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- St. Louis^
Federal Reserve Bank of



• Nebraski

Meet Dick Retz,
MN B Correspondent Banker.

Meet Dick Retz,

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
Federal Reserve Bank of St. Louis

Cedar Rapids, Iowa 52401

Member F.D.I.C.


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
Federal Reserve Bank of St. Louis

You can’t afford
not to look at H B E


Farmers Mutual Hail #
Reports Outstanding Year

APRIL 1984


91st Year


No. 1447


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
of insurance in
force. In 1983
the Company’s
reported claims
exceeded 15,000
which was a de­
crea se
1982. As a result
of good loss ratio,
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



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

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


Bank Promotions
Twin Cities


South Dakota
North Dakota


Des Moines
Ad Index

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


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
th w e s te r n B a n k e r , A p ril , 19 84
Federal Reserve Bank of St. Louis



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

® 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
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
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^*; ^

Federal Reserve Bank of St. Louis




The kind that says we’ll be
responsive to your needs, no matter
what the changing environment
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
♦ 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
Correspondent Banking
First Bank Place
Minneapolis, MN 55480

W e are w hat you want a correspondent bank to be.
Federal Reserve Bank of St. Louis


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,
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,
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
Oct. 20-24—ABA Annual Convention, New
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

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
w e s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis



May. 13-18—Illinois Bankers School, Illinois
State University, Normal.
May 20-June 1—Agricultural Lending
School, Southern Illinois University,
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.

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
July 8-12—Outward Bound, Vernal, Utah.
July 19-21 —Iowa Independent Bankers An­
nual Meeting & Convention, The New Inn,
Aug. 19-25—Commercial Lending School,
Sept. 16-18—IBA 98th Annual Convention,
Des Moines.
Oct. 23-24—Consumer Lending/Retail Bank­
ing Conference, Des Moines.

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
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,
Sept. 25—NDBA Northwest Group Meeting,
Sept. 26—NDBA Southwest Group Meeting®
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
July 5-7—Dakota Bankers Centennial Con­
vention, The Broadmoor, Colorado
Sept. 17—Group 5 Meeting, Holiday In n ^
Sept. 18—Group 3 Meeting, Holiday Inn,
Sept. 19—Group 1 Meeting, Westward Ho
Country Club, Sioux Falls.
Sept. 20—Group 2 Meeting, Lantern In n ^
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
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.



May 24-25—MBA Trust Conference, Heri­
tage Inn, Great Falls.
June 26-29—MBA Annual Convention, Biq

Apr. 22-25—WBA Biennial Washington, D.C.
June 13-15—WBA 75th Annual Convention^
Jackson Lake Lodge, Moran.

W isconsin:


* Youcant competeintoday’stoughfinancial
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
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.

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.
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


<3 oc

Bank Promotions

< LU

ROMOTIONS and other an­
nouncements have been made
by the following banks:


Milbank, SD
Triangular free-standing

_ jiiPn
¡J» Jate,


Bethany, MO
Corner mounted

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 —



Brookings, SD 57006
Ph. 605/692-6145
TOLL FREE 800/843-9879
(exc. AK, HI and SD)

o r th
w e s te r n B a n k e r, A p ril, 1984
Digitized Nfor
Federal Reserve Bank of St. Louis


Thomas D. McKechney and O m ef
G. Voss Jr., financial services.
Patricia L. Chan, North American
Richard A. Bodem, I. Benedic^
Espinos and Richard S. Wilk, p r ?
vate banking, trust and investment
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.
Stephen M. Cunningham ana
Nancy I. Willis, U.S. capital mar­
Ronald R. Richter, wholesale
banking administration and traii^
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
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
partment. Michael J. Altenburger,
Daniel S. Bleil, correspondent
34, vice president, has been named
manager of the equipment leasing banking officer.
division of the special industries
officer—EDP services.
Ronald P. Maryas, operations of­
Continental also announced the
appointment of 31 new vice presi­ ficer-ca sh management.
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
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


Overland Park. Kansas

Minneapolis/St. Paul, Minnesota
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

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.
Federal Reserve Bank of St. Louis





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


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
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.

The financial source. Worldwide.
Federal Reserve Bank of St. Louis

M e m b e r F D IC

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
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
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
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
At United Missouri Bank, these
appointments and promotions were
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
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
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


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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.”

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444 Lafayette Road
St. Paul, M N 55101
Toll free


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
In addition, the board announced
its intention to elect Mr. Taylor
chairman at the board meeting fol­
lowing the annual meeting on April

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
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
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
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-




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
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
Mr. Taylor said, “ I appreciate the
N o rfor
e s te r n B a n k e r, A p ril, 1984
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


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the insurance industry. We’ve survived, grown and

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CA LL TO LL F R E E : 1-800- 437-4680
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


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
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
“ 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


DigitizedN for
o r thFRASER
w e s te r n B a n k e r, A p ril, 19 84
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
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
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
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^





“ 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

Federal Reserve Bank of St. Louis

BOX 34350

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
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-

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.


>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
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
“ 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.
Federal Reserve Bank of St. Louis



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

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


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.


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,

N o r th w e s te r n B a n k e r, A p ril, 1984
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
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
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.
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



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
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
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
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
Bonds: (Amortized)
Government .......................................
State, County and Municipal.........
All O th e r ..............................................

7,867,714 $75,208,741

Stocks: (Market - N.A.I.C.)
Common ...............................................
Real Estate— Home Office Building
Cash and Bank Deposits
Agents Balances and Reinsurance Receivable
Interest Due and A c c ru ed ...................................
All O th e r ...................................................................
TO TAL ...............................................................

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 . . . .


Reinsurance Balances Payable
All O th e r .......................................
............................................. 556,674
Surplus as Regards Policyholders.........................
TOTAL .................................................................

DALE DEN HARTOG, Sr. Vice President & Treasurer
PERRY RUTLEDGE, Sr. Vice President & Secretary
2323 Grand Avenue, Des Moines, Iowa 50312
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
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
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

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


t C


Working hard to earn your business
Federal Reserve Bank of St. Louis

Yourcommercial overline request
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
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 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
Federal Reserve Bank of St. Louis


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




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)
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

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.






^ 1 T \

N o r th w e s te r n B a n k e r, A p ril, 1984
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.



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

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

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.
(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

financial instituti
Over-exposure may
have been avoided had
they been protected
by the Profitstar
A sset/Liability
M anagem ent System .
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
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

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.

N am e.


C om pany.


T itle .
A d d r e ss .

State .

Send to F.N. Bankware, Inc., 1300 First National
Center, Omaha, NE 68102.

A product of F.N. Bankware, Inc.
F.N. Bankware, Inc., is a subsidiary of Farmers National Bancorp, Inc.
Home office — Geneseo, Illinois.
Federal Reserve Bank of St. Louis


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


N o for
r th wFRASER
e s te r n B a n k e r, A p ril, 1984
Federal Reserve Bank of St. Louis

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

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.’’
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
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
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


Leasing profitable ...
... but be cautious!
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.


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
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

N o r th w e s te r n B a n k e r, A p ril, 19 84
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
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.
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.
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.



Profit for banks
as lease service

Vice President
Financial Services Division
Norwest Leasing, Inc.
Minneapolis, Minn.


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
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.
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
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
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
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


Ag leasing ...
... rise is ‘phenomenal’

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.


Benefits of Community Banks
What will be the impact on community banks from
N o rfor
e s te r n B a n k e r, A p ril, 19 84
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

Senior Vice President
Collateral Control Corporation
St. Paul, Minn.
OO M ANY bankers today have not faced the reali­
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
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?


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
“ 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


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-

Federal Reserve Bank of St. Louis

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
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


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
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
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


N o rfor
e s te r n B a n k e r, A p ril, 19 84
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

largest bank in the nation’s smallest®
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

_ 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
“ 1. There is no such event as lend­
ing with impunity to any market.
No region of the country is reces­
“ 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,
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.

“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.
(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.
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


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
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
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
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


N o rfor
e s te r n B a n k e r, A p ril, 19 84
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
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

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
“ 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.
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
Peer groups also were devoted to
a wide range of community banker
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. □
(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
(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


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
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
Also speaking at the conference
will be James P. Miller Jr., vice
president, manager-corporate mar­
ket planning, Wachovia Bank &
Trust Company, Winston-Salem,
Mini clinics will be held at the


N o for
e s te rn B a n k e r, A p ril, 1984
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

“ Branch Closings and Related
Communications Challenges” will
be analyzed by Ron Rhody, senior
vice president-corporate communi-^
cations, Bank of America, San Fran­
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
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 £


(Turn to page 79, please)



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Banclease handles the paperwork
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N o r th w e s te r n B a n k e r , A p ril, 19 84


“ 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
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
to your specific needs.
The First National Bankof Chicago

Therms M. King.
Communi!)' Banking

Philip H.


Britt. [ Illinois Banking


© 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
Federal Reserve Bank of St. Louis


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
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

Elm Bancshares Acquires
Bank of Clarendon Hills

responsible for business develop­
ment. In addition, Frank M. Lynch
has been hired as assistant trust of­
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
Aurora National will install three
ATM units — two at its main office
location and one at its West Indiana
Trail facility office, sometime late

• 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,
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,
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



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
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


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
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
N o r th
s te r n B a n k e r , A p r il, 19 84
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
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
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



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
* * *
LaSalle National Bank announced
the promotion of Assistant Vice
President Wayne
Bismark to vice
president, corre­
spondent bank­
ing and financial
Mr. Bismark
joined LaSalle in
March of 1983 as
assistan t vice
president, corre­
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
* * *

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.



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
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Using the world’s largest, m ost dynamic construc­
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reflect up-to-date local labor material costs, and
annual adjustments are m ade to account for fluc­
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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
Overcoming underinsurance is just one o f the
m any com m ercial insurance problem s EMC has
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ing the everyday insurance problems of industry.



Em ployers M utual Com panies
Des Moines, Iowa 50309
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


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
N o rth
e s te rn B a n k e r, A p ril, 1984
Federal Reserve Bank of St. Louis

Correspondent Banking


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
Herbert Lund,
0 president of the
M BA and presi­
dent of Security
State Bank in
Albert Lea.
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
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

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.

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.
Also approved was the consolida­
tion of First National Bank of Hib
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



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
N o r th w e s te r n B a n k e r , A p ril, 19 84


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;
James, commer­
cial lending, for­
mer a ssista n t
vice president,
St. Louis Park
facility; Steven
P. Johnson, com­
mercial lending,
former assistant


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.


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.
* * *




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.
* * *



N o r th
s te r n B a n k e r, A p r il, 19 84
Federal Reserve Bank of St. Louis


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
agement consult­
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-


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N o r th w e s te r n B a n k e r, A p ril, 19 8 4
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


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
Named vice
presidents are
Ralph Nelson,
investment de­
partm ent, and
Michael Remmers, com m er­
cial loans.
New assistant
vice presidents
include: Larry

credit officer. He joined F&M in
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
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-













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
Mr. Kraayenbrink joined the
bank in 1979 and has extensive
background in computer services.
Mr. Schabert formerly served as a
N o r thfor
te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis





tional Bank & Trust Company of
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
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
Mr. Kennedy, special industries/commercial loan division, has
been with First Bank System in
Minneapolis for seven years, most


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Northwestern Bell TheInformation
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


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
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
* * *
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
N o r th
s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis



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



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.
* * *


Little bank, little bank
let m e com e in



ven the three little pigs were smart enough to know
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
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.


Federal Reserve Bank of St. Louis


• S A I N T

N o r th w e s te r n B a n k e r, A p ril, 19 84


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.





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
* * *
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
in Bloomington
and graduated from the National
Commercial Lending Graduate

School at the University of Okla- 0



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
search and con­
sulting services
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
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






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
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.


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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
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for your present authorized checks. You
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5075 Wayzata Boulevard, M inneapolis MN 55416
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 in n e s o ta N ew s

Several recent additions and pro­
motions have been announced by
American National Bank of St.
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

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
Mr. Helgemo
joined the bank
in 1969 as man­
ager of the in­
stalment loan department.



Gary S. Deinert and Linda K.
Nelson were promoted to consumer
banking officers, and Donna R. Cole
was promoted to assistant con­
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
N o r th
s te r n B a n k e r, A p ril, 1984
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
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.
(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.









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.


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
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
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
(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
Mr. Schaetz formerly was with
the newly acquired F&M Bank of
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

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

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
S io u x
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
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
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
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
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
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






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
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
2:45 Break.
3:00 “ Trust Marketing . . . ” - con­
4:30 Open discussion.
6:00 Reception—Sponsored by
Federated Cash Manage­
ment Systems, Pittsburgh,
7:00 Dinner.
9:00 Monte Carlo Lounge and Ca­







Thursday, April 26

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,
Federal Reserve Bank of St. Louis





Attorney-at-Law, Fargo.
“ Economic and Investment
Outlook and Environment” —
Ben Crabtree, CFA, vice
president-research, Dain
Bosworth, Minneapolis.
Luncheon—Sponsored by
Goldman Sachs, Chicago,
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,
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,
“ T r u s t i n g the ‘ R i g h t
Stuff’ ” - continued.

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
in branch admin­
Prior to join­
ing First Na­
tional, Mr. Ja­
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



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

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
$360,000, or 30 cents per share and, quarter loss to accompany this ob­ $ 2 , 2 4 9 , 7 3 5 ,
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.”
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
announced the promotion of 9.85%, compared with 9.98% in
schedule. He said it is designed to
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
First Interstate Bank of Casper
of the 1980s.
neros to senior
announced the promotion of
At year-end, Affiliated’s directors
Cisneros to senior escrow ofdeclared a quarterly dividend of 39
Formerly an
cents per common share, payable
Formerly an escrow officer, Ms.
March 2, the 53rd consecutive quar­ assistant vice
president, Ms.
has worked in that depart­
terly dividend paid by the company
six years and prior to that
since its founding in August, 1970.
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
higher than industry norms,’ ’ he
she worked ten years in bookkeeping. presidents of Stockmens Bank &
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

N o rthfor
s te rn B a n k e r , A p ril, 1984
Federal Reserve Bank of St. Louis









she has held the positions of custo­
mer service representative, commer­
cial note teller and installment loan

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 ,
and he has worked in Minneapolis,
Great Falls, and Havre with the
bank system and First Bank affili­

• Helena Staff Changes Told







Norwest Bank Helena recently
announced several changes and pro­
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
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
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
Ms. Flynn joined in 1979 as opera­
tions supervisor.
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
M rs. H eath
also has been
with the bank
since 1968, work-



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
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

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



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

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

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,

Supervisory Workshop To Be Offered




Tuesday, April 24
Listening/Communications. ^
Team Building.
Wednesday, April 25
Good Mornings/Coffee.
Participative Management.

Your Plan of Action.

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
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

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

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
Mr. Clark re­
ceived his law
degree from the
U n iv e rs ity o f
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

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
M a rth a
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
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
Formerly with IntraWest Bank of
^ Grand Junction, Mr. Peters’ bank­
ing experience has included senior
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
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,
joined William
Blair & Company as special
marketing con­
Mr. Caughey
headed the trust
departm ent of
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


Wilson and Patricia R. Richardson.
Mr. Wilson, control officer, joined
Central in 1982.
Ms. Richardson, officer in trust
operations, first joined in 1978.



Peter M. Sheedy, vice president
and cashier of
Garden of the
Gods Bank, Col­
orado Springs,
has been elected
to the bank’s
Mr. Sheedy
was one of the
bank’s organiz­
ing officers and
has held senior
management positions with several
banks in Illinois.

Named in Denver


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
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
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

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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
Federal Reserve Bank of St. Louis







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
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:

Federal Reserve Bank of St. Louis




-12:00 Convention registration (exhibitors &
-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.


N o r th w e s te r n B a n k e r, A p ril, 19 84


N eb raska N ew s







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).
Danny Gans entertainment.
Incoming president’s reception, Nebraska
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



“ New Expanded Bank Powers Panel’’ —repre­
sentatives from FDIC, Federal Reserve, Comp­
troller and Senate Banking Committee.


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.
Louise Mandrell Show.




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
Central Bank: William C. Tumelty,
vice president and Philip J. Randell,
assistant vice president.


N o r th w e s te r n B a n k e r, A p r il, 19 84
Federal Reserve Bank of St. Louis


Colorado National Bank: Charles
W. Kirk and Larry G. Matthes, vice
Denver National Bank: Steve
Sheridan, vice president.
First Interstate Bank: Robert
Sw artz and Kirk Reed, vice
United Bank of Denver: Darvy L.
Myers, vice president and Ronald D.
Edwards, assistant vice president.

Kansas City
Commerce Bank of Kansas City:
Ernest Yake, senior vice president
and Tom Jennings, assistant vice
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.
First National Bank: Gary Bieck,


The nam e is new, but the tradition
goes on. W e ’re the sam e people
William March

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

m ore than 40 years. N ow w e ’re the
M BU P rofessionals!

Micky Krupinsky

John Fleming

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
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


N eb raska N ew s

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


national bank

forw eFRASER
N o r th
s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis

24th & L Streets
Omaha, Nebraska 68107

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- ^
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
New York
The Chase Manhattan Bank:
Jesse W. Starr, second vice presi­
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
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,

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

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.)



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
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


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
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.
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
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
United States Life Credit Life Ins.,
Co., Schaumburg, IL: Robert Milinsky, field vice president, Scott Votava and Robert Meyerhoff, district

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-^

United States
^heck Book Company
Looks Forward to
Seeing You
M ay 2-4
During The
Nebraska Bankers
Association Annual

United States Check Book Company
In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800*228-9246
N o for
r th wFRASER
e s te r n B a n k e r, A p ril, 19 8 4
Federal Reserve Bank of St. Louis



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- £


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.
Gary Stevenson
Vice President
Correspondent Banking

712 - 277-0618



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:



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.


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.

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
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

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
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.
* * *

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
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
n ou n ce d th a t
Norwest Infor-



N o rfor
e s te r n B a n k e r, A p ril, 19 84
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-



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



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


Jim Flodine

Fred Kuehl

Gerry Tomka

Tom Jensen

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.
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


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
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.
* * *
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
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
Nelson, who managed the motor
bank since it’s opening in 1980.

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
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

N o rfor
e s te r n B a n k e r, A p ril, 19 84
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
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


(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.
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
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
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
Street, Chicago, IL 60606.
Telephone: 312/782-1442.
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


N eb raska N ew s

Banks with good
management will
be the winners”



o r t h w e ste r n


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
N ofor
r th wFRASER
e s te r n B a n k e r, A p ril, 1984
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
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
“ 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, *
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.
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
“ 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
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

“ 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


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
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


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


N ofor
r th w
e s te r n B a n k e r, A p ril, 19 84
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
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.”


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
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.
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
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


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.



Mr. Hahn joined First National
Lincoln in 1980. He is a native of
Auburn and attended the University
of Nebraska-Lincoln and Peru State

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

Steve Sutton
For Complete
Credit Insurance
Service . . .


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



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
r th w e s te r n B a n k e r A p r il 19 84
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.,


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N o r th w e s te r n B a n k e r, A p ril, 19 84


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N ofor
r th w
e s te r n B a n k e r, A p ril, 1984
Federal Reserve Bank of St. Louis


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
Tuesday, April 24
#A.M .




Welcome by Gary Cassabaum , CEO C onference
Committee chairman and
president and trust officer of
Taintor Savings Bank, New
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.
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
Federal Reserve Bank of St. Louis


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
• “ New Management Sys­
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
• “ 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.
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
• “ 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
Mr. Gronstal,
a former presi­
dent of the
Chamber, was
honored for his countless hours of
volunteer work to the civic, busi­
ness, educational, health, religious
and cultural segments of the com­

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

1984 Iowa Group Meetings

May 7
May 8
May 9
May 10
May 14
May 22
May 23
May 24

Des Moines
Iowa City
Council Bluffs
Fort Dodge
Clear Lake
N o r th w e s te r n B a n k e r, A p ril, 1984


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,
“ 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
“ 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:


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
Elected to the
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
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
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
N o for
r th wFRASER
e s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis



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
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

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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.
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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
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.

Federal Reserve Bank of St. Louis






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

Vernon Hoskinson
Vice President and Manager

(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.
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.


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
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


DigitizedN for
o r th w e s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis


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
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

Over-line loan participation
Depository for excess funds
Bond investment counseling
Domestic and foreign wire
transfer of funds
Currency and silver procurement
ACH (Automatic Clearing House
Cash letters
Custom HR-10s
Keogh prototypes
Corporate profit sharing plans
Tax shelters
Unincorporated pension plans

Bernie Miller,
Correspondent Banker

319/ 582-1841


AmericanWT rust 0 Savings Danl^
The Danl^qf Opportunity
Town Clock Plaza, Dubuque, Iowa 52001 • 319/582-1841
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


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
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 .









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Fine Used Autos Also Available
DigitizedN ofor
w e s te r n B a n k e r, A p ril, 1984
Federal Reserve Bank of St. Louis

Adele Voss, appointed personaL
banking officer, Town Clock Plaza,
started with the bank full-time in
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
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.





• 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.)
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


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
was at Peoples Trust &
nard K. Huston
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
from Iowa State University in
p r e s id e n t
business and farm man­
charge of agri­
agement, Mr. Mourer farmed at
cultural lending,
Richland before joining Union Bank
and Kirk Mourer
an ag lender in August of last
to ag loan of­
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



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#
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
Department of
Banking as a field examiner, before
joining the Green Mountain bank.
DigitizedN for
w e s te rn B a n k e r, A p ril, 1984
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.


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


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
Mr. Geis most recently managed
a branch office for the Federal Land
Bank of Marshalltown, in Iowa


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

LeMars Additions Announced

Anyone Responsible
ForA Half Million
Dollars Shouldn't Have

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

is a full
time job.
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.

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
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

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
“ 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
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


nnouncem ent

DigitizedN for
o r thFRASER
w e s te r n B a n k e r, A p ril, 19 84
Federal Reserve Bank of St. Louis

Judy Gilbert has accepted the
position of vice president/sales with
Bank & Trust.
She will direct
the bank’s sales
and business de­
velopment pro­
gram, with new
accounts, sales
and the investor
center reporting
to her.
Before joining
the bank, she was with Greater Des
Moines Chamber of Commerce Fede­
ration as vice president of govern­
mental affairs.
* * *


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
he has worked
since 1977. He
most recently served as bank exanimation specialist.




* * *
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



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

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


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
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,
with concentra­
tion in marketing, industrial rela­
tions and human resources.
* * *
Norwest Bank Des Moines, N.A.
recently announced the following
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.



Digitized Nfor
o r th
w e s te r n B a n k e r, A p ril, 1984
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
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
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



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

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.


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.
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.,

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

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

Joins Waterloo Bank
Randy R. Fick has joined Peoples
Bank and Trust Company, Waterloo,
as assistant vice
president in the
commercial loan
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
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


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

(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
w e s te r n B a n k e r A p ril, 19 84
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



Index of
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..............................................


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


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



! if ’

1; û .,5


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 /

1130 Hampton Avenue
St. Louis. MO 63139
Federal Reserve Bank of St. Louis


“It’s 1984

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.
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


Federal Reserve Bank of St. Louis