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Bank Designing
•Keeps Pace with
Industry Needs

Home State Bank, Loveland, Colo.

Citizens National Bank, Darlington, Wis.

Exclusive interview:

Community Bankers
Speak Out
Federal Reserve Bank of St. Louis

Jerry and his son, Brent, working together in preparation for the MNB Bike Races.

Great Accomplishments
Great accomplishments require determination.
Hard work.
And sometimes a little assistance.
Assistance from someone who believes in you.
Someone strong and experienced. Someone who
can work together with you. And help you see
things from a fresh perspective.
Jerry Trudo is a key member of the correspondent
banking team at Merchants National Bank. With
professionals like Jerry and assets of over $720 million,
MNB can provide the financial strength and assistance
to support your hard work and determination.
Together we can accomplish great things.
Call Jerry Trudo at 319/398-4306 or toll-free


Strength of \

Io w a __/MerchantsNational Bank 1:1
Federal Reserve Bank of St. Louis

C edar R a p id s. Iowacoam

Memberc m


Visa USA makes
the Plus System
even easier.
The Plus System network... the leader in shared
Automated Teller Machine systems, has gained a most
impressive industry advantage... an affiliation with
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Charles T. Russell, president of Visa U.S.A. states,
“The affiliation of Visa U.S.A. with Plus System, Inc. brings
together the resources, experience and expertise of two
acknowledged industry leaders. Now financial institutions
anywhere in the U.S. and Canada can make a national network
decision with a new level of confidence and commitment.”
The Plus System network, long recognized as the premier
ATM network, has earned its reputation for excellence because
of an ongoing dedication to personalized service and the industry’s
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Make the right decision today.. .join with Visa U.S.A.
in selecting the Plus System network. For complete in­
formation regarding membership, contact your local
Plus System financial institution or call Plus System, Inc.
at (303) 573-7587.


Federal Reserve Bank of St. Louis


Dear Readers:

94th year

APRIL 1987

No. 1483


FIVE community bank leaders from the Community Bankers Division of the Amer­
ican Bankers Association took part in an exclusive interview conducted by the
N o r t h w e s t e r n B a n k e r last month during the Division’s 1987 National Conference
for Community Bankers in Phoenix. Participants (I. to r.) are: James V. Kuchar,
pres., Western State Bank, Devils Lake, N.D.; Richard J. Schurtz, pres., Bank of
New Richmond, New Richmond, Wis.; C.G. Kelly Holthus, pres., First National
Bank, York, Nebr., and pres., Nebraska Bankers Association; B. LaRae Orullian,
pres., The Women’s Bank, N.A., Denver, Colo., and Franklin H. Moore, Jr., chmn. &
pres., Commercial and Savings Bank, St. Clair, Mich., and chmn. of the ABA Com­
munity Bankers Council. Mr. Schurtz is a former member of the Council and the
other three are current members. Interview starts on page 22.



Guest editorial

Nebraska banker urges “ Truth in Bankruptcy”


10 Questions to ask

...when you are selecting a bank design firm


Functional bank design

A need that knows no state boundaries


Community bankers speak out


Twin Cities
South Dakota
Convention Program
North Dakota

36 Wyoming
37 Colorado
39 Nebraska
40 Omaha
45 Iowa
59 Vignettes of bankers
60 Des Moines
62 Index of Advertisers

1535 Linden S treet, S uite 201, Des M oines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1483 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 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.

Banker, April, 1987
Federal Reserve Bank of St. Louis

We are very pleased to announce
to you that arrangements have been
made with Dr.
Douglas V. Aus­
tin , a n o te d
banking consul­
ta n t,
for a
monthly feature
that will discuss
p rim arily the
role of the bank
and opportuni­
ties—starting next month in the
May issue.
We are excited about this for in
the past several years when we have^
heard Doug Austin as a convention
speaker or, more frequently, as
leader of seminars that run from a
half-day to three days, we have been
impressed with the attention he gets
from his audiences and their respect
for his very solid ideas. Dr. Austin’
depth of knowledge in the finan
field gives him a highly quali
background to discuss the role of
bank director, as well as matter
pertaining to bank management. He
has “earned his stripes’’ on both the
academic front and his own manage­
ment consulting business.
Dr. Austin holds four degrees
that form the basis of his practical
career as college teacher and suc­
cessful businessman. In June, 1959,
he received his B.A. degree with a |
major in economics and minor in
philosophy from Ohio Wesleyan Uni­
versity, Delaware, Ohio. He then en­
rolled at Indiana University in
Bloomington where he received his!
M.A. degree in economics in June,
1961, and continued his graduate
studies to earn a Joint Ph.D. in Eco­
nomics and Business at that univer­
sity in June, 1964. His doctoral!
studies in the Graduate School’s
Department of Economics resulted
in his major in Finance, with minors
in Money and Banking, Economic
Theory, Business Economics and!
Public Policy.
To round off that education, Dr.
Austin was graduated in 1978 from
the College of Law at the University
of Toledo, where he had been associ-!
ated as a teacher in the Department
of Finance since 1969.
In addition to being admitted to
(Turn to page 20, please)


ABA Has Found the Key . . .
A New Source for D & 0
and Blanket Bond Insurance . . .
Responding to the needs of bankers, ABA
is sponsoring a national program to offer
D & 0 and bond coverage to qualifying
banks. Working in partnership with the
Progressive Companies, a top-rated in­
surance firm, a program has been de­
veloped th at allows bankers to regain
control in w hat has been an industry
Progressive is now underw riting and
they will handle all claims.

*** Low distribution costs and sensi­
ble banker management will mean
operational savings and highly
competitive premium quotes.
*** D & O coverage will initially be
available up to $2 million, and
Financial Institution Bond cover­
age will be available up to $3 mil­
*** Excess Bank Employee Dishon­
esty Bond and the Combination
Safe Depository Policy for Finan­
cial Institutions are also available.
Federal Reserve Bank of St. Louis

The charter member application
period has now been extended to
May 15, 1987.
Applying for premium quotations by
this date will result in significant
savings for your bank even if you will
not need any insurance until your
present policies expire later in
the year.
For additional information and appli­
cation forms, call 800-522-0412

(Ohio 800-362-7605)
You have nothing to lose by simply
requesting quotations.

This program is sponsored by

! 120 Connecticut Avenue, N.W.
Washington, D.C. 20036

Northwestern Banker, April, 1987


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Here To Serve You Well

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FirsTier Bank Omaha and FirsTier Bank Lincoln are a
dominant financial force throughout the heartland. We
know this area and its people. That’s why we’re the
institutions to turn to for help with your own needs, or
when serving the needs of your customers.
As a member of the $2 billion FirsTier Financial group,
we offer the experience, expertise and financial strength
that few can match. And we mean business for those
we serve.
Count on us to serve you well.

FirsTier, B anks


In Nebraska: 800-642-9305
Nebraska: 800-228-9175
Outside Nebí

In Nebraska: 800-742-7462

FirsTier Bank, N.A., Omaha and FirsTier Bank, N.A., Lincoln, Members FDIC
Federal Reserve Bank of St. Louis


states, according to Stephen J. Leaman, senior vice president of the
Beachwood, Ohio corporation.
The initial application deadline
Total attendance at the more than
for the American Bankers Associa­ 50 ABA-sponsored briefings in 25
tion-sponsored D & O and blanket states has passed the 3,000 mark.
bond insurance program has been Eighteen state bankers associations
extended from March 15 to May 15, have officially endorsed the program
and are assisting to promote it.
Announcing the two-month ex­
Bankers who submit an applica­
tension, ABA President Mark W. tion prior to May 15, 1987 and de­
Olson said the decision was made in cide to participate in the program
response to request from bankers will be required to place an amount
and from state bankers associations equal to their first year premiums
that have officially endorsed the pro­ for the D & O and blanket bond
gram. He explained that bankers at coverage in a special account, called
promotional briefings for the pro­ a reserve premium account, in their
gram reported they hadn’t had suffi­ own bank.
cient time to study the extensive
Bankers applying after May 15
materials. Also, there has not been will, in addition to establishing a
time to conduct all of the promo­ reserve premium account, be re­
tional briefings that the state bank­ quired to make a cash reserve pay­
ers associations have requested. ment to the program equal to 50 per­
“The deadline extension is an ex­ cent of their first year premium.
ample of how this ABA-sponsored
Insurance application packages
program is responsive to bankers’ are available by calling Progressive
needs,’’ said Mr. Olson, who is also at (800) 522-0412 or (800) 235-2820.
president of Security State Bank,
Fergus Falls, Minn.
Chicago Investment Firm
The Progressive Companies, the
primary carrier, has received more Hosts Seminars in 3 States
than 1,000 applications from all 50
A one-day seminar on Bank Port­

ABA-Sponsored Insurance
Program Deadline Extended

folio Management will be presented £
in four cities in Iowa, Illinois and
Wisconsin during May by Griffin,
Kubik, Stephens & Thompson, Inc.,
a Chicago investment banking firm.
The seminars, aimed at helping q)
banks achieve excellence in portfolio
management, will be presented as
• May 8—Des Moines, la., Mar­
riott Hotel.
• May 14—Peoria, 111., Pere Mar­
quette Hotel.
• May 15—Chicago, Palmer
• May 21—Madison, Wis., Shera- O
ton Inn.
Three principals of the firm will be
the main speakers at the seminars—
James L. Kubik, Larry O. Stephens
and David M. Thompson. They will Q
discuss topics covering portfolio
strategies involving funds, munici­
pals (taxable and tax-exempt), floating/fixed rate CMOs, and mortgagebacked strategies.
Interested bankers may register
without charge by contacting Karen
A. Hallberg at GKS&T in Chicago:
800/572-8943 in Illinois, or 800/
621-5714 out-of-state.


Reserves for:

Bonds: (Amortized)
$ 2 5 7 ,9 9 4

Losses and Loss Expense

$ 2 7 ,0 6 9 ,8 0 4

8 4 ,7 0 4 ,9 9 6

Contingent Commissions

3,1 8 9 ,4 9 6


State, County &

C ontinued g ro w th has increased to ta l assets
and surplus to FMH policyholders.
Ten years ago, our C om p any's insurance in
force totaled $ 1 ,0 0 3 ,0 0 0 ,0 0 0 , w ith total
assets o f $ 5 2 m illion and surplus to ta lin g
ju s t over $ 3 2 m illion.
To date, our insurance in force has increased
to $ 1 ,5 8 1 ,0 0 0 ,0 0 0 , w ith to ta l assets and
surplus to po licyh olders, more than do u­
bling. For the past 2 5 years our financial
sta b ility has earned the highest possible
rating by A .M . B e s t..." A + " .
Farmers M u tual Hail re prese nts sound
m anagem ent, q u ality sales and service in
Crop Hail, Reinsurance and P oultry lines.

All Others

1 7 ,3 7 1 ,9 3 2


$ 1 0 2 ,3 3 4 ,9 2 2

Taxes (Other than Federal Income)

550 ,3 4 1

3 0 ,0 0 0
1 ,3 3 4 ,4 8 3

1 ,3 6 4 ,4 8 3
Unearned Premiums
Funds Held Under Reinsurance

Real Estate-Home Office

6 9 3 ,1 4 6

9 8 0 ,4 3 7
All Other

Cash and Bank Deposits

1,71 2,1 81

Agents Balances & Reinsurance

5 ,9 6 8 ,6 3 1

Interest Due and Accrued

1 ,9 7 5 ,4 9 5

All Other

8 ,2 4 3 ,4 9 6

8 0 4 ,0 0 2

1 ,2 3 0 ,2 3 9


$ 4 0 ,9 7 6 ,5 2 2

Surplus as Regards Policyholders

$ 7 4 ,1 6 3 ,6 2 9

Perry Rutledge

$ 1 1 5 ,1 4 0 ,1 5 1


DALE DEN HARTOG, Sr. Vice President & Treasurer
WILLIAM A. (BILL) RUTLEDGE, Secretary & Asst. Vice President

Banker, April, 1987
Federal Reserve Bank of St. Louis

$1 1 5 ,1 4 0 ,1 5 1



Take a closer look
at Carroll McEntee

We're rated tops in Government Securities,
and Keith White is one reason why.




In 1970, we started the market for government odd lots — and have ranked
Number 1 ever since. Today, round lots or odd lots , we're a top primary dealer
with over $2 billion in daily trading volume and over $100 million in capital. We've
come a long way!
Keith White is typical of the specialists available to you . . . in any one of our branch
offices. You can count on the personal touch you've come to expect from CM&M. Work
with Keith or any of our professionals, and you'll understand why we're rated so highly
by institutional market participants.
Because we're larger and more experienced, you benefit from instantaneous
market information . . . faster pricing . . . precise execution on every
trade . . . in any one of our branch offices.
You'll find that we can provide a trading edge in the government
market. All the advantages of a primary market maker with global,
round-the-clock trading capabilities are yours . . . through any one
of our branch offices.
Take a closer look at Carroll McEntee & McGinley today —
you'll like what you see. U.S. Treasuries. Agencies.
Money Markets. Repurchase Agreements. GNMA's. STRIPS.
Financial Futures and Options.

40 Wall Street, N ew York, NY 10005 (212) 825-6780
Atlanta (404) 522-5325 • Boston (617) 482-9600 • Chicago (312) 368-8680 • Cleveland (216) 621-0303
H ouston (713) 654-0015 • Philadelphia (215) 567-6804 • San Francisco (415) 398-7600 • London • Tokyo

member: HongkongBank group
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987

if managing your investments is taking up
more time than you'd like it to, call Chase.
Instead of spending hours on the phone
talking to dozens of people, you'll talk to
just one person. Your Community Banking
Account Manager.
Your Manager will handle everything.
From telling you about our high yield, liquid
investment options to filling you in on how
events in the financial world may affect your
We do all this so you can make better
IBM is a registered trademark of the IBM Corporation.
© 1986 The Chase Manhattan Bank, N.A./Member FDIC
Federal Reserve Bank of St. Louis

investment decisions.
And so you can make them faster.
But if this still isn't fast enough, Chase has
just the thing. The Chase MicroStation. It
lets you manage your cash, information and
investments all from one location: your
IBM compatible PC. All at the speed of light.
Which makes it perfect for those of you
who are in a real hurry.
For more information, call Dave Larsen,
Vice President, Chase Community
Banking Division, (212) 552-4153.


Guest Editorial
Lincoln, Nebr.*












OUR RECENT open letter to Sen. Grassley as
published in your Weekly Newsletter was read
with great interest. I applaud you as editor of the
N o r t h w e s t e r n B a n k e r for the very accurate analysis
of a most stressful situation, namely Chapter 12 Bank­
I would like to quote the Lincoln (Nebraska) Journal
newspaper of December 21, 1986, in which it states
that Donald Leu, president of Consumer Credit Coun­
seling Service of Nebraska, stated 40 percent to 50 per­
cent of those who file bankruptcy every year do so
Though not realized by everyone, it is felt that farm­
ers, bankers and all bank depositors are being ex­
ploited through a very small group of attorneys adver­
tising for and promoting needless bankruptcy filings.
It is not felt this unprofessional practice will cease until protective legislation is enacted.
As bankers, we are being forced to refuse credit to
young farmers and businessmen who deserve to be
helped in getting started. We want to help these young
people as they are the future of our towns, our banks
and our country. Because bankruptcy has become such
an easy “cure all” for so many, we cannot risk deposi­
tor’s money to help many of those who need our help to
get started.
When legislators felt lenders were taking unfair advantage of borrowers they enacted legislation called
“Truth-in-Lending. ”
This legislation has not been a total “cure all” but it
has helped make many wrongs right. It is felt that
much could be done also in the area of bankruptcy to
correct “wrongs” created by bankruptcy.
I would estimate that for every 10 bankruptcies we
see, six or seven have some degree of fraud involved.
As an example, our bank has a bankruptcy case today
where the customer listed real estate valued at
$500,000 to $600,000 on his financial statement, listed
title as being in his name, and the property involved
was never titled in that individual’s name.
We have many individuals who come back and state
“if my lawyer had told me everything involved, and
the adverse consequence to my family, we would never
have taken bankruptcy.” It is not felt there is a one
hundred percent “cure all” in providing complete infor­
mation and understanding to anyone taking bankruptcy, but I suggest the following:
Let’s enact Truth-in-Bankruptcy legislation which
will require the bankruptcy attorney to complete a
questionnaire signed by both the attorney and client in
every bankruptcy case. If the attorney involved failed
to complete the form, he could be liable for malprac­
Federal Reserve Bank of St. Louis

Questions involved would be such as:
1. Was bankruptcy encouraged by any group or at­
2. Were you encouraged to enter bankruptcy by any
advertising media your lawyer used?
3. Have you ever been adjudged a bankrupt before?
— If so how many years a g o _____ ?
4. Did your lawyer advise you your future credit
could be damaged by having taken bankruptcy?
5. Did your lawyer advise you your ability to be
bonded could be refused because of having taken bank­
6. Was any financial information given by you to the
lender fraudulent in any way? (Please explain on re­
verse side, if true.)
7. Were the appraisals given by you to the lender
correct to the best of your knowledge?
8. Did you own all collateral listed on financial state­
ments (in your name) at the time you gave your finan­
cial statement to secure the loan?
9. Was any collateral transferred by you to any one
else in anticipation of bankruptcy? If so, specify col­
lateral, value, date transferred, to whom transferred.
10. Are all of your assets and liabilities listed on
your bankruptcy filing?
There are probably more questions that should be
asked. This application should be signed under oath by
the bankrupt and his/her attorney.
If everyone taking bankruptcy realized fraud was no
longer tolerated by the court, and their case would be
set aside if fraud was uncovered, many bankruptcy
cases would never reach court. Also, many cases would
be avoided because more people would be truthful
before reaching bankruptcy. This, of course, would de­
crease the number of cases filed, with great savings to
the honest, creditworthy taxpayers of the land.
I feel the lender should be honest with the borrower.
The borrower should be totally honest with the lender.
The attorney should be responsible to advise his client
about all aspects (good or bad) that result from bank­
It is hoped that “Truth-in-Bankruptcy” could be
enacted and so make the attorney responsible to en­
lighten his or her client about what he is getting into
from a credit standpoint, social standpoint, and busi­
ness standpoint.
*Mr. Leffler is chairman, president and CEO of the Security Na­
tional Bank, which headquarters in Sidney, Nebr., and has a
branch in Harrison. He also owns the Crawford State Bank and
the Security State Bank in Holbrook.
Northwestern Banker, April, 1987



The results of a customer study commissioned by the Federal
Reserve Board and Comptroller of the Currency* indicates


40 percent say they w ill change financial institutions in order to consolidate
their financial affairs.


60 percent w a n t to consolidate their financial affairs at their local bank.
Compared to regional banks or national brokerage firms - less than 20%.


The majority of the consumers, w he n looking for financial advice, turn to a

Most customers say th e y w a n t to remain loyal to their local
bank, but th e y also insist on having additional service and
investment choices.
Federal Reserve Bank of St. Louis



Join the participating Investment Center bankers w h o are:

Adding profit w ith little expense.


Attracting ne w customers.


Retaining present customers w h o are taking their deposits to the competitors.


Diversifying services & products.

Why Us?

We offer you:


Proven track record




Registered investment advisor


Securities broker


Certified financial planners


Full range o f products & services


Proven marketing techniques designed for bankers, by bankers

7\s reported in "Financial Services Supermarkets: The Market For Consolidation,"
1986 by Kenneth Kehrer.



Federal Reserve Bank of St. Louis

(701) 258-4399


1st Wisconsin Enhances Online Banker
IRST Wisconsin National Bank
of Milwaukee has announced en­
hancements to Online Banker, a
direct inquiry and transaction ser­
vice. First introduced in 1985, On­
line Banker allows corporate and
correspondent customers to use per­
sonal computers or CRTs to access
information stored on First Wiscon­
sin’s mainframe computer and to
perform banking functions online.
On March 1, First Wisconsin
added current-day information to
Online Banker's prior-day reporting
capabilities. Additions include:
• control disbursement clearings.
Customers can see clearings totals
by 9:15 a.m. CST, along with all of
the check detail that comprises the
• lockbox and cash letter depos­
its, as well as other paper-based ac­
tivity. Float detail is provided, al­
lowing viewers to identify what
share of funds is immediately avail­
• wire transfer activity. Custo­
mers can see incoming and outgoing
wires as they are posted to their ac­
counts, identified by wire number
and the originating or receiving

• investment activity. Displays
transactions made through First
Wisconsin’s Money Center immedi­
ately upon posting to the customer’s
This new information, coupled
with prior-day balance reporting
already provided through Online
Banker, allows corporate treasurers
and correspondent bank officials to
monitor their balance position
throughout the day. That way, they
can make informed investments and
borrowing decisions. “We recognize
the need that corporate treasurers
and our correspondent bankers have
for current information,’’ com­
mented Tom Rave, vice president
and division head for Cash Manage­
ment. “We’re committed to provid­
ing them with the quality products
they need to do their jobs. By allow­
ing them to access our mainframe
computer, they now see what we
Also added to Online Banker in
this phase is the ability to initiate,
inquire and cancel stop payments
online for control disbursement ac­
counts—functions that were intro­
duced for regular business accounts
in Phase I of the product’s develop­

ment. “Customers do not have t o ^
contact us at all now to handle stop w
payments. As a result, we can lower
our prices by nearly 50 percent for
stop payments made via Online
Banker, ” Mr. Rave added.
First Wisconsin bankers will b e w
available to discuss Online Banker
and other products at the Twin
Cities and Windy Cities Cash Man­
agement conference in April and ^

Three State Bankers
Assns. Join Banclnsure
Banclnsure, the captive insurance %
company formed by five state bank­
ers associations in 1985, announced
recently that three additional states
have purchased equity positions in
the company.
Banclnsure, formed originally by
the state bankers associations in
Minnesota, North and South Da­
kota, Oklahoma and Wisconsin, now
has attracted state associations in #
Arkansas, Montana and Oregon. Li­
censing arrangements have been
completed in each of the three new
states and marketing efforts are
underway, according to Galen Pate, #
president of Banclnsure and presi­
dent of the Signal Bank of West St.
Paul, Minnesota.

How to Achieve Excellence
in Portfolio Management
• Economic Overview/lnterest Rate Outlook
• Portfolio Management Strategies To
Enhance Spreads, Improve Flexibility,
Increase Earnings

• Tax Reform Act 1986/lmpact & Update/Crowe
Chizek & Co. CPA's
• Current Developments In Asset Securitization

• How To Manage Your Minimum Tax Liability

• Qualified Tax-Exempt (QTE) And Taxable
Municipals Update

• Mortgage-Backed Securities (MBS):

• Utilization of Collateralized Mortgage Obligations:
Fixed vs. Floating?

May 8,1987
Des Moines, IA

May 14,1987
Peoria, IL
Pere Marquette

May 15,1987
Chicago, IL
Palmer House

May 21,1987
Madison, Wl
Sheraton Inn

For Information and Reservations,
Call 1 (800) 572-8943 in lllinois/1 (800) 621-5714 out-of-state or (312) 346-6450

Griffin, Kubik, Stephens
(SiThompson, Inc.
Investment Bankers
One South Wacker/Chicago, Illinois 60606

Northwestern Banker, April, 1987
Federal Reserve Bank of St. Louis



operations more profitable
and problem free
than North Central Life.
"America’s Number One Credit Insurance Service Organization”

North Central Life Insurance Company

In Minnesota call 800-792-1030.
All other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987

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** !;


State-of-the-art computerized design
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Bank Building
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Call 1-800-325-9573
Federal Reserve Bank of St. Louis


10 questions to ask
when selecting a
bank design firm
A proposed design rendering generated by BBC’s DART-I system.

Written especially for
T he N o rth w estern B an k er

Senior Vice President
Chief Operating Officer
Bank Building Corporation
St. Louis, Mo.






T HE DECISION to build is only the beginning of a
I process many administrators find bewildering and
frustrating. The amount of time, money and effort in­
volved in even a modest building project can expose a
bank to a substantial risk — risk that must be managed carefully in an era of growing competition and
compressed margins.
One of the most important things a bank can do to
reduce the risk involved in a building project is to
select its design firm carefully. By asking the right
questions, bankers can determine which firms will pro­
vide the right building for the right price, and which
firms simply aren’t up to the task.
Bankers must realize there have been some dramatic
recent innovations in the design industry that can
work to their advantage. New technologies and new
ways of doing business are helping lower the risk in­
volved in new construction projects. Banks should
seek out firms that can offer the best of what is new.
We suggest that bank presidents and directors ask
these 10 crucial questions when qualifying a potential
design firm:
Question 1:
Does the firm have experience in the design and con­
struction of banks? Financial facilities are not like
■ ABOUT THE AUTHOR—Mr. Dunlap has served Bank Building
Corporation in his current position since June of 1986. He first
joined the Bank Building’s Atlanta Division in 1969, and had been
president of the firm ’s Financial Facilities Group prior to his most
recent appointment. Before joining BBC, Mr. Dunlap was presi­
dent of Atrium, Inc., a Jacksonville, Florida-based commercial in­
terior design firm.
Federal Reserve Bank of St. Louis

other buildings, and banks are not like other financial
facilities. A good design for a bank must be more than
aesthetically pleasing; it must reflect an understand­
ing of the special operational needs of banks. Special­
ists in the field will have experience in answering such
questions as:
• What materials should be selected to withstand
the wear and tear that normally occurs at teller
• What kind of turning radius is required for driveup areas?
• Where should offices be located in relationship to
the lobby and to each other?
Decisions like these can best be made by a firm with
a sound background in the design and construction of
banks. An error in any of these seemingly minor de­
tails can lead to costly corrective work in the future.
Each bank has a special target clientele and should
address the needs and personality of its community. A
firm with experience in the banking field will be able to
provide valuable insight into site selection and facility
design that an inexperienced firm just doesn’t have.
Question 2:
Does the firm have a good reputation with its pre­
vious clients? Talk to the officers of banks for whom
the design/build firm has constructed facilities in the
past. The firm itself should be happy to provide you
with names of people to contact. Ask these questions:
• How smoothly did the project go?
• Was the facility constructed on time, and within
• Is the new facility functional?
• Has the firm been willing to stand by its work?
• What problems did you have, and did the firm
solve them to your satisfaction?
Question 3:
Will the firm take responsibility for both the design
and the building of the project? Single-source responsi­
bility provides a number of important advantages for
the bank.
• It ensures that the design is consistent with en­
gineering and construction standards and estabNorthwestern Banker, April, 1987

lishes a clear line of responsibility should problems
• It leads to more reliable budgeting, because the
firm proposing the design is fully aware of the
costs involved in constructing it.
• It liberates the bank from the burden of coordinat­
ing construction and allows it to concentrate on
the business of running a financial institution. Too
often the bank finds itself refereeing a host of con­
tractors, subcontractors, manufacturers, distribu­
tors and dealers. These diversions are both annoy­
ing and costly. Bank management should make
the major decisions; the design/build firm should
handle the details.
The hot topic in architectural circles today is how
architects and construction managers should work
more closely together. In design/build firms, this is
already established practice.
Question 4:
Is the firm willing to perform the initial design work
on a speculative basis? A competent design firm
should have sufficient confidence in its work to pro­
duce a design that satisfies the bank management
before it commits funds. Ideally, no charge should be
made until the board approves the design of the facili­
ty, material selections and guaranteed cost. A design/
build firm must have an experienced staff and ad­
vanced technical capabilities to undertake this much
work on speculation, but the ability to do so further
removes the element of risk from the building pro­
Question 5:
How receptive will the firm be to your design input?
While it is important to select a firm with knowledge
and experience in the design and construction of
banks, in the end it is the bank management itself that
knows best how its business runs and what its opera­
tional needs and aesthetic preferences are. Will the de­
signers of your new facility respect your wishes? Will
they explore your design ideas? Too frequently archi­
tects present their designs to the client with a “take-itor-leave-it” attitude. That kind of attitude is more
than simply frustrating. It frequently prevents the
bank from getting the kind of building it really needs.
Question 6:
Will the firm use computer technology? For bank

DOES the firm have experience in the design and construction of
banks? Specialists in the field will have experience in answering
questions unique to bank architecture. Above: Colorado Bank &
Trust Co, La Junta, Colo.

facilities, the application of computers to design, cost
estimating, project management and a host of other
tasks is no longer a luxury. Only computer technology
can give the bank staff and the designer the flexibility
to explore together many design options without
weeks of costly delay. Moreover, computer graphics
permit the clear visualization of various designs. A set
of views can be run in sequence, to give the impression
of “walking through” the proposed building. Capabili­
ties such as these are necessary to give board members
a clear idea of what various options will look like —
before they commit to a final design.
Question 7:
Will the firm confirm a guaranteed price for the pro­
ject early in the design process? The firm should be
willing to state with confidence how much the project •
will cost well before approval is given. You are entitled
to an early understanding of costs, design alternatives
and the economics of various space and quality op­
tions. The firm should be able to tell you exactly how
your money will be spent.
To offer a guaranteed price, a firm needs advanced
computer capabilities and a constantly updated data
base of material prices. The figure should also be based
on “Third Party Cost Modeling” — a method of deter­
mining competitive costs for similar projects con- •
structed by other firms in the same area. Finally,
guaranteed pricing is almost impossible if the firm
does not perform both design and build functions.
Question 8:
Will the same consultant stay with your project
from beginning to end? Frequently, the individual who
works with the bank at the outset of the building pro­
gram is taken off the team as soon as the contract is
signed, to be replaced with architects, designers and #
construction managers who are unfamiliar with the in­
stitution’s operational needs and aesthetic desires.
This, obviously, introduces an element of confusion, in­
efficiency and uncertainty into the design/build pro­
cess. To avoid disappointment, the bank should select •
a firm that will assign a single person to coordinate the
program from its initiation to its completion.

DOES the firm offer an extended warranty? Everything in the
building—including HVAC, carpeting, roof and hardware—should
be covered by the design/build firm’s warranty. Above: Lobby,
Home State Bank, Loveland, Colo.

Banker, April, 1987
Federal Reserve Bank of St. Louis

(Turn to page 20, please)



bank design
knows no state

Written especially for
T he N o rth w estern B ank er

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


AVING built and designed financial facilities in
Florida, Iowa, Illinois, Minnesota, and Wisconsin,
we believe that quality functional bank facility design

should not be limited by state borders.
Functional bank design is a prerequisite that knows
no state boundaries. The citrus grower in Florida and
farmer in Iowa go to their bank for the same reason
# and both will feel more comfortable discussing their fi­
nancial situation in an environment that is designed
specifically to meet their needs. An elderly customer
using the drive-up or parking lot should be able to do
easily and safely without worrying about the snow on
# the ground or the bright Florida sun. The ATM user
should be given the same consideration for his or her
safety whether ATM is outside the building under a
bright, fabric canopy or inside a heated vestibule.
Serving Customer Needs Is First
The snowbirds in Florida, the teenager in Wisconsin,
the factory worker in Illinois and the housewife in
Iowa all share the same desires to conduct their finan­
cial activities in a pleasant and attractive atmosphere.
Banks, savings and loans and credit unions can and
9 should address these customers’ needs to compete in
the marketplace. If proper space planning and func­
tional design is utilized, a retired couple investing their
pension can conduct their business while the 12-year
^ old is using her babysitting money to open her first
savings account. That’s what good functional bank de­
sign is all about.
Serving Operational Needs Is Next
We believe that financial facilities in Florida and
0 Iowa must be designed from the inside out. The build­
ing can be designed easily to look good but first it must
Federal Reserve Bank of St. Louis

“work good.” How does a facility “work good?” It
does so by proper space planning and design to get the
best utilization of its employees.
For example, the typical branch bank should be de­
signed so inside tellers can double at the drive-up, so
that customer service people can double as reception­
ists or vault custodians if necessary, and the branch
manager can work from the officer platform or a pri­
vate office with a good view of the overall operation.
Flexibility in design will give each facility that built-in
ability to adapt to management’s own method of pro­
viding service.
Quality Should Be Constant
Geographic differences do dictate changes in build­
ing construction, but we feel the quality of workman­
ship should not change. Quality construction work­
manship and quality materials used throughout a
facility might not be the cheapest way to open the door
but the banker will quickly realize it will pay for itself
in very short order. Seven years ago, Kirk Gross Com­
pany designed and built a bank in Lake City, Fla., us­
ing quality materials. Today, seven years later, that
facility could pass for a building less than six months
old while a competitor in the area has gone through its
second remodeling in the same time frame. It should be
obvious by this true example, that quality does pay for
Isn’t a Bank a Bank Regardless?
Yes and No. Local pride will say “we do things dif­
ferent than they do it down south” or vice versa but do
we really? Think about it. Isn’t your primary goal to
increase your customer base and show a profit? That’s
a universal statement of fact and there is one sure way
to reach that goal when considering your design team
to remodel or build your facility.
Select a design team that has the in-house expertise,
the track record and the commitment to a quality pro­
duct as your prime mover to accomplish your goals. An
interstate bank building and design firm that can illus­
trate its commitment to your needs with its own full
time architects and construction people, while using
local expertise familiar with the local conditions, and a
firm that has made the financial commitment to proNorthwestern Banker, April, 1987


vide personal statewide assistance, is the best answer.
Why not gain from their interstate experience?
Pick Building Team Carefully
But pick your turn-key team carefully. Just as finan­
cial institutions differ from area to area, so do the vari­
ous design/build firms. Big doesn’t necessarily mean
the best. Check out their past record with their old
clients, not just their recent clients. How has the pro­
ject stood the test of time? Find out how long their
staff has worked for them. Can they indeed do what
they say they will do? Are they small enough to give
your project the personal attention you will rightfully
expect? Will they design your facility to meet your
(Continued from page 18)

Question 9:
Does the firm use a rigorous cost-control and project
management system? The firm you select should have
a proven system for determining the best prices for
materials and services and be able to spot overruns
early enough to respond to them effectively. The firm
should make use of extensive computer data bases to
determine bidding and performance experience of sup­
pliers throughout the country. If, as a result of compe­
titive bidding, the cost of the facility is lower than anti­
cipated, those savings should be passed on to you.
Proper sequencing of the construction project is also
important. Especially in the case of remodeling and ex­
pansion projects, banks often need to stay in operation
during construction. That requires a careful project
management program so parking and pedestrian areas
are not blocked with excess materials and equipment,
and facilities will be brought on-line in the most effi­
cient manner.
(Continued from page 4)
the Ohio bar in November, 1978, and
the Michigan bar in 1979, Dr. Aus­
tin earned the professional designa­
tion of Chartered Financial Analyst
(C.F.A.) in 1969.
Since 1967, Doug Austin has been
president and CEO of Douglas
Austin & Associates, Inc., Toledo,
Ohio. This consulting corporation
specializes in assisting financial in­
stitutions of all types and sizes with
unusual problems and opportuni­
ties, ranging from mergers and ac­
quisitions, bank holding company
formation, stock valuation, capital
programs, A/L management, strate­
gic planning to problem bank con­
sulting. His personal fortes are eva­
luations, anti-trust law and expert
testimony, with special emphasis on
tender offers, on which he is a lead­
ing authority. He is widely known as
a speaker on financial institution
Banker, April, 1987
Federal Reserve Bank of St. Louis

needs, or will they attempt to sell you someone else’s q
design? Do they use their own construction and archi­
tectural staff or simply subcontract everything, result­
ing in poor quality control? Do they live up to the
budget and, above all, do they pay for their own mis­
While working for bankers in Iowa or in Florida for
many years, we knew that each client had his own par­
ticular needs and goals, thus each project (over 285 at
this writing) was designed specifically to meet and
solve each client’s goals. With over 1,000,000 square £
feet behind us, it proves that boundaries are only a
state of mind.
Question 10:
Does the firm offer an extended warranty on its
buildings? A warranty is one of the truest indications
of the confidence a design/build firm places in its own
work. Everything in the building — especially the heating-ventilating-air-conditioning system, the roof, the
carpeting and the hardware — should be covered by
the warranty, on a deductible basis. Most firms offer a
standard one-year warranty, but the firm should ideal­
ly also offer an extended three-year warranty, bringing
the total coverage to four years. Such a warranty not
only assures you the firm will stand by its work — it
provides valuable insurance for the bank, and further
removes risk from the building program.
It is also important to select a firm that will actually
return to fix problems with the building if they arise. A
good design/build firm will establish an on-going relationship with the bank that will continue long after the
grand opening of a new facility.
By selecting a firm that offers the best of new tech­
nologies and design/build practices, a bank’s president
can be more certain that the new facility is cost effective and efficient. The right design/build firm will pro­
vide better value with less risk. That all adds up to
peace of mind for the bank.

structure, management and opera­
tion, and also publishes articles on a
continuing basis in financial/legal
Dr. Austin was a teaching associ­
ate in the Department of Economics
at Indiana University while earning
his Ph.D. there. He was on the facul­
ty of the University of Michigan’s
Graduate School of Business Ad­
ministration from 1963-65; was re­
search economist at the Federal Re­
serve Bank of Cleveland from 196567, and associate professor of fi­
nance in the School of Business at
Western Michigan University, Kala­
mazoo, from 1967-69. He then joined
the Department of Finance at the
University of Toledo in 1969 as asso­
ciate professor and chairman in 1969
and continues at that university to­
day as chairman and professor.
Dr. Austin’s down-to-earth speak­
ing ability, touched with the right
dose of humor and side commentary,
has mixed with his in-depth knowl-






edge of the financial field to earn w
him top ratings at the more than 200
presentations he has made at both
national and state levels. He has
conducted seminars and served as —
chairman or speaker for financial w
discussions for Bank Administra­
tion Institute on numerous occa­
sions. He has presented similar
seminars and speeches before state ^
banker associations in Iowa, Neb­
raska, South Dakota, Wyoming, Illi­
nois, Ohio, Indiana, Michigan, Ken­
tucky and the Independent Bankers
of New York.
You can see from this background
why we are pleased to provide you
with these special articles from one
of America’s noted consultants on
bank management. We hope you en- q
joy this extended series of articles as
much as we do in bringing them to
Ben Haller, Jr.

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IAC offers you risk management services that
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A Full Service Company for The Full Service Bank

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Federal Reserve Bank of St. Louis


Community Bankers
Council Leaders
Discuss ABA’s Role


PARTICIPATING in this exclusive interview were, from left: James
V. Kuchar, pres., Western State Bank, Devils Lake, N.D.; Richard
J. Schurtz, pres., Bank of New Richmond, Wis.; C.G. Kelly Hoithus, pres., First National Bank, York, Nebr.; LaRae Orullian,
pres., The Women’s Bank, Denver, Colo., and Franklin H. Moore,
Jr., pres., Commercial and Savings Bank, St. Clair, Mich.

OMMUNITY BANKERS are re-confirming more
strongly than ever before that they have a marked
influence on the reputation, the direction and the na­
tional clout of the American Bankers Association. And
they are finding continually, as they have for some
years, an ABA increasingly responsive to their parti­
cular needs to help them maintain a position of leader­
ship in their communities.
They demonstrated this belief and commitment
again early last month when 800 bankers, an appre­
ciable increase over the 1986 conference, gathered in
Phoenix for the ABA’s 1987 National Conference for
Community Bankers, presented by the ABA Commu­
nity Bankers Council. During the two and one-half day
conference they found the theme, “The Working
Forum and Peer Exchange for Today’s CEO,’’ became
reality with a program that started at 7:00 a.m. and
8:00 a.m. each morning and continued until late after­
noon the first two days and until noon the final day.
In addition to hearing 15 general session and lun­
cheon speakers, registrants could choose from among
36 smaller sessions presented as product demonstra­
tions, concurrent workshops and peer group discus­
sions. A special presentation titled “Banking on the
Future’’ was presented by ABA President Mark W.
Olson and Executive Vice President Donald G. Ogilvie. Mr. Olson is president of Security State Bank in
Fergus Falls, Minn.
The strong program afforded each registrants an op­
portunity to improve his or her knowledge in many key
areas of bank management and operations today.
Because of the broad range of material offered for two
and one-half days, this conference report will not cen­
ter on the details of those particular presentations, but
will focus on the thoughts expressed by five of these
Community Bankers Council leaders in an exclusive in­
terview conducted with them by T h e N o r t h w e s t e r n
B a n k e r after one of the afternoon sessions was com­
Taking part in this interview were:
Banker, April, 1987
Federal Reserve Bank of St. Louis

• Franklin H. Moore, Jr., chairman of the Communi­
ty Bankers Council; chairman and president, Commer­
cial and Savings Bank, St. Clair, Mich.
• C.G. Kelly Holthus, president, Nebraska Bankers
Association; president, The First National Bank of
York, York, Nebr.
• James V. Kuchar, president, Western State Bank,
Devils Lake, N.D.
• B. LaRae Orullian, president and CEO, The
Women’s Bank, N.A., Denver, Colo.
• Richard J. Schurtz, president, Bank of New Rich­
mond, New Richmond, Wis.
Mr. Holthus, Mr. Kuchar and Ms. Orullian are also
members of the ABA Community Bankers Council.
Mr. Schurtz is a former member of the Council.
The discussion centered on ABA’s educational offer­
ings to community bankers, the amount of money £
spent by banks on staff education, the Council’s most
important programs, an assessment of the Leadership
Conference, and what community banks are doing in
strategic planning. Because of the length of the inter­
view, the first part follows and the second part will ap- %
pear in the next issue.
What do you think the ABA Community Bank■ ers Council can offer in a practical way to community banks to assist them with in-house or outside w
Mr. Moore: We have used the Bank Video Training
program from ABA for our internal training and th a t’s
been quite effective for us. As far as sending people £
away to schools, last year I sent my second officer
down to Dallas for the Executive Development Pro­
gram. That was quite effective; we found it to be very
good. Those are two things we’ve used in this past
Mr. Schurtz: I ’d second that. At our bank, we had not
even been aware of the Video Training program until I
was appointed to the advisory board. It struck me as a
rather well-kept secret, but since that time we’ve used
three or four of them and they’ve been excellent.
Mr. Kuchar: We’ve used training films and video cas-










settes for about 10 years in our bank. The ABA infor­
mation seems to be quite current. I t ’s a quick update
for our employees, and certainly the officers. There’s a
lot of information available for the officers in their
various fields, as well as CEOs, management and,
sometimes, directors. The new D&O coverage (now of­
fered through an ABA captive company), and directors
responsibilities are covered briefly in some of that in­
formation available on tapes.
We look to our officers to attend at least one week of
outside training per year and generally this training is
in the field they’re working in. In other words, cosumer
loans, ag lending, real estate, or whatever, and they
pick their school, so to speak, and the board by review
gives the final approval. So far as the staff—tellers,
bookkeepers, computer operators and others—we like
to send them off whenever possible to our state asso­
ciation training, which is actually supported by the
ABA, and puts on some good one to one and one-half
day workshops for those people. Teller training is a
good example. Stress management is something that
has come to our state through the NDBA association.
We use that and it’s really kind of nice to send our peo­
ple there because they not only have a chance to get
out of our shop, but they get a chance to visit with peopie who are in the same profession they are. It makes
them feel good to find others who do the same things
as they do. I think that to them it’s really important.
Training is extra important, as one of our speakers
said today, for we think that both outside and inside
training are important to us.
Ms. Orullian: I would just add one other point. This
whole Community Bankers Division brings into focus
that the ABA is not just for the large banks. Through
programs such as this, the various conferences that are
sponsored by ABA which allow us to come and gather
resource information, we can pull speakers into our
own areas because we’ve heard them at some of these
conferences and found them very helpful, so then at
the local level they are also most helpful.
H ow much money do you spend each year on in■ house and outside training, including travel,
registrations, fees, teachers’ time, books, etc?
Mr. Holthus: I happen to remember what our outside
training is for this year and I think it’s about average
of what we’ve done the past three years. Our budget is
$10,000. That includes some two-week schools. Inhouse costs are rather minor. Tuition for most of the
schools runs about $1,500. Transportation is not a big
item because we have them take a bank car; there’s a
very little flying involved.
We’ll send our people to the ABA Ag Lending
School at Ames, la., down to Oklahoma City and then
maybe to the Graduate School of Banking at Madison
or the Banking School out at Boulder, Colo. We pro­
bably have three or four people go, so it’s about a
$10,000 item. In-house training is just a matter of
Mr. Kuchar: It really makes a difference of where your
officers are in their own development and what kind of
training you need for each of them. I have one at the
University of Colorado school at Boulder and, of
course, th a t’s $2,500 right there. So, it depends on
where your staffing is in their work experience and





Federal Reserve Bank of St. Louis

their training needs. I think we’re spending somewhere
between $8,000 to $ 10,000 on the outside training and
possibly $2,000 to $3,000 on their inside training.
Mr. Moore: We’re a little larger bank. Of course, I have
a trust department which means those people have to
go to Chicago or New York to get current on tax laws
and that sort of thing, so I know that we’re spending
$40,000 on training. This includes some college courses
that our people are encouraged to take and for which
they’re reimbursed. I would say that internally we’re
spending $10,000. This is for in-house materials, train­
ing tapes, compensation for extra supervisory time.
Also, we’ve just brought in this past six months a lady
from our local community college to do some models
for management training, which is a two and one-half
day course. Eventually, we’ll have all of our officers go
through that, and that runs $2,500 a pop.

“Any bankers who are critical of ser­
vices provided really haven’t looked
into what’s available, or they haven’t
come to a meeting like this.’’
—Kelly Holthus, Nebraska

Mr. Schurtz: Ours does not run as high as these others.
We’ve recently changed our emphasis. We’ve never
spent much on internal training. We’ve used work­
shops and seminars and so forth quite a bit in the past.
Up until about a year ago we didn't do much in-house.
We’ve changed that emphasis and although I don’t
know exactly what we’ll spend this year, I would guess
maybe $2,000 or $3,000.
Ms. Orullian: Our bank is eight and one-half years old.
We looked for experienced people and “stole” as many
good ones as we could and then did a lot of in-house
training. In the last four or five years we’ve spent more
time sending them to local conferences or workshops.
We certainly encouraged all employees to go through
the AIB program. We also spend a lot of resources on
educational programs for customers. That’s been a real
focus which has created a whole new atmosphere in our
community for training for customers, so that now
everyone’s doing it. We do our seminars on a quarterly
basis. They are conducted by our own people and then
we bring in professionals like CPAs or attorneys.
What are the most important programs the
■ Community Bankers Division of ABA is provid­
ing for bankers?
Mr. Holthus: I think for anyone who is critical of the
ABA for not supplying what they need I can only
repeat the old saying, “God helps those who help them­
selves.” I t ’s there! We went through the ABA library
the last time we were in Washington and saw all the re­
search th a t’s available and all the information th a t’s
available on all the seminars and all the meetings. Any
bankers who are critical of services provided really
haven’t looked into w hat’s available, or they haven’t
come to a meeting like this.


(Turn to page 43, please)
Northwestern Banker, April, 1987


Promoted to assistant vice presi- q
dent and manager of the Alpine Vil­
lage facility was Sherry L. Schwebke. She has been with the bank 15
years, most recently as assistant

Tower to Address IBA
Senator John Tower, chairman of
the Tower Commission, which re­
cently released its 304-page report #
on the Iran/Contra affair, will speak
at the Illinois Bankers Association
Annual Convention in Peoria in
Senator Tower will address the •
HE IBA’s regional nominating LA RG E B A N K C A T E G O R Y
convention at 9:00 a.m. on Thurs­
committees and the nominating
Robert P. O’Meara, First Mid­ day, June 11. He will also be the
committee for the Large Bank Cate­ west Bancorp, Inc., Naperville.
guest of honor at a special ILLI­
gory have announced the nominees
John B. Tingleff, Continental NOIS BANKPAC reception that
for positions on the Association’s Bank, Chicago.
Board of Directors. The bankers
Charles H. Cory, II, The Northern
who have been nominated for two- Trust Company, Chicago.
Named in Galesburg
year terms beginning on July 1,
Election to the Board will take
First Galesburg National Bank
1987 are as follows:
place by mail ballot, with the results and Trust Company, Galesburg, has
to be announced at the annual meet­ announced that Charles A. Cooley, ®
in June.
□ II has been named assistant vice
Large Bank Category—William C.
Mitchell, Lake Shore National
president and farm manager. He re­
IBA Trust Conference
Bank, Chicago.
places R.G. Olmstead, who retired
Small Bank Category—Denis Da­ To Be Held May 7-8
December 31, 1986. Mr. Cooley’s
ly, Suburban Trust & Savings Bank,
The Illinois Bankers Association primary responsibility will be to ®
Oak Park.
will hold its Trust & Investment assume m anagement of farms
Management Conference on May 7-8 through First National’s trust de­
partment. He brings with him near­
Large Bank Category—Loren D. at the Hilton Inn in Collinsville.
Scheduled speakers include Frank ly eight years experience in all
Storey, Zion State Bank & Trust
Spinner, president of LeMay Bank phases of farm operation and man- •
Trust in St. Louis; Jim Mitchell, agement. Most recently, Mr. Cooley
Small Bank Category—Fred L.
Shaw, Union National Bank & Trust senior vice president of operations was senior farm manager of First
at Northern Trust; Ted Ridlehuber, National Bank of Springfield.
Company, Elgin.
of Cannon Financial Insti­
Undesignated—Ted C. Axton,
Williams, president of
First National Bank of Antioch.
Management, Phila­
Sabin, tax lawyer,
Large Bank Category—Richard
M. Bishop, First National Bank of Chicago; Larry Doyle, national sales
manager of Feldman Securities,
Small Bank Category—Morris E. Inc., and former host of the TV show
Peine, First Farmers State Bank of “Jeopardy!” Art Fleming.
For information or to register,
Kathleen Kane at the IBA.
Undesignated—Ronald L. Wohlwend, Grundy County National Promoted in Rockford
Bank, Morris.
At AMCORE Bank Colonial,
Rockford, three officers have been
Large Bank Category—Daniel E. promoted.
Marvin, Jr., First National Bank,
Mary L. Sujak has been elected
vice president and controller. She
Small Bank Category—Jack Tate, was previously assistant treasurer
First Trust Bank of Shelbyville.
of AMCORE Financial, Inc., the
bank’s holding company parent. Ms.
Large Bank Category—Michael Sujak joined AMCORE Financial,
Inc. in May, 1986.
Travelstead, DuQuoin State Bank.
Marcel Levesque has been named
Janet L. Goldammer has been
Small Bank C ategory—Don
Schaack, First National Bank, Mas- promoted from assistant vice presi­ chairman and chief executive officer
dent and operations officer to cash­ of Bank of Westmont, Chicago. He
Undesignated—Dari L. Bollman, ier. She has been with the bank 20 formerly served as the bank’s presi- %
dent. Albert P. Harker, Jr. has been
First National Bank of Steeleville.

Nominees for IBA Board Announced


Banker, April, 1987
Federal Reserve Bank of St. Louis

Fahlgren to administrative assis­
Mr. Ryle joined the bank in 1983,
and most recently served as a busi­
ness development officer. Mr. Zemont also previously held that posi­
tion. He joined Franklin Park Bank
in Jan., 1986. Ms. Grey joined that
bank in 1979 and previously served
as assistant cashier.
Ms. Alioto previously served as a
commercial loan administrative offi­
cer, and Ms. Fahlgren was an assis­
tant cashier.
Illinois News

named president and chief operating
officer of the Bank of Westmont. He
was promoted from executive vice
* * *

business development officer. Ernes­
tine J. Porteli, previously a real
estate loan manager, was promoted
to mortgage loan officer. Barbara
Sraga, formerly a customer service
representative, is now a personal
banking officer. Kim M. Kubowicz,
formerly a personal banker, was pro­
moted to personal bank officer.

David G. Henry has been named
president of First Colonial Mort­
gage C orpora­
tion, a subsidi­
* * *
ary of First Colo n ia l
B ankKaren W. Brennan has been pro­
shares Corpora­
moted to vice president at North­
tion. Mr. Henry
brook Bank, it
previously served
has been an ­
as vice president
nounced by bank
of se c o n d a ry
president Rich­
m arketing for
ard K. Pearson.
M agna M o rt­
M s. B re n n an
gage Company,
St. Louis, Mo. Prior to that he p r e v i o u s l y
worked in the loan production and served as man­
administration department for Milli- ager of commer­
kin Mortgage Company, Decatur, cial m arketing
for W.N. Lane
In te rfin an c ia l.
* * *
She is a member of the Bank Mar­
Lynn S. Feiger has been named keting Association. Northbrook
president and David S. Tauman pro­ Bank is a member of the Lane Bank
moted to vice chairman of Affiliated Group.
Asset Based Lending Services, Inc.
* * *
(AABL), Morton Grove, a subsidi­
ary of Affiliated Banc Group, Inc.
Ms. Feiger was previously vice
Betty Holcomb has been pro­
president of AABL. She also serves moted to assistant vice president of
as vice president of several Affili­ Affiliated Bank/Morton Grove. She
ated Banks, including North Shore, has been with the bank since 1978,
Morton Grove, Franklin Park, and and will continue to serve as facility
Western National in Cicero.
Mr. Tauman was instrumental in
* * *
the formation of AABL in 1983, and
served as president.
At Northwest Commerce Bank,
* * *
Rosemont, Diane M. Vandenberg
has been promoted to assistant vice
Gerrie M. Smith has been pro­ president/cashier, and Julie A.
moted to vice president, cashier of Nolan has been advanced to opera­
Affiliated Bank/North Shore Na­ tions manager. Ms. Vandenberg pre­
tional. She previously served as vice viously served as assistant cashier
president of the bank. Denise Lara for the bank, while Ms. Nolan was
has been promoted to assistant its bookkeeping manager.
trust officer and Paul G. Ponticell
Also at Northwest Commerce
has been advanced to assistant vice Bank, Brian C. Baker, principal of
president. Ms. Lara joined the bank The Vestor Companies, and Jeffrey
in 1982 and previously served as W. Krol, president of Jeffrey Krol
trust department supervisor. Mr. and Associates, have been ap­
Ponticell was a credit officer for the pointed as directors. Mr. Baker is a
bank previously.
member of the Illinois Bar and Mr.
* * *
Kohl is a certified public accountant.
Five officers have been promoted
* * *
at Affiliated Bank Western Na­
At Franklin Park Bank, Michael
Walter W. Niezgoda was ad­ K. Ryle has been promoted to assis­
vanced from assistant vice president tant vice president, Ronald G. Zeto vice president of personnel.
mont to assistant vice president,
Paul K. Hansen was advanced Patricia A. Grey to assistant vice
from officer of business develop­ president, Connie M. Alioto to com­
ment to assistant vice president and mercial loan officer, and Donna G.
Federal Reserve Bank of St. Louis

* * *

James Otis, Jr. has been named a
member of the board of directions of
Lane Financial, Inc. He is founder
and chairman of Otis and Associ­
ates, Inc., an architectural firm, and
founder and president of Otis Devel­
opment Company, a real estate ac­
quisition, development and consult­
ing firm. He is also on the boards of
Northbrook Bank and Pioneer
* * *

At Affiliated Bank/DuPage, Shir­
ley Ann Winters has been promoted
to operating officer, Rhonda L.
Brynjolfsson to commercial loans
administrative officer, and Nancy A.
Bennett to commercial loans admin­
istrative officer.
Ms. Winters joined the bank in
1978 and most recently served as
secretary to the vice president.
Ms. Brynjolfsson has been with
the bank almost ten years, most re­
cently as officer of commercial loans.
Ms. Bennett joined the bank in
1979 and previously served as
executive secretary to the president.
* * *

The headquarters of MONEY
STATION, the newly consolidated
automated teller machine network
NETWORK, will move to a new
location, according to Stephen S.
Cole, president. Its new address will
be 188 West Randolph, Suite 800,
MONEY STATION has unveiled
its corporate identification program.
A major advertising and public rela­
tions campaign will be launched in
conjunction with the conversion roll­
out this summer. The campaign con­
veys to customers that they may use
either their former ATM cards or
new MONEY STATION cards, and
have access to nearly 1000 machines
in the Chicago area.
Northwestern Banker, April, 1987


MBA Announces
Convention Program

The Minnesota Bankers Associa­
tion has announced its program for
the 97th Annual MBA Convention, q
“In Transition,’’ to be held June 8-9
at the Marriott City Center in Min­
Featured speakers scheduled in­
clude: Mark W. Olson, president, £
American Bankers Association and
president, Security State Bank, Fer­
gus Falls; Tom Brokaw, anchor,
NBC News; Hugh Sidey, Washing­
ton editor, Time magazine; Harvey £
Golub, CEO, Investors Diversified
Services; John J. Detterrick, presi­
M anaging People in a dent, Sears Consumer Finance Com­
Changed E n v iro n m en t— pany.
Barbara Hanley, Hanley &
The theme “ In Transition’’ was %
Assoc., Minneapolis.
chosen to reflect not only the
changes in the world of banking but
also a new and improved convention
Luncheon and program.
Economic Outlook—William format which has been condensed to
C. Dudley, sr. economist, enable more banker involvement. #
Goldman Sachs & Co., N.Y. The convention will feature special
sessions on economic development
Call to Order.
The Impact of the Tax issues in Minnesota as well as small
Reform Act of 1986 on group sessions on productivity, mar­
Retirement Plans—Daniel keting, negotiating and loan review. #
MBA President Roy Terwilliger,
A. Notto, gen. counsel, Uni­
versal Pensions, Brainerd, president of Suburban National
Bank, Eden Prairie, will preside dur­
Stock Market Outlook/Stra- ing the two-day convention.
A complete program of the MBA #
tegy—William Bahl, s.v.p.,
will be featured in the
Northern Trust Co., Chi­
May issue of T h e N o r t h w e s t e r n
How to Handle Stress— B a n k e r .
Mary Jo Paloranta, v.p.,
Promoted in Brainerd
Staff Plus, Minneapolis.
and Baxter
Tuesday, April 28
First American Bank of Brainerd/
Baxter recently announced three
Buffet breakfast.
staff changes in the bank’s lending ^
Call to order.
Are You G etting Your
Diane Runberg, vice president,
Rightful Share of Employee will become a full-time commercial
Benefit Business—Daniel loan officer at the downtown Brai­
nerd office of First American. She £
Tax Reform and the Trust was previously loan officer and man­
Industry—Jack Carlson, at- ager at the Baxter office of the bank.
ty., Thomsen, Nybeck law
Reed Campbell will replace Ms.
firm, Minneapolis.
Runberg as manager of the Baxter
Conference evaluation and office. He will remain manager of %
the installment loan department and
Hotel check-out.
will have the added responsibility of
developing special loan programs in
Luncheon and program.
the Baxter area.
Banking and a Changing Re­
Beverly Marx, assistant vice #
gulatory Environment—Dr. president, will begin duties in the in­
Paul Nadler, prof, and ec­ stallment loan department in addi­
onomist, Rutgers U., New tion to her responsibilities as human
Brunswick, N.J.
resources officer. Joyce Czech, ex­
Concluding comments and ecutive secretary, will assist Ms. #
□ Marx in human resources.

Minnesota Hosts
Tri-State Trust Conference
HE Tri-State Trust Conference,
sponsored each year by the
bankers’ associations of Minnesota,
North Dakota and South Dakota,
will be held this year on April 26-28.
Minnesota will host the conference
at the Ramada Inn in Moorhead.
The conference will begin on Sun­
day evening with a special Welcome
Reception. On Monday, sessions will
focus on “Managing for Perfor­
mance,’’ the “Shareholders Com­
munications Act,’’ human resource
management, economics, retirement
plans, stock market outlook and
stress management. The day con­
cludes with a reception.
On Tuesday, the program will fea­
ture sessions on employee benefit
business, tax reform and economic
policy, and will conclude with a
special luncheon program on bank­
ing and the changing regulatory en­
The complete program follows:
Sunday, April 26
4:00 Registration.
6:00 Welcome Reception.
Monday, April 27
7:45 Buffet breakfast.
9:00 Call to order and opening
comments—Mark Stenson,
chmn., MBA Trust Comm,
and pres., First American
Trust Co. of Minn., Mar­
Welcome to Moorhead—
Mayor Morris Landing.
M an a g in g for P e rf o r­
mance— Robert Boyles,
s.v.p., Security Pacific Na­
tional Bank, Los Angeles.
Shareholders Communica­
tions A ct—Jean Chaput,
s.v.p., National City Bank,
Northwestern Banker, April, 1987
Federal Reserve Bank of St. Louis








Marquette Bank Minneapolis has
announced a major reorganization of
its management
structure. Under
the new struc­
ture, the follow­
ing senior vice
presidents will
be responsible
for the three ma­
jo r o p e ra tin g
a re a s of th e
Philip J. Gallivan, Jr. will manage all traditional
banking services for the downtown
offices of Marquette Bank Minnea­
polis, including all lending and
credit functions, executive banking,
marketing and consumer depository
Patrick L. Stotesbery will manage
all less traditional fee income
oriented groups and companies, in­
cluding Marquette Capital Manage­
ment Corporation, Marquette Lease
Services, investment sales and train­
ing as well as the trust and corres­
pondent banking groups.



cently been associated with Bank of
New England Corporation, Boston,
where he served as vice president,
corporate banking. Prior to that
time, he worked for Braxton Asso­
ciates, a strategy consulting firm.
* * *

analyst in 1975 and has held several
positions since, most recently assis­
tant vice president of systems and
Mary E. Pachl has been promoted
to vice president of operations, hav­
ing served previously as assistant
vice president in that department.
Norwest Corporation has an­ She joined the bank in 1980 as an
nounced that William J. Brechtel operations technician.
Dixie L. Biller has been promoted
has been namedfrom account administrator per­
vice president
sonal trust to trust officer. Elaine R.
and head of sec­
Grittner has been advanced from se­
ondary market­
compensation/benefits analyst
ing in the bank­
to human resource officer. Carolyn
ing group’s new
E. Johnson has been promoted from
mortgage bank­
personal banker to personal banking
ing services divi­
American National Bank has also
Mr. Brechtel
elected two directors. They are An­
was senior vice
drew P. Czajkowski, president and
p re sid en t and
of Blue Cross and Blue Shield
special assistant to the president of
Norwest Mortgage, Inc., a unit of of Minnesota, and Michael E. Shan­
Norwest’s financial service group. non, executive vice president and
He joined Norwest in 1975 in the chief financial and administrative
corporate controller’s office and was officer of Ecolab, Inc., St. Paul.
* * *
vice president/controller of the spe­
cialized financial group when he was
Eastern Heights State Bank of
named a special assistant to the Nor­
St. Paul has elected Michael J. Bar­
west Mortgage president in 1984.
rett president and a member of the
* * *
board of directors. He began his
American National Bank of Saint banking career with First Bank St.
Paul has announced a number of of­ Paul, prior to joining Eastern
Heights in 1975. He most recently
ficer promotions.
Gary M. Omerza has been pro­ was executive vice president.
moted to vice president and senior
funds manager. He joined ANB as a
trust accountant in 1969 and has
held several positions since, most
vice president—bond.
Albert J. Colianni, Jr. will manage
Peter M. Bradt has been advanced
all financial and operational support
areas, including all financial func- to vice president—construction. He
tions, operations, human resources joined the bank in 1978 as a credit
analyst, and after several promo­
and administrative services.
tions most recently was assistant
* * *
vice president.
Thomas R. Rice has joined First
Jack P. Hoehl has been named
Bank System as vice president of vice president of data processing.
Mr. Barrett succeeds Robert J.
capital financing. He has most re­ He joined ANB as a programmer Hubbell, who has retired after more
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987


Minnesota News

than 28 years as the bank’s sole
chief executive officer and president.
Mr. Hubbell has served as president
of the Minnesota Bankers Associa­
tion. He will continue to be a mem­
ber of the bank’s board of directors.
* * *
Norwest Bank Minneapolis has
named Robert A. Amundson senior
vice president
and head of pay­
ment operations
N o rw est
Technical Ser­
vices, Inc. Prior
to his appoint­
ment, he was
vice president of
consumer opera­
tions, manager R.A. AMUNDSON
of bank systems
and manager of consumer systems
for Norwest Bank Minneapolis,
which he joined in 1982.
* * *

At Commercial State Bank, St.
Paul, Richard L. Kastner, executive
vice president,
w as
e le c te d
p re sid en t and
chief operating
officer. He will
c o n tin u e
chairm an and
Mr. K astner
joined the bank
in 1975 and has
served as ex­
ecutive vice president since 1979.
* * *

David Levy has been named vice
president and director of public af­
fairs at the Fed­
e ra l R eserv e
Bank of Minnea­
polis. Prior to
joining the Fed,
he had been di­
rector of public
affairs at Med­
tronic, Inc. He
has also served
as media director
at the Minnesota
House of Representatives.
* * *

Western Bank, with offices in St.
Paul, Maplewood and Oakdale, has
announced four promotions.
Scott A. Johnson has been named
assistant vice president. He has
been responsible for most phases of
Banker, April, 1987
Federal Reserve Bank of St. Louis

opening the new Western Bank Oak­ Airport. Mr. Luther is general man­
dale office, and has managed the fa­ ager of Brookdale Pontiac, GMC
cility since its opening last August. and Honda.
Fizal Kassim has joined the bank
* * *
as personal banking manager of the
University Avenue office. He pre­
William B. Naryka has been
viously managed the personal bank­
ing area at Marquette Bank Min­ elected a director of Bremer Finan­
cial Services, Inc., St. Paul. He has
Linda Martinez-Higgins has been been with Bremer since 1982 and
promoted to human resources offi­ serves as chief financial officer/senior
cer. She has extensive experience in vice president. He supervises asset/
benefit administration which she at­ liability management, audit, control­
tained while employed with St. Paul ler, investments, human resources
and data processing functions.
* * *
Timothy Higgins has been pro­
moted to operations officer. He
came to Western Bank from Ameri­
Marquette Bank Minneapolis has
can National and First Bank Infor­ announced the introduction of a new
mation Services, with expertise in equity fund for employee benefit
various computer applications.
plan customers. The fund, called the
* * *
Select Value Equity Fund, features
Richard L. Schlichte has joined a value-oriented investment style
the staff of Marquette Bank Colum­ and is managed by the bank’s regis­
tered investment advisory subsidi­
bia Heights as
ary, Marquette Capital Manage­
a ss is ta n t vice
ment Corporation.
president, man­
The Select Value Fund is not
ager of the Frid­
based on active trading, speculative
ley office. Mr.
moves or massive market timing.
Schlichte was
Rather, it is based on fundamental
m ost recently
of the value of specific
associated with
stocks as indicated by the relation­
F u ld a
S ta te
ship of dividends to average yields,
Bank of Fulda,
expected dividend growth, P/E
Minn. Prior to
values, management strength and
that he was asso­ R.L. SCHLICHTE
ciated with Schoon Motors, Worth­ other variables. The process is de­
ington, Minn. He is a graduate of signed to isolate stocks that will pro­
Southwest State University and the vide solid returns over time, accord­
ing to Marquette Capital Manage­
Minnesota School of Banking.
ment president Gregg Hannah.
* * *
* * *

Allen J. Olson has joined the staff
of Diversified Discount and Accep­
tance Company,
a subsidiary of
N ational City
as vice presi­
ing. He will be
responsible for
stucturing finan­
cial programs for
clients in the
Midwest. Mr. Olson spent the last 11
years with Barclays American Busi­
ness Credit, Inc., most recently as re­
gional vice president—business de­



James R. Campbell, president and
CEO of Norwest Bank Minneapolis,
will chair the 1987 fundraising drive
for Twin Cities Neighborhood Hous­
ing Services, Inc. TCNHS is a part­
nership of residents, business lead­
ers and local government focusing
on neighborhood revitalization.



Robert F. Froehlke, retiring chair­
man of The Equitable Life Assur­
ance Society of the United States,
has been elected president and chief
executive officer of the IDS Mutual
Fund Group. His election becomes
effective July 1 when current presi­
dent and CEO E. Robert Kinney re­

R. Dan Luther has been appointed
to the board of directors of Metro- MINNESOTA NEWS. . .
Bank Bloomington/M inneapolis/ (Turn to page 35, please)


total number of banking service
locations would rise to 84.
Mr. Mack would be named presi­
dent and CEO of Valley Bank, Madi­
son and a director of Valley. He
would report to Robert C. O’Malley,
presently chairman and president of
Valley Bank, Madison, who would
continue as vice chairman of Valley
Bancorporation and chairman of the
Badger region.

1st Wisconsin Buys Illinois Bank
IRST Wisconsin Corporation of
Milwaukee will acquire North
Shore Bancorp., Inc., a one-bank











an agreement in principle calling for
the merger of Community and
Valley. Under the agreement, which
holding company in Northbrook, has been approved by each organiza­
111., it was announced March 19. tion’s board of directions, owners of
This is the third bank acquisition Community common and preferred
agreement First Wisconsin has stock would receive Valley common
reached in Illinois.
First Wisconsin will pay $6.16
Valley would issue approximately
million in cash, or just over twice 1,763,000 to 2,130,000 shares of its
book value for the Illinois holding common stock and pay approxi­
company. The North Shore holding mately $7,486,000 in cash in the
company owns the $42 million Bank transaction. It is subject to negotia­
of the North Shore. Chartered in tion of a definitive agreement and all
1976, the bank is located at North­ requisite corporate and regulatory
brook Court shopping center, about approvals.
Headquartered in Middleton, Com­
20 miles north of downtown Chicago
on Lake Cook Road, the boundary munity had assets of $375 million at
between Cook and Lake Counties.
Dec. 31, 1986. The company owns
“The Bank of the North Shore six banks and has 85% of its assets
represents an excellent extension of in banks located in the greater Madi­
our growing presence in Northern Il­ son area.
linois,’’ said First Wisconsin Chair­
After the proposed transaction is
man Hal C. Kuehl. “ It is a gem of a approved, Valley would become the
bank in a highly desirable market. largest banking organization in
Both the quality of the bank’s man­ Madison. Its total assets would also
agement and the demographics of increase to $2.6 billion. Valley’s
its service area point to strong fu­
ture growth in assets and earnings.”
Mr. Kuehl added that the bank’s
name, directors, management and
staff would remain the same. Sherwin Willens is North Shore chair­
Pending approval of shareholders
and bank regulatory authorities, the
North Shore acquisition should be
completed in the third quarter of
1987. A definitive agreement has
been signed by representatives of
both companies.

Community Banks Plan
Merger with Valley
John F. Mack, chairman and CEO
of Community Banks, Inc., and Gus
A. Zuehlke, chairman and CEO of
Valley Bancorporation, jointly announced on February 17 that the
two organizations have entered into
Federal Reserve Bank of St. Louis

First Wis. Corp. Honored
First Wisconsin Corporation has
been cited as a national leader in cor­
porate community relations in a
study conducted by the Center for
Corporate Community Relations at
Boston College. Companies in 64
U.S. cities were surveyed. First
Wisconsin received multiple votes in
areas including executive leader­
ship, employee involvement, contri­
butions, innovative programming
and general reputation.

Added in Brown Deer
Marianne Jaehnke has joined
Brown Deer Bank as vice president
of its retail division, according to
bank president Dean A. Treptow.
In her new position, Ms. Jaehnke
will determine deposit and loan
rates, assist in product development
and marketing, and oversee personal
banking services, retail lending and
retail department personnel.
Prior to joining Brown Deer
Bank, Ms. Jaehnke served as man­
ager of personal banking with First
Interstate Bank in West Allis.

< O ur N ew A ddress
I Perfect Plastic
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[ P.O. Box 568 • 345 Kautz Road
^ St. Charles, Illinois 60174

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We’ve built in twice the space for
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We’ve built in the most practical
and sophisticated security tools
and systems available to protect
your job and its confidentiality.

N ew possibilities
Ph: 312 584 1600

We’ve built in the possibility of
endless new possibilities for you.

Northwestern Banker, April, 1987


Max J. Larson, President.

“ At First National
Bank in Sioux City, we’re
proud of the productive
relationships we’ve devel­
oped with many banks
t v':'1
in our area. Through these
partnerships, our staff of
professional bankers
plockwise — Patty Stansbury, Gary Stevenson, Phyllis Foster, Ed Den Beste
provides our friends with
ivey Thompson, Mark Paradise, Jan Foresee, Lon Kelling.
a competitive edge
in their local marketplace with services like loan
overlines, investments, credit card services,
and data processing.
While many people refer to these banks as
“respondents” , we prefer to call them friends.
If you’re looking for a friend, give us a call at
(712) 277-1500. We’d like to get to know you.”

Max J. Larson

See You at the South Dakota
Bankers Convention!

First National Bank in Sioux City I
Member FDIC • Sioux City • A 'BANKS OF IOWA’ BANK • (712) 277-1500

StiengthibuCan BankOn.
Banker, April, 1987
Federal Reserve Bank of St. Louis


Vice President








South Dakota
Bankers Association
95th Annual Convention
May 10-12, 1987
Howard Johnson’s Motor Lodge
Rapid City





Exec. Vice Pres.

££ A TRANSITION in Traditional Banking” is the
theme for the 1987 Convention of the South
Dakota Bankers Association. South Dakota bankers
will gather on May 10-12 at the Howard Johnson’s
Motor Lodge in Rapid City.
Presiding over the convention will be President B.
Michael Broderick, Jr., who is president of First
American Bank in Canton. President-Elect is Larry
Ness, president, First Dakota National Bank, Yank­
ton. The association’s vice president is Christine Schirber, executive vice president of Dewey County Bank,
Isabel. This year’s General Convention Chairman is
Pete Cappa, vice president, Norwest Bank South Da­
kota, Rapid City. J.I. Milton Schwartz is the associa­
tion’s executive vice president.
Speakers scheduled include: South Dakota Governor George S. Mickelson, ABC newsman Steve Bell,
James Abdnor of the Small Business Administration,
Federal Reserve Bank of St. Louis

Christian psychologist and author Dr. Kevin Leman,
consultant and lecturer Philip D. Steffen, and Ameri­
can Bankers Association Executive Vice President
Don Ogilvie.
Sunday night will feature “An International Gala”
reception, dinner and dance. Monday afternoon’s acti­
vities include men’s and women’s golf tournaments.
On Tuesday afternoon a tour will be offered of Ells­
worth Air Force Base. Tuesday night’s banquet will
feature music and comedy by “The Great Pretenders.”
The advance program schedule follows:
Sunday, May 10

Registration desk & exhibit hall open.
“An International Gala” Reception, Dinner.
All Convention Dance.
Registration desk closes.
Northwestern Banker, April, 1987

5Ve cÇe»eV,'v l


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© FW C 1986
Federal Reserve Bank of St. Louis



South Dakota News

f&t 4SM




Monday, May 11
8:30 Registration desk & exhibit hall open.
9:30 General session opens.
The Honorable George S. Mickelson, Governor
of South Dakota.
“National Update“—Steve Bell, News corres­
pondent and former anchor man, ABC’s “Good
Morning America.”
“SBA News“—The Honorable James Abdnor,
administrator, Small Business Administra­
tion, Washington, D.C.
Election of SDBA Officers.
12:30 General session adjourns.
Men’s golf tournament, (Tee-off times as­
signed), Arrowhead Country Club.
1:00 Exhibit hall closes.
1:30 “The Magic of Your Image’’—Barby Fair­
banks Eide, Austin, Tex.
2:00 Ladies’ golf tournament, (Tee-off times as­
signed), Meadowbrook Golf Course.
3:00 Registration desk closes.

Tuesday, May 12
7:30 Fellowship Breakfast: “Why You Are the Way
You Are’’—Dr. Kevin Leman, psychologist,
Tuscan, Ariz.
8:30 Registration desk & exhibit hall open.
9:30 General session opens.
“Professional Excellence Through Manage­
ment and Leadership”—Philip D. Steffen,
CSP, Philip D. Steffen & Associates, Marietta,
Don Ogilvie, e.v.p., American Bankers Asso­
ciation, Washington, D.C.
12:30 General session adjourns.
Past Presidents’ All Convention Luncheon.
1:00 Exhibit hall closes.
3:00 Registration desk closes.
5:00 Registration desk opens.
6:00 Associates’-Sponsored President’s Reception.
7:00 Registration desk closes.
Annual Banquet.
8:30 “The Great Pretenders.”
10:00 Convention adjourns.

You Will See Them at the 95th Annual
South Dakota Bankers Convention
HE following metropolitan bank­
ers and service and equipment
dealers have indicated that they will
be attending the annual convention
of the South Dakota Bankers Asso­
ciation in Rapid City, May 10-12:
Minneapolis/St. Paul
American National Bank: Donald
R. Lindeman and James A. Russell.
Marquette Bank: Jim Kammerer,
vice president; Dick Holmes, assis­
tant vice president.
Norwest Bank Minneapolis: John
Sampson, senior vice president; Bob
Rasmussen, vice president; Marlene
Wright, sales representative, Nor­
west Technology Services; Clifford
A. “Ted” Taney, vice president, Nor­
west Investment Services, Inc.;
Roger D. Smith, assistant vice presi­
dent, Norwest Leasing; Darryl Han­

Banker, April, 1987
Federal Reserve Bank of St. Louis



sen, president, Norwest Card Ser­
Sioux City
First National Bank of Sioux City:
Gary Stevenson, vice president.
Security National Bank: R.E.
Hagen, president & CEO; Michael D.
Moreland, vice president/investments; Ron E. Kiel, correspondent
banking officer; Wilma C. Weeks,
correspondent services officer.
Sioux Falls
Norwest Bank South Dakota: Don
Hooper, vice president; Peter Cappa,
vice president.
Banking Equipment & Other Firms
Central States Health & Life: John
Owens, Wyoming regional manager.
Modern Banking Systems, Inc.:
Mike Reynolds, regional manager;
Kevin McCormick, senior sales repre­

North Central Companies: Russ
Eng, regional manager; Dennis Zea,
regional manager.

Named in Chamberlain
Norwest Bank South Dakota,
N.A., has announced that Jeff
Gruntmeir has been named ag bank­
ing officer at Chamberlain.
Mr. Gruntmeir joined Norwest in
1983, in 1984 was named ag banking
officer in Mitchell, and in 1986 was
named credit officer in Sioux Falls.

In the chart of South Dakota’s
largest banks that appeared on page
31 of the March N or thwest ern
B a n k e r , the name of First Fidelity
Bank of Burke should have ap­
peared as the 15th largest bank.
First Fidelity at 1986 year-end had
$75,559,000 in deposits and $34,
335,000 in net loans. The editor re­
grets this oversight.

Norwest Bank Maple Grove, N.A.
She joined the bank in 1977, and has
held positions in teller operations,
personal banking, and currently in
consumer lending.
South Dakota News

Pres. Named in Canton
At Farmers State Bank, Canton,
George Hanson has resigned as
president. He will remain as a direc­
tor of the bank. Bruce D. Anderson
was named as his successor. He has
16 years banking experience.
Two new directors were also added
to the bank. They are Kirk E. Dean,
president of Norwest Bank, Rapid
City, and Stephen A. Sahly, vice
president of credit administration at
Norwest Bank, Sioux Falls.

(Continued from page 28)

Changes Told in Winona

At Merchants National Bank,
Winona, K. A. Poblocki has been pro­
moted from vice president and
cashier to senior vice president and
cashier. His duties include super­
vision of all operational depart­
ments of the bank. Mr. Poblocki has
been with Merchants National since
K erry A nderson, a s s is ta n t
cashier and manager of the install­
Promoted in Sioux Falls
ment loan department, was pro­
Vicki Ripley has been promoted moted to assistant vice president.
to vice president, student loans at He will continue to manage install­
Norwest Bank South Dakota, Sioux ment loans. Mr. Anderson joined the
Falls. She joined Norwest in 1979 bank in 1985.
and has served there in various
In addition, Peter Woodworth,
capacities, most recently as assis­ president of Winona Knitting Mills,
tant vice president, student loan Inc., was elected to the board of
manager, which position she has directors.
held since 1985.

Added in Richfield
Richfield Bank & Trust Co., Rich­
field, has announced that Lori Gerval has joined
the bank as di­
rector of market­
ing. She began
her banking ca­
reer in 1980 at
Norwest Bank
B lo o m in g to n ,
and held various
positions in mar­
keting and con­
su m er sale s.
Most recently, Ms. Gerval worked
as consumer products specialist in
Norwest Alliance System, Inc.

Added in Maplewood
Dacotah Declares
Stock Dividend
Rodney Fouberg, chairman of the
board, has announced that the board
of directors of Dacotah Bank Hold­
ing Co., in its Feb. 17 meeting, de­
clared a 2 % stock dividend in lieu of
its semi-annual cash dividend. The
stock dividend was paid on March
23 to shareholders of record on
March 3. Fractional shares were
paid in cash based upon $12 per full

Retired in Fulton

Alan Emory has joined Western
Bank and Insurance Agency as vice
president, manager of the McCarron’s Lake office in Maplewood. His
previous position, which he held
since 1981, was as deputy director
for neighborhood development for
the St. Paul Department of Plan­
ning and Economic Development.

Elected in Maple Grove
Debra I. Mickelson has been
elected consumer banking officer at

MBA Holds
Bank Operations School
The first session of the Minnesota
Bankers Association Bank Opera­
tions School was completed Feb.
23-27 at the Radisson Arrowwood in
“The response has been over­
whelming and our first session was a
definite success,” said BOS Admin­
istrator Wayne Berthiaume, who is
also MBA administrative vice presi­

Chanhassen Bank Opens New Building

Fulton State Bank, Fulton, has
announced the retirement of George
O’Neill. He has been with the bank
for 38 years in a variety of offices,
including director. He will continue
in that capacity and also serve the
bank as a consultant. The bank held
an open house in Mr. O’Neill’s honor
Feb. 11-13.

State Banks Report Issued
The Division of Banking and Fi­
nance of South Dakota has released
its abstract on the condition of state
banks as of Dec. 31, 1986. I l l banks
reported. Loans and leases came to
$1,535,570,000; total deposits were
$2,952,774,000; capital accounts
were $293,889,000. The ratio of capi­
tal accounts to deposits was 9.95%
and that of total loans to total
deposits was 52.0%.
Federal Reserve Bank of St. Louis

THE Chanhassen Bank, Chanhassen, recently held a grand opening celebration for its new
10,000 sq. ft. facility. The new building features six drive-in lanes, a drive-up ATM and ex­
panded customer service and office facilities. The structure was designed by Hickey, Thorstenson, Grover, Ltd., Architects of Edina, and includes a 26 ft. ceiling in the main lobby.
Area growth around Chanhassen dictated the need for a new building. The extra design
work was called for by the bank’s commitment to support this growth and a current effort
by the city to redevelop downtown Chanhassen.
Northwestern Banker, April, 1987


NDBA Offers Marketing Conference
HE North Dakota Bankers As­
sociation 1987 Marketing Con­
ference will be held May 6-7 at the
Sheridan Galleria, Bismarck.
The year’s conference targets the
ever-changing role of bank market­
ing. Addressing this topic will be
Joe Brunner, president of the Min­
nesota Bank Marketing Association
Chapter. Jack Hubbard of Von
Almen and Associates in Roselle, 111.
will speak on the subject of competi­
tion with non-bank banks.
The May 7 session includes two
full programs: marketing/advertising for the community bank, and
sales culture. Speakers will be Don
Uker and Jack Hubbard, respective­
lyThe conference will conclude with
a presentation by Norwood “Red”
Pope of Valley National Bank of Ari­
zona, Phoenix, entitled “Mickey
Mouse Marketing in a Buck Rogers
The complete program follows:


Wednesday, May 6
12:00 Registration, lunch on your
1:00 “ The Changing Role of
B ank M a rk e tin g ” —Joe
Brunner, s.v.p./dir. mktg.,
American National Bank,
St. Paul, Minn., and Bank
M a rk e tin g A sso c ia tio n
pres., Minneapolis Chapter.
1:45 ABA Consumer Research
Survey—Al Paro, ABA dir.,
member communications,
Washington, D.C.
2:15 Break.
2:30 “ Competing Against the
N on-Bank B a n k ” —Jack
Hubbard, s.v.p., Von Almen
and Assoc., Roselle, 111.
4:00 Break.
4:15 Idea Exchange.
5:00 Reception.
Thursday, May 7
7:30 Continental breakfast.

8:30 Session.
10:00 Break.
10:15 Session.
Choose either:
“Marketing/Advertising for
the Community Bank”—
Don Uker, Don Uker and
Co., Denison, la.; or
“ Sales Culture—Building,
Managing, and Incentives”
—Jack Hubbard, v.p., Von
A lm en & A s s o c ia te s ,
Roselle, 111.
12:00 Luncheon.
1:00 “Mickey Mouse Marketing
in a Buck Rogers World”—
Norwood “Red” Pope, s.v.p.
/ m ktg., Valley National
Bank, Phoenix, Ariz.
2:30 Adjourn.

Elected in Bismarck
Donald W. Green, president of
First Bank Bismarck, has an­
nounced the elec­
tion of Warren
L. Hintz as vice
p re s id e n t/le n ding officer. Mr.
Hintz began his
career with First
Bank Minot in
1965. Most re­
cently he served
as senior vice
p re sid en t and
senior credit officer at First Bank

Farm Credit Services, most recently
as regional vice president.

Abstract Report Released

Changes Announced in Casper
First Interstate Bank of Casper
has announced the promotion of
Christopher M. Tice to assistant
vice president and Polly R. Earl to
credit adjustment officer, and the
election of Ronald E. Wright to agri­
business officer in the commercial
Banker, April, 1987
Federal Reserve Bank of St. Louis

The Office of the State Examiner
has released its Abstract Report of
State and National Banks in Wyom­
ing for year-end 1986.
Net loans at state banks was
$950,022,000, and at national banks
was $995,,447,000, for a total of $1,
945,469,000. Total deposits was $1,
913.976.000 for state banks, $1,998,
for national banks, and $3,
912.276.000 combined. The loan to
loan department.
Mr. Tice has worked for the bank deposit ratio was 49.7%.
Total equity capital at state
two and a half years, and was a loan
review analyst prior to his promo­ banks was $184,909,000, at national
tion. Ms. Earl, formerly a fore­ banks was $2,232,883,000, and com­
closure specialist, joined the bank bined was $4,383,179,000. 67 state
last May. Mr. Wright previously banks and 39 national banks re­
was employed for nine years at ported.

promoted to security operation offi­

CNB Promotes Six

United Bank Promotes Ten

career with the bank in 1978. His
prior position was as assistant vice
president of correspondent banking.
Philip C. Lyon has been promoted
to retail banking division head. He
was previously assistant division
head and vice president of retail
banking, and joined Central Bank in
Promoted to automated delivery
systems department manager is
Patricia J. Wyperd. She was most
recently a retail banking officer.

Ten promotions have been announced by the United Bank of Den­
William J. Maurer has been
named vice president in real estate
banking. Peter J. Young was named
• vice president in cash management.
Also named v.p., Allan R. Haworth
works in the merchant banking
group. Vice president Nancy L. Den­
is manager of the compliance depart• ment. Manager of commercial loan
support, Mari J. Beck was also
named vice president.
Named assistant vice presidents
were Georgianne S. Brummett, cor® respondent banking; Andrew C.
Hamrick, secured lending and leas­
ing, and Douglas R. Woods, com­
mercial collections, loan administra­
In addition, Clayton A. Durkee
Jr. has been promoted to asset man­
agement officer and William E.
Gwendolyn A. Reker and Diane C.
Mowery to commercial banking offiSiira
have been promoted to vice
^ cer in loan administration’s commerpresidents. Ms. Reker joined the
^ cial collections area.
bank in 1980 and most recently
served as assistant vice president in
Central Bank
the regional banking department.
Announces Promotions
Ms. Siira has been with Central
Central Bank of Denver has Bank since 1960, most recently as
named William C. Tumelty, Jr. to assistant vice president in commer­
division head of correspondent cial banking.
banking administration. He pre­
viously served as vice president, cor­
respondent banking. He joined the
bank in 1972.

Six staff changes have been an­
nounced by Colorado National Bank
of Denver.
Promoted to vice presidents were
Ronald G. Wendel, Charlotte Miller
and George Adams. Mr. Wendel
works in the institutional services
division where he is responsible for
management of retirement plan ser­
vices, corporate trust, custodian ser­
vices and new business. Ms. Miller
currently serves as director of pro­
ducts and planning. Mr. Adams
works in commercial banking and is
responsible for the middle market
commercial lending portfolio.
Named officers were Lucy Fiske
Carson, Robert E. Prince and Doug­
las J. Arnot. Ms. Carson works in
special assets and is responsible for
work-out loans and collections. Mr.
Prince serves as the division man­
ager for bank security and safety.
Mr. Arnot is a security analyst in
the financial services funds manage­
ment area.

Named in Denver
Thomas B. Walker has been
elected chief financial officer of Cen­
tral Bancorporation, Inc., Den­
ver. Mr. Walker
has 13 years
banking experi­
ence and will be
responsible for
all finance, ac­
c o u n tin g and
treasury opera­
tions for the cor­
poration. Most
recently he served as chief financial
and administrative officer for Na­
tional Bank of Georgia in Atlanta,

Elected in Denver





Mr. Tumelty is succeeded by
Richard H. McElroy, who began his
Federal Reserve Bank of St. Louis


John Nicoll has been elected
senior vice president and corporate
counsel of Colorado National Bankshares, Inc., Denver. He was most
recently associate regulatory Coun­
sel to the NPC Financial Corpora­
tion, a major bank holding company
in Pennsylvania. His legal career
spans 26 years.

In addition, Mel Bauer was ad­
vanced to retail banking officer in
the retail banking support depart­
ment, Terry L. Johnson was pro­
moted to commercial loan represen­ COLORADO NEWS. . .
tative, and Jami L. Tschanz was (Turn to page 42, please)

Northwestern Banker, April, 1987


In the banking business, you measure success any number of ways. But no
matter how you figure it, we set records in total assets. Earnings. Trust Department
performance, 'fears in business. Number of customers.
We’re proud of our solid growth. And proud to serve you— and assure you—
with our strength, financial expertise and experience.
Few institutions offer you what we can in performance and stability. We’re one
of the few banks in the area that has never had to change its name. We’re a vital part of
Omaha— governed by people who live and work here.
After 124 years of business, we’re still growing strong. That’s why we’re proud
of our name.

No Wonder They Call Us First.


firs! national bank
of omaha
Member FDIC
Banker, April, 1987
Federal Reserve Bank of St. Louis


Changes Told in Kearney
Wayne R. McKinney has given up
his duties as chief executive officer
of Platte Valley State Bank and
Trust Co., Kearney. He will continue
to work full time at the bank as
chairman and trust officer. Don
Kearney, who was named president
last fall, will assume the position of
Keith Stafford has been named to
head the bank’s farm loan depart­
ment, replacing Keith A. King, who
has relinquished those duties for
health reasons. Mr. King will con­
ernment Relations Committee; Phil tinue to work in the ag department
Burns (Farmers and Merchants Na­ and as a director.
tional Bank, West Point)—Lending
Kearney State College President
Committee; Jim Mastera (Corn- William Nester has been elected to
husker Bank, Lincoln)—BankPAC the bank’s board of directors.
In addition, President-E lect
Blaha announced the continuation Promoted in Cook
of the NBA Task Force on Economic
Three promotions have been an­
Development, which will continue to
at the Farmers Bank of
be chaired by 1986-87 NBA Presi­
Cook. Aldine Rowe has been elected
dent Kelly Holthus.
cashier, Judy K. Brinkman has been
Promoted in Grand Island
promoted to vice president, and
William Dewhurst has been pro­ Charles Bevard was advanced to
moted to president and managing vice president and controller. Mrs.
Rowe was previously assistant cash­
officer of Nor­
ier, while Mr. Bevard and Mrs.
west Bank Neb­
Brinkman were assistan t vice
ra s k a , N .A .,
G rand Island.
The Farmers Bank of Cook recent­
He su cceed s
ly held an open house and ribbon
Norman Nackecutting ceremony for its new facili­
rud, who is retir­
ty. The renovation includes a remo­
deling lobby, additional office space
Mr. Dewhurst
and a new computer system.
joined Norwest
in 1979 an d
m ost recently
served as vice president and man­ Promoted in Fullerton
Recent promotions at the First
ager of the financial institutions
group in Omaha. Mr. Nackerud has National Bank and Trust, Fullerton,
been with the Norwest Corporation were Larry K. Rogers to president,
Ginette Small to assistant vice
for 37 and a half years.
president, Lureen Morgan to assis­
tant vice president, Donna K. HellElected in Norfolk
to assistant vice president
The board of directors of the Bank
Evers to assistant
of Norfolk has elected James Hercashier.
bolsheim er to
the position of
p resid en t. He
Elected in O’Neill
has been affili­
ated with the
The O’Neill National Bank,
Bank of Norfolk
O’Neill, recently elected Stan Darl­
since 1972, most
ing and Rick Hammer to vice presi­
recently as ex­
dents. Cindy Cole was elected cash­
e c u tiv e
ier. Mr. Darling has been with the
president, which
bank since 1983. Mr. Hammer
position he has
joined O’Neill National in 1984 and
held since 1975.
will continue to serve as branch
Earlier this year he was elected to manager of the Page branch. Ms.
the bank’s board of directors.
Cole joined the bank in 1975.

Bergmeyer Heads NBA Nominations
HE NBA Nominating Commit­
tee, chaired by Past President
Mel Adams, has nominated Harley
D. Bergmeyer, president of Saline
State Bank, Wilber, for the position
of NBA President-Elect for 1987-88.
His name topped the slate of candi­
dates submitted to the NBA Execu­
tive Council at its meeting March 19
in Kearney.
Bankers nominated to fill upcom­
ing vacancies on the Executive
Council are as follows: Group 1 —
Frank Bruning, president of Bruning State Bank; Group 2 —John
Peck, president of First National
Bank & Trust, Columbus; Group 3 —
Jeffrey Gerhart, executive vice pres­
ident, First National Bank of New­
man Grove; Group 5— Bill McQuil­
lan, executive vice president, City
National Bank of Greeley; Group
6—Frank Tolstedt, president of
Guardian State Bank & Trust, Alli­
ance; Group 7—Charles Undlin,
president of Norwest Bank Nebras­
ka, Omaha; Group 7—Gerald Karlin,
president of Southwest Bank &
Trust, Omaha; Group 8—Tom Hen­
ning, president of National Bank of
Commerce, Lincoln.
The slate of candidates was unani­
mously approved by the Executive
Council, to be submitted to the
membership for election during the
1987 annual meeting in Lincoln on
May 15. On that occasion, Presi­
dent-Elect Donald Blaha, president,
First National Bank, Ord, will also
take office, succeeding C.G. “Kelly”
Holthus, president and CEO, First
National Bank of York.
Mr. Blaha has announced the fol­
lowing bankers have agreed to chair
the five standing committees for the
coming year: Mike Dusenbery (Pickrell State Bank)—Bank Manage­
ment Committee; Frank Bruning
(Bruning State Bank)—Bank Mar­
keting Committee; John Munn
(First National Bank of York)—Gov­
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987



vices Corporation of Owensboro,
Irene Hardisty has been promoted
to vice president and director of cor­
respondent lending in Omaha. She
joined FirsTier in 1985 as branch
manager of the Des Moines office.
Prom oted to a ss is ta n t vice
presidents were: Lori D. Carney,
assistant director, correspondent
lending; Robert D. Chalupa,
commercial loan originator; Robert
P. Gondring, director, mortgage
loan underw riting; Charles R.
McDaniel, director, construction
lending and property management,
and Annette M. Wiltgen, assistant
director, marketing.
* * *
FirsTier Bank Omaha and FirsTier
Bank Lincoln. He was named to hold
those responsibilities in April, 1986.
* * *

Added in McCook

James C. Hupp, Timothy J. McReynolds, John J. Rickett, Kenneth T.
Nordlund, and James I. Black, the
bank’s president. Mr. Black and Mr.
Nordlund have been investors in the
Pierce Corporation since it was
founded 18 years ago.

Advanced in West Point

Named in Ogallala

Layne Sander has been advanced
to vice president and agriculture
representative of the First National
Bank of West Point.

Doug Barnell has been named an
assistant vice president at the First
National Bank in Ogallala. He has
been agricultural loan officer since
1984 and will also continue in that

Pierce Corp. Stock Purchased
A group of investors has pur­
chased the stock of the Pierce Cor­
poration, the holding company that
owns Cones State Bank in Pierce.
The new owners include Tim Bren­
nan, Dr. Michael J. Morrison,
Robert E. Meyers, Steven G. Shep­
pard, P.J. Morgan, Brad Merchant,

Banker, April, 1987
Federal Reserve Bank of St. Louis




Packers Bank and Trust Com- •
pany honored Laddie J. Kozeny at a
surprise open house on February 26.
Mr. Kozeny was celebrating both his
80th birthday and his 64 years of
service with the bank. He is current- ®
Glenn R. Wilson, president and ly chairman emeritus of the bank’s
chief executive officer of FirsTier advisory board.
M ortgage Co.,
* * *
has announced
th a t Paul B.
FirsTier, Inc. has announced that
Donoghue has
John G. Bookout, president of
joined the orga­
Woodmen of the World Life Insur­
nization as vice
ance Society, and Donald A. Bliss,
president of sec­
vice president of regulatory and ex­
o n d a ry
m a r­
ternal affairs and COO in Nebraska
keting. Mr. Don­
for Northwestern Bell Telephone
oghue was a vice
Company, have been elected to the
president in the p B DONOGHUE
board of directors of FirsTier Bank
secondary mar­
keting division of the Lincoln Ser­ Omaha.

William C. Smith, president of
FirsTier, Inc., Omaha, will assume
the duties of
chief executive
officer. Charles
W. Durham will
remain chairman
of the board of
the corporation
and chairman of
th e execu tiv e
Mr. Durham
has served as
chairman and interim chief ex­
ecutive officer of FirsTier, Inc. since
the resignation of John D. Woods
from those positions last November.
Mr. Smith will continue as president
and chief executive officer of

Robert Schardt has joined Mc­
Cook National Bank as vice presi­
dent. He previously served at Norwest Bank in Hastings as assistant
vice president in agricultural lend­


NBA Ads Recognized
The Advertising Federation of
Lincoln recently recognized two of
the newspaper ads which have been
developed by the Nebraska Bankers
Association as part of the current
year’s advertising program.

A gold award in the category of
farm publication was awarded for
the NBA’s “prenotification” ad 0
which explained the problems which
would be created under the direct
notification alternative to central fil­
ing for liens on agricultural pro­
ducts. A silver award was given to #
the NBA’s newspaper ad which ex­
plained how interest rates are set.
The awards were presented to
Bailey Lewis & Associates, the ad­
vertising agency which has handled #
the NBA’s advertising program for
the past eight years.

Scottsbluff Banks
Plan to Merge


Scottsbluff National Bank and
Trust Co. and Western National
Bank of Scottsbluff have requested 0
permission to merge.

Nebraska News


LEFT—Participating in this year’s Ag Outlook Conference were, from left: Stan Matzke, exec, v.p., NBA, Lincoln; Neal Harlan, pres., &
c.e.o., Scoular Grain Co., Omaha, and Carol Brookins, pres., & c.e.o., World Perspectives, Inc., Washington, D.C. RIGHT—David Hay, pres.,
First Natl., Belden and member of the NBA Lending Committee introduced, right, Dr. James G. Kendrick, ag prof., Univ. of Nebr., Lincoln.

Ag Outlook Conference

Bankers Meet in Kearney
on real economy, rather than histor­
ic myths.”
In conclusion, Ms. Brookins
out that there will be fewer
HE Nebraska Bankers Associa­
in the years ahead but
tion held its annual Ag Outlook
farm operators. She also
Conference in Kearney last month
farmers will have to
among speculation that the “big
old focus on price
agricultural picture’’ is indeed get­
it means we
ting better. The one and one-half day
our poli­
conference included presentations
focus on
on the future of agriculture, the
grain and livestock outlook, the
“Our agricultural producers will
trade picture and lending analysis.
to look at returns rather than
Many ag bankers question the fu­
ture of agriculture. Addressing this gross income to determine their rela­
im portant issue was key-note tive success.”
speaker Carol Brookins, president of
Neil Harlan, president and CEO
World Perspectives, Inc., a Wash­ for Scouler Grain Company in
ington, D.C.-based news analysis Omaha, which operates fifty grain
service with daily and monthly re­ elevators west of the Mississippi
ports on world developments. The River, said the grain market is “as
most important point Ms. Brookins exciting as watching paint dry, but
made was “Agriculture is integrated it is an exciting period in agricul­
into the world economy and is con­ ture.” Although somewhat new, the
tinuously evolving, influenced by its PIK and Roll program “works
own fundamentals and develop­ great” according to Mr. Harlan, who
ments in the macro-economy.’’ In said, “This is one of the most imagi­
other words, economics will always native programs, but only a small
win out over political policies re­ percentage of farmers have taken
garding agriculture.
advantage of it.”
Ms. Brookins did say there is no
Mr. Harlan said the grain storage
future for America’s agriculture outlook for 1987 will be critical, but
growth without export expansions. he discouraged the building of addi­
“We need to ‘stay the course’ and tional storage units because he fore­
permit low market prices to con­ sees a time when grain storage will
tinue, so the rest of the world re­ not be a problem. Mr. Harlan
structures its asset base in agricul­ pointed out three positive signs in
ture, just as we have been forced to agricultural finance: 1. Farmers
do,’’ she explained. “There is a defi­ made over $45 billion last year—
nite need to rebuild our agricultural their best ever. 2 . Land values have
policy on a solid foundation based stabilized in most areas and are up
Associate Publisher

Federal Reserve Bank of St. Louis

in some parts, and 3. Ag debt is off
by 10%. “There is cash on the mar­
ket to buy land, buy building sup­
plies and pay off debt,” Mr. Harlan
Gary Duncan, president and CEO
of Hastings Pork, the 6th largest in
the country, called the cattle outlook
“optimistic for the next twelve
months.” He attributes this to tigh­
tened supplies and weight decline on
finish cattle. Mr. Duncan’s outlook
for May-July cattle is $64-67. He did
caution “high beef prices don’t
necessarily mean high profits in all
cases. The good operators, who are
efficient, will make a profit, even at
lower prices,” he said.
Of course, the consumer plays an
important role in determining con­
sumption, he said, and there is a
noted shrinkage of per-capita con­
sumption in the red meat industry.
Mr. Duncan commented, “Fat, not
so much red meat, is what the con­
sumer is most concerned about.”
This, in part, is why the pork indus­
try has a new slogan - “Pork—The
Other White Meat.”
The 1986 hog picture was “fantas­
tic” according to Mr. Duncan. He
said because of the good year he was
able to pay down his debt and
become “leaner and meaner.” His
outlook for 1987 is “cautiously opti­
mistic,” and added that to be a live­
stock producer, you must be opti­
mistic. The poultry industry experi­
enced a 7% growth in 1986, but Mr.
Duncan sees that particular market
flattening out in late summer to ear­
ly fall.
Dr. David Kohl, professor of agri­
culture finance at Virginia Tech in
Blacksburg, Va., addressed the
Northwestern Banker, April, 1987


Nebraska News

LEFT—Gary Duncan, pres., Hasting Pork says the 1987 hog outlook is “ cautiously optimistic.” RIGHT—Dr. David Kohl, prof, of ag. fin.,
Virginia Tech., Blacksburg, Va., expresses his views on agricultural lending in the 21st century.

topic of ag lending in the 21st Cen­
tury. In his presentation, Dr. Kohl
gave an overview of the ag finance
picture. Here, he said, “We are
definitely in an ag transition, but I
do see a stabilization in the indus­
try.” Dr. Kohl said interest rates are
coming down, but not fast enough,
and this is generally associated with
the high risk in agriculture.
For the future of agriculture, Dr.
Kohl sees a decline in the family
farm. “The family farm will either
grow to mega-farm status or will
adapt to a small, part-time farm sta­
tus,” he said. “The mega-farmers
will be wholistic managers, heavy on

finance and marketing, utilizing bio­
technology, and will be bottom line
producers.” On the other hand, parttime farmers, according to Dr. Kohl,
will farm to suppliment income and/
or maximize lifestyles.
To conclude the conference, Dr.
James Kendrick, professor of agri­
culture, University of Nebraska,
Lincoln, said, “We are no longer the
only store in town. Nations that
once relied upon the U.S. for im­
ported food are now becoming selfsufficient.” In looking ahead into
the late 1980s and early 1990s, Dr.
Hendrick sees $1.40-1.50 corn, but
this will depend on our production

levels “which must be cut back to
those of the 1960s,” he said. He en­
visions hog prices in the $30 range
and cattle at $51-52.
In conclusion, Dr. Kendrick en­
couraged bankers to become lean
and mean and to offer customers
“one-stop management services.”
“Farmers want more than just
money. If th a t’s all they needed they
could go to Chicago and borrow,” he
said. “Bankers must give the cus­
tomer service and products to keep
the farmer’s business.” The future,
Mr. Kendrick said, will be in selling
service and the marketing of these


We regret these two omissions
from this important list.

(Continued from page 37)

Norwest’s Murphy Retires

Appointed in Englewood

The First State Bank in Scottsbluff was omitted from the “Largest
Banks in Nebraska” chart published
on page 41 of the March issue. At
1986 year-end, First State Bank had
deposits of $66,160,000 and net
loans of $25,266,000, making it the
29th largest bank in Nebraska.
At 1985 year-end, First State
Bank of Scottsbluff reported depos­
its of $41,998,000. When the nearby
Bank of Gering failed last October
23, First State Bank purchased it
from the FDIC and assumed Bank
of Gering’s $25 million deposits and
reopened it October 31 as First
State Bank-Gering.
In addition, Ralston Bank was
omitted from this “Largest Banks
in Nebraska” list. At 1986 year-end,
Ralston Bank had deposits of $61,
292,000 and net loans of $41,344,
000, making it the 36th largest bank
in Nebraska.
Deposits at 1985 year-end were
$57,353,000 and net loans were $40,

Banker, April, 1987
Federal Reserve Bank of St. Louis

Don Murphy has retired as a
director of Norwest Bank Nebraska,
N.A., having been associated with
the company for 46 years.
Mr. Murphy started with the or­
ganization in 1940, earning $60 a
month at the Farmers State Bank of
Osseo, Minnesota (now Norwest
Bank Maple Grove). He became the
bank’s managing officer in 1952,
then moved to Norwest’s corporate
office in 1956 as vice president and
bank relations officer.
In 1963 he joined Stockyards Na­
tional Bank of Omaha—now a
branch of Norwest Bank Nebras­
ka—where he became president and
managing officer in 1965. In 1975
Mr. Murphy was named president
and a director of United States Na­
tional Bank of Omaha. He retired as
chairman of the bank in 1983 and
continued as a director until 1986.

First Interstate Bank of Engle­
wood, N.A. has appointed Paul J.
Gardner as vice president of per­
sonal financial services. Jeanette
Clopton has been •appointed assis­
tant vice president of retail banking.
She has been with the bank for over
20 years. Susan Franey has been ap­
pointed assistant vice president in
commercial loans. She was previous­
ly with First Interstate Bank of
Denver as a commercial loan officer.

United Banks Provide
ATMs for Blind
United Bank’s of Colorado’s
MINIBANK automatic teller ma­
chines have now been equipped for
use by blind customers. The ma­
chines have brailled instructions
which give step-by-step directions
for how to perform various transac­


(Continued from page 23)

Mr. Kuchar: I can speak for our own bank because I ’ve
certainly gotten tremendous insights into what ABA’s
^ capable of doing within these past two or three years.
Sometimes, we as community bankers in rural areas
see ABA as a facility, as an organization, rather than
as a tool and th a t’s not the right approach, because
they are a tremendous tool in relation to all the docu||li mented information that they have. If we have to speak
to a local community group, or we have something
coming up where we have to know the subject very
well, we can call the ABA and they’ll get the informa­
tion ready for us and send us some good data that we
# can use. That’s real important in terms of our credibili­
Mr. Schurtz: I think this conference is a perfect ex­
ample. This conference and all its workshops are de­
signed for banks under $300 million. Plus, the fact that
Hi they’ve been extremely responsive to the changing

“ABA is a tremendous tool in relation
to all the documented information it
has. . .that’s real important in terms
of our credibility.”
—Jim Kuchar, North Dakota


needs of the community bank. An example of that is A1
Tubbs’ study and report on “Transitions in Agricul­
ture,’’ which was very profound, very helpful, very
timely. These things may not be of interest to banks in
A New York, but they’re of great interest and helpful to
Ms. Orullian: Two big things come to my mind imme­
diately. First is the captive insurance company. Large
banks are not going to use it like the small ones, so it
^ definitely aids community banks. Second is the inter­
est in the legislative issues. ABA brings them to the
level of the community banker and helps us under­
stand what’s out there in front of us, how we can be
supportive, the ways to participate in the whole pro0 cess. That’s been very, very helpful and it certainly
should help get the job done for the industry.
Mr. Kuchar: I think with the management intensity
that we have to put into our own shops right now, it’s
hard for us to keep up on the things that are happening
d|| outside and LaRae touched on it—keeping us updated
on the legislative process and having contact people at
the ABA so that we can get to our own state’s legisla­
tors and give them good, basic, solid information.
That’s tremendously important.
Bank Tax Trak (an ABA software system) is another
good example. Some of us were privileged to get the
module of this before it was actually put out to the
association members. I sent it to two of our state’s
leading accounting firms and they were both quite im# pressed with it in the sense that for their purposes in
serving our banks it was kind of a “quick fix’’ to the
process. I t ’s a bank tax monitoring procedure some­
thing like Tax Planning. You can use it in the Tax
Planning Process. It runs on a personal computer. Of
• course, Laser Pro was another one. (A loan documenta­
tion system utilizing a laser printer to produce free
Federal Reserve Bank of St. Louis

form documents.) When we in small banks talk about
the cost of compliance, th a t’s tremendously expensive.
So, if we can get our equipment and our data reference
in place, it’s going to save us a lot of problems when
we’re examined, and save us a lot of problems when we
have a consumer who seems to think he or she has been
treated unjustly in regards to Reg B or Reg Z or any of
the consumer regs that are in place.
Mr. Moore: I ’d like to go back to elaborate a little bit
on what LaRae said on the legislative issue. I have to
be quite frank in saying I don’t think a lot of the com­
munity banks see that as a benefit, but I think th a t’s
where, hopefully, this Community Council group and
the advisory board can somehow get the message
through to these people that ABA is a facility for the
legislative process. We’ve seen nothing in four years
and I think everybody is discouraged. It takes the
small community banker in a concentrated effort to
get his voice heard out there and, hopefully, we can
start to do a little better job. That, I think, would out­
weigh all these other things that we’ve talked about,
but the perception has to be turned around.
Mr. Kuchar: A good example of that was the withhold­
ing at source episode. Look at the jobs the financial in­
stitutions have done in relation to making the public
aware of what could happen and how that affected our
Congress. Sometimes, we think the ABA should be do­
ing our job for us and we shouldn’t be working directly
with our legislative people. That’s not right because
the legislative people are going to be listening to the
constituents and the people at home, not the national
associations, so to speak. They don’t want to listen to
them. I ’m sure they do to a certain degree, but if I call
my Congressman and give him my own opinion on how
I feel about certain legislation, he’s going to listen to
me. And, it’s a two-way street. When he needs informa­
tion, he should be able to come back to us and freely
ask for that information.

“...the interest in the legislative
issues. ABA brings them to the level
of the community banker and helps us
understand what’s out there in front
Of US.

—LaRae Orullian, Colorado

Ms. Orullian: One thing I always enjoyed was the pub­
lication, The Insider. We get a million things across
our desk but when I get that one I read it before I pass
it on to the “read in the future’’ file. (The Insider goes
only to members of the Community Bankers advisory
board and alumni.)
Mr. Holthus: About 12,000 of our more than 14,000
banks in this nation are community banks. There’s a
lot of clout there if we can ever get it organized!
Mr. Kuchar: Things have changed so significantly
from seven to eight years ago when we were so compla­
cent because everything fell into place according to a
neat little pattern. But we now have so many other
players in the market—Sears, Merrill Lynch, Dreyfuss
and many others are in the business of banking any­
more. I think we’re going to have to stand up and be
counted in terms of where we should be in that overall
{To be continued next month).
Northwestern Banker, April, 1987


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Banker, April, 1987
Federal Reserve Bank of St. Louis




R.S. Howard, chmn., Oskaloosa
N. Milner, exec, v.p., Des Moines

Improved Attendance and Attitude
Noted at Iowa Ag Credit Conference
ÇÇI I I HAT a difference a year
W makes” could well be the
theme for the 1987 Ag Credit Con­
ference hosted on the Iowa State
University campus at Ames last
month by the Agriculture Commit­
tee of the Iowa Bankers Associa­
tion. It was a real “Triple AAA”
meeting because:
• Attendance of 390 was up 15%
over the meeting one year ago;
• Aggressiveness in dealing with
the competition and opportunities
typified the program, and
• Attitudes of banker registrants
definitely were upbeat—a distinct
turnaround from a year earlier. A
number of them reported increased
interest in and actual land sales
above 4th quarter ’86 farm land
IBA Ag Committee Chairman
Leslie Miller, assistant vice presi­
dent and ag loan officer at Davis
County Savings Bank in Bloomfield
and her committee of 19 bankers as­
sembled a two-day program that
was right on target for the needs of
ag bankers today.
Chapter 12 Seminar
The first general session Monday

afternoon began with a two-hour
session titled “ Is Chapter 12 Work­
in g ? ” conducted by R ichard
Stageman and Tom Flynn, two pro­
minent Des Moines attorneys na­
tionally recognized for their profes­
sional knowledge of bankruptcy pro­
ceedings. Judge Stageman retired
last fall as U.S. Bankruptcy Judge
for southern Iowa and now is coun­
sel regarding bankruptcy for Davis,
Hockenberg, Wine, Brown, Koehn &
Shors law firm. Mr. Flynn is a part­
ner in the Wimer, Hudson, Flynn
and Neugent firm.
Judge Stageman reviewed numer­
ous details of the Chapter 12 Law,
pointing out the many pitfalls in it,
but also stressing the things that
lenders can do “to turn events to
their favor” in a Chapter 12 . He
noted that “40% of farm debt today
is uncollateralized—about $20 bil­
lion—and practically all of it is held
by farmers who qualify for 12 .
That’s spooky!” Judge Stageman
said the Congress tried to fashion
Chapter 12 as a Chapter 13 type bill,
“yet, they’ve used this very simple
process to handle a very complex

He pointed out that “the farm
debtor remains debtor-in-possession
under a 12 , but he can be removed
for fraud, incompetency or misman­
agement. In some cases, if you know
that situation and can prove it, then
it’s a good step to take.” Judge
Stageman advised bankers to make
every effort to try for a prebank­
ruptcy workout for “it’s far better
than resorting to the Bankruptcy
Code.” He suggested bankers “keep
on top of your loans. Keep on top of
your collateral. Stay out of farming
decisions. Use appraisers.
“If the matter then goes in a 12 ,
consider a motion to dismiss—if it’s
not going to work, dismiss it! Make
sure there are no previous filings
within 180 days. Consider an inves­
tigation by the trustee if it’s a shaky
or shady operation. Move to li­
quidate. Move against a co-debtor.
I t’s the debtor’s responsibility to
prove a plan will work and you can
challenge th at.”
Judge Stageman concluded by
stating, “ I t ’s my considered opinion
that in 80% of the cases, if you want
to spend some money you can defeat
Chapter 12 s. I t’s not so easy for deb­
tors as some would make it seem.”
Mr. Flynn provided a 13-page out­
line to registrants, then reviewed
some of those highlights in his part
of the Chapter 12 seminar. He re­
ported that as of the date of his talk,
370 Chapter 12 s had been filed—170
of them in Nebraska, 130 in Iowa
and 70 in all other states. Several
points he stressed in his talk related
to Adequate Protection and the need
for bankers and their attorneys to be
totally familiar with those provi­
sions; the Plan of Reorganization
and his recommendations; filing on
time to protect creditor’s rights.
Judge Stageman and Mr. Flynn
then conducted an extended ques­
tion and answer session. In respond-

GENERAL SESSION SPEAKERS. Left—Tom Flynn, Des Moines atty; Leslie Miller, chmn. IBA Ag committee, and Judge Richard Stageman,
Des Moines atty. RIGHT—Dr. Michael Boehlje, center, visits with interested bankers following his “ Credit Analysis” presentation.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987

Iowa News

WORKSHOPS. Left—Paul Peterson, a.v.p., Maquoketa State, a member of IBA Ag Comm., introduced Jo Ann Merfeld, a.v.p., Citizens Natl.,
Charles City. RIGHT—Regulators panel consisted of: Rodney Dixon, Office of Comptroller of the Currency; Jay Gruenwald, field office
superv., Iowa dept, of bkg., and Gary Liess, sr. fid. exam., FDIC.

ing to one question, Mr. Flynn said
“An ISU study shows that those
leveraged 70% or more can’t make
it. Chapter 12s are all 100% lever­

lot of talk is used informally trying
to get things patched up, as in a
marriage, but it really needs the help
of a divorce counselor to pull the
parties together by outlining the
areas of agreement and disagree­
Scams Abound!
ment. The same can be said for
The final presentation of the first bank/borrower mediation. ’’
session was given by Tam Ormiston,
Second Session
assistant in the Iowa Attorney Gen­
president of Pulis &
eral’s Office, who described three
Ariz., used
trains of events that have been pre­
valent in “scams” since 1981; 1. his “Negotiating for Success” talk
Loan finding, always with advance at the second general session to en­
fees for “placing” the loan. 2. Bogus courage bankers to abandon the
“power negotiation” posture for one
lawsuits. 3. Bogus land transfers.
He attributed the entry of loan that seeks “common goal negotia­
finders and their “scam” fees to the tion,” thus leading to better ac­
fact that after 1981 loans were more cepted solutions by both parties.
Dr. Michael Boehlje, head of the
difficult to obtain, and lenders
became wary of borrowers who were Department of Agriculture and Ap­
using borrowed money for unwise plied Econimics at the University of
purchases. “ In stepped loan finders Minnesota, Minneapolis, returned to
who portrayed themselves as caring, familiar surroundings on the ISU
concerned, quiet people with money campus where he was an integral
they could get in 30 to 90 days from part of the teaching staff as Ag Eco­
overseas connections. No fees, just nomics professor for many years.
some cash start-up costs. It sounds Dr. Boehlje gave two outstanding
bad to us, but many have fallen for presentations to the ag bankers—
the same pitch, including bankers, “Bringing New Business to the
Bank” for the general session, and
lawyers, farmers and doctors.”
He described the bogus lawsuits “Close-Up of Credit Analysis” at
as ones “going back to archaic, Eli­ one of the four concurrent work­
zabethan divine laws. Farmers have shops. Dr. Boehlje’s excellent dis­
been paying $500 to $5,000 a pop. cussions will be presented as indivi­
These false lawsuits can cloud titles dual features in following issues.
Other Workshops
and create problems between the
In her workshop on “Policing
farmer and his lender.” On the bogus
land transfers, Mr. Ormiston said FmHA Guaranteed Loan Program
one Nassau-based company charged Procedures,” Jo Ann Merfeld, assis­
tant vice president at Citizens Na­
$25,000 to set up each one.
In relating to the Chapter 12 dis­ tional Bank, Charles City, discussed
cussion, Mr. Ormiston urged bank­ the methods used by that bank to
ers to utilize advance mediation to improve its handling of FmHA
the fullest to avoid bankruptcy fil­ loans. Her goal was to foster greater
ings. He urged bankers to use the cooperation between banks and
state’s official mediation service. “A FmHA offices, relying on the suc­

Banker, April, 1987
Federal Reserve Bank of St. Louis

cessful experience she has had at
Citizens National. “Bankers must
do their documentation and loan ser­
vicing well throughout the entire life
of the loan,” she stressed, and you
will find then that there will be little
or no difficulty in gaining loan ap­
proval, or agreement on a workout.”
She recommended these steps:
“ 1. Work closely with local
FmHA offices to get any procedural
or any specific case problems
worked out.
“ 2 . Attend the county meetings
where loans are presented for appro­
val. The presence of the banker is
helpful. Explain the loan situation;
answer questions; help committee­
men understand the farm operation,
what caused the problem and why it
will improve with this particular
Relating her own personal experi­
ence, Jo Ann said, “I wanted the
local office to be able to trust me. I
wanted to give them a single contact
in the bank for consistency in pro­
cedures and understanding. I
wanted to develop trust and confi­
dence between us so we could have a
good working relationship to the
benefit of our customers. Knowing
each other better makes it easier, for
example, to take a 90% guaranteed
loan that can’t be approved at that
level and perhaps working out an ar­
rangement for an 85% or an 80%
“After working through many of
these loans with FmHA, we’ve
changed some of our own bank’s
loan procedures and forms; we’re
more analytical in all of our loan ac­
tivities. I think we are better lenders
because of this experience.”
A third workshop dealt with “The












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Northwestern Banker, April, 1987


Iowa News

Profits and Pitfalls of Alternative
Crops,” presented by Dan Cooper,
state horticulturist with the Iowa
Department of Agriculture, and
Mike Tramontina, deputy to State
Treasurer Michael Fitzgerald. Mr.
Cooper explored the several alterna­
tive crops that hold promise for
Iowa, and Mr. Tramontina gave de­
tails of the state-backed incentive
programs that banks can tap to offer
customers low-interest money to
produce alternative crops. Details of
an interview with Mr. Tramontina
and Mr. Fitzgerald will be published
in a following issue.
“How Tough Is the Current Regu­
latory Environment” was a topic
covered by the three-man panel of
Jay Gruenwald, Iowa banking de­
partment field office supervisor;
Gary Liess, FDIC senior field
examiner from the Urbandale office,
and Rodney Dixon, national bank
examiner with the Comptroller of
the Currency.
The interest in this workshop was
evidenced by the fact that 90 were in
attendance for the first presentation
and 110 banks took part when it was
given the second time. Bankers were
concerned about whether regulators
would be as structured in their ap­
proach as in the past, or if they
would be more willing to work with
banks on a plan the bank had de­
vised to overcome any problems. It
appeared that the three regulators
agreed they would certainly prefer
to work with banks to help them
overcome any particular loan prob­
lem or series of loans.
Mr. Gruenwald said “our job is to
analyze the assets and how well
management is accomplishing that,
and to assist in whatever way we
can for the bank to correct a problem
or return to profitability.” Mr.
Gruenwald is a third generation
Iowa department examiner. His
grandfather, Fred, and his father,
Jim, preceded him on the depart­
ment staff and both later became of­
ficers at Davenport Bank and Trust
A major point stressed by all
three regulators was the highly im­
portant need for thorough documen­
tation. Another was the importance
of setting up a bank’s own “watch”
list on its loans. The existence of
such a list, especially if it’s well pre­
pared and realistic, “gives exami­
ners a degree of confidence in the
banker” Mr. Gruenwald stated. The
FDIC and Comptroller stated how

Banker, April, 1987
Federal Reserve Bank of St. Louis

they review lines of credit, and how
they might differ from the approach
of the state banking department.
They all stressed that just because a
loan is on a “watch” list doesn’t
mean it will be classified.
One area of difference was on
handling of Other Real Estate. The
Iowa department goal, Mr. Gruen­
wald said, is to get O.R.E. downpriced to a realistic level as soon as
possible and sold out of the bank.
The FDIC and Comptroller look at
O.R.E. more as an income producing
asset and if it can get a 10 % return
then it will probably be OKd.
Overall, documentation in every
respect was recommended by all
three regulators. The tenor of their
presentations indicated a sincere
willingness to help banks work out
of their current problems whereever
possible. “One problem now,” Mr.
Gruenwald said, “is that banks have
done everything they’ve been asked
to do or had to do. They’ve basically
identified their problems, taken a lot
of charge-offs, and gotten their af­
fairs in better shape. But now, it’s
difficult for them to get good loans,
so their earnings are now also low.”
Those four workshops were each
presented twice during the after­
Third Session Speakers
On the concluding morning, Dr.
John Marten, the knowledgeable,
humorous staff economist of Farm
Journal Magazine, gave his eco­
nomic outlook for 1987, looking at
effects of the new Farm Bill and Tax
Bill on farm policies, as well as giv­
ing his marketing assessment of
what lies ahead.
Dr. Alan Tubbs, president of First
Central State Bank, DeWitt, and ex­
ecutive vice president, Maquoketa
State Bank, gave an update on
ABA’s “Transition in Rural Eco­
nomics” comprehensive study about
the future of agriculture and ag
banking. He noted the total debt
outstanding today—consumer, na­
tio n al and in te rn a tio n a l—and
stated, “considering all things, agri­
culture may have been way ahead of
the game by wringing out its prob­
lems earlier than these other play­
ers; so, agriculture may wind up in a
far better position.”
The “Transitions” study is avail­
able for a fee from ABA and helps
banks look at their strengths, their
competitive position, their ag mar­
kets, and determine where they
should position themselves, where

their niche in the ag business will be
in the future.
Concluding speaker Gary Maas, a
management consultant, gave his
“attitude adjustment” speech, “Mo­
tivating the Team During Changing
Steve Stahly, president of MASI,
Inc., was an added speaker to the
conference program. He outlined de­
tails of the Secondary Market pro­
gram that has been developed by
MASI and now is active in three
states—Iowa, North Dakota and
South Dakota. He said criteria for a
national secondary market are being
developed by the banking and life in­
surance industries, with input from
Farm Credit System. A Task Force
from ABA was meeting that week
with insurance companies and the
FCS to hammer out details. Mr.
Stahly said Federal Land Bank offi­
cials were quoted as saying that a
secondary market that didn’t in­
clude them would probably mean
the end of the Land Bank. “ I think
th a t’s a strong statement,” Mr.
Stahly commented.
ABA has hired an experienced
consultant for its staff from a Wash­
ington, D.C. firm. Mr. Stahly said
Jim Murray formerly was GNMA
counsel. This will shore up ABA’s
efforts to develop a secondary mar­
ket nationwide for ag loans. Mr.
Stahly said if such a market is de­
veloped it would aid MASI by offer­
ing further outlets for placement of
its loans.

Named in Marshalltown
Larry M. Hutchinson has been
named president and chief executive £
officer of Commercial State Bank of
Marshalltown. He replaces George
Taylor, who held the position since
1978. Mr. Taylor will continue as
chairman of the board.
Mr. Hutchinson has been presi­
dent and CEO of Hawkeye Bank &
Trust of Sioux City for the past six
years. He began his banking career
at Jasper County Savings Bank, •
Newton, in 1962.

Elected in Sumner


Richard H. Rath has been elected
president and chief executive officer
of The First National Bank of Sum­
ner. He joined the bank in 1985 as
senior vice president and succeeds •
Robert J. Arthaud.


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The Kirk Gross Company
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Iowa News

LEFT—Addressing marketing issues during a panel discussion were, from left: IBA Pres. Russell Howard, chmn., Mahaska Inv. Co., Oskaloosa; Tony Payne, pres. & chmn., First Natl., Council Bluffs; Henry Royer, pres. & chmn., Merchants Natl., Cedar Rapids, and Mick Guttau,
pres. & chmn., Treynor State. RIGHT—Participants in this year’s marketing conference included, from left: Michael Thompson, mktg. com­
mittee chmn. IBA, and v.p., Citizens State, Clarinda; Dick Holthaus, mktg. dir., IBA, and Gary Raddon, pres.,, Raddon Financial Group,

IBA Marketing Conference:
Becoming the Best of Iowa
Associate Editor
HE sight of 150 bankers in “Best
of Iowa” T-shirts could be wit­
nessed by visitors to the Hotel Fort
Des Moines during this year’s Iowa
Bankers Association Marketing
Conference, held March 3-5. The
T-shirts reflected an almost playful
spirit prevalent during the meeting,
as the attendees enjoyed a very posi­
tive and upbeat series of presenters.
In his introductory remarks, IBA
M arketing Committee chairman
Michael Thompson, vice president
of Citizens State Bank in Clarinda,
explained the conference was de­
signed to offer bankers “hands-on
insights and user-friendly materi­
als.” He stated the mission of mar­
keting officers is to make both their
banks and their communities more
successful, and the conference would
help them do so in a most practical
Gary Raddon, president, Raddon
Financial group, Chicago, gave the
first presentation, “Product Plan­
ning: What Needs to Be Done?” He
explained that banks typically set
marketing goals first and then try to
force results from the market, when
they would be better off studying
the market first and then determin­
ing the way to reach their share.
Mr. Raddon emphasized that the
most cost-effective marketing ap­
proach is to cross-sell existing pro­
ducts to existing customers. “ A new

Northwestern Banker, April, 1987
Federal Reserve Bank of St. Louis


Associate Publisher

product is a cop-out many times,” he
said. “You can do a better job with
existing products.” The role of mar­
keting is “creating a demand where
no demand exists,” educating custo­
mers to see their needs for the pro­
ducts you offer.
He encouraged use of focus
groups with employees and con­
sumer surveys with customers in
order to evaluate your bank’s
strengths and weaknesses. By
analyzing the market attractiveness
and competitive strength of pro­
ducts, banks can invest their re­
sources to increase the number of
products which are rated well.
One of the best ways to know
your market, he said, is to establish
a “householded data base,” a central
computer file grouped by house­
holds. Product development and
cross-selling can be greatly assisted
by such records.
Kateri Schmerler, assistant vice
president of First Bank System, St.
Paul, spoke on “Service Quality
from the Customer’s Perspective.”
Emphasizing the importance of ser­
vice, she stated, “The customer sees
your people and not your products
as the competitive edge.” Because
the high quality of your service
must be consistent, the marketing
officer must be sure the network is
working, and both sales and service
are aiming toward the same consis­

tent excellence.
Ms. Schmerler gave the following
steps for implementing quality ser­
vice by your staff: 1) Describe the
results you are looking for and how
you want to achieve them, particularly through job descriptions. 2 )
Provide consequences—what hap­
pens if staff members do or don’t
perform. 3) Provide good role models
and be sure they receive the rewards
they deserve. 4) Sell to your custo­
Ms. Schmerler summed up her re­
marks on good service with the
statement that it is “easy to identify—tough to deliver—but critical.”
Noon hour festivities on Tuesday
included a presentation on the cen­
tennial bank being built at Living
History Farms, a luncheon, and a
centennial celebration with cake and
ice cream.
The afternoon session featured
concurrent workshops. Mike Moebs,
president of G.M. Moebs & Associates, Lincolnwood, 111., spoke on
“Bottom Line Pricing”; Jeannette
Ellington, assistant vice president,
IBIS, spoke on “Annuities: Are
These Tax-Saving Plans Right for
Your Bank?”; and Don Uker, profes­
sional media consultant, Denison,
spoke on “Effective Use of Direct
Mail Techniques.” Also offered were
presentations on successful marketing campaigns at Grundy Na-









tional Bank, Grundy Center; Treynor State Bank, Treynor; First
Bank, West Des Moines; First Se­
curity Bank & Trust Company,
Charles City; Maquoketa State
Bank, Maquoketa, and Jasper Coun­
ty Savings Bank, Newton.
“What We Want Out of Market­
ing’’ was the theme of a panel
moderated by Russell S. Howard,
IB A president, and featuring Mick
Guttau, president and chairman,
Treynor State Bank; Tony Payne,
chairman, president and CEO of
First National Bank, Council Bluffs,
and Henry Royer, chairman, presi­
dent and CEO of Merchants Na­
tional Bank, Cedar Rapids.
Mr. Guttau calls marketing “a
team concept.’’ He encourages cus­
tomer service and a positive sales at­
titude among employees, and offers
employees incentives. “Our goal is
to offer one-stop financial service,”
and in doing so, he said, “we will re­
tain current customers and increase
our bank’s market share.”
Mr. Payne, who has taken his
bank from a problem bank to a fi­
nancial institution that has posted
record earnings for the past three
years, calls the banking profession
“a bottom line business that should
offer basic services priced effective­
ly offering a good return.” One way
in which Mr. Payne’s bank accom­
plishes its goals is through a unique
officer calling program.
“The bank you’re in is as good as
your community,” said Mr. Royer,
whose marketing philosophy is to
“create and keep a customer.” To do
this, he said, “there must be a vi­
sion,” which includes “service to
your customers, taking care of em­
ployees and showing a profit for the

board of directors.” He emphasized
that this program can work and cau­
tioned, “Never let an employee take
their eyes off of that vision.”
The Best of Iowa Awards Dinner
and Presentation was held Tuesday
evening. Winners are listed at the
conclusion of this article.
T-shirts were required attire Wed­
nesday morning, when the session
opened with exercise and a presenta­
tion by health and physical educa­
tion instructor Beth Kirkpatick of
Psychologist, educator and con­
sultant Dr. Charlene Bell gave an in­
spiring talk entitled “A Company
Called You.” Comparing the indivi­
dual to the corporation, Dr. Bell re­
marked, “You cannot market your
bank any better than you market
yourself.” In her opinion, the answer
to an unsatisfactory situation is
usually to change yourself—your at­
titudes, your feelings and your
behavior. The source of strength for
doing so lies in your self-worth,
which Dr. Bell declared is a gift, a
fact in which the successful person
Peter Vergis, president of Sales
Earnings Group, Inc. of Greenlawn,
N.Y., told attendees of an excellent
example of quality products and ser­
vices in his talk, “McDonald’s and
Banking.” He credited the success
of that organization to the standar­
dization of operations throughout
their 900 restaurants. The McDon­
ald’s philosophy can be broken down
into these principles: 1 ) define jobs;
2 ) structure the organization; 3 )
coach your staff, and 4) be consis­
McDonald’s approach to market­
ing emphasizes cross-selling, stan-

Iowa News
dard appearance, consistent image,
local promotion and community par­
ticipation. Mr. Vergis declared the
dedication to excellence exhibited
by McDonald’s can be translated
into any bank’s circumstances. To
prove the principles work anywhere,
he showed slides of a model McDon­
ald’s which attendees discovered at
the close to be located in the heart of
a decaying neighborhood in Harlem.
“Creating a Sales Culture” was
the theme of the presentation by
George Morvis, president of Finan­
cial Shares Corporation in Chicago.
He reiterated the starting point of
the conference originally made by
Gary Raddon when he said, “Mar­
kets make businesses, businesses do
not make markets.” He emphasized
the importance of continually scan­
ning the market and keeping your
demographics in mind.
Mr. Morvis defined sales manage­
ment as “the management of exist­
ing resources to maintain sales at a
profit.” He considered this area to
be as important an element of mar­
keting as advertising, and chastised
banks for having sales training but
no specific sales manager.
He listed several points as essen­
tial in developing a successful sales
system. First, build a marketing­
conscious attitude into your organi­
zational structure. Have a sales plan
with products geared toward what
the market wants. Have a definite
training and development plan.
Keep performance in mind—job de­
scriptions, standards, target, re­
wards and compensations. Last,
integrate your support systems;
that is, back up advertising with ser­
Attendees left the Marketing Con-

LEFT—Hosting the afternoon marketing showcase workshops were, from left: Jeanette M. Ellington, a.v.p., IBIS, Inc., Des Moines, and
Mike Moebs, pres., G.M. Moebs & Assoc., Lincolnwood, III. RIGHT—Morning speakers included, from left: Peter Vergis, pres., Sales Earn­
ings Group, Inc., Greenlawn, N.Y., and Dr. Charlene Bell, psychologist and business consultant, Des Moines.
Federal Reserve Bank of St. Louis

Northwestern Banker, April, 1987


Iowa News

we««;«««? •>;
■ H a iK a

LEFT—Billed as the “ eye opener of all eye openers” the 1987 Marketing Committee demonstrates its “ stuff” by doing the “ marketing #
shuffle.” RIGHT—Kateri Schmerler, a.v.p., First Bank, St. Paul, spoke on service quality to customers.

ference with plenty of practical ideas
for improving the sales and service
at their banks, thus making them, as
the T-shirts expressed, “The Best of

“Best of Iowa” Awards

First Place: Peoples State Bank, Mis­
souri Valley; West Bank, West Des
Moines; First National Bank of West
Des Moines; Mahaska State Bank, Oskaloosa.
Merit Award: Iowa Savings Bank, Coon
Rapids; First Interstate Bank of Kalona; Peoples Trust & Savings Bank, Indianola; Bankers Trust, Des Moines;
Security Bank, Marshalltown.

First Place: Bankers Trust, Des
Moines; Peoples Trust & Savings Bank,
Merit Award: Davenport Bank & Trust;
Iowa State Bank, Des Moines.

First Place: Maquoketa State Bank;
The Grundy National Bank, Grundy

Center; The National Bank of Waterloo;
Treynor State Bank.
Merit Award: Davenport Bank & Trust
(2); First Bank, Davenport; South Story
Bank & Trust, Slater; Iowa State Bank,
Products & Services

First Place: Bankers Trust, Des
Moines; The Grundy National Bank,
Grundy Center; Treynor State Bank.
Merit Award: First Interstate Bank of
Kalona; Maquoketa State Bank; Peo­
ples Trust & Savings Bank, Indianola;
Security Bank, Marshalltown; Security
National Bank, Sioux City (2); The
Grundy National Bank, Grundy Center.

First Place: American Trust & Savings
Bank, Dubuque; First Interstate, Des
Moines; First Interstate, Kalona; Ma­
quoketa State Bank; Pocahontas State
Merit Award: First Bank, Davenport;
National Bank of Iowa, Denison; Peo­
ples Trust & Savings Bank, Indianola;
Merchants National Bank, Cedar
Rapids; Perry State Bank; Grundy Na­
tional Bank, Grundy Center.

were judged on the basis of creative
excellence and grouped by size.
The awards were accepted by
The National Bank of Waterloo Greg Stibal, marketing director at
won three awards in the Iowa Bank­ the bank, and Frank Cooper, vice
ers Association’s “Best of Iowa’’ president and manager of Colle &
marketing and advertising competi­ McVoy Advertising.
The bank won first place on its an­
nual report, first place for radio and Elected in Washington
The National Bank of Washing­
a merit award for television for its
“Build On Our Strength’’ campaign. ton has announced the election of
The TV campaign also received first Bruce Jordan, Dale Miller and Dale
place in the Addy awards competi­ Roberts to vice president and Craig
Caldwell to assistant vice president.
tion in Cedar Rapids.
140 applicants entered the “Best All four have been with the bank a
of Iowa” competition, and entries number of years and have primary

Waterloo Bank Wins
Marketing Awards

Banker, April, 1987
Federal Reserve Bank of St. Louis

Community Relations

First Place: First National Bank of ^
West Des Moines; First Security Bank w
& Trust Co., Charles City; Peoples
Bank & Trust, Waterloo; Treynor State
Merit Award: First National Bank, Fair- £
field; Jasper County Savings Bank,
Newton; Merchants National Bank,
Cedar Rapids.

First Place: Merchants National Bank, ^
Cedar Rapids.
Merit Award: Council Bluffs Savings

First Place: First Bank, Davenport; Mer- £
chants National Bank, Cedar Rapids;
State Bank & Trust, Council Bluffs.
Merit Award: State Bank & Trust, Coun­
cil Bluffs; National Bank of Waterloo.


First Place: First Bank, Davenport;
Iowa State Savings Bank, Clinton; Na­
tional Bank of Waterloo.
Merit Award: Mahaska State Bank,
Oskaloosa; Merchants National Bank, #
Cedar Rapids.

responsibilities in loan administra- ^

Added in Sioux Center
David E. Ulrickson has been em­
ployed by The First National Bank
of Sioux Center as an agricultural
loan officer. In the past he has been
involved in a variety of lending func­
tions with the Production Credit As­
sociation at Brookings and Watertown and with the Farmers Home
A dm inistration at W atertow n,
Pierre and Phillip, all in South Da­
kota. He was most recently em­
ployed as a farm credit analyst with
the FHA at Sibley, Iowa.




Iowa News

Promoted in Dubuque
At Dubuque Bank and Trust
Company, Lynn S. Fuller has been
promoted to vice
chairman of the
board. He joined
th e b a n k 22
years ago and
previously held
the positions of
p re sid en t and
chief executive
Lynn B. FulLs , FULLER
ler has been pro­
moted to president and CEO. He
previously served as executive vice
president and COO, and has been
with the bank since 1971.





Dubuque Bank and Trust Com^ pany has announced the promotion
of Mary Lou Fuller to assistant vice
president, director of sales, and Paul
J. Heacock to trust investment offi­
cer. In her position Ms. Fuller has
0 responsibility for management of
the financial service counselor group
at all DB&T locations. Mr. Heacock
will be involved in trust equity in­

Patricia A. West has been named
financial services officer. She will
supervise the main bank’s financial
service departm ent and other
customer relation services. She
joined Davenport Bank in 1985.
Larry E. Makoben has joined the
bank as commercial banking officer.
He has 24 years of banking experi­
ence in the Quad Cities and Chicago.
Federal Reserve Bank of St. Louis


Changes Told in Dubuque
American Trust and Savings
Bank, Dubuque, has announced the
election of Ronald Mueller to second
vice president and personnel officer.
Mr. Mueller joined the bank in 1970
and has responsibility for the bank’s
personnel administration area.
Donald T. Beresford has been
elected second vice president and
computer services officer. He joined
the bank in 1956 and has respon­
sibility for the computer services
Changes Told in Davenport
In addition, Therese Kluesner has
Staff changes were recently an­
nounced at Davenport Bank and been appointed to real estate loan of­
Trust Company.
ficer, and Dennis George to credit of­
M ich ael J .
Powers has been
named first vice
president of the
United Bank and Trust of Ames
loan division. He
have been included in the
will continue to
Banks in Iowa’’ chart in
head the install­
last month’s issue. United Bank and
ment loan de­
Trust ranks as the 34th largest bank
partm ent. Mr.
Iowa with 1986 year-end deposits
Powers joined
of $124,005,000 and net loans of
the bank in 1972.
$73,141,000. The 1985 year-end fi­
gures were deposits of $107,455,000
and net loans of $70,514,000, when
United Bank and Trust was the 40th
largest in Iowa.
President Larry Wenzl reported
positive growth throughout the
bank resulting from the merger just
two years ago of Union Story Trust
and Savings Bank and University
Bank & Trust, both of Ames, to
form United Bank and Trust.
Other promotions announced are:
Richard K. Spautz, vice president,
senior consumer loan officer; Holly
Piper, assistant vice president and
branch manager; Michael Lampo,
assistant vice president/agricultural
lending; Steven Krogmeier, assis­
tan t vice president/agricultural
lending, and Julie Shanahan, teller
operations/security officer.

1987 Iowa Group Meetings



May 4
May 5
May 6
May 7
May 18
May 19
May 20
May 21

Cedar Rapids
Des Moines
Council Bluffs
Fort Dodge
Clear Lake

Northwestern Banker, April, 1987


Iowa News

Changes Announced
in Indianola

the first manager of the West Roads

James R. Davies has retired from
Peoples Trust & Savings Bank, In­
d ia n o la .
joined the bank
in 1952 and
served as its
president from
1984 to 1986. He
was also presi­
dent of Farmers
Credit Corp. and
chairman of the
board of Peoples
Co. of Indianola.
A graduate of Iowa State Univer­
sity with an agriculture major, Mr.
Davies was active in the agriculture

Appointed in Cedar Rapids
Daniel R. Costello has been ap­
pointed vice president—consumer
lending at City
National Bank,
Cedar Rapids.
He previously
served as vice
president at Per­
petual Savings
& Loan. Prior to
that he was as­
sistant vice pres­
ident at Farmers
State Bank in
Marion, and district manager at
Commercial Credit in Cedar Rapids.



moted. Lucia Ludolph has been ad­
vanced to managing officer of Cross­
roads Drive-In branch of the bank.
She joined the bank in 1968 and
served as assistant manager/supervisor of the National Plaza branch
before moving to the Crossroads
location in early 1986. Chuck Yagla
has been promoted to data process­
ing officer. He joined the bank in
1983 as a management trainee and
Promoted in Iowa City
became data processing marketing
Iowa State Bank & Trust Com­ representative in 1985.
pany, Iowa City, has announced
Promoted in Clear Lake
three promotions.
Richard D. Smith was promoted
The Clear Lake Bank and Trust
to senior vice president—computer Company recently announced the
services. He has been with the bank promotions of Gary R. Peterson to
since 1970 in that department. assistant vice president/installment
Steven A. Nath was advanced to loans, and Jane Humphrey to assis­
vice president and controller. He has tant cashier/installment loans.
Bob Downing has been elected held several positions in the ac­
Mr. Peterson came to the bank in
chairman of the board at Peoples counting department since joining 1979 from a position as assistant
Trust. He has been a director since the bank in 1972. Kristin E. Sum- manager of O’Dea Financial Ser­
1971. Mr. Downing is president of merwill has been promoted to sec­ vices. He also handles student loans
Downing Construction Inc. and Ap­ ond vice president. She has been re­ and retirement accounts.
sponsible for the bank’s marketing
ple Tree Inn Company.
program since joining the bank in

Promoted in Pocahontas
The Pocahontas State Bank
board of directors has announced
th a t C h arles
Bloomcamp has
been promoted
to vice president
of the bank. He
Wayne Vander Tuig has joined will retain his ti­
the staff of Peoples Trust as cashier. tle and responsi­
He previously was employed by the bilities as cash­
National Bank of Waterloo. T.J. ier. Mr. BloomNicholls, senior vice president as camp came to
well as cashier and auditor, will the bank eight
become a full-time auditor. He h^s years ago from
been with the bank since 1949, and the Iowa Department of Banking.
also has been secretary of Peoples Prior to that, he was employed at
Bank and PT&SBancorp and secre­ LeMars Saving Bank.
tary-treasurer of Peoples Company
of Indianola. Kim Tierney Keller,
assistant vice president, has been Advanced in Waterloo
At The National Bank of Water­
elected trust officer. She has been
with the bank since 1978 and was loo, two officers have been pro­
Banker, April, 1987
Federal Reserve Bank of St. Louis



Ms. Humphrey joined the bank in
1984. In addition to her secretarial
duties, she is responsible for loan ad­
ministration and the student loan

Added in Somers
Miles W. McCubbin has joined
Somers Savings Bank, Somers. His
responsibilities will be in consumer
relations and services, insurance
sales, and promotion of new and
existing products and services. He
previously worked for Titonka Sav­
ings Bank.

Iowa News

Shareholders OK Hawkeye Debt Plan
AW KEYE B ancorporation
gained overwhelming approval
of shareholders last month for its


Mr. Dunlap stated in February
that 10 Hawkeye banks qualify for
the federal regulatory capital for­
bearance program. Three banks
have been approved for that pro­
gram —Citizens N ational Bank,
Boone; First National Bank, Clin­
ton, and State Bank and Trust,
Council Bluffs. Applications are
pending for capital forbearance for
Hawkeye Bank and Trust, Burling­
ton, and Commercial State Bank,

and the possibility they could even­
tually own 80 percent of the firm.
The extent of that creditor owner­
previously announced debt restruc­ ship is contingent upon Hawkeye
turing agreement with Hawkeye’s paying off $69.9 million in debt plus
principal creditors. Shareholders interest in eight years. Paul Dunlap,
also approved a proposal to amend Hawkeye chairman and founder,
and restate the articles of incorpora­ said his company “has no intention
tion that will allow implementation to continue that payment schedule”
of that agreement.
because he believes Hawkeye will be
Hawkeye issued 2,690,877 shares profitable by that time and the debt
of preference stock to its institu­ will be refinanced.
Advance time to a degree has
tional creditors in payment of $32.3
million of restructured indebted­ been bought by Hawkeye through Promoted in Mo. Valley
ness. The new preference shares, the sale of 10 of its banks and four
At Peoples State Bank, Missouri
which are convertible into common subsidiaries, thus accumulating Valley, Dale Ward has been named
stock on a share-for-share basis at enough cash to make necessary pay­ president. He was formerly the ad­
the option of the holders at any ments through 1988. A total of 17 of ministrative assistant to the CEO.
time, represent in the aggregate 25 Hawkeye’s 36 banks have been put
percent of the equity of Hawkeye on up for sale.
Hawkeye has another fight on its
a fully diluted basis.
Hawkeye also issued a total of hands at this time in connection
233,983 shares of common stock in with the recent failure of its State
exchange for 14,766 shares of pre­ Bank of Allison. The Federal Re­
ferred stock upon completion of a serve Board contends that Hawkeye
previously announced exchange of­ should have used the full resources
fer to the holders of preferred. As a of the holding company to maintain
result of these actions, Hawkeye has the viability of the failed bank in­
outstanding 6,922,949 shares of stead of letting it fail and having the
common stock, 155,009 shares of FDIC absorb any losses that might
preferred stock which are conver­ ensue. That question has not yet
tible into 1,149,681 shares of com­ been resolved and reportedly could
mon stock, and the 2,690,877 shares impact the creditor agreement.
of preference stock convertible into
According to documents fur­
a like number of common shares. nished by Hawkeye Bancorporation,
Total common stock equivalents are there are three major creditors owed
$16 million to $26.5 million, and 10
The agreement and subsequent other creditors owed amounts vary­
shareholder approval gives creditors ing from $1.5 million to $8.5 million,
25 percent ownership of Hawkeye, as shown in the accompanying chart.

First National Bank of Minneapolis
Continental Illinois National Bank and
Trust Co.
Credit Suisse
The Bank of New York as Trustee
for 7th and 8th Intermediate Series
of Corporate Income Fund
The Bank of New York as Trustee
for 32d-36th Monthly Payment Series
of Corporate Income Fund
Connecticut General Life Insurance Co.
Equitable Life Assurance Society of the
United States
United of Omaha Life Insurance Co.
Liberty Life Insurance Co.
Mutual of Omaha Insurance Co.
Norwest Bank Des Moines
Bankers Trust Co.
The Morris Plan

Federal Reserve Bank of St. Louis

Principal Amount
of Restructured

of Restructured






In addition, former vice president
Charles Schumacher is now execu­
tive vice president, former cashier
James Schwertley is now vice presi­
dent and cashier, and Linda Hack,
former assistant cashier, is now also
a loan officer.

Promoted in Remsen








Dean R. Conrad has been pro­
moted to vice president and cashier
of the First Trust & Savings Bank,
Remsen. He has been with the bank
since 1980.

Promoted in Anita
The Anita State Bank of Anita
has announced the following promo­
tions: Curtis D. Peterson to vice
president, Terry Spry to loan officer,
and La Veda M. Pine to director.
Northwestern Banker, April, 1987


Iow a News

Economic Summit Meeting Held
Associate Publisher
ONALD P. Jacobs, dean of the
J.L. Kellogg Graduate School of
Management at
N o rth w e s te rn
spoke in Des
M oines
la s t
m onth during
the Econom ic
Summit M eet­
ing sponsored by
Bankers Trust
Company, held
a t th e
Moines Convention Center. Mr.
Jacobs spoke on the impact of inter­
national developments upon both
our domestic and midwestern econo­
mies. He was introduced by chair­
man of the Bankers Trust Executive
Committee John Ruan.
In addressing the international
scene, Mr. Jacobs pointed out that
there are no longer “many markets
that make up the world trade pic-

ture, but what we are seeing now is a
one market world, from the cars you
drive to the clothes that you wear.”
Mr. Jacobs said that Japan, one
of the world’s biggest exporters,
could now be faced with restriction
if the U.S. gets tough and drops its
image as a “paper tiger.’’ “We
haven’t pushed the Japanese
enough and they have taken advan­
tage of the U.S. with trade restric­
tions,’’ he emphasized. Commenting
on the Japanese economy, Mr.
Jacobs added, “We have the disad­
vantage because we don’t have the
skill that they have had to learn
when we were the king of trade.’’ He
also pointed out how inexpensive
labor is in foreign countires like
Japan, but he cautioned, “I hope
American labor cost will always be
high because we can’t afford to com­
pete on a labor-per hour basis.’’
To be more competitive in the
world market we must “spend more
time and money on training and pre­
paring to compete,’’ he said. “ I see
the plant of the future as being high­
ly automated. We can compete with

Committed to
making your
bank stand
apart from the

foreign workers’ wages with a com- 0
puter-operated factory.”
In addressing the banking side of
world economics, Mr. Jacobs said he
doesn’t expect the “big bang” some
predict will happen, but does foresee 0
various mini-crises. “ I t ’s to no one’s
advantage to have the whole global
industry go bang,” he said.
He is, however, concerned about
the large foreign debt owed to 0
American financial institutions
which makes up some 7-10% of the
asset base of these money-center
banks. Mr. Jacobs stressed the need
for debtor nations to buy less an d 0
sell more.
“ It takes a long time for a market
to turn around. What we must first
do is see that the banking system is
saved, then work on making it bet- #
ter. The banking system will sur­
vive,” Mr. Jacobs concluded.

IBIS Seminars Announced
Iowa Bankers Insurance and Ser­
vices, Inc. has announced its sche­
dule for Continuing Education Semi- ^
nars in 1987. These seminars have 9
been approved by the Iowa Depart­
ment of Insurance for 10 hours of
Continuing Education Credits.
The spring seminars will be held ^
May 11 at the Carrollton Inn, Carroll; May 13 at Adventureland Inn,
Des Moines, and May 15 at the Red
Fox Inn, Waverly.
Fall sessions will be held October ^
12 at the Hilton Inn, Sioux City;
Oct. 14 at the Sheraton Inn, Cedar
Rapids, and Oct. 16 at Adventureland Inn, Des Moines.
Registration forms may be ob- 0
tained from Charlotte Kraai, IBIS,
104 E. Locust St., Des Moines, IA
50308, or call (515) 286-4395. Call
toll free 1-800-532-1423 in Iowa or
1-800-247-5065 out of state.

Bank Moves To Wapello
Iowa National Bank has received 0
approval from the Comptroller of
the Currency to move its headquar­
ters from Morning Sun to Wapello,
according to Richard H. Buenneke,
president, and Steven L. Jacobson, 0
executive vice president.
Construction of a new building,
located on Highway 61 in Wapello,
is underway. Morning Sun will con­
tinue as an office, offering full bank- #
ing services.
Banker, April, 1987
Federal Reserve Bank of St. Louis

concurred that loan demand is down
in smaller Iowa communities, saying
nions on branching and interstate “it’s difficullt to find opportunities
banking. He explained that state­ for credit.” Mr. Hildebrand noted,
wide branching has been a part of however, that “our Des Moines
North Carolina practically since the bank (Hawkeye) has loan demand
beginning of the industry in that that is broad-based among manufac­
state, so that is the system he’s ac­ turers, wholesalers and real estate.”
customed to working in. “Our state­ Responding to a question about why
wide network of branches has given Hawkeye’s loan demand is higher
us a strong capital base,” he pointed than some other institutions, Mr.
out. “We have one bank with 300 Hildebrand said, “Word gets around
branches in more than 120 cities and when you’re being aggressive and
that is true with us.”
Mr. Murray held other meetings
“We have had no bank failures in
North Carolina because statewide in Des Moines and the Missouri Val­
branching allows the main bank to ley Chapter area with RMA mem­
use its capital base more efficiently. bers.
Some branches, if they had been in­
dividual banks, would have failed.” Stock Sale Will Position
When pressed further for observa­
tions about the Iowa banking scene, Banks of Iowa for Future
Holmes Foster, president of
Mr. Murray stated, “Iowa has had
of Iowa, Inc., announced at
some problems in its banking busi­
headquarters last
ness and I would observe that it
would be better to strengthen your month that BofI sold 254,608 com­
business at home before going inter­ mon shares at $51.50 per share to a
state. From my own personal experi­ group of institutional investors
ence, I would be hard-pressed not to through a private placement. Mr.
recommend statewide branching. Foster said the holding company
Larger banks will do more for train­ also had reserved the right to sell
ing their people, setting standards privately up to an additional 133,
741 common shares at the same pur­
and operating more efficiently.”
Addressing the topic of commer­ chase price before March 28. The
cial lending itself, Mr. Murray said, Chicago Corporation acted as place­
in response to questions about debt ment agent with respect to this
levels and loan demand, “I think transaction.
Mr. Foster said Banks of Iowa of­
debt levels carried by many com­
feel the improving Iowa eco­
panies are unrealistically high. Some
that a turnaround from
are running at three times as much
debt as equity, which raises a red the depressed economy of the past
flag. That’s OK as long as cash flow several years has been reached and
is adequate, but that could alter “we decided to initiate this move so
that equity from the sale of this
Mr. Petersen and Mr. Hildebrand stock will allow us to be properly
positioned to take advantage of
some opportunities that should be
Iowa News

• RMA President Meets Iowa Press
OME EQUITY lending, state­
wide branching and interstate
banking were topics discussed by
>Robert Morris Associates President
Malcolm T. Murray, Jr., at a press
conference in Des Moines last
month. Mr. Murray is executive vice
president of First Union National
>Bank in Charlotte, N.C.
Hosting the breakfast press con­
ference were Roger D. Petersen,
chairman of the Iowa RMA Group,
and Thomas B. Hildebrand, immedi1 ate past chairman. Mr. Petersen is
vice president and senior loan officer
at First National Bank of West Des
Moines. Mr. Hildebrand, vice presi­
dent of Hawkeye Bank and Trust,
1 Des Moines, is now presient-elect of
the multi-state RMA Missouri Val­
ley Chapter. RMA is the 73-year old
national association of bank loan
and credit officers, the only banking
trade association that specializes in
commercial lending.
On the subject of commercial
banks’ rush to Home Equity Lend­
ing that results from the recent tax
law change which removed practical­
ly all consumer interest deductions
on federal tax forms except for home
mortgage lending, Mr. Murray said
banks, of course, “are very involved.
If done well, it will work just fine.
Make sure the people know the risks
involved. The same holds true for
banks; they need to know their risks
on a long-term basis. One thing
Home Equity Lending does is to re­
move the consideration for the pur­
pose of the loan.”
Mr. Murray was pressed by local
media representatives for his opi­

Elected in Knoxville
Robert Grote has been elected ex­
ecutive vice president and a director
of Community National Bank,
Knoxville. Steve Johnson has been
elected the bank’s assistant vice

Elected in Fort Madison

Roger D. Petersen, Thomas B. Hildebrand and Malcolm T. Murray, Jr.
Federal Reserve Bank of St. Louis

Douglas R. Hill has been elected
assistant vice president and cashier
of the Iowa State Bank in Fort Mad­
ison. He joins the bank from the
Community State Bank of Clarence,
where he was assistant cashier.
Northwestern Banker, April, 1987


Iow a News

International Trade Discussed
Associate Publisher

part, on increased exports of Iowamade products and services. To that
end, many public and private sector
XPANDING international trade programs are being developed in­
opportunities to Iowa com­ cluding the establishment of inter­
panies was the theme of a recently national trade centers in Des Moines
held luncheon hosted by First Inter­ and Cedar Rapids.”
First Interstate Bank Des Moines
state Bank Des Moines, N.A. The
featured guest speaker was Mr. Ken­ is the exclusive bank of the soon to
neth Rosenberg, president and CEO be completed International Trade
of First Interstate Trading Com­ Center of Iowa (ITCI). Two such cen­
pany, a subsidiary of First Inter­ ters—one in Des Moines, scheduled
for completion in May, and the other
state Bancorp, Los Angeles.
Discussing the potential for Iowa in Cedar Rapids, still pending final
in the international marketplace, approval—will offer both interna­
Mr. Rosenberg said, “We are have tional services and many non-interto serve the trade needs of the pros­ national services. Among the fea­
pects and customers in this trade tures at ITCI will be a video library
region.” Mr. Rosenberg went to de­ center, foreign visitors center, and a
fine an international trade customer: communications center.
Communications services at the
any size company engaged in export­
ing products; any major U.S. com­ center will include satellite commu­
pany with an extensive domestic nications, TWX, FAX, language
network, but little or no overseas translation, electronic mail, video
distribution; any major overseas production, and interactive video
company with little or no distribu­ conferencing. Also provided will be
tion here in the U.S.; any major travel arrangements, legal counsel
overseas trading company wishing and service, brokerage information,
to act as our correspondent; any im­ an international library and banking
porter or exporter who has the con­ services.
Through First Interstate Des
nections, but lacks the financing, or
any U.S. multinational company in Moines’ trade connections and the
need of our special services—counter new Iowa Trade Center, Iowa bank­
trade and trade requiring non-tradi- ers and Iowa companies will get the
assistance they need to compete in
tional financial arrangements.
Robert Millen, president and the intern atio n al m arketplace,
CEO, First Interstate Bank Des whether it be buying, selling, financ­
Moines, N.A., said, “The future suc­ ing or tra n sp o rtin g products
cess of Iowa’s economy depends, in anywhere in the world.


Iowa Investment Bankers
Schedule Annual Field Day
The Iowa Investment Bankers
Association has scheduled its An­
nual Field Day for May 13-14 in D es^
Moines. Early registrants will
gather Wednesday evening for din­
ner at the Embassy Club. The golf
tourney will be Thursday, May 14,
at Echo Valley Golf Club. Further ^
details are being sent to all members
in the near future.

Office Opens in Sioux City •
The Pioneer Bank of Sergeant
Bluff has opened a bank office at
Ninth and Pierce
Streets in down­
town Sioux City
under the man­
a g em e n t
Bruce M. Kolbe,
executive vice
president and di­
rector of the
The office will
be open Monday
through Friday from 9:00 a.m. to
5:00 p.m. Beginning its operations
January 12, the office is staffed by
Mr. Kolbe, Judy Rentel and Lisa
Mr. Kolbe has been employed in
banking management in Sioux City
for over 20 years.
A grand opening celebration was
held on February 5, complete with,
ribbon cutting ceremonies.

New Directors at Adel

HOSTING an afternoon luncheon on international trade opportunities were, from left:
Robert G. Millen, chmn., pres. & c.e.o., First Int., Des Moines; J. Daniel McGowan, v.p. mgr., inti, div., and keynote speaker, Kenneth Rosenberg, pres. & c.e.o., First Int. Trading
Co., a subsidiary of First Int. Bancorp, Los Angeles.
Banker, April, 1987
Federal Reserve Bank of St. Louis


The election of three additional
members of the board of directors at
Raccoon Valley State Bank in Adel
was announced last month. They
are: William Hess, president, Iowa £
Savings Bank, Coon Rapids; Sarah
Garst, DVM, West Des Moines, and
Howard Hall, executive vice presi­
dent, Raccoon Valley State Bank.
The Coon Rapids and Adel banks 0
are affiliated in the Garst/Chrystal
banking organization. Mr. Hess has
been president of the Coon Rapids
bank for three years and joined that
bank 10 years ago. Dr. Garst was #
opening her veterinary practice in
West Des Moines last month. Mr.
Hall joined the banking group last
fall after serving for many years as
deputy superintendent of banking in •
the Iowa department of banking.


Centennial nostalgia!

Vignettes of Banking
Editor’s Note: The Iowa Bankers Association observed the
100th Anniversary of its founding convention in September,
1986, and the IBA will complete its first 100 years of service
on July 26, 1987. A number of Iowa bankers who are mem­
bers of the IBA 50-Year Bankers Club responded to our invi­
tation to share with other readers some of their
reminiscences of earlier Iowa banking history. These vig­
nettes will be published in issues during the Centennial
Year. Veteran Iowa bankers who have special memories to
share, or others who have access to earlier banking events
and records that would be of interest to our readership, are
invited to send us their comments. This includes bankers
from other states whose stories tell of the earlier days and
growth of midwest banking.

By RICHARD E. TOOL, Hon. Director
Farmers & Merchants Savings Bk., Manchester, la.
(Entered banking in 1927)
HEN I FIRST became associated with
banking in Iowa, the industry was ap­
proaching one of its most trying times which was
culminated with the advent of the national “Bank
Holiday.” Today some people are disturbed by
the number of bank failures during the past two
to three years, but we who experienced the num­
ber of closings in the early ’30s know what distur­
bance really was.
Back in the early ’30s, banks were doing every­
thing they could think of to retain the deposits
they had rather than attract more, which 40 years
later would be the principal objective of the bank.
There was no attempt on the bank’s part to
become the “biggest fish in the pond.” The
bank’s primary interest was to take care of the
customers who had placed their confidence in
With the resources of the bank and its owners
gone, the basis for the customers’ confidence dis­
appeared. A different kind of confidence de­
veloped with the establishment of the FDIC (Fed­
eral Deposit Insurance Corporation). The deposit­
ing customer looked to the FDIC as insurance for
his deposits’ safety and gave less consideration to
the integrity and financial soundness of the bank
with which he selected to do business. In today’s

• Avoca, Council Bluffs
Banks Merge

atmosphere, as long as there is FDIC insurance
the customer seems to be more interested in
where he can get the most interest for his deposit,
which bank gives the most attractive premiums
and where he can get the most free service.
In looking at some differences in banking away
back when, compared to now, it seems to me that
in those earlier days, consideration of the bor­
rowers’ ability to pay was a greater determining
factor when a loan was made rather than reliance
on the value of the collateral. Evidence here-oflate indicates a complete reversal of those factors.
In the earlier days loans were made to the local
borrowers. Deposits originating outside the com­
munity were scrutinized carefully and not always
accepted. Operations were reasonably profitable
as costs of doing business, salaries and interest
payables included, were low. In the years that fol­
lowed, those deposits that were attracted by
higher interest rates, premiums, and what nots,
built in a cost factor that had to be met. Lower
quality loans with higher interest rates found
their way into the loan pouch and outside invest­
ments with potentially higher yields became
available. Brokered loans and brokered deposits
developed. Incomes were increased, but so were
the expenses. With the quality of the bank’s
assets, diminished losses became ever increasing­
ly higher.
Some changes have occurred, but the differ­
ences in some areas remain the same. In the early
’30s farm commodity prices were low. The condi­
tions then were very much the same as they are
today. Farm operators and farm owners were as
discouraged and distressed as they are now.
Some violent and unpleasant situations have
developed recently, just as there were violences
and unpleasantness in the ’30s. A few examples
include: the ‘penny’ sales; a judge being forceably
removed from his bench and threatened with
hanging during a mortgage foreclosure case;
farmers picketing the packing houses, dumping
milk in the road-side from the trucks on their way
to the dairies, and the rope around the banker’s
neck demanding the release of a chattel mortgage
following a ‘penny’ sale.
I wonder what new lessons are to be learned in
the operation of this business called banking? □

the sole stockholder of both banks.
Thomas D. Whitson, chairman
The Superintendent of Banking of and president of Council Bluffs Sav­
the State of Iowa and the FDIC ings Bank, said there will be few
• have given approval for the merger noticeable changes made, other than
of the Avoca State Bank with the the name will be changed to Council
Council Bluffs Savings Bank. The Bluffs Savings, Bank, Avoca office.
merger became effective on Febru­
As of Dec. 31, 1986, the assets of
ary 28. The decision for the merger Council Bluffs Savings Bank were
• was made by the board of directors $220,601,000. The assets of the
of each bank and by Banks of Iowa, Avoca State Bank were $24,067,000.
Federal Reserve Bank of St. Louis

Gowrie Banker Dies
Maurice W. Lindquist, 75, died of
a heart ailment on Feb. 7 in Tucson,
Ariz. Mr. Lindquist was born in
Gowrie and lived in Des Moines
since 1934. He was president and
chairman of the board of First State
Bank of Gowrie since 1963.

Northwestern Banker, April, 1987

vanced to vice president, metro com-^
mercial services division. Before
coming to the bank he was the man­
ager of consumer/real estate lending
division of First American State
Bank in Fort Dodge.
Stacy G. Van Blair, formerly em­
ployee benefits administrator, has
been promoted to employee benefits
officer, trust division. He joinedFirst Interstate in 1985.



The board of directors of Banks of
Iowa, Inc. has announced the elec­
tion of R. Richard Bittner to chair-0
man of the board. He has been a
member of that board since 1979,
and is also chairman of First Bank,
Davenport. Mr. Bittner is a partner
in the law firm of Carlin, Hellstrom#
and Bitner in Davenport.
Donald R. Hunger, senior vice
president of bank administration for
Hawkeye Bancorporation, has
been named pres­
ident of Hawkeye B ank &
T ru st of Des
Moines. He suc­
ceeds J. Michael
Earley, who re­
signed to accept
an appointment
as president and
CEO of MidAmerica Savings Bank,
a $300 million asset savings and
loan in Waterloo, and that city’s
largest thrift institution. Hawkeye
Bancorporation recently announced
the merger of Hawkeye Capital
Bank & Trust and Hawkeye Bank &
Trust of Des Moines into one bank
in Des Moines, with headquarters
continuing at the Hawkeye Capital
site of East 5th and Locust Streets.
Mr. Runger was president of Jas­
per County Savings Bank in Newton
from 1971 to 1981. After the bank
was acquired by Hawkeye, he even­
tually joined holding company head­
quarters in Des Moines.
Mr. Earley was senior vice presi­
dent and senior trust officer of
United State Bank in Cedar Rapids
until he and his two co-owners of
that bank sold to Hawkeye Bancor­
poration. Shortly after he went to
work for the holding company, Mr.
Earley was named president in 1982
of Hawkeye Bank & Trust at 24th
and University in Des Moines. He
assumed the presidency also of
Hawkeye Capital in 1985, continu­
ing as president and CEO when the
Banker, April, 1987
Federal Reserve Bank of St. Louis

two institutions merged earlier this
Hawkeye also announced that it
will move its corporate headquarters
from 6th & Locust in downtown Des
Moines to the building housing
Hawkeye Bank & Trust at East 5th
and Locust. The sale of Hawkeye
subsidiaries has made enough space
available at that location for Hawkeye headquarters.
* * *
Several promotions have been an­
nounced at First Interstate Bank of
Des Moines, N.A.
Robert A. Shelquist, previously
controller for First Interstate of
Iowa, Inc., has been promoted to
vice president, finance. Before join­
ing First Interstate in 1983, he was
an audit supervisor with Galinsky &
Company, West Des Moines.
James L. Ross, previously opera­
tions officer for First Interstate In­
formation Systems of Iowa, Inc.,
has been promoted to vice president,
operations. Before joining the orga­
nization, he was with First Inter­
state Bank of Urbandale.


$ 4c *

At Iowa State Bank, John C.
Burgeson has been named president *
and CEO. He
had been chair­
man since 1984.
Succeeding him I
in that position
is Milton L.
Paul. He has
been an officer of
the bank since
1955, and served
as president and
CEO since 1973.
Melvin H. Nielsen has been named a
director of the bank. He is the owner
and president of American Agency,
Inc., an independent insurance com­
pany in Des Moines.



Steven F. Justice, formerly assis­
tant vice president, has been ad-



Iowa News

In addition, Mary Lou Kauzlarich
has been named assistant vice presi­
dent. She was previously assistant
cashier. Former loan officer Craig B.
Meyers has been named assistant
vice president. John E. Fowler, for­
merly assistant cashier and security
officer, has been named assistant
vice president and security officer.



the promotion of
Thea (Ted) Ober­
länder to con­
tro lle r .
Oberländer has
been employed
by Brenton for
one year. Prior
to joining Bren­
ton Banks, Inc.,
she w as em ­ T. OBERLÄNDER
ployed as a se­
nior manager with Peat, Marwick,
Mitchell & Co. in Des Moines.
Paul H. Bartlett has been named
senior vice president in the institu­
tional fixed income sales depart­
ment at Dain Bosworth Incorpo­
rated in Des Moines. He has spent
the last 17 years in Iowa banking.

Farmers Mutual Hail
Reports Outstanding Year



Also at Iowa State Bank, Dean L.
Neumayer has been named assistant
cashier. Sonia Nicholson, who pre­
viously held that title, will have ad­
ditional responsibilities as personnel
officer. Sue C. Bell has been named
assistant manager of the Hubbell of­
fice. She formerly served as a custo­
mer service representative.
* * *
Andree (Andy) Miller, personal of­
ficer for Brenton Information Sys­
tems, Inc., re­
cently was desig­
nated a profes­
sional in human
resources by the
National Person­
nel A ccredita­
tion Institute in
Washi ngt on,
D.C. Ms. Miller
has been a Bren­
ton employee for
the past three years. Applicants for
this accreditation must pass a four
hour w ritten examination and
demonstrate knowledge and experi­
* * *
William H. Brenton, chairman of
Brenton Banks, Inc., has announced
Federal Reserve Bank of St. Louis

The year 1986 proved to be an
outstanding year for Farm ers
Mutual Hail Insurance Company of
Iowa in providing crop hail insur­
ance, stated Perry Rutledge, presi­
dent of the Des Moines, Iowa-based
company. Mr. Rutledge reported
that Farmers Mutual Hail’s crop
hail division wrote over $47 million
in premiums in 1986 and at the close
of the year had over $1,592,000,000
of insurance-in-force. The reported
crop hail claims in 1986 exceeded
21,800 which was a substantial in­
crease over 1985. The company’s re­
insurance division wrote over $36
million in premium and the poultry
division wrote over $2 million in pre­
Farmers Mutual Hail’s assets in­
creased over $6 million during 1986,
for a total of $115 million. In addi­
tion, the surplus as regards policy­
holders was increased almost $6 mil­
lion and now totals over $74 million.
For the past five years, the com­
pany’s total assets have increased
$35 million, and surplus as regards
policyholders to $33 million. FMH
has continued to maintain the high­
est possible A.M. Best rating of A +
for 25 consecutive years.
Re-election to the board of direc­
tors at the Company’s 94th annual
meeting included: Perry Rutledge,
president; Dale DenHartog, senior
vice president and treasurer, and
William A. (Bill) Rutledge, secretary
and assistant vice president.
Other officers re-elected are: G.W.


(Bill) Drey and Donald D. Bockelman, senior vice presidents; Foster
Rutledge, Earl Rae and Russell S.
Cross, vice presidents; Michael Rut­
ledge, assistant secretary; Albert B.
Carter, assistant treasurer and as­
sistant vice president, and Donald
R. Duwelius and Jon Christensen,
assistant vice presidents.

Kathleen Lawrence Resigns
Her Post at the USDA
Kathleen W. Lawrence has re­
signed as acting under secretary of
agriculture for Small Community
and Rural Development, effective
May 1. She joined the USDA in
1983. She plans to return to the pri­
vate sector.
Secretary of Agriculture Richard
E. Lyng said, “ I had counted upon
the Senate’s confirmation of her as
under secretary and am deeply dis­
appointed that this was not done
during the 99th Congress. I respect
her decision to leave us and wish her
much success in whatever she
chooses to do.”
Departments reporting to her
were the REA, FmHA and Federal
Crop Insurance Corporation. She
was president and CEO of the Law­
rence management consulting firm
before joining the USDA.
Paul E. Lindholm, vice chairman
of the American Bankers Associa­
tion’s Agricultural Banking Divi­
sion and chairman and CEO of
Farmers and Merchants State Bank
in Clarksfield, Minn., commented on
the departure of Kathleen Lawrence
by stating: “Her departure is a great
loss to agriculture. She was very
sincere and thorough when we
worked with her. She really cared
about farmers, was accessible and
listened to us. She put information
together thoughtfully to find work­
able solutions that contributed to
agriculture. ’’

United Missouri Bank
Announces Promotions
United Missouri Bank of Kansas
City, N.A., has announced the fol­
lowing promotions and elections:
Promoted to vice president were
Dennis L. Robinett in the trust de­
partment, Stephen J. Campbell in
the personal trust and probate divi­
sion and Stephen P. Link who is re­
sponsible for trading mortgagebacked securities. Lynn Wood was
Northwestern Banker, April, 1987


PPP Constructs New Facility

THIS NEW BUILDING is headquarters for Perfect Plastic Printing Corp., in St. Charles, III.,
providing for a doubling of operations to produce credit and plastic cards that PPP fur­
nishes the financial industry.

OR the second time in six years,
Perfect Plastic Printing Corpo­
ration, St. Charles, 111., has out­
grown its space. “As one of the na­
tion’s largest printers of credit and
plastic cards, PPP has just com­
pleted the finest, most modern facili­
ty in the industry,’’ according to
James C. Uhlir, a company spokes­
man. He said the eight-acre plot will
allow even further expansion from
the new, high-tech, high-security
custom building.
Mr. Uhlir said, “We’ve built-in
the most practical and sophisticated
security tools and systems available
to protect our clients’ jobs and their
promoted to manager of the per­
sonal financial services division.
Elected assistant vice presidents
were S. Allen Jenks in the opera­
tions department, James McLaugh­
lin in the business development divi­
sion, and Leon W. Osterhaus in the
bankcard division.
Larry Donelson and Charles H.
Hyer were elected trust officers in
the personal trust and probate divi­
sion. Elected assistant trust officers
in that department were Marlys J.

confidentiality. The factory part of
the new building is windowless,
totally air-conditioned and humidity
regulated. Its electronic surveillance
system is on the leading edge of
what is possible today in the indus­
try for protection and security. All
projects are totally audited and
under complete security control.’’
PPP now has twice the space it
had previously for operations, and
twice the space available before for
expansion before it has to tap any of
the other acreage it owns. Addi­
tional state-of-the-art equipment has
been added.
Bainter and Melanie Graham-Aim.
Aneta N. Ireland and Deborah Umbarger were elected trust officers in
the employee benefits division. Ken­
yon R. Wells was elected an assis­
tant trust officer in that depart­
Elected to officers were Beatriz
Cleary, municpal trading; Joyce Nel­
son, bond investment; John K.
Howk, personal financial services,
and Conley S. McAnally, building
services. Louis C. Mattione and

Heather Maynard were elected a s - ^
sistant investment officers in the
securities anafysis division where
they are security analysts. Stephen
C. Hoover has been elected an assis­
tant marketing officer. Richard D. q
Sharp, Jr. has been elected an assis­
tant trust audit officer in the trust
audit division. Elett K. Harter has
been elected an assistant commer­
cial banking audit officer in the com- £
mercial auditing division.
Sarah A. Lewis was elected an
operations officer at United Mis­
souri Brokerage Services, Inc.
United Missouri Mortgage Com- 0
pany announced the promotions of
Reginald J. Smith to senior vice
president in residential financing,
Patricia K. Goins to assistant vice
president in residential loan process- #
ing and secondary markets, Brian
Lugar to assistant cashier in resi­
dential loans, and Connie Millbern,
Tracey Monk and Mary Watson to
assistant secretaries.

Promotions Announced
Rocky Mountain Bank Note, Den­
ver, has announced the promotion of •
John F. Siemsen to the post of vice
president and corporate controller.
Mr. Siemson joined the firm in 1983
and, most recently, held the position
of director of operations accounting. ®
He is a graduate of Northern Illinois
University with a Bachelor of Arts
Degree in Management and Indiana
University, where he obtained a
Masters of Science and Bachelor of ^
Arts in Finance.

April, 1987
A m erican B ankers A s s o c ia tio n , W ash in g to n , D.C............ 5
Bank B u ild in g C o rpo ratio n, St. Louis ...................................16 ^
B ankers T rust Co., Des M oines ............................................ 44

The Carpenters Pension Fund of Illinois, covering the State of
Illinois and the eastern half of Iowa, announced today a financ­
ing program of new and rehabilitation construction projects.
The Pension Fund is interested in providing financing of con­
struction and end loans at competitive rates. The servicing of
these loans, ranging from $250,000 to $2,000,000, will be
handled through local banks. The program is available for com­
mercial and residential projects.
For further information, please contact: Frederick A. Westmark, Administrative Manager, Illinois Employee Benefits Cor­
poration, 28 North First Street, Geneva, Illinois, 60134, 312/

C arpenters Pension Fund o f Illin o is ....................................62
C arroll, M cEntee & M cG inley, In c ........................................... 9
Chase M anhatta n, New York .................................................. 10
Farm ers M utual H ail Insurance, Des M o in e s .................... 8
F irsT ier Banks O m a h a -L in c o ln ...............................................6-7 _
F irst N a tio n a l Bank, O m a h a ......................................................38 9
F irs t N a tio n a l Bank, S ioux C ity ............................................ 30
First W isc o n s in , M ilw a u k e e ................................................ 32-33
G riffin , Kubik, Stephens & Thom pson, In c ...........................14
G ross, K irk Co., W a t e r lo o .........................................................49
IAC G roup, K ansas C it y ............................................................. 21
Investm ent C enters of N orth Dakota .............................. 12-13 ^
Iowa Bankers Insurance & Services, In c................................. 47 W
M erch ants N a tional Bank, Cedar R a p id s ........................... 2
North C e ntral Life Co., St. P a u l...............................................15
N orw est C o rpo ratio n, M in n e a p o lis .......................................64
O ffic e C oncepts, Ltd., W a te rlo o ..............................................56
Perfect P lastic P rin ting C o rp ......................................................29 _
Plus S ystem , Inc., D e n v e r ......................................................... 3 w
S e cu rity P a c ific F in a n c ia l S y s te m s .......................................63

Banker, April, 1987
Federal Reserve Bank of St. Louis

When your records leave the bank,
even over telephone lines, anything can
happen. Your valuable records are in
limbo until you get them safely back.
But with your own banking system from
Security Pacific Financial Systems, you’re
in control. Confidentiality and security
are never compromised. Our banking
system was designed by bankers for

bankers. Security Pacific can probably
save you money too.
With a service bureau, you pay a fee
for each transaction, so the bigger you
grow the more you pay But when you
license your own banking system from
us, you’ll realize economies of scale.
We’re backed by Security Pacific
Corporation, with assets in excess of

$60 billion. So you know we’ll be around
when you need us—24 hours a day
7 days a week.
Just say the word and we’ll send you
literature, set up a free consultation, or
schedule a detailed
Caü 1-800/325-1481
or 303/430-2147.

Security Pacific Financial Systems
Federal Reserve Bank of St. Louis

A D ivision of S ecurity Pacific Inform ation Systems, Inc.

^8 NL
1 1 1 7 24TH STREET


50 2 6 5

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Members FDIC
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