Full text of The Northwestern Banker : April 1986, 93rd Year, No. 1471

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

APRIL
1986

Case of the

Defendant
Director
—Part I

Special:

Bank Building
and Remodeling
Convention Programs:

Nebraska
Bankers
Association
South Dakota

Bankers
Association
IBAA Elects 1986-87 Officers

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

He's Stan Farmer, your M NB Correspondent banker.
MNB's Stan Farmer means business — more
business for you and your bank. He can help
you say "yes" to your valuable bank
customers when their financial need exceeds
your ability to fulfill it.
Stan has the knowledge and experience to
work with you and your customer on
agricultural loans, or commercial and real
estate loans. He w ill also consult with you on
your personal plans for bank ownership.
He means business when it comes to
assisting with your day-to-day cash
management needs, as well. In addition to
providing standard services — such as federal
fund transactions, short-term investments and
check clearing — Stan and our MNB

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Correspondent banking staff can help you
deal with critical cash transfer deadlines,
complicated collection requirements,
international transactions and difficult check
clearing problems. Additionally, Stan w ill
work with you to provide operational
innovations that prepare your bank for any
service need.
At MNB, we're dedicated to bringing
together the resources, experience and
services you want in a correspondent bank.
That's MNB's commitment to productivity, so
talk to Stan, soon. When he says he can help
your bank's business grow, he means
business. Call Stan at 319/398-4320 or
1-800-332-5991, toll free, today.

Merchants National Bank m

C edar Rapids, Iowa 52401

Member F.D.I.C.

A BANKS OF IOWA BANK

STERN
APRIL 1986

93rd Year

•

No. 1471

MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION

to.

OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

ON THE COVER
1986-87 I BAA Officers are, left: Pres.—Charles T. Doyle, c.e.o., Gulf Natl., Texas
City, Tex.; Pres.-Elect—Thomas H. Olson, pres., Llsco St., Lisco, Nebr.; PastPres.— B.F. “Chip” Backlund, pres., Bartonville Bank, Peoria, III.; Treas.— Merle L.
Graser, chmn., First Natl., Venice, Fla.; Vice Pres.—J.R. Nunn, pres., Citizens
Natl., Tucumcari, N.M., and Exec. Vice Pres.— Kenneth A. Guenther, Washington,
D.C. N o r t h w e s t e r n B a n k e r personal report with pictures starts on page 26.

FEATURES

Financial Plaza broadens service

Bank Building concept offers commercial cross-selling

50-year look at bank design

Kirk Gross Co. reviews half-century of service to banks

River boat heritage

New bank reflects Glen Suiter’s love affair with Mississippi

Case of the Defendant Director— Part I

Attorneys look at “Legal Sources of Director Liability”

Commercial banking is strong

Lending, correspondent banking to remain viable
CONVENTION SECTIONS
38 South Dakota Convention Program
42 You Will See Them at South Dakota Convention
49 Nebraska Convention Program
52 You Will See Them at Nebraska Convention
54 NBA President Mel Adams Interview
56 NBA Executive Councilmen Predict ‘Bottoming Out’ of Ag Crisis
DEPARTMENTS
6
30
33
34
43

44
46
46
47
60

Calendar
Illinois
Minnesota
Twin Cities
Wisconsin

63
64
67
74
78

North Dakota
Wyoming
Montana
Colorado
Omaha

Lincoln
Ag Outlook
Iowa
Des Moines
Index of Advertisers

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

You need a rapid overview of
the options available to you,
supported with hard cost
information. You need to know
that the building designers
know your kind of business.
Know what it requires today...
and even more importantly,
know what it is likely
to require in the future.
You need to know that same
expertise will be with you
through the entire building
process. Bringing your ideas
into reality. Doing the job
right. Finishing it on time...
and within budget.

Bank Building
C orporation

Phone (515) 244-8163

Associate Editors
Melinda Sauers

Diane Nelson

No. 1471 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

There are many viable
approaches to designing
a building. Only one is the
optimal solution to your
specific requirements.
To find that optimal solution,
you must have full opportunity
to investigate your alternatives..
before making a financial
commitment.

' j

NORTHWESTERN BANKER
1535 Linden Street, Suite 201, Des Moines, Iowa 50309

First th e P e a c e o f M in d ...
th en th e Financial
C om m itm ent

1130 Hampton Avenue
St. Louis, MO 63139
Call Tom Spalding at
1- 8 0 0 - 3 2 5 -9 5 7 3

4
First InformationBank
Comes to Chicago
The First InformationBank, a
new banking and financial informa*

LUO)

O oc
< LÜ

(/) H -

C /)Z
LULU
“

O
Milbank, SD
Triangular free-standing
display.

Bethany, MO
Corner mounted
two-faced.

THE NEW First Information Banks at First
National Bank of Chicago facilities provide
customers with valuable financial informa
tion on various retirement investment op
tions.

tion service for consumers, has been
installed in several sites in down- £
town Chicago by The First National
Bank of Chicago. The first eight
First InformationBanks, displayed
in easily-identifiable kiosks, are
available at First Chicago banking £
facilities. Selected off-site locations,
throughout the Chicago area, will be
added soon. Consumers can get ans
wers to personal retirement plan
ning questions, track the potential ^
growth of various retirement invest
ment vehicles and even complete the
forms needed to open an individual
retirement account (IRA).
Leo F. Mullin, executive vice 0
president for personal banking at
First Chicago, reports the highly in
teractive nature of the First Infor
mationBank makes it extremely
easy to use. Prompted by television #
screen displays and a narrator, con
sumers select exactly the informa
tion that interests them simply by
touching the screen. First Informa
tionBank users are also able to key #
in details to receive a printout that
personalizes their financial informa
tion.

Farmers Mutual Hail Reports Another
Outstanding Year for Iowa Company
HE YEAR of 1985 was another
T
great year for Farmers Mutual
Hail Insurance Company of Iowa in
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 —

DAKTRONICS
INC.

DAKTRONICS, INC. Box 128
Brookings, SD 57006
Ph. 605/692-6145
TOLL FREE 800/843-9879
(exc. AK, HI and SD)
TELEX 29-5013 DAKTRONCS BKNG

Banker, April, 1986
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

writing crop hail insurance, reported
David A. Rutledge, president, at
headquarters in Des Moines.
Mr. Rutledge stated that the com
pany wrote over $45 million in pre
miums during 1985. The company
now has over $1,400,000,000 of in
surance-in-force. In 1985, the com
pany’s reported claims exceeded
17,500 which was an increase from
1984.
Farmers Mutual Hail has in
creased its total assets over $10 mil
lion the past year and now has over
$108 million. In addition, its surplus
as regards to policyholders was in
creased over $5 million and is now
over $68 million. For the past four
years, the company’s total assets
have increased $24 million and sur
plus as regards to policyholders $19
million.
The company’s loss experience
over the last four years has enabled
it to reduce its rates, which has al
lowed the company to provide even

greater coverage to policyholders.
For the past 25 consecutive years,
the company has earned the highest
possible rating by A.M. Best of A+. £
Farmers Mutual Hail will write
crop hail insurance in Missouri
starting in 1986. The company also
writes in 11 other midwestern states
- Colorado, Illinois, Indiana, Iowa, £
Michigan, Minnesota, Nebraska,
North Dakota, Ohio, South Dakota
and Wisconsin.
Mr. Rutledge was re-elected presi
dent at the company’s 93rd annual 0
meeting in Des Moines. G.W. (Bill)
Drey and Foster Rutledge were re
elected to the Board of Directors.
Other officers re-elected are:
Perry Rutledge, senior vice presi
dent and secretary; Dale DenHartog, senior vice president and trea
surer; Donald D. Bockelman, senior
vice president; Earl Rae and Russell
S. Cross, vice presidents; Michael 0
Rutledge, assistant secretary; Bill
Rutledge, G.W. (Bill) Drey, Albert
B. Carter (assistant treasurer), and
Donald R. Duwelius, all assistant
vice presidents.
#

It is the one essential element in every
successful financial relationship.
Trust is confidence earned.
It is shared involvement.
It grows in an environment of mutual
understanding, from promises kept,
from the integrity and perseverance
behind every difficult task done well.

■

The Bank Building Corporation
No-Risk Agreement is a statement
of mutual trust. It is a statement of
our faith in our ability to meet
problems with solutions.
No Risk means ju st that.
No surprises. Promises kept
It is the stuff from which
trust is made.

in
ï '•;

Bank Building
Corporation
1130 Hampton Avenue
St. Louis, MO 63139
Call Tom Spalding at
1- 800 - 325-9573

https://fraser.stlouisfed.org
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
1986

Apr. 13-16—Conference of State Bank Su
pervisors 1986 Annual Convention, Co
lonial Williamsburg, Va.
Apr. 13-16—ABA National Retail Banking
Conference, Hyatt Regency, New Orleans.
Apr. 14-17— BAI Cost Accounting Work
shop, Kansas City, Mo.
Apr. 21-23— BAI Introduction to Commer
cial Loan Operations, Chicago, III.
Apr. 24-25—BAI Advanced Bank Taxation
Conference, Denver, Colo.
Apr. 27-30— BMA Research
& Planning
Conference, Hilton Hotel, Orlando, Fla.
Apr. 27-30— BAI Spring Forum for Commu
nity Bank Presidents, Hilton Head, S.C.
Apr. 27-May 2— BMA School of Bank Mar
keting Management and Strategic Plan
ning, College Park, Md.
May 4-7— BMA Advertising Conference,
Westin Hotel, Copley Place, Boston.
May 8-9— RMA Loan Participations and Pur
chases Workshop, Park Hyatt Chicago,
III.
May 11-14— RMA Financial Statement An
alysis Workshop, The Sheraton Plaza,
Chicago.
May 11-14—ABA National Operations &
Automation Conference, Convention
Center, New Orleans.
May 11-14— BMA Public Relations/Communications Conference, Knickerbocker
Hotel, Chicago.
May 11-14— BMA Corporate Marketing Con
ference, Marriott Marguis, New York.
May 12-15— BAI Cost Accounting Work
shop, Kansas City, Mo.
May 14-16— BAI Management Development
Skills for the Auditor, St. Louis.
May 25-30— BMA Essentials of Bank Mar
keting School, University of Colorado,
Boulder.
May 25-June 6—BMA School of Trust and
Personal Financial Services Sales and
Marketing, University of Colorado, Boul
der.
May 25-June 6— BMA School of Bank Mar
keting, University of Colorado, Boulder.
June 1-4—ABA Risk & Insurance Manage
ment In Banking Seminar, Denver Mar
riott Southeast.
June 1-6— BMA Advanced School of Bank
Marketing, Boulder, Colo.
June 8-12—ABA National Corporate Trust
Workshop, Hyatt Regency, Crystal City,
Arlington, Va.
June 9-10— BAI Making the Buy/Sell Deci
sion, Colorado Springs, Colo.
June 13-19—ABA National School of Bank
Card Management, University of Okla
homa, Norman, Okla.
Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

June 15-27—ABA Stonier Graduate School
of Banking, University of Delaware,
Newark.
June 16-20— BAI Asset/Liability and Finan
cial Management, Chicago.
June 22-27— BMA School of Bank Market
ing Colloquium, University of Colorado,
Boulder.
June 24-27— BAI Cost Accounting Work
shop, Minneapolis, Minn.
June 28-July 2—ABA National AIB Confer
ence, Marriott-Copley Place, Boston.
July 6-11—ABA National Agricultural Bank
Management School, Iowa State Univer
sity, Ames, Iowa.
July 14-18— KBA, NBA and Iowa Trust
Assoc. School of Trust and Financial
Planning, Holiday Inn, Manhattan, Kan.
Aug. 10-15—Central States Conference of
Bankers Associations and the University
of Wisconsin - Post Graduate Program/
Banking Executive Program, University of
Wisconsin, Madison, Wis.
Aug. 10-23—Central States Conference of
Bankers Associations and the University
of Wisconsin-Madison Graduate School
of Banking/Banking School, University of
Wisconsin, Madison, Wis.
Sept. 7-10—ABA National Bank Card Con
ference, Loew’s Anatole, Dallas, Tex.
Sept. 14-17— NABW National Convention,
Ceasars Palace, Las Vegas, Nevada.
Sept. 21-24—ABA National Conference on
Human Resources, Fairmont Hotel, San
Francisco, Calif.
Sept. 21-24— BMA Annual Convention,
Washington Hilton, Washington, D.C.
Sept. 21-26— KBA, NBA Professional Devel
opment Program Intermediate School of
Banking, Holiday Inn, Manhattan, Kan.
Sept. 22-26— BAI Basic Bank Auditing Con
ference, Minneapolis, Minn.
Sept. 28-Oct. 1— RMA Annual Fall Confer
ence, Shamrock Hilton, Houston, Tex.
Oct. 24-29—ABA Annual Convention, San
Francisco, Calif.
Nov. 16-19— BMA Trust & Personal Finan
cial Services Marketing Conference, New
Orleans Sheraton.
Nov. 16-19—ABA National Ag Bankers Con
ference, Opryland Hotel, Nashville.
Nov. 16-19— BAI ATM 9, The Electronic
Delivery Systems Conference, Los
Angeles, Calif.
Nov. 17-21 — BMA Southwestern Essentials
of Bank Marketing School, University of
Houston, Houston, Tex.

State Conventions & Schools
Colorado:
Apr. 8—CBA Insurance Seminar, Stouffer
Concourse Hotel, Denver.
Apr. 20-22—CBA Ag Banking Seminar, Wes
tin Hotel Tabor Center, Denver.
May 8—CBA/BAI Annual Spring Conference,
Denver.
May 9—CBA Legal & Compliance Spring,
Seminar, Denver.
May 14-15—CBA Investment & Funds Man
agement Seminar, Denver.
May 15-17— NABW State Conference, Estes
Park.

June 4-7—CBA Annual Convention, Broad
moor Hotel, Colorado Springs.
Oct. 6-7—Asset/Liability Mgmt Seminar, Den- ®
ver.
Illinois:
Apr. 14-17— BAI Management Potential As
sessment, Rolling Meadows.
May 1-2— BAI Selecting, Installing, and M an-®
aging an In-House Computer System, Chi
cago.
May 2-4— NABW State Conference, Indian
Lakes, Bloomingdale.
May 19-21— BAI Operational Considerations
in Mergers and Acquisitions, Chicago.
#
May 19-30—IBA Illinois Bankers School, SIUCarbondale.
June 1-6— IBA Agricultural Lending School,
ISU-Normal.
June 11-13— IBA Convention, Adams Mark
Plaza, St. Louis.
#
June 22-27—IBA Trust School, ISU-Normal.
July 20-25—IBA Consumer Lending School,
Bradley University, Peoria.
July 27-Aug. 1— IBA Commercial Lending
School, Bardley University, Peoria.
Aug. 10-15— IBA Bank Compliance School,#
DePaul University, Chicago.
Aug. 17-22—IBA Internal Auditing School,
DePaul University, Chicago.
Sept. 16-17— IBAA Commodity Marketing
Seminar, Chicago.

•

Iowa:
Apr. 12-16— IBA Washington D.C. Trip, J.W.
Marriott.
Apr. 28-29— IBA CEO Conference, Savery,
Des Moines.
May 5-6— IBAA Ag Lender I Workshop,#
Des Moines.
May 5— IBA Group 4 Meeting, Dubuque.
May 6— IBA Group 7 Meeting, Waterloo.
May 7— IBA Group 8 Meeting, Iowa City.
May 8— IBA Group 6 Meeting, Des Moines.
May 13-16— NABW State Conference, H o li#
day Inn, Iowa City.
May 19—IBA Group 5 Meeting, Council
Bluffs.
May 20— IBA Group 2 Meeting, Fort Dodge.
May 21— IBA Group 12 Meeting, Okoboji.
May 22— IBA Group 3 Meeting, Clear Lake. #
June 5-6— IBAA Internal Auditing I Seminar,
Des Moines.
June 5-6—IYBA Annual Conference, location
TBA.
June 9-20—IBA Ag Credit School, Ames.
June 22-27—IBA Iowa School of Banking#
Iowa City.
July 24-26—IIB Annual Meeting & Conven
tion, The New Inn, Okoboji.
Sept. 14-16— IBA 100th Annual Convention,
Convention Center, Des Moines.

Minnesota:
Apr. 9— MBA Insurance Risk Management
Seminar, Radisson Inn, Plymouth.
Apr. 22-24— MBA Bank Directors Seminar,
North Mankato, Bloomington, Brainerd
respectively.
#
Apr. 27-May 2— MBA/ABA Executive Devel
opment Program, Hyatt Regency, Min
neapolis.
Apr. 30-May 2— NABW State Conference,
Minneapolis Plaza Hotel, Minneapolis.
May 14— MBA Bank Holding Company#
Seminar, Radisson Inn, Plymouth.
June 2-4— MBA 96th Annual Convention,

CALENDAR.. .
(Turn to page 8, please)

Some things have to change.
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it shows. . . in our ability to pinpoint
and analyze your problems and oppor
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the

resources of a billion dollar bank to help
you meet the challenges of today, and
tomorrow.
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
Minneapolis will never put aside our oldest
promise to our customers: professional
service with a personal difference.

Marquette Bank
Minneapolis m
^ poc
Correspondent Services Division

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

CALENDAR...
(Continued from page 6)
Radisson St. Paul Hotel.
June 9-10— IBAA Asset/Llability Mgmt
Workshop, Minneapolis.
June 11—IBAA In-House Computer Semi
nar, Minneapolis.
June 12-13— IBAA Ag Lender II Workshop,
Minneapolis.
June 22-27— Minnesota School of Banking,
St. Olaf College, Northfield.
July 20-25— MBA Midwest Banking Insti
tute, University of Minnesota, Morris.
Aug. 10-15— MBA Commercial Lending
School, St. Olaf College, Northfield.
Montana:
Apr. 17-18—MBA Marketing Conference,
Sheraton Hotel, Billings.
Apr. 30-May 2—MBA Retail Bankers Confer
ence, Heritage Inn, Great Falls.
May 6—MBA White House Conference on
Small Business, Billings.
May 8-9—MBA Trust Conference, Sheraton
Hotel, Billings.
May 15-16—MBA Commercial Bankers Con
ference, Holiday Inn, Billings.
June 5-7— NABW State Conference, Grouse
Mountain Lodge, Whitefish.
June 12-13—MBA Real Estate Bankers Con
ference, Heritage Inn, Great Falls.
June 24-27—MBA Convention, Outlaw Inn,
Kalispell.
Nebraska:
Apr. 8-17—NBA Head Teller/Teller Staff Con
ference, locations around the state.
Apr. 9-12—NABW State Conference, Holiday

Let’s talk
about

Inn Hotel, North Platte.
May 15-17— NBA 89th Annual Convention,
Red Lion Inn, Omaha.
May 22-23— IBAA Ag Lender I Workshop,
Omaha.
June 12—NBA Presidents Golf Tournament,
Lochland Country Club, Hastings.
North Dakota:
Apr. 17-18— NDBA Ag Credit Conference,
Holiday Inn, Jamestown.
Apr. 23-25— NABW State Conference,
Doublewood Inn, Fargo.
Apr. 28-29— NDBA/SDBA/M BA Trust Confer
ence, Sheraton Galleria, Bismarck.
May 18-23— North Dakota School of Bank
ing, University of North Dakota, Grand
Forks.
June 9-10— NDBA Annual Convention, Holi
day Inn, Fargo.
South Dakota:
Apr. 9-10—SDBA Ag Credit Conference,
Kings Inn Convention Center, Pierre.
Apr. 12—SDBA Teller/Staff Seminar, Ramada Inn, Sioux Falls.
May 11-13—SDBA Annual Convention, Ramada Inn, Sioux Falls.
Sept. 15—SDBA Group II Meeting, Sheraton
Inn, Aberdeen.
Sept. 16—SDBA Group IV Meeting, Wrang
ler Motor Inn, Mobridge.
Sept. 17—SDBA Group V Meeting, Rapid
City.
Sept. 18—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.

cap..

The Problem: A $200 million national
bank was in real trouble. Return on assets
had dropped to less than .60% and
the capital-to-assets ratio stood at 4.8%.
The president had been fired and other
key managers had fled the scene.
Furthermore, subordinate debentures
equal to nearly 30% of the bank’ s
capital account were coming due the
following year. The bank could neither
afford to pay off the debentures nor to
suffer a huge drop in capital. The
Comptroller of the Currency issued a
stern warning to the bank’ s new
management to ward off what appeared
to be imminent doom. The new president,
quite apprehensive, called Swords
Associates.

Our Approach: Within a week we went
into the bank, met with top management
and examined the operations Then we

came back home to work out a viable
solution to this rather volatile situation.
We recommended that the bank offer to
exchange variable rate preferred stock
for the soon to come due debentures,
and that an austerity program be
launched immediately to enhance
profitability. They did the latter, and
working closely with the bank’ s counsel
and accountants, we put together a
prospectus, met with the Comptroller on
the d ie ts behalf and sold the exchange
idea to debenture holders.

The Result: Today the bank has fully
recovered. R0A is running at a very
respectable 1.26% and the capital- toassets ratio is up to 6.8%. After
following our advice on operations the
bank has lifted its austerity program
and is now viably competing for business
in its community.

SWORDS ASSOCIATES. INC.
P R O F E S S IO N A L B A N K IN G C O N SU LT A N T S

4900 OAK

•

SUITE 301

Banker, April, 1986
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

KANSAS CITY, MISSOURI

64112

•

(816)753-7440

Wisconsin:
Apr. 16-17—WBA Ag Bankers Conference,|
Holiday Inn Holidome, Stevens Point.
1
May 14-15—WBA Bank Marketing Confer
ence, The Abbey Resort, Fontana.
June 1-6—WBA General Banking School,
St. Norbert College, De Pere.
June 8-14—WBA Commercial Lending.
School, St. Norbert College, De Pere.
"
June 16-18—WBA Convention, Embassy
Suites, Green Bay.
July 9-11— Upper Midwest Agricultural
Credit Council (UMACC) Conference, Hol
iday Inn, Wisconsin Dells.
July 14-15— IBAA Internal Auditing I Semi-*
nar, Madison.
Aug. 3-9—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 10-15—WBA Basic Banking School,
St. Norbert College, De Pere.
.
Aug. 10-23—Graduate School of Banking"
University of Wisconsin, Madison.

Wyoming:
Apr. 10—WBA Asset-Liability/Strateglc Plan
ning Workshop, Casper.
June 15-17—WBA Annual Convention, Jack-#
son Lake Lodge, Moran.

Dan Buser Joins Doremus <
Doremus & Company has ap
pointed Daniel S. Buser, Jr. to the
position of vice president and gen
eral manager of its Washington,
D.C. office. For the past eight years, t
Mr. Buser served as director of pub
lic relations at the American Bank
ers Association.
Prior to joining the ABA, where
he twice received the Public Rela-'
tions Society of America’s Silver
Anvil Award, Mr. Buser served as a
communications consultant to the
Federal Disaster Assistance Admin
istration and as head of communica
tions for the nation’s bicentennial
celebration. He was Secretary of
Commerce for the Commonwealth of
Pennsylvania and press secretary,
for two presidential candidates, two1
governors and one U.S. Senator.

ABA Expands Executive
•
Development Program
The 1986 American Bankers As
sociation Community Bank Execu
tive Development Program will in-<||
troduce new sessions on increasing
productivity and improving media
relations and is offering expanded
microcomputer training.
The 1986 schedule of sessions i s #
April 27 - May 2, Minneapolis,
Hyatt Regency; June 1-6, Williams
burg, Va., Hospitality House; Sep
tember 14-19, Dallas, H yatt Re
gency.
•

H995 will put
the banking industry
on your desktop.
Your contacts with the banking industry can be
more convenient and efficient than ever with your
very own copy of The Desktop Bank Directory™
close at hand.
Save money. At $49.95 per set (two volumes),
it’s the biggest bargain in bank information.
Inexpensive enough to have copies for the whole
department, board or sales force— and there are
quantity discounts for multiple purchases.
Save time. No more searching for bank
information. No more borrowing a co-worker’s
directory. No more hassles with telephone
operators or long-distance information. Just keep
this book on your desktop.
Save effort. You don’t have to wade through extra
data you don’t need, or compare two or three
sources to make sure you’ve got what you do need.
It’s all here— more than 15,000 head offices,
45,000 branches, addresses, phone numbers,
routing numbers, contact names, financials,
correspondents and more. In two 5 Vi" x 8" volumes
that are lightweight and easy to handle.
Stay up-to-date. We’ll do the footwork to keep
track of the thousands of changes in banking every
year. All you have to do is
come to us for updated
copies.
Order today. To be sure
you can obtain copies from
our 1986 printing, use the
convenient form to order, or
give us a call. The banking
industry can be on your
desktop in no time.
Actual page size 514" x 8"
two vinyl-bound volumes
in a handsome slipcase.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NEW!
THE DESKTOP
BANK DIRECTORY ™your compact, affordable
guide to U.S. banking.
The Desktop Bank Directory ™
Rand McNally & Co.
P.O. Box 7600 Chicago, IL 60680
(312) 673-9100
Please send me:
_________ Copies o f the 1986 edition on a standing order basis
at $49.95 each plus tax, shipping and handling.
I understand that by signing for this service I will
automatically receive updated editions each year
at the then-current price.
_________ Copies on a single issue basis at $49.95 each plus tax,
shipping and handling. I understand that I will only
receive the 1986 edition.
__________ Please call me about quantity discounts for more than fifteen copies.
No need to send money now! W e’ll bill you after we ship your books. Invoices
include applicable tax, shipping and handling charges.
Company_____________________________________________________________
Name_____________________________________ T itle______________________
Address______________________________________________________________
City__________________________ S tate___________ Z ip ---------------------------The following will activate your service:
Signature_____________________________________________________________
D ate_____________________________________Phone 1______ l_______________
NB86

Less cost.
Less trouble

More value.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

That’s what it means
• to do business with Deluxe.

•

Being the leader in
any industry usually means
having developed the most
efficient path from raw
materials to finished goods.
That’s what Deluxe Check
Printers, Inc. has done.
From the paper mill to
your customer’s mailbox, no
one delivers a comparable
product line for less than
Deluxe. One product, maybe.
Two, perhaps. But your cus
tomer base needs more than
one or two products. Add up
the whole mix, and no one can
match Deluxe atthe bottom line.
No one.

Save as much in
soft costs as you
• do in hard.
All the support you
need for a successful check
• program is available from
Deluxe. Cohesive marketing
aids that sell your services.

• a DELUXE
Check Printers, Inc.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Targeted training for your
personnel. Detailed revenue
reporting—and forecasting.
Options for billing and order
entry. Everything it takes
to keep your check program
running smoothly.
And profitably.
It’s all yours for the
asking. Which eliminates a lot
of internal costs for you.
As does the quality of
the documents we provide.
Deluxe offers the lowest
documented reject rate in the
industry-less than 1/10 of
one percent. A statistic that
translates into less hassle
and less expense for you.
All of which is simply to
recognize what thousands
of institutions across the
country already know: that
Deluxe provides the greatest
total value in the check
printing industry today
Value. It’s what you get
when you do business with
Deluxe. And nothing less.

The difference
between a printer
and a partner.

New Rand McNally & Company
Docusystems Division Formed
AND MCNALLY & Company
R
has announced the creation of
the “Rand McNally DocuSystems
Group” to develop and market spe
cialty forms and documents and the
computer systems to process them
for the transportation and financial
institution markets.
The new division merges the com
pany’s Ticket and Financial Sys
tems Divisions plus PC Systems,
Inc., a Northbrook, 111., firm special
izing in high technology product de
velopment and personal computer
applications for specific business
problems. PC Systems assets were
acquired by Rand McNally.
“ Rand McNally DocuSystems
Group offers one-stop shopping for
businesses requiring specialty docu
ments and the computer capabilities
to process them. We print the
forms, distribute them, process
them at one of our facilities when
they are returned, and prepare sta
tus reports for the client who may
never have to handle a single form,”

Thomas J. Breen, DocuSystems
president and former vice president
of the Ticket Division said.
Patrick J. Sottile is the DocuSystems Group’s marketing and sales
vice president. He previously held
that position within the Financial
Systems Division. PC Systems
founder Robert Copella has been
named the manager of the new
group’s product services depart
ment.
The new group will allow for eco
nomies of scale when developing
new products and more efficient use
of present production facilities with
correspondingly competitive prices,
according to Mr. Breen.
In addition to developing new pro
ducts, the Rand McNally DocuSystems Group will continue to offer
the same products and services pre
viously available from the separate
divisions. Over the years the two di
visions have made Rand McNally a
leader in the field of so-called “ smart
docum ents,” according to Mr.

Breen. (“Smart documents” refer to
specialized pre-printed forms such
as airline tickets or check loan let
ters that are systematically pro
cessed —usually with a computer —
after they are used.)
Examples of the types of products
to be produced by the new group in
clude the recently introduced “ ImageGard” and “SafetyChip” credit
card slips (March issue).
The Financial Systems Division
of the DocuSystems Group pro
duces loan coupon books (used for
mortgage and car payments), direct
mail and marketing consulting pro
grams for banks and savings and
loan clients along with a variety of
specialized remittance forms for
IRAs, credit card checks, and
Christmas club programs.
In addition to being the world’s
largest producer of airline tickets,
the DocuSystems Group’s Ticket
Division produces all Amtrak tick
ets, the magnetic stripe cards used
»by San Francisco’s BART system
and the Washington D.C. Metro, the
Triborough New York toll script
booklets, and credit card security
slips.

1985
ANNUAL STATEM ENT
LIABILITIES AND SURPLUS

ADMITTED ASSETS

...........

2 3 2 3 Grand Avenue • Des Moines, Iowa 5 0 3 1 2
5 1 5 -2 8 2 -9 1 0 4

$ 4 ,6 0 7 ,3 0 1

Losses and Loss Expense

$ 2 1 ,8 2 7 ,9 1 8

State, County &
Municipal
7 3 ,5 7 8 ,8 8 8

C ontingent Commissions

3 ,7 8 5 ,9 4 4

Government

FARMERS MUTUAL
HAIL REMAINS STRONG

Reserves for:

Bonds: (Amortized)

Continued growth has increased total
assets and surplus to FMH policyholders.
All Others

Ten years ago, our Company's insurance in
force totaled $881 million with total
assets of $48 million and surplus totaling
just over $29 million.
In 1985, our liability increased to
$1,400,000,000, with total assets and
surplus to policyholders, more than doubl
ing. For the past 25 years our financial
stability has earned the highest possible
rating by A.M. Best..."A + " .

1 6 ,4 5 0 ,1 3 7

Stocks:
(Market-N.A.I.C.)
Preferred
Common

$ 9 4 ,6 3 6 ,3 2 6

Taxes (Other than Federal Income)

6 9 ,3 0 0
8 9 5 ,9 4 6

7 ,7 8 5 ,8 9 5
9 6 5 ,2 4 6
Treaties

Real Estate-Home O ffice
Building

Agents Balances & Reinsurance
Receivables

8 ,7 0 7 ,9 8 4

Interest Due and Accrued

1 ,9 2 4 ,2 8 7

All Other

David A. Rutledge
President

TOTAL ADMITTED ASSETS

9 4 0 ,4 4 6

TOTAL LIABILITIES

$ 4 0 ,3 6 3 ,7 4 8

Surplus as Regards Policyholders

$ 6 8 ,2 6 5 ,1 13

8 1 8 ,3 0 9

$ 1 0 8 ,6 2 8 ,8 6 1

TOTAL LIABILITIES AND SURPLUS

DAVID A. RUTLEDGE, President
DALE DEN HARTOG, Sr. Vice President & Treasurer
PERRY RUTLEDGE, Sr. Vice President & Secretary

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4 ,3 9 7 ,0 5 0

5 4 4 ,2 1 9
All Other

Farmers Mutual Hail represents sound
management, quality sales and service in
Crop Hail, Reinsurance and Poultry lines.

8 8 8 ,2 3 8

1 ,0 3 2 ,4 9 0
Reinsurance Balances Payable

Cash and Bank Deposits

7 3 8 ,2 5 7

$ 1 0 8 ,6 2 8 ,8 6 1

IBAA Announces Ambitious
Menu of Seminars/Workshops
An ambitious new menu of educa
tional programs has been unveiled
by the Independent Bankers Asso
ciation of America in its “ 1986 Seminar/Workshop Calendar.”
The IBAA-sponsored seminars
and workshops include a week-long
program for senior bank officers at
the prestigious Wharton School of
the University of Pennsylvania, one
of the nation’s leading institutions
in banking research. Other seminar/
workshops focus on the one-bank
holding company, asset/liability
management, internal auditing and
in-house computers.
IBAA also is sponsoring work
shops on agricultural lending I and
II and is co-sponsoring a commodity
marketing seminar with the Chicago
Mercantile Exchange.
In-depth course descriptions,
dates, registration fees and atten
dance limits for each seminar are in
cluded in the seminar/workshop
calendar. For a free copy of the
“ 1986 Seminar/Workshop Calen
dar” write to David Johnson,
IBAA, P.O. Box 267, Sauk Centre,
MN 56378.
United Missouri Announces
Series of Promotions
A number of promotions have
been announced by United Missouri
Bank of Kansas City, N.A.
At United Missouri Mortgage
Company, which became a whollyowned subsidiary in 1981, R. Crosby
Kemper has been elected chairman
and CEO. He holds a similar posi
tion with the parent United Mis
souri Bancshares, Inc., and is chair
man of UMB. Harold Hatch was
named president and COO. James
Hall is corporate secretary. Malcolm
S. Aslin, president and CEO of
UMB, is newly-elected to the Mort
gage Company board.
At United Missouri Bank of Kan
sas City, these promotions were an
nounced:
Gary L. Lasche, C.P.A., to senior
vice president and assistant comp
troller for the bank and the holding
company, with responsibility for
regulatory and financial reporting.
He moved from Des Moines in 1983
to join United Missouri.
Promoted to vice presidents are:
G. Hall Harsh, manager of the Plaza
facility; Mary S. McDonald, cash op

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

erations division of the operations
department; Douglas J. Byerly,
manager of the retail credit division,
and Robert L. Webb, operations de
partment.
New assistant vice presidents are:
Kevin D. Powers, collection divi
sion; Mary Jane Margheim, interna
tional division, and Billy Ray Smith,
discount and collateral division.
New assistant cashiers are: Debra
L. Chandler, installment loan divi
sion; Paula Meyer, assistant depart
ment manager in the retail credit
division; Joyce C. Weninger, train
ing coordinator, and Kenneth W.

Hicks, assistant department man
ager in the collection division.
Other promotions include: Gino
R. Zian and Melvin Frankenstein to
operations officers; Clarence D.
Refer, systems and programming of
ficer; Gilbert Hill, funds manage
ment officer, and Deborah A.
Reames, personal banking officer.
In addition, United Missouri
Bancshares announced the promo
tion of Chuck Lewis to vice presi
dent in the loan administration de
partment where he is responsible for
loan compliance for all United Mis
souri affiliate banks.

O ne Less W orry

These are some tough times for farmers and as an agent the farm
economy is something that affects your life as well. Nowadays, you need
to go that extra step to be sure the insurance you recommend to your
customers is the right choice. Their future may depend on it.
To be sure it IS the right choice, put your trust in an established
company. . .Dawson Hail Insurance. With Hail or Multi-Peril Crop
Insurance from Dawson, you can be sure your customers will receive the
kind of service that will bring them back, year after year.
Dawson Hail Insurance has been around since 1917. We’ve built our
business around a few simple principles. First, we make buying crop
insurance easy and uncomplicated. Second, our adjusters are the very
b e st.. .fast and fair. Finally, we’ve developed a reputation for customer
service that is second to none.
With Dawson Hail and Multi-Peril Crop Insurance behind you, you’ve
got one less worry. We’ve been around since 1917, we’ll be there for you.

Call Toll Free
1 800 437-4680
In North Dakota
1 800 342-4848
-

\V V \

HAIL ° °
INSURANCE

P.O. Box 1820, Fargo, ND 58107

Northwestern Banker, April, 1986

FDIC Increases Loss Allowance
HE Federal Deposit Insurance
Corporation board of directors
T
voted March 7 to increase the de
posit insurance fund’s reserve for
losses by $2.3 billion, raising the
total reserve allowance to $4.5 bil
lion.
In commenting on the loss allow
ances, FDIC Chairman L. William
Seidman said: “The banking indus
try ’s insurance fund is still expected
to show a $1.4 billion increase for
1985, ending the year with a net
worth of $17.9 billion, up from a re
stated $16.5 billion for the year
ended December 31, 1984.” Mr.
Seidman noted that the year-end
ratio of insurance fund to estimated
insured deposits stands at 1.22 per
cent. The ratio has been maintained
within the 1.21 to 1.24 percent range
for the past five years.
“Despite a record 120 bank fail
ures and assistance transactions
during 1985, the insurance fund has
grown, continuing a long-term
trend. The FDIC’s financial state
ments will show a solid insurance
fund with no known contingencies
unreported,” Mr. Seidman com

mented.
The $2.3 billion increase in the re
serve for losses is comprised of the
following components:
• A $1.3 billion loss allowance re
lating to the 1984 assistance agree
ment between the FDIC and Conti
nental Illinois National Bank and
Trust Company of Chicago.
• An increase of approximately
$400 million in loss allowances es
tablished for bank failures that oc
curred prior to 1985.
• An approximately $600 million
loss allowance for the 120 bank fail
ures and assistance transactions
which occurred during 1985.
In a related action, the FDIC
Board also voted today to restate
the deposit insurance fund’s 1984 fi
nancial statements. The restate
ment will charge approximately
$700 million of the Continental loan
loss allowance to 1984 operations —
the year in which the assistance
transaction occurred. About $600
million of the loss allowance attribu
table to the Continental transaction
is being charged against 1985 opera
tions. The FDIC’s estimated losses

for Continental reflect all remaining
obligations under the assistance
plan.
Regarding the Board of Directors’
decision to restate the 1984 financial
statem ents, Chairman Seidman
noted the General Accounting Office
took exception to the 1984 financial
statements because no provision
was made for potential losses re
lated to the Continental assistance
transaction.
Due to the size of the loss allow
ances approved today by the FDIC
directors, the banking industry will
not receive a deposit insurance as
sessment rebate for 1985.
Michael, Eva Moebs Publish

Pricing Financial Services
G. Michael Moebs, president of
G.M. Moebs & Associates, a Chi
cago-based financial consulting
firm, and Eva U. Moebs, a partner in
the firm, have published Pricing Fi
nancial Services, a 230-page book
designed to help banks achieve a
profitable pricing structure. It links
both theory and the implementation
of profitable pricing.
Mr. Moebs has 10 years of bank-

Havecheckbook

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Deluxe Is Offering Pegboard
Temporary New Account Kit
ELUXE One-Write Systems an
D
nounced recently it is offering
banks and other financial institu
tions a temporary new account kit
for its recently introduced OneWrite pegboard accounting system.
Deluxe said the temporary ac
count kit will be the first of its kind
in the pegboard market, offering
everything a customer needs to get
started the day an account is opened.
“We feel that banks and other insti
tutions will benefit immensely from
this new package,” said Norm
ing experience both with unit banks
and multi-bank holding companies
ranging in size from $80 million to
$19 billion. He is publisher of Pric
ing Strategy, a monthly newsletter,
holds an MBA degree from the Uni
versity of Chicago and is a CPA.
Eva Moebs also holds an MBA de
gree from the University of Chicago
and is a CPA.
Pricing Financial Services is
priced at $35.00.

Mears, general manager of OneWrite Systems. “ In the past, any
initial order for a pegboard system
still took two weeks of production
time before it was received by the

THE one-write temporary account kit from
Deluxe One-Write Systems provides banks
and financial institutions with all of the
components necessary for customers to
begin using a one-write system the same
day an account is opened.

customer. This eliminates that delay
altogether.”
The One-Write Systems kit comes
with a temporary, one-piece plastic
pegboard, 25 checks with a carbon
strip on the back, two journal sheets
for recording transactions, 10 led
gers for account record keeping, 10
double-window envelopes, three de
posit tickets and a complete instruc
tion manual on how to set up and
use the system.
The One-Write system, which
combines an accounting system
with printed checks, is an easy-touse and time efficient way of orga
nizing business records. The product
is widely used by small-and mediumsize businesses. Deluxe offers a
variety of systems, including pay
roll, cash disbursement, a combina
tion payroll/cash disbursement, and
accounts receivable.
Deluxe One-Write Systems is a di
vision of Deluxe Check Printers,
Inc. Further information about OneWrite Systems, or temporary new
account kits, may be obtained by
calling Deluxe toll-free 1-800328-7205, or by writing Deluxe OneWrite Systems, Department 046,
530 North Wheeler Street, P.O. Box
64865, St. Paul, MN 55164-0865.

Face to face. That’s the way Drovers likes to
conduct business with its correspondent banks.
Day in, day out our calling officers are on the
road, arranging acquisition financing, handling
overline loans, assisting with
investments. Max Roy travels
Iowa. Larry Nau visits banks
in Illinois. Kathy Hardy and
John Crotty concentrate on
the Chicagoland area but are always available
to any Midwest banker. If you’d like to see eye
to eye with your correspondent banker, call
Drovers toll-free at 1-800-621-8991. In Illinois
call 1-800-572-2498.
L
v
y
C
tv
J.j CX± I CXI Lgll

willtravel.

Drovers
Bank
47th & Ashland Ave., Chicago, 60609 1-312-927-7000.

of Chicago

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C.

A Cole-Taylor Bank

A strange
coincidence.
Horizon Financial
switches to
American Express.
Travelers cheque
sales up 60%.
A nnM cN am ee, Senior B anking Officer o f H orizon Financial, FA.,
in Southampton, Pennsylvania, tells w hy i t ’s no coincidence that
sw itching to Am erican Express’6 Travelers Cheques increased travelers
cheque sales 6 0 % .

What has happened to sales since you’ve started
selling American Express?
M cN am ee : Since we became an American Express seller,
sales have increased significantly, by about 60%.
Question: To what do you attribute your sales increase?
M cN am ee: To the name American Express. American
Express Travelers Cheques are known throughout the world
and are synonymous with travelers cheques.
Question: Do you think that selling American Express
Travelers Cheques enhances the image of your institution?
M cN am ee: I think if you want a first-class product, you go
to a first-class place. We try to sell the best to please our
customers—we don’t want anybody walking out the door
and going someplace else for something we’re not offering.
Question:

Travelers cheques sales
before switching.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sales after switching
to A merican Express.

Tofin d out how to increase
yo u r travelers cheque sales, call
1 -8 0 0 -2 2 1 -7 2 8 2 and ask fo r
L ou Eiler.
© 1986 American Express Travel Related Services Company, Inc.

Travelers
Cheques

THE FINANCIAL Plaza gathers providers of a variety of financial services together in a single
facility, giving customers the convenience of one-stop shopping for these services. An ideal
tenant mix includes attorneys, accounting firms, insurance companies and stock brokers,
along with the anchor bank.

Financial Plaza
broadens bank service
Written especially for
T he N o rthw estern B a n ker

OMPETITION in the financial services market
place is increasingly focusing on new, customerC
oriented systems for the packaging and delivery of fi^ nancial products and services.
The new, competitive realities have added a touch of
urgency to the perennial search for the right combina
tion of image, services and delivery system that will at
tract and hold customers.
^
The Financial Plaza concept, as developed by the
Advanced Concepts Group of Bank Building Corpora
tion, St. Louis, represents a new approach to service
packaging and delivery which broadens financial insti
tutions’ arsenal of competitive weapons.
#
A Financial Services Mall
The Financial Plaza is, in effect, a financial services
mall, according to Rex Dunlap, president of the Finan
cial Facilities Group at Bank Building Corporation.
It allows a bank to broaden the scope of its service
• offering to encompass services of independent pro
viders. Customers can fulfill all their financial needs in
a single location.
Anchored by the bank or other financial institution,
it provides space for as many as six or seven indepen• dent professional services firms — law offices, stock
brokerages, accounting firms, real estate offices, insur
ance firms, etc. All are grouped around a central com
mon space, in which the bank lobby is one element in a
visually integrated whole.
•
Financial institutions stand to benefit from anchor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ing such a mall in several important ways. Rental in
come and other fees from tenants can provide the fi
nancial institution with significant revenue sources.
Research conducted by the Advanced Concepts
Group indicates that the ideal size for the mall is some
20,000 square feet. This is sufficient for a 2,000-3,000
square foot branch bank and for six to seven indepen
dent businesses.
Size, Integration Dominate Market
The sheer size of the Financial Plaza, together with
its integrated appearance, enables the financial institu
tion to establish an immediate, dominating market
presence.
1. The image of strength and permanence which it
projects is of equal value, whether its objective is to es
tablish itself in a new market, or to “leapfrog” the
competition in an existing market.
2. For the first time, within the legal restrictions of
the current regulatory environment, a commercial
bank can offer customers a full range of financial ser
vices, including those the bank itself offers — and the
related services of other tenants on the mall.
3. Even more important, the Financial Plaza as a
whole is greater than the sum of its parts. Advanced
Concepts Group research has demonstrated that a fi
nancial mall draws from up to five miles away. The
traditional retail bank, by contrast, pulls from only a
three mile radius. This is 2.75 times the geographic ex
posure.
FINANCIAL PLAZA. . .
(Turn to page 28, please)
Northwestern Banker, April, 1986

A BROAD RANGE of building designs for financial institutions is illustrated by these projects in Florida (left) and Wisconsin.

A 50-year look at
bank design
...“we aren’t getting older, we’re getting better!”
Written especially for
T h e N o rthw estern B a n ker

By GERALD L. GROSS
President
Kirk Gross Company
Waterloo, la. and
Pensacola, Fla.

OUNDED in 1936, by Kirk Gross, this year the
F
Kirk Gross Company will celebrate fifty years of
designing financial facilities. Banks, savings and
loans, and credit unions in Florida, Illinois, Iowa, Min
nesota, Nebraska, and Wisconsin have utilized, over
the years, the functional planning expertise that Kirk
Gross realized was so important, even 50 years agol
Functional planning and designing of a financial in
stitution back in the 30s, 40s, and 50s was based on the
institution's nqed to provide service just as it was in
the 60s, 70s and now the 80s. The big difference is in
some of the “Tools of the Trade” developed over the
years to provide that service. Gone are the old grilled
teller cages. Teller counters today, as illustrated, pro
vide customer privacy, combined with sit down sta
tions which provide a convenience for customer and
teller alike.
Drive-up windows, multiple drive-up lanes, ATMs
and CRTs were unheard of 50 years ago. Fifty years
ago (or even 10 years ago for that matter) who would
have dreamed that a financial institution would have
to compete with Sears, Roebuck and Company for the

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

investor’s dollar. Obviously, financial services have
come a long way, and so has Kirk Gross Company.
In 1971, Kirk sold his business to Dick Zahn and
Jerry Gross. Both new owners realized that the func
tional planning expertise the company had developed
over the years could be expanded into a full service,
multi-disciplined, Turn-Key Design-Build organiza
tion. Bankers offered full-service and so should anyone
that works for bankers, we reasoned. To accomplish
this goal, Kirk Gross Company established an in-house
staff of registered architects, professional interior de
signers and licensed general contractors.
Since then, this team has been responsible for over
1,000,000 square feet of financial facility development,
has completed over 270 projects in six states, and has
won first place in a National Commercial Interior
Remodeling contest for its efforts.
50 Years of Design Change
1936
The building that housed the financial institution on
the town square in the thirties and forties was typical
ly the only building in town with high Gothic columns,
limestone or marble facing, and at least a half dozen
steps to climb. The ceilings were high and sometimes
ornate; the lighting was poor at best and the vault
(sometimes made of brick) was located in the middle of
the building with a narrow steep staircase beside it
leading up to a cramped board room above the vault.
The rest room (if, indeed, it had one!) was adjacent to
coupon booths and sometimes actually in the public
lobby with etched glass doors but no ceilings. All in all,
only the stately walnut and marble-grilled teller cages
provided, by today’s standards, any functional pur
pose.

•

^
9

•

MAXIMUM convenience and privacy are provided for customers in this artistically designed teller counter that also offers sit-down teller
service at the near end of the service area. This configuration also offers tellers maximum individual working stations.

Dark walnut, dark walnut and more dark walnut
was used throughout. Floors were slippery marble or
cold terrazzo. Doors were high and narrow, waiting
areas were marble benches in the lobby and, in many
cases, the only way into the safety deposit box vault
was to go behind the teller counter. Traditionally, the
president had a private office by the front door and it
was the only office in the building. Employee lounges
were unheard of and daily posting was done by hand in
a simple ledger. Customer pass books were all of two
inches high and smaller than most of today’s address
books.
1986
Today’s modern financial facility would make the
C.E.O. of the thirties not only shocked but totally con
fused. He (a woman in the thirties as C.E.O. was
almost unheard of then) would possibly understand
drive-up windows and maybe even an ATM, but to de
sign a financial building based on customer conveni
ence, employee comforts and even the handicapped
would have been unthinkable. Be that as it may, the financial facility today has come a long way. Gone are
the Gothic columns, the high ceilings and dark walnut
paneling.
Vaults now are located, or should be, in a location
that will provide for interior expansion. Vaults now
can even be moved or increased in size by using modu
lar factory built panels passing security tests unheard
of with the old brick vaults.
Energy efficient and “user friendly’’ buildings with
attractive, tasteful and colorful interiors are now commonplace. Offices have glass partitions to provide an
attractive overview of the lobby. Concern for customer
convenience, including the handicapped, and func
tioned but flexible interior space planning is (or should
be) a standard consideration. Modem laminates, ceramic tiles and fabrics are often used on the teller

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

counter in lieu of the traditional wednut and marble
grill cages.
In this age of stiff competition, site location has
become important, but friendly personal service by
tellers and officers alike are the key ingredients to
customer retention. Modem technology dictates the
need for flexible planning for all phases of the building
especially in areas like Florida where basements are
not practical.
What Will the Next Fifty Years Bring?
Your crystal ball is as good as ours, but an educated
look at the financial facility of the future would show
us that the illustrated financial facilities we are design
ing today will work tomorrow. The big difference will
be how the interior functions and not how the exterior
is configured. The teller line as we know it might be
gone, but functioned private or semi-private work sta
tions for “money advisors/consultants” designed to ac
commodate all the electronic tools of the trade, will
take its place.
Buildings will be (and should be now) designed for
flexibility of interior space utilization. Both the build
ings illustrated, for example, are of a two-level design
with future elevator expansion, and even rental capa
bilities. The bank, credit union, or savings and loan
building will not be eliminated by the computer until
the computer learns how to smile. Image and personal
service are here to stay.
Finally, the C.E.O. will continue to realize the value
of a Turn-Key financial facilities professional like Kirk
Gross Company. He or she will occasionally take ad
vantage of the built-in flexibility of our services to
meet the local conditions, but will continue to demand
the best bottom-line approach to the building program.
Our Turn-Key experience has met this need in the past
and will do so in the future. We aren’t getting older,
we’re getting better!
□
Northwestern Benker, April, 1986

Farmers Savings Bank, Princeton, Iowa

River Boat Heritage Inspires Building Design
One hundred and fifty years ago, a man named Phil
lip Suiter settled on the shore of a stretch of Missis
sippi rapids north of Davenport, Iowa. He got to know
those rough waters and became the first licensed
rapids pilot. He was the first of three generations of
Suiters who would make their living piloting steam
boats.
Phillip Suiter’s son John was among the LeClaire
men who helped pilot the great rafts transporting pine,
lead, and other materials down river from the north in
the mid-1800’s.

THE president’s office, reminiscent of the pilot house of a steam
boat, affords a beautiful view of the Mississippi. Left to right:
Stephen Suiter, executive vice president, cashier and CEO,
LeGlaire State Bank; Glen Suiter, president and chairman, Farm
ers Savings Bank, and Keith Hopp, vice president and agricultural
representative, Farmers Savings Bank.
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

At the turn of the century the railroad came through
LeClaire and neighboring farm community Princeton.
At that time third generation river man Zach G. Suiter
was master of the packet boats Verne Swaine and
Eclipse, which transported passengers and cargo be
tween Davenport and Clinton.
But the advancement of the railroad meant an end
was coming to the river boat era, and Zach Suiter en
couraged his two sons to prepare for a new profession.
Charles and Zach, Jr. studied mathematics in the pilot
house of their father’s boat and looked toward the pursuit of banking.
A Bank on the River
In 1907 Charles Suiter became the first permanent
cashier of the newly organized Farmers Savings Bank
in Princeton. In 1912 his brother Zach, Jr. was ap
pointed assistant cashier. Zach would later become
president of the bank and serve as such till his death in
1948.
Today fifth and sixth generation Suiters still serve
this area. Glen H. Suiter is president and chairman of
the board of Farmers Savings Bank and Stephen G.
Suiter is executive vice-president, cashier and CEO at
LeClaire State Bank, its affiliate. The bankers never
forgot their roots in steamboating or the philosophy of
those early pioneers who founded the community they
served. One hundred and fifty years after Phillip Suiter
came here, the Farmers Savings Bank constructed a
new building dedicated to commemorating its history
on the shore of the Mississippi River.
The general contractor for the new bank was Hoff
man and Cole of Princeton, and George Monticello was
the mason contractor. The architect was Arthur C.
Kuehn of Scholtz Kuehn and Associates of Davenport.
Lois Suiter O’Malley, sister of Glen Suiter, was the in-

•

<|)

<||

<li

•

{§

terior designer, conferring with Raymond E. Wallace
of San Pedro, Calif., who contributed the nautical de
sign.
A Nautical Design
The exterior of the building was designed to look
like a bank built in a river town of the 1800’s. The light
stone, shutters, and a tower with weathervane contri
bute to the nostalgic appearance.
The bank’s interior is a tribute to steamboat days.
The faintly arched beams of the ceiling imitate the in
terior of those boats. Along the wall in the bank’s
lobby is a tufted bench designed after the lazy man’s or
liar’s bench found in the pilot house of a river boat.
Above it hang two Ralph Law original paintings pro
duced from photographs of the steamboats Verne
Swaine and Eclipse. The image of the Eclipse can again
be found on the painted vault door.
The windows in the president’s office are patterned
after those of steamboat pilot houses. The check writ
ing desk in the lobby is a replica of the capstans that
were used for tightening hawsers. Nautical lamps, pictures and antiques accent the decor’s river boat theme.
The turn of the century atmosphere is intensified by
features like old-fashioned counters, natural oak desks,
mahogany wainscoting, fluted columns with rosettes
on the door trim, and fluted knees on the beams.
The entrance of the bank is papered with replicas of
paper from the 1800’s. The cast iron railing on the bal
cony along the river side of the bank does not just imi
tate age: it was purchased in Galena, Illinois and is
purported to be one hundred years old.
The lower area includes a large room with a stone
fireplace accented with heavy beams, and natural
cedar-lined walls. The area will serve as a director’s
room and will be used for community functions. The
room will also be used to display art, and a small riverboat museum is planned for the space.
And, of course, the bank building takes full advan
tage of its best feature, proximity to the beautiful Mis-

ARCHED beams, a painted vault door and a check writing desk
fashioned from a replica of a steamboat capstan are among the
unique features of the bank’s lobby.

sissippi. A full view of the river may be seen from the
lobby.
From the 1800s to Today
It is interesting to note how modern developments
in banking play themselves out in a place of such his
toric significance. The bank plans to build a dock so
boaters on the river may have access to its outside
automatic teller machine. It is amusing to consider
what Phillip Suiter and his fellow pioneers might have
thought of “banking by boat.”
But whatever advancements technology has
brought to banking, it is the solid and prudent banking
practices upon which Farmers Savings Bank was
founded in 1908 which this unique building is designed
to commemorate. Said President Glen Suiter, “We de
dicate this building to our forefathers who settled
along the Mississippi River. We are indebted to those
who came before us and we have a strong responsibili
ty to those who succeed us so they have as much as we
have been blessed with. ’’
□

THE back of the bank faces the river, and is adorned with a balcony edged with a century-old railing. Lobby and office windows have a
clear view of the water.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

The Case of the
Defendant Director:
Part I

Legal sources of

Introduction
ODAY’S financial crises have forced into sharp
focus the almost frightening potential for liability
T
assumed by today’s bank director. Today’s bank direc
tor has been made a target by an ever-increasing pool
of plaintiffs seeking some form of recovery from cm
adverse economy, including actions brought by the
bank itself, by its shareholders, by its depositors and
other customers, by its creditors and even by its regu
lators.
This series of five articles analyzes the current trend
toward increased director liability. The first article
summarizes the legal sources of director liability. The
second article provides a list of guidelines intended to
reduce the potential for exposure to director liability.
The third article will analyze officer’s duties and poten
tial liabilities. The fourth article discusses current in
demnification, insurance and other mechanisms em
ployed to provide financial protection for today’s bank
director. The final article summarizes the causes of ac
tion and claims made by a regulatory agency against a
director in a recent case, to provide a real life example
of the discussions in the prior four articles.
PART I
LEGAL SO U R C E S OF DIRECTOR LIABILITY
DIRECTOR is defined as “one who directs, rules
A
or guides.’’ At the basic level, a director assumes
the duty to prudently and reasonably supervise the afNorthwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

fairs of the bank. Standards against which the fulfill
ment or failure of that duty is measured may be im
posed by: (1) contract, (2) common law, or (3) statute.
(1) Contractual Standards. The relationship of a di
rector to a bank is defined in the organizational and
operational documents of that particular institution.
Some of the basic duties of a director and some of the
accepted procedures for fulfilling those duties are com
monly set forth in very general terms in the bank’s
charter and bylaws. At a very basic level, therefore, it
is incumbent upon a director to review and familiarize
himself or herself with the rules and requirements set
forth in those primary source documents. There has
also been some movement toward imposing contrac
tual standards on a director based on the director’s
oath of office.
(2) Common Law Standards. The plethora of director
liability litigation underscores the very real potential
for imposition of liability as a result of the breach of a
common law duty by the director. Common law duties
may be based on generally accepted business practices
in the banking industry, as well as on customs and
practices of the particular institution and director in
volved. Under common law a director is expected to
act as would an ordinary, prudent person in similar cir
cumstances or in a similar position in performing his or
her duty of care and diligence.
Because banking by its very nature involves a form
of trusteeship over the funds of others, courts have not
been hesitant in imposing standards of care and dili
gence upon directors which are higher than the normal
standards of care and diligence imposed upon the ordi
nary business person. Indeed, some courts further re
fine the standards by which director liability is mea
sured by taking into account the special qualifications
of the particular director, which results in an even
higher standard of care and diligence being imposed
upon that individual director.
Breaches of Common Law
Breaches of these common law standards which are
imposed upon directors have been found in the follow
ing circumstances:

• director liability

•

(a) failure to attend board meetings regularly;
(b) failure to hire adequate management personnel;
(c) failure to implement established policies, includ
ing loan investment, liquidity, liability management,
pricing, capital adequacy, personnel, trust administra
tion, or other bank function policies;
(d) failure to adequately supervise the performance
of these policies by management;
(e) failure to be adequately informed of the bank’s
business;
(f) failure to utilize adequate auditing procedures;
(g) failure to adequately respond to regulatory criticism or recommendation;
(h) consenting, either by action or by inaction, to bad
management decisions of others; and
(i) consenting, either by action or by inaction, to vio
lations of banking laws, statutes or regulations by
others.

Breaches of Loyalty
In addition to the foregoing common law standards,
_ which relate to the directors’ duty of care and diligence
in connection with the banking business, directors also
are held to a standard of loyalty to the bank itself.
Breaches of the common law standard of loyalty which
is imposed upon directors have been found in the fol^ lowing circumstances:
(a) direct competition with the bank;
(b) taking advantage of bank opportunities;
(c) profiting from inside information;
(d) consenting, either by action or by inaction, to
^ transactions that injure or otherwise oppress minority
shareholders of the bank; or
(e) profiting improperly from the sale of bank stock.
Imposition of liability against a director because of
the breach of a common law standard is an expanding
^ area of the law. Because such breaches are based on the
particular and specific facts and circumstances of each
case, it is difficult to provide a concise discussion of the
common law standards. However, there are general
guidelines which may be followed by a director to re• duce the potential for such imposition of liability.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Those guidelines are discussed in the second article.
(3) Statutory Standards. In addition to the contrac
tual standards which may be established under the
bank’s organizational and operational documents, and
the common law standards which are established
through evolving court action, certain statutes also
create and impose defined duties and responsibilities
on the director. Because of the significant amount of
regulation and regulatory agencies involved in bank
ing, and the increasingly complex statutory and regu
latory provisions, it is becoming increasingly difficult
for a director to remain confident that he or she is com
plying with all of the statutorily imposed standards.
Statutory standards are imposed under:
(a) the National Bank Act (12 U.S.C. §§ l-215b);
(b) the Federal Reserve Act (31 U.S.C. § 409; gen
erally disbursed throughout Title 12); the Banking Act
of 1933 (generally disbursed throughout Titles 12, 15,
39), and the Federal Deposit Insurance Act (12 U.S.C.
§ 1811-1831), and regulations issued by the Federal
Deposit Insurance Corporation (“FDIC”) thereunder;
(c) the Securities Act of 1933 (15 U.S.C. § 77a et.
seq.);
(d) the Securities Exchange Act of 1934 (15 U.S.C. §
78a et. seq.);
(e) the Bank Holding Company Act of 1956 (12
U.S.C. §§ 1841-1850);
(f) the Truth in Lending Act (15 U.S.C. §§
1601-1692);
(g) the Community Reinvestment Act (12 U.S.C. §§
2901-2905);
(h) the Financial Institutions Regulatory and Inter
est Rate Control Act (generally disbursed throughout
Titles 5, 12, 15, 28, 31, 42);
(i) the Clayton Act (15 U.S.C. § 19);
(j) the Racketeer Influenced and Corrupt Organiza
tion Act (18 U.S.C. §§ 1961-1968); and
(k) State laws regulating state chartered banks.
Section 93 of the National Bank Act provides a typi
cal example of a statutorily imposed standard:
(a)
I f the directors of a national banking
association knowingly violate, or knowingly
permit any of the officers, agents or servants
of the association to violate any of the pro
visions of this chapter, aU the rights, pri
vileges and franchises of the association
shall be thereby forfeited ... And in cases of
such violation, any director who partici
pated in or assented to the same shall be
held liable in his personal and individual ca
pacity for all damages which the associa
tion, shareholders, or any other person, shall
have sustained in consequence of such viola
tion.
One court has found directors to have “knowingly
violated” the National Bank Act standards merely by
refraining from investigating that which it was the di
rectors’ duty to investigate, such as applicable loan
limits and loans in excess of that limit. Because the
directors did not take any affirmative action to correct
the excessive loan, the directors were held personally
liable to the bank for the uncollected loan which cre
ated the excessive loan violation.
Federal Reserve Standards
The Federal Reserve Act also provides statutorily
Northwestern Banker, April, 1986

“The FDIC, in the case of any insured banks, may also
terminate insurance coverage on its own initiative.“
defined standards for the member banks of the Federal
Reserve System. Areas covered include insider loans
to directors and officers, loans to affiliates, and bank
premises investments. Section 503 of the Federal Re
serve Act, similar to Section 93 of the National Bank
Act, makes knowing violations of these provisions a
ground for personal liability for directors and officers
for any resulting damages, and Section 504 of the Fed
eral Reserve Act imposes civil penalties.
FDIC Imposed Liability
One of the more recent developments in the area of
director liability has been attempts by the FDIC to im
pose liability on the director. The FDIC has the power
to request the bank’s appropriate regulatory agency to
issue cease and desist orders, to issue temporary cease
and desist orders, to cause the removal of a director, or
to impose civil monetary penalties. The FDIC, in the
case of any insured bank, may also terminate FDIC in
surance coverage on its own initiative. The statutory
basis for these actions generally exists when the direc
tor engages in “unsafe or unsound practices in con
ducting business of the bank” or has “violated any ap
plicable law, rule, regulation, or order, or any condition
imposed in writing” by the FDIC in connection with
the bank’s affairs.
It may be significant that such latter standards do
not include the “knowingly violate” language. In the
recent case of Larimore v. Conover, the Seventh Circuit
Court of Appeals avoided the issue of whether the
“knowingly violate” test of Section 93 of the National
Bank Act has to be met in order to violate such latter
standards, by determining that the director had in fact
“knowingly violated” Section 84 of the National Bank
Act when he approved loans in excess of the bank’s
lending limit, even though he was unaware of such a
limit or of previous notification of such violations from
the Comptroller of the Currency.
SEC Liability
Bank directors may also incur liability to share
holders under Securities Exchange Commission rules
and regulations. One especially fertile area seems to be
inadequate disclosure of bank activities, such as a
failure to alert potential shareholders of cease and de
sist orders. Tender offers and other takeover or sale
transactions may also result in liability to the director
if reporting and other requirements to the shareholders
are not met.
Breaches of the foregoing civil statutory standards
which are imposed upon directors have been found in
the following circumstances:
(a) excessive loan commitments;
(b) failure to make reports or submitting inaccurate
reports to the appropriate regulatory agency;
(c) declaring improper dividends;
(d) distribution of bank assets to its shareholders
without the payment, discharge or allowance for all
known debts owed by such shareholders to the bank;
Northwestern Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(e) improper investment of funds;
(f) illegal rates of interest; and
(g) inadequate capitalization.
Criminal Statutes
Another statutory source of director liability are the
criminal statutes, which include:
(a) offering a bank examiner a loan or a gratuity (18
U.S.C. § 212);
(b) receiving anything of value from a bank customer
in connection with any transaction or business of the
bank (18 U.S.C. § 215);
(c) committing theft, embezzlement, or misapplica
tion of funds (18 U.S.C. § 656);
(d) making or permitting to be made false bank en
tries, reports or transactions (18 U.S.C. § 1005);
(e) making loans to bank directors from bank trust
funds (12 U.S.C. § 92(h).
(f) falsely certifying bank checks (18 U.S.C. § 1004);
and
(g) influencing or being influenced by an offer or ac
ceptance of an offer or solicitation concerning the op
eration of an employee benefit plan (18 U.S.C. § 1954).
The most widely applied of the foregoing criminal
standards is Section 656 of Title 18 of the United
States Code, entitled “Theft, Embezzlement, or Misap
plication by Bank Officer or Employee.” Embezzle
ment, abstraction, purloining, or misapplication of
bank funds, monies, or credits are the four criminal
acts included in that Section. Intention to commit any
one of the four acts, as well as an intention to injure or
defraud the bank, are necessary requirements. Crimi
nal proceedings under Section 656 have been allowed
even in the absence of actual loss to the bank. Some cir
cuits have found criminal violations when bank records
do not accurately reflect the distribution of loan pro
ceeds, which is representative of the broad scope of ac
tivities that have been found to be violative of Section
656.
State Law
State law, in the case of state chartered banks, may
provide similar statutory standards. Some states ex
tend liability potential even further by providing that
a mere negligent violation (which, for example, does
not require the level of knowledge or deliberation
necessary under the National Bank Act) of certain
state statutes or regulations will result in liability.
Also, of course, negligent violations of any of the fore
going statutes by a director may also result in a cause
of action under common law theories.
Given the significant potential for liability that may
be imposed against a bank director, a prudent director
will want to protect himself against such exposure by
remaining informed of not only the bank’s business
and practices, but also of the current trends toward
director’s liability, and by taking affirmative steps to
reduce such exposure. The type of protective measures
and guidelines available to the director will be dis
cussed in the next two articles of this series.
Next month: Legal Defenses Available to the Direc
tor.
□

SPEAKERS at the ABA Corporate and Correspondent Bank Conference in San Francisco included, left to right: Richard J. Flamson, Hi,
chmn. & CEO, Security Pacific Corp., Los Angeles; Donald H. McCree, Jr., chmn. ABA Commercial Lending Div. and sector exec, v.p.,
Manufacturers Hanover Trust Co., New York; F. James McDonald, pres, and COO, General Motors Corp., Detroit; Robert B. Phipp, chmn.
ABA Financial Inst. Div. and exec, v.p., Security Pacific Natl., San Francisco; Dr. Paul Nadler, prof, of fin., Rutgers University, New Bruns
wick, N.J., and Mr. McCree.

• ABA Corporate Banking Conference Speakers Say:

•
•

Commercial lending,
correspondent banking
will remain strong and competitive
By BEN HALLER, JR.
Publisher
was the key word pur
Q UALITY
sued throughout the ABA 1986

w National Corporate Banking Confer
ence in San Francisco last month.
The annual conference is sponsored
jointly by the ABA Commercial
^ Lending and Financial Institutions
divisions. Donald H. McCree, Jr.,
sector executive vice president of
Manufacturers Hanover Trust Com
pany, New York, is chairman of the
^ first division. Robert B. Philipp, ex
ecutive vice president of Security
Pacific National Bank, San Francis
co, is chairman of the latter division.
More than 400 bankers and 100
q spouses attended the three-day
meeting.
The vast array of speakers partici
pating in the general and special ses
sions left little doubt that commer^ cial banks are recognizing change,
are helping to shape or adapt to it,
and will continue to offer strong,
viable commercial lending and cor
respondent bank services.
0
In his welcoming remarks at the
opening general session, Mr. Mc
Cree said “some would have us pic
tured as an endangered species (in
corporate and correspondent bank• ing). Not so, but we must change
with changing times. There is
greater competition, a variety of
risks, and pressure on rates.”
Quoting from “The King and I,”
# Mr. McCree said, “No longer can we

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

be sure of things of which we were
once so certain.” He added, “We’ve
proven our ability to meet challenge
and change. I welcome the opportu
nity.”
Opening speaker Richard J. Flamson, III, chairman and CEO of Se
curity Pacific Corporation, Los An
geles, specifically addressed “Com
mercial Banking: A Changing In
dustry in Which Quality Is Key.”
He spoke of “product quality, mar
keting quality, customer quality and
planning quality. . .quality in those
areas will, in turn, lead to asset qual
ity.”
Mr. Flamson emphasized, “The
final factor, and the acid test for all
of the others, is management quali
ty. In the final analysis, the image of
the industry will totally and directly
reflect the quality of its manage
ment.” Mr. Flamson stressed that
the necessity for all of these quali
ties is incumbent on smaller banks
as well as larger ones.
Keynote speaker F. James Mc
Donald, president and COO of Gen
eral Motors Corporation, Detroit,
spoke on “Competition: Changing
the Structure of Industry.” His ex
cellent keynote address was re
viewed in more detail in the N o r t h
w e s t e r n B a n k e r Weekly Newslet
ter.
The Monday luncheon speaker
was Dr. Charles Garfield, president
of Performance Sciences, Inc., Ber
keley, Cal. Discussing “Peak Per
formers in Business,” Dr. Garfield

said, “Peak performance begins
with a mission. Sustaining the peak
is critical, and the key to that is con
tinuing one’s own productivity.
Another key is finding, hiring and
training motivated people to help re
tain peak performance. Hiring is cri
tical.”
Dr. Garfield then listed these
principal elements for “establishing
peak performance as the norm: Per
formance action plan, empowering
others through teamwork, ability to
m o tiv a te change, m o tiv a tio n
through mission, developing your
self as a resource, oriented around
results.”
The final conference speaker, Dr.
Paul S. Nadler, professor of finance
at Rutgers University, New Bruns
wick, N.J., had some words of cau
tion for those who might go over
board on the recent upward surge in
the stock market and the general
economy. “ Is our euphoria justi
fied?” he asked. “I ’m not saying our
economy is going to turn around,
but I am saying the deficit is still
there, so just watch out. President
Reagan’s luck could change. The de
ficit has to be financed, so be careful
with lending.”
Dr. Nadler added that “the public
wants quality. Use ATMs, but keep
the human element; maintain liqui
dity. You must maintain confidence
with professional service.” Refer
ring to relationship banking, Dr.
ABA CONFERENCE.. .
(Turn to page 28, please)
Northwestern Banker, April, 1986

MAKING up the 1986-87 leadership for the IBAA are, left: Pres.-Elect—Thomas H. Olson,
pres., Lisco St., Lisco, Nebr.; Pres.—Charles T. Doyle, ceo, Gulf Natl., Texas City, Tex., and
Past-Pres. and Chmn.— B.F. “Chip” Backlund, pres., Bartonvllle Bank, Peoria, III.

IBAA Elects Doyle President;
Calls for Action on Ag Crisis
By ROBERT O. CRONIN
Associate Publisher
EW PEOPLE would have
guessed five years ago that fi
nancial America would be experienc
ing in 1986 some of its most difficult
adjustments in the history of bank
ing.
For the IBAA, those adjustments
involve, one, the threat of the non
bank bank and, two, an agricultural
situation that is being called by
many the worst of its kind since the
Great Depression.
Meeting in Las Vegas for their
1986 convention, more than 2,000
members and their spouses of the
Independent Bankers Association of
America called for immediate action
on the two problems and favored
adoption of a multi-year loan loss
amortization program to aid com
mercial and agricultural banks and
the close of the non-bank bank loop
hole. Kenneth Guenther, IBAA ex
ecutive vice president said, “The
train is leaving the station,” as a
statement of optimism to the pre
vailing problems.
IBAA officers elected during the
convention for the 1986-87 year are:
Pres.—Charles T. Doyle, chief ex
ecutive officer, Gulf National Bank,
Texas City, Tex.
Pres.-Elect—Thomas H. Olson,
president, Lisco State Bank, Lisco,
Nebr.
Vice-Pres.—J.R. Nunn, president,

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Citizens Bank, Tucumari, N.M.
Treas.—Merle L. Graser, chief ex
ecutive officer, First National Bank,
Venice, Fla.
Exec. Vice-Pres.—Kenneth A.
Guenther, Washington, D.C.
Past-Pres. & Chmn.—B.F. “Chip”
Backlund, president, Bartonville
Bank, Peoria, 111.
Mr. Doyle has been vice chairman
of the IBAA Bank Education Com
mittee and a member of the Federal
Legislation Committee during his
13-year banking career. He has also
served in several positions for the
Texas Bankers Association. Mr.
Doyle was commissioner and mayor
pro tern of Texas City from 1973
-1981.
The A gricultural Loan Loss
Amortization Program is set up to
help commercial and agricultural
banks stabilize their capital levels,
according to IBAA. The Amortiza
tion program has two ways of assist
ing the borrowing farmers. 1] It
should enable banks to shore up cap
ital so they can stick with farm bor
rowers over a longer period of time
and 2] the amortization of loan
losses could help to stabilize the
market for farmland by reducing the
amount of land placed on the market
during this critical period of time.
The multi-year loan loss program,
according to the IBAA, is needed
within the next thirty days “while
agricultural banks are working with

their farm customers to finalize this
year’s farming operations. ’’ The pro- %
gram is designed to have no-cost ef
fect on the Treasury Department
and could ultimately reduce the
draw of FDIC funds, thus preserv
ing the individual bank’s earning po- %
tential.
“The Amortization Program is
not a bail out for the farm bank,”
said B.F. “Chip” Backlund, retiring
president of the IBAA, “and will •
have no budget impact.”
Besides the immediate agricul
tural problems facing the IBAA he
noted, the non-bank bank loophole
legislation is consuming a major #
part of the IBAA’s efforts in Wash
ington. “We have led the fight to get •
H.R. 20 out of the House Rules
Committee, and there is no more im
portant issue facing the banking in- •
dustry than the non-bank bank loop
hole,” said Mr. Backlund. “Do you
want to buy your stocks where you
buy your socks?” he added.
Not only is the IBAA revving up ®
for the defeat of the non-bank bank
bill, but it is introducing a new ser
vice to its members — IBAA Bancard, Inc. The program will enable ^
community banks to compete with
other credit card issuers. Also, the
second phase of the IBAA’s market
ing program was presented as part
of the “You know us, we know you” ^
campaign.
This year’s convention, “Setting
the Course,” not only attracted over
2000 bankers and spouses to Las
Vegas, but included recognized reg- ^
ulators and financial industry
spokesmen. Speakers included: Rep
resentative Edward R. Madigan,
(R-Ill.); Dr. Paul S. Nadler, professor
of finance, Rutgers University £
Graduate School of Management,
New Brunswick, N.J.; Charles T.
Russell, president, VISA U.S.A./ In
ternational, San Francisco, and
Hugh Downs, host of ABC’s “20/
20” news program, New York.
John Sloan, Jr., president, Na
tional Federation of Independent
Business, Washington, D.C., told
bankers of the need to close the non- jp
bank bank loophole. “Personal ser
vice is the touchstone of banking —
small business owners are more in
terested in service on their account
than the rate and frills,” Mr. Sloan %
said.
The address by L. William Seidman, chairman, FDIC, Washington
was encouraging as he pointed out
five key areas to work towards for •

LEFT—Stephanie Anderson, REC-CHEK, Nevada, la. with Don Kirchner, pres., Peoples T&S, Riverside, la. and wife Betty, a.c. and David
Anderson, pres., REC-CHEK. RIGHT— Representing Deluxe Check Printers, Inc. were, center: Dick Burns, Tempe, Ariz. and right, Tom
Midhaelian, Chatsworth, Calif.

LEFT— Present at the South Dakota reception were, left: Phyllis and Burdette Solum, pres., Norwest Bank South Dakota, Watertown; back,
Huston Haugo, pres., Valley Natl., Sioux Falls and pres., Ind. Comm. Bks. of S.D.; Leroy Hofer, pres., First St., Armour, and wife Darlene!
RIGHT— Lori and Bob Jacobson, v.p., American Natl., St. Paul, with Bob Hansen, exec, v.p., Bank of Steele, N.D. and wife Kay.

LEFT—Visiting during the Nebraska reception were, left: Gene Chamberlin, Tekamah; Fred Otten, pres., Ind. Bkrs. Assn, of Nebr. and
pres., Commercial St., Hoskins; Tom Olson, IBAA pres.-elect and pres., Lisco St., Lisco, Nebr.; Larry Nelson, v.p., Burt County St.,
Tekamah, and Ralph Anderson, atty., Tekamah. RIFHT— Donna Couglin, adm. asst., IBAW; Jeri and Bud Zander, pres., Bank of Waunakee,
Wis. with Jeanette and Howard Turk, pres., Union Bank of Blair, Wis., and pres., IBAW, at the Wisconsin reception.

LEFT— B.F. “Chip” Backlund, IBAA past-pres., and pres., Bartonville Bank, Peoria, III. introduced speakers, center, Representative Edward
R. Madigan, (R-III.) and Charles T. Russell, pres., VISA U.S.A./Intl. at the morning session. RIGHT— Enjoying themselves during the opening
night reception were, left: Louise and Tom Hay, pres., Security St., Casey, la.; Pat and Jay Tomson, chmn., Citizens Natl., Charles City, la.,
Dir., Fed. Reserve of Chicago, and Lillian and Max Roy, sr. v.p., Drovers Bank of Chicago.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

better banking. 1] Work towards a
level playing field. 2] Assure that
regulations don’t pit big banks
against small. 31 All banks must be
treated equally. 4] No bank should
be too big to fail, and, 5] The non
bank bank should not have privi
leges that other banks do not. He
concluded, “banks should be given
the opportunity to compete.”
Robert L. Clarke, comptroller of
the currency, Washington, told
bankers “I agree with many of you
that the non-bank bank concept
should be brought to an end. The
way to do that is through the re
structuring of the federal legal
framework to make the concept irre
levant...after which the non-bank
will be nothing more than a footnote
in financial history — a place both

you and I believe it so richly de
serves.”
Mr. Clarke went on to explain
three options he has proposed.
1. The restructuring of farm loans
by using the Financial Accounting
Standards Board Statement (FASB15). “It can, under certain circum
stances, be used to account for con
cessions in financing terms — reduc
tion of either principal or interest —
granted to borrowers experiencing
financial difficulty without requir
ing the institution to record any
losses,” Mr. Clarke said.
2. The proposed modification of
the present call report disclosure re
quirements for restructured loans to
all banks to distinguish those loans
that, although restructured, are in
compliance with the new terms.

ABA CONFERENCE. . .
(Continued from page 25)

extra expense of certain services and
will buy them from city banks. Mer
gers won’t break this up, but will of
Nadler noted, “The banker expects fer more opportunities to locallythe customer to be loyal, and the owned banks which continue to be
banker must be loyal as well and not good correspondent customers.”
The conference also offered five
place everything on a dollars and
Policy Discussion Workshops, two
cents basis.”
In reference to correspondent Special Concurrent Sessions, 16
banking, Dr. Nadler stated, “it will Workshops, and 28 Round Table
continue because commercial bank Discussions.
All of these sessions, except the
ers are smart enough to avoid the
FINANCIAL PLAZA. . .
(Continued from page 17)
With a careful selection of tenants, traffic to each
business in the mall will tend to benefit all.
4.
Affluent consumers find the mall concept attrac
tive, according to focus group research conducted for
the Advanced Concepts Group by Marketeam Associ
ates, St. Louis. Upscale consumers who participated in
the research sessions indicated they liked both the con
venience and the access to professionals in the environ
ment of the mall.
A Variety of Design Requirements
There are a variety of special design and communica
tions requirements which must be met for the mall to
succeed, according to Mr. Dunlap. Each tenant has
specialized needs unique to its type of business that

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3.
“Most importantly, we are pre
pared to allow banks to elect to par- q
ticipate in a capital forbearance op
tion that we believe will encourage
banks to write down problem loans
and develop work-out plans,” Mr.
Clarke concluded.
£
In addition to these informative
general session speakers there were
various special interest sessions for
bankers and spouses, even a session
on “The Life of a Las Vegas Show- £
girl.” Needless to say, there were
more than just spouses in atten
dance for this show! Entertainment
featured musical guests, Les Brown
and The Band of Renown, and singer ^
Helen Reddy to conclude this year’s
convention.
The 1987 IBAA convention will
be in Orlando, Fla., April 1-4.
□
Round Tables, as well as speeches
delivered at general sessions, were
taped and may be obtained from
ABA.
□
Comptroller Appointments
Comptroller of the Currency
Robert L. Clarke recently announced
the selection of Robert J. Herrmann
as senior deputy comptroller for
bank supervision policy.

must be anticipated. In addition, such factors as a
careful analysis of local demographics, relevant state
and federal banking regulations and the proper service
provider mix, must be carefully balanced to assure a
successful project.
He noted, “Any institution considering a building
program should give the Financial Plaza concept con
sideration. While a full-fledged mall might not be for
everyone, Bank Building can easily customize the pro
gram to fit specific needs.”
He added, “Bank Building, with its extensive design/build experience in the financial facilities field,
together with its research into the Financial Plaza and
other new service delivery concepts, is in a unique posi
tion to assist financial managers in creating facilities
that will satisfy future marketing obj ectives. ”
□

<|)

•

UMACC Will Meet at
Wisconsin Dells, July 9*11
The Upper Midwest Agricultural
Credit Council has scheduled its
32nd Annual UMACC Conference in
Wisconsin Dells, Wis., July 9-11.
The meeting theme will be, “The
New Ballgame for Ag Lenders:
Negotiations, Workouts and Finan
cial Packaging.”
Keynote speaker will be John
Marten, staff economist for Farm
Journal Magazine. Other featured
speakers will include: Burgee Am
dahl, president, Farm Credit Ser
vices, St. Paul; Arlan Tengwall,
president, Norwest Bank Mason
City, N.A., Mason City, la.; The
Hon. Steven Gunderson, (Wis.), U.S.
House of Representatives; Ron
Caldwell, Wisconsin director of
FmHA, and Jeanne Market, Carver
County extension director.
There will also be sessions on
managing current loan problems
and on New Funding Packages to
Better Serve Your Farm Borrowers.
Commercial Factors
Announces Record Year
Commercial Factors of Minnesota
announced record sales for fiscal
1985. Company sales for the first
year in business exceeded plan by
100%. The sales level is a start-up
record for the company. The com
pany specializes in financing small
businesses with annual sales of
$100,000 to $5 million through ac
counts receivable financing/factoring. Clients are in a variety of indus
tries and may be manufacturers,
wholesalers, distributors or service
businesses.
Commercial Factors of Minnesota
is part of a nationwide financial ser
vice company headquartered in Los
Angeles. Factoring is an alternative
source of small business financing
that stimulates cash flow and pro
vides working capital. The Bloom
ington office serves the Upper Mid
west region. Becky L. Amble is the
local representative.

Unbeatable
Support.
LaSalle National Bank supports you. With
more than halt a century oi ex p erien c e ...
innovative products... responsive serv ice...
and deep commitment to the market.
Our goal is to help you enhance your over
all performance. LaSalle takes a consulting
approach to correspondent banking, working
closely with you to develop strategies that
improve profits, growth and efficiency. We offer
individualized service an d comprehensive
capabilities, including:
• multiple investment consulting
• credit and financial services
• global trade finance
• merger an d acquisition consulting
• trust, treasury and many other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor
respondent banking.
As your Midwestern neighbor, we share
your perspective an d regional loyalties. As a
Chicago bank with international resources,
LaSalle c a n share m oney-center ban k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
investigating.
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del a n d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with b etter service,
better products an d better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

ABN O LASALLE“
Your Correspondent Banking Bridge
(c 1986 LaSalle National Bank

Named Fed Director
Charles S. McNeer, chairman of
the board and chief executive officer
of Wisconsin Electric Power Com
pany in Milwaukee, has been ap
pointed to the board of directors of
the Federal Reserve Bank of Chi
cago.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

First Illinois Corporation
Announces Acquisition Plans
First Illinois Corporation, Evan
ston, and First Burlington Corpora
tion have announced they have
reached an agreement in principal
for the acquisition by First Illinois
Corporation of First Burlington Cor
poration. First Illinois Corporation
is the parent holding company for
the First Illinois Banks of Evan
ston, W ilmette and A rlington
Heights, and First Illinois Finance
C om pany. F ir s t B u rlin g to n
Corporation is the parent holding
company for LaGrange Bank and
Trust Company and First Burling
ton Bank of Willowbrook.
Under the terms of the proposed
transaction, valued at $28.2 million,
First Burlington stockholders would
receive cash in the amount of $115
per share for each of the 245,409
shares outstanding. It is anticipated
the officers and employees of the
two banks will remain in their same
positions. The proposed transaction
is subject to a definitive agreement,
regulatory approval and approval
by First Burlington Corporation’s
stockholders.
Consummation of the transaction
would increase the total assets of
First Illinois Corporation from $959
million to in excess of $1.2 billion.

change the bank’s name to AMCORE Bank Colonial.
Mr. Coyne noted that, although
the name is similar to that of AMCORE Bank, N.A., Rockford, AMCORE Bank Colonial will remain a
separate entity. Both banks are sub
sidiaries of AMCORE Financial,
Inc., a Rockford-based multi-bank
holding company.
The bank also announced that
William N. Steinhagen has been
elected chairman of the board and
Roger B. Adelman has been elected
to the AMCORE Bank Colonial
board of directors. Mr. Steinhagen, a
board member since 1984, is presi
dent of Rockford Automation, Inc.
Mr. Adelman was formerly presi
dent of Bliss-Adelman Realtors, Inc.
and is now associated with CrosbyAdelman Realtors, Rockford.

Named in Northbrook
James J. Carmody has been
named to executive vice president of
the Cole-Taylor
Financial Group,
Northbrook, and
will head up the
credit and asset
quality control
for the group.
He will retain
his position of
chairman of Dro
vers Bank of
J.T. CARMODY
Chicago.
He joined Drovers Bank as execu
tive vice president in 1978, was ap
pointed president in 1981 and
named to CEO the following year.
From 1974 through 1978, he was a
vice president of First National
Bank of Chicago. Prior to that, he
served 12 years at LaSalle National
Bank, Chicago, where he was a se
nior vice president.

Changes Announced in Skokie
Terence W. Keenan has joined the
staff of the First National Bank of
Skokie as execu
tive vice presi
dent. Mr. Kee
nan was former
ly senior vice
president of the
Continental Agrees to Acquire B ank of E lk
Grove. Before
First of Western Springs
joining
the Bank
Continental Illinois Corporation
of
Elk
Grove,
he
agreed last month to acquire The
was
a
s
s
is
ta
n
t
First National Bank of Western
vice
president/
Springs for approximately $10.5 commercial loans at LaSalle Na
million.
tional Bank, Chicago. Mr. Keenan
The final price will be determined also became a member of the Skokie
on the closing date of the acquisition Banks’ board of directors.
to allow Continental Illinois to re
Promoted to accounting officer at
view the acquired bank’s financial First National Bank of Skokie was
condition. The closing date will be Howard Patner. Mr. Patner was for
set after Continental has completed
Rockford Bk. Changes Name its examination and regulatory ap merly chief accountant in the bank’s
controller department.
Richard T. Coyne, president of proval has been obtained.
Colonial Bank of Rockford, has an
“The First National Bank of
nounced that the board has voted to Western Springs is particularly at
tractive to us because of its strate Chairman Named in Durand
David Nosbisch, executive vice
gic location in the western suburbs,’’
said John B. Tingleff, senior vice president and cashier of Durand
president and head of the Private State Bank, Durand, has been
Banking and Community Banks De named chairman of the Independent
Bankers’ Bank of Illinois (presently
partment.
At year-end 1985, The First Na in organization). Previous to Mr.
tional Bank of Western Springs, Nosbisch’s appointment, the initial
4456 Wolf Rd., had assets of $80 investors of the Bankers’ Bank met
million and deposits of $67 million. to select the interim board of direc
It was established in 1916 and has tors to administer the affairs of the
bank during its organizational pro45 employees.
R.T. COYNE
W.N. STEINHAGEN

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

sume added responsibilities as a
cess. Board members chosen were:
Ben Barton, executive vice presi trust administrator.
dent, Byron Bank.
David Combs, president, First
National Bank, Taylorville.
Wilfred Cross, president, The
•
First National Bank in Oblong.
Randall Dempsey, vice president,
The Pontiac National Bank.
Michael Dove, president, Shelby
County State Bank, Shelbyville.
•
E. Ray Duncan, president, Hard
ware State Bank, Lovington.
Delvin Johnson, president, Valley
Bank & Trust Co., South Elgin.
Robert Karandjeff, president,
® American Heritage Bank, Granite
City.
Marland Kelly, president, First
National Bank in Sparta.
Gene Kirk, executive vice presi® dent, First State Bank of Calumet
City.
R.W. Lott, chairman, Farmers
State Bank, Elmwood.
Continental Illinois Corporation
J.W. (Bud) Singer, president, Cenhas announced it has agreed to ac
® tral National Bank, Mattoon.
quire the First National Bank of
Deerfield and the First Suburban
Bank of Olympia Fields.
Closing dates for both purchases
9
Named in Wheeling
will be set after regulatory approval
Jeffrey W. Taylor has been named has been obtained. The cash pur
executive vice president of Main chase prices of the two transactions
Bank in Wheel
are approximately $8.2 million for
ing, a member of
Deerfield and $4.4 million for Olym
•
the Cole-Taylor
pia Fields.
Financial Group.
At year-end 1985, the First Na
Before assuming
tional Bank of Deerfield had assets
his new title, Mr.
of $64 million and deposits of $58
Taylor was semillion. The First Suburban Bank of
•
nior vice presi
Olympia Fields had assets of $34
dent of the bank.
million and deposits of $31 million
He started with
at year-end 1985.
the bank in 1981
* * *
J.W. TAYLOR
as an associate
•
general counsel and loan officer.
Joseph G. Migely, president of
Before that, he was with Drovers
Bank of Chicago as associate gen Drovers Bank of Chicago since last
eral counsel, and was an associate at year, has been
named its chief
Lurie, Sklar & Simon law firm.
executive offi
cer. He will re
tain his previous
Staff Changes in Lansing
title. Before join
William P. Turner has been ing the bank in
•
elected as a trust officer, and Carol 1984, he was se
J. Brandt has been promoted to a nior vice presi
trust administrator at First Na dent of Marine
Bank, Milwau
tional Bank of Illinois, Lansing.
J.G. MINGELY
Mr. Turner joins the bank after kee, Wis. Prior
•
serving as a trust officer with the to that, he was senior executive vice
Citizens National Bank in Decatur, president and COO of the Bank of
for two years. Mrs. Brandt, who Highland Park, and a vice president
joined the bank in 1971, has been with the First National Bank of
serving as executive secretary in the Chicago, where he worked for 21
® bank’s trust department and will as- years.
•

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Illinois News
31
Thomas D. Lee has been named
executive vice president of BankersTech, a subsidi
ary of First Colo
nial Bankshares.
Previously, Mr.
Lee managed in
ternational and
domestic opera
tions for Citi
bank in both
H o u s t o n and
Chicago. Banke rs T e c h p r o
vides operational services for the
First Colonial group as well as for
other financial organizations in the
six county area.
* * *

Lake View Trust & Savings Bank
has announced the appointment of
James C. Lytle
to vice president
and manager of
business devel
opment for the
bank. Prior to join g in g
Lake
View, Mr. Lytle
was vice presi
dent of the State
National Bank,
J.C. LYTLE
Evanston. A
past mayor of Evanston, he is a
member of the board of governors of
the metropolitan planning council
and founder of the North Cook coun
ty private industry council.

George J. McCarthy, president
and CEO, Chicago Bank of Com
merce, has announced the promotion
of Arlene R. Hudson to assistant
vice president/human resources.
Ms. Hudson joined the bank in
1966 as an assistant cashier. In the
following years, she was active in
both personal banking and person
nel, and in 1977, was elected to per
sonnel officer.
* * *

John J. Frale, executive vice
president of the Franklin Park
Bank, has been elected to the bank’s
board. During his four years with
the Affiliated Banc Group, he has
served as executive vice president of
the Franklin Bank, west zone com
mercial manager for the group and
vice president of Affiliated Bank/
DuPage.
Northwestern Banker, April, 1986

Are you taking
full advantage of your
leasing options?
TermFlexibility

Machinery
Autos

KateStructure

OfficeEquipment
InvestmentTaxCredit

MedicalEquipment
Transportation

•VendorFinancing
Programs

Telecommunications
FBS Leasing offers more kinds
o f lease arrangements, equip
ment loans, and customized
loan packages than anybody
in the Upper Midwest.
We’ve combined that flexi
bility with people who know
your industry, know the Upper

Midwest region and are leasing
experts. And they have access
to all the resources o f First
Bank System, so they can deal
with transactions o f all sizes.
To find out more about the
benefits o f working with FBS
Leasing, call us at (612) 343-1400.

(j||| FBS Leasing
Member First Bank System

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5 First Bank Locations Being Sold
GREEMENTS have been signed
A
for the purchase of five First
Bank locations. They are: Northfield, Worthington and Lakefield,
Minn.; Fort Benton, Mont., and
Sturgis, S.D. The sales are pending
regulatory approval.
First Bank System in mid-August
announced plans to restructure its
banking assets by offering to sell 28
of its banks with 45 offices first to
employees, directors and local com
munity representatives. Sales to
other prospective buyers would be
considered only when employee and
community group offers do not
materialize.
The first employee purchase re
sulting from the restructuring stra
tegy, First Bank Sauk Centre in cen
tral Minnesota, was announced in
January of this year.
• First Bank Northfield, which
had year-end assets of $33.4 million,
will be bought by six directors, in
cluding the bank's president, F.
Donavon Kuehnast.
• First Bank Worthington and its
office in Lakefield, with assets of
$90.8 million, will be purchased by
an investment group headed by
Elden W. Ranee, bank president.
• Harold A. Brown, president of
First Bank Fort Benton, and eight
other bank directors will buy that
Montana bank, which had assets of
$38 million at year-end.
• The Sturgis office of First Bank
of South Dakota, with assets of
$54.9 million, will be bought by Paul
Christen, who also owns First West
ern Bank in Wall, S.D. The Sturgis
office will continue to be managed
by its current president, John E.
Johnson.
The Northfield and Sturgis pur
chase agreements also allow em
ployees and community representa
tives to purchase a percent of the
ownership at later dates. First Bank
Fort Benton and First Bank Wor

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

thington have created an employee
stock option plan for future invest
ments.
Specific purchase terms were not
disclosed.
First Bank System, Inc. (NYSE:
FBS) is the 15th largest bank hold
ing company in the United Staes
comprised of First Bank Minneapo
lis, First Bank Saint Paul and 76
other banks and trust companies,
with 148 banking offices in Minne
sota, North Dakota, South Dakota,
Montana and Wisconsin, and a trust
company in Florida.
Three Promoted in Fridley
Fridley State Bank of Fridley has
promoted three of its employees.
John Gargaro has been promoted
to senior vice president, Marcia J.
Etlicher to vice president and cash
ier, and Mary T. Ingaldson to assis
tant vice president.
Mr. Gargaro joined the bank in
1981, having been employed in
banking for 17 years. Ms. Etlicher
has been with the bank for 22 years
starting in the bookkeeping depart
ment. Ms. Ingaldson joined the
bank in 1969 and was named assis
tant cashier in 1981.
Changes Told in Rochester
Henry F. Dion has been elected as
vice president of commercial loans
at First Bank Rochester. Mr. Dion
most recently served as senior vice
president at Norwest Bank, Cedar
Falls, la., where he had responsibili
ty for credit administration for all
the departments and headed the
commercial business segment. Prior
to that he served as vice president of
commercial loans at the First Na
tional Bank of Mason City, Mason
City, la.
Also appointed at the bank was
Allan C. Sprau as a new director.

33
Mr. Sprau is the founder and presi
dent of Metafile Information Sys
tems, Inc.
Three directors have retired from
the bank. Charles H. Withers, for
mer editor of the Rochester Post
Bulletin served as director since
1961. George F. Walters, chairman
of the board of Waters Intruments,
has been a director since 1975, and
Robert S. Brown, retired president
and general manager of the C.O.
Brown Agency, has been a director
since 1979.
Advanced in Richfield
Barbara Zvorak has been pro
moted to vice president/cashier of
Richfield Bank
& Trust Com
pany. Ms. Zvor
ak joined the
bank in 1963 as
a teller and has
moved through a
number of super
visory positions
on her way up to
vice president.
b. zvo r a k
She is respon
sible for the bank’s lobby opera
tions, in addition to serving as the
bank’s security officer and repre
senting her area on internal man
agement committees.
Joins Audubon Bank
Phyllis L. Beyer has joined the
First State Bank of Audubon as a
vice president.;
She has 28 years
of banking ex
perience in the
D etroit Lakes
area. A t th e
bank, her duties
will include man
agement of in
ternal bank func
tions, customer
P.L. BEYER
service, develop
ment of additional banking services
and lending. Mrs. Beyer is a member
of the NABW and the Business and
Professional Women’s Club, where
she was named 1978 Woman of the
Year.
Appointed in Murdock
James Just has been appointed to
assistant vice president of the First
State Bank of Murdock.
Mr. Ju st joined the bank in 1984.
Prior to this he worked at First
Bank of Minneapolis.
Northwestern Banker, April, 1986

Lloyd P. Johnson, chairman and
CEO of Norwest Corporation, has
announced that
Richard M. Kovacev ich
has
joined the com
pany as vice
chairman, a di
rector of the corp o ra tio n and
chief operating
officer of its
banking group. R.M. KOVACEVICH
Mr. Kovacevich
comes to Norwest from Citicorp,
New York, N.Y., where he was a
group executive and member of the
policy committee. At Norwest he
will assume direct responsibility for
Norwest’s banking business, includ
ing its 77 banks in seven upper midwestern states.
Mr. Johnson also announced that
Richard S. Levitt, vice chairman and
board member, was given the addi
tional title of chief operating officer
of the specialized financial group.
David Jarvis, vice chairman and
chief financial officer, also was
elected to the board.
An office of the chairman was
formed consisting of Mr. Johnson,
Mr. Jarvis, Mr. Kovacevich and Mr.
Levitt.
Mr. Kovacevich joined Citicorp in
1975. Since 1982, he has managed
Citicorp’s international consumer
operations with 1,000 branches
throughout the world.
Before joining Citicorp, he served
as a principal of a New York-based
venture capital firm, and, prior to
that, with General Mills, first as a
planner, then in mergers and acqui
sitions and then as a division man
ager.
*

of W.W. Wallwork, Inc., a vehicle
dealer and lessor. These subsidiaries
are: Wallwork Lease and Rental Co.,
Inc., a truck and equipment lessor
working through related dealerships
in Fargo, Grand Forks, Bismarck
and Dickinson, N.D.; Northwest
Leasing Corporation, an automobile
fleet and general equipment lessor
operating in Fargo and Grand
Forks, N.D., and TEC Leasing, Inc.,
a general equipment and truck
lessor located in Casper, Wyo.
The three operations, with $50
million in gross receivables, now
form FBS Leasing Corporation, a
new subsidiary of FBS. This corpo
ration will relocate operations to
branches in Fargo and Bismarck,
N.D.; Rapid City and Sioux Falls,
S.D.; and Billings, Mont. All will be
located in or near First Banks and
will work in conjunction with those
banks, as well as handle direct trans
actions.
*

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G. BRIGHT

Norwest Bank East St. Paul has
announced the election of Thomas
W. Longlet as
president of the
bank.
Mr. Longlet
has had exten
sive commercial
lending and com
mercial services
experience a t
Norwest Bank
St. Paul where
T.W. LONGLET
he was respon
sible for the bank’s national account
portfolio in Chicago, Detroit, New
York and St. Louis. He also played a
key role in the development of Nor
west Bank St. Paul’s metro area spe
cial technologies lending group.
*

First Bank System Business Fi
nance Corporation has acquired the
stock of three subsidiary operations

Minneapolis.
Douglas A. Hedin has been named
vice president and manager of dealer
division. He has 15 years of banking
experience.

A.C. FLOYD

L. RUHL

GeorgieAnn B. Bright and Amy
C. Floyd have been appointed to as
sistant vice presidents and man
agers. Ms. Bright, who has 20 years
of banking experience, will be in the
consumer investment products divi
sion. Ms. Floyd, who has been with
the bank three years, will be in the
financial planning division.

D. SHARKEY

T. MURPHY

Lisa A. Ruhl has been named
The following changes have been
announced by National City Bank of assistant vice president of deposit

If this inform ation w as on every house
in tow n, you wouldn’t need our
S treet Address Directory.

A great marketing tool
for business people!
m j j o u ’ve targeted a particular neighborhood
^ j f o r a customer search. But you don’t have
I names and phone numbers. The ad only
gave a phone number, but you want to know
where the property is.
Virtually every business-whether serving
other businesses or consumers-will find North
western Bell’s Street Address Directory an
indispensable marketing tool. Whether you’re in
real estate, insurance, banking, contracting, col
lections or any other business field, the directory
can help you identify and contact new leads, con
firm sales calls, or canvas neighborhoods quickly
and professionally.
The Street Address Directory is similar to
a standard telephone book. But. The information
is arranged differently. The front half of the book is
arranged by street address, and the back half by
consecutive phone numbers.
if you have a street address you can
find out the phone number and resi
dent’s name!
if you have a phone number you can
find out names and addresses!

And, Northwestern Bell’s Street Address
Directory has the most up-to-date information you
can g e t-it is up-dated every six months. (Or, as
your needs require, you can get an annually up
dated edition.) It’s available for Minneapolis, MN;
St. Paul, MN; Omaha, NE; Des Moines, IA; Cedar
Rapids, lAand Fargo, ND.
For more information call 1-800-3284535 ext. 1203. Or, return the coupon
below.
Well have a representative contact you
immediately.
Another quality Northwestern Bell Product
for Business.

Northwestern Bell
A US WEST COMPANY
I want to know more about leasing Northwestern Bell’s
Y P Q I Street Address Directory. Please have a representative
I C O ! contact me as soon as possible.

Name/Title________________________________________
Company_________________________________________

a ' -

Apartment numbers
are also listed!

Street Address____________________________________
City/State/Zip______________________________________
Phone Number____________________________________
Best time to call____________________________________

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Send today to: Northwestern Bell Response Center
P.O. Box 1040
Minneapolis, MN 55440

1203

Minnesota News
36
operations division. She has been
with the bank since 1974.
Deborah L. Sharkey has been ap
pointed to investment officer and
manager/National City Securities.
Timothy M. Murphy has been
named corporate trust officer of cor
porate trust division. He has been
with the bank for two years.
* * *

The First Banks recently an
nounced the promotions of Alan F.
Naylor to execu
tive vice presi
dent, national
and international
banking, FBS
metropolitan di
vision; Ronald
A. Larson to se
nior vice presi
d e n t, le a s in g
g ro u p , F ir s t
A.F. NAYLOR
Bank Minneapo
lis, and John C. Ferber to executive
vice president, real estate banking,
FBS metropolitan division.

in the area.
Thomas J. Skinner, vice president
will head the division. Mr. Skinner is
a veteran banker with 25 years of
banking experience. Prior to form
ing the new division he was vice
president and director of human re
sources at American.

T.J. SKINNER

T.A. SABER

Replacing Mr. Skinner as vice
president and director of human re
sources is Terry A. Saber, who has
seven years of human resources and
bank management experience. Prior
to joining the bank, she was human
resources director and vice president
of administration at Western State
Bank.
*

Norwest Bank St. Paul, N.A., has
announced several staff changes.
David Krentz
has been pro
moted to vice
p re sid en t and
cashier in the op
e ra tio n s d iv i
R.A. LARSON
J.C. FERBER
sion. He joined
Norwest
Bank
Mr. Naylor has been with the
St.
Paul
in
1966.
First Bank System since 1957, most
Ellen
Thorson
recently as senior vice president,
been pro
First Bank Saint Paul. He was pro has
moted
to vice
moted to senior vice president in president/commercial
real estate.
1980.
She
joined
the
bank
in
1983 and is
Mr. Larson joined the bank in
presently
assistant
vice
president
1970. He has been vice president for
commercial
real
estate.
the leasing group of First Bank Min
Susan Sauro has been promoted
neapolis since 1984.
to
real estate officer. She joined the
Mr. Ferber, who joined First
bank in 1985 and is presently a real
Bank Minneapolis in 1962, has been
senior vice president for real estate
banking since 1978.

elected as a director of the bank. He
will also serve as secretary of the
board. Mr. Johns joined the bank in
1974 and currently serves as senior
vice president, commercial banking
group at the bank and at Norwest
Corporation.
*

Dennis K. Dingman has been ap
pointed vice president and division
head of the First
Bank Minneapo
lis (FBM) health
care division. As
head of the divi
sion, Mr. Dingman will lead the
bank’s progress
in p ro v id in g
credit and non
credit products
D.K. DINGMAN
and services to
the health care industry on a na
tional basis.
Mr. Dingman, who has been with
First Banks since 1969, most recent
ly served as vice president and divi
sion head of the national-upper mid
west division at First Bank Saint
Paul. Prior experience includes
seven years as head of the FBSP
commercial banking division.
* * *

Independent State Bank of Min
nesota has announced the appoint
ment of two new official staff mem
bers.
Charles C. Blair has been ap
pointed as a vice president and se
nior loan officer of the bank. He
spent 17 years with the bank exami
nation department of the Federal
Reserve Bank of Minneapolis, most
recently as an assistant chief exami
ner.

* * *

American National Bank of Saint
Paul has announced the formation of
a new civic banking division to serve
the banking needs of not-for-profit
organizations. The division will tar
get governmental instrumentalies,
foundations, professional associa
tions, charitable organizations, civic
groups and other non-profit groups
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C.C. BLAIR

E. THORSON

S. SAURO

estate supervisor.
Raymond A. Johns has been

L.D. GREINER

Lori D. Greiner has been pro
moted to investment officer in the
bank’s trading department. She has
been with the bank for over four
years holding various positions with
the investment operations area.

Minnesota News

permit small businesses to benefit Added in Little Falls
from government assistance with a
First National Bank, Little Falls,
minimum of government involve has announced the addition of Paul
ment. Therefore, lenders perform F. Wichmann as
most servicing and liquidations ac a cashier. Mr.
tions without referring to the SBA. Wichmann joined
Preferred Lender banks must ser th e b an k in
vice their guaranteed loans using 1985. In his new
guidelines and procedures indentical position he will
to those in their non-SBA portfolios. be responsible
In addition, participating banks
for bank opera
must attempt to further SBA na
Melody Holland-Rehder has been tional goals, such as providing equal tions and per
sonnel and will WÊË* m
UHL
elected assistant vice president, access to credit.
be
involved in I f f w ic h m a n n
commercial lendasset and Labili
in g of F ir s t
ty
management for the bank. He
Bank Security,
comes
to the bank from a similar po
St. Paul, with re
sition
at Americana Bank in Hay
Named
in
Winona
sponsibility for
ward.
David H. Keller, president of
the maintenance
Lake Center Industries, has been
of credit quality
elected as a new member of the NABW Conference Set
on an existing
board of The Merchants Holding
portfolio, devel
The Minnesota National Associa
Company.
opment of new
tion
of Bank Women State Confer
The company’s primary subsidi
business and in M. HOLLAND-REHDER
ence
will be held May 1-2 at the Min
ary corporation, The Merchants Na
volvement in the
neapolis
Plaza Hotel. The 1986 con
community. She most recently tional Bank of Winona, has pro
served as assistant vice president, moted five of its state members. ference theme is: “Managing for
commercial lending at First Bank They include: Dan F. Kingsley from Profit: The Key to Power.’’ The pro
Northtown, a position held since assistant vice president to vice gram will address profitability as
1984. Prior to that she served in a president and manager of the com the key to power through general
variety of positions at First Bank mercial loan department; John C. sessions, luncheon topics and work
Robbinsdale. She began her career Doyle from assistant cashier to as shops. Contact Joan Trenda at (612)
with First Bank System in 1977 at sistant vice president; Scott Tinkle- 370-4077 for more information.
First Bank Southdale in Missoula, berg from administrative assistant
of the installment loan department
Mont.
to installment loan officer; David Promoted in Fergus Falls
* * *
Krage from administrative assis
Charles L. Kretchman, president
tant of the installment loan depart of Norwest Bank of Fergus Falls,
First Bank Minneapolis has made ment to installment loan officer, and
its first loan through the Small Busi Sue Hovel from administrative as has announced
ness Administration’s (SBA) Pre sistant of the real estate loan depart the promotion of
Shirley Pribberferred Lender Program (PLP), a sta ment to mortgage loan officer.
now
to a custo
tus awarded the bank by the SBA in
mer service offi
1985. First Bank Minneapolis is the
cer. Ms. Pribberonly Twin Cities bank and one of
now joined the
just 115 banks across the United
staff at Norwest
States and only two in Minnesota to Elected in Rochester
receive the PLP designation.
Virginia Bartleson has recently in 1966 and has
The $335,000 SBA-guaranteed joined Norwest Investment Ser served in various
loan was made to Boarman Archi vices, Inc., in Rochester, as an assis c ap a c itie s in S. PRIBBERNOW
tects, Inc. to buy and renovate Hen tant vice president, municipal bond clu d in g te lle r
nepin Hotel, a designated historic sales. She will be located at Norwest manager. Prior to 1966, she was em
landmark at 201 First St., N., Min Bank Rochester and will specialize ployed by Federated Insurance in
in the sale of tax-exempt municipal Owatonna.
neapolis.
The company also received a securities, money market instru
$25,000 loan from the Greater Min ments and government obligations.
neapolis Metropolitan Housing Cor She is a licensed real estate broker Appointed in Roseville
The Roseville Bank has an
poration’s small business revolving and a fully registered securities rep
nounced the appointment of Ray
loan fund.
resentative.
Marlys Jones has been elected a Udelhofen and D. Dean Hansen to
Preferred Lenders have authority
to automatically guarantee small credit compliance officer at Norwest its board. Mr. Udelhofen, who has
business loans above $100,000 with Bank Rochester. She joined the been with the bank since 1962, is a
out SBA approval. The SBA gua bank’s commercial lending depart senior vice president/loan depart
rantees 75 percent of the loan up to ment in 1979. In 1983, she moved ment, and Mr. Hansen, a senior vice
$500,000.
into the credit assistant position in president and COO, has been with
the bank since 1968.
The objective of the program is to the credit department.

Bremer Financial Services, Inc.
has announced the addition of Ray
mond Brueggemeier as an assistant
vice president/ag credit. He had
been with Farm Credit Services as a
review team manager. Prior to that,
he held various credit positions at
PCA of Madison and FICB in Saint
Paul.
* * *

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

B.M. BRODERICK, JR.
Pres.-Elect

B. SOLUM
President

L. NESS
Vice President

J.I.M. SCHWARTZ
Exec. Vice Pres.

J. HAERTER
Immed. Past Pres.

South Dakota Bankers Association
94th Annual Convention
May 11-13, 1986
Ramada Inn, Sioux Falls

HE 94th annual convention of the South Dakota
T
Bankers Association features a host of varied
speakers and special activities. The event will be held
May 11-13 at the Ramada Inn in Sioux Falls.
In addition to the general session, several activities
have been planned. Kicking off the convention will be a
“Return To The ’50s” party and dance. Other activi
ties include men’s and ladies’ golf tournaments, a fun
run and tours of the Sioux Valley Hospital and Great
Plains Zoo. The Swinging Ambassadors musical group
will provide entertainment at the final evening’s ban
quet.
Heading up the association this past year has been
President Burdette C. Solum, district president of Norwest Bank South Dakota, N.A., Watertown. He has
been assisted by President-elect B. Michael Broderick,
Jr., president of First American Bank, Canton; Vice
President Larry Ness, president of First Dakota Na
tional Bank, Yankton, and Executive Vice President
J.I. Milton Schwartz, Pierre.
The advanced program schedule follows:
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sunday, May 11
P.M.
4:00
6:00
A.M.
8:00

8:30
9:30

•
Registration until 8:30 p.m., Exhibit Hall
opens
“Return to the ’50s” reception, dinner and
dance.
Monday, May 12
SDBA Registration Desk opens
(Hospitality and Special Activities Center)
Bankers Two-Mile Fun Rim
(Hospitality and Special Activities Center)
Exhibit Hall opens
General session opens
The Honorable William Janklow, Governor of
South Dakota
Address: “Well Managed, Poorly Led”
Dr. Jon Ericson, Chairman, Department of
Speech Communications, Drake University,
Des Moines, Iowa.
ELECTION OF SDBA OFFICERS

Strength
in Service.
Mark Paradise
Correspondent Banking
Officer

Patty Stansbury
Investment Representative

Lon Kelling
Ag Lending Officer

Doug Schmidt, Vice President Commercial Lending

Phyllis Foster
Investment Representative

H O W WE SHARE OUR STRENGTH WITH YOU:

Gary Stevenson
Vice President
Correspondent Banking

712-277-0618

• Item Clearance Serices to maximize available funds.
• Investment Services to handle Fed Funds, money transfers, security purchases and sales.
• Loans for a full range of services, including overline and liquidity loans, assistance with your
ag loans, commercial and bank stock loans.
• Credit Card Services for merchants and consumers for both MasterCard (including
MasterCard Gold) and Visa.
• Data Processing to put you on-line to the Banks of Iowa computers, the area’s most
successful EFT/Instant Access processor.
Share our strength in service — the kind of strength you know will be there to help you, now
and for years to come!

See you at the South Dakota Bankers Convention, May 1 1 - 1 3 .

First N ational B ank m
Sioux City, Iowa 51101

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member FDIC

A ‘BANKS OF IOWA’ BANK

BetaWest Properties, Inc. is part of U S WEST.
That means a lot of stability and breadth of expe
rience that enables us to meet your corporate
real estate needs. We are owned by one of the
largest corporations in America. Its assets are
approximately $17 billion, 1984 revenues were
$7.2 billion, earnings were $887 million. It’s
owned by 1.2 million shareholders and has over
70,000 employees.
BetaWest is both a real estate owner and devel
oper. Our capabilities and experience gives us the
ability to meet a wide variety of property develop
ment needs for a broad spectrum of client users.
BetaWest operates on a national scale. For
BetaWest developments, our capabilities include:
site evaluation, negotiations for the purchase or
sale of buildings and/or raw land, construction

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Us Because O f W hat’s Behind Us.

project management, space planning, value engi
neering analysis, property development, financial
packaging, joint ventures, sale/leaseback, syn
dications, property management, lease admin
istration and employee relocation.
When you’re thinking about making a move
in corporate real estate, call on the company
with all the resources you need. BetaWest
\ Properties, Inc., 1999 Broadway, Suite 2000,
Denver, Colorado 80202, (303) 292-7000.
Regional offices in Seattle, Washington
and Phoenix, Arizona.

BetaWest. Breaking new ground
in corporate real estate.

A LIJ3MEST Com pany

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Q.H. STERN

P.M.
2:30
1:00
1:30
2:00

A.M.
8:30
9:30

P.M.
12:30
7:00
8:30
10:00

M.W. OLSON

QOV. W. JANKLOW

General session adjourns
Men’s Golf Tournament (Tee-off times assigned)
Minnehaha and Westward Ho Courses
Ladies’ Golf Tournament (Tee-off times as
signed) Westward Ho 9-hole Course
Depart: Great Plains Zoo Tour
Hospitality and Special Activities Center
Depart: Sioux Valley Hospital Tour
Hospitality and Special Activities Center
Remainder of afternoon and evening is free!
Tuesday, May 13
DR. W.C. FREUND

J. ERICSON

SDBA Registration Desk opens
Exhibit Hall opens
General session opens
Address: “What’s Ahead For The Economy”
Dr. William C. Freund, chief economist, New
York Stock Exchange, New York, New York.
Mr. Gary Stem, president, Federal Reserve
Bank, Minneapolis, Minnesota.
Mr. Mark Olson, ABA president-elect, presi
dent, Security State Bank, Fergus Falls, Min
nesota.
General session adjourns
Past Presidents’ all convention luncheon.
Annual Banquet
“The Swinging Ambassadors”
Convention Adjourns.

□

dent, and Mark R. Paradise, correspondent banking officer.
Security National Bank: Gene
Hagen, president; Dan Augustine,
senior vice president; Mike Moreland and Dennis Nahnsen, vice
Donald Lindeman, assistant vice president; Ron Kiel, correspondent
president, and William Carlson, in bank officer; Wilma Weeks, corres
vestment officer.
pondent services officer, and Stuart
Marquette Bank Minneapolis: Becker, correspondent bank repreDick Holmes, assistant vice presi sentative.
dent.
Sioux Falls
Norwest Bank Minneapolis: John
First National Bank in Sioux
P. Sampson, senior vice president; Falls: Tom Long, Dennis Kirkeby
Dave Butterwick, commercial bank and Jerry Feldhaus.
ing officer; Ted Taney, Norwest In
Norwest Bank South Dakota,
vestment Services, Inc.
Sioux Falls: C.P. “Buck” Moore,
Sioux City
First National Bank of Sioux SOUTH DAKOTA NEW S.. .
City: Gary W. Stevenson, vice presi (Turn to page 45, please)

You Will See Them at the 94th Annual
South Dakota Bankers Convention
HE following m etropolitan
T
bankers and service and equip
ment dealers have indicated that
they will be attending the annual
convention of the South Dakota
Bankers Association in Sioux Falls,
May 11-13.
Denver
First Interstate Bank of Denver:
Peter Holekamp, correspondent
bank officer.
Minneapolis/St. Paul
American National Bank, St.
Paul: James Russell, vice president;
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

THE SWINGING AMBASSADORS

^
9

43
Named in Wisconsin Rapids
Darwin A. Blanke has retired as
president of First National Bank in
Wisconsin Rapids. Alfred C. Sweet
has been named to succeed Mr.
Blanke as president of the bank.

Three Banks Sign
Acquisition Agreement
Rural Financial Services, Inc.,
parent of Dousman State Bank and
Mansfields State Bank, Johnson
Creek, has signed a definitive agree
ment to join F & M Financial Corpo
ration headquartered in Menomonee
Falls. A signed definitive agreement
to join F & M was also announced by
The Farmers State Bank, Sullivan.
The Sullivan Bank had previously
announced they had entered into a
letter of intent with F & M. When
completed, the transaction will per
mit Dousman State Bank, Mans
field State Bank and The Farmers
State Bank to become banking sub
sidiaries of F & M Financial Services
Corporation.
The agreements were announced
by William L. Owens, president of
Rural Financial Services, Inc.,
Donald J. Reinke, executive vice
president of The Farmers State
Bank and Richard P. Klug, presi
dent and CEO of F & M Financial
Services Corporation.
On December 31, 1985, Dousman
State Bank reported deposits of
$14,851 and total assets of $16,313;
Mansfield State Bank’s deposits
were $11,835 and total assets were
$13,498; The Farmers State Bank’s
deposits were $11,059,478 and as
sets were $12,413,901. F & M Finan
cial Services Corporation reported
total assets of $250,006.
Proposed terms of the agreement
have not been disclosed. Completion
of the transaction requires certain
regulatory approvals. It is expected
that the acquisition would be con
summated by the fall of 1986.

Changes Made in Chilton
Paul A. Hugo has been named
president and CEO of The Commer
cial Bank, Chilton. In addition, he is
also trust officer for the bank.
Mr. Hugo had worked for the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

First Wisconsin National Bank of
Milwaukee and the Milwaukee
Western Bank.
Other officers named by the
bank’s board were Arthur W. Hugo,
chairman; James W. Pfeffer, vice
president, Charles M. Thiel, agricul
tural officer; Joanne Heimermann,
cashier, and Hazel Jencks, Ruby
Pohland and Jacqueline Schaefer,
assistant cashiers.
Three Named in Brown Deer
Capital One Corp./Brown Deer
has announced two promotions, as
well as an addi
tion to its ex
panded re ta il
banking depart
ment.
M ark
J.
Nowak has been
named a vice
p re sid e n t, re
sponsible for the
bank’s commer
M.J. NOWAK
cial credit ser
vices. A certified public accountant,
he joined the bank in 1979 and most
recently had been assistant vice
president.
Mark H. Scholz has joined the
bank as a personal banking officer.
He previously held several manage
ment positions at another major
Milwaukee bank.

Named in LaCrosse
Jane J. Limbo has been named
assistant vice president of profes
sional and executive banking for
First Bank LaCrosse. Before joining
the bank, Ms. Limbo was assistant
vice president and manager at Stan
dard Chartered Bank in Chicago, 111.

Joins Shawano Bank
Dennis Pecher recently joined the
staff of Citizens State Bank, Shawa
no, as assistant vice president/mortgage loans. For the past 14 years,
Mr. Pecher was associated with
Hear-O-Lakes Savings and Loan
and Security Savings and Loan of
Rhinelander.

Added In Menomonee Falls
Philip C. Beisbier, formerly assis
tant vice president and manager of
the Jackson office of F & M Bank
Slinger has joined F & M Bank
Menomonee Falls and will be as
signed to the personal banking divi
sion.
Mr. Beisbier joined F & M Bank
in 1978 from Associated Financial
Services where he managed the
firm’s Menomonee Falls office.
Promoted in Green Bay
Patrick W. Zehms has been pro
moted from account administrator
to assistant trust officer of Valley
Trust Company in Green Bay. His
responsibilities will include estate
probate, personal trust administra
tion and IRAs.

Promoted in Madison
Daniel S. Debraal has been pro
moted to a bankcard officer at the M
& I Bank of Madison. He came to
M.H. SCHOLZ
J. LARSON
the bank in 1983 and has worked in
Jeff Larson, most recently a fi the charge card division as a mer
nancial analyst, has been promoted chant representative and a support
to the position of commercial bank services coordinator for the corres
ing officer.
pondent banks and credit manager.
Northwestern Banker, April, 1986

44
an assistant vice president. Prior to
joining the bank, he was employed
as a bank examiner for the Federal
Deposit Insurance Corporation.
Sandra Gresh has been promoted
to administrative assistant. She has
been with the bank since 1983. Prior
to her career in banking, she was em
ployed by a Northwood law firm.

Added in Minot
James F. Searcy has been added
as senior vice president/trust admin
istration of First American Bank
and Trust of Minot.
He was senior vice president for
Midwest Commerce Banking Com
pany in Elkhart, Ind., since 1969.
Prior to working at Midwest Com
merce Banking Company, he was
employed by Continental Illinois
National Bank and Trust Company
of Chicago. Mr. Searcy has been an
AIB instructor and an instructor at
various professional schools and
speaker at many conferences.
Jim Bonnichsen has been ap
pointed as an assistant vice president/commercial loan officer at the
bank. He comes from Union State
Bank in Hazen, where he was assis
tant vice president of commercial
loans. Prior to that, he was a branch
manager for Midwest Federal Sav
ings Bank in Hazen.

1984 as an assistant vice president/
commercial loans. In 1985, he was
appointed to assistant vice presi
dent and manager of the executive
and professional department.

Named in Bismarck
Steven D. McLaen has joined the
staff of Norwest Bank Bismarck,
N.A. as vice president/manager agri
cultural loan department. Before
joining the bank, he was associated
with the Farm Credit Services of
Bismarck/Mandan as a senior loan
officer/appraiser for six years.
Marlin King has been named as
sistant vice president of the bank.
He joined Norwest in 1983. Prior to
joining the bank he worked as a
landman with Cody, Inc.

Ag. Conf. Set For April 17-18
The North Dakota Bankers Asso
Linda K. Simpson has been pro
moted to financial sales officer and ciation A gricultural committee,
manager of the financial sales de under the leadership of Don Mattepartment. She is a graduate of the son from the Towner County State
North Dakota School of Banking Bank, Cando, has completed plans
and the School of Bank Marketing. for its 1986 Agricultural Credit Con
ference to be held April 17-18 at the
Gladstone Inn, Jamestown.
Three Advance in Northwood
Otto Doering, ag economics pro
Three employees of Northwood fessor at Purdue University will
open the program. The sessions will
State Bank have been promoted.
focus on working with various
M
ike
G
ranThree Promoted in Fargo
groups involved with agriculture,
lund
is
now
vice
Three promotions on the staff at
the atto rn ey general’s office,
p
resid
en
t.
He
First Bank Fargo have been an
FmHA, and farm customers.
joined the bank
nounced. Steven
Dr. William Dando, director of
in
1981.
Prior
to
G. Lovas has
Soviet
ag research at the University
joining
the
bank,
been promoted
of
North
Dakota, will offer a unique
he
was
employed
to vice president/
insight
into
the Soviet food pro
as
a
loan
officer
commercial
gram.
A
dinner
and entertainment
with
the
Norloans. He began
have
been
planned
for Thursday even
west
Bank
Cor
his banking ca
ing
to
include
spouses.
Marvin Dun
p
o
ra
tio
n
and
reer a t F irs t
M. GRANLUND
can, senior deputy governor of the
worked
in
offices
Bank Fargo in
in Thief River Falls and Marshall, Farm Credit Administration, Wash
1979 as a man
ington, D.C., will conclude Friday’s
Minn.
agement trainee.
S. LOVAS
session.
Since then, he
has held various positions at the
bank with the most recent as assis
First Bank System
ta n t vice president/commercial
Appoints
Three
loans.
First Bank System of North Da
Bill G. Lee has been promoted to
kota, has appointed three people.
vice president and manager of the
Randi L. Borth has been named as
executive and professional depart
a regional controller. He was former
ment. Previous to joining the bank
ly the financial planning officer for
Mr. Lee was vice president of the
M.
NELSON
S.
QRESH
First Bank Bismarck.
State Bank of Lakota for 10 years.
Craig Weiss has been named as a
Mark Nelson has been named as
He started at First Bank Fargo in

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B. LEE

L. SIMPSON

North Dakota News

regional financial analyst. He was
formerly the financial analyst for
First Bank Fargo.
Gordon L. Schroeder has been
named as a regional human resource
officer. He was formerly the human
resource officer for First Bank Far
go.
Belfield Bk. Promotes Three
The First National Bank of Bel
field has recently promoted Mari
anne Miller from cashier to internal
auditor, Joyce Reisenauer from as
sistant cashier to cashier and Robert
Shypkoski from assistant loan offi
cer to loan officer.
Mrs. Miller has been employed by
the bank since 1969. Mrs. Reise
nauer has been employed by the
bank since 1976 and has been in
charge of the EDP department for
several years. She is also an opera
tions officer. Mr. Shypkoski joined
the staff in 1985.
NABW State Conference
Scheduled for April 23-25
The North Dakota Association of
Bank Women will hold its state con
ference April 23-25 at the Double
wood Inn in Fargo.
The conference theme is “Manag
ing for Profit-The Key to Power.”
The goal is to help attendees learn
more about profitable ways of doing
business.
Wendy Reid Crisp, editor of Sav
vy magazine is scheduled as guest
speaker. She will address the group
on April 24 at 7:30 p.m. The general
session will begin at 9:30 a.m. on the
24th.
Heading the conference planning
are co-chairman Jan Kolrud, execu
tive banking officer, First Bank Far
go, and Penny Kotte, compliance of
ficer at First Bank Fargo. For more
information call (701) 280-3500.

Two Elected in Bismarck
Bank of North Dakota President
H.L. Thorndal has announced that
Susan Seminary has been hired as
an assistant auditor at the Bank of
North Dakota in Bismarck. In addi
tion, the state industrial commis
sion has appointed Julie Kubisiak to
assistant director for the North
Dakota Guaranteed Student Loan
Program.

S. SEMINARY

J. KUBISIAK

Before joining the bank, Ms.
Seminary held the position of senior
auditor at Norwest Audit Services,
Inc., in Moorhead, Minn.
Ms. Kubisiak has been employed
in the student loan department since
1979. Prior to her promotion, she
was a loan officer/student loans.

Selzle, field representative.
Daktronics, Brookings, S.D.: Bud
Weisser, sales representative.
Modern Banking S ystem s,
Omaha, Neb.: M.J. Reynolds, re
gional sales manager, and Kevin Mc
Cormick.
CEO Elected in Sioux Falls
Norwest Corporation has an
nounced that C.P. “Buck” Moore,
its regional president for South Da
kota, has been elected to chairman
and CEO of Norwest Agricultural
Credit, Inc., headquartered in Sioux
Falls, with lending officers in Fair
mont, Minn., Lexington and York,
Neb., and Spencer, la.
Norwest Agricultural Credit is
funded by Norwest Corporation to
supplement credit available to agri
cultural producers and agri-busi
nesses from Norwest Banks.
Mr. Moore also serves as chair
man and CEO of Norwest Bank
South Dakota, based in Sioux Falls
with branches in 21 South Dakota
communities. He began his banking
career with the Great Falls PCA and
Federal Land Bank in Montana in
1950 and with Norwest as an agri
cultural lender at Norwest Bank
Great Falls in 1952. In 1969 he was
elected president of Norwest Bank
Aberdeen and elected president of
Norwest Bank Sioux Falls in 1976.
He became regional president in
1982.

Appointed by NDBA
Diane Aim has been appointed as
North Dakota Bankers Association
insurance manager, a newly-created
position.
Ms. Aim will be responsible for
marketing bankers’ blanket bonds,
directors and officers liability insur Two Elected in Sioux Falls
ance, and other specialized cover
Brenda Bethke has been named a
ages for banks through Banclnsure, managing officer of Western BankNBDA’s insurance company.
East in Sioux Falls. She brings sev
eral years experience in both person
SOUTH DAKOTA NEWS. . .
nel banking and financial manage
(Continued from page 42)
ment.
chairman of Region VI, Norwest
Corporation; Sid Bostic, president,
Sioux Falls branch; Don Hooper,
vice president, Financial Institu
tions Group/Middle Market; Eric
Hohman, client executive, Financial
Institutions Group, Sioux Falls.
Correction!
Pete Cappa, vice president com
In the list of “Largest North mercial banking, Rapid City office.
Dakota Banks” published in last
month’s issue, First Bank Bismarck Banking Equipment and Other Firms
B. BETHKE
L. HODGIN
was liste d w ith d ep o sits of
American Data Technology,
$140,782,000. That figure repre Schaumberg, 111.: Dick Aird, vice
Linda Hodgin has been elected as
sented only the bank’s time depos president-marketing, and Rich Mil a retail managing officer of Western
its. Total deposits at 1985 year-end ler, Sioux Falls manager.
Bank-Downtown, Western Bank’s
were $168,480,000. This total also
Brandt, Omaha, Neb.: David corporate headquarters. Ms. Hodgin
elevates First Bank Bismarck to its Grimes, sales manager, and Scott has been with the bank for over 12
correct ranking as the fourth largest Grimes, sales representative.
years, with seven years in bank man
bank in North Dakota.
Dawson Hail, Fargo, N.D.: Norm agement at the East office.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

46
president and owner of Korn Buick
in Kalispell.

Changes Made in Glendive
Keith E. Robinson has been
elected president of the First Na
tional Bank of Glendive, and Ted
Sell has been elected as vice presi
dent and cashier.
Other appointments at First Na
tional include Gary T. Badley as
head of the commercial loan depart
ment, and Roland O. Olson, who will
fulfill the lending functions of the
real estate department.
Elected in W olf Point
Michael D. Miller has been elected
president and CEO of Citizens First
Bank of Wolf Point. Mr. Miller has
been associated with Farm Credit

Services of St. Paul for the past
eight years, most recently as man
ager with Farm Credit Services of
Fargo, L isborn and Edgeley
branches.

Promoted in W. Billings
Connie Marshall has been pro
moted to vice president at First In
terstate Bank of West Billings. She
joined the bank in 1982 as an assis
tant vice president. Previously, she
had worked for First Interstate
Bank of Billings for 12 years in the
installment lending, personal bank
ing and marketing departments.

Kalispell Bank
Announces Changes
First Interstate Bank of Kalis
pell, N.A., has announced the retire
ment of Arthur L. Rasmussen from
the bank’s board. Mr. Rasmussen
ended 20 years of service to First In
Dick Paasch was named a loan of
terstate as of January. He is presi
ficer
at the bank. Prior to this posi
dent of Kelly Main Street Furniture.
Elected to succeed Mr. Rasmus tion, he was in the Air Force for 20 ^
sen was Dan Korn, Jr. Mr. Korn is years, retiring as a Lt. Colonel.

Examiner Division of Banks, Che
yenne.
VP Named in Casper
^
Former American National Bank
of Eastridge President William W.
Woodworth III has been named vice
president and manager of special
credits at First Interstate Bank of 0
Casper. Mr. Woodworth has been in
banking for 14 years.
Douglas Bk. Acquired
First Wyoming Bank of Douglas,
a member bank of First Wyoming
Bancorporation, has purchased the
$13 million First National Bank of
Douglas, which was declared insol
vent.
David R. Johnson, chairman,
president and CEO of First Wyom
ing Bancorporation, said the failed
First National Bank will be merged
into the existing First Wyoming
Bank of Douglas.
The merger took place on the
weekend of Feb. 22, enabling many
First National customers to access
their funds at First Wyoming Bank

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

on February 24.
First Wyoming Bancorporation is
Wyoming’s largest domestic finan
cial institution with assets exceed
ing $800 million.
VP Named in Cheyenne
Michael Dowling has been named
assistant vice president of Cor
porate Credit Administration at
First Wyoming Bancorporation. Mr.
Dowling has been with First Wyom
ing Bancorporation since May,
1984, serving in the audit depart
ment. Previous to that position he
served as a bank examiner for the
State of Wyoming - Office of State

Two Promoted in Casper
First Interstate Bank, Casper, re
cently announced the promotion of
Lorraine J. Newby to a loan officer/
real estate finance, and Darrel E.
Black to a loan review officer/com- f
mercial lending.
Ms. Newby served as loan under
writer for the bank previous to her
promotion. She had worked for other
financial institutions for three years. 0
Mr. Black was a loan review an
alyst prior to his appointment.
Before joining the bank, he was a
manager for Citicorp Financial Ser-

47
nounced that effective March 1,
1986, its name will be Colorado Na
tional Bank—Grand Junction.

Pres. Elected in Boulder
Steven W. Pettit has been elected
president of Colorado National Bank
—Boulder. He
succeeds Gary
G. Cassell, who
w as re c e n tly
elected president
of Colorado Na
tio n al B a n k Exchange.
Prior to his
e le c tio n , M r.
Pettit held the
S.W. PETTIT
position of se
nior vice president—loan adminis
tration of Colorado National Bankshares, Inc., a Denver based bank
holding company of which CNB—
Boulder is a subsidiary.
Mr. Pettit has 19 years banking
experience, and joined Colorado Na
tional Bankshares, Inc. in 1982 as
vice president of subsidiary opera
tions. He formerly was with the
Comptroller of the Currency, where
he held the position of deputy re
gional administrator.

•

Central Bancorporation
Elects President
Robert A. Krane has been elected
president and chief operating officer
of Central Bancorporation, Inc.
Mr. Krane has
27 years of bank
ing experience.
He joins the cor
po ration from
Norwest Corporation in Min
neapolis, where
he served as vice
R.A. KRANE
chairman and di
rector. He has served in a number of
other executive positions, including
president and director of Norwest
Bank Omaha, N.A., and of Norwest
Bank Des Moines, N.A., as well as of
the holding company, Norwest Corporation.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Pres. Named in Englewood
Gary J. DeFrange, formerly se
nior vice president and manager of
retail banking at
First Interstate
Bank of Denver,
has been named
as president and
chief executive
officer at First
Interstate Bank
of Englewood.
He replaces Wil
liam C. Neill,
who has resigned
to pursue personal interests.
Mr. DeFrange joined First Na
tional Bank of Denver, predecessor
bank to First Interstate, in 1970 as a
trainee in commercial banking. Be
fore being named manager of the re
tail operation, he was senior vice
president and manager of the admin
istration division.
Pres. Elected in Colo. Springs
Gary G. Cassell has been elected
president of Colorado National Bank
—E x c h a n g e ,
Colorado Springs.
He su cceed s
Harold U. “Hal”
Littrell, who is
retiring from the
bank.
Mr. Cassell’s
previous posi
tion was as pres
ident of Colo
rado N ational
Bank—Boulder. He also has held
positions of president and director
of Colorado National Bank—Fort
Collins and vice president and direc
tor of Republic National Bank of
Englewood.
C N B — Orchard Mesa
Changes Name
Colorado National Bank—Or
chard Mesa, located at 2697 High
way 50 in Grand Junction, has an

First Interstate-Denver
Announces Promotions
First Interstate Bank of Denver
has promoted R. Bruce Marshall to
senior vice presi
dent and man
ager of loan re
view.
Mr. Marshall
came to the bank
in 1984 after ser
ving as a na
tional bank ex
aminer and field
manager for the
comptroller of
the currency.
In addition, First Interstate of
Denver has promoted five officers to
vice presidents. They are John J.
Bell, Jr., investments; Kathleen A.
Boland, real estate banking; Susan
E. Brown, legal services; Jerry
Davis, real estate and Marvin Shamon, investments.
The bank has also elected two new
members to its board. They are A.
Gary Ames, executive vice presi
dent and COO of Mountain Bell, and
Chester E. Shepperly, principal in
Advisory Associates and former se
nior vice president of Manville Cor
poration.

VPs Elected in Denver
United Banks of Colorado, Inc.,
Denver, has announced the election
of four vice presidents. Receiving
new corporate positions are Alvin
W. Haggerty, vice p re sid e n thuman resources; R. Bradford
Laughlin, vice president and audi
tor; Charles H. Powers, vice presi
d en t-asset quality, Candice W.
Rogers, vice president—marketing.
Joins CNB-Fort Collins
Douglas D. Burmester has recent
ly joined Colorado National BankFort Collins as assistant vice president/commercial loans. Mr. Burmes
ter has approximately 13 years
banking experience and has held of
ficer positions in commercial loan
a c tiv ity w ith v ario u s ban k s
throughout the state.
Northwestern Banker, April, 1986

After the smoke cleared,
First National Bank o f Omaha
was them— >

n January 2, 1986,
Company of Wayne,
by fire. Thanks to the efforts of its correspondent
bank, First National Bank of Omaha, it was business as
usual three days later.
“We couldn’t have done it without First National’s help,”
said Dave Lay, president of State National Bank and Trust
Company. “Within two hours after First National Bank

out about the fire, a five-person team arrived to assist
us. They supplied cash, equipment and expertise. We couldn’t
have recovered so quickly without First National’s help.”
Any correspondent bank can provide traditional services.
But, if you’re looking for a bank that’ll stand behind you and
work beside you in special situations, talk to First National
Bank of Omaha. They’ll be there when you need them.

first n a tio n a l b a n k
of omaha
one first national center, omaha, nebraska 68102
member FDIC • 341-0500
Toll-free in Nebraska 1-800-642-9907 • Surrounding states 1-800-228-9533

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

89th Annual
Nebraska Bankers
Association Convention
May 1 5 -1 7
Red Lion Inn, O m aha

m
9

•

SLATE of nationally recognized speakers in the
business and financial industry are scheduled to
A
help the Nebraska Bankers Association become “fis

6:0010:00

cally fit.” “Fiscal Fitness: Measuring Up” is the theme
for the 89th annual NBA convention. The convention
is scheduled for May 15-17 at the Red Lion Inn in
Omaha.
NBA President Mel Adams, Jr., chairman and CEO
of Keith County Bank and Trust Co., Ogallala, has announced a program featuring eight guest speakers, a
spouses’ program and entertainment provided by the
musical group The Lettermen and comedian Dennis
Blair.
Scheduled to succeed Mr. Adams as NBA president
for 1986-87 is C.G. “Kelly” Holthus, president & CEO,
First National Bank of York. The NBA staff in Lincoln
headquarters is lead by Stan Matzke, Jr., executive
vice president.
The traditional Correspondent Banks’ Hospitality
Night on Thursday, May 15 will be the opening feature
for the convention. It will be held from 6 to 10 p.m. in
the Red Lion Ballroom.
The convention program follows:
Thursday, May 15
A.M.
Registration opens
8:00
NBISCO Boad of Directors Meeting
Executive Council Meeting
9:00
P.M.
12:00 VIP Luncheon
Networks Board of Directors Meeting
1:30
Past Presidents Meeting
3:00
1986 Trade Show - Opening Reception
3:30
BankPAC Committee Meeting
4:00

A.M.
8:00
8:30
9:00

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NBA Correspondent Banks’
Annual Hospitality Night
Friday, May 16

Registration Desk open
Continental Breakfast
Offical Opening of the Convention
Mr. Mel Adams, NBA President
(Bankers/Spouses)
9:15
“Peak Performance”
Dr. Charles A. Garfield, pres, of Performance
Sciences, Inc., Berkeley, Calif.
10:15 “Challenge of the 80’s ”
Mr. Donald T. Senterfitt, pres, of American
Bankers Association.
10:45 Fitness Break
11:30 Luncheon - Featuring
Mr. George Plimpton, writer and athlete.
“Amateur Among the Pros”
(Bankers/Spouses)

P.M.
1:30

“Looking Ahead at the FDIC”
Mr. Charles E. Thacker, regional dir. of the
Division of Bank Supervision, Kansas City re
gion.
“Key Issues Affecting the Financial Industry
Today”
Mr. Peter C. Kraft, acting deputy comptroller,
midwestern district.
“Take Charge: A Wardrobe Management
Plan”
Ms. Anne Fenner, image management consul
tant.
Northwestern Banker, April, 1986

THE LETTERMEN

DR. C.A. QARFIELD

D.T. SENTERFITT

2:30

F.W. NAYLOR, JR.

R. BLEIER

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NBA Annual Meeting Networks Annual
Meeting
3:30
“High Performance Banking“
Mr. Alex Sheshunoff, founder of Sheshunoff &
Co.
4:30
Fitness Break
Trade Show Exhibit Area
Executive Council Meeting
5:30 NBA President’s Reception
6:30 NBA President’s Banquet
8:30 “The Lettermen”
10:30- Larry Gomez & Brotherhood
12:30 Reception - Dance
Saturday, May 17
A.M.
8:00
NBA Registration Desk open
Buffet Breakfast - Featuring
Mr. Rocky Bleier, athlete
“The Best You Can Be’’
(Bankers/Spouses)
9:30 “A Report From Washington”
Mr. Frank Naylor, under secretary of agricul
ture for small community and rural develop
ment.
10:45 Fitness Break
Trade Show Exhibit Area
11:30 NBA Annual Awards Luncheon
□
Q. PLIMPTON

from

We’re the people who have been
William March
President

presenting orchids to the ladies at the
Nebraska Bankers convention for

Robert E. Rob
Exec. Vice President

over 30 years. We’ll be doing it again
this year. And our tradition for profes
sional service goes on, too. We are
Nebraska’s most experienced homeowned firm dealing exclusively in taxexempt securities. Our people have

Bill Abts, Jr.
Vice President

been providing you with expert finan
cial advice for more than 40 years.
We’re the MBU Professionals!

Micky Krupinsky
Representative

Wayne A. Rasmuss
Secretary-Treasurer

John Trecek
Counsel

Municipal Bond Underwriters, Inc.
Investment Bankers • Underwriters
208 South 19th Street, Omaha, Nebraska 68102
(402) 341-1144
In Nebraska Call Toll Free (800) 642-4413

Member of the Securities Investor Protection Corporation

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Nebraska News

You Will See Them at the 84th Annual
Nebraska Bankers Convention
HE following m etropolitan
T
bankers and service and equip
ment dealers have indicated that
they will be attending the annual
convention of the Nebraska Bankers
Association in Omaha, May 15-17.
Denver
First Interstate Bank of Denver:
Cindy Spagnola, correspondent
bank officer.
Kansas City
United Missouri Bancshares: Lyle
Wells, vice chairman; Phil Straight
and Larry Russell, executive vice
presidents; Dick Muir and Jeff
Goble, vice presidents, Mark Bailey,
bond investment officer, and Alan
Sack.
Lincoln
First National Lincoln: Bill
Smith, president; Orrin Wilson, se
nior executive vice president; Dave
Patrick and Dale Young, executive
vice presidents; Gary Bieck, vice
president and manager; Steve An
derson, Mark Hahn, and Marv Hefti, vice presidents; Chuck Greenway
and Randy Gould, assistant vice
presidents; Kathryn Barker, ag and
financial institutions officer; Dan
Black, ag and financial institutions
representative; Charles Ellis, opera
tions officer, and Dave Luckey, agri
cultural inspector.
Omaha
First National Bank of Omaha:
Phil Giltner, president; Dennis
O’Neal, Bill Henry, and Bruce Lauritzen, executive vice presidents; Bob
Tritsch, senior vice president; Chuck
Fries, Jim Bonham, Fred Kuehl and
Ralph Peterson, vice presidents;
Gerry Tomka, correspondent loan
officer; Tom Jensen, ag loan officer,
and Tim Smith and Todd Kruse, cor
respondent bank representatives.
Omaha National Bank: Gary
Parker, Jim Allen, John Clements,
and Dick Yeshnowski, vice presi
dents, and Tim Kyndesen, second
vice president.

MBU, Inc., Omaha, Neb.: William
March, president and Robert E.
Roh, executive vice president.
Modern Banking Systems, Inc.,
Omaha, Neb.: M.J. Reynolds, re
gional sales manager and Kevin Mc
Cormick.
Swords and Associates, Kansas
City, Mo.: Jerry Swords, president
and Tom Cannon, associate.

and two years with City National
Bank in Hastings before returning f
to his native McCook to join First
National Bank as a vice president.
His father had been associated with
the bank for many years and served
as president from 1939 until his %
death in 1953.
Mr. Larmon was president of the
Nebraska Bankers Association in
1977-78. He is a graduate of the
Graduate School of Banking at the #
University of Wisconsin, Madison.

Joins Fullerton Bank
<
Gerald L. Bruning has been ap
pointed president and cashier of The
Fullerton National Bank in Fuller
ton, it was announced recently by
William S. Olson, chairman of the 1
board. In addition, John Nootz, for
merly assistant vice president and
cashier, was advanced to executive
vice president.
Mr. Bruning is a native of Brun-1
ing, Nebr., and was graduated in
1970 from Dana College in Blair,
Nebr., with a B.S. degree. He has 15
years of banking experience, the
past three as executive vice presi-1
dent at Nebraska State Bank, Osh
kosh. He is a graduate of the Colo
rado School of Banking at Boulder.
Mr. Olson, who is also chairman
and president of the bank in Osh-1
kosh, announced that Michael L.
Jorgensen has been elected ex
D.M. FARGEN
H.E. LARMON
ecutive vice president of the Neb
raska
State Bank. He was formerly
Mr. Fargen joins First National
from the First National Bank in assistant vice president at the Cur
Pierre, S.D., where he was president tis State Bank, Curtis.
and chief executive officer. He had
been with the bank for six years.
Prior to that he was senior commer
w
cial lending officer at Bank West, NYB Holds Meeting
The
Nebraska
Young
Bankers
or
N.A. of Pierre.
Mr. Fargen, 40, is a native of Pier ganization, a division formed by the
re. He earned his bachelor’s degree Nebraska Independent Bankers’
in business from Northern State Col Association for bankers age 25 t o 0
lege, Aberdeen, in 1969 and then 40, held its winter meeting in Kear
joined the state banking commis ney on February 8.
A morning session was held for
sion as a bank examiner. He was an
officer with the South Dakota Army bankers and their spouses about
National Guard, retiring with the communication. Roger Hirsch, chief £
counsel for the state department of
rank of Major, Field Artillery.
Mr. Larmon was graduated from banking and finance, was the fea
Sioux City
the University of Nebraska at Lin tured speaker at the afternoon semi
Secuity National Bank: Dennis coln in 1942. After four years of ser nar. Kurt Yost, executive director
Nahnsen, vice president.
vice in the U.S. Marine Corps in for the Nebraska Independent Bank- +
Ranking Equipment and Other Firms WWII, from which he retired as a ers’ Association, gave a legislative
Brandt, Omaha Neb.: Jim Grimes, Captain, Mr. Larmon returned to review of banking legislation being
president, David Grimes, sales man Nebraska. He was in the grain busi considered by the legislature.
A family outing is being planned
ager, and Mark and Scott Grimes, ness for a short time, then spent two
•
years as a national bank examiner for the summer.
sales representatives.

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dennis Fargen Succeeds
Harold Larmon at McCook
Dennis M. Fargen has been elected
president and chief executive officer
of the First National Bank, McCook,
effective April 14. He succeeds Har
old E. Larmon who, after 33 years
with the bank, will be retiring April
30. Mr. Larmon will remain on the
board of directors.

LONG
DISTANCE
SERVICE
Correspondent
Banking
________ Division
The Correspondent Banking
Division of First National
Lincoln can offer unmatched
service in helping you
meet the needs of your
valued customers.
Draw on the First Team to
provide a full range of
innovative products; fast,
accurate turnaround; and
the strength, experience and
expertise of Lincoln’s
largest bank.
For correspondent services
you can rely on, think of us
first. First National Lincoln.
Call us today.

^F irsTier Banks
First National Lincoln

Member FD IC

13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 800-742-7376

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Nebraska News

NBA President Mel Adams:

“Remain up-beat. Look for positive
factors to turn things around.”
A

interview with
MEL ADAMS, President
Nebraska Bankers Association
President, Adams Bank & Trust
Ogallala, Nebr.

N o rthw estern B a n ker

MR. ADAMS (second from left) is pictured
with NBA officers he worked with this past
year. From left: A.C. “Skip” Hove, Jr.,
immed. past pres. NBA and chmn., Minden
Exchange B&T; C.G. “ Kelly” Holthus,
pres.-elect NBA and pres., First Natl., York,
and Stan Matzke, Jr., exec. v.p. NBA.

NE gets a tremendous feeling of humility, as well as
gratification, from serving in this
position as president of the state
association. That is especially true
when I consider our committee sys
tem, which has worked exceedingly
well.”
That was the immediate reaction
of Mel Adams when he was asked
for his assessment of how his year
has gone as president of the Neb
raska Bankers Association for
1985-86. Mr. Adams is president of
Adams Bank & Trust, headquar
tered in Ogallala. In addition to
spending hundreds of hours this
past year on behalf of the NBA, Mr.
Adams found time for the tedious,
drawn-out process that culminated
in state and federal regulatory ap
proval in January that allowed him

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

to merge the Adams family’s five
banks in Brule, Imperial, Suther
land, Madrid and Ogallala into the
new Adams Bank & Trust, head
quartered in Ogallala. The unified
bank had deposits last year-end of
$109,294,978, and retains branch of
fices in each of the other four towns.
Commenting on the NBA com
mittee system, Mr. Adams stated,
“The people who form those com
mittees have proven themselves to
be sensitive, diligent, competent—
they’re just outstanding! As presi
dent, I feel I haven’t contributed all
that much. I t’s the total association
that really does the job. I can’t say
enough about our professional staff,
headed by Stan Matzke; all of our
members; the media, who have been
basically supportive of NBA and
banking, and the regulators who
have really striven to do their best
while working within the boundaries
of their regulatory restrictions and
regulations.”
Beyond the State of Nebraska,
Mr. Adams related, “We have had a
super relationship with all our neigh
boring state banker associations,
especially with Harold Stone of Kan
sas on behalf of the Kansas School
of Banking with which we work so
closely.”
“The war is not won yet,” cau
tions Mr. Adams, and he points out
that “the alligators on the farm are
still getting bigger! However, my
feeling is to remain up-beat and
we’re looking for positive factors to
turn things around.”
Looking inward at NBA, Mr.
Adams recalls “We’ve made tremen
dous changes in NBA structure.
We’ve reduced committees to five
major ones, made up of two bankers
from each of the eight NBA groups.
Our goal is to be able to have at least

one, hopefully both, present for each
meeting so the member banks in
those groups will be better informed
of what occurs. The chairman of the
five major CQmmittees, along with
the president, president-elect and
executive vice president, comprise
the NBA planning committee.”
“There is some over-lap with the
previous committee structure,” he
continued, “to allow those ap
pointed previously to serve out their
terms and take part and they have
all been outstanding committee
members.”
Another source of “great help to
me,” says Mr. Adams, has been Kel
ly Holthus, NBA president-elect and
president of First National Bank of
York. “He has been very supportive
and will be an outstanding president
for Nebraska,” Mr. Adams stated
emphatically. “ I was glad Kelly had
this full year for us to work together
for I remember that last year I had
to move in with only two or three
months left in the association year
to the president-elect spot, and that
gave me such a short time to work
with President Skip Hove. However,
I learned so much from Skip and
Stan in that short time and am
grateful for their assistance, but it
should be more beneficial for Kelly
having the full year to identify with
NBA procedures, the programs we
pursue and the concerns of our mem
bers. I know he’ll do a great job.”
This prompted Mr. Adams to
comment on one aspect of the presi
dency that he values highly. “ I tried
to do a good job, as any president
does,” he recalls, “but I want to tell
you it is really an honor to work with
so many capable CEOs in our state.
Nebraska can well be proud of the
high quality people we have leading
our banks.”
Being directly involved with rural
banking through his own five com
munity banks in agricultural areas,
Mr. Adams built a very high visibili
ty level for the NBA in the past
months with regulators, as well as
state and federal legislators in con
nection with pursuing various ave
nues to make the federal govern
ment at all levels aware of the true
ag crisis in his state and the mid
west, and offering solid ideas for
suggested action. NBA, under his
leadership and that of Mr. Matzke,
took a strong leaderhip role in con
vening meetings of midwest banker
associations several times in past
months in Kansas City.

Nebraska News

A major result of those confer
ences was formation of the ABA Ag
Task Force by ABA President Don
ald Senterfitt, and the latter’s invi
tation for strong participation in the
Task Force by key representatives
from the Independent Bankers As
sociation of America. Mr. Senterfitt
attended some of these Kansas City
meetings himself, recognized the
seriousness and validity of the mid
west associations’ concerns, reports
Mr. Adams, and then to his credit
took the immediate action that acti
vated the ABA—IBAA Task Force.
That Task Force included three
Nebraska bankers. One was Mr.
Adams, as NBA president and a
solid ag banker on his own; Tom
Olson, president of Lisco State
Bank, who is now IBAA president
elect, and H.L. “Bud” Gerhart, pres
ident of First National Bank of New
man Grove and chairman of IBAA’s
ag committee. Mr. Gerhart also is a
past president of IBAA, thus giving
Nebraska three strong, visible
bankers in the nation’s Capitol with
experience in meeting with regula
tors and legislators and testifying
before Congressional committees.
“This has been great involvement
for Nebraska bankers,” Mr. Adams
notes, “and we are pleased that the
Task Force got some action.” The
three main federal regulators have
agreed to allow loan loss amortiza
tion over a several year period of
time, and will work to allow banks to
maintain their capital level for lend
ing purposes without having to cut
it back due to this amortization.
Mr. Adams is not one to sit
around waiting for others to develop
solutions for the problems of bank
ing today. He has one himself that is
“aimed at stabilizing land values,
using a plan similar to one that was
used in the post WWII years when
we had the Federal Housing Admin
istration guaranteed loan program.”
Under that program, FHA ap
praisers established values on all
houses on which loans were re
quired, setting minimum sizes,
quality of construction, and terms
for loan rates. “The result was that
everyone in the real estate business
followed FHA guidelines and, final
ly, other lenders came into the mar
ket.
“ I would like to see a similar
structure adopted for agriculture,
using the same concept:
“ 1. A loan with a market value es
tablished through the MAI (Mem
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the FCS, PCAs and FmHA.”

MR. ADAMS and two other Nebraska bank
ers are key players on the ABA-IBAA Ag
Task Force. Congratulating Mr. Adams for
his continuing work is ABA Exec. V.P.
Donald Ogilvle (left).

ber Appraisal Institute. MAI is part
of the American Institute of Real
Estate Appraisers, a subsidiary of
the National Association of Real
tors).
“2. Land loan funded by the pri
vate sector with a government gua
ranty loan, which wouldn’t affect
the deficit. With such appraisal and
guaranty, the loan could go into a
secondary market.
“Such an approach could:
• Help resolve some of the FCS’
problems.
• Set up qualifications standards.
• Establish adjustable interest
rates.
• Permit proceeds to investor to
be tax-free for perhaps five years,
like other tax-free instruments.
• Provide for the government gua
ranty to vanish in five years and the
loan then to go into the prevailing
interest rate.
“A favorable aspect of this sug
gestion is that it can be handled by
the private sector and not create
another government bureaucracy.
Banks, insurance companies and
any other long-term investors could
take part in or create a secondary
market, which would allow them to
retain safe, adequate capital and
loan ratios. Banks would still be at
risk by retaining 10% or more that
would be subject to loss, so they
would be careful.
“This procedure would help banks
which have a liquidity problem. It
would help small banks be competi
tive with big banks.
“The key thing is to keep this
business in the private sector and
not create another agency on top of

Purpose and Scope
“ I would describe the purpose and
scope of this Secondary Market Pro
posal, utilizing FmHA guaranteed
loans, as follows: To provide a secon
dary market to commercial banks
for:
• An additional source of funding
for farmers.
• Liquidity for banks.
• Serving the asset/liability func
tions of banks.
• An additional source for private
sector invesment.
• Short-term loans and for real
estate loans (up to 30 years).
“Other than using FmHA as the
guarantee vehicle (standard-maker,
appraiser, processor), all other func
tions could be handled by the pri
vate sector (seller, investor, money
processor, service bureau, etc.).
“There are three distinct benefits
from selection of this program:
1. It provides direct relief to the
ag sector through stabilized land
values.
2. It does not create a new govern
ment agency, does not increase the
government deficit, and does not
need to increase FmHA personnel
3. It helps lenders with sources of
long-term funds and gives lenders a
secondary-market.
A key area that occupies a great
share of the time of any association
president is legislation. Again, Mr.
Adams is quick to give praise to
others for doing the job so well. “Bill
Brandt does an absolutely outstand
ing job for us. He has great credi
bility because he is equipped with
such good, common sense to go with
his vast knowledge of the law. Also,
our contact banker program has
worked fairly well. We think our
legislators react in a responsible
manner after studying all facts of
the various issues.”
After a hectic year of fighting the
ag crisis battle and combining that
stressful pursuit with the more typi
cal legislative work with which an
association president finds himself
involved, along with continuing
duties within the association itself,
Mr. Adams offers these words to
fellow Nebraska bankers, “Continue
the struggle in a positive manner.
Bankers in our state have tremen
dous ability. We must focus on us
ing their talents. We must tap this
viable resource for the NBA and the
State of Nebraska. ’’
□
Northwestern Banker, April, 1986

Nebraska News

NBA Executive Councilmen Predict
‘Bottoming Out’ of State’s Ag Crisis
HILE acknowledging that dif
W
ficult times will probably con
tinue for most of 1986, several mem
bers of the Nebraska Bankers Asso
ciation Executive Council agree
almost unanimously that there is a
feeling abroad in the state that “the
farm economy is bottoming out”
and that “we remain confident
about the future.” Several Execu
tive Council members were invited
by the N o r t h w e s t e r n B a n k e r to
analyze business and farm, condi
tions in their areas for this special
report. Their interesting comments
follow:
C.G. “KELLY” HOLTHUS
NBA President-Elect
President
The First National Bank of York
BELIEVE that economic condi
tions are better in York County on
the average, than in most counties
in the outside area. We did have a
good crop in 1985 and, while it was
not outstanding, it did satisfy most
of the projections that our farmers
had for the crop year.
In reviewing 1985 operations, we
find that because of more than nor
mal rainfall, irrigation expenses
were lower and the cost of spray for
various pests was less; therefore,
over-all operating expenses were
below projections. This, along with a
decline in interest rates, helped our
farm borrowers to have a better
than average year during 1985. It
appears that our customers without
a heavy debt load made excellent
progress and that some of our cus
tomers who were marginal going
into the year did make some steps
toward correcting their financial
problems. Our agricultural loan offi
cers feel that it has been easier to set
up 1986 operating lines than it was
during the previous year.
It appears that we had a large
supply of land that was not sold the
prior two years because of a lack of
buyers that has been put on the mar
ket during the first quarter of 1986.

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The majority of these sales were to
settle estates and, therefore, were
arms-length transactions. While the
price for this land has decreased ap
proximately 50-60%, we have been
very pleased at the number of buy
ers at each sale and feel that the
sales have stabilized the land prices
in our area. The buyers appear to be
neighboring farmers or local retired
farmers who have a very adequate
cash position to handle the pur
chases. This also appears to be true
of machinery sales as in most cases
the value on the equipment appears
to be selling at public auction at a
price very close to the value we have
on our financial statements. Again,
there appears to be adequate willing
and able buyers.
We do see a trickle-down effect of
the adverse farm economy on our
“main street” businesses, but as of
this time we see most of the major
retailers able to withstand the de
cline in sales and the good managers
are making some profit under very
difficult conditions. It is our opinion
that 1986 will be a very interesting
year both for our farmers and mer
chants and will be very crucial in de
termining who survives the tough
economic conditions of the ’80s.

than a year ago. Other crops and cat
tle are not doing any better, and
some improvement in prices is
needed.
A new shopping center is being
built in Scottsbluff, but downtown
retailers are closing up and there are
many vacancies in the downtown
area.
Local packing companies and in
dustries are doing OK and there is
some added interest of other compa
nies coming in.
Foreclosures and bankruptcies
are on the increase. There is some
steadying on the price of good farm
land; however, poor farm land and
ranch land have no buyers.
We also have oil and gas wells in
our area. There was some excite
ment generated by some new “deep”
oil wells in the last six months, but
the lower oil prices took care of this
excitement. That’s the bad news
-the good news is that lower energy
prices should help our farmers.
In spite of all my comments, I
believe there is a feeling that the
farm economy is bottoming out, and
better times are ahead. The general
attitude is better than a year ago.
DONALD E. BLAHA
President
First National Bank of Ord
USINESS property and land
B
values continued to deteriorate
in 1985. Land values are now 75%

lower, and commercial properties
have lost 50% of their value when
compared to the highest prices paid
a few years ago. We have lost some
businesses and farmers due to the
economy but, apparently, we have
JOHN T. SELZER
fared better than other parts of the
President
country. We feel values are close to
Scottsbluff National Bank
bottoming out and can come close to
Scottsbluff
cash flowing at current prices. There
continues to be an above normal
S Dan Rather, Ted Koppel, and number of farm sales and business
other TV commentators have failures but we feel the worst is
described the farm economy — it’s behind us.
The Calamus Dam construction in
not good.
In our valley, we have sugar the area has helped to stabilize the
beets, dry edible beans, hay, corn, economy and continues to hire a
some potatoes, with wheat land and large number of local people. The
ranch land to the north and to the dam construction is now complete
south. The sugar beet industry is but canal work, road work and rec
now in the control of Tate & Lyle, reational projects will continue for
after the bankruptcy of Great West several more years. Some remodel
ern Sugar. This is a steadying influ ing and building has begun in Ord
ence on those farmers growing sugar and the general economy appears to
beets. The Great Northern and Pin be on a slight upward movement.
The continuing downward trend
to bean price is considerably higher

Nebraska News
57
Another thing I have noticed is
that people seem to have adjusted to
the economic conditions and have
changed their lifestyles somewhat.
People now realize these difficult
times are going to be with us for
some time and are not going to pass
in interest rates will encourage more tional markets, which would en over quickly as they have done in
investment in real estate and busi hance our position to compete in in the past.
There are always going to be cer
ness as more and more depositors ternational trade.
While anything but widespread, tain marginal borrowers under any
seek higher yielding assets. The loan
demand continues very low, but is reports have been coming in during economic conditions. There have not
beginning to show signs of increas the past few weeks that some of been a large number of farm fore
ing as the economy ratchets upward those who are in a position to buy closures that I am aware of. In talk
land are doing so, predicated on the ing to some of our business people,
and loan interest rates decrease.
Our own bank continues a long price being at a level where the land they say their accounts receivable
pattern of growth. In December we will produce an adequate cash flow. are no worse than they were a year
acquired a branch bank in Sargent Accordingly, there are growing lean ago and in some cases are better.
I believe we are still in a critical
and now have a much larger area to ings that prices of highly productive
serve. We continue to be very opti land have conceivably bottomed period of time, and it will be another
year of customers showing little pro
mistic about the future of our area. out.
Obviously, given agriculture’s gress.
The next year or two may show only
All agricultural customers, re
slight signs of economic growth but dominant role as the leading single
we remain confident about the fu industry in Nebraska, any improve gardless of area, would be much bet
ment in the ag economy will foster ter off if they could receive a decent
ture.
an accompanying improvement in price for their products. It is too bad
other segments of the state’s eco when some people are able to mani
pulate the market in the livestock in
nomy.
ORRIN A. WILSON
dustry to the extent that it fluctu
In
the
meantime,
in
Lincoln,
Senior Executive Vice President
ates $5 to $7 in a week’s time with
Omaha
and
some
of
the
other
more
First National Bank & Trust Company
populated communities in Nebraska still the same number of head being
Lincoln
reliant on more diversified economic slaughtered. It appears somebody is
it appears 1986 could be a trying to force the small farmerHE TREND of the most recently bases,
feeder out of business.
year of modest growth.
released leading economic indi
cators suggests that the overall eco
nomy in Nebraska will move down
G.E. GUNDERSON
ward or, at best, remain flat until
President
JOHN M. GREEN
around the middle of 1986. This out
Commercial
State Bank
look reflects principally the impact
President
Wausa
the economic pressure on the agri
Wauneta Falls Bank
cultural sector is having on other
Wauneta
DON’T believe we sire much dif
segments of the economy in most
ferent in our area of the state from
communities throughout the state.
UR feeling is that 1986 is going
Where the agricultural sector is some others. This past year some of
to be the toughest year we’ve
concerned, in view of the fact that our customers made some money as had so far in the ag economy in
surpluses of food and fiber are being they had to pay some income tax or Southwestern Nebraska and, of
produced not only in the United put off selling or sealing corn until course, of small rural communities
States but also in a growing number after the first of the year. Some live like Wauneta.
of other nations throughout the stock sales were also held up until
One of the major contributing fac
world, it is reasonable to assume after the first of the year. Our area tors to the difficulty of 1986 is the
that prices of those products will not has been very fortunate the past two Farm Bill. By deferring 43% of the
increase significantly in the foresee years in receiving timely moisture deficiency payments that the farm
able future. Therefore, to alleviate and producing record crops.
ers are mandated to get by law
In talking to area auctioneers and through the farm program, we are
the severe cost-price squeeze plagu
ing the agricultural community, at sales clerks, it appears that most of deferring the many dollars those
tention must be focused on reducing the farm sales are going better than farmers really need to operate in
in the past two years. I feel that the 1986. You couple that with low
production costs.
Although dramatic cost reduc value of machinery and land is near prices and we think it does nothing
tions will not be achieved overnight, ing the bottom. In cases where a cus but exacerbate an already difficult
significant inroads could be realized tomer’s net worth dropped this year, situation.
this year if the price of oil remains at it was due to the devaluation of ma
We see the reduction in fuel prices
near-current levels. Another factor chinery and land. Our most recent to be a very great blessing as far as
that could help strengthen the agri appraisals will value land from $500
cultural economy in the near future to $625 per acre. This would be
is the possible continued decline in down about $300 to $400 from three COUNCILMEN.. .
(Turn to page 59, please)
the value of the dollar in interna years ago.

“It appears somebody is trying to force
the small farmer-feeder out of
business.”

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

Nebraska News

6 FirsTier Banks Adopt Same Name
HE two largest Nebraska-based
T
banks in the state will change
their names on April 22, according
to John D. Woods, board chairman
of FirsTier, Inc., and William C.
Smith, president.
Omaha National will change its
name to FirsTier Bank, N.A.,
Omaha, and First National Bank &
Trust Co. of Lincoln will become
FirsTier Bank, N.A., Lincoln.

^FirsTier Bank

branch offices of the Omaha and
Lincoln banks, they will be known
by their local community names.”
Omaha National’s offices will be
known as FirsTier Bank Grand Is
land, FirsTier Bank Kearney and
FirsTier Bank Blair. First National
Lincoln’s office in David City
already assumed the FirsTier Bank
name when the First National Bank
of David City was purchased by
First National Lincoln in February.
“ It is important that all of our
banks are recognized across the
state as part of the FirsTier system,
but its also important that we re
flect our true concern for the indivi
dual communities we serve,” Mr.
Smith said.
Name change celebrations will be
held at all FirsTier Bank offices on
April 22, he added.
FirsTier does not intend to com
pletely abandon the Omaha Na
tional and First National names,
Mr. Woods said. “Those names are
an integral part of our history and
identity, and we are studying
various ways in which we can con
tinue to use them.”

“For more than a century both
First National Lincoln and Omaha
National have built strong reputa
tions for providing high-quality fi
nancial services to businesses and
families in Nebraska and the region,
so the decision to change the banks’
names was made with great care,’’
Mr. Woods said.
Omaha National and First Na
tional Lincoln are subsidiaries of
FirsTier, Inc., which was formed in
1984 with the merger of Omaha Na
tional Corporation and First Na
tional Lincoln Corp.
“With our merger, Omaha Na
tional and First National Lincoln Joins Fremont Bank
joined forces to provide Nebraska
Douglas L. Heim has joined
and the surrounding region with a American National Bank of Fre
major financial services company, mont as execu
which today has assets of $2.5 bil tive vice presi
lion,’’ said Mr. Woods.
dent. Mr. Heim
We believe that having our two was formerly ex
banks adopt the FirsTier name will e c u tiv e
vice
significantly strengthen our corpo p re s id e n t for
rate indentity and visibility in our Hastings State
marketplace,” he added.
Bank. As execu
Mr. Woods stressed that FirsTier tive vice presi
Bank Omaha and FirsTier Bank Lin dent of Ameri
coln will remain separate banks after can N atio n al,
D. HEIM
the name change. “While remaining Mr. Heim’s du
separate organizations, unifying the ties will include supervision of the
banks under the FirsTier banner will bank’s lending functions. In 1978,
reflect more clearly their partner Mr. Heim became executive vice
ship in the FirsTier family of finan president and manager of First Sav
cial companies.
ings Company of Norfolk until 1981,
Most of FirsTier’s other subsidi when he joined Hastings State
aries, including FirsTier Mortgage Bank. Prior to that he joined the
Co. and FirsTier Leasing Co., Nebraska State Department of
already carry the corporate name, he Banking as a bank examiner.
added.
The name change also will enable
the banks to show more clearly their
commitment to the local communi Several Advance in Holdrege
The First National Bank of Hol
ties they serve outside of Omaha
and Lincoln, Mr. Smith said. “While drege has announced five officer pro
our outstate operations will remain motions and four new officers.
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Kenneth J. Slominski has become
executive vice president of the bank.
He had been senior vice president of
the bank since 1985. He joined the
bank in 1970.
James G. “Jerry” Schmoker has
been named senior vice president.
He had been a vice president of the
bank since 1978. He was county ex
tension agent in Webster, York and
Phelps counties prior to coming to
the bank in 1966.
Three officers received advance
ments and were named to the board.
Ronald L. Sterr, assistant vice presi
dent, was named a director. He came
to the bank in 1981. Roger Rikli was
named an assistant vice president/
compliance officer and director. He
came to the bank in 1982. Margery
Verbeck, who has been with the
bank since 1966, has been named a
cashier and a director.
Four people were named new offi
cers: Linda K. Holland, auditor;
Kathy Baker, assistant cashier/loan
administrator; Dolores Van Marter,
assistant cashier/head teller, and
Ted Collin, assistant cashier.
Kearney Bank
Receives Art Awards
Kearney State Bank and Trust re
cently received two awards for its
support of the arts.
The bank received a Governor’s
Arts Award, one of three presented
this year. Award recipients are
selected by a board of 15 Nebraska
residents appointed by Governor
Robert Kerrey. In addition, the
bank has received the 1986 “Friend
of the A rts” award from the Kear
ney Area Arts Council.
Kearney Chamber of Commerce
President Bruce Blankenship, who
nominated the bank for the Gover
nor’s Award, said, “Kearney State
Bank’s record of support of the arts
reflects a commitment that the orga
nization has held since its charter
ten years ago.”

•

The bank has a private art collec
tion of over forty works. It holds an
annual exhibit of regional works as •
well as other exhibits, and supports
the Nebraska Art Collection. It aids
local organizations such as the Kear
ney Area Arts Council, Kearney
Artists Guild, Kearney Community #
Theatre and Kearney Community
Concert. It also supports programs
such as Art-in-the-Park, Artists-inthe-Schools and arts events at Kear
ney State College.
•

Nebraska News

COUNCILMEN...
(Continued from page 57)
1986 is concerned and if that can
^ last, as they predict it’s going to
last for the next two or three years,
that will continue to help a great
deal.
We also see the psychology of
0 the farm community changing, with
a greater degree of acceptance of the
problem and a greater willingness to
make the sacrifices that will be nec
essary to make to stay on the farm
9 and see their operation through its
difficult time. A few years ago there
was an obvious lack of acceptance of
that fact and a lack of willingness to
sacrifice like we’re seeing today.
•
I really think there still is a lack of
willingness on the part of the people
in Washington to recognize the se
verity of our problem out here or
they don’t yet understand the prob• lem and how severe it is. I t’s diffi
cult for the farm sector of the eco
nomy to expect to receive under
standing from other parts of the
country that are currently having
• blooming economic situations. As
these people read in the newspapers
about Washington’s unwillingness
to be of any help to any magnitude
they’re saying further, I ’m sure,
• that the problem isn’t as severe as
the farmer lets on it is.
To sum up, I ’d say 1986 and 1987
are going to be extremely difficult
years and I would anticipate that we
• will probably lose more farmers in
’86 and ’87 than we have in the past.
However, as I ’ve intimated earlier,
we’re about a year behind Eastern
Nebraska in this weeding-out pro• cess. I do think that by the end of
this decade this process will have
taken place and the survivors, ob
viously, in both the banking indus
try and agriculture are going to be
• stronger and much wiser and much
better managers.
I haven’t spoken much about the
business economy, but as the farm
economy goes, so goes the business
® economy and it’s very, very tough
up and down main street U.S.A. in
towns like ours right now. In fact, if
any business has any kind of debt at
^ all it’s probably not surviving. Peo• pie who have been in their busi
nesses for years may not be doing
well, but they are at least holding
their own.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

STATE-OF-THE-ART
HARDWARE
DESERVES
STATE-OF-THE-ART
SOFTWARE
• PLATFORM MANAGEMENT
SYSTEM
• TELLER MANAGEMENT
SYSTEM
• COMPARATIVE RATING
SYSTEM
• COMMUNITY BANKING
SYSTEM

9910 N. 48th St., Suite 201
Omaha, Nebraska 68152
(402) 451-8440
Toll Free—1-800-255-2255 ext. 8440

Northwestern Banker, April, 1986

trust administrative officers in the
trust division. Mrs. Erickson h a s^
been with the bank for 16 years and
Mr. Say joined the bank in 1984.

Several promotions have been an
nounced at First National Bank of
Omaha.
Robert W.
Tritsch has been
promoted to se
nior vice presi
dent. Mr. Tritsch
joined the bank
in 1953 and
holds the posi
tion of senior
loan officer and
R. TRITSCH
chairman of the
loan review committee.
W. Scott Morris and Steven K.
Ritzman have been promoted to vice
presidents. Mr. Morris will be man
ager of the leasing department. He
joined the bank in 1978. Mr. Ritz
man will be in the corporate and fi
nancial institutions division. He has
been employed with the bank since
1979.

J. BARRY

C. TEMME

Four have been promoted to sec
ond vice president status: Joseph
Barry, bank card division; David S.
Erker, corporate and financial insti
tutions; Frances A. Flairty, data
automation, and John Langenfeld,
bank card.
Mr. Barry has been with the bank
since 1978. Mr. Erker joined the
Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

bank in 1980. Mrs. Flairty is cur
rently a team leader for a special
project in the data automation divi
sion. Mr. Langenfeld has been with
the bank since 1975.
M. SEGER

B. BURNS

Steven K. Norris has been pro
moted to a leasing officer. He joined*
the bank in 1983. Sharon Pontier
has been promoted to employee
benefit administrative officer in the
trust division. She joined the bank,
last
year. Mark Seger, who joined’
P. KNUTZEN
J. BOGATZ
the bank in 1983, has been promoted
Gloria Chadwell, Cynthia Temme, to a loan officer in the mortgage loan
Patricia A. Knutzen and Janet department of the retail banking di
Bogatz have all been promoted to vision. Barbara J. Burns has been^
operations officers. Mrs. Chadwell, promoted to an assistant operations
who began her banking career in officer. She joined the bank in 1978.
1978, will work in the retail banking
Two new directors have been
division. Ms. Temme, with the bank named at the bank. Eric S. Turille is
since 1968, has been promoted in the vice president and corporate admin-^
data automation division. Mrs. istration division head. He joined
Knutzen, a certified public accoun the bank in 1973. Charles R. Walker,
tant joined the bank in 1983. Mrs. vice president and retail banking di
Bogatz, who joined the bank in vision head, has been with the bank
1976, will work in the bank card since 1983.
j
division.
* * *
William Dewhurst has been
named manager of the financial in-0
stitutions department of Norwest
Bank, N. A. He began working at the
bank in 1979 and in 1984 was pro
moted to vice president in the finan
cial institutions group.
#
John B. Atkins has joined the
bank as a vice president in the trust
R. ERICKSON
J. SAY
department and will work with em
Roberta Ericksen and James K. ployee benefit customers in the ad
Say have been promoted to personal ministration, investment manage-#

L e ft to r i g h t : L o r e n R . A n d e r s o n , E x e c u tiv e V ice P r e s i d e n t, A d m in is tr a tiv e S e rv ic e s; R o y M. O tte , V ice P r e s i d e n t, B a n k I n
v e s tm e n ts D iv isio n ; M ik e J a c o b s o n , V ice P r e s i d e n t, C o r r e s p o n d e n t L o a n D iv isio n ; D e n n is H . S te lz e r, P r e s i d e n t, N B C /C o m p u te r
S e rv ic e s D iv isio n ; T h o m a s E . H e n n i n g , P r e s i d e n t, NBC.

O u r p e o p le s e t u s a p a r t
fro m o th e r
c o rre sp o n d e n t b a n k s .
At NBC, you’ll find more than
ju st a full range of corre
spondent banking services.
You’ll also discover a staff of ex
perienced, capable, dedicated
professionals who are anxious
to serve you. Who are proven
perform ers, with a strong his
tory of helping banks meet their
correspondent needs. Who to
gether make NBC a leader in,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

and your best choice for, corre
spondent banking services.
Call NBC today! And put us to
work for you!

NBC

National Bank of Commerce

NBC Center, 13th & O Street, Lincoln, Nebraska 68508
(402)472-4115 MEMBER F.D.I.C.

Nebraska News

Douglas Co. Bank and Trust Expands

W. DEWHURST

J.B. ATKINS

ment and design of retirement plans.
He was formerly vice president/manager of the trust department at the
Grand Island location.
* * *
David C. Melena has been pro
moted to vice president of FirsTier
Management
Consultants,
Inc.
Mr. Melena is
a consulting pro
ject manager for
th e com pany,
which provides a
broad range of
consulting ser
vices to small
D.C. MELENA
an d me d i u m
sized banks in the region. Prior to
joining FirsTier Management Con
sultants in 1985, he was a senior fi
nancial analyst for Norwest Bank in
Omaha. He also worked for several
years as a bank examiner with the
U.S. Comptroller of the Currency.
Gene T. Suhr has been named se
cond vice president of FirsTier. Mr.
Suhr has 13 years of experience in
direct agricultural lending. He was
formerly an agricultural lender in
Omaha National’s office in Grand
Island. Prior to that he was a branch
office manger for the Hastings Pro
duction Credit Association.

G.T. SUHR

V. PILLE

Vince Pille has joined the com
pany as a consultant. Mr. Pille was a
commercial loan officer with the
Omaha Bank for Cooperatives/Farm
Credit Banks for five years.

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

DOUGLAS County Bank and Trust Co. President Dale Heiman, left, presents a sketch of
historic Benson to Mayor Mike Boyle at the grand re-opening of the main bank in the
Omaha suburb of Benson. The bank has just completed one construction project at the
home office at 6301 Northwest Radial Highway, and is planning another to open a third
branch bank. The new branch will be located at 93rd and West Dodge Road.

Dewey E. Crouch has joined
Southwest Bank and Trust Com
pany of Omaha
to head up the
newl y d e s ig
nated real estate
l oan d e p a r t
ment.
Over the past
30 years Mr.
Crouch has been
an executive of
ficer at three dif
ferent financial
D’E> CR0UCH
institutions. He is a graduate of the
University of Nebraska at Omaha
with an advanced degree from the
University of Indiana Savings and
Loan Graduate School.
* * *

Grand Island sculptor M att Placzek displayed a variety of sculptures
at the Norwest Bank lobby at 20th
and Farnam March 10-18. Mr. Placzek’s work is wildlife art in wood and
bronze sculptures.

Two Named in Atkinson
Bradley Rowan has recently been
promoted to assistant vice president
of the First National Bank of Atkin
son. Sharon Wenner, vice president
and cashier at the bank has been
named to the board.
Four Promoted in Ralston
Susan Pivovar has been promoted
from loan officer to assistant vice
president of Ralston Bank. She has
14 years of banking experience.
Donna Lynn has been promoted
from operations officer to assistant
cashier. She has 23 years of banking
experience.
Beverly Croy has been advanced
to facility manager. She has 15
years of banking experience.
Ken Kovar, who has nine years of
experience in banking, has been pro
moted to loan officer.
Promoted in Merna
State Bank of Merna has an
nounced the promotion of Debra
Myers to cashier.

Lincoln
Dwain C. Carlson and Harold J.
“ Jack” Dawson have been elected as
senior vice presidents of First Na
tional Lincoln.

D.C. CARLSON

•

H.J. DAWSON

Mr. Carlson serves as senior vice
president and manager of the bank’s
municipal and government bond di
vision, and Mr. Dawson as senior
vice president and manager of the
trust division. Both were previously
vice presidents and managers of
their respective divisions.
Mr. Carlson began his career with
the bank in 1964. He was elected
vice president of the investment department in 1971, and vice president
and manager of the bond division in
1980.
Mr. Dawson has been with the
bank since 1974 and was elected vice
president and manager of the trust
division in 1979.
Other promotions announced at
the bank include La Von McBride,
promoted to assistant vice president
and manager of corporate trust, and
Michael W. Brewster, floor plan and
leasing officer in the installment
loan division.
Mrs. McBride joined the bank in
1980, and Mr. Brewster in 1983.
* * *
Steven R. Knapp has been elected
as assistant vice president of corpo
rate banking at the National Bank

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

63
structors from Iowa, Kansas, Neb
raska and Missouri.
Classes include Trust Depart
ment Organization, Trust Examina
tions, Trust Administration, Cur
rent Economic Conditions and In
vestments, Fiduciary Income Tax,
Probate and Conservatorships, Es
tate and Gift Tax Law, Estate Plan
ning, Employee Benefits, IRA/
Keogh, Operations, Real Estate
Management, Competitive Aspects
and Business Development. Several
concurrent sessions will also be held
to allow students to tailor the course
to their individual trust department
situations.
Enrollment fee includes registra
of Commerce. Prior to coming to tion, instruction, four nights lodg
NBC, he was assistant vice presi ing, breakfasts, lunches, coffee
dent of commercial lending with breaks, reception and classroom ma
Norwest Bank in Mason City, la.
terials. It is $700 for single housing,
* * *
$600 for double housing and $550
for no housing. Registrations will be
handled on a first-come, first-served
basis, with preference given to em
Trust School Announced
ployees of banks which are members
The Schools of Banking, Inc., of the KBA, NBA or IBA.
sponsored by the Nebraska and
For more information or to obtain
Kansas Bankers Associations, has an application for admission, con
announced its 1986 School of Trust tact Jone Beer at (402) 474-3313.
& Financial Planning. The course
will be held July 14-18 at the Holi
Honored in Martell
day Inn in Manhattan, Kansas.
According to the School, this
The Martell State Bank honored
year’s curriculum has been revised Evelyn C. Hess, operations officer,
and enhanced to expose students to at a dinner to celebrate her 40th an
basic and more advanced concepts niversary of employment with the
of the trust business. It was de bank. Mrs. Hess began her employ
veloped by a special Advisory Trust ment with the bank on March 1,
Committee in cooperation with in 1946.

U.S. CHECK BOOK COMPANY
WELCOMES YOU TO
NEBRASKA BANKERS ASSOCIATION ANNUAL CONVENTION
MAY 15-17
RED LION INN, OMAHA, NE
BE SURE TO STOP BY OUR BOOTH

United States Check Book Company
1201 SOUTH 16TH STREET • OMAHA, NEBRASKA 68108
In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800-228-9246

Northwestern Banker, April, 1986

Nebraska News

SHOWN prior to the first session were, left: Ag Committee Chmn. Greg Stine, pres., Neb
raska St., Ord; Stan Miatzke, Jr., NBA exec, v.p., Lincoln; Dr. Nell Harl, keynote speaker and
prof, of econ., Iowa St. Univ., Ames, and Committee Coord., Max Callen, exec, v.p., City
Natl., Hastings.

Ag Outlook - The Big Picture
By ROBERT O. CRONIN
Associate Publisher
HE Big Picture of agriculture,
as Dr. Neil Harl, professor of
T
economics, Iowa State University,
called it, doesn’t seem to be getting
much better and he predicts “ 1986
will not be an easy year.” In fact,
Dr. Harl sees two to five more years
of downward trends in the agricul
tural situation before it gets any bet
ter. His views were expressed in
Kearney last month at the Nebraska
Bankers Association’s 1986 Ag Out
look Conference.
Dr. Harl’s talk was not all doom
and gloom, but his overall analysis
was that 1986 will not be the “turn
around” year hoped for in agricul-

ture, particularly for Nebraska.
According to Dr. Bruce Johnson,
associate professor - ag economics,
University of Nebraska, Lincoln the
degree of stress and severity of
change are magnified because Neb
raska agriculture is:
1. Heavily dependent on produc
tion of export commodities.
2. Adjusting to cattle industry
changes in consumer preferences.
3. Hurt by the rapid debt expan
sion of the 1970s.
4. Less diversified in its ag com
modities.
5. Subject to fewer off-farm in
come opportunities.
Dr. Jo h n so n ’s p resen tatio n ,
“Nebraska Outlook & Debt Service
Capacity,” gave some not-so-pleasant facts and figures. According to

CONFERENCE speakers George Spensor, v.p., Iowa Beef Processors, Inc., Dakota City, NE
and Richard Gady, v.p., economic & commodity research, ConAgra, Inc., Omaha, presented
the cattle and grain outlook for 1986.
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RESPONDING to a question about the hog
outlook was Robert G. Wells, v.p., pork &
beef operations, Geo. A. Hormel & Co., Aus
tin, MN.

Dr. Johnson, farmland values are off
25% and land is selling for 45% of
peak (1980) value. Of course, this de
cline spills over into the community
and the value of reed estate, both res
idential and commercial is off by
30% and 40%, Dr. Johnson in
formed his audience.
There are, however, options that
the farmer has, he noted. The most
important and obvious is to become
a leaner farmer - in fact, Dr. Johnson
predicts “a new breed of farmer that
will be lean on asset ownership and
heavy on financial management.
The key will be sound financial plan
ning and close working relationships
between the producer and lender,”
he told the 175 bankers in atten
dance.
A positive trend pointed out dur
ing the conference was the lower
costs associated with production
agriculture. “ 1986 fuel costs Eire
probably down 25% from 1985,”
said Dr. Johnson. Fertilizer, fuels,
interest rates, land rents, and other
related expenses will contribute to a
lower dollar-per-acre expense for the
farmer, according to Dr. Johnson.
He ended by telling bankers, “the
bottom line is sound financial plan
ning.”
Dr. Harl’s viewpoint, although
not much different from that of Dr.
Johnson, gave an overall “big” pic
ture of where agriculture has come
from, where it is presently and, most
importantly, where it’s going -by far
the “big question” to the “big pic
ture.”
There are many factors involved
in trying to solve the agriculture
problem, but the predominant point
heard throughout the conference

Nebraska News

was voiced by Dr. Harl—“The low
9 cost producer will be the dominant
producer - we are not the most costconscious producers in the world
and we need to get our costs down.”
Dr. Harl is proposing a corpora• tion that “would have a governing
board representative of production
agriculture, public and private sec
tor lending and agri-business firms
and with significant consumer and
• taxpayer representation.” Dr. Harl
went on to tell of “the formation of
an Agricultural Financing Corpora
tion that would have two major com
ponents.”
•
Component one “would provide
the supplemental financing for ‘buy
ing down’ interest rates on farm
loans.” The second part of the AFC
would “provide a mechanism for ac• quiring the assets, notably farm
land, given up by farmers who are
unable to develop a feasible cash
flow. This entity could acquire land
1. subject to foreclosure or bank• ruptcy, 2. from lenders holding land
in inventory or 3. from farmers who
are unable to service the real estate
debt. The land would be rented back
to the farmer at a reasonable rental
® and would be encouraged to repur
chase the land as soon as possible,”
according to Dr. Harl.
Other speakers attending the Ag
Outlook Conference included: Rob® ert G. Wells, vice president, Geo A.
Hormel & Co., Austin, Minn.; Dr.
Richard L. Gady, vice president,
ConAgra, Inc., Omaha; George
Spensor, vice president, Iowa Beef
® Processors, Inc., Dakota City, and
Dr. James B. Hagerbaumer, presi
dent, Hagerbaumer Economics,
Waukegan, 111.
_
To summarize the general feeling
9 expressed by the speakers for the
pork, cattle, and grain outlook, it
would be that lower prices and less
production will prevail but then no
^ one can predict what the future
prices of these commodities will be.
One thing for certain is that con
sumer habits are forcing a major
change on the beef and pork indus• try.
Mr. Wells said that because of
diet and health reasons, lifestyles,
demographics, economics, vegetari
an issues, and a more service
0 oriented society, “the consumers are
hard to predict - they determine the
demand of the industry. The con
sumers will set the pace for what
and how they purchase meats. ’’ □

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Kirkpatrick, Pettis,
Smith, Polianlnc. offers
Comprehensive Service
to meet your
financial needs.
Corporate Finance
Aid in acquisitions and arranging equity
and debt financings. Valuation of closelyheld corporations.

Municipal Finance
Underwriting and distribution of taxexempt bond issues — local and national.
Financial consulting service to issuers.

Secondary Market
Trading
General obligation, revenue and
dollar bonds.

Kirkpatrick, Pettis, á T \
Smith, Polian Inc.
Investment Bankers
A Mutual u f Omaha Company

1623Farnam Street, Suite 700, Omaha, Nebraska 68102,402/449-1400
301 South 13th Street, Suite 300, Lincoln, Nebraska 68508,402/475-5602

stcuRnts mvfSTo«protktioncowwatiok

Northwestern Banker, April, 1986

Banking on common ground

John Chrystal, President, Bankers Trust

t's easier to talk Iowa banking w ith people
w ho live it. People like John C hrystal an d
the co rrespondent staff at Bankers Trust.
We u n d erstan d , first h an d , the needs of
your bank — an d your custom ers. Just as
w e u n d e rstan d the m any challenges facing
Iowa banking, today.
Like you, w e have a stake in Iowa, and
Iowa banking. So w h e n you n eed the services
of a co rrespondent bank, talk to the people
w ho speak your language. Bankers Trust.

C all u s for a c o m p lete range o f
corresp on d en t b a n k in g services.
TRUST SERVICES
Investm ent M anagem ent
Individual/Corporate Services
INTERNATIONAL B A N K IN G
Full line of International Services
IN VESTM ENTS
Bonds
Fed Funds
CDs

Call 1-800-362-1688 or 515-245-2424

COMMERCIAL
Loans
Bank Acquisition Loans
O verlines & Participations
OPERATIONS
Banking S ystem s Processing
ATM & D ebit Card Support
Cash Letter Processing
Rem ote Processing Support

Seventh and Locust • Des Moines 50304

BankersTrust
Member FDIC

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

_
9

Iowa Falls State Buys
Failed W illiam s Bank
Iowa Falls State Bank in Iowa
Falls purchased certain assets and
assumed deposits of the Williams
Savings Bank after the latter bank
was declared insolvent March 20 by
Iowa Superintendent of Banking
William R. Elernau. As receiver,
FDIC accepted the Iowa Falls State
Bank bid of $51,000.
Iowa Falls State Bank assumed
all of the Williams Savings Bank de
posits of $11.7 million, as well as
taking over selected loans. FDIC re
tained the balance of the loan port
folio.
Iowa Falls State Bank opened the
failed bank the following day, March
21, as an office of Iowa Falls State
Bank, which meant that customer
service was uninterrupted. Iowa
Falls State Bank had 1985 year-end
deposits of $39.2 million and assets
of $43.6 million.
The Williams Savings Bank was
founded in 1931. Margy Wood has
been president of the bank since
1976, when she succeeded her father,
A.J. Jensen. She and her family
owned approximately 80% of the
bank stock.

First FmHA Reduced Rate
Loan Goes to Iowa Farmer
The nation’s first loan written
under terms of the Farmers Home
^ Administration’s recently imple
mented interest rate reduction pro
gram was completed last month for
a Dallas County farm couple.
FmHA County Supervisor Lisa
f Noty of Ankeny delivered the condi
tional commitment for the guaran
tee to President Bruce Seymour of
the Brenton State Bank of Dallas
Center on March 14.
O
The guaranteed loan is being pro-

vided to Michael and Donna Mc
Clure of Dallas Center to assist
them with their farming operation.
State FmHA Director Robert R.
Pirn said it was the first such-appli
cation completed and processed
under the new program in the
United States.
FmHA will match the bank’s in
terest rate reduction up to 2%. This
2% from FmHA and 2% from the
bank will drop the interest rate to
the applicant farmer by 4%. Assum
ing a 13% bank rate, for example,
this would give the ag borrower an
effective rate of 9%. (In Iowa, this
could be reduced further by up to
3%, to a loan rate of 6%, under
terms of the $5 million Iowa Agri
cultural Loan Assistance Program
enacted by the Iowa legislature last
month.)
Mr. Pirn said existing FmHA
Guaranteed Loans also are eligible
for the interest rate cut-down pro
gram. The new, three-year $490 mil
lion FmHA-funded program stipu
lates that a borrower must be unable
to get a loan elsewhere at reasonable
rates and terms; must be unable to
make loan payments unless the in
terest rate is reduced, and must
show enough projected income to
make the reduced-rate loan pay
ments.

Several Promoted in Burlington
Several promotions have been an
nounced at Hawkeye Bank and
Trust, Burlington. Douglas S.
Grinde, president of the bank, was
named chairman. He will continue
as president. Thomas B. Read, Jr.
who had been chairman for the past
10 years, has retired. Also retiring
from the board were Robert I. Hale
and Walter A. Klein.
James A. McCarthy has been pro
moted to executive vice president;
Ray P. Siefken to senior vice president/operations and cashier; Frank
J. Delaney III to senior vice presi
dent and senior trust officer; Robert
P. Ritson to senior vice president/
loans; Douglas R. Wirth to assistant
vice president/agricultural loans,
and Andrea C. Walsh to accounting
officer.
New Pres. Named in Waukon
Ed Lauerman, Jr. has been named
president of the Farmers and Mer
chants Savings Bank of Waukon.
Former president and chairman of
the bank, Arthur H. Jacobson died
recently.
Mr. Lauerman has a total of 28
years of banking experience, the
past 12 years as executive vice presi
dent and managing officer of the
bank. He has been on the board
since 1977.
Isabel C. Jacobson, wife of the
late Arthur Jacobson, has been
elected as new chairperson. She has
been a board member since 1966.
Ethan A. Jacobson, son of Isabel
and the late Arthur H. Jacobson,
has been appointed to take his
father’s place as a director. He is a
partner in the law firm of Jacobson
and Dudgeon in Lakewood where he
carries on a general civil practice.

•

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1986 Iowa Group Meetings
Group
4
7
8
6
5
2
12
3

Date
May 5
May 6
May 7
May 8
May 19
May 20
May 21
May 22

Location
Dubuque
Waterloo
Iowa City
Des Moines
Council Bluffs
Fort Dodge
Okoboji
Clear Lake

Northwestern Banker, April, 1986

Iowa News

TAKING PART in the Iowa Bankers Ag Conference at Ames were, from left to right in these two pictures: Orion Samuelson, farm serv. dir.,
WGN radio-TV, Chicago; Wm R. Bernau, Iowa supt. of bkg. and pres., Peoples Sav., Crawfordsville; Paul Quam, chmn. IBA ag comm, and
sr. v.p. & CEO, Hayesville Sav.; Steve Stahly, new pres, of MASI, Des Moines; Dr. David M. Kohl, Virginia Polytechnic Inst., Blacksburg, VA.,
and Chuck Souder, v.p. & ag rep., First Security B&T, Charles City.

Iowa Ag Bankers Seek Opportunities
By BEN HALLER, JR.
Publisher

p p r o x im a t e l y

350 persons

A attended the Ag Credit Confer
ence conducted March 17-19 by the
Iowa Bankers Association at Scheman Center on the campus of Iowa
State University in Ames. The con
ference theme was “Turning Ob
stacles into Opportunities.”
Presiding at the annual confer
ence was Paul Quam, chairman of
the IBA Ag Committee and senior
vice president of Hayesville Savings
Bank. The meeting began at noon
Monday and continued to noon
Tuesday.
The entire first afternoon was de
voted to an outstanding presenta
tion on the convention theme given
by Dr. Charlene Bell, a Des Moines
psychologist and business consul
tant. Dr. Bell took her audience
through the several kinds of voices a
banker will hear from customers and
staff, an interpretation of what can
be learned about the other person’s
feelings, fears, questions or anticipa
tions, and an assessment of the op
tions one has in dealing with or re
sponding to stressful situations.
Her remarks, among the many use
ful points she made, included those
related to risk-taking and the inhe
rent opportunities open to those
who study their options, yet are will
ing to risk to improve themselves.
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

William R. Bernau, who became
Iowa superintendent of banking in
January, gave his first public report
to Iowa bankers at this conference.
As president and owner of Peoples
Savings Bank in Crawfordsville, and
banks at Walker and Center Point,
Mr. Bernau is personally familiar
with rural crisis problems. In giving
a few statistics initially, Mr. Bernau
pointed out that certain important
ratios were trending the right direc
tion now, but were based on a short
time frame and could not be con
sidered conclusive.
Average capital is up from 10.5%
to 10.9%, the loan/deposit ratio is
down from 54.75% to 51.95%, and
past dues are down slightly from
6.1% to 6.0%.
He described his philosophy as
conservative, “with a capital C.” He
stressed the value of “a strong bank,
built by strong loans, based on the
three Cs of character, collateral and
capacity. If you don’t follow these,
you get the three Cs of bad loans —
collected, corrected or charged-off.”
He emphasized that “our primary
responsibility as a bank is as a de
pository, not as a lending agency.”
Speaking about his goals for the
banking department, Mr. Bernau
said his desire is for 20 more exami
ners to go with the present 94 ex
aminers who make up 13 teams.

This would help restore state bank
examinations from their present
18-month intervals to one every 12
months as they were several years
ago.
Referring again to banker actions,
Mr. Bernau said, “Maintain public
confidence. Act like bankers. Wear
shirts and ties. Look like bankers.
Always act professional with custo
mers, document everything care
fully, button up all transactions ap
propriately. Let our customers know
our welfare is tied to theirs. It takes
courage to say ‘no’ to a customer,
but do it tactfully.”
He said that out of Iowa’s 512
state-chartered banks, only 150 are
“abnormal,’ with problem loans
ranging from 60% to 300% plus of
capital. “Most of these are in the low
range,” Mr. Bernau added, “ so more
than two-thirds of our banks have
no trouble. Only one is in serious
trouble and no others are slated for
closing.” (Two days later, as antici
pated by many bankers, Williams
Savings Bank was closed.)
Mr. Bernau concluded his re
marks by stating, “I think we have a
lot of our problems behind us. I feel
the situation will get better.”
Other first morning speakers in
cluded Orion Samuelson, noted farm
service director for WGN radio-TV,
Chicago, and Dr. David M. Kohl, as
sociate professor of agriculture fi
nance, Virginia Polytechnic Insti
tute & State University, Blacks
burg, Va. Dr. Kohl’s topic of “Credit
Analysis, Farm Management and
Loan Documentation,” for half the
morning program, was followed
after lunch by his case history analy
sis of a financial statement.
An important afternoon panel, “A

■
Zj
■

THE WAY WE PUT IT TOGETHER 15 WHAT 5E T5 U5 APART
First national Bank of Waverly • Waverly, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50704
Phone 319-234-6641

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

NEW AG PROGRAMS panelists were, from left: Conrad Lawlor, SBA dist. dir.; moderator
Paul Peterson, v.p., Maquoketa State; Robert R. Pim, FmHA state dir.; James West, ASCS
state dir., and Bill Greiner, Iowa Family Farm Development Authority exec. dir. The four
panelists office In Des Moines.

Procedures Workout of New Ag Pro
gram s/’ featured four men closely
tied to banks with their farm-ori
ented government programs. They
were Bob Pim, FmHA state direc
tor; Conrad Lawlor, SBA district di
rector; Jim West, ASCS state direc
tor, and Bill Greiner, executive di
rector of the Iowa Family Farm De
velopment Authority. Each panelist
explained details of the latest agen
cy programs and how bankers could
use them to serve their farm custo
mers.
Another panel featured Mike
Thompson, executive director of the
Iowa Farmer/Creditor Mediation
Service, Des Moines. He described
the goals of mediation, and distin
guished it from negotiations, since
the latter frequently infers binding
settlements. Mediation is intended
to open lines of communications and
understanding.
The role of the Farm Credit Ad
ministration as a strict federal regu
lator of the Farm Credit System was
described by Marvin Duncan, senior
deputy governor of the FCA. He is
expected to be nominated as one of
the three new FCA directors who
will run the FCA under the new or
ganizational plan enacted by Con
gress last December.
IB A President J. Bruce Meri
wether, president of First National
Bank, Dubuque, said, “We all know
of the great stress on both sides of
the issue — customers and bankers.
I think we have bridged the gap to
some degree by the Social Concerns
Committee we meet with. The atti
tude in the state is starting to
change to one of meeting the chal
Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

lenge of change. There will be no
return to ‘the good old days.’ We’re
in a transition period. Your IB A is
very committed to meeting this
challenge of change and will con
tinue to do so aggressively.’’
Tim Jackson, Iowa State Univer
sity Extension project attorney/
Rural Concern, Des Moines, fol
lowed Mr. Meriwether to discuss
“Being a Concerned Banker.’’ Mr.
Jackson’s group and Mr. Thomp
son’s groups are two of the Iowa
farm concern groups that have
joined with the IBA in an effort to
bring greater understanding in Iowa
between lenders and farm borrow
ers.
Mr. Jackson said the Hot Line
has handled 13,000 calls to date,
with about 10,000 of them related to
the callers’ financial business. He
said, “We are striving every way we
can to get farmers to talk to their
lenders. Communication is essen
tial.” He said he believes “one of our
big problems is the tax problem. So
many have staggering tax bills,
even after they give their land or col
lateral back to the lender.”
Neal Conover, chmn. of First Na
tional, Creston, provided an update
on legislation, both state and na
tional.
Larry Eide, a Mason City attor
ney, gave details on “Bankruptcy,
Examinations and Procedures.”
Chuck Souder, vice president and ag
rep. at First Security Bank & Trust
Company, Charles City, then fol
lowed up with some brief comments
on case studies.
The conference concluded with
the noon luncheon.
□

Changes Made in Clinton
Doyle V. Ruble, Jr. president and
chairman of Iowa State Savings
Bank in Clinton,
has announced a
number of pro
motions.
R ic h a rd J .
Carlson has been
promoted to ex
e c u tiv e
vice
p re sid en t and
secretary . He
joined the bank
R. CARLSON
in 1979 prior to
four years at what was then Central
National Bank in Des Moines.
Jurgen R. Duhr has been pro
moted to vice president cashier. Mr.
Duhr came to the bank in 1981 from
the Clinton Corn Processing Com
pany where he was an accountant.
Deborah A. Paulline has been pro
moted to a marketing officer. She
has been with the bank since 1972.
G. Allen Lollich has announced he
will retire as a director. Louis R.
Paaske, Jr., plant manager at Ral
ston Purina Company, has been
elected to replace Mr. Lollich.

James Gordon Dies
James R. Gordon, 38, of Iowa
City, the senior vice president of
Hills Bank and Trust Company,
died on March 14 of an apparent
heart attack.
Mr. Gordon had been senior vice
president and trust officer of the
bank since 1975. Before taking the
Hills bank position, he practiced law
in Rock Island, 111.

Added in Davenport
Richard J. Blanche has joined
Davenport Bank and Trust Com
pany as manager
of the Spruce
Hills office. Mr.
Blanche has 15
years of experi
ence in the fields
of sales, office
m anagem ent
and lending. He
m ost recently
served as assis
tant vice presi
dent in the loan department of an
area bank, where he worked in con
sumer, commercial and real estate
lending.

Our unique monitoring
system lets you follow
your loan customers
wherever they go*
1

,:-W

Monitoring your customers’ loan
activity is vital to your bank. But
maintaining accurate, up-to-date
information on financing arranged by
them through your competitors is
nearly impossible. Unless you sub
scribe to Iowa Public Records
Search’s Loan Activity Bulletin.
The Loan Bulletin is a twicemonthly report of all the loan activity
in your county, and every county
important to you. Each report con

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tains all liens filed with the Secretary
of State; the name of debtor: secured
party;file number;and the date and
hour of filing.
And the price is right, too — as
low as $12.50 per county, per month.
To order, or for information on
our other search services (telephone
searches, judgment searches, bank
ruptcy searches, and more), give us
a call.
We’re Iowa Public Records

Search. We’ll follow your loan cus
tomers everywhere.

IOWA
PUBLIC RECORDS
SEARCH, INC.
#2 Corporate Place
1501 42nd Street
West Des Moines, Iowa 50265

T e lep h o n e ( 5 1 5 ) 2 2 3 - 1 1 5 3

Iowa News

LEFT—Thomas Figge, offce of pres., Davenport Bk. & Tr. with guests, Allen Luett, pres., Miles Svgs. Bk. and Steve Jacobson, exec, v.p.,
Iowa Natl., Morning Sun. RIGHT— From left, Doyle Ruble, Jr., pres., Iowa St. Svgs. Bk., Clinton; Lee Ittenbach, pres., Fulton St., III.; James
Perkins, a.v.p., John Öliger, corr. bkg., and Barry Richards, v.p. of corr. bkg., all with Davenport Bk. & Tr.

Davenport Bank & Trust Hosts Correspondent Seminar
By ROBERT CRONIN
Associate Publisher
VER 125 area bankers attended
O
the Davenport Bank & Trust
correspondent seminar last month.
This marks the third year, out of
four, that the seminar has taken
place. Hosting the seminar was
Michael Bauer, 1st v.p., correspon
dent banking.
The one day seminar featured Bob
Pirn, state director, Farmers Home
Administration, and Thomas L.
Flynn, attorney, Wimez, Hudson,
Flynn & Nugent, Des Moines.
Following the luncheon, four con
current workshops were offered, in
cluding: 1] Loans/Documentation 2]
Operations Issues 3] Relations with
Bank Regulators and Tax Planning
for Community Banks, and 4] Insur
ance and Bonding.
Mr. Pirn, director of FmHA for
thirteen years, told bankers, “up to
ten years ago, we were a quiet little
agency with a $5 billion loan port
folio. Now we are a $70 billion agen
cy with lots and lots of problems.’’
One of the problems that is hamper
ing FmHA is the collection of delin
quent farm loans. According to a
survey by the ABA, some 37,000
cases have been reported. Mr. Pirn
said the figure is probably closer to
27,000. Out of the approximate
540,000 borrowers in the FmHA
program, half of them are having
trouble paying their loans, said Mr.
Pirn.
One major problem that has caused

Northwestern
Banker, April, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

problems for FmHA, he said, is the
recent mailing of past due notices to
delinquent accounts. Mr. Pirn found
it ironic that a lending institution
such as the FmHA couldn’t collect
on its bad loans. “The industry can’t
afford to have a lender that can’t col
lect loans,” Mr. Pirn stated. He went
on to say, “ I t’s hard to get the point
across that you are a good lender
when in the same breath, you tell
your customer that you’re sending
out a past due notice - we have to get
this ‘notice mailing’ behind us.”
A new program is being intro
duced through FmHA called “2+2.”
Mr. Pirn described it as “a proper
blend of the private and government
sector.” The program would feature
an interest rate write-down with the
local banker and government com
bining for a loan reduction of 4% off
of the normal interest rate. The 2+2
program has a $480 million budget
nationally.
Although the program is still in
the work-out stages, Mr. Pirn told
bankers of a few key areas to be
aware of with the new 2+2 program.
1] Lender must certify that credit is
not available to the borrower unless
the 2+2 buy down is used. 2] Bor
rower must cash flow after the three
year period, and 3] No viable asset
can be sold that would affect the
position of the loan during the threeyear period.
Mr. Pirn pointed out that the 2+2
program will be available to existing
guaranteed loans. He concluded by
saying, “guarantees are the wave of
the future, and they are good for the

farmer. The guarantee program
made tremendous progress last year
with over $260 million in Iowa.”
“Bankruptcy Update” was the
topic presented by Mr. Flynn. He
touched on important points such as
pre-bankruptcy considerations,
bankruptcy and the automatic stay,
cash collateral and adequate protec
tion, filing claims, exemptions,
Chapter 11 and 13.
IBA Banking School
Set For June 22-27
The Iowa Bankers Association
School of Banking will be held June
22-27 at the University of Iowa,
Iowa City.
The purpose of the school is to pre
pare first-level, exempt and midlevel
managers to serve effectively and
profitably the needs and desires of
the American public.
Applicants must have four years
of banking experience. Two years of
college education or the founda
tion’s diploma from the American
Institute of Banking may be substi
tuted for two years of banking ex
perience. Students must have also
completed AIB courses in principles
of banking, money and banking and
accounting I.
The tuition is $650 for IBA mem
bers and $1,050 for nonmembers,
which includes meals, room, case
book and study materials. The en
tire fee must accompany the stu
dent’s application.
For more information contact
Joanne Gaudio, IBA, 430 Liberty
Building, Des Moines, Iowa 50308.

53534853532323535353534848232348232353

ManyOf
You Bank
Depositors
Need
Healih
Insurance

Wi.

You Could Be
T he Bank To
I ntroduce
T hem T o T he
P rotectors
B eing “J ust A B ank” I sn ’t Enough
Iowa Bankers Insurance and Services,
Inc. has developed a health insurance
program for bank depositors. The
name of this program is The
Protectors.
The program includes a compre
hensive major medical plan and a
Medicare supplement. Costs are com
petitive with other individual and
supplemental insurance programs on
the market.
Your participation in this program
requires little or no investment of your
time, personnel or capital. An IBIS
representative will visit your bank on a
regular schedule, explain The Protec
tor plans to interested and eligible
depositors, and enroll them.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

i
Iowa Bankers Insurance and Ser
vices, Inc.’s affiliation with Iowa banks
is a long-standing, dynamic relation
ship. You know our integrity, the qual
ity of our service.
The Protector health insurance
program is underwritten by Time
Insurance Company of Milwaukee,
Wisconsin. Time Insurance is con
sistently rated A + “excellent” by the
AM. Best Company, an insurance
industry analyst.

• The Protector health insurance pro
gram provides your bank with a
way to increase customer loyalty
and revenues.
• The Protector plans can attract
new customers.
• The Protector health insurance
program enhances your image as a
full-service bank.
Let IBIS introduce you to The Protectors
today! Call Chris Wehde at 515-286-4395 or

1-800-532-1423.

W hy Participate In T he P rotector
H ealth Insurance P rogram?
• The Protector plans provide your
customers with quality, convenient
and affordable health insurance.

IOWA BANKERS INSURANCE &
SERVICES, INC.
104 EAST LOCUST DES MOINES, IOWA 50308

74
mercial loan officer, heads the
bank’s special loan accounts depart «
ment. Ms. Rosenthal, formerly an
assistant vice president, is the
bank’s customer investment officer.

John Chrystal, president of Bank
ers Trust Company, has announced
the appointment
of Thomas D.
Smith as execu
tive vice presi
dent and chief fi
nancial officer.
Mr. Smith will
continue
to
serve on the
board of Bank
ers Trust.
Mr. Smith will
assume overall management respon
sibility for financial, audit, invest
ment, administration and opera
tions areas of the bank.
Prior to joining Bankers Trust,
Mr. Smith was with the Bell System
for nearly 24 years. Most recently,
he was vice president and CEO of
Northwestern Bell, responsible for
Iowa operations. Other Northwest
ern Bell positions held include vice
president/advanced inform ation
markets and treasurer. He has also
served as director of internal audit
ing of AT&T, which encompassed
the entire Bell system.
Actively involved in the Des
Moines area community, Mr. Smith
serves as a trustee of Drake Uni-

L. MILLER

J.D. AIPPERSPACH

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

versity and as a director of nume
rous organizations.
Dennis R. Wood will continue as
executive vice president in charge of
commercial, consumer and interna
tional banking operations, as well as
the trust division.
Bankers Trust Company Chair
man John Ruan announced the elec
tions to the bank board of directors
of Larry Miller, executive vice presi
dent and chief operating officer of
Ruan Transportation Management
System, and James D. Aipperspach,
vice president and CEO for IowaNorthwestern Bell Telephone Co.
Mr. Ruan also announced the re
tirements from the board of Robert
G. Beers, chairman of Hubbell Real
ty Company, who had served on the
BTC board 15 years, and Dwight H.
Swanson, consultant to and director
of Iowa Resources, Inc., who had
been on the BTC board 16 years.
*

J.C. “Buz” Brenton, president
and CEO of Brenton National Bank
of Des Moines has announced the
following promotions.
Robert G. Mann has been pro
moted to senior vice president from
vice president/office administration
and marketing. Mr. Mann, associ
ated with the bank since 1972, will
assume additional administrative
duties.
James Friesz, Mark Kempkes and
Meriam Rosenthal have been named
vice presidents. Mr. Friesz, a 20year Brenton banker, manages the
southwest 9th and McKinley office
and heads the bank’s consumer loan
department. Mr. Kempkes, a com

R.G. MANN

J. FRIESZ

M. KEMPKES

M. ROSENTHAL

Other promotions include the
naming of three assistant vice
presidents: Sharron Marquart, Pa
tricia Thompson and Roger Fink.
Ms. Marquart manages the bank’s
cash management department, Ms.
Thompson manages the Valley West
Mall office, and Mr. Fink manages
the northwest office.
Greg Dockum has been appointed
as assistant cashier/operations offi
cer.
* * *
William A. Wishman has been
elected senior vice president and
comptroller of Valley National
Bank. He has been with the bank for
25 years, most recently serving as
vice president and comptroller.
Stephen Waters has been pro
moted to assistant vice president/
branch manager at the bank’s High-

W. WISHMAN

S. WATERS

Iowa News

land Park office. He joined the bank
in 1982 as a management trainee
® and most recently served as com
mercial banking representative at
the main office.
* * *
^
The following individuals have
been promoted from vice presidents
to senior vice
p r e s i d e n t s of
First Interstate
f Inform ation
Systems
of
Iowa: Richard
Bro, data pro
cessing; Claude
• Dawson, bank
ing operations,
and Larry Glass,
R.A. BRO
marketing. Mr.
Bro joined First Interstate in 1974
• and has held various positions. Mr.
Dawson joined in 1960 and has
worked in a variety of areas. Mr.
Glass came to First Interstate in
1979 as senior customer service offi• cer, before being promoted to vice
president of marketing in 1982.

accountant with nearly four years of
experience in the public accounting
field.
* * *

S.G. JACOBS

J.A. ROGERS

most recently appointed vice presi
dent and managing officer of the ad
ministration division.
Mr. Jacobs joined Bankers as a
management trainee in 1977. He
was promoted to real estate loan of
ficer in 1979 and to commercial loan
officer in 1982. He became vice
president of the retail division in
1982.
Mr. Rogers joined Bankers in
1983 as vice president of corporate
trust.
*

R. Douglas Fisher has been
named senior vice president, credit
administration, for Hawkeye Bancorporation.
Before joining the holding com
pany, he was executive vice presi
dent of Hawkeye Capital Bank and
Trust and previously worked for
Jasper County Savings Bank, New
ton, as vice president.
C.D. DAWSON

L.J. GLASS

Dave Akehurst and Scott Mitw chell have been promoted to director
of customer service and director of
data communications, respectively.
Linda Houberg has been elected a
^ new officer of the deposit product
group.
*

The following have been pro
moted to senior vice president sta
tus at Bankers
Trust Company;
Roger A. Downs,
adm inistration;
Steven G. Ja
cobs, retail divi
sion, and Jack
A. Rogers, trust
division.
M r. Downs
joined Bankers
Trust in 1982 as
RA D0WNS
the director of security. He was

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

J. Kevin Paul has joined Iowa
Student Loan Liquidity Corporation
in the newly created position of man
ager lender relations. In this posi
tion, he will be responsible for mar
keting ISLLC’s services to lenders
throughout Iowa. He joins ISLLC
from Midland Financial Savings and
Loan, where he was responsible for
administration of the Guaranteed
Student Loan Program.
* * *
The promotion of Darrell (Kip) H.
Wright to vice president and trust
investment offi
cer w as a n
nounced l a s t
month by John
Chrystal, presi
dent of Bankers
Trust Company.
M r.
Wright
joined the bank
in 1982 as a
m anagem ent
trainee in corpo
rate trust. He was named trust in
vestment officer in 1984, then assis
tant vice president and trust invest
ment manager in 1985. He received
his BBA degree from Iowa State
University.
*

Gary Calvert has been promoted
to manager of First Interstate Bank
Hawkeye-Capital Bank and Trust of Des Moines, N.A., and Pam Sloss
has announced the addition of has been promoted to an investment
Thomas B. Hildebrand as vice presi operations officer.
dent and manager of commercial
lending and Lianne Wright as assis
tant trust officer.
Mr. Hildebrand, who has over 11
years of banking experience, most
recently served as vice president for
Brenton National Bank.
Ms. Wright is a certified public
G. CALVERT

T.B. HILDEBRAND

L. WRIGHT

P. SLOSS

Mr. Calvert has been with the
bank for 16 years, most recently as
acting manager of the West Des
Moines office. He has held various
positions within the bank.
Ms. Sloss has served in various
operational capacities with the bank
since 1979, most recently as invest
ment operations supervisor.
Northwestern Banker, April, 1986

Iowa News

Banker Serves His Community
HE chairman of Bankers
T
Trust Company, Des Moines,
one of Iowa’s
largest indepen
dent banks, does
not see his re
sponsibilities
ending at the
bank’s doors. He
also sees himself
as a caretaker
for his communi
ty.
‘ ‘A n y t h i n g
that makes Iowa a better place to
live is going to help every business
in the long run,” says John Ruan.
The community recognized Mr.
Ruan’s philosophy on February 28
when he was named 1986 “Humani
tarian of the Year” by the Variety
Club of Iowa. The award was pre
sented at the club’s annual Star’s
Dinner prior to its annual telethon
to raise money for children’s
charities.
“When this club started up the
telethon 12 years ago, John Ruan
gave it his full backing through fi
nancial commitment and by donat
ing his time and the time of his em
ployees to help make it work. That
takes a certain amount of courage to
make a commitment to a new en
deavor like that,” comments Stan
Reynolds, chairman of the Variety
Club’s selection committee.
Mr. Ruan’s best known fundraiser
endeavor in the Des Moines area,
however, may be the annual MS
Golf Exhibition at Wakonda Club.
The event brings in the top golfers
and attracts thousands. It has
grown to become the nation’s larg
est fundraising event for multiple
sclerosis.
A native of Beacon, Mr. Ruan, 72,
went into business for himself in
1933 when he purchased a used
dump truck to haul gravel. From
there, he built Ruan Transport and
Ruan Leasing into one of the
nation’s leading trucking com
panies. In 1964, Mr. Ruan pur
chased control of Bankers Trust Co.,
and presided over its growth to one
of the largest banks in Iowa and one
of the largest independently-owned
banks. With $349 million in depos
its, it ranks fourth in size of all Iowa
banks.
Northwestern Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. Ruan has been instrumental
in the revitalization of downtown
Des Moines since 1973 when he
began building Ruan Center, now
the tallest building in Iowa. Down
town’s extensive skywalk system
got its start with a bridge built with
Mr. Ruan’s own money.
In addition to fundraising for
charitable efforts and the revitaliza
tion of the downtown, Mr. Ruan is
an active fundraiser for Iowa State
University in Ames. He has received
the prestigious “ Cy’s Favorite
Alum” award from the University.
“If you’re going to do business in
a community, you have an obliga
tion to do something to take care of
that community,” John Ruan says,
summing up his philosophy on com
munity service. “ I want a communi
ty I ’m proud to have my employees
live in, and that means I ’d better do
my part.”
□

Correction!
In the list of “Largest Banks in
Iowa” published in last month’s
issue, United Bank and Trust in
Ames did not appear on the list. The
bank, formerly known as University
Bank and Trust Co. has merged with
Union Story Bank and has increased
its 1985 year-end deposit total to
$107,445, placing the bank at 39th
place in the ranking of Iowa’s larg
est banks.
In addition, Clinton National
Bank’s figures for 1985 and 1984
were inadvertently transposed on
the form submitted and the error
was not caught before publication.
Clinton National’s 1985 year-end de
posit total of $107,112,000 moves
the bank up to 40th place in the
ranking instead of 44th as shown
last month.

Three Named in Urbandale
John R. Harmeyer, president of
First Interstate Bank of Urbandale,
has announced the appointments of
Craig B. Jones as senior vice presi
dent and senior lending officer,
Jeanne H. Stark as marketing coor
dinator and James M. Caterine,
M.D., as a bank director.

C.B. JONES

J.H. STARK

Prior to joining the bank, Mr.
Jones was a vice president in the
capital lending group of Norwest
Bank in Minneapolis, Minn. As mar
keting coordinator, Ms. Stark will
be responsible for bank marketing
and business development. Dr.
Caterine is currently chief of staff at
Mercy Hospital in Des Moines, in
addition to serving on numerous
medical boards.

Joins Columbus Junction Bk.
Aubrey Daedlow has joined the
staff of the Columbus Junction
State Bank as a vice president in
charge of all loan operations.
Mr. Daedlow began his banking
career in 1945 at the Mediapolis
Savings Bank as a bookkeeper/teller. He was promoted through the
ranks to president of the bank from
1959 to 1969. He them moved to the
Golden State Bank in Golden, Colo,
where he served as vice president. In
1983 he joined the Iowa Department
of Banking.

Appointed in West Des Moines
Roy W. Messerschmidt, president
of First National Bank of West Des
Moines has announced the appoint
Promoted in Monticello
ment of Roger Petersen, vice presi
Monticello State Bank has an dent, Janice Cross, vice president
nounced several promotions. James and cashier, and Rick Messer
D. Corwin and Dean Ricklefs have schmidt, vice president, to the
been promoted from assistant cash bank’s board of directors.
ier to assistant vice president. Lois
Larry Tibbetts has been pro
Hines, Mildred Hinrichs, Cathy moted to vice president of the bank.
Holub and Christina Lux have all He had been assistant vice presi
been promoted to assistant cashier. dent.

77
ing activities. Gene Loverink has the staff as a real estate broker
been appointed senior vice president associate specializing in farm real
and cashier and is heading up the estate sales. He was affiliated with
Stalter Realty before joining Peo
operations division of the bank.
ples Company.
Judy Allison has been elected as
sistant to the president. She has
worked for the company since 1979.
Elected in Indianola
Previously, she worked as a teller for
F.
Max Bishop and Robert FridPeoples Trust and Savings Bank.
ley have been elected as assistant She is also the farm management ac
vice presidents
countant for the company.
of Peoples Com
pany of India
Two Promoted in Dubuque
nola. Mr. Bishop
joined the staff
Dubuque Bank and Trust Com
in 1983 as an
pany has announced the promotions
agent for Farm
of two officers within its trust de
ers Mutual Hail
partment. Bruce C. Rehmke has
Insurance and
been promoted to vice president,
multi-peril rein
trust officer, and Melvin E. Miller
surance through
has been promoted to assistant
F.M. BISHOP
the Aetna Insur
vice president, investments officer.
ance group. He has been an agent for
Farmers Mutual since 1964.
Iowa News

Four Promoted in indianola
Four employees have been pro
moted at Peoples Trust and Savings
Bank, Indianola. Mike Coppess is a
vice president with the bank in the
loan department where he speciali• zes in agricultural and commercial
loans. He has been elected as a com
mercial loan officer. He joined the
staff in 1985 having previously
worked for the Federal Land Bank
• as vice president and manager of the
Indianola office.
•

M. COPPESS

•

D. KIEFFER

Dotti Kieffer has received the new
title of vice president. She was
named human resources director in
1985, having previously worked as a
loan and compliance officer. She has
been with the bank since 1978.
Marguerite Rucinski joined the
staff of Peoples in January to work
with real estate loans. She has been
promoted to assistant vice president
and real estate loan officer. She had
R. FRIDLEY
J. ALLISON
worked at the First National Bank
Mr. Fridley has been with the
of Sioux Falls, S.D., and at the Su
burban National Bank in Eden Prai company since 1983 when he joined
rie, Minn.

M.E. MILLER

B. REHMKE

Mr. Rehmke has been with the
bank’s trust department since 1983.
Mr. Miller joined the bank in 1984 in
the investments area.

K IN G M A N A G E M E N T
COM PANY
Farm Management Division

•

M. RUCINSKI

J. REESE

Janice Reese has been named to
assistant cashier. She is a certificate
of deposit counselor, a position she
has held since 1979, having prevviously worked at Peoples Motor
Bank since 1974.

Named in Ames
United Bank and Trust of Ames
has announced that Richard Fischer
has been named executive vice presi% dent and will be supervising all lend

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

King Management Company offers professional,
client-oriented, farm management and counseling
service free from any fundamental conflict of interest.
Specialists in professional farm management, farm
acquisition for investment, farm appraisals and
consultation.
James C. King
Raymond A. Schneider • Michael W. Murrane
816 Equitable Bldg. • Des Moines, IA 50309
515-282-3100
Members of American Society of Farm Managers and
Rural Appraisers and Farm & Land Institute

Northwestern Banker, April, 1986

78
Iowa News
V.P. Honored For Work
With Small Business
William B. Greaves, vice presi
dent of West Des Moines State
Bank, has been
named the 1986
Small Business
Financial Ser
vices Advocate
for Iowa. The
U.S. Small Busi
ness A dm inis
tration gave Mr.
G re av e s t h i s
honor for his
W.B. GREAVES
support of small
businesses in obtaining financing
and changes he advocated within
the financial services industry to
assist small businesses. The Small
Business Committee of the Greater
Des Moines Chamber of Commerce
Federation nominated Mr. Greaves.
Mr. Greaves experience includes
his appointment to a two-year term
on the Small Business Administra
tion Region VII-Des Moines advis
ory council in 1985. He also heads
the SBA department at West Bank
and has 36 years of banking experi
ence.

Named in Cedar Falls
Dorothy D. Heine has been pro
moted to vice president and cashier
at Cedar Falls
Trust and Sav
ings Bank. She
joined the bank
in 1963 and was
previously a
branch manager
in the College
Sq ua re office
and head of con
sumer loan oper
D. HEINE
ations.
Thomas Damgaard has been pro
moted to vice president and head of
the consumer loan operations. He
joined the bank in 1976.

T. DAMGAARD

V. LUND

Committed to
making your
bank stand
apart from the

Virginia Lund has been promoted
to marketing director. She will be re- ^
sponsible for all the product plan
ning, promotions, advertising and
public relations of the bank. She has
been with the bank since 1978. She
had been branch manager of the Col- q
lege Square office since 1973.

R. JUREK

L. DYKSTA

Regina Jurek has been promoted
to branch manager of the College
Square office. She joined the bank in
1981 and was promoted to assistant
branch manager in 1985.
Lolly Dykstra has been appointed
as an accounting officer. She joined
the bank in 1985.
David G. McDermott, senior vice
president, has been appointed to the
board. He has been with the bank
since 1985.

INDEX OF
ADVERTISERS

APRIL, 1986
ABN LaSalle National Bank, Chicago .
Advanced Resource Technologies, Inc.
American Express Travelers Cheques .

.. .29
. . .59
.. .16

Bank Building Corporation, St. Lou is. .
Bankers Trust Co., Des Moines ............
BetaWest Properties, Inc........................

.. .66

. 40-41

Daktronics, Inc.........................................
Dawson Hail In su ra nce ..........................
Deluxe Check Printers, Inc. St. Paul . . .
Drovers Bank of C h ic a g o ......................

... 4
. . .13
. 10-11
.14-15

. .3,5

Farmers Mutual Hail In s u ra n c e ..........................................12
FBS L ea sin g .......................................................................... 32
First National Bank, L in c o ln ............................................... 53 ^
First National Bank, O m a h a ............................................... 48 W
First National Bank, Sioux C i t y ........................................ 39
Gross, Kirk Co., W a te rlo o ....................................................69
Iowa Bankers Insurance & Services...................................73
Iowa Public Records Search, Inc......................................... 71
King Management Co., Des M o in e s................................... 77
Kirkpatrick, Pettis ................................................................65

Marquette Bank, Minneapolis ........................................... 9
Merchants National Bank, Cedar R a p id s ........................ 2
Municipal Bond U nderwriters..............................................51
National Bank of Commerce................................................61
North Central Life, Co., St. P a u l..........................................79
Northwestern Bell Telephone Co.........................................35
Norwest Corporation, M in n e a p o lis ............................................ 80^
Office Concepts, Ltd., W a te rloo ..........................................78
Rand/McNally & Company, C h ic a g o ................................. 7
Swords Associates, Inc., Kansas C ity ............................... 8
United States Check Book Co., O m a h a ............................. 63

Northwestern
Banker, April, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WeTake Care of the Paperwork...

So You Can Take Care of'four Customers.
•

•

At North Central, years of experience working with
thousands of banks, have taught us the value of
simplicity. How to eliminate the hassles and
administrative red tape of most typical credit insurance
programs. And, how to free up the energies of your
bank’s loan officer for what they do best—banking.
We call our approach, “A BETTER WW”. And it
means just that.
It means generating profits—not problems.
It means installing a proven, loan-related insurance
program that can protect your entire loan portfolio.
It means a computerized claims system that settles
your customers’ claims nearly 50% faster than the
industry average.

It means a “BETTER WW DESK” that puts solutions
to complicated rate calculations and approvals for
overlimit loan applications, just a quick, toll-free phone
call away.
It means training your loan officers and adminis
trative people to make them more productive and
professional.
And it means that we take care of the paperwork
so that y o u ’re free to take care of your customers.
And that’s what banking’s all about. Right?
We don’t have the answer to headaches caused by
the common cold. But if you’re looking for a remedy
to headaches caused by the common credit insurance
program, call

"America’s #1 Credit Insurance Service Organization.”

North Central Life Insurance Company
NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 64139, ST PAUL, MN 55164

In Minnesota Call 800-792-1030, all other states 800-328-9117.
P ro te c tio n all ways

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Fast check clearing.
Because you have
no interest in
funds in transit.
Reducing float is no longer
an optimistic goal. It’s a plain
§ necessity. A n d we believe
we offer the fastest, most
innovative cash letter services
you can find, anywhere.
It means we guarantee
availability. A n d we clear on
a local level, so not only
are we faster, but w e’re
capable of resolving errors
on the same day We also
can tell you what’s cleared
and what’s been deposited
anytime after 9 a. m.
We define relationship
banking as being ready to
meet your needs before
they becom e problems.
A n d fast cash letter service
is just one example o f how
we ’re actively doing just
that. Cali your Norwest
Client Executive for more
information.
Financial Institutions Group

NORWEST BANKS

mmmmm

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Full text of The Northwestern Banker : April 1986, 93rd Year, No. 1471

FRASER