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UaaL M sX/
Vol. 12 No. 15

Des Moines, Iowa

Speaker tells independent bankers:

More Factors Are in Your Favor

LOOK A T “ The Future o f Inde­
pendent Banks—A P erspec­
tive” was given
b y W . G rant
G regory, chair­
man o f the board
of Touche, Ross
& C o .,
N ew
York, to mem­
bers o f the Iowa
Bankers and he
stated that “ on
balance, looking
at internal factors affecting indepen­
dent banks, I ’d say more factors are
in your favor.” He spoke during the
12th annual IIB convention at Lake
O koboji on July 22.
Mr. Gregory was speaking from
the broad perspective o f a dynamic
young international executive who
heads a staff o f 22,000 people in 60
nations, yet comes from the small
town o f Tabor (1,000 population) in
southwest Iowa. He was graduated
from the University o f Nebraska
with distinction, then completed
graduate studies at New York Uni­
versity and the Harvard Business
School. He joined Touche Ross in
1963 and prior to his selection by
fe llo w p a rtn e rs to head th e
prestigious world-wide accounting


August 1,1983
keep an inventory.
Today’s ag managers and bankers
face a perplexing picture that looks
like a three-legged stool: 1. Govern­
ment regulation in agriculture both
with P IK and export control. 2.
Weather, which we can’t control. 3.
Leverage, as oppposed to the ’50s,
’60s and early ’70s. W e have a huge
ag debt, and were partly lulled into
it by inflation.
Chairman Paul V olcker’s reap­
pointm ent to head the Federal Re­
serve Board is im portant to you. I
think he plans to de-sensitize infla­
tion. W e can’t cope with such ag
debt with high inflation and high in­
terest rates. W e also have a high
foreign debt. W e got out o f it a year
ago by finessing the debt—waiving
interest and principal paym ents—
but you can do these things only
once. So, we need a solution and
that’s why Mr. Volcker was reap­
pointed, to continue to carry out this
assignment because o f his interna­
tional credibility.
Change is a critical factor for in­
dependent banks, such as the
changes in the prime rate in recent
years. Prime is a fictitious level. W e
have a lot o f clients borrow ing at
two or three and one-half points
below prime.

firm, he was managing partner of
the Omaha office o f Touche Ross.
He continues to keep in close touch
with the needs and challenges of
community banking through his ma­
jority ownership in the Citizens
State Bank in Oakland and the Fre­
mont County Savings Bank in Sid­
ney, two southwest Iowa towns.
Both banks are long-time members
of the Iowa Independent Bankers.
A summary o f Mr. Gregory’s ad­
dress follows:
W e will address two main points:
First, the environment o f indepen­
dent banking and banking in gener­
al, and second, how to compete with
some o f the forces at work.
Ask yourselves—how many o f
you loaned money to Oklahoma oil
drillers, to Brazil, M exico or Poland?
How many o f you have a capital / as­
set ratio over 3% ? How many o f you
want to earn 1% or more on assets?
M y point is—independent bank­
ers can compete! It depends on
Let’s look at some o f the external
forces at work in our nation today. I
spent a week in Detroit this past
month, especially with Chrysler Cor­
poration, which is now paying o ff its
debt early. Factories there can’t M ORE FACTO RS ...
build cars fast enough; they can’t (Turn to page 4, please)

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Federal Reserve Bank of St. Louis


W illiam D. Greaves, Vice Presidenr


Bank recently announced several
title changes in its trust division.
The follow ing trust officers were
named to new positions: Verne C.
Bates, vice president and senior
trust officer; Larry R. Cobb, vice
president and investm ent officer;
Susan P. Cramer, vice president;
Michael R. Hyzer, senior trust of­
ficer, and Charles H. Leibold, senior
trust officer.
E X IR A : Charles W endt has been
elected president o f Exchange State
Bank to succeed Ray M. Andersen,
who will be retiring from the bank in
September after a 50-year banking
career. Mr. W endt m ost recently


to make MNB
work for you.

ing in 1979. Prior to that he was
with First W hitney Bank & Trust
Co. in Atlantic, la., for eight years,
and had earlier banking experience
with 1st National in M onticello, 111.
FT. M ADISON : Ken Baker has
been elected president and a director
of Iowa State Bank. He m oves from
Jefferson, la., where he was vice
president-com m ercial lending at
Home State Bank. Mr. Baker suc­
ceeds D oyle Hoyer, who was inac­
tive as president but continues as a
KELLOGG: A t the Kellogg-Sully
Bank & Trust, Bob Terlouw has
been named executive officer in
charge o f the Sully Bank; Ron De
N ooy and Rodney Jansen were pro­
m oted from loan officers to assistant
vice presidents, and Diana M ick
from assistant cashier to cashier.
STANTON: W illiam J. Grotenhuis,
82, died July 19 in a Red Oak hospi­
tal. Mr. Grotenhuis was in banking
over 50 years and at the time o f his
death was chairman o f Security
State Bank here and Thurman State
Bank. His son, Jim, is president o f
the Security State Bank.
TRAER : Darlys M. Hulme has been

named senior vice president of
Farmers Savings Bank. She has
been with the bank 23 years, serving
as vice president since 1973.

Colorado News
DEN VER: The correspondent bank­
ing department o f United Bank of
Denver is offering another in its
series o f training program s entitled,
“ Survival Training — New National
Bank Lending Lim its” to be held
August 17. The workshop will begin
with registration at 9:00 a.m. and
run until 3:30 p.m. Location will be
the Community Room (located on
Lincoln Level o f new tower) of
United Bank o f Denver, 1700 Broad­
way. Nancy Johnson, com pliance of­
ficer at United Bank o f Denver will
serve as faculty for the workshop.
Her career spans 11 years, two
states and three banks.
F O R T C O L L IN S : D on a ld O.
Johnson has been elected president
o f Colorado National Bank. Mr.
Johnson, who will also serve as chief
executive officer, has been with the
bank since 1977, serving as vice
president and senior vice president
o f loans.

R prinp fo r « n rrp j»




■*4 jflp b '


Toll free
1- 800- 332-5991

National Bank 151

Member F.D.I.C.


; "' yI
„M em b ec^D IQ .ancU B S -------
Federal Reserve Bank of St. Louis

Bemie Miller, Correspondent Banking Officer, has over
^O^ears^oflranking experience, and the recipe for success.
Help yourself by calling Bemie

Send Your News Today to the



306 Fifteenth Street

Staff Changes
Business Campaigns
Mergers, Consolidations
New Departments at the Bank
Remodeling or New Building

BANK ............I ...................................................................... ..........
OFFICER .......................................... ............................... . TITLE
Federal Reserve Bank of St. Louis


Open Houses
Anniversary Parties
Deaths or Retirements
Speeches Made by Bank Officers
Special Announcements to the Public

(Continued from page 1)
Technology is another key factor.
The art to this is knowing when to
go with it. Technology is vitally im­
portant to banks in serving custom ­
ers. It runs in cycles. I believe the
art in studying cycles is not only to
know when cycles are com ing, but
their amplitude.
The next m ajor external factor is
the quality o f credit. I have seen a
m entality o f loaning on the balance
sheet o f assets. Some were bailed
out due to inflation, but when infla­
tion came down and the econom y
came unglued, many such loans
eroded. Cash flow will have to be the
name o f the game. Through August
last year we saw 17,600 companies
nationwide file for bankruptcy.
M ost ju st ran out o f cash flow. Look
carefully at your tax-exempt securi­
ties and municipals to avoid sur­
M anufacturing custom ers o f
banks used to live on a 20-year life
cycle o f products—tools, equipment,
etc. These cycles now are getting
shorter and shorter. In services and
high tech areas the product life
cycles can go 36 months from start
to finish. You must undertand three
things on such loans: 1. W hat’s the
rela tion sh ip betw een com pany
management and the governm ent?
2. W hat’s the marketing capacity?
W e’re short o f salesmanship in this
nation. 3. W hat are the financial con­
trols and condition o f the com pany?
Another im portant factor for in­
dependent banking is that you m ust
make the case for the dual banking
system ! It’s demise would mean a
restructuring o f our delivery system
o f money. In many o f the countries
where I travel, I perceive that the
basic problem in many is that their
centralized banking system has such
exclusive power it lim its the flow of
money, as opposed to our system. It
is vital that you sell the concept and
need for a dual system.
Let me mention agriculture again.
How many o f you saw Japanese in
your state last year? (A number o f
hands went up.) How many o f you
went to Tokyo? (Only one went up.)
This is an inherent weakness. When
the Japanese were here they were
always selling something. W e’re not
over there selling. In Japan, if an ar­
ticle appears in the newspaper on a
new product or service, people will
read that article and immediately go
see the person mentioned to get the
distributorship rights or to manu­

facture it.
Federal Reserve Bank of St. Louis

It appears to me that with the in­
stability o f com ing o ff a high infla­
tion period, we need a revitalization
o f human resources. People will find
that with a high technology genera­
tion they may have to have two or
three career changes.
On balance, looking at the inter­
nal factors affecting independent
banks, I ’d say more factors are in
your favor. In larger firm s there are
more layers between the decision­
makers and the custom ers, whereas
in independent banks you ’re closer
to your custom ers and that is a
distinct advantage.
Another advantage you have as
an independent bank is that you can
deal easier directly with your cus­
tom er at one-quarter or one-half per­
cent to close a deal. A n additional
advantage to independent banks is
that inventory control on loans is
easier; that is, checking collateral.
Many people com ing into your
markets won’t be able to stand up
long-term against you because o f
this. And also, the more de-centralized a large firm becom es in smaller
communities the more difficulty it
has. They help increase the value o f
your shares, whether you are selling
out or not.

elements o f the future o f this coun­
try and that our nation needs this
delivery mechanism for small bus­
I ’m excited about your future.
Y ou’ve nothing to worry about so
long as you pursue excellence in
your banks.



Illinois News
A N D A LU SIA : Gene Riley has been
elected president o f Andalusia Com­
m unity Bank. He has m oved from
W aterloo, la., where m ost recently
he was managing officer o f the
Teamsters Credit Union and previ­
ously was executive vice president
o f the Evansdale State Bank in the
same area. He succeeds Charles
W endt, who returned to Iowa to
becom e president o f Exira State
Bank. Rita Buckrop was prom oted
to cashier, to fill the vacancy created
by the death in June o f Rita Jackson, 34, who helped open the bank
when it was founded four years ago.
quisition o f Northwest Trust & Sav­
ings Bank was com pleted July 20 by
First Illinois Corporation o f Evanston, and the bank now is known as
First Illinois Bank o f Arlington
Heights. The W ilm ette Bank is ex­
pected to join the First Illinois Cor­
poration in August and should bring
the holding com pany assets to more
than $650 million.

I would list four points for win­
1. Have a strategic plan. Pick the
kind o f bank you want to be; identify
your market and what your main
thrust will be.
2. Select good people. The advan­ CHICAGO: Gordon Carlson has
tage is a long-term staff. A disad­ been appointed vice presidentvantage is having to keep geared to correspondent banking at Sears
re-training for change.
Bank and Trust Company.
3. Operations is a key. Keep
geared to low -cost operations, but PEO RIA : United Bancorporation,
you must stay on top o f technology Inc., a seven-bank Rockford-based
holding com pany, has agreed to beand market decisions.
com e a member o f the M idwest Fi­
Capital. Your advantage is that
you have more o f it — at 8 % you nancial Group, headquarters in
have more than 3%, but o f what? A t Peoria. Addition o f the $386 million
3% capital, m ajor banks can go to United Bancorporation would make
the capital markets for what is need­ the M idwest Financial Group the
ed. Your capital is driven by earn­ sixth largest banking institution in
ings so you must keep up those earn­ Illinois and the largest downstate,
ings for capital generation or else with more than $ 1.6 billion in assets.
regress. Capital will continue to be
im portant. A little hole in your ar­
Wyoming News
mor is capital and you must cover
that chink. The m ajor challenge for CASPER: Robert L. Hays, presi­
independent banks o f raising capital dent o f W yom ing National Bank,
can be resolved with some newly-de­ has announced the election o f vetsigned securities like participation eran banker Roger Trupp as assis­
debentures that independent banks tant vice president, commercial loan
can sell to local companies to raise department. Mr. Trupp has nearly
14 years o f various banking exper­
L egisla tively, you m ust get ience, m ost recently serving in a
across the idea that independent credit management capacity for a
banking is one o f the im portant private Casper industry.








where com m on transactions are handled uncomm only well.
13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C.

Nebraska News
CURTIS: John W ilkinson has been
elected executive vice president and
cashier at Curtis State Bank. He
was vice president and cashier.
Michael L. Jorgensen was advanced
to vice president from assistant vice
GRAN D ISLAN D : Jerry P. Jensen
has joined Overland National Bank
as vice president and head o f the
commercial loan division. Previous­
ly, he held a similar position with
City National Bank o f Hastings.
LINCOLN: James T. H itt was
elected a vice president at the Na­
tional Bank o f Commerce directors
m eeting July 19. He has been
manager o f the trust investm ent
department since November, 1981.
Ann M. Carlson, trust tax officer
since April, 1981, was named assis­
tant vice president.
S P R I N G F I E L D : A g rou p o f
Nebraska investors who own other
Nebraska banks has purchased the
Springfield Bank Co., which owns
Springfield State Bank and Springfield Insurance Agency. Glenn M.
Adair, form erly executive vice presi­
dent and cashier, was named presi­
dent. M yron K. Osborn was elected
vice president and cashier. New
directors o f the bank are both of­
ficers and Robert P. Hilt, Jay L.
Dunlap, Robert D. Iske and Keith
SYRACUSE: Darrell Legband has
joined The First National Bank as
vice president and senior loan of­

Minnesota News
BENSON: Richard B. Lambert has
been elected president o f First Bank

Call our
Getting it done for you.

Benson, effective August 1. He has
been vice president, Vermillion of­
fice, First Bank o f South Dakota.
He succeeds Vernon Smith, who has
been named president at First Bank

Portable ModularBankBuilding

DULUTH: Larry L. Gilb, president
o f First Bank-Duluth, has also been
elected chief executive officer. He
has been president since September,
1981. James H. Claypool, managing
director o f the northern region o f
First Bank System, previously held
the title o f CEO at the bank, where
he form erly served also as president.
DULUTH: Dennis W. Dunne, presi­
dent, Norwest Bank Duluth, N .A.,
announced these prom otions: Joel
W . Schmidt, James A . Seitz and
Bruce P. W agner to senior vice
presidents; Bruce W . Potter to vice
president and trust officer, and
Steven J. Sertich to assistant vice
LITCH FIELD : Vernon Smith was
elected president o f First Bank
Litchfield to succeed Leslie E. Her­
zog, who retired July 31. Mr. Smith
previously was president o f First
Bank Benson.
W A Y ZA TA : Lee M. Ashfeld has
been elected president o f the First
National Bank. For the past six
years he has been with Citizens
Bank and Trust Company o f Hutch­
inson, m ost recently as senior vice
president and chief credit officer. He
succeeds Lowell G. W akefield, who
will be assuming responsibilities as
president o f Anchor Bancorp, Inc.,
holding com pany for the First Na­
tional Bank.

South Dakota News


D akota


General Bank Equipment &
Systems, Inc.

RR 45, Box 115
Hiway 73,3 V2 Miles North of Int. 680
Omaha, Nebraska 68152

Lease • Rent • B u y ____
A ssociation has announced the pro­
gram for its Commercial Loan Con­
ference scheduled for A ugust 30 at
the H oliday Inn in M itchell. It
begins at 8:30 a.m. with “ Cash
Flow Lending” by D avid Gaddie,
vice president, First Bank o f South
Dakota, Rapid City, and follow ed by
“ Bankruptcy and Its E ffect and
R a m i f i c a t i o n s ” b y V a n c e R.
Goldammer, attorney, Boyce, Mur­
phy, M cD ow ell and Greenfield,
Sioux Falls. A fter the noon lun­
cheon, Mr. Goldammer will continue
with his presentation. The last seg­
ment is “ W orking Out o f Problem
Loans,” presented by Ronald E.
Brue, senior vice president and se­
cond officer, First Bank o f South
Dakota, Rapid City.

Tom Steffens

John Henderson

Tony Paugoulatos

Jim McLaughlin

Rick Patton

John Shrader

Vice President

V ice President

Vice President

Vice President



Com m erce Bank o f Kansas G ty 10th and Walnut
Federal Reserve Bank of St. Louis

(816) 234-2000



Rates a re $5.00 per lin e per inse rtio n . Add $3.00 to r tile
letters per inse rtio n . Id e n tity o f file le tte r advertisers
cannot be revealed.

Commercial Lender for $300 m illion bank in Upper
Midwest. Requires college degree and demonstrated lend­
ing ab ility ...............................................................Salary open

306-15th Street
Des Moines, Iowa 50309
Phone 515/244-8163_______________

Number Two Person fo r $30 m illion com m unity bank. Re­
quires ag background and proven executive ability. .Salary
to $45,000
Commercial Lender to head commercial loan department
and supervise installm ents in $60 m illion bank. Requires 5
or more years bank lending experience... Salary to $40,000


Senior Ag Lender w ith college degree and minimum o f 5
years bank lending experience needed by major midwest
bank. Some travel........................................ Salary to $40,000

First National Bank of Clarion is interviewing for the posi­
tion of COMMERCIAL LOAN OFFICER. Need strong ex­
perience in agricultural lending. Send resume to Mr. R.B.
Bartholomaus, c/o First National Bank o f Clarion, P.O. Box
268, Clarion, la. 50525.____________________________ (PA)

Commercial Lender for com m unity bank in tow n of 15,000.
Requires 5 or more years experience in a bank of at least
$40 m illion ................................................................... Salary to $35,000
Commercial Lender fo r multi-bank holding company in
bank located in city over 100,000. Requires 3 or more years
bank lending experience........................................... Salary to $30,000

INSURANCE SALES MANAGER—At least tw o years bank­
ing experience desired - not necessary. Base salary plus
commission. Send resume to Frank Osowski/EVP, Na­
tional Bank of Canby, P.O. Box 70, Canby, MN 56220. (PA)

Ag Lender w ith sales and promotional ability for bank in
outstanding northwest Iowa com m unity of 3,000. Requires
m aturity....................................................................... Salary to $28,000

Locally owned independent bank seeking SENIOR LOAN
OFFICER. Experience in ag and commercial lending. Op­
portunity fo r professional growth. Send resume and salary
history to file UBO, c/o Northwestern Banker.

Ag Lender for central Iowa bank. Requires 3 or more yearsexperience in a com m unity bank...............Salary to $26,000
Sales/Operations person for major bank supplier. Quad
cities location. Car furnished................................... Salary to $30,000

The National Bank of Waterloo, Iowa, has opening for a
ience in lending and operations. Send resume to Diane
Good, National Bank of Waterloo, 100 E. Park Ave., Water­
loo, Iowa 50704.

W rite or call Malcolm Freeland, Freeland Financial Ser­
vice, Inc., 1032 Carriers Bldg., Des Moines, la. 50309.
Phone 515/282-6462. Employer pays fee._______________

THe National Bank of W aterloo has opening for an AUD­
ITOR. Need CPA plus tw o to three years audit experience.
Banking experience would be helpful. If interested, please
send resume to Diane Good, National Bank o f Waterloo,
100 E. Park Ave., Waterloo, Iowa 50704.

(Our 34th year)
Call experienced professionals to locate the
right candidate fo r your vacancy ... or the right
“ move-up” for yourself.
202 S. 71st Street
Omaha, Nebraska 68132

$10 m illion east central Iowa bank needs AG LENDING
OFFICER. 2 to 3 year banking or equivalent experience.
W rite file UBM, c/o Northwestern Banker.
$300 m illion NW Iowa bank has immediate opening for
CORRESPONDENT BANKER. Need two-three years len­
ding experience or correspondent banking background.
Some overnight travel. Excellent advancement and
benefits. Submit confidential resume to Personnel Depart­
ment, Security National Bank, P.O. Box 147, Sioux City,
Iowa 51102. Equal Opportunity Employer.___________ (PA)
V.P.-AG LENDING— Number tw o position in rural SW Iowa
bank near metro area. Several years’ ag lending ex­
perience necessary. Salary commensurate w ith ability.
Send resume and salary requirements to Mike Keim; 9691
Meadow Drive; Omaha, Nebr. 68114.

Bank Services
Since 1974

$180 million core bank of growing holding com­
pany. Ideal candidate will be from related size bank
with seasoned experience in general operations;
particularly in customer contact areas, DP, plan­
ning and product/service development. Salary com­
mensurate. Aggressive northeast Iowa locale. Send
resume/salary needs to Peoples Bank & Trust, P.
Petersen, AVP Human Resources, P.O. Box 360,
Waterloo, IA 50704.


. «



Serving Banks
in Iowa and Minnesota

P.O. Box 171 • Albert Lea, MN 56007


LOAN OFFICER—eight years experience. Assistant vice
president level. Desires relocation. Recent commercial lend­
ing emphasis. Write file UBN, c/o Northwestern Banker. (PW)

Estate Appraisals

AGRILOAN—manage Ag department in $50MM communi­
ty bank. Prefer degree and 4 yrs. + experience.


Purchase o f

COMMERCIAL LOAN— large suburban bank affiliated
w ith multi-bank holding company seeks addition to staff.
W ill supervise junior officers.

CEO w ith proven high performance record in community
bank seeks new opportunity......................... Salary $45,000
Commercial Lenders w ith experience ranging from three
to 20 years..................................................Salary to $50,000

Sale o f Rare Coins

Senior Ag Lenders w ith experience ranging from 5 to 20
years........................................................... Salary to $40,000

Reliable and respected service
for over 20 years

Junior Ag Lenders w ith one to five years experience.
..................................................................... Salary to $25,000
Administrative Officers w ith major banking experience.
..................................................................... Salary to $50,000
Installment Lenders w ith over five years banking ex­
perience......................................................Salary to $25,000
Operations people w ith over five years experience.............
...................... ..............................................Salary to $30,000
If you are considering an additional officer, we have
dozens of qualified applicants listed in most job cate­
gories. W rite or call Malcolm Freeland c/o Freeland Finan­
cial Services, Inc., 1032 Carriers Bldg., Des Moines, IA
50309. Phone 515/282-6462. Employer pays reasonable fee.

Used by bankers
throughout the midwest

Ben E . Marlenee
913 Locust
Des Moines, Iowa 50309

INSTAL. LOAN—handle all Consumer loans and some
Commercial lines fo r $25MM com m unity bank in central
OPERATIONS OFFICER— responsibility fo r all operational
departments plus regulatory reports. $55MM bank.
PRESIDENT—medium size com m unity bank needs strong
CEO w ith Commercial and Ag background. Degree de­
REAL ESTATE LOAN—generalist Real Estate loan back­
ground and some experience w ith secondary market. Man­
agement position.
Resume' and salary inform ation requested.

of Kansas City
2024 S w ift - Box 12346
North Kansas City, MO 64116
“ Serving the Banking Industry Since 1970”

Vol. 12 No. 15 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306
Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second class postage paid at

Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis