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Federal Reserve Bank of St. Louis



t JrÈ'
' _ j î ® .......

Meet Dick Retz,
M N B Correspondent Banker.



Meet Dick Retz,

As an MNB Correspondent Banker, Dick brings over 13 years' experience
in agricultural finance counseling, ag lending and farm management to
his work.
As a farmer he understands, first hand, what your agricultural
customers are up against and the kind of financing they need to achieve
their goals.
MNB and its respondent banks are located in some of the country's
most productive farmland. And because agriculture plays such a vital role
in the economy, we've developed a special commitment toward
agricultural financing.
So when you have farm customers who need to restructure short
term debt into long term, need cash-flow financing, machinery loans or
cash to purchase additional land, talk to someone who knows about
banking and finance. Call Dick Retz at MNB. Dial 319/398-4320 or tollfree, 1-800-332-5991.

Merchants National Bank
Federal Reserve Bank of St. Louis

Cedar Rapids, Iowa


Member F.D.I.C.

i: i



Two F irsts m ake
*a force in correspondent banking.

First Bank Minneapolis and First Bank Saint
Paul Correspondent Banldng Departments have joined
forces to become First Bank Correspondent Banking.
We combined all the resources of two of the largest
0 correspondent banks in the region to create the newest,
biggest and most customer-driven correspondent
in the Upper Midwest.
What does that mean to you? It means you
can draw on the largest credit resources of any corres• pondent in the Upper Midwest. It means you can build
a solid banking relationship with the largest staff of
professional calling
officers in the area. And it
means you can rely on
• the resources of our
banking officers to solve
your specialized, multi­
bank, agricultural and
^ non-credit needs.
We reorganized to
fit the changing banking
world. You still need
regular contact with our
^ calling officers for bank
stock financing, standard
overlines and other credit
services, so we left that side of our organization
unchanged. But, you also needed more and more advice
• about the rapidly changing world of deregulated
banking. And so we’re giving it to you.
We created three new specialty divisions within

our expanded correspondent department: A MultiBank Ownership Division, a Non-Credit Products
Division and an Agriculture Production Credits Division.
All of our specialty banking officers are experts in their
own area and in correspondent banking. And that
means that they, too, can operate directly with you on a
regular basis, when you need them.
Also, First Bank Correspondent Banking officers
have instant access to all of the resources and expertise
of First Bank Minneapolis and First Bank Saint Paul.
So you can get the expert banking advice you need
whether it’s in inter­
national banking, consult­
ing services, security
sales and safekeeping, SBA
loans, leasing, and much
more. We even have an
entire division that
specializes in financial
services for the new highgrowth, high-technology
and service industries.
So, when you need
correspondent banking
services, talk to us. At
First Bank Correspondent
Banking you don’t have to go around in circles to
get to the experts. We have the credit you need and the
technical advice you have to have to stay profitable
in today’s ever changing world of banking.
At First, good news is all you get.

First B ank

C orrespondent
Federal Reserve Bank of St. Louis

First Bank Minneapolis
First Bank Place
Minneapolis, MN 55480

First Bank Saint Paul
332 Minnesota Street
St. Paul, MN 55101
(612) 291-5585

Members FDIC

Northwestern Banker, August, 1984


Doris Payne Named
NABW Executive Manager

AUGUST 1984 •

91st Year •

No. 1451


The big Dakota Bankers Centennial convention held at The Broadmoor in Colo­
rado Springs, Colo., last month was a big success and concluded with election of
1984-85 officers. South Dakota officers (upper left on cover, left to right) are:
Seated—Retiring Pres. Charles W. Ekstrum and new Pres. John A. Haerter. Stand­
ing—Pres.-Elect Burdette C. Solum; Vice Pres. B. Michael Broderick and Exec.
V.P. J.l. Milton Schwartz. North Dakota officers, (upper right, left to right) are: Re­
tiring Pres. Darold Petersen; new Pres. Les 0. Nesvig; Pres.-Elect Wm. M. Sanger;
Vice Pres.-Treas. Harvey H. Huber, and Exec. Dir. Harry J. Argue. Dakota Centen­
nial report starts on page 25.
Lower left—Iowa Independent Bankers met at Lake Okoboji last month. Front
row, from left: Retiring Pres. Arnold Schultz; new Pres. Ned K. Job and Vice Pres.
Larry Grimstad. Standing—Treas. Jock D. Stevenson; Exec. V.P. Dick Berglund,
and Exec. Dir. Diane Gibbs. Story starts on page 53.
Lower right—Jim Dawson, pres, of Dawson Hail Insurance Co., Fargo, N.D.,
hosted the annual convention of the International Hail Insurers’ Assn, in Fargo re­
cently. Front row, from left—Rene-Marc De Beaucaron (France), secy.-treas.;
Walter Galli (Italy), pres., and Mr. Dawson, board member. Standing—Hans Jakob
Bucher (Switzerland), Gunnar De Verdier (Sweden) and Arie Groot (Netherlands),
all board members. Story on page 8.



Rating the examiners!

Doris Payne, former senior staffer
of the Chicago Public School Sys­
tem, is the new
executive man­
ager of NABW
re p o rtin g
Phyllis Haeger.
She will be re­
sponsible for co­
ordinating the
a c tiv itie s
staff members
who head up ad­
ministration, education/research, public affairs,
com m unications/m arketing, and
convention/meeting service depart­
ments. NABW now totals o\0 30,000 women banking and financial
The new NABW executive man­
ager most recently served as special
assistant to Dr. Ruth Love, genei#
superintendent of the Chicago
Public Schools. She was responsible
for corporate public relations and in­
formation programs for the school
Previously, Ms. Payne served as
director of public information and
publications for the Oakland, Cal.
School District, which was also
under the direction of Dr. Love. Si®!
was one of three aides Dr. Love took
with her when she assumed the Chi­
cago post.

Exclusive survey shows area bankers give high marks to examiners

BMA Names New Officers

Dakota bankers celebrate Centennial
Pedersen to head Montana bankers
Ned Job is elected MB president


Bank Promotions
Twin Cities


South Dakota
North Dakota


Des Moines
Index of

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor


Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1451 Northwestern 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. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.

Northwestern Banker, August, 1984
Federal Reserve Bank of St. Louis

The Bank Marketing Association
has announced its 1984-85 slate of
officers and five new members of
Board of Directors.
To be installed at the Associa­
tion’s 69th annual convention Sept.
16-19 in New Orleans are Smith W.
Brookhart III, president and chi^f
executive officer, Centerre Bank of
Branson, Mo., president; John A.
Russell, vice president and director
of marketing, Banc One Corpora­
tion, Columbus, first vice president
and Michael P. Sullivan, vice
president-corporate communica­
tions, First Union National Bank,
Charlotte, N.C., second vice presi­
BMA’s current president, Barry
I. Deutsch, senior vice president,
Mellon Bank, Pittsburgh, will serve
on the board of directors and execu­
tive committee as immediate p a #

L ast year, over 2,000
fin an cial in stitu tio n s
lo st th eir sh irts.
Over-exposure may have
been avoided had they been
protected by the Profitstar
Asset/Liability Management
Did you lose your shirt with below
par earnings? Lower net interest margins,
higher operating costs, loan losses and
other factors have all had their impact on
the bottom line. Many opportunities
could have been taken and losing situations
avoided with proper planning through
Asset/Liability Management (ALM).
When it comes to ALM, Profitstar “’s got
you covered. It’s an ALM model designed
by bankers and CPAs that helps you for­
mulate various strategies for your bank.
For example, Profitstar allows you to
look at GAP positions, interest rate
scenarios, projected financial statements
and the bottom line. Then graph your
results or formulate “what-if” strategies
within minutes. Profitstar is designed to
Federal Reserve Bank of St. Louis

incorporate your bank’s accounts, policies
and philosophies. It is easy to operate
and runs on most popular microcomputers.
Want to know more? Just call us - toll
free - 800 - 351-9055 or in Nebraska,
800 - 642 - 0080 . Or clip and mail the enclosed
coupon. We’ll send you an informative
guide to Asset/Liability Management on
the Profitstar system. It just might help
you keep your shirt.





j Rush me more information on Asset/Liability
Management with the Profitstar system.





S tate.

Send to F.N. Bankware, Inc., 1300 First National 1
Center, Omaha, NE 68102.



A product of F.N. Bankware, Inc.

F.N. Bankware, Inc., is a subsidiary of Farmers National Bancorp,
Inc. Home office —Geneseo, Illinois.


Haiser, David L. O’Brien, John JU
Romansic and Thomas J. Pfenning,
commercial banking-operations
Bank Promotions
group; Thomas H. Lueck, corporate
administration-legal and corporate
To second vice president: Mary Jo
ROMOTIONS and other an­ elected executive vice president and
nouncements have been made Gary L. Callaway has been elected Reynoldson, trust and financial services-private banking, and Mike N.
by the following banks and banking senior vice president.
Mr. Clark had been executive vice Alex, trust and financial servicesa
Cole-Taylor Financial Group, Inc., president of Commerce Bank of St. corporate financial services.
The board also approved these ap­
Chicago: Gordon B. Benkler has Louis since 1980. He joined the
joined the bank holding company as Commerce system in 1976 and has pointments from outside the bank:
To vice president: In trust and
a senior vice president, product de­ 12 years of banking experience. He
velopment manager, it was an­ has a law degree from St. Louis Uni­ financial services, Ross A. Williams,
investment management; Michaej)
nounced recently by Frank E. Bau- versity.
der, president. Mr. Benkler pre­
Mr. Callaway had been a vice V. Smith, personal trust, and Gary
viously was with Continental Bank. president with the company since A. Langbaum, investment research.
To second vice president: In trust
He received his B.S. degree from 1983 and prior to that was president
Knox College in Galesburg, 111., and of the Commerce Bank of Joplin and financial services, Ronald J.
Chapman and Maura Murrihy, in®
his MA and MBA from the Univer­ since 1979.
vestment research; Dari J. Leman
sity of Chicago.
CharterBank of Kansas City: and Maxwell K. Hickman, TNT
Leo A. Knowles has joined the
promotions have been an­ Agricultural Services, Inc.
firm as corporate controller. He was
previously senior vice president and nounced: Michele M. Snyder to vice
controller of General Finance Corpo­ president; Michael D. Evans to
United Missouri Bank-Kansas Ci^
ration. Mr. Knowles is a CPA, has assistant vice president, and Gayle
One promotion and two officer
an undergraduate degree from
elections have been announced in
Northwestern University and a assistant cashier.
the trust department.
graduate degree from DePaul Uni­
Mark Allison was promoted t(i£
go: Directors announced the follow­ trust investment officer, with pri­
Commerce Bancshares, Inc., Kansas ing official changes:
mary responsibility for investment
City: A. Bayard Clark has been
To vice president: Arnold G. counseling and advice for the perso-


Federal Reserve Bank of St. Louis

_nal trust division. Before joining
^JMB-KC in 1982 he was affiliated
with B.C. Christopher & Co. and the
investors services department of
Farmland Industries. He holds a BA
^legree from the University of Kan­
s a s and an MBA from the Univer­
sity of Texas in 1976.
Richard A. Caspermeyer and Lin­
da M. Norris have been elected as­
s i s t a n t trust officers in the personal
trust division.
Wells Fargo & Company, San
Francisco: Paul Hazen was elected
^president and chief operating officer
% f the holding company and its ma­
jor subsidiary, Wells Fargo Bank,
N.A. Mr. Hazen, 42, has been vice
chairman of Wells Fargo since June,
-1981. Carl E. Reichardt, who has
meen president since March, 1978,
will continue to hold his other posi­
tions as chairman and CEO.

R allie Mae Seeks Bank
Charter in North Carolina
The Student Loan Marketing As­
sociation (Sallie Mae) announced re­
cently it has submitted formal appli­
c atio n to charter a new bank in
Raleigh, N.C.
In its request for a de novo char­

ter for First Capital Bank, Sallie
Mae said the new institution would
specialize in investment and liability
products related to education credit.
Initial capital would total $6 million.
Last January, in announcing the
establishment of a new business de­
velopment group, Sallie Mae indi­
cated its intention to develop new
credit plans and appropriate deli­
very systems, including the possibil­ J.F. PHERNETTON
ity of acquiring or chartering a fi­ a deterrent to banks in utilizing
nancial institution.
their micro systems to the fullest ex­
tent,’’ he explained. “Our goal,
New Cedar Rapids Firm
therefore, is to not only sell the soft­
Specializes in Software
ware, but to provide full training
Joe Phernetton, president, and and installation, as well as on-going
Robert Duff, executive vice presi­ education and support.’’
Microcrom’s staff will be directed
dent, have announced the formation
of Microcom, Inc. in Cedar Rapids, by Mr. Duff, who has had over 10
la. The company will specialize in years of experience in sales and mar­
microcomputer software for the fi­ keting to the financial industry.
“Our ability to represent multiple
nancial industry.
Mr. Phernetton, formerly presi­ software developers enables us to
dent of Banks of Iowa Computer market the best products avail­
Services and most recently ex­ able,’’ said Mr. Duff.
Mr. Duff was associated previous­
ecutive vice president of First Inter­
state Bank of Denver, said the com­ ly with Deluxe Check Printers, Inc.,
pany was established to provide bet­ for 10 years, serving Nebraska cus­
ter microcomputer software to the tomers five years before moving to
financial community. “The lack of Iowa, where he worked for Deluxe
total commitment by suppliers in to­ the past five years. He is a graduate
day’s software market has long been of Buena Vista College, Storm Lake.

Drovers Bank has ju st made discount
brokerage available to its correspondent bank
customers. This means fees generated for you,
and substantial savings for your customers.
And Drovers specialists can advise you how
to market this new and valuable service in
your area.
Discount brokerage: another reason
Drovers is one of the fastest growing
correspondent banks in the
midwest. Call John Crotty or Kathy Hardy at
1-800-621-8991. In Illinois, 1-800-572-2498.
Remember, fees for you, savings for your
customer. And it all starts with a phone call
to Drovers.
Federal Reserve Bank of St. Louis

KSDrovers Bank

of Chicago

47th & Ashland Avenue, Chicago, IL 60609 • 1-312-927-7000.


University, they inspected research
plots and attended crop workshop™
on simulated hail research.
Executive meetings of the Na­
tional Crop Insurance Association,
the Crop Hail Insurance A c tu a ri^
Association, and the America™
Association of Crop Insurers were
held in conjunction with the work­
Workshops at the convention ir ^
eluded an overview of how the huge
United States crop program is ad­
ministered. The handling of hail in­
surance applications, adjusting and
processing of losses, policy cover^
age, record-keeping, compilation of
AFTER attending workshop sessions like the one above, visiting members of the Interna­ rating statistics, and other informa­
tional Hail Insurers’ Assn, toured research plots and Red River Valley farms near Fargo, tion related to hail insurance was ex­
plained in detail by members of
Dawson’s staff and crop insurance
Jim Dawson Hosts W orld Hail Insurers experts
from throughout the United
T WAS a whirlwind week for 17
The IAHI members, some accom­ States.
During their stay in Fargo, the in­
members of the International As­ panied by their wives, were hosted
sociation of Hail Insurers who came by Jim Dawson, president of Daw­ ternational visitors were entertained
to Fargo, N.D., for a crop insurance son Hail Insurance Co., Fargo, at a round of luncheons and dinners®
which serves hundreds of banks in and took part in swimming, boating
workshop, June 15-22.
and social events — including a
Besides the United States, coun­ the upper midwest.
Among many other activities, the Hawaiian luau and a powwow with
tries represented at the meeting
were Canada, Sweden, France, Swit­ group toured several of the Red American Indian tribes from five
zerland, Italy, the Netherlands, River Valley’s largest, most modern states.
Australia, England and Germany.
farms and, at North Dakota State
eign delegation commented favor­
ably on the friendliness and infor­
mality of the people in the Red River
Valley and were impressed by th #
area’s flatness, rich black soil and
the size of the farms.
B usiness Credit
Mr. Dawson is the only American
A n a f filia te of
ever to serve on the board of direc­
tors of the International Associatio#
of Hail Insurers. The organization,
-r '.-r
headquartered in Zurich, Switzer­
land, represents 140 insurance com­
panies in 25 nations.
Mr. Dawson said he will atten<P
this October’s IAHI board meeting
in Marrakesh, Morroco, and a num­
ber of Americans will attend the
. AN**' ' **■ group’s next International Hail Con- '
gress, to be held during Octobe™
",'r _. O'‘'
1985 in Amsterdam, Netherlands.
f 7;


..i n


expect ns to
provide financing from a
different perspective. We put
lendable resources to work quickly by
establishing the value of a customer’s assets
(tangible and intangible) and structuring a flexible
loan package. We’ll lend alone or in participation with you.
Remember our name.

Dial 1-800-BARCLAY.
for FRASERBanker, August, 1984
Federal Reserve Bank of St. Louis

InnerLine, BMA Announce ®
‘Bank Marketing Exchange’
InnerLine, the first comprehen­
sive computer-based management
support system for the financial ser^
vices industry, has joined forces
with the Chicago-based Bank Mar­
keting Association to launch “Mar­
keting Information Exchange,” a
new service that will provide In n ere
Line subscribers with an open forum

for questions pertaining to bank
Accessible via a dial-up terminal,
Marketing Information Exchange
enables users to electronically post
questions or comments relating to
ilny aspect of bank marketing which
can then be fielded by any of InnerLine’s 2,000 plus subscribers. In­
quiries also may be addressed direct­
o r to BMA personnel.

Northern Trust Plans
Trust Co. in Winnetka
Northern Trust Corporation has
{pled applications with the Illinois
Commissioner of Banks and the
Federal Reserve to establish a subsi­
diary, independent de novo trust
company, The Northern Trust Com|||iany of Illinois, at 62 Green Bay
Road in Winnetka, 111.
John C. Goodall, Jr., a vice presi­
dent in trust and financial services
at The Northern Trust Company in
Chicago, will be president of the new
trust company.

Two Missouri H.C.
Leaders Plan Merger
“ Donald N. Brandin, chairman and
chief executive officer of Boatmen’s
Bancshares, Inc., St. Louis, and
Gorden E. Wells, chairman and chief
executive officer of CharterCorp,
K a n sa s City, jointly announced last
month an agreement in principle
providing for the acquisition of
CharterCorp by Boatmen’s Banc^h ares, Inc. via statutory merger.
The merger would create the larg­
est commercial banking organiza­
tion in Missouri with 45 subsidiary
banks, operating in 99 locations,
(g|vith total assets in excess of $6 bil­

FDIC Adopts Reporting
Rule on Brokered Deposits

The FDIC has adopted an interim
final regulation mandating monthly
reports on excess brokered deposits
in FDIC-insured banks. The interim
rule is being published for 60 days
p u b lic comment, but the first re­
ports must be filed by August 10 for
brokered deposit totals at the end of
The new rule requires monthly
Reports from banks with combined
brokered deposits and fully insured
deposits of financial institutions in
excess of either the bank’s total
^capital and reserves, or five percent
® f the bank’s total deposits.
Federal Reserve Bank of St. Louis

You don't have to be a big bank to give your
customers big bank services—like estate planning.
Now, First National Bank can bring it to you.
That's right. At First National, our trust depart­
ment is full of estate planning experts. Our correspon­
dent bank officers—Bill Manring, Jeff Harrison, Bob
Holt or Mark Thompson—will be glad to set up a
group seminar or an individual consultation with you.
So give us a call. With the help of First National,
you can offer big bank estate planning, too. No matter
what size you are.

First National Bank

St. Joseph, MO 64502 • Call: (816) 279-2721
Affiliate of First Midwest Bancorp., Inc.
Member FDIC

Northwestern Banker, August, 1984


W hen you're fighting for profit^
United M issouri's your m uscle.
w * ut all the strength of United
___ I Missouri’s Correspondent
Banking Department to work for
your bank.
You’ll never again waste your
precious time tracking down
the latest changes in federal
regulations. We keep up with the
regulations and research for you.
You’ll never again call bank after
bank to find the services and
systems you need to keep your

bank running smoothly. We offer
them all.
United Missouri’s Correspondent
Bankers have the answers to your
questions. If your bank or your
customers have a need, w ell do
our best to fill it.
All in all, United Missouri just
might be your best ally in the battle
for profits. Discover how. Call your
United Missouri Correspondent
Banker today.


of Kansas City, n.a.

Member FDIC

United we grow. Together.
10th and Grand • P.O. Box 226
Kansas City, Missouri 64141 (816) 556-7900

for FRASER Banker, August, 1984
Federal Reserve Bank of St. Louis


•How bankers rate the examiners!
A N orthwestern Banker Survey

UST OVER one-half (51%) of all
bankers who responded to a re­
N orthwestern B anker

v e y , “Rating the Examiners,” gave
state and federal examiners high rat­
ings on their job skills. The survey
was conducted among banks in 10
upper midwest and mountain states.
# That endorsement of job perfor­
mance by examiners during the
most difficult period for banks in
decades is emphasized even further
when it is noted that almost threefo u rth s of responding bankers rated
examiners in the upper half of the
scale. They were asked to rate their
examiners on a scale of 1 to 10 , with
10 being the best rating, and 51%
%ave them a rating of 8 , 9 or 10, and
78% rated them from 6 to 10.
(Charts No. 6 and 6 A.)
A further analysis by type of ex­
aminer shows that for all replies re­
ceived, state examiners got the high­
est marks, with national examiners
second and FDIC ranked third. Na­
tional banks accounted for 22 % of
the survey replies and state char­
te r e d banks accounted for 78% of
the replies.
In their rating of examiners on
the 1 to 10 scale, 54% of nationally
ch artered banks rated their exami­
n e r s as 8 , 9 or 10. State chartered
banks rated 56% of state examiners
and 45% of FDIC examiners in the
8 , 9 or 10 bracket. (Chart No. 6 .)
WVRen the ratings are expanded to
Cnclude 6 to 10 on the scale, national
examiners received 82% of the votes
of national banks, the FDIC had
69% of its examiners ranked in the
Ripper half bracket, and state exami­
n ers trailed at 66 %.
The problems with agricultural
loans in the midwest have been well
documented and publicized. Weak
^n ark et prices, continuing high input
costs, high inflation of several years
ago followed by rapid dis-inflation
that left a legacy of high interest
rates, declining land values, weather
^disasters, and the Carter Adminis­
tration grain embargo against Rus­
Federal Reserve Bank of St. Louis

sia that sparked a decline in exports,
all have combined to trap farmers in
a chain of events that is forcing
many from the land, bringing others
to the edge of bankruptcy and allow­
ing very few to even make a decent
living. All of these circumstances
bear heavily on ag-oriented rural
banks who are sustaining the
highest write-offs since the Depres­
sion of the early 1930s.
While rural and city banks alike
are struggling to cope with non-per­
forming and delayed payment loans,
customer bankruptcies, and even
bank failures, the examiners must
assume the role of the legendary
messenger with bad news. However,
throughout this survey it is evident
that most bankers recognize the
tough job examiners face. This is
not to say that bankers do not have
criticism of their examiners. Some
severe complaints and barbed re­
marks are contained in comments
that were entered on some of the re­
turned questionnaires.
One Nebraska banker who has
both national and state chartered
banks said, “ I really like having the
examiners come in our banks be­
cause they bring a fresh, outside
viewpoint to the numbers and situa­
tions that we are so close to. They
give me a professional outside look
at how well we’re doing—not just on
Chart 1
“ Has your bank been under any criticism by regu­
lators in the past 18 months in regard to agri
loans? No____
Very Critical


our own but compared to our peer
An Iowa banker expressed similar
feelings when he voiced concern that
his banks had not been examined in
nearly two years. “We’re paying for
these exams and I want their impar­
tial assessment of how things are in­
side our banks.”
Here are the responses to indivi­
dual questions, along with a few of
the comments offered.
Question 1
Has your bank been under any cri­
ticism by regulators in the past 18
months in regard to agri loans?
No _____ Mildly _____ Very
Chart No. 1 shows that among all
respondents, 48% say they have re­
ceived mild criticism on ag loans and
21 % have received “Very Critical”
write-ups on their ag loans, for a
total of 69% criticism. The other
31% of respondents said they had
not been criticized on ag loans, and
some of those banks make few or no
ag loans.
Iowa led all 10 states with a total
of 75% of ag loans criticized, but
most noticeable was its 23.6% who
said they had received “Very Criti­
cal” comments from examiners. The
latter category compares to 8.3% for
Nebraska, 15% for Minnesota, 30%
for South Dakota and 42% for North
Question 1A
Do you feel this criticism was:
Justified_____ Unjustified_____
Chart No. 1A shows that 59%
acknowledge that the criticism out­
lined in Question 1 above was “Jus­
tified,” while only 10 % said it was
“Unjustified,” and 31% withheld
Iowa bankers gave far greater sup­
port and endorsement to their state
banking department than any of the
other states. In Iowa, for example,
67% of the responding CEOs agreed
with examiner criticism of ag loans
Northwestern Banker, August, 1984

Chart No. 1A
“ Do you feel this criticism was: Justified, Un­


by saying it was “Justified.” There
were 11% in Iowa who stated the
criticism was “Unjustifed,” and
22% of Iowa respondents chose not
to complete this statement. In Ne­
braska, 62% said the criticism was
“Justified,” only 8 % tabbed it as
“Unjustified,” and 30% did not ans­
wer the question. The vote in Minne­
sota was 45% “Justified,” while
12 % said “Unjustified,” and 43%
did not give an answer. Other states
were at or below these percentage
levels for “Justified.”
Typical of comments from those
who said criticism was “Justified”
was this:
Iowa (state): “The farm economy
has been in a downturn the past few
years and our bank has many lines
that are becoming marginal credit
risks. Our classification is a reflec­
tion of the economy in general.”
From bankers who said criticism
was “Unjustified,” here are a few
Iowa (state): “On several lines
that have had problems in the past,
but are now adequately secured by
collateral, or have sound co-signers
and have met at least some reduc­
tion of principal, we feel prejudice
has been shown by 100 % classifica­
tion of the whole line. Statements
were made such as get rid of them,
sell them out, or as long as they are
on your books they will be classi­
fied.” (This concerned state exami­
ners, who were ranked only 1 on the
1 to 10 scale, with FDIC an 8 .)
Eastern Iowa: (Unjustified) “Be­
cause most of these lines were writ­
ten for the first time just because of
a bad crop year in 1983. These are
long time lines of credit in our bank
and most have good equity in real
estate. Examiners doji’t understand
ag lines, in my opinion.” (State exBanker, August, 1984
Federal Reserve Bank of St. Louis

aminers ranked 3 on the scale and
FDIC as 8 .)
Nebraska (state): “Bank loan offi­
cers were given no opportunity to in­
ject their thoughts on loan lines. A
list of classifications was handed to
us prior to a loan review. Guaran­
teed lines of credit were classified
‘substandard’ with no consideration
to the guarantees, which were ade­
quate guarantees.”
Nebraska (national): “They give
no consideration to collateral which
controls loss—obviously, cash flow
is not great last few years.”
Minnesota (national): “Examina­
tion criteria has changed so dramati­
cally in the past two years. We have
not had previous criticism of ag
Wisconsin (state): “FDIC exam in
April, 1983 missed documentation
on meaning on one large farm loan
which resulted in classification.
State exam six months later did not
classify the loan.”
Question 2
So far as agri lending is con­
cerned, do you feel your bank exami­
ners are: Adequately Trained_____
Inadequately Trained_____
Despite the criticism of examiners
as noted above, 70% of bankers re­
sponding said they feel their exami­
ners are “Adequately Trained” in ag
lending, 24% say they are “Inade­
quately Trained,” 1% gave a quali­
fied approval and 5% gave no ans­
wer. (Chart No. 2.)
Again, the highest mark given for
being “Adequately Trained” in ag
lending was from Iowa bankers. De­
spite a sometimes critical stance of
their examiners, they gave a vote of
85% to them for being “Adequately
Trained.” The vote for state exami­
ners was 87% and for national exam­
iners 71%. Their total vote and the
one for state examiners was the
highest for any of the states report­
By comparison, Nebraska bankers
gave a 64% approval to examiners
for being “Adequately Trained,”
but only 54% gave this approval to
state examiners, while 83% of na­
tional banks did so. The reverse was
true in Minnesota where state exam­
iners received a 67% endorsement
for being “Adequately Trained,”
but national examiners rated only
41% for a state total of 57%. In Min­
nesota, 47% of national banks re­
sponding said they think their na­
tional examiners are “ Inadequately

The voting took the same trend im
the Dakotas, which are in the s a m "
national examing area as Minneso­
ta. In South Dakota, 83% of re­
sponding state banks endorsed their
examiners as “Adequately Trained,’L
but that figure dropped to 60% for
national banks, and 40% stated they
feel their national examiners are
“Inadequately Trained.” In North
Dakota, the vote was 75% favoring
state examiners as “Adequately
Trained,” while all responding said
their national examiners are “In­
adequately Trained.” One national
banker voted both ways, stipulating
that the senior examiner in charge
was very competent but his new
staff was untrained.
Chart No. 2


“ So far as agri lending is concerned, do you feel
your bank examiners are: Adequately Trained, In­
adequately Trained?”




Comment received on this ques­
tion was typical. Most who w er#
satisfied with the training of their
examiners merely checked the
appropriate space. Those who had
strong feelings about their lack of
training took time to explain why®
although a larger number than usual
who were satisfied did take time to
write a short message expressing
their support, such as this note fronr
a northeast Nebraska state char®
tered bank: “We had a very good
group of state examiners. They were
tougher than usual but very recep­
tive to talk about loans that are a lit^
tie heavy. They know we have hacr
tough times and talked about them,
but were very lenient in setting up
loans on the report. They were very
justified in what they did and workecL.
well with our bank.”
Here is a random sample of com­
ment from dissatisfied bankers:
Nebraska (state, panhandle): “Not
strict enough; not like they were i |||
the 30s, 40s, or 50s.”

Nebraska (state and FDIC): “I
• :’eel that examiners today, who are
not bankers, are merely auditors.
They give consideration purely to
the dollars and cents shown on a fi­
nancial statem ent. Performance
" e e m s to have meant nothing in one
case. Debt reduction for four years
was shown on one line and the line
was classified ‘substandard’ because
^ h e bank’s short-term portion had
niot been decreased. Examination
was performed during the high point
of the borrowing season, with loans
at a maximum and ratios at their
.«.worst. This is row-crop farm area,
wvith little or no livestock to create
current assets.”
Minnesota (national bank that
checked Adequately Trained and
^also had received Very Critical re­
view of ag loans that was said to be
Unjustified): Top echelons have dic­
tated their actions on classifications
and if they didn’t comply, they were
(Urgent back.”
Minnesota (national): “Most of
the young ones border on incompe­
tency. ’’
Minnesota (national): “Examiners
^seem to be putting far less emphasis
on the credit portion of the examina­
tion. Since this is their posture, it is
obvious that they are not training
the personnel in this area.”
# Illinois (state): “They don’t know
that tractors don’t have certificates
of title. They do not understand
UCC. They are more interested in
technical exceptions than the under­
laying strengths and need of the agri­
Wisconsin (state): “I have always
contended that every examination
team, whether state or FDIC, should
•h av e a representative on their team
with a sound training in agriculture.
This means formal education in an
Agricultural College and at least
five years of ag lending in a lending
•institution. With the size of the
loans in our ag community today
and the damage a classified loan can
do to a bank today, we would like to
see a real expert in farm manage•m e n t and training on the examiner
Iowa (state, eastern Iowa): “The
state examiners have a good under­
s ta n d in g of the farm borrowers and
the senior examiner has an extensive
agricultural background. The junior
examiners have good analytical
skills but lack experience. The FDIC
^examiners don’t offer a lot and
only look at our watch list.”
Federal Reserve Bank of St. Louis

Iowa (national—southern Iowa):
“Each year we see a new crew, fresh
from college. This year, the exami­
ner who led the loan review grew up
50 miles from New York City. Most
of the good examiners have left to go
to work for banks, etc.; the duds are
left. In seven years I have seen only
one person more than once.”
Question 3
Has your bank been under any cri­
ticism by regulators in the past 18
months in regard to other than agri
loans? N o_____ Mildly______Very
Critical_____ .
On advice of bankers who helped
prepare the survey questions, this
question was asked to determine if
there is any distinct difference be­
tween the way examiners are look­
ing at ag loans and other loans. The
tabulated results show there is not a
great deal of difference, although
every state reports slightly smaller
numbers of banks having received
“Mild” or “Very Critical” reviews
on loans other than for ag purposes.
Chart No. 3
“ Has your bank been under any criticism by regu­
lators in the past 18 months in regards to other
than ag loans?”




Chart No. 3 shows that overall,
52% of responding banks said they
had received “Mild” criticism on
other-than-ag loans, and 9% had
“Critical” comments. This com­
pares to 48% “Mild” and 21 %
“Very Critical” on ag loans. Also,
39% of respondents said they had no
criticism on other-than-ag loans,
compared to 31% no criticism on ag
Also, banker judgment as to
whether this criticism is “Justified”
or “Unjustified” is fairly close to
that reported above on ag criticism.
On other-than-ag loans (Chart No.
3A), 53% of respondents said it was
“Justified,” 6 % said it was “Unjus­
tified,” and 41% expressed no opi­
nion on the subject. For ag loans

Chart No. 3A
“ Do you feel this criticism was: Justified, Un­


those figures were 59% “Justified,”
11% “Unjustified,” and 30% no
Question 4
Do you think your bank exami­
ners have understood the nature of
current farm loan problems and
have used “forbearance” in assess­
ing these loans? Yes _____ No
Chart No. 4 reports 60% of re­
spondents said “Yes,” 30% said
“No,” and 10% did not vote. Na­
tional bank examiners rated “No”
on this question far more frequently
than state examiners. Overall, the
“Yes” votes ranged from 53%
(South Dakota) to 67% (North Da­
kota) for all states, with the excep­
tion of Illinois where examiners
received only a 40% “Yes” vote.
Iowa, Nebraska and Minnesota
were 61%, 61% and 58%, respective­
ly. In each of these states, the na­
tional examiners got more “No”
votes than state examiners—Iowa
41%, Nebraska 33%, Minnesota
A number of bankers who voted
“Yes” on this question wrote a brief
comment in a very similar vein to
this one received from a Nebraska
banker: “How can my bank be ex­
amined honestly according to neces­
sary examination standards that
will assure my customers and stock­
holders of its safety and soundness,
and still exercise ‘forbearance’ in the
sense of overlooking what are truly
classified loans? I know I have a few
problems with some selected farm
customers and so do those custo­
mers. We’re trying to set up plans
for them to work out of it. If, in the
meantime, those loans technically
must be classified, then that reflects
the true condition at the time of the
exam. I guess it all depends on what
the definition is for the term ‘forNorthwestern Banker, August, 1984

bearance.’ Our examiners under­
stand our problem and the problem
of the individual customers. I want
their independent analysis of the
way things stand.”
Similarly, an experienced Iowa
banker (state charter), running a $30
million bank stated: “We were ex­
amined a month ago. We have a half
dozen ag lines that we have set up
‘work-out’ programs for. The exami­
ners accepted our programs and did
not request any loans to be charged
off.” This sentiment is echoed by
another Iowa president of an $8 mil­
lion state bank: “We are not kidding
anybody but ourselves if we dismiss
the examiners’ criticism. They are
just trying to help us run a better
bank.” And another Iowa president
says, “I hope they haven’t been too
forgiving. They must examine and
classify loans as they are, regardless
of the economy. They aren’t being
paid to bet on the economy.”

to know they were boss and they
were being told from above to crack
down and be tough and that we bet­
ter abide by what they told us.”
The president of a Nebraska $12
million bank stated: “This bank
functioned as most other financial
institutions as an asset lender.
When it suddenly became obvious
that we needed to cash flow every
loan, many loan customers were
already leveraged. Only with time
will some of their ratios become
favorable. Sad but true, many of
these farmers will not survive the
high interest rates which we passed
through and are still with us at a les­
ser degree. It was a lender-created
problem, aided by easily obtained
credit from any sector, whether
Federal Land Bank, Production
Credit Association, Farmers Home
Administration, the private in­
surance lending sector, machinery
companies—we all contributed to
easy credit which caught up when
Chart No. 4
inflation stopped and interest rates
“ Do you think that your bank examiners have rose. We can change our lending
understood the nature of current farm loan prob­
lems and have used ‘forbearance’ in assessing practices but it takes time for the
these loans?”
farmers to correct the practice of
too. ________________
loan leveraging. I don’t feel exami­
ners have any intention of working
eo. ..
with the banks to save their custo­
mers, but by heavy criticism will
force banks to take drastic steps of
foreclosure and loan restrictions to
clean up their classified paper.
Nebraska (national): “We are on
top of our credits; workout situa­
tions were already in place, but no
credit given to us. They (examiners)
60 %
30 %
are not farm specialists as they be­
lieve they are.”
The rest of the critical comments
On the other side of the question, were in the same vein as the above,
a southern Iowa president of a state centering primarily on two points: 1.
bank replied: “Examiners seem to Their examiners have little know­
question our best judgments as to ledge and/or interest in the ag busi­
values, and whether or not cash flow ness. 2 . Collateral no longer has a
has been properly completed. Again, place in lending—all ag loans geared
if they would use some ‘forbearance’ to cash flow and if cash flow doesn’t
in allowing us time to restructure pay them off in one year, they’re
and await, for instance, disaster classified.
funds instead of making us close
Question 5
everyone out it would be of great
Do you feel your examinations
have been more severe since the
Also, an Iowa president of a Penn Square failure? Y es_____ No
northwest state bank said: “The last
exam we had there was a definite
Only one-third (34%) of respon­
‘tough-guy’ approach and the opi­ dents said “Yes” to this question,
nion that ‘I am the examiner and I while 61% said “No,” and only 5%
know what I say goes.’ Very little failed to answer the question (Chart
cooperation regarding listening to No. 5). National banks voted more
our side of the loan situation. We strongly in the “Yes” column, indi­
had a display of egotism unmatched cating that national policies ap­
in recent years and they wanted us parently toughened nationwide after
Banker, August, 1984
Federal Reserve Bank of St. Louis

Chart No. 5


“ Do you feel your examinations have been more
severe since the Penn Square failure?”




Penn Square; whereas, state policies
were set individually.
Question 6
Have you ever been contacted in
advance of an examination by a
bank examiner? Yes _____ No
A number of national banks toolP
time to note here that it is standard
procedure for national examiners to
call them in advance and ask that
certain records or documents be
made available for inspection. Othei®
than that, there was no advance con­
tact reported.
Question 7
Have you or your board felt pres£
sure in any way from an examiner
looking either for employment or
wanting to buy your bank? Yes
_____ N o ______
A handful had job applications oc#
casionally from examiners tired of
being on the road—none at the time
of the examination, and no applica­
tion had any connection with an ex­
am or treatment of a report.
Question 8
What do you like most and what
do you like least about your bank ex­
This type of open-ended question,
requested by the bankers who helped
draw up the questionnaire, always
will draw much comment, and pro­
vides an opportunity to blow off^
steam. It should be noted again that
many bankers took the time to write
complimentary and supportive com­
ments about the job their examiners
are doing. Their trend becomes re-|j>
petitive, but it is well to point out
here that a number of bankers took
great pains to state that they had
been treated very professionally,
they felt the examiners were well^
educated and trained, understood


„“We appreciate suggestions for improving our operations and
our profits. We do not like the ‘adversary’ relationship.”
the needs and problems of banking,
and offered a fresh, outside look that
™s beneficial to managing the bank.
In addition, many noted, they can
offer comparisons with peer banks
without revealing confidential infor„mation, and add to that suggestions
wthat come from their visits with
other bankers who might have an
improved way of doing or approach­
ing a job. Only a few of the “like
^ n o s t” and “like least” comments
are reported here to give a cross­
sampling of replies:
Montana (state): “Help to spot
weakness in maintaining compliance
<§with various regulations. Sugges­
tions as to completeness of docu­
mentation. Spotting bad habits or
carelessness in various areas.”
(Same bank—like least): “Unwilling#ness to consider differences in opera­
tions of large banks and small com­
munity banks.”
Wisconsin (state): “ Keeping
abreast of current legislative actions
#in regard to bank regulations. Cur­
rent and unbiased opinion for our
loan portfolio. Keep employees in
check for balancing of accounts.
(Like least) Pressure. Use of audits
•outside or otherwise.”
North Dakota (state): “Examina­
tions are helpful. They keep manage­
ment abreast of requirements and
one can always learn something.
•O thers can see our faults better than
we can. (Like least) I would prefer
one type of examination (FDIC) by
good, qualified people. Why pay two
different regulators?”
• South Dakota (national): (Like
most) “When the exam is over and
they all leave. I used to like exami­
nations in the past and could get
some questions answered regarding
•som e regulators. We generally knew
who our classified loans were, so far
as I was concerned. I welcomed the
examiners and almost always bene^fitted from their visits. Those
^statem ents are not true today. (Like
least) The seemingly growing atti­
tude that we are a bunch of ignorant
people working with even more ig^norant customers. A very small per­
c e n ta g e of these examiners have
ever faced any financial hardship
or the real world. Most of them have
taken these jobs right out of college,
0 make a good salary, and don’t have
to face the consequences when they
Federal Reserve Bank of St. Louis

make a mistake in judgment.”
(Rated national examiners 4 on the
scale of 1 to 10 .)
South Dakota (state): “They will
listen to our reasoning in staying
with a particular customer. Some of
them give the impression they are
here to help. (Like least) Once they
have made up their mind to criticize
a loan, all the talking in the world
isn’t going to change their mind.
They are becoming IRS agents and
spend too much time going over our
tax situation rather than our loans.”
Illinois (state): “We like them best
when they try not to interfere any
more than possible in our daily
routine. After all, we can’t just shut
down the bank and devote all of our
time to them. We appreciate sugges­
tions for improving our operations
and profits. (Like least) We do not
like the ‘adversary’ relationship that
often exists. We do not like it when
they put pressure on us to do extra
things that are not cost effective.
We need to operate as ‘lean’ as pos­
sible and these extra procedures,
etc., require more labor and it’s not
the kind of labor you can get by pay­
ing the minimum wage!”
Minnesota (national): “ I think
they are trying hard but examina­
tion staffs are generally too young
and inexperienced to handle today’s
complex problems. Most are just out
of school and come from metropoli­
tan settings. (Like least) The im­
mense amount of time used by both
our people in preparing information
for exams, and the amount of time
they spend in our bank.”
Minnesota (national): “They have
been courteous, polite, helpful and
fair. Some give you the feeling you
are hiding something, or they need
to find an area where you aren’t do­
ing a good job to complete their re­
One frustrated Minnesota (na­
tional) banker, who rated his exami­
ners 2 on the scale, answered this
question about “like most” and
“ like
l e a s t ’’
m erely
stating-“nothing” to the first point
and “everything” to the second.
Another, who also referred to the
former good exams the bank had
been accustomed to having, said na­
tional examiners today “Have a lack
of understanding of local situations,
especially agriculture!"

Emphasis among so many Minne­
sota national bankers was on the
fact that national examiners there
stress strict adherence to compli­
ance rules, but “pay too little atten­
tion to the quality of the loan port­
folio,” as one $35 million bank presi­
dent noted. “This should be their
major emphasis, since this is where
most small banks can get hurt the
most. Also, some examiners have be­
come very arrogant.”
Frustration hit this Minnesota
(state) banker, also, when he wrote:
“All they know is theory. They have
never been on the other side of the
desk. Don’t understand that we
work from 8 a.m. to 5 p.m., evenings
and weekends and sometimes it
takes several hours just to go
through mail. They complain about
our files, which could use some
work, but when they leave, our notes
are like a tornado hit them. Cocki­
ness and inexperience of new young
examiners. Having to tell new ex­
aminers the same things year after
year. Tell you one thing and write up
another. Verbal and written reports
don’t agree. Seems like they have to
find something wrong, even if there
isn’t anything.” (State examiners
rated 4, FDIC examiners 6 .)
Nebraska (western, national):
“Seem to be well qualified, know­
ledgeable and, to a degree, helpful
with interpreting regulations. The
senior examiner is very egotistical. ’’
Nebraska (state): “Overall, very
fair on recent exams. One very un­
fair FDIC exam a couple of years
ago. They play God. Have a lack of
personal knowledge of customer but,
in turn, their objectiveness is some­
times helpful.”
Nebraska (state, central): “Loan
portfolio reviews with both state
and FDIC are usually helpful, but I
find they don’t always have any
solution. The FDIC is too picky
about Truth-in-Lending compliance.
I feel they should have better things
to do than ‘nit-pick.’ Some exami­
ners (particularly FDIC) don’t have
much personality and a few are a lit­
tle ‘cocky.’ ”
Nebraska (state, northeast):
“Their opinoin, whether I agree or
not. A new light on our operations
and, perhaps, some sound advice.
(Like least) The time they spend
drinking coffee and smoking. Get
Northwestern Banker, August, 1984


the facts and get out of the bank
building. Do their summary some­
where else.”
Iowa (national, southwest): “Re­
peat examiners (one in particular)
seem to have a vindictive attitude.”
Iowa (national, southern): (Like
most) “When they leave! In years
past they would help improve the
operation with new ideas, things you
did right. We continue to be amazed
at the 20/20 hindsight of the exami­
ners. The final collapse of farmers
will be caused by examiners. When
exams are done they seem to under­
stand the problems. When the writ­
ten report comes, you wonder why
the doors are still open.”
Iowa (state, eastern): “State ex­
aminers are very competent and un­
derstanding. They don’t overlook
regulations, but construe them in a
reasonable and practical manner
without neglecting the ultimate in­
tent. In 30 years, I have never felt a
state examiner in charge was not
very competent, although I don’t
always agree with them. FDIC ex­
aminers are mostly capable, but
they get hyper about their regula­
tions—often, they can’t explain fully
to bank management. Particularly,
the compliance people seem to think
they wrote the regs, without any
reasonable application. The FDIC
people are trying to implement un­
reasonable regs, when they know it.
I have a strong negative criticism on
a recent change of pace where the
state is sending a special examiner
for the trust department. I have
never received such a scathing ver­
bally as last time when, basically,
they didn’t like my handwritten re­
cords. They thought they should
walk in the front door and in 10 min­
utes understand every detail of our
small trust department. The written
report was milder in criticism.”
Iowa (state, northern): “State ex­
aminers do an excellent, thorough
job. Federal Reserve are thorough
but too lenient. No point to having
an exam if the examiners don’t point
out all the actual and potential
credit problems. We’ll prefer a
‘tough’ examiner over a lenient one
any time. Fed examiners don’t dig
deep enough on our weak credits. I
have always felt the Fed examiners
were lenient because they were
afraid we would drop out of their
Iowa (state, northern): “Many are
not qualified to pass judgment on
credit. FDIC can nit pick you to
for FRASERBanker, August, 1984
Federal Reserve Bank of St. Louis

Chart No. 6
“ On a scale of 1-10 (10 is best rating), how would
you rate your examiners?” (This chart reflects the
percentage of bankers placing their examiners 8, 9
or 10 on the scale.)

Chart No. 6A


death and harass you about some­
thing that does not amount to a
damn. Many FDIC examiners would
not know a bad loan if they would
meet it in the middle of the street.”
Iowa (state, northwest): “ I like,
more than anything else, when they
leave. I really do not feel it is a privi­
lege any longer to have them walk in
the front door as it used to be, as
they are now more nosey, doing a
job for the sake of a job, downright
insulting in assessing our loan judg­
ment, and sarcastic in loan reviews.
When a loan review starts at 9 a.m.
and lasts until 7:30 that evening,
without lunch or dinner breaks, and
you don’t have anything worse than
substandard, I feel there is some­
thing wrong with the exam process!
We are not a large bank by any
means and have not had large loan
losses and do not expect to have
large loan losses, yet the last state
exam left us feeling almost criminal
for loaning money to some of our
best customers in our eyes and
worst in the examiner’s eyes.”
(State rated 2 on 1 to 10 scale and
FDIC 7.)
Iowa (state, central): “Both FDIC
and state are considered thorough
and competent. It is felt that the
FDIC examiners waste time, stay in
the bank longer than necessary and
they appear cold. All examiners
could give a little more credit to col­
lateral. Usually, examiner will clas­
sify all of a loan when, in reality,
only a portion of it should have been
classified.” (State rated 10, FDIC 7.)
There were many other com­
ments, both favorable and unfavor­
able, from all states, but the com­
ments presented give an adequate
Question 9
On a scale of 1-10 (10 is the best


(This chart reflects the percentage of bankers
placing their examiners in the upper half of the
scale; i.e., 6, 7, 8, 9 or 10.)



rating), how would you rate your ex­
As reported at the beginning o ^
this survey report, and as shown in
Chart No. 6, 51% of respondents
gave examiners a rating of 8 , 9 or 10.
Segregated by type of examiner
(again, Chart No. 6 ), state and FD I(^
examiners got 56% and 45% votes
respectively for 8 s, 9s, or 10s, while
national examiners got 54% in the
top three numbers.
Chart No. 6A expands the v o tin g
to include the upper half of the scale;
i.e., from 6 to 10. State chartered
bankers put 66 % of their examiners
in that bracket and FDIC examiners
69%, while national banks ran k ed
82% of their examiners in the upper
half. On average, 74% of all exami­
ners were rated in the upper half
The highest marks given by indi®
vidual state bankers were in Iowa,
where state-chartered banks rated
83% of their examiners in the 6 to 10
bracket, 81% of their FDIC exami­
ners in the same bracket and 65% o r
their national examiners in the same
group. In the very top bracket of 8
to 10 ratings, Iowa again led all
states in rating their state exami^.
ners by putting 67% in the top thre ®
numbers, 52% of FDIC examiners in
that group, but national examiners
only 47%.
Nebraska bankers put 64% o ||
their state examiners in the top five
numbers, 81% of FDIC examiners
and 75% of national examiners. In
the 8 to 10 numbers in Nebraska,
the voting was 41% state, 489W
FDIC and 58% national.
Minnesota bankers were very sim­
ilar, rating 68 % of state examiners
in the 6 to 10 bracket, 79% of FDIC,
but only 56% of national exam iner^
in the top five numbers.


Brandt, Inc., Watertown, Wis.:
^ J o h n Dullighan has been advanced
to executive vice president and chief
operating officer of the company.
Previously he was vice president/
general manager. Since joining the
H company in 1977, Mr. Dullighan has
successfully developed the Currency
Systems Division to a major operat­
ing entity. A native of Liverpool,
England, Mr. Dullighan was formeri|||ly general manager of Harowe Sys­
tems, Inc., Westchester, Pa.
Collateral Control Corp., St. Paul.:
Mike Williams has been named to
^ the newly crew ated position of
vice presidentleasing services
in the corporate
^ office. He has
more than 13
years of leasing
experience, most
re c e n tly w ith
£ North American
Financial Corp.,
where he was credit manager in
charge of credit and operations/documentation functions. Prior to that
<g) he was regional credit manager and
assistant vice president with IFG
Leasing in the midwestern region.
John K. Cecil has joined Collateral
Control as a marketing represeni|] tative for the Chicago/St. Paul
region in Indianapolis. Most recent­
ly he was an assistant manager at
American Fletcher National Bank in
Employers Mutual Casualty Co.,
Des Moines: Ray Davis has been
promoted to assistant vice president
of Employers affiliated companies,
f according to Chairman Robb B. Kel­
ley. Mr. Davis had been assistant
secretary since 1981.
Other promotions include: E.H.
Creese to vice president; Jack Van
4DSloun to assistant treasurer-control­
ler of Dakota Fire and Union Mu­
tual; Alan D. Huisinga to vice presi­
dent and assistant treasurer of
Employers Modern Life; Patricia R.
# Meyer to vice president of EMC Pre­
mium Services Co.; Samuel P. Col­
vin and Norman H. Anderson to as­
sistant secretary of Employers Mu­
tual and EMCASCO, and Sandra
# Chenoweth to assistant secretary of
EMC Underwriters, Ltd.
Federal Reserve Bank of St. Louis

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Northwestern Banker, August, 1984


Graduated With Honors


Steven E. Leek, a commercial loan
representative at City National
Bank & Trust, Rockford, recently
graduated with honors from the Illi­
nois Bankers School held M aj#
21 -June 1 on the campus of
Southern Illinois University, Carbondale.

commercial lending at the Skokie
Trust & Savings Bank.
Previously assistant vice presi­
Robert W. Miller was named exec­ dent at Pioneer Bank & Trust Co.,
utive vice president and a director of Chicago, Mr. Strickland is a gradu­
the Rock City Bank and Glen A. ate of the University of Chicago,
Koning was promoted to vice presi­ where he received his BA degree in
dent and cashier of the Bank of economics in 1979.
Pecatonica. Both banks were pur­
chased in April by Northwest Illi­
nois Bancorp, the holding company Chicago Bank Offers
Translating Service
owning State Bank of Freeport.
Mr. Miller previously served as
National Security Bank of Chica­
president of the German-American go, located on Chicago’s ethnically
Bank of German Valley and Citizens diverse near northwest side, has the
State Bank of Mount Morris, and unique capability to serve its custo­
commercial loan officer at the Bank mers in nine foreign languages —
of Pecatonica.
plus English. The most popular is
Mr. Koning has been employed by Spanish, but National Security
the Pecatonica bank since 1969 and Bank employees also can help custo­
is a graduate of Wisconsin State mers who speak Polish, Italian, Ger­
University-Platteville, with a degree man, French, Phillipino, Chinese,
in agriculture.
Arabic, and Ukrainian.
Newly elected directors of the
National Security has been offer­
Rock City Bank board are Dan ing this service for nearly all of its
Heine and Richard A. Miller, both 50-year history, to several hundred
State Bank of Freeport officials.
customers who speak limited or no
Newly elected directors of the English.
Pecatonica bank are Dan Heine,
Richard Miller and Douglas Mitchel.

Rock City and Pecatonica
Promotions Announced

Americorp to Acquire
First National, Pekin
A m ericorp F in an cial, Inc.,
Rockford, and The First National
Bank and Trust Company of Pekin
have entered an agreement whereby
Americorp, subject to certain condi­
tions, will offer to acquire at least
91% of the outstanding shares of
Pekin. Americorp’s offer is to ex­
change .76 shares of Americorp com­
mon stock and $.10 cash for each
outstanding share of Pekin common
The acquisition is subject to
regulatory approval. First National,
Pekin, as of March 31, 1984, had
assets of $54,352,961.

Skokie Trust Celebrates
ATM Grand Opening



SKOKIE Trust and Savings Bank recently#
unveiled its new Money Network Automatic
teller machine in the Skokie Swift transpor­
tation center 5001 West Dempster Street.
Present at the ribbon cutting ceremony
(from left to right) were James Tosto, exec,
v.p. and treas., and Karen Frankel, m ktgO
coor., both with the Cole-Taylor Financial
Group; Mayor of Skokie, Albert Smith;
LeRoy Plaziak, pres., Skokie Trust; Frank
Bauder, pres., Cole-Taylor Financial Group,
and Patrick Bissell, exec, dir., Money Net­

City Natl, and Boone State
Bank Merger Approved
The merger of City National Bank
& Trust Co. of Rockford and Boone
State Bank, Belvidere, has been ap­
proved by shareholders of both insti­
tutions as well as banking regula­
tors. The resulting holding com­
pany, BancServe Group, Inc., has
assets of $175 million.

Elmhurst Banker One of
300 Stonier Graduates

Loren J. Clark, executive vice
president of Elmhurst National
Bank was graduated this year from
the Stonier Graduate School of
UnibancTrust Company, Chicago,
Mr. Clark joined the bank in 1980
Appointed in Skokie
as senior vice president, and was one has announced the following promo­
Steven M. Strickland has been ap­ of 300 bankers making up the class tions:
pointed assistant vice president, of 1984.
Promoted to vice president are:

Banker, August, 1984
Federal Reserve Bank of St. Louis

William C. Dippel and Casey Orlow®ski, commercial banking division;
Peter Stickler, finance division;
Mara Tomsons, investment divi­
sion, and Daryl Waszak, trust divi^ sion.
* * *
Ford City Bank and Trust Com­
pany has announced the election of
six new members to its board of di­
re c to rs .
Frank E. Bauder, president of
Cole-Taylor Financial Group, North­
brook, was elected a director and
chairman. Other newly elected direc­
t o r s are: Irwin H. Cole, deputy chair­
man, Cole-Taylor Group; Ben S.
Jaffe, vice president and treasurer,
Guarantee Reserve Life Insurance
^Company, Calumet City; Seymour
^Taxman, president, The Taxman
Corporation, Skokie; Sidney J. Tay­
lor, chairman, and James V. Tosto,
executive vice president, both with
^Cole-Taylor Financial Group.
* * *

Memononee Falls Addition
Charles H. Dreyfuss has joined
F&M Bank, Menomonee Falls, as
cred it a d ju s t­
ment manager.
He jo ins the
bank from Mil­
waukee Cheese
Co., Inc., where
he was corporate
credit manager.
Mr. Dreyfuss
is a graduate of
the University
of W isconsin,
Milwaukee, and also served as man­
ager of credit and collections for K
Promotions, Inc.

sets of the new affiliates bring Citi­
zens Bancorporation assets to $917
million, an increase of almost 40%.
According to Mr. Beck, the Bancorporation of Wisconsin transac­
tion was financed with convertible
notes; S.B.W. Bancorp, sharehold­
ers agreed to an exchange of stock;
and North Side Bancorp was a cash

Spring Conference Held

F&M Bank, Menomonee Falls,
Women’s Community Council, re­
cently presented its Spring Confer­
ence for area women entitled “Law
An agreement in principle has
and Laughter.’’ Because of an over­
been reached whereby Michigan
response to the program,
Avenue National Bank, with assets
it was presented twice in the month
®of $175 million, will be sold to First
of May at North Hills Country Club,
Colonial Bankshares Corporation
Menomonee Falls.
with the transaction taking place
Lois Dougherty, Chairman of the
within 120 days. The announcement
-w a s made June 20 by Patrick L. tions of three bank holding com­ Council, presided at the sessions.
The law side of the program was
®O’Malley, chairman of Michigan panies by Citizens Bancorporation
by Madeleine E. Kelly, an
Avenue Financial Group, Inc., and
Friebert, Finerty &
C. Paul Johnson, president and CEO
of First Colonial Bankshares Corpo­ president of the Sheboygan-based St. John. Her topic was entitled
company. The acquired companies “Current Legal Issues for Women.’’
ra tio n .
are S.B.W. Bancorp., Inc. of Wau- Bea Bourgeois, freelance writer,
pun, Bancorporation of Wisconsin handled the laughter side of the pro­
Ribbon-Cutting Opens O’Hare based in West Allis, and North Side gram with her talk entitled “Dollars
Automated Financial Centers Bancorp, Inc., Racine. Combined as­ Don’t Make Cents to Me.’’

Three G raduates Receive Scholarships

Thomas Kapsalis (center), City of Chicago
commissioner of aviation, cuts the ribbon
during the official opening of the Auto­
Fill1mated Financial Centers in Chicago’s
O’Hare International Airport last month.
Looking on are Ira Bach (right), City of Chi­
cago dir. of dev. and adm. ass’t. to the
mayor, and C. Paul Johnson (left), pres, and
CEO of First Colonial Bankshares, the ser# vice provider for the CASH STATION/Cirrus
Federal Reserve Bank of St. Louis

F&M BANK Menomonee Falls recently presented three $500 scholarships to area high
school graduates. Scholarship winners with officers of F&M Bank are: (left to right) G. Mark
Dignin, v.p. & pers. bkg. mgr.; Sharon Farrow, pers. bkg. oper. mgr.; Lawrence K. Elton, ex­
ec. v.p. & c.o.o.; Jennifer Gentine, Hamilton High School; Cindy Ann Wiss, Menomonee
Falls High School-North Campus; Richard P. Klug, pres.; Alan J. Kunz, sr. v.p., pers. bkg.
Not pictured: Lynn Wysocki, Menomonee Falls High School-East Campus.
Northwestern Banker, August, 1984


We extend more than credit.
We extend ourselves.
W e’re known in the corre­
spondent banking business as
professionals you can and do rely
on time after time — whether
seeking an overline loan, looking
for help with cash management,
or selling your bank. That’s

because every F&M Marquette
correspondent banker has years
of experience and an established
reputation for trust and confiden­
tiality. We built our corre­
spondent reputation on personal
service. Ana even though w e’ve

grown to be a billion dollar bank,
our philosophy hasn’t changed.
Extending ourselves for you is
our way of life. Call us for all
Correspondent Banking services
at 612/341-6561.

A F&M Marauetie Naoanai Bük

Banker, August, 1984
Federal Reserve Bank of St. Louis

Correspondent Banking

Member FDIC /



1985 Convention Dates
The 1985 convention of the Min­
nesota Bankers Association has
been scheduled for June 10-12 at the
Amfac Hotel in Minneapolis.

Bemidji Promotions Told

Zapp Natl. Elects President
John Leisen has been named
president and chairman of Zapp Na­
tio n a l Bank, St. Cloud. He succeeds
Henry Mareck, who retired July 1.
Mr. Leisen has been with Zapp Na­
tional since 1962, most recently as
executive vice president.
# Mr. Mareck joined Zapp National
in 1946 as a bookkeeper and was
named president in 1977, succeeding
Edward A. Zapp, Sr.
Zapp National recently announced
%>lans for two additional buildings;
the Midtown Office and a new build­
ing for the main bank. The Midtown
Office will serve as the bank’s third
full-service branch bank and is
Scheduled to open this fall.
The new bank building is still in
the planning stages, however, land
has been purchased and construc­
tion should begin within the next
* w o years, Mr. Mareck indicated.

Litchfield President Named
Norwest Corporation announced
^ a s t month that David Daeges has
been elected president and CEO of
Norwest Bank Litchfield, succeed­
ing Roger O. DeBoer who retired Ju-



Mr. DeBoer, past president of
Litchfield Industries, Inc., has been
p resid en t of the Litchfield bank
*ince transferring here from Silver
Bay in 1965. He has been with Nor­
west organization 36 years.
Mr. Daeges joined the Litchfield
^>ank in 1979 and most recently was
senior vice president. He previously
Federal Reserve Bank of St. Louis

First National Bank of Bemidji
recently announced the following
P a u l W elle
was with Norwest Bank Redwood was elected to
the position of
commercial loan
officer. He has
Burnsville and Northfield
been with First
President Elected
National for the
Gordon F. Clarke was elected past five years.
Robert Seado
president and chief executive officer
of First Bank Burnsville and presi­ was elected real
dent of First Bank Northfield July estate loan offi1. He succeeds Newton R. Fuller
who has taken a position of ex­
panded managerial responsibility in
the Twin Cities metro banking divi­
Mr. Clarke previously was presi­
dent of First Bank Havre, Montana,
a position he has held since 1977. He
began his career with First Bank
System in 1953 when he joined First
Bank Minneapolis as an adjustor.
Mr. Fuller has been associated
with First Bank Burnsville and cer. He joined the staff of First Na­
First Bank Northfield since 1982.
tional Bank in 1978 as a teller at the
detached facility.
Helen Skeim was appointed to the
position of installment loan officer.
Brainerd Promotion Told
Gladys Petersen has been pro­ She has been with First National for
moted to customer service officer of the past 18 years.
F ir s t
B ank
Brainerd, accord­
Minnesota Society of CPAs
ing to Lee Mielke, president.
To Sponsor Conference
Ms. Petersen
Attorney Richard Covey, national
joined the bank
speaker on estate planning matters,
in 1978 as a cus­
will be the featured speaker at the
tom er service
Estate and Financial Planning Con­
re p re se n ta tiv e
ference, sponsored by the Minnesota
and previously
Society of Certified Public Accoun­
was with Brook­
tants. The conference will be held
lyn Center State G' PETERSEN
September 5 at the Radisson South
Bank and Northwestern National Hotel.
Bank in Minneapolis.
Mr. Covey is a partner in the New
York City law firm of Carter, Ledyard and Milburn.
National Charter Approved
The conference is for CPAs, attor­
Minnesota State Bank of Caledo­ neys, CLUs, investment advisors
nia, located at 124 East Grove in and other profesionals who work in
Caledonia, recently received appro­ estate and financial planning. Atten­
val from the Comptroller of the Cur­ dance qualifies for 8 CPE credits
rency to convert to a national and also for CLE credits. For more
charter. The new name of the bank is information, contact the Minnesota
“Minnesota Bank, N.A..”
Society of CPAs at 612/831-2707.
Northwestern Banker, August, 1984


bond manager, previously was assis­
tant vice president in investments,
and also served as investment of­
ficer for Marquette National Bank.
Mr. Stavenger, prior to joining
F&M, served as senior vice presi­
dent and cashier at Marquette Na­
tional Bank at University.
Mr. Hoven had been vice presi­
dent of public finance for Piper, Jaffray & Hopwood, Inc.
* * *

System. Ms. Staats began her bank­
ing career at First Bank System in_
* * *

Norwest Bank Central, Minnea­
polis, has named Michael G. Schrantz
as president. He
succeeds W il­
liam S. Solberg
who has resigned
his position to
take retirement.
M r. S c h ra n tz
previously served
as executive vice
president and as
a member of the
board of Nor­
Mr. Brinkman, previously vice west Central.
Mr. Schrantz began his career in
president in sales finance, has been
with Norwest Bank of Slayton.
with the bank since 1978.
Ms. Orn previously held the posi­ During his career he has served in a
tion of group human resources offi­ variety of positions at Norwest
Banks in Slayton, Red Wing, Oma­
cer at First Bank System.
ha and Rapid City as well as held po­
* * *
sitions at the Norwest Corporate of­
Gary Ruhter has been promoted
* * *
to cashier at Marquette Lake State
Bank, Minneapolis. He previously
J. Scott Hutton, president of
served as an audit officer for Bank
First Bank Edina, has announced
Shares Incorporated.
that Donna L.
* * *
Staats has been
F&M Marquette National Bank, named assistant
Minneapolis, recently promoted vice president in
Lawrence S. Podobinski to vice the bank’s oper­
president, investments. In addition, ations division.
Prior to join­
David A. Stavenger has joined the
bank as vice president, retail admin­ ing the bank she
istration, and David A. Hoven has held the position
joined as assistant vice president, of acting assis­
ta n t controller
Mr. Podobinski, also government at First Bank

Norwest Bank Minneapolis, N.A. re­
cently announced the appointment
of Dennis S. McChesney as senior
vice president of the domestic bank#
ing group, responsible for the bank’s
commercial middle market activi­
Mr. McChesney formerly was
group vice president of Norwest#
Bank St. Paul, he also served as vice
president of credit and loan adminis­
tration for Norwest Corporation.
* * *
Thomas E. Finley has joined First
Bank M innea­
polis as vice
president in the
in te rn a tio n a l
banking group.
He had been
with Continental
Illinois National
Bank, Chicago,
for 17 years,
m ost recently
serving as vice
president in international u n i^
* * *

At First Bank Southdale, Sheldon
R. Cravens and Duane C. Brinkman
were promoted
to vice president
and Karen T. Om
was named an
executive and
p ro fe s sio n a l
banking officer.
Mr. Cravens,
promoted in the
commercial loan
d iv isio n , p re ­
viously was as­
sistant vice president.

Banker, August, 1984
Federal Reserve Bank of St. Louis

Jerome E. Lanning has been
elected vice president and secretary
of FBS Property Resources Corpora#
Mr. Lanning has been with FBS
since 1964, originally employed in
its consumer finance entity.
* * *

Stockton Forrest has been elected
assistant vice president and man-||
ager of the middle market group in
the leasing and equipment finance
division of FBS Business Finance
Mr. Forrest joined as marketing^
officer in 1983.

Minnesota News

Keith J. Vegors, Jr. has been
®named president of Norwest Bank
South St. Paul,
N.A. He suc­
ceeds Robert S.
.^Branham, who
^assumed the po­
sition of chair­
Mr. Vegors,
^also elected a di­
rector, joins the
á&ttm m
bank from his K.J. VEGORS, JR.
previous position
as vice president and manager of the
^private banking division at Norwest
Bank St. Paul, N.A. He is a native of
Webster City, Iowa, and has a BS in
agricultural education and MS in
agricultural education/economics
^from Iowa State University, Ames.
Mr. Branham has been president
of the South St. Paul bank since
1975 and has been affiliated with
Norwest Corporation since 1946.




Joins Marshall Staff

Elected in Red Wing

Richard D. Tofte recently joined
the staff of First American Bank &
Trust of Mar­
shall as a com­
mercial banking
officer. His du­
ties will princi­
pally be in the
agricultural and
Mr. Tofte is a
g ra d u a te
South D akota
State University, where he received
degrees in ag business and commer­
cial economics. He previously was
with PCA of Marshall the past four

Brad J. Brozik has been elected
personal banking officer of Norwest
Bank Red Wing,
N.A., according
to Norman J.
Sampson, presi­
M r. B rozik
has been with
Norwest Bank
since 1983 and
will have pri­
mary responsi­
bilities in the
consumer and agricultural loan de­
partments. He has a BS degree in fi­
nance and economics from St. Cloud
State University.

Promoted in Fergus Falls

Dean R. Tollefson, president of
First Bank Northtown, Blaine, has
announced the
p ro m o tio n of
Eldbjorg Skare
p e rs o n a l
banking officer.
M rs. S k are
joined the bank
in 1976 as a
bookkeeper and
m ost recently
served as a per­
sonal banking
representative in the retail banking

The First National Bank of Fer­
gus Falls has announced the promo­
tion of Susan
* * *
Peterson to per­
At FBS Insurance, Minneapolis, sonal banking
Kathy Larson was recently pro­ officer.
Ms. Peterson
moted to assistant vice president of
^personnel and Clancy Smith was has been em­
ployed by the
promoted to operations officer.
Ms. Larson joined FBS in 1980 bank since 1976,
and has been a personnel officer m ost recently
since 1982. Mr. Smith has been with serving as instal­
®FBS since 1979, when he joined ment loan inter­
First Insurance Hopkins as an in­ viewer. She pre­
sently is attending Moorhead State.
surance producer.

Blaine Promotion Announced

^Bayport Promotions Told
First State Bank of Bayport has
announced the prom otions of
Eleanor Kaphing and Jody Kolashinski to personal banking officers.
• Ms. Kaphing started with the
bank in 1977 and has served as a
teller and as assistant in the loan
Ms. Kolashinski started in 1976
•w ith First State Bank and was pro­
moted to head teller in 1980. In 1982
she moved into the certificate of
deposit department.

Richfield Bank Participates in Intern
Program W ith Sri Lanka Banker


Appointed in Maplewood
Mark Novitzki has been ap­
pointed loan officer for Maplewood
^S tate Bank, according to G. Jack
Hillstrom, president.
Mr. Novitzki started at the bank
in June of last year as a manage­
ment trainee. He received a BA de0 gree in finance from Notre Dame
University in 1983.
Federal Reserve Bank of St. Louis

RICHFIELD Bank & Trust Co. recently welcomed the arrival of V. Suntharalingam, a Sri
Lanka banker, who will be working at the bank through a one-year intern program focusing
on bank operation. Mr. Suntharalingam (second from left) is the branch manager for the
Peoples Bank of Sri Lanka in the regional center of Mullithivu, located on the island’s
northeast coast some 200 miles from the capital city of Colombo. Pictured with Mr. Sun­
tharalingam from left is: William Kirchner, chmn., Richfield Bank; Chet Eggen, exec, v.p.,
and K. “Raja” Rajalingham, former resident of Sri Lanka, who is involved with Richfield’s
investment management dept.
Northwestern Banker, August, 1984


Minnesota News

First Banks Hopkins and
Produce Join, Elect Officers

ing officer at the St. Louis Park Of­
fice. He most recently was assistant
vice president and manager of that
John E. Raymond, president of office.
First Bank Hopkins, has announced
Dorothy Shoemaker, Debra Nel­
that First Bank Hopkins and First son and Gloria Schmitz have been
Bank Produce have received final named personal banking officers,
approval for the consolidation of the same position they held with
their assets under the name of First First Bank Produce.
Bank Hopkins. The consolidation in­
Named assistant vice president
cludes the acquisition of the St. were Karen Spengler, financial
Louis Park Office of First Bank Pro­ group manager for the bank, and
Earl A. Erpelding, commercial lend­
Selmer E. Undem has been named ing officer for the bank. Both were
executive vice president of First previously with First Bank Produce.
Bank Hopkins. He previously was
Judith Goulin was named per­
president and CEO of First Bank sonal banking officer for the bank,
having held the same title with First
Bank Produce.
Nancy Hillman has been pro­
moted to operations officer and
trust manager. She has been with
First Bank Hopkins since 1979 as a
Five former members of the board
of First Bank Produce have been
named directors of First Bank Hop­
kins. They are:
Selmer (Andy) Undem, newly
named executive vice president;
Harold Ring, president and trea­
surer of Ring Construction Com­
pany; Marvin Mann, partner in Cinemaland Theaters; James W. Elvin,
president of Elvin Safety Supply
Company, Inc., and Paul Weisman,
partner in Weisman Investment



James E. Campbell has been nam­
ed senior vice president and man­
ager of the new St. Louis Park Of­
fice. He formerly was vice president
at First Bank Produce.
Ranae Goltz has been named as­
sistant vice president and personal
banking manager at the St. Louis
Park Office. She previously held the
position of retail banking manager
and marketing officer at First Bank
Conrad M. Newburgh has been
named assistant vice president,
commercial lending department, at
the St. Louis Park Office. He pre­
viously held a similar position at the
main office of First Bank Hopkins.
Richard Nelson is now assistant
vice president and commercial lend
Northwestern Banker, August, 1984
Federal Reserve Bank of St. Louis

chairman of the board of the Dulutl^
bank. He has been with Norwest
Corporation since 1959, when he
joined Norwest Bank Minneapolis,
N.A. He moved up the ranks until he
was appointed president and chie^
executive officer at Norwest Bank
Old Saint Anthony, N.A. in 1974.
He served there until 1979, when he
joined the corporate office of Nor­
west Corporation as a vice p resid en t
in the banking division.
Mr. Fischer has served as execu­
tive vice president and manager of
the commercial division at Norwest
Bank Duluth since 1983. He begai#
his career at the bank as a trainee in
1958, and has since served in vari­
ous capacities in the trust division.
He was named vice president and
manager of trust in 1976, and senio#
vice president in 1979.
Mr. Sertich joined Norwest Bank
Duluth as a trainee in 1979 and most
recently was promoted to assistant
vice president, human resources, ii#
Mr. Mattern currently serves as
human resources officer of Norwest
Bank Owatonna. Prior to joining the
bank in 1981, Mr. Mattern was i#
principal and school teacher in Aber­
deen, S.D.
Three other officers have also
been promoted at Norwest Bank Du­
Sandra L. Fossen was elected as­
sistant vice president, and Arlene K.
Ross and David M. Hoium were
elected trust officers.
Ms. Fossen joined the bank ii^
1968, working in operations and
trust prior to being promoted to
Norwest Bank Duluth Names trust officer in 1980.
New President and CEO
Ms. Ross joined Norwest Corpo­
Norwest Bank Duluth, N.A. re­ ration five years ago, working two®
cently announced the election of years at the Grand Rapids affiliate
Charles A. Russell, currently chair­ and the past three years at the Du­
man, as its chief executive officer, luth affiliate.
Mr. Hoium has been with Nor-^
and Robert M. Fischer as president
and chief operating officer, effective west Bank Duluth the past three®
years, working in the accounts, loan
September 1.
As previously announced, Dennis and trust departments.
W. Dunne will continue to serve as
president and chief executive officer
until his retirement on August 31.
In addition, the board appointed
Steven J. Sertich, assistant vice One Promoted in Austin
president, as director of human re­
Marlin Morris has been promoted
sources for both the bank and Nor­ to agricultural loan officer of Nor #
west Corporation’s Region I and west Bank Austin.
elected James M. Mattern human
Mr. Morris joined Norwest Bank
resources officer.
in 1983 as an ag trainee. He is a
Mr. Russell serves a dual role for graduate of Iowa State University
Norwest Corporation, as both re­ with a BS degree in agricultural#
gional president of Region I and education and dairy science.


NEW OFFICERS of the North Dakota Bankers Association for 1984-85 are, from left: Immed. Past Pres.—Darold Petersen, pres., Lakeside
©State, New Town; Pres. —Les O. Nesvig, Pres., The First State Bank of La Moure; Pres.-Elect—William M. Sanger, pres., First Bank of North
Dakota (N.A.) Wahpeton; V.P.-Treas.—Harvey H. Huber, pres., Union State Bank of Hazen, and Exec. Dir.—Harry J. Argue, Bismarck.
RIGHT—New officers of the South Dakota Bankers Association for 1984-85 are, from left: Immed. Past Pres.—Charles W. Ekstrum, pres.,
First National, Philip; Pres.—John A. Haerter, pres., Farmers State, Hosmer; Pres.-Elect—Burdette C. Solum, pres., Norwest Bank Watertown, N.A.; V.P.—B. Michael Broderick, Jr., pres., First American Bank, Canton, and Exec. V.P.—J.l. Milton Schwartz, Pierre.

•Dakota bankers celebrate Centennial Year


UST as it is with all memorable
events where the excitement of
anticipation is half the fun, the Da­
kota Bankers Centennial Conven­
tio n was a rousing success but was
over all too soon. On Sunday morn­
ing, July 8 , about 700 tired but hap­
py bankers and their families moved
out of The Broadmoor Hotel at Col1or ado Springs, Colo., and began
their trip back to North Dakota and
South Dakota.
The occasion had been the longplanned joint convention celebration
1by the South Dakota Bankers Asso­
ciation and the North Dakota Bank­
ers Association to commemorate the
founding of the Dakota Bankers As­
sociation in 1884 when the area was
1still the Dakota Territory. When
statehood followed for North and
South Dakota in 1889, each state
formed its own state association
, that continues today. Consequently,
each state will have a second oppor­
tunity in just five years to celebrate
a Centennial again!
But for now, they joined forces to
! honor the memory of the stalwart
bankers who financed the pioneer
farmers, miners and business people
who carved the Dakotas from a west­
ern wilderness. The durability of
i their lineage is reflected in the fact
that many of those managing Dako­
ta banks today are third and fourth
generations of those who helped set­
tle the Territory, coming from the
i East and foreign countries.
While they looked back, the new,
Federal Reserve Bank of St. Louis

Associate Publisher

modern breed of Dakota bankers
also knew they must continue look­
ing forward to times as challenging
in their own way as the hardships
endured by earlier b an k ers.
Throughout the Centennial Conven­
tion, speakers reminded them of the
knotty problems facing all banks to­
day and the severe challenges of un­
fettered competition from outsiders.
SDBA President Charles Ekstrum
and NDBA President Darold Peter­
sen took turns introducing various
speakers, and presided at their re­
spective state business meetings.
The Governors of both states
were present to join the Centennial
Convention celebration and both
added their somber appeals for con­
tinued joint cooperation among all
bankers in their respective states to
aid the statewide economy, as well

as cooperative action between the
two states for area advancement.
Gov. William Janklow of The
Sunshine State of South Dakota re­
ferred to “the support in 1980 of
South Dakota bankers in passing
the bill to allow Citicorp to enter
New York.” He reminded them that
“in 1980 the amount of franchise tax
collected was $1,200,000; in 1983 it
was $14,200,000.” He said Citicorp
is now a $40 million investment in
the state with 2,000 employees.
Gov. Janklow stated, “ It is time
to renew our commitment to save
small communities. This won’t come
from Sioux Falls or Rapid City but
from all the small towns responding
together. Some will fail, but all of us
must conduct our affairs in such a
way that growth will continue.”
Gov. Allen I. Olson of North Da­
kota began tongue-in-cheek by say­
ing, “We have oil, coal and gas and
South Dakota has Citicorp!” He

Dakota Bankers Elect New Officers for 1984-85
North Dakota
Pres.—Les O. Nesvig, pres., First
State Bank, LaMoure.
Pres.-Elect—Wm. M. Sanger, Pres.,
First Bank of North Dakota (N.A.)
V.P.-Treas.—Harvey H. Huber, Pres.,
Union State Bank, Hazen.
Immed. Past Pres.—Darold Petersen,
Pres., Lakeside State Bank, New
ABA Council—John M. McGinley,
Pres., American State Bank & Trust,
Exec. Dir.—Harry J. Argue, Bismarck.

South Dakota
Pres.—John A. Haerter, Pres., Farm­
ers State Bank, Hosmer.
Pres.-Elect—Burdette C. Solum, Pres.,
Norwest Bank Watertown, N.A.
V.P.—B. Michael Broderick, Jr., Pres.,
First American Bank, Canton.
Immed. Past Pres.—Charles W. Ekstrum,
Pres., First National Bank, Philip.
ABA Council—John W. Thomson,
Pres., The Bank of Centerville.
Exec. V.P.—J.l. Milton Schwartz,

Northwestern Banker, August, 1984

Dakota News
stressed also the need for coopera­
tive action between the two states,
mentioning rail lines and water de­
velopment as two examples. He
stated further, “While we spend a
great deal of time and money ex­
panding our economy, the fact re­
mains that our small town agricul­
ture is the base of our overall state
economy. We must address the ‘85
Farm Bill more seriously than ever.
This is the last world class business
left in America and if we aren’t
careful we’re going to lose it. We’ll
have to get radical in some re­
Frank Cappiello, president of
Summit Advisers, Inc. of Maryland
and New Jersey, and a regular on
TV’s Wall Street Week, was the first
of two speakers to discuss the econo­
my. The other was Malcolm Forbes,
Jr., chief executive officer of Forbes,
Inc., and senior editor of Forbes
magazine, New York. Mr. Forbes’
talk was detailed in the July 16 issue
of the N o r t h w e s t e r n B a n k e r
Weekly Newsletter.
Mr. Cappiello said “We hypothe­
size the prime interest rate has
peaked and we’ll see it going down

perhaps to 11 % or even back to
lO1^ %. This is where we aim our
planning and make our adjustments
Mr. Cappiello said “as a guess I
will say if we have a Republican
President and Republican Senate,
we could have a balanced budget by
the end of the decade, but I think
th a t’s slim. However, we don’t need
a balanced budget per se, but we
need reductions in spending and in­
creased savings. No leading nation
in the world has a balanced budget.”

SPECIAL guest speakers at the Dakota
Centennial Convention were Governors of
the two states, shown here visiting before
they addressed the opening general ses­
sion. They are South Dakota Gov. William J.
Janklow (left) and North Dakota Gov. Allen
I, Olson.

The best bet for deficit reduction,
he stated, is to bring the interest*
rate down to 10 %, assuring an auto­
matic cut of $30 billion in interest
paid on the debt...“so write Chair­
man Volcker!”
ABA President-Elect Jim Cairns,
president of Peoples National Bank
of Washington, Seattle, addressed
the continuing battle to achieve ex­
panded powers from Congress on be-|
half of banking. He reviewed the*
current Senate and House bills and
described the diversity between the
Alex Sheshunoff, president of|
Sheshunoff & Associates, Austin,
Tex., used a series of slides and
printed handouts to illustrate his
talk about “The Future of Your
Bank.’’ He said, “I think fear of the|
future is a campaign being waged by
New York banks.” He said banks
presently have these major choices:
1. Staying independent. 2 . Estab­
lishing a closer relationship with^
other independent banks. 3. Form­
ing a MBHC. 4. Selling to another
bank or investor. 5. Merging with a
BHC. 6 . Becoming a franchisee.
Of the latter, he stated, “It used!

LEFT—Ken Vegors, v.p., Norwest Corp., Mpls; E.K. Wagner, chmn., SunBanK, Sioux Falls; Ed Baker, v.p. Norwest Corp., Mpls., and John'
McCune, v.p., Norwest Bk., Mpls., and Connie, RIGHT—Terry and Larry Schacht, pres., Andes St. Bk., Lakes Andes, S.D., with Wilma
Weeks, corr. bkg. off., Security Natl., Sioux City, and Jim.

LEFT—Janet and Dave Johnson, exec, v.p., Farmers St. Bk., Estelline, S.D., with Glen Ritterbusch, dir. of bkg. & fin., Pierre, and Carol and
Dick Holmes, a.v.p., F&M Marquette Natl. Bk., Mpls. RIGHT—NDBA Vice President Bill Sanger, pres. & c.e.o., First Bk. of North Dakota,
Wahpeton, with Huck Bushfield, v.p., Hand Cty. St. Bk., Miller, S.D.; Aimee Sanger, and Nini and Jim Hart, pres., Hand Cty. St. Bk., with
guest Kristin McColley and daughter Cynthia ¡Hart
Banker, August, 1984
Federal Reserve Bank of St. Louis

Dakota News


EACH year Norwest Banks present a wildlife portrait to outgoing assn, presidents. In photo at left are, from left: Charles W. Ekstrum, out­
going SDBA pres.; Gary Olson, pres., Norwest Bank Aberdeen, N.A.; Tom Wiklund, v.p., Norwest Bank Minneapolis, N.A.; Sid Bostic, sr. v.p.
br. mgr., Norwest Bank Sioux Falls, N.A., and Dave Butterwick, reg. bkg. off., Minneapolis. RIGHT— Dave Butterwick; Warren DeKrey,
pres., Norwest Bank Bismarck, N.A.; Tom Wiklund and Darold Petersen, outgoing NDBA pres., and Jack Holm, v.p., Norwest Bank Fargo.

LEFT— Three well-known state assn, executives helped the Dakota Bankers celebrate their Centennial. From left are: Don Childears, exec,
mgr., Colorado Bankers Assn., Denver; Truman Jeffers, exec, v.p., Minnesota Bankers Assn., Minneapolis, and Neil Milner, exec, v.p., Iowa
Bankers Assn. RIGHT—Other Minnesotans on hand to join the celebration were Joe Kingman, pres., American Natl. B&T, St. Paul; Herb
Lund, pres, of the MBA and pres., Security State, Albert Lea, and Bob Jacobson, v.p., American Natl., St. Paul.

LEFT—John McGinley, pres. & c.e.o., American St. Bk. & Tr., Williston, N.D., visits with Linda and Harry Argue, exec, dir., NDBA. RIGHT—
fill Representing the Bank of North Dakota were Herb Thorndali, pres. & c.e.o., and Nancy, and Lelia and Ruben Sailer, sr. v.p.

LEFT— Enjoying the Bar-B-Que were: Bob Peterson, sr. v.p., Security Natl. Bk., Sioux City; Ken Roeder, pres. & c.e.o., Peoples St. Bk., De
||liSmet, S.D., and Suzanne; Sherman Visscher, v.p., First Fidelity Bk., Platte, S.D. and Lois, and Ron Kiel, corr. bkg. rep, Security Nati. RIGHT—
Representing First Bank Minneapolis were: Maxine and Bill Hamilton, a.v.p., Kenny Wales, sr. v.p., and Patti, and Rita and Dave Williams, v.p.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1934


Dakota News

to be if you changed the name of
your bank to theirs, they wrote you
the check! One of the greatest assets
identification of your own bank and
your own community.”
Apart from the excellent business
meetings, Dakota bankers found the
facilities of The Broadmoor to be
everything that was anticipated. A
shotgun start on one of the 18-hole
courses started 144 golfers off on a
beautiful afternoon of golf with a
mountain backdrop. The Broadmoor
tennis courts were fully utilized, as
well as the swimming pools, jogging

and hiking paths.
Everyone enjoyed the traditional
Rotten Log Hollow barbecue staged
in the mountains by The Broadmoor
staff. This was followed the closing
night by an elegant candlelight ban­
quet in the International Center
that was climaxed by a superb per­
formance by pianist Roger Williams,
who played many favorite tunes of
all generations.
The SDBA 1985 convention will
be May 12-14 at Rushmore Plaza
Civic Center in Rapid City. The 1986
convention will be May 11-13 at Ra-

mada Inn, Sioux Falls.
The NDBA 1985 convention will^
be June 10-11, Holiday Inn, Bis­
marck, with the NDBA opting to re­
main with June dates instead of the
traditional May convention dates.
That will continue in 1986 when the'
convention will be June 9-10 at the
Holiday Inn, Fargo.
After a brief period of saluting the
first 100 years, the Dakota bankers,
headed home to face up to the next'
century of service to their two

LEFT—Bill Klein, v.p., F&M Marquette Natl. Bk., Mpls., and June, with Donna and Ray Sharkey, pres., Peoples St. Bk., Westhope, N.D., and
Jerry Long, pres., State Bk. of Bottineau, N.D. RIGHT—Ron Jenkins, pres. & c.e.o., Commercial Tr. & Sav. Bk., Mitchell; Gene Hagen, pres.®
& c.e.o., Security Natl. Bk., Sioux City, and John Lillibridge, chmn., First Fidelity Bk., Burke, S.D.

LEFT—Exhibitors included Richard Nelson, 2nd v.p., and Mike Baker, acct. rep., Omaha Natl. Bk. RIGHT—Dean Mehlhaff, (center) pres.,
Eureka St. Bk., Eureka, S.D., visits with Bob Chamberlain, v.p., sales supp., and Mark Cironi, v.p., sales, Omni Resources, Orlando.

LEFT—Karen and Dale Den Herder, pres., Sun Bank, Sioux Falls; Lois and Mike Broderick, pres., First American Bank, Canton; Carol
Jacobson and Gary Stevenson, v.p., 1st Natl. Sioux City. RIGHT—Tom Stockert, sr. v.p., Norwest Bank Minot, N.A with Warren Wenzel, 0)
sales repr., Brandt, West Fargo, and Ron Doll, dist. mgr., Brandt, Wayzata, Minn.

Banker, August, 1984
Federal Reserve Bank of St. Louis

Dakota News


fl||i\MONG the 144 men golfers were, from left: Bob Anderson, sr. v.p., First Bank Minneapolis, N.A., and Dave Birkeland, pres., First Bank
South Dakota, N.A., Sioux Falls (in cart); Tim Stern, pres., and Jack Holm, v.p., Norwest Bank Fargo, N.A.; John Pierson, pres., Norwest
Bank Minot, N.A., and Pete Nielsen, exec. v.p.-trust; 1st Natl., Grand Forks.

South Dakota
Elected in Huron,
^Hot Springs and Miller
The board of directors of First
Bank of South Dakota, N.A. has
elected George
Nygaard as pres# id e n t of First
Bank Huron.
Mr. Nygaard
jo in e d
F ir s t
Bank System in
• 1969 at First
Bank Fargo and
served from 1977
to 1982 at First
• Missoula, Montana. His most recent
position there was second officer.
First Bank of South Dakota also
announced the election of Jean Mea­
dows as assistant vice president at
• First Bank Hot Springs and Rodney
Mast as ag loan officer in Miller.
Ms. Meadows joined the Hot
Springs bank in 1972 as a teller. Her
new job responsibilities will include
• t h e function of acting branch man­
ager for the bank.
Mr. Mast joined the Miller bank
in 1983 as a management associate.
He is a graduate of South Dakota
• State University.

ing and finance, Southern Hills
Bank, Edgemont, received approval
to move its Buffalo Gap office to
Hot Springs and to establish a de­
tached drive-in at Buffalo Gap.
Also approved was the applica­
tion of First Fidelity Bank, Burke,
to acquire the United National Bank
Branch at Gregory.
Chancellor State Bank has also re­
ceived approval to change the
bank’s name to Dakota Heritage
State Bank.

recently as an associate national
bank examiner. Ms. Wessely will re­
main headquartered in Sioux Falls.

Two Elected in Sioux Falls
Two officer elections were recent­
ly announced at Western Bank in
Sioux Falls. Elected were Michael R.
Mostrom as director of data process­
ing, and Jim M. Snyder as mortgage
investment officer.

Lake Andes Addition Told

The Andes State Bank, Lake An­
des, has announced the addition of
Sally R. Winckler to its staff.
Ms. Winckler, who will serve as
assistant vice president, has had
eight years of prior experience at
American State Bank of Yankton,
BankWest N.A. of Pierre and Amer­
ican Indian National Bank of Wash­
Mr. Mostrom joins the bank fol­
ington D.C.
lowing ten years with the manage­
ment information consulting divi­
sion of Arthur Andersen & Co.
Promoted in Rapid City
For the past 11 years Mr. Snyder
Deanna Trowbridge has been pro­ has been with a financial institution
moted to personal loan officer of in Watertown where he managed
Norwest Bank Black Hills, N.A., both the mortgage and consumer
Rapid City.
loan departments.
She joined Norwest in 1983 as a
trainee and is a graduate of Chadron
Two Officers Elected in Wall
State College.
Norbert Sebade, president of
First Western Bank, Wall has an­
National Examiner Named
nounced that Marilyn Keyser was
Debra E. Wessely has been pro­ elected by the board of directors as
operations officer. Ms. Keyser joined
moted to national bank examiner.
She is a graduate of the Univer­ the bank in 1976 and has worked in
Approvals Received
sity of Wisconsin in Whitewater and all areas of bank operations as well
In recent action by the Depart - has been employed by the Comptrol­ as being a licensed insurance agent.
Elected to the position of custo• ment of Commerce, division of bank­ ler of the Currency since 1979, most
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1984


Dakota News

mer relations officer was Barbara
Hammerstrom. Ms. Hammerstrom
joined the bank in 1977 and has re­
sponsibility for customer services
and supervision of daily accounting

Elected in Sioux Falls
T.J. Reardon, president of West­
ern Bank in Sioux Falls, has an­
nounced the fol­
lowing officer
M ichael J.
Schumacher has
been promoted
to vice president
in commercial
loans. Formerly
a ss is ta n t vice
president he has MJ. SCHUMACHER
been in the com­
mercial banking division since early
1983. He previously spent eight
years in commercial banking in Min­
Ron Buckhouse has been elected
assistant vice president-operations.
Mr. Buckhouse, who joined the bank
in May, moved from Minneapolis
where he had over 18 years experi­
ence in bank operations.

North Dakota



Paula Mitchell has been elected
personal banking officer. She joined
the bank in 1983 as consumer loan
counselor and has nine years of pre­
vious financial experience.

First Bank of South Dakota
Advances One, Elects Two
The board of directors of First
Bank of South Dakota (N.A.), Sioux
Falls, has advanced one officer and
elected two officers.
Cathy Clark has been promoted to
assistant vice president at First
Bank of South Dakota - Sioux Falls
Main Office. Officer elections in­
clude Jerry Peterka, ag loan officer,
First Bank Sturgis, and Allen Rassmussen, ag loan officer, First Bank
Wessington Springs.
Ms. Clark joined First Bank

the designation of Certified Finan­
cial Planner.
Mr. Newman received his training
from the College for Financial Plan­
ning, an independent, non-profit
educational institution.

Fargo Executive Elected

Mandan President Named

Thomas G. Schmallen has been
named executive vice president of
Dakota Bank & Trust Co. of Fargo.
Mr. Schmallen joined Dakota
Bank in 1975 as vice president and
commercial loan officer. In 1981 was
named commercial loan department
head and in 1982 he was promoted
to senior vice president. Prior to
joining Dakota Bank, he was branch
manager for the Bank of California
in Hayword, Calif.

Wayne N. Forgey has been named
president of First Southwest Bank
of Mandan. He
will also have
management re­
sponsibility for
the First South­
west Bank in
M r. F orgey
e n te re d
th e
banking b u si­
ness in 1967,
working for First
Bank System in Gettysburg, S.D.
He was with the Gettysburgh bank
until 1976 when he was named vice
president of the First Bank in Cando. In 1980 he was named president
in Cando.

Grand Forks Banker
Receives Designation
Randy Newman, an employee of
First National Bank in Grand Forks
in the investments area, has com­
pleted all courses required to earn
Banker, August, 1984
Federal Reserve Bank of St. Louis

Worthington in 1980 as a manage­
ment associate. She was advanced®
to ag lending officer in 1981 and in
1983 she transferred to First Bank
of South Dakota - Sioux Falls Main
A graduate of the University oi
South Dakota, Mr. Peterka joined
First Bank Rapid City in 1982 as a
credit analyst. He transferred to



First Bank Sturgis and was named
ag lender representative in 1983.
Mr. Rasmussen rejoins First^
Bank of South Dakota as an ag loanW
officer after a four year absence
while employed as the General Man­
ager of Jerauld County Farmers
Union. Rasmussen previously served^
as a loan officer in Wessington
Springs in 1980.

Minot Additions Announced
J.J. “Joe” Vihstadt, president of
First American Bank & Trust of
Minot, hs announced the addition of
two officers; Jerry Hahn and Steven^
Mr. Hahn has accepted the posi­
tion of vice president of commercial
credit-real estate. He worked at
First American Bank & Trust of
Minot for over 17 years before re­
signing to accept a position in Mon­
Mr. Hahn is a graduate of Minot
Business College with a degree in
business. He also graduated from
the Colorado Graduate School of
Mr. Wangler has accepted the po-^
sition of loan review officer. He pre­
viously was with the North Dakota
State Department of Banking and
Financial Institutions as a bank ex­
aminer, where he has been since <
August of 1980. Mr. Wangler at­
tended two years at Bismarck Ju­
nior College before graduating from
the University of North Dakota in
December of 1979 with a degree in <
Banking and Finance.

In accepting the president’s gav­
el, Mr. Pedersen called for the for­
mation of a “blue ribbon task force”
to develop a strategic plan for the
MBA. He also suggested the need to
consider joining forces with all other
financial institutions in the state on
common legislative issues and the
development of economic growth in
Montana Governor Ted Schwinden was on hand to introduce fellow
Governor and Convention Speaker
William Janklow of South Dakota.
Prior to the introduction, Governor
Schwiden briefed the bankers on his
recent ag policy meeting with Presi­
dent Reagan and Secretary of Agri­
NEWLY elected MBA Officers for 1984-85 are: Immed. Past Pres.—Bob Sizemore; Pres.Eiect—Dick Timmerman; Pres.—Chuck Pedersen; Treas.—W.E. “Buster Schreiber, and culture Block.
As might be expected, Governor
MBA Exec. Dir.—John Cadby.
Janklow continued his campaign for
state’s rights in his address to his
Pedersen To Head M ontana Bankers
neighbors to the west. In citing the
meeting, Dale Anderson, president many changes in South Dakota
Associate Publisher
and chief executive officer of Nor- banking law since taking office in
west Bank Great Falls, was elected 1979, he stated “ I ’m disgusted with
T HE BEAUTY and serenity of t0. ser™ on ‘he ABA Coun,d l Bef Washington, D.C. con jobs. We
Big Sky Country and Big Sky
Brace Erickson, p n r i n t r f don’t have any brains in congress
anymore!” In relating to the is­
Mountain provided the backdrop for Flrst Securlty Bank of Livingston,
suance of state banking charters for
the 81st annual Montana Bankers
purpose of entering the insur­
Association Convention. The con- ■
ance business the governor added,
“ If we in government can’t lead, we
Banker,” painted a contrast to the
should at least follow the people and
escape from the rigid social restricjp
be an anchor around their necks.
tions of the Dark Ages into the Re¿¡f
$ jf *
do we always have to say that
naissance Period with the adapta%
change won’t work?”
tions facing modern bankers as dere3 ^ jj|
The governor also used a soap box
gulation continues within the indus- J§|k ^
style of delivery in speaking out for
the free enterprise system. “There is
^Highlighting the convention activirtue in free enterprise. We have
vities, Charles Pedersen, chairman f f
forgotten in the U.S. that in our
and president of First Interstate
economic system you have the right
Bank of Great Falls, was elected to
succeed Robert Sizemore as MBA Jk
„ to succeed. But when you take away
the right to fail, all games end in a
president for 1984-85. Elected to
serve as vice president was Richard f *
^ ^
gt- tie. The only question should be, is it
a good deal for the consumer or isn’t
Timmerman, president of First
W TT “ R n ofp r”
RET RING Commissioner of Financial InBank Butte and W.E
Buster stitutions Les Alke receives a plaque Qf it...and if it isn’t, won’t the people
Schreiber, chairman and president specia| recognition for his years of service figure it out! Now, that doesn’t re­
of Mountain Bank of Whitefish, was to the commercial banking industry in Mon- quire a lot of government regula­
elected treasurer. During the ABA tana.


MBA President Bob Sizemore passes association gavel to newly elected president, Chuck Pedersen. Newly Elected President-Elect Dick
Timmerman, pres., First Bk. of Butte, looks over gift presented to Bob Sizemore by MBA.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1984

There's only one locally-ow
If you’re an independent bank,
you’ve probably noticed it’s harder
to keep your head above water
these days.
According to a 1983 survey by
a leading consulting firm, 74% of
CEO’s in banks with assets of over
$100 million expect their banks to
acquire another bank within five
In this period of deregulation,
mergers and acquisitions have
become a common occurrence. So

much so that in Rochester, New
Federal Reserve Bank of St. Louis

York, the only remaining locallyowned commercial bank is First
National Bank of Rochester.
Deregulation is here to stay. To
help make sure you are, consider
the proven alternative: a franchise
with First Interstate Bancorp.
the profitable partnership.
Currently, the First Interstate
Bank system is the 7th largest in
the nation, with assets of over
$43 billion. Together with our fran­

chisees, we have over 1,000 fullservice banking offices in 14 states,
making us one of the largest retail 4
banking systems in the country.
As a franchisee of First Interstate
Bancorp, you have access to these
vast resources.
First Interstate’s goal is to use
technology and product innovation
to deliver unmatched financial
services all over the United States
As a franchisee, you’ll benefit *
from many of these services. For
example, you’ll be included in the

I bank left in Rochester today.
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In addition, you’ll gain access to
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international trading and data
success story.
success in the market­

place speaks for itself. Currently,
Federal Reserve Bank of St. Louis

First Interstate Bancorp has
franchise agreements in 6 states,
including Colorado, Hawaii,
Alaska, Montana, Wyoming
and Wisconsin.
Operations in these states
represent a total of 21 banks
with 68 offices. By the end
of 1984, their combined
assets will total $2.5
Find out more about
how you can become part
of First Interstate Bancorp’s

successful franchise program by
calling John Dean, President,
First Interstate System, Inc.
(213)614-3043. ‘

B a n co rp


Montana News

LEFT—MBA President Bob Sizemore, pres., Western Bk. of Chinook, (right) visits with Montana Governor Ted Schwinden and South Dako­
ta Governor William Janklow. RIGHT—Mike Cronin, MBA admin, ass’t., with ABA President-Elect James Cairns, pres., People’s Bk. of
Washington, Seattle, and Speaker Jack Jackson, chmn., LDI, Inc., Oklahoma City.

LEFT—Pete Terrett, pres. & c.e.o., Bank of Baker; Bob Sipple, sr. v.p., American Natl. Bk., St. Paul; Norm Dean, chmn., United Bk. of
Greeley, and MBA President-Elect Chuck Pedersen, pres. & c.e.o., First Interstate Bk. of Great Falls. RIGHT—Jeanie Fellman; Dick#
Holmes, a.v.p., F & M Marquette Natl. Bk., Mpls.; Velma and Carl Harbaugh, dir., Garfield Cty. Bk., Jordon; Carol Holmes, and Dale Fellman,
dir., Garfield Cty. Bk.

LEFT—Bob Waller, (far right) pres. & c.e.o., Security Bk., Billings, welcomes Bruce Erickson, pres. & c.e.o., and his father Claude, chmn.,
First Security Bk., Livingston, to the Security Chuckwagon Cookout. RIGHT—Also enjoying the Security hospitality were: Fred Kaufmann,
v.p., and Bob Swartz, v.p., both with First Interstate of Denver, Tom Scott, Security Bk. of Billings, and Karl Kehmeier, a.v.p., First Interstate

LEFT—Orville Erlenbush, cash., Mont. Bk. of Bozeman, and wife Robin; Janice and Leroy Leavitt, sr. v.p., Mont. Bancsystems, Billings, and
Jane and Herb Wagner, pres., CFI Bankers Serv. Group, Bozeman. RIGHT—Lee Schafer, portfolio consult., and Don Lindeman, a.v.p., F irs t#
Bk. of St. Paul, and wife Ev visit with Cheryl and Phil Bratton, v.p., Western Monetary Corp., Billings.

Banker, August, 1984
Federal Reserve Bank of St. Louis

Montana News


LEFT—MBA BankPac Chmn. John Ronneberg, (center) c.e.o., Citizens Bk. & Tr., Big Timber, leads fellow committee members and MBA
Executive Director John Cadby, (second from left) in a special fund raiser during the Presidents Banquet. RIGHT—Kenny Wales, sr. v.p.,
£ First Bank, Minneapolis, and Gary Ryti, v.p., State Bk. of Terry, enjoy a visit during BankPac activities.

American Bankers Association
President-Elect Jim Cairns, presi^ dent of People’s Bank of Washing­
ton, Seattle, brought the bankers up
to date on the status of the House
and Senate banking bills and com­
pared the differences in two pieces of
q proposed legislation. Noting the
lack of various expanded powers
provisions, he argued that those
who attribute the recent Continental
woes to deregulation simply don’t
understand the problem. “The facts
simply don’t support the charges. If
anything, had there been more dere­
gulation on the asset side of the
balance sheet, Continental could
# have diversified its loan portfolio.
Deregulation is a prescription that
would put banking in a state of
vigor. It is up to Congress to sign
that prescription.’’ In closing, Mr.
# Cairns reminded the bankers of all
the products and services available
to them as ABA members.
Jack Jackson, chairman of Okla­
homa City based LDI, Corporation,
# used his 23 years of experience in
the airlines industry to draw a paral­
lel between that industry and the
current deregulation of the commer­
cial banking industry. “ I want to let
# you in on a little inside informatio n ...H u m p ty D u m p ty w as
pushed,’’ is how he describes the ear­
ly stages of airline deregulation. He
added that not one chief executive
® officer of a major airline wanted de­
regulation or expected it to become a
reality. “ I knew Orville and Wilbur
personally and deregulation will
never happen,’’ was the industry# wide attitude.
Mr. Jackson effectively used
many humorous examples from
other industries throughout his
^ presentation to emphasize key
^ points. Commenting on providing
Federal Reserve Bank of St. Louis

services customers want, when they
want them and where they want
them, he referred to free standing
medical clinics in Texas shopping
malls.“Young up-start doctors have
opened up ‘Doc in the Box’ clinics.’’
Following the laughter, he added
that this may seem funny to the
bankers, but it was very touchy to
the doctors. He also added that
when it comes to providing new pro­
ducts or services, most bankers are
great administrators of regulations
rather than competitive innovators.
During the convention, retiring
Commissioner of Financial Institu­
tions Les Alke was recognized for
his years of service to the banking
industry by the MBA. Following the
reading of a lengthy resolution and
presentation of a plaque, Mr. Alke
commented, “Where as most of you
feel that I should have left a long
time ago, and where as most of you
feel that I have been a pain in the
behind, I accept this plaque with a
great deal of pleasure.’’ The conven­
tion also included several recrea­
tional activities and special interest

vice president and Carol A. Willis
has joined the bank as instalment
loan officer.
Mr. Pehl joined the bank in 1980
after graduating from Montana
State University with a BS degree in
Ms. Willis most recently was with
Security Bank Billings, N.A. in the
real estate loan department.

Three Elected in Anaconda
First Security Bank of Anaconda
has elected Don Clark as executive
vice president
and Sandra L.
C o n rad y and
Barbara A. Cook
as loan officers.
M r. C lark ,
elected to the
board in 1981,
has served as
vice president in
charge of the
commercial loan

Helena Banker Retires
Stuart Ellison, vice president,
agriculture and commercial officer,
retired July 31 after 24 years, ac­
cording to Earl Johnson, president
of First Bank Helena.
Mr. Ellison joined First Bank department for several years. In
Havre in 1960. In 1970 he trans­ 1982 he was promoted to senior vice
ferred to First Bank Great Falls and president and senior credit officer.
He has been with First Security
in 1972 joined First Bank Helena.
since 1972.
Ms. Conrady joined First Security
in 1969, specializing in real estate
Billings Advancements Told lending. Ms. Cook started in 1974
Norwest Bank Billings has pro­ part-time while attending school and
moted Wade L. Pehl to assistant joined full-time in 1980.
Northwestern Banker, August, 1984


One Promoted, Four
Join Bozeman Staff

recently was with First National of
Whitefish as instalment loan officer.
Ms. Lane has been with Security
Several promotions and additions Bank of Billings since 1979, most
have been announced at First Na­ recently as operations assistant.
tional Bank in Bozeman.
J. Scott Heck has been promoted
to personnel director in addition to Four Added, One Elected
vice president and manager of real At First Bank Billings
estate. He joined the bank in 1983
First Bank Billings recently an­
and previously was assistant ad­ nounced the addition of four new of­
junct professor of banking and fi­ ficers and the election of one.
nance in Montana State Univer­
Mark DeGroot and Mike Rich­
sity’s School of Business.
ards have joined the bank as vice
Robert A. Thomas has joined the presidents in commercial loans. Mr.
staff as assistant vice president and DeGroot joins the bank from Lloyds
assistant manager of the real estate Bank of California, where he was
department. He previously was manager of regional corporate bank­
branch manager of Home Federal ing, Sacramento. He also spent five
Savings & Loan.
years with Wells Fargo Bank of Cal­
J.C. Yarde and Judy Hyde have ifornia. Mr. Richards began his
joined as personal bankers and Cin­ banking career with Crocker Na­
dy L. Lane as operations officer.
tional Bank in 1975. He most recent­
Mr. Yarde previously was with ly was with Lloyds Bank of Califor­
General Motors Acceptance Corpo­ nia in Sanger.
ration in Spokane, Wash. Ms. Hyde
Pat Capser, new assistant vice
started her career in 1975 and most president in agricultural loans, pre­

viously held ag positions with First
Bank Lemon, S.D., Wells Fargo A g 1
Credit Corporation and most recent­
ly, Security Bank of Montana.
Carol Troth, new executive and
professional banker, is a transfer
from First Bank Minneapolis, where
she began her career in 1972.
John Paulson has been elected
consumer finance officer. He joined
the bank’s staff in 1978 as an out­
side adjustor and was promoted in
1979 to unit manager.

FBS Acquires Hoines LaBar
First Bank System, Inc., Minnea­
polis, has acquired the Hoines La- ®
Bar Insurance Agency in Billings.
The agency will be a subsidiary of
FBS Insurance, the company’s in­
surance brokerage operation.
James D. Hoiness, with Hoiness ®
LaBar for 30 years, will become re­
gional vice president for Montana
and will continue to manage Hoiness
LaBar and the FBS Insurance agen- ^
cies in Forsyth and Fort Benton.

Lovell Charter Receives
Preliminary Approval
Organizers of Lovell National
Bank have received preliminary ap­
proval from the Comptroller of the
Currency for a national bank charter
to be located at 284 East Main
Street in Lovell. Spokesperson for
the bank is Richard S. Nelson of

Promoted in Casper

in 1983 as a job analyst and her
First Interstate Bank of Casper, most recent position was personnel
N.A. recently announced the promo­ officer.
tion of Gary Sloan to vice president
of the construction loan department
and Pat Papa to assistant personnel Convention Dates Are Set
Dates for the next three annual
Formerly a construction loan of­ conventions of the Wyoming Bank­
ficer, Mr. Sloan has been with the ers Association have been an­
real estate financing division of nounced. A departure from recent
First Interstate for the past year.
years is that the conventions will
Formerly a personnel assistant, start with registration on Sunday,
Ms. Papa has been with First Inter­ with the traditional golf, tennis and
state for the past four years.
fishing tourneys on Monday. The
conventions will conclude at noon on
Wednesday instead of Friday, as in
Cheyenne Promotion Told
Barbara Berg has been promoted the past. The conventions will con­
to assistant vice president, human tinue to be held at Jackson Lake
resources, of First Wyoming Ban- Lodge, Moran. The convention dates
corporation, Cheyenne, announced are:
David R. Johnson, chairman, presi­
1985— June 16-19
dent and CEO.
1986— June 15-18
Ms. Berg joined the corporation
1987— June 14-17

Banker, August, 1984
Federal Reserve Bank of St. Louis

Elected in Shoshoni
The First State Bank at Shoshoni
has elected Robert I. Adams presi­
dent and chief executive. He pre- 0
viously was vice president of the
Pioneer Bank of Evanston.

Casper Directors Appointed
Wyoming National Bank, Casper,
has announced the appointment of
four new directors: Bob Barnard,
Marvin A. Keller, Peter I. Wold and
Martin Lee Sullivan.
Mr. Barnard is a partner in the
Barnard Realty and Insurance Com­
panies. Mr. Keller is currently an in­
dependent geologist. Mr. Wold is
manager of Lands of Wold Minerals
Company and president of Wold
Drilling Incorporated. Mr. Sullivan
has been in the ranching business
most of his life with Sullivan Land
Company and is president of the
livestock company.





President and CEO Named
At First Interstate, Denver
Robert J. Malone has been named
p re s id e n t and chief executive officer
of First Interstate Bank in Denver.
Robert E. Lee, former chairman and
CEO, has agreed to remain as chair­
man. John Eggemeyer III, who had
Ubeen serving as president, resigned.
Mr. Malone had been with First
Interstate Bank in Boise, Idaho.

Denver Promotions Told

He joined Central in 1981 as staff at­
New officers include: Dennis W.
Orcutt and Brad L. Meuli, commer­
cial loans; Linda F. Rounds and Lar­
ry Risk, operations; E. Jane May­
berry, retail planning, and Nancy L.
Northrup and Pamela C. Rice, retail

Denver National Obtains $2
Million for Student Loans

sistant vice president, and Wayne
Warren to banking officer.
Mr. Foncannon joined the bank in
April of this year in the energy divi­
sion. He previously was with First
Interstate Bank of Denver, where he
held positions in correspondent
banking, energy lending and special
Mr. Dealy, who was promoted in
the national accounts division, joined
the bank in 1977. Mr. Metzinger
also joined the bank in 1977, as se­
nior investigator. Mr. Reiser began
his career with the bank in 1963 as
an auditor. Mr. Warren joined Colo­
rado National in 1981 as a credit
analyst in the commercial loan de­

Durango President Elected
Samuel E. Monroe has been
elected president and a director of
United Bank of Durango.
Mr. Monroe formerly was with
First National Bank of Maryland,
serving as a senior vice president
and regional division manager.

Denver National Bank will obtain
up to $3 million in funds for making
new student loans from the Student
Loan Marketing Association of
Washington, D.C.
Denver National will obtain the Acquisition Negotiated
funds by selling existing student
United Banks of Colorado, Inc.,
loans from its portfolio under a twoDenver,
has completed negotiations
year Forward Purchase Commit­
to acquire Garden of the Gods Bank
ment from Sallie Mae.
in Colorado Springs. The acquisition
is contingent on Federal Reserve
One Denver Promotion Told Board approval.
Garden of the Gods bank has as­
Colorado National Bankshares,
Inc., Denver, has promoted Daniel sets of approximately $20 million.
H. Sise, Jr. to assistant vice presi­
dent of marketing.
He joined the company in 1982 as Lakewood President Elected
Colorado National Bank - Lakemarketing coordinator for subsidi­
wood has elected Joy Prater as pres­
ary banks.
ident, announced Richard G. Adam­
son, chairman.
Two Appointments Told
Mrs. Prater has 20 years of bank­
C. Jerome Chandler has been ap­
pointed assistant vice president, ing experience behind her. She joined
real estate, and Ray Czerwinski has the Lakewood bank in 1969 and
been named accounting officer for most recently was vice president
First Colorado Bank & Trust, Den­ and cashier.
New to the bank, Mr. Chandler Dominion President Named
previously was with Denver Na­
Vic Kearney has been named pres­
tional Bank. Mr. Czerwinski has ident of Dominion National Bank,
been with First Colorado and Affi­ Denver. Prior to joining Dominion,
liated Bankshares of Colorado for Mr. Kearney spent eight years in the
four years as a teller and an auditor. commercial lending department of
First National Bank of Oklahoma
Five Promoted in Denver
City. Most recently he was division
head of southwest lending for the
ver recently announced the promo­ bank.
Joining Dominion as senior vice
Michael McCall and Marcia Roecker. tion of Thomas M. Foncannon to
Randall F. Komisarek has been vice president; James Dealy, Donald president of commercial banking is
promoted to senior staff attorney. Metzinger and Sammy Reiser to as- Steven I. Butler. He formerly held a

® Central Bank of Denver recently
promoted Daniel A. Rich to vice
president in the
trust group and
^four others to as­
s i s t a n t vice pres­
ident. Mr. Rich
joined the bank
in 1980.
^ Promoted to
a s s is ta n t vice
p resid en t are:
Ken B uckius,
R obert Green,
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1984

Colorado News
similar position with Century Bank Denver Director Named
main lobby, will be staffed by David^
in Denver.
Richard N. Brown was recently Pasternak, an investment executive^
Dominion also announced that W. elected to the board of First ColoWarren Culpepper has been pro­
moted to executive vice president.
CBI Announces Investment
He joined the bank two years ago a cc o rd in g to
By AmeriTrust Corp.
after 19 years with Central Bank of
AmeriTrust Corporation and Cen­
tral Bancorporation, Inc. of Denver
have entered into an agreement
an independent J* \
New President Elected
whereby AmeriTrust would pur-,
commercial real ■■
William R. Frogge III has been estate developer H
chase a 92 percent equity interest in
elected president of Colorado Na­ in Vail. Prior to S B
Central Colorado Company, a part­
tional Leasing, Inc., a subsidiary of that he spent 14
nership which owns approximately
Colorado National Bankshares, Inc. years in the in­
95 percent of CBI. The interest
He started his banking career in surance and securities business in would be purchased indirectly from,
1966 and was named president of Denver.
D.H. Baldwin Company.
Colorado National Bank - Lakewood
The agreement is subject to the
in 1974.
approval of the Board of Governers
of the Federal Reserve System. In
Brokerage Firm Leases
addition, since D.H. Baldwin Com-(
First Interstate Lobby
is currently in reorganization
Joins Englewood Bank
First Interstate Bank of Denver under Chapter 11 of the Bankruptcy
Gregg D. Carr has joined First In­ has become the first bank in Colo­ Code, the agreement will also re­
terstate Bank of Englewood as vice rado to lease prime lobby space to a quire the approval of D.H. Baldwin,
president in commercial lending. He full-service brokerage firm, accord­ the bankruptcy court and certain <
joined First Interstate of Denver in ing to John R. Wells, executive vice equity and creditor groups.
1980 as vice president and cashier, president, retail banking.
The current directors and man­
and prior to that time was with First
Wedbush, Noble, Cooke, Inc., now agement of CBI, and the manage­
Bank of Westland.
offering its services from the bank’s ment of the CBI member banks will

"Here are a few typical examples.
A couple of months ago, I was in
Wyoming putting together a loan for
Federal Reserve Bank of St. Louis

continue without change, according Kyle, Sharon A. Lundstrom, James fice of the Comptroller of the Cur­
rency already has given WESTNET
L. Volz and Douglas R. Woods.
to terms of the agreement.
Ms. Horn joined the bank in 1953 preliminary approval for the na­
and is senior personal banker in con­ tional charter.
Frisco Director Elected
Current WESTNET members in­
sumer banking.
Dennis D. Johnson, president of
Mr. Larsen, assistant manager in clude United Banks of Colorado,
^Summit County Bank, Frisco, has loan analysis, joined the bank in Inc. of Denver, Bancorp Hawaii of
announced the
Honolulu, Valley National Corpora­
election of Keith
tion of Phoenix and Wells Fargo and
M. Van VelkinPromoted in Grand Junction Company of San Francisco.
burgh to the
- r =“Upon final approval, the new
Craig A. Coburn has been pro­
►bank’s board.
^ Æ' M- moted to accounting officer at Colo­ charter will allow WESTNET to ex­
Mr. Van Vel- '
rado National Bank - Orchard Mesa, pand the financial services it pre­
kinburgh is pres­
sently offers to member banks,’’ N.
Grand Junction.
ident of the Bui'
Berne Hart, WESTNET chairman
rich Corporation
and president and chairman of
►which operates w ^Êm SÈ ÊÊÊÊÊÊ
United Banks of Colorado, Inc.,
Christy’s Sports
said. “New services which we will be
Retail Ski Shops.
include enhancing cur­
He replaces Charles P. Anderson, WESTNET Moves Forward
rent asset/liability programs and
who recently resigned.
With “ Bankers’ Bank”
those related to settlement of corre­
WESTNET, the western regional spondent banking accounts. Cur­
banking group, is establishing rently, WESTNET offers a cash
Promoted in Denver
WESTNET Bank N.A. to be based concentration network, a lockbox
At United Bank of Denver, De­ in Denver. It will be the first na­ network, discount brokerage ser­
lo r e s V. Horn and David W. Larsen tionally ch artered , in te rs ta te , vices, a check guarantee acceptance
wwere promoted to assistant vice “bankers bank.” The Federal Re­ program and relocation services
president. Named officers were: serve Board took necessary action tailored to assist in transferring
David M. Carlson, Mickie D. Cro­ to allow the organization to proceed bank accounts from one bank to
well, Cynthia S. Kippur, Patti L. with establishing the bank. The Of- another.”
Colorado News

"From there, it was down to Northern
Colorado to assist in the organization
and financing of a new bank charter."

Then to Utah to help a correspondent
bank arrange membership in
the VISA PLUS System?
I said I enjoy my job. And I'd like to go
to work for you. That's what it means
to be a Better Banker. Please give
. I'm Rick McElrov."


The Better Banker

1515 Arapahoe Street/Denv
Colorado 80292
(303) 893-3456/Member FDI
Federal Reserve Bank of St. Louis

Mic B ro siu s
B ank o f Stap leton

R u ss R abeler
F a rm ers State B a n k , D od ge

C huck L effler, Jr.
S e cu rity State B ank o f H olbrook

J im M cG in n ess
F arm ers State B an k , P ly m o u th

G eorg e H aase. Jr.
C rofton State B ank

W illard B eh ren d s
State B ank o f E lk Creek

R andy B u rn s
H om e S tate B an k , H um boldt

M eredith W illiam s
F irst S tate B an k , B eaver City

J erry P u rita n
F irst N a tio n a l, W isner

C raw ford S tate B an k

M arsh a W ilh elm
The D a w so n B an k , D a w so n

W ayne H o sk in so n
The S io u x N a tio n a l B an k , H arrison


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Application Filed For
New Alliance Bank
Application has been filed with
the Nebraska Department of Bank­
ing for a new state bank to be lo­
cated in Alliance and known as
Western Bank.
Organizers include: Deryl Hamann, Gerald Anderson, Ronald Hiatt,
Rock Sumner and E.A. Wearin.

NBA C om m ittee Chairm en Nam ed
C. HOVE, Jr., chairman of tee—Ron Krejci, president, Schuyler
■ Minden Exchange Bank, and State Bank, Schuyler.
Loans & Investments Commit­
president of the Nebraska Bankers





Association, has announced the for­
mation of the standing committees
for the association for 1984-85. The
following have been named chair­
Agriculture Committee—Tom
Henning, president and CEO, Over­
land National Bank, Grand Island.
Bank Management CommitteeChuck Leffler, chairman, Sioux Na­
tional Bank, Harrison.
BankPAC Committee—Chairman
for this committee is Bruce Madden,
chairman and president, American
National Bank, Kimball. Vice chair­
man for the committee is Jim Fox,
Jr., president, First National Bank,
Education Com m ittee—John
Green, president, Wauneta Falls
Bank, Wauneta.
Government Relations Commit­

tee—Don Harms, president, First
National Bank, Syracuse.
Marketing Committee—Vollis
Summerlin, vice president, First Na­
tional Omaha.
Personnel Com m ittee—Vicki
Clarke, personnel and marketing of­
ficer, Overland National Bank,
Grand Island.
Planning Committee—Jim Ken­
ner, president, Thayer County Bank,
University Foundation Allocation
Committee—Dick Armstrong, chair­
man of the executive committee,
Minden Exchange Bank.
Pension Committee—Joe Twidwell, vice president, Fremont Na­
tional Bank.
Correspondent Banking Commit­
tee-D an Boehle, vice president,
Omaha National Bank.

Norfolk Financial Center Plans Approved

Duane Acklie, chairman of Bank of Norfolk/Norfolk Financial Center, has announced the
£ board’s approval of plans to start construction of a new bank building on the northeast corw ner of the junction of Highway 81 and 275 in Norfolk. The three-story, 24,000 sq. ft. financial
center will include a two-story atrium, a lower level accessable with an open staircase from
the main lobby and a drive-through bank facility. The top floor will be leased to other busi­
ness professionals. Following the completion of the new bank building, anticipated for
spring of 1985, the existing building will be demolished. Bank of Norfolk was chartered in
£ 1969 and opened February, 1970. In 1983 it adopted the trade name of Norfolk Financial
Federal Reserve Bank of St. Louis

Creston Branch Approved
The Farmers National Bank of
Madison has received approval from
the Comptroller of the Currency to
open a branch at Fourth and Pine
Streets in Creston.

Joins Papillion Bank
Marvin G. Rohn recently joined
Bank of the Midlands in Papillion as
vice president
and ag represen­
Mr. Rohn has
23 years of bank­
ing experience.
After receiving a
B.S. degree in
accounting from
the College of
B u sin e ss A d ­
ministration at
the University of Nebraska-Lincoln
in June, 1961, he joined The Omaha
National Bank that same month.
During his 20-year career with that
bank, he worked most of the time
with the correspondent bank and
agricultural division, becoming vice
president in December, 1972.
He left The Omaha National in
August, 1981, to join the Federal
Land Bank of Omaha as vice presi­
dent and head of the client stan­
dards section.
In addition to completing the
AIB Advance Certificate course in
1968, Mr. Rohn completed the Iowa
Bankers Association Ag Credit
School at Iowa State in 1970, the
Colorado B ankers A ssociation
Graduate School of Banking at
Boulder in 1973 and the American
Management Association course in
1982. He has authored numerous ar­
ticles for livestock and banking
magazines, as well as addressing
many farm livestock and banking
groups. Mr. Rohn also is a contribut­
ing author to a Bank Credit text
book published by Harper & Row.
Northwestern Banker, August, 1984


Norwest Corporation Names^
Scholarship Winners

John D. Woods, chairman of FirsTier Mortgage Co., formerly known
as Realbanc, Inc., has announced
the promotion of Karen J. Kennedy
and Larry J. Richling to vice presi­
Ms. Kennedy, who heads the loan
administration division, joined the
company in 1974 as a loan adminis-



tration supervisor.
Mr. Richling joined FirsTier
Mortgage in 1977 as a mortgage
loan officer.
* * *
Last month, Citibank opened its
second Citicorp Center at 76th and
Dodge in the Crossroads Shopping
Center. The first Citicorp Center, lo­
cated in Westwood Plaza at 120th
and West Center Road, was opened
May 30. A third Center will be opened
in the fall at the Parkfair Shopping
Mall in downtown Omaha.
The newest Center is a free-stand­
ing building featuring two drive-up
ATMs and is designed to be a fullservice facility during the day and a
24-hour cash access center.

Steve Sutton
For Complete Í
Credit Insurance
Service . . .
Call Toll Free in Nebraska 800-742-7335
or call collect 402-475-4061

Steve W. Sutton
Bank Programs for
Vice President
Group «Individual Life«Accident & Sickness



Where BENEFIT is more
than a middle name
Lincoln, Nebraska 68508

Banker, August, 1984
Federal Reserve Bank of St. Louis

Ten students, children of parents
who are employed by various Nor­
west institutions in Nebraska and
western Iowa, have been awarded^
scholarships from the Norwest Cor­
poration Scholarship Program. They
are: Norwest Bank Omaha, N.A. Mark Hansen, Scott Koenigsman
and Jeffrey Vogt; Norwest Bank^
Omaha South, N.A. - Barbara Hoelting; Norwest Capital Management
& Trust Company Nebraska - Steven
Cook, Kathryn Eischeid and Mau­
reen English; Norwest Bank Nor-^
folk, N.A. - Bonnie Fendrick; Nor­
west Bank Denison N.A., Iowa
-Mark Neddermeyer; and Norwest
Bank Hastings, N.A. - Randall Kim-,
A total of 114 scholarships cover­
ing tuition and academic fees for full­
time, post-high school education
programs were awarded by N orw est^
this year. Applicants were measured w
on their educational performance
and leadership ability. Criteria in­
cluded grade point average, personal
and school references, participation^
in school and community activities
and work experience.
Mark Hansen is the son of Rich­
ard Hansen, who is loan clerk at
Norwest Bank Omaha.
Scott David Koenigsman’s father
David, is vice president in the cor­
porate banking division at Norwest
Bank Omaha.
Jeff Vogt’s mother, Florence, is a ^
credit file clerk and has worked at
Norwest Bank Omaha nearly three
Barbara J. Hoelting is the daugh­
ter of Victor D. Hoelting, vice presi-^
dent, metropolitan banking, at Nor­
west Bank Omaha South.
Steven L. Cook’s mother, Sharon,
has worked for Norwest Capital
Management & Trust Company for 0
17 years.
Kathryn Eischeid’s father, Larry,
is second vice president and man­
ager of the trust tax division of
Norwest Capital Management & <1
Trust Company Nebraska.
Maureen Ann English is the
daughter of J. Richard English, a se­
nior vice president at Norwest Capi­
tal Management & Trust Com pany#
B onnie F e n d ric k ’s m other,
Jeanne, is teller supervisor at the
(Turn to page 44, please)


Jim Flodine

Tom Jensen

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Northwestern Banker, August, 1984


Mark J. Matthes has been elected
vice president & operations manager
in the First Na­
tional Lincoln
A dm inistrative
Services D ivi­
Mr. Matthes
joined First Na­
tional Lincoln in
1974. He was
named installa­
tion officer in
automated cus­
tomer services division in 1978, op­
erations officer in administrative
services in 1981 and assistant vice
president in 1982.
A native of Lincoln, Mr. Matthes
attended the University of Nebras­
ka-Lincoln and is currently enrolled
in the School for Bank Administra­
tion at the University of Wisconsin.

western National Bank, later Norwest Bank-South.

United Gateway Bank
Charter Approved
The proposed United Gateway
Bank and Trust Company has re­
ceived approval from the Depart­
ment of Banking and Finance for a
bank charter to operate at 61st and
“O” Streets in Lincoln.
Organizers for the bank are:
James F. Nissen, president, Gate­
way Bank & Trust Co., Lincoln,
Glenn Yauffi, Paul C. Schorr, III,
Gene H. Tallman and Judy Adams.
(Continued from page 42)

Norwest Bank Norfolk, N.A. where
she has worked for nearly 10 years.
Mark R. Neddermeyer’s mother,
Marjorie, is customer service officer
at Norwest Bank Denison, N.A.,
Appointed in Fremont
Iowa, and has been with the bank
Daniel C. Dutch has been ap­ since March of 1972.
pointed auditor for First National
Randall Kimminau is the son of
Bank and Trust
James Kimminau, who is auditor at
Company of Fre­
Norwest Bank Hastings where he
mont, according
has worked for 25 years.
to R.M. Fritz,
Formerly as­
Lincoln Hearing Examines
sistant vice pres­
Omaha Offices
ident in opera­
tions for NorA hearing to probe the legality of
west Bank Oma­
the two Citicorp Centers opened re­
ha South, Mr.
cently in Omaha by Citicorp Credit
D u tc h jo in e d
Services was conducted last month
Omaha National in 1955 as a teller. by the Nebraska banking depart­
He then moved to Douglas County ment. Although the results were in­
Bank and Trust in 1961 as a man­ conclusive, Banking Director Roger
agement trainee and was later ap­ Beverage scheduled a trip to the
pointed assistant cashier. He joined Citicorp Omaha offices for July 31
the South Omaha Bank as auditor in to examine the physical premises
1964. In 1973 he moved to North­ and the procedures followed in utiliz
Banker, August, 1984
Federal Reserve Bank of St. Louis

ing ATMs to handle customer ac­
Dee Kalligar, attorney for Citi­
corp, who developed the Citicorp
sales offices that are tied to Citibank
South Dakota, N.A., said Citicorp’s,
activities are “ 100 % legal; they fully*
comply with federal and state statu­
tes.’’ He added that “federal statu­
tes clearly permit the soliciting of
customers nationally.”
Protestors from several banks*
and the Nebraska Bankers Associa­
tion noted that the issue is whether
Citicorp can open the service offices
to solicit deposits, then by a techni-^
cal move with ATMs or mail have
those solicited deposits shipped outof-state to Sioux Falls. NBA’s
General Counsel Bill Brandt said,
“Isn’t it still considered improper to^
do something indirectly that you
can’t do directly?”
The two Omaha Citicorp Centers
will be joined by a third one in that
city in October. Together, the three j
will have 21 employees and they will
continue to solicit Nebraska funds
to be shipped out-of-state, Mr. Kal­
ligar stated.
Two banks who availed them- (
selves of the opportunity to question
Citicorp representatives were Doug­
las County Bank & Trust Co. of
Omaha and Southwest Bank and
Trust Company of Omaha.
Clerks in the Citicorp Centers
open new accounts, the customer
sends the deposit by mail to Citi­
bank South Dakota, then the custo­
mer can access the account by check i
or ATM.

Copple Pleads No-Contest
Federal and state officials in Ne­
braska accepted a no-contest plea '
last mont from S.E. Copple, 87-year
old former president of the Common­
wealth Savings Co. of Lincoln,
which failed last fall while he was its
president. The plea exempts him*
from further prosecution in ex­
change for cooperating with the con­
tinuing investigation into the deal­
ings that led to Commonwealth’s
The maximum penalty he can re­
ceive on each charge is five years in
prison and $10,000 fine. In county
court he pleaded guilty to making a (
false entry to deceive state exami­
ners. In federal court he pleaded
guilty to false entries in the books at
Security Savings Co. in Beatrice,
which his family owned and oper­


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Northwestern Banker, August, 1984


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Banker, August, 1984
Federal Reserve Bank of St. Louis


Keystone President Named

IYBA Officers Attend
PEP Meeting in Washington
Barbara Marcus and Raymond
©Schirmer recently represented the
Iowa Bankers Association at the
American Bankers Association PEP
States Meeting last month at the
W ashington M arriott Hotel in
©Washington, D.C. They are presi­
dent and vice president respectively
of the Iowa Young Bankers Associa­



The IYBA is responsible for the
administration of the PEP program
in the Iowa region. Ms. Marcus is
cashier at Maquoketa State Bank
(©and Mr. Schirmer is vice president
and controller of Norwest Bank
Marion, N.A.
Highlights of the meeting included
training in the use of a newly devel­
o p e d economic education package
for grade school students; and pre­
sentations from representatives of
the American Association of School
Administrators, The Joint Council
#of Economic Education and 1984’s
National Teacher of the year.
The Personal Economics Program
is a volunteer effort of bankers
working with educators to supple^ n e n t educational programs by mak­
ing presentations on topics such as
personal finance, banks and banking
and the financial system.

*IBA Sponsors Financial
Planning Institute
The Iowa Bankers Association is
^sponsoring a Financial Planning In® titute to be presented in six parts
Federal Reserve Bank of St. Louis

during the months of August through
January at the Scheman Center in
Course agenda has been broken
down into six parts: Introduction to
Financial Planning; Risk Manage­
ment; Investments; Tax Planning
and Management; Retirement and
Estate Planning, and Counseling
Skills, Computer Analysis and Case
Faculty for the institute includes:
David C. Craig, partner of Brown,
Winick, Graves, Donnelly and Baskerville in Des Moines; Tahira K.
Hira, assistant professor in the de­
partment of family environment at
Iowa State University, Ames; Mark
L. Power, assistant professor of in­
surance at Iowa State University;
August R. Ralston, associate profes­
sor of insurance and risk manage­
ment at Iowa State University;
Roger D. Stover, associate professor
of banking and finance at Iowa
State University; Howard E. Van
Auken, a ssistan t professor of
finance at Iowa State University,
and Marvin Winick, managing part­
ner of Brown, Winick, Graves, Don­
nelly and Baskerville in Des Moines.
The institute will run from 8-4:30
on August 28-30; September 25-27;
October 23-25; November 27-29; and
January 2-4 and 29-31. For more in­
formation contact Lee Schenk at the
Iowa Bankers Association in Des

National Charters Approved
Several banks recently received
approval from the Comptroller of
the Currency to convert from a state
to a national charter. They are:
Security Savings Bank, Scranton,
under the proposed title of Security
National Bank, and The Lone Rock
Bank, Lone Rock, under the pro­
posed title of The Lone Rock Bank,
Cambridge State Bank has filed
an application to convert to a na­
tional charter with the proposed ti­
tle of First National Bank.

Robert G. Róese, president of
Keystone Savings Bank, has been
promoted to chairman and chief ex­
ecutive officer. He succeeds Roland
A. Hellwig as chairman. Mr. Hellwig retired in June after 39 years of
service. In addition, Steven L. Wil­
son was promoted from executive
vice president to president and
Grace Wiese was promoted to vice
president and cashier from cashier.
Mr. Hellwig joined the bank in
1945, was named president in 1970
and has served as chairman since

Joins Treynor State Bank
Richard Purdy has joined Treynor
State Bank as ag loan officer.
A 1977 gradu­
a te of Iow a
S ta te U n iv er­
sity, Mr. Purdy
has a BS degree
in ag business
and a minor in
farm m anage­
ment. He pre­
viously was em­
ployed by the
Southwest Iowa
Farm Business Association, where
he has been since 1977. He is also a
licensed real estate salesperson.

Four Join Hills Bank
Hills Bank and Trust Company,
Hills, has announced that August
Steffen has joined the bank as an in­
surance officer. Prior to joining the
bank, he was with the White Insur­
ance Agency in Coralville.
Three recent graduates of Iowa
State University have joined Hills
Bank and Trust in its management
trainee program. They are Dale R.
Kretschmar, a native of Tipton who
received a BS degree in animal
science; Tim D. Finer from Thomp­
son whose degee is in agricultural
business, and Kurt Kastendick, an
Alden native with a degree in agro­
The bank also announced the elec­
tion of Earl M. Yoder to its board.
Mr. Yoder, who was also elected to
the board of Hills Bancorporation, is
president of Old Capitol Motors,
Earl Yoder Construction Company,
Kalona Builders Supply Company,
Iowa City Ready Mix, Inc. and
Bryan Mawr Heights Development
Northwestern Banker, August, 1984


Iowa News

Hawkeye Agrees to Purchase UCB
N AGREEMENT in principle
to merge United Central Bancshares into Hawkeye Bancorporation was jointly announced at a
press conference July 20 by Paul D.
Dunlap, president and chief execu­
tive officer of Hawkeye, and Ken­
neth M. Myers, president and chief
executive officer of UCB. Both are
Des Moines-based multi-bank hold­
ing companies. Hawkeye would be
the survivor, with a total of 49
banks in 38 Iowa counties and as­
sets of approximately $3 billion.



The proposal is subject to appro­
val of a favorable vote by holders of
two-thirds of the stock of each com­
pany, as well as approval by federal
and state regulatory bodies. In addi­
tion, to meet Iowa’s 10% statewide
deposit limitation, Hawkeye will un­
doubtedly have to select certain
banks for divestiture (about $150
million deposits are in excess of the
10 % ) .

Mr. Dunlap would continue to be
president and chief executive officer
of Hawkeye and Mr. Myers would
become chairman.
Hawkeye had 36 banks and seven
bank-related affiliates with total as­
sets of $1.9 billion on June 30, and
on the same date, UCB had 13 banks
and three bank-related subsidiaries
with total assets of $1 billion. UCB’s
main bank is United Central Bank of
Des Moines, N.A., which would give
Hawkeye a distinct flagship bank.
The proposed merger will be for a
combination of approximately $10
million cash and approximately
4,000,000 shares of common stock of
Hawkeye Bancorporation. The pro­
posed transaction has a total pre­
sent book value of approximately
$78 million. Details of the offer will
be contained in a joint proxy state­
ment to stockholders of both com­
panies. On June 30, 1984, Hawkeye
had total stockholders’ equity of ap­
proxim ately $134 million and
United Central of approximately
for FRASERBanker, August, 1984
Federal Reserve Bank of St. Louis

number of important business deck
sions will have to be made as merger
$79 million.
plans continue, such as current du­
Mr. Dunlap said the agreement plication of credit card services. “In
calls for UCB shareholders to re­ the area of EDP alone,” he added,
ceive $10 million in cash and about 4 “substantial savings will be realized
million shares of Hawkeye common by operating one major system witn
broad capabilities, as opposed to
Commenting on the proposed ac­ having two expensive systems run­
quisition, Mr. Dunlap stated, “The ning in tandem.”
combination of Hawkeye and United
Central is a perfect match. Both
companies have a solid base of coun­ Dubuque Employees Honored
ty seat trade center banks with mini­
William G. Kruse was recently
mal competitive conflicts. In addi­ presented with a Service Recogni­
tion, United Central has a major pre­ tion Pin for 42
sence in the Des Moines market. The years of service
combination will result in a true by F irs t N a­
statewide banking organization an­ tional Bank, Du­
chored by a large Des Moines bank, buque. O th er
making the company the largest employees who
banking organization in the State of have been with
Iowa and positioning it as a major F irst National
competitor among regional bank for over 20 years
holding companies.’’
an d who r e ­
Mr. Myers stated, “We look for­ ceived recogni­
ward to the advantages which a tion pins were:
combination of the two companies Daniel E. Welu and Amy L. Smith,
will provide both to our customers 37 years; L. Richard Winter and
and stockholders. The banking and Gladys A. Hueneke, 32 years; Wil­
financial services industry is rapidly ma V. Budden, 30 years; John J. Se®
changing. State and federal laws are vary and Paul J. Gisch, 28 years;
being modified almost weekly and Mary J. Coffee, 27 years, and Leo M.
new, nontraditional sources of com­ Mallie, 22 years.
petition are seriously challenging
First National Bank held its em­
the banking industry. To be a survi­ ployees recognition in conjunction
vor today in this new environment, with its 120th anniversary celebra­
it is necessary to have the greater re­ tion on June 20.
sources and expertise of a major
banking organization. The combina­
tion of Hawkeye and United Central Open House Held At
will result in our being of sufficient La Porte City State Bank
size to face the new challenges and,
La Porte City State Bank in La
more importantly, to provide a more Porte City recently held an open
complete line of financial services to house to give area residents an op­
our loyal base of customers. The fi­ portunity to meet the officers an®
nancial strength of the combined or­ directors of the bank and of Peoples
ganization will further maximize our Bankshares, Ltd. and Peoples Bank
stockholders’ value.’’
and Trust Company of Waterloo. La
Hawkeye Bancorporation and Porte City State Bank is owned b ^
United Central Bancshares common Peoples Bankshares holding com­
stocks are traded in the national pany of which Peoples Bank of
over-the-counter market. Hawkeye Waterloo is the lead bank.
has 5,700 stockholders and 6.099
The bank recently introduced a
million shares of common stock out­ new club to its customers which hai^
standing. United Central Bane- free checking in an interest-bearing
shares has over 12,000 stockholders account. The bank also now offers
and 12.554 million shares.
trust, brokerage and record-keeping
One matter that will have to be re­ services and is in the process of in­
solved is what to do about the fran­ stalling a drive-up ATM.
chise agreement signed May 9 by
The open house also served as an
UCB with First Interstate Bancorp, opportunity for customers to meet
Los Angeles. Mr Dunlap was to dis­ Doug Struve a new officer trainee at
cuss this with First Interstate offi­ the bank. Mr. Struve is a recent ag
cials in late July.
business graduate of Iowa Statc^
A Hawkeye spokesman said a University.


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Northwestern Banker, August, 1984


Iowa News

“ Annie” Still A Hit

A GALA evening at the Waterloo Community Playhouse featuring a presentation of the
Broadway hit “ Annie” was recently sponsored by the National Bank of Waterloo. Over 300
bankers and their guests attended the special performance which highlighted the bank’s
Annual Correspondent Bank Party. Pictured above, National Bank of Waterloo hosts Bill
Rickert, (3rd from left), sr. v.p., and Scott Fetner, (far right), pres., welcome Al Breitbach,
pres., Gilbertville Sav. Bk., and Berneice, Joann Fetner, L.C. “Bud” Pike, pres., and T.J.
Heronimus, chmn., Hawkeye Bk. & Tr., Grundy Center, to the theater.

R.W. Buxton Dies
R.W. “Dick” Buxton, 48, chair­
man of the board and president of
Peoples Trust & Savings Bank in Indianola, died of cancer July 16.
Mr. Buxton was well known in
state and national banking circles.
He served as
president of the
Iowa Indepen­
d en t B ankers
A ssociation,
chairman of the
IIB legislative
group and as a
member of the
executive coun­
cil. He had also
served on the
board of ITS, Inc., the management
committee of Iowa Bankers Associa­
tion and the ABA Community
Bankers Division advisory board
and planning and marketing com­
mittee. In 1980 he was elected to the
ABA Council serving as ABA Vice
President for Iowa in 1981.
Mr. Buxton graduated from Indianola High School in 1954. He re­
ceived a bachelor of arts degree from
Simpson College in 1957 and a Mas­
ter of Business Administration de­
gree from the University of Kansas.
He served as a supply officer in the
U.S. Navy from 1957-1960.
Mr. Buxton also had served as
trustee of Simpson College, chair­
man of the Indianola-Simpson Col­
lege Partnership Campaign; cochairman of the Indianola Public
Banker, August, 1984
Federal Reserve Bank of St. Louis

National Bank, and his son, Roger
Jerry Leahy will be chairman and
president of the bank. Roger Leahy
will be chief operations officer, with
the title of vice president and cash­
ier. He will also be a director.
Other organizers are: James Badgett, Jr., Charles Borden III, Clyde
Cleveland, Mark Hansen, Jessie
Nichols, David Nixon, Dennis Wag­
ner and Christopher Wege. The®
agent representing them to the
Comptroller was John R. Baumann
of Fairfield.
Capital of the new bank will be^
$1.5 million, evenly divided between®
basic capital and surplus.
An initial story in the N o r th ­
w e s t e r n B a n k e r Weekly Newslet­
ter identified the charter applicant^
as representing M.I.U.—Maharishi
International University—of Fairfield. Mr. Leahy said the organizers
were acting independently of the
University, although all 10 have
common affiliation with the institu­
Mr. Leahy said it is hoped to have
the new bank in operation by late
October or November. The new Fair®
field National current mailing ad­
dress is P.O. Box 1660, Fairfield la.
52556. The phone number is
Mr. Leahy and his son, Roger®
both are associated with Overland
Sheepskin Co., which has headquar­
ters both in Fairfield and in Taos,
N.M. The thriving business was es­
tablished by another son, James®
who is president of the company.
Fairfield has a population of ap­
proximately 8,500 and has two other
banks—First National Bank, with
deposits last year-end of $51.5#
million, and Iowa State Bank &
Trust Co., with year-end deposits of
$40 million.

Library Building Fund; president of
numerous community organizations
including the Indianola Chamber of
Commerce, Rotary Club, Indianola
Development Corp., and the India­
nola Country Club.
An active tennis player and de­
voted long distance runner, Mr.
Buxton served as a race official for
the Drake University Relays for
many years and established the An­
nual Peoples Balloon Days 10 K and
2 mile Fun Run sponsored by Peo­
ples Trust & Savings Bank, Simp­
son College, and the Indianola Rec­
reation Department.
He is survived by his wife, Nancy,
of 911 Scott Felton Road, Indianola,
and four children. He is also sur­
vived by his parents, Mr. and Mrs.
William Buxton, III. Bill Buxton
was president for many years until
his retirement, and continues to
serve the bank as investment officer.
Memorials have been established
for the Simpson College Athletic De­ Former Des Moines Banker
partment, Indianola Public Library Appointed Director at Drake
Building Fund, and the American
Robert H. Clark, Jr., former vice
Cancer Society.
president of United Central Bank of
Des Moines, N.A., has been ap-^
director of development at
New National Bank Is
Drake University, announced Wil­
Approved for Fairfield
bur C. Miller, Drake president.
Mr. Clark has served as director
Approval of a charter for Fairfield
National Bank was granted May 25 of planned giving at Drake since*
to a group of 10 organizers by the 1980 and prior to that was with UCB
Comptroller of the Currency. Head­ in Des Moines for 12 years as vice
ing the list of organizers are James president. He also was in the bank­
G. “Jerry” Leahy, who was affili­ ing business in Washington, D.C.*
ated several years ago with Pella and Europe.

joining First National in 1983, she tors since 1982 and previously
Banks of Iowa Hosts
was a bank examinor for the FDIC, owned and operated The Paint Store
^Reception at Terrace Hill
in Red Oak.
Iowa District.
Vice President George Bush joined
Ms. Martin is currently manager
Governor Terry Branstad and exec­ of the Westside Branch and has
Two Elected in Mason City
utives of Banks of Iowa, Inc. at a re- been with the bank since 1974.
Kent A. Hall has been elected
dception for delegates to the Iowa As­
Ms. Debbaut, who is responsible
sociation of Business and Industry for the general services and systems agricultural loan officer and Steven
convention on June 15 at Terrace department, joined the bank in 1973. B. Flage has been elected credit an­
alyst at Norwest Bank Mason City,
Hill in Des Moines.
Red Oak President Named
Mr. Hall started his banking ca­
Jerald D. Solberg has been named reer in 1977 with First State Bank of
president and chief executive officer Manly, Hanlontown Office, and in
of Montgomery County National 1981 he joined Norwest Bank Atlan­
Bank, Red Oak. He succeeds Mark tic as assistant cashier and loan offi­
R. Mayne, who has resigned to pur­
sue an MBA in finance at the Uni­ cer.Mr. Flage started with Norwest
versity of M assachusetts. Mr. Bank Mason City in 1983 as a bank­
Mayne will continue as a director of ing trainee. In his new position he
the bank.
will have responsibilities in the cred­
Mr. Solberg has served as execu­ it department.
tive vice president and a director of
F. Forbes Olberg, chmn., Banks of Iowa, the bank since 1982. His previous
Inc., presents a “ Make it in Iowa” barbecue experience includes serving as exec­
apron to Vice President George Bush.
utive vice president at Citizens
State Bank in Postville; vice presi­
® The reception, hosted by Banks of dent of Le Mars Savings Bank, and
i » ! * .ä
Iowa, Inc., had a “Make it in Iowa” 11 years with the State of Iowa De­
theme and featured all Iowa made partment of Banking.
products. Maytag cheeses, Dubuque
Also announced was the election
-jneats and Dubuque Star beer, Hi- of Kenneth Rech as vice president,
®and snack foods, and Des Moines’ effective August 15. Mr. Rech has
Three Tuns wine was served. Other been on the bank’s board of direcS.B. FLAGE
Iowa suppliers included Anderson
Erickson Dairy, Sue Bee Honey,
^Loffredo Fresh Produce and Hudson
roultry. In line with the them, a
“Make it in Iowa” barbecue apron
was given to each guest. The aprons
were produced by Dixon Industries
g^nd Airline Textile Company, both
of Des Moines.
Iowa News

Promoted in Council Bluffs

First National Bank of Council
Bluffs has announced the promotion
of Lee Wicht to
senior vice presi­
dent; Catherine
^Ehlinger to as­
sistant vice pres­
ident and con­
troller; Charlene
Martin to assis­
t a n t vice presi­
dent, and Debra
Debbaut to oper­
ations officer.
Mr. Wicht joined the bank in 1983
t s vice president of operations. He
previously was with Omaha Na­
tional Bank for ten years.
Ms. Ehlinger has a degree in busi­
n e s s administration from Drake
^University in Des Moines. Before
Federal Reserve Bank of St. Louis

Committed to
making your
bank stand
apart from the

Northwestern Banker, A ugust, 1984


Iowa News

George State Bank Holds Open Houses

THE George State Bank hosted two open houses in late June commemorating the comple­
tion of a major remodeling and building addition project for the $30 million northwest Iowa
bank. The bank had been housed in a two-story building from 1934 through 1964, when a
new building was erected adjacent to the old one. The remodeling project involved renovat­
ing the 1964 structure, and tearing down the older building to allow the addition of a 2500
sq. ft. office, meeting and bookkeeping area. The exterior of the building was changed to
give the appearance of one total structure. Nearly 300 area bankers and local businessmen
attended an open house on Friday, June 22, while more than 700 local residents toured the
facilities on Tuesday evening, June 26. The project permitted the bank to increase its staff
by two persons, for a total employment of 12.

Peoples Forms New Division holds earning less than $41,700.00
in BlackHawk county could be eligi­
Introduces Loan Program
R.K. Sverdahl, president of Peo­
ples Bank and Trust Company,
Waterloo, has announced the forma­
tion of a new real estate mortgage
lending division.
John R. Welch, assistant vice
president, will head the new mort­
gage division. Prior to joining Peo­
ples’ last fall, Mr. Welch was selfemployed in Des Moines as an inde­
pendent contractor and previously
served as head of the commercial
lending division at Valley National
Bank, Des Moines.



Jo Ann Parker will move from the
bank’s commercial loan division to
work with Mr. Welch in Peoples
Mortgage. Mrs. Parker joined the
bank in 1973 as a loan secretary.
A new loan program is also now
available through Peoples Bank and
the Iowa Energy Policy Council,
which will make energy conserva­
tion an even better investment. The
Energy Conservation Bank is de­
signed to help low and moderate incom individuals invest in cost effec­
tive energy improvements. House­

Banker, August, 1984
Federal Reserve Bank of St. Louis

ble for up to 50 percent loan assis­
tance. Income levels vary by county.
The program is made possible by
a $780,000 federal grant adminis­
tered through the Iowa Energy Poli­
cy Council and the Solar Energy and
Energy Conservation Bank.

Heritage Bank Succeeds
Farmers National, Aurelia
The Farmers National Bank of
Aurelia was closed June 21 by the
Comptroller of the Currency after it
was declared insolvent due to a string
of bad loans that totally eroded the
bank’s capital. A new national bank—
Heritage Bank, N.A.—was chartered
by the Comptroller to take over the
failed bank’s $18.4 million in
Purchaser was the Geiger Corpo­
ration of Edina, Minn., headed by
Earl Geiger, whose holding compa­
nies own banks in Minnesota and
Iowa. These include The Citizens
National Bank of Madelia and State
Bank of Pennock, both in Minneso­
ta, and Holstein State Bank and
Iowa National Bank & Trust of Lytton, both in Iowa. Mr. Geiger an­
nounced that Randall Carlson, a vice
president of the Holstein State, has
been named president of the new
Heritage Bank. Also, Daniel B. Engler, president, and Robert L. But­
cher, senior vice president, both of
Holstein State, have been elected to
the Heritage Bank board of direc­
tors, along with Mr. Geiger and his

son, Gary, who is chairman of the
Pennock bank.
Don Wieland and John W. Chris­
tensen, Jr., who were vice presidents
of Farmers National, are employed
temporarily in an advisory c ap acity
to the Geiger Corporation, Mr. Engler said.
The new bank has been capitalized
at $1 million, with the $1,112,000
paid as a premium by Geiger Corpo^
ration, going into surplus.
The bank had continued to chalk
up losses on its farm loans for a
number of months. From January 1,
1983, to the end of March, 1984, it^
had to take loan loss provisions oi
$ 1.8 million against a total loan
portfolio of just over $13 million.
The remaining capital of $241,000
evaporated in recent weeks with fu r^
ther losses.
Heritage Bank also purchased se­
lected loans and assets. The FDIC
advanced $8.1 million and retained
assets with a book value of $ 10 .
This year was to mark the 100th
anniversary of founding of the
Farmers National Bank. Organized
in 1884 as a branch of an Illinois^
bank, it was officially chartered as a
national bank in 1910.
The Farmers National office in
Larrabee is retained by Heritage
Bank as an office in the same loca#

Mills Agency Wins Awards
The Mills Agency of Storm Lake#
the agency for Audubon State Bank
and Citizens First National Bank in
Storm Lake, was a double winner in
the 1984 Golden Eagle Advertising
Awards Competition, sponsored b j#
the Bank Advertising News.
The awards received by the Mills
Agency were both in the newspaper
category for ads less than full page,
either color or black and white. Th(#
agency’s entry for Audubon State
Bank won first place, and an ad for
The Citizens First National Bank in
Storm Lake won honorable mention.
The Mills Agency is based iii®
Storm Lake and owned by Tim and
Becki Mills.

chairman and president, First Na­
tional Bank, Sioux Center, and
George H. Perry, president, City Na­
tional Bank, Shenandoah.
Iowa News

President’s Address
Arnold Schultz, in his keynote ad­
dress as I IB president, said, “First,
let me report that Independent
Banking in Iowa is still alive and do­
ing well.” In referring to I IB ’s suc­
cess in the last Iowa legislative ses­
sion in helping kill the regional
banking bill, Mr. Schultz stated,
“The last legislative session also
marked the first time that the two
banking associations in Iowa were
not in agreement on the issue of in­
terstate banking. This major policy
difference on this one sensitive issue
LEADING the MB for 1984-85 are, from left: Immed. Past Pres.-Arnold Schultz, pres., Grundy has created a perception in the
WNatl.; Pres.-Ned K. Job, pres., Iowa State Savings, Knoxville; V.P.-Larry Grimstad, exec, v.p., minds of a few that the two organi­
Security B&T, Decorah, and Treas.-Jock D. Stevenson, pres., First T&S, Cedar Rapids.
zations differ on most issues. In ad­
dition, the formation of a Political
Ned Job Is Elected MB President
Action Committee for the Iowa In­
dent of Iowa Trust & Savings Bank, dependent Bankers and the endorse­
ment of several ‘service type pro­
The new board selected Jock D. grams’ has to a few also been inter­
preted as an attempt by IIB to pur­
ONTINUED emphasis on the Stevenson, president of First Trust posely be in competition with pro­
advantages and contributions & Savings Bank, Cedar Rapids, as grams sponsored by the IBA.
• o f independent banks to the commu­ treasurer for a two-year term to
“Let me set the record straight—
nities of America was a uniting replace William P. Wilson, president
and now—and state that the
theme heard throughout the 13th of Oelwein State Bank.
IIB has neither the desire, the in­
annual convention of the Iowa Inde­
tent, nor the capacity to replace or
pendent Bankers at Lake Okoboji president and general counsel is duplicate the many excellent pro­
•«July 19-21. Ju st as decisive was the Richard W. Berglund, Des Moines.
message from nationally noted Also continuing as executive direc­ grams that are being offered by the
speakers that the economic recovery tor at Des Moines headquarters is IBA. However, we must continue to
be alert and respond to the needs of
will continue at a strong pace Diane Gibbs Berglund.
Five bankers were elected to three- our members, especially in those
through 1984 and into 1985, and
^possibly throughout the entire com­ year terms on the I IB board of direc­ areas which are unique to indepen­
ing year. Accompanying that opti­ tors: Larry Arendt, president, Gib­ dent banks. Alternative type pro­
mistic prospect for the national eco­ son Savings Bank; Ronald D. Did- grams have beeen endorsed in the
and others may be in the
nomic health was the just as per­ dy, president, First National Bank, past,
but the intent is not just to
p le x in g analysis that no recovery for
or disrupt programs being
A griculture is on the horizon without
other trade associations,
a drastic change in federal deficits, Marshalltown; Vernon P. Mouw,
to our members re­
interest rates, ag prices and export
(Emphasis by
Mr. Schultz.)
New Officers
Mr. Schultz said the IIB execu­
While the members were listening
tive council earlier this summer de­
to these analyses by speakers, they
veloped a Suggested Mission State­
took time out for an annual business
ment and some long range objec­
session. Ned K. Job, president of the
tives. These included being repre­
iD owa State Savings Bank in Knox­
sentative and a spokesman to the
ville, was named I IB president for
Iowa legislature, regulatory agen­
1984-85. He succeeds Arnold
cies, other trade associations, banks,
Schultz, chairman and president of
customers and the general public;
The Grundy National Bank in Grunmaintain communications to IIB
•d y Center.
members on matters of vital inter­
The new vice president is Larry
est; provide optional member ser­
Grimstad, executive vice president
vices the IIB can provide in an eco­
of Security Bank & Trust Company,
nomical and cost-effective manner;
Decorah. That position was held the IBAA Pres. Jack King and MB Exec. V.P. maintain a constructive, positive im­
•p a st year by David Taylor, presi­ Dick Berglund.
age for IIB.

Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1984

Iowa News
Mr. Schultz said “Another item
which was discussed during our
planning session was whether Iowa
Independent Bankers want a Bank­
ers’ Bank...Some of us have mixed
feelings concerning the need, since
we have some excellent independent
banks providing correspondent ser­
vices. However, I believe the time
has arrived to further study and see
if a need exists for this type of orga­
Mr. Schultz closed by asking I IB
members to keep in mind the serious
condition of the Iowa ag economy,
but also keep in mind that “the sun
will come up again” and that a posi­
tive attitude about the future of Ed Claussen, pres., Farmers State Bank,
farming in Iowa must be maintained Schleswig, visits with Bill Rickert, sr. v.p.,
by lenders to encourage customers Natl. Bank of Waterloo.
and the entire public.
Republican Representatives work
together better than any other state
New President’s Remarks
delegation. We are good friends, and
In his acceptance speech, new I IB that is as it should be.” Both men
President Ned Job said: “I still feel stressed the absolute necessity of re­
that regional interstate banking, as ducing the massive federal deficit,
currently being proposed across our but viewed differently how it came
nation, is not in the best interests of about and how it should be handled.
independent banking, and it is not in
Referring to the slump in the ag
the best interests of the banking economy, Rep. Bedell said, “We’ve
community as a whole. I feel that come off of four years of the most ex­
the Regional Interstate Banking pensive programs we’ve ever had,
proposals, now being considered and yet we have the largest number of
adopted by some regions across our farmers with economic problems in
nation are unconstitutional, and years. I think we’ll have a hard time
they are already, and will continue passing legislation anywhere near
to be, challenged in the courts. I the magnitude of the past farm pro­
believe these court challenges will be gram. I think its fair to say also that
upheld, and when that happens, we there will be changes in the USD A,
will get down to dealing with the and we’ll be open to any new sugges­
real issue which is full interstate tions.” He blamed the total federal
banking on a national scale.
deficit problem on President Reagan
“My basic banking philosophy is since 1980.
very simple. I believe our country is
Rep. Cooper Evans pointed to
great because we have kept the “the high resurgence in the national
wealth of our communities entrusted economy—more people employed,
in the hands of our local community with higher incomes—but we point
financial institutions, who have rein­ out that our national leaders fail to
vested their funds in the develop­ recognize and understand the di­
ment of the communities in which mension of the (ag) problems here.”
they belong and are located.
He pointed out that of the 27 states
“ I feel it will be a very sad day for that have experienced a drop in farm
our country if we ever change this land values, Nebraska and Iowa lead
method. ’’
the pack, a dubious honor. Mr.
I IB Executive Vice President Evans also said the best answer to
Dick Berglund reviewed bills that Iowa’s farming problem is a reduc­
were passed in the recent Iowa legis­ tion in the federal deficit “and the
lature, and pending bills in Con­ Iowa delegation is pursuing this. I
think Senator (Richard) Grassley
has offered the best approachIowa Congressmen Speak
Two of Iowa’s Congressional Rep­ freeze spending.
“We’re supposed to take in $100
resentatives appeared as a panel to
discuss the national economy, and billion more in revenue this year
and, if the recovery continues, then
the ag economy in particular.
Berkeley Bedell stressed how another $100 billion more the follow­
“Iowa’s three Democrat and three ing year. If th a t’s true, we’d be
for FRASERBanker, August, 1984
Federal Reserve Bank of St. Louis

closer to a balanced budget in two
years.” He also referred to the#
FmHA as “a miserable organization
to work with because of the vast ar­
ray of work it’s faced with.”
Mr. Evans also said “we can’t
have the FmHA take farm land and#
dump it on the market. They can
hold land right now for three years
and they have two options: 1. Idle it,
which I hope they will, and 2 . lease it
to family farmers, whatever that is #
The FmHA can hold the absorb a
loss. The Federal Land Bank told us
they’re not dumping land. Private
owners can’t be expected to do this,
but if banks can hold land they’v #
taken back, it would help. They
could take the land to the ACS and
lease it out and I think we can work
that out with the legislature.”
Both men felt the big focus fo #
federal budget deficit reduction
should be on the defense spending
area—without hurting the basic
thrust of defense. Rep. Bedell saicL
“the reality is that to say the Presi­
dent calls for a balanced budget is
demagoguery,” stating that Con­
gress merely approves the budget
the President requests.
However, Rep. Evans stated, “r
wouldn’t blame the President. He
has to work on the framework of
government as voted by Congress
with the problems mandated b ^
Congress for many years. So it isn't
truly the President’s budget—it’s a
Congressional budget the President
is obligated by law to fund—and his
request for funding must be ap^
proved by Congress. In doing so, we,
as Congress, are approving the
President’s funding of programs
we’ve told him we wanted by our
previous votes!”
Other Speakers
Alice Rivlin was an exceptionally
talented speaker who won resound­
ing applause from the bankers for
her very perceptive analysis of t h ^
budget problem and the suggestions
that she and her colleagues at the
Brookings Institution have formu­
lated and passed on to Congress.
Mrs. Rivlin is director of economic#
studies at Brookings in the nation’s
capital. Her comments were re­
viewed in the July 30 Weekly News­
J. Michael Deege, senior vice pres-®
ident, Bankers Trust Co., Des
Moines, reviewed “ The Public
Funds Issue,” explaining answers to
some of the problems and q u estio n ^
that have surfaced since SF 222C#

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Federal Reserve Bank of St. Louis

Iowa News
was enacted. That bill requires
pledging to cover public funds and
does away with the sinking fund as
of July 1, 1985.
Dr. William Freund, senior vice
president and chief economist for
the New York Stock Exchange, said
“our expansion is broad-based and I
expect it to go into 1985 and maybe
all of next year. It is coming from
consumers, expansion of inven­
tories, expansion of new business
capital spending and defense spend­
ing—but the primary cause of non­
recovery is exports, which affects
agriculture.” Dr. Freund described

potential auto worker strikes as “an
ominous cloud that could pull us
back some,” but added that “the
real dark cloud is the federal budget
deficit. I t ’s putting a lid on stock
and bond prices.” Like other speak­
ers, he called for a combination of
tax increases and healthy spending
cuts. “ If we do this, I am an unmiti­
gated optimist about the future of
this nation.”
Dr. Karl Scheld, senior vice presi­
dent and director of research at the
Federal Reserve Bank of Chicago,
said too many people try to secondguess the actual intent or potential

result of Fed policy moves which
“are rarely dramatic.” He also sees^
the recovery going into 1985, but ex­
pressed concern over the lack of re­
covery in agriculture and other se­
lected fields.
Richard Scammon, director of»
Elections Research Center and elec­
tions analyst for NBC Network
News, Washington, D.C., gave an
entertaining and perceptive look at
how people vote and what make#
swings in blocks of votes. He ex­
pects the 1984 House to stay
Democrat and the Senate to be even,
depending on how close ones like

PICTURED at poolside reception hosted by Bankers Trust Co., Des Moines, were (from left): Jean and Herman Kilpper, pres., BTC; Donna
and Bill Wilson, pres., Oelwein State; Flo and Larry Frowick, sr. v.p., host bank; Marilyn and John Juergens, pres., Farmers Savings, Colesburg; Vera and Ben Eilders, sr. v.p., BTC, and Barbara and Christy Armstrong, dir. and consultant, American T&S, Dubuque.

IIB PRESIDENT Arnie Schultz (left), pres., Grundy Natl., greeted Iowa Congressman Berkeley Bedell and Cooper Evans, and MB Vice Pres.
Dave Taylor (right), pres., Iowa T&S, Centerville, introduced them for a panel session. RIGHT—Mr. Schultz is pictured with Mrs. Alice Riv0
lin, dir. of econ. studies, Brookings Institution, Wash., D.C.

ST. BERNARD S of the fairways, supplying cool drinks to hot golfers with the compliments of Natl. Bank of Waterloo were Erle Schmiesing, cash., and Milt Hennick, sr. v.p. RIGHT—Bernie Miller, v.p., American T&S, Dubuque, presented golf trophy from his bank to Keith«
Campbell, pres., Citizens State, Sheldon, who had a low gross of 67, net 62.
Banker, August, 1984
Federal Reserve Bank of St. Louis

Iowa News


LEFT — Ed Johnstone, pres., Keokuk Savings B&T; Dale Anderson, sr. v.p., First T&S, Remsen; John Hoyt, McGladrey Hendrickson & Pul­
len, Des Moines, and Delbert Harken, v.p. & cash., Ackley State. RIGHT—Howard Logan, pres., First T&S, Moville;Jim Willmore, exe v.p.,
Security State Hubbard; Craig Ross, dist. repr., IAC, Des Moines, and Neil Milner, exec, v.p., Iowa Bankers Assn., Des Moines.

LEFT—Mike Bauer, 1st v.p., Davenport B&T, and Dan Doyle, pres., Wellman Savings. RIGHT—(cart in foreground) Larry Arendt, pres., Gib­
son Savings; Gene Myers, Havelock office mgr., Laurens State; (second chart) Rod Tangeman, pres., Security State, Guttenberg, and Jim

THE KING AND QUEEN were a little leery of the great honor just bestowed on them. King Blake wasn’t sure he wanted new 11B Pres. Ned
^ o b holding him so he kept one arm around the neck of his mother, Brenda, whose husband is Jan Skola, pres, of Farmers Savings,
Kalona. Queen Anne felt better while being held by her father, Bob Chittenden, pres, of Farmers Savings, Mitchellville, but she wasn’t too
sure about the photographer! RIGHT—Convention speaker Dr. William Freund (extreme right) is shown with Dick Berglund, MB exec, v.p.,
and MB exec. dir. Diane Gibs.

ilow a and a few others come out.
“All in all, not a great deal different
than what we have now...The final
analysis is how well the Democrats
bring back the dissident Democrat
V oters.” He listed four controlling
factors as the white southerners, the
male vote, Catholic votes, and farm
Tom Huston, Iowa superinten­
d e n t of banking, told IIB ’ers at the
closing luncheon, “We have an ex­
treme problem in Iowa as I view it. I
hope I ’m not overemphasizing it.’’
Hie said of the 197 Iowa state-char­
te r e d banks examined this year,
Federal Reserve Bank of St. Louis

classified loans to capital is at 50.8%
and could push 60% by year-end,
since it’s going up two points per
IBAA national president Jack
King, president of Valley Bank in
Kalispell, Mont., was the final
speaker and stressed the need for
passing the House bill that would
close the non-bank loophole. He re­
viewed the steps IBAA has taken to
meet with House and Senate lead­
ers, both in direct testimony and in
visiting with committee leaders. He
also reviewed IBAA’s proposal to
have FmHA make available $1 bil­

lion in loan guaranties to help
resolve some of the farm problems. □

Algona Election Told
Paul H. Johnson, president of
Iowa State Bank, Algona, has an­
nounced the election of Dennis Dingel as farm management officer.
Mr. Dingel is a graduate of Iowa
State University with a BS degree in
ag education. He most recently
taught vocational ag on the high
school level and was involved in
farming near Harris.
Northwestern Banker, Avgust, 1984


J P .I A M F S

John Sikkink, executive vice pres­
ident of operations and administra­
tion at Norwest
B an k
M oines, N.A.,
and regional op­
erations liaison
for Norwest Cor­
p o ratio n ’s Re­
gion IV, has
been named se­
nior vice presi­
dent and man­
ager of Norwest
Electronic Delivery Services, Inc. at
Norwest Corporation in Minneapo­
lis. He will report to Walter R. Mil­
ler, Jr., executive vice president, re­
tail banking group.
NEDS is the umbrella organiza­
tion for the marketing, sales, and de­
livery of all Norwest electronic
funds transfer programs. It pro­
vides both affiliate and non-affiliate
financial institutions with an elec­
tronic clearinghouse capability for
EFT-based transactions. NEDS pro­
vides systems support for Norwest’s
Instant Cash network, which oper­
ates automatic teller machines at
more than 300 locations in seven
states. The Iowa Transfer System of
which Mr. Sikkink is a board mem­
ber, has recently entered into an
agreement with NEDS to use Norwest’s Instant Cash network and
more than 4,000 ATMs of the na­
tional CIRRUS System, Inc. Nor­
west is a founding member of CIR­
Mr. Sikkink joined Norwest Bank
Des Moines as a programmer in the
electronic data processing depart­
ment upon graduation in 1962 from
Central College, Pella. At the Des
for FRASERBanker, August, 1984
Federal Reserve Bank of St. Louis

Moines bank he has held positions
as systems analyst, program man­
ager of EDP, assistant cashier, man­
ager and assistant vice president of
operations research and advance
planning, senior systems officer,
vice president and senior vice presi­
dent in operations and EDP. He as­
sumed his present position in 1981.
* * *



n i FQ FK I


Mr. James started with HawkeyeCapital in 1983 as a commercial loan
Ms. Olesen transferred to the
trust department of Hawkeye-Capi­
tal in 1983 following five years at
the Lake City State Bank, Lake Ci-



Mr. Weaver has been with the
bank since 1981, during which time
he has served as a teller and trust
Ms. Whitney’s responsibilities
will include training, business devel­
opment, sales, public relations and
advertising. She is a graduate of
Iowa State University.
* * *

Hawkeye Insurance Services Inc.,
a subsidiary of Hawkeye Bancorporation, has acquired the McManusGreene Co. of Sioux City and the
Dunkerton-Reibsamen Agency of
Marshalltown, both insurance bro­
kerage firms.
Terms of the acquisitions were
not announced and Hawkeye said it
plans no changes in personnel at
Jim Eiler, senior vice president of
either of the agencies.
United Central Bank of Des Moines,
* * *
N.A., recently graduated from the
Stonier Graduate School of B ank^
Hawkeye-Capital Bank & Trust ing.
has announced five recent promo­
The three-year program con­
ducted at Rutgers University in
New Brunswick, N.J., involves ex­
tensive study in bank-related to p ic s
O’Hara to senior
of lending, asset/liability manage­
vice president;
ment and finance.
Jeffrey P. James
Prior to joining UCB, Mr. Eiler
to credit card of­
was president and CEO of First Na­
ficer; Patricia
tional Bank in Colfax.
* * *
t r u s t officer;
Financial Systems Network Cor­
Kirk D. Weaver
poration, an Iowa-based corpora­
to accounting officer, and Mary Kay tion, has announced the election oU
Whitney to marketing and sales offi­ Harold Gandy as president and chiei
operating officer.
Mr. O’Hara joined the bank in
Mr. Gandy formerly was with
1981 as senior trust officer and was Bankers Trust of Des Moines as se­
advanced to vice president in July, nior vice president. He also held p o ^
sitions with Marine National Ex-




Vern Hoskinson
Vice President - Operations

United Central Bank’s Cash Management
Services are designed to achieve results —
improve cash flow, maximize investments,
and reduce personnel time in daily opera­
tional details.
Improve your bank and customers’ perfor­
mance by reducing expenses and increasing
profits with a coordinated Cash Management
system at United Central Bank.

Federal Reserve Bank of St. Louis



Iowa News
change Bank in Milwaukee, NCS in
Minneapolis and Norwest Bank Des
Moines, N.A.
Financial Systems Network was
formed to develop software, termi­
nals and a communications network
to provide EFT services to financial
* * *
Norwest Bank Des Moines, N.A.
recently announced the addition of
Kent C. Mericle
as assistant vice
president and
manager of Nor­
west Bank Inter­
n a t i o n a l Des
Moines Office,
and the promo­
tion of Mark S.
Alvord, Debra S.
Ayers, James D.
Galloway and
James A. Jones to operations officers.



Mr. Mericle will work closely with
the international banking group of
Norwest Bank Minneapolis, N.A.,
where he formerly served as interna­
tional banking officer. Prior to that
he served eight years with National
City Bank in Minneapolis.
Mr. Alvord joined the bank in
1972 as transit clerk. He joined Nor­
west Information Services in 1979
and in 1981 was named supervisor of
data processing operations.
Ms. Ayers started with the bank
in 1977 in teller operations. She was
named supervisor of research in
1978 and assumed the additional
supervision of return items and ex­
ception items departments in 1983.

Northwestern Banker, August, 1984
Federal Reserve Bank of St. Louis

Mr. Galloway, with Norwest Waterloo Director Elected ^
Bank since 1978, was most recently
Peoples Bank and Trust Com­
named supervisor, input/balancing,
Waterloo, has announced the
operations in 1982.
appointment of
Mr. Jones started with Norwest Thomas C. W att
Information Services in 1980 as a to the bank’s
computer operator and most recent­
ly was named supervisor of special tors.
M r.
W att,
* * *
vice president
-East District of
David N. Walthall, president of Iowa Public Ser­
Hawkeye-Capital Bank & Trust, and vice Company, is
James M. Earley, president of a native of Sioux
c W
Hawkeye Bank & Trust of Des City, where he
Moines, have announced the organi­ attended Morningside College ah#
zation of a Very Important Citizen’s received his BA degree.
Club for Des Moines’ retired citi­
zens. The VIC Club will provide a
wide range of financial products and Peoples Bank Installs
ATMs in Area HyVees
social activities for members.
Mr. Walthall stated the VIC Club
Peoples Bank and Trust Company
members will be entitled to receive of Waterloo and HyVee Food Stores,
special financial privileges such as Inc. of Chariton, have announced an
free checking, safe deposit box dis­ agreement with all five HyVee
counts, free traveler’s checks and Stores in the Waterloo/Cedar F a l#
money orders. In addition, members Metropolitan area and Peoples Bank
will receive a monthly newsletter for installation of ATMs. The Hy­
and discounts from participating Vee units will allow customers to
conduct a variety of banking
According to Mr. Earley, there transactions while at the store. •
will be a variety of social programs
In making the announcement,
developed for VIC members. These Peoples Bank’s President R.K. Sverwill include group tours and travel dahl stated that, “This expanded
opportunities, as well as seminars HyVee ATM project was part of a
and monthly movie presentations.
corporate agreement between Pe®
To qualify for membership in the pies Bank and HyVee, involving cor­
VIC Club individuals must maintain porate banking relationships for all
a $5,000 minimum balance in a five HyVee stores, ATMs, and in the
Money Market Savings Account future, additional electronic banking
with Hawkeye-Capital Bank & services and applications.
Trust or with Hawkeye Bank &
Trust of Des Moines. There are no
Named in Estherville
membership dues or fees.
Kenneth R. Malecha has been
named assistant vice president an®
ag loan officer of United Central
Appointed in Marion
Marty Carter has been appointed Bank & Trust Company, Estherville.
A graduate of the University of
assistant vice president of Farmers
Mr. Malecha started hig
Bank ,
banking career in 1981 with No®
Marion, accord­
west Bank of Minneapolis and has
ing to Morris F.
with Norwest Bank Northfield
Neighbor, chair­
the past two-and-a-half years.
man and Clair J.
Lensing, presi­
Joins Oelwein Staff
Mr. Carter,
Richard R. Park, president of
who is a gradu­
First National Bank of Oelwein, has
ate of Northwest
announced the addition of Leroy
Missouri State
Sandven as agricultural loan officei#
Mr. Sandven, a graduate of Con­
University, will
be working in the consumer loan cordia College in Moorhead, Minn.,
department. For the past five years has worked the last ten years for
he was collection manager and loan Farmers Home Administration and
officer for Collins Credit Union in has been engaged in his own farm ing
Cedar Rapids.

Iowa News

^Charitan Bank Announces
Additions and Promotions
National Bank & Trust Co. of
Chariton recently announced the ad­
dition of Jim Fuller as assistant vice
p re sid e n t and Debra Kirchner as
loan officer, and the promotion of
Vicki Johnson to trust administra­
tive officer and Sandi Hoch as ad­
ministrative officer and secretary to
^;he board.
Mr. Fuller attended Central Col­
lege and has 15 years background in
insurance, real estate and instal­
ment lending. Ms. Kirchner has ten
^ e a r s of instalment loan experience,
with the last six years in a banking
Ms. Johnson has been with the
Jbank since 1976 and has worked in
bookkeeping as a teller and in the
time certificate area. Ms. Hoch
joined the bank in 1976 and pre­
viously worked in the bookkeeping
j^rea, as a teller and as manager of
b h e Motor Bank.

Norwest Center Plans Unveiled

GROUNDBREAKING ceremonies were held last month in Fort Dodge for a new Norwest
Center, a $4.5 million, 52,000 square foot office and retail building. Hubbell Realty Co. of
Des Moines developed the project which will have Norwest Bank Fort Dodge as its major
tenant, occupying approximately 60 percent of the building. Norwest Center is financed in
part by a $1 million Urban Development Action Grant and includes a four-story office
building, a drive-up bank and surface parking lot.

cility last month, located on the cor­
ner of Highway 20 and East 5th
The new facility, which will house
First Federal’s new check process­
Stanhope President Retired
ing center, has 2,200 square feet of
l^New Officers Elected
office space along with four drive-up
John A. Walker, president of stations and room for expansion to
Farmers State Bank, Stanhope, re­ six drive-ups.
tired July 1 after 27 V2 years of ser­
“We’re pleased to be a part of the
vice to the bank. Mr. Walker had downtown re-development,” says
©continued as president of the bank Jack Miller, bank president, “and
following its purchase by Bob Van feel that our new facility along with
Diest and his wife of Webster City. our existing bank building will help
Norm Skadburg has been elected create a fresh and modern look to
president of Farmers State and Bob visitors entering the downtown
©Van Diest has been elected chair­ area.”
man. Jeff Plagge, executive vice
president, has been named executive
vice president and cashier and will Two Officers Elected At
also serve as secretary to the bank’s Norwest Bank Sioux City
Norwest Bank Sioux City’s board
Doug Follman has been elected of directors has elected Steve Navin,
a ss is ta n t vice
correspondent bank officer, and
president of the
Charles Habhab, trust officer.
bank. A native
Mr. Navin, who currently lives in
^of Massena, he is
Omaha, will remain a second vice
a graduate of
president of Norwest Omaha. He
Iowa State Uni­
will serve as a client executive in the
versity and pre­
correspondent bank area for both
viously was em­
ployed by First
Mr. Navin joined the Omaha bank
State Bank of
in 1977 and has a business degree
from the University of Nebraska
An open house
and has graduated from Southwest­
was held in July in honor of Mr. Wal­ ern Graduate School of Banking at
t e r ’s retirement.
Southern Methodist University.
Mr. Habhab joined the bank Octo­
First Federal, Waterloo
ber, 1983, as a trust administrator.
Opens Drive-Up Facility
He obtained his degree in financial
© First Federal Savings Bank, management from the University of
Waterloo, opened a new drive-up fa­ Iowa before attending law school at
Federal Reserve Bank of St. Louis


the University of South Dakota.
Mr. Habhab, a native of Fort
Dodge, entered private practice
upon finishing school, in Fort

Belmond Officer Named
Philip C. Knudtson has joined the
staff of First State Bank, Belmond,
as a loan officer and assistant vice
Since 1980, Mr. Knudtson has
been in charge of lending at Norwest
State Bank in Keokuk as vice presi­
dent of the bank. Prior to that time
he was an examinor for the FDIC.


Index of
AUGUST, 1984

Bankers Trust Company, Des M oines............
Barclays American/Business C re d it..............

. . .46

Central Bank of Denver....................................


Darien Microsystems, Inc................................
Drovers Bank of C hicago................................

. . .17
. .6-7

F & M Marquette National Bank, Minneapolis
FN Bankware, O m aha......................................
First Bank Minneapolis/St. Paul......................
First Interstate Bancorp...................................
First National Bank, Lincoln............................
First National Bank, O m aha............................
First National Bank, St. Joseph......................

. .

Gross, Kirk Company, W aterloo......................

. . .55

Iowa Bankers Insurance & Services, Inc.........

. . .49

Kooker, E.F. & Associates................................

. . .52

Lincoln Benefit Life Com pany........................

. . .42

Merchants National Bank, Cedar Rapids


National Bank of Commerce, Lincoln............
North Central Life Insurance C om pany........
Norwest Corporation........................................

. . .40
. . .64




... 5
... 3
. . .45
. . .43
... 9

Office Concepts, Ltd., Waterloo......................

. . .51

United Central Bank, N.A., Des Moines..........
United Missouri Bank of Kansas C it y ............

. . .59
. . .10

Northwestern Banker, August, 1984

No Company,
Anywhere In The
United States,
Can Give
Your Bank
As Much Help
In Running
A Smooth,
Profitable Credit
Operation As
North Central

Protection all ways

North Central Life Insurance Company

In Minnesota call 800-792-1030.
In Iowa, Wise., North and South Dakota 800-328-1612.
All other states 800-328-9117.
Federal Reserve Bank of St. Louis

Compare For Yourself.
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Special Programs for the Large

Computer-based Measurement and
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Your Business

Nation-wide Toll-free WATS Service

Personalized Training For Your
Support Personnel

Instant, Over-the-phone Rate
Calculations For Difficult Loans

Simplified Procedures Manuals For
Administrative People

Instant, Over-the-phone
underwriting approval for over-limit

Complimentary Sales Aids,
Brochures and Point-Of-Purchase

Sales and Insurance Training
Programs Designed for Bankers

Free Analysis of Your Current
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Incentive Plans to Help Increase
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“Captive Company” Capability

Professional, Experienced Account
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If You’re Not Getting All Of These Services From Your Current Credit
Insurance Carrier, Maybe You Should Call North Central Life...

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Federal Reserve Bank of St. Louis

“We’r e com m itted
to agriculture.
From the
ground up.”
Arlan Tengwall,
Senior Vice President, Agriculture,
Member Financial Institutions Team

“Agriculture. It’s changed dramatically
over the past 50 years.
“And Norwest correspondent banking has
changed right along with it.
“Changed by responding year after year to
the growing credit needs of farmers, ranchers,
and agri-business. Something that has made
Norwest Banks the largest bank lender to
agriculture in this part of the country.
“What that means in specific terms is we
can supply you with a reliable source of ag
overlines, so you can meet those needs directly.
And we can also provide a wide base of
financial back-up services that can help your ag
customers in every facet of their operations.
“What’s more, our new Hub System places
a knowledgeable Financial Institutions Client
Executive in your area. That way, he and a
Norwest ag expert can work with you as a
team. So we understand—firsthand—the
problems and concerns facing all aspects of
“It’s from these Hub locations that we can
better maintain our deep involvement with ag
producers, processors, suppliers, and exporters.
And in that way, respond more fully to you and
your ag customers.
“That’s our promise; our commitment to
agriculture. And to you.
“If you’re interested in finding out more,
contact your nearest Norwest Financial
Institutions Client Executive.”
Hub Bank Locations:
Norwest Bank Aberdeen, N.A.
Norwest Bank Bismarck, N.A.
Norwest Bank Black Hills, N.A.
Norwest Bank Des Moines, N.A
Norwest Bank Duluth, N.A.
Norwest Bank Fargo, N.A.
Norwest Bank La Crosse, N.A.
Norwest Bank Mankato, N.A.

Norwest Bank Marshall, N.A.
Norwest Bank Mason City, N.A.
Norwest Bank Midland, N.A.
Norwest Bank Minneapolis, N.A
Norwest Bank Omaha, N.A.
Norwest Bank Rochester, N.A.
Norwest Bank Sioux Falls, N.A.

Members FDIC

Financial Institutions Group
Federal Reserve Bank of St. Louis