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Case of the

—Part I


Bank Building
and Remodeling
Convention Programs:

South Dakota

IBAA Elects 1986-87 Officers
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
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.


APRIL 1986


93rd Year


No. 1471




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.



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
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


Twin Cities


North Dakota

Ag Outlook
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.
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

' j

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

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


O oc
< LÜ

(/) H -

C /)Z

Milbank, SD
Triangular free-standing

Bethany, MO
Corner mounted

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

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

Farmers Mutual Hail Reports Another
Outstanding Year for Iowa Company
HE YEAR of 1985 was another
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 —



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

Banker, April, 1986
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
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
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.


ï '•;


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


Convention Calendar
ABA—American Bankers Association
AIB—American Institute of Banking
BAI — Bank Administration Institute
BMA— Bank Marketing Association
IBAA— Independent Bankers Association
of America
NABW— National Association of Bank
Women, Inc.
RMA— Robert Morris Associates

National Conventions & Schools

Apr. 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,
May 11-14— RMA Financial Statement An­
alysis Workshop, The Sheraton Plaza,
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,
May 25-June 6—BMA School of Trust and
Personal Financial Services Sales and
Marketing, University of Colorado, Boul­
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.
Banker, April, 1986
Federal Reserve Bank of St. Louis


June 15-27—ABA Stonier Graduate School
of Banking, University of Delaware,
June 16-20— BAI Asset/Liability and Finan­
cial Management, Chicago.
June 22-27— BMA School of Bank Market­
ing Colloquium, University of Colorado,
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
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,
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

June 4-7—CBA Annual Convention, Broad­
moor Hotel, Colorado Springs.
Oct. 6-7—Asset/Liability Mgmt Seminar, Den- ®
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
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,
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.


Apr. 12-16— IBA Washington D.C. Trip, J.W.
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
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
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.


Apr. 9— MBA Insurance Risk Management
Seminar, Radisson Inn, Plymouth.
Apr. 22-24— MBA Bank Directors Seminar,
North Mankato, Bloomington, Brainerd
Apr. 27-May 2— MBA/ABA Executive Devel­
opment Program, Hyatt Regency, Min­
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,

(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
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
Federal Reserve Bank of St. Louis


(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,
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.
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,
Apr. 8-17—NBA Head Teller/Teller Staff Con­
ference, locations around the state.
Apr. 9-12—NABW State Conference, Holiday

Let’s talk

Inn Hotel, North Platte.
May 15-17— NBA 89th Annual Convention,
Red Lion Inn, Omaha.
May 22-23— IBAA Ag Lender I Workshop,
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
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
Sept. 18—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.


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

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.




4900 OAK



Banker, April, 1986
Federal Reserve Bank of St. Louis






Apr. 16-17—WBA Ag Bankers Conference,|
Holiday Inn Holidome, Stevens Point.
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.


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

H995 will put
the banking industry
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Save money. At $49.95 per set (two volumes),
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Federal Reserve Bank of St. Louis

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.
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include applicable tax, shipping and handling charges.
Name_____________________________________ T itle______________________
City__________________________ S tate___________ Z ip ---------------------------The following will activate your service:
D ate_____________________________________Phone 1______ l_______________

Less cost.
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Federal Reserve Bank of St. Louis

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





Being the leader in
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New Rand McNally & Company
Docusystems Division Formed
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
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





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 &
7 3 ,5 7 8 ,8 8 8

C ontingent Commissions

3 ,7 8 5 ,9 4 4



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


$ 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

Real Estate-Home O ffice

Agents Balances & Reinsurance

8 ,7 0 7 ,9 8 4

Interest Due and Accrued

1 ,9 2 4 ,2 8 7

All Other

David A. Rutledge


9 4 0 ,4 4 6


$ 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


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

Banker, April, 1986
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
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
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
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 ° °

P.O. Box 1820, Fargo, ND 58107

Northwestern Banker, April, 1986


FDIC Increases Loss Allowance
HE Federal Deposit Insurance
Corporation board of directors
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
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

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
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
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-


Federal Reserve Bank of St. Louis


Deluxe Is Offering Pegboard
Temporary New Account Kit
ELUXE One-Write Systems an­
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
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.
J.j CX± I CXI Lgll


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

of Chicago

Federal Reserve Bank of St. Louis


A Cole-Taylor Bank


A strange
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.

Travelers cheques sales
before switching.
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.



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
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
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
(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

Kirk Gross Company
Waterloo, la. and
Pensacola, Fla.

OUNDED in 1936, by Kirk Gross, this year the
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

Banker, April, 1986
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
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


















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
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
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
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
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.
Banker, April, 1986
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
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-



















terior designer, conferring with Raymond E. Wallace
of San Pedro, Calif., who contributed the nautical de­
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
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

The Case of the
Defendant Director:
Part I

Legal sources of

ODAY’S financial crises have forced into sharp
focus the almost frightening potential for liability
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
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.
DIRECTOR is defined as “one who directs, rules
or guides.’’ At the basic level, a director assumes
the duty to prudently and reasonably supervise the afNorthwestern
Banker, April, 1986
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
(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

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.
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.
(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. §§
(g) the Community Reinvestment Act (12 U.S.C. §§
(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:
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
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
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);
(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
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



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
was the key word pur­
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
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.
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
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
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
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
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
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
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.
(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
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
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,
Vice-Pres.—J.R. Nunn, president,

Banker, April, 1986
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
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- %
“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” ^
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 %
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.
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
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.

(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
(Continued from page 17)
With a careful selection of tenants, traffic to each
business in the mall will tend to benefit all.
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

Banker, April, 1986
Federal Reserve Bank of St. Louis

“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
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
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
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.

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
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

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
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
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
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
the Bank
Continental Illinois Corporation
agreed last month to acquire The
First National Bank of Western
Springs for approximately $10.5 commercial loans at LaSalle Na­
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
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.

Banker, April, 1986
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
Marland Kelly, president, First
National Bank in Sparta.
Gene Kirk, executive vice presi® dent, First State Bank of Calumet
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
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
* * *
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.
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.
Federal Reserve Bank of St. Louis

Illinois News
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
View, Mr. Lytle
was vice presi­
dent of the State
National Bank,
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/
Northwestern Banker, April, 1986

Are you taking
full advantage of your
leasing options?






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
Federal Reserve Bank of St. Louis

5 First Bank Locations Being Sold
GREEMENTS have been signed
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
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.
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
Federal Reserve Bank of St. Louis

thington have created an employee
stock option plan for future invest­
Specific purchase terms were not
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.

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
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
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
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.
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



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

Banker, April, 1986
Federal Reserve Bank of St. Louis




Norwest Bank East St. Paul has
announced the election of Thomas
W. Longlet as
president of the
Mr. Longlet
has had exten­
sive commercial
lending and com­
mercial services
experience a t
Norwest Bank
St. Paul where
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


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




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.



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


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©1986 Northwestern Bell Telephone Company
Federal Reserve Bank of St. Louis

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


Minnesota News
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
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.



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



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
sion. He joined
Mr. Naylor has been with the
First Bank System since 1957, most
recently as senior vice president,
been pro­
First Bank Saint Paul. He was pro­ has
to vice
moted to senior vice president in president/commercial
real estate.
1983 and is
Mr. Larson joined the bank in
1970. He has been vice president for
the leasing group of First Bank Min­
Susan Sauro has been promoted
neapolis since 1984.
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



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
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
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

* * *

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
Banker, April, 1986
Federal Reserve Bank of St. Louis




estate supervisor.
Raymond A. Johns has been


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
elected assistant vice president, access to credit.
involved in I f f w ic h m a n n
commercial lendasset and Labili­
in g of F ir s t
management for the bank. He
Bank Security,
to the bank from a similar po­
St. Paul, with re­
at Americana Bank in Hay­
sponsibility for
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
opment of new
of Bank Women State Confer­
The company’s primary subsidi­
business and in­ M. HOLLAND-REHDER
will be held May 1-2 at the Min­
ary corporation, The Merchants Na­
volvement in the
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
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.
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.
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.
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
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
* * *
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986




Vice President

Exec. Vice Pres.

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
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
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:
Banker, April, 1986
Federal Reserve Bank of St. Louis

Sunday, May 11


Registration until 8:30 p.m., Exhibit Hall
“Return to the ’50s” reception, dinner and
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.






in Service.
Mark Paradise
Correspondent Banking

Patty Stansbury
Investment Representative

Lon Kelling
Ag Lending Officer

Doug Schmidt, Vice President Commercial Lending

Phyllis Foster
Investment Representative


Gary Stevenson
Vice President
Correspondent Banking


• 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
Federal Reserve Bank of St. Louis

Member FDIC


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
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
Federal Reserve Bank of St. Louis








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


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
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.
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
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.
First Interstate Bank of Denver:
Peter Holekamp, correspondent
bank officer.
Minneapolis/St. Paul
American National Bank, St.
Paul: James Russell, vice president;
Banker, April, 1986
Federal Reserve Bank of St. Louis







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
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
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
M ark
Nowak has been
named a vice
p re sid e n t, re ­
sponsible for the
bank’s commer­
cial credit ser­
vices. A certified public accountant,
he joined the bank in 1979 and most
recently had been assistant vice
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

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
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
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

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
ranThree Promoted in Fargo
groups involved with agriculture,
Three promotions on the staff at
the atto rn ey general’s office,
First Bank Fargo have been an­
FmHA, and farm customers.
joined the bank
nounced. Steven
Dr. William Dando, director of
G. Lovas has
ag research at the University
been promoted
Dakota, will offer a unique
to vice president/
the Soviet food pro­
and entertainment
Norloans. He began
for Thursday even­
his banking ca­
Marvin Dun­
reer a t F irs t
can, senior deputy governor of the
Bank Fargo in
in Thief River Falls and Marshall, Farm Credit Administration, Wash­
1979 as a man­
ington, D.C., will conclude Friday’s
agement trainee.
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
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
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

Banker, April, 1986
Federal Reserve Bank of St. Louis



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
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
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
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



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
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

Appointed by NDBA
Diane Aim has been appointed as
North Dakota Bankers Association
insurance manager, a newly-created
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
nel banking and financial manage­
(Continued from page 42)
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.
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
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1986

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

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
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
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
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

Banker, April, 1986
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-

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
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
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.
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
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
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
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

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
Federal Reserve Bank of St. Louis


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








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


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
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
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
Registration opens
NBISCO Boad of Directors Meeting
Executive Council Meeting
12:00 VIP Luncheon
Networks Board of Directors Meeting
Past Presidents Meeting
1986 Trade Show - Opening Reception
BankPAC Committee Meeting

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
“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”


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








Banker, April, 1986
Federal Reserve Bank of St. Louis

NBA Annual Meeting Networks Annual
“High Performance Banking“
Mr. Alex Sheshunoff, founder of Sheshunoff &
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
NBA Registration Desk open
Buffet Breakfast - Featuring
Mr. Rocky Bleier, athlete
“The Best You Can Be’’
9:30 “A Report From Washington”
Mr. Frank Naylor, under secretary of agricul­
ture for small community and rural develop­
10:45 Fitness Break
Trade Show Exhibit Area
11:30 NBA Annual Awards Luncheon



We’re the people who have been
William March

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

Wayne A. Rasmuss

John Trecek

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

Member of the Securities Investor Protection Corporation
Federal Reserve Bank of St. Louis


Nebraska News

You Will See Them at the 84th Annual
Nebraska Bankers Convention
HE following m etropolitan
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.
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
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.
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
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
ecutive vice president of the Neb­
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
cial lending officer at Bank West, NYB Holds Meeting
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.

Banker, April, 1986
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.


________ 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,
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the strength, experience and
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For correspondent services
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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
Federal Reserve Bank of St. Louis


Nebraska News

NBA President Mel Adams:

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

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
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

Banker, April, 1986
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
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
“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
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
“ 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
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
“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’
• Set up qualifications standards.
• Establish adjustable interest
• 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
• 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
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
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
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
NBA President-Elect
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.


Banker, April, 1986
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
A new shopping center is being
built in Scottsbluff, but downtown
retailers are closing up and there are
many vacancies in the downtown
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.
First National Bank of Ord
USINESS property and land
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
fared better than other parts of the
country. We feel values are close to
Scottsbluff National Bank
bottoming out and can come close to
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
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
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
dustry to the extent that it fluctu­
Senior Executive Vice President
ates $5 to $7 in a week’s time with
First National Bank & Trust Company
populated communities in Nebraska still the same number of head being
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
ward or, at best, remain flat until
around the middle of 1986. This out­
State Bank
look reflects principally the impact
the economic pressure on the agri­
Wauneta Falls Bank
cultural sector is having on other
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


Federal Reserve Bank of St. Louis


Northwestern Banker, April, 1986


Nebraska News

6 FirsTier Banks Adopt Same Name
HE two largest Nebraska-based
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
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,
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.
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.
Banker, April, 1986
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


(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
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.
Federal Reserve Bank of St. Louis


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
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
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



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
Banker, April, 1986
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.


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,
year. Mark Seger, who joined’
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.
* * *
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
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,
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!


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



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
Mr. Melena is
a consulting pro­
ject manager for
th e com pany,
which provides a
broad range of
consulting ser­
vices to small
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.



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.

Banker, April, 1986
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 ­
Over the past
30 years Mr.
Crouch has been
an executive of­
ficer at three dif­
ferent financial
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
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.

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









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
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
Federal Reserve Bank of St. Louis

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
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.

MAY 15-17

United States Check Book Company
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
Associate Publisher
HE Big Picture of agriculture,
as Dr. Neil Harl, professor of
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
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.
Banker, April, 1986
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
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
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
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
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. ’’ □
Federal Reserve Bank of St. Louis


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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
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.
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
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

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
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
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.

Federal Reserve Bank of St. Louis

1986 Iowa Group Meetings

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

Iowa City
Des Moines
Council Bluffs
Fort Dodge
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

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
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.
Banker, April, 1986
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
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


First national Bank of Waverly • Waverly, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50704
Phone 319-234-6641
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
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
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
Banker, April, 1986
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
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
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
R ic h a rd J .
Carlson has been
promoted to ex­
e c u tiv e
p re sid en t and
secretary . He
joined the bank
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

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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
Associate Publisher
VER 125 area bankers attended
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.
One major problem that has caused

Banker, April, 1986
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
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.


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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
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-



Banker, April, 1986
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
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





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
* * *
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-



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
Iowa: Richard
Bro, data pro­
cessing; Claude
• Dawson, bank­
ing operations,
and Larry Glass,
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
* * *



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
Mr. Rogers joined Bankers in
1983 as vice president of corporate



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.



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



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
M r. Downs
joined Bankers
Trust in 1982 as
the director of security. He was
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.
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




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




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
Trust Company, Des Moines,
one of Iowa’s
largest indepen­
dent banks, does
not see his re­
ending at the
bank’s doors. He
also sees himself
as a caretaker
for his communi­
‘ ‘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
“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
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
Northwestern Banker, April, 1986
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.”

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.



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.

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
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
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.






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
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.



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

Farm Management Division





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
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
James C. King
Raymond A. Schneider • Michael W. Murrane
816 Equitable Bldg. • Des Moines, IA 50309
Members of American Society of Farm Managers and
Rural Appraisers and Farm & Land Institute

Northwestern Banker, April, 1986

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
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

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
Thomas Damgaard has been pro­
moted to vice president and head of
the consumer loan operations. He
joined the bank in 1976.



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.



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.



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

. .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

Banker, April, 1986
Federal Reserve Bank of St. Louis

WeTake Care of the Paperwork...

So You Can Take Care of'four Customers.



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thousands of banks, have taught us the value of
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Federal Reserve Bank of St. Louis

Fast check clearing.
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Federal Reserve Bank of St. Louis