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mm ■ 0 sü 0 New ba i m mm : | . H 0W P gggg -Æm https://fraser.stlouisfed.org - St. Louis^ Federal Reserve Bank of profits ■ 8 • Nebraski : Meet Dick Retz, MN B Correspondent Banker. Meet Dick Retz, farmer. As an MNB Correspondent Banker, Dick brings over 13 years' experience in agricultural finance counseling, ag lending and farm management to his work. As a farmer he understands, first hand, what your agricultural customers are up against and the kind of financing they need to achieve their goals. MNB and its respondent banks are located in some of the country's most productive farmland. And because agriculture plays such a vital role in the economy, we've developed a special commitment toward agricultural financing. So when you have farm customers who need to restructure short term debt into long term, need cash-flow financing, machinery loans or cash to purchase additional land, talk to someone who knows about banking and finance. Call Dick Retz at MNB. Dial 319/398-4320 or tollfree, 1-800-332-5991. Merchants National Bank is i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cedar Rapids, Iowa 52401 Member F.D.I.C. A BANKS OF IOWA’ BANK Imagine getting only bare w alls when, for the sam e price, you could have had a beautifully built, elegantly furnished bank. “It just about happened to US,” says Henry Kinberger, president of Security 1st National Bank, in Alexandria, Louisiana. “ We listened to a number of proposals for an important building project for our bank. One from an architect, another from a leading plan-design-build firm. Both would have offered us far less than the solution we got from HBE.” “ Instead of remodeling our old building, HBE showed us how we could build a brand-new buildingthat would be much more functional, for about the same cost, on the same site, without any interruption of business. And the HBE price included a spectacularly beautiful, finished interior, not just bare walls.” “If it hadn’t been for HBE, we wouldn’t have the beautiful bank we’re enjoying now.” Stories like this are not just once-in-a-while happenings at HBE. We make them happen all the time. It’s our specialty, our point of difference, our pride. We’d like to start making things happen for you. Find out more. Call or write me, Sally Eaton, right now at 314- 567- 9000 . HBE Bank Facilities, 11330 Olive Street Road, St. Louis, Missouri, 63141. ssh be B a n k Facilities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You can’t afford not to look at H B E 4 Farmers Mutual Hail # Reports Outstanding Year APRIL 1984 • 91st Year • No. 1447 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER Three midwest banks’ new facilities are featured on the front cover of this issue. At upper left is the attractive interior of the new building constructed for First Na tional Bank, Waverly, la., by Kirk Gross Co. At upper right is the interior of the beautiful new building designed for First State Bank, Scottsbluff, Nebr., by Bank Building Corporation. The third photo pictures the new detached office for Granite City Trust and Savings Bank, Granite City, III., designed and built by HBE Bank Facilities. Special section with four building case histories starts on page 27 under these titles: • • • • The year of 1983 was another great year for Farmers Mutual Hail Insurance Company of Iowa in wri^ ing crop hail insurance reported David Rutledge, president, at head quarters in Des Moines. Mr. Rutledge stated that the Com pany wrote over $48 million ^ premiums during 1983. The Company now has over $1,370,000,000 of insurance in force. In 1983 the Company’s reported claims exceeded 15,000 which was a de crea se from 1982. As a result of good loss ratio, D.D. HARTOG and investment 27 Modern facility —Gerald L. Gross 28 Office Relieves Main Bank —HBE Bank Facilities 29 Achieving Market Goals —H.W. Schoonover 32 Growth Precedes Building —Tom Spalding EXCLUSIVE LEASING FEATURES • • • • • 34 Leasing Is Profitable —James R. Renner 35 Lease Service Provider —James D. Sheedy 36 Ag Leasing—W. Scott Morris 36 Salesmanship —Edward A. Ames 37 Community Bank Profits —Michael L. Dahir NEBRASKA CONVENTION SECTION 69 87th Convention Program 70 You Will See Them at the Convention 76 Omaha News 80 Interview with NBA President Don Johnson 82 Student Board Is Unique 83 Lincoln News DEPARTMENTS 8 10 45 49 50 Calendar Bank Promotions Illinois Minnesota Twin Cities 61 62 63 64 65 Wisconsin South Dakota North Dakota Wyoming Montana 66 87 98 102 Colorado Iowa Des Moines Ad Index NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher & Editor Associate Publisher Associate Editor Consultant Ben Haller, Jr. Steve Burch Becky McBurney Malcolm K. Freeland No. 1447 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional mailing office. POSTM ASTER: Send all address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309. Digitized for N o rFRASER th w e s te r n B a n k e r , A p ril , 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B. RUTLEDGE P. RUTLEDGE ^ income, the Company was able to in crease its Surplus as regards to Pol icyholders by over $7 million. The Company writes crop hail insurance in 10 Midwestern states - Illinoi^ Indiana, Iowa, Michigan, Minneso ta, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Mr. Rutledge announced that in 1984 the Company will begin writin™ Crop Hail Insurance in Colorado. Mr. Rutledge was re-elected presi dent at the company’s 90th annual meeting in Des Moines. Dale Den Hartog, Bill Rutledge, and Perry Rutledge were re-elected to the board of directors. Other officers in the company re elected are: Perry Rutledge semens vice president & secretary; Dale Den Hartog, senior vice president and treasurer; Bill Rutledge, assistant vice president; Michael Rutledge, assistant secretary; Donald 1^ Bockelman, senior vice president; Earl Rae, vice president; Russell S. Cross, vice president; Albert B. Car ter, assistant vice president and as sistant treasurer, and Donald % Duwelius, assistant vice president. . We turn on a dime so you can turn a larger profit. ® W hen m oney is expensive, so is the time funds are idle. T h at’s why so many banks rely on Northern TVust Bank for profit-enhancing, ^ correspondent services. Our experw tise in getting funds to work quickly and profitably has earned us the reputation of being a pre miere processor for correspondent 0 banks. In fact, in independent surveys,The Northern TVust consistently ranks am ong the top three cash managem ent providers in the industry. • The latest in com puter tech n ology assures check collection and safekeeping that’s accurate and fast. Our Cashline Balance Reporting System gives you elec https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tronic access to your account for maxim um flexibility. You can get a fresh update every 15 minutes if necessary—and m ove m oney within hours rather than days. A d d to our sophisticated equipm ent the best in personal attention and responsiveness, and you get Northern IVust’s ideal com bination of quality and effi ciency. A dedicated staff of profes sionals assures you personal attention in all transactions. We’re also ready to assist you in handling your investments. A nd our experienced Bond Departm ent representatives are always on hand to provide knowledgeable advice. W ith Northern TVust Bank behind you, you can count on better service for your customers. A nd a better bottom line for your bank. For more information, contact John V. N. McClure, Vice President, Northern IVust Bank, 50 South LaSalle Street, Chicago, Illinois 60675. Telephone: (312) 630-6000. M em ber F.D.I.C. The more you w ant your bank to do, the more you need The Northern. N o rth ern TVust B ank I f your prim ary correspondent doesn’t lo o k com m itted to your business, take a look at First B an k M inneapolis* * 4^*; ^ m https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 d £ Commitment. The kind that says we’ll be responsive to your needs, no matter what the changing environment brings. That’s what we’re all about at First Bank Minneapolis, and maybe that’s why m ore banks in the Upper Midwest use us as their primary correspondent than any other bank. As other banks edge slowly out o f the correspondent banking business, we move ahead with: ♦ the largest staff o f professional calling officers in the region so that our primary respondents will see their calling officer as often as they’d like. ♦ a 30% increase in our data proc essing staff so that we can handle your needs m ore rapidly and effectively. ♦ the kind o f lending philosophy that has allowed us to double our correspondent bank loan portfolio in the last four years. So if you’re getting the idea that we are the most committed correspondent bank around, you’re getting the right idea. First Bank Minneapolis Correspondent Banking Department First Bank Place Minneapolis, MN 55480 612/370-4762 W e are w hat you want a correspondent bank to be. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 Nebraska: Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI—Bank Administration Institute BMA—Bank Marketing Association IBAA—Independent Bankers Association of America NABW—National Association of Bank Women, Inc. RMA—Robert Morris Associates National Conventions & Schools Apr. 16—RMA Customer Profitability Analy sis Workshop, St. Louis. May 3-4—RMA Customer Profitability Analy sis Round Table, Chicago. May 6-9—ABA National Conference on Real Estate Finance, Hyatt Regency, Chicago. May 13-16—ABA National Operations and Automation Conference, Washington Convention Center, Washington D.C. May 13-16—RMA Commercial Loan Docu mentation Workshop, Chicago. May 16-19—IBAA 24th Seminar/Workshop on the One Bank Holding Company, Hotel St. Anthony, San Antonio, Tex. May. 27-June 8—BMA School of Bank Mar keting, University of Colorado, Boulder. May 27-June 1—BMA Essentials of Bank Marketing School, University of Colo rado, Boulder. May 27-June 1—BMA School of Trust Sales and Marketing, University of Colorado, Boulder. June 2-6—ABA National AIB Leaders Con ference, Hyatt Regency, Atlanta. June 3-15—Stonier Graduate School of Banking, Rutgers University, New Bruns wick, New Jersey. July 8-13—ABA National Agricultural Bank Management School, Iowa State Univer sity, Ames, Iowa. July 15-21—ABA National School of Bank Card Management, University of Oklaho ma, Norman. Aug. 19-22—IBAA 25th Seminar/Workshop on the One Bank Holding Company, The Broadmoor, Colorado Springs. Sept. 9-12—ABA National Bank Card Con vention, Washington Hilton, Washington, D.C. Sept. 16-19—BMA 69th Annual Convention, New Orleans Marriott Hotel, New Orleans. Sept. 16-19—ABA National Conference on Human Resources, Fairmont Hotel, New Orleans. Oct. 20-24—ABA Annual Convention, New York. Nov. 4-7—IBAA 26th Seminar/Workshop on the One Bank Holding Company, The Sands Hotel, Las Vegas. Nov. 11-14—ABA National Agricultural Bankers Conference, Hyatt Regency/ Crown Center, Kansas City, Mo. State Conventions & Schools Colorado: May 3—CBA Investment & Funds Manage ment Conference, Denver. May 10-11—CBA/BMA Marketing Confer ence, Colorado Springs. June 7-9—CBA Annual Convention, The Broadmoor, Colorado Springs. N ofor r th FRASER w e s te r n B a n k e r, A p ril, 19 84 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J Illinois: May. 13-18—Illinois Bankers School, Illinois State University, Normal. May 20-June 1—Agricultural Lending School, Southern Illinois University, Carbondale. June 3-8—Illinois Graduate School of Bank ing, Illinois State University, Normal. June 3-8—IBA Advanced Ag Lending Clinic, Illinois State University, Normal. June 13-15—IBA Annual Convention, Peoria Convention Center, Peoria. June 17-23—IBA Consumer Lending School, University of Illinois, Urbana. Sept. 23-25—ICBI Tenth Annual Convention, Indian Lakes Resort, Bloomingdale. Iowa: Apr. 24-25 IBA Chief Executive Officers Con ference, Des Moines. Apr. 7-11 — IBA Washington, D.C. Trip. May 7—Group 6 Meeting, Des Moines. May 8—Group 8 Meeting, Iowa City. May 9—Group 7 Meeting, Waterloo. May 10—Group 4 Meeting, Dubuque. May 14—Group 5 Meeting, Council Bluffs. May 16-17—Iowa Young Bankers Confer ence, Des Moines May 22—Group 2 Meeting, Fort Dodge. May 23—Group 12 Meeting, Okoboji. May 24—Group 3 Meeting, Clear Lake. June 17-22—Iowa School of Banking, Iowa City. July 8-12—Outward Bound, Vernal, Utah. July 19-21 —Iowa Independent Bankers An nual Meeting & Convention, The New Inn, Okoboji. Aug. 19-25—Commercial Lending School, Ames. Sept. 16-18—IBA 98th Annual Convention, Des Moines. Oct. 23-24—Consumer Lending/Retail Bank ing Conference, Des Moines. Minnesota: May 2-4—NBA 87th Annual Convention^ Lincoln Cornhusker. June—NBA Presidents Golf Tournament, Lochland Country Club, Hastings. June—NBA Washington Trip. July 8-13—School of Banking Trust S ch oo l Rodeway Inn, Overland Park, Kansas. ® Sept. 9-14—Schools of Banking Basic School, 2nd Session, Rodeway Inn, Over land Park, Kansas. Sept. 23-28—Schools of Banking Intermedi ate School, 2nd Session, Rodeway lnn_ Overland Park, Kansas. ® Oct. 14-19—Schools of Banking Advanced School, Regency West, Omaha. North Dakota: Apr. 25-26—NDBA/SDBA Trust Conference® Holiday Inn, Fargo. Apr. 26-27—NABW State Convention, Ramada Inn, Grand Forks. May. 8-9— NDBA Agricultural and Consumer Credit Conferences, Sheraton Inn, M inot^ June 3-8—NDBA School of Banking, Univet® sity of North Dakota, Grand Forks. July 5-7—Dakota Bankers Centennial Con vention, The Broadmoor, Colorado Springs. Sept. 19-21 —Independent Community B a n k ^ of North Dakota Annual Convention, Kirk® wood Motor Inn, Bismarck. Sept. 24—NDBA Northeast Group Meeting, Grafton. Sept. 25—NDBA Northwest Group Meeting, Minot. Sept. 26—NDBA Southwest Group Meeting® Dickinson. Sept. 27—NDBA Southeast Group Meeting, Valley City. Oct. 3-4—NDBA Compliance Seminar, Holi day Inn, Jamestown. South Dakota: Apr. 25-26—SDBA/NDBA Trust Conference, Holiday Inn, Fargo. May 20-25—SDBA Officer Training School^ University of South Dakota Campus, Ver million. July 5-7—Dakota Bankers Centennial Con vention, The Broadmoor, Colorado Springs. Sept. 17—Group 5 Meeting, Holiday In n ^ Spearfish. Sept. 18—Group 3 Meeting, Holiday Inn, Mitchell. Sept. 19—Group 1 Meeting, Westward Ho Country Club, Sioux Falls. Sept. 20—Group 2 Meeting, Lantern In n ^ Milbank. w Sept. 21—Group 4 Meeting, Mobridge Country Club, Mobridge. Oct. 11-12—SDBA Instalment Credit and Retail Banking Conference, Sioux Falls. May 9—MBA Investments and Funds Man agement Conference, Hilton Inn, Min neapolis. May 15-18—MBA Washington Legislative Conference, Washington D.C. June 11-13—MBA Annual Convention, Radisson St. Paul Hotel. June 24-29—MBA Minnesota School of Banking, St. Olaf College, Northfield. July 4-6—Upper Midwest Agricultural Credit Conference, Duluth. July 22-27—Midwest Banking Institute, Uni versity of Minnesota, Morris. Aug. 12-17—MBA Commercial Lending School, St. Olaf College, Northfield. Aug. 12-25—Graduate School of Banking, University of Wisconsin, Madison. Aug. 22-25—Independent Bankers of Min nesota Annual Convention, Breezy Point Resort, Pequot Lakes. May 6-9—WBA Washington D.C. Trip, L’Enfant Plaza. June 10-13—WBA Annual Convention, Hyatt Regency & Mecca, Milwaukee. £ Montana: Wyoming: May 24-25—MBA Trust Conference, Heri tage Inn, Great Falls. June 26-29—MBA Annual Convention, Biq Sky. Apr. 22-25—WBA Biennial Washington, D.C. Trip. June 13-15—WBA 75th Annual Convention^ Jackson Lake Lodge, Moran. W isconsin: 9 * Youcant competeintoday’stoughfinancial . worldwithyesterday’scomputer. Introducing the Monroe System 2 0 0 0 . The new standard for microcomputers. # • As your services expand, you need a microcomputer that won’t burst at the seams. That’s why Monroe has introduced a » computer with the capa bilities to meet your „ demands in a growing market. The Monroe System 2000. In fact, it sets a whole new standard for microcomputers. That means larger data storage, communication with mainframes and expandability. And, the System 2000 gives you extra power, with user memory that’s expandable up to 896KB. What’s more, it’s based on the new 80186 microprocessor from Intel, making it one of the fastest 16-bit systems around. Plus, it comes with the most popular operating systems, MS-DOS and CP/M-86.® And application packages which provide an entire library of software to help you take on today’s tough competition. Now, as great as this may sound, there’s more! Monroe gives you service and support direct from over 250 nationwide branch offices. And all it takes is a phone call for us to be right in your office. For more information, call 800-526-7843 ext. 444 (in N.J. 800-522-4503 ext. 444). The Monroe System 2000. It’s nice to know there’s a microcomputer that will cure your bank’s growing pains. œ M O N R O E S Y S T E M S FO R B U S IN E S S For leaders,not followers. MS is a tradei lark of M ic ro s o ft C o rporation CP/M -86 is a re g is te re d tra d e m a rk of D ig ita l R esearch, Inc. Monroe System 2000 is a tradem ark of L itto n B usiness System s, Inc. © 1984 Litto n B usiness System s, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 10 <3 oc Bank Promotions < LU C O ICO Z LU LU ROMOTIONS and other an nouncements have been made by the following banks: P O Milbank, SD Triangular free-standing display. _ jiiPn ¡J» Jate, h Bethany, MO Corner mounted two-faced. Apple Valley, MN Free standing two-faced display. Brainerd, MN Free-standing display. Our engineers will custom design a display to enhance the architecture of your building. Color drawing and quote at no cost. Call collect or write today — D DAKTRONICS INC. DAKTRONICS, INC. Box 128 Brookings, SD 57006 Ph. 605/692-6145 TOLL FREE 800/843-9879 (exc. AK, HI and SD) TELEX 29-5013 DAKTRONCS BKNG o r th w e s te r n B a n k e r, A p ril, 1984 Digitized Nfor FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J Thomas D. McKechney and O m ef G. Voss Jr., financial services. Patricia L. Chan, North American banking. Richard A. Bodem, I. Benedic^ Espinos and Richard S. Wilk, p r ? vate banking, trust and investment services. Dana B. Johnson and F. Peter Behrens, securities trading and pul^p lie finance. Richard A. Alston, Nell E. Funk, Steven P. Montross, Patricia S. Stock and Deborah S. Wernet, special industries. f Stephen M. Cunningham ana Nancy I. Willis, U.S. capital mar kets. Ronald R. Richter, wholesale banking administration and traii^ ing. Martin T. Cramer was elected a vice president of Continental Bank International (New York). Robert H. Whittlesey II wad elected a vice president of Continen tal Illinois Leasing Corporation. Commerce Bancshares, Inc., Kan sas City: Eugene L. Mahaffey has been elected vice president with re sponsibility for the electronic bank ing department for the holding com pany, as well as the bank card divi sion for Commerce Bank of Kansas City, N.A. He has been with the Commerce organization since 1970, serving as manager of the bank card center for the lead bank, as well as vice president for the holding com pany in retail banking and loan ad ministration. He holds a B.S. degree in Business Administration from Kansas State College of Pittsburg. At Commerce Bank, William E. Lupton has been elected vice presi dent in the trust division, which he first joined in 1973, becoming senior trust officer in 1976. For the next seven years he worked for the trust departments of two major banks in the metropolitan Kansas City area. Mr. Lupton earned a B.A. in Person Drovers Bank of Chicago: Ap nel Administration and Political pointment of six people to new posj^ Science from the University of Kan tions has been announced by James sas at Lawrence, and a J.D. from the J. Carmody, president. They are: University of Kansas Law School. John Hommel, assistant vice president—trust operations. Continental Bank, Chicago: Jo Jeanette Sliwa, assistant viq p seph Alaimo, 53, vice president, has been named director of investor rela president—loan operations. George Marks, assistant vice tions in the corporate treasury de president—investment department. partment. Michael J. Altenburger, Daniel S. Bleil, correspondent 34, vice president, has been named • manager of the equipment leasing banking officer. Elizabeth J. Brancato, operations division of the special industries officer—EDP services. department. Ronald P. Maryas, operations of Continental also announced the appointment of 31 new vice presi ficer-ca sh management. dents: First National CharterBank, K ai? Mark J. Mickey, audit. sas City: Nancy L. Spavale, man John L. Mroz, check processing. ager of contract services, a data pro Karen J. Curtin, Zed S. Francis cessing support group, has been and Diane L. Mazurczak, Chicago named a vice president. Before joir^| and Midwest commercial banking. ing the bank in January of this year, James H. Purks III, corporate af Mrs. Spavale was vice president of fairs. Community Federal Savings and Michael C. Clement, corporate Loan. She attended Kansas State personnel services. University, Manhattan; Southern I]£ Elhamy Gresh, domestic multina linois University, Carbondale, and tional banking. Webster College, St. Louis. Nancy S. Markley, Michael J. Roche and Allan L. Serbus, financial Harris Bank, Chicago: Robert J. information services. Scott has been elected a vice presi~ Joan Y. Ambrose, Paul J. Binder, dent. He is a member of the trust de- ou’ve heard it said that the future holds no guarantees, but you’ve never heard it from us. In fact, we’ve guaranteed $2 billion in student loans, enabling hundreds of thousands of students throughout the nation to pursue the higher education that promises a better future for them and for the nation. We are HEMAR— a group of organizations dedicated to guaranteeing the future. Through the Higher Education Assistance Foundation we guarantee student loans for more than 1,900 financial institutions, allowing students to attend thousands of colleges, universities and vocational schools. Through the Y Overland Park. Kansas Minneapolis/St. Paul, Minnesota https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HEMAR Service Corporation we administer student loan portfolios for financial institutions and offer administrative services to student loan guarantee agencies. Through the Higher Education Loan Programs of Kansas, West Virginia and Washington, D.C., we enable students to go to school by providing loans that otherwise may not be available to those students. At HEMAR we guarantee more than student loans. We underwrite excellence in every area we touch: in access to education, in service to financial institutions and the education communities, in our commitment to the nation’s future. Lincoln, Nebraska • Nashville, Tennessee Our guarantee of excellence is important to the financial institutions we serve as part of the Guaranteed Student Loan Program. Together we make a substantial investment in tomorrow. And together we will continue to take pride in that investment’s far-reaching returns to the nation. For a copy of the 1983 HEMAR Annual Report, contact the Office of the Chairman, Suite 270, 34 Corporate Woods, 10950 Grandview Drive, Overland Park, Kansas 66210, 913-648-4255. Washington, D.C Charleston, West Virginia Cheyenne, Wyoming F IN A N C IA L SO U R C E ’ It’s supplying needed capital through our Merchant Banking Group. Between December, 1982, and July, 1983, we have arranged more private placement financing based on dollar volume for U.S. banking institutions than any other investment bank agent/advisor. It’s providing bridge loan financing to enable a New England bank to expand through acquisition. Our staff of professionals has the experience — and creativity — to arrange financing structures and terms to suit your individual needs. £ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 ÉÉË - m W M ^m ;# It’s helping a Chicago bank extend accounts receivable financing to a local wholesaler who imports toys and knickknacks from the Far East. We view loan participations as partnerships — involving, in each case, a close working relationship between us and our correspondent bank. It’s providing a variety of credit services •for correspondent banks of all sizes all across the country. In times past, the credit extended by Manufacturers Hanover to correspon dents consisted largely of lines of credit and overlines to smaller banks for the •benefit of their customers. Today, the needs of our banking partners have broadened beyond the traditional — and we have what it takes #to accommodate them. In addition to the capital resources of a major money-center bank, we have the human resources. People who are ^knowledgeable about the specialized needs of our correspondents’ customer base — including such sophisticated forms of credit as leveraged buyouts, asset-based financing, leasing and real ^estate construction loans. We also have a well-earned reputation as a willing and innovative lender to bank holding companies, both large and % m all, for acquisition purposes. What’s more, we offer both private placement 9 and offshore debt financing to supple ment traditional revolving credits. It has taken hard work and an unwavering commitment for Manufacturers Hanover Trust to be so widely regarded, for so long, as America’s premier correspondent bank. Today, as always, we bring quality, loyalty and consistency to our corre spondent network of 2,700 domestic and 1,700 international banks. Quality in our services and the personnel who deliver them. Loyalty under varying economic conditions. Consistency in our day-to-day handling of details, whether performing credit or operating services. Discover The Financial Source. Contact Merrill O. Burns, Senior Vice President and Deputy General Manager, Manufacturers Hanover Banking Group, 270 Park Avenue, New York, NY 10017. Telephone: (212) 286-4940. MANUFACTURERS HANOVER The financial source. Worldwide. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M e m b e r F D IC 14 partment and is editor of the bank’s Investor’s Advisory Service, a monthly investment newsletter for individual subscribers. Mr. Scott joined Harris in 1980 after serving as a stock broker with firms in San Francisco. He is a 1963 graduate of Drake University, Des Moines. Manufacturers Hanover Trust Co., New York: Robert E. Allen, ex ecutive vice president, corporate ad ministration and finance, American Telephone and Telegraph Co., has been elected to the board of Manu facturers Bank and Manufacturers Hanover Trust Corporation. Northern Trust Corporation, Chi cago: A filing has been made for reg ulatory approval to form an asset management subsidiary which will provide portfolio management ser vices principally for corporate pen sion and profit sharing plans and other tax exempt institutional in vestors. Named The Griffin Group after the versatile mythological animal which guarded the gold in Scythia, the new firm will open its doors with approximately $2.5 billion of assets previously managed by Northern’s trust department. Approximately 15 staff members of Northern Trust will be transferred to The Griffin Group, including David R. Geis, who is presently senior vice presi dent and senior investment officer for corporate and institutional ac counts. He will be chairman and chief investment officer of The Grif fin Group. John T. Blunt, who has been vice president with responsibil ity for strategic planning, will be president. Those two men and Robert F. Reusche, vice chairman in charge of trust and financial services at Northern Trust, will serve as mem bers of Griffin’s board of directors. Mr. Reusche said all business ac tivities of The Griffin Group will be under the control of its senior staff members. “ Our objective,” he said, “ is to assure the new firm has ample independence in managing its opera tions to enable it to maximize ser vice to its clients and maintain the exceptional investment performance that the staff has been producing over the past six years.” Mr. Geis said The Griffin Group will manage both equity and fixed income securities for individually in vested portfolios of pension and pro fit sharing plans and discretionary N o r th w e s te r n B a n k e r , A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis endowment funds. In addition, it will manage for The Northern Trust Company certain of its collective and common trust funds. United Missouri Bancshares, Inc., Kansas City: William J. McKenna, president and chief operating officer for Kellwood Company, located in Chesterfield, Mo., has joined the bank holding company board, as well as the board of United Missouri Bank of St. Louis, N.A. The holding company also has an nounced the promotion of Chuck Lewis to assistant vice president, with responsibility for compliance activities in loan administration for the company’s affiliate banks. He joined the holding company in 1977 after graduating from Central Mis souri State University. Craig Gaff ney was named assistant vice presi dent in the loan administration de partment, reviewing loan portfolios of affiliate banks. He was a Kansas bank examiner before joining the holding company in 1982. He has a B.S. degree in Business Administra tion from Rockhurst College in Kan sas City and is pursuing an M.B.A. at Rockhurst. Jim Rawlings has been appointed director of personnel for the holding company. At United Missouri Bank, these appointments and promotions were made: Joseph E. James to correspon dent banking officer for Oklahoma and Arkansas. After graduating from the University of MissouriColumbia in 1982 he joined the bank. Michael D. Bruhn to assistant vice president—commercial lending and leasing department. He joined the bank in 1982 after receiving B.S. and M.B.A. degrees from the Uni versity of Missouri-Kansas City. Ramona Meyer to vice presidentmetropolitan business development department at State Line facility. She joined the bank in 1977 and holds a bachelor’s degree from the University of Illinois. Jeffrey P. Goble and Charles Raplinger were named assistant vice presidents in the investment de partment for portfolio management and financial futures, respectively. Mr. Goble joined the bank in 1981 from the First National Bank of Lawrence, Kan. and has a B.A. and M.B.A. degrees from the University of Kansas. Mr. Raplinger has been with the bank since 1974, graduat ing from Benedictine College with B.A. in accounting. Allen Klopp and Donna M. Otto to vice presidents in the trust de partment. Mr. Klopp is in pension services for clients; Ms. Otto is m a n § ager of administration and account ing services for the employee bene fits area. He is a graduate of Bene dictine Colllege holds a master’s de gree from Northwest Missouri S ta t^ University, taught at Benedictine, and retired from the Army after 26 years as a Lt. Colonel. Ms. Otto joined the bank in 1977 after graduating from St. Mary College in Leaven# worth with a B.S. degree in Business Administration and Mathematics. Dennis Robinett was named assis tant vice president and trust real es tate officer. Linda D. Hardin an(# Martha N. Braun were named perso nal trust officers. In the United Missouri Mortgage Company, new vice presidents are Robert S. Harr, Allan Kraybill and# Edith Harless. Reginald J. Smith was appointed assistant secretary. MHT Speeds Availability ^ Of Corporate Funds 1 Day Manufacturers Hanover Trust Company, New York, has expanded its Deposit Concentration Service^ thereby giving corporate cash man™ agement customers access to their weekend deposits one day sooner. The Deposit Concentration Ser vice uses customer-authorized trans^ fers and the Automated Clearin™ House network to move funds from the customer’s regional bank ac counts to its concentration accounts at MHT. The new service capability is an outgrowth of negotiations be^ tween MHT and the New York Automated Clearing House to pro vide Sunday processing. The extended service, which no\y services weekend receipts or de posits to be concentrated on Sun days, results in available funds in the concentration account on Mon day morning. Previously, becaus^ processing halted on Saturday mornings, deposits reported after that became part of Monday’s pro cessing and did not become avail able funds until Tuesday morning. £ The goal of the service is to create a central cash pool for the customer that will reduce idle balances, in crease funds control, provide for bor rowing needs, and offer wider in v e s # ment opportunities. People are talking about the profits to be made: Investment tax credits, depreciation deductions, and potential residuals can allow a 13% lease to yield a 33% or higher loan equivalent. People are talking about how big the market is: Ag-leasing is part of a huge 150 billion dollar leasing market. And they’re talking about how the market is growing: A new tax law favors the lessee of agricultural equipment. But they’re also saying that a leasing service is costly: Start-up costs may approach $150,000 for legal research, qualification requirements, data processing programs, promotional materials, and an expanded staff. It's clear they're talking more than egg money. So how can you break into leasing without breaking the bank? The answer is Bank Participation Leasing from Collateral Financial Services. CFS takes care of the details: billing, collecting taxes, marketing, documenting, and financial reports. You take care of valued customers on a direct, personal basis. You determine your investment in each lease — from 10% to 75%. Don’t wait. W hile you’re sitting on it, independent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis leasing companies are getting fat on business that could be yours. Call CFS today or send in the coupon below. l>u i j T i i iAV, Ii1 1*1 U A T F IN A N C IA L SERVICES IN C . I want to find out how easy it is to enroll in your leasing program. Send me the brochure "How To Tap Into The $150 Billion Leasing Market.” -Title. Name. Institution. Address. City________ _ Mail to: State. COL L A T E R A L F IN A N C IA L S E R V IC E S IN C . Corporate Offices 444 Lafayette Road St. Paul, M N 55101 Toll free 1-800-328-4136 16 Taylor Will Head Continental Bank Employers Mutual Reports { 1983 Was Break-Even Year AVID G. Taylor, 54, vice chair man and a director of Continen tal Illinois Corporation and Conti nental Illinois National Bank and Trust Company, was recently named chief executive officer of Continental by the board of directors, succeeding Roger E. Anderson, chairman, who announced plans to retire from Con tinental shortly after the annual meeting. In addition, the board announced its intention to elect Mr. Taylor chairman at the board meeting fol lowing the annual meeting on April 23. A “ breakeven year” for the com bined operations of the property and casualty insurance segments of Em- ^ ployers Mutual Companies, is the way Robb B. Kelley, chairman and chief executive officer, described 1983 at the annual policyholders meeting in Des Moines headquar-^ ters last month. This was a noteworthy achieve ment in a year that has been charac terized as the property and casualty insurance industry’s “ worst year< since the San Francisco earthquake in 1906,” Mr. Kelley said. The pro perty and casualty companies pro fited by only $38,428 on total reve nues of over a quarter billion dollars ( of written premiums and investment income. Combined assets of the Employers Mutual Companies (EMC) passed the half-billion-dollar mark in 1983 < and reached $532,204,000 on Dec. 31, 1983, Mr. Kelley reported. Besides the “ flagship” Employ ers Mutual Casualty Co., the EMC companies include Union Mutual In-i surance Co. of Providence, an affili ate; American Liberty Insurance Co. of Birmingham a wholly-owned sub sidiary, and EMC Insurance Group Inc., a publicy-held insurance^ holding company in which Employ ers Mutual owns a 92 percent inter est. EMC Insurance Group Inc. op erated through one life insurance, one reinsurance and three property < and casualty insurance subsidiaries. Three other smaller, insurance-re lated companies (EMC Under writers, Ltd., EMC Premium Ser vices Co., and EMC Risk Services,* Inc.) are included in the total assets figure. All six of EM C’s property and casualty companies pool their insur ance operations, with their in surance being marketed through a single set of 18 branch offices serv ing about 3,000 independent in surance agencies from coast to coast. Mr. Kelley said that Employers Mutual continues to maintain a con servative stance as regards reserv ing funds for payments to policy-, holders who have suffered losses. “ This has its effect on profitability reports, so under-reserving has become a more common practice among many insurance carriers. ( Had we assumed the more specula- D D.G. TAYLOR E.S. BOTTUM Continental also announced that Edward S. Bottum, 50, executive vice president, was elected president of the corporation and bank, suc ceeding John H. Perkins. Both Mr. Anderson and Mr. Per kins stated they will not stand for re-election to the board at the annual meeting. Late in 1983, Mr. Perkins, 62, and Vice Chairman Donald C. Miller, 63, also announced their intentions to retire from Continental in 1984. Mr. Perkins said he will retire shortly after the annual meeting. In August, 1983, Mr. Taylor was elected vice chairman and a director of Continental and Mr. Bottum was elected a director. A further realign ment of executive responsibilities within the bank was announced at year-end (see Jan. ‘84, pg. 24). Mr. Anderson said the two men “ have implemented major organizational changes at the bank and have re ceived the broad-based support of our staff needed to assume the lead ership of the organization. With these key factors in place, the board and I are confident in the abilities of this new management team to lead Continental, and I now feel comfor table with my own retirement plans.” Mr. Taylor said, “ I appreciate the Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis confidence and support given me by the board of directors and by Roger Anderson. Ed Bottum and I are committed to carrying out the bank’s recovery program as quickly as possible. The past two years have been most difficult for all of us at Continental, but we learned from the experience. With this knowledge in hand, we must continue to direct our attention toward solving our pro blems and identifying new oppor tunities for the organization for the future. ’ ’ Mr. Anderson joined Continental as a trainee in 1946. He spent his early years in domestic lending before his assignment to the interna tional banking department, which he headed from mid-1959 to Janu ary, 1968. The bank’s first overseas office was opened in London in 1962 in this period. He was named a se nior vice president in 1965, execu tive vice president and a director in 1968, vice chairman in 1971, and chairman and chief executive officer in 1973. Mr. Taylor joined Continental in 1957, becoming a vice president in the bond department in 1966 and a senior vice president in 1972. He was named head of the bond and money market services area in 1974 and was elected executive vice presi dent at that time. Mr. Taylor received his B.S. de gree in 1951 from Denison Univer sity and his M.B.A. degree in 1953 from Northwestern. Mr. Bottum joined Continental in 1959. After domestic lending assign ments, he was named manager of Continental’s banking subsidiary in Belgium in 1968 and was elected a vice president in 1969. He returned to Chicago in 1971 to head the Euro pean division of the international de partment. In 1976 he was named head of corporate planning, research and development and was elected a senior vice president. He was ap pointed in 1980 to head the metro/ midwest division in the commerical banking department. In the follow ing year he became head of trust and investment services and was elected an executive vice president. Mr. Bottum received his B.S. de gree in electrical engineering from Purdue University in 1955 and his M.B.A. degree in 1959 from Har vard. 17 Make it easy on yourself! ^ How does Dawson make selling Multi-Peril Crop In surance easy on you? By helping you every step of the way. We’ve prepared a comprehensive training manual which clearly explains writing the M.P.C.I. policy. ® We offer complete coverage from any natural disaster in one, easy-to-understand policy. prospered when others have failed. Today, we face the future with confidence in our stability. For MultiPeril Crop Insurance, look to the company that’s as solid as the ground you walk on. Dawson. . .we’ve been there since 1917. We’ll be there for you. We offer your customer the best form of CASH FLOW INSURANCE money can buy. • When you become a Dawson agent, we’ll be right beside you to help. . .every step of the way. That makes things a lot easier for you! THE DAWSON COMMITMENT. . . THREE GENERATIONS STRONG ® Dawson Hail Insurance Company has weathered the Great Depression, World War II, and today’s biting inflation to become a respected, vital force in the insurance industry. We’ve survived, grown and P.O. BOX 1820 FARGO, ND 58107 IN NORTH DAKOTA CA LL TO LL F R E E : 1-800- 437-4680 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1-800-342-4848 N o r th w e s te r n B a n k e r, A p ril, 19 84 18 Norwest Forms 60 Client Executive Teams to Serve Commercial Business ORWEST Corporation has de veloped a new system, unique within the banking industry, to more aggressively market its entire range of products and services to the commercial client through one indi vidual contact. Called the Client Executive Sys tem, the plan was to be fully opera tional within Norwest’s seven-state banking region by the end of March. It will operate similarly to the “ Hub” concept announced by Nor west last month for its correspon dent bank business. According to John Morrison, Nor west’s chairman and chief executive officer, establishment of the system has involved a total reorganization of the corporation’s commercial bus iness function. Increased com p etition from money center banks and other finan cial institutions, as well as “ the more complex needs of our commer cial customers,” brought about the significant change, Mr. Morrison said. He pointed out that, in the past, commercial clients were called on by representatives of individual Nor west banks or service providers (such as trust or international de partments, leasing or venture capi tal companies). “ Our new unified approach draws together the resources of our 86 banks and our campanies and makes them available to businesses in our region through one individual . . . the client executive,” he said. Calling the system revolutionary for the banking business, Mr. Morri son said the plan will operate through a network of approximately 60 client executive teams. Currently, teams are located in Des Moines and Mason City, Iowa; Minneapolis, St. Paul, Hopkins, Bloomington, Ro chester, Duluth, Mankato and Mar shall, Minnesota; Billings and Great Falls, Montana; Omaha, Nebraska; Fargo, North Dakota; Sioux Falls and Rapid City, South Dakota; and LaCrosse, Wisconsin. “ Each client executive will be re sponsible for helping a specified list of clients and prospects (100 to 150 companies) to determine all of their financial needs and will match those needs with the resources of Nor west’s service providers and local banking affiliates,” Mr. Morrison explained. “ Our goal is not just to get more of the business,” he said. “ It’s to be come the financial resource of first choice for these customers.” He pointed out that the system is based on a client-driven concept which states that “ the needs of Nor west clients should determine the products and services we provide.” tive approach to reserves that others have, our results for 1983 would have appeared better, though less secure,” he said. Other aspects of Employers Mut ual’s 1983 results were brighter than the property and casualty segment, Mr. Kelley reported. The reinsurance company, for ex ample, continues to maintain good profitability and is one of the com posite-ratio leaders in the rein surance business, Mr. Kelley said. Employers Modern Life Co. is ap proaching the billion-dollar mark in insurance in force and on Dec. 31, 1983, stood at $970 million — 32% more than the year before. New life insurance policies issued in 1983 to taled $365 million, up significantly from $158 million the year before, Mr. Kelley said. As for 1984, Mr. Kelley said ac quisition of Farm and City Insur- ance Co. on January 3 of this year by the publicly-held EMC Insurance Group Inc. “ should contribute to our bottom line.” This company, which operated principally in Iowa underwriting non-standard risk auto insurance, historically has shown ex cellent profitability, he said. In 1983, Farm and City’s composite loss and expense trade ratio was 92.2%, and the average of its five previous years was 95.0%. General management and staff of Farm and City will continue to oper ate the company separately in its own offices in West Des Moines. Other EMC operations are head quartered in the home office build ing at 717 Mulberry Street in down town Des Moines. Bruce G. Kelley, a partner in the law firm of Bradshaw, Fowler, Proc tor and Fairgrave, was elected to the board of directors of Employers N DigitizedN for o r thFRASER w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis That concept, he said, will help to establish a “ long-term, consistent^ relationship between a company and one individual who really under stands the client’s business.” He said the new approach also woulc^ benefit the corporation by providing information leading to development of new Norwest products and ser vices. According to Mr. Morrison, t h ^ unified, corporate approach to the commercial market is a continuation of the Norwest strategy to develop itself as a “ single punch” organiza tion. Establishment of the system i ^ comparable in significance to the management reorganization in 1982 and the name change for all affili ates in May 1983, he said. Norwest Corporation is a $20 b il^ lion diversified services organization with 86 commercial banks and seve ral specialized financial companies operating in 42 states and five other countries. 0 The 60 client executives and client executive teams were drawn from Norwest ranks, Mr. Morrison said, and average eight to ten years’ experience is the commercial mar0 ket. Operating from the 18 bank lo cations noted above, they will report to 15 sales managers, located at Norwest affiliate banks. Emphasis will be placed on businesses with a p # proximately $5 million or more in annual sales, with the potential mar ket pegged at almost 10,000 busi nesses in the operating area of Norwest. # Mutual Casualty Co., EMCASCO Insurance Co. and E m ployers Modern Life Co., and John W. But ton, president of Employers M oderi^ Life Co., was elected to the board of that company, at the annual policy holders meetings in March. Comptroller Appointment Comptroller of the Currency C.T. Conover has announced the appoint^ ment of William F. Grant III to di rect the new banking relations divi sion. Mr. Grant will report to De puty Comptroller for Industry and Public Affairs James E. Boland. ^ Under Mr. Grant’s direction, t h ^ new division will provide liaison be tween the Office and bankers, state bank associations, other bank trade associations and state bank super^ visors. 19 TA KE FIVE and PRO SPER! “ Central States of Omaha inten sive training programs provide the key to developing a total banking relationship with your customers.” — Mike O’ Neal, Vice President of Installm ent Loans, Omaha State Bank F o r M ore Inform ation A bout Our C ro s s S e llin g P ro g ra m Call D ick M oore C o lle ct: 1 (402) 397-1111 the C red it In s u ran ce D ivision o f CENTRAL STATES o f OMAHA WESTERN AT 96TH https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BOX 34350 OMAHA, NEBRASKA 68134 N o r th w e s te r n B a n k e r, A p ril, 19 84 Nationet Expands Switch Eligibility either as an equity owner or as a a t i o n e t , i n c ., a national electronic funds transfer net non-equity participant. (2) Proprietary Financial Institu work, has expanded its eligibility criteria to provide more EFT sys tions: This category includes pro tems and terminal providers an op prietary financial institutions that portunity to participate in a na agree to exchange EFT messages tional switch. Currently a system of with other Nationet customers, and 13 shared EFT networks, Nationet provide access to its terminals from has offered participation rights until other Nationet customers. (3) Third-party Processors: This now only on an equity ownership category designates service com basis. Paul R. Kramme, president of Na panies who provide on-line transac tionet, headquartered in Dallas, said tion processing services for one or the organization now will allow non more insured financial institutions equity members to participate for which are not owned or controlled by the first time since its formation in the service company. (4) Terminal Providers: This cate February, 1982. The network will ac cept participations in four new cate gory provides opportunities for par ticipation to companies that do not gories, including: (1) Shared Networks: To qualify issue cards or authorize transactions for participation, a shared EFT net and agree to provide access to its work must be owned or controlled by terminals from other Nationet cus an insured financial depository in tomers. Mr. Kramme said that in paving stitution, it must offer on-line ca pability, and it must be capable of the way for expanded opportunities sharing its terminals among a va to participate in the EFT network, riety of banks and thrift institu Nationet’s board of directors ap tions. Shared EFT networks now proved a fee schedule that enables have the opportunity to participate new non-equity participants to re- N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis duce initial cash outlay by spreading^ start-up fees over the three year life of the contract. He said most new participants could be on-line with the network for first year invest ments of $15,000 or less. # Nationet’s current membership includes 13 shared EFT networks. Combined, the members offer access to over 3,500 financial institutions at more than 5,000 ATM and p oin t# of-sale terminals. At this writing, Nationet has three members on-line: ITS, Inc., Des Moines, la; Instant Teller, Los Angeles, Calif.; and Tyme Corp., Milwuakee, Wis. T w # more systems will become opera tional in March, two in June, and the remaining six by September 1984. Once fully operational, Nationet will offer service in 27 states, effec# tively serving more than half the U.S. population. It also will serve British Columbia. Late last year, Nationet added three new shared EFT networks t<0 its membership list: Money Net work, Redwood City, Calif.; S & L Computer Trust, Des Moines, la., and Instant Transfer, Honolulu. Hawaii. ® 21 >H. Peter DeRosier Joins Union National in Wichita H. Peter DeRosier joined Union National Bank in Wichita, Kans., re cently and has 'been elected se nior vice presi dent in the cor respondent bank in g department. 'T h e announce ment was made V r by Michael T. Fleming, presi d e n t of Union H.P. DE ROSIER National. Mr. DeRosier formerly was vice president and manager of the corre spondent banking division for Na tion a l Boulevard Bank in Chicago, which he joined in 1969. Prior to that, he had been an officer in the correspondent bank division with Central National Bank & Trust Co. >of Des Moines (now United Central Bank of Des Moines). Mr. Fleming said Mr. DeRosier joins Union National with a solid background in agriculture, business >and management. Mr. DeRosier was graduated from the Iowa A g Credit School at Ames, which is sponsored by the Iowa Bankers Association, and from the Graduate School of Banking at the University of Wisconsin, Madison, and has done post-graduation work at the University of Wisconsin. IBAA President Testifies Before Senate Banking If financial deregulation is here, new products and services for banks shouldn’t be far behind, the Inde pendent Bankers Association of America testified today. “ The IB A A supports new pro ducts and services for banks to help compensate for the substantial dere gulation of our liabilities,’ ’ incoming IB A A President Jack King told the Senate Banking Committee at hear ings on three legislative proposals to expand the list of products available to banks. But if the price for opening up the products and services area is the re moval of the prohibition on the pay ment of interest on demand deposit accounts or explicit change in the Douglas Amendment or McFadden Act, the price is too high, the A sso ciation says. It is an endorsement with two vital strings attached. “ Putting interest on business transaction accounts will hurt the very entities it purports to help— cash-short small businesses which must utilize credit,” noted Mr. King, who is also president of the Valley Bank of Kalispell, Mont. The IB A A executive applauded the change in the comprehensive proposal of Committe Chairman Garn which would subject bank holding companies’ interstate ac quisitions of thrifts to the Douglas Amendment. But he charged that the exceptions which that provision a llow s —s p e cific a lly , in d u stria l banks, consumer banks and quali fied thrift lenders—undercut the thrust of the Treasury bill, whose noble goal it is to assure that all bank-owning organizations operate under the same rules and regula tions. “ The non-bank bank loophole must be closed, not legitimized.” Stealing from petty cash and get ting away with it is no reason to legi timize embezzlement, he said. Drovers Bank has just made discount brokerage available to its correspondent bank customers. This means fees generated for you, and substantial savings for your customers. And Drovers specialists can advise you how to market this new and valuable service in your area. Discount brokerage: another reason Drovers is one of the fastest growing correspondent banks in the midwest. Call John Crotty or Kathy Hardy at 1-800-621-8991. In Illinois, 1-800-572-2498. Remember, fees for you, savings for your customer. And it all starts with a phone call to Drovers. Drovers Bank o f Chicago 47th & Ashland Avenue, Chicago, IL 60609 • 1-312-927-7000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER FEDERAL RESERVE SYSTEM AND FDIC 22 THOSE attending Daktronics Sales/Service Seminar from left to right: George Holubitsky, Randy Black, George Page, Rocky Garia, Bob Poeschl, Tom Swett, Dan Swift, Rick Tourigny, Geoff Bommer, Tim Brosnahan, Greg Ross, Nick Bush, Allan Smigiel, Jeff Baker, and Bill Harvey. Also attending, but not shown, were: Scott Thiem, Bruce Stausser, and Tim Overmyer. Daktronics Conducts Training Seminar N introductory sales and ser vice seminar was conducted re cently by Daktronics, Inc. for sales and service representatives from around the nation and world. The seminar was held in Brook ings, S.D., at the Staurolite Inn and at the Daktronics facilities. Dak tronics, Inc. is a designer, manufac turer and distributor of standard and custom scoreboards, time/temp displays, animated message sys A tems and legislative voting systems. Key people in the company’s sales, engineering and customer service departments conducted the seminar. The two-day event covered com prehensive training on Daktronics information display product line in cluding demonstrations, programm ing, marketing and sales, and custo mer service. Daktronics holds seminars of this type several times each year in We’re putting $3 million into renovations and we’re bright new and fresh. But we’re still the same cozy, comfortable, informal, inexpensive downtown “ inn on the park” you’ve always enjoyed. e created a brand new restaurant, the 8 th St. D eli & Lounge, a New Y ork style eatery fo r breakfast, lunch, fu ll course dinners, late snacks and a c o m fo rta b le lo u n g e w ith e n te rta in m e n t at c o c k ta il h o u r and a la te -n ig h t p ia n o bar. A n d , we’ve re m o d e le d o u r guest ro om s and suites w ith new fixtu re s, new fu rn itu re , new fa b ric s — a w h o le new look. W B u t we're s till th e same co nve n ien t p la ce — rig h t on M ic h ig a n Avenue and C h ica g o ’s G ra n t P a rk— so you can w a lk to the c ity ’s m a jo r business center, o r take o u r co urte sy lim o u s in e to sh o p p in g a nd to u ris t a ttra ctio n s. W ith p le n ty o f p u b lic space fo r m eetin g s, conferences, displays, banquets. LOTS O F FR EE PARKING. N o r th w e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A n d a b ig o u td o o r p o o l a nd d eck fo r s u m m e r re la xa tio n. All things considered, The Essex Inn’s the best downtown. For Brookings and at various locations^ around the country. The purpose of the seminars is to inform indepen dent dealers on new products, pro duct enhancements and selling tech niques. 0 Those attending the seminar in clude dealers from the states of Ohio, Indiana, Illinois, Utah, Min nesota, Pennsylvania, Iowa and Ari zona. Dealers were also present from0 two Canadian provinces, Alberta and Manitoba and the most distant attendee was from Australia. Kirchman Corporation Names« Bonnie M. Smith President The appointment of Bonnie Mclntire Smith as president and chief ex ecutive officer of The Kirchman Corporation in O rlando, Fla., was announced last month by Kenneth P. Kirchman, chair man. She will have full respon sibility and au B. MC INTIRE SMITH0 thority for the direction of corporate level activities and strategic programs for all Kirch man companies, including Florida Software Services, Inc., Omni Re0 sources, Inc., Infoserve, Inc., Kencom, Inc., and Link X., Inc. She will report to Mr. Kirchman. Ms. Smith joined the company in February, 1974, and has held a var0 iety of executive positions within the firm, ranging from administra tion, marketing, product support and services to corporate opera tions. She had been active president^ of Florida Software Services since 1982 until her appointment as presi dent and CEO of The Kirchman Cor poration holding company. information or reservations call (800) 621-6909 Deluxe Sales, Net Are Up In Illinois call collect Based on company statements for the year 1983, which are as yet un audited, Deluxe Check Printers, In-0 corporated will report record sales of $619,694,808 an increase of 12.8% over last year’s $549,519,266, ac cording to Eugene R. Olson, chair man and chief executive officer. 0 Net income for the same period was a new high of $76,604,559, up 18.1% over the year 1982 when earn ings were $64,887,443. Net income per share was $3.37 compared tc0 $2.83 last year. Chicago, Illinois 60605 (312) 939-2800 Another fine Aristocrat Inn of America i 23 Named Director of Mosler Marketing Communications Joseph MacDonald, senior vice president, Mosler, has announced the promotion of John N. Pearce to director, mar keting communi cations for the company. In this assignment, Mr. Pearce directs all c o r p o r a t e marketing com munications for J.N. PEARCE Mosler including advertising, sales promotion, public relations, trade shows, incentive programs, sales meetings and the company’s printing operation. He was recently awarded mem bership in the company’s 1983 Presi dent’s Club for outstanding admin istrative contributions. Prior to his promotion, Mr. Pearce was manager, marketing communi cations at Mosler. His experience in the communications field includes positions as creative supervisor and copy contact at Griswold-Eshleman, Cincinnati, and copywriter and broadcast producer at Cranfill A d vertising, Indianapolis. A 1972 graduate of DePauw Uni versity, Greencastle, Ind., Mr. Pearce also spent two years in the United States Army serving as a military journalist and advertising specialist. He is a graduate of the Army’s Defense Information School. InnerLine Relocates Corporate Headquarters InnerLine, the first “ electronic communications utility’ ’ for the fi nancial services industry, has estab lished new corporate headquarters in Arlington Heights, 111., according to Wayne B. Le win, chief executive officer. The newly-constructed 10 thou sand-square-foot office space, lo cated at 95 W. Algonquin Road, ac commodates InnerLine’s expanded staff of 35 home office employees. Mr. Lewin describes the move from Rolling Meadows’ Gould Center as a “ necessity’ ’ that is representative of InnerLine’s growth. “ In the past year, we’ve grown from a computer-based information system with twelve basic functions to a sophisticated electronic net work of more than 40 interactive fi- nancial services available nation wide,’ ’ he said. Colorado Purchase Expands Associates’ Money Orders Associates Corporation of North America (The Associates) has pur chased the assets of NierBanc Cor poration of Denver, Colo., it was an nounced by Reece A. Overcash, Jr., chairman and chief executive officer of The Associates. NierBanc, founded in 1968, oper ates 73 check cashing and money or der sales offices in Texas and Colo rado. The NierBanc network will be come part of Associates Financial Express, Inc. (AFEX). NierBanc President Harold A. Niernberger has joined A F E X as a senior vice presi dent in charge of its check cashing business. A F E X issues money orders and official checks through a variety of independent organizations, includ ing banks, savings and loan compa nies and retailers. A F E X has been in the payment instrument business for more than 30 years. The check cashing centers allow The Associ ates to sell A F E X money orders di rectly to consumers. 9 1 s t A N N U A L F IN A N C IA L S T A T E M E N T DECEMBER 31, 1983 ADMITTED ASSETS Bonds: (Amortized) Government ....................................... State, County and Municipal......... All O th e r .............................................. $30,036,676 37,304,351 7,867,714 $75,208,741 Stocks: (Market - N.A.I.C.) Preferred............................................... 253,306 Common ............................................... 781,347 1,034,653 Real Estate— Home Office Building 1,108,737 Cash and Bank Deposits 1,495,318 Agents Balances and Reinsurance Receivable 6,096,303 Interest Due and A c c ru ed ................................... 1,651,239 All O th e r ................................................................... 133,003 TO TAL ............................................................... $86,727,994 LIABILITIES AND SURPLUS Reserves for Losses and Loss E x p e n se ................................... Contingent Com m issions..................................... Taxes (Other than Federal Income) Federal Income T a x e s .......................................... Unearned Premiums ............................................ Funds Held Under Reinsurance Treaties . . . . $15,098,333 4,270,551 493,670 234,369 5,909,349 619,988 ................ 2,369,660 Reinsurance Balances Payable All O th e r ....................................... ............................................. 556,674 TO TAL L IA B IL IT IE S $29,552,594 Surplus as Regards Policyholders......................... 57,175,400 TOTAL ................................................................. $86,727,994 DAVID A. RUTLEDGE, President DALE DEN HARTOG, Sr. Vice President & Treasurer PERRY RUTLEDGE, Sr. Vice President & Secretary 2323 Grand Avenue, Des Moines, Iowa 50312 515/282-9104 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 M GIC can help you iiv m ortgage program s anc "U nderw riting used to be fairly routine. But today, it's both an art and a science because the risks are so much greater. Years ago, when nearly every loan was fixed-rate fixed-term, risks were minimized by low interest rates and steadily appreciating property values. But with today's economic conditions and innovative mortgage instruments, very I careful underwriting is vital to protect both the borrower and the lender. "The importance of secondary market sales is another reason why quality underwriting is so essential. I can assure my customers that their loans conform to most investors' requirements. That's because MGIC pioneered many of today's creative mortgage alternatives and has long been in the forefront of 4 helping lenders recycle their funds through secondary market sales. We know what it takes to conform to the requirements of FNMA, FHLMC and other traditional as well as nontraditional investors. "Pve been in this business a long time and experience really counts. Besides being very . thorough, you have to be very fast. My clients depend on me to respond quickly so 1 they can meet their deadlines. In most cases, if a loan reaches my office before noon, it will be underwritten, approved and in the mail that night. ‘MGIC’s computerized Rapid Delivery System has added a new dimension to the speed and convenience of our underwriting service. Commitment Certificates can be printed in a lender's office in just minutes. And if there are any last minute changes, amendments and endorsements can be transmitted electronically to avoid closing delays." Fay Daniels Regional Underwriter Philadelphia, Pennsylvania | https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ®1984 MGIC pase profits w ith creative prudent risk management. “ It’s amazing how much mortgage risks can vary from one state to another. And even w ithin a state. You really have to know your local market. Like all of our underwriters, I do my homework. I keep up to date with local economic conditions, employment trends, property values, everything that relates to and can affect mortgage lending in my territory. Staying current helps me safeguard the interests of my lenders as well as their secondary market investors. “ I like my clients to think of me as a consultant rather than strictly an underwriter. We talk together almost daily so 1 really get to understand what each lender wants and needs. They know they can rely on me for quick answers... about a special risk, a complex mortgage option, secondary market documentation. . .virtually any problem they run into. "For example, striking a balance between creative, affordable mortgages and asset-liability management is im portant for lenders. MG 1C developed underwriting guidelines that can help when loans feature discounts, subsidies and other rate concessions. By working with my customers to structure a program within these guidelines, 1can help them build in consumer safeguards and still protect the profitability and salability of their mortgages. "M ore and more large lenders are using M G lC s nationwide underwriting capability. There's a growing trend among large lenders to buy loans from all over the country. And they want them to be underwritten to standardized criteria for secondary market salability. We can easily do this job for them with our coast-to-coast network of local underwriting offices.” For complete inform ation on any of our services, contact your MGIC Account Executive or call 800-558-9900 (800-242-9275 in Wisconsin). Pete Olson Regional Underwriting Manager Seattle, Washington M t C Ê). Working hard to earn your business - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Yourcommercial overline request isunderconsideration" You’ve heard that be fore, right? A nd too often, what it really means is, your request has been filed away. Forgotten. Politely ignored. The corre spondent banker, who was all ears when you wanted to talk non-credit services, suddenly isn’t listening. At Continental Bank, things are different. We know commercial customers mean a lot to our correspondents. And our correspondents mean a lot tous. So if you’re ready to go the legal limit, the least we can do is lend an ear. And answer you quickly. At Continental, you get the decisiveness you expect. And deserve. Your credit request isn’t bogged down in red tape. Or held up in committee. It goes directly to your account manager—the officer w ho can authorize most loans. So, you get a decision, fast, from the person who made it. Call Robert B. Holland at (312) 828-6620. Tell him you want to discuss com mercial overlines. Then, start talking. You can be sure w e ’re listening:. CONTINENTAL BANK Continental Illinois National Bank and Trust Com pany of Chicago, 231 South LaSalle Street, Chicago, Illinois 60697 Atlanta *Boston *Chicago •Cleveland •Dallas *Denver Houston •Los Angeles *Minneapolis •N ew York Oklahoma City *St. Louis •San Francisco •Seattle •White Plains DigitizedN for o r thFRASER w e s te r n B a n k e r , A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 GROWTH in assets from $50 million to $71 million in two and one-half years was experienced by First National Bank of Waverly, la., with out an increase in number of employees, after this new building with flexible design was completed by Kirk Gross Company of Waterloo, la. Modern facility leads to: # • • improved production • improved employee attitudes • additional business HEN a financial facility becomes outdated, over crowded and inefficient, chances are good that the bank’s statement of condition reflects a relatively small investment in banking house. Increasing that in vestment can have some bottom line tax advantages but your accountant can explain that better than I. ® The bottom line advantage we can illustrate, how ever, is the increased business a modern up-to-date fa cility can generate and how improved production and employee attitudes will bring in additional business. T'hese important advantages are many times neglected •in the cold world of annual reports but they do, with out question, contribute to the real “ net worth.” Personalize By Design Today’s customer demands more personal service ^than ever before. This asset of personal service must W # By GERALD L. GROSS never be lost by banks of any size or overlooked in the “ name of progress.” The banker with the facility that best accommodates the personal needs of his custo mers will generate more business than the banker whose facility can’t meet those needs. Building a new facility or remodeling is a perfect op portunity to “ design for service.” Service is provided by people, not brick and mortar, but to provide that service, space and the flexibility to function properly are the basic parameters of good bank design. With services changing almost daily, the ability to readily and economically adapt to change are the signs of a well planned facility. Thus, while people are charged with the responsibility of making a profit, the facility from which they operate must allow them to do so. New Facility Increased Business An excellent example of how a new facility helped to generate increased business is the First National Bank of Waverly. Completed in August of 1981, the banks assets were a little over $50,000,000.00. Today, only two and one half years later, their assets are over $71,000,000.00. Due to the building’s flexible desipi for service, this increase was accomplished without in creasing the number of employees. When customers reMODERN FACILITY . . . (Turn to page 102, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 28 After first 18 months— ^ 5 0 % of bank’s teller activity handled by # new office facility UST 18 months after Granite City Trust and Savings Bank in Granite City, 111., opened a newly constructed facility nearly one mile from the main bank, that office was handling 50% of the bank’s total teller activity. In addition, ac cording to Daniel Debert, vice president and man ager of the facility, located at 2402 Madison Avenue in Granite City (pop. 37,000), at least 1,000 new deposit accounts have been opened for a total of $1.8 million in new deposits. All of this activity is served by a staff of seven, including Mr. Debert. Late last year a new Illi nois law made it permissible for detached offices to accept and process loans, so a loan officer has been added recently to the facility staff. Another change in Illinois law in March, 1983, made it per missible to offer safe deposit boxes at facilities and that service also is included in the new office. Because downtown Granite City is completely developed and, as in most other cities, outlying shopping centers have altered traffic flows, it was decided to place the detached office in a residen tial area on a main traffic artery. They chose HBE Bank Facilities of St. Louis. HBE planners were immediately presented with a challenge— a tight site of less than 30,000 square feet that had to accommodate the bank itself plus future expansion, landscaping and parking. The HBE solution includes the 3,137 square-foot structure pictured on the front cover of this issue, with allowance for a future expansion of 1,380 square feet, a five-lane drive-up facility with stacking capacity for 30 cars, and a parking area for 16 cars. The building itself harmonizes with the sur rounding residential neighborhood. Shaded can opy areas and facade recesses supplement the in sulating qualities of tinted thermal-glass win dows and building insulation to effect energy con servation. Clean lines of the contemporary in terior complement the geometric exterior form. A warm color scheme is carried throughout, high lighted by three imported woven wall hangings that accent the decor behind the teller counters. All of these professionally-designed features by HBE have helped Granite City Trust and Sav ings Bank to offer a modern facility that makes it convenient to do business—for new customers as well as established ones. □ J n LO BBY M E C H A N IC A L W A IT IN G AR E A TÉ LLER S COUPON BOOTHS ^ 1 T \ D R IV E -U P TE LLE R N o r th w e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOP—Focal point of the interior is the teller line, with its distinctive vertical wood-grain tambour wall covering. CENTER—View from officer’s end of building shows main lobby, with vault area at far end. BOTTOM—Compact floor plan shows efficiency of interior work area. All bookkeeping work is done at main bank. 0 29 THE INTERIOR of the new First National Bank of Sumner, la., presents a total ly modernized, warm atmosphere for customers and staff members In this building completed by Office Concepts Ltd. of Waterloo, la. The beautiful in terior is in contrast to the old teller line shown in the insert picture. Achieving marketing goals through building steps By H.W. SCHOONOVER President Office Concepts Ltd. Waterloo, la. NUMBER of banks have enjoyed tremendous growth advantages after creating major opera tional changes. It is not unusual for some to have ex^perienced an increase of 30% or more after comprehen sive development and implementation. W7alk-in potential is growing at a substantial rate. For example, one bank in a depressed area attempted to simply maintain previous volume levels through ^overall operational upscaling. They were pleasantly surprised when, in the first year, deposits increased as A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis well as return on assets and investments. The principal direction contributing to these successes is a result of creating innovative, full retail vehicles. All have devel oped highly effective total marketing machines, opti mizing every aspect of marketing that impacts on, and influences, customers. Essentially, walk-in deposits and sales are increased by drawing new customers. This motivates them to do all their banking with you. Five Basic Marketing Aspects We have identified five basic marketing aspects that are crucial in developing successful marketing vehicles. Important areas to consider are: Location, Service Mix, Personnel/Operation, Advertising/Marketing, Physical Bank Layout, and Design. Each of the above aspects is comprised of numerous individual segments which vary from bank to bank. Every segment must be analyzed and then maximized for banks to achieve top marketing productivity. After the initial on-site evaluation and assessment of an operation, it is oftentimes too expensive for a bank to improve all major aspects at once. In such cases, a program can be developed to span several months, or even several years, with major emphasis on those areas that will bring the faster rate of return. In creased deposits and profits generated by the first seg ment usually more than pay for the next segment. BUILDING STEPS . . . (Turn to page 33, please) N o r th w e s te r n B a n k e r, A p ril, 19 84 LastyearJ financial instituti Over-exposure may have been avoided had they been protected by the Profitstar A sset/Liability M anagem ent System . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Did you lose your shirt with below par earnings? Lower net interest margins, * higher operating costs, loan losses and other factors have all had their impact on the bottom line. Many opportunities e could have been taken and losing situations avoided with proper planning through Asset/Liability Management (ALM). When it comes to ALM, Profitstar ™ ’s got • you covered. It’s an ALM model designed by bankers and CPAs that helps you for mulate various strategies for your bank. ^ For example, Profitstar allows you to look at GAP positions, interest rate scenarios, projected financial statements (ver2,000 fis lost their shirts and the bottom line. Then graph your results or formulate “what-if” strategies within minutes. Profitstar is designed to incorporate your bank’s accounts, policies and philosophies. It is easy to operate and runs on most popular microcomputers. Want to know more? Just call us - toll free - 800- 351-9055 or in Nebraska, 800- 642- 0080. Or clip and mail the enclosed coupon. We’ll send you an informative guide to Asset/Liability Management on the Profitstar system. It just might help you keep your shirt. u Rush me more information on Asset/Liability j Management with the Profitstar system. 8 N am e. ® C om pany. I T itle . A d d r e ss . State . Send to F.N. Bankware, Inc., 1300 First National Center, Omaha, NE 68102. Nl A product of F.N. Bankware, Inc. F.N. Bankware, Inc., is a subsidiary of Farmers National Bancorp, Inc. Home office — Geneseo, Illinois. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 HIGHLY VISIBLE computer operated message board of First State Bank in Scottsbluff, Nebr., has proven highly popular with the local community. The bank devotes two-thirds of the messages to local news, community service information or sports announcements. New building in background completed by Bank Building Corporation of St. Louis is shown in greater detail below. 3 0 % asset growth precedes new building opening T HAS BEEN our experience over the past seventy years that we have been in business that many finan cial institutions enjoy a growth in assets whenever a new facility is opened. But when this growth precedes such an opening, this is truly remarkable. And this is exactly what occurred with our client, First State Bank of Scottsbluff, Neb. First State was confronted with a situation familiar to many old-line, established banks: it was housed in a mature building in an aging neighborhood. Bank offi cers found little room for expansion, with parking ex tremely limited. Further, the bank was hard to get to and difficult to see. Under the leadership of John A. Koenig, the bank sought to improve services to its community while pro jecting a new, positive image - both difficult assign ments under existing conditions. Checklist of Needs Drawing up a checklist, here is what Mr. Koenig and his board determined were their priorities: • Provide an attractive asset to the community through high visibility and convenience; • Create a modern, efficient image, with a visual im pression of strength and security; • Be easily accessible, with plenty of good parking. Mr. Koenig’s staff selected a site on the perimeter of the downtown business district for its new facility, as the business district was already densely populated. And, prime commercial sites were not readily avail able. While convenient, it lacked future growth poten tial. I Digitized N o for r th wFRASER e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By TOM SPALDING Director of Marketing Bank Building Corporation St. Louis, Mo. Alternative Offered Seeking outside advice, Mr. Koenig turned to Bank Building Corporation where, after thoroughly study ing the community, our consultants recommended raz- £ ing several adjacent buildings to provide a campus-like setting in this developing area of the community. The site would then provide ample room for expansion while being easily accessible. In accepting our recommendation, Mr. Koenig £ agreed the expanded site would allow the bank to im prove service and convenience to the community, while the facility provided the striking, visual impact the bank’s board was seeking. To properly utilize the “ L ” shaped site, we designed 0 a building with a head-in, drive-up facility and access from secondary streets. There was plenty of room for customers and employee parking. In fact, customer parking literally was at the front door. Earth berms and masonry construction would g iv e ^ the look of strength and security, as well as efficiency 33 the bank was seeking. The lobby would be invitingly lit • by thermally efficient skylights. Brick flooring would create a passive solar heating system. Advance Publicity Campaign Works Upon approval of the final design, we suggested the ^bank heighten public awareness of the new facility Wwhile it was under construction. The bank used a lowkey approach, displaying an artist’s rendering in the lobby, saying in effect: “ We are growing with you and want you to grow with us.’’ 0 And, according to Mr. Koenig, the response that the bank received was gratifying. From the time it an nounced the new facility to the time the doors were opened, the bank’s assets increased 30 percent! This favorable growth trend continues. Mr. Koenig feels ,^that the community understood the bank’s commit ment and responded. As part of the bank’s marketing program, we recom mended installation of a computerized message center to face the busy intersecion. Since the opening, the message board has become extremely popular. One reason for this may be that the bank devotes twothirds of the messages to local news, community ser vice information or sports announcements. We were very pleased with this project as not only is the bank functional, but its board and president feel it has had a beneficial effect on neighboring commercial and residential property values. In fact, Mr. Koenig told us that the project was the best thing the bank had ever undertaken. At Bank Building Corporation, we feel that the new First State Bank of Scottsbluff, Neb., is truly an ex ample of our philosophy of meeting the needs of the community you serve . . . by design. □ EARTH BERMS and masonry construction provide a look and feeling of strength and security as well as energy efficiency at First State Bank in Scottsbluff, Nebr. RIGHT—Upon entering the main door, patrons are treated to this atrium that provides a splash of greenery for the bank’s interior. Building steps . . . (Continued from page 29) " Limited Initial Investment Our firm has developed successful programs for banks that have been ongoing for up to five years. The key is knowing how to achieve optimum results with a limited initial investment. We do this through compre h e n s iv e space utilization studies, cost analyses, and mechanical-electrical and energy consideration. It is our goal to not only satisfy today’s needs, but also pro vide for tomorrow’s growth. _ The location is, of course, one of the most difficult ^marketing aspects to improve. However, we have worked with bankers who have moved to other loca tions nearby and gained the advantage of “ new custo mer draw’ ’ while retaining their existing customer ^base and enjoying the new bank. After the aforementioned goals have been accom https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis plished, the final evaluation can be made. Staff Attitude-Productivity A major portion of the additional growth can be at tributed to the staff attitude and productivity. The business surroundings and operational improvements have a startling effect on all personnel. Customers are complimentary and the staff perpetuates the good feel ing. You will hear references to “ our bank’ ’ and sense a great feeling of pride. Do not minimize the impact your staff has in securing new customers and keeping the present customer base. Careful planning prior to action can attain for you the growth that is vital in these very competitive times. Our firm has established a solid track record of de signing successful banks in Iowa. Our broad involve ment with retail banking assists us in accurately asses sing walk-in effectiveness, operational strengths and weaknesses, and the direction needed to maximize a bank’s marketing thrust. As one banker told me recently, “ It’s expensive to be mediocre. ’ ’ □ N o r th w e s te r n B a n k e r, A p ril, 19 84 34 Leasing profitable ... ... but be cautious! By JAMES R. RENNER Executive Vice President FBS Business Finance Corporation Minneapolis, Minn. EASING has come a long way in the last ten years as a reputable way to finance equipment. Fifteen years ago it was generally known as the “ lender of last resort.” It is now viewed as a bona fide way of obtain ing use of equipment and is being utilized by 64% of corporations. A recent study peformed by the financial consulting firm of Brimmer and Company indicates significant leasing of various types of equipment in 1982. For example: Computers—$5 billion, or 15% of computer capital expenditures. Motor Vehicles—$9.3 billion, or 31% of vehicle capital expenditures. Agricultural Equipment—$700 million, or 5% of agricultural equipment capital expenditures. L Variety of Forms for Leasing Banks can utilize leasing products for their custo mers in a variety of ways. Any customer needing new equipment for expansion or replacement is a prospect for a lease. Any equipment on which you are going to make a loan probably can be leased. Terms usually will range from three to eight years. Leasing is especially attractive today to companies who cannot utilize the tax benefits on a current basis. They will be willing to trade those tax benefits for a lower payment and in creased cash flow. This is especially true with farmers today, as many have experienced losses, and leasing is a viable alternative. In addition, in a “ farm finance lease, ’ ’ a bank and farmer can agree on the price of the residual at the end of the term; this cannot be done with any other type of equipment. This is limited, how ever, to $150,000 annually per farmer. From the banker’s standpoint, lease assets in the portfolio can be very profitable and another product to offer to your customer. Four Areas to Look At Oftentimes community banks do not recognize the ■ THE AUTHOR SAYS— FBS Business Finance Corporation is the asset-based lending and equipment leasing subsidiary of First Bank Systems, Inc. In addition to our headquarters in Minneapolis-St. Paul we have marketing offices in Milwaukee and Bil lings. N o r th w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis risks which are inherent in leasing. Please remember, a lease is not a loan. Many of the procedures are identical to that of a bank loan; however, there are significant differences as well. There are four areas to look at. # First, the administrative procedures are different. In a lease, the bank owns the equipment and there are risks associated, including potential lawsuits. Also, the leasing company must pay the vendor directly to obtain title to the equipment and also must collect® sales tax and remit those taxes to state and local gov ernments. A second area of concern is in accounting and tax planning. Since the bank owns the equipment, invest ment tax credit is available to it. Banks should mak^® sure that they understand the differences in account ing as the tax accounting is done on a cash flow ac counting, while book accounting is done on the finance method of accounting. Banks are familiar with the fi nance method; however, in the cash method, all cash® flows are taxable and the equipment is then depreci ated. In my estimation, one of the most significant pro blems banks have when they enter leasing is that they do poor tax planning. They wish to obtain the invest ment tax credit to shelter taxes for the current year® however, they do not look at the potential tax shelter the next two to three years. As one obtains a portfolio and if the tax shelters are greater than the current in come, you will be loosing the current value of the tax benefits which you have priced in the transaction. 9 A third area to consider is the credit of the lessee. This is identical to the credit considerations of an equipment loan. You have the same debtor and the same equipment regardless of the legal structure of a_ loan or a lease. 9 The fourth area of concern is the residual assump tions used in computing the rate. After credit, this is probably the biggest risk in the leasing business. To be competitive you will probably have to attribute a v a lu ^ to the equipment at the end of the term; if you are in correct, you will not receive your expected yield. This is especially important in high tech fields such as com puters or medical equipment. It is also important on any equipment, as the market may be depressed f i v ^ years hence. There are other concerns to be addressed in the business, but these four highlight the major risks. Leasing can be a profitable and attractive product for a bank. However, one must be cautious to make^ sure it is done correctly. □ 35 • • Profit for banks as lease service provider By JAMES D. SHEEDY Vice President Financial Services Division Norwest Leasing, Inc. Minneapolis, Minn. L EASIN G is one of the fastest growing industries in the United States. Many economists have fore casted that by 1990 more than 50% of this country’s capital equipment will be acquired through leasing. All •categories of equipment from aircraft to ships, farm tractors to computers and store fixtures to single pur pose farm structures are being leased. The American Association of Equipment Lessors estimates that $200 billion in equipment leases are outstanding. The U.S. •Department of Commerce estimates a 15-20 percent annual growth rate in the volume of new capital equip ment being leased. In the last 15 years, leasing has become a popular form of equipment financing. Leasing formerly was re•garded as a financing vehicle for use primarily by high risk and cash poor corporations. Leasing achieved re spectability and acceptability during the 1960s when banks, insurance companies, utilities and large indus trials started to employ the product. Today, leasing is •view ed as an alternative source of financing for high quality, low credit risk commercial and agricultural customers. As competition among banking institutions con t i n u e s to accelerate bankers have become more crea t i v e and assertive in fostering new customer growth. Specialized service and close attention to the needs of small to medium sized businesses have allowed banks to retain and gain a larger share in the market place. ^ T h e independent bankers are aware, however, that their “ bread and butter’’ business and farm accounts are constantly being approached and lured away by larger financial institutions and/or captive financial products offered by manufacturing companies. q It is these competitive reasons, as well as the very attractive yields, that cause independent, market driven banks to openly explore the opportunities pro vided by equipment leasing programs. Until recently, the high cost of starting a leasing ^department or company has prevented many banks from offering a leasing product to their customers. Costly computerized accounting packages, lease pric ing computer models, equipment and residual evalua tion, tax advice and changing tax legislation have con t r i b u t e d to expensive initial costs and the need for ex perienced personnel. Presently, bank service com https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis panies, computer software houses, and consultants provide lease services and lease products at reasonable prices. This is allowing even the smallest bank to be come involved in equipment leasing. “ Start-up’ ’ costs for banks to establish their own leasing department may run in the area of $200,000 $300,000 with annual maintenance costs of $75,000 $150,000. An alternative is the “ Service Provider’’ which offers full lease management programs that enable banks to extend tax leasing products to their customers. These leases contribute substantial tax benefits and attractive yields, with minimum involve ment from existing bank personnel. The “ Service Pro vider” will provide tax lease pricing, generic documen tation, invoicing, payment collection, accounting and tax services. The “ Service Provider” stands behind the bank, by assisting in all lease transactions it writes or purchases. The bank maintains control in each transac tion and determines the rate offered to its customer, and yield earned for its bank. The staff of the “ Service Provider” assists with pricing and structuring each lease. If the leasing product should prove unpopular with the bank customers, or the need for tax credits are re duced, there is no “ start-up” cost to write off when uti lizing the “ Service Provider” concept. In addition, the independent bank is kept updated as to changing tax laws and market trends. Its commercial and agricul tural loan officers experience innovative marketing concepts and the bank profits on all lease transactions. The economics of tax leases results from a difference in tax status between lessor (bank) and lessee (bank customer). The economic advantage occurs when the investment tax credit (ITC), associated with the pur chase of an asset, is available to the lessor but not to the lessee. Since ITC is a credit against the federal in come tax, a bank must be in a tax paying position to utilize the ITC advantage. Low or non-existing profits, or substantial tax loss carry forwards, could place the bank in a position in which it cannot use the full ITC immediately. However, if the lessor can take the full ITC and is willing to pass on a portion of its benefits via a lower payment, a real economic advantage will exist for the lessee. Another tax-related advantage occurs when the tax rates of the lessor and lessee differ. If the bank faces a higher income tax rate, it will realize greater deprecia tion and interest expense tax deductions than would be available to the bank customer under the purchase al ternative. As the bank passes on a portion of these ben efits in the form of lower payments, the bank customer profits. Leasing is very much a situation-specific source of financing. Each lease contract should be viewed on its own merits for the bank. The substantial growth of leasing in the United States attests to its economic vi ability. Consequently, it must be left to the individual bank and its tax accountants to assess the extent to which leasing fits its needs. □ ■ ABOUT THE AUTHOR—James D. Sheedy is vice president of the Financial Services Division of Norwest Leasing, Inc. F.S.D. is a service department for Norwest Leasing which provides support to financial institutions and corporations who wish to engage in and buy tax lease products. Norwest Leasing, through its TAXLEASE PROGRAM, provides training, lease pricing, documenta tion, FASB accounting, equipment and residual evaluation, col lection, advertising, and brokering of lease products. N o r th w e s te r n B a n k e r , A p ril, 19 84 36 Ag leasing ... ... rise is ‘phenomenal’ By W. SCOTT MORRIS Second Vice President First National Bank of Omaha, Nebr. HE GROWTH of equipment leasing in agriculture the past few years has been nothing short of pheno menal according to most lessors in the industry. And, while part of the increase can be attributed to the same factors which have made leasing more prevalent in other sectors of our economy, there are some specific reasons why leasing has flourished in agriculture. Dramatic changes in 1981 and 1982 of the tax laws governing leasing was certainly the primary impetus for the increased activity. The new laws and regula tions have made it considerably easier for the lender (lessor) and borrower (lessee) to enter into tax-oriented leases. At the present time, for example, the lessor can guarantee a fixed price purchase option at the end of the lease, as long as the lessee is a farmer and the equipment being leased qualifies as property being used for farming purposes. Prior to 1981, the fixed price purchase option could not be made available to the lessee under a tax lease. Tax Benefits to Farmers Another reason lease financing continues to thrive in agriculture is that both farmers and lenders are be coming increasingly aware of the benefits of leasing. At the same time, as a result of declining farm income the past few years, many agricultural borrowers are readily willing to trade the tax benefits from purchas ing equipment to the lessor in exchange for a lower ef fective borrowing rate which is fixed over the term. This is especially true when the lessee cannot efficient ly utilize the investment tax credit. Marketing also has played an important role in the development of leasing in agriculture. Banks, insur ance companies, independent leasing companies and others all are actively seeking new business, and also are educating equipment dealers and their customers to the advantages of lease financing. The most aggressive marketers of leasing, however, have been the farm equipment manufacturers. They view leasing as a valuable merchandising tool which can increase their sales. Many of them have even sub sidized their leasing programs so that their rates are below normal market rates, thus encouraging the far mer to acquire the equipment which they manufacture. T Benefits of Community Banks What will be the impact on community banks from Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the increasing popularity of leasing? Those b a n k ^ which are willing and able to provide leasing to them customers should see a substantial increase in volume in their lease portfolios. Those banks which cannot, or will not, offer leasing probably will see a decrease in their loan portfolios from business lost to leasing com-g panies or other banks which offer leasing. As a result, many Midwestern banks which are cognizant of the benefits which leasing offers to both the lessor and lessee have entered into the leasing business. Our own Banclease program, for exam ple^ has over 60 participating banks currently offering leas ing to their customers. The program is designed primarily for banks which desire the tax benefits and attractive yields from funding leases and, at the same time, wish to provide a lower borrowing cost to theiqj> customers. The Banclease program gives them the ability to offer this service without the normal ex penses and operational costs associated with starting their own leasing program. Leasing will continue to play a dominant role in® financing agricultural equipment and machinery. And, in order for banks to be able to continue to fulfill their borrowers’ needs, they must consider providing leas ing as an alternative to conventional financing, or risk losing valued and profitable business. Get lease-financing rewards through Salesmanship* By EDWARD A. AMES Senior Vice President Collateral Control Corporation St. Paul, Minn. OO M ANY bankers today have not faced the reali T ty that they must become salesmen to survive. Customer service is a fine stated purpose, but that ser vice must be delivered at a profit to the bank. The re -^ turn on equity for stockholders should be the driving force. Any other form of financial measurement of suc cess is, in the end, meaningless. You can’t read a bank-related magazine or article to day that doesn’t address non-bank competition. C om -^ petition from non-bank sources is continuing and at lightning speed. That’s a fact, not fiction. The question is, can the banking community respond in time? And how? Many banks today are constantly talking about as- £ set liability management, loan loss reserve increases, work-out departments etc. The major talent in many ® banks today is tied up in attempting to stem the flow of losses. Therein lies the major dilemma. How can they take positive action to compete when many of them are committed to fighting fires? 0 Search Out New Opportunities Personal property equipment leasing is not “ the” answer. But the ability and willingness to offer equip ment and machinery leases to a bank’s present and prospective customers may be one part of the answer. # It is not uncommon today that a bank’s term loan poli cy for equipment purchases by 15-25% down, 3-5 year term and variable rates. Equipment leasing requires a minimal down payment. It also provides for fixed-rate financing with longer terms. The “ hedge” against fac• ing the concern of lending long and borrowing short is covered through the Investment Tax Credit and depre ciation which stays with the bank as owner/ lessors of the equipment. ^ Points to Remember If your bank decides to enter the capital equipment leasing arena, start slowly. Enter into a participation agreement with an experienced lessor. Your lessor partner should be capable of providing training, pro^ ven documentation management information and par ticipation funding. The tax laws have changed dramatically in the last three years in the area of leasing. A leasing transaction can be structured several ways. It does not matter ^ whether your bank is “ sheltered” or profitable. Sub stantial yeilds are available to those who dare to be cre ative. “ Sell something and be somebody.” And, remember, “ If it came to your house in a truck - a salesman sold it £ first.” □ • City correspondent can help community bank to leasing profits * By MICHAEL L. DAHIR Vice President Omaha National Bank Omaha, Nebr. EASE FINANCING, as a funding source, has ex panded to the point where it is approximately 19% of all business expenditures for capital equipment. £ This makes it the single largest source of funds meet ing business capital requirements, the other being: cor- L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 porate equities, corporate bonds, and commercial bank loans or mortgages. In 1983, the leasing industry provided slightly over $60 billion of equipment financing, and bank-affiliated leasing companies were in the vanguard. This suggests that there are a lot of bankers around the country who are willing to allocate resources to leasing. Why? Be cause as an earning asset alternative, leasing typically offers the highest yield opportunities. Leasing has emerged recently from a period of legis lative turmoil and, in 1984, is attempting to revive itself with the help of a stronger economy. A bit more familiarity with some of these legislative changes might be beneficial to bankers as they attempt to iden tify prospective leasing opportunities. Legislative Changes In August of 1981, the Economic Recovery Tax Act (ERTA) created what was called the “ Safe Harbor Lease.” This true lease species allowed the lessor and lessee to negotiate, at the beginning of the lease, a fixed price purchase option which was in contrast to the traditional guideline lease fair market value purchase option at the end of the lease term. The fixed price pur chase option was well received and a spate of leasing business was written employing it until July of 1982, when the Tax Equity and Fiscal Responsibility Act (TEFRA) repealed a portion of the ERTA legislation related to leasing and substantially altered the re mainder. One surviving remnant of ERTA, although altered by TEFRA, was the “ Farm Finance Lease.” Such a lease allows one engaged in agri-business up to $150,000 per year of lease financing with a prenegoti ated purchase option as long as it is equal to at least 10% of original equipment cost. This has continued to be a popular means of financing equipment in the agricultural sectors. Another feature of TEFRA was a phase-in/phaseout process as it related to certain aspects of Safe Har bor. In this regard, a product known as the “ Finance Lease” will be available to the market subsequent to September 30, 1985. The Finance Lease will basically be a true lease allowing a 10% or greater pre-negotiated purchase option with no annual dollar limitation per lessee. This should, indeed, revive the momentum that the industry initially received from the advent of Safe Harbor leases. Leasing Through Upstream Correspondent Due to its involvement in tax, legal and accounting matters, leasing is a highly specialized business. Be cause of these complexities, it is very important that those banks which are considering getting into the leasing business staff the function with experienced personnel and properly place the function within the organizational structure. It is estimated that the start up cost of a small to medium sized leasing operation is in the low six figures. As a result of the above, it is oftentimes far more practical for a community banker to establish a business, with an upstream correspondent that is in the leasing operation, which would involve referral fees and/or lease participations. In this fashion, the com munity banker would be better able to satisfy his customers’ equipment financing needs and at the same time generate fee income and/or get some of those highyielding lease assets on his books. □ N o r th w e s te r n B a n k e r, A p ril, 1984 38 SPEAKERS at the National Corporate Banking Conference included this group, left to right: Richard S. Bibler, chmn. of ABA Commercial Lending div. and exec, v.p., First Wisconsin Natl., Milwaukee; John F. McGillicuddy, chmn., Manufacturers Hanover Trust Co., New York; Hollis W. Rademacher, chmn. of ABA Correspondent Banking Division and exec, v.p., Continental Bank, Chicago, and C. Robert Brenton’f pres, of ABA and pres., Brenton Banks, Inc., Des Moines. RIGHT— Dr. Warren H. Schmidt (left), prof, of public admin., Univ. of So. Calif., Los Angeles, who was a luncheon speaker; Don G. Pederson, sr. v.p., Norwest Bank Minneapolis, one of two speakers at concurrent ses sion on “ Fee Income Generation,” and Donald H. McCree, Jr., exec, v.p., Manufacturers Hanover Trust Co., New York. Commercial and Correspondent Bankers Study Competitive Positioning in ‘80s By BEN HALLER, JR. Publisher HEN the A B A Community Bankers checked out of the Hyatt Regency Hotel in Phoenix last month, their counterparts in the A B A Commercial Lending Division and A B A Correspondent Banking Division moved in the same after noon for serious discussion of their National Corporate Banking Confer ence theme, “ Competitive Position ing—in the New Corporate Financial Services Marketplace.” The impor tant conference topics drew a regis tration of 565 bankers and 150 spouses. Chairman Sets Tone Richard S. Bibler, chairman of the A B A Commercial Lending Division and executive vice president at First Wisconsin National Bank, Milwau kee, set the tone for the joint meet ing of commercial lenders and cor respondent bankers when he said, “ Correspondent and corporate bank ing increasingly can be viewed as al ternative distribution channels for the same services. That presents some very difficult questions. Which is better, an active and aggressive program to promote overlines to customers of respondent banks, or direct solicitation of those loans from the borrowers? “ If we attempt to do both, how do we coordinate both activities and in terpret our actions to our correspon dent customers? Should we ‘private label’ sophisticated cash manage W Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ment services for sale through our correspondents? If so, how do we ra tionalize that activity with our di rect selling efforts? “ As we seek to expand into new geographic markets, should we seek to sell services through banks lo cated there, or attempt to compete against them? Can we do both? These and many other issues need to be resolved at the strategic level.” He reviewed the importance of strategic planning, from which a bank’s decision as to how it will po sition itself in the market for the 1980s and 1990s must follow. These thoughts were then pursued by noted speakers at the general ses sions, in six workshops, 12 concur rent sessions and 12 round table dis cussions. largest bank in the nation’s smallest® state. Mr. Murray was followed at the first general session—devoted to corporate banking—by Robert B ._ Albertson, first vice president o f® Smith, Barney, Harris Upham & Co., Inc., New York, who gave a non bank financial institution execu tive’s look at the competition of t o -^ day and the rest of the 1980s. Correspondent Banking Examined The second general session, the following morning, was devoted ba sically to correspondent banking. # Moderator was Hollis W. Rade macher, chairman of the A B A Cor respondent Banking Division and executive vice president of Conti nental Bank, Chicago. In his op e n -# ing remarks, after speaking briefly of the radical changes being brought about by deregulation, Mr. Rade macher also stressed the importance of strategic planning—“ each one o f # us must have a plan for survival.” Keynote Speaker’s Experience Among the few remaining compe Keynote speaker J. Terrence Mur ray, chairman and president of Fleet titive advantages that remain to cor Financial Group and Fleet National respondent banks, he numbered Bank in Providence, R.I., told how these two: 1. First and foremost is ® his organization moved from a base our participation in the payments of under $1 billion assets in 1968 to system. 2. Secondly, is our credit re nearly $6 billion at year-end 1983. view, analysis and risk-taking re This was done by forming a one- sources. He pointed out that the re bank holding company in 1968—the lated workshops and concurrent ses- ® second bank to do so—then expand sions for the conference were devised ing throughout the state and across to address how correspondent banks the New England area in a line of sub can build on those advantages. sidiary services that now offers ABA President Speaks £ more than 300 offices in 33 states A B A President C. Robert Bren and four foreign locations. It was his ton, president of Brenton Banks, bank’s management decision to Inc., Des Moines, helped put the adopt a strategic plan that took it in competitive picture in focus by pre this direction after reviewing its senting a series of slides and accom- # other option of remaining the panying texts relating the position 39 _ of banks to their competitors over a 9 10-year period—the talk he had pre sented earlier in the week to the Community Bankers Conference. McGillicuddy Looks at Risks John McGillicuddy, chairman of Manufacturers Hanover Trust Com pany, New York, rounded out the se cond general session with his thoughtful, direct presentation on III “ Emerging Risks in an Increasingly Complex Financial Environment.” He recited the litany of events that “ we as bankers have come through in the past three or four years” —in• eluding the longest economic down turn since the 1930s, highest real in terest rates in history, advent of high technology, pressure from foreign and non-bank competitors, ® p rod u ct expan sion , narrow ing spreads, hefty loan losses and Third World debt problems. He then made three personal points: ® “ 1. There is no such event as lend ing with impunity to any market. No region of the country is reces sion-proof. “ 2. That despite our many simi9 larities, no two banks are alike. Thus, we must not allow ourselves to become mindless slaves to those statistical abstracts that Wall ^ Street and even the media like to 9 judge us by. “ 3. Just as no two banks are alike with respect to statistical abstracts, no two banks should consider ^ themselves alike when it comes to examining the options that are emerging in our increasingly deregu lated world.” Mr. McGillicuddy went on to review each of these ^ points in depth, stressing that each bank must determine its own course, decide on its own niche. ill “89% of correspondent bank department heads were optimistic about the future of correspondent banking.” Other First Principles “ There are many more first princi ples that need no great elaboration for an audience like this,” he added, “ but at least six others are worth stating in brief: 1. Avoid an inordi nate concentration in any one indus try. 2. Seek not an unnatural share of any market. 3. Reach not aggres sively into a region, market or indus try if you have no track record there or, what’s worse, no natural affinity by virtue of traditional strengths, resources and style. “ 4. Don’t rely on another bank’s specialists. If you want to lend to a specialized area, you had better have your own specialists and then limit your lending to that which they can comfortably control, with respect to both size and commitment. 5. Parti cularly in light of more recent devel opments, don’t expect your corres pondent banking unit to be able to replicate the skills of your entire bank, be it in credit or non-credit matters. Skills within your institu tion should be shared throughout the entire organization. 6. It should be axiomatic today, if it wasn’t yes terday, that many of our operationsbased, transactional services not on ly carry real credit risks, but carry them in sizable proportions. You are looking at a chairman who learned that lesson the hard way from Drysdale Securities.” Correspondent Survey Reviewed One of the important presenta tions made at a concurrent session was a “ Report on the Strategic Im portance of Correspondent Banking Services,” completed for the A B A Correspondent Banking Division by Peter Merrill Associates, Inc., of Boston. That report said that most (86%) of the correspondent depart ment heads surveyed among the 186 participating banks “ reported their overall correspondent operations to be profitable on a fully-allocated cost basis.” In contrast, the survey said, 70% of chief financial officers reported it to be profitable. There was perceived to be less profitability in cash letter service due to two factors: impact of the Federal Reserve becoming an ag gressive competitor in the payments system, and the use by some corres pondent banks of the cash letter ser vice as a means of attracting an overall customer relationship with out pricing the cash letter service on a stand-alone basis. Also, 89% of correspondent de partment heads were optimistic about the future of correspondent banking. Chief financial officers, be cause of measuring correspondent profitability against “ traditional sources...and relying on generally in adequate measurement tools,” gave only 57% agreement to an optimis tic outlook for the future of corres pondent banking. CORRESPONDENT CONF____ (Turn to page 41, please) LEFT— One of the many workshops that had standing room only was devoted to “ Bank Stock Financing.” Speakers at that session were, from left, Robert H. Dressel, sr. v.p., United Bank of Denver; moderator Robert W. Ivey, Jr., sr. v.p., Mercantile Bank, Dallas, and Michael Boncher, v.p., First Bank Minneapolis, RIGFIT—Those who have attended the decade of ABA Correspondent Bank Conferences recognize O this as a familiar sight—standing room only at practically every round table discussion, where peers exchange ideas to improve delivery of correspondent services. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 1984 40 THREE of the principal speakers at the National Assembly for Community Banking in Phoenix were, left to right: John K. Moore, chmn. o f # ABA Community Bankers Council and chmn. of The Beach Bank of Vero Beach, Fla; W illis Alexander, ABA exec, v.p., and Joseph J. Pinola, chmn., First Interstate Bancorp, Los Angeles. RIGHT—One of the many workshops that drew special attention was the one on “ Insurance Agency Services.” Speakers at that workshop were Tim Bird (left), pres., Brenton Insurance Services, Inc., Des Moines, and Terry P. Free man, pres., Insearch Inc., Minneapolis, who are shown responding to questions following the one-hour meeting. Community bankers study options to fight back against new competition By BEN HALLER, JR. Publisher HIEF executive officers attend ing the A B A 1984 National A s sembly for Community Banking in Phoenix last month gave strong, positive signals that they fully in tend to protect their turf and fight back against any and all competi tion—whether it comes from within or outside the financial institution business. More than 700 bankers and 450 spouses were registered for the con ference. The importance of wide ranging topics on the agenda was at tested to by full attendance at each general sesssion and overflow crowds at all workshops and peer group ses sions. General session speakers discussed the changing economic scene, especi ally as it impacts community banks; workshops were aimed at new pro ducts and services to help bankers be competitive in the new scene, while peer group sessions centered on methods and techniques used by conference participants to be ag gressively competitive. Chairman’s Address John K. Moore, chairman of the A B A Community Bankers Council and chairman of The Beach Bank of Vero Beach in Vero Beach, Fla., set the tone for the convention when he recounted the earlier days of the space program. Each branch of the service, as well as N ASA itself, he said, wanted to control that part of C Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the overall space program it felt was closely related to its individual mis sion. “ It was a disaster,” he noted, “ because assignments were drawn too narrowly—they were based on hardware—instead of overall mis sion . . . Productive teamwork would have replaced wasteful duplication of effort. Of course, such a reorgani zation eventually did take place, and much of N A S A ’s success can be at tributed to this change. In our industry today,” Mr. Moore pointed out, “ our mission is market share. Our goal is to compete with the non-bank bank. We cannot af ford to divert banking resources to internal disputes. All banks, whether they be community banks, regional banks or money center institutions have one thing in common these days—their customer base is being eaten away by large financial in termediaries.” He called for a unified front to meet this competition and said the “ A B A Community Bankers Council has done much to promote this unity.” Mr. Moore called for this unity to persuade Congress that banks should have expanded powers. “ The only way we are going to get these powers is if a unified banking indus try takes a more active role in the political process. We can do this through the Community Bankers Council . . . Community bankers are facing an exciting and challenging frontier—relationship banking. ’ ’ Franchise Banking Joseph J. Pinola, chairman of First Interstate Bancorp., Los An geles, heads the only banking orga-( nization currently offering the fran chise of its name, corporate struc ture and products to other banks, while the latter remain locally owned and independent. He addressed “ The Changing Financial Super structure,” and described the evolv ing “ New Economy.” It has taken money from banks and placed it else where, Mr. Pinola said—with non-financial competitors unhampered by federal regulators who continue to hamstring commercial banks. To meet this competition, Mr. ( Pinola stressed the importance of each bank developing a strategic plan, finding a specialized niche, joining a consortium or network, merging, buying another bank o r ( selling out, or the alternative his firm offers—franchising. The latter, he said, brings to the local market all the major bank’s products and market expertise, but retains the, flavor of local banking with local ownership. Community Banking an Attitude A B A Executive Vice President Willis Alexander, who still owns and 1 helps manage his own family com munity bank in Trenton, Mo., said “ community banking is character ized more by an attitude; it is more than the accident of size or location.” He cautioned community bankers to listen carefully to their customers to determine what they’re really saying, and find the service, or the method to serve them. He stressed 41 planning that will focus on the per s o n a l relationship aspect of com munity banking. “ The community banker will continue to have a posi tion of preeminence,” Mr. Alexander ^stated, “ so long as he continues to S e r v e his customers by listening, adapting to change, by planning, and by pursuing the course of com munity service and profitability.” ^ H e closed by saying, “ Predictions of the demise of community banks is a possibility, not a firm prediction!” ABA President Reports A B A President C. Robert BrenHon, president of Brenton Banks, Inc., Des Moines, gave a slide pres entation that reviewed the series of market, regulatory and legislative changes that have affected banking ^in the past decade. He said “ there are five ways in which deregulation has occurred and is occurring.” He listed these as the marketplace, state laws, federal regulatory agen c y rulings, federal law, and litiga tion. “ Of these five forces,” he noted, “ the only one that can affect all of the others is federal legislation. It xan pre-empt the pace of deregula tion, it can prevent developments, it can ratify market changes and, most importantly, it can authorize new di rections. This brings us now to the questions of 1984. We are now try ing to determine what a bank is, who can own one, what it can do, where it can do it, and who regulates it. ^These are fairly profound questions. Each one of them is controversial, not only within banking, but among policy makers. The answers will af fect the value of a bank franchise, our customers and our competitors. They must be answered.” Other Speakers Concluding general session speaker was Dr. Barry Asmus, professor of economics at Boise State Universi ty, Boise, Idaho. His inspirational talk covering the history of the economic system and the people who built the United States was warmly received, as it has been at each bank meeting where he has spoken. Luncheon speakers Charles Kuralt and Hugh Sidey brought two dis tinct flavors of national, professional journalism to the conference plat form. Mr. Kuralt, known nationwide for his “ On the Road” series for CBS TV network, didn’t disappoint any one with his down-to-earth manner, humor and anecdotes. Mr. Sidey, on the other hand, presented the views of a down-home country boy from Greenfield, la., who has achieved the polish and stature of a national writer as Washington contributing editor for Time magazine. Mr. Sidey is not given to the pompous anec dotes often offered by some of the Washington press corps, but gives his audience a scholarly assessment of current events as an astute side line viewer. Workshops, Peer Groups Among the workshops and peer groups sessions, the one most pre ferred by all registrants was the series available on microcomputers. Each session could hold about 48 persons and each time the sessions TYPICAL of the six special microcomputer sessions is this scene which shows bankers goQing through a spreadsheet analysis exercise. There were two bankers at each micro, and the 48-person capacity for each room was oversubscribed for all six sessions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis were oversubscribed. A B A then an nounced that an extra two hour ses sion would be held—from 5 p.m. to 7 p.m., through the dinner hour—and both of those sessions also were oversubscribed! Micros were avail able in classrooms for each two bankers in the sessions. In addition, a ballroom display area featured several types of mi cros—including the new Macintosh and Lisa—and extensive software. A wide range of topics was offered in other workshops—commercial credit analysis and loan pricing, real estate equity participations, insur ance agency services, value pricing, A/L management, incentive compen sation, ESOPs, secondary mortgage markets, and discount brokerage service. Peer groups also were devoted to a wide range of community banker interests. Next year’s 1985 National A s sembly for Community Banking will be held at the Hyatt Regency Hotel in Orlando, Fla. Chairman will be Randy Killibrew, president, First National Bank in Petersburg, 111. □ CORRESPONDENT CONF____ (Continued from page 39) The survey dealt in great measure with whether a city correspondent bank would opt to seek a national position, regional position, both as full-service, or would seek a niche po sition—either regionally or nationally, or both. Further in the survey, 90% of department heads believe they must have greater technical skills in their correspondent departments to continue profitability. Also, 62% be lieve their bank’s correspondent strategy would include “ franchis ing” (wholesale provision for resale) of products and services for respon dents. This was apparently in recog nition of the growing trend to fee payment for services, rather than traditional balances. The survey concluded with a re view of the opportunities for those banks who continue as providers of corresp on d en t bank serv ices, whether they seek the niche ap proach as regional banks, or as fullservice providers. Fee Income Session The topic of Fee Income was ad dressed directly in one of the earlier CORRESPONDENT CONF___ (Turn to page 102, please) N o r th w e s te r n B a n k e r, A p ril, 19 84 42 BMA programs look to the future Marketplace positioning HE W A Y a commercial bank po sitions itself in the marketplace— via advertising, products, and pric ing—to appeal to consumers and businesses will be examined in depth at the Bank Marketing Association’s 1984 Research and Planning Confer ence, April 29-May 2 at the Hyatt Regency New Orleans. Under the theme, “ Finding Your Niche... Positioning Thru Applied Marketing,’ ’ the meeting will offer marketing professionals of financial institutions state-of-the-art tools they need to attract the most profit able customer segments. New York advertising executive A1 Ries, chairman, Trout & Ries Ad vertising, Inc., will be the keynote speaker. He will discuss “ Position ing From an Outsider’s Point of View” at the opening general ses sion, Monday, April 30. Following Mr. Ries’ address will be a talk by Robert Klinger, presi dent, Central Florida division, Free dom Savings & Loan Association, Winter Park, entitled, “ Positioning for the Retail Market.” The presen tation will outline how pursuit of specific targets can affect a bank’s competitive and profitability pic ture. Concurrent workshops follow and and deal with pricing and market leadership. The workshops will pro vide case study examples that elabo rate on the general sessions. Work shops on the second day of the con ference will include case study dis cussions on such areas as brokerage services, export trading companies, and videotext. Exchange groups fol low, giving attendees the opportuni ty to share ideas and suggestions. On Tuesday, May 1, Craig Gieler, director of financial services, Kroger Co., Cincinnati, and Donald E. Doyle, president, Kentucky Fried Chicken Management Company, Louisville, will hold general ses sions. Also speaking at the conference will be James P. Miller Jr., vice president, manager-corporate mar ket planning, Wachovia Bank & Trust Company, Winston-Salem, N.C. Mini clinics will be held at the T Digitized N o for rth wFRASER e s te rn B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Communications issue examined HE public relations impact of branch closings, mergers and acquisitions, name changes and de layed funds availability are among the issues to be explored at the first National Conference on Communica tions for the Financial Services In dustry, to be held in San Diego, Calif., May 6-9. The conference is conducted by the Bank Marketing Association, an affiliate of the American Bankers Association, and is co-sponsored by the California Bankers Association and the New York State Bankers Association, in cooperation with the Western Chapter of BMA. It is designed to bring together those individuals within financial in stitutions responsible for corporate communications, including investor relations, government relations, con sumer education, employee commu nications, media relations, and issues management. The conference, to be held at the Sheraton Harbor Island Hotel, is particularly important to the indus try at this time because of the many changes taking place in the delivery of financial services brought about through deregulation, technology, and changing consumer lifestyles. The keynote address, exploring the conference theme of “ Credible Communications in a New Financial W orld,” will be delivered by Nor man Barker, Jr., chairman, First In terstate Bank of California, Los An geles. “ Branch Closings and Related Communications Challenges” will be analyzed by Ron Rhody, senior vice president-corporate communi-^ cations, Bank of America, San Fran cisco. The communications problems and opportunities associated with mergers and acquisitions will be ad-f|> dressed by Rayburn S. Dezember, chairman and president, Central Pacific Corp., Bakersfield, Calif. Related to mergers and acquisi tions is the question of changing a® bank’s name. The case for and against changing an institution’s name will be debated by Alex W. (Pete) Hart, executive vice presi dent, First Interstate Bancorp., Los® Angeles, and William W. Haines, se nior vice president, Bucks County Bank & Trust Co., Perkasie, Penn. Government relations issues will be approached from two viewpoints. ® First, Dan Wall, staff director of the Senate Banking Committee, will an alyze the issues facing Congress, in cluding the delayed funds avail ability question and bills that would ® grant additional powers to banks and other financial institutions. Then, Daniel S. Buser, director of public relations for ABA, will talk about banking’s position on develop-® ing issues and will offer suggestions for corporate communicators to aid banking’s cause in Washington. close of each day to provide a “ give and take” atmosphere between pre senters and the audience. The mini clinics will cover such areas as mi crocomputers, translation and pre sentation of research data to senior management, the “ how-to” of pro duct development, and ad research. The final day of the conference will feature Joseph Peritz, presi dent, Marketing Services Associ ates, Inc., Hartsdale, N.Y. on “ Posi tioning for the Changing Consumer Trends,” along with Robert E. Moll, senior consultant, Financial Indus tries Operations Technology Unit, Arthur D. Little Inc., Cambridge, Mass., and his presentation of “ Technology of the Future and Its Impact on Financial Services.” ^ Closing the program, James H. Donnelly Jr., professor of business administration, College of Business Administration, University of Ken tucky, Lexington, will summarize ^ the strategic marketing issues. Also at the conference will be a showing of B M A ’s “ Best of T V ” for 1983. For more information on the p ro-^ gram, contact Barbara Ross, vice president/director, Research and Planning Department, Bank Mar keting Association, 309 West Wash ington Street, Chicago, Illinois £ 60606.312/782-1442. □ T COMMUNICATIONS CONF____ • (Turn to page 79, please) 43 1 INCREASED PROFITABILITY J- Equipment leases are generally Good question. And at Bandease, we just happen to have six good answers: more profitable to make than conven tional loans due to the tax benefits you can receive. BROADER CUSTOMER SERVICE You get an edge on your competi tion by offering equipment leasing as a complement to your existing bank ing services. 2 YOUR CUSTOMERS SAVE J MONEY banc _ lease,rc. p.o. box 3128 o m a h a , nebraska 68103 an affiliate of first national bank of o m a h a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lease rates are normally lower than conventional loan rates, which allows your commercial and agricultural borrowers to conserve working capital. A NO FEES OR COSTS i Through Banclease, you escape the legal, accounting, staffing, mar keting and operational expenses associated with creating your own leasing department. WE UNDERSTAND YOUR NEEDS We are not consultants or brokers. We’re bankers. And as one of the oldest and largest bank-affiliated leasing companies in the Midwest, we under stand equipment financing. 6 YOU’RE IN CONTROL Banclease handles the paperwork - documentation, billing, accounting, etc. - but your customer deals only with you. Leasing works. And Banclease can make it work for your bank. Call Scott Morris toll-free, or write today: In Nebraska, 1-800-642-9907 In all other states, 1-800-228-4411 N o r th w e s te r n B a n k e r , A p ril, 19 84 44 WithFirstTèamworkjourrelationship withFirstChicqpisritjustbankto bankffsjxtrtnertopartner” “ When you are a correspondent o f First “ When you’re a correspondent w ith Chicago, it means having access to the vast First Chicago, we w on’t ju s t be w orking w ith resources o f a money-center bank. It means yo u— w e’ll be w orking fo r you. having teams of specialists w orking together “ See how First Teamwork can w o rk to deliver the kind of products your bank fo r you. Call me, Neal Trogdon, at needs. And it means a partnership that ( 312) 732-7780.“ supports instead of supplants. “You w o n t find a bank in the Midwest First Chicago th a t’s organized to deliver its resources Atlanta—Baltimore—Boston—Chicago— m ore effectively than First Chicago. You’ll w o rk w ith a relationship manager fro m our Cleveland—Dallas—Denver— Houston—Los Angeles—Miami — New York—San Francisco highly trained specialty team s—the Com Washington, D.C. m unity Banking Team, the Illinois Team and the Midwest Team— according FIRST CHICAGO to your specific needs. The First National Bankof Chicago Therms M. King. Communi!)' Banking Philip H. Çy Britt. [ Illinois Banking I FIRST TEAM W ORK WORKS © 1984 The First National Bank of Chicago. Member F.D.I.C. N o r th e s te r n B a n k e r , A p ril, 1984 Digitized forw FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 Presidents Named in Tinley Park and South Holland C.C. Wilson, chmn. & c.e.o., Rock Island W.J. Hocter, exec, v.p., Chicago Lane Banks V.P. Named Robert E. Lindquist has been elected vice president and chief fi nancial officer of Lane Banks, an nounced Lane In t e r fin a n c ia l president Scott K. Heitmann. Mr. Lindquist joins Lane Banks from American (National Bank & Trust Company R.E. LINDQUIST of Chicago, where he served as vice president, financial and bank wide services. Prior to join in g American National in 1978, he was vice president and chief finan cial officer for a unit bank of the M inneapolis-based Northwestern Bancorporation. Elm Bancshares Acquires Bank of Clarendon Hills responsible for business develop ment. In addition, Frank M. Lynch has been hired as assistant trust of ficer. Mr. Cornwell joined the bank in 1972 as trust officer and was pro moted to vice president in 1978. Mrs. Kennedy joined in 1961 and most recently served as cashier. Ms. Mikulich joined in 1971 and was serving as assistant cashier at the time of her promotion. Mr. Haase started with the bank in 1967 as a vice president in the commercial loan department. Mr. Lynch was graduated from Loras College, Dubuque, Iowa, with a BA degree in accounting and busi ness administration. He is a CPA and obtained his Doctor of Jurispru dence degree from John Marshall Law School in May, 1983. Aurora National Joins Access 24 ATM Network Frank C. Rathje, president and # CEO of Elm Bancshares, Inc., has announced the completion of Elm’s acquisition of the $63,000,000 asset Bank of Clarendon Hills from the Charter Clarendon Bancorporation, # Inc. The Stock of Bank of Clarendon Hills was acquired from Charter Clarendon and other individual shareholders for approxim ately 64,000 shares of common stock # of Elm Bancshares Inc. The transac tion received all necessary regula tory approvals. Aurora National Bank has joined the Access 24 automated teller ma chine network, becoming the sixth local financial institution to par ticipate in the regional exchange program. Cardholders will be able to conduct banking transactions at any of the 16 network-affiliated ma chines. Aurora National will install three ATM units — two at its main office location and one at its West Indiana Trail facility office, sometime late spring. • Lansing Promotions Told Bank Building Corporation To Remodel Madison Bank First National Bank of Lansing recently promoted Thomas C. Cornwell to senior vice president; Helen ^ M. Kennedy to vice president and cashier, and June C. Mikulich to as sistant vice president. The bank also announced that William C. Haase, senior vice presi0 dent, has been given additional res ponsibility as chief credit officer, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Building Corporation, St. Louis, Mo., recently signed a con tract with First National Bank in Madison to remodel and expand its existing facility. Bank Building Corporation has been serving the design needs of communities throughout the United States for 70 years. Robert A. Loffredi has been pro moted to president of Tinley Park Bank, according to Michael Halikias, chairman. Mr. Loffredi, who had been serv ing as executive vice president, suc ceeds Donald Moll, who has been elected vice chairman. Mr. Moll also serves as president of Steel City Bank. R.A. LOFFREDI R-J. NECASTRO Mr. Loffredi started his banking career with the U.S. Comptroller of the Currency as an examiner. In 1976 he joined Steel City National Bank, Chicago, and later served as president of Thornridge State Bank in South Holland after its purchase by Steel City Bank. In 1983 he was transferred to Tinley Park Bank, fol lowing its acquisition by Steel City Bank. In related action, Robert J. Necastro has been promoted to presi dent of Thornridge State Bank, South Holland, and elected a mem ber of the board. Formerly executive vice president, he succeeds Robert Loffredi, who has been promoted to vice chairman. Mr. Necastro has been an official of several banks in the southern sec tion of Chicago and prior to joining Thornridge Bank in early 1983, he was vice president, commercial loans, at Steel City National Bank, managing the bank’s branch office. Aurora Addition Told Michael R. Novak recently joined Aurora National Bank as director of marketing, responsible for develop ing a corporate planning/marketing department, and related holding company activities. Mr. Novak began his banking ca reer in 1981 with Elmhurst National Bank. He has a BS degree in market ing and finance from Northern Illi nois University. N o r th w e s te r n B a n k e r, A p ril, 19 84 46 Illin o is N ew s shares of All American Bank and Northwest Commerce Bank. In turn, First Colonial Bankshares will increase ownership of Northwest American Bankshares. First Colonial also owns 99 percent of the stock of Colonial Bank and Trust, Chicago. * * * Chicago Bank of Commerce re cently announced the following pro motions: John W. Teuscher from vice president to senior vice presi dent, lending services; Catherine C. Lazard from manager to assistant vice president and manager, Michi gan Avenue office; Sandra M. Wozniak from consumer lending officer and manager to assistant vice presi dent and manager, consumer lend ing; Peggy Brewer from operations coordinator to assistant cashier, and Chester Golebiowski from manager, central processing, and security offi cer to assistant cashier and security officer. Also announced was the addition of former Governor William G. Stratton to the bank’s staff and the election of Archie R. Boe, former president of Sears Roebuck and Company, to the bank’s board. * * * The Federal Reserve Bank of Chi cago has approved the application of Northwest American Bankshares Corporation to acquire All American Bank, Chicago, and Northwest Com merce Bank, Rosemont. At the same time, the Federal Re serve Bank of Chicago also approved the application of First Colonial Bankshares Corporation, Chicago, to acquire Northwest American Bankshares Corp. First Colonial Bankshares cur rently owns 16 percent of the All American Bank of Chicago, and 12 percent of Northwest Commerce Bank. Northwest American Bankshares, a second holding company, is being formed to acquire all of the Digitized for N o r th w eFRASER s te r n B a n k e r , A p r il, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hubert F. Messe, has been ap pointed vice president, government, media and external affairs for First Colonial Bankshares, it was an nounced recently by C. Paul John son, holding company president and CEO. Mr. Messe, who is also editor and publisher of LEAD ER and POST Newspapers, comes to First Colonial after serving nine years as division manager of communications for the Regional Transportation Authority (RTA). As director of Colonial Bank for 12 years, and director of First Col onial Bankshares since its formation in 1978, Mr. Messe was honored by Colonial as the Director of the Year in 1983. * * * G. Robert McKay has been named vice president and Gary W. Jansen has been named commercial loan of ficer of National Security Bank of Chicago. G.R. MC KAY G.W. JANSEN Prior to joining National Security, Mr. McKay served as director of fi nancial marketing for P.A.G., Inc., in Chicago. Mr. Jansen previously served as credit analyst at Pioneer Bank & Trust Co. of Chicago. * * * Donald D. Thornburg, president of Midland Bancorp, Inc. and chair man of its wholly owned subsidiary, UnibancTrust Company, has an nounced that John P. Keller, presi dent of Keller Steel Company, Northfield, has been elected a director of Midland and UnibancTrust. Ben T. ^ Reidy, president and a director of w UnibancTrust, has also been elected a director and executive vice presi dent of Midland. Mr. Reidy, who joined Unibanc- ^ Trust as president and a director on February 1, 1984, formerly held ex ecutive positions with a group of five Chicago suburban banks. Prior to that, he spent twenty years with £ The Northern Trust Company in various senior management posi tions. * * * LaSalle National Bank announced the promotion of Assistant Vice President Wayne Bismark to vice president, corre spondent bank ing and financial institutions. Mr. Bismark joined LaSalle in March of 1983 as assistan t vice president, corre W. BISMARK spondent bank ing, following positions at the First National Bank of Chicago, and Harris Trust Co. He is responsible for corre spondent banking relationships in Chicago, western Illinois and Iowa. * * * Raymond E. Cross has been elected to the board of directors of Lakes Bank. Mr. Cross is president ^ of Federal Chicago Corporation and Federal Research Corporation, as well as chairman of Federal Die Casting Company, all based in Chicago. ^ * * * DeKalb Bank to Join MFG Directors of The DeKalb Bancorp, ® Inc., which owns DeKalb Bank, has approved a letter of intent to join Midwest Financial Group, Inc., Peoria. Upon approval by share- ^ holders of the bank and the Federal Reserve, MFG will pay $50 a share for all 120,292 shares of The DeKalb Bancorp, Inc. In an unrelated action, Charles S. q Combs, president and chief operat ing officer of the bank, has been elected to the additional post of chief executive officer. He succeeds James E. Forster, who will continue £ as chairman. 47 Overcoming Employers Mutual Offers Free, Accurate Building Cost Appraisals. The key to insuring your business to value is accurate building cost appraisals; the kind you get free of charge from your independent insurance agent who repre sents Employers Mutual Companies. Using the world’s largest, m ost dynamic construc tion cost data bases, your EMC representative can provide you with an accurate electronic system for calculating replacement costs. Our cost appraisals reflect up-to-date local labor material costs, and annual adjustments are m ade to account for fluc tuating cost factors in your area. With this accurate information, you are more apt to bring your commercial insurance coverage into line with current values. As an EMC policyholder, y o u ’ll enjoy the peace o f m ind o f knowing that should a loss occur your policy will cover rebuilding costs. Overcoming underinsurance is just one o f the m any com m ercial insurance problem s EMC has tackled head on. W e did it by working together; put ting our people, products and services to work solv ing the everyday insurance problems of industry. WE’VE GOT WHAT IT TAKES m m Em ployers M utual Com panies Des Moines, Iowa 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 48 We extend more than credit. We extend ourselves. We built our correspondent reputation on personal service. The kind of service based on lasting mutual respect. And even though w e’ve become a billion dollar bank, our philosophy hasn’t changed. Extending ourselves is our way of life. Seven days a week. Wherever you are, whenever you need us. W e’ve been there, and w e’ll keep coming back to meet your respondent needs in the years to come. Call us anytime for all Correspondent Banking services at 612/341-6561. A F&M Marnuette NathRai Bank Digitized forwFRASER N o rth e s te rn B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Correspondent Banking 49 Applications Approved Chairman Appointed For MBA Annual Convention ^ William Sands has been appointed chairman for the 94th Annual Min nesota Bankers Association Con vention to be q held June 11-13 at the Radisson St. Paul Hotel, a c c o r d in g to Herbert Lund, 0 president of the M BA and presi dent of Security W. SANDS State Bank in Albert Lea. 0 Mr. Sands is president of Western State Bank of St. Paul. He is a member of the M BA Legislative Committee and will begin a threeyear term on the M B A board of di0 rectors in June. Worthington Elections Told bing and The First National Bank of Virginia, under the charter of The First National Bank of Virginia and under the title of First Bank Minne sota, N.A. The Federal Reserve Bank of Min neapolis has approved the following applications: Southern Minnesota Bancshares, Inc., Wells, to acquire Security State Bank of Wells, with deposits of $14.7 million; American National Agency, Inc., Nashwauk, to acquire additional shares of the American National Bank, Nashwauk, and St. Clair Agency, Inc., St. Clair, to ac quire St. Clair State Bank and to continue to engage in general insur ance agency activities in a communi ty with a population not exceeding 5,000. Dennis Dunne Steps Down As President in Duluth Three Elected in Duluth Dennis Dunne, president and chief executive officer of Norwest Bank Duluth, has announced that he will take early retirement August 31, 1984. He has spent his entire career of 34 years with Norwest and served as president in Duluth for the past nine years. A successor for Mr. Dunne has not yet been named. Mr. Dunne plans to do some extensive traveling after his retirement. Gopher Animation V . ti.* \ Ì llÆ Paul Means has been elected se- 0 nior vice president in charge of cred it administration and Rick Scanlan was named vice president and man ager of commercial loans, according to Elden W. Ranee, president and ^ CEO of First Bank Worthington. Mr. Means began his work in Worthington in 1979 as assistant cashier and most recently served as vice president in commercial loans. Mr. Scanlan joined First Bank in Southside Missoula in 1977, serving that bank most recently as vice pres ident, commercial loans, and com pliance officer. O Approvals Announced The Comptroller of the Currency recently approved the merger of ^ First Produce State Bank, Minw neapolis with First National Bank of Hopkins. The bank will continue to be known as First National Bank of Hopkins under its charter. 0 Also approved was the consolida tion of First National Bank of Hib https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NEW SIGN —Daktronics, Inc. has de signed, manufactured and installed a large electronic message/anlmation center on the campus at the University of Minnesota. Located at one of the busiest sites on cam pus, near the busy University of Minnesota Field House, the new message center is con trolled by the Venus 4000 control system. The system is capable of animation up to 10 frames/ second, graphics and word mes sages interspersed with the current time and temperature. University officials said the new message/animation system will be used for many types of collegiate activities, including “ coming events” messages for men’s and women’s sporting events, musi cal programs, plays and cultural events as well as other messages of interest to stu dents and the general public. Larry L. Gilb, president, First Bank-Duluth, has announced the election of three new officers. Kath leen A. Bianco was elected market ing officer, and Robert D. Howe and Terese M. Rigodanzo were elected trust officers. Ms. Bianco joined First Bank-Du luth follow in g graduation from the U niversity o f M in n e so ta with a B.S. in business admin istration in 1980. She has worked on the bank audit staff and in the m arketing de K.A. BIANCO partment. R.D. HOWE T.M. RIGODANZO Mr. Howe joined First Bank-Du luth in 1978 as a tax assistant and joined the employee benefits divi sion of the trust department in 1979. He holds a BA degree from the Uni versity of Minnesota - Duluth. Ms. Rigodanzo joined the bank following graduation from the Col lege of St. Scholastica in 1979. She has worked in the trust department since 1980, and was recently placed in charge of the corporate trust divi sion. N o r th w e s te r n B a n k e r , A p ril, 19 84 50 The promotions of six officers have been announced by Ernest C. Pierson, president and CEO Norwest Bank Midland, N.A. Promoted to vice president were: Richard A. Erickson, marketing, former assistant vice president; Thomas C. James, commer cial lending, for mer a ssista n t vice president, St. Louis Park facility; Steven P. Johnson, com mercial lending, R.A. ERICKSON former assistant T.C. JAMES vice president; Gordon J. Spartz, commercial lending, former assis tant vice president. Gary M. Lechko, former commer cial real estate officer, has been pro moted to assistant vice presidentmortgages, and Mark T. Olson, for mer commercial banking officer, has been promoted to assistant vice president, St. Louis Park facility. James D. Wright, former assis tant vice president at Norwest Bank Camden, was elected assistant vice president. Mr. Wright joined Nor west Bank Midland on March 1. * * * American State Bank of Edina has announced the promotion of David A. Bjerknes to senior vice president and a director, and Joe H. Arends to vice president and cashier. M.T. OLSON Lawrence Anderson has been ap pointed president and chief execu- A tive officer of Marquette National W Bank at University. He joined the bank as executive vice president in 1979 following a number of years service with Marquette National ^ Bank of Minneapolis and Bank Shares, Inc. Marquette National at University also elected Dr. John S. Rydberg and Allin M. Karls directors. Dr. £ Rydberg M.D. is director of respitory care of Mercy Medical Center and Unity Medical Center. Mr. Karls is president of North Star Casualty Service, Inc. and chairman 0 of Polaris Companies, Inc. * * * S.P. JOHNSON D.A. BJERKNES G.J. SPARTZ with Marquette National Bank of Minneapolis since 1964. # Ms. Welle most recently was as sistant vice president and cashier, positions she was elected to in 1980. Mr. Hansen is president of Vid Metal Products, Fridley. • * * * G.M. LECHKO J.D. WRIGHT N o r th w eFRASER s te r n B a n k e r, A p r il, 19 84 Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J.H. ARENDS Mr. Bjerknes has been with the bank since January of 1983 and has been serving as senior lending of ficer and vice president. Mr. Arends, previously cashier, joined the bank in 1976 as bookkeep ing manager. * * * Marquette State Bank of Colum bia Heights recently promoted Larry E. Pietrzak to senior vice president and Kathy Welle to vice president, and appointed Arvin Hansen as director. Mr. Pietrzak joined in 1980 as vice president and previously was lirs t Bank System, Inc. has elected Robert D. Gordon executive vice president of corporate devel opment and plan ning. Mr. Gor don had been as s o cia te d w ith the Chicago of fice of McKinsey & Company an in ternational man WÛ agement consult R.D. GORDON ing firm head quartered in New York, where he was an engagement manager and se nior consultant in the financial ser vices group. First Bank System, Inc. also an nounced the following appoint ments: Neel C. Johnson, vice presi dent in metropolitan division con- 51 W e’re Dawson Hail Insurance and w e’ve been around since 1917. Our company has weathered the Great Depression, W orld W ar II, and years of biting inflation. We face the future with confidence in our stability. Dawson Hail Insurance. W e’ve survived, grown and prospered when others have failed. Our success is based upon a few simple principles. First, we make buying hail insurance easy and uncomplicated. W e’ve eliminated the red tape by cutting down on paperwork. That means your policyholders get faster, better service. Secondly, our adjusters are the very best. . . experienced, professional, fast and fair. Finally, w e’ve developed a reputation for custom er service that is second to none. Go with the com pany th a t’s as solid as the ground you walk on. DAWSON HAIL INSURANCE We’ve been there since 1917. We’ll be there for you. CALL TOLL FR EE: 1-800-437-4680 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FARGO, NORTH DAKOTA IN NORTH DAKOTA 1-800-342-4848 N o r th w e s te r n B a n k e r, A p ril, 19 8 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54 M in n e s o ta N ew s sumer banking; Pamela J. Sveinson, vice president in regional division human resources, and Joseph O. Weissenborn, vice president in cen tral audit. Mr. Johnson joined First Bank Saint Paul in 1970 and most re cently was vice president of the customer relationships group. Ms. Sveinson joined the regional division human resources depart ment in 1983. Prior to that time she was with the marketing and plan ning division of Morrison-Knudsen Company, Inc., headquarted in Boise, Ida. Mr. Weissenborn most recently was senior vice president and con troller of First Bank St. Paul. Prior to that he was with Seattle First Na tional Bank as vice president and manager of general accounting. * * * F&M Marquette National Bank recently announced the following promotions: Named vice presidents are Ralph Nelson, investment de partm ent, and Michael Remmers, com m er cial loans. New assistant vice presidents R. NELSON include: Larry credit officer. He joined F&M in 1982. Mr. Pohlad previously was a mar keting representative for Bank Shares Incorporated, the holding company for F&M Marquette Na tional Bank. * * * First Bank Minneapolis has elected H. William Anderson and Gerald A. Kraut executive vice presidents, and named two vice presidents, 14 assis tant vice presidents and one direc tor. Mr. Anderson, who joined the bank in 1980, had been senior vice president of the international banking group. Prior to joining First Bank Minneapolis, he was associ ated with Continental Illinois Na- H.W. ANDERSON R.P. JOHNSON A.K. PETERSON J.N. SCHLOSSER N.H. FRANK T.D. LEUMA C.H. APPLEBY J.T. GENOSKY G.A. KRAUT L.R. KENNEDY C.P. DUDLEY M. REMISIERS K. MUELLER Kraayenbrink and Mark Schabert, correspondent banking; William Pohlad, administration, and Karl Mueller, mortgage department. Mr. Nelson, previously assistant vice president, is a graduate of the University of Wisconsin, Madison. Mr. Remmers was graduated from St. Cloud University with a BA degeee and from Mankato State University with an M A in adminis tration. Mr. Kraayenbrink joined the bank in 1979 and has extensive background in computer services. Mr. Schabert formerly served as a N o r thfor w e sFRASER te r n B a n k e r, A p ril, 19 84 Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D.H. NORTH L.W. MATTSON P.W. KOOMAN O.A. FLUCK tional Bank & Trust Company of Chicago. Mr. Kraut joined the bank in 1973 and has been senior vice president in charge of the capital markets and treasury group. Ronald P. Johnson and Laurence R. Kennedy have joined as vice pres idents. Mr. Johnson, real estate finance division, had previously been with First Federal Savings and Loan A s sociation in Minneapolis for five years as a vice president in charge of commercial real estate and a vice president of The Security Corpora tion. Mr. Kennedy, special industries/commercial loan division, has been with First Bank System in Minneapolis for seven years, most 55 m Kans of information. Orders. Invoices. These days,a company has to generate a Payrolls. Inventories. Proposals. Advertising. Sales lot of information.And get it to a lot of people who reports. All those papers that separate you from need it to do their jobs. \ the top of your desk. **. Computers generate information. We’re Northwestem Bell. And we’re part of Northwestern Bell moves it. And we move the biggest information network inthe world. more of it, to more places, more quickly, A network that moves at least 90% of all more reliably than anyone else intine world, the business information that moves anywhere. Even if your company has a mountain of A network that moves not only voices, but information to move, you can move it with just one computer data, graphics and video signals. finger.The finger you use to call us at A network that’s right at your fingertips.As 1- 800- 328-4535 Ext. 2607 Or in Minnesota, near as your phone. 1- 800- 752-4225 Ext. 2607 «1983 NORTHWESTERN BELL Northwestern Bell TheInformation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 1 9 8 4 56 M in n e s o ta N ew s PICTURED above are sequential photographs taken before, during and after the demolition of the Northwestern National Bank Building on March 11. A fire that started in the Donaldson’s department store next door and spread to the Northwestern National Bank Building on Thanksgiving Day, 1982, gutted the office building from the sixth floor up, with the rest of the building suffering smoke and water damage. Through a method called “ implosion,” close to 2,000 separate linear-shaped charges were placed against steel columns holding up the struc ture. These charges were then exploded at Vfe to 1 second intervals for approximately 10 seconds, initiating a controlled, progressive inward collapse of the structure that lasted a total of 15 seconds. Following the demolition, preparation began for the construction of the Norwest Center, a banking, shopping and office center to be built by a partnership of Norwest Corporation and Oxford Properties, Inc. Actual construc tion is scheduled to begin in July or August of this year and occupancy set for the second quarter of 1987. recently serving as vice president and manager of credit review. New assistant vice presidents in clude: David N. North, accounting policy/external reporting; Levor Garnaas, bond/government trading; Steven M. Vrablik, Jr., natural resources in the Denver Representa tive Office; Lucy Wright Mattson, business owners section of executive banking; Peter W. Kooman, national east division; Barbara B. Engen and Oliv A. Fluck, international opera tions; Andrus K. Peterson, special loans; Jeanne N. Schlosser, teller services administration; Neal H. Frank, Ridgedale Office; Thomas D. Leuma, loan review/credit; Carole H. Appleby and James T. Genosky, trust operations and planning, and Catherine P. Dudley, human re sources department. Bruce A. Richard, executive vice president of Northern States Power Company, has been named to the bank’s board of directors. * * of the Western State Insurance Agency. Ms. Saber serves in the adminis tration area and is responsible for strategic long-range planning, per sonnel, marketing and training. Mr. Duholm, promoted in com mercial loans, is responsible for the management of both the commercial and real estate areas of the bank. Ms. Lynchosky joined the bank in February of 1983 as operations of ficer. * * * At First Bank Southdale, Wendell E. Lotthammer has been named se nior vice president/comptroller and manager of the bank’s retail and op erations divisions, and J.Michael Byron has been named executive banking officer of the executive pro fessional banking division. * Western State Bank of St. Paul recently announced the promotion of Stephen C. Erdall and Dennis J. Prchal to senior vice presidents; Terry Ann Saber and Kirk S. Duholm to vice presidents, and Mol ly A. Lynchosky to cashier. Mr. Erdall manages the retail, real estate and commercial areas. Mr. Prchal is responsible for the management of Western State Bank’s McCarron’s Lake Office and Digitized for N o r th w eFRASER s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W.E. LOTTHAMMER J.M. BYRON Mr. Lotthammer began his bank ing career with First Banks in 1962 at First Bank Robbinsdale. He also served at First Bank Northtown and as vice president senior operations officer at First Bank Merchants in St. Paul before joining the Southdale location. Mr. Byron started at First Bank Merchants in 1981 and most re cently served that bank as commer- % cial banking officer. * * * Cherokee State Bank, St. Paul, has announced the promotion of Dennis Passeri to senior vice presi dent. C. HOUSE H.R. LAMPERT Mr. Passeri has been with the ^ bank 14 years and is the bank’s senior lending officer. He previously was with Community Credit. The bank also announced the pro motion of Charlette House to assis- £ tant vice president and the addition of Heidi R. Lampert as administra tive assistant. Ms. House will be responsible for marketing and advertising and q serve as a personal banker. Ms. Lampert will be responsible for coordinating in-house data pro cessing as well as providing personal banker services. Q * * * 57 Little bank, little bank let m e com e in 9 0 • ven the three little pigs were smart enough to know E that the wolf wasn’t making a social call when he knocked on their doors. Are you? At American, we have the resources to be your corre spondent partner and the desire to help you succeed. We do not use your money to compete for your customers. When upstream correspondent banks knock on your door, examine them carefully. Be sure to find out if they’re there to help or to eat. A M E R I C A N • N A T I O N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K • S A I N T P A U L N o r th w e s te r n B a n k e r, A p ril, 19 84 58 M in n e s o ta N ew s Gregg T. Chaplin has joined First Bank St. Paul as a vice president in the w h olesale banking group. Mr. Chaplin, who had been as sistant treasurer at CPT Corpora tion for the past five years, brings a total of 15 years business experience to his g .t . CHAPLIN new position. D.M. QUINN L.J. DRESSLER D.M. DUFFY J.T. GARRETT dent were: Loren J. Dressier, from operations officer in the operations group; Donna M. Duffy from money market officer in the investment ser vices group; Jack T. Garret, from commercial banking officer in the wholesale banking group, division B; Barbara K. Hustings, from money market officer in the invest ment services group; Ruth B. Moderson, from systems officer in the operations group; Gary P. Veverka, from commercial banking officer in the wholesale banking group, division D, and Linda L. White, from personal banking of ficer in the consumer banking divi sion. * * * Jeffrey C. Mack has been named senior vice president of Metropoli tan Bank Bloomington. Before joining MetroBank, Mr. Mack was senior vice president of Sum m it State Bank in Rich fie ld , s e rv in g eight years at that location. He attended Normandale College J.C. MACK in Bloomington and graduated from the National Commercial Lending Graduate School at the University of Okla- 0 homa. * * * James W. Harris, senior market ing research analyst at the Federal Reserve Bank of Minneapolis, has joined M arket T re n d s , In c ., Minnetonka, as director of re search services. Market Trends p r o v id e s re search and con sulting services J.W. HARRIS ex clu siv ely to the financial community. * * * Norwest Corporation has an nounced the appointment of Stanley S. Stroup as senior vice president and general counsel for the corpora tion. # Mr. Stroup, who most recently served in a similar position with Bank of California, San Francisco, started his career in 1969 with First National Bank of Chicago. He served • as assistant general counsel until 1980 when he was named vice presi dent and group head of commercial banking. He joined Bank of Califor nia later that year. # * * * First Bank Lake Officially Opens • JSP IIPS S Sm Êim B.K. HUSTINGS R.B. MODERSON G.P. VEVERKA L.L. WHITE ON February 28, the First Banks’ consolidation of First Bank Minnehaha, First Bank Also announced was the promo tion of eight employees. Daniel M. Quinn has been promoted to vice president from assistant vice presi dent in the wholesale banking group, division A. Advanced to assistant vice presi N o r th w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bloomington Lake and the Parkway Office of First Bank Minneapolis opened officially under the new name of First Bank Lake. The president and chief executive officer of First Bank Lake is G. William Jude, formerly president of First Bank Minnehaha. Other senior of- # ficers are: Robert W. Torvik, executive vice president and chief operating officer; and senior vice presidents Kim Dorland, credit administration; John T. Sochko, financial and opera tions administration, and Donna Raske, retail banking. The main office of First Bank Lake is located at 2800 East Lake Street, formerly First Bank Bloomington Lake, 1527 East Lake Street, and the Parkway Office, formerly of First Bank Minneapolis, is at 4800 Chicago Avenue. Pictured above is the management team of First Bank Lake (I to r): Mr. Sochko, Mr. 0 Torvik, Ms. Dorland, Mr. Jude, and Ms. Raske. 59 When Guaranty Bank of Dallas moved to Travelers Express for their Money Order and Official Check programs, they left the time and cost of the backroom paperwork behind them. For over eight years, Travelers Express has done the reconciling, storing, tracing, and stop payments, while Guaranty retained control and earned more cash income. The right move for Guaranty can be the right move for your institution, too. Travelers E xpress M o n e y O rders are supplied to you at no cost, so you have a profit-making system with no invest ment. Travelers Express receives a minimal fee for each money order issued, while you determine your customer charge. Travelers Express Official Checks are an unlimited-amount item that substitutes for your present authorized checks. You earn income with increased balances and cash income from the program. Just as important, you reduce the operating expenses of backroom paperwork. And, Travelers Express does not com pete for your customers’ attention. We’re Travelers Expressly Working for You-with over 100 representatives nationwide. Make the right move with your remit tance programs. Call Donald Dix, Vice President of Sales, 1/800-328-5678. Travelers Expressly Working For You® ^•Travelers Express A G REYH O UN D - A , . COMPANY 1 5075 Wayzata Boulevard, M inneapolis MN 55416 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 60 M in n e s o ta N ew s Several recent additions and pro motions have been announced by American National Bank of St. Paul. James A. Russell has joined the correspondent banking division as vice president and Sabina Sten has joined the commercial loan division as vice president. New assistant vice presidents in clude: Douglas J. Munson, cor respondent banking division; Mar garet M. Bannon, commercial loan division, and Mary C. Pachl, opera tions. been with the bank since 1979 and most recently was business develop ment representative. Ms. Cole joined in 1982 as an accounting officer. She previously was a staff accountant with Touche, Ross & Company. * * * David M. Dahl has been elected marketing officer of FBS Business Finance Corporation. Mr. Dahl is responsible for mar keting equipment leasing and equip ment financing. His marketing ter ritory includes the southeastern Twin Cities, southeastern Minne sota, Iowa, eastern South Dakota and Omaha, Neb. * * * St. Anthony National Bank, Min neapolis, has announced the election of Lon Helgemo as vice president. His primary re s p o n s i b il i t i e s will be commer cial loans and new business de velopment. Mr. Helgemo joined the bank in 1969 as man L. HELGEMO ager of the in stalment loan department. D.J. MUNSON M.M. BANNON Gary S. Deinert and Linda K. Nelson were promoted to consumer banking officers, and Donna R. Cole was promoted to assistant con troller. Mr. Russell had been emplqyed by First Bank St. Paul for 19 years, most recently as vice president in correspondent banking. Ms. Sten had been employed by First Bank Minneapolis for 11 years, most recently as assistant vice president in the agri-business/ commodities division. Mr. Munson had been with Cor porate BancServices, Inc. as an assistant vice president. Ms. Ban non most recently was with First Bank Minneapolis as a commercial banking officer and prior to that was with Norwest Bank Des Moines, N.A., Iowa. Ms. Pachl began with American National in 1980 as opera tions specialist and was later prom oted to manager of check processing and operations officer. Mr. Deinert joined in 1979 as a personal banker. Ms. Nelson has Digitized for N o r th w eFRASER s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Joins Fergus Falls Bank Richard Kennedy has joined Norw e st F e rg u s Falls, N.A. as vice president and manager in retail banking. Mr. Kennedy previously was instalment loan manager at Nor west Bank in Thief River Falls R. KENNEDY and served in a similar position at Norwest Bank Fargo, N.D. Three Promoted in Mankato Three promotions were recently announced at National Bank of Commerce in Mankato. Philip J. Adams was promoted to senior vice president. He joined the bank in 1981 and has been serving as vice president with primary re sponsibility for agricultural lending. Michael J. Boike has been ad vanced to vice president and cashier. ^ Mr. Boike joined NBC in 1976 and ^ has served as internal auditor, assis tant operations officer and assistant vice president and cashier. Dennis M. Zellmer was promoted q to vice president. He joined in 1975 as assistant cashier and instalment loan officer and more recently served in commercial and real estate lend ing as assistant vice president. ^ WISCONSIN NEWS . . . (Continued from page 61) Chippewa Falls, and Ralph L. Zaun, ^ chairman and president, Grafton ^ State Bank. Valley Acquisition And Purchase Announced In a joint announcement, Richard A. Stack, chairman of Insurance Services, Inc. and Gus A. Zuehlke, chairman and chief executive officer of Valley Bancorporation, Appleton, announced that the acquisition of Insurance Services, Inc. by a sub sidiary of Valley Bank, Appleton, has been completed. The new sub sidiary, to be also known as In surance Services, Inc., will be managed by Mr. Stack, serving as chairman; Alvin C. Braun, serving as chief executive officer, and John Lundquist as president. Also announced, Valley Bancor poration has reached an agreement in principal to purchase approximately 57% of the outstanding stock of The First National Bank of Rhinelander from certain major shareholders, and to make a similar offer for the stock of the remaining shareholders. Mr. Zuehlke stated that the transaction, which is sub ject to Federal Reserve Board ap proval and other conditions, is ex pected to be concluded this fall. <§ _ 9 ^ ^ 0 £ Q Acquisitions Approved The following acquisitions were 0 recently approved by the Federal Reserve Bank of Minneapolis: Dunn County Bancshares, Inc., Menomonie, to acquire Bank of Menomonie, and Northern Wisconsin 0 Bank Holding Company, Laona, to acquire the net assets of Laona Agency, Inc., and to engage in operating a general insurance agen cy in a community with a population 0 not exceeding 5,000. 61 Milwaukee Executive Heads Delegation to Far East New Berlin Executives Named The board of directors of Indepen dence Bank New Berlin has named # Robert A. Mau as chairman and William H. Coultas as president. Mr. Mau, the bank’s president since 1965, continues as CEO of the bank. Mr. Mau serves on the bank and corporate boards of directors, and has been involved in New Berlin ^ business and civic activities for ^ many years. Mr. Coultas has been with Inde pendence Bank Group since gradua tion from Carroll College in 1972. 0 Following several years at Indepen dence Bank Waukesha, he was ap pointed vice president at Indepen dence Bank New Berlin in 1979 and senior vice president in 1982. Slinger as executive vice president. Prior to joining F&M Bank of Slin ger he had been with the Marine Bank of West Bend. Mr. Casper was vice president, commercial loans, at Heritage Bank, Milwaukee, Wisconsin. Prior to join ing Heritage, he had been assistant vice president, commercial loan of ficer, with Wisconsin Marine Bank. Mr. Marx joins F&M Bank after serving as corporate officer and ex ecutive vice president of Build-All Corporation, Brookfield. Prior to joining Build-All in 1981, he was corporate officer and the head of the commercial lending department of Waukesha County Marine Bank. Mr. Saler joins F&M Bank after serving as assistant vice president at M&I American Bank and Trust Company, Racine. Prior to joining M&I, he was assistant vice presi dent at the First National Bank and Trust Company, Marquette, Mich. Mr. Carey has been with F&M Bank since 1977. He joined the Bank as a credit services officer and was promoted to senior credit ser vices officer in 1982. Richard S. Bibler, an executive vice president of First Wisconsin National Bank of Milwaukee, will head a delegation of Midwestern bankers on a three week professional exchange visit to the Far East. Mr. Bibler is the current chairman of the American Bankers Associa tion’s commercial lending division and a member of the A B A board and executive council member. The 24 person delegation, which includes six other Wisconsin bankers, was selected by the People to People Citizen Ambassador Program. People to People International, a private and non-profit organization, was founded by President Dwight D. Eisenhower in 1956 to further in ternational understanding and good will. The delegation will convene in Seattle, Wash., March 10 for brief ings before departing for Guang zhou (Canton), Shenzhen, Hong Kong, Kuala Lumpur, Jakarta and Singapore. In addition to Mr. Bibler, other Wisconsin representatives are Bruce E. Erickson, chairman, First Bank of Grantsburg; Anthony C. John son, president, Fidelity State Bank of Luck; Charles J. Posnanski, presi dent, Farmers State Bank of Manawa; Dean A. Treptow, president, Brown Deer Bank; John Willut, president, First National Bank of WISCONSIN NEWS . . . (Turn to page 60, please) Construction Underway in Dresser Additions Announced At Menomonee Falls Bank Richard P. Klug, president of F&M Financial Services and F&M Bank of Menomonee Falls, has announced that Allen M. Schaetz, Dean A. Cas per and Gregory M. Marx, have joined the F&M Bank’s commercial bank ing division as vice presidents. He also announced that John R. Saler has joined the commercial division as assistant vice president and that James D. Carey, senior credit ser vices officer in the commercial divi sion, has been elected assistant vice president, senior credit services of ficer. Mr. Schaetz formerly was with the newly acquired F&M Bank of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PICTURED above is the proposed new facility for the Dresser Village Branch of Fidelity State Bank at Luck. The new building, which is expected to be ready for occupancy by June, will have approximately 3,000 sq. ft. on the main floor with an additional 1,000 sq. ft. for storage and mechanical equipment located in the loft area at the back of the building. A wood-burning fireplace with stone chimney will be located in the lobby along with an open beam ceiling and exterior lighting through windows at the peak of the roof. Drive-up teller facilities will also be included. Plans include donating the present bank building to the Dresser community. N o r th w e s te r n B a n k e r, A p ril, 19 84 62 west Bank Fargo, N.A. as senior ^ vice president and director in 1971. He moved to Norwest Bank Black Hills as senior vice president and director in 1976. He was elected ex ecutive vice president in 1981, with q primary responsibilities in loan ad ministration. Advancements Announced At First Bank of South Dakota ^ Elected in Sioux Fails Don Oliver has been elected senior vice president of the mortgage retail b a n k in g d iv i sions of Western Bank, S io u x Falls. M r. O liv e r joined the bank as vice presi dent, mortgage/ retail banking in 1982. He holds a degree in eco„ _ nomics from the LIVER University of Minnesota and has done graduate work at the Universi ties of Wisconsin and Washington. Top Executives Named At Frontier Bank, Murdo Gene Hawk, chairman of The Frontier Bank, Murdo, has announced the appointment of Daniel D. Davis as president and chief executive of ficer. Mr. Davis also serves as execu tive vice president of The First Na tional Bank in Pierre. In addition, Marie Tedrow has been named executive vice president and cashier at the Murdo bank. Ms. Tedrow has been with the Frontier Bank, formerly known as the Okaton State Bank, since 1954 in vari ous positions. Mike Kurle has been named vice president in charge of loans. He began his banking career with the First National Bank of Aberdeen in 1970. Jeffrey Heesch was named Mid land Branch loan officer. He pre viously was with Farmers State Bank, Flandreau, before joining the staff of the Midland Branch. Joins Arlington Staff James Nielsen has joined the staff of Citizens State Bank, Arlington, as ag loan officer. Mr. Nielsen received his BS de N o rth w e s te rn B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gree in ag business from South Da kota State University in 1972. He farmed from 1972-76 and joined the bank part-time in 1977, returning to farming in 1980. He will continue to be involved in his farming operation in addition to his employment with the bank. Promotions Announced At Norwest Bank Black Hills Norwest Bank Black Hills, N.A., Rapid City, President Charles T. Undlin has announced the following promotions: Bob Worth, vice president and manager, Lead/D eadw ood; Jim Johnson, vice president, main office; Ed Toms, vice president and man ager, Villa office; Mike Palmer, as sistant vice president and manager, Sturgis; Tom Naasz, assistant vice president, main office; Doug Peter son, assistant vice president, Mt. View; Rick Brady, assistant vice president and assistant manager, Hot Springs, and Jim Morcom, com mercial loan officer, Lead. Norwest Corporation Names Region VI Vice President Vance O. Williams, executive vice president, Norwest Bank Black Hills, N.A., Rapid City, was elected re gional vice presi dent and senior credit adminis trator for Nor w est C orp ora tion, Region VI, and execu tive vice president/ loan administra V.O. WILLIAMS tion for Norwest Bank Sioux Falls, N.A. Mr. Williams joined Norwest Cor poration in 1957 as a credit analyst in the corporate office in Min neapolis. In 1960, he moved to Faribault, where he worked in the loan area at Norwest Bank Fari bault, N.A. He transferred to Nor- The board of directors of First Bank of South Dakota (N.A.) has elected three officers and promoted three others, according to an an nouncement by David S. Birkeland, president and CEO. Officer elections include Debra S. Delfs - operations officer, First Bank of South Dakota-South Branch; Wayne R. Desart - installment loan officer, First Bank Aberdeen, and Richard A. Lockert - agricultural loan officer, First Bank Lemmon. Officer promotions are Peg Lammert - cash management officer, First Bank of South Dakota-admin istrative servces; Bradley Moore -as sistant vice president, First Bank Redfield, and Roxanne A. Miller - as sistant vice president, First Bank Vermillion. D.S. DELFS W.R. DESART R.A. LOCKERT B. MOORE R.A. MILLER 63 executives. These promotions follow Norwest Corporation’s recent im plementation of a new marketing plan to bring customer represen tatives closer to its correspondent bank clients. Five Promoted At Bank of North Dakota Dakota Trust Conference - April 25-26 HE DAKOTA Trust Conference, sponsored by the “ North Dako ta and South Dakota Bankers Asso ciation will be held April 25-26 at the Holiday Inn - Fargo, North Dakota. The conference is organized around the theme of “ Marketing Trust Services,” with an emphasis on the rural trust business. Addi tional information and registration forms are available from the NDBA office. Questions may be referred to NDBA Trust Committee Chairman A.R. “ Bud” Olson at Norwest Capi tal Management & Trust Co., Fargo. The program schedule follows: Wednesday, April 25 P.M. 12:00 Registration. 1:00 Call to order, welcome and introductions—A.R. “ Bud” Olson, NDBA trust commit tee chairman and president, Norwest Capital Manage ment & Trust Co., Fargo. 1:30 “ Trust Marketing” Who are We, Where are We Going, What do We Charge?” —Dr. Phillip D. White, associate professor of marketing, Uni versity of Colorado, Boul der. 2:45 Break. 3:00 “ Trust Marketing . . . ” - con tinued. 4:30 Open discussion. 6:00 Reception—Sponsored by Federated Cash Manage ment Systems, Pittsburgh, Pa. 7:00 Dinner. 9:00 Monte Carlo Lounge and Ca sino. T ® • 0 • • Thursday, April 26 A.M. 8:00 9:00 Continental breakfast. “ Lawyers. A Trust Market in g D i l e m m a . ’ ’ —A . R . “ Bud” Olson; J. Michael N illes, A ttorney-at-L aw , Fargo; C. Nicholas Vogel, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10:15 10:30 11:45 P.M. 1:00 2:45 3:00 4:30 Attorney-at-Law, Fargo. Break. “ Economic and Investment Outlook and Environment” — Ben Crabtree, CFA, vice president-research, Dain Bosworth, Minneapolis. Luncheon—Sponsored by Goldman Sachs, Chicago, 111. Speaker: Boyd Christianson, marketing director, Prairie Public Television, Fargo. Five Bank of North Dakota of ficers recently received promotions. Shirely Homuth was ad vanced to senior vice president in the investment and trust depart ment. She had been serving as vice president, a post she has held since December, S. HOMUTH 1977. She has “ T r u s t i n g the ‘ R i g h t S t u f f ’ ’ ’ — L ar ry W i ls o n, chairman, Wilson Learning Corporation, Eden Prairie, Minn. Break. “ T r u s t i n g the ‘ R i g h t Stuff’ ” - continued. Adjournment. Joins Grand Forks Staff First National Bank in Grand Forks has announced that Neil Ja cobson has joined the bank’s staff and will be work ing in commer cial lending with responsibilities in branch admin istration. Prior to join ing First Na tional, Mr. Ja N. JACOBSON cobson worked for First Bank System in Grand Forks and has had extensive ex perience in all areas of lending. Client Executives Named In Fargo and Bismarck Jack R. Holm, vice president of Norwest Bank Fargo, and Doug Kocourek, vice president, and Jack Van Sickle, both of Norwest Bank Bismarck, have been named client C. WANNER K. KAUL been with the bank since 1948. Jim McLeod has been advanced to assistant auditor. He joined the bank last July and has held the posi tion of auditor II since that time. Sue Hartmann has been named a loan review officer. Previously a loan officer I, Ms. Hartmann joined the bank in 1976 and was promoted to her. most recent position in 1982. Cecilia Wanner, promoted to as sistant vice president, had been serving as assistant cashier since 1982. She first started with the bank in 1970 as a proof clerk. Kim Kaul, who has been named as commercial loan officer, joined the bank in 1982 and has been serving as loan officer II. N o r th w e s te r n B a n k e r, A p ril, 19 84 64 directors. Other bank officers in- ^ elude Lynn Nash, vice president and cashier; Evelyn Sipe, bookkeeperteller, and Ruth Frolander, manager of the bank’s insurance agency. The Grand Opening of the bank is sched- 0 uled for early April. Hulett has been without a bank for 53 years. Figures Released For Wyoming Banks The Office of the State Examiner $1.17 per share. This compares with recently released its abstract report net income of $5,042,000, or $4.24 for the 59 state and 52 national per share in 1982 and reflects major Robert W. Miracle, president and management action taken, principal banks in Wyoming for December 31, chief executive officer of Affiliated ly in the third quarter to strengthen 1983. All dollar figures are listed in Bank Corporation, Casper, reported the company’s balance sheet and to thousands. Net loans for the combined 11 recently that fourth quarter figures position Affiliated for a strong earn of 1983 “ reflected a profit of ings performance in 1984. The third total banks in W yoming were compared with $360,000, or 30 cents per share and, quarter loss to accompany this ob $ 2 , 2 4 9 , 7 3 5 , $2,123,444, in 1982. more importantly, unaudited figures jective was $4,231,000, equal to a Total deposits for 1983 were for the month of January, 1984, re loss of $3.55 per share.” $3,789,387, compared with flected earnings of $401,000 or 34 $3,587,554 in 1982. cents per share.“ The percent of loans for 1983 was Mr. Miracle told directors that a Officers Promoted in Casper 59.4%, up from 59.2% in 1982. Equi restructuring of A.B.C., which be First Interstate Bank of Casper ty capital to deposits in 1983 was gan in June, 1982, is proceeding on recently announced the promotion of 9.85%, compared with 9.98% in schedule. He said it is designed to 1982. strategically position the organiza Shirely Rogers tion to effectively compete in the in to vice president creasingly competitive and deregu of the bookkeep Officer Promoted in Casper lated financial services environment ing department and Martha Cis First Interstate Bank of Casper of the 1980s. neros to senior has announced the promotion of At year-end, Affiliated’s directors escrow officer. Martha Cisneros to senior escrow ofdeclared a quarterly dividend of 39 Formerly an ficer. cents per common share, payable Formerly an escrow officer, Ms. March 2, the 53rd consecutive quar assistant vice president, Ms. Cisneros has worked in that depart terly dividend paid by the company Rogers has been ment for six years and prior to that since its founding in August, 1970. S. ROGERS with the bank 14 she worked ten years in bookkeeping. Mr. Miracle said the loan loss re serve at year-end stood at $5,278,000, years. Previous to her employment compared to $3,672,000 at 1982 with First Interstate, she was with Gillette V.P.s Promoted year-end. “ This gave the company Western National Bank of Casper. Formerly an escrow officer, Ms. strengthened reserves of 1.81% of Rodney Addison and Clinton P. total loans outstanding, much Cisneros has worked in that depart W alker have been promoted to vice ment for six years and prior to that higher than industry norms,’ ’ he she worked ten years in bookkeeping. presidents of Stockmens Bank & stated. Trust Co., Gillette. Both are in the Year-end combined resources of loan department. A.B.C. and its subsidiary banks to Hulett National to Hold taled $514,437,000, compared with Sheridan Bank Opens $534,671,000 at 1982 year-end. Mr. Grand Opening in April Miracle said the positive results of The new Hulett National Bank, Sheridan National Bank opened fourth quarter 1983 and January, Hulett, officially opened its doors its doors for business February 3 at 1984, “ will indeed enable the com for business on February 28 after a 2318 North Main, the location of its pany to return to a more traditional three year organizing effort on the new 2,200 square foot facility. Sheri earning trend in 1984. Our equity part of 12 Crook County citizens. dan National Bank originally re capital remains much stronger than James O. Apian was named presi ceived its charter approval in 1981, industry standards, equal to 7.65% dent and chief executive officer. He and celebrated its grand opening of year-end assets and, when adding has been in banking 13 years, most with activities throughout the day. reserves, results in a primary capital recently as vice president and man Joseph R. Lyman is president of rate of 8.59%. We anticipate no ager of the independent Frontier the new bank which is locally-owned change in our dividend policy.’ ’ Bank in Midland, S.D. and will employ nine people. Mr. Miracle concluded, “ Affili Sheridan National is a full-service Jim D. Neiman, manager of Neiated showed a consolidated net loss man Sawmills, Inc. of Hulett, was bank and offers drive-in banking faof $1,390,000 for 1983, a loss of elected chairman of the board of 13 cilities. • Affiliated Bank Corp. Says Earnings improve Digitized N o rthfor w eFRASER s te rn B a n k e r , A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 0 0 # q 0 0 0 65 she has held the positions of custo mer service representative, commer cial note teller and installment loan officer. Dillon President Named Montana Bank of Sidney Names New President Robert A. Wanago has been named president of Montana Bank of Sid ney, N.A. He form erly served as senior vice president and second of ficer at First Bank Havre. Mr. Wanago’s career in bank ing started in 1965 with First Bank System , " A. WANAGO and he has worked in Minneapolis, Great Falls, and Havre with the bank system and First Bank affili ates. • Helena Staff Changes Told • ^ ® ^ ^ ^ Norwest Bank Helena recently announced several changes and pro motions. Jon Patterson has joined the bank from Norwest Bank Sioux City, Iowa, as assistant vice president in commercial lending. Rosslyn Dun can was named accounting officer. Promoted to assistant vice president were: Michael Mundt, commer cial lending; Debra Lanning, opera tions; Barbara Flynn, human re sources, and Patrick Riehl, con troller. Mr. Patterson started with the Norwest Bank Billings in 1979 be fore being transferred to the Sioux City affiliate in 1981. Ms. Duncan began working for the bank in 1980 as accounting supervisor. Mr. Mundt joined the bank in 1974 and most recently was named commercial loan officer in 1983. Ms. Lanning joined the bank as a teller and has served as operations supervisor, and assistant operations officer. Ms. Flynn joined in 1979 as opera tions supervisor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Riehl joined in 1974 and most recently served as controller. Three Named in Glasgow Three new officers were named at the First National Bank in Glasgow, according to Lynn D. Grobel, presi dent. Donna Cole was named real es tate officer; Dawna Heath, assistant cashier, and Lori Viste was promoted to installment loan officer. Mrs. Cole be gan her career as a teller in the bank in 1968, moving to the real estate de p a rtm e n t in 1975. M rs. H eath also has been D. COLE with the bank since 1968, work- D. HEATH L. VISTE ing in various operating departments of the bank and as bank accountant since 1971. Ms. Viste is a native of Nashua, Montana. She started with the bank in 1976 as a computer operator and has been working in the installment loan department since 1980. Norwest Bank Dillon, N.A. has elected O.D. (Dan) Shively president and chief execu tive officer of the bank. He suc ceeds Robert G. Mountain, who has resigned. Mr. Shively had been senior vice president/lending at the Dillon Bank and transferred O.D. SHIVELY to Dillon from Norwest Bank Billings, N.A., in September, 1983. Mr. Shively started with Norwest at its Billings bank as head of its agricultural department in 1977 and was vice president in charge of the business loan division when he transferred to the Dillon bank. Three Elected in Billings Thomas H. Farris, president of Norwest Bank Billings, N.A., has announced the election of three real estate loan officers. Sandra L. Pearsall has been with Norwest Bank B illin g s since 1981 as a real es tate representa tive. She served as branch mana ger for 9 years w ith S ecu rity Federal Savings & Loan before joining Norwest S.L. PEARSALL Bank. Missoula Promotion Told The board of First Bank Southside Missoula recently announced the promotion of Kim Gordon to commercial loan officer. Ms. Gordon began her banking career in 1976 with First Bank Bozeman. She was transferred to First Bank Southside in 1979 where E .J. DICKINSON M.L. ARTHUN Eleanor J. Dickinson, who has been in banking for 25 years, joined Norwest Bank in November, 1982, as a Real Estate Representative. Previously she was a real estate loan N o r th w e s te r n B a n k e r, A p ril, 19 84 66 officer for four years at the First State Bank in Thompson Falls. Mary Lynne Arthun worked at Safeco Title Insurance Company for two years prior to her joining Norwest Bank Billings in May, 1983, as a real estate representative. up the ranks until his promotion to senior vice president in 1983. Mr. Lattin has served as chair- First Interstate, Kalispell Elects New Chairman and CEO HE MONTANA Bankers Asso ciation and M BA-AIB Educa tion Committee is sponsoring an all new two-day Supervisory Develop ment Workshop April 24-25 at the Colonial Inn, Helena. The workshop is designed for head tellers, teller supervisors, department supervi sors or individuals in line for these positions within the next year. In addition to the workshop, each participant will receive a notebook filled with information to supple ment their workshop experiences. The agenda for the workshop fol lows: Robert T. Gerhardt has been elected chairman of the board and chief executive officer of First Inter state Bank of Kalispell. He succeeds Harry E. Lattin, who has resigned to pursue other interests. Mr. Gerhardt has spent nearly 20 years at First Interstate Bank of Oregon, most recently as senior vice president in charge of 29 branches in the northwest part of the state. He began his banking career at that bank as a trainee in 1964, and moved man of the board and chief executive £ office of the bank since February, 1982. Supervisory Workshop To Be Offered T A.M. 8:30 9:00 10:30 10:45 P.M. 12:00 1:00 5:00 A.M. 8:30 9:00 P.M. 12:00 1:00 4:00 • Tuesday, April 24 Registration. Listening/Communications. ^ Break. W Team Building. Lunch. Leadership. ^ Adjourn. Wednesday, April 25 Good Mornings/Coffee. Participative Management. 9 Lunch. Your Plan of Action. Adjourn. Lakewood Chairman Elected Richard G. Adamson, vice presi dent of business management for Martin Marietta Aerospace, has % been elected chairman of Colorado National Bank - Lakewood, an nounced William R. Frogge, presi dent of the bank. Mr. Adamson joined Martin Marietta in 1960. + Advanced at Denver National Sterling President Named Jerry C. Reeves has been named president of Commercial Bank of Sterling, succeeding Vernon H. Car ter, who was named chairman. Also promoted were Wayne J. Pimple to executive vice president, who was also elected to the board, and Terry Sanger to vice president. Named in Denver Colorado National Bank of Den ver has named Joann G. Ward se nior trust officer. Ms. Ward joined the bank as trust administrator and during her 11 years with the bank has held posi tions of personal trust officer, trust officer and vice president. In her new position she will manage the trust division of the financial ser vices group. Two Promoted in Littleton United Bank of SouthPark, Little ton, recently announced the promo N o r th w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion of Robert J. Trujillo to execu tive banking officer and John Bate son to vice president, banking ser vices manager. Mr. Trujillo joined United Banks in 1978 and has worked in the opera tions and executive and personnel banking areas of the bank. Mr. Bateson has been with United Banks since 1981 in commercial lending. Industrial Bank Sold Colorado National Bankshares, Inc., Denver, has announced the sale of Northglenn Industrial Bank to Mellon Financial Services’ Commer cial and Consumer Finance Group, headquartered in Oak Brook, Illinois. This transaction completes the final phase in the cessation of all in dustrial bank operations by the Company. East Industrial Bank was sold to Integrated Resources, Inc. in September, 1983. Aspen Industrial Bank entered into a voluntary plan of liquidation effective in the fall of 1983. Denver National Bank has an nounced the appointment of Robert D. Clark as vice p resid en t and general counsel and the promo tion of Hal F. Nelson to con troller. Mr. Clark re ceived his law degree from the U n iv e rs ity o f R.D. CLARK Colorado in 1976 and his BA from Stanford Universi ty in 1969. Mr. Nelson joined Denver Na tional in 1981 as assistant controller and prior to that was with Affiliated Bankshares of Colorado, Inc., as in ternal auditor. Boulder Promotion Told Milo G. Weingart has been pro moted to vice president of Colorado National Bank - Boulder. Mr. Weingart joined the bank in # 1979 as marketing officer and was C olorad o N ew s _ later promoted to assistant vice 9 president of lending. He has 17 years of banking experience. United Banks Names • New Advertising Agency Richard A. Kirk of United Banks of Colorado, Inc., announced that it has selected Tracy-Locke/BBDO ^ Denver as its advertising agency of record. In this capacity, the agency will manage the advertising account for United Banks, including its affil iate banks and subsidiaries. Denver Directors Elected q William M. Moore, president of Moore and Company, Realtor, and Ronald W. Williams, president of Gary-Williams Oil Producer, have been elected to the board of United Bank of Denver. management responsibility for lend ing, marketing and other bank finan cial administrative activities. Seven Advanced At Central Bank of Denver Central Bank of Denver recently promoted five employees and ap pointed two others to officer posi tions. M a rth a S. Graves has been promoted to vice president, trust. She has an M BA degree from the U n iv e rs ity o f Denver and cur rently is respon sible for a variety M.S. GRAVES of employee ben- • • • • • Elected to the Board Charles H. Sanford, president of Sanford Homes, Inc., has been elected to the board of Colorado National Bank of Denver. President and CEO Elected In Steamboat Springs ^ At United Bank of Steamboat Springs, Dale A. Peters has been elected president and chief executive officer. Formerly with IntraWest Bank of ^ Grand Junction, Mr. Peters’ bank ing experience has included senior https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Promoted in Fort Morgan David Ohman has been promoted to senior trust officer and corporate secretary of the Farmers State Bank of Fort Morgan. He succeeds Cathe rine Stroh, who retired recently. Mr. Ohman was named trust of ficer of the bank in 1979 and was elected to the board of directors in 1982. Also announced was the election of Jerry K. Jones to the board. He is vice president in commercial loans at the bank, having joined the bank in 1981. Director Elected At Colorado Springs Bank • Denver Banker Joins Investment Banking Firm Kennth W. Caughey, former se nior vice president and director of C o lo r a d o N a tional Bank of D e n v e r, has joined William Blair & Company as special marketing con sultant. Mr. Caughey headed the trust departm ent of k .W. CAUGHEY Colorado Nation al for 14 years and was with the bank a total of 29 years. William Blair & Company is a Chicago-based investment banking firm with offices in Denver and A t lanta. 67 Wilson and Patricia R. Richardson. Mr. Wilson, control officer, joined Central in 1982. Ms. Richardson, officer in trust operations, first joined in 1978. S.T. MC CAFFERY C.A. PERRET Peter M. Sheedy, vice president and cashier of Garden of the Gods Bank, Col orado Springs, has been elected to the bank’s board. Mr. Sheedy was one of the bank’s organiz ing officers and P.M. SHEEDY has held senior management positions with several banks in Illinois. Named in Denver P.J. RANDELL S.C . STEINKUHLER efit programs at Central. Promoted to assistant vice presi dent are: Shauna T. McCaffery, Cin dy A. Perret, Philip J. Randell and Shelley C. Steinkuhler. Prior to joining Central in 1979, Ms. McCaffery was a financial plan ning analyst for Swift and Co. in Chicago. Ms. Perret was promoted in hu man resources, following two years with the bank. Mr. Randell joined in 1980 and will continue to serve in the corre spondent banking department. Ms. Steinkuhler’s promotion is in commercial lending. She has been with the bank five years. Officers appointed are Andrew C. David Butler, a partner in the Denver law firm of Holland & Hart, has been named general counsel for First Interstate Bank of Denver. Mr. Butler, an honors graduate of Princeton and the Harvard Law School, has counseled in the area of corporate and business law with Holland & Hart since 1958. Aurora Promotion Told Colorado National Bank - Aurora, has announced the promotion of Lannie J. Weiss to assistant vice president. Mrs. Weiss joined the bank in 1977 as new accounts representa tive. In her current position, she will be responsible for the consumer loan and Visa Banking areas. N o r th w e s te r n B a n k e r, A p ril, 19 84 “I need a correspondent banker w ho’ll work as hard for my bank as he d o es for his ow n.” That’s just what a working relationship with NBC offers. If you judge them by their ads, correspondent banks look quite a bit alike. But the banks we serve are looking for more than a friendly smile and a passing knowledge of their special problems. They’re looking for a professional partnership they can count on. Our working relationship involves all the traditional correspondent services plus programs that are uniquely ours: from customized bank cash management services, to a clearinghouse for banking forms, to financial planning software packages for banks and their customers. Vital contact includes our “ News Views” executive letter citing industry trends and changing regulations. In today’s com petitive financial market, you need that kind of support from your correspondent. Call us to hear more about what our clients mean when they say, “ NBC works for me.” BC U /<m 60 0 1 M b '’ The Correspondent Banking; Division of National Bank of Commerce NBC Center, 13th & O St., Lincoln, Nebraska 68508, Telephone (402) 472-4321 / M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69 DON G. JO H N SO N A.C. “ SKIP” HOVE STAN MATZKE, JR . President President-Elect Exec. Vice President Wednesday, May 2 87th Annual • Nebraska Bankers Association Convention May 2-4 Lincoln Cornhusker _ ™ ^ ^ £ £ £ A CHANGE IN scenery is in store, as bankers travel to Lincoln this year for the 1984 Nebraska Bankers Association Annual Convention being held May 2-4, in the new Cornhusker Hotel. In keeping with the theme, “ A Time for Excellence,” this year’s convention is designed to put special focus on excellence in banking and is geared to entertain, inspire and instill an added measure of commitment to banking excellence. A trade show will be going on throughout the convention, a hospitality information center for spouses will be available and special activities are planned. Presiding at the convention as President of the NBA will be Don G. Johnson, president of Farmers National Bank, Pilger. Scheduled for advancement to the NBA presidency is A.C. “ Skip” Hove, chairman, Minden Exchange Bank. Stan Matzke, Jr., executive vice pres ident, continues in his duties. This year’s entertainment will include the Scarlet & Cream Singers, a group of students from the Univer sity of Nebraska, Lincoln, in their eleventh year, who will perform at Thursday night’s banquet. Also for con vention entertainment will be Danny Gans, singer, comedian and impressionist, and the Louise Mandrell Show. NBA members will have an opportunity during the convention to visit the new headquarters building of the Nebraska Bankers Association, located at 525 South 13th Street. The program schedule follows: CAPT. G. CO FFEE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DR. C. YEUTTER A.M. 8:00 8:00 8:00 9:00 9:30 P.M. 12:30 1:00 1:00 2:00 2:00 2:00 2:00 6:00 A.M. 8:30 8:30 8:30 8:30 8:30 9:00 9:50 10:30 11:15 DR. W. TALARZYK -12:00 Convention registration (exhibitors & VIP). -12:00 Trade Show set up. Nebraska Bankers Insurance & Services Com pany board meeting. Executive council meeting. VIP spouse function. VIP lunch. -5:00 Spouse hospitality/information center. -6:00 Convention registrants registration. Past presidents meeting. NETS board meeting. NBA open house—525 South 13th Street. -6:00 Trade show hours. Correspondent hospitality night. Thursday, May 3 Trade show hours until 12:00 Continental breakfast in exhibit hall. -12:00 and 1:00-4:00 Spouse hospitality/infor mation center. -12:00 and 1:00-6:00 Registration hours. General session. Audio/visual presentation. Address—NBA President Don G. Johnson, president, Farmers National Bank, Pilger. “ Faith: The Key to Survival and Triumph” — Captain Gerald Coffee, U.S. Navy. “ Agriculture” —Dr. Clayton Yeutter, presi dent and chief executive officer, Chicago Mer cantile Exchange. “ Retail E F T ” —Tom Bass, president, The Ex change (Washington). NETS annual meeting. C.R. BRENTON W.W. COOK, JR . N o r th w e s te r n B a n k e r, A p ril, 19 84 70 N eb raska N ew s B. ASM US P.M. 12:00 2:00 2:00 2:00 3:00 3:45 4:30 6:30 6:30 7:30 9:00 9:30 10:00 A.M. 8:00 8:00 8:00 8:00 8:30 9:00 9:30 9:50 GOV. G. NIGH B. MILLS Awards luncheon, featuring Scarlet & Cream Performers and Governor Robert Kerrey. -6:00 Trade show hours. Spouse program “ The Art of Organization” — Barbara Hemphill, organizing consultant. General session. “ Changing Consumer L ife-S ty les’ ’ —Dr. Wayne Talarzyk, chairman & professor of mar keting, Ohio State University, Columbus, Oh. NBA annual meeting and election of officers. “ The Reaganization of Foreign Policy” — Richard Valeriani, NBC News Correspondent. Trade show reception. NBA Annual Banquet. Reception (Atrium—three levels). Banquet. Danny Gans entertainment. Incoming president’s reception, Nebraska Club. Dance and cash bar. Friday, May 4 -4:00 Registration hours. Trade Show set up. Continental breakfast in exhibit hall. A B A breakfast. Spouse brunch. General session. A B A President C. Robert Brenton, president, Brenton Banks, Inc. A B A report, W.W. Cook, Jr., A B A state vice president, and president, Beatrice National Bank & Trust Co. AIB report, Jean Volkir, state chairperson, and second vice president, Omaha National Bank. DANNY GA N S 10:15 “ New Expanded Bank Powers Panel’’ —repre sentatives from FDIC, Federal Reserve, Comp troller and Senate Banking Committee. P.M. 12:00 1:30 • Buffet/picnic lunch, cash basis. “ The Economics of Reality’ ’—Dr. Barry Asmus, professor of economics, Boise State Uni versity, Boise, Ida. _ “ Don’t Confuse Excellence With Perfection” — ® Governor George Nigh, Oklahoma City. “ A Time for Excellence” —Billy Mills, former Olympic Games gold medal winner in the 10,000 meter run. ^ Full executive council meeting. Reception, Pershing Auditorium. Dinner/prizes. Louise Mandrell Show. □ 2:15 3:00 4:00 6:00 7:00 9:00 THE SCARLET & CREAM SIN GERS You Will See Them at the 87th Annual Nebraska Bankers Convention May 2-4 HE follow in g m etropolitan bankers, investment people and service equipment dealers have in dicated they will be attending the 87th annual Nebraska Bankers A s sociation Convention May 2-4 in Lincoln. Denver Central Bank: William C. Tumelty, vice president and Philip J. Randell, assistant vice president. T N o r th w e s te r n B a n k e r, A p r il, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LOUISE MANDRELL Colorado National Bank: Charles W. Kirk and Larry G. Matthes, vice presidents. Denver National Bank: Steve Sheridan, vice president. First Interstate Bank: Robert Sw artz and Kirk Reed, vice presidents. United Bank of Denver: Darvy L. Myers, vice president and Ronald D. Edwards, assistant vice president. Kansas City w Commerce Bank of Kansas City: Ernest Yake, senior vice president and Tom Jennings, assistant vice president. ^ United Missouri Bank of Kansas w City, N.A.: J. Lyle Wells, Jr., vice chairman; Richard C. King, presi dent; Philip D. Straight, executive vice president; Richard H. Muir a n d ^ Steve Panknin, vice presidents; Jeff Goble, assistant vice president; Dave Dickens and Pat Baldwin, bond investment officers. Lincoln # First National Bank: Gary Bieck, 71 The nam e is new, but the tradition goes on. W e ’re the sam e people William March President w ho have been presenting orchids to the ladies at the N ebraska B ank ers convention fo r over 30 years. W e ’ll be doing it again this year on Patrick H. Rensch Senior Vice President Friday night, M ay 4th. And our tra d i tion for professional service goes C. W. (Chuck) Poore, Jr. Senior Vice President on, too. W e are N e b ra ska ’s m ost experienced hom e-ow ned firm d e a l ing exclusively in tax-exem pt securi A. William (Bill) Abts, Jr. Vice President ties. O ur people have been providing you w ith e xp e rt financial advice for Wayne A. Rasmuss Secretary-Treasurer m ore than 40 years. N ow w e ’re the M BU P rofessionals! Micky Krupinsky Representative John Fleming Representative Municipal Bond Underwriters, Inc. Investment Bankers • Underwriters 208 South 19th Street, Omaha, Nebraska 68102 (402) 341-1144 In Nebraska Call Toll Free (800) 642-4413 Member of the Securities Investor Protection Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SÏPC N o r th w e s te r n B a n k e r, A p ril, 19 72 N eb raska N ew s WHEN YOU NEED YOUR BANKERS ADVICE JUST CALL PACKERS 1984 BOARD OF DIRECTORS RALPH E. ADAMS, Chairman & President, Chambers State Bank, Chambers, Nebraska • R.A. ANDERSON, President, First State Bank, Hordville, Nebraska • LARRY L. BAZATA, Exec. Vice President & Trust Officer, Schuyler State Bank, Schuyler, Nebraska • JO H N W. CATTLE, JR ., Exec. Vice President, Cattle Na tional Bank, Seward, Nebraska • PAUL CHATELAIN, President, Bank of the Valley, Bellwood, Nebraska • DONALD E. DWORAK, Exec. V.P. & Sr. Trust Officer, Packers National Bank, Omaha, Nebraska • DOUGLAS A. FRIEDLI, Exec. Vice President, First National Bank, Lyons, Nebraska • JE F F L. GERHART, Exec. Vice President, First National Bank, Newman Grove, Nebraska • ROBERT L. HAYTER, President, Bank of Monroe, Monroe, Nebraska • CHARLES R. HILDERBRAND, President, The First National Bank of Ogallala, Ogallala, Nebraska • RUSSELL E. KENDALL, Packers National Bank, Omaha, Nebraska • JEROM E E. KONEN, Vice President, Roseland State Bank, Roseland, Nebraska • LADDIE J . KOZENY, Vice Chairman of the Board, Packers National Bank, Omaha, Nebraska • PAUL L. MERKER, Merker Realty Company, Omaha, Nebraska • DELWIN RUMERY, Sr. Vice President, Scribner Bank, Scribner, Nebraska • GUY L. SAUNDERS, Chair man of the Board, President Packers Management Company, Lincoln, Nebraska • DAVID T. SCHWEITZ, President, Security State Bank, Broken Bow, Nebraska • ROBERT J. SIXEL, Exec. Vice President, State Bank of Scotia, Scotia, Nebraska • DEAN SLADEK, President, Citizens State Bank, Clearwater, Nebraska • RUDY F. STOYSICH, Stoysich House of Sausage, Omaha, Nebraska • JA M E S T. WEAVER, President, Valley National Bank of Fremont County, Hamburg, Iowa • DENNIS R. WOOD, President, Packers National Bank, Omaha, Nebraska. Truly, A Bankers Bank packers national bank Digitized forw eFRASER N o r th s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24th & L Streets Omaha, Nebraska 68107 402/731-4900 vice president & manager; Steve An- ^ derson, vice president; Marv H e fti^ and Mark Hahn, assistant vice pres idents; Kathy Votaw and Chuck Greenway, correspondent bank offi cers and Charles Ellis, operations of- ^ ficer. National Bank of Commerce: Tom Potter, president; Dennis Stelzer, president, NBC/CSC; Wilbur Baack and Loren Anderson, executive vice ^ presidents; Max Callen, Roy Otte, Dan Anderson, and Steve Kness, vice presidents; Tom Clabaugh, Jeff Krejci, Randy Helgren and Randy Gustafson, correspondent banking q officers. New York The Chase Manhattan Bank: Jesse W. Starr, second vice presi dent. ® Omaha First National Bank: John Lauritzen, chairman; Phil Giltner, presi dent; Jack Canaday, Bill Henry, Bruce Lauritzen and Dennis O ’Neal, executive vice presidents; Chuck Fries, Don Ostrand and Ralph Peter son, vice presidents; Jim Flodine and Fred Kuehl, second vice presidents; Gerry Tomka and Tom Jensen, cor respondent bank representatives. Norwest Bank Omaha: James R. Campbell, regional president; John R. Cochran, president; G.W. “ Sam” O’Keefe, executive vice president; Lee J. Bachand, senior vice presi dent; Howard W. Nielsen, Robert R. Culver and Robert E. Billmeyer, vice presidents; William J. Dewhurst and Thomas C. Jackson, second vice pres idents; Mary K. McBride, financial institutions officer and Matt S. Moyer, financial institutions repre sentative. Omaha National Bank: John D. Woods, chairman & CEO; Thos H. Allen, president; John E. Martin, Daniel F. Boehle, James L. Allen, John D. Clements, Dave T. Conroy, L.A. Carlson, Larry Comine, Robert Suddick, George Rebensdorf and Ralph G. Noren, vice presidents; John R. Wear, Richard D. Nelson, Lee Mayhan, II and G.A. Hudson, second vice presidents; Tim L. Kyndesen and Tom Rayn, bank offi cers; Debra Sasse and S.A. Scanlan, assistant bank officers; Gary J. Rower, credit card marketing man ager; Linda Dukesen credit card rep resentative and Mike Baker. M em ber FDIC St. Joseph First National Bank: Bill Manring, A LIST OF MAJOR P E R S O N » CHANGES AT FUST BANKCARD We don’t have a lot o f turnover here at First BankCard. What we do have a lot of, is experience. The same people have been serving our bankcard customers since we opened our doors to Bank Americard in 1968. Before national hank credit cards, our bankcard history goes back to 1953. That means when you call us, you’ll talk to someone who already knows the bankcard business inside out. Some one who knows you and your operation. Someone who isn’t learning at your expense. Center Manager Jim Doody has been here since our first day of business. So have Marketing Director Boh Meisinger and Customer Service Officer Mary Brown. (All three have been with our parent company, First National Bank of Omaha, since the ’50s.) First BankCard Center The newcomer is Diane Casart, Director o f Agent Bank Communications. She’s only been on board since 1970. We’ve got some pretty special products, too. Products like our very popular no-annual-fee Visa and MasterCard, and our state-of-the-art electronic dial terminals for authorization. Knowledgeable people. Innovative products. Superb service. That’s what has made First BankCard such an amaz ing success story. Find out what our experience can do for you. Call us today! Call toll-free 800-228-7070 In Nebraska, call 800-642-8369 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 74 N eb raska N ew s Crofton Bank Holds Open House CROFTON State Bank officially opened its doors in its new building earlier this year with an open house. The new facility is located on the corner of Second and Kansas Streets and is the former Crofton Feed and Implement building. Tours were given of the remodeled facility along with drawings held for prizes and gift certificates. vice president and Bob Holt, assis tant vice president. Sioux City First National Bank: R.C. Taylor, president and Gary W. Stevenson, vice president. Security National Bank: Steve Hatz, vice president of correspon dent banking. Bank Equipment and Other Firms Bank Building Corporation, St. Louis: Jon McCoy, consultant ser vice manager. Brandt Systems, Omaha: Jim Grimes, president; David Grimes, sales manager; Mark Grimes and Scott Grimes, sale representatives. Shearson/American Express -Chiles Heider, Omaha: Bill Beavers and Dave Van Metre senior vice pres idents; Jon Narmi, Jim Foley, Tad Dunhan, Jim Fox, Jim Bullock, Ken Ferrarini and Bill Carver, vice presidents, and Jeff Moran, financial consultant. Financial Systems, Inc., Kearney: Jon Cole, president; Ken Meredith, sales coordinator; Deb Roberts, Ne braska sales representative; Bob Neville, customer engineer and Gayla Parks, sales support. General Bank Equipment, Omaha: Tom Sternberg, president; Mitch Hill, service supervisor; Jim Rogers, service manager; Jerry Kruntorad, systems specialist; Irene Hunt, mar keting representative and Chuck Onyett, service technician. HBE Bank Facilities, St. Louis: Gerald Sano, account executive. ^ Lincoln Benefit Life Co., Lincoln: Steve Sutton, vice president. MBU Inc., Omaha: W illiam March, president and Robert E. Roh, executive vice president. q Modern Banking Systems, Inc., Omaha: Mike Reynolds, territory manager, Leo Stavas and Jean Meyer, sales representatives. Mosler Safe Company, Hamilton^ Ohio: A. Doug Moore, area manager, and Lindsay Michalski, sales repre sentative. United States Check Book Com pany, Omaha: Ed Batchelder, vice^ president and sales manager; Kent Miller, Rick Clabaugh, Bernie Bur ger, Dick Hansen, Bob Ellis, Bob Van Boskirk and John Kohring, rep resentatives. 49 United States Life Credit Life Ins., Co., Schaumburg, IL: Robert Milinsky, field vice president, Scott Votava and Robert Meyerhoff, district managers. • Bank of Bellevue Forms New Investments Department® Gary L. Parker, president of The Bank of Bellevue, recently announced the formation of a new investments department. The department was^| created with a three-fold purpose: tow manage commercial bank invest ments, to direct the investments of financial planning and trust clients, and to handle discount brokerage ac-^ tivities. U.S. CHECK BOOK COMPANY United States ^heck Book Company Looks Forward to Seeing You M ay 2-4 During The Nebraska Bankers Association Annual Convention United States Check Book Company 1201 SOUTH 16TH STREET ■ OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800*228-9246 Digitized N o for r th wFRASER e s te r n B a n k e r, A p ril, 19 8 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M .J. WALTS R.R. SANDERS Michael J. Walts was named senior vice president and chief finan- ^ cial officer to head the department. Previously vice president in charge of financial planning and trust de partment activities, Mr. Walts has been with the Affiliated M idw est^ Bancs group since 1981. Rick R. Sanders was named to succeed Mr. Walts as vice president in charge of the banking group’s financial planning and trust depart- £ ment. 75 Our experience assures quick response to your investment needs. Years of experience in investment services have helped Dwaine Stinger and Roma Kroll develop a special sensitivity to your needs. Count on them for fast action in handling Fed Funds transactions, money transfers, security purchases and sales. Our investment specialists would also be happy to provide a review and analysis of your current portfolio — to help you take advantage of changing economic trends. FIRST NATIONAL OTTTRS A WTALTH OT CORRTSPONDTNT STRVICTS. Gary Stevenson Vice President Correspondent Banking 712 - 277-0618 AG SERVICES DATA PROCESSING Our agricultural specialists can assist you with cash flow planning and analysis, com modity price trends, overline assistance and much more. We can put you on-line to the Banks of Iowa computers, the area’s most successful EFT/ Instant Access processor. First National Bank stands ready to place its total resources at your disposal. Just contact Gary Stevenson for assistance with any of the following: LOANS ITEM CLEARANCE Merchant and consumer services for both MasterCard and Visa. A fast, accurate, efficient system that assures maximum funds availability. Overline, liquidity and bank stock loans, commercial loans and more. CREDIT CARD SERVICES MICROCOMPUTER ANALYSIS We can provide guidance on equipment needs, technology and programming. Remember, when you need help with any of these services and more, First National Bank is only a phone call away. TRUST CONSULTING Our Trust department is ready to help you with any and all client needs. See you at the Nebraska Bankers Association Convention! First National Bank S MEMBER FDIC * 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis , N o r th w e s te r n B a n k e r A p ril, 19 84 76 sociated with Chiles, Heider & C o .^ Inc. until August of 1983 when the firm was acquired by Shearson/ American Express. Mr. Ferrarini was appointed vice president in 1982. ^ Mr. Narmi has been in the securi ties industry for 12 years as a finan cial consultant. He had also been as sociated with Chiles, Heider & Co., Inc. until the firm was acquired by® Shearson/American Express. He was appointed vice president in 1982. * * * Omaha Dale Marples has been appointed second vice president and manager of Omaha Na tion a l B a n k ’ s Empire Park of fice at 108th and M Streets. Mr. Marples formerly was se nior vice presi dent and cashier of the Peoples State Bank in D. MARPLES Claremore, Okla. A native of Wymore, Neb., and a graduate of the University of Ne braska in Lincoln, Mr. Marples is a former national bank examiner and was senior vice president of the Omaha State Bank prior to moving to Oklahoma in 1980. John Cochran, president and CEO of Norwest Bank Omaha, N.A., has announced the p r o m o t io n o f three people in addition to an o rg a n iz a tio n a l change at Nor west Bank. As of first of the year, Mr. C o ch ra n an n ou n ce d th a t Norwest Infor- J . HOFFMAN M. HANSON Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mation Services was incorporated into the bank. He stated that this is part of the bank’s continuing effort to streamline the operation and dayto-day management of the bank. Promoted to vice president, oper ations group manager, is Terry Heig. Mr. Heig started at Norwest Computer Services in Rochester, Minn., in 1968. In 1977 he became district manager of Norwest Infor mation Services, Inc. in Omaha and in 1980 was appointed director. Jack Hoffman was promoted to second vice president/manager of the data processing services. He joined the bank in 1970. Michael Hanson was promoted to second vice president/operations manager. He began working for Nor west Information Services in 1974. Kenneth W. Ferrarini and Jon L. Narmi have been named to the Chairman’s Council of Shear son/ American Express, Inc. The Chair man’s Council is comprised of the top 10% of Shearson’s domestic sales force. Mr. Ferrarini and Mr. Narmi are associated with the firm’s Omaha investment center at 1300 Woodmen Tower. Mr. Ferrarini has been in the se curities industry for 11 years as a fi nancial consultant. He had been as- K.W. FERRARINI J.L . NARMI Norwest Bank Omaha South,^ N.A., recently announced the elec tion of Margie J. Bowen and James E. Stewart as vice presidents in the commercial business division and John J. Krajicek as vice president.^ In addition, Dennis L. Ochsner has joined the staff as agricultural loan officer. J .J . KRAJICEK D.L. OCH SNER Ms. Bowen joined the bank in 1967 and has served in the commer cial lending area since 1976. _ Mr. Stewart, who started in 1971 ® in the operations area, has served the last six years in the commercial lending area. Mr. Krajicek has been assistant^ vice president and assistant man ager of the persoanl banking area since 1978. Mr. Ochsner previously was with Federal Land Banks of Columbus £ and Omaha and managed the ag de partment of an Iowa bank. * * * The Community Bank of Nebras- ® ka, Omaha, recently opened a second 77 Jim Flodine Fred Kuehl Gerry Tomka Tom Jensen THE ANSW ER MEN CORRESPONDENT banking can be confusing, frustrating, time-consuming. Not so at First National Bank of Omaha. Just call to get the answers from one of our six experienced correspondent bankers. Six men with the very latest financial technology at their fingertips dispensing profession al, dependable, confidential service. So call us for the answers to your correspondent banking questions — on electronic data processing, cash letter processing, overlines, f ir & V fed-fund transactions and more. lliOl I In Nebraska, call 1-800-642-9907. Outside Nebraska, call 1-800-228-9533. You'll get the answers from us, the answer men. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lU IIU i IU I La JI llx of omaha Member FDIC , , N o r th w e s te r n B a n k e r A p r il 19 84 78 N eb raska N ew s Kirkpatrick, Pettis, Smith, Polianlnc. offers Comprehensive Service to meet your financial needs. Corporate Finance Aid in acquisitions and arranging equity and debt financings. Valuation of closelyheld corporations. Municipal Finance Underwriting and distribution of taxexempt bond issues — local and national. Financial consulting service to issuers. Secondary Market Trading General obligation, revenue and dollar bonds. facility at 114th & D avenport^ Street, according to Leon E. Evans, Jr., president. The new facility will have 4,500 square feet and is larger than the facility at 5180 Ames Avenue. q * * * W. Robert Brungard, president and chief executive officer of Bergan Mercy, Inc., of Omaha, has been elected to the board of American Na tional Bank. One Promoted in Kearney Kim Holmes has been namedi motor bank manager of Kearney State Bank and Trust Company’s drive-in facility at 24th and A Avenue. Miss Holmes, who joined the bank in 1979 as a teller, book keeper and proof operator, su c ce e d s S h aron K- H0LMES Nelson, who managed the motor bank since it’s opening in 1980. I Grand Island Bank Celebrates 50th Year Overland National Bank, Grand* Island, recently celebrated 50 years of service with a week-long open house at the main bank and drive-in locations. The bank also hosted re ceptions for its original 1934* customers and the Overland Classic members. Drawings were held for $50 sav ings accounts and vintage photo-, graphy was displayed in the lobby. Promoted in Fremont Kirkpatrick, Pettis, éT \ Smith, Potion Inc. »L/ Investment Bankers A Mutual of Omaha Gompanp 1623 Farnam Street, Suite 700, Omaha, Nebraska 68102,402/449-1400 301 South 13th Street, Suite 300, Lincoln, Nebraska 68508,402/475-5602 Digitized N o rfor th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At the annual meeting of F irst^ National Bank & Trust Company o fw Fremont, Dennis L. Ball was pro moted to vice p resid en t and agricultural rep resentative. Mr. Ball moved to Fremont from McCook Nation al Bank where he was a ssista n t vice president and agricultural representative. He has been a member of First Nation-0 al’s staff for three years. N e b raska N ew s 79 ^COMMUNICATIONS CONF____ (Continued from page 42) Two sessions deal with customer com m unications. M arilyn Mac^Gruder Barnewall, president, The ^MacGruder Agency, Aurora, Colo., will speak on segmenting the market for customer communications and will suggest different approaches to ^ b e used in communicating with dif ferent customer segments. Barbara Stoldt, account executive, Leo Bur nett Company, USA, Chicago, and Allan F. Paro, director, advertising ^and marketing services, ABA, will discuss the results of a study under taken by the Burnett agency for A B A on the changing nature of the financial services customer. 0 Media relations will be the sub ject of a session featuring Laura Gross, a veteran correspondent with the American Banker daily news paper, and Virgil Scudder, president ^ o f Media-Comm, New York. Mr. Scudder’s firm specializes in train ing corporate executives to max imize their effectiveness when being interviewed by television and radio •reporters. Employee communications will be featured in a session, “ Employees Can’t Sell What They Don’t Under stand or Believe In,” conducted by •Jerry Turk, president of Jerry Turk & Associates, Baton Rouge, La. A special session dealing with the communications problems faced by community banks will be led by •E llen Wood, senior vice president, First National Bank of West Jersey, Flemington, N.J. The conference will conclude with an assessment of the future environ•m ent for financial services by Hank Koehn, vice president, Futures Re search Division, Security Pacific Bank, Los Angeles. ^ Conference chairman is John Pop^ovich, vice president and manager of consumer affairs at First Interstate Bank. The conference is a presentation ^ o f the Public Relations Council of BMA, headed by Fraser Seitel, vice president and director of public af fairs, Chase Manhattan Bank, NA, New York. ^ Complete conference information is available from Charles E. Bartling, vice president and director, In formation and Education Services Division, BM A, 309 West Washing ton Street, Chicago, IL 60606. Telephone: 312/782-1442. □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W e’re not just fair weather funds. Bill Manring Vice President Bob Holt Assistant Vice President Jeff Harrison Vice President Mark Thompson A g Representative No matter what # the economic climate, you can count on us for ag loans. We know your customers’ financial needs aren’t always determined by the economy. And at First National, we don’t think ag loans should be either. That’s why we often make crop loans when grain prices are poor... or livestock loans when the livestock market is down. Because your farmer customers don’t need loans just in the good times. At First National, we have the resources you need to help you make ag loans when they’re needed. In 1983, we loaned millions of dollars to farmers. It’s all part of our continu ing commitment to agriculture. First National. You r % Rrst National Bank can count on us. Anytime. ^ P0 Box 147_st Joseph M0 64502 (816) 279-2721 Member FDIC A ffilia te o f First Midwest Bancorp., Inc. N o r th w e s te r n B a n k e r, A p ril, 19 84 80 N eb raska N ew s Banks with good management will be the winners” A N o r t h w e ste r n B a n k e r interview with DON G. JOHNSON, President Nebraska Bankers Association President, Farmers National Bank Pilger, Nebr. £ £ T HIS has really been an interI esting year, ’ ’ was the enthusi astic response of Don G. Johnson as he discussed his 1983-84 term as president of the Nebraska Bankers Association—a term that will con clude when he gavels to a close the final activity of the NBA convention in Lincoln on May 4. Reflecting on the action-packed months since he became president at the 1983 convention in Omaha last May, Mr. Johnson added, “ It was even a far busier year than I ever en visioned. It took a greater commit ment than I anticipated. With all the banking changes, the legislative issues, the Commonwealth Savings disaster, the farm problem, it was really a busy, interesting year.” Speaking of the vantage point gained by serving as a state associa tion president, Mr. Johnson stated that “ as an individual, a banker pro bably could not experience what this job makes possible. You get all of the picture that can be obtained in this unique position. The exposure to bankers throughout the state, the talent drawn from our own NBA staff is all most heartening. I ’m real ly impressed, not only with the coop eration of all these people but with the unselfishness of all of them. “ I ’d also like our members to know that this cooperation came from all sizes of banks, the very big gest as well as the very smallest, and it was outstanding. I think our committee participation in the NBA, for example, has to be one of the best in the nation.” Committee Activities When he got started talking about the committee people and their Digitized N ofor r th wFRASER e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis work, Mr. Johnson, like each of his NBA president predecessors, be came even more enthusiastic. “ We have eight standing committees,” he explained, “ and we start them off with a retreat-like conference for several days. We go over their goals, objectives, the directions they should be taking. When they leave that conference setting, they land on their feet running and ready to go. There are representatives of all NBA groups on each committee and their dedication in putting on the many seminars, meetings, educa tional programs and other NBA pro grams is fantastic.” Those eight committees are struc tured in a similar fashion to what can be found in most banks—agri culture, bank management, educa tion, government relations, loans and investments, marketing, per sonnel, and planning. Each of the eight committees has subcommit tees that involve further numbers of rep resen ta tiv es from m em ber banks. The planning committee, Mr. Johnson recalls, originated a halfdozen years ago. “ It changes with the long-range plan of the associa tion,” he notes, “ and is updated an nually. The planning committee meets three to four times a year, set ting short-range goals and monitor ing progress of the long-term goals. This committee sets out the goals and objectives for NBA, and assigns them to standing committees and the staff for implementation. “ This year, we’re going to have each committee review what they did. We want them to analyze what went on, determine if they met their goals and how; if they didn’t —why, and should we drop certain items from that committee agenda. This way we can eliminate those things that are completed or that are found to be impractical. The association, in this way, is a sounding board for bankers throughout the state and re flects the thinking and wishes of a ll^ This helps especially with legislative work. We ask them, ‘What do you want your association to be?’ This committee process and planning makes the NBA a member-oriented^ member-driven association.” Legislative Activity In assessing the principal thrusts of NBA, Mr. Johnson stated, “ Omw legislative committee is highly im portant-legislation is the Number One priority of our association. Bill Brandt, our general counsel, works full-time for us as our le g isla tiv e contact. Ron Sedlacek is his new as sistant, not only in his law firm, but as a legislative consultant with us. In a short legislative session like this one we’re seeing an e n o rm o u s number of things, and so many of great consequence. Some legislation doesn’t affect bankers directly, but has tremendous secondary conse quences. n “ Affecting so much of the legisla tion this session was the failure late last year of Commonwealth Savings Company of Lincoln. This was an in dustrial bank, not a commercial# bank, but we’re having a ‘Bert Lance type’ of fallout from it. The “ This com m ittee* process and planning makes the NBA a member-driven, * member-oriented association.” result has been a number of bills, many of which directly affected banks, and in great measure repre sented over-reaction to that sad, un-^ fortunate event.” (One bill, for ex ample, early in the legislative ses sion, would have imposed a proportinate assessment against every com mercial bank in the state to full re-# imburse Commonwealth depositors, since their own insurance fund was fairly new and woefully under the total needed. The bill was killed.) Mr. Johnson referred also to a se-# ries of bills tabbed “ squealer” bills that would have required bankers, their employees and/or banking de partment staff to report to local and state authorities anything su s-# pected of being against any law, N e b ra s k a N ew s ^ v e n though minor or done inadver te n tly . “ There’s been a lot of horse trading on bills, and there has been a most diverse array of bills,’ ’ Mr. Johnson pointed out. q Repeating the significance of de velopments in the past months to the bankers in Nebraska, Mr. John son noted that Governor Robert Kerrey had to be more involved in leg isla tiv e issues this year, a new di rector of banking was appointed in the fall-out of Commonwealth, and Nebraska’s Attorney General was impeached last month and is sched u l e d to go before the Nebraska Su preme Court this month on that charge. “ Even though banks were not di rectly involved because Common w e a lt h was an industrial bank,’’ Mr. Johnson said, “ the NBA offered as sistance of its more experienced members from major Omaha and Lincoln banks, and that expertise •was utilized in evaluating real estate involved in the failure. Also, the legislature killed the bill for recipro cal regional banking in contiguous states, but in all likelihood this is an •issue that will keep coming back.” When asked about results of the bill passed by the Nebraska legisla ture a year ago enabling formation of holding companies in Nebraska, •M r. Johnson said,“ That bill was heavily lobbied over the years. Pro ponents said it was great; opponents said it was a terrible thing. Neither side so far has proven to be right. •There has been far less activity than was anticipated. The most impor tant result so far, of course, is the Omaha National—First National of Lincoln joining together as First ®Tier holding company. New Headquarters “ One of the really exciting things at N BA this past year was moving ®into our new headquarters building at 525 South 13th Street,” Mr. Johnson stated. “ It nearly doubles our available space from the old ^Stuart Building. We now have 7,587 w square feet on the two main floors of the building, plus another 2,304 square feet of basement space we’re presently not using. ^ “ The landlord, Farmers Mutual Insurance Company of Nebraska, spent $220,000 remodeling the quar ters for us. It’s an ideal location just two blocks south of the financial dis t r i c t and two blocks west of the state capital. We will have open https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis houses at convenient times during the convention in May so members can see their new headquarters. We think they’ll be pleased with the in creased efficiency. Everyone now has room to work. We have confer ence rooms and a library for bank publications as well as law books. “ W e’re especially proud of the fact that all this was accomplished with no increase or restructuring of dues.” “ Twenty one years ago I was told there was really no future for small banks within 10 years!” Member Participation Referring back again to the suc cess of N B A ’s committee structure, Mr. Johnson pointed out that a year ago it was determined that more than 3,000 Nebraska bank officers and staff members had participated in 37 conferences, seminars and training programs. “ More than 1,000 attended our legislative dinners, group meetings and area bankers dinners held the night before execu tive council dinners,” Mr. Johnson pointed out. “ These events give member banks an opportunity to have input to our executive council. Again, this is part of the memberdriven concept.” Young Bankers “ The accelerating rate of change is faster and the changes today are bigger than ever and more vital, ” he continued, “ because they immedi ately impact so many of our younger bankers. These young people are better trained, and are more inter ested in NBA educational programs, such as the NBA Video Training plan, than ever before. They have more technical training when they come into our bank staffs today, due to the continuous updating of university business training pro grams. They’re already familiar with computers, budgets, cash flow analysis and other areas so impor tant to banking, and they continue to upgrade their education by taking advantage of NBA programs.” Mr. Johnson has seen this pace of 81 banking and educational change in crease since he began his banking ca reer July 1, 1962, in a Marshalltown, la., bank. A native of Albion, Nebr., he was graduated from the Univer sity of Nebraska A g College in 1954, then served as a pilot in the U.S. Air Force three years. He joined Dekalb Agriculture Association after that, working out of Marshalltown five years before joining the bank. In 1962 he moved back to Nebraska to assume his present position as presi dent of Farmers National in Pilger. Challenging Career “ There have been a lot of changes in banking in the past 20 years,” Mr. Johnson recalls, “ and we’ll see more in the future. The regulators have deregulated the liability side, and they need to deregulate the as set side. So, it can be an exciting, challenging career for young people.” Farm Workouts The difficult task at hand for all midwestern bankers is trying to sus tain their farm customers through a most difficult period of recession. “ We all know that the percentage of classified ag loans is increasing,” Mr. Johnson stressed, “ but we also know that the largest number of farmers are not leveraged and are finding ways to survive and make some profit. Those who expanded at the high point in land and equip ment prices, and got stuck with high interest rates, are in trouble. As bankers, we have worked several years with farm customers like this and will do so just as long as there is hope for them to pull through. It’s important to note that most banks are handling this situation very well.” Hope for Future “ Twenty one years ago,” Mr. Johnson recalled, “ I was told there was really no future for small banks within 10 years. We were at $1.8 mil lion in assets in 1962 and now we’re at $16 milliion! There’s still going to be a place for banks of all sizes. W e’ll all have to provide more ser vices to our customers, especially in small towns like Pilger (pop. 470), where the number of people is li mited. The number of people won’t grow, so we need to offer more ser vices. Management will be the key. If a bank has poor management, then it is a potential loser. If it has and keeps good managemnt, it will be a winner!” □ N o r th w e s te r n B a n k e r, A p ril, 19 84 82 N eb raska N ew s Student board— unique experience • for Nebraska youth # PICTURED at a student board meeting are, from left going clock wise, board advisors Carolyn Menke, cust. relations and mktg. coord., and Larry Wangrud, pres., Kearney State Bank; Mark Nispel; Mike Weber, vice chairman of the board; Kalin Liveringhouse; Scott Daake; Becky Hausmann; Kris Aistrope, board secretary; Shaun O’Rouke; and Lauri Carlin, chairwoman of the board. EARNEY State Bank and Trust Company of Kearney, Nebraska, serves the youth in its com munity with a unique learning experience—A Student Board of Directors. Now in its fourth year, the student board has been a growing experience for local youth. The board represents eight students from the city’s two schools, Kearney High School and Kearney Catho lic School, and includes four juniors and four seniors, selected by their respective schools based on scholastic achievement and interest to serve on the board. They serve from September through December and from January-April, thus changing each semester to give more students an opportunity to share in this special capacity. The students elect their chairperson of the board as well as a vice-chairperson and a secretary, and each student receives a framed certificate from the bank at the close of their term. Larry Wangrud, president of the bank, who initiated the program said, “ the bank provides the students with an exposure to banking that is not normally granted youth. They are offered a first hand learning experience in bank marketing and a general introduc tion to the bank’s operation. In turn, the bank seeks the students’ opinions regarding promotions, public relations projects and banking policies. For their ser vices on the board, the students are paid a fee for each monthly meeting they attend.’ ’ The students have endorsed community projects, in cluding a program promoted by the Nebraska Bankers Association call PEP—Personal Economics Program designed to give students an opportunity to be better educated consumers and managers of their personal fi nances. Through PEP, representatives from the local bank visit the classroom to demonstrate how to handle everyday personal economic matters. The group also spearheaded a local contest that en abled students to participate in a two-part scholarship and cash award competition by entering a local and na K Digitized FRASER N ofor r th w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tional essay contest with a single paper. It was part of a program initiated by the nation’s independent banks to increase public awareness of locally-owned bank’s^ contributions to the community. The local bank of fered cash awards and all entries were forwarded to the national contest. The board also views banking in other aspects. At an intro meeting they tour the bank and view the total^ banking day and particularly the operations depart ment. At meetings they also learn about credit, as well as the confidentiality and security of the bank. They review the income and expenses of the bank relative to a business operation and work strongly with the’ bank’s customer relations programs. “ Applying for a loan is a special project,’’ according to Mr. Wangrud, who also serves as advisor to the board along with Carolyn Menke, customer relations and marketing co ordinator for the bank. “ The board members actually shop for a car and then complete a mock loan application with an officer of the bank, complete with job earnings and a down payment. This first hand experience has been one of the most well received of the board projects,” Mr. Wangrud concluded. When Laurie Carlin, immediate past chairwoman, was asked what she thought of her experience on the board she commented, “ Serving on the student board of directors has helped me understand a lot about banking. Most high school students don’t know enough about the financial industry. I feel that the board taught me many things about leadership as well as banking. It was an interesting and worthwhile ex perience.” Mike Weber, immediate past vice-chairman of the board commented, “ from serving on the board of direc tors I learned that a bank is more than just a brick building. It is an organization of friendly people trying to satisfy the needs of their customers.” □ 83 N eb ra s k a N ew s C O N FER E N CE speakers Dr. Vincent Malanga, pres., LaSalle Economics, Inc., New York, N.Y., and Ray Worseck, v.p., A.G. Edwards and Sons, St. Louis, Mo., visit with First National President Phil Giltner and Don Ostrand, v.p. RIGHT— Lee Jacobsen, v.p., Geno Natl. Bk., .Genoa, Neb., visits with First National Correspondent Banking Officers Jim Flodine, Tom Jensen and Gerry Tomka. 1st Natl. Omaha Chuck Wagon •Chuck Wagon Draws Record Crowd By STEVE BURCH Associate Publisher IRST National Bank of Omaha ■ Vice President and Correspon dent Banking Head Don Ostrand welcomed a record number of agri bankers and their guests to the 18th ^Annual Chuck Wagon Conference held in Omaha last month. Compli menting the bankers, ranchers and producers on their joint efforts for improving farm management prac t i c e s , Mr. Ostrand noted that the conference speakers would focus on the “ big picture” of agriculture. Dr. Vincent Malanga, president of the New York based consulting firm, ^LaSalle Economics, Inc., offered a very optimistic forecast for the ag economy. Noting that historically the ag economy lags the general eco nomy in times of recovery, he preedicts that the current recovery will continue to strengthen thru 1983. The general economic recovery which began in late 1982, was sparked by the second round of federal in com e tax cuts, a decline in normal interest rates and a favorable fed monetary policy. Mr. Malanga sug gests that consumer confidence in ^the “ reality” of the recovery is reflected in the automobile and housing industry booms. Another contributing indicator to the conti nuing recovery is the rapid decline in ^the unemployment rate during the past 15 months. Mr. Malanga cautioned that severe pressures still exist which could slow the recovery or bring it to a >halt. The most serious of these pres sures is the federal budget deficit. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis When asked how the deficit has grown, he responded: “ The federal government is spending a hell of a lot more than they are taking in.” Government spending has slowed recently and the problem is well re cognized by the Congress. He sug gests that a congressional reduction package is expected soon which will include spending cuts and tax in creases. A second pressure is the in ternational debt crisis which he sees as being tolerable and less signifi cant, even though some countries may renege on their debts. In closing he predicted that land prices have bottomed out and in fact will soon show some increases. Also he feels that farm incomes will re main high and forecasted improve ments in the farm debt/asset ratios. Jim Wisemeyer, Washington edi tor for Professional Farmers of America, echoed Mr. Malanga’s pos itive forecast for the ag economy. He agrees that the budget deficit is the greatest factor holding back an im mediate recovery in the ag economy and shares the opinion that congress will respond to the problem prior to the presidential election. He addres sed the 1985 Farm Bill which he ex pects to be a major overhaul and very favorable to the long range economy. Leading the expected changes will be the issues of ex panded export market development, increased soil conservation with em phasis on the long term idling of fragile acres, an increased allocation of funding for ag export credit pro grams and most significantly, provi sions for loan rates to be based on market prices. Former Secretary of Agriculture Dr. Earl Butz was the featured speaker and he wasted no time in lashing out at the news media for its coverage on isolated farm foreclo sures. “ According to these news guys, you would think that agricul ture is about to go down the tubes.” He added that this “ hysteria” has a negative effect on future loan costs. He went on to challenge the ag in dustry to respond with corrective action and to “ . . . get the facts out!” Mr. Butz feels that as long as profit remains an incentive in agriculture, the future will remain bright and he closed by reminding the bankers that agriculture is still the most capital intensive industry in Nebras ka, requiring over three quarters of a million dollars per farm worker. □ New Branch Approved For Kearney Bank First National Bank and Trust Co. of Kearney recently received ap proval from the Comptroller of the Currency to locate a branch at Se cond Avenue and 48th Street in Kearney. The new full-service branch will be located at the new Hilltop Shop ping Mall and feature three lanes of drive-up, night depository and a 24-hour ATM. Ground breaking is anticipated for spring with completion by late summer. This is First National’s third full-service branch. North Platte Elects One Dean Kugler, senior vice presi dent of American Security Bank, North Platte, was recently elected to the bank’s board of directors. , N o r th w e s te r n B a n k e r A p ril, 1984 84 First National Lincoln President William C. Smith has announced that R. Mark Hahn and Marvin Hefti have been appointed assistant vice presidents in the correspondent banking division. R.M. HAHN M. HEFTI Mr. Hahn joined First National Lincoln in 1980. He is a native of Auburn and attended the University of Nebraska-Lincoln and Peru State College. A native of Alliance, Mr. Hefti is a graduate of Washburn University and began his First National career in 1976. He is a member of the Robert Morris A ssociates and American Institute of Banking. In the auditing division, Louise S. Sullivan has been appointed assis tant vice president/financial & ope rations auditor. A graduate of Cor nell University, Mrs. Sullivan joined First National Lincoln in 1976. She recently earned the Chartered Bank Auditor designation from the Bank Administration Institute. Alliance Chairman Named Robert E. Knight was recently named chairman of the Alliance Na tional Bank and Trust Company, Alliance. Mr. Knight becomes the fourth chairman in the 96 year his Call Steve Sutton For Complete Credit Insurance Service . . . It* Call Toll Free in Nebraska 800-742-7335 or call collect 402-475-4061 Steve W. Sutton Bank Programs for Group*lndividual Life»Accident & Sickness L IN C O L N ^¿/LIFE W here B E N E F IT is m ore than a m id d le n a m e L in c o ln , N e b r a s k a 6 8 5 0 8 DigitizedN ofor FRASER r th w e s te r n B a n k e r A p r il 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis , , Vice President tory of the institution, succeedin g his father, the late Edward M. Knight. Mr. Knight adds the duties of chairman to those of president and chief executive officer, which he assumed in 1979 following a caree# with the Federal Reserve Bank o f Kansas City. In other appointments and pro motions, Vice-President Richard E. Henderson, Jr., was elected to t h # board of directors. Mr. Henderson joined the bank in 1979 with pri mary responsibility for the agricul tural loan portfolio. Vice-President Richard E. Bilstein, who joined t h # bank in 1980, was designated as supervisor of lending functions. He holds a diploma from the Colorado Graduate School of Banking. John S. McGhehey was n a m e# cashier. He joined the bank in 1980 and was designated assistant cash ier in 1982. Joining the official staff as assistant cashier, Anita Hatch was promoted following a year a # head teller. Matthew J. Foreman was named data processing officer and heads the institution’s in-house computer installation. The trust department announced^ the addition of Mark L. Andersen as trust officer. Mr. Andersen recently joined the bank after holding trust positions at banks in Fremont, Neb., and Mason City, Iowa. ® Millard Bank Receives Preliminary Approval A group of Omaha investors has^ received approval from the Federal Comptroller of the Currency to open a new national bank in Millard. The new bank, to be known as First Con-^ tinental National Bank, will be lo cated at 138th and S Plaza near the Millard Plaza shopping center. Cheron Beran, president of the proposed bank, is former president^ of the Ashland State Bank. Omaha businessman Harold Cooperman, owner of the No Frills Supermarkets and a real estate developer, will serve as chairman. # The bank, which must pass two other federal review steps before it can open sometime this spring or summer, will use temporary quar ters until a three-story, 30,0000 square foot permanent building is completed. The bank will employ seven people and start with $2 million in capital. Majority owner ship will be by First Continental# Financial Inc., 85 The Experienced Professionals of First National Lincoln. Ready to meet your investment needs. Put your trust in the Municipal and Government Bond specialists of The First Team. Fast. Knowledgeable. Experienced. First National Lincoln — Nebraska’s most active dealer bank. The F irs t Team. FIRST NATIONAL LINCOLN 13th & M Streets • P.O. Box 81008 Lincoln, NE 68501 • Phone (800) 742-7376 Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 86 Export-Im port Experts T h ere's a n e w I o w a t e a m to h e lp y o u h e lp y o u r c u s to m e r s d o b u s i n ess o v e r s e a s . T h e I o w a E x p o r t-Im p o r t T r a d in g C o m p a n y assists I o w a c o m p a n i e s in m a r k e tin g , s h ip p in g o r p r o c u r in g th e ir p r o d u c ts o u ts id e th e U.S. B a n k e r s Trust p r o v id e s a full r a n g e o f in te r n a tio n a l The New The New b a n k i n g s e r v ic e s to fa c ilita te th e fin a n c ia l a n d d o c u m e n ta r y " bb a s p e c ts o f d o i n g b u siC o m eC ro w n ess o v e r s e a s . W ith u s N o w this I o w a t e a m is w o r k in g t o g e th e r to h e l p i n c r e a s e Io w a 's s h a r e o f g l o b a l m a r k e ts . W e h a v e th e e x p e r i e n c e a n d r e s o u r c e s to p r o v id e a c o m p l e t e p a c k a g e of in te r n a tio n a l t r a d in g a s s is ta n c e . If y o u h a v e a c u s to m e r d o i n g b u sin e s s in fo r e ig n m a r k e ts n o w a Team Iowa Bankers «»T ru s t M Q t Member FDIC o r w is h in g to d o so, c o n t a c t B a n k e r s Trust's In te r n a tio n a l D iv i sion. T o g e th e r , w e 'll t a k e o n th e w o r ld ... O n d W in ! (515) 245-5288 IOWA EXPORT-IMPORT TRADING COMPANY (515) 245-2464 Digitized FRASER N ofor r th w e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 Fifth Annual C EO Conf. — April 24-25 N EXCITIN G agenda has been planned for the Iowa Bankers Association fifth annual CEO Con ference to be held April 24-25 at the Airport Hilton in Des Moines. “ De cisions—’84 and Beyond” is the ^ h em e for this year’s conference which will begin with a general ses sion for all participants the first morning. Following the general ses sion will be two half-day sessions C onsisting of three concurrent work shops. Agenda for the conference follows: Tuesday, April 24 #A.M . 8:30 9:00 # 9:30 # •l0:30 11:15 ® P.M. 12:00 m 1:30 411 Jlk Registration. Welcome by Gary Cassabaum , CEO C onference Committee chairman and president and trust officer of Taintor Savings Bank, New Sharon. Jam es B ola n d , d ep u ty comptroller for Industry and Public Affairs will speak on current legislation and in dustry actions of concern to the Office of the Comptroller and bankers. “ Think Client — Not Custo mer,” Robert Dye of Finan cial Shares, Chicago. “ Choosing Your Data Pro cessing System,” Art Gillis, Computer Based Solutions, Inc., Atlanta, Ga. Luncheon. Speaker—Tom Huston, De partment of Banking, update on Iowa banks. Workshops, select one. • “ Choosing the Appropriate Data Processing Method for Your Bank” Art Gillis, consultant with Computer Based Solutions, Inc. of Atlanta, Ga.; Brian Scott, BICS; and a panel of bankers who have gone https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5:00 A.M. 8:30 9:00 through the decision-making process of choosing between an in-house system and con tracting with a data process ing center will present a workshop to assist other bankers in making this deci sion. • “ New Management Sys tems” Dr. Roy Park, Applied Man agement Inc., Ankeny; Mil lie Uding, vice president, IBIS; and Linda RobinsonGay, human resource mana ger, IBA. This workshop focuses on human resource management and methods to reward staff. Ideas will be given on promoting wellness and health benefits will be discussed. • “ New Services — How to Introduce a New or Revised Service to Your Market” Bob Dye, Financial Shares, Inc., Chicago. The workshop will focus on how to evaluate what services are important and needed for the small to medium-sized bank. Reception. Wednesday, April 25 Continental breakfast. Workshops, select one. • “ Bankruptcy” Tom Flynn, partner with Wimer, Hudson, Flynn & Neugent law firm, Des Moines. The workshop will include information on loan documentation, actual case studies, and creditor offense. • “ New Management Sys tems” — repeat from Tues day. • “ Creative Ideas for OneBank Holding Companies, Investments for Tax Bene fits for Your Bank, and Bank Mergers — Decisions of the 80s” Randy Hamilton and Les Heimsoth, Peat Marwick & Mitchell, Des Moines. The focus for this workshop will be decisions and ideas that are of vital concern to bank ers today. Carroll President Honored Joe Gronstal, chairman of Carroll County State Bank, was presented the Carroll Cham ber of Commerce community ser vice award at the Chamber’s annu al dinner meet ing held in Feb ruary. Mr. Gronstal, a former presi dent of the ____ Chamber, was J R GR0NSTAL honored for his countless hours of volunteer work to the civic, busi ness, educational, health, religious and cultural segments of the com munity. Added to Jesup Staff Farmers State Bank, Jesup has announced the addition of Fred Thoms as senior vice president and ag representative. Mr. Thoms for merly was with Clinton National Bank. 1984 Iowa Group Meetings Group 6 8 7 4 5 2 12 3 Date May 7 May 8 May 9 May 10 May 14 May 22 May 23 May 24 Location Des Moines Iowa City Waterloo Dubuque Council Bluffs Fort Dodge Okoboji Clear Lake N o r th w e s te r n B a n k e r, A p ril, 1984 88 Io w a N ew s NABW ‘84 Iowa State Conf. ■May 16-18 O FIRST CLASS and cruise your way to “ The Professional Edge” at the 1984 Iowa State Con ference of the National Association of Bank Women, scheduled for May 16-18 at the Midway Motor Lodge, Dubuque. “ Cruise Director” Patricia M. Latimer, second vice president of American Trust & Savings Bank, Dubuque, is this year’s state confe rence chairman. “ Captain” Nadine Frakes, region al director of N ABW and vice presi dent, Farmers Bank, Nebraska City, Neb., will conduct a training work shop for the state council executive committee on May 15, and a group chairman training session on the 16th. “ First M ate” Kay Stotterau, Iowa State council chairman and as sistant vice president at Norwest Bank, Sioux City, will conduct the state council meeting on May 16. The program schedule follows: G his presentation, “ Legislation and Banking.” Donna Bauerly, professor of English at Loras College, will con clude the morning with “ Playing the ‘Edge’—Women on the Way Up.” After a noon luncheon, group re ports and awards will be presented. □ Three Directors Elected At Davenport Bank and Trust Davenport Bank and Trust Com pany recently announced the elec tion of three new directors at its annual s t o c k holders meeting held in Febru ary. Elected to the board w ere: Thomas A. Gildehaus, execu tive vice presi- T A GILDEHAUS dent of Deere & Wednesday, May 16 Various training sessions for leaders will be conducted through out the day. Registration will begin in the afternoon. The evening will feature a Mississippi River Boat Ride, social hour and prime rib din ner. Thursday, May 17 The morning will begin with a continental breakfast followed by a workshop entitled, “ It’s Possible” — by Carole Harder, professional con sultant, Cedar Rapids. Noon luncheon speaker Sybil Lamb, a retired teacher, will present “ Woman of the ‘80s.” The afternoon will continue with two sessions; “ Regulation—Who are the Players” and “ Making Mergers Work—The Human Dimension” both conducted by Betty J. Wishard, of Betty Wishard and Associate, Inc., New Orleans. Social hour and a banquet spon sored by Dubuque County Bankers Association will fill the evening, with guest speaker Mary E. McBride, Janesville, Wis. Ms. McBride is a top writer for Phyllis Diller, Joan Rivers and a syndicated radio show. Friday, May 18 Following a buffet breakfast and NABW National Update, Neil Mil ner, executive vice president of the Iowa Bankers Association, will give Digitized N o for r th wFRASER e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R.G. LENERTZ R.V.P. WATERMAN Company; Robert G. Lenertz, senior vice president in charge of Daven port Bank’s loan division, and Robert V.P. Waterman, general partner in the Davenport law firm of Lane & Waterman. In his report to stockholders, V.O. Figge, chairman, reported net earn ings for 1983 of $11,892,000 com pared to $7,026,000 for 1982. The bank’s resources increased from $638,608,000 to $775,455,000 at year’s end. At the board meeting held after the annual stockholder’s meeting, it was decided to increase the bank’s annual dividend $2 a share. The bank will pay stockholders of record $6.75 a share on March 1st and a like amount on September list. Iowa City Promotions Told At First National Bank, Iowa Ci ty, several promotions were recently announced. Robert M. Sierk has been pro- moted to executive vice president. He also serves on the board. * Scott W. Boyden has been pro moted to second vice president, responsible for marketing. Helen M. Dailey has been pro-, moted to second vice president. She* previously was the auditor of the bank and is currently in charge of in ternal operations. Paula Kasper-Lundahl was named^ an officer of the bank and is the in ternal auditor. Promoted in Muscatine Promoted recently at First Na-4 tional Bank of Muscatine were: L.G. Sulzberger, vice president and con troller; Diana Stickrod, cashier; Judie L. Freers, corporate secretary, and Sandra Eichelberger, personnel/! marketing officer. Mr. Sulzberger has been with the bank for 23 years and has served in all areas of operations. Ms. Stickrod joined in 1974 and has served as! assistant cashier the last three years. Ms. Freers joined the bank in 1982 and had five years previous banking experience in Mississippi. Ms. Eichelberger graduated from! the University of Iowa in 1982 and started with FNB in March, 1983, as a trainee. Newly elected to the board were: Craig D. Drake, chairman and presi-^ dent of Ring King Visibles, Inc.; Theodore F. McKee, president of McKee Button Company, and Theo dore E. Zieman, plant manager of Monsanto Company. * E.W. Gene Youell Dies E.W. Gene Youell, Jr., 75, vice president, Manson State Bank, died* March 8 after an extended illness. Mr. Youell, who managed the Manson bank for many years, started in banking in 1946 after four years service in the U.S. Army. He w as1 with First National Bank at Tekamah, Neb., from 1946-1949, at which time he moved to Terrill and served at the State Bank of Spirit Lake. He joined the Manson bank in 1963, where he was still associated at the time of his death. Winterset Director Retires • A.D. Beeler, president of Union State Bank, Winteset, from 19641982 and a director since 1958, re cently retired from his position as a 0 director. Just this onc^e, w e ’re ^oinj^ to b lo w o u r o w n h o rn . W e’ve been selected as the R em o d elin g D e sig n e r of the Yc^ar by C o m m e rc ia l R e m o d e lin g m agazine. Mot just the best in Io w a . . . o r the M idw est. K irk C ro s s w a s selected the best in the n a tio n . We specialize in n e w c o n s tru ctio n and re m o d e lin g of Fina ncial Institutions. Contain us today and let us design a w in n e r fo r you. 4015 Alexandra D rive W aterloo, Io w a 50704 319-334-6041 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis More than ever before United Central Bank is committed to correspondent banking. This commitment means assisting you in manag ing a profitable and efficient community bank. Never before have the technical skills and expertise of your correspondent bank been so vital in helping you keep abreast of the many financial changes taking place. At UCB we have dedicated this level of expertise and talent from proven performers. These are the people of your Iowa Correspon dent Services Division. OF DES MOINES, N.A. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AFFILIATED WITH UNITED CENTRAL BANCSHARES. INC. MEMBER FDIC IOWA CORRESPONDENT I SERVICES Michael Austin Vice President and Manager Iowa Correspondent Services Division (515) 245-7251 Michael’s expertise includes twelve years of banking, eight of which were in Iowa, working with national accounts, financial institu tions, real estate, international banking, and corporate services. He has an extensive background in lending, operations, and cash management responsibilities a correspondent division manager requires. Michael’s knowledge of loan analysis, structuring and funding provides you with an excellent resource to questions you may have regarding your own bank’s commercial and correspon dent accounts. Kenneth Danilson Vice President Iowa Correspondent Services Jam es Eiler Senior Vice President and Senior Lending Officer Commercial Services (515) 245-7348 (515) 245-7100 Ken’s ag loan experience spans a period of nine years and includes heading a $15 million ag loan department in a rural Iowa bank. As a previous county supervisor and assistant county supervisor of the Farmer’s Home Administration for five years, Ken understands the concerns facing the agricultural and financial community. William Mullins Assistant Vice President Iowa Correspondent Services (515) 245-7157 Bill’s seven years experience as a bank examination analyst and bank examiner is valuable to all our correspondent bank customers. His expertise in credit analysis, banking laws and all bank examination procedures and reports makes him an outstanding addition to the UCB Iowa Correspondent Services Division. Jim ’s eight years in banking includes three years as president and chief executive officer of a rural Iowa bank. His experience includes all lending activities and management responsibilities associated with a strong agricultural bank. His background includes com mercial lending and correspondent responsibilities in Iowa and Nebraska while employed for 1st Bank of St. Paul. Margo Foxhoven Operations Assistant Iowa Correspondent Services Division (515) 245-7019 Margo’s experience includes ten years in support services for various UCB departments. Her knowledge of all bank areas and functions will assist you as a correspondent bank customer in receiving correct answers to your financial questions. Richard Hickman Vice President and Manager Investments Vernon Hoskinson Vice President and Manager Operations (515) 245-7029 (515) 245-7290 Rick’s ten years experience at United Central Bank in all investment areas provides you, the correspondent bank customer with a resource of knowledge in stocks, bonds, Fed funds, etc. and other service areas unique to UCB including the self-directed IRA program and the discount brokerage service available for corre spondents’ use in their banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Vern’s 26 years with bank operations includes 23 years experience in operations at the Federal Reserve. His background provides UCBs staff with the knowledge of data processing equipment, methods and handling necessary to effectively assist you in your correspon dent needs. His involvement in the accounting and check collection functions of the bank complements his operations background. 92 Io w a N ew s Correction Noted # National Bank & Trust Co. of Chariton, with deposits of $70,046 thousand and net loans of $30,289 thousand was omitted from the chart of largest banks in Iowa, featured i £ the March Northwestern Banker. The Chariton bank should have been listed as 58th on the chart. Sherri Parke Leaves • Iowa Bankers Association Sherri Parke, administrative assistant/corporate secretary for the Iow a Bankers Association, has accepted a posi PICTURED above are representatives from West Des Moines State Bank, Norwest Card tion as director Services and Telephone Pioneers. Standing (I to r) are: F. Alan Schultise, sr. v.p., mktg. and prod, dev., MasterCard International; K. David Elgena, sr. v.p. and gen mgr., Norwest Card of meetings with Services, and Robert K. Hammer, v.p., sales and mktg., Norwest Card Services. Seated are: The Institute for Steve Brom, asst. nati, pioneer coord., Telephone Pioneers of America; Gib R. Eggen, v.p., Certified Finan Northwestern Bell, Region 3, and Michele Gregory, West Bank. cial Planners in D enver, C olo. The In stitu te p ro v id e s c o n tinuing education for certified financial planners after EST DES Moines State Bank available in virtually every city in they graduate from the College of in conjunction with Norwest which the Torch Run travels. Certified Financial Planning. Card Services, Inc. will be providing The relay is being developed by Ms. Parke started her association MasterCard services to the planned the Telephone Pioneers of America, with the IBA eight years ago as an 10,000 runners bearing the Olympic AT&T Communications, and begins administrative assistant to Neil Mil Torch on its journey from New York May 8, 1984, in New York City, con ner, executive vice president and to Los Angeles. Through their coop cluding in the Los Angeles Memori secretary. In 1979 she was promoted eration, the two organizations will al Coliseum on July 28, 1984. It will to corporate administrator. She als<^ be financially assisting both the run travel throughout the country. The served as the executive secretary for ners and a support group through Telephone Pioneers of America is a the Iowa Society of Association Ex out the country for the historic voluntary association of AT&T ecutives for the past four years and event, with MasterCard services employees, current and retired. as corporate secretary for MABSCCK a consortium of 13 state banker as^ sociations, during the past three Inc. has over 500 terminals linked to years. TYME Corp. Joins Nationet Nationet and Instant Teller has ap As Third Active Member proximately 75. The additional Na Two Promoted in Ida Grove # On February 4, TYME Corpora tionet members are expected to go tion became the third active member Jack J. Eggspuehler has been pro live during the remainder of 1984. of Nationet. TYME, a shared re moted from vice president and Through Nationet, customers of gional electronic funds transfer participating financial institutions cashier to senior vice president, (EFT) network which is based in will be able to access over 4,500 ter cashier and secretary to the board of Brown Deer, Wis., has over 200 ter minals in 27 states. Those states Ida County State Bank, Ida Grove® minals that are currently active on which can currently be accessed and Vera I ver sen has been promoted the Nationet system. Nationet is a through Nationet as a result of ITS, to assistant cashier and head teller. nationwide EFT network composed Inc., Instant Teller, and T Y M E’s of 13 shared regional networks. participation are: California, Illinois, Joins Oelwein Bank ^ The other two Nationet members Iowa, Missouri, Nebraska, South that are live on the system are ITS, Joe Fugarino has joined The First Dakota, Oregon, Washington and National Bank, Oelwein, in charge of Inc. of Des Moines, and Instant Wisconsin. Teller of Los Angeles, Calif. ITS, instalment loans. He takes the place of Ken G. Moore, who recently re tired. Mr. Moore was senior vice# Director Elected president instalment loans and had Erwin H. Johnson, an area grain been with the bank over 17 years. and livestock farmer, has been Mr. Fugarino has over 16 years elected to serve on the board of banking experience, most recently directors of First Security Bank and with Iowa State Bank & Trust o # Trust Company, Charles City. Iowa City. West Bank and Norwest Card Services Support 1984 Olympic Torch Run W DigitizedN for FRASER o r th w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 To correspondent banking services at Am erican Trust and Savings When it comes to correspondent banking, American Trust and Savings takes the cake. In todays economy individuals and businessmen alike look to their bankers for inflation-fighting programs, money-saving plans and many special services. Yet you might feel unable to serve all those special requests. If so, help yourself by calling American Trust and Savings. Our Correspondent Banking Team and Trust Department cuts through the confusion surrounding correspondent banking services. And Bernie Miller has the recipe for success. Call Services: Over-line loan participation Depository for excess funds Bond investment counseling (portfolios) Collections Domestic and foreign wire transfer of funds Currency and silver procurement ACH (Automatic Clearing House Services) Cash letters Custom HR-10s Keogh prototypes Corporate profit sharing plans Tax shelters Unincorporated pension plans IRAs Bernie Miller, Correspondent Banker 319/ 582-1841 319/582-1841. AmericanWT rust 0 Savings Danl^ The Danl^qf Opportunity Town Clock Plaza, Dubuque, Iowa 52001 • 319/582-1841 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC and FRS N o r th w e s te r n B a n k e r, A p ril, 19 84 94 Io w a N ew s American Trust, Dubuque Announces Advancements Paul Jaeger, appointed trust of ficer at the Town Clock Plaza, joined American Trust in 1981 as employee benefits administrator. He special izes in pension plans and retirement accounts. Rosemary Drake, elected vice president and marketing officer at Town Clock Plaza, is new to the bank and formerly was vice presi dent of marketing for Bettendorf Bank and Trust. Robin Rivers, appointed auditor at Town Clock Plaza, is a licensed CPA, with a degree from Drake Uni versity. She studied accounting at Iowa City. Terry Esch, appointed instalment loan officer, Kennedy Road Bank, joined the bank in 1981 and has been serving as loan interviewer. Pamela Heer was appointed per sonal banking officer at Key West Bank. She joined in 1977 and has been managing the Key West Bank for the past two years. At the annual stockholders meet ing, American Trust and Savings Bank, Dubuque, announced the fol lowing staff promotions and the election of new officers. Fred J. Pape, Jr. was elected vice president, Town Clock Plaza Bank. He began his career with the bank in 1960 and was serving as a loan of ficer at the Kearney Road Office when he was elected vice president and transferred downtown as cash ier in 1969. F .J. PAPE, JR . P. JAEG ER R. DRAKE R. RIVERS A. V O SS J . GIBSON S.M. MARTIN P.J. FRÖMMELT SAVE $5 , 0 TO $ 1 0 0 5 , 0 0 0 . . . on a New Mercedes, Porsche, BMW 5 Y e a r / 5 0 ,0 0 0 Mile W a rra n ty Bonded European Auto Imports 712 252-4295 - Fine Used Autos Also Available DigitizedN ofor r thFRASER w e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Adele Voss, appointed personaL banking officer, Town Clock Plaza, started with the bank full-time in 1971. Joan Gibson, appointed time op erations officer, Town Clock Plaza^ joined the bank in 1976 as a com mercial teller. Steven M. Martin, appointed as sistant trust officer, Town Clock Plaza, joined the bank’s trust d e ^ partment in June of last year. He graduated from the Drake Law School in May, 1983 and has a bach elors degree from Cornell College. Paul J. Frommelt, chief e x e cu tiv e officer of Frommelt Industries, was elected to the bank’s board. Marion Bank and Chariton Hy-Vees Reach Agreement * An agreement has been reached between Farmers State Bank and Hy-Vee Food Stores, Inc. of Chari ton, renewing and broadening elec| tronic banking services in Cedar Rapids and Marion. The agreement includes all seven metropolitan HyVee Food Stores in which Farmers State Bank maintains one or mord Automatic Teller Machines. It also provides for further expansion of electronic banking into metropolitan Hy-Vee and DrugTown stores. In making the announcement# bank president Clair J. Lensing said, “ Farmers State Bank is pleased to announce the signing of this agree ment with Hy-Vee. It will mean a continuation of the type of modern^ customer oriented services that have come to be expected from both businesses.’ ’ Mr. Lensing stated that by the end of this year Farmers State Bank^ plans to have 18 ATMs operating in the metropolitan area. All FSB owned machines are full functioned terminals available to all Iowa elec tronic banking cardholders. Maquoketa Bank Names Bernard Branch Manager Patrick Hutchins has been pro moted to assistant cashier and office manager of the Bernard Branch of Hawkeye Bank and Trust in Maquo keta. ^ Mr. Hutchins has been with the bank since August of last year and has been in a training program since that time. Prior to joining the bank he received his BA degree from0 Loras College in Dubuque. 95 IF AN IRA HASN’T RELIEVED THE PAIN O F YOUR CUSTOM ER’S TAX BITE, AN an IDEA ANNUITY • Gives tax advantages now— interest earned is tax deferred. • Offers exceptional safety for both principal and interest. • Earns interest at competitive rates. • Provides access to money when needed. (Interest withdrawn may be subject to tax.) • Guarantees a retirement income for a lifetime. (Other payout op tions also available.) For More Information Contact Margie Schaefer, CLU and Vice President Iowa Bankers Insurance and Services, Inc. 1-800-532-1423 or (515) 286-4366 (Underwritten by American Republic Insurance Company of Des Moines, la.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 96 Io w a N ew s Promoted in Ottumwa manager of the Burbank Office. Joining the Union Bank in June, Union Bank and Trust Company, Ottumwa, has announced the pro 1983, as assistant vice president, Mr. Stoffer’s previous banking ex motion of Ber perience was at Peoples Trust & nard K. Huston JBs?'"' Savings Bank in Indianola, where he to senior vice was an ag lending and trust officer. president; Dick Having earned his BS degree in Stoffer to vice 1980 from Iowa State University in p r e s id e n t in agricultural business and farm man charge of agri agement, Mr. Mourer farmed at cultural lending, Richland before joining Union Bank and Kirk Mourer as an ag lender in August of last to ag loan of year. ficer. Mr. H uston has been with Union Bank since 1970 and is currently in charge of commercial lending. He started his banking career with United Califor nia Banks, where he was in commer cial lending and was the assistant D. STOFFER K. MOURER Reinbeck Bank Purchased Lincoln Bancorp, a one-bank hold ing company, has received approval from the Federal Reserve to pur chase the Lincoln Savings Bank of Reinbeck. Lincoln Savings Bank also maintains an office in Lincoln. At the bank, Carol Petersen has been elevated to the position of cash ier after many years of service in the teller and bookkeeping areas of the bank. Betty Petersen has been pro moted to assistant trust officer fol lowing many years of service in the trust department. Wayne Chamberlain has been elected to the board. He fills the position made when Sylvan Ames Committed to making your bank stand apart from the stepped down from the board to director emeritus. ® Farmers State, Marion Installs Additional ATMs Farmers State Bank, Marion, ir# cooperation with Nash Finch Com pany, has for more than a year been installing ATMs in Me Too Super markets in Marion, Hiawatha and at First Avenue Southwest in Cedar# Rapids. Farmers State will soon install ATMs in the J. Street Southwest Me Too and Econofoods at Westdale bringing to 15 the number of full# function machines in Farmers State electronic banking system. Atkins Bank Name Changed^ At a special shareholders meeting held in March, the name of Peoples Savings Bank in Atkins was changed to Atkins Savings Bank & Trust, Atkins. In addition, Richard Hare o ^ Atkins was elected to the board. Other recent changes at the bank include the addition of fiduciary powers which allows the bank to op erate a trust department and act a ^ the executor of estates. Additional funds of $160,000 were also trans ferred from profits to surplus. Group Files For National Charter in Council Bluffs A group of organizers headed by Robert L. Kirchner has filed applica tion with the Comptroller of the Cur^ rency for a national bank charter under the name Landmark National Bank, to be located at 509 West Broadway in Council Bluffs. Proposed capital structure for t h ^ bank is: capital - $1,000,000; surplus $1,000,000 totaling - $2,000,000. Added in Green Mountain James N. Denman has joined Pro ducers Savings Ba nk , Gr ee n M o u n t a i n , as vice president. Mr. Denman graduated from the U niversity of Iowa in 1978 and was employed for five years with the State J.N . DENMAN Department of Banking as a field examiner, before joining the Green Mountain bank. DigitizedN for o rthFRASER w e s te rn B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io w a N ew s Two Promoted in Waterloo ^ The National Bank of Waterloo has promoted Erling Schmiesing to senior vice president and cashier in charge of bank operations. He joined ^he bank in 1969 as director of data processing and continued as director and senior vice president until his re cent promotion. Mr. Schmiesing re places Merland Wackerbarth, who is presently on extended medical leave. E. SCHM IESING in the Iowa Republican party, died last month in Phoenix, Ariz., of a heart ailment. Mr. Whitfield founded and headed until his death one of Iowa’s most prestigious law firms— Whitfield, Musgrave, Selvy, Kelly and Eddy. At the time of his death, Mr. Whitfield was a director of Valley National Bank in Des Moines, The International Bank in Washington, D.C., and Financial Security Group, which has holdings in Des Moines and Washington. Mr. Whitfield was graduated from Iowa State University in 1924 and Harvard Law School in 1927. He moved to Des Moines to set up 97 his law practice. Among his many civic accomplishments, Mr. Whit field served as president of the United States Junior Chamber of Commerce in 1936. Joins Clarion Bank Kevin Geis has joined Brenton Bank and Trust Company, Clarion, as assistant vice president. He is a 1980 graduate of the University of Wyoming with a degree in ag busi ness. Mr. Geis most recently managed a branch office for the Federal Land Bank of Marshalltown, in Iowa Falls. J . FREET James Freet has also been pro moted to fill Mr. Schmiesing’s for mer position as senior vice president llnd manager of the data processing center. Mr. Freet joined the bank in 1977 as a systems analyst and was a vice president at the time of this pro motion. LeMars Additions Announced Anyone Responsible ForA Half Million Dollars Shouldn't Have ToWorkTwoJobs. A1 Maser, president of First Na- 4 ional Bank in LeMars, recently anLounced the following additions to the bank’s staff. Thomas S. Maser has joined as agricultural loan officer. He received Jiis degree from Iowa State Univer s it y in 1982 in finance and history. He has been working in the agricul tural lending department of the bank since 1982, previously having ^vorked at Lakes National Bank as assistant cashier. Mark A. Maser has joined as mar keting officer. He has his degree in business administration from Auggistana College in Sioux Falls, hav ing graduated in 1980. In late 1981 he moved to LeMars and has been employed in the marketing area of First National since then. He pre viou sly was with Valley State Bank in Sioux City as branch manager of the bank’s Southern Hills Mall Branch and later was with Spirit Lake Beacon, where he edited a mag azine. Making money is a full time job. Unfortunately, so is manag ing it. And most people and companies are far better at getting rich than they are at staying that way. Unless they hire us, Statesman Investment Advisors. We work for individuals, corporations, endowment funds, pension funds and associations with manageable assets of a half million dollars or more. And we'll manage your assets on a fee basis, designing portfolios that are responsive both to the market and to your goals and objectives. We offer no products, no insurance and receive no t commissions. All we have to sell is a staff with 35 years of broad investment experience and over $150,000,000 under management. Want to make your half million whole? Put Statesman Investment Advisors to work for you. Call 515-284-7648. REGISTERED INVESTMENT ADVISORS The Statesman Group, Inc. Suite 804 Des Moines Building Des Moines, IA. 50309 «- (515)284-7648 S t a t e s m a n In v e s t m e n t A d v is o r s , i n c . Allen W. W hitfield Dies Allen W. Whitfield, 80, a leading f ttorney in Des Moines for decades, nd for many years an active leader https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 98 president for business development He transferred to Northwestern N ^ tional Bank (now Norwest Bank Minneapolis) in 1967, where he spent eight years, initially as head of the national accounts division and later as senior vice president, a ® ministration, in the commercial banking department. Mr. Benson returned to Norwest Bank Midland in November, 1975^ as president, assuming the a d d ? tional duties of CEO in 1978. He was named Norwest’s Iowa regional vice president in August, 1982. * * * Des Moines t of the inten tion of Eugene G. Precht, 55, to take early retirement as chairman and chief executive officer of Norwest Bank Des Moines, N.A., was made last month by directors of the bank following their March 13 meet ing. Mr. Precht said he plans to re tire December 31, 1984. He will con tinue in an advisory capacity with Norwest during the following year, which will conclude 35 years of ser vice with the Minneapolis-based holding company. that time, we recognized the need to unify our approach to broad markets as a ‘single punch’ organization. We intend to deliver to Iowa the full range of services and products of fered by Norwest Corporation, while preserving the ability to personally meet customer needs at the local level. ’ ’ Mr. Benson also noted, “ George Milligan will continue in his present capacity as president and chief oper ating offficer of Norwest Bank Des Moines.’ ’ Mr. Precht, whose career at Nor west currently spans 33 years, said, “ This advance notice gives me an opportunity to work with Harry and provide an orderly transition of management.” “ Bud” Precht is a native of New Ulm, Minn., and joined Norwest in 1951 as a commercial lender at the Norwest bank in Osseo, Minn. In 1960 he was elected president of E.G. PRECHT H.C. BENSON Norwest Bank in Dodge Center, The announcement from Norwest Minn., then became a vice president Bank directors said they will elect of Norwest Corporation in 1964. Harry C. Benson, 61, Norwest re Four years later he was elected pres gional vice president headquartered ident of Norwest Bank Blooming in the Des Moines bank building, to ton, N.A., in suburban Blooming succeed Mr. Precht as chairman and ton, one of Norwest’s largest banks, CEO. Mr. Benson will continue also and assumed the added duties of as regional vice president of Nor CEO there in 1970. He remained at west Corporation. Bloomington until his appointment Mr. Benson said, “ Our intent is to as president of Norwest Bank Des consolidate management of the Nor Moines in 1981, later moving to west Iowa region with management chairman and continuing as CEO. Mr. Benson also has spent his en of the bank. The bank will assume a broader role with increased responsi tire banking career with Norwest, bilities for the corporation in this joining Midland National Bank (now state. This is another step in a con Norwest Bank Midland) in Minne tinuum which the company began apolis in 1940, where he served in last spring with its name change. At various positions and became vice A nnouncem ent DigitizedN for o r thFRASER w e s te r n B a n k e r, A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Judy Gilbert has accepted the position of vice president/sales with Hawkeye-Capital _ Bank & Trust. She will direct the bank’s sales and business de velopment pro gram, with new i accounts, sales and the investor center reporting to her. J . GILBERT m Before joining the bank, she was with Greater Des Moines Chamber of Commerce Fede ration as vice president of govern mental affairs. m * * * IX William V. Mullins has been appointed assistant vice president in the Iowa corresp on d en t/corp orate services di vision of United Central Bank. Mr. M ullins joins the bank from the Iowa Department of Banking, where m he has worked w V. MULLINS » since 1977. He most recently served as bank exanimation specialist. 1 ■ I * * * Plaza State Bank recently an nounced the promotion of John Seddon to vice president, retail banking and Donna Jones to vice presidentIn addition, Veva Moehn has bee® assigned to the real estate depart ment and Paul Johnson will assume the duties of commercial loan officer. Mr. Seddon, formerly assistanL vice president and manager of the 99 DO HIGH INTEREST RATES HAVE YOUR CUSTOMERS DOWN? If the answer is yes, then NOW’S THE TIME to look at the competitive advantage for your bank...your own leasing company, which can offer your customers a low cost alternative for financing the equipment they need but have delayed purchasing. Today’s high interest rate environment has put a real strain on your customer’s cash flow, and has probably reduced their ability to qualify for loans. By offering your customers the ability to lease, they will improve their cash position and will be able to increase their borrowings from your bank. By operating your own leasing com pany, you will enhance your relationship with your customer and broaden the range of services you offer. UCB Leasing Corporation is familiar with and experienced in meeting the needs of banks and their customers. We have the expertise to assure that your venture into leasing gets started right. And, we will direct your full documentation in the critical areas of accounting, marketing and tax sheltering. If you are concerned about your custom ers, your bank’s shrinking loan portfolio and loss of market share, you need to investigate the leasing alternative. NOW’S THE TIME to call (without obligation) Tim Mercer at (515) 245-7222 to find out how UCB Leasing can help you and your customers. Tim Mercer ucb UCBLEASINGCORPORATION AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC. LOCUST AT SIXTH, DES MOINES, IOWA 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r th w e s te r n B a n k e r, A p ril, 19 84 100 Io w a N ew s bank’s Harding Road office will turn those duties over to Kathy Vandermeulen. Ms. Jones has been with the bank 12 years. Ms. Moehn has been with the bank since 1969. Her new duties will include real estate lending. Mr. Johnson is currently serving as assistant cashier. * * * Julie T. Kanak has been named commercial banking officer at Valley National Bank. M s. Kanak, previously serv ing as credit ana lyst, has been with the bank since 1981. She has a BA degree from the Univer sity o f Iowa, J.T. KANAK with concentra tion in marketing, industrial rela tions and human resources. * * * Norwest Bank Des Moines, N.A. recently announced the following promotions: Jerry C. Hous er has been named vice president, commercial bank ing. He joined the bank in 1972 as an install ment loan collec tor, and most re cently was named j . c . HOUSER second vice pres ident, in September of 1981. M.E. KENNEDY C.A. URNESS Digitized Nfor FRASER o r th w e s te r n B a n k e r, A p ril, 1984 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Colleen K. Monahan has been named vice president, operations. She joined the bank in 1974, and has held a number of positions in opera tions. She was named second vice president, operations, in 1982. Mitchell A. Christensen has been named vice president operations. He joined the bank in 1977 as worksta tion administrator. He also was named second vice president in 1982. Mary E. Kennedy has been named second vice president, commercial banking. She joined the bank in 1969, in the credit department. Ken nedy transferred to the Euclid office in 1971 where she was named perso nal banker and later personal loan officer. Cynthia A. Umess has been named second vice president, data services. Ms. Urness transferred to Norwest Bank Des Moines, N.A. as a compu ter service representative in 1979 from Norwest Information Services. She was named computer services officer in 1981. Carol A. Barkley has been named second vice president, data services. She transferred from Norwest Infor mation Services in 1976 as a compu ter service representative and joined Norwest Information Services in 1974. Kathleen M. Delucca has been named second vice president data services. Ms. Delucca joined the bank in 1979 and most recently was named computer services officer. Robert A. Anderson, senior vice president, loan administration of N orw est Bank D es M o in e s , N .A., has as sumed the addi tional responsi bilities of region al vice president and senior credit administrator for Norwest Corpor . a . ANDERSON ration’s Region IV office, head quartered in Des Moines. This newly created position is C.A. BARKLEY K.M. DELUCCA part of a program to strengthen credit administration for Norwest banks within the regional offices. In addition to managing loan ad ministration at Norwest Bank Des Moines, Mr. Anderson’s responsibi^ ities will include: • administration of credit in Re gion IV; • assuring regional conformance to Norwest Corporation’s credi^, standards, policies and procedures; • review and recommend for ap proval to the regional president each affiliate loan policy developed by managing officers of banks withijj the region, including individual lend ing authorities and membership of affiliate loan committees; and • monitoring loan portfolio per formance for compliance with corp rate and bank policies, using data generated by the region and central credit research. Mr. Anderson, whose office will be in Norwest Bank Des Moines^ joined the bank as a messenger in 1942. He moved to bank operations, became a teller and later worked in installment lending for 22 years. In 1973 he moved to commercial len ing and was promoted to vice presi dent and manager of commercial lending in 1975. He was made group vice president of commercial bank ing in 1978 and became senior v icl president loan administration, in 1981. Peoples Bank, Indianola Staff Changes Announced • Bruce W. Sorensen has joined the staff of Peoples Trust and Savings Bank, Indianola, as assistant vice president. Formerly with American State Bank of Sioux Center, Mr. Sorensen will be working in the loan department, primarily with agricul tural and other business loans. Also announced, R. Dean Phillip^ was elected vice president ana serves as financial officer. Mr. Phillips joined the bank staff in 1981 as controller. Newly elected to the board o£ Peoples Trust & Savings Bancorp and Peoples Bank are William B. Sayre, vice president of the Conti nental Illinois National Bank and Trust Company of Chicago, an<j| Joseph Brennan, partner in the In dianola Veterinary Clinic. Retiring from the board were Myron Orr and Harvey L. Arand, who served on the board 35 and 1^| years respectively. Io w a N ew s Promoted in Charles City O.J. Tomson, president and chair man of Citizens National Bank, Charles City, has announced the pro motion of Colin B. Robinson to ex e c u t iv e vice president; Elizabeth G. Regan to assistant to the president; Darrel L. Posegate to cashier, and Joyce M. Kingery to data process ing manager. Mr. Robinson will be responsible for the daily administration of the bank’s activities, including adminis tration of the loan, trust and mar keting department. 101 Norwest Bank Mason City Hosts 45th Annual Lincoln Day Stag Fredericksburg Bank Converts To National Charter First State Bank, Fredericksburg, Received approval recently from the Comptroller of the Currency to con vert from a state to a national char ter under the new name of Northeast Iowa National Bank. Ray Johnston Heads New Division at R.G. Dickinson Raymond G. Johnston has be|pome affiliated with R.G. Dickinson & Co., Des Moines, as vice president of a newly-created marketing divi sion of the Pub lic Finance De p a rtm en t. He heads the com p a n y ’ s efforts |n m a r k e tin g tax-free securi R.G. JOHNSTON ties originated through the department. The Public Finance Department Serves some sixty Iowa municipali ties as financial consultants and municipal bond underwriters. Mr. Johnston is a widely known Iowa banker who was associated ith the United Central Bank of Des Moines, N.A., for 33 years. He joined the bank in 1948 in the operations department, worked in the trust de partment for a number of years, Then served in the commercial lend ing department as a vice president, later becoming senior vice president of that division. Mr. Johnston was elected president of UCB in 1974 and was given the added responsibil ity as chief executive officer in 1976. He held these positions until his res ignation in 1981, after which he joined the R.G. Dickinson & Co. state-wide investment banking firm. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 45th Annual Lincoln’s Day Stag, hosted by Norwest Bank Mason City, was held February 20 at the Sheraton Inn. The event included a banker’s seminar. Speakers at the seminar were Jack W. Nielsen, president; David L. Kingland, senior vice presi dent; Dan Brady, vice president, and Jam es Garver, assistant vice president. Mr. Garver told the 150 bankers in attendance that Norwest Bank Mason City has been designated by Norwest Corporation as a Hub bank for North Iowa and Southern Min nesota, and that the Mason City bank has the capabilities of delivering services from larger affiliates of Norwest Corporation, such as Des Moines, Omaha and Minneapo lis. The evening concluded with dinner and entertainment. Pictured above (I to r) are: Raymond Keister, retiree, Norwest Bank Mason City, N.A.; Lyle Abrahamson, pres., First State Bk., Britt; Cortland D. Peterson, pres., First State Bk., Manly; Jam es L. Garver, a.v.p., Norwest Bank Mason City, and Paul Johnson, pres., Iowa State Bk., Algona. Dubuque Directors Elected Mark C. Falb and Lynn B. Fuller were newly elected to the board of Dubuque Bank and Trust Company. Mr. Falb is president and chief ex ecutive officer of the WCB Group of Dubuque and is a CPA. Mr. Fuller is a senior vice presi dent of Dubuque Bank and Trust Company. Promoted in Maquoketa At the annual stockholders meet ing of Maquoketa State Bank, seve ral promotions were announced. Mary Ann Trevathan was pro moted to senior vice president; Barb Marcus to cashier and personnel of ficer; Elaine Edwards to assistant vice president and assistant trust of ficer, and Elaine Watters from head teller to officer trainee. A nnouncem ent o f expansion plans was also made by Edward L. Tubbs, chairman, for an addition to the bank’s headquarters. Orange City Appoints Three The Northwestern State Bank of Orange City recently appointed Arvin Druvenga as internal control of ficer and Brian J. Brown as assis tant agricultural loan officer. Wil liam O. Kepp was also elected mar keting officer. Thurman Bank Relocates Head Office to Sidney United National Bank of Iowa, Thurman, has received approval to relocate its head office to 900 Illi nois, Sidney, retaining a branch of fice in Thurman at 800 Filmore Street. Joins Waterloo Bank Randy R. Fick has joined Peoples Bank and Trust Company, Waterloo, as assistant vice president in the commercial loan department. Mr. Fick has had 11 years of e x p e rie n c e in commercial lend ing, having for merly been with a Mason City R.R. FICK bank in commer cial lending. He has a BA degree from Mankato State College, Minn. N o r th w e s te r n B a n k e r, A p ril, 19 84 102 Modern Facility . . . (Continued from page 27) alize that a new facility is created for them, it does in deed provide a bottom line advantage. It’s been said that “ a building does not a profit make - people do.” An attack on the King’s English, it is also only a half-truth. In today’s competitive mar ketplace, no banker can afford an employee who’s atti tude is contrary to good public relations. The mileage one gets from a smile is fantastic, but the first impres sion of a cold and impersonal (but maybe highly effi cient) greeting can rapidly turn a customer away. Employee Attitudes Improve The Tama State Bank in Tama illustrates how in creased production and employee attitudes improved after building a new, warm and friendly facility. The building design actually increased production and re duced the number of employees at the same time. In CORRESPONDENT CONF____ (Continued from page 41) concurrent sessions. Speaking at that session, Donald G. Pederson, senior vice president of Norwest Bank Minneapolis, N.A., said his multi-bank, multi-state holding com pany is “ developing new, innovative delivery systems which focus on cus tomer and prospect strategies rather than just developing products and services we perceive to match those individual strategies.” “ The future,” Mr. Pederson stressed, “ will certainly include the trend towards fee-based products and services rather than compensating balances.” Speaking on behalf of CEOs at respondent banks, he noted that “ every asset dollar of our re spondents has to be effectively used (by them) to generate profits. Those dollars may not be best deployed if utilized as a compensating balance... Compensating balances will be out dated in a de-regulated environ ment.” This should lead to accurate pricing of unbundled services by the correspondent bank, Mr. Pederson stated, and “ fees will be the means to pay for the products and services we deliver to our respondents.” “ As correspondent bankers we must avoid a product orientation. We must concentrate on meeting re spondent strategies. The correspon dent must ‘listen’ and use resources to meet the needs found in (re spondent) strategies.” Bank Stock Financing One workshop that drew a stand ing room only crowd was on “ Bank , DigitizedN ofor r thFRASER w e s te r n B a n k e r A p ril, 19 84 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis addition, it’s now “ a great place to come to work” an<^ as a customer walks in the door for the first time, o just places a phone call, the image of a positive and friendly staff is apparent. This positive and friendly attitude is contagious. The care and pride they have in their new facility is typical and is bound to have a posi| tive effect with their customers. Having remodeled or built 239 financial facilities in the last 158 months, we at Kirk Gross Company are the first to acknowledge that possible increased busi ness and employee motivation are alone not enough reasons to invest in a new or remodeled structure. But, history has proved time and time again that these ad vantages do help in projecting an aggressive modern and service oriented bank. Investing in the banking house, if it is necessary to provide better service, ca not help but enhance business. The additional advan tages listed above also will help your overall bottom line and, coupled with increased services, the banker, the employees and the customer profit! □ Stock Financing.” The two panelists were Michael Boncher, vice presi dent, First Bank Minneapolis, and Robert H. Dressel, senior vice presi dent, United Bank of Denver, N.A. Mr. Boncher said his bank histori cally has been a bank stock lender to bankers with one, or sometimes two banks. “ In the past year we have seen a shift in this to chain banks. This has meant a shift in our person nel to those who are credit-oriented. Turning our emphasis to multi-bank groups could become a major part of our area. We have had requests from only two or three individual en trepreneurs this past year— others represent a shift to multi-bank owners.” Further in the discussion, which involved numerous questions and commets from the floor, Mr. Boncher said, “ A big departure from the past, when all stock loans were priced the same, is to underwrite to risk, and price accordingly— either up or down from the old benchmarks as each loan dictates.” Mr. Dressel said at his bank “ A big share of the bank stock market is in individual banks, but we are seeing the same trend among multi bank owners to consolidate their fi nancing.” Mr. Dressel also described ways in which his bank analyzes the people behind the bank stock loans— their expertise and their motives for wanting the bank. “ We analyze the loan request itself, look at the bal ance sheet, the make-up of deposits, loans and investments, and the po tential for the bank’s market. It is difficult to foresee the future for spreads, cash flow for payback and profits.” □ r K Index of Advertisers APRIL, 1984 American National Bank & Trust, St. P aul........................ 57 American Trust & Savings Bank, D ubuque......................93 Aristocrat Inns. C h ic a g o .................................................... 22 Banclease, Inc., Omaha ..................................................... 43 Bank Building C orp o ra tion ................................................103 Bankers Trust Company, Des M o in e s ............................... 86 Bonded European Auto Im p o rts........................................ Central States Health & Life Co., O m a h a ......................... 19 Collateral Financial Services, Inc........................................15 Continental Bank, C hicago................................................. 26 Daktronics, Inc.......................................................................10 Dawson Hail Insurance Com pany................................. 17-51 Drovers Bank of C h ic a g o ............................................... 20-21 Employers Mutual C om panies.......................................... 4 l F & M Marquette National Bank, Minneapolis Farmers Mutual Hail Insurance Co.................. First Bank Card Center, O m a h a ...................... First National Bank, C h ic a g o .......................... First National L in c o ln ...................................... First Bank Minneapolis .................................. First National Bank, O m a h a ............................ First National Bank, St. J o s e p h ...................... First National Bank, Sioux C it y ...................... FN Bankware, Inc.............................................. 48 23 73 44 85 Gross, Kirk Co., W a te rlo o ................................ HBE Bank Facilities, St. L o u is ........................ HEMAR-Higher Education Assistance Assn. . Iowa Bankers Insurance & Services .............. Kooker & Associates, E.F.................................. Kirkpatrick, Pettis Smith, Polian & C o ............ 92 78 Lincoln Benefit Life Ins. Co.................................................. 84 Manufacturers HanoverTrust Co................................... 12-13 Merchants National Bank, Cedar R a p id s .......................... Monroe Systems for B u s in e s s ............................................. 9 Mortgage Guaranty Insurance C om pany..................... 24-25 National Bank of Commerce, L in c o ln ............................... 68 Northern Trust Company, Chicago ..................................... 5 Northwestern Bell Telephone C om p a n y........................... 54 Norwest C orporation..........................................................104 Office Concepts, Inc., W a te rlo o ........................................ 9 ® Omaha National Bank ................................................... 52-53 Packers National Bank, O m a h a ......................................... 72 Statesman Investment Advisors, Des Moines .................97 Travelers Express Co........................................................... 59 UCB Leasing, Inc., Des Moines ........................................ 9 ^ United Central Bank of Des Moines, N.A......................90-9W United States Check Book Company, Omaha ................. 74 - ~Jl. ■ ■ T he R ight I d ea When we decided to remodel and expand our building, says Rowan C. McAllister, President of First National Bank of Barron, Wise., “we wanted it to be distinctive... not just another pretty bank. ........ a s 1 is iii ! if ’ SM 1; û .,5 ¡: j §i Èra i¡5 'H J We have always been closely tied to our community and wanted our facility to express our own unique personality to our customers and the community we serve. It had to be warm, friendly, inviting, convenient ...and different. We talked to a lot of firms, but the people at Bank Building really listened. And understood. They studied us, our needs, our people and our community. And they came up with the right ideas. ‘Our new facility is exactly what we wanted...efficient, productive, unique...and successful. We couldn’t ask for more. Let us put our ideas to work for you. Call Tom Spalding, 1- 800 » 325-9573 Meeting the needs of the community you serve. .. by design. <> Bank Building ' 4 / Corporation 1130 Hampton Avenue St. Louis. MO 63139 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis »sii*« “It’s 1984 “Ournew HubSystem willmove correspondent bankingcloser toyou.” Darin Narayana, Senior Vice President, Financial Institutions Group and the traditional financial relationship is changing dramatically “We, at Norwest Banks, are sensitive to these changes and how they affect you, particularly in correspondent banking. “What w e’ve done is made a new, stronger commitment to correspondent banking. It is a whole new way of doing business with you. We call it Norwest Corporation’s Hub System™ “Basically, the Hub System involves positioning financial institution officers in key Norwest affiliate banks chosen for their strategic regional locations and capabilities. It’s from these hub locations that our financial experts will build a relationship with you that will work more like a partnership. Together w e’ll work to help identify your specific needs and set goals and objectives to fulfill those needs. “The Hub System lets us take on a new, vibrant role in correspondent banking. We’re convinced it will result in better, more comprehensive service to respondent banks over longer periods. In turn, that will create an environment of continuity in our correspondent banking relationships. “We firmly believe the principles of the Hub System, coupled with the breadth of products, services and the expertise of our staff, will make Norwest Banks your financial resource of first choice. It will add up to new, more involved and responsive correspondent banking service for you. “If you’re facing some new business challenges, why not find out more about Norwest Corporation’s new Hub System? Call the Financial Institutions Client Executive at the Hub bank nearest you. We’ll help you meet the challenge. Head-on’.’ Hub Bank Locations: Norwest Bank Aberdeen, N.A. Norwest Bank Bismarck, N.A. Norwest Bank Black Hills, N.A. Norwest Bank Des Moines, N.A. Norwest Bank Duluth, N.A. Norwest Bank Fargo, N.A. Norwest Bank La Crosse, N.A. Norwest Bank Mankato, N.A. Norwest Bank Marshall, N.A. Norwest Bank Mason City, N.A. Norwest Bank Midland, N.A. Norwest Bank Minneapolis, N.A. Norwest Bank Omaha, N.A. Norwest Bank Rochester, N.A. Norwest Bank Sioux Falls, N.A. M embers FDtC Financial Institutions Group H k H I llf lf f NORW EST CORPORATION mmmmm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis