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• Regional check processing
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|

'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
"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
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,



Member F.D.I.C.
Federal Reserve Bank of St. Louis



Merchants National Bank m


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.


Federal Reserve Bank of St. Louis



90th Year


ALABAM A, MONTGOMERY, 205-284-1382

No. 1439




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.



City banks get aggressive

Exclusive survey relates correspondent bank programs


Regional check processing

Omaha National officer describes multi-state system


Planning and budgeting— Part

Norman Schultz outlines Goal Oriented Detail of his bank

6 Calendar
10 Bank Promotions
14 Corporate News
31 Illinois
33 Minnesota
36 Twin Cities
43 South Dakota


North Dakota
Montana Convention
Report, Photos


MB Convention
Report, Photos
Des Moines
Index of

LeFevre Money Processing Systems, Inc.
CALIFORNIA, IRVINE, 714-540-6575
Ernie C. Nietzke, Inc.
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.
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.
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.
Kruger & Associates, Inc.
KANSAS, LEAWOOD, 913-648-5049
P. Zambito Associates, Inc.
Harry Nedoma Money Processing Systems, Inc.
Warren Associates, Inc.
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.
R. E. Doll Enterprises, Inc.
Burgess A. Brooks, Inc.
NEBRASKA, OMAHA. 402-571-5577
Money Handling Machines, Inc.
NEVADA, HENDERSON, 702-564-2353
Money Processing Systems, Inc.
B. Forest Taylor, Inc.
Frank Connell Associates, Inc.
NEW JERSEY, AUDUBON. 800-322-8093
T. J. Welch & Associates, Inc.
Money Processing Systems
NEW YORK, FLORAL PARK, 212-343-4343
Slater Money Processing, Inc.
NEW YORK, COLONIE, 800-342-9299
Daniel L. Birkhauser, Inc.
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.
R. A. Simmons Co., Inc.
Timothy B. Bard & Associates, Ltd.
SOUTH CARO LINA, 800-438-2466

Carolina Money Processing Systems, Inc.
TENNESSEE, MEMPHIS, 901-398-1864

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


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
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.
Money Handling Systems, Inc.
Northwest Money Processing Systems, Inc.
W ASHING TON, SPOKANE, 509-448-0515
CPF Money Processing Systems, Inc.
Peter L. Castner, Inc.
W ISCONSIN, MADISON, 608-271-8616
Bruns, Inc.
For States not listed call: 414-261-1780




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 .

Federal Reserve Bank of St. Louis

BRANDT, INC., P.O. BOX 200, WATERTOWN, Wl 53094 (414) 261-1780
Northwestern Banker, August, 1983



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

National C onventions & Schools


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
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

Sept. 22-24—Independent Bankers of Col­
orado Annual Meeting and Convention,
Keystone Resort.
Sept.—CBA Caravan Meetings, (locations
throughout the state)

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 -


Hull, Iowa
Custom designed



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.

Aug. 18-22—IBA Outward Bound, Colorado.
Sept. 18-20—IBA Annual Convention, Mar­
riott Hotel, Des Moines.

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,
Sept. 26—Districts 3, 4 and 5 M eeting#
Registry Hotel, Bloomington.
Sept. 27—District 7 Meeting, Ramada Inn,
Sept. 28—District 2 Meeting, Orchid Inn,
Sleepy Eye.
Sept. 29—District 1 Meeting, Best W estern#

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.
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,
Sept. 28—NDBA Southwest Group Meeting,
Sept. 29—NDBA Southeast Group Meeting,^
Oct. 25-26—NDBA Bank Women’s Confer­
ence, Holiday Inn, Fargo.
South Dakota:

Eagle Grove, Iowa
Custom market report



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
Federal Reserve Bank of St. Louis


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*

USLIFE Credit Life Insurance Company • Sooner Life Insurance Company • Security of America Life Insurance Company
Federal Reserve Bank of St. Louis

‘ (w ith in Illinois, call 312-490-6000)

If your pi



Federal Reserve Bank of St. Louis





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
Correspondent Banking
First Bank Place
Minneapolis, MN 55480

We are w hat you w ant a correspondent bank to be.
Federal Reserve Bank of St. Louis


Bank Promotions
ROMOTIONS and other an­
nouncements have been made
by the following banks:


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
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
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
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
Mr. Cross re­
ceived his BA
d e g re e
fro m
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.


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
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 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
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

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
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-

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
the skills and expertise of its staff
are compatible with our future
& Trust Company, Chattanooga,
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.
Federal Reserve Bank of St. Louis


ROMOTIONS and other an­
nouncements have been made
by the following firms:


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
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
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
Hugo M. De Andrea has been elec­
ted vice president, with responsibili­
ty for business loan credit admin­
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.
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^
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.


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)
SAN DIEGO—(619) 560-0061
232-4880 KANSAS CITY—(913) 268-6123

Digitized Northwestern
for FRASER Banker, August, 1983
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
buildings, SON
Corporation is
one of the larg­
est suppliers of
modular financial facilities in the
United States. The firm has regional
offices in Florida, Texas and Califor-^

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 ,
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
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-

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.



"Accepted Sale Registers by Bank
Clerks Everywhere"
Tor information write

Oakland, Iowa

Bank Prom otions Are My Specialty. Let me
speak at yo u r next event.

Fred J. Young
“ How To Get Rich and Stay Rich”
Fell Publishers, Inc.
386 Park Avenue South,
New York, New York 10016
Federal Reserve Bank of St. Louis

Entertaining. Amusing. Authoritative. Inspirational.
Based on twenty-seven years’ experience as a professional
money manager at the Harris Bank helping rich people get richer.
Available on request.
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


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)

First Chicago

Cleveland— Da1las—Denver— Houston—Los
Angeles—Miami —New York—San Francisco—
Washington, D.C.

The First National Bankof Chicago



ThomasM. King,
Community Banking


© 1 9 8 3 The First National Bank o f Chicago. M em ber FD.I.C.

Northwestern Banker, August, 1983
Federal Reserve Bank of St. Louis


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
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


“ 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
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
for FRASER Banker, August, 1983
Federal Reserve Bank of St. Louis

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


program to assist us in providing
accurate data to our customers and

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. {

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.
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-

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
3. Announced “ Guaranteed
Availability Schedule” in response
to July 1, 1983 float pricing.
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
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
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
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.

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
i •p
<<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.
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

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
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
for FRASERBanker, August, 1983
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
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
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
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.



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.


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.
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.

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
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
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
New applications scheduled for release this year are
safe deposit box accounting and fixed asset accoun­
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
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
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
As with most data processing providers, the past
Banker, August, 1983
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
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
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,

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
Our active interest at MNB in seeking EDP busi­
ness from respondent banks has resulted in these ser­
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
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:
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.
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
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


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.


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
The courier distance and cost involved in transpor­
ting checks and reports back and forth was simply too
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.
for FRASER Banker, August, 1983
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
These equipment innovations also have opened the
door for Omaha National to extend its traditional
check processing reach.
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
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- ^
“ 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
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
(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.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
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


Northwestern Banker, August, 1983
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.)
Attitude and Framework
The following describes our attitude and framework
for planning.
The budgeting process in our bank represents more

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.










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:
Required Capital & Management Performance
Risk Management Concepts Regarding:
Deposit Volatility
Interest Rate Volatility
Management Systems
Public Financial Disclosure
The Competitive Environment
Market Expansion
Technology and Systems
These areas and others are carefully examined for
short term tactical and long range planning tech­
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

“ 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
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:
Funds are relatively easy to obtain. It will be a
matter of price and public confidence.
Employing funds on the asset side profitably
requires work, imagination and a collective ef­
The passive role of salesmanship belongs to
yesteryear banking and an active salesman­
ship mode must permeate the organization.
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.
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.
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

Banker, August, 1983
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
(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.


The Smart Money
is Heading to Atlanta
68th Annual Convention of the Bank Marketing Association

for Profitability: m i







The good n ew s is, deregulation is going to m ake
m arketing people the hero es of the
banking industry.


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
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.

A T (312) 782-1442.

309 W. Washington St.
Chicago, IL 60606
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

■ 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
■ 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.

Title________ ________________________________
City___________________________________ State
Phone (





In a world filled with
° hardware and software...



° we offer HUffiftnUJflRE





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
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Humanware . . . people you can count on
for quick and concise answers to your
banking questions.
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out the correspondent or corporate
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with everything from cash letter
processing to estate and trust services.


the Human
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Commercial National Bank
of Peoria Member Midwest Financial Group, Inc


301 S W, Adams
Peoria, Illinois 61631
Phone: (309) 655-5000







Cliff Michael


Jan Kepple

for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis

Art Hippie

Dorothy Newlin


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

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

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
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
the promotion of Mary Gail
deposits to Seaway National Bank,
to operations officer, and
Chicago, representing the first use
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
for developing and implementing
to be honored and customers who
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
as assistant trust officer at
tional amounted to $23.5 million in
Bank & Trust Company.
13,400 accounts. Approximately
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
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

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


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
Federal Reserve Bank of St. Louis

respond to your individual
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


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



Production Credit Association of
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
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
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.
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
in charge of opera­
of the Ivanhoe Office of First Bank
S ta te
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
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




3, 4 and 5

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


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
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
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


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,
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
“ The o b je c ­
tive of the new
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
“ 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
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


Banker, August, 1983
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
Senske has been named vice presi­ lo w in g
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
Mr. Bodeau is responsible for recently has been EDP auditor.
marketing services for F&M Mar­
Credit, Inc., re­
quette and its parent company,
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
Three new field analysts have ®
joined NBCI. David L. Griggs was a
former corporate staff accountant


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.


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
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.

Federal Reserve Bank of St. Louis

B A N K *



Northwestern Banker, August, 1983


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 ­
Before joining
the co r p o ra te
staff, Mr. Han­
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
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.
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
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
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.
Banker, August, 1983
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. ®
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

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
V ¿m r
loan officer. Mr.
Morehart has a
BS degree in business administra­
tion from Moorhead State University.

We’ve Changed
Our Name.

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
name which better describes our
activities in banking and
agricultural credit.


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
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
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
Federal Reserve Bank of St. Louis


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

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.
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


o er C o m ­
pany, the fourth


BMA Minnesota Chapter Elects Officers


Banker, August, 1983
Federal Reserve Bank of St. Louis


South Dakota
C.W. E k s tru m , près., P h ilip
J.M . Schw artz, exec. m g r., Pierre








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
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
M r. R oed er
started his bank­
ing career with
S e c u r it y
Na„ ______
* i n Cr
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
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
Mr. Harwood began his First
Bank System career in 1974 in Bill-

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
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

Officer Elections Told
The following officer elections
were recently announced at Western
Bank, Sioux Falls:
M ark
Wahlstrom, vice
president, mort­
gage loan origi­
n a tio n s ,
been serving as
a ssista n t vice
p resid en t and
manager of that
department for
the past year.
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






Federal Reserve Bank of St. Louis


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

Phil Gallivan,
Vice President
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.



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



Norwest Bank Black Hills, Rapid
City, recently elected Marlys Walk
as real estate loan officer in Belle

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
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

North Dakota Savings & Loans
ranked by assets
as of Dec. 31,1982


Federal Fargo
Gate City Federal
Midwest Federal
First Federal
Grand Forks & Minot
First Federal
Federal Fargo
First Federal


(millions $)





(millions $)

(millions $)


































- 500,978

- 998,803





- 356,674

- 947,675








‘ Includes loss of $496,933 attributable to Northwestern Federal of Williston during first half of 1982, prior to its merger with
Banker, August, 1983
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
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.


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.


“ 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
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-

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
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

Banker, August, 1983
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
Miles City President Named
Two newly elected officers of
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
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
sentative with
F ir s t
B ank
Miles City and
Lewistown President Named
a ssu m ed
position of ag
D.A. (Al) McRae has been elected
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.
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
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
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
was named head
Lewistown since 1963.

Montana News



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.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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,
Since 1981,
M r.
held the position
of vice president
and second of­
ficer with First
Bank Cloquet,
Minnesota. He began his banking
career in 1970 as an agricultural
representative with First Bank



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


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

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
M r.
H eck
m ost recen tly
has been serving
as assistant ad­
junct professor
of banking and finance in Montana
State University’s School of Busi­
ness, a position he has held since

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


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

First Colorado Bank & Trust, Den­
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
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

Banker, August, 1983
Federal Reserve Bank of St. Louis



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

Joins Arvada Bank


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

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
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

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


Instant Cash now
gives you a great
opportunity to
jump ahead of the


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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
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with access to over 6,000 ATM’s
stretching across the nation.
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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

i m

for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis

i l






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
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
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
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.
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






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
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
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


EVE RAL officer promotions
have been announced by John
D. Woods, board chairman and chief
executive officer of Omaha National
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
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









for FRASERBanker, August, 1983
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.
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
Elsie R. Con­
yers. Mary K. McBride has been
named financial institutions group
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




Don Ostrand

Ralph Peterson

Jim Flodine

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
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
N a tio n a l
Bank’s bond de­
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.







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


its institutional and individual in -^
vestors in the area as it has in t h e ^



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.



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
♦ *



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


Mike Drahota

Mary Herzberg

Terry Reiff

Investment Banking

Bond Investment

Bond Investment

i »


packers national bank
402- 731-4900

Or TOLL FREE In Nebraska
800- 642-9980
4710 South 23rd Street
for FRASER Banker, August, 1983
Federal Reserve Bank of St. Louis

O m aha, Nebraska 68107


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
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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.
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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
Federal Reserve Bank of St. Louis


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
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
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
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
& 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
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 ^
with over 400 people served.
volved in banking since 1965. For legal counsel for Realbanc in 1982.
for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis

Nebraska News


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


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 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
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
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

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,

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



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
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 ^
for FRASER Banker, August, 19B3
Federal Reserve Bank of St. Louis


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of First National Lincoln.

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Lincoln, NE 68501 • Phone (800) 742-7376
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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your profit picture.
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significant impact on your bot­
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choose a correspondent bank
with state-of-the-art data proc­
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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!

come the opportunity to handle
all of your EDP and cash letter
For complete information on
Bankers Trust EDP services, call
our Correspondent Banking De­
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from anywhere in Iowa).

Com e C row
W ith us


Des Moines, Iowa 50304
Member: FDIC/
Federal Reserve System

Iowa’s largest locally owned,
independent bank
Use our toll-free WATS line:

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for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis


L.C. “Bud” Pike , pres., Grundy Center
M. Milner, exec, v.p., Des Moines



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.




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
Following the Governor’s address
® will be a special panel responding to
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
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 ­

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
Northwestern Banker, August, 1983


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.


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 ­
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
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
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 ^
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 ­
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
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

M anaging by the seat o f your pants
could m ean losing your shirt.



In the past, banking was simple — buy low
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A BICS management decision support sys­
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gather into one source all information on bank
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A BICS system means you, and all your peo­
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Find out how you can profit;
call BICS marketing at (319)

Banks of Iowa Computer Services, Inc.
Federal Reserve Bank of St. Louis

A "Banks o f Io w a " subsidiary.


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.


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.
for FRASERBanker, August, 1983
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
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
le g a l c o u n s e l
prior to his ap­
p o in tm e n t as
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



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Even com panies
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Employee group health,
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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.



400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308

Northwestern Banker, August, 1983


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.



for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis



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



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
trust operations
Ms. Fuller has
been with the
bank since 1978
and has worked
since than in the
trust department.

Iowa News

® (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
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)
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
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.

Federal Reserve Bank of St. Louis



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.

Sioux City, Iowa 51101 Member F.D.I.C.

Northwestern Banker, August, 1983


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
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


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
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
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
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


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
• 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

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
• 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.
for FRASERBanker, August, 1983
Federal Reserve Bank of St. Louis


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

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|0*Your Local Air Conditioning

The Kirk Gross Company uses local contractors and
suppliers whenever possible. But they’re not the only
people who benefit.

The whole town benefits. That’s what your operation is all about. That’s what our operation is all about.

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
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.
for FRASER Banker, August, 1983
Federal Reserve Bank of St. Louis

Iowa News


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
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
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

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-







Northwestern Banker, August, 1983
Federal Reserve Bank of St. Louis


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
tural, commercial and real estate July 12.
In addition to
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 ­
Des Moines in 1975 as bank services e c u t i v e
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
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
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- #
eer in 1958. He was elected presi-



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Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1983


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
Ms. Fair started as secretary in
the marketing department in 1977,
most recently serving as customer
service rep III.
(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
Federal Reserve Bank of St. Louis



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.

(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
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
“ W e’re always going to have a
mix because some banks simply
aren’t operations oriented,” he add­
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

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..........................................

. . .16
. . .61
. .8 -9 *
. . .5 5 ^

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...........


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 ........................................

. . .57
. . .80
... 3
. . .32
...5 2 #
. . .75

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


ip M



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