American Agriculture
Movement “ to become energy selfsufficient with the farm production of
fuel alcohol, and to achieve 100% of
parity farm p rice s.” O pponents
stated they did not feel IB AA should
become involved in allying with one
particular farm group, but should
work in concert with all of them.
Neither o f the two announced
Northwestern Banker, April, 1980

American Nat’l. B&T of St. Paul Reception hosts included (standing) Bob Jacobson and Don Johnson, v.p.s. Seated are Don Baertsch,
exec, v.p., and his wife, Donna; J. T. Hudson, pres., and his wife, Carolyn, all with Farmers & Merchants Bank, Beach, N.D. RIGHT— Milt
Klohn, pres., Town & Country Bank, Newport, M inn., and his wife, Dorothy; Renee and Jim Reagan, pres., Amer. Nat’l., St. Paul.

A Minnesota group—Sheldon Abrahamson, pres., 1st Nat’l., St. Peter; Lil and W. W. Studtmann, pres., Courtland State; Mary Ann and
R. M. Kramer, cash., State Bank of Lucan; Mary Alice and Edward Robasse, pres., Wabasso State. RIGHT— Bill Addington, v.p.,
Marquette Nat’l., Minneapolis, with Martin Chorzempa, pres., R ichfield B&T, Richfield, Minn.

speakers from the Federal Reserve
Board or the F D IC was able to
attend. FD IC Chairman Irvin g
Sprague and Fed Chairman Paul
Volcker were needed in Washington,
D.C., at conferences with President
Carter in the discussions which drew
up his later announced plan for fight­
ing inflation.
William M. Isaac, a director of
FDIC with Mr. Sprague and Comp­
troller John G. Heimann, echoed
sentiments of other federal officials
and speakers at the conven tion,
stating that banks will find them­
selves competing even more fiercely
with other thrift and non-financial
institutions in the future. He said
“ consolidation is inevitable,” and
predicted “ we will have fewer than
42,000 depository institutions by the
end of this century.”
Fed V ice Chairman Frederick
Schultz spoke in place of Chairman
Northwestern Banker. April, 1980
Federal Reserve Bank of St. Louis

Volcker. He termed the fight against
inflation as a high priority and
labeled the principal problem as being
one of credibility, rather than an

Alex Sheshunoff makes a point during his
p re s e n ta tio n on “ W h a t To Do If NOW
Accounts Happen.”

economic problem. While he was saying that, the market was dropping,
inflation crept up and the prime rate
was raised again. Mr. Schultz said
expectations are for two or three more
months of inflation in the current
high figures and then a diminishing of
A W hite H ouse representative,
Orin S. Kramer, associate director of
the domestic council, said the Presi­
dent was about to announce his pro­
posal for fighting inflation but could
not give specifics until it was released
by the President. He said the Admin­
istration is aware of the shift of $60
billion from banks to major money
centers through uncontrolled money
market funds, but offered no sug­
gestion that this situation would be
met with controls or should be. He
(Turn to page 106, please)






Pictures Taken at IBAA Convention in San Francisco

At Drovers Bank of Chicago reception: Emsley Chittenden, pres., Exchange State, Collins, la.; John Crotty, sr. v.p., Drovers Bank; Norris
Kuenzel, pres., Garnavillo Savings, Garnavillo, la.; Howard Logan, pres., First T&S, Moville, la., and Max Roy, v.p., Drovers Bank.
RIGHT— At First Banks of St. Joseph, Mo., reception: Benton O’Neal, exec, v.p., First Nat’l., St. Joseph; Ted Armbruster, pres.,
Nebraska State B&T, Broken Bow, Neb.; Bob Larson, pres., State Bank of Cairo, Neb.; Roger Hegarty, pres., First Nat’l., St. Joseph, and
Jim Chitwood, pres., Cambridge State, Cambridge, Neb.

v.p., Bank of Steele & pres., ICBND; Paul Pederson, pres., Page State; Gary Hanisch, pres., Farmers State, Crosby, and Gary Nelson,
v.p., Scandia American Bank, Stanley. Seated: Kay Hansen, Karen Wolf and Al Wolf, exec. secy. & genl. counsel, ICBND, Bismarck.
RIGHT—Al Collins (left), Los Angeles, and Jim Kueneke, St. Louis (right), explain Bank Building & Equipment services to Lawrence
Liebers (center), chmn., Crofton State, Crofton, Neb., and his wife, Margaret.

Hosts at Brandt Money Handling Systems display were Bob Coddington, retail spec., Sacramento; Bob Slavik, dist. mgr., Santa Clara,
and James Urban, fin. cons., San Francisco. RIGHT— Mel Sommers, reg. dir., Bloom ington, M inn., and Jerry Debner, asst, to pres.
Nashville, Tenn., hosted booth for Financial Institutions Services.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

W elcoming remarks were extended by Robert H. Dressel (left), v.p. & mgr., regional bkg. gp., and Richard A. Kirk, chm n., pres. & c.e.o.
RIGHT—Janice L. Campbell (left), comm. bkg. off. in the regional bkg. gp., introduced the morning speakers, including Candice W.
Rogers (right), v.p. & dir. of mktg.

At United Bank of Denver Conference—

Continued Growth Seen for 1980s,
With More Inflation, Less Profit
HERE was good news and bad
news given at the Correspondent
Bank Management Conference host­
ed last month by United Bank of
Denver. Guest speakers and UBD
President Richard A . Kirk outlined a
decade of continued growth, but one
accompanied by continued inflation
and government regulation so that
the 1980s will be, as Mr. Kirk stated,


“ costly, competitive and less profit­
More than 100 bank executives
attended the day long conference at
the Fairm ont H otel in dow ntow n
Denver. The group was welcomed by
Robert H. Dressel, vice president and

ABOVE— Participating in Businessm an’s Panel were, from left: Caswell Silver, chmn.,
Sundance Oil Co.; William J. Ash III, pres., Environmental Developers, Inc.; R. Garret
Mitchell, pres., Colorado Ski Country USA, and John H. Eyler, pres., May D & F. BELOW—
Taking part in the Legislative and Regulatory panel were, from left: Jane Dahlstrom-Quinn,
a.v.p., compliance dept.; Harold R. Smethills, v.p., corporate services, and Richard D.
Harrison, govt, relat. consultant.

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

manager of the bank’s regional bank­
ing group.
President’s View
Mr. Kirk, who is also chairman and
chief executive officer, said he feels
the coming decade “ will be an ex­
plosive, dynamic, evolutionary per­
iod for our country, our people and
our industry. Three things are certain
—growth, a changing work force, and
legislative/regulatory pressures. ’ ’
Mr. Kirk said he sees grow th
ahead, even with a recession in the
80s and inflation in excess of 10%,
and “ our region will grow faster than
the rest of the country. Our growth
has barely started, so we m ust
position ourselves to manage and
benefit from this growth. It will be
costly, competitive and less profit­
able. It will strain our return on
assets and our capital ratios.”
Mr. Kirk said United Bank, with
an asset growth computed at 12%,
will move from $1.5 billion in 1980 to
well over $4 billion by the end of the
decade and $14 billion by the
year 2000. “ That is one reason we
have announced and are committed
to having a building built for us to
assure adequate space. It is why we
are moving aggressively on technol­
ogy and delivery systems,” he con­
tinued. “ It is why we went to the
capital markets last year and con­
tinue to devote considerable energy
to capital planning. The growth will
be competitive and mandates that we
get a better handle on our costs.”
As part of this growth, Mr. Kirk
stated, “ We have been moving for­
ward on appropriate pricing in all
areas of the bank . . . we will have
NOW accounts and we will pay more
for our money . . . we will have Bank-

By-Phone at home before the decade
is over. We may have check trun­
cation. We will see far more electronic
banking . . . commercial deals are
going to be priced more thinly with
longer maturities.”

in the meantime a substantial
housing shortage is building up for
later demand. He predicts new devel­
opment of inner cities, resulting in
improved transportation systems for
mass transit.
Garry Mitchell, president of Colo­
rado Ski Country (U SA), pictured the
growth in Colorado skiing by com­
paring the 500,000 ski lift tickets sold
in 1962-63 to the 7,200,000 sold in
1978-79. In the former year there
were 50 ski lifts; in 1979 there were
191. Colorado tourism is a $1 billion
industry brought in by 7.8 million
visitors in 1973 and 9 million last
John H. Eyler, president of May
D&F, said retail department store in­
creases in 1979 were only at half the
rate of inflation, ‘ ‘which has put great
pressures on our earnings.” He de­
scribed the ‘ ‘game plan” being fol­
lowed by his company to meet the
demands of shoppers in the coming
Several staff members of United
Bank looked at future operations and
business opportunities that might be
expected in their departments.
Candice W. Rogers, vice president­
m arketing, looked at non-interest
income opportunities. These included
changing prices on existing services,
reinstating waived fees, and intro­
ducing new services. She reviewed a
seven-step program followed by UBD
when looking at charges on existing
services, the need for documenting
everything, and building in a periodic
review system. Reinstating waived
fees was represented by check service

charges being reintroduced.
Four officers of the host bank re­
viewed the Legislative and Regulat­
ory O utlook, coverin g com pliance
needs, cost of regulation, and a
bank’s role in the legislative process.
Robert H. Long, director of ad­
vanced studies for Bank Adminis­
tration Institute, was the luncheon
speaker. He pointed to the cultural
and social revolution begun in the
1970s that will continue in the 80s.
Part of this, he noted, is de-regulation
of the market place, but increased
regulation of those operating in the
market place—a case in point is the
50% increase in bank regulations in
the past five years.
Dr. Long feels that ‘ ‘some banks
will concentrate on being service pro­
viders, some will concentrate on
being service marketers and repre­
sentatives. Banks that remain will be
ones that have the best people, the
best systems. Define your markets
for the 80s. Identify and train people
you want to keep. Set adequate prices
for your services, and get the proper
equipment to do the jo b .” He con­
cluded by cautioning his audience,
‘‘ Don’t be a piano player in a march­
ing band!”
The concluding speaker was
Edward E. Furash, managing assoc­
iate of Golembe Associates, Inc.,
Washington, D.C., whose topic was
‘‘ Meeting the Goals of the Organi­
zation Through People.” After con­
cluding remarks by Mr. D ressel,
guests met informally with bank per­
sonnel at a brief reception before
returning home.

Correspondent Commitment
Mr. Kirk added that “ we at United
Bank continue to view correspondent
banking as one of our mutually great
opportunities, even more so in the
80s, and will dedicate our resources to
that activity. ” He said the bank must
“ rest on profitability, growth and
soundness and we will not single out
any one of these three at the cost of
Mr. Kiik noted that the work force
will be made up of younger people
whose life and educational experi­
ences have been shaped by different
events than for people now in man­
agement. The 80s will be the decade
of ‘ ‘ human resources, ” he feels and ‘ ‘ I
want our vice presidents, supervisors
and line personnel thinking ‘ human
resources,’ I want our people moti­
vated, turned-on, informed and en­
joying their jo b s.” To achieve maxi­
mum value and give maximum return
to employes, he proposed more train­
ing programs than ever before.
In the area of regulatory/legislat­
ive action, Mr. Kirk said the subject
has been covered so well ‘‘ it is hard for
me to shed any new inspirational
thoughts” but assured his audience
‘ ‘ It is a critical issue and the eighties
will see this continued blending, it
will impact our industry dramatic­
A panel of four Denver executives
gave ‘ ‘A Businessman’s Outlook of
the 1980s.” Caswell Silver, chairman
and president of Sundance Oil Com­
pany, said the government does not
understand risk-taking and ignores
profitability and its relationship to
further development. He said we will
never run out of oil and gas—it will
just keep costing more to find, ex­
tract and produce. ‘ ‘Barring disrupt­
ion of foreign supplies,” Mr. Silver
stated, ‘‘ I see adequate supplies of oil
throughout the 1980s. Oil increases
by OPEC are due principally to deter­
ioration of the U.S. dollar. In my
opinion, President Carter’s inflation
fighting program is inadequate.”
William J. Ash III, president of
E nvironm ental D evelopers, In c.,
pegged growth in Colorado as one of
the highest in the nation, citing hous­
ing starts as one proof. ‘ ‘Our industry NOON SPEAKER Robert H. Long, Bank Adm inistration Institute, is pictured with officers
of United Bank of Denver. From left to right (seated): Donald W. Robotham, exec, v.p.; Mr.
is in for a very difficult fight” in the Long, and Darcy Meyers, commercial bkg. off. (Standing): Don Sail, v.p. & mkt. mgr., and
months and years ahead, he said, but Bob Dressel, v.p.-m gr., reg. bkg. gp.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


W hat’s New
k__________ _________


RICING Financial Services, a bi­
m onthly newsletter exploring
new pricing concepts for the financial
industry, has been introduced by
Whittle, Raddon, Motley & Hanks,
Inc., a Chicago financial consulting
Featured in the first issue of Pric­
ing Financial Services is NOW
account pricing. The lead article re­
veals results of a recent custom
survey of 100 CEOs regarding their
attitudes on offering the NOW
account. The survey showed that
51 % of those interviewed have found
a formal advance plan difficult and
are taking a “ wait and see what the
industry d o e s ” attitude. Tw entyseven percent of all CEOs interviewed
do not even plan to offer the NOW.
Twenty percent reported that they do
have a plan ready to go. Seventyseven percent of all respondents said
they will consider the NOW account a
separate account (not convert all
checking) and 73 % plan to recoup the
additional costs of NOWs through
direct fees rather than increased loan
rates (12%).
The first (charter) issue will be sent
to the entire banking community in
the country, then will be sold on a
subscription basis for $50 annually.
For more information on Pricing
Financial Services, write or call
Barbara Baker, E ditor, W hittle,
Raddon, Motley & Hanks, Inc., 625
N. Michigan Ave., Chicago, Illinois
60611; (312) 266-8852.

and Design Teams. There profession­
als are available to work directly with
a financial institution or with that
orga n iza tion ’ s builders and arch i­


HE Mosler Safe Company has
published two new brochures,
covering Magna Vault Doors and
Mosler interiors.
The various doors are pictured and
their features and benefits discussed
in a six-page, four-color brochure.
They are available in 25, 20, 15, 10, 7
and 3^2 inch minimum thicknesses
and a variety of appearance options.
The brochure on interiors explains
Mosler’s modular concept for count­
ers and undercounter steel, and the
many benefits in time, cost, and ease
and economy in future expansion. It
also contains six pages show ing
Mosler’s undercounter steel, counter
systems, teller seating and buses,
and explaining the Mosler Project


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Free copies of the brochures are
available from The Mosler Safe Com­
pany, 1561 Grand Boulevard, Hamil­
ton, Ohio 45012.

HRISTM AS Club a Corporation,
of Easton, Pa., has launched a
newly-designed Vacation Club pack­
age for custom ers of full service
banks, savings banks, and savings
and loan associations.
Entitled “ AmericaThe Beautiful,”
the Christmas Club vacation club
program includes a wide variety of
promotional items and premium in­
centives to appeal to customers of
banks and savings institutions.
“ The program,” according to John
H. Guinan, president of Christmas
Club, “ is designed around a promot­
ional theme of “ Vacation Clubs Start
With A Capitol Idea.’ The promot­
ional and premium materials, which
display a beautiful four-color photo­
graph of the nation’s capitol building
as seen through cherry blossoms,
include checks and envelopes, an
application folder, passbooks or
coupon books, a statement enclosure,
and counter cards in two sizes. Prem­
ium incentives available are an
“ America The Beautiful” hot and
cold mug, a popcorn flyer, a wall tile
for hanging or displaying, and a
special Car Care Kit for readying the
family car for the vacation trip.”
Full information can be obtained
from any of the Christmas Club sales
representatives or by w riting or
calling Renee Brett at Christm as
Club, P.O. Box 20, Easton, Pa.,
(215) 258-6101.

Comptroller Again Hits
Reg Q Limitations
Comptroller of the Currency John
G. Heimann has called again for the ,
removal of deposit rate ceilings from
savings and time deposits and reject­
ed suggestions that deposit rate con­
trols be extended to money market *
mutual funds.
Testifying January 24 on the sub­
ject of money market mutual funds
before the Subcommittee on Finan­
cial Institutions of the Senate Com­
mittee on Banking, H ousing and
Urban Affairs, Mr. Heimann said,
“ The answer is not to remove the in­
vestor opportunity made available by
money market mutual funds by im­
posing rate ceilings restrictions on
them . . . Instead we should move
ahead with the deregulation of our
depository system.”
Money market instruments such as
negotiable certificates of deposit and
Treasury bills, he pointed out, pro­
vide yields to investors that are *
significantly higher than traditional
passbook accounts and other lowdenomination certificates of deposit,
most of which are subject to below market deposit rate ceilings.
The Comptroller warned that as
more individuals become aware of
MMFs, confusion may arise over the
distinction between investments in
MMF shares, and their attendant
risks, and insured deposits in com­
mercial banks or thrift institutions.
To remedy that potential situation,
he suggested that “ advertising by
the funds should clearly distinguish
the differences in yields and risks
between MMF shares and money
market certificates.” He added that
“ a greater effort should be made by
the mutual fund industry to ensure
that the investor is fully aware of the
difference between MMF shares and
The Com ptroller reiterated his
agency’s belief that financial institu­
tions which offer similar products and
services should be permitted to com­
pete on an equal footing in the marmeting of those products and serv­
ices. “ Elimination of the deposit rate
ceilings imposed under Regulation
Q ,” he noted, “ would enable small
banks, large banks and thrifts to
compete more effectively with money
market funds, Treasury bills, and
other market yielding instruments
and to hold on to their deposit bases. ’ ’


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530 North Water Street, Milwaukee, W I53201 (414) 272-3102
1717 Cargill Building, Minneapolis, MN 55402 (612) 339-2222
One Post Street, San Francisco, CA 94104 (415) 956-4373
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


How to Save 80,000 Gallons of Oil Per Year!
HE first building in downtown
M inneapolis to use a heatrecovery system for all its heating
needs, thereby saving an estimated
80,000 gallons of oil per year, has
passed a con struction m ilestone
with the installation of the recovery
system . The b u ild in g ’ s unusual
energy-saving walls also are nearing
The building is the Northwestern
Operations Center at Second A ve­
nue and Third Street. The $30 mil­
lion project is scheduled for com­
pletion in June, and will house 1,100
employes from the downtown offices
of Northwestern National Bank and
Northwest Computer Services, Inc.
“ E fficien t use of energy was
essential in the design of this build­
ing,’ ’ said John Greenman, senior
vice president of facilities manage­
ment for the bank. “ It is estimated


to use about 45,000 BTU s per
square foot per year, which is 11%
less than the Department of En­
ergy’s proposed Building Energy
Perform ance Standards for new
office buildings in Minneapolis,” he
said. “ By comparison, many older
buildings in downtown Minneapolis
use in excess of 100,000 BTUs per
square foot each year.
“ The heat-recovery system will
capture heat produced by data pro­
cessing and other electro-mechan­
ical equipment in the 550,000 square
foot b u ild in g ,’ ’ he continued.
“ Another key factor in the energy saving design of the building is that
three of the structure’s seven stories
are underground. Using the ground
as a natural form of insulation
dramatically reduces the need for
heating and cooling.
“ The recovery system itself will

SEEING DOUBLE—Three executives of Northwestern Nat’l. Bank of Minneapolis
“ reflect” on the new energy-saving “ curtain w all” which provides a m irror-like
exterior for the new Northwestern Operations Center in downtown Minneapolis.
They are, from right, Virgil M. Dissmeyer, exec, v.p., and E. Peter Gillette, pres.,
both w ith N.W. Nat’l., and Frank Powell, pres, of the subsidiary Northwest Com­
puter Services, Inc. Another construction project nearby is reflected in the back­
ground behind the executives’ images.

(Continued from page 29)
Consumerism and Politics
Consumerism will continue to impact our industry —
we will not have deregulation, we’ll have re-regulation. I
can see down the road people who are anti-banking being
represented on the Federal Reserve Board because it’s a
competitive body. We need to be prepared for this kind
of approach.
There are other consumer elements to consider. The
new bankruptcy law has probably upgraded your loan
policies, strengthened your security diciplines and your
loan performance monitoring. I see problems ahead with

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

cost nothing to operate,” he said.
“ The system is actually a sophisti­
cated heat pump that will utilize the
b u ild in g ’ s normal air supply
The building also was designed to
convert to solar energy as a back-up
heating system , Mr. Greenman
added. Additional heating may be
required when the data processing
equipment is not in service, or on
severely cold days when the recov­
ery system cannot meet demand.
“ Until solar becomes more cost
effective, however, any additional
heat that we need will be supplied by
the district steam heating network
from the dow ntow n M innegasco
Energy Center,” he said. This sys­
tem uses oil to produce steam.
The amount of heating energy
saved annually by the Operations
Center due to the recovery system is
equal to 8.86 billion BTUs, accord­
ing to Bob Michaud of the consult­
ing engineering firm of Michaud,
C ooley, H allberg, Erickson and
A ssocia tes, Inc. “ It would take
about 80,000 gallons of oil to gen­
erate the same amount of BTUs, ” he
said. “ This would be enough oil to
heat 75 homes of 1,200 square feet
each in the Twin City area during an
average heating season.”
The new building’s exterior sur­
face, which is also designed to be
highly energy efficient, was to be
finished in early March. Called a
“ curtain wall,” the surface consists
of double glass panels, dead air
spaces, and insulation.
The N orthw estern O perations
Center was designed by the archi­
tectural firm of Peterson, Clark &
Associates, Inc. The general con­
tractor is the M.A. Mortenson Co.
Both are M inneapolis firms.

loan pre-payment penalties, acceleration clauses, tax
exemption on interest and dividend reinvestment as
deferred income.
We are now seeing changing political allegiances and
are lined up more by issues than by party, and even more
by geography than by party. I see the continuation of
government programs —loan guarantees, for example,
as an indirect subsidy to the various segments of the
economy. W e’ll see further credit allocation experi­
ments, such as the credit card business.
I t ’ s very easy for governm ent to becom e the
adversary of agribusiness. There are very few agribusi­
nessmen and there are very few farmers, but there is
some righteousness about the farmer and people don’t



really attack him very often. We as agribusinessmen will
be the ones attacked by various governmental influences
and consumer groups. Because there are very few of us
they can zero in on us as the cause of the problem. In my
opinion we will become even more so the political
whipping boys of the 80s.
Erosion of Relationships
Our customers are having difficulty coping. The
transportation system for moving grain in Iowa is a
disaster. I feel that community bankers in Iowa will be a
part of the solution to that problem. I saw us being a part
of the solution in the problem of productivity in the meat
packing industry a decade ago when it moved out into
the rural communities. The lack of productivity is
mostly what is wrong with our transportation system.
There will continue to be an erosion of the uniqueness
of the relationship between agriculture and the
community bank. W e’ll be operating in a much less well
defined universe than we ever have before. Non-deposit­
ory institutions will get more banking functions and
there will be a deterioration of geographic boundaries.
This will be a serious threat to some bankers and a great
opportunity for others. Competition will intensify in
rural areas; not necessarily from competitive banks. The
imbalance between deposit growth and loan demand will
continue and banks will become net buyers of funds.
The market penetration of the Farm Credit System
will continue to increase at the expense of community
banks. That increase will come primarily from the
larger, most aggressive farm operators who are difficult
for many of our small banks to handle.
We Must Aid Customers
We really need to understand enterprise analysis and

help our farm customers increase their profitability
because retained profits are going to be the capital
builder of the future. W e’ve run the limit with increasing
equity as being the capital builder. There is a wide
variety of marketing options available today to the farm
customer which we need to understand and I am
convinced these could increase his income in the range of
15%. The people we’ve seen lately who have grown the
fastest aren’t necessarily making the most money.
I believe the average farmer is over-powered, has too
much equipment, by 15-20 % because he never (or rarely)
goes through a cost benefit study. I ’m not sure if we’re
supporting them in doing that. It’s awfully easy to
finance that equipment. But now, when we’re all short of
funds, we may be saying, “ If it still runs, drive it.”
We as community bankers must be committed—to
our community, our industry—to be in the financial
business of loaning money and taking care of the
legitimate needs of our customers at a fair profit margin.
Our expertise is still in the fringe areas. We need to be
involved in the continuing education process to help our
farm customers in their marketing strategies, in their
fixed asset acquisitions and enterprise analysis—all
with more expertise.
We need to make sure we have our product available.
We need to compete for the raw materials we need — fight
in the streets for the equality we need so that we can get
those raw products. There is a need to establish loan
participation arrangements with correspondent banks,
insurance com panies and the Farmers Home
You’ve heard all this before, but the race keeps getting
a little faster, the competition a little tougher. W e’re
being outflanked by more new competitors, so our
intensity must increase.

New Product from MG 1C
GIC Indemnity Corporation,
Milwaukee, has expanded its
line of specialized insurance products

for financial institutions to include
insurance for pension trust liability,
IR A /K eogh plan errors and omis­
sions, and mortgage interest. The
policies will be available through in­
surance agents.
Edward N orris, executive vice
president, made the announcement,
noting that the new products will
complement the protection of MGIC’s
directors’ and officers’ liability insur­
ance and trust department errors and
omissions insurance.
“ The development of these addi­
tional specialized insurance p ro ­
ducts,” Mr. Norris explains, “ is a
direct result of M G IC’s research to
identify and effectively respond to
the changing insurance needs of fi­
nancial institutions. We believe the
experience MGIC has gained from
nearly 25 years of w orking with
financial institutions gives the in­
sight to develop sound insurance
Federal Reserve Bank of St. Louis

Pension Trust Liability
M GIC’s pension trust liability in­
surance policy protects insureds from
claims for “ breach of fiduciary duty”
while acting as a trustee or fiduciary
of the institution’s own, “ in house”
em ploye p en sion /w elfare benefit
“ Breach of fiduciary duty” is gen­
erally defined as a violation of any re­
sponsibilities, obligations or duties
imposed on fiduciaries by ERISA or
any other common or statutory law.
This includes any act, error or
omission in the administration of any
plan or trust.

which offer Individual Retirement
A ccou n ts (IR A ) and K eogh Plan
A ccou n ts, Mr. Norris announced
that MGIC is also offering a new
IR A /K e o g h A ccou n t Errors and
Omissions policy.
A ccord in g to Mr. N orris, “ the
policy protects the institution, as well
as past, present and future directors,
officers and em ployes, from legal
liability incurred as administrators or
trustees for IRA or Keogh Plan A c­
counts.” The limit of liability avail­
able is $250,000.

Mortgagee Interest Insurance
Because a mortgagee’s interest in a
mortgaged property can be seriously
impaired if the property is damaged
and the homeowner defaults due to
Mr. Norris says coverage is avail­ lack or insufficiency of hazard insur­
able for the sponsor organization, the ance, Mr. Norris says MGIC design­
plan or trust itself and individual plan ed a Mortgagee Interest Insurance
fiduciaries, with limits of liability policy to cover this exposure.
ranging from $1 million up to $5
“ Our policy protects the lender if
the mortgagor fails to carry the re­
quired hazard insurance or if the
lender itself com m its an error or
IRA/Keogh Plan E&O Insurance
omission in its designated insurance
Responding to the increased liabil­ responsibilities and fails to place or
ity exposures of financial institutions maintain a mortgagor’s policy.”
Northwestern Banker, April, 1980


New Citicorp Travelers Checks
ITICORP is launching a major
program to attract a larger share
of the $31 billion
travelers check
business, it was
a n n o u n ce d by
Jeffrey P. Neubert, president of
C iticorp S erv­
ices, Inc.
A s a first step,
Mr. Neubert ex­
plained, Citicorp
has changed the
named o f its First N ational City
Travelers Checks to Citicorp Travel­
ers Checks.
According to Mr. Neubert, Citi­
corp will be backing its selling agents
with a $10 million plus advertising,
marketing, direct mail and public re­
lations program for Citicorp Travel­
ers Checks. “ We know this will be one
of the most aggressive promotion
campaigns in the travelers checks in­
dustry,” said Mr. Neubert.
Citicorp Travelers Checks are sold
in pre-packaged, sealed color-andsymbol-coded envelopes, known as
PAKs. The PAKs come in six denom­
inations: $10, $20, $50, $100, $500
and $1,000. Advantages of the PAK
to selling agents include:

system with Citibank branches in 64
countries and affiliated banks in more
than 150 countries. Citicorp Travel­
ers Checks are sold worldwide in over
34,000 locations and refunds on lost
or stolen travelers checks are avail­
able in more than 40,000 locations. In
the United States, over 23,000
locations sell Citicorp Travelers

• Reduced teller error because the
PAK eliminates the need to count and
assemble loose travelers checks.
• Faster customer service because
travelers check numbers and com­
missions are already recorded on the
order agreement. In addition, after
signing the order agreement, cus­
tomers can sign their travelers checks
away from the teller’s station.
• PAKs come in a broader denomi­
nation selection in multiples of $50
(including $500 and $1,000) than any
other travelers check.
Citicorp Travelers Checks are sup­
ported by Citicorp’s full service bank

HE Conference of State Bank
Supervisors will hold its 79th
annual conven tion at the M GM
Grand Hotel in Las Vegas, Nev.,
April 27-29. Substantive highlights
of the convention program will in­
• U.S. Senator Robert B. Mor­
gan’s Keynote Address—Monday,
April 28, 9:25-9:55 a.m.
• FD IC D irector W illiam M.
Isaac’s Address—Monday, April 28,
9:55-10:25 a.m.
• A panel discussion on the
McFadden A ct—Monday, April 28,
10:30 a.m .-12:00 noon.


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Group Studies Duties of
Chief Financial Officers
Members of a newly-created study
group to investigate the need for
structured p ro ­
grams for bank
c h ie f fin a n c ia l
officers were an­
nounced by the
American Bank­
ers Association.
A B A P re s i dent C. C. Hope
Jr., in announc­
ing the formation
o f the s tu d y
group, cited the demands placed on
banks and bank holding companies
“ for im proved corporate financial

management, budgeting and fiscal
control in a rapidly changing
economic environment.” He named
Donald C. Miller, vice chairman and
treasurer, Continental Illinois Na­
tional Bank and Trust Co., Chicago,
to head the CFO study group whose
first task was distribution of a quest­
ionnaire to survey over 1,000 bank ^
The A B A questionnaire is intended
to establish a current profile of chief
financial officers whose duties gener­
ally include corporate financial plan­
ning, budget, auditing, accounting,
financial performance evaluation and *
as set/liability management.
The study group is expected to
report its recommendations, based on
the findings of the survey, to ABA
this month.

ACH Payments Pass
15 Million Each Month
“ In its continuous effort to im­
prove the nation’s payments system,
the American Bankers Association
reaffirms its commitment to the National A utom ated Clearing H ouse
Association and to the overall ACH
ABA President C. C. Hope Jr. de­
livered this formal vote of confidence
in NACHA from ABA in an address
to the more than 500 delegates
attending the Fifth Annual NACHA
SurePay Conference in Phoenix.
At the end of 1979 the monthly
private sector volume had reached 3.5
million items, up 75% over 1978.
Almost 9,000 corporations are partic­
Currently over 15 million ACH
payments are made each month. In­
cluded are such payments as social
security, insurance premiums, utility
bills and mortgage payments.

CSBS to Las Vegas


• A ddress by Dr. Richard S.
Hodes, president-elect of the Nation­
al Conference of State Legislatures—
Tuesday, April 29, 9:05-9:35 a.m.
• CSBS President D w ight B o n ­
ham’s Address—Tuesday, April 29,
9:35-9:55 a.m.
• Trends in Interstate Banking
P anel—T u esd a y, A pril 29, 10:3011:30 a.m.
• Wyoming Governor Ed Herschler’s Address—Tuesday, April 29,
11:35 a.m .-12:00 noon.
• Banker/Regulator Rap Session
—Tuesday, April 29, 2:00-5:00 p.m.


At Dawson Hail Insurance it is not unusual for our
people to give that little extra bit of time or effort in
order to do a job right. It’s nice to know that in this
day of automation some things are still given that
good ole “ Personal Touch.” After all . . . that’s
exactly how we at Dawsons have been doing
business for 63 years.

Whether it’s issuing a policy, adjusting a
loss or paying a claim . . .

Our people make the difference!
We welcome Dennis and Norm to our staff.
Federal Reserve Bank of St. Louis


BOX 1820 FARGO, ND 58107

Northwestern Banker, April, 1980

H is b a n k e r h a s to b e there
in g o o d tim es an d b a d .
W hen credit is easy, a successful farmer
has lots of bankers knocking on his door.
But chances are he’ll stick w ith the banker
who stuck by him w hen money was tight.
It takes a banker w ith a lot of foresight
to build a relationship w ith someone in a
cyclical business like this.
And it helps if your correspondent
Federal Reserve Bank of St. Louis

bank has the same kind of foresight.
At American National, w eve never
backed away from correspondent business
when money got tight.
Because bad times can be the best times
to start a relationship with an aggressive
correspondent bank. Shake hands with
American National. T he bank for business.


Rockford Bank Names Two
Charles P. A . Frankenthal has
been elected vice president, and
Shirley L. Faerber has been elected
trust officer at the American National
Bank and Trust C o., Rockford, it was
announced by D avid W . Knapp,
Mr. Frankenthal joined the bank
as director of marketing in 1978 and

Joins Effingham Bank
Charles L. Mountz has joined the
First National Bank of Effingham as
executive vice
president and a
director. He was
w ell k n o w n
throughout Illin­
ois and eastern
Iowa in his prev­
ious position as
a s s is t a n t v ic e
president in the
corresp on d en t
_ .
bank division of
the First National Bank in St. Louis.
Mr. Mountz has an MBA degree
from the University of Missouri, St.
Louis, and is a graduate of Parks
College Cahokia with a BS degree in
aeronautical adm inistration. He
served seven years in the U.S. Navy
as a helicopter pilot and continues
active in the Naval Reserve as a Lt.

Top Management Changes
Told at Monmouth Bank
Merton H . Bowden recently retired
as president, chief executive officer
and a director of the Monmouth Trust
and Savings Bank after 40 years of
service. He will continue in an
advisory capacity for the 1980 year.
Succeeding Mr. Bowden as presi­
dent and trust officer is Mark D.
Pingrey. Mr. Pingrey was most re­
cently executive vice president and
trust officer at the Iowa State Sav­
ings Bank in Clinton, Iowa, where he
had been for the past two years. Mr.
Pingrey, who also held posts at banks
in Colorado, has a BS degree from
Wayne (Neb.) State College.
Other staff members were re-elect­
ed to their positions at the bank’s
annual meeting in January.

Retires at Oak Park Bank
RaymondT. O’Keefe has retired as
chairman of the executive committee
Federal Reserve Bank of St. Louis

of the First Bank of Oak Park. A
prominent Chicago area businessman
for over 42 years, he had been with
First Bank since 1973.
Mr. O’Keefe began his business
career in 1938 as a public relations
counselor and later was a special in­
vestigator for the U.S. department of
Justice in W ashington, D .C . He
joined the Kropp Forge Co. in 1942
and progressed through several
officer positions until his election at>
chairman and chief executive officer.
In January, 1973, he joined First
Bank of Oak Park as chairman and
chief executive officer, a position he
held until May, 1976, when he was
elected chairman of the executive



was elected an officer in August,
1979. He has a BA degree from Yale
Mrs. Faerber joined the bank as a
trust department clerk in 1967. She
was promoted to trust administrator
in 1972 and elected assistant trust
officer in 1974.

IBA Divisions Name Officers
Thornridge State Bank
Names Sr. VP, Officer
Thornridge State Bank, South
Holland, has announced the promot­
ion of V. M. Peters to the position of
senior vice president, and Marilyn H.
Stefans to assistant loan officer.
Mr. Peters, formerly vice presi-



dent, will be in charge of all lending
activities. Prior to last August, when
he joined Thornridge State, he was
assistant vice president at Heritage
Pullman Bank in Chicago where he
served 10 years.
Mrs. Stefans has served at the
bank for two years in a variety of
administrative and operational posi­
tions. She is now responsible for mak­
ing loans and assisting with all lend­
ing activities. She has had 19 years of
banking experience.

The consumer credit division and
marketing and PR division of the
Illinois Bankers Association recently
elected the following bankers to a
one-year term commencing July 1:
Consumer credit: president —B. J.
King, Herrin Security Bank, William­
son County; first vice president—
Jerome R. Thomas, American Na­
tional Bank & Trust Co., Chicago,
and second vice president — Don
M iddleton, Old N ational Bank,
M arketing & PR: p r e s id e n t Dennis McMillan, Bank of Carlock;
first vice president—W. James Fitz­
gerald, Champaign County Bank &
Trust Co., Urbana, and second vice
president—John R. Revell Jr., First
National Bank of Marshall.

Two Promoted at Sterling
Don E. Cousins, president of The
Central National Bank of Sterling,
recently announced the promotion of
R obert D. Eversman to vice
president and controller, and Onnadine C. Hosier to cashier.
Mr. Eversman joined the bank in
1978 as financial planning officer and
in January, 1979, was promoted to
vice president and investment officer.
He is a graduate of Iowa State UniNorthwestern Banker, April, 1980


Illinois News

versity and the National Trust School
at Northwestern University.
Ms. Hosier, a 17-year veteran in
the banking field, has served in many
capacities including assistant auditor
and assistant cashier.

Promotions Announced at
Old 2nd Nat’l., Aurora
Six promotions have been made at
The Old Second National Bank of
Ronald J. Carlson has been named
vice president and controller. He
joined the bank in 1977 after employ­
ment with All-Steel, Inc. He has a
masters degree in finance from
Loyola University.
James R. Weiland, who joined the
bank in 1962, was promoted from
assistant vice president to vice presi­
dent in charge of teller operations.
Thomas P. Meyers was promoted
to assistant vice president in the new
accounts and business development
department. He joined the bank in
1966 and has attended Drake Univer­
sity and Iowa State.
Mark Truemper is a new assistant
trust officer in the trust employe
benefits division. He is a graduate of

Northern Illinois University.
Paul M. Greene, who joined the
bank last year, has been named an
assistant trust officer. He has a law
degree from Southern Illinois Univer­
sity and formerly practiced law in
Patricia Nickels has been named
credit officer. She joined the bank in
1973 as an MCST operator.

Joins State Bank, Auburn
W . W ay ne Anderson has j oined the
State Bank of Auburn as vice presi­
dent and loan officer. Most recently
he was vice president, assistant trust
officer and senior loan officer at the
Jersey State Bank in Jersey ville.
He also held positions at the
Illinois State Bank of East Alton and
Union Bank & Trust Co., Delphi,

Named New Officer

Mr. Stuhr has been with the bank
for 12 years as auditor and comp­
troller. He formerly was with Sears
Bank and Trust and Western Na­
tional Bank of Cicero, and has a BSA
degree from the Walton School of
Mr. Washburn joined the bank in
1967 as a trainee and has worked in
various departments. He has been a
real estate loan officer since 1977. He
has a BBA degree in finance and
banking from Northwestern Univer­
Ms. Chmura has been with the
bank for six years, beginning as a
teller. She was formerly with St. Paul
Federal and the French Line Corp. as
a passenger representative.


Anita M. Scholz has been named
administrative services officer of the
Bank of Clarendon Hills, according to
Neal A. Anderson, president.
Ms. Scholz has been with the bank
for 3 Vi years as an administrative
assistant in the operations depart­
ment. She has a BS degree from
Illinois State University.

-t m s ,


Tests Unusual Promotion



First Bank of Oak Park recently
tested an unusual inflation-fighting
approach to bank premium promot­
ions. Instead of requiring a deposit,
the bank decided to give the prem­
iums away at cost.
According to Pat O’Malley, chair­
man, “ It’s our way of saying thanks
to our customers and to the commun­
ity. Secondly, it serves as a way of
helping people through these inflat­
ionary times.’ ’
The promotion, entitled “ The In­
credible First Sale,” was held in Feb­
ruary. First Bank customers could
reap an extra dividend—a 20% dis­
count below cost on the 4,200 prem­
ium items in stock.



f $■'<V t-W

HICAGO City Bank and Trust
C om pany’ s chairman, Gavin
Weir, recently announced the pro­
motion of four people, Thomas W.
Brinnehl, cashier; Jose Bustos,
assistant auditor; Walter J. Novak,
vice president, consumer credit de­
partment, and Richard T. Topps,
assistant vice president and trust
Most recently assistant vice presi­
dent of operations, Mr. Brinnehl

Elmhurst Bank Promotes 3


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Frank C. Rathje, president of the
Elmhurst National Bank, has an­
nounced the promotion of Thomas G .
Stuhr to vice president and cashier;
Delbert R. Washburn to assistant
vice president, real estate loans, and
Carole A . Chmura to assistant



Our loan participations
your liquidity fluid.
Maintaining liquidity in a time
of high credit demand can be a
severe problem. It can destroy
your flexibility. Even worse, it
can force you to turn away long­
time customers at a time when
they need you most.
The answer could be loan
participations with The Northern
Trust. We’re actively looking for
attractive participations in
many areas, including install­
ment, agricultural, and commer­
cial loans.
Why The Northern Trust?
Because we work with you as a
true partner. Our calling officers
are experienced professionals.
They understand how important
participations can be. They have
Federal Reserve Bank of St. Louis

the expertise and the authority
to move fast to ease your liquidity
Most important, loan parti­
cipations with The Northern
Trust bring with them our tradi­
tion of integrity. We work to stay
with our correspondents in good
times and bad. We strive to build
up a strong relationship which
will continue for years. And we
respect the relationships that
you have so carefully built up
with your own customers.
For more information, con­
tact Curtis E. Skinner, Senior

Vice President, The Northern
Trust, 50 South La Salle St.,
Chicago, Illinois 60675. Tele­
phone (312) 630-6000.

T he m ore you w ant
your b an k to do,
the m ore you need
T he N orthern.




Chicago News

Mr. Topps joined the bank in 1976
and was appointed trust operations
officer that year. He is an experienced
trust department administrator and
has served in a number of capacities.

1978. Ms. Wojtczak joined the bank
in 1977 and was most recently a pro- x
cashier in the securities and safe
keeping department.
* * *

* * *



joined the bank in 1963 as a teller
trainee. He has spent time in the real
estate and consumer credit depart­
ments as well as serving as manager
of the drive-in.
Mr. Bustos joined Chicago City
Bank in 1970 as a line teller. He was
transferred to the audit department
as an audit clerk in 1974, becoming
the senior audit clerk in 1975.
Mr. Novak, formerly assistant vice
president, joined the bank’s consum­
er credit department in 1965. He was
later named manager of the collection
area and entered the bank’s manage­
ment development program in 1968.

The prom otions o f Thomas D.
Scanlan and Irene Wojtczak to
assistant cashier have been approved
by directors of the Mid-City Bank of
Chicago, according to Kenneth A.
Skopec, president.
Mr. Scanlan, with the bank since
1977, had been a pro-cashier in the
retail banking departm ent since

* * *



Offer Gold Accounts to Correspondents
HE FIRST National Bank of
Chicago, the first bank in the
country to offer individuals the Gold
Passbook Account, now is making a
similar gold account available to cor­
respondent banks.
Called the Correspondent Gold A c­
count, the instrument allows a corre­
spondent to buy and sell gold on be­
half of its retail customers.
The account is opened and main­
tained with a minimum of five troy
ounces. Thereafter, gold can be
bought or sold in one-ounce incre­
m ents. The correspondent bank
issues Gold Passbooks bearing its
name to participating customers, and
establishes its own maintenance re­
quirements and retail pricing struc­
ture. The passbooks are denominated
in troy ounces.
First Chicago handles the operat­
ional details of buying, storing, and
selling the gold. Neither the corre­
spondent bank nor its customers need
to take actual physical possession of


the gold, eliminating minting and
manufacturing costs, assaying re­
quirements, and security problems.
An added convenience to the corre­
spondent bank is that the gold can be
bought and sold through telephone

Fee for Visa Cards
First Chicago Corporation has an­
nounced that effective July 1, it will
begin charging custom ers a $20
annual fee for their VISA cards. In
addition, the minimum repayment
rate will be increased from 4 % to 5 %
a month.
“ With the dramatic rise in interest
rates, it is increasingly difficult for
bank cards to be profitable,” explain­
ed Robert D. Richley, head of the
Chicago banking department.
Holders of VISA cards issued by
The First National Bank of Chicago
will be formally notified of the new
fees by mail in May.

(Continued from page 28)
2. A basic overall understanding for everyone of the
bank’s direction by design.
3. Develop organized and disciplined thought pro­
4. Allow you to be more innovative and more aggres-
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Ira Frank Jr., president of the
A m a lg a m a te d
Trust & Savings
Bank, C hicago,
was elected to a
one-year term as
vice president for
rev en u e and
membership of
th e C h i c a g o
A ssocia tion of
C om m ercean d
Industry at the
a ssocia tion ’ s annual election in

Rudolph G. Schoppe has joined
Capitol Bank of Chicago as vice presi­
dent and senior
tr u s t adm inis­
trator, it was an­
nounced by Gil
Mazzolin, chair­
Mr. Schoppe
will head the
bank’s complete
d epa rt­
ment. He attend­
ed E l m h u r s t
College and has a law degree from the
University of Illinois, Urbana. He is
also a graduate of Northwestern Uni­
versity’s National Graduate Trust
Prior to joining Capitol Bank, he
was assistant vice president and trust
officer with N orthw est N ational
Bank of Chicago. He has also held
positions with the Chicago Title and
Trust Co. and the Central National

Receives Trust Powers
Farmers State Bank of Hey worth
has received consent from the FDIC
to exercise limited trust powers.

sive than defensive.
5. A benchmark for review and for such modification
as may be appropriate.
Getting started is half the battle. Once the planning is
in motion, things will begin to happen. It’s a positive
way to begin to allow your bank to gain more direction,
reasonable growth, and optimum profit in the constant­
ly changing future. Start now planning for a plan.

* * * » & C o .

lies! H I I ioli

High Performance
Banking Services
"O u r sole objective is to simplify, not mystify, the achievement o f high
perform ance .
Bankers across the country who share this objective with us are finding that
significantly higher perform ance can be achieved through the use o f often
amazingly simple straightforward approaches learned prim arilyfrom other
bankers. W e serve as a catalyst and clearinghouse f o r innovative approaches to
high perform ance .
A n y leadership role we have achieved is sim ply a reflection o f carefully
listening to the high perform ance bankers and then working to p u t their
approaches into broader use throughout the banking com m unity
W e do not do any consulting work . Quite frankly, our total energies are
devoted exclusively to serving our clients at a m odest cost b y providing useful
information and seminars fo c u sed on what we firm ly believe are the essentials
o f high perform ance banking . ”

For more information, please write Alex Sheshunoff, Sheshunoff & Company, 611 South Congress Avenue,
Texas 78704 or phone (512) 444-7722.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Michael Mishou, Assistant Vice President, Southern Metro Area, Wisconsin, Michigan — Upper Peninsula (612) 291-5573

“ Part o f my job is to give you ideas
that make you think twice.”
“ Are you using lock box accounts to reduce
float? Are you minimizing the float in your
correspondent account? How much could you
save by a cash management reporting system.
“ Raising questions like these is part of my
job. The other part is providing the answers.
My Correspondents look to me for new ideas
backed by concrete facts. Facts that will make
you think twice.
“ To be the best possible resource, I’m
constantly searching for new approaches to
problems . . . asking questions of my colleagues
and customers . . . getting out into the field.
“ When complex questions arise, I can call
upon the full resources of First Bank Saint Paul
to answer them.

“ As a result, our Correspondents know
they can rely on us for the service they need to
compete in today’s fast-changing banking
“ When they need a second opinion, they
think of the First.”

First Bank
Saint Paul
Correspondent Bank Division

We do our job.
You get the credit.
The First National Bank of Saint Paul • Member FDIC

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


Ms. Timpe, who has been with the
bank for 10 years as a teller, will work
in the instalment loan operation. Ms.
The State Bank of Long Lake is Alger, a teller for the past 10 years,
under new ownership and manage­ will assume additional duties in the
ment as a result of a sale of the major­ operations department.
ity stock by William Bartig to the
Tysan Corp. of Minneapolis.
Albert Tychman has been elected MBA Lending Conference
chairman of the board, and David M. Scheduled for April 22-23
Sanders was named vice president
“ What’s Right With America’’ will
and a director. Both men are princi­
the topic of featured speaker Dr.
pals of the Tysan Corp. and Minne­
Nadler at the Minnesota Bank­
apolis businessmen.
Rodger Bense was elected presi­ ers Association upcoming Lending
dent, chief executive officer and a Conference, according to Donald A.
director. Most recently he was execu- Sirek, conference chairman, and pres­
ident, State Bank of New Prague.
Dr. Nadler, an economist at Rut­
gers U niversity, New Brunsw ick,
N.J., will highlight the dinner pro­
gram, Tuesday, April 22. The day
and a half conference is scheduled for
April 22 and 23 at the Radisson
Hotel, St. Paul.
Other topics to be discussed in­
clude loan portfolio management and
the Guaranteed Student Loan Pro­
gram. Also scheduled is an extensive
look at consumer lending with the use
of the MBA Consumer Lending Pro­
cedures and Forms Manual, and state
and federal lending legislative issues.

New Ownership, Officers at
State Bank of Long Lake

The new president most recently
served as senior vice president of the
N orthw estern N ational Bank of
Litchfield. Mr. Throndrud had been
president of the bank since 1957 and
will have completed 34 years in bank­
ing when he retires in 1982.
David L. Fuchs has been elected
cashier. He had served as operations
officer since join in g the bank in
August, 1979. Mr. Fuchs was form­
erly personnel officer at the
N orthw estern N ational Bank of
Sioux City, Iowa.
Gerald K. Johnson has joined the
bank as an instalment loan officer.
Mr. Johnson, who has a BS degree in
business administration from South­
west State University, was formerly
a personal loan officer at the First
N orthw estern N ational Bank of

New Board Member Named
Grace E. Ketroser has been elected
to the board of directors of First Bank
Robbinsdale, according to Kenneth
C. Sheehan, president. Mrs. Ketroser
graduated from the University of
Minnesota and has been active in
community and civic affairs.

New Chairman, President
Named at NW Faribault

Richard W. Peavey, president of
First Northwestern National Bank of
Faribault, has been elected chairman
by the board of directors. James A.
Loehr, presently vice president in the
banking business group of the corp­
orate office of Northwest Bancorporation, was named president, chief
executive officer and a director. Both
changes are effective June 1.
Top Management Changes
Mr. Loehr becomes the first presi­
dent outside the Peavey fam ily,
Told at Ortonville Bank
Ronald A. Arndt has been elected which founded the bank in 1894. A c­
president and chief executive officer quired by Banco in 1929, the bank
of the Northwestern State Bank of was founded as the Security Bank,
and the name was changed in 1975.
He was president of Northwestern
tive vice president of the First
State Bank in Dodge Center from
National Bank of Long Prairie. He is
1968 until 1973, when he moved to the
a graduate of several banking
Banco corporate office.
schools, including the Stonier Grad­
He began his banking career in
uate School of Banking at Rutgers
1957 at the Northwestern National
University, and is active in numerous
Bank of Litchfield. A native of Stark­
banking organizations.
weather, N.D., Mr. Loehr graduated
Appointed to the position of assist­
from the University of N.D. at Grand
ant cashier were Marcia Heinzen,
Forks in 1954.
Chris Timpe and Deborah Alger. Ms.
Mr. Peavey has been president of
Heinzen, who has been with the bank
for eight years as a teller and book­ O rtonville succeeding E lw ood A . the Faribault bank since 1956. He is
keeper, will be responsible for the Throndrud, who was elected chair­ scheduled to retire in the spring of
man of the board.
bookkeeping department.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

Twin Cities

S IM P L IF IE D pension plan
which allows employers to give
tax-sheltered re­
tirement benefits
to their employes
through individ­
ual re tire m e n t
a c c o u n t s has
been introduced
by Northwestern
National Bank of
A ccord in g to
C. Paul LindC. P. LINDHOLM
holm, senior vice
president, consumer banking, under
the SEP (Sim plified E m ploye
Pension) plan, employers make con­
tributions to IRA accounts estab­
lished by eligible em ployes. But,
unlike regular IRAs, which allow a
maximum contribution of $1,500 per
year, the new plan will permit contri­
butions up to $7,500 per year.
The bank has also announced a
major restructuring of its Interest
Plus Checking plan to give customers
the same benefits they would receive
with a NOW account. The plan,
which allows customers to earn inter­
est on money used for checking, is be­
ing introduced at 24 Banco banks in
According to Paul Eisen, senior
vice president and marketing direct­
or, Interest Plus Checking was re­
designed to prepare both customers
and the bank for the establishment of
the NOW account.
* * *


Hartle, trust division , and Larry
Ms. Grace joined the bank last
Podobinski, investment department. April as retail sales manager. She has
Larry M. Lange has joined the a masters degree in library science
bank as a correspondent credit offi­ from the University of Minnesota.
cer. Prior to joining Marquette, Mr. Mr. Brewer joined Marquette Com­
Lange served as credit director of puter Corp. as shift supervisor in
International Multifood’s restaurant 1977 and was named operations
officer last year.
Mr. Montroy joined Marquette as
Mr. Hartle joined Marquette as a
an accountant in 1967. He was named trust administrator in 1976 and was
accounting officer in 1970, chief named trust officer the follow in g
accounting officer in 1972 and year. He has an LLB degree from the
controller in 1973. M s. O m tvedt University of Minnesota Law School.
joined the bank in 1968 as a trust Mr. Podobinski joined the bank’s in­
secretary, was named trust officer in vestment department in 1977 and
1975 and assistant vice president in was named investm ent officer in
1978. Both staff members graduated 1978. He is a Hamline University
from the Minnesota School of Busi­ graduate.
Also receiving promotions were:
Gloria Baehr, personnel officer;
Paula J. Wallace, investment officer;
William L. Bohrer, customer relat­
ions officer; Allen McCullogh, pur­
chasing officer; Martha J. Berry,
m ortgage servicing officer; Beryl
Ann Burton, operations officer; John
R. Wright, assistant trust officer;
John H. Suh, accounting officer, and
Carol S. Underdahl, systems officer.
* * *


Carl R. Pohlad, president of Mar­
quette National Bank, recently an­
nounced the promotion of several
bank officers.
Heading the list were Vernon J.
Montroy, named vice president and
controller, and Karen I. Omtvedt,
vice president and trust officer.
Promoted to assistant vice presi­
dent were Linda W. Grace and Mark
Brewer, retail division; David E.

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


Bank Shares In­
corporated, par­
ent firm of the
Marquette Bank
System, has an­
nounced the pro­
motion of Marg­
aret Majewski to
assistant vice
president. She
joined the com­
pany in 1967 as
an administrative assistant
* * *



N orthw estern N ational Bank of
M inneapolis has announced four
Raymond E. Midthun was elected
vice president of the personal trust
division of the personal trust depart-



"As a relative newcomer
to the Correspondent De­
partment, my seven years
experience in Commer­
cial Lending and Ecjuipment Leasing provide
valuable experience to
assist our correspondents.
Whether it's lending or
operational services, what
it all comes down to is
professional and prompt
response with an honest
answer as to what we can
do for your bank. We are
in the business to help your
bank run more profitably
and efficiently. We are not
in the business to tell you
how to run your bank.
There is a difference.

and Trust
C am pan/
Correspondent Division
5th and Minnesota Streets
St. Paul, Minnesota 55101
(612) 298-6331
M em ber F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Twin Cities News



ment. He join ed N orthw estern in
1968 as an administrative trainee in
the trust department, was elected an
assistant vice president in 1975 and
became a section manager last year.
He has a BS degree in business ad­
ministration from Gustavus Adol­
Donald M. Longlet was elected
vice president of the pension and pro­
fit sharing division of the trust in­
vestment department. He joined the
trust investment department in 1968
as a research analyst, became a port­
folio manager in 1977 and a senior
portfolio manager in 1978. He has a
BA degree in philosophy and eco­
nomics from the University of Minne­
Douglas B. Manske was elected
assistant vice president of the Far
East, Middle East and Africa Divi­
sion of the international banking de­
partment. He joined the bank in 1970
and formerly was an international
banking officer.
Harold J. Stark has joined the in­
vestment counseling division of the
trust investment department as an
assistant vice president and senior
portfolio manager. He formerly was a
senior investment officer at Citicorp
Investment Management, Inc., in
San Francisco.
* * *
Carol L. Korda, assistant vice
president, First Bank System, Inc.,
has been appoint­
ed finance com­
mittee chairman
of the N ational
a s s o c i a t i o n of
Ba n k W o m e n ,
She was select­
ed by the board
to fill the remain­
der of the 1979-80
term due to a
c - L- KORDA
resignation. In this position, she also
serves on N ABW ’s board of directors.
Ms. Korda joined FBS eight years
ago. She is a member of N ABW ’s
Metroland group.

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

The board of the Cherokee State
Bank of St. Paul, recently announced
that Robert R.
Clemens has been
elected as a di­
rector, and Vir­
ginia L. Sprafka
has been promot­
ed to assistant
manager o f the
detached facility
at 675 Randolph
M rs. Sprafka
has been employed by Cherokee State
Bank since 1978 as a teller. In her new
position she will assist Delmar
Ohmann, assistant cashier and man­
ager of the Randolph facility since it
opened in January, 1979.
Mr. Clemens is vice president of St.
Paul Structural Steel Co. and presi­
dent of Cleco Construction, both of
St. Paul. He is a graduate of St.
Thomas College and the University of
Minnesota Institute of Technology.
* * *
A number of staff promotions at
Western State Bank of St. Paul have
been announced
by A . William
Sands Jr., presi­
Lester I. Davis
has been named
senior vice presi­
dent and assist­
ant to the presi­
dent. He has
been at Western
State Bank since
Myron Gilbertson has been



named vice president and comptrol­
ler. He has been with the bank since
1950. He is responsible for establish­
ing and maintaining bank accounting
Stephen Erdall has been named
assistant vice president of real estate,
with additional responsibilities for
business sales and development. Be­
fore joining Western State in 1978, he
worked for First Minnehaha National
Bank, Minneapolis.
Dennis Prchal has been promoted
to assistant vice president in charge
of retail sales and development. He
began his banking career in the loan
department of First National of St.
Paul and joined Western State in
Maynard Nelson has been appoint­
ed cashier. He has served in various
positions since joining the bank in
1954. He is currently responsible for
bank controls and operating proce­
Cheryl McNaughton has been
named manager, personal banking
center. She joined the bank in 1967
and has had experience in several de­
partments, most recently as personal
banking officer.
Also announced were several staff
title changes which more accurately
reflect job responsibilities. These are:
James Gahlon, insurance officer;
Donald Schween, business develop­
ment officer, and Richard Willy, com­
puter systems officer.
* * *

T. H. Bartholomay, president of
First Bank Minnehaha, Minneapolis,
recently announced the election of
two officers and a new board member.
Thomas C. Porter has been elected
personal banking officer. He joined
the bank in 1978 in the sales finance
department and later joined the per­
sonal banking department.
Kimi Y. Martin has been elected
marketing officer. She came to First
Minnehaha in 1978 as a management
trainee and is a graduate of the Uni-



Midland Correspondent team. Not only can you
call them anytime you need some fast answers,
you can call them toll free. THE NUMBER IS
1-800-752-4200 IN MINNESOTA* The names
are Stan Peterson, Marge Lamosse, Mike
Bodeen and Jackie Dunn. They represent the
strength and service of a substantial financial
institution. But, more importantly they represent
the team spirit it takes to give your bank the
best our bank has to offer
*In North Dakota and South Dakota, call 1-800-328-8678.

L to R: Stan Peterson, Mike Bodeen. Jackie Dunn Marge Lamosse,

M idland
Federal Reserve Bank of St. Louis


Northwestern Banker, April, 1980


Minnesota News

the bank’s building program, two
new structures across the street from
present headquarters, and explained
his views as a member of an advisory
com m ittee on the Chrysler Corp.
situation, pointing out that First
Bank Minneapolis has loan commit­
ments with Chrysler and will honor
Meeting with media representa­ them.
* * *
tives in a business luncheon recently,
D. H. Ankeny
Jr., president and
James W. Reagan, chairman and
chief executive
president, American National Bank
officer of First
and Trust Com­
Bank M in n e a ­
pany, St. Paul,
polis, discussed
has announced
economic trends
t hre e p r o m o t ­
and a n s w e r e d
questions on var­
Robert Buck,
ious issues.
comptroller, was
M r. A n k e n y
elected vice pres­
p r e s e n t e d the
ident - comptrol­
ban k ’ s 1979 annual report which ler. He joined the
showed net incom e after security bank in 1975 as
transactions of $24.6 million, a 13%
comptroller. Ron­
increase from the 1978 total of $21.7
ald L. Bailey, data processing officer,
million. “ Higher net interest income
was elected vice president-data prowas the main contributor to higher
earnings, reflecting increased loan
volume and higher yields on our earn­
ing assets,’’ he pointed out.
The chief executive expects the
economic challenges that confronted
the banking industry during the
latter part of the 1970s to continue
into the 1980s. “ The intensified com ­
petition that this will bring will cer­
tainly challenge the m anagement
skills of the banking industry.’ ’
Mr. Ankeny also gave an update on

versity of Minnesota, Duluth, with a
BBA degree.
Timothy A. Cronen has been
elected to the bank’s board of direct­
ors. He is vice president of Tempco
Manufacturing Co., Inc.
* * *

cessing. He joined the bank in 1968 in
the data processing division. Myrna
L. Toivanen, budget officer, was
elected vice president-bu dget and
planning. She joined the bank in 1975
in the budget department.

MBA Program is Factor in
Bank Robbery Reduction
A Minnesota Bankers Association
reward program offering up to $5,000
for information leading to the arrest
and indictment of bank robbers initi­
ated one year ago has contributed to
the reduction in the robbery rate in
the state.
Since February 13, 1979, the asso­
ciation has paid $17,750 to individ­
uals in cases in volvin g 13 bank
robberies, according to Truman L.
Jeffers, MBA executive vice presi­
dent. Both the FBI and the MBA
agree that the reward program has
had a significant impact on state
The solution rate in M innesota
stands at 66%. Nationally the rate is
49%. FBI statistics also show the
average robbery loss in Minnesota is
about $4,300, com pared to the
national average of about $6,400.
The association also has conducted
a series of educational m eetings
aimed at reducing the incidence of
bank robbery.

Appointed at Tower Bank
The State Bank of Tower has an­
nounced two promotions. Anthony J.
Pecha was promoted to assistant vice

E le c tr o n ic c o m m u n ic a tio n b r in g s
t h e N a tio n a l M u n ic ip a l M a r k e t
to y o u in m in u te s a t t h e
F i r s t N a tio n a l B a n k o f S t . P a u l
The “Blue List Bond Ticker” makes
available on a CRT screen new listings
and price changes as they happen in
the Municipal Market. This new service
together with the “Telerate”, Munifacts”, “J. J. Kenney” and “Chapdelaine”
wires provides up-to-the-minute infor­
mation on the market needed to make
sound investment decisions. Ask your
investment representative how elec­
tronic communication can help
manage your bond portfolio.

First Bank
Saint Paul
A Full Service Bank

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Member FDIC



president and loan officer. He joined
the bank in 1976. Susan Ronkainen,
who has been with the bank since
1968 and has held various positions,
was promoted to assistant cashier.

612 - 291-5659

Honored at Mankato Bank

Investment Services Group
First National Bank of Saint Paul
St. Paul, Minnesota

The staff of the Security State
Bank of M ankato helped Helen
Titrud, assistant cashier, celebrate
her 22nd anniversary of bank service
with a dinner in March.


r Capital
Financial Corp. Northwest


____ *

Asset Power.

G et m ore m ileage out of each dollar.

Your clients' assets can secure a tailor-made
revolving credit line. Accounts receivable,
inventories, machinery, equipment, land and build­
ings can be turned into Asset Money™ It’s the
smoothest route for companies short on working
capital, those looking toward expansion or growing
firms eager to increase sales. Or money for
buy-outs, mergers and acquisitions.
Bank participations.
Banco Financial Corporation can help get your
clients off to a great future with Asset Money.
Contact Clarence Adams, Lee Mork, Robert Olson,
or Paul Weingart, (612) 372-7988, 830 Northwest­
ern Bank Building, Minneapolis, Minnesota 55402.

Clients with considerable working capital may wish
to conserve it by leasing needed equipment.
Decide on a Lease Purchase Contract with a
guaranteed purchase option at the end of the term.
Go with a leverage lease or purchase
equipment outright.
Whatever your clients’ business, whatever the
equipment they need — Lease Northwest, Inc. has
the financing options that put it to work.
Contact Dave Michael in Minneapolis at
(612) 372-7416, Roger Meier in Omaha at
(402) 536-2310, Jim Sheedy in Des Moines at
(515) 245-3392, or Chris Hoss in Fargo at
(701) 293-8136


Lease N orthw est , I n c .
Affiliated with Northwest Bancorporation

Financial Corporation
An Affiliate of Northwest Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


After 76 years,
we thought it was tim e
for a face lift.

Citicorp’s First National City Travelers Check.

The Old Face.
It won’t be long until the First National City Travelers
Check will be a collector’s item.
We’ve just changed our name to the Citicorp Trav­
elers Check.
Why the change?
Because Citicorp is America’s leading banking institu­
tion worldwide. And we want our travelers check cus­
tomers to benefit from our good name.
The new checks, like the old ones, will be honored in
literally millions of hotels, restaurants and stores around
the world. They’ll also be backed by the same unbeatable
refund guarantees. And they will continue to be available in

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


T H E #PA K -the simplest, fastest and most accurate pre­
packaging system in the business.
We’ll be supporting the Citicorp Travelers Check with
a multimillion-dollar national advertising campaign in news­
papers and magazines. And with commercials on top TV
shows, including 60 M inutes, 20/20, The Tonight Show,
and major news programs on all three networks.

Citicorp’s new Citicorp Travelers Check.

The New Face.
In the months ahead, you’ll be hearing more and more
about Citicorp Travelers Checks.
Now that w e’ve changed the face of our check, we
plan to change the face of the entire travelers check indus­
NOTE: If your customers ask for our new checks
before they arrive, please tell your tellers that our First
National City check will continue being accepted indefi­
nitely. After 76 years of faithful service, w e’re not about to
let you down now.

© 1980, CITICO RP
Federal Reserve Bank of St. Louis


Northwestern Banker, April, 1960


Minnesota News

by stating that since s&ls can’t mix
savings and NOW account balances,
com m ercial banks should give a
service charge credit of $1 for every
$500 in savings.

MINNESOTA CHAPTER of Bank Marketing Assn, has had a record attendance at its
meetings this year. Shown here are Lee E. Gunderson, pres.-elect of ABA and pres., Bank
of Osceola (Wis.); N. W. “Red” Pope, BMA pres., and v.p., Sun Banks of Florida, Orlando,
and George L. Michael, pres., Minn. Chapter of BMA and v.p., American Nat’l. Bk. & Tr.
Co., St. Paul, all in attendance at a recent meeting.

Marketing Group Plans Strategy
( £ 1 k t ITHIN the next five years,
V V 85% of com m ercial bank
funds will be at money market rates,
and depositors will never again sub­
sidize borrowers.”
This was the statement made by
Jack W hittle, president, Whittle,
Raddon, Motley & Hanks, Chicago,
at the annual Bank Marketing Con­
ference held by the Minnesota chap­
ter of BMA in conjunction with the
Minnesota Bankers Association.
Mr. Whittle suggested to the 250
delegates that high perform ance
banks manage by using a well defined
game plan. He said that when times
get tough, banks should place special
emphasis on their best customers. He

recommended deposit priorities be
placed in the areas of small business
and older citizens.
Looking ahead to NOW accounts,
Mr. Whittle suggested a minimum
balance of $2,000 “ if you don’t want
to give the bank away.” His rule of
thumb on accounts less than $2,000 is
a monthly charge of $2 for accounts in
the $1,500 to $1,999 range; $4 charge
for accounts in the $1,000 to $1,499
bracket, and $6 charge for accounts
ranging from 0 to $999. He concluded

BM A President
George L. Michael, vice president,
American National Bank and Trust
Company, St. Paul, and Minnesota
B M A president, agreed with Mr.
Whittle by stating that ‘‘it is going to
be tough to make a buck and bank
profits will depend, to a large extent,
on how well marketing people do their
job s.” Truman W. Porter, vice presi­
dent, Midway National Bank, St.
Paul, and first vice president, BMA
chapter, assisted Mr. Michael and
served as program chairman.
Cost Analysis
Rob McCampbell, assistant vice
president, Marquette National Bank,
Minneapolis, emphasized that banks
should know what their products cost
so they can price them on an
intelligent basis. Otherwise, he said,
‘‘ some of us aren’t going to be around
in a few years.” He said that at Mar­
quette, 60% of the accounts are
losers, providing only 6.5% of the
balances and 44.5% of the account
activity, costing over $250,000 each
year. He suggested a cleansing of
accounts by mailing closing balances
to all accounts which show under $50
for the first quarter of 1980. He also
recommended paying no interest to
accounts when a $100 balance was not
maintained. Finally, he would allow
all accounts under $1,000 eight with­
drawals per quarter and impose a
(Turn to page 62, please)

COST ANALYSIS was presented by Rob McCampbell, a.v.p., Marquette Nat’l. Bk., Minneapolis, shown with Pat McGraw, sr. v.p. &
cash., National Bankof South Dakota, Sioux Falls. Mr. McGraw talked on advertising and public relations. RIGHT— Mowry Stilp, a.v.p.,
First Nat’l. Bk., St. Paul, and Robert Koenke, a.v.p., National City Bk., Minneapolis.

Banker, April, 1980
Federal Reserve Bank of St. Louis

Owatonna Bank Opens South Oak Office

Minnesota News
Mr. Louismet has been the treas­
urer-m anager o f the Sheet M etal
Local #76 Credit Union, and active in
cret^f union movement work for 20

Appointed at Arlington State

THE NEW South Oak office of the Northwestern Nat’l. Bank of Owatonna opened in
February w ith a w inter carnival.

lanes. A 24-hour banking center in­
ENNETH E. Wilcox, president cludes a night depository and auto­
o f the N orthw estern N ational matic total teller machine. A unique
Bank of Owatonna, has announced feature of the building is a skylight
the grand opening of the new South which is a net provider of passive
Oak office. Thom as G. R ussell, solar energy.
An open house with a winter carn­
assistant vice president, is the man­
ager, and Wanda Thompson is assist­ ival theme was held in mid-February.
Over 6,000 people attended the threeant manager.
The brick building encompasses day event which featured a snow
4,200 square feet of lobby and office sculpture, craft demonstrations and
space in addition to four drive-up prizes.


First Nat’l. Bank, Duluth
Establishes Speakers Bureau
Speaking of money, First National
Bank of Duluth is prepared to do so.
President Dennis W. Dunne has an­
nounced establishment of a Speakers
Bureau through which Duluth area
clubs and organizations can be pro­
vided a speaker on virtually any topic
relating to money. The service is
offered at no charge.
Subjects include consumer credit,
retail banking, commercial banking,
estate planning and trust services,
market investments, bank marketing
and consumer affairs. The 20-minute
presentation is followed by a question
and answer period.

Two Named at Fairmont Bank
Jack A. Koberg, president of the
Fairmont National Bank, has an­
nounced the promotion of Paul A.
Childers to executive vice president
and James A. Haeckel to senior vice
Mr. Childers has been with the
bank since 1978 as vice president and
cashier. He is currently head of bank
Mr. Haeckel has been with the
bank since 1948. He has served in
bookkeeping, general ledger, as a
teller and is currently a commercial
loan officer.
Federal Reserve Bank of St. Louis

Promoted at Duluth Nat’l.
The Duluth National Bank has an­
nounced the promotion of William
Brunette to assistant vice president,
and Chris Mahai to assistant cashier
and marketing officer.
Mr. Brunette joined the bank in
1970 as auditor. He had been an in­
stalment loan officer and now is a
commercial and real estate lender. He
attended University of WisconsinSuperior.
Ms. Mahai joined the bank in Sep­
tember, 1979, and was previously
associated with Airport State Bank
of Duluth. She is a graduate of Uni­
versity of Wisconsin-Superior with
degrees in economics and political

Credit Union Advisory
Council Appointments
Commissioner of Banks Michael J.
Pint has re-appointed Gerard A .
(Rod) Lydon and Albert J. Louismet
to four-year terms as members of the
five-person Credit Union Advisory
Council. The two concluded four-year
terms on the Council in January.
Their new terms will end in January,
Mr. Lydon is treasurer-manager of
the Minnesota Central Credit Union
Office and is president of the Minne­
sota League of Credit Unions.

Russell Blaschko has been named
assistant cashier and operations
officer at the Arlington State Bank.
He has been with the bank since 1978.
Mr. Blaschko handles student loan
applications and administers one of
the largest student loan programs in
the area. A licensed insurance agent
and real estate salesman, he also
handles other types of loans. He has a
BS degree in finance from St. Cloud
State University.

Staff News from Elbow Lake
The board of the First National
Bank of Elbow Lake has elected
Ralph Leis of Elbow Lake as a new
Staff members receiving promot­
ions were Betty Lou Cravens, cashier
to assistant vice president and
cashier; V irginia Ricks, assistant
cashier to assistant vice president,
and Jean Gord to assistant cashier.

Appointed at NW Jordan
The board of the Northwestern
State Bank of Jordan has announced
the appointment of Nancy M. Nelson
as a personal banking officer. She
joined the bank in 1978.
Previously Ms. Jordan was a loan
teller at the First State Bank of
Waseca and a regional bank examiner
with First System Services.

Joins Sauk Rapids Bank
Ronald Havlik, president of the
Northwestern State Bank of Sauk
Rapids, has an­
nounced the ap­
p o in tm e n t of
James R. Kubovec as assistant
vice president
and manager of
the real estate
mortgage depart­
Mr. Kubovec
received a BS deJ- R- KUBOVEC
gree in business administration and
marketing from Bemidji State Uni­
versity. He was form erly branch
manager of a mortgage loan institu­
tion in the Twin City area.
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

W hen farm ers,
feeders and ranchers
have to produce,
so do you.
Farmers, merchants, manufacturers, almost all
of your customers. Their work can’t wait for good
times. And good times or bad, they all depend
on you for help. So when you need a correspondent,
you need one you can depend on.
You need First Minneapolis.
First Minneapolis gives you one simple
commitment. When you need us, we’ll be there.
Period. It’s official policy.
So when your customers are ready to produce
and you find you need a correspondent who can
produce, we’ll be ready.
If you have questions about any of our
Correspondent Services, call Ken Wales, Vice
President, (612) 370-4687. You’ll get answers and a
commitment you can count on.

First * ■

First N ational Bank of M inneapolis, 120 South Sixth Street • M inneapolis, MN 55402 • Member FDIC.
Federal Reserve Bank of St. Louis

Minnesota News
(Continued from page 58)
service charge of 50 cents per with­
drawal over that limit.
In closing Mr. McCampbell sug­
gested that each bank use the Federal
Reserve’s Functional Cost analysis,
and if they are not a Fed member to
borrow it.
Advertising Tips
Patrick H. McGraw, senior vice
president and cashier of the National
Bank of South Dakota, Sioux Falls,
reminded delegates that most every
person in every bank is a so-called
advertising expert. He said that a
bank’s advertising budget should be
set to accomplish specific objectives.
He added that the old $1 per $1,000
assets rule of thumb for advertising
isn’t always the best, since dollars
spent depend on the com petitive
environment and marketing object­
ives. In the case of his bank, Mr.
McGraw attempts to gear advertis­
ing expenditures to seasonal de­
mands, and a large portion of the
savings advertising is scheduled at
the time fall crops are harvested. He
concluded by suggesting bankers will
be able to obtain much valuable mar­
keting information from the results of
the 1980 census reports.
Presentations from Marlene John­
son, head of a local advertising
agency; Don Jones, head of a Madi­
son, Wis., public relations firm, and

H. F. Mueller, president of the North
Valley Bank, Redding, Calif., round­
ed out the one-day program.

Joins Maple Grove Bank
James Heig, president of North­
western Bank N orthw est, M aple
G rove, has an­
nounced the elec­
tion of Keith F.
Bentley as assist­
ant vice p resi­
dent in opera t­
A graduate of
M ankato State
College, he joined
Fifth Northwest­
ern N a t i o n a l
Bank in 1972 in the operations area.
He joined Banco, Inc., the audit sub­
sidiary of Northwest Bancorporation,
in 1976 and had been serving as an
Mary Gangelhoff, operations offi­
cer of Northwestern Bank Northwest,
is joining B a n c o ’ s operations re­
search department.

Luverne Bank Promotes 2
Lucille Getman has been named
assistant cashier of the Northwestern
State Bank of Luverne. She joined
the bank’s bookkeeping area in 1960.
Her responsibilities are now in
operations and customer service.
Donna Schölten has been advanced

Program for Settlement Service
a n u f a c t u r e r s H anover
Trust Company, New York, to­
gether with Bank of America, San
Francisco, and Payments and Tele­
com m unications Services C orpor­
ation ( Ba nkwir e), has announced
joint participation in a pilot program
of Bankwire’s net settlement service.
The service is designed to stream­
line sam e-day paym ents between
participants and simplify correspond­
ent bank account reconcilements. By
maintaining a running account of
funds moving through the system
and autom atically calculating net
positions for each bank, the service
reduces the number of individual
transactions and sim plifies b o o k ­
keeping requirements.
The pilot p roject, which began
February 5, is designed to establish
operating procedures while evaluat­


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

ing costs and benefits. Participation
in net settlem ent is restricted to
members of the Federal Reserve
System who also belong to Bankwire
and arrangements for the settlement
service are made on a bilateral basis
between individual banks.

Company Plans Seminar
On Aircraft Financing
Insured Aircraft Title Service, Inc.
will conduct the United States’ first
“ Seminar and Workshop in Aircraft
Financing.” The two-day meeting, to
be held in Oklahoma City, Okla., will
cover every phase and aspect of this
most profitable area of the bank’s
installment credit portfolio.
Internationally known experts will
lecture and be available for personal



to bookkeeping supervisor replacing
Ms. Getman. She joined the bank in
1963 and is now responsible for all
bookkeeping activities, proof, gen­
eral ledger and time savings certifi­

Bloomington Bank Appoints
New Loan Officer, Director
Patrick W. Colbert Jr., president
of the Am erican State Bank of
Bloom ington,
the election of
Joyce Lambrecht
as an assistant
loan officer. She
has been with the
bank since 1973,
most recently in
the loan depart­
John D. Skogland has been elected to the board of
directors. He is the owner and presi­
dent of J.D. Skogland Jewelers, Inc.

consultation throughout the two
days. Subjects to be discussed are:
aircraft documentation, marketing,
insurance, repossession, appraisals
and international transactions.
The featured speaker at the dinner
banquet on April 21 will be Paul E.
Erdman, world famed economist and
author of the best sellers, “ The Crash
of ’79” and “ The Silver Bears.” A n­
other speaker of note will be Allan
Thom as, vice president, Crocker
Bank and past-president of the Air­
craft Finance A ssocia tion . Mr.
Thomas will speak on “ Aircraft Fi­
nancing and the Commercial Banks
The two-day seminar will be held at
the Lincoln Center Plaza Hotel in
Oklahoma City. Attendance is re­
stricted to representatives of finan­
cial institutions and leasing company
loan officers. Reservations may be
made by telephoning Insured Air­
craft Title Service, Inc. on its toll free
number, (800) 654-4882.


South Dakota
G. H. Waltner, pres., Freeman
J. M. Schwartz, exec, mgr., Pierre

Citibank Card Division May Move to S. D.
OUTH DAKOTA may be select­
ed as national headquarters for
the credit card operations of Citibank
(New York State), N.A., a subsidiary
of Citicorp, New York. The current
headquarters is located at Huntington, L .I., New York.
F acing the restrictions of New
York’s usury law, which limits credit
card interest charges to 18% on the
first $500 of credit card loans and
12% on the remaining balance, Citi­
bank officials began searching re­
cently for a new site in a state with
more liberal usury limits when the
New York state legislature did not
take action on a usury bill. South
Dakota and Missouri were the two
states selected. South Dakota usury
limits on credit cards are 24 % on the
first $500 and 18% on the balance; in
Missouri the interest rates are 22%
on the first $1,000 and 10% on the
Headed by Charles E. Long, senior
vice president, a delegation of Citi­
bank officials flew to Pierre, S .D ., the
week of March 10 to visit with G ov­

Bank Changes Announced at
Pierre Nat’l. and Branches
Several changes affecting area
banks have been approved by federal
regulatory agencies effective April 1.
The Pierre National Bank has
become Bank West, N.A., and has
acquired the Vivian State Bank of
Vivian, and the Badlands State Bank
of Kadoka and Belvidere as branches.
Bank West now has two offices in
Pierre and one each in Vivian, Belvi­
dere and Kadoka.
The Pierre N ational Bank was
founded in Septem ber, 1889, two
months prior to South Dakota be­
coming a state. The bank in Belvidere
was founded in 1907. The Vivian
State Bank was organized in 1909 and
the Kadoka bank opened in 1948.
The new bank will be directed by
Federal Reserve Bank of St. Louis

ernor W illiam Janklow and state
legislative leaders. They presented
their proposal to move the national
headquarters to Sioux Falls, with a
potential of 2,500 j obs. G overnor
Janklow scheduled a meeting with
executive council members of the
South Dakota Bankers Association
to determine banker feelings about
the proposal and any possible adverse
effect such a move would have on
South Dakota banking.
State officials from the legislature
and banking commissioner’s office
prescribed limitations which would
include a prohibition against receiv­
ing deposits or engaging in any retail
banking. After concurrence of the
S D B A executive com m ittee, the
legislature passed enabling legislat­
ion and the Governor immediately
signed the legislation into law. The
enabling legislation is in the form of
an amendment to South Dakota’s law
governing non-resident bank holding
company operations within the state.
Upon their return to New York
from South Dakota, Citibank officials
Charles H. Burke, president. He has
served as president of The Pierre Na­
tional Bank since 1972 and is chair­
man of the other banks. William V.
Fischer will be the executive vice
president for all the banks and
responsible for daily operations. The
branch in Vivian will be managed by
David Moore and the branches in
Kadoka and Belvidere are managed
by Joe Leutenegger, Kadoka.
The new bank is a regional financial
institution and the firm needed a
name to suit its expanded service area
as well as meet any growth that
might present itself in the future.
BankWest will have numerous
advantages for all the offices, includ­
ing an increase in the lending limits
available to any one custom er,
expanded and updated data process­
ing, more training with specialization

prepared an application to the Comp­
troller of the Currency and the Fed­
eral Reserve Board for approval of a
national bank charter, according to
Eugene Cassidy, vike president, con­
sumer services group of Citibank.
Company officials also met with the
New York Governor and state legis­
lative leaders, he said, to review the
proposed m ove. A lth ou gh sym p a­
thetic to the credit card firm’s stated
need for usury relief, the legislature
apparently continues reluctant to
take any action in this election year.
Mr. Cassidy told the N o r t h w e s t ­
e r n B a n k e r that the national charter
application is in process and if the
New York legislature adjourns with­
out having taken upward remedial
action on the usury limits then Citi­
bank will proceed immediately with
relocation of its national headquart­
ers in Sioux Falls.
Even if the national credit card
operation center should not be moved
to Sioux Falls for any reason, Mr.
Cassidy stated, some division of Citi­
bank will be relocated in Sioux Falls,
with a minimum work force of 300
persons. Citibank has collection
offices in Chicago, Atlanta and San
Mateo for its credit card operations,
he noted, and some of the consumer
offices of these locations could be
packaged and located in South
Dakota. Citicorp’s subsidiary, Na­
tionwide Finance, currently has two
offices in South Dakota, one in Sioux
Falls and one in Rapid City. Citi­
corp’s principal subsidiary is Citi­
bank, N.A., located in Manhattan,
and is the nation’s second largest
for employes and increased services
in some areas.

Tapped at De Smet Bank
The Peoples State Bank, De Smet,
has announced three advancements.
D. Wayne Meyer has been promoted
from vice president to senior vice
president; Arden Nelson from loan
officer to loan officer and assistant
cashier, and Mary Jo Robish from
teller to assistant cashier.

Two Sr. VPs Named at Pierre
E. Hawk, president of the First
National Bank in Pierre, has an­
nounced the appointm ent of Dan
Davis and Michael T. Denton to the
position of senior vice president.
Mr. Davis has been with the bank
Northwestern Banker, April, 1980

for seven years, three of which he was
in charge of instalment loans. He is
now in charge of the bank’s entire
loan area. Mr. Denton, named to
head the operations department, has
been with the bank for three years.
He is a CPA and was formerly the
bank’s internal auditor.

Gross Designated CCL
David D. Gross, senior vice presi­
dent and trust officer at the First
D akota N ational Bank, Yankton,
recently received word from the Na­
tional Commercial Lending School, a
subsidiary of the American Bankers
A ssocia tion , that he successfully
completed all necessary requirements
to receive the designation of Certified
Commercial Lender.

Announces Officer Election
T. M. Reardon, president of the
Western Bank, Sioux Falls, has an­
nounced the elec­
tion of Richard
D. Groeger as a
c o n s u m e r l oa n
M r. G r o e g e r
joined the bank
in 1978 as a con­
sumer loan coun­
selor. He is a
g r a d u a t e of
South Dakota
State University with a BS in agricul­
tural science. Mr. Groeger also man­
ages the Farm Plan Finance program
of the bank.

Staff News from Cut Bank
Clarence (Snuff) Frisbee recently
joined the First National Bank of Cut
Bank as head of the real estate de­
partment. He was formerly with the
Kalispell Savings & Loan Association
as manager of the Cut Bank office.
Allen Berkram was elevated from
assistant cashier to assistant vice
president and agricultural represen­
tative. He has been with the bank for
six years.

Missoula Bank Promotes Two
Robert F. Burke, president of the
First National Montana Bank of Mis­
soula has announced two promotions.
Michael F . Pomeroy, assistant vice
president and trust officer, was
named vice president and trust
officer. He joined the bank in 1976
and has a BS degree in business ad­
ministration from the University of
Leslie Blazevich was promoted to
assistant vice president and assistant
manager of the instalment loan de-

partment. A University of Montana
graduate, he joined the bank in 1966.

Union Loses in Montana
The United Food and Commercial
W orkers International Union lost
overwhelmingly a unionization vote
at a branch of First National Bank of
Anaconda-Butte, M ont., last month.
However, the union will challenge the
results, charging unfair labor pract­
The UFCWIU, which lost by an
18-4 margin in the 25-member unit,
has gone to the National Labor Re­
lations Board with charges that the
bank influenced the vote by threats to
replace workers who voted to union­
ize, to refuse to bargain with the
union, and to take away benefits if
the bank was unionized.
The union is also charging that the
bank influenced the vote by granting
two pay raises since September and
giving employes additional benefits.

Tapped at Hamilton Bank
C. Hollingsworth, president of
the Citizens State Bank, Hamilton,
has announced the promotion of K.
Fred Reeves from assistant cashier to
assistant vice president.
All other officers were re-elected to
their positions at the bank’s annual
meeting in January.

Bank of N. Dakota Reports
Farm Loan Totals, Update
The Bank of North Dakota has an­
nounced it loaned a record $1,324,000
to beginning farmers in February.
Through the Beginning Farmers Pro­
gram, the bank has funded a total of
$8,110,950 to 146 beginning farmers
since the program’s inception in 1978.
The bank’s special loan division
reports that $10,980,302 has been
loaned to 116 farmers since the State

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Land Department loan pool (a $45
million pool) was established in 1977.
Ernest Pederson, vice president of
the special loans division, said that
these loans are lim ited to actual
North D akota farmers and are
secured by first mortgages on North
Dakota farm and ranch land.

Appointed at W illiston
Marian Dunn has been appointed

instalment loan officer at the Ameri­
can State Bank & Trust Co. of Willis­
ton. Mrs. Dunn has been with the
bank 13 years and has worked in
loans, real estate and new accounts as
a personal bank representative.

First Bank-Minot Will
Observe 75th Birthday
First Bank-Minot will celebrate its
75th anniversary with a month long
observation in May with special
activities scheduled for the week of


Ourle r iT
to service is
your SourceS of
w T
strength Iin
Ip n f
” 11^
^ lliy *

First of Denver is the source you can
depenel on
° for prompt, decisive answers and
action on your loan participation requests,
for the newest, most comprehensive
cash management systems,
for an availability schedule which sets
the standard in the Rocky Mountain
for highly skilled bankers who make it
their business to anticipate changes in thè
agri-business and metro markets that can
affect your bank and customer needs.
And we respect and protect the
integrity of your customer
So consider the Source.




think First. First of Denver

The First National Bank of Denver, Correspondent Bank Department, P.O. Box 5808 T.A. Denver, Colorado 80217
(303) 893-2211 Member First National Bancorporation
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980

May 12-16, according to Arnie Braaten, president.
The bank received its charter from
the Comptroller of the Currency in
1905 under the name of Union Na­
tional Bank. Union National joined
First Bank System in 1930, and
officially changed its name to the
First Bank of North Dakota (NA)Minot in 1977.
S taff m embers m oved into the
present location at 17 First Ave. SW
in 1963, and a new drive-in facility
was added in 1975.


G. W. Mcllvaine, pres., Saratoga
M. C. Mundell, exec, d ir., Laramie

Promoted at Rock Springs
Robert V. Preston, president of the
First W yom ing Bank, N .A .-R o ck
Springs, has announced the promot­
ion of Judy Harper to assistant vice
president in the instalment loan de­
Mrs. Harper has been with the
bank for five years and has been
associated with Wyoming Bancorporation for the last eight years.

New President, Officers at
American Nat’l., Cheyenne
Jack Crews has been elected presi­
dent of the American National Bank
of Cheyenne, it was announced by D.
D. L. Farmer, pres., Rocky Ford
L. Day Jr., president of the American
Bank Corporation.
A Cheyenne native, Mr. Crews
Richard A. Kirk Elected
the University of Wyoming
Chairman of United Bank
and graduated from the University of
Directors of the United Bank of Arizona with a bachelors degree in
Denver have elected Richard A. Kirk science and agriculture. He is a
chairman of the
form er member o f the W yom in g
board. He will
House of Representatives.
continue as pres­
After several years of banking ex­
ident and chief
perience in W yom in g, he join ed
executive officer
American National in 1976 as vice
and, as ch air­
man, s u c c e e d s
In other staff news, PaulS. Gordon
John D. Hershwas appointed a vice president. The
ner who retired
manager of the commercial real estate
from the bank in
market, he joined the bank in 1973.
He is a math and finance graduate of
Mr. Kirk, 49,
joined the bank in 1958. He has the University of Utah.
UBD also announced the appoint­
advanced through various officer
positions, being named a senior vice ments of Gregory L. Glissman and
president in 1969, executive vice Alan C. Gregory to commercial bank­
president in 1974 and president in ing officer; K irby D. M artin,
1977. Last July, in anticipation of property management officer, and
Mr. Hershner’s retirement, he was Denise Bryant, marketing officer.
named chief executive officer.
Mr. Hershner has completed a 34year career with United Bank and its 1st National, Fort Collins
predecessor, United States National
Bank. He specialized in investments Tells of Six Promotions
Tom J. Gleason, president of the
and commercial lending prior to be­
coming executive vice president in First National Bank, Fort Collins,
1966, president in 1969, chief has announced six promotions.
Harleigh C. Howerton has been
executive officer in 1971 and
promoted to senior vice president of
chairman in 1974.
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

president of public relations and
advanced to senior vice president and
cashier in 1979.
Betty M. Oyler was promoted to
vice president and cashier. She had
several years banking experience in
Rock Springs and Rawlins prior to
joining American National in 1977.
Max “ Tony” Minnick, promoted
to vice president, attended the U.S.
Air Force Academy and graduated
from Southern Illinois U niversity
with a BS degree. He had six years of
data processing experience prior to
joining the bank in 1976.

Named at 1st Nat’l., Laramie
J. Haines, president and chief
executive officer of The First Na­
tional Bank of Laramie, has an­
nounced the promotion of Daniel G.
Furphy to assistant vice president
and controller.
Mr. Furphy joined the bank as a
student intern in 1974 and fulltime in
1976. He has served as auditor and
controller. He received a BS degree in
finance in 1975 and an MBA in 1979
from the University of Wyoming.
the new ly-created consum er loan
division. He will be responsible for
instalment lending and credit card
operations, consum er lending and
leasing. Mr. Howerton joined the
bank in 1952 and has a BS degree in
business administration from Denver
Wesley H. Sargent has been pro­
moted to vice president of marketing.
He will handle the business develop­
ment department and its retail bank­
ing center. Mr. Sargent, with the
bank since 1974, has a BS degree
from Colorado State College.
Virginia Morley, promoted to vice
president of operations, is respons­
ible for teller operations, bookkeep­
ing, proof, drive-up and facility
operations. She joined the bank in
Cathy Schott has been promoted to

Colorado News

assistant vice president and manager
v o f the bankcard departm ent. She
joined the bank in 1967 and has
served in a number of capacities.
Trudy M. Threthewey, now assist­
ant vice president and operations
manager of the mortgage loan de­
partment, joined the bank in 1977.
She has a BA degree in political
science from the U niversity of
Wyoming and is a CPA.
Bryant M. Pulley, now an assist­
ant vice president in the commercial
loan department, joined the bank in
^ 1977. Form erly with Bank of
America, he has a BS degree from
Brigham Young University and an
MBA from the University of Cali­


Elected as CNB Director

Manages Industrial Bank

Robert L. Kropf has been elected a
director of Colorado National Bank,
Denver, according to Bruce Rock­
well, chairman. Mr. Kropf is senior
vice president of the banking depart­
ment at Colorado National.
He joined the bank in 1959 as a
trainee and was assigned to various
divisions of the bank until joining the
credit area in 1961. In 1974 he became
responsible for the commercial lend­
ing portfolio. He has a BS degree in
business adm inistration from the
University of Colorado.

Dianne M. Benzley has been
named general manager of a new
industrial bank which opened last
month in Aurora’s Buckley Square.
Central Industrial Bank is a sub­
sidiary of B aldw in-U nited Corp.
Other Baldwin-United financial sub­
sidiaries include Empire S a v in g s, •
Central Bank of A urora, Central
Bank o f D enver and 10 other
Colorado banks.
Ms. Benzley was previously with
Central Bank of Denver where she
served as a retail lending officer.

Holding Company Reports
Eight Staff Promotions
Directors of First National Bancorporation, Inc., Denver, have an­
n o u n c e d e ig h t
officer p ro m o t­
ions, including
the election of
Gary D eFrange
to vice president.
Mr. DeFrange,
director of man­
power planning
and employment,
joined The First G. J. DeFRANGE
National Bank of Denver as manage­
ment trainee in 1970. He later worked
in the personnel department until his
transfer to Bancorporation in 1977.
He is a 1970 graduate of the Univer­
sity of Colorado with a bachelors de­
gree in business.
The B ancorporation board also
named three assistant vice presidents
— FellH. Stubbs, H. Allen Rheem Jr.
and Linda Sanders.
Mr. Stubbs, also assistant treas­
urer, has been with Bancorporation
over seven years and is responsible
for management of short-term assets
and liabilities. Mr. Rheem, who re­
cently transferred to Bancorporation
after over seven years with First of
Denver, directs management train­
ing. Ms. Sanders, a former employe
of First of Bear Valley, joined the
operations staff last year as special
projects coordinator.
Other promotions reported by the
Bancorporation board include Nancy
Henning, operations officer; Barbara
Danbom, financial planning officer,
and Thomas C. Tiffany and Matthew
Ghourdjian, deputy auditor.
Federal Reserve Bank of St. Louis

The United Bank o f D enver Correspondent
B anking Group believes in being innovators in
our industry. N ot imitators.
A n d the fa ct that 11 different banks around the
state have presidents that have come fro m our
ranks bears out our philosophy.
I f you re a bank that needs a bank, give
our Correspondent B anking Group a call at
861-8811. W ho knows, you m ight talk to a fu tu re

Oq United Bank of Denver
N ational Association
Correspondent Banking Group
1 7 4 0 Broadway Street
Denver, Colorado 8 0 2 1 7
Phone 3 0 3 -8 6 1 -8 8 1 1 M em ber F D IC

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


83rd Annual

Nebraska Bankers
Association Convention

May 4-6
Orpheum Theatre— Hilton Hotel
EVERAL delightful dishes, including meaty main courses and lighter
entrees, will be served up at the 83rd annual convention of the Nebraska
Bankers Association May 4-6 in Omaha. The theme this year is “ A Banker’s
Menu for 1980.” As in the past, the Sunday evening show and the Monday
business sessions will be held at the Orpheum Theatre. All other activities,
including the Tuesday morning business session, will be located at the Hilton
Nebraska bankers and spouses will be treated to “ A Convention Appetizer”
Sunday evening with dinner followed by a stage show featuring musician Pete
Fountain and the University of Nebraska Scarlet & Cream Singers. Several
noted speakers from the fields of banking, government and business across
the country are slated to address the various business sessions. The program



Sunday, May 4
10:00 Registration opens

NBA Past Presidents Meeting
NETS, Inc. Board of Directors Meeting
Hospitality rooms open
First dinner seating for “ A Convention Appetizer”
Second dinner seating for “ A Convention Appetizer”
‘ ‘A Convention Appetizer” Stage Show featuring Pete Fountain and
the University of Nebraska Scarlet & Cream Singers.
9:30 Hospitality rooms open
Monday, May 5

7:30 Registration opens
8:00 Continental breakfast
9:00 Opening general session—Invocation—Welcome
C. C. Hope Jr., president, American Bankers Association, and vice
chairman, First Union National Bank, Charlotte, N.C.
Clayton Yeutter, president, Chicago Mercantile Exchange.
10:30 Coffee break
10:45 General session continues
Mick Delaney, sales and communications consultant, Seattle, Wash.
Paul J. Amen, director of banking and finance, State of Nebraska.
Wayne Dobson, Abbott Professor or Banking, University of NebraskaLincoln.
Noon NBA Awards Luncheon
U.S. Rep. John J. Cavanaugh (D-Neb.), Second Congressional District,
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Exec. Vice Pres.



Nebraska News








1:45 NBA Annual Meeting
Financial report—Roger M. Beverage, NBA executive vice president,
President’s report—James W. McBride, NBA president, and presi­
dent, First National Bank & Trust Co. in Aurora.
NBA elections
Incoming president’s report—Jerry E. Roe, NBA president-elect, and
president and chief executive officer, Bank of Bennington.
American Bankers Association report—Harold E. Larmon, president,
The First National Bank of McCook.
American Bankers Association Council election
3:00 NETS, Inc. Annual Meeting—S. M. Wolbach, president, Nebraska
Electronic Transfer System; chairman and chief executive officer, First
National Bank, Grand Island.
3:15 Coffee break
3:30 State Legislative Panel. Moderator—William B. Brandt, general
counsel, Nebraska Bankers Association, Lincoln.
4:30 Hospitality rooms open
7:00 Convention Banquet
Speaker—Jim Tunney, National Football League Referee No. 32.
9:00 Hospitality rooms open
Tuesday, May 6


Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

AM .
8:15 Continental breakfast
9:00 Closing general session
George Morvis, president, Financial Shares Corp., Chicago, 111.
“ Nebraska’s Competitive Financial Picture’ ’ —Roger M. Beverage,
NBA executive vice president.
10:30 Coffee break
10:45 General session continues


Specialists in
fulfilling your every
correspondent need...
Vice President

Vice President

Correspondent Bank Officer

Vice President

Correspondent Bank Officer

Assistant Vice President

Correspondent Bank Officer

llllllilillllllll FIRST N A T IO N A L L IN C O L N
13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Nebraska News

Norman Dean, president, United Bank of Greeley, Colo.
PaulNadler, professor of business administration, Rutgers University.
Noon Adjournment.

A special spouse’s program Monday will feature a tour of historical
places around Omaha. The bus will leave at 1:45 p.m. from the Hilton
and the event includes a tea at the General Crook Home, one of the
locations on the tour.

You Will See Them at the 83rd Annual
Nebraska Bankers Convention May 4-6
HE following metropolitan bank­
ers, investment people and serv­
ice equipment dealers have indicated
they will be attending the 83rd annual
Nebraska Bankers Association Con­
vention May 4-6 in Omaha:


Security National Bank: John A.
Edmiston, senior vice president, and
Steve Sheridan, assistant vice presi­
United Bank of Denver: Darcy L.
Myers and Ronald D. Edwards, com­
mercial banking officers.

First National Bank: Catherine D.
Kansas City
United Missouri Bank of Kansas
Saccany and Jerome R. Wagner, loan
City, N.A.: Richard C. King, presi­
dent and chief administrative officer;
William J. Bolt J r., vice chairman of
Central Bank & Trust Co.: Don
the board; E. L. Burch, senior vice
Echtermeyer and Bill Tumelty.
president, and Richard H. Muir, vice
First National Bank: George B.
A cker, senior vice president, and
Terrance J. Tangen and Harry
First National Lincoln: Gary L.
Devereaux, assistant vice presidents.

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Bieck, vice president and manager;
Craig Wanamaker and William Edgecomb, vice presidents; Steve Ander­
son, assistant vice president; Mark
Zaback, Marv Hefti, Mark Hahn and
K athy V otaw , correspondent o ffi­
cers, and Charles Ellis, operations
National Bank of Commerce:
James Nissen, president; Tom Pot­
ter, senior executive vice president;
Robert Hans, Loren Anderson and
Dana Hendricksen, executive vice
presidents; Wilbur Baack, senior vice
president; Roy Otte, Tom Stuckey,
Dennis Stelzer, Richard W ible,
Duane Nelson, Robert Deahn and
Brad Korell, vice presidents; Steve
Kness, Max Callen and Dan Ander­
son, assistant vice presidents; Billie
Kent, bank investm ent officer;
W illiam L igo and D ave L ebsack,


O R CH ID S, r
Schweser S
are always
in season
We will be presenting orchids to the ladies at the
convention again this year, as we have for the past 21
years. Some traditions never change. Like the
professional service you receive from the Schweser
Company. We have specialized in tax-free municipal bonds
for more than 40 years, handling Vz of all municipal issues in
Nebraska last year. When it comes to tax-free income you can put
your trust in the Schweser tradition.

See us at the Hilton
in the Kansas Suite

Vice President


Assistant V.P.

WM. (Bill) ABTS
Assistant V.P






Schweser Company


208 So. 19th Street • Om aha, Nebraska 68102 • (402) 344-4611 • TOLL FREE 800-642-8438
Member of the Securities Investor Protection Corporation SIPC
Federal Reserve Bank of St. Louis

cÜ §9 Ip
I v
Northwestern Banker, April, 1980


Nebraska News

executive vice presidents, NBC Com­
puter Services Corp.
First Bank, Minneapolis: Glen R.
Walters, vice president, and Dan G.
Simkins, assistant vice president.
Sioux City
First National Bank: Richard C.
Taylor, president; Charles H. W al­
cott, executive vice president; Gary
W. Stevenson, vice president, and
Doug Schmidt, correspondent bank­
ing officer.
Bank Equipment and Other Firms
Bank Building Corp.: Steve Kraaz
and Chet Krouse, consultant services
Chiles, Heider & Co.: Bill B.
Beavers, David U. Van Metre, James
R. Foley, Fred H. Douglas, Roy G.
Leibee, Tad R. Dunham, Jon L.
Narmi and William B. Berryman.
Daktronics, Inc.: Dave Walkenbach, region manager, and Dennis
Pohl, district sales manager.
Financial Institution Services,
Inc.: Jerry Debner, assistant to the
First Mid-America, Inc.: Charles
J. Burmeister, president; Robert D.
Northrup, executive vice president;
John J. Frenking and Mike Van

John Narmi

Ken Ferrarini

H orne, senior vice presidents; A1
Ternus and Ray Sharpe, vice presi­
dents, and Jack Foley, Merrill John­
son, Gary Fenster, Jack Clark and
Tom Poggemeyer.
Lincoln Benefit Life Co.: Steve
Sutton, vice president.
Modern Banking Systems, Inc.:
R obert Friend, president; Dan
Cronin, vice president, and Joe Nel­
son, marketing representative.
Mosler Safe Co.: Bill Pierce, sales
Omaha Financial Life Ins. Co.: Bill
Murray, regional manager.
Robert E. Schweser Co., Inc.:
W illiam M arch, president; Frank
Williams, executive vice president;
Pat Rensch, Bob Roh and Harry Coe,
vice presidents; C. W. Poore, secre­
tary-treasurer; W ayne Rasm uss,
assistant secretary-treasurer; A. W.
Abts, assistant vice president, and
Dave Dunn, Mike Mullen and Mike
United States Check Book Co.: C.
B. Batchelder, president; Ed Batchelder, sales manager, and Bernie
Burger, Rick Clabaugh, Bob Ellis,
Dick Hansen, John Kohring, Kent
Miller and Ron Skartvedt, represent­

Jim Kelly

Roy Leibee

First National, Hastings
Offers ‘Reward Account’
Norm Nackerud, president of the
First N ational Bank, H astin gs,
reports that the bank is offering con­
sumers a new account called the Re­
ward Account.
Consumers who request Reward
Accounts and who maintain a $2,000
minimum monthly balance in an In­
stant Interest Savings Account will
be rewarded with free personalized
checks, service charge free checking,
free travelers cheques, free cashiers
checks, a discount on safe deposit
boxes, a free Instant Cash Card and a
Reward Account identification card.

Changes at Gordon State
Two promotions were announced
recently at the Gordon State Bank.
T im othy E. Keller was prom oted
from assistant cashier to assistant
vice president, and Norma L. Davis,
assistant cashier, was named cashier.
Three new members were elected to
the board o f directors — Kenneth
Claussen, a rancher from Martin,
S.D.; Michael T. Varn, a Gordon
attorney, and W illard M erchen,
Chevrolet dealer, Gordon.

Tad Dunham

Jeff Moran


> : imm
Bill Carver

Fred Douglas

Bill Beavers


uW /m
Jim Foley

Dave Van Metre

See You at the Nebraska Convention.

Chiles, H eider &Co., I nc.
M E M B E R N E W Y O R K S T O C K E X C H A N G E , INC.
1300 W O O D M E N T O W E R
OM AHA, N E B R A S K A 68102 ■

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

(402) 3 4 6 - 6 6 7 7




You learn a lot about
Correspondent B an k in g
in 136 years...
Experience is one o f the most important assets o f our Correspondent
Banking Division. The nine officers o f this division have a total o f 136
years o f specialized experience in dealing with the unique problems and
goals o f correspondent banking. And our people give you the kind o f
service you need and expect to build for the future.
Call us and find out what 136 years o f experience can do for your bank.
W ilbur Baack
S enior V ice P resid en t

D uane N elson
V ice P resid en t

T om S tu ck e y
V ice P resident

B ob D eah n
V ice P resid en t

Brad K orell
V ice P resid en t

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A ssistan t V ice P resid en t

M ax Callen
A ssistan t V ice P resid en t

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C o rre s p o n d e n t B ank O fficer

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NBC Center, 13th & O St., Lincoln, Nebraska 68508
Telephone (402) 472-4321, WATS 800-742-7317
Federal Reserve Bank of St. Louis

Northwestern Banker, April,

announced the
election of Vollis
E. Summerlin to
the board of di­
M r. Summer­
lin is a 1962 grad­
uate o f Wake
Forest U niver­
sity in North
C a r o l i n a . He v. E. SUMMERLIN
joined the bank
in 1974 as a second vice president in
the instalm ent loan division , was
promoted to vice president in 1976
and division head in 1979.

ENTER Bank West sponsored a
half-price sale of the new Susan
B. Anthony dollars to promote usage
of the coins on Susan B. Anthony’s
160th birthday February 15.
R epresentatives of the Omaha
Branch of the Federal Reserve Bank
were on hand when the drive-in
opened at 7:30 a.m., including Don
Mahan, assistant vice president;
Barney Deden, personnel manager,
and Douglas Arthur, manager of the
money department.
The first customer through the
drive-in window received a bonus of
10 Susan B. Anthony dollars. The
sale limited dollars to one per person,
according to Barbara Nielsen, assist­
ant vice president and manager of
Center Bank West.
Customers were invited to come
inside the lobby and have coffee,
punch, rolls and cookies. Various
Center Bank officers served as hosts
and hostesses during the promotion.
Two off duty policemen helped direct
Over 500 Susan B. Anthonys had


been sold by noon. At the end of the
day, 1,893 had been sold. People who
opened new accounts were given a
bonus of $5. During the day 157 new
accounts were opened, which far
exceeded the bank’s goal.
Center Bank West also featured
the new Instant Cash Machine in the
east outer lobby, which provides cus­
tom er access day and night. A
costumed Susan B. Anthony demon­
strated the use of the machine. Users
received a free deck of Instant Cash
playing cards. “ Buddy Bear,’ ’ the
Banco mascot, was also on hand
during the day.
“ We consider this prom otion a
huge success. There was a lot of
traffic, good publicity and visibility
for both Center Bank West and the
Susan B. A nthony d o lla rs,’ ’ said
David C. Koenigsman, senior vice
president of Center Bank.
* * *
The executive committee of the
First National Bank of Omaha has

PROMOTING the Susan B. Anthony dollar at Center Bank West were, from left: Barbara
Nielsen, a.v.p. & mgr.; Beverly Kuszak as Susan B. Anthony, Buddy Bear and Douglas
Arthur, money dept, mgr., Omaha Branch, Federal Reserve Bank.

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Om aha department store executive
Alan Baer and Phoenix attorney
Peter Kiewit Jr., have been elected to
the board of directors of The Omaha
National Bank, according to John D.



Woods, chairman and chief executive
Mr. Baer, board chairman and
chief executive officer of J.L. Brandeis & Sons, Inc., succeeds John D.
Diesing on the bank’s board. Mr.
Diesing retired recently as vice presi­
dent and secretary of Brandeis.
Mr. Kiewit succeeds Gretchen
Swanson Pullen, board chairman of
Swanson Enterprises, Inc., on the
bank’s board. Mrs. Pullen resigned
as an Omaha National director after
being elected to the board of the
Omaha Branch of the Federal Re­
serve Bank of Kansas C ity. Mr.
Kiewit is a senior partner in the
Phoenix law firm of Rawlins, Ellis,
Burrus & Kiewit.

Warren L. Stewart has been named
senior vice president of the United
States N ational Bank o f Omaha,
Donald J. Murphy, chairman and
chief executive officer, announced
last month.
Ejected vice presidents were Lee J.
Bachand, Duane A. Ferguson, John
L. Lewis and Kenneth H. Petersen.
Robert E. Billmeyer and John A.

Jim Flodine, Don Ostrand, Ralph Peterson, Bob Brown, George McFadden, Merv Aegerter.

Trust your correspondent
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These superb profes­
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to meeting all your
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firstnational bank
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Federal Reserve Bank of St. Louis

In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at
800-228-9533. Member FDIC.


Nebraska News

Hoffman have been prom oted to
second vice president.
Mr. Stewart, 36, joined the Omaha
Banco Banks in
June, 1977, as
v ic e p r e s id e n t
and director of
human resources.
He was in charge
of coordin atin g
and p e r s o n n e l
a d m in istra tion
for U.S. Nation­
al, Center Bank
and N orth w est­
ern National Bank. He now coordi­
nates the personnel activities for all
Nebraska Banco Banks.
A native of Woodward, Okla., Mr.
Stewart received both an undergrad­
uate and graduate degree in finance
and m arketing m anagement from
Oklahoma State University. He was
director of em ployee relations for
P ittsbu rg Plate G lass Industries,
Inc. of Kokomo, Ind., before joining
Mr. Bachand, 36, joined U.S. Na­
tional in 1965 as a management
trainee following graduation from the
University of Nebraska-Lincoln with






ed second vice president in May,
Mr. Ferguson, 45, joined the bank
in 1954 as a teller and later became in­
volved in various commercial lending
and credit functions. In 1965 he was
named assistant vice president in the
commercial loan department, named
real estate banking officer in 1972,
and in 1979 was elected second vice
Mr. Lewis, 53, joined U.S. Nation­
a degree in business administration. al in 1970 as a correspondent banking
In 1967 he was named assistant officer following 19 years of previous
cashier involved in data processing banking experience as president of
services and was promoted to corre­ the Bank of Peru in Peru, Neb. In
spondent data processing officer with 1979 he was promoted to second vice
the correspondent banking depart­ president in the correspondent bank­
ment in 1975. Mr. Bachand was elect- ing department.
Mr. Petersen, 33, has held various
data processing and systems posi­
tions since joining the bank in 1970.
In October, 1979, he was elected
second vice president and operations
Mr , Billmeyer, 30, joined the bank
in 1974. He held various systems and
operations p osition s, was later
elected opeations officer and in
January, 1979, was promoted to in­
vestment officer in the investment
Fiscal Agents
Mr. H offm an, 36, held various
data processing and systems posi­
Listed and Unlisted Securities
tions after joining the bank in 1969.
In May, 1978, he was named loan
Investment Banking
accounting manager in the loan serv­
ices department and in November,
1978, was elected loan services

Serving the Midwest...
• Municipal Bonds •
• Corporate Bonds •
• Government
Agency Bonds


Municipal Bond Department 100 Continental Building
19th & Douglas Omaha, Nebraska 68102
Call collect 402-444-1900

Firsr Mid America


Member New York Stock Exchange. Inc
and other P rincipal Stock and C om m odity Exchanges

Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic •
Cedar Rapids • Des Moines • Fort Dodge • Marshalltown • Chicago •
Kansas City • Wichita
Federal Reserve Bank of St. Louis

Promoted at Brainard
G. Novak, president of the Bank
of Brainard, has announced two pro­
LaVern J. Fortik, who has been
with the bank since 1966, was pro­
moted from vice president to execu­
tive vice president.
Dorean L. Kastl, who joined the
bank in 1968, was promoted from
cashier to vice president and cashier.

Nebraska News


College Honors McBrides
James W. McBride, president of
the Nebraska Bankers Association
and the First National Bank & Trust
Co. in Aurora, and his wife, Dorothy,
were among three couples who re­
ceived the Distinguished Cross of the
Order of St. Benedict from Benedict­
ine College last month. The award
recognizes people who have demon­
strated outstanding service to the
college and community.


1st Nat’l. Kearney Reports
Promotions, New Directors
The First National Bank & Trust
Co., Kearney, recently announced
the election of two officers and two
new members on the board of direct­
Mel Wiens has been elected assist­
ant vice president of agriculture. He
joined the bank in 1976 as farm man­
ager and was named agricultural loan
officer in 1978. He has a BS degree in
agronom y from the U niversity of
R. Stephen Guenin, named operat­
ions officer, will be in charge of the
on-line system , the daily m oney
position and building maintenance. A
graduate of Kearney State College
with a BS degree in business admin­
istration and economics, he joined the
bank in 1978.
The new board members are Vin­
cent Wolford, a Kearney area farmer
engaged in raising corn and feeding
cattle, and Eldon E. Chamberlin,
president of the Kearney Concrete

Top Management Changes
Told at Bank of Norfolk
Raym ond G. T iedje has been
named president of the Bank of Nor­
folk. He had been executive vice
president. The form er president,
Duane W. Acklie, has been elected
chairman of the board.
James H erbolsheim er, form erly
vice president, has been elevated to
senior vice president, and W. Spencer
M adden, form erly assistant vice
president, was named a vice presi­
dent. Roberta Richter was appointed
an assistant cashier.
The board of directors has an­
nounced that details are being com­
pleted for con stru ction o f a new
facility to be built this year on the
corner of Fourth Street and Benjamin
Federal Reserve Bank of St. Louis

OUR 1980

GLENN M. ADAIR, Exec. V.P. & Cashier, Springfield State Bank, Springfield,
Nebraska • WILLIAM T. APKING, President, State Bank of Alexandria,
A le x a n d ria , N ebraska • STEPHEN BEACHLER, V ice P re s id e n t, F irs t
National Bank, 202 West 3rd Street, Grand Island, Nebraska • LARRY L.
CALLEN, Exec. V.P. & Cashier, First National Bank, Ogallala, Nebraska •
JAMES V. CHITWOOD, President, Cambridge State Bank, Cambridge,
Nebraska • M. W. DUNLAP, President, Farmers State Bank, Douglas,
Nebraska • DONALD E. DWORAK, Exec. V.P. & S eniorTrust Officer, Packers
N a tio n a l Bank in Om aha, O m aha, N ebraksa • DONALD W. HARDIN,
President, Farmers & Merchants Bank, Edison, Nebraska • RUSSELL E.
KENDALL, Chairman of the Board, 2610 North 51 st Avenue, Omaha, Nebraska
• LADDIE J. KOZENY, Vice Chairman of the Board, Packers National Bank in
Omaha, Omaha, Nebraska • RONALD J. KREJCI, President & Trust Officer,
Schuyler State Bank, Schuyler, Nebraska • R. E. MclLLECE, President,
Lawrence State Bank, Lawrence, Nebraska • PAUL L. MERKER, Real Estate
Broker, Merker Realty Company, 2314 “ L” Street, Omaha, Nebraska • JAMES
R. OWENS, President, Nebraska State Bank, Weeping Water, Nebraska •
THOMAS F. RIEDMILLER, Exec. Vice President, First State Bank, Randolph,
Nebraska • JOE ROH, JR., Vice President, First National Bank, Tekamah,
Nebraska • GUY L. SAUNDERS, President, Packers Management Company,
Lincoln, Nebraska • CLARENCE H. SIXEL, President, State Bank of Scotia,
Scotia, Nebraska • RUDY F. STOYSICH, Stoysich House of Sausage, 2532
South 24th Street, Omaha, Nebraska • RODNEY VANDEBERG, President,
C.E.O. & Trust Officer, First National Bank & Trust Company, 1701 Stone
S tre e t, F a lls C ity , N ebraska • DENNIS R. W OOD, P re s id e n t, Packers
National Bank in Omaha, Omaha, Nebraska • GARY D. WRAGE, President &
Chairman, Roseland State Bank, Roseland, Nebraska

Truly, A Bankers Bank


National Bank
24th & L • 402/731-4900
Omaha, Nebr. 68107

Member FDIC

Northwestern Banker, April, 1980


Nebraska News

Raymond G. Tiedje, president,
Bank of Norfolk: It is difficult to be
optimistic at this
time in view of
extrem ely high
date last year’s crops before banks interest rates,
will lend m oney for this y ea r’ s tight money con­
ditions and the
Cattle feeders and hog producers disproportionate
continue in a loss situation. It is hard Nebraska usury
to be optimistic about the prospects rate. These fact­
for this year in rural N ebraska. ors, as well as
Money supply, as it is everywhere others, have cre­
else, is tight and non-established ated a dilemma
of a temporary
borrowers will find it hard to obtain
rate coupled
credit for this year’s crop production.
is bound to
As of this date, implement sales have
held up well but there is concern for take its toll on the “ bottom line” of
many individuals and businesses.
this business also.
Profit margins for the agricultural
Land sales are slow but those con­
appear less favorable in the
summated have been at near steady
prices. Money for land purchases is coming season. Commodity prices
becom ing increasingly d ifficu lt to have declined since the 1979 harvest,
while seed corn and other supplies
With small or no growth in de­ relative to the 1980 crop have in­
posits, and with escalating costs, it creased significantly! Unless favor­
will take all of the skill and ingenuity able market conditions return, profits
bankers can provide to come through will decline in the agricultural sector.
Retail and wholesale business in
1980 with satisfactory results.
our area has continued strong into
early 1980. If the profit margins in
the agricultural sector are diminish­
James F. Nissen, president, Na­ ed, retail and wholesale sales will
tional Bank of Commerce, Lincoln: probably be affected by the third
G overnm ent in­
quarter of 1980.
tervention and
The decade of the 1980s has been
inflationary pres­
prefaced with many discou ragin g
sures have led to
factors; however, I am optimistic
unsettled farm
about the long term prospects for
and business con­
agriculture, and correspondently for
our geographic area which is primari­
T he R u ssia n
ly agriculture. At the same time, we
embargo totally
must continue to reduce government
d is r u p t e d the
intervention in the marketplace and
g ra in m a rk ets
our businesses to assure the mainten­
and in the short
ance and continuance of our success­
run has adversely impacted the in­ ful free enterprise system.
come potential of our custom ers.
A lth ou gh free market forces will
eventually assert them selves, the
loss of one of our major export mar­
Thomas H. Olson, president, Lisco
kets will likely continue to have an
adverse im pact on the incom e State Bank: These are most trying
potential of our customers for some times for the
banking in du s­
Simultaneously, inflation has ad­ try, especially for
versely impacted our customers in western Nebras­
the form of sharply higher operating ka, which d e­
costs and, more recently, sharply pends so heavily
upon agriculture.
higher costs of financing.
This double whammy, intervention Low grain prices,
and inflation, will sorely test the bal­ losses on fat
ance sheet of our customers. This, in cattle coming out
turn, will require the continued of the feed yard,
application of prudent lending pract­ high feeder cattle
ices and sound financial counseling prices, depressed hog prices and un­
precedented production costs ahead
on our part.

Executive Council Members Report on
Area Farm and Financial Conditions
E L E C T E D members o f the
Nebraska Bankers Association’s
Executive Council have submitted
the following reports on agricultural
and business conditions as they ex­
isted in their areas in early to midMarch:
Louis G. Titus, president, First
National Bank, Holdrege: The farm­
ers and business­
men in the Hold­
rege area are very
concerned over
the very high in­
terest rates and
their rising costs.
Business activity
in general has
The grain em­
bargo hit our
area farmers very hard. Many were
holding corn to sell and are now
having to sell it in the $2.20 per
bushel range. They are also looking
ahead to big increases in their cost of
prod u ction w ithout great e x p e ct­
ations of high grain prices.
Cattle feeders are presently losing
$40 to $80 per head on cattle they are
selling. If this continues many will
start cutting back their numbers.
They will not be willing to pay high
replacement costs and high interest.
Our loans are at an all time high for
this time of the year and we are just
heading into the spring operating ex­
penses. If grain and livestock prices
continue at their present levels, we
will see many cash flow problems
develop and we will have trouble
meeting our loan demands.


Roy Dinsdale, president, State
Bank of Palmer: I think the word to
describe the eco­
nomic condition
in rural Nebraska
is “ frustration.”
F a rm e rs h a ve
been misinform­
ed, m isled and
m is g u id e d the
last few months.
Too many of our
people in agricul­
ture have continR. DINSDALE
ued to carry last year’s crops in hopes
of rising prices which have not been
realized. At this writing, most banks
are now telling them they must liqui­

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


Let our Vice President of
Investments, Dwaine Stinger,
or Investment Officer Roma
Kroll show you how their
experience can help you get
fast action in handling Federal
funds transactions, money
transfers, security purchases
and sales.

Gary Stevenson
Vice President

Doug Schmidt
Correspondent Officer



C h oose one o f our services or as many as you need:
You get an accurate, efficient system for
obtaining the best availability of your funds to
help increase the profitability of your bank.
Y ou get a full range of loan services including
overline and liquidity loans, assistance with your
ag loans, commercial loans and others.
You get a total program for both Master
Charge and Visa that includes card issuing,
processing, corporate cards, account servicing
and assistance with merchant calls. And you get
the geographic advantages of being closer to
your Bank Card Center.

You get an entire department of Trust professionals
to assist you in meeting your client’s needs.
You get the speed and efficiency of the Banks
of Iowa computers, plus the most successful
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You get our guarantee that whether you need a
specific service, or just an idea or two, First
National is always ready to help.


First National Bank m
M E M B E R F D IC •
Federal Reserve Bank of St. Louis

7 1 2 -2 7 7 -1 5 0 0 •

S io u x City, Iow a 51101


A ‘B A N K S O F IO W A ’ B A N K
Northwestern Banker, April, 1980


Nebraska News

have prom pted m ost bankers to
closely review their agriculture lines
of credit.
A bright spot is the mild winter
which has resulted in fewer losses of
livestock, reduction in feed costs and
the prospects for a good calf crop
ahead. Also spring planting condi­
tions appear to be excellent with an
abundance of moisture and the winter
wheat crop looks good.
High interest rates are on every­
one’s mind, but most of the borrow­
ing customers can understand the
logic in paying these rates when they
are aware of the money market certif­
icate rates being paid by the lending
The economy of this country is
certainly being tested, but I believe
the future offers much for good man­
agers, well-run banks, and a little
imagination may be helpful. We will
experience many changes in the
banking industry in the next decade
and certainly 1980 is no exception.

Winter moisture has been adequate
and should produce excellent plant­
ing conditions for corn, milo and
Our biggest concern is the lack of
loan funds, and the cost of these
funds. Loan demand continues
strong even at the higher rates.
Country banks are reaching the point
of having to find alternate sources of
funds to finance the agricultural
sector. I feel this problem will con­
tinue to grow.

Dennis R. Wood, president, Pack­
ers National Bank, Omaha: For an
industry which
prides itself in
being the epito­
me o f stability,
the times we are
in make it very
d ifficu lt to u p ­
hold that tradi­
In our market
W. W. Cook Jr., president, The area o f south
Beatrice National Bank & Trust Co.: Omaha and metIn m ost cases,
ropolitan Omaha we, like many other
retail sales re­
banks, are experiencing a high in­
main strong in
crease in costs, which are quickly
our area. Because
translated into high interest rates on
of the high gaso­
the other side of the ledger. The other
line co st, many
major market we serve is the entire
State of Nebraska with our corre­
people are doing
their shopping
spondent network; and we are having
locally instead of
many borrow ers realize that with
drivin g to the
small margins and negative price out­
la r g e r c it ie s .
looks they will be borrowing less and
M an u factu rin g
trying to diminish their cash flow
production is above the 1979 level and needs.
This is one of the reactions to
a good “ 1980” is proj ected. However,
there has been some slippage in higher interest rates and we are
orders in the past few weeks. The seeing this happening more and more
manufacturers are hoping that this throughout the state. Likew ise,
does not develop into a trend as the many bankers are putting their cus­
year progresses.
tomers on much shorter maturity
Our farm customers who are en­ schedules; and, at the same time,
gaged primarily in hog production going to a more floating rate with
suffered considerable losses in 1979, notes to keep up with their rapidly
and the prospects for 1980 do not escalating costs.
appear to be much improved.
Many bankers are torn between the
Our cattle customers fared some­ desire to please and benefit their
what better, particularly the cow-calf communities and customers while at
operator, with calves and yearlings the same time trying to build liquid­
selling near record highs. The feeder, ity and make profits in their banks.
however, at present is operating at We, like many other correspondents,
approximately a break-even point, are seeing much shopping around for
exclu din g labor and m anagement credit and availability of money, as
we normally would during any high
Planting con ditions this spring interest period.
should be very good. A shortage of
The demand for good cash flow
fall m oisture may have seriously planning as well as efficient use of
damaged the wheat crop, but it is a borrow ed funds has never been
little too early to tell at this point. greater and this fact is being used by

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

many of our borrowers. The overall
inelasticity of agriculture is such that
many agricultural people are debat­
ing on whether to use their irrigation
systems, buy their normal amounts
of livestock and/or even to plant their
normal amount of cropland.
Overall, business conditions are
good in our area but only because of
the general stability of our customer
base as well as the maturity of many
businesses in the area. Generally we
and our customers are looking to have
a good year; however, it will be one in
which both the bank and our cus­
tomers must continue to stress in­
formation and communication on an
increasingly shortened interval level.

NW National Bank, Norfolk
Announces Three Promotions
Tom F. Finnigan, president of the
Northwestern National Bank, Nor­
folk, has announced three promot­
Milford Weaver was promoted to
vice president and cashier. He has
been with the bank 21 years and will
continue to be responsible for operat­
ions and personnel.
Terry Jensen, promoted to man­
ager of the agricultural department,
is a graduate of the University of
Nebraska-Lincoln with an agricul­
tural degree.
Dan Skalberg, promoted to instal­
ment loan officer and acting manager
of the instalment loan department,
will also be responsible for the con­
sumer lending department.

Joseph V. Johnson
Funeral services were held last
month for Joseph V. Johnson, 87,
chairman of the Johnson County
Bank, Tecumseh. Mr. Johnson had a
distinguished career in banking and
was widely known in political and
government circles.
He was a past president of the
Nebraska Bankers Association and
served as president of the Independ­
ent Bankers Association of America
in 1956. He served as regional direct­
or of the R econstruction Finance
Corp. for Nebraska and Wyoming
and also was Tecumseh’s mayor for
two terms.
Among his survivors are his wife;
sons Joe V. Jr., president of the
Tecumseh bank, and Steve A ., vice
president, and three daughters.


Each of these
United Missouri
E.L. Burch

Dave Van Aken

Steve Blackburn

Each has die know-how
and experience to help your
hank keep up-to-date on
regulations and grow more
M e e t th e pros.

E.L. Burch, a th i r d g e n e r a t io n b a n k e r, is M a n a g e r o f o u r C o r r e s p o n d e n t D e p a r t m e n t .
H e e n t e r e d b a n k in g in 1 962 w it h S k i d m o r e a n d St. J o s e p h ban ks. A f t e r g r a d u a t io n f r o m N o r t h w e s t
M is s o u r i S t a t e U n iv e r s ity , M a r y v ille , he j o i n e d o u r ban k. H e m a n a g e d th e I n v e s t m e n t S e r v i c e D e p a r t ­
m e n t, a n d t r a v e le d O k l a h o m a a n d M is s o u r i b e f o r e t a k in g his p r e s e n t p o s itio n .

Dave Van Aken has t r a v e le d K a n sa s f o r 2 3 y e a rs. F o r 17 y e a r s h e w a s an ag p r o d u c t s
s a le s m a n f o r S p e n c e r C h e m ic a l a n d S a le s M a n a g e r o f ag c h e m i c a ls f o r G u l f Oil. T h is e x p e r i e n c e has
m a d e D a v e a v a l u e d m e m b e r o f o u r C o r r e s p o n d e n t te a m f o r th e past six y e a rs. D a v e ’s h o b b ie s i n c lu d e
h u n tin g , fis h in g , a n d golf.
S teve Blackburn, A s s is t a n t M a n a g e r o f o u r d e p a r t m e n t , g o t a B.S . d e g r e e in ag b u s in e s s
m a n a g e m e n t at P u r d u e a n d an M .S. d e g r e e in ag e c o n o m i c s at C o r n e ll. H e j o i n e d us in 1 9 7 3 as a
c r e d i t a n a ly s t, th e n s p e n t t i m e as a le n d in g a n d le a s in g o ff ic e r . H e b e c a m e c a llin g o f f i c e r in N o r t h e r n
K a n sa s in 1976. S t e v e e n j o y s fis h in g , w o o d w o r k i n g , a n d g o lf.

United we grow. Together.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Nebraska News

NBA Will Strive for Consensus, Unity
Nebraska Bankers Association
First National Bank & Trust Co.
E SEE many changes forth­
coming in banking in the 1980s
stemming from current federal and
state legislation, and affecting every
Nebraska bank regardless of size. We
will see NOW accounts increasing our
overhead, changes in Federal Reserve
structure, increased com petition
from savings and loans, and all with­
out the elimination of Reg Q, which is
still in a six-year phaseout.
Pending in Congress is the Federal
Farm Credit Act amendment of 1979.
This will dramatically change com­
petition from PCAs and the Farm
Credit System, setting up a national
lending agency that does not have to
comply with Truth in Lending, is not
affected by state usury laws and does
not have the restrictions of federal
regulators that burden banks of this
State legislative bills have greatly
affected banking. I see the issues
eroding the effectiveness of the bank­
ing industry in our communications
with legislators. Each of us must be­
come more active in communicating
with representatives and in contri­
buting to campaigns through PAC.
The further expansion of federal


authorization of s&l branching across
state lines, while maintaining the one
quarter percent edge in attracting
dollars from us will further erode the
capital needed to finance this state.
We see very few comments forthcom­
ing from Nebraska banks to regulat­
ors or your representatives in regard
to this or other vital legislation.
Our Washington visit with regu­
lators and congressional delegations
has been a very effective tool in get­
ting to know them. Comments made
by regulators firm ly convince me
there will be further efforts by regu­
lators to consolidate the banking in­
stitutions in our great state.
This year has been a very difficult
one for Nebraska banks and our farm
customers. We have seen a high loan/
deposit ratio resulting from President
Carter’s grain embargo. We have had
to charge farm custom ers higher
rates than ever before, which in turn
has raised their costs considerably.
We have grain sitting on the farms
due to the embargo and grain pipeline
bottlenecks. We are expected to pro­
duce a commodity for the nation’s
economy and balance of trade which
is cheap food, but can we and our
customers afford the continued in­
crease in term debt with higher costs
and lower return? As your president,
I express my concern for this and
other problems.
Nebraska has a strong banking
community. These problems will be a

Call Steve Sutton
For Complete
Credit Insurance
Service . . .
Call Toll Free in Nebraska
800-742-7335 or call collect

Steve W. Sutton
Vice President

Bank Programs for Group •
Individual Life • Accident & Sickness












Where BENEFIT Is more than a middle name
Lincoln, Nebraska 68508

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

challenge. I know each of us will point
back in 1990 to the accomplishments
which were made during the decade of
the 1980s.
Executive Vice President
Nebraska Bankers Association
S THE Association year comes
to a close, we look forward to the
many exciting challenges facing the
banking community in general and
the Association in particular during
the com ing year. The legislative
changes alone which have been pro­
posed and generated during the year
portend pronounced and dram atic
impact upon the way banks in our
state have conducted business in the
past and how their business will be
conducted in the future. Particularly
significant in this regard is the De­
pository Institutions Deregulatory
and Monetary Control Act of 1980.
The new competition includes all
financial intermediaries: savings and
loan associations, credit unions, large
retailers and brokerage houses, to
name but a few. As the competition
grows, the lines distinguishing these
intermediaries will continue to blur at
an ever-increasing pace.
Perhaps the most important functtion of the Association is this: To
insure that the rules and regulations
governing com petition assist our
members rather than hinder them as
they m ove along the com petitive
path. This effort requires a heavy in­
volvement in and commitment to the
legislative process. But, this involve­
ment must be statewide and on an
individual basis. It cannot be limited
to a few bankers and the staff.
The bankers in our state have the
potential to be the most influential
profession to present its case before
the Legislature. Working together we
have the ability to accomplish great
things, not only for the banking com­
munity, but for the entire state. Your
Association will continue to strive
toward the goal of achieving consen­
sus and unity among all our bankers
on legislative and regulatory issues to
insure that the potential is realized.
Communication with all of our mem­
bers on a regular basis is the corner­
stone of progress toward this goal.
The Update initiated to further this
communication effort, will be contin­
ued and we intend to build on it for a
better association, united in voice
and purpose, as we move rapidly into
the uncertainty of the future.


Nebraska News


New Exec. VP at Fremont
James H. Moore Jr., president of
the First State Bank, Fremont, has
announced the
election of Ron­
ald D. Kranz as
e x e c u t iv e v ic e
president and a
Most recently
Mr. Kranz was
cashier, trust of­
ficer and a mem­
ber of the board
at Y ork State
Bank and Trust Co. Previously he
was with the Com ptroller of the
Currency, Tenth Federal Reserve
Region, as an assistant national bank
He received a BS degree in busi­
ness administration from the Univer­
sity of Nebraska in 1968.

A p ro fe s s io n a l a p p ro a c h
to th e fin a n c in g n e e d s
o f y o u r c o m m u n ity .

H j

Commercial, G .I., Promotes 3
E. J. Thayer, president and chief
executive officer of the Commercial
National Bank & Trust Co., Grand
Island, recently announced the pro­
motion of Robert C. Hellbusch to vice
president, agricultural loan division;
Betty Graves to second vice presi­
dent, consumer loan division, and
Gaylene Beck to loan service officer.
An officer at Commercial for two
years, Mr. Hellbusch also serves as
president and a director of Comagco,
an agricultural subsidiary of CNB.
He has a BA degree in accounting
from Midland College and was form­
erly with the P roduction Credit
Association in Grand Island.
Mrs. Graves has been with Com­
mercial for four years. She previously
had six years experience at Avco
Finance before joining the bank.
Mrs. Beck has been with the bank
for 10 years, primarily in the loan
division. She will supervise the com­
mercial and instalment loan account­
ing functions.

Joins David City Bank
The appointm ent of Ronald A .
Bertucci as senior vice president of
the First National Bank, David City,
has been announced by James Howe,
Mr. Bertucci was formerly vice
* president of the First State Bank,
Shelton, 111., for the past four years.
He has a bachelors degree in business
adm inistration from Hiram S cott
College, Scottsbluff, and has worked
in banks at Scottsbluff and Superior.
Federal Reserve Bank of St. Louis










1623 Farnam Street, Suite 700, Omaha, Nebraska 68102
136 South 13th Street, Lincoln, Nebraska 68508

Northwestern Banker, April, 1980


Nebraska News

President Phil Giltner, host bank, offers current comm ents at Chuck Wagon Roundup. RIGHT— Roy W. Hatten and Dr. Clayton Yeutter
prepare speeches on agriculture.

Chuck Wagon Roundup

“Ag Embargo A Bad Mistake”
i i T HE Russian grain embargo
I was a bad mistake, and the
only thing we proved to the Russians
is that we know how to shoot our­
selves in the foot.”
This was the comment made by Dr.
Clayton Yeutter, president, Chicago
M ercantile E xchange, in a key
address at the 15th annual Chuck
Wagon Roundup held by the First
National Bank of Omaha at the Aksarben Sales Pavillion.
The Russians have purchased
about 90% of their planned total of
corn, wheat and beans, so it has not

P ub lish er

hurt them at all, according to Dr.
Yeutter. On the other hand, he said
American farmers turned over some
great markets to Canada, Australia,
Brazil and western Europe. He ex­
pressed the fear that we have lost
further credibility as a supplier, and
invited the W est Germans and
Japanese to make greater in v est­
ments in Brazil.
Looking ahead to next fall, Dr.

Yeutter predicted that “ we may have
mandatory price and wage controls
by September and unless we come up
with a consistent foreign policy, we <
will have corn and beans running out
our ears.” He suggested that farmers
should not count on the Administrat­
ion to do them any favors between
now and November. He expressed
optimism for agriculture in the ’80s
“ if we can establish a solid export
base—respond aggressively to other
nations’ unfair trade practices—and
put some life into our rail and barge {
P residential candidates w ill be
Ronald Reagan and Jimmy Carter in
Dr. Yeutter’s opinion. He feels the ?
election will be close, and the final

Merrill J. Oster, pres., Professional Farmers of America, presented his bullish views on farm land prices. RIGHT— Don Ostrand, v.p., host
bank, shown w ith G. P. Scholz, chm n., First Nat’l. Bk. & Tr. Co., Falls City.
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Nebraska News

results may depend on the vice presi­
dential candidate. He sees Senator
Howard Baker of Tennessee, Senator
Jack Kemp of New York, Donald
Rum sfeld of Searle & Com pany,
C hicago, and General A lexander
Haig as potential candidates for the
Painting a rather grim picture for
grain and livestock prices over the
near term, Merrill J. Oster, presi­
dent, P rofessional Farmers of
America, Cedar Falls, Iowa, told the
audience that he was optimistic over
the long pull. He is bullish on pur­
chase of farm land, stating that the
1980s will produce a lot of millionnaires due to land prices continuing
to rise. He gave these reasons: (1) ex­
pansion pressure from current land
owners, (2) inflation hedge, (3) relat­
SEA OF RED HATS greeted speakers at
ively easy financing with contracts
available at 7% , 8% and 9% , (4)
major increase in net worth continues has a price cycle of about eight years.
to come from land, and (5) risk/
Expressing his views on livestock,
reward ratio continues favorable.
Mr. Oster feels that hog prices have
Mr. Oster stated that he is a firm now bottomed out and that we may
believer in trends, and he sees the have the worst behind us. He sees
next high cycle for corn coming in the current financial squeeze forcing
1982 since its price cycle runs over a some liquidation in cattle, making a
period of about 3Vs- years. For soy­ somewhat more favorable long-term
beans, Mr. Oster says they move in a picture.
cycle of about 39 months, and wheat
Roy W. Hatten, speaker/humorist


the 15th annual Chuck Wagon Roundup.

from Jackson, Miss., added a “ light
touch’ ’ to the Roundup by relating
some “ country boy’ ’ yarns. He re­
minded guests to keep their feet on
the ground because the size of the
crowd at their funeral will all depend
on the weather that day.
Merv Aegerter, vice president of
the host bank, was in charge of the
program again this year.

For Northwestern’s World of Service

Tom Pohlman

Of Sioux City
An Affiliate of Northwest Bancorporation

Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Meet the newest
Roger Arwood, Assistant Vice President
Correspondent Banking Department

Roger Arwood is the newest Bankers’
Banker. He joins Bankers Trust’s other
correspondent bankers, ready to help you with *your growing responsibilities.
His financial experience with consumers,
with agricultural interests and in a
large metropolitan market make him responsive
to your needs, whatever your size *
and local situation.
And since he’s backed by the
full resources of one of Iowa’s
largest independent banks, he can
give you immediate, authoritative
answers to your questions. *
We are proud to introduce
Roger. You’ll be pleased with
the service you get from our
newly expanded
correspondent banking
department at Bankers Trust.
We’re growing!
Come grow with us.

B ankers^
Com e Grow I
I Q T B . 'I
With us w I U w l i
Correspondent Bank Department
Des Moines, Iowa 50304
Member: FDIC/Federal Reserve System
Use our toll-free WATS line:
800- 362-1688

Des Moines’ largest
locally owned, independent bank

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Frances McElhinney will continue as
assistant cashiers.

Hawkeye Bancorporation
Acquires Iowa City Bank

Purchase Morning Sun Bank
Controlling interest in the Iowa
State Bank, Morning Sun, has been
sold by Mr. and Mrs. Warren L.
Martin to Richard H. Buenneke and
Homer L. Jenson, principals in Inde** pendent Management Services, Des
Mr. Buenneke will serve as chair­
man, and Alan Eich has been elected
AY is the expected completion
date for a new banking facility
for the Manning Trust & Savings
Bank, according to Lee Foote, presi­
The first floor will have three teller
stations, four offices, a cash and safe­
ty deposit vault and a bookkeeping
Currently the basement will have a
board room, record vault and lounge
area. There will be a drive-up window
on the west end of the bank and a
night depository in the vestibule at
the main entrance of the building.
The 56’x63’ facility, located direct^ ly across the street from present
quarters, will be of stone and wood


president. Mr. Eich was formerly vice
president and cashier of the Citizens
Savings Bank, Hawkeye. He had
previously served as vice president
and manager of the Ely office of the
First Trust and Savings Bank, Cedar
Rapids, and as cashier of the Solon
State Bank. He is a graduate of Iowa
State University.
Charles H. Beck will continue as
cashier, and Mildred A. Boyle and

New Facility Planned for Manning Bank

PICTURED is an architect’s sketch of the planned fa cility for the Manning Trust & Savings

Iowa Supreme Court Rules Against Bank
^ I N A RECENT lawsuit involving
I First Northwestern National Bank
of Denison as appellee and Doris L.
Crouch as appellant, the Iowa
Supreme Court ruled in favor of Mrs.
Crouch, thereby reversing the Craw­
ford District Court and remanding
the case “ for dismissal of plaintiff’s
petition without prejudice and an
award of penalty, reasonable attor­
ney fees and costs on defendants
counterclaim.’ ’
The case revolved around a $9,500
six-month note from the bank on
June 1, 1977, to Wilbur Crouch and
his wife, Doris, in behalf of Wilbur’s
business, Crouch Distributing Com­
pany. “ They also executed a security
agreem ent coverin g the accounts,
Federal Reserve Bank of St. Louis

The Federal Reserve Bank of
Chicago has announced the approval
of the application of Hawkeye Bancorporation to acquire the Hawkeye
State Bank, Iowa City. Hawkeye
State Bank has assets of $23 million
and is one of three banks in Iowa
Iowa City is an important new
market for Hawkeye Bancorporation,
which has concentrated on acquiring
banks in county seat, trade center
communities. Hawkeye had assets of
$929 million at year end 1979 and 22
subsidiary banks. A pplica tion is
pending for acquisition of First Na­
tional Bank, Sibley.

inventory, equipment and fixtures of
the business,’ ’ according to court
records, which stated further, “ The
note was not paid when it came due.
Plaintiff brought the present action
on it without giving the Crouches a
notice of right to cure. Wilbur an­
swered by admitting execution of the
note but denying the other material
allegations of the petition. Doris
adm itted execution of the note,
denied the other material allegations,
raised certain affirmative defenses,
and counterclaimed. One of the af­
firmative defenses and her counter­
claim were based on allegations of the
applicability of the ICC (Iowa Con­
sumer Credit Code) and plaintiff’s
failure to give her a notice of right to

cure. In her counterclaim she prayed
for judgment of $7,500 actual dam­
ages , a penalty of $ 100 to $ 1,000, and
an award of reasonable attorney fees
and costs.”
The Supreme Court decision notes
that the lower court “ entered judg­
ment against both defendants, but
only Doris appealed. She contends
the trial court erred in holding the
ICCC did not apply to the transaction
and in accordingly entering judgment
on the note and denying her counter­
Iowa Supreme Court Justice J.
McCormick ruled that although “ the
transaction in the present case did
not have all attributes necessary to
make it subject to the ICCC for force
of the statute alone,” it was stated in
the language of the note that “ This
loan is subject to the provisions of the
Northwestern Banker, April, 1980


Iowa News

Iowa Consumer Credit Code applying
to consum er lo a n s,” and at the
bottom of the note in boldface type is
this statement: “ This is a consumer
credit transaction.”
Judge McCormick ruled there was
nothing in the language of ICCC or
the note to prevent the note in case to
be considered as valid under ICCC,
therefore “ We hold that the parties
had the right to contract for applic­
ability of the ICCC.” He said “ The
intention expressed in the instrument
prevails over the secret intention of
the drafter.”
Judge McCormick noted further
that under terms of the ICCC “ A
creditor who believes in good faith
that a consumer is in default may give
the consumer written notice of the
alleged default and, ‘if the consumer
has a right to cure the default, shall
give the consumer the notice of right
to cure provided in section 537.5111
before exercising any right he may
have to enforce’ .” The judge said
Mrs. Crouch was entitled to such
written notice, which prevents cred­
itor from enforcing the obligation
until tw enty days after a proper
notice is given. He said, “ the trial
court should have dism issed the
petition without prejudice to plain­

tiff’s right to enforce the alleged obli­
gation after compliance with section
537.5110. Assuming a failure by de­
fendant to cure the alleged default
after being given the required notice,
plaintiff may sue again on the claim. ”
Judge M cCorm ick said M rs.
Crouch did not prove actual dam­
ages, “ However she is entitled to
have the trial court assess the pen­
alty, reasonable attorney fees and
costs, as prayed in her counterclaim
. . . U pon remand, both parties
should be given an opportunity for an
evidentiary hearing on that issue
(award), including the determination
of attorney fees to be awarded defend­
ant for prosecuting this appeal.”
As of March 23, the case had not
yet been scheduled for a rehearing on
the Crawford District Court docket.
The case has importance for a number
of Iowa banks which use standard
form s that contain the clauses
referred to above even though some
debts covered in these forms are not
consumer loans because the debt is
not primarily for a personal, family,
household or agricultural purpose. □

dent of the Linn County Bankers
Association for the coming year.
He succeeds Nadine V. Wax, a vice
president of M erchants N ational
Bank of Cedar Rapids, who received a
plaque in recognition of her service as
president for the last year.
Other new officers include: vice
president—Melvin J. McCalley, vice
president, Peoples Bank and Trust
Co., Cedar Rapids; treasurer—John
F. Hartm ann, vice president and
auditor, Farmers State Bank,
Marion, and secretary—Clement C.
Ryan, vice president, First Trust and
Savings Bank, Cedar Rapids.

Key City, Dubuque, Names 2
Jack W. Roach, president of Key *■
City Bank & Trust Co., Dubuque,
has announced the election of one new
officer and the advancem ent of
another. Keith H. Dralle has been
advanced to vice president, and John

Bossom Heads Linn Bankers
LeeE. Bossom, president of Walk­
er State Bank, has been elected presi-


110 East 7th Street
Waterloo, Iowa 50705
Phone 319-234-6641
Ask for Dick or Jerry

Call it a trend. Call it a concept. Call
it anything you want. A Turn Key
program from the Kirk Gross Co. is by
far the most desirable way to handle
your building or remodeling program.
Because when Kirk Gross Co. takes
over, you get architectural design,
interior design, and construction that
is coordinated, functional,
economical, and downright beautiful.
You also get rid of a lot of problems
you will have if you try to do all those
things yourself. Because Kirk Gross
Co. does it all. Our record speaks for
itself. Check us out!

_______ ________

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis



W. Koppes has been elected instal­
ment loan officer.
Mr. Dralle, a graduate of Mason
City Junior College and the Graduate
School of Banking, Madison, Wis.,
began his banking career with
American State Bank, Mason City,
and later served with the Iowa De­
partment of Banking. Prior to joining
Key City Bank in 1978, he was with a
Dubuque bank for nine years.
Mr. Koppes graduated from the
University of Dubuque in 1970. Prior
to joining Key City Bank he was with
American Trust and Savings Bank
for 10 years.

Joins Lisbon Bank & Trust
Joe Petra, president of the Lisbon
Bank & Trust Co., has announced
that Robert R. Leinart has joined the
bank as vice president for the loan
Most recently Mr. Leinart was an
assistant vice president at the United
State Bank in Cedar Rapids and
formerly held the same position at
Peoples Bank & Trust Co. there.



Are you missing out
on this market?

and closely regulated ser­
With the kind of infla­
vices as proprietorship
tion we've got today,
your customers are looking beyond passbook ac­ pension plans, corporate profit sharing plans, Keogh
counts, and even beyond CDs, to find better ways prototype plans or custom HR-lOs.
to make their money work harder for them. Private
Not true. With the assistance of our correspon­
individuals and small businessmen alike need the dent banking team, backed up by our fully-staffed
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kind of help only you, their banker,
saving, inflation-fighting services that your
can provide through a wide variety
customers are beginning to demand.
of carefully administered trust
Learn how easily your bank can provide its
customers with all the trust services they need
Yet, you may feel you aren't
equipped to offer such highly specialized
by calling Bernie Miller today at 319/582-1841.

AfnerkanifeThist&Savings DanK

TheBonl^qf Opportunity
Town Clock Plaza Dubuque, Iowa 52001
Phone: 319/582-1841
Member F.D .i.c. & f . r .s .

"Christy Armstrong, Bob
Scott, Leo Kane and I look
forward to seeing you at the
Group 4 meeting here in
Dubuque on M a y 6.
Federal Reserve Bank of St. Louis


Iowa News

ADDRESSING the IBA Ag Conference, from left, were Tom Smith, pres., Fidelity Brenton
Bank & Trust Co., Marshalltown; Ed Tubbs, IBA v.p. & pres., Maquoketa State Bank; John
O’Byrne, chm n., IBA ag comm., & exec, v.p., Cresco Union Savings Bank, Cresco, and
Chet Randolph, host of public TV’s “ Market-to-M arket.”

At Iowa Bankers Ag Credit Conference:

Inflation, Increasing Capital Needs
Will Affect the Ag Banker in Future
A s s o c i a t e E d ito r

ARM ERS will need to be better
managers to make a profit in the
coming decade was the consensus of
guest speakers at the Iowa Bankers
Association’s 1980 Agricultural Cred­
it Conference held March 17-19 on the
campus of Iowa State University in
In order to meet the capital needs
of the farm er-custom er, bankers
must be able to compete with fiercer
competition and cope with inflation
and increasing risk in the agricultural
sector, the experts agreeed.
Bankers also had the opportunity
to learn about one marketing alter­
native available in the futures mar­
ket. The Chicago M ercantile E x ­
change, in cooperation with the IBA,
sponsored a day-long seminar on live­
stock and grain hedging which
opened the conference.
Presiding at the general sessions
was John O’Byrne, chairman of the
IB A agricultural com m ittee and
executive vice president of the Cresco
Union Savings Bank, Cresco. Ed
Tubbs, IBA vice president and presi­
dent of the Maquoketa State Bank,
gave the welcome.
Chet Randolph, host of the “ Mar­

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

ket-to-Market” show seen on Iowa’s
public television network, predicted
the following changes in agriculture
in the next decade: the productionoriented man will become the hired
man, hired by the money men, and
the trend of substituting capital for
labor will reverse.
There will be increased irrigation,
longer rotation cycles, basis co n ­
tracts, more direct contracting of
grain and more involvem ent of
banks. Farmers will not continue to
strive for upward mobility, there will
be more political action by farmers
and they will not necessarily be sell­
ing to the highest bidder.
“ Capital management will be the
key to a successful operation, not
good production, ” he pointed out. “ A
good relationship with the local
banker should continue.”
Mr. Randolph said that farmers
represent less than 4% of this
cou n try ’ s population even though
agriculture accounts for 20% of the
GNP. “ Farmers must turn to more
defensive political action — food is
now a part of our international
policy.” He added that wage and
price controls will become a reality,
but that some agricultural products
may be exempt.
“ Cuts in the federal budget will
have an effect on many projects, such

as farm lo a n s ,” Mr. Randolph
pointed out. “ You bankers have a
tough decision as we look ahead at a
crunch for farmers. You will be called
upon to renew farm loans in a high
risk area and you will be the ones de­
ciding if the small operator can make
Discussing the future of agricul­
tural banks was Tom Smith, presi­
dent of the Fidelity Brenton Bank &
Trust Co., Marshalltown. His re­
marks appear on page 29 of this is­
An update on the S tock p ort
elevator incident by Earl Willits,
assistant attorney general for Iowa,
prompted many questions from the
audience. He advised there are things
banks can do to avoid loan losses such
as those experienced in the Prairie
Grain Company situation. “ Exercise
prudent lending practices,” he said.
“ Check to see if the proper business
forms are filed.”
Mr. Willits said if there is an indi­
cation of trouble (cash flow, returned
checks) bankers should contact the
State Commerce Commission. “ Most
failures have come from privatelyowned elevators. Co-Ops have an ad­
vantage in the ‘ check’ of the farmers’
board of governors.”
Oliver Hansen, president of the
Liberty T rust & Savings Bank,
Durant, spoke on “ The Pulse of
Banking” and participated in a panel
discussion on gasohol as a workable
fuel alternative. Moderating the gas­
ohol panel was Keith Heffernan,
executive director of the Iowa Corn
Promotion Board, who introduced
Dennis Day, a Grimes farmer, who
has constructed a working still and
manufactures grain alcohol for his
farming operation.
The Tuesday afternoon session

Oliver Hansen, pres., Liberty Trust & Sav­
ings Bank, Durant, discussed the pulse of
banking in the state and participated in a
panel on gasohol.


W hy our man in Io w a ...
should be yW i/m an in Iowa

h im . M o s t

been th ro u g h th e ups a nd d o w n s of d iffe re n t

e v e r y b a n k e r in I o w a d o e s . H e ’s M a x R o y .

C h a n c e s are y o u a lre a d y k n o w

c a ttle c y c le s . W h e n y o u ta lk to M a x a b o u t

M a x has b e e n tr a v e lin g th e s ta te fo r o v e r

fa rm in g ,

25 ye a rs .. . h e lp in g c o r r e s p o n d e n t b a n k e rs

c u s to m e rs ,

in j u s t a b o u t e v e r y w a y y o u c o u l d t h i n k o f.

a b o u t ... firs t h a n d !

I t ’s n o t p r e s u m p t u o u s t o s a y t h a t t h i s m a n
k n o w s a s m u c h a b o u t f a r m i n g in I o w a , a n d
t h e n e e d s o f b a n k e r s t h e r e , as a n y b a n k e r
w h o c o u ld k n o c k on y o u r d o o r.


h is


c a t t le . . . th e

needs of your

h e k n o w s w h a t y o u ’ re t a l k i n g

M a x R o y is t h e k i n d o f p e r s o n y o u ’ ll f i n d
in D r o v e r s C o r r e s p o n d e n t B a n k i n g D e p a r t ­
m e n t . W e ’ re p r o u d t o h a v e h i m w i t h us, a n d
to o ffe r y o u th e ye a rs o f b a n k in g k n o w - h o w
he re p re s e n ts .

Y o u s e e , M a x R o y I s n ’t j u s t a b a n k e r . H e ’s
a fa rm e r-ra n c h e r.

fe e d ,

fa rm

If y o u ’ re o n e o f t h e f e w I o w a b a n k e r s w h o

ju s t

d o e s n ’t k n o w M a x , y o u o u g h t t o ! H e ' l l p r o v e

o u t s id e o f B lo o m f i e ld , Io w a . 7 0 0 a c re s .

th a t D ro v e rs s h o u ld be y o u r b a n k — a n d th a t

R u n s o v e r 3 0 0 h e a d o f c a t t l e . L i k e y o u , h e ’s

M a x R o y s h o u l d b e y o u r m a n in I o w a .

Member Federal Reserve System

Drovers Bank of Chicago
47th Street & A shland Avenue, C hicago, IL 60609
Federal Reserve Bank of St. Louis


Northwestern Banker, April, 1980


Iow a News

featured four workshops: Improving
Sources of Loan Funds for Rural
Iowa Banks, Computer Technology
in A g Credit, To Lease or Not to
Lease and Land Values—Ownership,
Financing and Cash Flow.
John Conley, a bank analyst from
First Mid-America, Lincoln, Neb.,
discussed the IDB (industrial devel­
opment bond), asserting that it may
be an important source of funds for
Iowa banks, enabling them to meet
the capital needs of industry without
sacrificin g money for agriculture.
“ The IDB provides 100% financing
and is beneficial to the community
and banks,” he said. “ It’s important
to get the investment banker in early
in the game.”
A ccord in g to Roby Sloan, vice
president and associate director of
research at the Chicago Federal Re­
serve Bank, rural banks are preclud­
ed from access to outside markets
because of high fixed costs for direct
participation. However, he pointed
out some alternatives in the form of
indirect access to national money
Seasonal borrowing privileges at
the Fed, PCA participations, FICB
ag credit corporations, guaranteed
loan a rra n g e m e n ts , cooperative
banking arrangem ents, m ortgage
corporations (such as Iowa Bankers),
leasing arrangements, credit corpor­
ations and insurance guarantees are
included. “ There is a real need for
rural banks to acquire some outside
sources,” Mr. Sloan warned.
Other sessions during the confer­
ence included discussions on security
agreements and livestock and grain

IMPROVING sources of loan funds for rural banks was one of the four workshops pre­
sented. Moderator was Rich Horst, now with Davenport Bank & Trust, at mike, and panel­
ists were John Conley, bank analyst, First Mid-America, Lincoln, Neb., center, and Roby
Sloan, v.p.-assoc, dir., research, Chicago Fed. Reserve Bank.

1980 Iowa Group Meetings
May 5
May 6
May 7
May 8
May 19
May 20
May 21
May 22


New Directors at Lake City
Jack Patrick, president of the Lake
City State Bank, has announced the
addition of Warren Clark and Edward
R. Maahs to the bank’s board of
Both men are well-known through­
out the Lake City area. Mr. Maahs
has been administrator of the Stewart
Memorial Community Hospital since
1970 and adm inistrator of the
McCrary-Rost Clinic in Lake City
since 1977.
Mr. Clark has been in the farming
and feeding business the past 24
years and farms 1,200 acres. He also
feeds approxim ately 800 head of

Elected to I BMC Board

DISCUSSING the Stockport grain elevator
incident was Earl Willits, Iowa ass’t. atty.
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

Five Iowa bankers have been elect­
ed to the board of directors of the
Iowa Bankers Mortgage Corporat­
ion, according to Sam Callahan, pres­
The new members include William

Clear Lake
Council Bluffs
Des Moines
Fort Dodge

Carter, president, National Bank &
Trust, Chariton; Burt L. Day, presi­
dent, Benton County Savings Bank,
Norway; H. Rand Petersen, presi­
dent, Shelby County State Bank,
Harlan; Russell Spearm an, p resi­
dent, Citizens Savings Bank, Sac
City, and W. D. Miller, executive
vice president, Decorah State Bank.
IBMC staff members last month
moved from their former location in
the Insurance Exchange Building to
120 Liberty Building in Des Moines,
bringing the corporation in the same
building as the rest of the Iowa
Bankers Association family.

Named at Hills Bank & Trust
John R. Hughes, president of the
Hills Bank & Trust Company, has
announced that Ray G. Glass has
been named assistant cashier. Mr.
Glass, a native of Sac City, joined the
bank last June following his gradu­
ation from Iowa State University. He
works in the loan department.

Iowa Bankers Benefit Plan.
A com plete package
of Health coverages
designed by bankers
for bankers.

The Iowa Bankers
Benefit Plan was developed
by Iowa Bankers Insur­
ance and Services for the
sole purpose of insuring
your employees.
Coverages that may be
included are Health, Dental,
and Prescription Drugs. E v­
erything you need wrapped
up in one complete package.
IBIS also has attractive
Group Life and Disability
programs. Designed by
bankers for bankers.

Call Ron Dougherty and
find out more about how the
Iowa Bankers Benefit Plan
can be tailor-made for your
bank, your employees. With
Ron’s knowledge and experi­
ence in the banking profes­
sion, IBIS can offer the most
personalized insurance
coverages available. The kind
you need. Available only to
Iowa banks.
Iowa Bankers Insur­
ance and Services . . . the
right combination.


Iowa Bankers Insurance Services, Inc.,
430 Liberty Building, Des Moines, Iowa 50308 (515)286-4300
Call our toll FREE WATS number 1-800-532-1432

The right combination.
Federal Reserve Bank of St. Louis

Northwestern Banker. April, 1980

Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


A goo
your customer.

Bank transactions used to mean paper­
An in con ven ien ce for your custom ­
ers, a terrible expen se for you. This is
just o n e o f the p roblem s INSTANTA C C E S S can solve for you.
F o r y o u r c u s t o m e r , IN S T A N T A C C E S S m ean s great banking c o n ­
ven ien ce — a personalized card that
can b e used at an off-prem ise terminal
or even at the bank. A nd it means 2 4
h ou r ban k in g — as well as a great
num ber o f locations to c h o o s e from.
For you, it means even more.
I N S T A N T - A C C E S S e li m in a t e s
checks, deposit slips, withdrawal slips
and cash tickets.
C onsider h ow m uch your operating

costs will be reduced with the elimina­
tion o f all this paperwork.
And there are many other things to
consider, too.
IN STA N T-A CC ESS is an on-line tell­
er system, as well as an EFT service,
that is revolutionizing the banking indus­
Besides saving you the wasted time
an d e x p e n s e o f u n n ecessa ry p a p e r ­
work, IN STA N T-A CC ESS works as a
very effective advertising tool.
Everyone wants in on the latest d e ­
velopm en t o f m ore effi­
c ie n t b a n k in g . W h e n
your bank
IN S T A N T -A C C E S S ,
y o u ’ ll attract new cus-

tomers and solidify old ones.
Make banking easy for your custom ­
R edu ce your total operating costs.
Be a banking innovator in you r mar­
IN ST A N T -A C C E SS lets you d o all
these things.
A g o o d deal for your customer.
A better o n e for you.
For m ore information, call Joe Phernetton or ask for BICS marketing at

Banks o f Iowa C om puter S ervices s
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980




p ro o f/tra n sit. She joined Valley
Bank in 1961.
Martha Heldenbrand has been pro­
moted to assistant vice president,
customer accounts. She joined Valley
Bank in 1953.
Lois Kriebs has been promoted to
assistant vice president, personnel.
She received her BS from Quinnitiac
College, Hamden, Conn. Ms. Kriebs
ECENT changes have been made control department as systems and joined Valley National in 1977.
at Central N ational Bank & procedures specialist.
Sandra Robinson has been pro­
moted to assistant vice president and
Trust Company.
* * *
Raymond G. Johnston, president
auditor. She joined Valley National
and chief executive officer, has an­
J. Locke Macomber, president of Bank in 1969.
nounced that Kenneth M. Myers was Valley National Bank, has announced
* * *
elected chairman of the board replac­ the election of five officers and a new
Robert E. Lee, chairman and chief
ing Simon W. Casady.
officer of the Iow a-D es
Mr. Casady, who attained age 65
Dennis J. Hagedorn has joined the
last month, will remain active in the bank as a vice president in the cash Moines National
management and money market Bank, has an­
area. He is a graduate of the ABA nounced the fol­
U ndergraduate and Bank In v e s t­ low ing p rom ot­
ment School and the University of ions.
Harley L. Mar­
has been elec­
Douglas R. Hall has been promot­
ted second vice
ed to assistant vice president, real
president-real es­
estate loans. He received his BS from
tate loan. He
Northeast Missouri State University
joined the bank
and joined Valley National in 1972.
in 1969 as a man­
J oyce H artschen has been p ro ­
agement trainee. Since then he has
bank and was elected chairman of the moted to assistant vice president, served as assistant manager of the
executive committee of the board. He
Douglas office and assistant cashier,
will continue as chairman of the board
and was elected real estate loan
of Central National Bancshares, Inc.
officer in 1971. He is a 1969 graduate
David L. Hansen was elected vice
of the University of Iowa with a de­
president-personnel, How ard R.
gree in finance and insurance.
Harris was elected vice president and
Betty L. Marsh has been named
controller, and Frank Widner was
senior personnel officer. She joined
elected accounting systems officer.
the Iowa-Des Moines in 1950, in 1956
Mr. Hansen joined the bank in
she joined the personnel department
1978 as director of personnel. He re­
and was elected personnel officer in
ceived BS and MBA degrees from
Drake University.
Mr. Harris joined Central National
as the auditor in January, 1977, and
was elected controller in November,
1977. He received a BA degree in
business from the U niversity of
Northern Iowa and is a CPA.
Mr. Widner began his career with
Central in 1956 and has served in
various capacities in the auditing and
accounting departments. His most
assignment has been in the

Des Moines

Reserve Bank
of St.



A short guide
to choosing
a correspondent
Nearly every large
bank has a correspondent
banking department.
So how do you
choose which bank
to do business with?


Talk to the people.

Find o u t h o w know ledgeable
th ey are. H ow professional. M ake them
explain ho w their c o rresp o n d en t
b anking d e p a rtm e n t can help you.

A re th ey easy to deal w ith? They
sh o u ld be. A c o rresp o n d en t b an k er an d
his client n e ed to w o rk in harm o n y .
C heck th eir rep u tatio n . A re th ey
d ep en d ab le a n d reliable? All solid
relationships are built on trust. In a
b an k in g relationship, tru st is th e m ost
im p o rtan t elem ent.
Be certain th a t freq u en t com ­
m unication will be m ain tain ed b etw een
th e c o rresp o n d en t b an k an d y o u r bank.
If one or b o th of y o u a re n 't aw are an d
well inform ed, th e re 's b o u n d to be
Of course, at Central National,
we think the people in our
correspondent banking department can
do the best job for you. But you be the
judge. Call us toll free, 1-800-362-1615.
Make an appointment. Then put us to
the test.


Left to Right: William B. Greaves, Vice Pres.; Margo Foxhoven, sec.; Raymond
Schneider, Corsp. Bk. Officer; Eddie A. Wolf, Sr. Vice Pres.; Jeannine Gathercole,
sec.; Cyrus D. Kirk, Vice Pres.

Wfe’re determined to do the best for you.

“C ”

Central National Bank & Trust Company
Federal Reserve Bank of St. Louis



Northwestern Banker, April, 1980


Des Moines News

ronic banking. He is a 1976 graduate f
of the University of Northern Iowa
with a degree in financial manage­

Kathleen M. DeLucca has been
elected operations officer. She joined K
the bank last May as a management
trainee and most recently was man­
ager of cash management services.
D eborah L. Ganzel has been
elected advertising officer. She joined
the bank in 1978 as an intern in the
advertising department. She is a 1978
graduate of Drake University with a
degree in advertising and public re­
Charlotte M. Gehringer has been
named operations officer. She joined
the bank in 1954 and most recently
was supervisor of research and cus­
tomer inquiry.
l . e . m c in t o s h
c . a . m il l e r
Donald M. Long has been elected
D aniel C. Burnight has been as management trainee in 1978 and bankcard m arketing officer. He
named computer services officer. He has been in the operations division. joined the bank in 1969 and was
joined the bank in 1978 and was elect­ He is a 1974 graduate of the Univer­ named bankcard sales supervisor in
ed operations officer last June. He is a sity of Northern Iowa with a business 1978. He is a 1951 graduate of the
1973 graduate of M orningside management degree.
University of South Dakota.
Mitchell A. Christensen has been
College, Sioux City, with a degree in
Larry E. M cIn tosh has been
named operations officer. He joined named bankcard collections officer.
Michael L. Bristle has been elected the bankcard division in 1977 and He joined the Iowa-Des Moines in
operations officer. He joined the bank most recently was manager of elect­ 1973 and most recently was collect­
ions and security manager.
Christine A. Miller has been elect­
ed operations officer. She joined the
bank in 1978 as a m anagem ent
trainee and m ost recently was
manager of customer service. She is a
1978 graduate of Iowa State Univer­
sity with a degree in business.
* * *
Directors of Brenton Banks, Inc.
have approved a treasury stock ac­
quisition program for the purchase by
the company of up to $1 million in
dollar value of its common shares.
The purchases will be made in the
open market through the company’s
market makers at current market
prices. The company may also effect
private purchases.
Brenton Banks, Inc. has 1,107,798
shares currently outstanding.
* * *
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis

David L. Nagel, president of the
Brenton Bank and Trust Company,
Urbandale, has announced the elect­
ion of Lucille Johnson as cashier.
Most recently an assistant vice
president, M s. Johnson succeeds
Robert G. Mann, formerly vice presi­
dent and cashier of the Urbandale
bank, who has joined the Brenton
National Bank of Des Moines as vice

Iow a News

president. Mr. Mann will be coordin­
ator of office operations and will be
located at the Valley W est Mall
Lenora Durand has been elected
administrative officer at the Urbandale bank.
* * *
Herman C. Kilpper, president and
chief execu tive officer o f Bankers
Trust Company,
recen tly a n ­
nounced the fol­
low ing addition
and promotion.
Ronald H. Bis­
hop has join ed
the com m ercial
loan division. He
-< has extensive ex­
perience in com­
mercial and real
estate lending, serving most recently
as vice president of the Morton Grove
Bank in Morton Grove, 111. He is a
graduate of Wright College.
Paul A. Erickson has been promot­
ed to automated customer service
representative. He was form erly
training in the computer operations
division and working on special pro­
jects. He joined the bank in 1978,
having graduated from Iowa State
University with a BS degree.

We’re com m itted
to y o u r in vestm en ts.
A t Security National, we’re more
than a Sioux City bank. We’re a
country bank with a special un­
derstanding of the investment
needs of ag-oriented banks.
Our Security Bankers are ex­
perienced in representing coun­
try banks. They work closely with
our knowledgeable investment
team to see you get the most for
your money. They know their
business. And yours.
Talk with our Security Bankers about complete invest­
ment services, data processing and ag overlines. You’ll find
they speak your language.
W henever you think of corre­
spondent banking, think Security
National. We’re committed to
helping you.


Acquires Cedar Falls T&S
Acquisition of 98.4% of the voting
stock of the Cedar Falls Trust and
Savings Bank by Banks of Iowa,
In c ., Cedar R apids, has been
approved by the Federal Reserve
Forbes Olberg, chairman and
chief executive officer of Banks of
Iowa, said no changes in personnel or
board members of the Cedar Falls
bank are contemplated. Paul W. Hall
will continue as chairman, president
and chief executive officer.
The con solidated resources of
Banks of Iowa, Inc. on December 31,
1979, were $1,221,842,000. The
assets of Cedar Falls T rust and
Savings Bank on the same date were
$49,998,000. On completion of the
transaction, Banks of Iowa will have
member banks located in nine major
markets in Iowa.



©1979 SNB

SIOUX CITY, IOWA 51101 712/277-6670 MEMBER ED.I.C.


"A c c e p te d S a l e R e g is ters b y Bank
C lerk s E v e r y w h e r e "
l o r inter m otion write


Oakland, Iowa
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1980


Iow a News

LEFT—-J. Bruce Meriwether, chmn., I BA leg is. com m ., and exec, v.p., First Nat’l., Dubuque; Neil Milner, exec, v.p., I BA, and Iowa Gov.
Robert D. Ray. RIGHT— Gov. Ray visits w ith Iowa bankers in his private office.

Iowa Bankers Visit Their Capitol
ODELED after the highly suc­
cessful Washington, D.C., leg­
islative visits conducted by the Iowa
Bankers Association for many years,
the IBA brought the concept of such
a trip closer to home last month by
sponsoring a two-day legislative visit
to Des Moines and the State Capitol.
The idea was an obvious success as
shown by the 142 bank executives
from all over the state who took part
in the visit.
The first day was devoted to con­
tinuing conferences at the Savery
Hotel with various federal and state
regulatory representatives. The ses­
sions were not the usual polite
“ lecture and listen” fare found at
most conventions. The 142 bankers
listened intently and grilled some
speakers beyond scheduled session



Deputy Comptroller Gary Brickman and Director for Customer and
Community Affairs Dennis Deischer,
both from the Kansas City office of
the Regional Administrator of Na­
tional Banks, discovered this as the
first speakers. Both men emphasized
that the C om ptroller’ s office has
taken the “ hard” approach with
banks in examining for conformity
with regulations governing the Com­
m unity R einvestm ent A ct. Mr.
Deischer said the original order from
Congress was one small paragraph
but federal regulators decided to in­
terpret it with the extensive man­
power, time and money investment

now reflected in the severe CRA
exams being experienced by banks
nationwide. When queried why banks
are “ pursued and harassed” far be­
yond the examinations experienced
by savings and loans and credit
unions, Mr. D eischer said “ w e ’ re
trying to help you—we’re doing this
for your own good.”
Mr. Brickman, by way of warning
banks that such CRA assessments
will continue, said three ATM appli­
cations by an Iowa bank are in Wash­
ington, D.C., for approval and it
looks like they will be turned down
because of a low CRA rating. This, he
stated, despite the acknowledged fact
that the bank is sound.
An unexpected visitor to the first
day sessions was Iowa Senator John
Culver (D), who is up for re-election
this year. Sen. Culver made an emo-

LEFT—Wes Ehrecke, IBA legls. rep.; James R. Morrison, sr. v.p., Chicago Fed; Neil Milner, IBA exec, v.p., and Mark Douglas, IBA staff
v.p. RIGHT— Rep. Ned Chiodo, Des Moines; Arthur Davis, IBA gen. counsel; RaeSchupack, FDIC reg. counsel, Omaha; George Milligan,
lowa-Des Moines Nat’l., Des Moines, and Peter Blocklin, ABA fed. legis, rep.
for v.p.,
Reserve Bank
of St.

Iowa News


IOWA BANKERS listen to their legislators, from left: Rep. Roger A. Halvorson, majority leader, Monona; Sen. Lowell L. Junkins, m inority
leader, Montrose; Rep. Donald D. Avenson, m inority leader, Oelwein; Sen. Cloyd Robinson, ranking member, Senate Commerce Comm.;
Rep. Laverne Schroeder, chm n., House Commerce Comm., and Sen. Edgar Holden, chmn., Senate Commerce Comm.

tional, dynamic plea in calling for an
economic summit meeting to resolve
the critical problems now being ex­
perienced in the national economy—
inflation, high interest rates and loss
of international confidence in Amer­
ica and its dollar. He suggested Camp
David as the site, with participants to
include President Carter and his
staff, Congressional leaders and bi­
partisan representatives from labor,
business, finance and other selected
Other m orning participants in ­
cluded Howard Hall, deputy superin­
tendent, and Jock Stevenson, assist­
ant to the superintendent from the
Iowa department of banking, and
James R. Morrison, senior vice presi­
dent of the Federal Reserve Bank of

An interesting noon luncheon
session featured Ned Chiodo, Des
Moines, a member of the Iowa House
of R epresentatives, who gave an
excellent, straightforward report on
how matters pertaining to finance
and banking are being handled in the
House. He was accompanied on the
platform by George Milligan, execu­
tive vice president of the Iowa-Des
M oines N ational Bank, who is a
former State Senator. Mr. Milligan
reinforced Mr. Chiodo’s plea for input
from concerned bankers on matters
relating to their interests, and urged
bankers in turn to approach elected
representatives with the same
courtesy and regard that they would
for other people of business.
The afternoon program featured
Rae Schupack, FD IC regional

counsel from Omaha, and Peter
B locklin, A B A federal legislative
representative. An evening dinner
concluded the first day’s activities,
with the speaker being Jerry
O’Dowd, president of Agri-Industries
of West Des Moines.
The second day was devoted to
breakfast with representatives from
home districts, tour of the State Cap­
itol, an interesting briefing with
majority and minority leaders of both
Senate and House, followed by a visit
with Governor Ray in his private
office. The concept of the State Leg­
islative Visit was highly commended
by leaders of both parties and the
Governor, who expressed the desire
that every segment of Iowa life take a
similar interest in the workings of
their state government.

LEFT—J. Bruce Meriwether, chm n., IBA leg is. com m ., and exec, v.p., First Nat’l., Dubuque; Howard Hall, lowadeputy superintendent of
banking, and Jock D. Stevenson, asst, to the low a su p t., now exec, v.p., First State B&T, Cedar Rapids. RIGHT— Les Olson, pres, of IBA
and pres., Toy Nat’l., Sioux City; Gary Brickman, deputy reg. adm. of nat’l. banks, Kansas City, and Dennis Deischer, reg. dir. for
and com m unity affairs, Kansas City.
for er
Northwestern Banker, April, 1980
Federal Reserve Bank of St. Louis


Io w a N e w s

New Officers Announced at Iowa Investment Bankers Meeting

LEFT— 1980officers of the Iowa Investment Bankers Association were elected at the group’s recent annual meeting. They are, from left:
Ralph Marasco, E.F. Hutton, secy.-treas.; Bob Kirkendall, E.F. Hutton, 2nd v.p.; Jim Weiser, Central Nat’l. Bank, 1st v.p., and Bill
Goodwin, R.G. Dickinson, pres. All four are from Des Moines. RIGHT—Tom Wormley, Carleton D. Beh Co., left, and Bob Kirkendall,
right, introduce guest speakerTom Stoner, candidate for the U.S. Senate. Plans were announced for the annual Field Day to be held May
14-15. Ron Stegh, Carleton D. Beh Co., w ill chair the event.

Staff Changes at Wever
The board of directors o f the
Farmers Savings Bank, Wever, has
appointed Harvey L. Robinson to the
position of cashier and trust officer.
Mr. Robinson joined the bank as an
assistant cashier in 1977 after gradu­
ating from Iowa State University. He
succeeds Edson P. Cornick who has
retired from the chief executive
officer position.

Indianola Bank Reports
At the annual stockholders meet­
ing of the People Trust & Savings
Bank, Indianola, 11 staff members
were recognized for their years of
service with the bank. Longtimers
includedT. J. Nicholls, 30 years, and
Ethel Smith, 20 years.
Ruth Wilson and Dorothy Uttley,
who recently retired, were also

assistant cashier of the bank. She had
been associated with Security State
for 31 years.

September, has been elected to the
board of directors.

Annual Meeting at Norway
Staff News From Elma
Howard L. Poitevin, president of
the People Savings Bank, Elma, has
announced that Darwyn Van Wyhe
has joined the bank as a loan officer
Mr. Van W yhe attended the
University of Minnesota and was
most recently enrolled in the agricul­
tural banking course at the Pipestone
Area Vocational Technical Institute.
Robert F. O’Donnell, who joined
Peoples Savings Bank as cashier last

The Benton County Savings Bank,
Norway, entered the final year to­
ward completion of a century of bank­
ing at the annual stockholders meet­
ing in March.
Approval was given for a one-forone stock dividend which will in­
crease captial to $170,000.
Officer promotions included Den­
nis Day to vice president, and Karen
H im m elsbach to cashier. Other
officers and directors where re­

Ida Grove Firm Receives Export Award

Changes at New Hampton
Robert R. Rigler, president of the
Security State Bank, New Hampton,
has announced the prom otion of
Peter A. Larkin to vice president and
farm representative. Mr. Larkin, who
was also elected to the board of di­
rectors, joined the bank in 1976 after
graduating from Iowa State Univer­
Agnes K. Carmody has retired as
H. W. Godbersen, center, pres, of Gomaco Corp., and chm n., Ida County State
Bank, Ida Grove, recently accepted an “ E” Award for ‘Excellence in Export” for pro­
ducts needed worldwide. Also pictured, from left, are H. W. Jensen, v.p.-sales &
m ktg., Gomaco; Jesse Durden, dir., U.S. Dept, of Commerce, Des Moines; Mr. Godberson; Iowa Gov. Robert D. Ray, and Gary L. Godbersen, exec, v.p., Gomaco. The
government recognizes quality, eagerness, integrity and continued growth and
expansion in the prom otion of exports.
Northwestern Banker, April, 1960
Federal Reserve Bank of St. Louis

Iow a News

National Bank, Waterloo, Opens Office

OFFICIATING at the ribbon cutting for the National Bank of W aterloo’s new National Plaza
office were, from left: R. Scott Fetner, pres.; Leo Rooff, W aterloo mayor; W. Louis
Beecher, chm n., and Elcina Buck, office mgr.

HE National Bank of Waterloo
celebrated the grand opening of
its new National Plaza office with an
open house the first of the year.


The 3,050 square foot fa cility,
which opened for business in Decem­
ber, has five drive-up lanes, safety
deposit b ox es, a night drop and

Former Banking Official
Joins Cedar Rapids Bank

Bankeasy machine.
Manager of the new office is Elcina
Buck, who has been with the bank
since 1958. Most recently she served
as a teller and personal banker in the
note department and was named an
officer in 1978. Teller supervisor is
Lucia L udolph, form erly a teller,
bookkeeper and accounting clerk.
farm cost-con trol strategies last
month. Featured speaker was Don
Gee, a farm management specialist
from Iowa State University.
He conducted a hands-on work­
shop where participants worked
through a simplified cash flow to
determine an appropriate financing
Jerry Struck, assistant marketing
director of the Iowa Department of
Agriculture, discussed Iowa’s export
future and potential trade with

Jock D. Stevenson, former assist­
ant to the Iowa superintendent of
b a n k i n g , has
joined the First
Trust and S a v ­
ings Bank, Cedar
Rapids, as execu­
tive vice p resi­
dent. He will be
th e m a n a g i n g
officer o f the
bank, succeeding
L odge F. Mrkvicka who resign- **■ D- STEVENSON
ed recently. Mr. Stevenson had been
employed by the Iowa department of
banking since 1962 except for two
years of military service with the
Iowa National Guard. He advanced
through bank examiner positions in
M apleton, A lta and M arion, was
named bank examination analyst in
1970 and bank examination super­
visor in 1973.
He has attended several seminars
and workshops relating to banking
and governm ental adm inistration
and graduated from the Hamilton
School of Commerce, Mason Citv, in

R. Scott Fetner, president of The
National Bank of Waterloo, has an­
nounced the ad­
dition of Don
Tollefson to the
NBW staff. Mr.
T ollefson
been elected as­
sistant vice pres­
ident in the oper­
ations area. A
native o f S er­
geant Bluff, he
was previously
associated with banks in Sioux City.

Hosts Farm Cost Workshop

Elected at Perry Bank

Jefferson State Bank sponsored a
and workshop dealing with
Federal Reserve Bank of St. Louis


election of Samuel H. Garst to the
board of directors. Mr. Garst is the
assistant sales manager of the Garst
and Thomas Hybrid Corn Company
of Coon Rapids.
Formerly he spent two years with
the Carter Administration serving on
the Congressional relations section of
the Department of Agriculture.
A t the bank’s annual meeting, all
current officers were re-elected and
Vicki Stanley was named assistant
office manager. She joined the bank
in 1975 and attended Iowa State Uni­

Joins Sioux City Bank
Richard C. Taylor, president of
First National Bank in Sioux City,
that G eorge D.
Weaver has join­
ed the bank as
controller. Mr.
Weaver has been
involved in many
areas of banking
since 1963 and
most recently
was controller at
First N ational
Bank in Council Bluffs. He is a grad­
uate of Kearney (Neb.) State College
and has an MA in mathematics from
the University of Nebraska-Lincoln.
He is also a graduate of the Colorado
School of Banking.

Governor Receives
First MasterCard

Joins Nat’l. Bank, Waterloo

John M. Shanda, president of the
Perry State Bank, has announced the

IOWA Governor Robert D. Ray receives
from Miss Iowa— Lori Froehling— the first
MasterCard issued in the State of Iowa, and
believed to be the first MasterCard issued in
the nation. Miss Froehling, a teller at the
D avenport Bank & Trus+ C o ., to ld the
Governor the new card replaces the tradi­
tional Master Charge card in a name change
adopted by the international card organi­
z a tio n . D avenport Bank issu e s M asterCards through Credit Systems, Inc., St.
Louis, which sells and services the card
system for banks in a five-state area.


Io w a N e w s

Dolores and Don Curry, pres., Farmers Savings, Massena; Mary and Dick O’Bryan, exec, v.p., Harlan Nat’l., and Helen and Mark
Langenfeld, pres., FarmersT&S, Earling, a llo t Iowa. RIGHT—Tom Wright, chmn. & c.e.o., 1st Nat’l., Laurel, Miss., and his wife, Sadie;
Margaret and Dale DeKoster, pres., W aterloo Savings, W aterloo, la.

(Continued from page 32)
also stated that expanded powers for
thrifts, whether good or bad, would
continue. He said the study on the
McFadden Act would surface by midApril and the White House would
meet with IB AA leaders in two weeks
to personally review it and get their
input. He feels expansion of inter­
state banking will rest until a greater
demand is made for it.
Alex Sheshunoff gave a condensed
version of his seminar on “ How to
Prepare for NOW Accounts,” using
charts to show how banks must make
detailed comparisons of the makeup
of their customers, balances, goals of
the bank, and additional sources of
funds. He reviewed service charges
needed to pay for and make profitable
various bank sizes. Supplem ental
charts were given to all those attend­
The 1981 annual convention will be
March 22-26 at the Las Vegas Hilton
in Las Vegas, Nev.

Groups Hold Joint Meeting
The Central Iowa Group of the
N ational A ssocia tion of Bank
Women and the
local chapter of
the Bank Admin­
istration In s ti­
tute held a joint
meeting in Feb­
ruary at the Des
Moines Hilton.
Guest speaker
was Sandra L.
Cook, adm inis­
trative director
for N A B W ’ s Educational F ou n d­
who discussed “ Banking —
Banker. April. 1980
Reserve Bank
of St. Louis

What’s in it for Women?” She point­
ed out that both women and their
banks must be willing to commit their
time and resources to improve the
Ms. Cook stressed the need for
women who want to advance within
their banks to first recognize that
they will need to develop not only
technical skills, but also conceptual
and human skills.
These women need to assess their
skills, recognize areas for improve­
ment and seek opportunities to im­
prove and use those skills. Banks
must provide a climate for encourag­
ing skill and career development, she

Joins Clinton Bank
Mark N. Christen has joined the
Clinton National Bank as vice presi­
dent in charge of
commercial lend­
A native of
Guttenberg, Mr.
Christen is wellknown among
Iowa bankers,
having traveled
for M e r c h a n t s
N ational Bank,
Cedar Rapids, as
an assistant vice president in the cor­
respondent department for the past
several years.

SBA Reports Iowa Loans
The U.S. Small Business Admin­
istration in Iowa made 911 loans
totaling $91,679,990 in 1979, com­
pared to 1,001 loans tota lin g
$103,837,875 in 1978, according to T.
C. Martin, acting district director.

April, 1980
Acorn Printing Co...................................................... 101
Aetna Business Credit ........................................... 37
American Bankers Assn..........................................
American Express Co............................................. 10-11
American Nat’I. Bk. & Tr. Co., Chicago ................. 42
American Nat’l. Bk.&Tr. Co., St. Paul ................... 51
American Tr. &Sav. Bk., Dubuque ........................ 91
Banco Financial/Lease Northwest ........................ 55
Bank of America ....................................................
BankersTr. Co., Des Moines ................................. 88
Banks of lowaComputerServices.......................... 96-97
Brandt .....................................................................105
Central Nat’l. Bk. & Tr., Co., Des Moines ............... 99
ChilesHeidler&Co., Omaha ................................. 74
Citicorp Travelers Checks................................... 56-57
Continental Bank, Chicago ...................................
Control-O-Fax, Waterloo .........................................100
Daktronics ............................................................. 12
Dawson Hail Ins. Co................................................. 41
DeLuxeCheck Printers ........................................... 26
Douglas Guardian Warehouse Co............................
Downey & Co., C.L................................................... 16
Drovers Bk. of Chicago........................................... 93
Farmers Mutual Hail Ins. Co.................................... 18
Financial Inst. Services(Banclub) ............................ 21
First Mid America .................................................. 78
First Nat’l. Bk., Denver.......................................... 65
First Nat’l. Bk. Lincoln ........................................... 71
First Nat’l. Bk., Minneapolis ................................60-61
First Nat’l. Bk., Omaha ......................................... 77
First Nat’l. Bk., St. Paul ......................................... 48
First Nat’l. Bk., St. Paul (Bonds)............................ 54
First Nat’l. Bk., SiouxCity ..................................... 81
Gross Co., Kirk, Waterloo ..................................... 90
Iowa Bkrs. Ins. & Serv.............................................. 95
lowa-Des Moines Nat’l. Bk.........................................108
Kirkpatrick Pettis, Omaha....................................... 85
Kooker, E a rl............................................................. 104
LeFebureCorp......................................................... 15
Lincoln Benefit Ins. Co............................................ 84
Manufacturers Hanover Tr. Co.................................
MerchantsNat'l. Bk., CedarRapids ......................
Midland Nat’l. Bk., Minneapolis ............................ 53
MoslerSafeCo......................................................... 19
Nat’l. Bk. of Commerce, Lincoln ............................ 75
NorthernTr. Co........................................................ 45
Northwestern Bell .................................................. 13
Northwestern Nat’l. Bk., SiouxCity ...................... 87
Packers Nat’l., Omaha ........................................... 79
Schweser&Co., Robt., Omaha.............................. 73
Security Nat’l. Bk., SiouxCity ..................................101
Sheshunoff & Co...................................................... 47
Square Deal Ins. Co.................................................. 14
United Bk. of Denver...............................
United Missouri Bk., Kansas City .......................... 83
U.S. Nat’l. Bk., Om aha........................................... 68
VanWagenen&Co., G.D.........................................
Visa(First Nat’l. Bk., Chicago) .............................. 23



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An Affiliate of Northwest Bancorporation

& Walnut

• Des Moines, Iowa 50304 • (515) 245-3131


George Milligan

Bob Buenneke
Federal Reserve Bank of St. Louis


Member FDIC

Bernie Kersey

Dorothea Wolfe

Voldy Vanags

Lance Davenport

John Rigler

Gariy Frandson

© 1 9 8 0 lowa-Des Moines National Bank