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• Regional check processing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Strategic planning — Part III M N B Senior Vice President on “ The im portance of creative ^ thinking in ¿ j| correspondent 'T h e challenge of developing more ef ficient methods in correspondent banking is greater than ever. That's w h y at Merchants National Bank, we encourage our correspondent bankers to develop new and better ways of handling Overlines and Liquidity Loans. That's w h y we offer tim e saving services like the 24-Hour Transit Service and more efficient ap proaches to Federal Funds Purchase and Sales and Bond Purchasing and Safekeeping. "A t M NB, we expect originality and w e encourage innovation. In cor respondent banking, as in any dynam ic business, creative thinking blends vision w ith experience for a better product. And by aggressively seeking new perspectives, w e believe w e 'll find the best ways to serve our respondent banks and their customers. Talk to one of M N B's creative corre spondent bankers, soon. Call John E. Mangold, Terry M. Martin, Stan R. Farmer, or Jerry N. Trudo. Just dial (319) 398-4313 or call, toll free, 1-800-332-5991. A BANKS 0F l0WA’ BANK Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # • Merchants National Bank m CEDAR RAPIDS, IOWA • Start offering bigger services. By adding our leasing and asset-based financing programs to your current financing plans you can give your customers the equip ment or operating capital they need to prosper. In addition to helping your customers with these progressive financing services, you open up highly profitable avenues for investment. Leasing, for example, is often one of the most profitable investments in a bank’s portfolio. And includes substantial tax benefits. By participating in our asset-based lending programs, you gain a healthy return and add an important service that provides your clients with additional working capital. So when conventional financing w on ’t meet your customer’s demands, contact any one of our representatives listed. We’ll work with you to give your customers the flexible financing they need. And you’ll discover that it’s not the size of your services that counts, it’s the size of those standing behind you. For full details on Norwest Business Credit call: Bob Olson in Minneapolis (612) 372-7988, Don Park in Denver (303) 298-0515, Gary Hermann in Des Moines (515) 245-8406, or Barry Krause in Dallas (214) 239-1555. For information on Norwest Leasing contact: John MacLeod in Minneapolis (612) 372-7416, Bennie Gates in Omaha (402) 536-2310, John Bailey in Des Moines (515) 245-3392, Chris Hoss in Fargo (701) 293-4273, or Steven Cozzens in Billings (406) 657-3581. Norwest Business Credit, Inc. Norwest Leasing, Inc. NORWEST CORPORATION mmmma mmyam https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 BRANDT NOmiSTERN 90th Year AUGUST 1983 SALES OFFICES ALABAM A, MONTGOMERY, 205-284-1382 No. 1439 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION tvn OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES COVER Officers of the Montana Bankers Association for 1983-84 are, from left: Immed. Past Pres.— Erie Gross, pres., Little Horn Bank, Hardin; Vice Pres.—Charles Pedersen, pres., First Interstate Bank, Great Falls; Pres.— Robert Sizemore, pres., Western Bank, Chinook; Treas.— Robert Mountain, pres., Norwest Bank Dillon, and Exec. V.P.—John Cadby, Helena. Details and photos from the Montana con vention start on page 47. Officers of the Iowa Independent Bankers for the coming year are, from left: Vice Pres. — David Taylor, pres., Iowa T&S, Centerville; Immed. Past Pres.— Donald W. Heineking, pres., Security State, Hubbard; Pres.—Arnold Schultz, pres., Grundy Natl., Grundy Center; Exec. V.P.— Richard W. Berglund, Des Moines; Exec. Dir.— Diane Gibbs, Des Moines, and Treas.—Wm. P. Wilson, pres., Oelwein State. Convention report starts on page 70. FEATURES 17 City banks get aggressive Exclusive survey relates correspondent bank programs 24 Regional check processing Omaha National officer describes multi-state system 26 Planning and budgeting— Part Norman Schultz outlines Goal Oriented Detail of his bank DEPARTMENTS 6 Calendar 10 Bank Promotions 14 Corporate News 31 Illinois 33 Minnesota 36 Twin Cities 43 South Dakota 46 47 50 51 53 54 North Dakota Montana Convention Report, Photos Colorado Wyoming Nebraska Omaha 60 63 70 76 78 Lincoln Iowa MB Convention Report, Photos Des Moines Index of Advertisers LeFevre Money Processing Systems, Inc. CALIFORNIA, IRVINE, 714-540-6575 Ernie C. Nietzke, Inc. CALIFORNIA, SANTA CLARA, 408-727-2630 Robert E. Slavik, Inc. COLO RADO , DENVER, 303-429-5122 Hlllyer Money Processing Systems, Inc. C O NN EC TIC UT, ROCKY HILL, 203-247-8369 Timothy C. Harris & Associates, Ltd. FLORIDA, CORAL SPRINGS, 800-432-8180 Money Handling Systems of Florida, Inc. FLORIDA, TAMPA, 800-282-2936 Coin, Currency & Document Systems of Florida, Inc. GEORGIA, ATLANTA, 404-952-2227 CEL Money Systems, Inc. HAW AII, AIEA, 808-487-1696 Money Processing Systems of Hawaii, Inc. ILLIN O IS, DOWNERS GROVE, 312-953-1255 Dawayne A. Miller, Inc. ILLIN O IS, ALSIP. 312-597-9250 Neal W. Perry, Inc. ILLIN O IS, PEORIA, 309-674-4336 Welch Money Processing Systems, Inc. INDIAN A, INDIANAPOLIS, 317-257-6300 Kruger & Associates, Inc. KANSAS, LEAWOOD, 913-648-5049 P. Zambito Associates, Inc. LO UISIANA, COVINGTON, 504-469-2313 Harry Nedoma Money Processing Systems, Inc. M ASSACHUSETTS, FRAMINGHAM, 617-875-0505 Warren Associates, Inc. M ARYLAND, COCKEYSVILLE, 301-667-6400 Roger A. Wittenbach, Inc. M IC HIG AN, BERKLEY, 313-545-5558 The Michael Cornelius Company M IC HIG AN, DOWAGIAC, 616-782-7015 K. Clark Service Co. MINNESOTA, MINNETONKA, 612-546-7662 R. E. Doll Enterprises, Inc. MISSOURI, CREVE COEUR, 314-434-1664 Burgess A. Brooks, Inc. NEBRASKA, OMAHA. 402-571-5577 Money Handling Machines, Inc. NEVADA, HENDERSON, 702-564-2353 Money Processing Systems, Inc. NEW HAMPSHIRE, HUDSON, 603-889-8011 B. Forest Taylor, Inc. NEW JERSEY, WOODCLIFF LAKE, 201-573-0575 Frank Connell Associates, Inc. NEW JERSEY, AUDUBON. 800-322-8093 T. J. Welch & Associates, Inc. NEW MEXICO, BOSQUE FARMS, 800-432-4900 Money Processing Systems NEW YORK, FLORAL PARK, 212-343-4343 Slater Money Processing, Inc. NEW YORK, COLONIE, 800-342-9299 Daniel L. Birkhauser, Inc. NORTH CARO LINA, CHARLOTTE, 800-432-0555 Carolina Money Processing Systems, Inc. OHIO, WORTHINGTON, 614-888-6473 Michael L. Moran & Associates, Inc. OHIO, HUDSON, 216-656-2675 Reed L. Dallmann & Associates, Inc. OHIO, CINCINNATI, 513-528-5220 William H. Benagh, Inc. O KLAH OM A, JENKS, 918-492-8163 JMF Processing Systems, Inc. PENNSYLVANIA, BETHEL PARK, 412-831-7400 R. A. Simmons Co., Inc. PENNSYLVANIA, BRYN MAWR, 215-525-5250 Timothy B. Bard & Associates, Ltd. SOUTH CARO LINA, 800-438-2466 Carolina Money Processing Systems, Inc. TENNESSEE, MEMPHIS, 901-398-1864 NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher & Editor Associate Publisher Associate Editor Consultant Ben Haller, Jr. Steve Burch Becky M cBurney M alcolm K. Freeland No. 1439Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional mailing office. POSTM ASTER: Send all address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309. Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wright Money Processing Systems, Inc. TEXAS, DALLAS, 214-437-2233 Collins Money Processing Systems, Inc. TEXAS, FORT WORTH, 817-656-1449 Money Systems, Inc. TEXAS, HOUSTON, 713-465-5760 Advanced Coin Equipment, Inc. VIRG IN IA, CHARLOTTESVILLE, 804-973-1848 Money Handling Systems, Inc. W ASHING TON, FEDERAL WAY. 206-838-6230 Northwest Money Processing Systems, Inc. W ASHING TON, SPOKANE, 509-448-0515 CPF Money Processing Systems, Inc. W ISCONSIN, BROOKFIELD, 414-782-4890 Peter L. Castner, Inc. W ISCONSIN, MADISON, 608-271-8616 Bruns, Inc. For States not listed call: 414-261-1780 5 BRANDT BRANDT EXTENDS SECURITY BEYOND A SHRED OF A DOUBT. F o r o v e r 90 years, B ra n d t has been k n o w n fo r to p q u a lity c o in and c u rre n c y p ro c e s s in g e q u ip m e n t. N o w w e ’re in tr o d u c in g a new lin e o f d o c u m e n t s h re d d e rs and b a le rs fo r a d d e d s e c u rity and e ffic ie n c y . S e r v ic e is a v a il able th ro u g h a net w o rk o f B ra n d t fa cto ry-tra in e d ser vice s p e c ia lis ts . C h o o s e fro m 10 m o d e ls ra n g in g fro m c o m p a c t u n its fo r d e s k -s id e use, to h ig h -v o lu m e m a c h in e s c a p a b le o f h a n d lin g fiv e to n s o f p a p e r p e r h o u r. F o r c o m p u te r p r in to u ts . M ic r o film /fic h e . C re d it c a rd s. Y o u ’ll g e t th e s e c u rity y o u need, th e v e rs a tility y o u w a nt! A ll m o d e ls fe a tu re easy, q u ie t o p e ra tio n . K eep y o u r s e n s i tive and c o n fid e n tial docum ents from fa ll in g into the w ro n g ha n d s. C a ll o r w rite fo r c o m p le te in fo rm a tio n on B ra n d t d o c u m e n t s h re d d e rs and b a le rs to d a y . BRANDT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRANDT, INC., P.O. BOX 200, WATERTOWN, Wl 53094 (414) 261-1780 Northwestern Banker, August, 1983 6 Illinois: r Convention Calendar V ABA—American Bankers Association AIB—American Institute of Banking BAI —Bank Administration Institute BMA—Bank Marketing Association IBAA—Independent Bankers Association of America NABW—National Association of Bank Women, Inc. RMA—Robert Morris Associates National C onventions & Schools DAKTRONICS Sept. 11-14—ABA National Personnel Con ference, Hyatt Regency, Phoenix, Ariz. Sept. 12-14—IBAA Commodity Marketing Seminar, Chicago, III. Sept. 13-16—BMA National Corporate Marketing Conference, Westin Alpine Resort, Vail, Colorado. Sept. 14-16—ABA Senior Operations Sem inar, Marriott’s Marco Beach, Marco Is land, Fla. Sept. 18-21 —NABW Annual Convention, Hyatt Regency, Dallas, Tex. Sept. 18-21 —BAI National Convention, Fair mont Hotel, San Francisco. Sept. 18-23—RMA Loan Management Sem inar, The Ohio State University, Colum bus. Sept. 18-30—ABA National School of Retail Banking, University of Oklahoma, Norman, Okla. Sept. 20-23—ABA National Bank Card Con vention, Bonaventure, Los Angeles, Calif. Oct. 8-12—ABA Annual ABA Convention, Honolulu, Hawaii. Oct. 23-25—ABA International Banking Conference, Grand Hyatt New York. Oct. 23-26—BMA 68th Annual Convention, Atlanta Hilton, Atlanta, Ga. Oct. 30-NOV.2—RMA 69th Annual Fall Con ference, Fairmont Hotel, San Francisco. Nov. 2-4—ABA Chief Financial Officer Seminar, Hyatt on Hilton Head, Hilton Head Island, S.C. Nov. 2-5—IBAA 23rd Seminar on the OneBank Holding Company, Marriott’s Hilton Head Resort, Hilton Head Island, S.C. Nov. 13-16—ABA National Agricultural Bankers Conference, Bonaventure, Los Angeles, Calif. Nov. 13-17—BMA Trust Marketing Con ference, Fairmont Hotel, Dallas, Tex. State Conventions & Schools Colorado: Sept. 22-24—Independent Bankers of Col orado Annual Meeting and Convention, Keystone Resort. Sept.—CBA Caravan Meetings, (locations throughout the state) TIME & TEMPERATURE Our engineers will custom design a display to enhance the architec ture of your building. Color draw ing and quote at no cost. Call or write today - O Hull, Iowa Custom designed > CO "O I— Sept. 21-22—IBA Agricultural Credit Con ference, Ramada Inn, Champagne. Nov. 16-17—IBA Bank Management Con ference, Holiday Inn, O’Hara Kennedy. Nov. 17—IBA Annual Meeting, Holiday Inn O’Hare Kennedy. | Iowa: Aug. 18-22—IBA Outward Bound, Colorado. Sept. 18-20—IBA Annual Convention, Mar riott Hotel, Des Moines. Minnesota: Aug. 18-21 —Independent Bankers of Min nesota Annual Convention, Arrowwood Lodge, Alexandria. Sept. 20—District 8 Meeting, Holiday Inn,# Fergus Falls. Sept. 21 —District 6 Meeting, Sunwood Inn, St. Cloud. Sept. 22—District 9 Meeting, Holiday Inn, Duluth. Sept. 26—Districts 3, 4 and 5 M eeting# Registry Hotel, Bloomington. Sept. 27—District 7 Meeting, Ramada Inn, Rochester. Sept. 28—District 2 Meeting, Orchid Inn, Sleepy Eye. Sept. 29—District 1 Meeting, Best W estern# Montevideo. Nebraska: Sept. 8-9—NBA Ag Credit Conference, Lin coln Hilton. Sept. 11-16—Schools of Banking Basic# School (2nd session), Rodeway Inn, Overland Park, Kan. Sept. 25-30—Schools of Banking Inter mediate (2nd session), Rodeway Inn, Overland Park, Kan. Sept. 28-29—NBA Marketing Conference,# Kearney Holiday Inn. Oct. 16-20—Schools of Banking Advanced School, Regency West, Omaha. Nov. 3-4—NIBA Annual Convention, Mid town Holiday Inn, Grand Island. Nov. 16-17—NBA Bank Management C o n # ference, Holiday Inn, Kearney. North Dakota: Elmhurst, Illinois Attached display Warrensburg, Missouri Attached display Sept. 7—NDBA Compliance Update, Double wood Inn, Fargo. a Sept. 8—NDBA Compliance Update, Kirk wood Motor Inn, Bismarck. Sept. 14-16—Independent Community Banks of North Dakota Annual Conven tion, Kirkwood Motor Inn, Bismarck. Sept. 26—NDBA Northeast Group Meeting,^ Devils Lake. ^ Sept. 27—NDBA Northwest Group Meeting, Rugby. Sept. 28—NDBA Southwest Group Meeting, Dickinson. Sept. 29—NDBA Southeast Group Meeting,^ Ellendale. w Oct. 25-26—NDBA Bank Women’s Confer ence, Holiday Inn, Fargo. South Dakota: Eagle Grove, Iowa Custom market report DAKTRONICS, INC. x> DAKTRONICS, INC. P.O. Box 128 Brookings, SD 57006 (605)692-6145 Toll Free 800/843-9879 (exc. AK, HI & SD) Telex 29-5013 DAKTRONCS BKNG Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J Sept. 19—Group I, Minnehaha Country C lu b # Sioux Falls. Sept. 20—Group III, Holiday Inn, Mitchell. Sept. 21—Group II, The Galley, Webster. Sept. 22—Group IV, Wrangler Motor Lodge & Moose Lodge #1685, Mobridge. Sept. 23—Group V, Howard Johnson’s M o to # Lodge, Rapid City. There are some things our credit insurance programs don’t cover. But not many. # • We don ’t insure castles in the sky. But when your custom ers’ credit insurance needs are more down to earth, whether for a home, car, personal loan, or line-of-credit, you can depend on the USLIFE Credit Insurance Group to deliver. Fact is, we have the most complete coverage you can find. Some thing you would expect from one of the largest credit insurance organ izations in the business. For example, we offer a special policy that offers more flexibility and much higher coverage. The kind o f coverage your customers may want for large personal loans or other large credit needs. And when it comes to hard-to-find lineof-credit coverage, come to the USLIFE Credit Insurance Group. How are our three companies, USLIFE Credit Life Insurance Com pany, Sooner Life Insurance Com pany, and Security o f America Life Insurance Company, able to offer you the best in products and fast, personalized service nationwide? One major reason: credit insurance is our only business. Which means credit insurance isn’t gravy to our staff o f salaried representatives— it’s their bread-and-butter. So, if you want to expand your b u s in e s s , ta lk to th e c r e d it insurer that has the policies you need to cover anything. Well, al most anything. To see for yourself, just call toll-free, 1-800-323-4747* IRilFE CREDIT INSURANCE GROUP USLIFE Credit Life Insurance Company • Sooner Life Insurance Company • Security of America Life Insurance Company 1-800-323-4747 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ‘ (w ith in Illinois, call 312-490-6000) If your pi ! * s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i r 1 i • Pp .&È , To find out how often you id to see your primary correlent, we took the direct approach, We asked. And most of you said three or imes a year. Then we realized that few, if najor correspondent banks had *h calling officers or support ) pull that off. We knew we didn’t, So again, we took the direct >ach. We reorganized our ispondent Banking Department îcreased our staff of professionals in every area. So all our primary respondents will see us as often as they’d like. We now field the largest force of correspondent calling officers, bond and money market specialists, data processing professionals and cash management consultants in the Upper Midwest. Experienced people trained to know you and your markets. And all because that’s what you’ve asked for. So if you’re getting the idea that we’re the most responsive correspondent bank around, you’re getting the right idea. .¿l|k First Bank Minneapolis Correspondent Banking Department First Bank Place Minneapolis, MN 55480 612/370-4762 We are w hat you w ant a correspondent bank to be. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 Bank Promotions ROMOTIONS and other an nouncements have been made by the following banks: P Continental Bank, Chicago: David E. Colburn, vice president, has been given responsibility for commercial lending in the bank’s Minneapolis regional office, which serves cus tomers in Minnesota, North Dakota and South Dakota, according to an announcement made by Roger H. Sherman, senior vice president. Mr. Colburn was given similar responsi bility for Montana, Wyoming, Col orado, Utah and New Mexico. He has been with Continental 24 years, all of it in commercial lending. Since 1977 he has been in charge of the bank’s worldwide shipping and mar ine industries division. In Continental’s U.S. banking ser vices department, promotions were announced for four officers who serve corporate and correspondent bank customers in Illinois, Iowa and Wisconsin from Chicago headquar ters. They are: Thomas S. Bagley, vice president, and Philip C. Adams, W. Thomas Barnett and William P. Waschle, all second vice presidents. These promotions in the financial services department were announced: William E. Read, vice presidentcapital markets group; Richard C. Allen, second vice president-trade finance division; Richard J. Meliska, Catherine A. Schultze and Brenda C. Seliga, second vice presidents-world wide cash management. Other promotions at the bank in clude: Vice presidents—Thomas F. M c Grath and Susan M. Spalding, trust and investment services; Douglas E. Meneely and Edwin F. Skonicki, op erations and personal banking ser vices. Second vice presidents—Carl N. Thornrose and Carolyn A. Hanes, operations and personal banking services; Jan S. Hobson, corporate affairs; Jennifer Olsztynski, cor porate personnel. Drovers Bank of Chicago: Two new assistant vice presidents have been appointed, it was announced last month by James J. Carmody, president. They are Thomas J. Car mody, 27, and James M. Corkery, 26. Thomas Carmody has been a com Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mercial loan officer at both Main Bank of Chicago and at Drovers Bank. Both banks are members of the Cole-Taylor Financial Group. Mr. Carmody was graduated from the College of St. Thomas with a degree in accounting and finance and is currently working toward his M BA at Lewis University. Mr. Corkery joined Drovers in 1979 as a credit analyst, working later as a commercial loan officer. He was graduated from Western Il linois University and holds an M BA from De Paul University. Federal Reserve Bank of Kansas City: Roger Guffey, president, has announced these appointments: David J. France to vice president and Barbara S. Saathoff and Kath ryn A. Webster to assistant vice president, all at the head office; H. Fletcher Wardwell to assistant vice president at the Denver branch. First National Bank of Kansas Ci ty: Ann M. Goddard, corporate sec retary of Southwestern Bell Tele phone Company, St. Louis, has been elected a director of the bank, accor ding to Gordon E. Wells, chairman. She is the first woman to serve on the bank board in its 97-year his tory. She joined Southwestern Bell in 1947. First National Bank of Chicago: Clarence E. (Bud) Cross has been promoted to vice president, it was announced last month. He had been a ssista n t vice president prior to this advance ment, and will continue as a calling officer in midwestern states. Mr. Cross re ceived his BA d e g re e fro m C.E. CROSS Knox College in 1951. After military service he joined the First National bond department in 1954, then in 1962 was trans ferred to the correspondent bank division serving Iowa banks. He be came widely acquainted with bank ers in that position. From January to August, 1981, he worked in the Public funds area of the bank, then returned to the correspondent bank section, now the U.S. Banking In stitutions Division, to cover south* ern Illinois. Mr. Cross joined the community banking group, headed by Vice Pres ident Thomas M. King, in mid-198iL and has been serving community® banks in midwestern states since that time. Norwest Corporation, Minneap olis: Creation of Norwest Energy# Finance to serve the energy market, primarily in the Rocky Mountain and northern plains states, has been announced by John W. Morrison, chairman and CEO. Working mainly® through Norwest Bank Minneapolis, N.A., and Norwest Bank Billings, N.A., the new Norwest Energy Fi nance will serve as a focal point f o ^ energy financing for the entir ® Norwest Corporation, he said. Todd L. Parchman, senior vice president of the Minneapolis bank, will manage the new company. It will be operated as a separate business, designed to find energy companies access to capital sources, in addition to bank credit. It will also offer its clients merger and acj quisition, as well as financial ad visory, services. Norwest Energy Finance will util ize a staff of 22 people, including three petroleum engineers, a geol| ogist and a legal staff. Headquarters will be in Minneapolis, with offices in Denver and Billings. United Missouri Bank of Kansas City: These three trust department# employees have been promoted: Dorothy Jean Schneider and Rita M. Abernethy to vice president, and Roger W. Hershey to estate plan ning officer. ^ Ms. Schneider is in the trust tax department, responsible for prepara tion of fiduciary tax returns and the valuation of common trust funds and internal money market funds* She joined the bank in 1974 and holds undergraduate and graduate degrees from Rockhurst College. Ms. Abernethy is employee bene fit counsel. She provides legal staf® assistance to staff and customers. She has BA and law degrees from the University of Kansas. She also joined United Missouri in 1974. . Mr. Hershey was in private prac tice of law before joining the bank in May, 1982. He has his law degree and master’s in commercial and cor porate law from the University o ^ Missouri at Kansas City. 11 We're blowing our cover on w ire transfers All banks transfer m oney. B u t n ob ody talks about it. It’s one of those quiet, ignored sort of services. W e think it’s time wire transfer got the lim elight it deserves. E a ch year w e transfer u p w ards of 10 trillion dollars. So w ire transfer is certainly important to us. A n d it’s important to you, too. D elayed transfers m ean delays in your investm ents. Fast is w hat you want. A n d w ith u s,y o u ’ll get it. W e can m ake transfers at supersonic speed.You m ay call it m agic. W e just call it progress. B u t actually it’s called electronic transfers. N ot on ly are they faster, th ey’re m ore conven ient. Instead of spending hours on the p h on e each dav, v ou can authorize transfers in e .T h e y ’ll be handled autoly. E lectron ic transfers can mimize your aggravation w hile m axim izin g your - efficiency. W h eth er you choose the electronic m ode of trans fer or the traditional phon e or m ail,you can be sure w e ’re over-cautiou s about errors, absolute sticklers about security. Call R obert C. V asko at (312) 828-4046. A n d ask about w ire transfer. W e m ay not w ear trenchcoats or carry cryptic decoders, but w e excel at this secret service. CONTINENTAL BANK Continental Illinois National Bank and Trust Com pany of Chicago, 231 South LaSalle Street, Chicago, Illinois 60693 Atlanta •Boston •Chicago •Cleveland •Dallas •Denver Detroit •Houston •Los Angeles •Minneapolis •N ew York St. Louis •San Francisco •Seattle •White Plains https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 BMA OKs Merger with ABA HE board of directors of the Bank Marketing Association on July 12 unanimously agreed to rec ommend to its membership that it approve an offer to affiliate with the American Bankers Association. The officers of both organizations have been meeting and working out the details for the proposed merger. The A B A board of directors previously approved the merger concept at its June 16 meeting. A special meeting of the member ship will be held at the BM A Head quarters, 309 West Washington Street, Chicago, to vote on the pro posal. A two-thirds vote of the mem bers present and voting, including proxies, is required for approval. The date for the meeting, which is tentatively scheduled for Septem ber, has not yet been set. Under the terms of the proposed affiliation, BM A would be merged into a new Delaware corporation to be formed by the A B A before No vember 30, 1983, which is the last day of B M A ’s fiscal year. There after, all A B A member banks would automatically be eligible to par T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the Association’s activities, while, relieving individual banks who are1 ticipate in BM A functions without also A B A members of the financial paying corporate dues to BMA. In burden of paying additional dues to dividual members and banks that BMA. The proposal endorsed by the^l are not A B A members, as well as service firms and international BM A board provides for combining banks, would continue as BM A the A B A marketing division ex members and would continue to pay ecutive committee into the board dues. and councils of the BMA. It also To assure that the current level calls for blending the leadership o W and quality of BM A activities will the two organizations in such a way continue, the A B A has agreed to that current BM A officers and A B A underwrite BMA, for a five-year marketing division leaders would period, for the amount of the cor assume the presidency of BM A in porate dues relinquished — estimat alternate years, beginning w ithal ed at $1.7 million annually. There is BM A First Vice President Barry no present plan to move the BM A Deutsch, senior vice president, offices, which will remain in Chicago Mellon Bank, Pittsburgh, who and will continue to be headed by would succeed Mr. Rosenberg as BM A Executive President Ray president at the Association’s an-| mond M. Cheseldine. nual convention in Atlanta in Oc In a statement released by the tober. BM A presidents in succeeding A B A in Washington, the proposed affiliation was hailed by its presi years would be as follows: 1985, dent, William H. Kennedy, Jr., as an Robert A. Krane, vice chairman,! idea whose time had come. Norwest Corporation, Minneapolis, BM A President Richard M. Ros who is currently vice chairman of enberg, vice chairman, Wells Fargo the A B A marketing division; 1986, Bank, N.A., San Francisco, urged Smith W. Brookhart III, president members to approve the affiliation, and chief executive officer, Centerre#| for it assures continued funding of Bank of Branson, Mo., who is cur- 13 rently second vice president of *BMA; 1987, John A. Russell, vice president and director of marketing, Banc One Corporation, Columbus, Ohio, who is a member of the A B A marketing division’s executive com^mittee; and 1988, Michael P. Sulli van, vice president/corporate com munications, First Union National Bank, Charlotte, N.C., who is second vice president-elect of BMA. In succeeding years, the BM A president and Board would be nomi nated under the present BM A Nom inating Committee procedure and their names submitted to the A B A president for approval under the normal A B A appointment process. BM A was founded in 1915 as the Financial Advertisers Association, ^which later become the Financial Public Relations Association, the Bank Public Relations and Market ing Association, and, in 1970, the Bank Marketing Association. IntraWest Bank Appoints New Advertising Agency Grant & Pollack Advertising, :Inc., one of Denver’s fastest grow ing agencies, has been named the agency of record for IntraWest Crigger is RMA President Bank of Denver, according to Mich Jack R. Crigger, executive vice ael S. Dafferner, senior vice pres president, American National Bank ident and director of marketing for the bank. “ We initiated a comprehensive and formal agency review in April,’ ’ Mr. Dafferner explained. “ We want ed to identify an agency that possessed the talent and experience necessary to help us achieve our advertising and business objectives in the future. Grant & Pollack’s im pressive track record in Denver and » mm wmmWm rm. mmm J.R. CRIGGER G.E. TAYLOR, JR. the skills and expertise of its staff are compatible with our future & Trust Company, Chattanooga, needs.” John Grant is president of the Tenn., was elected president of Rob agency and George Pollack is ex ert Morris Associates (RMA) — the ecutive vice president and creative national association of bank loan director. The firm currently has a and credit officers — in the associa tion’s annual election on August 5, staff of 25 employees. Mr. Dafferner pointed out that 1983. Glenhall E. Taylor, Jr., executive planning activity will begin im mediately and the agency’s first ma vice president, Seafirst Corporation jor project is planned for the fall, and Seattle-First National Bank, following the proposed merger of In Seattle, Wash., was elected first vice traWest Bank of Denver and First president. Patrick L. Flinn, exec utive vice president, The Citizens & Interstate Bank of Denver. IntraWest Bank of Denver is the Southern National Bank, Atlanta, state’s largest bank with assets of Ga., was elected second vice presi dent. All terms are for one year. $2.3 billion. C o n tin u ity o f people. Continuity of policy. Continuity of commitment. That’s what corre spondent banking means at Drovers. With some banks, it’s a sideline. With others, only the large metropolitan relationships are sought and serviced. Not so at Drovers. We seek strong, long term relationships with banks in towns like Sandwich. Or Watseka. Or Varna. (You know who we mean.) So call John Crotty. Or Kathy Hardy. Or Max Roy. Or Andy Ruments. Or Frank Bauder. Or Jim Carmody. Professionals sensitive to over line situations. Professionals sensitive to the agricultural sector. Professionals sensitive to you. ru * Toll-free 1-800-621-8991. In Illinois, 1-800-527-2498. r^»/ Drovers Bank '« « 47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000. MEMBER FEDERAL RESERVE SYSTEM AND FDIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 Corporate ROMOTIONS and other an nouncements have been made by the following firms: P American Express, New York; Louis V. Gerstner, Jr., chairman and CEO of American Express Travel Related Services Company, Inc., has announced the integration of its card, travelers cheque and travel businesses into a single organiza tion, in all countries outside the United States. William McCormick, presently president of the company’s card and travelers cheque businesses, will become president of the new TRS, with specific responsibility for all TRS business units outside the United States, as well as world-wide responsibility for marketing and op erations. Associates Commercial Corpora tion, Chicago: George J. Colon has been elected senior vice president and regional manager of the New York region for the business loans division. Perry A. Nakachi has been elected vice president in Chicago, according to Harold D. Marshall, president of Associates Commercial. He is re sponsible for assisting in the handl ing of credit administration activ ities for the company’s six operating divisions, including preparation of credit transactions, presentations and the monitoring of loan port folios. Hugo M. De Andrea has been elec ted vice president, with responsibili ty for business loan credit admin R.A. DASCANIO W.J. HADCOCK ^ istration activities for the western half of the United States. Most the largest suppliers and operators recently he has been district man in the nation. ager for G.E. Credit Corp. in Stam ford, Conn., and will relocate to A s Financial Shares Corporation, Chicago: Robert W. Klockars, 36,^ sociates’ headquarters in Chicago. Ronald J. Beck, vice president, has joined the has been appointed new business de firm as vice pres velopment officer of the southwest ident, according region for the factoring division, to George M. based in Dallas. M o r v is, p r e s Donald A. McLeod has been elec ident. In addi ted assistant vice president and loan tion, Karen C. development officer, located in Los Goldbaum was Angeles. His western region respon elected assistant sibilities include Montana, Idaho, vice president, Utah and Nevada and other west and Laurie A. R.W. KLOCKARS coast states. Scanlon joined the public relations division. Mr. Klockars was executive vice A.O. Smith Corporation, Milwau president and director of Farmers^ kee: Robert A. Dascanio has been State Bank, Lindsborg, Kan. He is a named marketing manager of the fi 1978 graduate of the Graduate nance services group. He will be re School of Banking at the University sponsible for marketing and service of Wisconsin, Madison, and has a of electronic funds transfer tech BA degree from McPherson College,^ nology to banks and other financial Kansas. He will have responsibil organizations. A pioneer in pro ities in Financial Shares’ marketing viding network switching for EFT, and training consultant units. A.O. Smith is considered to be one of Ms. Goldbaum, 26, joined the firm in June, 1982 as administrative^ assistant. Ms. Scanlon, 22, received her BA degree in journalism and political science last May from Northern Il linois University, DeKalb. * Insureco, Now It’s Twice A s G ood If one is good, two is better. That’s what Insureco is now offering its banking friends across the country — TWO pro duction centers that can quickly and efficiently input their insurance data into an exclusive national computer track ing system. What does it mean to the lender? It means he now has at his disposal simply the best, most effective in surance tracking operation designed exclusively for len ding institutions. As you probably know, Insureco does all the work while you reap the benefits. If you need assistance or want to know more about Insureco’s in surance programs, call the nearest branch office. ★ AUTOMATED TRACKING SYSTEMS ★ COLLATERAL LOAN INSURANCE ★ CREDIT LIFE ★ DISABILITY INSURANCE ★ RESIDUAL VALUE INSURANCE FOR AUTO LESSORS ★ AUTO LESSORS BLANKET LIABILITY AND PHYSICAL DAMAGE INSURANCE ★ MASS MARKETING PRODUCTS - ACCIDENTAL DEATH, DISABILITY AND TRAVEL INSURANCE HOME OFFICE—SOUTH PASADENA (213) 793-1075 TOLL FREE —BANKS (800) 362-7019 BRANCH AND MARKETING OFFICES: DETROIT—(313) 961-9690 ATLANTA—(404) 458-2141 DALLAS —(214) 661-8300 LAS VEGAS —(702) 385-8224 PHOENIX —(602) 264-0250 PORTLAN D —(503) 257-0571 SAN DIEGO—(619) 560-0061 SEATTLE—(206) 232-4880 KANSAS CITY—(913) 268-6123 Digitized Northwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SON Corporation, Wichita, Kan.: Dennis Martens, 40, has been pro moted to national sales director, ac cording to Tom* my Thompson, g e n e ra l m a n ager. As design ers, consultants and suppliers of pre-constructed financial buildings, SON Corporation is one of the larg D. MARTENS est suppliers of modular financial facilities in the United States. The firm has regional offices in Florida, Texas and Califor-^ nia. for Banking Systems, Inc., a sub Nationet, Inc., Appoints sidiary of General Electric Informa Paul R. Kramme President tion Systems Co., where he managed James H. Martin, chairman of Na business planning and product im tionet, Inc., a nationwide electronic plementation of on-line banking b a n k in g an- software systems. Mr. Kramme also n e tw o rk , has n o u n ce d th a t spent more than a decade in various Paul R. Kramme technical and management positions has been a p in Rockwell International Corpora pointed as its tion’ s communication switching new president. A systems operation in Dallas, Texas, 16-year industry and Cedar Rapids, la. v e te r a n , M r. A native of Des Moines, Mr. Kramme will be Kramme is a 1963 graduate of the responsible for University of Iowa. day-to-day oper Nationet, Inc., was formed by 12 ations of the na independent regional networks in P.R. KRAMME tional switch, in January 1983, to offer consumers addition to financial planning, coast-to-coast access to their home operations sheduling, marketing, town bank accounts. and customer relations. A resident of Plano, Tex., Mr. Kramme was most recently man BMA Information Center ager of plans and controls at Lomas & Nettleton Information Systems, Adds Project Reports Inc, Dallas. L & N Is the nation’s Three area bankers were among largest mortgage banking company. the nine persons whose project Prior to joining L & N, Mr. Kram reports have been selected by the me was account operations manager Bank Marketing Association for in- 15 elusion in the BM A Information Center. The entrants are all grad uates of the BM A 1983 School of Bank Marketing at the University of Colorado, Boulder. The three area bankers and the titles of their project reports are: •William L. Devore, assistant vice president, Bank of Waukegan, Waukegan, 111.—The Community Bank and Cable Television. •Rebecca A. Sisco, marketing assistant, Dubuque Bank & Trust, Dubuque, la.—Selecting and Man aging New Accounts People Who Can Sell. •David V. Tinson, assistant vice president-marketing, Colorado Na tional Bank, Colorado Springs, Colo.—Bonanza—A Cash Incentive Program That Failed - and Why. A CO R N Registers "Accepted Sale Registers by Bank Clerks Everywhere" Tor information write THE AC O R N PRINTING CO . Oakland, Iowa Bank Prom otions Are My Specialty. Let me speak at yo u r next event. Fred J. Young Author: “ How To Get Rich and Stay Rich” Fell Publishers, Inc. 386 Park Avenue South, New York, New York 10016 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Subject: “ HOW TO GET RICH AND STAY RICH” Entertaining. Amusing. Authoritative. Inspirational. Based on twenty-seven years’ experience as a professional money manager at the Harris Bank helping rich people get richer. Summary: Available on request. Occasions: Banking Promotions Trust Prom otions S tockholder A ppreciation Dinners Employee Banquets Ladies Investment Forums Businessmen’s Luncheons Banking Association Banquets Fees: $500 plus expenses. References: Bank of North Dakota (Bismarck) Security Bank N.A. (Billings) Converse County Bank (Douglas) Iowa State Bank & Trust Co. (Iowa City) Contact: Fred J. Young Harris Bank Building-Room 2128 111 W. Monroe St. Chicago, III. 60603 Home: 312/446-2648 Office: 312/461-7525 Northwestern Banker, August, 1983 16 WithFirstTkimwork,yourrelationship withFirstChicagoisn’tjustbankto banklfspartnertopartner’’ ^ “ When you are a correspondent o f First Chicago, it means having access to the vast resources o f a money-center bank. It means having teams o f specialists w orking together to deliver the kind o f products your bank needs. And it means a partnership that supports instead o f supplants. “You w o n ’t find a bank in the Midwest th a t’s organized to deliver its resources m ore effectively than First Chicago. You’ll w o rk w ith a relationship manager fro m our highly trained specialty team s—the Com m unity Banking Team, the Illinois Team and the Midwest Team— according to your specific needs. “When you’re a correspondent w ith First Chicago, we w o n ’tju s t be w orking w ith y o u —w e ’ll be w orking fo r you. “ See how First Teamwork can w o rk fo r you. Call me, Neal Trogdon, at ( 312) 732-7780.” First Chicago Atlanta—Baltimore—Boston—Chicago— Cleveland— Da1las—Denver— Houston—Los Angeles—Miami —New York—San Francisco— Washington, D.C. FIRST CHICAGO The First National Bankof Chicago e o*/- ThomasM. King, Community Banking Çy FIRST TEAMWORK WORKS © 1 9 8 3 The First National Bank o f Chicago. M em ber FD.I.C. Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 The search for a service source In recent years, competition between providers of financial services has grown tremendously, as have the options available to depository institutions that use them. As a result, many institutions have begun to re evaluate their needs in an effort to find the right source for their services. We think that source is the Federal Reserve Bank of Chicago. Here are a few of the reasons why: City banks get aggressive! A Northwestern Banker Survey 9 II J| AJOR and regional correspondent banks in upper IV I midwest and mountain states are aggressively seeking check collection and EDP business from com munity banks, according to replies received from an exclusive survey conducted by T h e N o r t h w e s t e r n 0 B a n k e r . Every banker interviewed said his bank is responding in several ways trying to overcome the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis new, competitive stance taken by Federal Reserve Banks in the check processing business. Since Congress mandated that the Fed price its pro ducts (with a built-in private sector profit factor of 16%), the Fed responded with its various pricing sche*Source: Federal Reserve Bank of Chicago booklet, Services. Northwestern Banker, August, 1983 18 “ Fed banks have beefed up their staffs of calling representatives and have equipped them with first-class marketing tools.” dules that vary from one Fed district to another as lo cal costs change. The initial pricing move, according to Fed sources, cost the Fed a share of its previous vol um e-estim ated by some to be anywhere from 12.5% to 16%, dropping from a 40% share to about 35% share. Fed volume began picking up later, based on a more generous availability of funds schedule it in itiated. City correspondent bankers protested, main taining the Fed was taking unfair advantage of the banks as both competitor and regulator. The Fed moved away from the traditional 10 a.m. clearinghouse presentment time to noon presentment, which became fully effective nationwide last month. Noon presentment was announced by the Fed as a fur ther move against float, which reportedly had been reduced from $6 billion a day to $1.7 billion a day. Noon presentment at the Fed cost city correspondent banks a lot of money; it also gave community banks earlier availability on checks presented at the Fed by noon that otherwise would have waited over a day had they not met the 10 a.m. clearinghouse deadline. While a number of community bankers have said they welcome the Fed as an alternative source of com petition, Federal Reserve officials on several occasions have stated emphatically to this publication that “ we are not trying to take business away from correspon dent banks; we are not soliciting their customers.” Contrasting to these statements is the fact that Fed banks have beefed up their staff of calling represen tatives and have equipped them with first-class mar keting tools. These include flip charts that follow a well prepared sales presentation, plus a kit of well-pre pared, attractive folders and documents outlining a number of Fed services. Fed calling representatives also present to community bankers a printout sheet on which is listed the local bank’s clearing activity, the pricing for a regional correspondent bank, and the printout in an adjoining column of Fed prices for com parison, signed by the calling representative. The local bank, then, is urged to funnel its business to the Fed. How are major and regional correspondent banks trying to meet this new competition, as well as com pete with each other? T he N orthwestern B anker survey asked these questions: 1. Is your bank actively soliciting check collection business? What procedural changes, if any, have you made to adjust to changing competition and/or tech nology? 2. Are you currently seeking EDP business from your correspondents? What innovations, new services or other changes have you made in the past 24 months (or are you planning) that would be of interest to com munity bank customers? Every banker interviewed responded affirmatively to the first question. All but four responded affir matively to the second question and one gave no reply to this question. Of the four who said “ N o,” one plans to re-enter this field of EDP service with new hardware just installed, while another offers EDP on a limited basis. DigitizedNorthwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minnesota Dewey A. Senneseth, vice president, First Bank Saint Paul, St. Paul, Minn.: We are actively soliciting check collection and EDP business from our correspondents. ^ On the check collection side, we are continually updating and en hancing our availability schedule. We have established many new direct send points. We will also be implementing a new END-POINT K program to assist us in providing accurate data to our customers and DrosDects Qn ^ processing side, we have recently introduced three new products. One is the implementation of a remote job entry data processing system for banks. This includes sup porting many on-line proof vendors and the “ mini center” concept. The mini-center concept involves a( correspondent or affiliate bank acting as an input center to our mainframe computers here in St. Paul. We have recently completed development of an “ ex panded service” option for D D A users. This service in cludes proof of deposit, bulk filing and automated{ statement preparation. We are also aggressively marketing the sharing of our FASTBANK® service with other financial in stitutions. FASTBANK® is an off-premise ATM system with over 90 locations in the upper midwest. { D.A. SENNESETH Kenneth A. Wales, senior vice president, First Bank Minneapolis, Minneapolis, Minn.: We have not had to make any major procedural change, because our over all philosophy has been to solicit ^ check collection as an important part of our business. We have been continually upgrading and improv ing our accelerated check clearing system by adding more direct £ sends. The addition of direct sends is initiated by needs to clear these items faster for our customers. We feel our schedule is what our com petitors are striving to achieve. 0 K.A. WALES We are seeking EDP business from our correspondents. Recently, we have found our customer banks are looking to the alternative ways that various systems can be delivered. The growing need for more information more quickly has focused at- % tention on systems like on-line savings, proof data cap- 19 ture, Central File and our ATM programs. Though these services are not new in the last 24 months, they have experienced considerable growth and acceptance during the last two years. Donald G. Pederson, senior vice president, Norwest Bank Minneapolis, N.A., Minneapolis, Minn.: To aid us in our active solicitation of check collection business we have: 1. Developed and successfully marketed “ Norwest Clearings” concept to improve availability. 2. Installed Solution I Check Clearing Model to streamline send points. 3. Announced “ Guaranteed Availability Schedule” in response to July 1, 1983 float pricing. D.G. PEDERSON Also, we are currently seeking EDP business from correspondents and for this purpose have developed other EDP services: 1. Automated General Ledger Accounting w/printback for on-line banks. 2. Floating rates within the Installment Loan A c counting System. 3. Adjustable rate capabilities within the Mortgage Loan Accounting System. 4. Infobank - each on-line bank can format, calculate and print its own customized reports. 5. Last, but most important, is the In-Bank Distrib uted Processing (IDP) concept - an in-bank automated/ application proof system “ your hardware-our soft ware” which allows a financial institution to do its own item entry, capture, fine sorting, report printing and batch filing. William F. Klein, vice president, F&M Marquette National Bank, Minneapolis, Minn.: We are constantly monitoring the technological and competitive changes in payment systems mechanisms occurring within and without the private banking sector. Our response, procedurally, manifests itself in our: (1) providing an improved meth od of tracking and communicating funds availability, (2) utilizing float analysis to identify the causes and creators of float, thereby resulting in a more W. KLEIN accurate balance reporting system, (3) introduction of our own unique CashLine Cash Management Program, and (4) installing a Management Reporting System (MRS) and expanding our direct sends program to ex pedite item processing times and maximize check col lections. During the last 10 years we have witnessed the dramatic growth and refinement of micro technology together with the wide-spread appeal and useage of “ in-house” computer systems. From surveys con ducted during that period (the results of which remain essentially unchanged today) we recognized a declining trend of importance and interest in EDP as a corre spondent service. As more of our respondent customers endeavored to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis reduce processing times and costs via user-driven systems on-premise, it became increasingly difficult for us to provide attractive and marketable EDP ser vices consistent with the needs of our customers. As a result, we discontinued the availability of data process ing services and concurrently pursued the develop ment and improvement of new and existing correspon dent services and products. Nebraska Wesley D. Bowen, senior vice president, Packers Na tional Bank, Omaha, Nebr.: At this date, we have made little or no procedural changes. Our solicitation of cash letters is strict ly low-key. We do not have a data processing center of our own; con sequently, check collection ac tivities are curtailed. We have found that where the country bank has installed an in-house computer there has been an increased tenden cy on the part of the country bank ... _ to send us cash letters. W .U . d U W l N -w i •p .i <<x t yy • I qualify the No response in seeking EDP business by stating that, on a limited basis, we do seek EDP business through the computer center we presently use for our own needs. Capability of this center is limited, so our solicitation is limited. John E. Martin, vice president, Omaha National Bank, Omaha, Nebr.: Omaha National Bank helped es tablish a Co-Clearing arrangement with other major check collection processors in the Omaha and Lin coln area. Under this arrangement, banks processed by these centers are exchanged directly, avoiding the additional handling and fees associated with utilizing the Federal Reserve Bank. Over two million items per month are ex changed among the participants. J.E. MARTIN Omaha National Bank also has been utilizing a management reporting system to analyze deposits of correspondents and commercial ac counts. This report helps to identify their deposit mix and, thus, establish deposit procedures to achieve max imum availability. Our bank has one of the most innovative portfolios of services available to correspondents. Our Golden Eagle Services package has the ability to provide cash management services, with automatic funds transfers between debit and investment accounts and access to a line of credit. Target balances can be established, along with transfer structures that achieve mutual goals. Providing this service is only half the story. The other half deals with the ability to analyze the account and determine its profitability. The development of a con sumer profitability analysis is well under way. It will complement the commercial account analysis already in place. With profitability being a key to survival in a dereg ulated environment, asset/liability data becomes of primary importance. This information can be provided Northwestern Banker, August, 1983 20 in a format that will meet most asset/liability package requirements or management philosophies. The delivery of this service is made convenient by an extensive debit card network being tied into national switching networks. Experimentation with home banking has also been done by Omaha National to in sure we are ready for this access method when it becomes popular. Golden Eagle Services also can be provided through Remote Check Processing (RCP) (separate feature arti cle in this issue). With RCP you gain the best features of both in-house and service bureau processing. With minimal computer equipment, the control and flexibili ty of an in-house system is achieved. Freedom from hardware capacity restraints, disaster back-up, insula tion from computer fraud, a broad range of services, skilled data processing professionals, and regulatory compliance monitoring are gained through RCP. This processing environment is both practical and efficient, positioned to meet today’s challenges and provide a flexible future course of action without significant capital expenses for quickly outmoded computer gear. Functions such as bulk filing and truncation are op tions, dependent upon management philosophy and customer base. This environment is made even more flexible by Omaha National’s Personal Computer (PC) Project. Since a PC will interface with a customer’s data base, this will allow the use of a PC as an on-line terminal, on office automation tool for word process ing, or as a processing device for preparing special reports that are picked up directly from the servicer. The impact of the PC on processing techniques will rival impact of deregulation on our financial services. In summary, Omaha National Bank has a comprehen sive portfolio of integrated financial services available, supported by an experienced staff of professionals dedicated to a quality product. Royce Jeffries, installation officer, automated customer services division, First National Bank, Lin coln, Nebr.: To help us in our check collection business we have pursued several courses: We have joined other processors in the state to clear on-us items and on-us items of our DP customers to reduce the expense of clearing those items through Fed. We work with other banks to in sure the most effective transporta tion network for the movement of checks, float improvement, and ex pense control. We established improved quali ty control, in-house float management systems, and state-of-the-art hardware and software for check pro cessing. In connection with our active interest in EDP pro cessing for correspondents we provide these services: Customer Automated Transaction Services - tail ored for recurring fixed dollar customer transactions; i.e. utility budget payments fixed dues, installment payments, etc. New complete payroll services. In-house remote item processing. This provides on site data processing and financial report printing, yet, gives the bank the use of all our resources for updating DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and maintaining applications, on-line access to all bank accounts, central information file, etc. Also, the use of any software enhancements that may be required due to new regulations or changes, or as a result of our research and development. This could be tailored for a wide range of bank sizes. Thomas C. Jackson, second vice president, Norwest Bank Omaha, N.A., Omaha, Nebr.: Interregional clear ings between Norwest affiliates and correspondents has been de veloped. Early a.m. check process ing specifically for clearings and co-clearings has been very suc cessful because of the price and float reduction vs. the Fed. As a marketing affiliate of Nor west Corp., EFT is a significant product for our correspondents. Additionally, flexible report writer T.C. JACKSON systems have recently been added to our product lines to enable us to format its manage ment data as desired. Dennis H. Stelzer, president, National Bank of Com-' merce/Computer Services Corporation, Lincoln, Nebr.: We introduced “ co-clearings” be tween banks we serve, exchanging items outside the Fed electronical ly from Lincoln to Grand Island to' North Platte. We utilize charter flights to move cash letters out of state. We accept cash letters from banks in partially pre-sorted form for a reduced fee. < We actively seek EDP business and offer complete application pro D.H. STELZER cessing—DDA, NOW, MMA, sav ings, CDs, all loans, etc., plus on-line ATMs, CRTs, etc. A new service we have developed is remote process- 1 ing using B-1900 systems “ in-house” in the respon dent bank to capture work. This is transmitted to the NBC/CSC mainframe for processing, then transmitted back to the respondent bank for printing on its own printer. 1 Also, we have developed the use of the micro computer to interface with the mainframe to process a smaller bank—$10 million or less in size. We offer a package—DDA, savings, NOW, MMA, plus CDs, loans and general ledger through micro input and out- 1 put with microfiche permanent data. Missouri P.D. STRAIGHT i Phillip D. Straight, senior vice president, United Missouri Bank of Kansas City, N.A., Kansas City, Mo.: To assist our extensive check collection business we have ex- , panded our direct send network. We have installed an automated check clearing model that reviews clearing alternatives to determine the lowest cost and greatest collec- i tibility of funds. 21 Colorado Don H. Echtermeyer, senior vice president, Central Bank of Denver, Denver, Colo.: W e’re still very competitive with the out-of-zone items. It’s almost impossible for us to compete in the inter-district country items, but we are working with our affiliates and other strategically located respon dents within the RCPC to clear more items direct. We have been out of the data processing business for some time. D.H. ECHTERMEYER Recently, however, we converted to a new software system which allows us to offer a competitive on-line service. We hope to market this ag gressively when we get all the wrinkles ironed out. Gayle Zonnefeld, product and market represen tative, United Bank of Denver, Denver, Colo.: United Bank of Denver continues to offer a quality cash letter service. UBD offers a multiple deposit deadline during evening and early morning hours to aid correspondent # banks in obtaining the best possible availability. We have established an extensive out-bound charter net work and implemented reciprocal check exchange agreements with various correspondents to improve availability. A comprehensive endpoint analysis # system has been established to aid customers in evaluating cash letter sends. In conjunction with the endpoint analysis, we provide consultation to cor respondents to determine the most effective means of check clearing. UBD conducts constant evaluations of # new check clearing opportunities, reporting techni ques, and transportation alternatives. % David W. Fowler, vice president, Colorado National Bank, Denver, Colo.: We are actively soliciting check collection business with competitive pricing, excellent availability, close attention to accuracy, and corre spondent customer service and attention. Iowa Erie Schmiesing, senior vice president, National Bank of Waterloo, Waterloo, la.: We are actively seek ing check collection and clearing business in our market area. Be cause of our large base of corre spondent banks in this area we feel we can provide this service very competitively and still give super ior service. For the last two years we have participated in a county-wide sys tem of direct send return items. This cuts one day from return E. SCHMIESING items for most banks in the county. We hope to implement this procedure for all our cor respondent banks in the near future. We also have implemented what we call the “ NB/W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TT&L option.” This allows correspondent banks to have the National Bank of Waterloo assume their posi tion as a depository. It eliminates the need for a TT&L account, the pledging of collateral and all remittance responsibilities for the correspondent bank. It also means the Fed and IRS receive just one daily transmit tal letter for all participating banks. We are constantly looking for new check clearing al ternatives to maintain or reduce the cost of the check clearing process. We offer a full range of automated accounting sys tems for financial institutions. In addition to the stan dard packages we have the following: 1. Optional, on-line access to our system through the use of CRT terminals or micro computers. Terminals have access to all major bank accounting files and also are used for data entry, eliminating the need for paper source documents being sent to the data center. 2. EFT Services - Participation in the Iowa Auto mated Clearing House as both an originator and a re ceiver of ACH entries. Support for on-premise and off premise A T M ’s shared through the Iowa Transfer Sys tem. Embossing and encoding of plastic cards, at our location, for use in EFT services working through Iowa Transfer System. 3. Flex-O-Pay - an accounts receivable billing system for banks which allows banks to buy accounts receiv able from a retailer, at a discount and do the billing process through the bank using a combined statement. 4. General Ledger - Totally on-line, from entry to descriptive transactions to print back of daily state ment of condition. Includes budgeting and up to 48 ratios daily. 5. Simple Statement Banking - a combined state ment for Checking, NOW, Super NOW, Savings, X-Mas CLub, and Overdraft Banking Functions. A single account number is used for all the above func tions for a customer and all data is carried on a single file. This allows for fully automatic transfers between functions, a combined trial balance and service charges based on combined balances. In many banks single system banking eliminates the need for a costly central information file. Glen W. Piotter, first vice president, Davenport Bank & Trust Company, Davenport, la.: In the last 18 months we have revamped our di rect send network to again send cash letters to the banks we pro cess and to Quad City clearing banks. This has reduced the num ber of items we send to the Fed or RCPC by 36.4%. Our pricing of transit items can be more explicit because of the reduced costs of handling these items. In addition, we have added two more charter flights which provide for improved delivery of items. Currently, 97% of all items received each night meet our regular delivery cut-offs. In Aug ust and September we will upgrade our present MICR reader/sorters for additional thruput. Finally, we have changed the procedure for handling M ICR rejects to provide for faster re-entry and better end-point analysis. A new end-point analysis program enables us to pinpoint additional sending points that deserve reNorthwestern Banker, August, 1983 vised handling. We can analyze end-points by time of day sends and by unit costs alternatives. We analyze every deposit from each bank each month to assist in spotting unique end-point concentrations. For our EDP business we have written a new DDA system and a sub-system for commercial account anal ysis. Both of these applications are parameter driven so that each bank can have its unique features within a “ standard” program. Extensive enhancements have been added in the last 12 months which provide addi tional management information in the areas of asset/ liability management. All of our applications have been updated to provide for the new information re quired by schedules J and L to the Report of Condi tion. During the fourth quarter 1983 we will convert to a new installment loan package with greater features and options for each bank. The first installation of our fully featured general ledger package was made in June and we will convert our existing general ledger application to the enhanced version on a bank-by-bank basis. New applications scheduled for release this year are safe deposit box accounting and fixed asset accoun ting. Continued emphasis is being made in the outline communications area. We are now connected with Electronic Funds Illinois (EFI) and are handling shared ATM transactions for both Illinois and Iowa banks. Mark Christen, vice president, Valley National Bank, Des Moines, la.: Yes, we are actively soliciting check collection business. To be competitive we have adjusted ser vice charges and clearing pro cedures. We are also seeking EDP bus iness. We have installed a “ Tan dem” computer (a non-stop mini) for processing debit card (Instant Access) and teller activity. This should get us as close to 100% up time as possible. Also, we have in stalled a new financial modeling system and asset/liability package which can be used by senior management within the bank. BICS (Banks of Iowa Computer Services) feels that our ability to develop reliable, pertinent information for bank management will be one of the keys to our future. Stephen J. Hatz, vice president, Security National Bank, Sioux City, la.: We implemented a check clearing house for our respondent bank customers in 1981 which also in cludes our data processing center in Mitchell, S.D. In 1982, this clearing house was expanded to in clude other Sioux City banks and their customers. Current participa ting banks number 143. We con stantly monitor availability at various end points to provide our customers with attractive avail ability. As with most data processing providers, the past Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis two years have seen us trying to keep current with the many regulatory changes (Super NOW, HIFI, Small Savers Certificates, etc.). We have met and will con tinue to meet these new processing requirements which soon may include interest withholding. Our future direction lies in providing improved cus tomer services. By year-end 1983 we will offer combined reporting of a customer’s total deposits. Additional enhancements are being made to our EFT/ON-LINE services. We provide all major appplication processing, plus ATM processing, on-line teller support, account origination and in-bank distributed processing. Ivan L. Johnson, Senior Vice President, United Cen tral Bank of Des Moines, N.A., Des Moines, la.: It is the objective of our bank to in crease our share of the check pro cessing market. We have recently made a major commitment to this objective by constructing a multi million dollar operating center, equipped with new furnishings and equipment throughout, including state-of-the-art reader sorters and reject re-entry equipment. We have just announced a new schedule of I.L. JOHNSON prices, reducing basic deposited item fees and incorporating discounts for larger volume depositors. We expect to be very price com petitive with the new schedule of fees. We are also emphasizing to current and prospective correspondent bank customers in neighboring states that we currently collect checks on many banks through our correspondent bank network. These socalled “ swap” arrangements permit us to collect checks on a more rapid schedule and at less cost through the Federal Reserve System. We have developed an asset/liability management system. This system extracts vital information from all our applications and produces management reports. The reports produced monthly depict exactly where a bank is financially positioned. Additionally, a micro computer can have this same data transmitted and au tomatically loaded via phone connection. Using micro-model software developed by UCB Sys tems, Inc., the bank can perform an unlimited number of “ what-if” projection forecasts on the bank’s perfor mance. Jerry N. Trudo, vice president, Merchants National Bank, Cedar Rapids, la.: We can answer very definitely “ yes” to actively soliciting check collection business from respon dent banks. As opposed to the past, we now daily monitor the availability be ing provided to us by various end points, including upstream corre spondents and the Federal Reserve Clearing System, in order to pro vide our customers with the very best in availability achievable through the check clearing system. The advent of Fed pricing on one hand has provided an add-on cost to item processing and, on the other hand, 23 encouraged a more efficient utilization of various transportation and technology to reduce the over all ef fect of these add-on costs. Recently, the competiton and/or technology has provided some upstream de creases in pricing which has allowed MNB to reprice its out of state items on a more competitive basis with area correspondent banks and the Federal Reserve RCPC in Des Moines. MNB also has encouraged the usage of local clearing houses and re-established some direct sends in order to decrease the volume of items, particularly “ Iowa items” being presented through the RCPC in Des Moines. Although we do utilize the Chi cago Fed and upstream respondents for check clearing of out of state items, we also clear directly with other regional Fed districts due to various price differentials. We have responded to the recent competitive and technological changes in item processing and feel we have met the challenge and are constantly reviewing end points, transportation routes, and internal cost controls in order to provide the most efficient and reliable check clearing system for our respondent banks. Our active interest at MNB in seeking EDP busi ness from respondent banks has resulted in these ser vices: 1. On-line “ real time” electronic spread sheet utiliz ing existing terminal network. 2. On-line “ real time” financial results simulator with electronic interface to loan, deposit, and financial information so as to eliminate manual entry of data. 3. Installation of totally integrated deposit system with flexibilities required for today’s deregulated en vironment (demand - savings - time). 4. Automated Schedule “ J ” reporting and repricing reporting for all rate sensitive assets and liabilities. 5. On-line financial control accounting and reporting system with full-cost accounting and budgetary model ing capability. 6. Four-tiered interest payment capability for in Why our bank uses the Fed Editor's Note: Here are comments from a com munity banker who has asked to remain an onymous: RESPONDENT bank cannot afford to over A look clearing through the Fed. In our case, I did an analysis comparing our principal corre spondent and its activity charges versus the new Fed schedule and found that the savings could be as much as $1,000 to $1,200 per month. Corre spondent banks always talk in terms of balances required to make an account profitable and by converting this dollar savings into balances, one can very quickly see savings available to one’s own bank. Three points in regard to clearing with the Fed: 1. When clearing with a correspondent bank, they always show the available balance after the reserve requirement of 12Vi%. That is 87V2% of the net collected balances available for use be cause they have to keep the reserve. The Fed does not have to keep a 12V2% reserve so this benefit accrues to the bank using the Fed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sured money market types of accounts. 7. Advanced customer analysis (profitability) capa bility with customer modeling. 8. Second generation EFT processing capability fea turing the latest technology in “ non-stop” equipment and software to handle local, regional, and national switching requirements and third generation ATMs and teller equipment. 9. Development of complete disaster recovery capa bility. 10. Commitment to the banking industry for imple mentation of management-oriented service so neces sary in today’s deregulated environment. 11. Customer programmed reporting for CEOs, CFOs, and other key management personnel. This ser vice has 24 hour turnaround and is very reasonably priced to encourage its use. 12. Advanced account reconciliation capability for large and very large business clients (locally, regional ly and nationally) of our user banks. 13. Advanced exception item handling in on-line mode so as to reduce internal handling costs and im prove communication between our users and their cus tomers concerning exception items. 14. Advanced item clearing capability through our correspondent affiliates as follows: 1. Merchants National Bank, Cedar Rapids 2. Valley National Bank, Des Moines 3. First National Bank, Sioux City (Ed. note: All are members of Banks of Iowa, Inc., and served by B o fl’s Banks of Iowa Computer Ser vices, Inc., headquartered in Cedar Rapids.) 15. Complete regulatory compliance commitment. 16. Annual third party audits published and dis tributed annually for all users. 17. Dedication to offering a very competitive alter native to: “ in-house” computer capability, remote regional computer servicing, computer cooperative ar rangements, or correspondent bank service bureaus. □ 2. The Fed does not charge for item activity on handling checks issued by the government. With Social Security, income tax returns and other forms of governmental payments, this can be a substantial item amount. 3. The Fed has chosen to pay on the clearing balance account an earnings credit equivalent to the average weekly Fed Funds rate. Correspon dent banks in this part of the world have chosen to pay on the basis of the 90-day Treasury Bill rate. Fed Funds today (March) traded at 8.625% and the 90-day government quote from a corre spondent by 8.4%. That means, if the differential of 22V2 basis points held steady throughout the entire year, that on $1,500,000 the additional ear nings using the Fed Funds versus the 90-day T-Bill rate would be $9.38 per day, or just slightly over $3,420 per year. This is just too significant to overlook. We in the country banks are going to be striv ing very hard to find every avenue of reducing ex penses to offset the additional costs of our dereg ulated products, and this is one area that has to be looked at very carefully because there are sub stantial savings available. □ Northwestern Banker, August, 1983 24 Ralph G. Noren, v.p. of Omaha National’s information systems and payment services dept., at the bank’s main Central Process ing Unit (CPU) consoles. Senior Vice President Stuart Johnson and Cheryl Dryer of the Stockmens Natl. Bk. in Rushville, Neb., review proof data sent to Omaha National’s central processing center in Omaha. Regional Check Processing • . . . a response to market change A N orthwestern B anker interview with RALPH G. NOREN, Vice President Information Systems and Payment Services Omaha National Bank Omaha, Nebr. Editor's Note: a move has been made by some com munity banks toward in-house data processing at the local bank, as opposed to purchase o fE D P at a city cor respondent bank or another service center. This change has evolved in part from the effort by community banks to control costs and has been made more feasible through development o f mini-computers at substan tially lower costs than earlier generations o f com puters. A s it does in so many other areas, the pen dulum swings both ways. A n y business entity affected by a new development, y et wants to compete, will find a way to meet the competitive challenge and will work aggressively to retain and, hopefully, enlarge its share o f business. This article tells how Omaha National Bank typifies correspondent banks who continue to of fer first-rate E D P service at a price that attracts business from a wide variety o f community banks, while making the new technology work in its favor. A look at what some other correspondent banks are doing with E D P services will appear in a following issue. F IVE years ago it would not have been feasible for a bank in Omaha to handle check processing for a correspondent bank in Missouri, Wyoming or South Dakota. The courier distance and cost involved in transpor ting checks and reports back and forth was simply too great. But the advent of new technology and more sophis ticated communications networks has changed that, and Omaha National Bank has taken an aggressive stance in marketing its Remote Check Processing (RCP) services. DigitizedNorthwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Efficient Equipment is Credited “ The recent development of efficient and costeffective data capture and proof equipment designed ^ for the community financial institutions now makes it possible for those banks to enjoy the benefits of regional processing and at the same time take control of data capture and proof functions at their own facili ty,” said Ralph G. Noren, vice president of Informa- q tion Systems and Payment Services at Omaha Na tional. These equipment innovations also have opened the door for Omaha National to extend its traditional check processing reach. 0 Omaha National entered the remote processing mar ket in 1979 with Stockmens National Bank in Rush ville, Nebr. (assets: $31 million), and The Citizens First National Bank of Storm Lake, la. (assets: $106 million). 0 Today, Omaha National has added another bank in Iowa—Boone State Bank (assets: $57.3 million); two in South Dakota—United National Bank of Sioux Falls (assets: $167 million) and Farmers & Merchants Bank of Watertown (assets: $88 million); one in Wyom- # ing—First Wyoming Bank of Laramie (assets: $50 million); and one in Missouri—Pioneer Bank of St. Louis (assets: $78 million). Increased Internal Control The greatest advantage of Remote Check Process- ® ing for the correspondent bank, Mr. Noren said, is the increased internal control that the system provides, plus the access to a nationally-recognized portfolio of application-based data processing products and ser- ^ vices. “ These banks are no longer tied to a courier’s sche dule because they don’t have to depend on a courier to get their items to another bank for primary processing. That job is done in-house, and because of that the in- q stitution’s managers control their own deadlines. They can clear with the Fed, clear with us, clear with other banks—whatever they want to do. They also control their own operations with software-based options rather than being forced to conform to Omaha Na tional’s operations.” The traditional processing day involves as many as nine steps, with eight critical deadlines. “ This means a tight schedule and the chance for error with each re peated handling of a financial institution’s items,” Mr. Noren said. With RCP, the number of deadlines is reduced to five because the courier trips to and from the process ing center and data capture at the processing center are eliminated. Instead, data capture is handled at the local financial institution and the information is trans mitted over telephone lines to Omaha National for use in updating account records. The updated information is then transmitted back to the institution for printing functions there. Omaha National currently supports three general service levels: terminal entry, in which items are sorted manually and entered on a display terminal; proof en try with automated capture and sorting equipment; and computer entry in which a small-scale computer captures checks on a MICR reader/sorter. The appro priate service level depends on the size of the financial institution. Omaha National provides consultation on equipment purchases. A Six-Month Process Under normal conditions, a conversion to RCP re quires a three-to six-month time frame. The first month is devoted to determining equipment needs. A c quiring and installing the equipment takes from one to four months depending on the system. Another month is needed for programming, training and testing. United National Bank of Sioux Falls is the first bank with a full-scale branch network that Omaha Na tional has converted to Remote Check Processing, Mr. Noren said. Some processing is handled at the branch level with micro-computers, while the remainder is handled at United’s main bank. File updating and report generation is accomplished at Omaha National’s data processing center and trans mitted back to United’s main bank for printing. Each branch, however, has immediate access to the infor mation via CRT’s. “ We are working to eliminate as much printed mat ter as we can and instead provide as much information as we can through our CRT network,” Mr. Noren em phasized. “ We want to print only that information that bank managers feel they really need, so that they don’t have to dig through a pile of papers every day to come up with the information they want.” Access to Larger Systems Along with increased flexibility on the local bank level, Remote Check Processing also provides the fi nancial institution with access to the systems capabil ity of a larger processor and the services they offer. “ Some institutions have tried to convert handling their own systems work entirely, but have found it ex tremely difficult to keep up with the new product offer ings and constant regulatory changes that must be translated into software,” Mr. Noren noted. “ This con stant change is the reality of the financial industry to day, and will only become more intensified in the future. Remote Check Processing can really serve communi ty institutions well in that it provides them with local control of operations, yet allows them to take advan tage of the features and functions of the software avail able on our main frame here in Omaha.” Local Market Flexibility Essential Mr. Noren said there is considerable competition in the remote processing arena, and the key to success is to provide systems that can be geared to the insti tution’s local market in general and to target markets in the community. Several of the banks now on Remote Check Processing chose Omaha National over their current processors because they wanted more flexibil ity in their product offerings. “ These bankers are saying, ‘This is our bank, and we want to run it our way to meet the needs of our local customers,’ ” said Mr. Noren. “ Our Golden Eagle Ser vices Information Systems are responsive to that cus tomer objective, so we don’t tell them that they must handle their products exactly the way we do it at REGIONAL CHECK PROCESSING ... (Turn to page 78, please) LEFT—Pat Mullen a proof operator at the First Wyoming Bank of Laramie performs a primary sorting pass on the bank’s proof equipment. RIGHT—Reviewing transmission controls and balancing information sent to Omaha National are, from left, Steve Hofmeister, a.v.p., operations, Jeannie Svoboda, proof oper., and Susan Inkley, bookkeeping supervisor, at the Pioneer Bank of St. Louis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 26 PART III This is the final a rticle in a series of exclusive features presented for our readers in the June, J u ly and August issues on the im p o rta n t sub ject o f “ Planning and B u d g e tin g .” Previous a r ticles by three m idw est banking consultants, by a m ajor bank strategic planner and by four C om m unity Bank CEOs are com plem ented on the fo llo w in g pages by another CEOs in-depth analysis of how his bank approaches “ The Planning and B udgeting Process.” C om m ents from readers regarding this to p ic, your own ex periences, observations or, perhaps, questions about the process w ill be welcom e. Planning d isc ip lin e c r e a t e s — Goal oriented detail Written especially for T he N orthwestern B anker By NORMAN L. SCHULTZ President Watseka First National Bank Watseka, 111. HE IMPORTANCE of strategic planning is the creation of a disciplinary approach to plan develop ment that specifically creates goal oriented detail such as: Budgets, Management Systems, Innovation, and positive management atmosphere. Expressed on a comparative basis, our strategic plan is based upon a time-tested, entrepreneurial formula of return on equi ty of no less than 15%. Strategically important is the quality of assets and management in relationship to leverage (capital to assets). Collateral to that function is the “ goal oriented” detail: adopted performance ra tios of the balance sheet and P & L configuration that T Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis spawn idea development into action for profitable pro ducts and services. If this is strategic planning, why? 0 The best answer that I have recently found is this: “ The first and most important management task for any bank must be strategic planning. And, if I were chief executive officer of a bank facing this challenge, I would post this warning on the front of every planning 0 document—‘Avoid following the herd.’ Innovation will become more important. The successful implementa tion of your strategic plan and your marketing stra tegies will require new emphasis on people and man agement.” (American Banker, May 10, 1983, p. 17.) 0 Attitude and Framework The following describes our attitude and framework for planning. 0 The budgeting process in our bank represents more 27 than a set of numbers which is oftentimes a hoped-for ® result upon maturity of a fiscal year by what I believe is a diminishing number of our industry managers. There are management people who develop budgetary numbers first and then direct their management plan in a retrospective manner. I believe that the best ® budget comes from thorough planning first and that the adopted budget becomes the monitoring process. In this fashion, concepts can be tested with reality and the annual, inherited pattern of thought and action is broken into relevancy. The plan is more important * than the budget so long as the ultimate corporate R.O.E. is consciously achieved. We also believe that good planning comes from the process of thorough management participation, all year long. Planning must not be obscure! Obscure planning will relent to mysticism and disguise par ticipation, although shroud the C.E.O. in an aura of management intellectualism. In our bank all official staff members (nine officers) must know the meaning ^ of management planning and the plan. We begin with an educational process of learning in weekly, Tuesday morning staff meetings and repetitive, regular, and committee board meetings. Many of our officers are assigned specific responsibilities and must give ar^ ticulate reports to the board, all of which must inter face with the management PLAN. Interfacing means knowing industry terms such as R.O.A., R.O.E., Spreads, Margins, A/L Management, Liquidity, Sen sitivity, Gaps, and the like. Moreover, our corporate goals must be understood and the comparative phil osophy of our goals to those of our competitors as well as the regulatory, external environment. It has been my experience that until these issues are understood, management participation cannot become meaningful; not to mention the positive impact upon the execution of the plan through concerted team effort. The major planning issues begin at mid-calendar year to up-date our five-year plan by examining what we think is the most likely condition that will exist throughout the coming year. The “ What If” condi tions are examined in broad terms of external and in ternal influencing factors. We begin examining the regulatory, economic and political spectrums that are external in nature and which we cannot control. From these perspectives, we adopt attitudes or philosophies that become catalytic to our management thinking. 9 0 0 0 0 • ® ® _ 9 External Factors I. For example, the OCC strategic plan officially an nounced in Volume 1, #1, dated Nov. ’81, of the Quarterly Journal, impacted major areas of our 1982 and longer range planning. To name a few: 1. Required Capital & Management Performance 2. Risk Management Concepts Regarding: a. Deposit Volatility b. Interest Rate Volatility c. Management Systems d. Public Financial Disclosure 3. The Competitive Environment 4. Market Expansion 5. Technology and Systems These areas and others are carefully examined for short term tactical and long range planning tech https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis niques. In addition to determining the components of required changes that will assure successful planning, we focus on enforcement actions as reported in the Controllers Quarterly Journal. There is a high degree of correlation between specific problems as reported under enforcement actions and good bank manage ment initiatives that are required today. In this contex, bankers must approach all material with an in vestigative and analytical attitude and come to their own conclusions for practical planning issues. In addi tion, we monitor current issues as they develop with the Federal Reserve, other regulatory bodies and Con gressional initiatives. Our entire environment is per meated with changes, proposed or otherwise, all of which we attempt to assimilate into our planning pro cess. “ Planning must not be obscure! Obscure planning will relent to mysticism and disguise participation, although shroud the C.E.O. in an aura of management intellectualism.” II. The second external factor which we examine is the most likely condition that will exist in the economy that will impact the bank’s asset base in relationship to loan quality, loan demand, and price sensitivity be tween funding sources and loan yields. In this regard we develop two scenarios, a rising and falling rate en vironment. In addition, we forecast the required in vestment needs as a counterpart to the primary lend ing function as it relates to Gap management, spread, relationships, and resulting margins that are required to meet the bank’s R.O.E. objectives. Several “ What I f” conditions under a rising and falling rate market are first forecast under different growth ratios between fund sources and uses of our Micro Data Processing model. Quarterly Balance Sheets, Profit and Loss, Statement of Margins and several performance ratios are produced, based upon assumptions. At this juncture, an analysis is made regarding Gap Management and Rate exposure on mis-matching in vestments with liabilities and the potential principal gains on investments that would result from falling rates. The reverse relationship is also quantitatively analyzed. If the forecast is for increasing rates, a thorough quantitative analysis is made of the cost of holding investment assets short. Either position may be adopted so long as the cost of each is understood and the management plan is flexible for changing rap idly. This approach requires an instant decision-mak ing process and sometimes frequent changes. The al ternative process for matching rate sensitivity may be the futures market. Both processes appear to have risk and the next challenge to our management team is to develop an informed view for utilizing the future market. III. The third external factor which we examine is the most likely conditions that will exist in the regulatory and political arena that impact further deregulation of liabilities and assets. We program cost changes into our forecast and continue the “ What If” games. Northwestern Banker, August, 1983 Internal Factors After external conditions are exhausted we switch emphasis to internal conditions that are reasonably under our control. It is at this point that budgeting begins to develop from our computer forecasting mod el. First, though, we draft solid viewpoints from our analytical view of the regulatory and economic frame work. For example: 1. Funds are relatively easy to obtain. It will be a matter of price and public confidence. 2. Employing funds on the asset side profitably requires work, imagination and a collective ef fort. 3. The passive role of salesmanship belongs to yesteryear banking and an active salesman ship mode must permeate the organization. 4. Free Market Price (interest rates) will deter mine who the borrowers will be, and the loan evaluation process must take into account such profitability pressures. 5. A new order of economics will prevail through out the ’80s, most of which will be volatile and forever changing, broadly based upon the free market price relationship between the pro viders of funds and the users of funds. 6. Opportunities will exist but timing will be crit ical. If these viewpoints are agreed to, budget ing moves into a definitive form. Operating Expense Examined The first area under explicit control is all operating expense that will be required in the New Year. During the first draft, expense items are reviewed for effec tiveness and not for cost cutting. The cost of all ex isting expenses, plus their anticipated increases and new needs are quantified. New needs that require cost ing include professional staff development, new staff members, equipment and systems. In this regard, all new equipment and system proposals must be cost jus tified by virtue of an improved productivity level and improved customer services. Labor, the second largest expense of the bank, must also be subjected to improved customer services and productivity during the five year planning cycle. After thorough analysis from an expense effective ness viewpoint, the operating expenses are loaded into the forecast model. A consensus is formed regarding the “ do nothing’ ’ arrangement on balance sheet mix, and current rates are forecast with adjustments neces sary for deposit retention (i.e. de-regulation). The bot tom line is established based upon the above forecast and the new expense structure. If the bottom line is adequate, a growth rate is identified and planning becomes simple (do more of the same). However, in the real world, bottom lines are generally planned, if they are to happen. The next area for Budget Planning is to review those things which we explicitly control through asset allocation and marketing potential. Profit Improvement Should income fall short of our R.O.E., we re examine asset mix for Profit Improvement. Having be gun over three years ago the kind of planning which I am describing now gives us explicit rate sensitivity control through Gap Management, which currently is $1.13/1.00 assets over liabilities. All interest-paying Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis liabilities are considered rate sensitive with the excep tion of a small passbook savings category and interest free DDA, which represents a small percentage of our total liabilities. Our rate sensitivity framework deals with aggregate, 30-day matching on a moving twelve month time span. Our corporate goal for today’s envir onment is 1 to 1 match other than temporary mis match for investment strategy. This approach creates product orientation on the asset side, which enhances the marketing spectrum of planning. Currently, 90% of the loan portfolio is matched with either identical maturities or variable rates. Product development driven from the A/L management needs brings cre ative marketing to the lending function, with a posi tive focus on balancing the bank’s overall asset needs. In addition, some of the same benefits accrue to the in vestment function, particularly in regards to portfolio supervision with day-to-day market trends. Our 1984 plan will soon begin and we will examine the A/L matrix on both sides of the balance sheet for improved control and product development. Liabili ties, however, are seldom explicitly controlled in our GOAL ORIENTED DETAIL ... (Turn to page 69, please) Aids for Planners WO SOURCES of help for bankers who are considering a new or updated strategic plan are: 1. Planning Resource Directory from Amer ican Bankers Association, 1120 Connecticut Ave., N.W., Washington, D.C. 20036. Prepared by A B A ’s corporate planning division, it lists more than 150 consulting firms and research organizations capable of assisting financial in stitutions in their planning. A second section lists professional and trade organizations, while a third section gives sources of valuable statistical information. The consulting firms’ listings give details of the type of service each firm can offer, as well as pertinent details of firm members, address, phone number and types of banks served. A B A member price is $30. The Planning Resources Directory catalog number is 086000, and the order department number is 202/467-4118. 2. Directory o f Management Consultants is compiled and published by Consultants News, the confidential newsletter of the consulting profession, located at Templeton Road, Fitzwilliam, N.H. 03447. (Tel.) 603/585-2200. Ed itor James H. Kennedy reports that this third edition lists some 774 firms and “ is the most comprehensive compilation of information about management consulting firms ever pub lished.’ ’ After listing the 774 firms, as well as solo practitioners, there are cross indexes covering the services offered, industries served, geographic, and an alphabetical listing of the key principals in management firms. The 400-page book stresses the importance of mem bership by listed firms in a recognized manage ment consulting trade organization. T The Smart Money is Heading to Atlanta 68th Annual Convention of the Bank Marketing Association --1 -- Managing for Profitability: m i T- — 1—I—I—I—r 1 __ THE MARKETING CHAÉUSNéE _ THE ATLANTA HILTON • ATLANTA, GEORGIA • O CTO BER 2 3 -2 6 , 1983 to The good n ew s is, deregulation is going to m ake m arketing people the hero es of the banking industry. BANK M ARKETIN G A SSO CIATIO N The bad n ew s is, hero es aren ’t allow ed to fail. Which means that marketing will not only be expected to make a greater contribution to bank profitability, it will also be held more accountable. That’s why the smart money is heading to Atlanta in October. To get a crash course on what marketing people can do to insure their own success and the success of their banks. It’s the 68th Annual Convention of the BMA, and the cynics among us are already calling it a survival course. Here are some of the highlights: ■ Presentations from non-banking executives who have fought the battle of deregulation. And won. Which gives us a chance to learn from them, instead of reinventing the wheel. FO R F U L L D E T A IL S C A L L S H IR L E Y A N T E N U C C I A T (312) 782-1442. to BANK MARKETING ASSOCIATION 309 W. Washington St. Chicago, IL 60606 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ A fascinating analysis of the trends that are shaping our lives and our futures by John Naisbitt, author of the current best-seller MegaTrends. ■ For perhaps the first time in history, the presidents of three Federal Reserve Banks on the same podium, discussing the future of our industry from their unique perspective. ■ Workshop sessions developed along five different tracks. You can follow one track all the way through, or you can mix ’n match. ■ “ How To’’ sessions, which you’d expect, and “ Why To’’ sessions, which you might not expect. So, you can not only learn the nuts and bolts, you can also explain the concept to top management. And that might be the most important thing you’ll ever learn. ■ We’ve left room for a red-hottopic session. Nobody knows what it’ll be about, but you can bet that by convention time the rumor mill or DIDC will have given us all something to talk about. ■ And, apropos to our Georgia convention site, we’ve put together a peach of a program on the social side. For you and your spouse. So, before you do anything else today, send in the attached response form for further information and a convention registration form. And join the sm art money in A tlanta. Name_______________________________________ Title________ ________________________________ Institution___________________________________ Address_____________________________________ City___________________________________ State Phone ( )____________________________ Zip 30 O O O In a world filled with ° hardware and software... O o ° we offer HUffiftnUJflRE o o O o o o o o o Sometimes the human side of banking is more perplexing than the computer side. That’s why the Human Interest bank offers you Humanware. Call us toll free (800) 322-2212. Give us the opportunity to show you how our Humanware can make a big difference in your bank operation. o Humanware . . . people you can count on for quick and concise answers to your banking questions. Humanware . . . people to help you sort out the correspondent or corporate services you need. Humanware . . . people who have the expertise and commitment to help you with everything from cash letter processing to estate and trust services. o the Human Interest bank o Commercial National Bank of Peoria Member Midwest Financial Group, Inc o COMMERCIAL BANKING DIVISION 301 S W, Adams Peoria, Illinois 61631 Phone: (309) 655-5000 o MEMBER F.D.I.C. o o o Brock Hessing Marshall Martyn o Cliff Michael o o o o o o o o o o o Jan Kepple DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Art Hippie Dorothy Newlin O 20-144 31 rora. Mary Cino serves as the bank liaison for the new program. Aurora Brokerage Centre, as it is called, allows bank customers to buy and sell securities at commission discounts up to 70% depending on volume. r Illinois D.R. L o ve tt, ch m n . & pres., D ixo n Two Board Members Added W . J . H octer, exec. v . p . , C hicago FDIC Approves Transfer of Failed Bank’s Deposits 0 mizes disruption to the bank’s cus tomers and to the community, the procedure may be used in future deposit payoffs. On Friday, July 8, Union National Bank of Chicago was closed by Doyle Arnold, Acting Comptroller Named in Galesburg of the Currency, and the FDIC was Albert C. Dickson, Jr., has been named receiver. Having experienced named senior vice president of lend 0 substantial earnings problems, com ing at First Galesburg National pounded by a deterioration in the Bank & Trust Company, Galesburg. loan portfolio, Union National was Mr. Dickson previously was sen unable to remedy its problems and ior vice president for commercial losses finally exhausted the bank’s lending with the Harter Bank & • capital funds, resulting in its in Trust Company in Canton, Ohio. He solvency. has also held a variety of positions An attempt to arrange a merger with National Bank of Detroit relat of the failed bank into another in ing to commercial lending, business stitution was unsuccessful because customer relationships and in a • no acceptable bid was received, re managerial capacity. quiring the FDIC to pay off depos itors up to the insurance limit. The Two Join Elmhurst FDIC elected to make insured de Bank, One Promoted posits available to their owners by Elmhurst National Bank has an • approving the transfer of insured nounced the promotion of Mary Gail deposits to Seaway National Bank, Bielawski to operations officer, and Chicago, representing the first use the addition of John E. Pierce, EDP of a procedure authorized by Section 11 (f) of the Federal Deposit In- auditor, and Jeffrey C. Schemer, ® surance Act. The sole office of the trust officer. Ms. Bielawski started in banking closed bank was reopened on Mon day, July 11, as a facility of Seaway. in 1981 with the Bank of La Grange All insured deposits in Union Na Park, where she worked in the per tional were immediately available to sonal banking area. She joined the ® their owners, checks drawn on Elmhurst bank later that year. Mr. Pierce, who will be responsi Union National accounts continued ble for developing and implementing to be honored and customers who computer auditing techniques, start had interest-bearing accounts in Union National continued to earn in- ed his auditing career in 1978 with ® terest according to the terms of their Continental Illinois National Bank of Chicago. deposit contracts. Mr. Scheiner previously was em Insured deposits in Union Na ployed as assistant trust officer at tional amounted to $23.5 million in the Palos Bank & Trust Company. 13,400 accounts. Approximately Prior to that he was assistant in ® $1.5 million of the bank’s deposits exceeded the insurance limit of vestment advisor at Continental $100,000. Their owners will share Bank, Chicago. proportionately with the FDIC and Aurora Bank Offers _ any other uninsured general cred^ itors in the proceeds realized from li Discount Brokerage Services quidation of the bank’s assets. Ralph Egeland, president of The FDIC board indicated that if Aurora National Bank, announced the payment of insured deposits that as of last month the bank now ^ through a transfer of accounts to offers discount brokerage services w another bank satisfactorily mini through Oberweis Securities of Au https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At the June meeting of Old Se cond Bancorp, Inc., addition of two new members to the board of the Bank of North Aurora was reported by Herman A. Tatz, president and chairman. Added are Bancorp presi dent James E. Benson and Ronald J. Carlson, its treasurer and assistant secretary. Acquisition Approved The Federal Reserve Board re cently announced its approval of the application of Northwest Suburban Bancorp, Inc., Mount Prospect, to become a bank holding company by acquiring First National Bank of Mount Prospect; Countryside Bank, Mount Prospect, and First National Bank of Lake Zurich. C h icago Arthur J. Theriault, 48, has been elected e x e c utive vice presi dent of Amal gamated Trust & Savings Bank. Mr. Theriault has been serving as vice president of bond and trea sury services at Continental IIA j THERIAULT lmois National Bank and Trust Company of Chicago, which he joined in 1967. Northwestern Banker, August, 1983 32 When the bank guaranteed that you would only deal with one person, you didn’t know they meant one after another. Perhaps it’s happened to you. Just when you had built up a working relationship with your correspondent banker, the bank moved him up the corporate ladder and off your business. All too often, a large bank can be insensitive to the needs of small respondent banks. Yet smaller banks that can give you plenty of personal attention can’t always give you the expertise and the clout you need. And you’re caught in the middle. You do, however, have an alternative: Norwest Bank Midland. We’re big enough to handle any of your corres pondent banking needs. But we’re still small enough to Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis respond to your individual concerns. We’ve deliberately kept our Correspondent Division small, so that you can deal directly with a decision maker. Each of our correspondent bankers has from 12 to 25 years of experience in the business, so they thoroughly understand the needs of respondent banks. They take the time to personally call on both the respondent bank and the respondent’s customers. If you’re tired of banks that are too large or too small, come to Norwest Bank Midland. You’ll develop a close working relationship with one of our correspondent bankers. Not one after another. We’re big enough to know how and small enough to know you. Norwest Bank Midland, N.A 401 Second Avenue South Minneapolis, Minnesota 55480 (800) 752-4200 Member FDIC O 33 computer department. The bank re cently purchased an in-house com puter to handle data processing for five banks. Mr. Beito most recently gradu ated from St. Olaf College in Northfield with a BA degree in economics. Four Minnesotans Named To Newly Created Board Staff Changes Announced At First American, Marshall At First American Bank & Trust of Marshall, Richard G. Hurdelbrink has joined as senior vice president, loans; C. Jean Krueger has been named assistant vice president, retail banking, and Jane L. Eberwein has been elected personnel and security officer, a position previous ly held by Ms. Krueger. Prior to joing ing the bank, Mr. Hurdelbrink served as senior vice president of United Bank of Bismarck, North Dakota. He has also been associ ated with First National Bank of Bowbells and C.J. KRUEGER J.L. EBERWEIN Production Credit Association of Minot. Ms. Krueger, who joined the bank in 1975, will be responsible for devel oping the merger of the consumer loan department and customer ser vice departments in a retail financial center. Ms. Eberwein joined the bank in 1981 and has supervised the cus tomer service/teller function. Marshall Elections Told The board of directors of First Bank Southwest, headquartered in Marshall, has elected William King president of First Bank SouthwestIvanhoe Office and Walter Strang https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Four prominent Minnesotans were named recently to a newly cre man president of First Bank South- ated Seaway Port Authority of Du west-Minneota Office. Donald J. luth Advisory Board by the Port Venne continues as chairman and Authority’s Board of Commission chief executive officer of First Bank ers meeting in Red Lake Falls. Southwest. The four include Earl B. Olson, The board also has elected George chairman of the board, Jenni-OM. Leland, a director of First Bank Foods, Willmar; Alfred E. France, Southwest. Mr. Leland is managing president, Lake Superior Industrial director of First Bank System’s Bureau, Duluth; Merle Hedland, ex southwest Minnesota banks. ecutive director, Minnesota Associa Mr. King has been associated tion of Wheat Growers and the Min with First Bank System since 1972 nesota Wheat Research and Promo when he joined First Bank Wor tion Council, Red Lake Falls, and thington ajs agricultural represen Ralph O. Avery, assistant vice pres tative. He most recently has served ident-sales and service, Burlington as vice president, credit, of First Northern Railroad, St. Paul. Bank Ivanhoe. Mr. Strangman joined First Bank V.P. Elected in Brainerd System in 1958 at First Bank Aus Mike Cartie has been elected vice tin. He currently serves as president president in charge of opera of the Ivanhoe Office of First Bank tions at Citizens Southwest. S ta te Bank, Elected in Owatonna B r a in e rd . He Frank A. Flicek has been elected assumes respon as personal banking officer of Nor- sib ility for a west Bank Owatonna, N.A. He will number of opera be located in the personal banking tional areas in cluding the cus center of the downtown facility. Mr. Flicek previously has had tomer service de four-and-a-half years experience partment, tell with Norwest Corporation, most re ers, bookkeeping M. CARTIE cently in the Minneapolis office of and check pro Norwest Audit Services. Prior to cessing-proof department. Prior to joining Citizens, Mr. Carthat, he was employed at the tie was supervisor of the business, Norwest affiliate in Rochester. office and distributive education Joins O fficer Staff programs at the Brainerd Area V o Dave Beito has joined the staff of cational Technical Institute for six Northern State Bank in Thief River years and also was instructor for the Falls as officer in charge of the new banking and finance program there. 1983 M innesota D istrict M eetings Date September September September September September September September 20 21 22 26 27 28 29 District Location 8 6 9 3, 4 and 5 7 2 1 Holiday Inn, Fergus Falls Sunwood Inn, St. Cloud Holiday Inn, Duluth Registry Hotel, Bloomington Ramada Inn, Rochester Orchid Inn, Sleepy Eye Best Western, Montevideo Northwestern Banker, August, 1983 34 Our advice w ill save you double what you pay for it, or you don't pay for it. And that's a guarantee. Management Consulting Services for Bankers by Bankers. Remaining profitable is an ever-expanding challenge for bankers today. Increased competition, technological advances, and the growing complexity of operations are putting pressure on many bottom lines. A dd to these pressures the fluctuation in interest rates, and it's easy to see why none of us can afford to rest on our past performance. For all of us, change is no longer an option, its a way of life. At First Bank Saint Paul, our correspondent banking division has a way for you to stay on top of the changes and remain profitable. It's called Management Consulting Services. And we're so confident we can help you, that we'll give you this guarantee. Our advice will save you double what you pay for it, or you don't pay for it. Our Management Consulting Services are headed up by Dick Franzmeier and lerry Haenggi who have over 44 years of combined experience in banking. Several years of that experience are at the senior management level. They will provide you with an in-depth analysis of every phase of your bank's operation and recommend improvements to enhance efficiency and increase profits. Their experience can help you in areas like these : Teller Operations, Staff Scheduling, Check Collections, Cash Management, Loan Operations, Customer Service Operations, Automation Alternatives and Opportunities, Management Organization, Bank Stock Appraisals, Micro Computer Opportunities, Building and Space Planning, Accrual Conversions, and many other specific areas of operation. In the past two years they've helped over 40 banks with assets from $5 million to $125 million turn problems into profitable opportunities. And the average bank was shown how to save over $175,000 per year. If you'd like to know more about our Management Consulting Service, call the Correspondent Banking Division at 612-291-5585. And remember to ask about our guarantee. First Bank Saint Paul ^B ^ Member First Bank System Correspondent Banking Division 332 Minnesota Street Saint Paul, Minnesota 55101 Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 N asset/liability management consulting service to guide other banks in management of their resources has been formed within the correspondent banking depart ment of Norwest Bank Minneapolis, N.A. The service is the first of its kind o ffe r e d b y a bank in the Up per Midwest, ac cording to Don ald G. Pederson, senior vice presi dent and head of corresp on d en t banking. “ The o b je c tive of the new D.G. PEDERSON consulting ser vice is to provide a framework for banks to plan, organize and control their resources to achieve their goals and objectives,” Mr. Pederson said. He called the consulting service “ a comprehensive development pro cess,” pointing out that the service provides development of manage ment resources, a strategic financial plan, a policy manual and a decision support system. The process covers a time period of about two and a half months. “ During the process,” he said, “ specific objectives are set to help the bank manage the allocation, mix, maturities and pricing of all resources, placing particular em phasis on managing net interest margin.” Mr. Pederson said the decision to set up the asset/liability consulting service was made because “ all evi dence points to the fact that it will become increasingly difficult for banks to maintain historic profit ability standards. This not only ap plies to regional and large money center banks, but to all banks.” The consulting service will be managed by Scott C. Ulbrich, assis tant vice president and head of the A Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis consultant services division for the bank’s correspondent banking de partment. He will be assisted by Cindy J. Erickson, consulting ser vices representative. Pamela K. Woodhams-Fuller has been elected director of internal audit at Amer ican N ation al Bank, St. Paul. * * * M s. W oodhams joined the F&M Marquette National Bank bank in 1979 as has appointed Robert F. Bodeau as an auditor train director of marketing and James F. ee and the fol year Senske has been named vice presi lo w in g became an oper dent of Marquette Lease Services, Inc., the equipment leasing and fi ations auditor. nancing subsidiary of Bank Shares In 1981 she was PK- WOODHAMS promoted to auditor senior and most Incorporated. Mr. Bodeau is responsible for recently has been EDP auditor. ♦ s|e 3(e marketing services for F&M Mar Norwest Business Credit, Inc., re quette and its parent company, cently announced the addition of Bank Shares Incorporated. In this Robert G. Riggs, CPA, as assistant vice president/field examination department. He previously served • as vice president for Drag Special ties, Inc., of Minnetonka. He also has held positions in several other firms. Three new field analysts have ® joined NBCI. David L. Griggs was a former corporate staff accountant R.F. BODEAU J. SENSKY position, he also will have a market ing relationship with Bank Shares affiliate banks. Mr. Bodeau joined F&M Mar quette from Campbell-Mithun, In corporated, where he was an account supervisor. Prior to that, he was with General Mills from 1954 to 1980 where he was marketing direc tor and director of media and tele vision programming. Mr. Senske will be responsible for the organization’s leasing consul tant service offered primarily to in dependent banks as well as manu facturers and insurance companies. Prior to joining F&M Marquette, Mr. Senske was a vice president, commercial transporation group, Gelco Equipment Leasing Corpora tion, Eden Prairie. 37 G ary R ohlfsen Speaks Overlines When one of your customers needs to borrow beyond your limit, or when you run into a com plicated credit situation, it’s helpful to talk with an experienced banker who cares about com munity banks. That’s Gary Rohlfsen, and that’s American. We are particularly sensitive to the needs and pressures faced by independent community banks. We believe in cooperation, not com peti tion, for your customers. We want to be your partner and help you solve your problems. It’s easy to put an American correspondent banker to work for your bank. Just call (612) 298-6331. A M E R I C A N N A T I O N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K * S A I N T P A U L Northwestern Banker, August, 1983 38 M in n e s o ta N ew s with General Mills, Inc., Roger Pfiffner, CPA, graduated from the Uni versity of Wisconsin-River Falls. Maureen P. -Thul, formerly a staff accountant for R.C. Hoover & Co., Ltd., is also a new field analyst. Promoted to assistant loan ad ministrator were William C. Phelps and Valdis R. Inde. Both joined NBCI In 1981. * * * Darryl D. Hansen has been elected vice pres ident of com mercial market ing for the com mercial banking group of Norw est C orp ora tion. Before joining the co r p o ra te staff, Mr. Han D.D. HANSEN sen was execu tive vice president at Norwest Bank MetroWest, N.A. * * System since 1978, most recently as vice president of strategic planning. * * * First Bank Minnehaha, Min neapolis, recently announced the fol lowing promotions: Eric C. Iversen, senior vice president; Donna M. Raske and Russell E. Kruse, Jr., vice presidents; Gregory A. Wittnebel, commercial loan officer, and Dawn M. Morin, operations officer. Mr. Iversen started with the bank in 1977 as vice president in retail banking. His new respon sibilities include credit adm ini stration for the bank and man agement of the E.C. IVERSEN commercial lend ing divison. * First Bank System, Inc., has an nounced the election of Gary A. Foss as vice president of staffing and employee relations and John M. Warder as vice president of urban affairs for the company’s 16 metro area affiliates. D.M. RASKE R.E. KRUSE, JR. Mr. Foss most recently served as director of personnel development, planning and affirmative action for the Target Stores division of Dayton Hudson Corporation. Mr. Warder, who has been associ ated with First Bank System since 1968, will also continue in his pre sent capacity as chairman and a director of First Bank Plymouth, Minneapolis. He had served as presi G.A. WITTNEBEL D.M. MORIN dent of First Bank Plymouth from Ms. Raske started in the corpor 1969 until 1981 when he was elected ate office in 1979 and joined the chairman. Minnehaha bank in 1982. Her re * * * sponsibilities include the bank bus Bruce W. Bean has been elected iness development and marketing president of FBS Financial Corpora programs along with management tion. He w ill of the retail banking deposit area. report to Phillip Having joined the bank in 1974, L. Hendershott, Mr. Kruse’s responsibilities include former president the consumer loan, real estate loan, of FBS Finan collection and compliance areas. cial, who now Mr. Wittnebel started in 1980 and serves as senior previous to his appointment worked vice president of as a credit analyst and commercial First Bank Sys lending in the commercial lending tem ’ s banking department. Ms. Morin has worked related businessg w BEAN in operations as a proof operator, es division. teller and teller supervisor. She joined Mr. Bean has been with First Bank in 1977. Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Federal Reserve Bank of M in -^ neapolis recently announced that® Charles L. Shromoff, assistant gen eral auditor, has been named general auditor. He succeeds Howard L. Knous who is retiring. Kathleen J. ^ Balkman, government and media pro- W gram coordinator, has been named vice president and secretary. * * * William J. Braun has been named ® vice president of First Bank La Crosse, Wis., with responsibilities in the corporate credit and lending division, announced Stanton M. Jorgens, president. • First Bank La Crosse is part of the First Bank System, Inc., head quartered in Minneapolis-St. Paul. Director Elected • The board of directors of Citizens State Bank, Brainerd, recently elec ted Arnold S. “ Arnie” Johnson to its board, filling the position created ^ by the retirement of Marvin R. ® Campbell. Mr. Johnson is owner, president and chairman of the board of Uni versal Pensions, Inc. in Brainerd ^ which offers a variety of services to financial institutions and other cor porations throughout the United States. Two Promoted in St. Cloud * The First American National Bank of St. Cloud has announced the promotion of Jerome H. Johnson to assistant vice president and Ran- # dall A. Berns to trust officer. Mr. Johnson attended the St. Cloud State University and joined the bank in January, 1982. Mr. Berns also attended St. Cloud State # University and joined the bank in March, 1982. Joins Pierz Bank Randy E. Morehart has joined the Farmers & Merchants State Bank, Pierz, as assis tant cashier and loan officer. He previously was employed at the Liberty National Bank & Trust Co., Dickinson, North Dakota, as an instalment m V ¿m r loan officer. Mr. R.E. MOREHART Morehart has a BS degree in business administra tion from Moorhead State University. We’ve Changed Our Name. BREMER m Bremer Financial Corporation Our previous name —the Otto Bremer C o m p a n y-su ite d us perfectly for more than 40 years. But today it no longer accurately reflects what we do. That’s why we changed our name. Now we are BREMER FINANCIAL CORPORATION, a name which better describes our activities in banking and agricultural credit. BREMER §s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Even our new name doesn’t tell you that w e’re one of the largest bankholding companies in the Upper Midwest, or that 29 First American Banks in Minnesota, North Dakota and Wisconsin belong to our system, or that our assets exceed $1.3 billion. But well tell you more about that another time. Bremer Financial Corporation Suite 700 55 East Fifth Street St. Paul, MN 55101 (612) 227-7621 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You Don’t Have to Travel This Road Anym ore. With Rem ote C h eck P ro ce ssin g from Omaha National, you can reduce your bank’s dependence on couriers, while increasing your processing flexi bility and your ability to handle special customer situations. Omaha National offers remote processing options to meet the varying needs of correspondent banks, from terminal entry systems with manual check sorting, to proof entry with automated capture and sorting capabilities, to computer entry While reducing courier and se rv ice expense, Remote Check Processing provides for capitaliza tion of fix e d e x p e n s e s and im p ro v e d float management. Most important, with all the advan tages that in-bank sorting equipment offers, you still have the expertise of a major bank data processor behind you to provide consulting, com petitive products and systems back-up. So if you're tired of traveling the same old road in check processing, contact Omaha National’s Corre spondent Department at (402) 348-6565. © Omaha National Banl^ Farnamat 17th • Omaha, Nebraska 68102 (402) 348-6565 • M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 Minnesota News Otto Bremer Company Changes Name TTO Brem Sidney Fitch as cashier and Patricia Crowley as assistant cashier and manager of the instalment loan department. George Leland, manag ing director of the Southwest Min nesota Banks, has been elected to the board of First Bank Luverne. Mr. Fitch is responsible for all operations, personnel and assists with lending. Ms. Crowley also manages the marketing department and assists in the agricultural loan department. The new identity will be announced with the largest system-wide promo tion program ever undertaken by la r g e s t ban k Bremer. Created by Coleman & h o ld in g c o m Christison, Inc., a national agency pany in the tri based in St. Paul, Bremer’s promo state region of tion includes extensive newspaper, Minnesota, Wis radio and magazine advertising and consin and N orth Dakota, is a week long, system-wide contest undergoing a corporate name and with prizes of a car, trip and tv. symbol change effective August 15, Locally, banks will be offering a 1983. Bremer Company employs ap $400 savings account and special proximately 1,200 persons working Bremer prizes. Rochester Director Named in 51 offices and has assets ex Although Bremer Financial Cor Norwest Bank Rochester recently ceeding $1.3 million. poration has a minority interest of announced the The Bremer Company has been re 9% in American Bancorporation, election of David named to the Bremer Financial Cor which owns American National L. Riegel to the poration and all of the banks and Bank & Trust Company of St. Paul, bank’s board of bank related companies will be iden there is no involvement of American directors. tified under one common name, Bancorporation or American Na Mr. Riegel is “ First American.” tional Bank in The Bremer Com the laboratory “ The name change reflects our pany or its planned name change. director in the move to a more unified financial ser system products vices organization,” said Robert J. Luverne Bank Elects Two division of IBM Reardon, president of Bremer Finan T. Donald Cashin, president and in R o ch e ste r. D.L. RIEGEL cial Corporation. “ Each bank will be chairman of First Bank Luverne, His term began able to draw on the resources of the has announced the election of June 21. corporation and the other First American bankers to help create new financial products and services that will meet customer needs.” The Corporation holds majority interest in 37 bank-related busi nesses which include insurance agencies and agricultural credit companies. Bremer currently has an equity-to-assets ratio of 8.46% com pared with its peer groups’ average of 6.52%, and it has $14.56 of equity for every $100 in loans versus its peers’ $12.68. The new corporate symbol—an eagle in flight—and the Bremer PICTURED left to right at the recent meeting of the Minnesota Chapter of BMA are: Mark 2nd v.p.; Richard M. Rosenberg, guest speaker; Lucille A. Stoffels, pres.; Phil Webb, name placed within a blue square Jeter, Roger Bense and Michael E. Swanton, all directors. ties the group to the Bremer Foun dation which owns the Bremer Financial Corporation. This associa tion places the individual banks in a HE Minnesota Chapter of the Jeter of Norwest Bancorporation; stronger market position through Bank Marketing Association Secretary Cynthia R. Darling of the Foundation’s grant making ac named the members of its board of Park National Bank of St. Louis tivities in the bank’s communities. directors for 1983-84 at its annual Park, and Treasurer H. Joseph Last year the Foundation gave away meeting recently. Guest speaker at Brunner of American National Bank 386 grants in the tri-state area total the dinner was Richard M. Rosen & Trust Company. ing almost $2.4 million. berg, vice chairman of Wells Fargo The directors include: Roger Of the first 29 First American Bank of San Francisco and current Bense of the State Bank of Long Banks, based on December 31, 1982 president of the National Bank Mar Lake, Janet B. Hearon of St. An thony Park Bank, Phil Webb of deposit size, the top three are: First keting Association. American Bank of St. Cloud with de New president of the Minneapolis First Bank System, and Michael E. posits of $102 million; First Amer Chapter of BM A is Lucille A. Stof Swanton of the First American Na ican Bank & Trust of Minot, with fels of First Bank System. Other of tional Bank in St. Cloud. The Min deposits of $87.5 million; and First ficers are: First Vice President nesota Bankers Association Liaison American Bank & Trust of Grafton, Michael W. Riley of Signal Hills Director is Wayne Berthiaume. with deposits of $62.9 million. Bank; Second Vice President Mark BREMER o er C o m pany, the fourth i13 BMA Minnesota Chapter Elects Officers T Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 South Dakota C.W. E k s tru m , près., P h ilip J.M . Schw artz, exec. m g r., Pierre V S. GERLACH R. STONE V. HARWOOD L. PODOLL T. CARR E.N. KOSTBOTH Closed Hartford Bank Reopens Under Western Bank, Sioux Falls Name HE BOARD of directors of the Federal Deposit Insurance Cor poration last month announced that the deposit liabilities of the Com munity Bank, Hartford, have been assumed by Western Bank, Sioux Falls, a state-chartered bank belong ing to the Federal Reserve System. The main office and two branches of the closed bank were reopened Mon day, June 20, as branches of West ern Bank and all depositors of the closed bank automatically became depositors of the Western Bank. The appropriate court has approved the transaction. Community Bank was closed on June 17, by South Dakota Acting Director of Banking and Finance James J. Sletten, and the FDIC was named receiver. In addition to assuming about $39.5 million in deposits and other liabilities, Western Bank has agreed to pay the FDIC a purchase prem ium of $1.75 million. The assuming bank will purchase the failed bank’s securities, installment loans and cer tain other assets. To facilitate the transaction, the FDIC will advance cash amounting to $23.5 million to the assuming bank and will retain assets of the failed bank with a book value of $28.5 million. The FDIC approved the deposit assumption under its authority to do so whenever it determines that such a transaction will reduce the potential loss to the Corporation. The board of directors made such a finding in this case because of the premium paid by Western Bank. Iowa Banker New President at De Smet Bank One Elected, Four Advanced At Sioux Falls Bank Ken Roeder, correspondent bank ing officer at Security National Bank in Sioux City, Iowa, has left that bank to become president of P eop les S tate Bank in De Smet, effective August 1. He replaces D. W ayne M eyer w ho r e c e n t ly retired. M r. R oed er started his bank ing career with S e c u r it y Na„ ______ * i n Cr K. ROEDER tionali in 1965 as a part-time teller while attending college. He then moved to the data processing department where he spent nine years as a programmer, systems analyst and systems of ficer. Mr. Roeder also has served as EDP auditor at Security National and most recently in the correspon dent department where he has been the past four years. The board of directors of First Bank South Dakota, Sioux Falls, has elected one officer and advanced four officers according to an an nouncement by David S. Birkeland, president and chief executive officer. Steve Gerlach was named vice president, Sioux Falls; Russ Stone was named president, Presho; Victor Harwood was named vice president, Rapid City; Loren Podoll was named vice president and Tim Carr was elected agricultural loan officer, Aberdeen, and E. Norman Kostboth was named vice president, Gettys burg. Mr. Gerlach started as a trainee in Sioux Falls, corporate office, in 1977, and was named assistant vice president in 1979. Mr. Stone joined in Gettysburg in 1965, was promoted to vice presi dent in 1973 and second officer in 1977. Mr. Harwood began his First Bank System career in 1974 in Bill- T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ings, Mont., later transferring to First Bank Harve. Mr. Podoll joined at Aberdeen in 1975, most recently being promoted to cashier and senior operations of ficer. Mr. Carr started as a manage ment associate in 1982 at the main office in Sioux Falls. Mr. Kostboth started with First Bank System at First Bank Miller in 1980. Officer Elections Told The following officer elections were recently announced at Western Bank, Sioux Falls: M ark W. Wahlstrom, vice president, mort gage loan origi n a tio n s , had been serving as a ssista n t vice p resid en t and manager of that department for the past year. M.W. WAHLSTROM Tim C. Keller, elected assistant vice president and retail managing officer, West, con tinues as product manager of instal ment loans for the entire bank, inNorthwestern Banker, August, 1983 Il11 ' ■ , ■ A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 How can Sandy Sickles be three places at once? • • • ^ Obviously, she can’t. The important point is Sandy’s always in the right place when you need her. Occasionally, when you phone, your correspon dent banker is out of the office. Sandy is here to give you the continuity of service you deserve every time you call. Sandy Sickles proves how responsive we really are. Like all of our correspondent bankers, Sandy is a dedicated professional. She has extensive knowledge of internal bank operations and of our correspondent customer base. She administers and sells CashLine as well as oversees our Account Analysis Program. And she has all of your account information at her finger tips. We don’t expect Sandy to be three places at once. And neither do you. But you can rest assured that she’ll be in the right place when you need her — at her desk. At F&M Marquette we stay on top of your needs by staying in touch with you. A KM m i l e National Bank 6th & Marquette Minneapolis Phil Gallivan, Senior Vice President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 1965 and has served as customer service officer since 1981 Two Added to Mitchell Staff Ron Jenkins, president of Com- mercial Bank of Mitchell, has an nounced the addition of Clark Mickelson and Scott Gullickson to the bank’s staff. Mr. Mickelson, a native of Yank ton, is presently training in the operations area of the bank. Mr. Gullickson will be working in the installment loan department. T.C. KELLER D.J. STENSLOKKEN eluding Western Bank- Rapid City. In addition he will manage retail banking at Western-West. Donna J. Stenslokken, elected branch operations officer, retail banking division, joined the bank in Officer Elected âÈk C. MICKELSON S. GULLICKSON Norwest Bank Black Hills, Rapid City, recently elected Marlys Walk as real estate loan officer in Belle Fourche. Fargo Executive Named North Dakota D. Petersen, pres., New Town H.J. Argue, exec, dir., Bismarck Fargo CPA to Head New Financial Planning Division Robert J. Thibedeau, CPA, has been appointed head of the newly created financial planning division of the Fargo National Bank & Trust Company. For the past seven years Mr. Thi bedeau was a tax partner with the firm of Bradley, Thibedeau, and Thompson of Fargo. Capital Increases Reported The Department of Banking and Financial Institutions recently reported that The Farmers Security Bank of Washburn increased its capital from $200,000 to $600,000 by stock dividend; and Farmers and Merchants Bank of Wimbledon in creased its capital from $100,000 to $200,000 by stock dividend. Stan K. Dardis has been elected executive vice president of Norwest B ank F argo, N.A. He joined the bank in 1981 as senior vice president, loan adm inistration. He p reviou sly was vice presi dent and a direc tor of First Na tional Bank in Bowman and be gan his banking career in 1975 at Norwest Bank Aberdeen, N.A., South Dakota. Also announced was the appoint ment of John Giese as assistant vice president/assistant ag manager, and the addition of Mark S. Sellhorn to the staff as commercial banking of ficer. North Dakota Savings & Loans ASSOCIATION ranked by assets as of Dec. 31,1982 1. 2. 3. 4. 5. 6. 7. Metropolitan Federal Fargo Gate City Federal Fargo Midwest Federal Minot First Federal Grand Forks & Minot First Federal Bismarck Northwestern Federal Fargo First Federal Fargo NET WORTH TO ASSETS RATIO (%) DEPOSITS & SAVINGS ACCOUNTS (millions $) SIX-MONTH EARNINGS 12-MONTH EARNINGS ($) ($) ASSETS (millions $) NET WORTH (millions $) 1,017.3 26.57 2.6 754.0 2,838,871 620.8 16.33 2.6 472.0 -3,820,225 -8,190,156 428.6 15.56 3.6 337.9 2,472,649 1,776,478 270.3 -4.09 -1.5 195.6 -5,838,301 -9,574,403 206.0 6.62 3.2 167.9 -2,103,554 -3,292,838 92.0 3.82 4.2 74.0 - 500,978 - 998,803 53.8 2.36 4.4 48.2 - 356,674 - 947,675 2,688.8 67.17 2.5 2,049.6 -7,308,212 -20,407,144 820,253* ‘ Includes loss of $496,933 attributable to Northwestern Federal of Williston during first half of 1982, prior to its merger with Metropolitan. Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Montana News OFFICERS of the Montana Bankers Association for 1983-84 are: Immed. Past Pres. — Erie Gross; Vice Pres.— Charles Pedersen; Pres. — Robert Sizemore; Treas.— Robert Mountain, and Exec. Vice Pres —John Cadby. Robert Sizemore Elected MBA Head By STEVE BURCH Associate Publisher HE beauty of the Sawtooth Na tional Forest greeted the Mon tana bankers who met in Sun Valley, Idaho, last month for the 80th an nual convention of the Montana Bankers Association. The election of Robert Sizemore to M BA president for 1983-84 was the convention highpoint. Mr. Sizemore is the president of the Western Bank of Chinook and succeeds Erie Gross, president of the Little Horn Bank in Hardin. Charles Pedersen, chairman and president of First Interstate Bank in Great Falls, advanced to vice presi dent and Bob Mountain was elected Treasurer. Mr. Mountain is the pres ident of Norwest Bank Dillon. Dur ing the meeting of A B A members Bruce Miller, president of First Citizens Bank in Butte, was elected to a two-year A B A council term and First Bank Billings President Bob Waller will serve as A B A state vice president for the 1983-84 year. T Convention activities opened with the First Annual Prayer Breakfast with Former U.S. Air Force Chief of Staff General Robert Mathis as featured speaker. Upon his retire ment in 1982, General Mathis found ed the “ I Am Third” ranch near Bozeman, Montana. Nicknamed “ Eagle Mount,” the ranch is a sum mer camp for handicapped children and doubles as a Christian retreat center during the winter months. General Mathis shared with the bankers his concerns relating to the calloused response of people to the needs of others. Citing instances of worldwide suffering, he cautioned against the “ I Am Number One” trend that is sweeping today’s socie ty. He explained that the name of the “ I Am Third” ranch came from an early Sunday School lesson which emphasized the love of God and neighbor over self. The response to the General’s talk was the im mediate scheduling of the Second Annual Prayer Breakfast for the 1984 convention. 47 “ It’s Later Than You Think” was the theme of the presentation made by Alex “ Pete” Hart, executive vice president of First Interstate Ban corp, Los Angeles. He began by tell ing the bankers that he had been jokingly advised that under no cir cumstances was he to discuss branch banking. However he went on to challenge that bankers who are waiting for business to get back to normal should “ forget it.” The financial services field of tomorrow can be seen today. It will be a sales and promotion oriented industry with emphasis on product develop ment and expanded distribution. He predicted that there will be win ners and losers as deregulation con tinues and emphasized the need for a minimum of a 5-8 year strategic plan. “ Quarter to quarter perfor mance review isn’t going to cut it!” He concluded by stating that 34% of total consumer sales in 1982 were made through a franchise outlet and suggested that the convenience and “ muscle” of franchising will be very evident in the banking industry by 1987. Hugo Steensma, senior vice presi dent with Rabobank, Nederland, ad dressed the bankers on international agribusiness trends. Focusing on the worldwide demand for food, Mr. Steensma urged the bankers to sup port the International Monetary Fund. He challenged that the U.S. needs to become more aggressive in its trade policy and argued the need for politics to be removed from that policy. Turning his attention to com munity banking, he feels that the $215 billion farm debt of today could escalate to $800 billion by the end of the decade. With this tremen dous lending opportunity on the horizon, he reminded the bankers of their favorable market position with ag borrowers and praised the bank- WKBSKKmm LEFT— Newly elected MBA President Bob Sizemore receives congratulations from outgoing president Erie Gross. Center— Robert Ulrich, pres., First State Bk., Malta, presents John Cadby with plaque and a watch in recognition of his 10 years as MBA Executive Vice President. RIGHT— Dr. Barry Asmus, Boise State Univ., gives audience a “ reading assignment” at the close of his presentation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 48 Montana News LEFT— Dick Holmes, a.v.p., F&M Marquette Natl. Bk., Minneapolis, and guest Carol Pederson with Jeff Cory, pres., Treasure St. Bk., Glasgow, and wife Barbara. RIGHT—John Huston, corr. bkg. off., Norwest Bk. Minneapolis; Joanne and Pat McGarraugh, exec. v.p.| Norwest Bk. Great Falls, and Joan and Don Pederson, sr. v.p., Norwest Bank Minneapolis. ers for their community minded ac tivities. Mr. Steensma also an swered questions relating to the ad vantages of establishing an ag credit corporation within the WEB SCO organization similar to M ASI in the midwest. During the Past President’s Re ception, John Cadby, executive vice president was recognized for his 10 1983 MBA Group O fficers Group 7B: president-Al Winegardner, Jr., chmn. & pres., Norwest Bank Billings, N .A.; vice pres.-George Balback, pres., Western Bank of Billings; secy./treas.-Robert E. Bodin, pres., First Bank-West Billings Group 1: president-William Perrin, pres., Security State Bank, Harlem; vice pres.Chris Owen, v.p., First National Bank of Cut Bank; secy./treas.-Norman Mosser, sr. v.p., Western Bank of Chinook, N .A. Group 2: president-Robert J. Goss, pres., Richland National B&T, Sidney; vice pres.James Carter, v.p., First National B&T, Wibaux; secy./treas.-Debbie Vivian, exec, v.p., Cheyenne Western Bank, Ashland. Group 3A : president-Lynn Weaver, v.p., Security State Bank, Poison; vice pres.-Allan Aronson, v.p., Valley Bank of Kalispell; secy./treas.-Thomas Anderson, v.p., Glacier National Bank, Columbia Falls. Group 3B: president-W.E. Manley, pres., First State Bank of Montana, Thompson Falls; vice pres.-Doug Lawrence, v.p. & cash., Montana Bank of South Missoula; secy./ treas.-Alan Bradley, pres., Bitterroot Valley Bank, Lolo. Group 4: president-Greg Sunwall, First State Bank of Froid; vice pres.-Jim Hines, v.p. & cash., First National Bank of Glasgow; secy./treas.-James L. Hanson, exec, v.p., First Security Bank of Malta. Group 5A: president-Gary Gibson, v.p. & cash., First Bank Helena; vice pres.-Dave Piper, pres., Continental National Bank, Harlowtown; secy./treas.-S.E. McSweeney, pres., First Bank, Fort Benton. Group 5B: president-Richard Schirber, v.p. & cash., First Bank Great Falls; vice pres.Pat McDermott, v.p. & cash., Norwest Bank Great Falls, N .A.; secy./treas.-James D. Hopkins, pres., Central Bank of Montana, Great Falls. Group 6: president-Richard C. Timmer man, pres., First Bank-Butte; vice pres.Clinton W . Rouse, exec, v.p., State Bank & Trust Co., Dillon; secy./treas.-G. Vincent Fisher, pres., Montana Bank of Butte, N .A. Group 7A: president-Donald R. Powell, c.o.o., First Security Bank Big Timber; vice pres.-Daniel L. Krum, v.p. & cash., Farmers State Bank of Worden; secy./treas.-Ashley D. Branning, chmn. & pres., Valley Bank of Belgrade. Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis years with the MBA. Social activ ities included golf, tennis and trap tournaments and a 5 mile fun run. The convention was brought to a close with the annual dinner dance. □ of the commercial banking division. Prior to that he had been serving as group vice president. Mr. Farris has been a resident of Des Moines since 1949. Miles City President Named Two newly elected officers of C. Terry Wagner has been electedNorwest Bank Billings are Mark president of First Citizens Bank in Nyquist, energy loan officer, and Miles City. Rick Sexton, commercial loan of Mr. W agner ficer. began his bank Mr. Nyquist joined the bank in ing career in 1980 as a regional credit trainee. Mr. 1971 as an agri Sexton joined in 1981 as a credit cultural repre analyst. sentative with F ir s t B ank Miles City and Lewistown President Named a ssu m ed the position of ag D.A. (Al) McRae has been elected department president and Donald R. Browne manager and vice president in 1977. chairman of First Bank Lewistown. He has degrees in agriculture and Mr. Browne, who will retire Decem business from Montana State Uni ber 31 of this year, continues as managing officer. versity. Mr. McRae has been associated Iowa Banker Elected with First Bank System since 1959 Thomas H. Farris has been when he joined the Lewistown bank elected president of Norwest Bank as agricultural representative. He Billings in addition to being elected was elected assistant cashier in to the board of 1961, assistant vice president in directors. 1966 and vice president in 1967. In Mr. Farris for 1976 he was elected president and merly was exec managing officer of First Bank East utive vice presi Grand Forks, Minn., and in the fall dent of Norwest of that year returned to First Bank Bank D es Lewistown as vice president. M oines, N .A ., Mr. Browne began his banking Iowa, a position career in 1947. He joined First Bank he has held since System in 1952 and has served as 1981 when he president and managing officer in T.H. FARRIS was named head Lewistown since 1963. Montana News Ullll 49 LEFT—Jim Hanson, pres., First Security Bk., Malta; Ken Vegors, a.v.p., Norwest Bk. Minneapolis, and John Franklin, sr. v.p., First Bk. Bozeman. RIGHT—Sam Noel, pres., Bk. of Montana System; Gary Ryti, v.p., State Bk. of Terry; Bob Henry, pres., First Bk.-Southside, Missoula, John Cadby, exec, v.p., MBA, and Dave Mainwaring, partner, Mainwaring-Corey Ins. Serv., Missoula. LEFT—Bill Tait, (center) pres., Norwest Bk. Butte, visits with convention speakers ABA President Bill Kennedy and Alex “ Pete” Hart, exec, v.p., First Interstate Bancorp, Los Angeles. RIGHT—Bob Spannagel, v.p., with Frankie and Jim Bennett, chmn. & pres., First Citizens Bk., Billings; Nancy and Bob Anderson, exec, v.p., First Bk., Minneapolis, and Dave Williams, a.v.p., First Bk., Minneapolis, and wife Rita. LEFT—Andy Sail, pres., First Bk., St. Paul and wife Ginny, with Jean and Dick Carey, corr. bkg. off., First Bk., St. Paul. RIGHT—Visiting during the Security Bank of Billings reception were Gene Coombs, v.p., Security Bk. and wife Pennie; Al Brubaker, chmn. & pres., State Bk. of Terry and wife Ivy; Security President Dick Kjoss and wife Sarah, and Bernie and Claude Erickson, chmn., First Security Bk., Livingston. LEFT—Bob Sipple, sr. v.p., American Natl. Bk., St. Paul, and wife Brownie; Bruce Miller, pres., First Citizens Bk. of Butte, and wife Joan, and Frank Abersfeller, v.p., Rainier Natl. Bk., Seattle. RIGHT— Larrry Matthes, (center) v.p., Colorado Natl. Bk., Denver, with Jan and Homer Scott, chmn., Security Bk., Billings. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 50 Central Bank Elects Two Joins Great Falls Bank Central Bank of Montana, Great Falls, recently elected Jeffrey C. Mortensen and Janet M. Park as as sistant vice presidents. Phillip B. Johnson has joined First Bank West Great Falls as vice president and se cond officer, ac cording to Rob ert M. Pancich, president. Since 1981, M r. Johnson held the position of vice president and second of ficer with First P.B. JOHNSON Bank Cloquet, Minnesota. He began his banking career in 1970 as an agricultural representative with First Bank Havre. J.C. MORTENSEN J.M. PARK Mr. Mortensen, who will also serve as cashier, started in banking at Blaine Bank of Montana in Chinoo, in 1977. Ms. Park began her banking car eer at First Bank Western Montana in Missoula in 1969. She joined Cen tral Bank in 1977 and was elected retail banking officer in addition to assistant vice president. Great Falls Appoints Three Three officer appointments were announced at First Interstate Bank of Great Falls. JoAnn Campbell, previously construction loan officer for First Interstate Bank of Fort Collins, Colo., has been appointed f assistant vice president/manager, real estate loan department; Mi chelle Wilkie, formerly an assistant national bank examiner, has been appointed loan review officer, and Lois Paul has been promoted to assistant vice president, human resources. Joins Bozeman Staff J. Scott Heck has joined the staff of First National Bank of Boze man as vice pres ident and man ager of the real estate dep a rt ment. M r. H eck m ost recen tly has been serving as assistant ad J.S. HECK junct professor of banking and finance in Montana State University’s School of Busi ness, a position he has held since 1980. Promoted in Arapahoe ---------------------------------- Jacqueline Macheel has been pro moted to customer assistance officer at Colorado National Bank -Arap ahoe, Littleton, according to John Diedrich, president. Mrs. Macheel joined the bank in 1979 and until her recent promotion held the position of New Accounts Supervisor. Colorado N.M. Dean, pres., Greeley D.A. Childears, exec, mgr., Denver Three Named At Cherry Creek National Cherry Creek National Bank, Denver, has named J. Thomas Hand senior vice president; Donna Mae Tousignaut, assistant vice presi dent, and Carol A. Jordaens, opera tions officer. Mr. Hand joined the bank in 1979 and serves in the commercial lend ing division. Responsible for the bank’s ac counting department, Ms. Tousig naut formerly was accounting of ficer. She has been with the bank since 1960. Ms. Jordaens joined in 1977 and most recently acted as teller super visor. First Colorado Bank & Trust, Den ver. Mr. Schnabel, previously senior trust officer at IntraWest Bank of Denver, will be in charge of the trust division of the bank. Mr. Panter was vice president of American National Bank of Denver prior to joining First Colorado Bank & Trust . Appointed in Littleton Virginia L. Becker has been ap pointed cashier of United Bank of SouthPark, N.A., Littleton. She joined the bank late in 1982 when the bank opened. Boulder Promotes Five Walter A. Browning, Jr., chair man of First National Bank in Boul der, recently an nounced several s t a ff p rom o tions. Bruce K. Alexander and S. Bert Stjernholm have been promoted to vice president. New officers also in clude P atricia B.K. ALEXANDER M. McAleese in Promoted in Evergreen Colorado National Bank - Ever green has promoted Sherry L. PopE. Eugene Schnabel has been appen to loan administration officer. pointed senior vice president and She joined the bank in 1982, serving trust officer and Robert W. Panter as administration loan representa has been named trust officer for tive. Denver Bank Appoints Two Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S.B. STJERNHOLM P.M. MC ALEESE bank in 1982, Mr. Barlow was asso ciated with the First National Bank of Grand Junction. In addition, Peggy Himes, co owner and secretary-treasurer of Himes Drilling Company, Inc., has been elected to the board of the bank. Joins Arvada Bank S.E. SCHURMEIER J.A. TRAPP trust; Sharon E. Schurmeier, lobby officer, and Judith A. Trapp in pub lic relations. Mr. Alexander, formerly an assis tant vice president, will continue to serve in First National Bank's com mercial loan department. He joined the bank in September, 1977, as a management trainee. Continuing to serve in the com mercial loan department, Mr. Stjernholm has been with First National since 1976 when he started as a man agement trainee. Ms. McAleese joined the trust de partment in 1976, and served most recently as trust administrator. Joining First National in 1980 as a lobby teller, Ms. Schurmeier has since served as a new accounts re presentative and as advantage banker supervisor. Ms. Trapp has served as public re lations coordinator since joining the bank in 1981. Promotion Told Burl A. Barlow has been pro moted to vice president of Colorado National Bank - Orchard Mesa, Grand Junction. Prior to joining the It was recently announced that Jim Mitchell has joined Colorado National Bank - Arvada as assistant vice president of commercial and consumer lending. Bringing with him 20 years of ex perience, Mr. Mitchell most recently served as president of Firstmark Cherry Creek Industrial Bank. IBC Celebrates 10 Years At Annual Convention The Independent Bankers of Col orado will be holding its 10th An niversary Annual Convention Sep tember 22-24 at Keystone Resort. The Convention will feature a special Thursday night western cook-out and hoedown, casino night and many great speakers. A pro gram schedule will follow in the Sep tember N o r t h w e s t e r n B a n k e r . New Full-Service Bank Opens in Durango Durango National Bank, the first full-service commercial bank in Dur ango in 15 years, opened for bus iness last month in its new building in Bodo Industrial Park. Bank President Pat Curtis stated the bank has been capitalized at D.H. B a b b itt, pres., W o rla nd M.C. M u n d e ll, exec, d ir., La ra m ie V Robert Hays, president of W yom ing National Bank, Casper, recently announced the advancement of Jim Ahrendt, Kent R. Robson and Mark Z. Zaback from assistant vice presi dent to vice president, all in the com mercial loan department. At the same time, Henry Gardiner was ad vanced to officer status in the trust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pennsylvania Corporation Acquires Industrial Banks The Federal Reserve Board recently approved the application of Mellon National Corporation, Pitts burgh, Pennsylvania, to acquire Globe Industrial Bank, Boulder, and Centaur Industrial Bank, LaFayette. Both of the Colorado institutions engage in the general business ac tivities of industrial banks, in cluding making consumer and com mercial loans and accepting time and savings deposits from consum ers and small businesses. Neither in stitution will offer demand deposits, including transaction accounts. Mellon National Corporation also proposes to engage through the Col orado institutions in the sale of life and accident and health insurance in connection with extensions of credit by both institutions. the bank in 1982. As vice president, Mr. Zaback will be in charge of the correspondent bank department and will supervise all correspondent bank lending practices. Mr. Gardi ner has been with Wyoming Nation al since entering the bank’s manage ment training program in 1980. Mr. Trupp has nearly 14 years of various banking experience, most recently in private industry. W y o m in g Five Advanced in Casper $750,000 and will employ a staff of eight including Executive Vice Pres ident and Cashier Jerry Petrocco. Both Mr. Curtis and Mr. Petrocco previously held executive posts at the Bank of Durango and Burns Na tional Bank, respectively. Local organizers, in addition to Mr. Curtis are David Duncan, attor ney, and Dr. Dean Brown, dentist. Other organizers are Leo Van Dittie of Rancho Mirage, Calif., one-time owner of Burns National Bank; Ben Stapleton, Denver attorney, and Gary Brooks of Evergreen, owner of banks in Burlington and Idaho Springs. department and Roger Trupp was elected assistant vice president, commercial loans. Mr. Ahrendt, who has served in the commercial loan department since joining the bank in 1982, has for the past 10 years held manage ment positions in bank operations, personnel and credits. With 20 years in lending, Mr. Robson also joined First Interstate Promotes First Interstate Bank of Casper recently promoted Patrick Sullivan to assistant financial officer. Mr. Sulllivan started with the bank as an officer trainee in December, 1980. In the two-and-ahalf years he has worked with the bank he has served in operations and finance. Northwestern Banker, A u g u s t, 1983 52 1» Instant Cash now gives you a great opportunity to jump ahead of the competition. ® Give your customers a coastto-coast debit card. Instant Cash, from Norwest, is joining forces with the fast growing Cirrus® nationwide network of ATM’s. That opens up new income opportunities for you, while greatly expanding access for your customers. Instant Cash now provides your customers with access to over 6,000 ATM’s stretching across the nation. If you’re considering a debit card service, ask Norwest Bank Omaha to show you the tremen dous potential of Instant Cash and Cirrus. Call the Financial Institutions Group, 402/536-2080 Norwest Bank Omaha (formerly U.S. National Bank of Omaha) Member FDIC Affiliate of Norwest Corporation NORWEST BANKS m i m DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i l i q <9 • # 53 N ebraska D.G. Johnson, près., Pilger S. Matzke, Jr., exec. v.p., Lincoln Two Top Nebraska Banks Seek Merger # /V PROPOSED merger that would which would be named Firstier, Inc. (pronounced First-teer'), based on a tax-free exchange at a ratio to be determined after a receipt of reports of independent financial consultants for each of the parties. Firstier would have a board of directors of an even number, with one-half of the di rectors being from the present Omaha holding company and the other one-half from the present Lin coln holding company. Mr. Woods would be chairman and chief ex ecutive officer and Mr. Smith would be president and chief operating of ficer. The two banks would be oper ated separately under their existing names and with their present direc tors and officers. The two executives stated: “ The J.D. WOODS W.C. SMITH bringing together of these two dent and chief executive officer of stron g financial organizations First National Lincoln Corp. and its should enable Firstier to better wholly-owned subsidiary, First Na serve the communities of Omaha tional Bank & Trust Company of and Lincoln and the State of Nebras Lincoln, jointly announced July 19 ka as a whole. The increased finan their respective Boards have author cial strength would greatly enhance ized further discussions to form a our ability to finance Nebraska new Nebraska-based multi-bank businesses and agriculture as well as holding company to acquire, through to develop expanded services for a consolidation of the two one-bank residential mortgage financing, in holding companies, the ownership of vestment services for individuals both Omaha National Bank and and businesses, and provide a sound First National Bank & Trust Com base for future growth. We are confi pany of Lincoln, and their other sub- dent that Firstier would be able to sidiaries. exert a cohesive influence to bring Mr. Woods and Mr. Smith stated: the two metropolitan communities “ There are no assurances that these and the State as a whole together in discussions will result in any defin a common effort to better meet their itive proposals. However, if an combined credit demands and finan agreement is reached, approval of cial requirements.” the Federal Reserve Board and a Until the 1983 Nebraska Legisla two-thirds favorable vote of the ture authorized multi-bank holding shareholders of both of the present companies, Nebraska banks were holding companies would be re- unable to form companies of a size quired.” that would make them more competAny consolidation would be on a itve with out-of-state banking or no-premium basis. Shareholders of ganizations such as the multi-bank each of the existing holding com holding companies of Minnesota, panies would receive stock in the Iowa, Missouri and Colorado, and new multi-bank holding company, the national giants such as Amer create a $1.78 billion asset hold ing company is being discussed by the two largest bank holding com panies in Nebraska. 0 John D. Woods, chairman and chief executive officer of Omaha Na tional Corporation and its whollyowned subsidiary, Omaha National Bank, and William C. Smith, presi • • • • ® • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ican Express, Sears, Citicorp, Bank of America and Merrill Lynch, all of whom have been increasingly active in soliciting Nebraska business. For mation of Firstier, Mr. Woods and Mr. Smith said, would provide the base for a larger and stronger Nebraska financial institution to compete favorably with these out of staters in serving most segments of the Nebraska economy. At June 30, 1983, the assets of Omaha National Corporation were $993,223,000 and First National Lincoln Corp.’s were $786,730,000, and shareholders’ equity was $71,130,000 and $58,367,000 respec tively. The proposed holding com pany would have pro-forma assets of $1,779,953,000. Deposits at 1982 year-end were $714,596,000 at Omaha National and $534,195,000 at First National Lincoln, for a total of $1,248,790,000. □ Bloomfield Bank Purchases Closed Bank of Niobrara Director of Banking and Finance Paul J. Amen closed the Bank of Niobrara at 3 p.m. Friday, July 8, for reasons of insolvency due to the loan portfolio and appointed the FDIC as receiver. Using the full authority for the first time that was granted by LB 241 during the recent 1983 unicam eral session, Mr. Amen approved the purchase and assumption of all de posits and certain assets of the closed bank by the Farmers and Merchants State Bank of Bloom field. Under terms of LB 241, the Bloom field bank now is operating a branch in the former Bank of Niobrara build ing to serve all depositors of the failed institution. In addition to assuming about $6.2 million in deposits, Farmers and Merchants has agreed to pay the FDIC a purchase premium of $408,888. The assuming bank will purchase the failed bank’s secur ities, installment loans, and certain other assets. To facilitate the tran saction, the FDIC will advance cash amounting to $3.8 million to the assuming bank. In addition, the FDIC will retain assets of the failed bank with a book value of $5.2 mil lion. At last year end, the Bank of Nio brara had deposits of $6,774,000. The Bloomfield bank had total de posits of $19,915,000. Northwestern Banker, August, 1983 54 EVE RAL officer promotions S have been announced by John D. Woods, board chairman and chief executive officer of Omaha National Bank. David T. Con roy, a second vice president, was named a vice president. Mr. Conroy join ed Omaha National in 1974 as collec tio n s d e p a r t ment head and was appointed D.T. CONROY collection officer in 1975. He became manager of credit card sales and marketing in 1977 and was appointed second vice president in 1978. Named second vice presidents were Mary Anne Bauer, Ronald D. Bolton, Miles Havekost, Gail A. Hudson, C. William Joe, Richard G. Martin, Kathleen R. McCoy, John E. Nahas, James A. Swoopes and Judd F. Wagner. Ms. Bauer began her career at the bank in 1964 and was most recently named funding manager in 1982. Mr. Bolton joined in 1975 as a collector, moving his way up to junior mort gage loan officer in 1980. Having been with the bank since 1973, Mr. Havekost is currently in the infor mation systems department and has been manager of information resour ces since 1982. Ms. Hudson joined in the bond department in 1979, was named investment officer in 1980 and portfolio manager/trader in 1982. Mr. Joe joined in 1977, was ap pointed assistant trust officer in 1978 and trust officer in 1979. Mr. Martin has been an employee benefits administrator since joining the bank in 1979, most recently ser ving as trust officer. Currently serv ing as personnel officer, Ms. McCoy began her career in the customer ser vice area in 1974. Mr. Nahas joined M.A. BAUER R.D. BOLTON M. HAVEKOST G.A. HUDSON C.W. JOE R.G. MARTIN K.R. MC COY J.E. NAHAS DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the controllers department in 1975 ^ and was appointed com m ercialw banking loan officer, his present position, in 1981. Mr. Swoopes be gan in the general services area in 1978, being appointed director in £ that department in 1981. Mr. Wag ner joined in the estate and trust division in 1981 having previously served in this area almost 10 years. He presently is a senior employee f benefits administrator. Other officer appointments: John H. Orduna, Jr., commercial banking; Kenneth M. Parrish, systems; Gary J. Rowe, loans; Patricia “ Tish” A. Selk, marketing, and James F. Su ing, operations. Appointed as assistant officers were: Nancy L. Auten, personnel; Nancy M. Kraft, systems; Douglas # Oldaker, trust; Janice A. Panning and Kathryn M. Ritonya, opera tions; Frederick R. Rieser, planning and administration, and Douglas L. Taylor, auditing. # * * * The promotion of one officer and the election of three new officers have been announced by James R. Campbell, chairman of the Norwest Bank Omaha, N.A. William J. Dewhurst of the financial institu tions group has been promoted to second vice president. Elec ted to the post of residential loan officer were Sal ly J. Bisson and W.J. DEWHURST Elsie R. Con yers. Mary K. McBride has been named financial institutions group officer. Mr. Dewhurst joined Norwest Bank Omaha in April of 1979 as bank card marketing manager. In March of 1982, he was named cor respondent banking officer. Ms. Bisson came to the bank in August of 1981 as regional credit J.A. SWOOPES J.F. WAGNER 55 Don Ostrand Ralph Peterson Jim Flodine THE ANSWER MEN Fred Kuehl Mark Sorensen CORRESPONDENT banking can b e confusing, frustrating, time-consuming. Not so a t First National Bank of Omaha. Just call to ge t the answers from one of our five experienced correspondent bankers. Five men with the very latest financial technology at their fingertips dispensing profession al, d e p e n d a b le , confidential service. So call us for the answers to your correspondent banking questions — on electronic d a ta processing, cash letter processing, overlines, L v ^ r x l/ fed-fund transactions an d more. I llw l I iQ J lIU l Iv J I U U l l l x In Nebraska, call 1-800-642-9907. Outside Nebraska, call 1-800-228-9533. You'll ge t the Member FDIC answers from us, the answer men. of omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 56 Nebraska News trainee. In 1982 she became a real estate loan trainee. Ms. Conyers joined the Norwest Corporation in 1964 with Norwest Mortgage Company. In 1979 she came to Norwest Bank Omaha as a mortgage closing specialist. Ms. McBride began with Norwest Corporation in 1980 as a staff aud itor for Norwest Audit Services. In February of this year she joined Norwest Bank Omaha as a corre spondent banking trainee. Packers National Bank has an nounced the ad dition of James W. Kay to Pack ers N a tio n a l Bank’s bond de partment. Mr. Kay, who has had many years of sales ex p erien ce w ith two local bond h ou ses, w ill J.w. KAY serve in the capacity of bond investement officer. * MBU, Inc., * an * Omaha-based regional Investment Banking firm specializing in the underwriting and marketing of tax-exempt securities, has purchased certain assets of the Robert E. Schweser Company, Inc., formerly of Omaha, including exist ing financing contracts with Nebras ka Municipalities, the fixed assets, and the lease on the offices at 208 South 19th Street in Omaha, accor ding to William March, president of MBU, Inc. In addition, former Schweser per sonnel Patrick H. Rensch, Robert E. Roh, C.W. “ Chuck” Poore, Jr., Wil liam Abts, Wayne Rasmuss, John Fleming, Micky Krupinsky and the general office staff have joined the MBU, Inc. staff. At the same time, MBU, Inc. has officially changed its name to Mun icipal Bond Underwriters, Inc., ac cording to Mr. March. The company has moved its offices to 208 South 19th Street and will have a new telephone number (402) 341-1144. “ Municipal Bond Underwriters, Inc. will provide the same service to customers in the underwriting of municipal bonds for midwest com munities and schools, and will market these municipal securities to ...WE WANT TO BE YO U R BOND PEOPLE... its institutional and individual in -^ vestors in the area as it has in t h e ^ past.” * * * Jack D. Hobbie was appointed vice president, real estate lending, and Gerald J. Lenczowski was pro moted from commercial loan officer to assistant vice president at Norwest Bank Omaha South, N.A. J.D. HOBBIE G J. LENCZOWSKI Mr. Hobbie was with Midwest Federal Savings & Loan in Nebras ka City for 10 years prior to joining • Omaha South. Mr. Lenczowski joined the bank in 1980 and has been serv ing as commercial loan officer three years. ♦ * * ^ Thomas H. Dunham has been elected vice president, commercial loan officer; James W. Burns was named an assistant vice president, £ and Kenneth L. Nelson an assistant cashier at American National Bank. Tom Grove Senior Vice President T.H. DUNHAM Mike Drahota Mary Herzberg Terry Reiff Investment Banking Officer Bond Investment Officer Bond Investment Officer i » m packers national bank BOND DEPARTMENT 402- 731-4900 Or TOLL FREE In Nebraska 800- 642-9980 4710 South 23rd Street DigitizedNorthwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O m aha, Nebraska 68107 J.W. BURNS Having joined American National ^ in June of this year, Mr. Dunham has been in the commercial loan and bank operations fields in Nebraska for the past 16 years, including five q years with a major downtown Omaha bank. His most recent position was as executive vice president at First National Bank of Wahoo. Mr. Burns joined the bank in 1973 £ and was assistant cashier prior to his promotion. Mr. Nelson, new assistant cash ier, will continue as supervisor of the money control center at the bank. £ He joined the bank’s staff in 1978. \ We’ve got the management tools for the right answers... and better profits. One more reason to call on the Correspondent Bankers from NBC. NBC has p ro d u c e d a specialized set o f so ftw a re m a n a g e m e n t to o ls fo r use w ith to d a y ’s m icro co m p u te rs. These packages are d e sig n e d to serve o u r clie n t banks and their custom ers in key areas o f risk m anag em e nt. Program s in clud e o u r A sset Liability M anagem ent Program and an Interest Margin Program. W e ’ve d e v e lo p e d o ve r a d o z e n separate packages d e a lin g w ith subjects ra nging fro m a Commercial Business Forecast Model to an Agricultural Cash Flow Program. NBC o ffe rs all the tra d itio n a l c o rre s p o n d e n t services, o f course, b u t to d a y the banks w e serve need m o re and so d o th e ir custom ers. Call us at (402) 472-4321. Learn m o re a b o u t N B C ’s a p p ro ach to c o rre s p o n d e n t banking. Specialized m ic ro c o m p u te r so ftw a re fo r to d a y ’s c o m p e titiv e financial e n v iro n m e n t is one m o re reason o ur bank clients say “ NBC w o rks fo r m e .” NSC, H fe J The Correspondent Banking Division of National Bank of Commerce N B C C en ter. 13th & O St.. L in c o ln . N e b r a s k a 68508. T e le p h o n e (402) 472-4321 / M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 Nebraska News New Site for First National, Syracuse Scott D. Bradley has joined the Douglas County Bank & Trust Co. as an assistant vice president in the loan division. Mr. Bradley will be responsible for developing first mortgage lend ing products, a new service be ing offered by the bank. Prior to join ing the bank, Mr. Bradley had w o rk e d w ith S.D. BRADLEY other Nebraska WITH completion set for summer, 1984, preparation has begun for construction of the new financial institutes compiling over facility for First National Bank of Syracuse. The new site is at the northeast corner of Fifth 12 years in retail banking. and Midland Sts., diagonally across from the present location. A “ Second Century of Ser Also at the bank, Warren T. Rush vice” celebration is planned to coincide with the opening of the new facility next year, with First National celebrating its 100th birthday during the construction period. Physical ing, senior vice president and a features of the new building will be highlighted by a central skylight atrium in the lobby and member of the board, has retired concourse areas. When completed the new building will provide almost four times the after 45 years of service. He con space now available. tinues to serve on the board of direc tors. Mr. Rushing, who started his carreer with Great Western Finance, Leo A. Mayhan, II, has been named eleven years, he was with First Na group manager of Omaha National tional Bank and Trust Company of an affiliate of the bank, in 1938, most recently served in the market Bank’s Leasing Fremont. He served as president ing division. Department and and chief executive officer for six of Omnabanc Leas those years. Before forming Man ^ ing Com pany, agement Consultants of North Norfolk Banker to Head a c c o r d in g to America, Inc. in 1980, Mr. Young ABA Membership Committee 9 John D. Woods, was president of the Farmers and Ray Tiedje, president of the Bank board chairman Merchants Savings Bank of Man of Norfolk, has been selected to chair and chief exec chester, Iowa. a 10-member A B A Membership utive officer at Mr. Rozmarin has been involved Committee. The announcement was • the bank. in marketing research since 1974. made by Jerry Roe, A B A state vice Mr. Mayhan He was the former managing part president. will coordinate LA- MAYHAN 11 ner of SRI Research Services which The A B A State Membership the bank and subsidiary leasing later became Wiese, Rozmarin and chairmanship is a new position re company activities, and he will re Associates. In April of this year, he cently created by the ABA. • port to Michael L. Dahir, vice pres formed another company, Rozmarin ident. & Associates, Inc. Mr. Mayhan joined Omaha Na Both gentlemen will continue to Officer Promotion Told tional in 1975 as a senior staff operate under their independent Gary E. Gannon has been pro auditor. He was named a second vice companies as well as with Young, moted to marketing officer of Com- ® president in 1980. Rozmarin & Company which is lo mercial National Bank and Trust * * * cated at 9110 West Dodge Road, Company, Grand Island. Suite 309 in Omaha. Mr. Gannon has been with the Young, Rozmarin & Company, a * * * bank as business development of new consulting firm which will ® assist in chartering and managing The Realbanc board of directors ficer since 1981. national banks, was recently formed has announced that Judy Zaiman by John R. Young, Jr. and Thomas Gotsdiner has been promoted to se Joins Wayne Bank L. Rozmarin. cond vice presi Mr. Young, who is president of dent. Daryl Frevert has joined the First £ Management Consultants of North Ms. Gotsdiner National Bank of Wayne as a loan America, Inc. will act as the com jo in e d Omaha officer trainee. pany’s management consultant and N ation a l C or He is a May graduate of Chadron Mr. Rozmarin, president of Roz poration in 1977 State College. marin & Associates, Inc. will assist as an assistant • with the marketing and research ser a ttorn ey . She Ericson Bank Says Thank-You vices. was promoted to Ericson State Bank, Ericson, Both Mr. Young and Mr. Rozmar officer in 1980 recently held its annual “ Thankin have strong backgrounds in re and further pro lated fields. Mr. Young has been in moted to chief you” Barbecue. It was well attended ^ JZ- GOTSDINER with over 400 people served. volved in banking since 1965. For legal counsel for Realbanc in 1982. DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News 59 Kearney Director Named Vice Chairman Larry Jepson, president of First National Bank, Kearney, recently announced the election of Alan Oldfather as vice chairman of the board. Mr. Oldfather joined the bank in 1960, served as president from 1964 until 1974 and most recently has served as a director. Celebrates 25 Years ARCHITECTS drawing of new building to house Omaha Branch at the Federal Reserve Bank of Kansas City. New Building Planned for Omaha Branch LANS have been approved for a new building to house the # Omaha Branch of the Federal Re serve Bank of Kansas City, an nounced Roger Guffey, president of the Kansas City Fed. “ This new building will not only • enhance the Federal Reserve’s abili ty to provide its service to financial institutions across Nebraska, but at the same time will continue the re newal effort occurring in downtown • Omaha,’ ’ commented Mr. Guffey. Construction is scheduled to be P gin in early 1984, following approval of the detailed design and construc tion plans by the Board of Gov ernors of the Federal Reserve Sys tem. The new building will replace the present Omaha Branch, built in 1925 and located at 17th and Dodge. As designed by the Omaha firm of Henningson, Durham & Richardson, the new 109,000 square foot build ing will rise three stories. It will be located in the center of the 6.8 acre site with attractive landscaping and convenient access for the public. NABW Reveals Convention Details (I • • • • i i P O S I T I O N I N G for TomorW row: Strategies for Power and Profit” is the theme for the 61st annual convention of the National Association of Bank Women to be held September 18-21 at the Hyatt Regency Dallas Hotel. Over 20 ses sions have been developed to prep are the banking industry and its workforce for new roles in the finan cial services network. Keynote speaker Dr. Lawrence Chimerine, chief economist at Chase Econometrics, will open the program on September 19 with a look at the forces affecting the banking in dustry and the corporate structures that are emerging in response. In a follow-on session, representatives from various sectors of the financial industry—including Merrill Lynch, American Express, Beneficial Man agement Corporation, and South west Bancshares—will compare survival tactics and outlooks for the future. Moderator will be Donald Waite, director of McKinsey & Com pany, a consulting firm that advises major bank clients. The second part of the convention https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis theme, “ Strategies for Power and Profit,” will be addressed in an afternoon session on strategic plan ning led by Robert Metzger, manag ing principal at Metzger, Rau and Associates. The theories outlined by Metzger will be translated into specific planning practices in per sonalized workshops geared to small, medium, and large banks. Sessions on Tuesday, September 20, will alert participants to new career challenges. In “ Blueprints for Leadership” several prominent wo men featured in N A B W ’s Looking at Leadership videotape series will explain how they blend personal and professional responsibilities to create a balanced lifestyle. Speakers include Julia Walsh, chairman of the board, Julia Walsh & Sons, invest ment specialists; Chloe Aaron, for mer senior vice president for pro gramming at PBS and founder of Chloe Aaron Associates, a New York-based television consulting and production firm; Madeline Bohman, executive director, Bellevue Hospital, and moderator Alene Mor is, president of the Individual Devel- An open house was held in June for Deloris Babcock, assistant cash ier with North Loup Valley Bank, to celebrate her 25 years with the bank. Elected in Wymore Paul Rainbolt has been elected assistant vice president and ag loan officer of The Wymore State Bank. opment Center and author of Un common Sense. Afternoon work shops will focus on information sys tems, risk taking, leadership during transitions, situational problem solving, and other management con cerns. On Wednesday, September 21, Dr. Layne Longfellow will bring his “ lecture theatre” concept to life in a special motivational presentation titled “ Doing Well by Doing Good.” Dr. Longfellow uses music, poetry, slides, and philosophy to illustrate his themes. A wide range of personal and pro fessional concerns will be addressed in informal forums on Tuesday and Wednesday. Topics include personal finances, productivity, critical inci dent research, personal safety, self marketing, and career planning. Association activities will be held throughout the convention, begin ning with a full day of leadership training for N ABW officers on Sun day, September 18. On September 20 the association will hold its an nual meeting to vote on a proposal to admit non-bank financial women into NABW. NABW scholarship winners will be saluted at an awards ceremony on September 21, and in coming president Karen Thomson, senior vice president at Midwest Commerce Banking Company in Elkhart, Indiana, will accept the gavel of leadership at an installation luncheon later that day. N ABW was founded in 1921 and now has 29,000 members. Northwestern Banker, August, 1983 60 has served as correspondent bank ing officer before being promoted to • his present position. * * * Charles R. Warren, vice president and auditor of Lincoln N ational# Bank, was elected vice president of the newly formed Northwest MetroChicago Chapter of the Institute of Internal Auditors. The Institute, international in # scope, is an educational organization dedicated to the advancement of the individual internal auditor and the internal auditing profession. * First National Bank President William C. Smith has announced the promotion of Marilyn M. Borchardt to commercial banking officer and the appointment of Michael J. Thrasher to mortgage loan officer. Ms. Borchardt joined First Na tional in 1981 as a commercial bank ing representative and recently spent a year in the bank’s credit analysis area reviewing commercial financial statements. An Omaha native, Mr. Thrasher joined First National Lincoln in the mortgage loan division after work ing three years for Norwest Bank Omaha South as their real estate department manager. * * * David McLeese has been elected commercial loan officer at Gateway Bank, announced James F. Nissen, president. Mr. McLeese, a Lincoln native and a graduate of Nebraska Wes leyan University, has already as sumed responsibilities in the com mercial lending area. At the same time, Mr. Nissen an nounced the promotion of Judy Phil lips to loan administration officer. Ms. Phillips joined Gateway this year with more than 19 years ex perience in loans and administra tion. * * * Brad Korell, vice president and manager of the commercial banking di vison of National Bank of Com merce, is a recent graduate of The Stonier Graduate School of Bank ing, the country’s oldest graduate banking school. Mr. Korell received a BS degree from the University of Nebraska in 1971. He joined NBC in 1974, and * * # The Havelock Bank recently an nounced the appointments of Mich ael J. Rooney, vice chairman and director; Thomas Gewecke, assis- # tant vice president, and Linda Spaedt, instalment loan officer. Mr. Rooney has a long and varied background in banking and finance. He is currently president and chief • executive officer of City Bank and Trust Co. of Lincoln. Mr. Gewecke joined the bank in March as a loan officer. He has prior loan and operating experience with • Gateway Bank, Lincoln, and The York State Bank & Trust. Ms. Spaedt has been employed at the bank for 10 years. She has been a commercial loan clerk, discount sup- ® ervisor and an instalment lender. Hastings Bank Elects Three New Directors ^ Norman Nackerud, president of Norwest Bank - Hastings, recently announced the election of three new directors. New board members include: Wil- O liam M. Connolly, partner in the Conway and Connolly law firm; Don ald R. Seaton, president of the Hast ings Tribune, KHAS radio, the Alli ance Times Herald and Lead (S.D.) # Daily Call, and Dr. John G. Yost, practicing physician with Hastings Orthopaedic Associates. Holdrege Director Named # H. Titus Swan has been elected a director on the board of First Na tional Bank of Holdrege. He will fill the term of his late grandmother, ^ Mrs. Gladys H. Titus, past director ® and chairman of the board of the bank for 38 years. Mr. Swan is an at torney in the firm of Anderson, Strasburger, Klein, Peterson and ^ Swan. DigitizedNorthwestern for FRASER Banker, August, 19B3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61 The Experienced Professionals of First National Lincoln. Ready to meet your investment needs. Put your trust in the Municipal and Government Bond specialists of The First Team. Fast. Knowledgeable. Experienced. First National Lincoln — Nebraska’s most active dealer bank. The F irs t Team. FIRST NATIONAL LINCOLN 13th & M Streets • P.O. Box 81008 Lincoln, NE 68501 • Phone (800) 742-7376 Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 62 Faster a v a ila b ility c a n im prove your profit picture. Item availability can have a significant impact on your bot tom line. So, it's important to choose a correspondent bank with state-of-the-art data proc essing services. That's why so many Iowa bankers rely on Bankers Trust for fast, efficient data processing. We have the resources — both technology and people — to provide rapid availability of funds and data. We would wela s s it! fi come the opportunity to handle all of your EDP and cash letter activities. For complete information on Bankers Trust EDP services, call our Correspondent Banking De partment, 800-362-1688 (toll-free from anywhere in Iowa). Bankers Com e C row W ith us St Des Moines, Iowa 50304 Member: FDIC/ Federal Reserve System Iowa’s largest locally owned, independent bank Use our toll-free WATS line: 800-362-1688 «5% .; § DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63 Iowa L.C. “Bud” Pike , pres., Grundy Center M. Milner, exec, v.p., Des Moines V ____________ In “ Pursuit of Excellence” — Iowa Convention Offers Top Speakers LOOK at the advance program his remarks and delineating each panelist’s own vision of the financial _ for the 97th annual convention of the Iowa Bankers Association services industry. This panel will be shows that the IB A will have no moderated by Hank Koehn, vice trouble in fulfilling its convention president of the Futures Research theme, “ Pursuing Excellence.” An Division of Security Pacific Nation # outstanding array of speakers has al Bank, Los Angeles. Panelists will been lined up for the nation’s largest be: John Evans, president, AID In state convention, which usually at surance Services, Des Moines; Dr. tracts between 3,000 and 4,000 Allen Lipis, president, Electronic registrants. In fact, only the A B A Banking, Inc., Atlanta, Ga.; Paul # national convention tops it in Dunlap, president, Hawkeye Banregistration. The convention will be corporation, Des Moines, and Muriel September 18-20 at the Marriott Siebert, president, Muriel Siebert and Company, Inc., New York, who Hotel in downtown Des Moines. is a former New York State superin tendent of banking. Completing the Monday after noon program will be A B A Presi dent William Kennedy, Jr., chair man, National Bank of Commerce, Pine Bluff, Ark. Starting off the convention Sun day morning will be a new feature — “ Capital Pursuit” — consisting of a three-mile run and a competitive 10-mile run. IB A is co-sponsoring this with the Des Moines Register and Tribune. A MAC DAVIS E.H. DOLE In announcing the program, L.C. “ Bud” Pike, president of IBA and • president, Farmers Savings Bank, Grundy Center, designated South Dakota Governor William Janklow as the keynote speaker for the open ing business session Monday after® noon. Gov. Janklow is well-known for his innovative approaches to widening financial service in his state. Following the Governor’s address ® will be a special panel responding to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Register and Tribune newspapers; Iowa Congressman Jim Leach (1st District); John Ruan, president, Ruan Transportation Co. and af filiated firms, and John Chrystal, president, Iowa Savings Bank, Coon Rapids, a long-time leader in agriculture and ag banking in Iowa. The Tuesday morning business session will be addressed by Spencer Johnson, co-author of the best seller “ The One-Minute Manager,” and The Hon. Elizabeth Hanford Dole, Secretary of Transportation, Wash ington, D.C. Appearing on the after noon program with Dr. Mollen is ex pected to be presidential candidate S enator John G lenn, form er astronaut. The inaugural dinner and show will close out the convention Tues day evening at The Marriott. A full program for spouses offers an assortment of 16 different fea tures ranging from craft instruction to tours. An extensive exhibit area again will bring the latest in bank ing services and technology directly to the convention. A complete program for the 97th Iowa convention will be published in the September issue of the N orth western B anker. □ IBA Officer Nominees A mail ballot for election of of ficers for the Iowa Bankers Associa tion’s 1983-84 year is to be con ducted during August. The installa tion of officers will take place during the Tuesday evening Inaugural Ban quet at The Marriott Hotel in Des Moines, September 20. A1 Maser, president, First Na tional Bank in Le Mars, who was A n o te d p h y s ic a l fit n e s s named president-elect at the conven p h y sicia n -co lu m n ist w ith the tion a year ago, will advance to the Register, Dr. Art Mollen, will be IB A presidency, succeeding L.C. leading “ Capital Pursuit.” He will “ Bud” Pike, president, Farmers also address the convention Tues Savings Bank, Grundy Center. The nominee for president-elect is day afternoon. Annual meetings for the IBA, William Logan, president, The State IBMC, IBIS and ITS, Inc., will all OFFICER NOMINEES ... be held Sunday afternoon. Two per (Turn to page 78, please) formances of evening entertainment will be offered at the downtown Civic Center, featuring top star Mac Davis in concert. The traditional Monday morning ag program will be moderated by Alan R. Tubbs, president, First Cen tral State Bank in DeWitt, who is an executive committee member of the A B A ag division. Panelists include G ary G erlach, president and publisher of the Des M oines A. MASER W. LOGAN Northwestern Banker, August, 1983 64 Iowa News ARCHITECTS sketch shows exterior of completed Treynor State Bank. On the right, Judy Guttau (left), mktg. dir., talks with two of the architects in the marketing area of the’bank. New Facility Marks Treynor’s 60 th Year HE 60th birthday of Treynor State Bank was marked by the opening of a new bank facility that stands as a symbol of progressive banking for the southeast Iowa com munity. Designed around the finan cial center concept by JacksonJackson and Associates of Omaha, Nebraska, the brick-faced facility provides 5,500 square feet for bank operations and an additional 3,000 square feet of rental space for pro fessional offices. General contractor was Arrow Construction Co. of Council Bluffs. Energy conservation was a major consideration in the design and re flective glass was used to reduce the air conditioning load. Five Lennox furnaces/air conditioning units are used in a zoned concept. For customer convenience, the new building features a drive-up which will allow Treynor residents to bank by car for the first time. The building interior features a 16 foot naturally lighted atrium at the south end of the lobby which drops to a 12 foot lobby ceiling. The entire building is fully handicapped ac cessible and also utilizes the latest in security systems. Highlighting the interior design is the woodwork and furniture crafted by Becker Manufacturing in Alta, Iowa. Oak teller windows with mar ble tops, oak desks and fixtures are all accented with brass fixtures. Bank President Mick Guttau in dicates the new building not only allows for immediate new service of ferings but with the additional space it paves the way for growth in the field of related services. Spencer President Named Prior to joining the bank, he was secretary and treasurer of Al-jon, Inc., and senior vice president of Brenton National Bank, Perry. T United Central Bank of Spencer, N.A., recently announced the elec tion of G. Larry Owens as presi dent and chief e x e c u t iv e o f ficer, effective August 9. He succeeds John W. Rahn, who has resigned to p u rsu e o th e r b u s in e s s in G.L. OWENS terests. Named new vice president was Ronald C. Milbach, formerly vice president and ag representative of Brenton State Bank, Eagle Grove. Mr. Owens joined the bank in August, 1982, as senior vice presi dent and was made executive vice president in February of this year. Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Grinnell Bank Announces Staff Changes, Promotions Two officers of the Poweshiek County National Bank, Grinnell, have been promoted and two other individuals have been named to of ficer positions. Dennis W. Hanson has been elected vice president, while Nona E. Paisley has been pro moted to assistant vice president. Daryl K. Petty and Jerald B. Sulli van have been named assistant cashiers. Larry A. Mindrup, president, commented that the promotion of Mr. Hanson and Ms. Paisley reflects added responsibilities they have ac cepted as a result of recent officer ^ retirements. Mr. Hanson joined in 1979, was named assistant cashier in 1980 and assistant vice president in 1981. Ms. Paisley, who has been a sso-^ ciated with the bank since 1966, has been an assistant cashier since 1971. Mr. Petty joined the bank last fall and will be serving as a lending of ficer and general officer for the f bank. Involved in consumer lending and student loans as well as having duties as a general bank officer, Mr. Sullivan joined in 1982. Davenport President Named Ronald R. Estervig has been named president, chief executive officer and a director of First Trust and Savings Bank, D a v en port. Mr. Estervig had most recent ly been senior vice president and administra tive officer of M a rin e B ank Dane C ounty, M adison, W is R.R. ESTERVIG consin. Prior to that he was associated with Marine First National Bank, Janesville, Wisconsin for 13 years. Mr. Estervig is a graduate of the University of Wisconsin, Platteville, receiving his BBA in 1967. He is a graduate of the Graduate School of Banking at the University of Wis consin as well as the Graduate Lend ing School at the University of Oklahoma. He has also received the certified commercial lender designa tion. M anaging by the seat o f your pants could m ean losing your shirt. • • ^ In the past, banking was simple — buy low and sell high. You could manage on instinct, by the seat of your pants. Unfortunately, deregulation has sent that philosophy the way of the teller’s cage. With change constant and com petition fierce, bank-management decisions are more complicated and crucial than ever before. A BICS management decision support sys tem can help you meet this challenge. With BICS, you can make decisions quickly — full automation of operations lets you instantly gather into one source all information on bank activity; at any moment you can determine the current condition of your bank. You can anticipate and prepare for the future by testing your ideas and exploring pos sibilities with on-line financial modeling. You can maximize marketing efforts with our central information system that stores every piece of customer information. A BICS system means you, and all your peo ple, can make more profitable decisions. Which means you get to keep your shirt and order a dozen more. Find out how you can profit; call BICS marketing at (319) 395-6600. Banks of Iowa Computer Services, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A "Banks o f Io w a " subsidiary. 66 Iowa News Hawkeye Bank and Trust, Burlington, Holds Open House ® OVER 2,000 local residents toured the new facility for Hawkeye Bank and Trust, Burlington, at an open house held July 10. As shown in the exterior view on the left, the new facility is one block long with the new addition spanning two stories. The new bank building will also of fice Hawkeye nsurance Services, Hawkeye Bancorporation Mortgage Company and McGladrey Hendrickson & Co. In the riqht hand pic ture is shown left to right: Kay Wivell, Burlington Chamber of Commerce Captain; Tom Read, Jr., chmn.; Mayor Jerry Rigdon; Douq Grinde pres., and Claud Ernst, another Chamber of Commerce Captain. ’< American Trust & Savings, Dubuque, Elects William D. McGeehan President IRECTORS of American Trust & Savings Bank, Dubuque, at their July 15 meeting, elected Wil liam D. McGeehan as president and a member of the board of directors. He succeeds Christy Armstrong, who announced his retirement ear lier following a 48-year career in Iowa banking (July, p. 82). Mr. M cG ee han has more than 22 years of banking experi ence in New Jer sey and New England states. Prior to becom ing the principal in M cG e e h a n A s s o c ia t e s , a W.D. MC GEEHAN bank and bus iness consulting firm, he had been executive vice president and a direc tor of The Bank of New Hampshire, N.A., Manchester, that state’s larg est bank. Mr. McGeehan was graduated from Holy Cross College and has a Master’s Degree from Fairleigh Dickinson University. He has been involved in a wide variety of civic and professional activities. Mr. and Mrs. McGeehan have four children. D Sioux City Officer Named The board o f directors o f Hawkeye Bank & Trust, Sioux City, elected Michael A. Tonner to the position of loan officer. DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Tonner’s main duties are in the installment loan department, and he recently was given the addi tional responsibility of handling the bank’s student loan program. He joined in 1982. J.R. Helscher Honored For 50 Years Service at Keota J.R. Helscher, 65, president of the Farmers Savings Bank in Keota, was honored by directors and staff July 22nd at a special party attend ed by a number of visiting bankers on the occasion of his 50th year of service with the bank. Two days later, a public open house was held to honor Mr. Helscher as well as to mark the 90th anniversary of the bank. Mr. Helscher began working for the bank while still in high school, the third generation of his family to work for Farmers Savings Bank. His father, J.W. Helscher, served as president from 1933 until retiring in 1964 due to illness. J.R. Helscher was elected assis tant cashier in 1943, was advanced to cashier in 1952, and was elected executive vice president in 1960. He has served as president since 1970. Toledo Appointments Told Mr. Roan, an a ttorn ey w ith the Toledo law firm of Mickelson, Roan and Appelgate, has served as a bank d ir e c t o r and le g a l c o u n s e l prior to his ap p o in tm e n t as J.E. ROAN chairm an. He fills the vacancy made by M.G. © Mickelson, who recently resigned, but remains as trust officer and an advisory board member. Ms. Rein ing, retired, was associated with Tama County Abstract Company 4) for 23 years. Elected to Ottumwa Board Gary L. Yates, president of Ideal Ready Mix Company, Inc., Douds • Stone, Inc., and chairman of Ideal Concrete Company, has been elected to the board of Norwest Bank Ot tumwa, N.A. Director Elected Frank Weiner, Jr., 54, north Iowa farmer and owner of the Cartersville Elevator, Inc., with facilities in ^ Cartersville and Nora Springs, has been elected to the board of Norwest Bank Mason City, N.A. CBCT Branch Approved James R. Roan has been ap The Lakes National Bank, Arnold pointed chairman of The State Bank Park, recently received approval to of Toledo and Leona Reining has esatablish a CBCT branch at High been elected to the board of direc way 71 and Sanborn Street in tors. Okoboji. * 67 Theproblemwithmost bankinsuranceisthatitwasn't conceivedbybankers. There are farmers’ insurance companies and firemen’s insurance companies. Even com panies founded by travelers. But IBIS insurance was designed by Iowa Bankers only for Iowa banks. In fact, IBIS is ow ned by all Iowa banks. A n d dollar for dollar, you can’t do better. W hether it’s property and casualty insurance or creditor protection. Employee group health, life, or disability. IBIS professionals tailor each plan to meet your bank’s needs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A t rates you don’t be a banker to appreciate. Dividends? Last year we paid over $475,000 to Iowa banks. For more inform ation, call L 800-532' 1423 toll-free. A n d find out how m uch better insurance from bankers can be. 5$ m LLxstS IowaBankersInsurance &Services,Inc. 400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308 Northwestern Banker, August, 1983 68 Iowa News “Sound of Music” Brings Happiness PICTURED between acts of “ The Sound of Music” were from left: Scott Fetner, pres., Natl. Bank of Waterloo; Ray Busching, pres., Hudson State Bank, and his wife, Verjean, and Bill Rickert, sr. v.p., Natl. Bank of Waterloo. HEN the National Bank of Waterloo sponsored the open ing night of “ The Sound of M usic” last month at the Waterloo Com munity Theater, the 372 correspon dent bankers and spouses who were guests not only had first-class enter tainment but a pleasant surprise as well. NBW officials Scott Fetner, president, and Bill Rickert, senior vice president, presented a plaque to Ray Busching, president of Hudson State Bank for his 50 years of ded icated service as a musician in the northeast Iowa area. Mr. Busching has played with the Waterloo American Legion Muni cipal Band for 50 years, where he has been first clarinetist for most of that time. He is also first clarinetist with the Cedar Falls Municipal Band. He played in the Waterloo Cattle Congress Show Band for many years and still marches in as sorted parades and civic shows. His wife, Verjean, was fourth clar inetist in the Waterloo Municipal Band and their daughter, Roxanne, also plays the clarinet. It was an ap propriate evening for National Bank of Waterloo to honor the Buschings for their years of musical service for it also turned out to be their 35th wedding anniversary. In addition to being a full-time banker and afterhours enthusiastic clarinetist, Ray Busching is a 50-year member and Gold Card holder in the American Federation of Musicians. Merchants Promotions, Reassigments Announced Calvin Coquillette, formerly of the marketing division, has been assigned to the commercial loan division. Carole 0 ‘Deen has been promoted to director of personnel and will have responsibility for the exempt and non-exempt personnel func tions. Reporting to Ms. O’Deen will be Kaye Fulrath, assistant vice pres ident and benefits administrator, and Barbara Elam whose responsi bilities include placement and Merchants National Bank, Cedar Rapids, has announced the following promotions and reassignments: Pam Clark has been promoted to marketing officer with responsibili ty as marketing director. In her new position, Ms. Clark will report to William Coppock, vice president for marketing and corporate banking. P. CLARK C. O’ DEEN DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T. WATSON J.M. SCHENKELBERG employee counseling. Ms. 0 ‘Deen will report to Larry Christy, vice president and comptroller. Tom Watson, formerly branch manager for the Kingston Office, assumes reponsibility for all con sumer lending activities as director and has relocated to the main bank downtown. He will report to Jim Struve, vice president, retail bank ing division. Bill Holtey has been promoted from supervisor of the commercial loan operations area to commercial lending officer. John M. Schenkelberg has been named branch banking officer at Merchants National Bank. Mr. Schenkelberg has been with the bank for seven years and succeeds Mr. Watson as manager of the Kingston Office. Elected in Sioux City Daniel G. Augustine and Douglas Rice have been elected senior vice presidents at Security National Bank, Sioux City. Mr. Augustine, who is in bank op erations, will have responsibilities in data processing, bank operations, in formation systems and building management. D.G. AUGUSTINE D. RICE Mr. Rice, who serves in finance, is in charge of auditing, loan review and the accounting areas. He joined the bank in 1975 and most recently was promoted to vice president and general auditor in 1980. Promoted in Fort Dodge At United Central Bank & Trust Company, Fort Dodge, Linda M. Fuller has been p r o m o te d to trust operations officer. Ms. Fuller has been with the bank since 1978 and has worked since than in the L M FULLER trust department. Iowa News GOAL ORIENTED DETAIL ... ® (Continued from page 28) market. We will also carefully draft further de-regulation and assimilate into “ what if” forecast. £ If, after several drafts, the asset structure goals are profitably inade quate, we analyze other income pos sibilities for improved earnings. Should other income objectives apIID pear realistic, we plan for the same and add to our P & L scenario. The final review is made for loan loss estimates and the tax planning strategy for the coming year. An ong|i going program of loan review and evaluation provides the means for reasonably accurate budgeting of bad debt expense, which ultimately determines a large measure of pro# Stability in today’s environment. Some of our goals for 1983 were as follows: ASSET/INCOME A. Increase loans as % of assets from 35% to 50% (Now 47%) Required: Some new products and old ones updated B. Hold assets to liabilities 1-1 (now 1.13-1) C. Increase service charges 20% (on target) D. Take active investment posi tion and bond gains E. Hold bond depreciation at near O on all investments that ex ceed 12 months maturity. F. Restructure tax investment portfolio (Avg. maturity 1 year and 8 months) G. De-regulate, pay real Money Market rates and promote both accounts. H. Slow funds growth in the over $100M deposit area. So much for general details, some of which are much less than fully discussed! It must be remembered that planning is a time-consuming process, particularly at the begin ning, which should be shared with every staff member on an on-going basis. In time, it could become a sub conscious management style. The final and most important critera for good planning is an in formed management board that also participates in the process. A good board listens to inside management concepts, challenges ideas with meaningful direction and is a viable part of the assimilation process. Our board is the management catalyst, and uniquely in step with the times. □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69 Count on Steve Hatz. A former country banker and currently vice president of the Correspondent Bank Department, Steve Hatz has a special understand ing of what community bankers need in today’s marketplace. Steve also has a personal com mitment to his correspondent bank customers. They know they can count on him to provide not only the best in ag overline, data processing and cash management services, but the information, ad vice and guidance necessary for a better, more profitable operation. If that’s the kind of service you'd like to be able to count on from a correspondent banker, call Steve Hatz at Security National today 712/277-6554. People with an interest in you. SECURITY NATIONAL BANK Sioux City, Iowa 51101 Member F.D.I.C. Northwestern Banker, August, 1983 70 HEADING up Iowa Independent Banker activities for 1983-84 will be these individuals, from left: Vice Pres.— David Taylor, pres., Iowa T&S, Centerville; Immed. Past Pres.— Don W. Heineking, pres., Security State, Hubbard; Arnold Schultz, pres., Grundy Natl., Grundy Center; Exec. V.P. — Richard W. Berglund, Des Moines; Exec. Dir. — Diane Gibbs, Des Moines, and Treas.—William P. Wilson, pres., Oelwein State. IIB Elects Arnold Schultz President By BEN HALLER, JR. Editor and Publisher ORE THAN 500 bankers and their families attended the 12th annual convention of the Iowa In dependent Bankers at Lake Okoboji last month. Meeting at the New Inn, IIB members elected these officers for the coming year: President—Arnold Schultz, chair man and president of The Grundy National Bank, Grundy Center. Vice President—David Taylor, president, Iowa Trust and Savings Bank, Centerville. Treasurer (reelected for one year)— William P. Wilson, president, Oel wein State Bank, Oelwein. Immediate Past President—Don M An impressive array of six guest^ speakers at the business sessions made this one of the finest IIB con ventions ever. In addition, three special interest sessions offered in sights into three specific product^ areas available to IIB bankers. Ray Vens and Bill Moler gave details on the Community Bankers Insurance Agency, Des Moines, which will help IIB members m arket# their insurance agency property and casualty products, in their presenta tion titled “ Insurance You Can Bank On.” William E. Kugler and Wayne Tillman of Federated Securities # Corp., Pittsburgh, Pa., described “ Products to Increase the Competi tiveness of Independent Banks.” The third was “ A New Alternative Source of Funds for Agriculture,” # outlining the ag service from MABSCO Agricultural Services, Inc. (MASI), and presented by Edward L. Tubbs, president of M ASI and chair man, Maquoketa State Bank, a n d # Jim C. Potter, executive vice presi dent, MASI, Des Moines. ald W. Heineking, president, Securi ty State Bank, Hubbard. Continuing as executive vice presi dent and corporate secretary at Des Blistering hot weather didn’t Moines headquarters of IIB is dampen the enthusiasm of golfers, ^ Richard W. Berglund. Diane Gibbs tennis players or those attending the * continues as executive director in the opening night lakeside social recep Des Moines office. tion. Bankers Trust Company of Des Elected to three-year terms on the Moines hosted the poolside reception IIB board of directors were: the second evening under a com- ^ Richard Aadland, president, Pio parably hot sun. The hot spell broke 9 neer Valley Savings Bank, Sergeant in time for a pleasant lakeside recep Bluff. tion and barbecue dinner the last Rodney Burnett, president, Wilton evening. Savings Bank, Wilton. Retiring IIB President Don Heine- ^ Michael K. Guttau, president, king presided at the first general ses Treynor State Bank, Treynor. sion, giving his annual report to the Ned Job, president, Iowa State members as the opening address. He Savings Bank, Knoxville. paid tribute to his fellow officers, Edward K. Johnstone II, Keokuk board members and committee £ Savings Bank & Trust Co., Keokuk. chairmen who accomplished several LEFT— Iowa native Hugh Sidey, Washington editor of TIME, visits before his talk with MB’s Exec. V.P. Dick Berglund. RIGHT— Harry Keefe # responds to a group of interested bankers following his address. Banker, August, 1983 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News major projects during the past year. These included a strong membership campaign, a well-attended and received seminar presented earlier this year by the program and public relations committee, and a well organized legislative committee. Mr. Schultz, who served as vice president this past year, presided at the second general business session. Mr. Berglund gave a report on state legislation affecting bankers, then introduced an unexpected spec ial guest—Kenneth A. Guenther, ex ecutive of the Independent Bankers Association of America, Washing ton, D.C., who brought IIB members up-to-date on federal legislation. He gave special emphasis to the pending August 1 deadline for comment to the Federal Reserve Board on the proposed change in Regulation Y that would practically destroy the one-bank holding company philo sophy as a viable vehicle for indepen dent bankers to redeem bank stock with the same kind of tax break that large multi bank holding companies have. Mr. Berglund cautioned his au dience that vigorous attention must be paid to the efforts of multi bank holding companies in the state who will again be pursuing in the next session of the state legislature their effort to expand the 8% limitation on bank deposits that currently governs the limit of MBHC holdings in Iowa. He warned also that other holdover bills would include the effort for reciprocity with other states that allow expansion in their states by out-of-stae banking organizations, as well as the push for statewide branch banking which some Iowa Develop ment Commission staffers are push ing in an effort to emulate South Carolina’s recent growth. He re viewed quickly the still to be decided lawsuit by Iowa Banking Superinten dent Tom Huston against out-ofstate banks and brokerage firms who 71 are trying to solicit deposits to be siphoned for investment in CDs in those out-of-state banks. Pending decisions by the Fed Board on the First Bank System/Banks of Iowa stock purchase also were mentioned. Prof. Charles M. Williams, who holds the George Gunn Chair of Com mercial Banking at The Graduate School of Business Administration at Harvard University explored the topic, “ Building a Strategy for Sur vival and Posterity.’ ’ Prof. Williams found a friendly audience to start with, since a number of bankers have taken part in his 22 senior bank of ficer seminars at Harvard. He said key forces for change in clude inflation, with its uneven im pact, and the need for continuing to consider it a critical subject; a freer, more far-flung, fluid, fearsome com petition; a broadening customer receptivity to change, and the major impact of applied technology. He also pointed to the internationalizing Larry Frowick, sr. v.p., Bankers Trust, Des Moines, and Flo; Jim Herrington, IBAA natl. pres., and Helen; Jean and Herman Küpper, pres., Bank ers Trust; Earl Freel, pres., Altoona State, and Marilyn; Ben Eilders, sr. v.p., Bankers Trust, and Vera, and Don Jordahl, v.p., Bankers Trust. LEFT-Homer Jensen, chmn., Iowa State, Morning Sun; Lorna Wissink, hon. chmn., Andrew Savings, and Max Roy, sr. v.p., Drovers Bank of Chicago. RIGHT— Bill Talen, pres., Farmers Sav., Traer; Prof. Charles Williams, Harvard U.; Jack Rigler, pres., Central State, Muscatine, and Fred Hagemann, pres., State Bank of Waverly. Enjoying the can of pop is Mr. Talen’s granddaughter, Molly Rich, of Marietta, Ga. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 72 Iowa News • Lead from strength. • A vital need is consumer marketing skills today. • Build the board of directors as a meaningful resource. • Activate shareholder support. • Develop earning power—a vital necessity. • Buy money well. • Hone top management decision making skills. • Develop an effective manage ment team. • Avoid the costly mistakes. • If you can’t hack it, face up! “ H ig h ly im p o r t a n t ,” P rof. Williams stated, “ is being close to your customers. Know them, what they need and will buy. This is marketing.” New 11B President Schultz’ first official duty was to crown Mary Grimstad as Queen and George Perry IV as King of the convention. Mary’s father is Larry Grimstad, exec, v.p., Security B&T, Decorah. King Perry’s father is George Perry, pres., City Natl., Shenandoah. of business and finance, which creates a higher risk environment and a new risk taking environment nationwide which makes bank management more demanding. The latter situation, he said, is due to a wider range of alternatives, the fact that traditional skills are no longer enough, and there are more chances to foul up. Prof. Williams then listed his game plan for Shaping a Winning Strategy: • Define what winning means to you—what kind of bank and results you want. P u rsu in g his em p h a sis on marketing, Prof. Williams suggested banks “ should call tellers their customer service representatives. One of the assets most of you still have as bankers is that customers think of you as reliable, steady, credi ble, you’re here to stay. Build on that — make sure all people in your bank have that training. Know your pro ducts. Know your competition. Know what will sell. “ How do you get your staff to do this? Take time for training! Sort out the big depositors, for example, and make sure they know how to get good service from your bank. How many staffers in your bank can iden tify your 100 best customers?” He said rate is an important con sideration in a banking decision, but emphasized it is only one. “ Most peo ple,” he stressed, “ are willing to pay for thoughtful, considerate, ‘extra mile’ help.” He advised taking advantage of in- Grace and Ed Tubbs, chmn., Maquoketa State, were proud of their two grand daughters, Aimee Tubbs (left), Eldridge, and Mary Tubbs, Delmar. herent strengths and used the board of directors as an example. Here you can harness a team of able individu als who can listen — a useful balance wheel, a powerful source of com munications to you from the com munity and back, he commented. Explaining his point — “ Buy money well” — Prof. Williams stated, You can all buy money. The trick is to earn on it. You have to be willing to charge for your services. I think consumer loan markets, for ex ample, will be good ones. The home mortgage field will be a good one to be in, if managed well.” Prof. Williams concluded by cau tioning the bankers not to be the first to try the new, nor the last to put the old aside. After reviewing all the op tions and what has to be done as a LE FT-D on Heineking, pres., Security State, Hubbard, who presided as MB pres, at the convention; John Dean, pres., Glenwood State; Jim Herrington, IBAA pres., and Grant Gregory, chmn., Touche Ross & Co., New York, who was a convention speaker. RIGHT— Dave Miller, pres., i l West Des Moines State, and Joan; Delores and Al Maser, pres., 1st Natl., Le Mars, and pres.-elect of Iowa Bankers Assn. DigitizedNorthwestern for FRASERBanker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 When You Build Or Remodel Your Bank, Who Really Benefits? |0^Your Local Excavator □ Your Local Lumber Yard |0^four Local Concrete Supplier |0*ft>ur Local Carpet Store |0*Your Local Mason (0^V6ur Local Hardware Store [0^four Local Electrician IZ^four Local Motels i0^Vour Local Plumber [0*¥bur Local Restaurants ¡Fnfour Local Heating Supplier |0^four Local Drapery Shops |0*Your Local Paint Store 0 ^ fo u r Local Appliance Store |0^four Local Painter ¡Frffour Local Landscaper □ Your Local Roofer \PfYov.r Local Newspaper |0*Your Local Air Conditioning Company The Kirk Gross Company uses local contractors and suppliers whenever possible. But they’re not the only people who benefit. DO, TOO! The whole town benefits. That’s what your operation is all about. That’s what our operation is all about. KIRK GROSS CO. 4015 Alexandra Drive Waterloo, Iowa 50704 Phone 319-234-6641 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 74 Iowa News good, effective executive, he said, “ If you are not prepared to live sharply, vigorously; if you are not willing to work hard and be a leader, let so meone else carry the ball!” W. Grant Gregory, chairman of Touche, Ross & Co., New York, was the second speaker and his address, “ The Future of Independent Banks — A Perspective,” was reviewed in full in the August 1 issue of the N o r thwestern B anker Weekly Newsletter. Native Iowan Hugh Sidey (Green field, la.), Washington contributing editor for TIME magazine, gave “ A View from Washington” that was en couraging. After reviewing the many grave incidents he witnessed during his coverage of Presidents since Eisenhower, Mr. Sidey said, “ Wash ington is a factory of worst-case scenarios. But government is not the system; the private sector is still the dominant force, and there is our strength and our hope. Look at our bottom line — not bad.” He said bureaucratic Washington has evolved into a system now where those people and an expanded force of 20,000 aides to Congressmen have developed their own internal govern ment. “ Despite it all,” he stated, “ President Reagan has set the exam ple and proved to me the President is the most powerful person in the world. Despite his lack of knowledge on some things, he has dimensions of leadership that give an aura to the Presidency, and that power is bring ing peace to the world — we have the chance to bring tranquility to the en tire world.” He feels the President will run again and be re-elected if the economy continues its gains of the present recovery period. He conclud ed by saying, “ I think we’re on the brink of a new era.” Gerald Corrigan, the affable, knowledgable president of the Feder al Reserve Bank of Minneapolis^ reflected the same optimism as Mr. Sidey and added, “ If we are to gain that vision that Hugh outlined, we have to focus on issues as they affect the broader issues and public percep-^ tion — we must look at the longerrun issues and overlook the dust rais ed by momentary events at hand.” Mr. Corrigan stressed the posi tives in the economy— recovery and^ reduced inflation, but also cautioned his audience “ of a little danger in get ting caught up in the euphoria of the day. He cited the huge federal deficits that are forecast for som e^ years and the effect they’ll have be ing financed in the capital markets; detailed the problem of international debt, and stressed the need for guarding against any resurgence o f^ inflation by using vigilance — “ discipline is as vital as ever.” He said his prejudice is toward having a separation of banking and LEFT Mark Leonard, v.p., 1st Natl., Logan; Dale Anderson, sr. v.p., 1st T&S, Remsen; Stan Nervig, sr. v.p., Farmers State, Marcus, and Ken Guenther, IBAA exec, dir., Wash., D.C. RIGHT—Jim Coulter, pres., Security Savings, Williamsburg, with a gross 70, net 62 score, was the win ner of the American Trust & Savings Bank of Dubuque traveling trophy, awarded here by Bernie Miller, a.v.p. of American T&S. { LEFT— Rod Tangeman, pres., Security State, Guttenberg; Doug McDermott, pres., Home State, Jefferson; Bill Kennedy, pres., Farmers & Traders Sav., Bancroft, and Mike Bauer, 1st v.p., Davenport B&T. RIGHT— Dale Jacobsen, v.p., George State; Keith Garms, exec, v.p., Peoples % State, Elkader; Mark Geier, v.p., and Ken Harms, sr. tr. off., both with Iowa State T&S, Oskaloosa. DigitizedNorthwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News 75 LEFT—Woodrow Longinaker, dir., Randolph State; John Llljedahl, pres., 1st Natl., Essex; Ralph Storey, pres., Fremont Co. Sav., Sidney, and Dan Boatman, pres., Iowa State, Hamburg. RIGHT—Jay Tomson, pres., Citizens Natl., Charles City, visits with Jack Campbell, pres., Hum boldt T&S. commerce, “ but I see that the com petition between banks and between banks and non-banks will continue and accelerate. There is a need to be sensible about banking deregulation. A less regulated banking environ ment is here to stay and that doesn’t bother m e.’ ’ He reviewed the Treasury’s bill for deregulation of MBHCs — “ a bill the Fed now sup ports and merits your support.” Mr. Corrigan concluded by sta ting, “ It is important we all be will ing to put aside our own parochial in terests and decide what it will do for our total economic picture. I think our financial structure situation needs to be cleaned up and I associate a sense of urgency with this mission.” Harry Keefe, Jr., chairman and chief executive officer of Keefe, Bruyette & Woods, Inc., New York, was the final speaker at the general business session. During his talk he discussed the advantages of a “ float ing rate preferred stock” as being “ ideal for closely held ownership who don’t want to dilute their ownership. The concept is a good one, geared to Treasury yields and was designed ideally for corporate purchase. Cur rently, it has an after-tax yield of 10.2%. Dilution occurs only by the impact of dividends on earnings. It provides permanent money without giving out votes, and is approved by regulators. In one year it raised $3.5 billion, the largest amount of capital raised in one year by the banking in dustry. It was used by 16 giant banks in the past year because their capital ratios were low.” Mr. Keefe endorses the FDIC ef fort to warn large depositors they are “ at risk” by placing deposits in ex https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cess of the $100,000 FDIC coverage. “ Banking is now being subjected to the same exams and tests you’ve been giving to your customers.” He also endorsed the concept of survival for smaller banks by picking a niche and competing with major banks, but said “ the outlook is bleak for small banks in big cities.” He said “ there are no economies of scale above $300 million.” IB A A President James Herr ington, addressing the final noon lun- cheon on Saturday, said, “ The com puter has been a lifesaver for in dependent banks.” Mr. Herrington recited the intricacies of politics in Washington, relating a number of in stances where he and IB A A staff were required to testify — always facing opposition from major banks going another direction. He cited Canada’s 116-year old law permitting nationwide branching, then said, “ There are now only 11 banks with 3,300 branches across Canada.” □ Committed to making your bank stand apart from the Northwestern Banker, August, 1983 76 John L. Bailey has joined Norwest# Leasing, Inc., as lease marketing of ficer for its Iowa region, based in Des Moines. M r. B a ile y joined Norwest L e a s in g from N orwest Bank D es M o in e s , N.A., where he was a second vice president in commercial lend ing. He served in numerous posi tions in the U.S. Air Force from # 1966 to 1978 and currently is a pilot with the Iowa Air National Guard. * * * George F. Milligan, president and chief operating officer of Norwest Bank Des Moines, N.A., recently an nounced the following: Larry Reding recently joined as vice president and manager, agri cultural services department; Linda Skjeveland has joined as second vice president at the 2505 East Euclid of fice; Hayden C. (Buzz) Curry, C. Ann Nordquist and Linda M. Wade were named second vice presidents and Brian Smith was elected interna- L. REDING L. SKJEVELAND H.C. CURRY C.A. NORDQUIST mÊÊÊÊ & L.M. WADE B. SMITH Northwestern Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i Directors of Hawkeye Bancorp poration filled three board vacancies tional operations officer. Mr. Reding previously was em with the election of Robert W. Mur ployed by Sac City State Bank as ray, Lewis L. Lowe and Ronald R. executive vice president, agricul Runger at its regular meeting held 4 tural, commercial and real estate July 12. In addition to lending. Ms. Skjeveland most recently was the election of employed by United Central Bank, the three new where she held the position of man d irectors, Mr. Murray was pro aging branch officer. Mr. Curry joined Norwest Bank m oted to e x vice Des Moines in 1975 as bank services e c u t i v e of manager and was named facilities p r e s i d e n t Hawkeye, a posi management officer in 1980. Ms. Nordquist joined the manag- tion vacated by R.W. MURRAY Weil, ment trainee program in 1979, was Myron named communications center sup ervisor later that year and office management officer in 1981. Having joined in 1979, Ms. Wade was named operations supervisor in 1981, cash management manager in 1982 and operations officer later that year. Prior to joining the bank in May of this year, Mr. Smith was em ployed at Utica National Bank and L.L. LOWE D.R. RUNGER Trust, Tulsa, Okla. who was elected vice chairman of * * * the board. Mr. Weil has announced £ his retirement as of the end of this Effective July 1, Brenton Na year. tional Bank of Des Moines com Mr. Murray has been senior vice pleted the final phase of its three- president and treasurer for Hawkbank merger by merging Brenton eye and has been with the company # National Bank of South Des Moines for 11 years. He is responsible for all into Brenton National Bank, raising corporate accounting, audit, legal to seven the number of Brenton Na and financial planning functions. He tional Bank locations in the Des also has the responsibility of mon Moines area. The first phase was itoring and overseeing company- # completed when Northwest Brenton wide operations and data processing National Bank was merged Decem functions. He is a CPA and was in ber 31, 1982, into Brenton National. public accounting prior to his The newly merged Brenton Na association with Hawkeye. tional Bank has assets of over $180 Mr. Lowe started his banking car- # million. eer in 1958. He was elected presi- 77 NOW YOUR CUSTOMERS CAN BUY AND SELL STOCK W ITHOUT ALL THE BULL GENERATE FEE INCOME United Central Bank’s Personalized Dis count Brokerage Service provides your bank with an excellent new source of fee-based income, without expensive start up costs for equipment or staff. And, unlike many other discount brokers, your bank maintains primary con tact with your custom er ...not some faceless 800 number hundreds of miles away. YOUR CUSTOMERS SAVE MONEY Your customers may be able to save up to 75% of the com m is sions charged by fullservice brokers. UCB’s personalized discount brokerage service will appeal to your high net worth, high incom e cus tomers, giving you a competitive advantage, an expanded relation ship, and a profit base that you can continue to build on. IF YOU'RE INTERESTED If you ’d like more information about how Personalized Discount Brokerage Services can work for you, contact a UCB Correspondent Banker at 1-800-362-1615. UNITED CENTRAL BANK OF DES MOINES. N.A. AFFILIATED WITH UNITED CENTRAL BANCSHARES. INC. MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, August, 1983 78 Iowa News dent of Lyon County State Bank in 1970, and advanced to the parent company in 1981 as a senior vice president. He serves as Chairman of the loan committee. Mr. Runger joined Hawkeye Bancorporation from First National Bank, Dubuque, when he was elec ted president of Jasper County Sav ings Bank, Newton, in 1971. He moved to' the parent company in 1981 when he was elected senior vice president. He is chairman of the bank relations officer committee. * * * United Central Bank of Des Moines, N.A., has announced that Linda J. Fair has been named manager of the West Des Moines of fice. Ms. Fair started as secretary in the marketing department in 1977, most recently serving as customer service rep III. OFFICER NOMINEES ... (Continued from page 63) Central Savings Bank, Keokuk. Mr. Logan was chairman of Group 11 of the IB A and completes his two-year term on the IB A board next month. Mr. Logan was graduated from the University of Iowa where he played varsity basketball for three years and was a member of the Fab ulous Five team under coach Bucky O ’Connor in 1955-’56. He received his degree from the School of Business Administration. He also completed studies at the Graduate School of Banking at Madison in 1962. Mr. Logan is a member of the board of directors of the University of Iowa Foundation. Bill Logan and his wife, Jean, have three sons and two married daughters. Their son, Tyler Logan is vice president and counsel for State Central Bank, the fifth generation of his family to be associated with the bank. Two sons are still in college. Two bankers have been nomina ted for the office of treasurer for a two-year term: Holmes Foster, president and chief executive officer, Digitized Northwestern for FRASER Banker, August, 1983 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H. FOSTER R. RANDALL Banks of Iowa, Inc., Des Moines, and Richard Randall, president, Dunlap Savings Bank, Dunlap. Mr. Foster joined the Banks of Iowa holding company at Cedar Rapids headquarters as vice presi dent and secretary in January, 1971. He was named senior vice president in December, 1972. In March, 1979, he was elected president and chief operating officer, then when head quarters were moved to Des Moines in January, 1981, he was named chief executive officer. Prior to join ing Banks of Iowa, Mr. Foster began his banking career with the Federal Reserve Bank of Chicago in 1951. Later, he joined the Iowa depart ment of banking where he was ap pointed assistant to the superinten dent in 1959, then served as deputy superintendent from 1962 until join ing BofI in 1971. Mr. Randall has been president of his bank for 20 years. Prior to join ing Dunlap Savings Bank he worked at the Brenton State Bank in Eagle Grove from 1955 to 1960, at Securi ty Savings Bank, Marshalltown from 1949 to 1954, and at Citizens State Bank, Gilman from 1941 to 1947. During his time at Gilman, Mr. Randall took time out for duty as a navigator with the United States Army Air Force, returning to the bank at the conclusion of W W II. Mr. Randall, who is 59, is a private pilot with instrument rating. His wife, Margaret, died of cancer a year ago and he has four grown children. Mr. Randall has completed banking short courses at Ames, Iowa City and Harvard, as well as a number of AIB courses. He has been an active participant in IB A committee work and was chairman of IBA Group 5, serving on the IBA board at that time, 1979-81. Mr. Randall also was on the board of ITS, Inc. and the Iowa Independent Bankers in their early years and is presently on the board of Iowa Bankers Insurance and Services. CHECK PROCESSING ... , (Continued from page 25 Omaha National. Our systems are designed to provide the local institu tion with a range of parameters which they can use to tailor-make# their product offerings to meet their individual needs, and be responsive to changes in a deregulated environ ment.” While Mr. Noren believes th a t# Remote Check Processing is destin ed to become the dominant process ing mode, he doesn’t believe it will comletely replace traditional pro cessing. • “ W e’re always going to have a mix because some banks simply aren’t operations oriented,” he add ed. But the trend to remote process-# ing provides regional banks such as Omaha National with important op portunities to broaden their market base for check processing and infor mation systems services. • And, for the community financial institution, Remote Check Process ing provides a new level of in-bank operational control and flexibility that will be of growing im portance# in an increasingly deregulated en vironment. □ INDEX OF ADVERTISERS AUGUST, 1983 A corn P rin ting ............................................................................. 15 A m erican N a tio n a l Bank & Tr. Co., St. P a u l......................... 37^ Bank M arke ting A s s o c ia tio n ..................................................29 Bankers T rust C om pany, Des M o in e s .................................. 62 Banks o f Iow a C o m pu ter S e rv ic e s ......................................... 65 Brandt, In c .....................................................................................4-5 Brem er Banks, St. P a u l............................................................. 39 C o m m ercial N a tio n a l Bank, P e o r ia .......................................30 C o n tin e n ta l Bank, C h ic a g o .......................................................11 D a ktronics, In c ................................................................................ 6 Deluxe C heck P rin te rs ............................................................... 79 Drovers Bank o f C h ic a g o .....................................................12-13 F & M M arq uette N a tio n a l Bank, M in n e a p o lis F irst N a tio n a l Bank, C h ic a g o ............................. F irs t N a tio n a l Bank, L in c o ln ............................... First Bank, M in n e a p o lis ...................................... F irs t N a tio n a l Bank, O m a h a ............................... F irst Bank, Saint P a u l.......................................... 44-45 . . .16 . . .61 . .8 -9 * . . .5 5 ^ 34-35 G ross, K irk Co., W a t e r lo o .................................... . . .73 Insureco Insurance C o m p a n y ............................. Iowa Bankers Insurance & Services, In c........... 14 67 Kooker, E.F. & A s s o c ia te s .................................... Lin co ln B e nefit Life C o.......................................... M erch ants N a tional Bank, Cedar R apids N a tio n a l N orw est N o rw est N orw est N o rw est Bank o f C om m erce, L in c o ln ............. L e a s in g ................................................... L e a sing/B usiness C r e d it .................... Bank M id la n d ........................................ Bank O m a h a .......................................... O ffic e C o ncepts, W a te rlo o ................................. O m aha N a tio n a l Bank ........................................ 2 . . .57 . . .80 ... 3 . . .32 ...5 2 # . . .75 40-41 Packers N a tio n a l Bank, O m a h a ..............................................56 S e curity N a tio n a l Bank, S ioux C i t y .......................................69 U nited C e ntral Bank, N.A., Des M o in e s ............................... 77 U nited S tates Life C redit In s u ra n c e ...................................... 7 ( Young, Fred J .................................................................................15 W ITHOUT THE CONTINUOUS HEADACHES. ip M ' % ifl America’s leading check printer proudly presents computer checks with a difference: guaranteed processability. If our checks fail to process for any reason, we’ll replace %em. No charge. 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