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Ne w
Federal Reserve Bank of St. Louis

The FamilyOf
Which kind
of banker
are you?
banker *
who pro­
vides all the usual
and a few not-sousual customer
services? Or are
you the banker
who really
wants to com ­
pete, who is willing to
offer Decision Funds?

Decision Funds are provided exclu­
sively to banks by the Iowa Bankers
Association and AID Securities. It’s a
family of four no-load mutual funds,
which you can offer to that select
group of customers who want to
diversify their portfolios.
Decision Funds offer bank
depositors these options:
Growth Fund: Seeks capital appre­
ciation with principal investments in
equity securities; no consideration
given to income.
Growth and In com e Fund: Seeks
growth of capital income by invest­
ing principally in high-yield equity
securities with capital appreciation
Governm ent Incom e Fund: Seeks
high current income consistent with
Federal Reserve Bank of St. Louis

prudent investment risk by investing
principally in intermediate to long­
term Government Securities.
Tax-Free Fund: Seeks to provide
highest level of interest income
exempt from Federal income tax
consistent with preservation of
capital; principal investment is in
intermediate to long-term investment


grade municipal bonds.

In January alone o f this year,
national sales of mutual funds other
than short-term

Yes...and no.
Whether or not you offer Decision
Funds, upscale customers will con­
tinue to diversify their investments.
The fact is that nearly four in every
ten, 38.9%, of high balance bank cus­

to $7.2
Assets were
a record
$154.8 bil­
lion. Iowa’s mutual fund sales were
approximately $390 million in 1984
and sales remained strong through­
out the first quarter of 1985.
Recent surveys of shareholders
conducted by the New York Stock
Exchange revealed that the total
number of shareholders of equity
mutual funds increased 72.4% over
the two year period 1982-1984. And
it is projected that 17 million house­
holds will own mutual funds in the
Obviously, mutual funds are in
demand. And now IBA Securities can
help you capture new customers and
retain those who might otherwise
be lured away by investment oppor­
tunities offered at national broker­
age houses.
But first, the answers to a few

tomers currently have a brokerage
relationship. And yes, some of the
money they invest is from their sav­
ings and certificate accounts. But
according to a 1984 Gallup study,
59% of mutual fund owners use cur­
rent income to purchase additional
mutual fund shares, which is money
your bank would lose if you didn’t
offer the Decision Funds option. And
it’s money from which you can profit.

Frankly, fee income generated by
Decision Funds during the first year
may not be overwhelming. But
because start-up costs are minimal,
almost all the fees you do generate
will go straight to your bottom line.
And long-range, the Decision
Funds family of funds could become
an important contributor to your
bank’s total earnings because income
can be derived from transaction fees


as well as a percentage o f the average
assets under management.
Let’s face it. Interest margins are
likely to continue to shrink. And
while the net incom : from Decision
Funds probably won t completely
off set your
losses... it
will pro­

Pershing, who executes and clears
over 15% o f all New York Stock
Exchange activity each year, and
Alliance Capital Management Cor­
poration, one of the nation’s larg­

vide your
bank with

est institutional investment man­
agers, developed Decision Funds.


They didn’t just take an existing

and po­
of in­

Does IBA
Securities Provide
Yes! We want to help you promote
Decision Funds with advertising that’s
proven to be effective Statement
stuffers, direct mail packages, cover
letters, 12-page four-color brochures,
prospectuses, newspaper ads, radio
scripts and tapes, counter cards, post­
ers, and applications are all available
at reasonable prices. Copy is written
so customers who may not be sophis­
ticated investors can understand it,
and all materials are guaranteed
to be within
In addi­
tion, IBA will
provide com ­
plete training
to your staff,
including infor­
mation on how
to cross-sell other bank services along
with Decision Funds.
Federal Reserve Bank of St. Louis

laying Field...
For years, bankers have been
fighting an uphill battle; but now
that regulations have eased,
IBA Securities offers you the
opportunity to go head-on against
today’s competitors.

mutual fund “off the shelf,” but
created a whole new family of
mutual funds exclusively for bank
Pershing conducts no retail
business whatsoever. This forever
removes the temptation to sell
directly to your clients.
Alliance manages over $24 billion
in assets for more than 200 corpora­
tions and private and public endow­
ments. Its clients include 27
of the top 100 “Fortune
500” companies. Over its
cumulative 14-year history
(1971-1984), Alliance’s
performance has been:
+ 317% for all
equities vs. 239%
for S & P 500
+ 610% for aggressive equities vs.
219% for S & P 500
+ 182% for fixed income manage­


ment vs. Salomon’s high
grade long-term bond

Everyone’s playing for keeps, so
don’t delay. Give Ann Tod at IBA Secu­
rities a call. Tell her you want to offer
the Decision Funds...the family of
mutual funds your customer can buy

index of + 1 5 9 %

only at your bank.


^ c immES

Division of AID Securities Corporation

Decision Funds
For Bankers Who Want To Com pete .
IBA Securities •430 Liberty Bldg.
Des Moines, IA 50308 • 1-800-532-1423

: FOR I

Federal Reserve Bank of St. Louis

M eet Dick Retz,
M N B Correspondent Banker.

M eet 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.
Federal Reserve Bank of St. Louis

Merchants National Bank isi

Cedar Rapids Iowa 52401

Member F.D.I.C.



Sees Bright Future
For Community Bankers

AUGUST 1985 •

92nd Year •

No. 1463




LEADERS of the Montana Bankers Association for 1985-86 are pictured, left to
right. Front row: Vice Pres.—W.E. Schreiber, pres., Mountain Bank, Whitefish;
Pres.—Richard C. Timmerman, pres. & CEO, First Bank, Butte, and Immed. Past
Pres.—Robert H. Sizemore, pres., Western Bank, Chinook. Back row: Exec. V.P.—
John T. Cadby, Helena, and Treas.—James D. Bennett, pres., First Citizens, Bill­



Valuation of bank stock

Paul W. Olander relates the role of loan review


President’s tax reform proposal

Peat, Marwick, Mitchell CPAs tell how it affects your bank


Reducing risk on computer loans

Phillip Brandsey describes Genesis Systems analysis service

24 Illinois
27 Minnesota
28 Twin Cities
36 Wisconsin
37 South Dakota
38 North Dakota
39 Wyoming


Montana Convention
Report and Photos




Des Moines
Index of Advertisers

1535 Linden Street, Suite 201, Des Moines, Iowa 50309

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Carla Lukenbill
Diane Nelson

HE FUTURE of com m unity
banking will be bright, predict™
American Bankers Association Ex­
ecutive Vice President Donald G.
Addressing a meeting of the ABiA
C om m unity Bankers A dvisor™
Board in Denver, Mr. Ogilvie fore­
cast that the banking industry will
continue to undergo fundamental
legislative, regulatory and m arked
place changes in the next several
years. However, he said, community
bankers have a proven track record
of succeeding when faced with
change and challenge.
Mr. Ogilvie pointed out that com­
munity bankers have traditionally
fared well against stiff competition.
Most of the community bankers
emerged “ stronger than ever.”
The A B A officer praised bankers
performance in the farm belt. “ The
agricultural situation is not a happy
one, but community bankers have
shown more resourcefulness — an^
courage — in tackling farm custo­
mers’ problems than probably any­
one could have imagined. And for
many customers, that resourceful­
ness is making all the difference t
day,’ ’ he stated.
Community bankers also hav
demonstrated they are a potent poli
tical force, Mr. Ogilvie noted. The
were instrumental in the drive
eliminate the savings and loan in
dustry’s interest rate differentia
and took the lead in the fight t
repeal tax withholding at source.
Mr. Ogilvie summed up commu
ty bankers’ drive and resourceful
ness by stating that “ communit
bankers are the type who, whe
faced with the prospect of increase
competition, a customer with a pro
lem, or even a temporary setbac
simply say — ‘Make my day.’ ”
While community bankers wor
in their local marketplace to reco
nize and manage change, the AB
will be doing the same in Washin
ton, D.C. said Mr. Ogilvie. “ At th
American Bankers Association, o
priority assignment is to work on
parallel track to assure that this a
sociation provides the opportuniti
— and the political leverage whe
necessary — for all banks — lar
and small — to prosper, and to ser
their customers effectively and ef
ciently,” Mr. Ogilvie stated.


Becky McBurney

No. 1463 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

Correspondent Banking

good banking
with strong

Keeping competitive and staying profitable is a tough balancing act these
days. You’re looking for good service, availability and pricing that can keep
your day-to-day operations in the black.
At United Missouri, a personal representative works with you on a
continuing basis to maintain this balance. Through that representative
you have access to our new availability schedule that decreases float costs.
And to investments, brokerage services, asset/liability management, data
processing services, bankcards and loans.
Our services are competitively priced to help your bank improve
the bottom line, and all are backed by the expertise and careful market
forecasting that have built United Missouri into a major banking force.
To learn more about our services, call Phil Straight in Kansas City.

“ ■“
of Kansas City, n.a.
P.O. Box 226, Kansas City, Missouri 64141, (816) 556-7900
Federal Reserve Bank of St. Louis

Give your bank
a better build.
Federal Reserve Bank of St. Louis

The total HBE package included a warm, welcoming interior o f
carefully coordinated carpeting, furniture and woodwork.

"There was not on e p en n y added to the cost o f this
jo b over the original estimate.” Dick Schanze,
president o f Peoples State Bank o f
St. Joseph, Michigan.

N o on e can “design in” operational efficiencies
as well as HBE: the floorplan developed for
Peoples State was designed to solve
workflow needs years
into the future.

For more information, return this form to HBE,
11330 Olive Street Road, St. Louis, MO 63141
or contact Sally Eaton at 1-800-HBE-4677.


Federal Reserve Bank of St. Louis

B an k Facilities



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

National Conventions & Schools
Aug. 11-24—Graduate School of Banking,
University of Wisconsin-Madison.
Oct. 19-23—ABA Annual Convention, New
Nov. 10-13—BMA 70th Annual Convention,
Sheraton-Waikiki, Honolulu, Hawaii.

State Conventions & Schools
Sept. 14-17—IBC Annual Convention, Key­
Aug. 4-9—IBA Internal Bank Auditors School,
DePaul University, Chicago.
Aug. 11-16—IBA Compliance School, DePaul University, Chicago.
Sept. 11-12—IBA Retail Banking Confer­
ence, Clarion Hotel, St. Louis.
Sept. 25-26—IBA Agricultural Credit Con­
ference, Holiday Inn, Decatur.
Oct. 9-10—IBA Marketing Conference, Ramada Renaissance Hotel, Springfield.
Nov. 20-21—IBA Bank Management Confer­
ence, Holiday Inn, Decatur.
Sept. 22-24—IBA 99th Annual Convention,
Des Moines.
Nov. 13-14—IBA Consumer Lending/Retail
Banking Conference.
Aug. 11-16—MBA Commercial Lending
School, St. Olaf College, Northfield.
Aug. 11-24—MBA Graduate School of Bank­
ing, University of Wisconsin, Madison.
Aug. 22-25—Independent Bankers of Min­
nesota Annual Convention, Breezy Point

Resort, Brainerd.
Sept. 16-19, 23-25—MBA District Meetings.
Sept. 8-13—Schools of Banking Basic
School (2nd session), Rodeway Inn, Over­
land Park, Kan.
Sept. 22-27—Schools of Banking Intermedi­
ate School, Rodeway Inn, Overland Park,
Oct. 6-10—Schools of Banking Advanced
School, Regency West, Omaha.
Nov 7-8—NIB Association Annual Conven­
tion, Villager Motel, Lincoln.
North Dakota:
Sept. 16— NDBA Northeast Group meeting,
Devils Lake.
Sept. 17—NDBA Northwest Group meeting,
Sept. 18—NDBA Southwest Group meeting,
Sept. 19—NDBA Southeast Group meeting,
Sept. 25-27—ICBND Annual Convention,
South Dakota:
Aug. 28—Keogh Seminar, Holiday Inn,
Sept. 5—Bank Directors’ Seminar, Holiday
Inn, Mitchell.
Sept. 16—SDBA Group 5 Meeting, Rapid
Sept. 17—SDBA Group 4 Meeting, Mobridge.
Sept. 18—SDBA Group 3 Meeting, Mitchell.
Sept. 19—SDBA Group 1 Meeting, Sioux
Sept. 20—SDBA Group 2 Meeting, Watertown.
Oct. 10-11—Installment Credit and Retail
Banking Conference, Alex Johnson’s,
Rapid City.
Oct. 16-17—Economics Seminar for Young
Adults, Holiday Inn, Mitchell.
Oct. 22—IRA/Keogh Seminar, The Hilton,
Rapid City.
Oct. 24—IRA/Keogh Seminar, Ramada Inn,
Sioux Falls.

RMA Holds Election, Announces Program
DW ARD J. Williams, treasurer,
Brown Brothers Harriman &
Co., New York City, was elected
president of Robert Morris Associ­
ates in the association’s annual elec­
tion on August 2. RM A is the na­
tional association of bank loan and
credit officers.
Malcolm T. Murray, Jr., execu­
tive vice president, First Union Na­
tional Bank, Charlotte, N.C., was
elected first vice president. Paul C.
Clendening, senior vice president,
Commerce Bank of Kansas City,
N .A
o., was elected second vice
for .„M

Reserve Bank
of St.August,
Louis 1985

president. All terms are for one year.
Elected to fill a vacant two-year
term on the RM A board was James
B. Osbourn, executive vice presi­
dent, Central Bank of Denver.
More than 2,000 members of
RM A and their spouses are expected
to attend R M A ’s 71st annual Fall
Conference at the Sheraton Boston
Hotel & Towers in Boston, Mass.,
September 22-25.
Mr. Williams; James Howell,
chief economist, Bank of Boston,
and Edward E. Crutchfield, Jr.,
chairman and CEO, First Union

Corp., Charlotte, N.C., are among
those giving major addresses.
Panel presentations and smalU
group discussions will cover the*
following topics: the competition’s
view of the financial services indus­
try five years from now; loan docu­
mentation from a lawyer’s perspec^
tive; commercial loan sales and mar­
keting management; asset sales, in­
terest rate swaps, and other emerg­
ing techniques; recent regulatory in­
itiatives and their effect on lending^
policy; managing the loan volumer
quality trade-off; and managing
credit services in newly merged/acquired instituions.
The business program also wil
focus on international lending for
regional banks; the importance of
continuing education for account of­
ficers; managing the loan approval
process; problem loan strategies
standby letters of credit; lending to
and advising middle market compa­
nies; loan officer workload, producti­
vity, and standards of performance;
loan monitoring; computerized trad
finance; and lending to specialized
industries such as agriculture, pub­
lic utilities, health care, high tech,
and real estate construction.

Drovers Bank Offers
Free Smoke Alarms
As part of a seven-week fire safet;
program, Drovers Bank of Chicago
is giving away Lifesaver smoke
alarms to customers depositing
$500 in a new checking account or in
a new or existing savings account
The campaign is part of a unified fire
prevention program being featured
at all Cole-Taylor Financial Group,
Inc. banks that began July 15 and
extends through August 30. Als
featured is a continuously runnin
11-minute slide presentation o
home fire safety shown in the lobb
daily. A Chicago Fire Departmen
representative has fire safety mater
ials on hand and responds to ques
tions during the showing.


B a n k in g lead ers a re n o t b o rn .
T h ey a re m ade.

G rad u ate S ch o o l o f B a n k in g
University of Delaware, Newark, Delaware
June 15-27,1986
To reach the top, today’s upper-level ban k m anagers must be highly
skilled and k n ow ledgeable about virtually every aspect o f their b a n k s’ activities. S om etim es that
requires addition al training and education.
Join the m en and w om en w h o ’ve d iscovered that th e b est r o u te to th e fast tra ck in
b a n k in g is through ABA’s S ton ier G raduate S ch o o l o f Banking.

Over half a century of excellence.

An outstanding faculty.

Since 1935, S ton ier has built a distinguished repu­
tation as the industry’ s old est and m ost prestigious
g ra d u a te b a n k in g s c h o o l o ff e r in g the fin e st in
bank leadership trainin g and education.

S tonier’s faculty— over 150 experien ced bankers,
professionals, govern m en t o fficia ls and a cadem i­
cian s— have ach ieved national and international
recogn ition in their fields. A n d they are grou n d ed
in the real w orld , not the ivory tower.

A tradition of innovation.
S ton ier offers you a state-of-the-art cu rricu lu m for
a ch angin g industry, fo cu sin g on the con cep ts and
tools n eeded by upper-level m anagers to deal with
th e ch a lle n g e s o f the next d e c a d e — m ic r o c o m ­
puters . . . in n ovative m anagem ent skills . . . retail
banking, and m any more.
A Service of the American Bankers Association

A Stonier diploma is your mark of
achievement in the banking industry.
Students in this d em a n d in g program attend tw ow eek resident sessions each June fo r three years.
T hey may com p lete the graduation requirem ent by
subm itting either a series o f alternative w riting
projects on sp e cific ba n k p erform a n ce areas o r a
traditional form a l thesis.

For an ap p lication or m ore in form ation , mail the c o u p o n b elow or call the A B A Banker E ducation
N etw ork at (2 0 2 ) 4 6 7 -6 7 3 8 . A pp lica tion s must be su bm itted by O c to b e r 15, 1985.


i want to receive
more information on the 1986 session of ABA’s Stonier Graduate School of Banking. Please send
an application and brochure to:
Return coupon to:
Sunye Kwon
Stonier Graduate School o f Banking
American Bankers Association
1120 Connecticut Avenue, N'.W.
Washington, D.C. 20036


Federal Reserve Bank of St. Louis



Northwestern Banker, August, 1985


Malcolm Aslin Named President of
United Missouri Bank of Kansas City
HE board of directors of United
Missouri Bank of Kansas City,
N.A. announced recently that Mal­
colm M. Aslin has been elected
president and chief executive officer
o f th e b an k ,
which was $1.8
b illion assets.
Mr. Aslin will
c o n t in u e
as president and
chief operating
officer o f the
bank’s holding
company, United
Missouri BancM. ASLIN
shares, Inc.
R. Crosby Kemper continues as
the bank’s chairman of the board
and as chairman and chief executive
officer of the holding company,
which has assets of more than $3 bil­
“ Mick and I will share duties in
running the bank and the holding
company,” Mr. Kemper said. “ There
will be synergistic effects derived
from this new association. This will
also give not only me but our direc­
tors a chance to observe his perfor­
mance during my last six years of
active duty with the company, and
this will give Mick a chance to build
his own team. I have had full confi­
dence in Mick for some time, and
that is why I am willing to make him


chief executive officer of the Kansas
City bank.”
As president of United Missouri
Bank, Mr. Aslin succeeds Richard C.
King, who resigned last month to ac­
cept appointment as chairman and
chief executive officer of Merchants
Bancorporation of Topeka, Kan.,
which owns the $250 million asset
Merchants National Bank of Tope­
ka. The Donald J. Hall family of
Kansas City owns a substantial in­
terest in the holding company in
Topeka, as well as a bank in Law­
Mr. Aslin has been with United
Missouri since 1972, when he joined
the company’s trust department. In
1978, he was promoted to president
of United Missouri Bank South,
where he remained for four years.
During his last year at UMB-South,
Mr. Aslin was assigned the addi­
tional responsibilities of coordinat­
ing and supervising all of United
Missouri Bancshares’ Kansas City
area affiliate banks. He was named
president of the holding company in
April, 1982.
Mr. Aslin currently serves as a
director of the Kansas City bank
and of United Missouri’s affiliate
banks in Boonville, Cass County,
Hickman Mills, Jefferson City,
South (Kansas City), Springfield
and Warrensburg.
Mr. Aslin received both his bache­

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lor’s and master’s degrees in Busi­
ness Administration from the Uni­
versity of Missouri-Columbia.
United Missouri Bank directors
also announced that Cathleen Dod||
son has been elected to the bank’s
board of directors. Ms. Dodson is
chairman of the board of the Dodson
Insurance Group and its affiliated

Sallie Mae Appoints Two
The Student Loan Marketing
Association (Sallie Mae) recently a r^
nounced two officer appointments.
Danny L. Darby has been pro­
moted to assistant vice president,
national bank marketing. In this po­
sition, Mr. Darby is responsible fo(|
marketing Sallie Mae’s education-re­
lated financial products and services
to major banking institutions. He
joined Sallie Mae in 1977 and pre­
viously was director, national banl
Mark A. Johnson has been pro­
moted to assistant vice president,
regional bank marketing. Mr. John­
son will be responsible for market
ing activities directed toward re­
gional and community banking
institutions. He joined Sallie Mae in
1980 and was previously director,
regional bank marketing.

Peat, Marwick Announces
Des Moines Promotions
The international accounting firm
of Peat, Marwick, Mitchell & Co.
and Johnny Danos, managing part­
ner of the Des Moines office, an­
nounced two recent promotions ir4
the Des Momes office.
Randall A. Hamilton has been ap­
pointed tax partner in charge of the
Des Moines office. Mr. Hamilton
succeeds Keith L. Ellerman, who ii
transferring to the firm’s Chicago
office multinational group specializ­
ing in international taxation. Mr.
Hamilton’s practice specialties in­
clude banking, financial planning^
employee benefit and professional!
corporation consulting, and serves!
as the office practice development!
Suku V. Radia was admitted as
partner in the firm. Mr. Radie
specializes in the taxation of finan-j
cial institutions and individuals.
Mr. Hamilton and Mr. Radia are
co-authors of a feature article on the
President’s Tax proposal printed ii
this issue.


NABW Plans 63rd Annual Convention
REDICTING trends and strategizing to gain a competitive
edge will be the focus of “ Competing
For the Future,” the 63rd annual
convention of the National Associa­
tion of Bank Women, to be held Sep­
tember 15 through 18 at the Frank­
lin Plaza Hotel in Philadelphia.
Leslie Bains is president of
N ABW and vice president of The
Chase Manhattan Bank, N.A., New
York, and will preside at the conven­
In addition to its 30,000 mem­
bers, N ABW is inviting all financial
services executives — male and fe­
male, bankers and non-bankers — to
attend. The convention will feature
speakers who are national leaders in
business and in the industry, oneday sessions on major topics for
those who cannot attend the entire
convention, a trade show, and an in­
ternational meeting in London with
financial executives from other
The first day focuses on economic
and industry forecasting — where fi-

nancial institutions are headed and
how to get in the best possible situa­
The second day will focus on spe­
cific competitive strategies both for
the financial institution and the fi­
nancial executive.
Tuesday’s general session will
focus on skills needed by the dyna­
mic manager to lead her company
ahead while building executive stra­
tegies and skills to advance her own
career; for example, a primary man­
agement need is sales skills at all
levels. Career management topics in­
clude salary negotiating and tech­
niques for the executive to market
herself or himself in business meet­
ings, job interviews and on resumes.
Wednesday’s general session en­
titled “ Dialogue on Influence” will
help attendees better understand
how to effect public policy decisions.
N ABW is expanding its role in the
financial services industry with a
public affairs arm to influence gov­
ernment policy in the banking indus­
try, a new territory for NABW.

Well-Known Area Banker
Joins Swords Associates

lion community bank in Ohio, and
earlier served in the commercial and
correspondent lending areas of ma­
jor banks in Cleveland and Cincin­
At Swords Associates, Mr. Hill
will specialize in consulting services
for non-bank financial institutions,
but will be actively participating in


Veteran banker G. Carlton Hill,
Jr. has joined Swords Associates,
Inc., a Kansas City-based profes­
sional bank consulting firm, as a se­
nior associate.
Since June, 1983, Mr. Hill had
been president of Brookside Savings
Bank in Kansas City, the area’s first
federally chartered savings bank. In
its first 15 months of operation, the
institution grew to $145 million in
Mr. Hill was chairman of the
board and president of the former
Plaza Bank & Trust Company in
Kansas City from 1977 to Septem­
ber, 1982, when it was acquired by
Commerce Bancshares, Inc. A t that
time he moved to the holding com­
pany’s lead bank, Commerce Bank
of Kansas City, as executive vice
president in charge of the commer­
cial banking division. Concurrently,
he was a regional vice president of
the parent company in charge of 10
metropolitan-area banks.
Mr. Hill left the Commerce orga­
nization in June, 1983, to establish
Brookside Savings Bank.
Prior to moving to Kansas City in
1977, Mr. Hill was president and
FRASER officer of a $42-mil
Federal Reserve Bank of St. Louis

:Z L 0w i r signments for com
John McClure Named to
SBA Advisory Council
John W. McClure, executive vice
president of Mercantile Trust Com­
pany N.A., St. Louis, has been
named to the National Advisory
Council for the Small Business A d­
Mr. McClure is head of Mercantile
Trust’s midwest area in the bank’s
corporate banking department. His
area includes Mercantile’s economic
development and small business

Sallie Mae Reports
Record Net Income
The Student Loan Marketing A s­
sociation (Sallie Mae) of Washing­
ton, D.C., has reported record net in­
come of $30.4 million for the second
quarter of 1985, up 26 percent over
net income of $24.2 million in 1984
second quarter and 6 percent over
net income of $28.9 million in the
first quarter of 1985. On a per com­
mon share basis, earnings were $.59
for the 1985 second quarter, versus
$.47 in the second quarter of 1984
and $.56 for the 1985 first quarter.
Net income for the six months
ended June 30, 1985 was $59.3 mil­
lion, or $1.16 per common share,
compared with net income of $45.8
million, or $.88 per common share,
for the first six months of 1984.

Security Pacific Business Credit, a nationwide commercial lender, provides
specialized financing for hundreds of companies in virtually every industry.
Our regional offices are staffed by seasoned professionals who concentrate
on re-financing and leveraged buy-outs in your market. We can structure flexible,
asset-based financing to meet your needs n o w ... and in the future, including:
• Financing from $1 million
• Experience
to $100 million or more
• Financial strength
• Flexibility
• Quick turnaround
• Responsive, personalized service
• Competitive rates
And most importantly, Security Pacific Business Credit is backed by Security
Pacific Corporation, the nation's seventh largest bank-holding company with
assets in excess of $46 billion.

Put security in your futu e future is now.

Gregory J. Tamborello, Senior Vice President
1301 West 22nd Street, Suite 101
Oak Brook, IL 60521
(312) 986-9323

Carey D. Brunelli, Vice President
230 West Monroe Street, Suite 2300
Chicago, IL 60606
(312) 782-9044

Subsidiary Security Pacific Corporation Assets over $46 billion

L e s s tro u b le .

M ore v a lu e .
Federal Reserve Bank of St. Louis

that’s what it means
to do business with Deluxe.
iBeing the leader in
|p y industry usually means
having developed the most
efficient path from raw
materials to finished goods,
lat’s what Deluxe Check
rinters, Inc. has done.
From the paper mill to
our customer’s mailbox, no
)e delivers a comparable
roduct line for less than
eluxe. One product, maybe,
wo, perhaps. But your cusmer base needs more than
ne or two products. Add up
he whole mix, and no one can
atch Deluxe atthe bottom line.
No one.

ave as much in
oft costs as you
o in hard.
All the support you
ed for a successful check
rogram is available from
eluxe. Cohesive marketing
ids that sell your services.

heck Printers, Inc.
Federal Reserve Bank of St. Louis

Targeted training for your
personnel. Detailed revenue
reporting—and forecasting.
Options for billing and order
entry. Everything it takes
to keep your check program
running smoothly
And profitably
It’s all yours for the
asking. Which eliminates a lot
of internal costs for you.
As does the quality of
the documents we provide.
Deluxe offers the lowest
documented reject rate in the
industry—less than 1/10 of
one percent. A statistic that
translates into less hassle
and less expense for you.
All of which is simply to
recognize what thousands
of institutions across the
country already know: that
Deluxe provides the greatest
total value in the check
printing industry today
Value. It’s what you get
when you do business with
Deluxe. And nothing less.

The difference
between a printer
and a partner.

We turn on a dim e
so you can turn a larger
W hen money is expensive, so is the
time funds are idle. That’s why so
many banks rely on Northern
Thist Bank for profit-enhancing,
correspondent services. Our exper­
tise in getting funds to work
quickly and profitably has earned
us the reputation of being a pre­
miere processor for correspondent
banks. In fact, in independent
surveys, The Northern Thist
consistently ranks am ong the top
three cash managem ent providers
in the industry.
The latest in com puter tech­
n ology assures check collection
and safekeeping that’s accurate
and fast. Our Cashline Balance
Reporting System gives you elec­

tronic access to your account for
m axim um flexibility. You can get
a fresh update every 15 minutes
if necessary —and m ove m oney
within hours rather than days.
A d d to our sophisticated
equipment the best in personal
attention and responsiveness, and
you get Northern IVust’s ideal
com bination of quality and effi­
ciency. A dedicated staff of profes­
sionals assures you personal
attention in all transactions.
We’re also ready to assist you
in handling your investments.
A nd our experienced Bond
Department representatives
are always on hand to provide
knowledgeable advice.
W ith Northern Thist Bank
behind you, you can count on
better service for your customers.

A nd a better b ottom line for your
bank. For more information,
contact John V. N. McClure,
Vice President, Northern Thist
Bank, 50 South LaSalle Street,
Chicago, Illinois 60675. Telephone:
(312) 630-6000. M em ber F.D.I.C.

The more you w ant
your bank to do,
the more you need
The Northern.


B ank

Federal Reserve Bank of St. Louis



Role of loan review in
valuation of bank s to c k


Written especially for
T he N o r t h w e s t e r n B a n k e r

stock loans and the second is to de­
termine the amount of loan portfolio
reserve or adjustment needed when
a bank is being sold.

Changes in Bank Stock Lending
Traditionally, bank stock lending
has been a very desirable use of
bank funds. It has been character­
ized as having a low credit risk and
being highly profitable because of
the relationships it developed. Sub­
Editor's Note: Like many other busi­ stantial competition existed for the
ness practices that have changed loans, which caused borrowers to re­
considerably from former years, the ceive attractive terms, often being
almost routine approval o f bank able to negotiate arrangements that
stock loans in "the good old days" is required only interest and sporadic
no longer routine. So many factors principal payments. Loans could be
have changed in recent years that shifted readily to other lenders if the
bank stock lenders at correspondent bank was not suitably accommodat­
banks are required today to make in- ing or if they felt uncomfortable
depth analyses o f the loan portfolio. with the loan.
The author has a unique background
Suddenly, this idyllic situation
that equips him for such loan port­ changed. Lending banks found they
folio analysis and he was invited to could lose money, big money, some­
share some o f his thoughts on this times the entire principal of these
important topic with our readers.
bank stock loans. The cause was
simple—some banks started to fail,
an almost unheard of event just a
HE MENTION of loan review
few years ago.
often conjures up visions of
Most of these failures have oc­
junior loan officers making tentative
curred because of loan problems,
and naive notations on loan write-up
although there are other reasons, all
sheets, or to others, a needless ac­
of which have been described vividly
tivity suited only for banks that do
by the media. However, bank stock
not know their customers well. For
lenders can be affected adversely
other banks, loan review has become
even if failure does not occur. Loan
an essential part of the credit pro­
problems or other difficulties may
cess, supporting and assisting both
cause operating losses to the extent
management and the loan officer in
that dividends may not be able to be
protecting the loan portfolio from
paid. With no dividends, it may be
excessive risk.
im p ossible for the borrow er,
Whether done by the bank man­
whether it be an individual or a hold­
ager, a separate department, a “ peer
ing company, to meet the payment
review” system, or by an outside
schedule on the bank stock loan.
consultant, the goal is to be sure
that policy and procedures are ap­
Internal Problems
propriate for current conditions and
Severe loan problems often cause
that the portfolio is evaluated for banks to be placed under agree­
ments or cease and desist orders
Now there are several new roles which affect the bank’s ability to
for loan review. One is to assist in service debt. Usually these enforce­
the credit decision on bank ment actions prohibit dividends

Paul W. Olander Company
Rochester, Minn.

Federal Reserve Bank of St. Louis

because loan charge-offs have reduc­
ed capital to marginal levels.
Increasingly, there is the addi­
tional possibility of management re­
moval being forced by the regula­
tors, which can cause the bank bor­
rower to lose his income from the
bank and possibly cause him to de­
fend himself in legal actions brought
by the regulators. If that person is
the borrower on the bank stock loan,
the lender may have serious dif­
ficulties in getting adequate debt
service on the loan.
Loan problems may cause addi­
tional capital to be required by the
regulators and this may place the
lending bank in a dilemma. A new
loan for the capital may be a poor
risk, raising the money from another
source may cause enough dilution to
destroy the bank’s position as the
holder of the majority of the stock
or, if the bank does neither, the bank
remains inadequately capitalized
and unable to pay dividends to ser­
vice the bank’s debt.
Inability to obtain Federal Re­
serve approval for the formation of a
holding company also may create re­
payment problems. Without the tax
benefits gained through this device,
many bank stock loans can’t be ser­
viced adequately. If a holding com­
pany has not been put in place
before problems develop, it may not
be approved because of the bank’s
inadequate financial strength and
future prospects, a condition for ap­
proval by the Federal Reserve.
Precautions Must Be Taken
Certainly, most banks are not go­
ing to be affected by these problems
but, as with any other loan, the
lender must take precautions to be
sure that the loans he makes are not
going to be the ones that have the
problems. Bank lenders have tried
to establish techniques to be sure
they are making the proper selec­
tions and decisions. As a result, a
great deal more attention is being

paid to the loan portfolio because of
the major effect it has on the bank.
Up to now, correspondent banks
have relied most heavily for their
bank loan information on call re­
ports, which show the amount of
charge-offs, reserve balances and the
amount of nonperforming loans, to
judge the quality of the bank loan
portfolio. Often, the amount of loans
classified by the regulators has been
made available to the bank stock
lender, although the report itself is
expected to be confidential.
But, is this information suffi­
cient? Call reports do not tell the
complete story on loan quality. The
regulators do a thorough job of
evaluating a loan portfolio when the
bank is under special surveillance
because of identified problems, but
with other banks, particularly those
with substantial capital accounts
and a history of good performance,
their accuracy, in my experience,
has not been so good.
Regulators Also Have Problems
David Cates of Cates Consulting
Analyst, Inc. rates banks based on
an analysis of a number key ratios.
He reports that of the banks that
failed during the 1981-1983 period,
only 37% received an adverse rating
on the last examination before fail­
ure. Even more surprising, 34% of
has 31 years of experience in the financial
business. He started his career in 1954 as
an FDIC examiner, then in 1959 became
branch manager for SBA in Fargo, N.D. Five
years later he was named vice president of
First National Bank in Grand Forks. He
moved in 1967 to First National Bank of
Great Falls, Mont.; served as president and
CEO of Red River National Bank and Trust
Company in Grand Forks from 1972 to 1975,
and as president and CEO of First National
Bank of Rochester from 1975 to 1982.
At that time he organized his own firm,
Paul W. Olander Company, which provides
a variety of bank management services in­
cluding on-site management and loan re­
views. Recently, Mr. Olander also pur­
chased an interest in First Corporate Ser­
vices, Inc., and became a registered securi­
ties representative. The firm is a Minneapo­
lis-based broker dealer aimed at developing
and marketing limited partnerships, and
providing debt financing for small business
firms. Mr. Olander currently is developing a
special division for First Corporate to pro­
vide investment banking services for com­
munity banks.
Mr. Olander was graduated from the Uni­
versity of Minnesota with a B.S. degree in
Business Administration. He is also a grad­
uate of the Stonier Graduate School of
Banking at Rutgers University and of the
Graduate School of Business Program in
Organization Management at Stanford Uni­

Federal Reserve Bank of St. Louis

May 30, 1985
A nalysis of Reserve for Loan Losses

Current Reserve for Loan Losses


Total Loan P ortfolio

1. 11 %

Percentage of Reserve to Total Loans
(Special) Loan Review


Loan Amount

% Reserve


$ 112,000


Sub Total





Remaining Loan P ortfolio:

Loan Amount
Real Estate
Com m ercial


% Reserve



Grand Total Reserve Needed


Am ount of (deficit) Reserve

$ 83,652

these failed banks received a 1 or 2
Camel rating at the last examination
held before their failure.
This can be explained partially by
the inability of the regulators, be­
cause of a shortage of personnel and
the increase in bank problem situa­
tions, to examine banks as frequent­
ly, often leaving those banks that
have had a good record to go up to
two years between examinations.
My own work in conducting loan re­
views for community banks has led
me to conclude that examiners tend
to under-classify loans in banks that
have good record, allowing deteri­
orating loan portfolios to be given
the benefit of the doubt and only
becoming severe with their classifi­
cations when successive exams
show a continuing, unfavorable
Perhaps this is appropriate regu­
latory behavior, but is the reliance
on this information sufficient to sup­
port a credit decision on a bank
stock loan?

Loan Review Emphasis Needed
Some correspondent banks now
believe they must do more to evalu­
ate their bank stock loan requests
and are requiring loan reviews eithe
by their own staff or by independent
loan reviewers as a condition to their
loan approval.
To be effective, these loan reviews
have to be concerned with:
(1) The current condition or quali­
ty of the loan portfolio and whether
adequate reserves have been estab­
(2) The effectiveness of the bank’s
loan administration procedures. Has
the bank identified its problem;
loans, including those requiring ad­
ditional monitoring? What has bee
their recent actions, and what plans)
are in place for correcting or improv
ing the condition of the individua
(3) The adequacy of the ability an
commitment of the bank’s staff t
handle the problem.


“A proper loan evaluation more comparable
with the process that should be gone through to establish a
• Reserve for Loan Losses.”
Loss Potential Underestimated
Frequently, banks have underesti­
mated the potential for loss in their
portfolios, in part because of gener­
ally favorable loan loss experience in
previous years and because of denial
^ or cover-up. Unfortunately, favorite
techniques of the past, such as get­
ting another lender to take over the
borrower or rewriting the loan
because of optimistic projections of
^ future prices, have not been work­
ing. Now, more often than not, a bad
loan is just a bad loan with little
prospect for full repayment. The
decision becomes: “ What is the best
strategy to realize as much as possi­
ble from the asset to have the least
amount of loss?”
The success of a bank is now very
dependent upon what has taken
place in the past; i.e. the current
quality of the loan portfolio and,
almost as important, the ability of
the bank’s personnel to make the
best of the existing loan portfolio;
for example, making the proper deci­
sions on collection efforts and being
sure that a minimum amount of
new, marginal loans is being made.
While it’s essential to know the
amount of a bank’s poor loans,
that’s only part of the story. It’s
also necessary to know the chances
of the situation improving or deteri­
orating and to what extent.
Reserve for Loan Losses is Crucial
Consequently, a proper loan
evaluation process goes beyond
what is shown in the call reports and
examination reports and is more
comparable with the process that
should be gone through to establish
an appropriate Reserve for Loan
Losses. In addition to estimating
the amount of potential loss in the
larger loans in the portfolio, that
type review also must consider:
(1) Trends in the quality of loans
and in the volume of loans outstand­
(2) The amount of credit risk the
bank has assumed because of letters
of credit, etc.
(3) The mix in the portfolio and
the extent of concentrations of
(4) Previous loss experience.

Federal Reserve Bank of St. Louis

(5) The amount of delinquent and than that of the buyer. With the dis­
non-accrual loans and the proce­ inflation that is occurring in agricul­
dures in place for dealing with them. tural areas, it is only natural that
(6) The condition of the local eco­ such arguments will occur.
Some of the “ hold backs” or re­
(7) The experience and ability of serves that have been included in
the lending staff and the support agreements for bank sales have cre­
and review of their activities by ated problems; in some cases litiga­
tion. These reserves have been es­
tablished in an effort to adjust the
Example of Calculations
All of these factors must be con­ purchase price to reflect that the
sidered in the evaluation or review loan portfolio is worth less than
process, and they must be reflected shown on the bank’s books. There
in a way that allows a lending bank have been fixed dollar reserves, a
or investor to see the results of the percentage of certain loans, take-out
process. In our loan review work, we of any loans on a list within a certain
express our judgment of the loan period of time, elimination of certain
portfolio by rating the loans com­ loans before sale, loan losses within
prising the major part of the loan a certain period of time and so on, all
portfolio (usually in excess of 70% of of which have the deficiency of being
the dollar volume of the outstanding subject to an argument on loan qual­
loans less single family real estate ity, as well as how the reserve is sup­
loans) and placing a specific percen­ posed to work.
tage reserve on each of these totals.
Third Party Reviews
The accompanying example shows
Recently, in order to avoid unnec­
that it is simialr to the calculations essary controversy and time con­
many banks use to determine the suming deals that may not close,
adequacy of their loan reserve and to buyers and, in some cases, sellers
establish the amount of monthly are commissioning third party loan
charge to earnings.
reviewers to establish the general
The percentage of reserve for a range of the size of the loan reserve
specific category of loan will vary needed. In the past, sophisticated
based on the judgment of the re­ buyers could assume that the selling
viewer. For example, “ F ” rated bank’s loans were reasonably nor­
loans may require as much as a 30% mal, absent any evidence to the con­
reserve, or as little as 10%, depend­ trary, such as a bad examination re­
ing upon the bank’s recognition of port, and they would proceed with
the problem, its plans to correct it, only a loan review just before clos­
and the probability that it will, be­ ing, reasonably sure there would be
cause of its skill and resources, be no major surprises. Now, loan prob­
successful. We have found that lems in some banks may be so diffi­
banks that have realistically graded cult as to overcome the ability of
their loans for a year or more have good bankers to correct them. Also,
less potential for loss from their they often occur so unexpectedly
loans than other banks. This is not that past reports have not been a re­
surprising because often the main liable guide.
hurdle to overcome is denial and the
As a consequence, loan review is
tendency to believe that nothing can being given a larger role in helping
be done because of the poor econo­ to evaluate banks, both from a bank
stock loan and a bank sale perspec­
tive. But, important as that role
Some Reserves Cause Disputes
This system of loan portfolio an­ may be, by far the greatest contribu­
alysis also provides a needed tool for tion loan review can make is to help
buyers and sellers of community maintain the quality of bank assets
banks. Unfortunately, a number of through a regular, comprehensive
bank sales have been negotiated program conducted within the bank
where the seller’s idea of loan quali­ by bank personnel.
ty has turned out to be different
Northwestern Banker, August, 1985

The President’s
T ax Reform
Proposal it affects your bank!

Written especially for
T he N o r th w e s te r n B a n k e r


By SUKU V. RADIA, Partner
Peat, Marwick, Mitchell & Co.
Des Moines, la.

Editor's Note: Although Congress is far from agree­
ment on President Reagan's Tax Reform proposal, or
whether there should be tax reform, many bankers are
trying to determine what effect the initial proposal
might have on their banks. This article examines some
o f the important provisions.
N May 29, 1985, the President sent Congress his
long-awaited proposal to revise the tax code. As in
all proposals of recent years, there are potential
“ losers” and “ winners.” The real estate industry, capi­
tal intensive industries, insurance companies, and de­
pository financial institutions appear to be among the
“ losers.” High technology companies, the securities in­
dustry, retailers, oil and gas, and small business ap­
pear to be among the “ winners.” Congress has just
begun consideration of broad-based tax reform, look­
ing at both the President’s proposal and the proposals
of various congressional sponsors. The legislative
deliberations are expected to continue until late in
1985, with prognosticators about equally split on
whether a final bill will emerge late this year or in
Of special importance to banks is the fact that the
President has essentially called for the repeal of the
special tax provisions affecting them. Other portions
proposal also will have a significant effect on a

Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis


bank’s activities. These changes are summarized ini
this article.

Bad Debt Deduction
All reserve methods of computing bad debts, includ­
ing the special methods allowed banks for computing <
additions to a bad debt reserve, would be repealed. To
prevent a double deduction for debts that become
wholly or partially worthless after the effective date,
banks generally would be required to include their ex­
isting tax reserves in taxable income ratably over ten<
Alternatively, an election could be made to include
the entire reserve in income in the first taxable year be­
ginning on or after January 1, 1986. Prospectively, the
new law would allow deductions only in the year specif
fic debts become wholly or partially worthless.

Net Operating L osses
Under current law, banks may carry net operating
losses (NOLs) back ten taxable years and forward five.
Non-financial institutions are allowed to carry NOLs I
back three years and forward fifteen. The proposal
would repeal the special rules for banks and provide
them the same carryback and carryover rules allowed
other companies. The proposal would be effective fori
losses arising after 1985. Therefore, existing NOLs|
would not receive an extended carryover period.


Interest Expense Incurred to Carry
Tax-Exempt Obligations



Since 1982, a portion of the interest expense allocable to the purchase or carrying of tax-exempt obligâtions has been nondeductible. It is proposed that the
current 20 percent disallowance be raised to 100 per­
cent for tax-exempt obligations acquired on or after
January 1, 1986. The amount of interest expense
deemed allocable to the purchase or carrying of taxexempt obligations would be determined in the same
manner as under current law. The current 20 percent
disallowance provision would continue to apply to taxexempt obligations acquired between January 1, 1983
and December 31, 1985.

Cash Basis Method of Accounting
Under this proposal, the cash basis of accounting es­
sentially would be repealed. Only taxpayers meeting
the following requirements could continue to use the
cash basis of accounting:
• The business has average annual gross receipts of
$5 million or less (computed on a three year moving
average); and
• No other method of accounting is regularly used to
determine income or loss for purposes of reports to
shareholders or others.
Taxpayers required to convert to the accrual basis of
accounting would be allowed to spread any adjustment
resulting from the change over a period not to exceed
six taxable years.

Tax Exem ption of Nongovernmental Bonds
Interest on state and local obligations is generally
exempt from Federal income tax. The proceeds of cer­
tain state and local obligations, however, are made
available to nonexempt businesses through industrial
development bonds, to homeowners through mortgage
subsidy bonds, and to others, such as students. It is
proposed that interest on obligations such as these, is­
sued by a state or local government on or after Janu­
ary 1, 1986, would be taxable if more than one percent
of the proceeds were used directly or indirectly by any
person other than a state or local government. A spe­
cial transition rule is provided for refunding of out­
standing obligations.

Corporate Minimum Tax
Corporations whose taxable incomes are reduced
substantially by specified “ items of tax preference”
are subject currently to an “ add-on” minimum tax of
15 percent of the amount by which the taxpayer’s
items of tax preference exceeds the greater of (a)
$10,000 or (b) the regular corporate income tax for the
taxable year. The new proposal would eliminate this
minimum tax, replacing it with an alternative mini­
mum tax. Alternative minimum taxable income would
be computed by adding to taxable income (loss) the ex­
cess of preference items over $10,000, subtracting a
threshold amount of $15,000, and making adjustments
for NOL carryovers attributable to preference items.
The alternative minimum tax then would be applied at
a rate of 20 percent. The foreign tax credit would still
be allowed
to offset minimum tax liability.
Federal Reserve Bank of St. Louis

Since the major bank preferences are repealed under
the proposal, the alternative minimum tax may not be
significant. The most common preference item remain­
ing would be accelerated depreciation on real property.

A new Capital Cost Recovery System (CCRS) would
modify the current Accelerated Cost Recovery System
(ACRS) in several respects. First, CCRS would adjust
depreciation allowances for inflation by means of a
basis adjustment. After reduction for the allowable de­
preciation in the prior year, an asset’s unrecovered
basis would be adjusted for inflation during the cur­
rent year, using an appropriate government index. The
applicable depreciation rate would be applied to the ad­
justed basis, rather than to the unadjusted original
cost as under ACRS.
Second, CCRS would assign all depreciable tangible
assets to one of six classes, rather than the present five
classes under ACRS. Each class, with a recovery
period between 4 and 28 years, would be assigned to
declining-balance depreciation rate according to CCRS
depreciation schedules. These schedules would switch
to the straight-line convention in the year which the
straight line method yields a higher allowance than the
declining balance rate. Under these schedules, a tax­
payer would be entitled to less of an accelerated write­
off in the early years of an investment in depreciable

Investment Tax Credit
The investment tax credit, along with various other
credits such as the rehabilitation credit and the busi­
ness energy credit, would be repealed under the new

Deny Tax Rate Deduction Benefit
Attributable to E xcess Depreciation
Accelerated depreciation deductions allowed under
ACRS and earlier law resulted in a deferral of tax
liability when compared to straight-line depreciation.
Since the proposal reduces the top marginal tax rate
from 46 percent to 33 percent for corporations, these
deferred tax liabilities would be repaid at a lower rate,
thus resulting in a “ windfall” benefit.
In order to prevent taxpayer from retaining this un­
expected windfall benefit, 40 percent of a taxpayer’s
cumulative “ excess depreciation” taken between Janu­
ary 1, 1980 and July 1, 1986, on assets placed in ser­
vice after January 1, 1980 and before December 31,
1985, would be included in income over a three-year
period. The first $300,000 of excess depreciation would
be exempt from this recapture rule. If a taxpayer’s
total depreciation taken during this period is less than
$400,000, this recapture rule would also not apply. The
effect of this proposal is to limit tax benefits and ex­
cess depreciation over the stated period to 33 percent.

For most banks, it is premature to make significant
planning decisions based upon the President’s pro­
posal. However, if the prospects for enactment of law
changes along the lines proposed by the President
begin to gain Congressional acceptance, it would be
prudent to develop a specific strategy for your bank to
minimize the negative impact of the changes.
Northwestern Banker, August, 1985


How to reduce
the risk in
evaluating computer
loans and leases
Written especially for
T he N o r th w e ste r n B a n k e r

Genesis Systems Corp.,
Apple Valley, Minn.

ECAUSE computer equipment is being used in­
creasingly as collateral on commercial loans, many
lending and leasing institutions face significant jeo­
pardy if they do not find ways to keep up-to-date on
current values of data processing equipment.
Whether a commercial customer requests a $300,000
loan for equipment acquisition or another desires a five
year lease on the same, what determines whether the
investment is sound? What are your assumptions re­
garding residual value or manufacturer’s life cycle on a
Sigma 9 Processor, an IBM 4361, a Dec Vax 11/780, or
a CAD/CAM architectural planning system?
Challenge to Bank Officers
These are typical problems posed to today’s lending
and leasing officers. Your officers have a major respon­
sibility to protect your financial institution’s assets
and to make sound business investments. But their
judgment can be only as sound as the information on
which they base their decisions. And, this information
is often shaky at best because of the continually chang­
ing computer hardware market. Lending and leasing
officers are put in a challenging position when you con­
• The multiplicity of hardware manufacturers;
• The near end of life cycles on hardware products
which were recently state-of-the-art;
• The manufacturer’s designed life cycles for the
• The rapid rate of new product introduction impact-

Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

ing the new and used market;
• The ups and downs in equipment pricing generally.
Response to Need Is Developed
To be both competitive and sufficiently collateral­
ized, one clearly needs informed guidance. With this in
mind, our company has developed the Equipment An­
alysis Report (EAR). On your desk within 48 hours o
your request, the EAR provides you with:
• The current wholesale and retail price of the equip­
• The estimated retail value of the equipment over
the next three years;
• The expected impact of new technology on such
equipment over the next 12 months;
• The current marketing effort of the manufacturer
as it affects that hardware.
The EAR has already demonstrated its effective
ness. Gaining accurate knowledge of the projected life
and retail value of the equipment specified has enabled
many lending and leasing officers to make intelligent,
factually-based decisions.
For example, a vice president of commercial loan
for a major East Coast bank recently requested an
E A R to determine the market value of data processing
hardware that was being pledged as collateral for a
loan. The insight provided by the E A R into current
market pricing on a non-IBM product was instrumen
tal in that bank’s decision to refuse the equipment as
Newsletter Discusses Specifics
Our monthly newsletter to subscribers of the EAR
program covers such topics as How to Minimize the
Risk in Residual Values, Lucrative Vertical Markets,
W hat’s Happening with Manufacturers, The Impact of
Foreign Products, Critical Factors in a Manufacturer’s
Product Life Cycle and Acquisition Phobia—Product
These topics have a broad impact on how bankers
should view not only lease arrangements with clients,
but also loans made to clients for the purpose of acquir­
ing data processing gear. Some key items that we try
to highlight are these:
1. The financial strength and product direction o
the manufacturer.
2. Competitive products
3. Developing technology
4. Software valuation and considerations

5. Foreign Manufacturers - direction, technology,
6. Pitfalls in corporate acquisitions (e.g. the acquisi­
tion of Memorex Corp. by Burroughs)
Education Needed on Risks
Additionally, bankers need to be educated on the
risks inherent in commercial loans to clients for the
purchase of DP hardware. In most cases, the equip­
ment is not taken as collateral. DP budgets, however,
are usually the single largest departmental expense of
a corporation. Hardware represents a significant per­
centage of that expense.
If equipment is depreciated on a five year basis, it is
fully possible that at the time the power is turned on to
the system (it then being considered “ used” gear), that
the depreciated value would show as being 100% of list
price but, in fact, the actual value could be 40%. Such a
loan made on a $500,000 system would result in
$200,000 in actual value backing the loan; hardly a
minimal risk position for a bank to be in.
The problems facing bankers today on lease and loan
decisions can be minimized if they are aware of the
potential risk involved in such transactions and have
the necessary information available to them at the pro­
per time for evaluation of risk. We feel our EAR pro­
gram fits that bill very nicely and that it is a unique
program in the market today.
I think there is no question that banks are missing

“The problems facing bank­
ers today can be minimized
if they are aware of the
potential risk involved in
such transactions.”
good opportunities for leases and missing out on be­
coming effective partners to clients by not providing
hardware evaluation services to those clients. With the
increased interest by banks in wooing small to medium
size businesses and in providing broad, related bank­
ing services, such a program would be invaluable to
bank and client alike. Stories abound in the banking
and leasing communities regarding disastrous residual
value decisions made on data processing equipment.
To provide an opportunity for banks to enter this
realm at minimal risk we have focused the 25 years of
Genesis’ experience, which bridges four generations of
computer technology, on the Equipment Analysis
Report (EAR) program.

Bankers Learn Hard Ag Facts of
Lending, Collections and Farm Bill

prevent the failure of a number of
Dr. Marten gave an extensive re­
view with overhead slides of a recent
ENIOR ag lending officers at­ Farm Journal survey that offers a
tending the National Agricul­ wide variety of statistics on farmers,
tural Bank Management School their debt, and their future. He said
sponsored by the American Bankers one-third are in deep trouble, owing
Association at Iowa State Univer­ two-thirds of farm debt; one-third
sity in Ames last month received a are in some trouble and owe the
large volume of information from other one-third, while one-third of
four presentations at the special farmers are in no trouble and have
Current Issues Seminar.
little or no debt. His research shows
Taking part were Dr. John F. young farmers are the most vulner­
Marten, staff economist for Farm able. For example, in central states
Journal, West Lafayette, Ind.; Don his figures show 55-57% of farmers
Powell, president, First National under age 44 have the heaviest debt
Bank of Amarillo, Tex.; James R. problems. That reduces to 44.1% for
Eatherly, chairman, John Birch, those age 44-54, 18.6% for 55-64,
president, and Dennis Buss, vice and just 8.1% for those over age 65.
president, all of First National
Dr. Marten gave his analysis of
Bank, Tonkawa, Okla., and Dr. the Farm Bill, as well as a prospec­
Sung Won Sohn, senior vice presi­ tive scenario for commodity prices.
dent and chief economist for NorMr. Powell went through a de­
west Corporation.
tailed outline titled “ Working into
Dr. Marten and Dr^ Sohn both Workouts,” discussing each step
said the Farm Bill considered by from identifying problem loans
Congress will be of short-term help, through the workout and payout
will be more free market-oriented, process.
but probably won’t be enough to
The three officers of the Okla­

Federal Reserve Bank of St. Louis

homa bank gave full details about
how their bank handles “ Govern­
ment Guaranteed Loan Programs.”
Their process, which involves hav­
ing a full grasp of every FmHA re­
quirement and knowledge of what
FmHA personnel expect from com­
mercial lenders, has made First Na­
tional of Tonkawa the leading
FmHA lender in Oklahoma.
As the after-dinner speaker, Dr.
Sohn also cautioned that Congress’
Farm Bill, while offering help to
farmers at a reduced level, will not
be a panacea. His survey of Ninth
District banks and farmers indicates
one-fourth of district farmers have
cash-flow problems. Of the 10% clas­
sified as very difficult, perhaps
another 4% will leave farming in the
next year.
Dr. Sohn blamed lack of federal ag
trade policy for part of the ag indus­
try’s ills. Our government, he said,
does not acknowledge that while we
insist on an unsupported, free mar­
ket policy, every other nation is tak­
ing our markets with their home
government subsidies. Many coun­
tries formerly dependent on U.S. ag
imports now have achieved or are
nearing self-sufficiency, such as
China — many with the help of our
export of ag knowledge and train­
Northwestern Banker, August, 1985

Highland Appointments Told®

Eagle Bank Elects President
Herbert G. Rautenberg was elected
president and CEO of the Eagle
Bank, Highland
at the May meet­
ing of the board.
Rayhill J. Hagist, CEO, was
a lso
e le c t e d
chairm an and
Elvin M. Foehner, senior board
Mr. Rauten­
berg came to
Eagle Bank following a distin­
guished career in international mar­
keting with the William Wrigley, Jr.
Company where his responsibilities
included the administration and
supervision of sales, advertising and
marketing for the company’s Cana­
dian operations. Prior to this ap­
pointment, he had established
W rigley’s marketing division in

Rockford Bk. Changes Told
First National Bank and Trust
Company of Rockford announced
the following promotions and ap­
Steven G. Meyers has been named
senior vice president-retail banking.
He was previously associated with
Illinois National Bank and Trust
Company of Rockford as vice presi­
dent of marketing and retail bank­
ing. Mr. Meyers assumes responsi­
bility for the personal banking divi­
sion which includes all consumer ser­
Gregory S. Abbott has been pro­
moted to vice president-administra­
tion for First National and its hold­
ing company, First Community
Bancorp, Inc. He assumes responsi­
bility for all bank staff functions in­
cluding: personnel, marketing/plan­
Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

ning and accounting. In addition, he
will assist in holding company ac­
quisition activity. Mr. A b b ott
joined First National in 1983 as vice
Jerry A. Lecklider, vice president
and controller, has been elected to a
similar position in the holding com­
pany. In addition to retaining his re­
sponsibilities at First National, he
will be responsible for the account­
ing, financial management and re­
porting for all member banks. Mr.
Lecklider joined First National in
1977 as a staff auditor.
Ilene K. Eisenberg has been
named vice president-marketing/
planning. Ms. Eisenberg was pre­
viously manager of product plan­
ning at InterFirst Corporation in
Dallas, Texas. She was also associ­
ated with Mercantile National Bank
at Dallas and Bank of Oklahoma,
Tulsa, in various marketing posi­
Scott A. Hendee has been pro­
moted to assistant vice president­
planning and research. Mr. Hendee
joined the bank in 1975 as a collec­
tor. He was previously market re­
search manager.

Elected I BA Vice President
Charles E. Waterman, executive
vice president and director of the
South Holland Trust and Savings
Bank, has been elected vice presi­
dent of the Illinois Bankers Associa­
tion (IBA). Mr. Waterman replaces
G. Thomas Andes, president, First
National Bank of Belleville, who
became president of the Association
in March.
As a banker, Mr. Waterman con­
tinues a family tradition dating back
to 1911, when his grandfather began
his own banking career. Mr. Water­
man himself started at the South
Holland Trust and Savings Bank as
assistant vice president in 1971.

Rock National Falls National Bank,
Highland, recently announced the
promotion of two bank officers and
the election of two board directors.
Pamela Erby has been promoted
to the position of vice president in
charge of consumer services. She
had served the bank as head book­
keeper, head teller, and most recent (|
ly as customer services officer.
Also promoted to vice president
was Vincent Dietzel. Mr. Dietzel is
in charge of lending, being promoted
from commercial loan officer. He •
was formerly the vice president of
South Park National Bank of Quad
Cities, the Americn Bank of Rock
Island, and regional manager for the
Associates Financial Services.
John L. Hoffmiller was elected to
the board. He is replacing his father
who has retired from the board after
serving since 1972.
James L. Reese, a partner in the
law firm of Blodgett, Reese, Merritt
and Albert, was also elected to the
board. He is currently serving the
city of Rock Falls as an attorney and
is past president of the Rock Falls
Chamber of Commerce.

Promoted at Decatur Bk.
Edmond J. Arseneault, president
of Soy Capital Bank and Trust Com­
pany, Decatur,
has announced
the promotion of
Timothy Radliff
to assistant vice
M r. R a d liff
joined the bank
in 1983 as an ad­
ministrative as­
sistant and grad­
uated from Illi­
nois State University with a BS in

Name Change in Elmhurst
At a special stockholders meeting
held last month, the shareholders of
Elm Marine Bancshares, Inc., Elm­
hurst, approved a name change for
the corporation from Elm Marine
Bancshares, Inc. to Illinois Marine
Bancorp, Inc. An independent multi­
bank holding company with consoli­
dated total assets of $442 million, Il­
linois Marine Bancorp is the parent
company of Elmhurst National
Bank, Bank of Clarendon Hills and
St. Charles National Bank.


Arlington Heights Adds One

Steven Schmoldt has recently
been elected vice president, finance,
of First Colonial
Mr. Schmoldt
was formerly as­
sistant vice pres­
ident, finance of
Colonial Bank
and Trust Co.,
C h ic a g o ,
g r o u p ’ s lea d
bank. He joined
Colonial Bank in
1976 and is a graduate of DePaul
University, Chicago.
* * *

Suzanne Morys has joined the
Bank & Trust Company of Arling­
ton Heights as commercial banking
• officer. Ms. Morys has eight year’s
banking experience with responsibil­
ities focused on direct lending for
the past five years. She has com­
pleted course study with AIB on
® lending administration and is cur­
rently enrolled in the Graduate
School of Banking in Wisconsin.

First lllini Acquisition


Meyer J. Jacobs, chairman of
Madison Park Bank in Peoria and
Malcolm E. Lambing, Jr., president
and CEO of First lllini Bancorp,
Inc., Galesburg, have announced an
agreement in principle for First IIlini to acquire the Madison Park
Bank. The acquisition is subject to
Madison Park shareholder and regu­
latory approval and is expected to
be completed early in 1986.
First lllini Bancorp, Inc., current­
ly has two wholly-owned bank subsi­
diaries. First Galesburg National
Bank and Trust Company in Gales­
burg has $155 million in assets. The
$14 million Abingdon Bank and
Trust Company of Abingdon was ac­
quired in 1984.

Displayed at Wheeling
An antique Stanhope Carriage
was on display July 1st through Ju­
ly 15th in the lobby of Main B a n k Wheeling.
The antique carriage, is owned by
Mr. and Mrs. Jack C. Thompson of
Wheeling and was provided through
the Wheeling Historical Society.
The Stanhope, named for its English
designer, the Honorable Fitzray
Stanhope, is a versatile 1-horse,
2-wheeled cart which came into
being in England around 1815.
Main Bank—Wheeling and the
Wheeling Historical Society are
planning on having additional inter­
esting antiques on display through
the summer.

Appointed, Promoted
in Morton Grove
Susan Hoffman-Warner has been
appointed accounting officer and
Barbara Neuman has been promoted
to assistant cashier at the First Na­
tional Bank of Morton Grove.
Ms. Hoffman-Warner joined the
bank in 1974. Ms. Neuman, who
also serves as head teller, has been
National since 1960.
Federal Reserve Bank of St. Louis

The board of Midwest Financial
Group, Inc. (MFG), the Peoria-based
holding company, recently named
Walter J. Charlton as chairman and
William Barnes III president and
CEO. Mr. Charlton and Mr. Barnes
will succeed David E. Connor, who
has resigned as M FG ’s president
and CEO and as a director, last
Mr. Charlton is also chairman of
First Trust and Savings Bank of
Kankakee, and MFG member bank.
Mr. Barnes is president, chairman
and CEO of the Citizens National
Bank of Decatur, also owned by
Mr. Charlton became an officer of
First Trust and Savings Bank of
Kankakee in 1950. He was elected to
the board in 1953, chosen president
in 1965 and chairman in 1979.
Mr. Barnes joined Citizens Na­
tional in 1947. He was subsequently
elected to the board, named chair­
man in 1971 and president and CEO
in 1980.



Lane Bank Group agreed last
month to purchase First Commer­
cial Bank of Rolling Meadows, Illi­
nois. The terms of agreement were
not disclosed and the purchase is
subject to regulatory approval.
According to Scott K. Heitmann,
Lane Banks’ president, Northwest
National Bank, the largest of the
Lane Bank Group will make the ac­
quisition and First Commercial will
become the suburban facility of
Northwest National.



Michael D. Lindsey has been ap­
pointed vice president in charge of
cash management at the LaSalle Na­
tional Bank. He wdll be responsible
for marketing and product develop­
ment of the cash management divi­
* * *

Eugene Miller has been elected to
serve on the board of directors of the
Exchange National Bank. Mr. Mil­
ler is executive vice president and
chief financial officer of U.S. Gyp­
sum Corporation.

Charles R. Gardner, president of
the Chicago Dock and Canal Trust
and George J. Butvilas, executive
vice president of Boulevard Bank
have been elected to the board of
* * *
Boulevard Bank.
Mr. Gardner is a CPA and has
been with Chicago Dock and Canal
Stanley R. Banas has been elected
Trust since 1981.
to the board of directors of The MidMr. Butvilas joined Boulevard City National Bank of Chicago. He
Bank in 1980 as senior vice presi­ is president of Stanley Spring &
Stamping Co.
Northwestern Banker. Auaust. 1985

Sunday, August 25

Ecumenical Services.
Ranch style breakfast.

Wayzata Bk. Adds New Pres.

IBM Plans 24th Annual Convention
HE Independent Bankers of
Minnesota will hold its 24th an­
nual convention August 22-25 at
Breezy Point Resort, Brainerd. Of­
ficers for this year’s convention are
President, James A. Clark, Lake
Crystal National Bank; First Vice
President, J. Stephen Schmidt, The
Northern Bank, Anoka; Second Vice
President, Kermit Mahlum, First
National Bank, St. Peter; Treasurer,
Robert Jacobson, American Na­
tional Bank and Trust, St. Paul, and
Executive Vice President, Norbert
A. McCrady, Independent Bankers
of Minnesota, Bloomington. The
program schedule follows:
Thursday, August 22
12:00 R eg istra tio n /In form a tion
desk opens.
4:30 Exhibit hall opens, Prize
drawing (must be present to
5:30 Hospitality reception. Barbeque, Minnesota roundup
Friday, August 23
8:30 Business session call to
Greetings from the presi­
dent—James A. Clark, Lake
Crystal National Bank.
Convention preview—Ker­
mit Mahlum, Second Vice
President, First National
Bank, St. Peter.
Independent Bankers Asso­
ciation of America—Presi­
dent, B.F. (Chip) Backlund,
Bartonville Bank, Bartonville, 111.
G uest speakers—H arvey
Lederman, former director,
Walter Heller Institute for
Small Business, Chicago, 111.
Michael Hatch, Commis­
sioner of Commerce. Jim
Miller, Deputy Commis­

Reserve Bank
of St.August,
Louis 1985



sioner of Commerce.
General services group pre­
sentation—Larry Sorenson,
GSG chairman, executive
vice president, Arlington
State Bank.
A ttention spouses—Com­
munications Workshop, Dr.
Jerie McArthur, Professor
at U of M.
Men’s flight golf tourna­
Hospitality reception.
Open dinner hour.
Saturday, August 24



Business session call to
Association report—Presi­
dent, Jim Clark, Lake
Crystal National Bank; Ex­
ecutive Vice President, Norb
McCrady, Bloomington.
Panel discussion—“ Inter­
state Banking,’ ’ Thomas H.
Huston, Superintendent of
Banking, Iowa; John A.
Brown, president, Indepen­
dent Community Banks of
North Dakota; David Ballweg, president, Independent
Bankers Association of Wis­
consin; Neal Peterson, part­
ner, Peterson, Engberg, &
Peterson Law Firm.
Special guest presentation—
U.S. Congressman Tim Pen­
A tte n tio n s p o u s e s —fe a ­
tured speaker: Jane Curry as
Samantha Allen Smith.
Open afternoon.
Hospitality reception.
Dinner dance - Jules Her­
man Orchestra.

David A. Shern has joined Anchor
Bancorp, Inc., Wayzata, as president
and director. He
was also elected
a director and of­
ficer of the First
National Bank
of Wayzata and
chairman of First
Bank of Minne­
sota, West St.
Most recently,
Mr. Shern had
been Deputy Commissioner of Com­
merce in charge of financial institu­
tions for the state of Minnesota. He
began his banking career with First
of St. Paul in 1949 in its credit de­
partment and brings years of experi­
ence to Anchor Bancorp, Inc.

Elected in Duluth
First Bank Duluth has announced
the election of Kenneth R. Olson as
senior vice president and senior
lending officer.
Mr. Olson joined First Bank Du­
luth in 1961 as a commercial teller
and entered the bank’s management
trainee program in 1964. He has
served on the staff of the mortgage
loan department, as manager of the
bookkeeping, proof and transit de­
partments and as assistant cashier,
commercial loans. In 1970, Mr.
Olson was elected assistant vice
president and the following year was
named vice president.

Appointed in Windom
Donald G. Victor, cashier, has
been appointed manager in charge of
the retail bank­
ing center at
First Bank Win­
d om . H e repl a ce s
D ean
Bertsch who has
accepted a posi­
tion as a com­
mercial lending
officer at First
Bank St. Cloud.
M r. V ic t o r
began his banking career with First
Bank System in 1978.

Two Firsts m ake
a fo rce in correspondent banking.
First Bank Minneapolis and First Bank Saint
Paul Correspondent Banking Departments have joined
forces to becom e First Bank Correspondent Banking.
We combined all the resources o f two o f the largest
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 o f any corres­
pondent in the Upper Midwest. It means you can build
a solid banking relationship with the largest staff o f
professional calling
officers in the area. And it
means you can rely on
the resources o f our
banking officers to solve
your specialized, multi­
bank, agricultural and
non-credit needs.
We reorganized to
fit the changing banking
world. Mm still need
regular contact with our
calling officers for bank
stock financing, standard
overlines and other credit
services, so w e left that side o f our organization
unchanged. But, you also needed more and more advice
about the rapidly changing world o f deregulated
banking. And so w e’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 o f our specialty banking officers are experts in their
ow n 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 o f the resources and expertise
o f 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 o f banking.
At First, good news is all you get.

First Bank

Federal Reserve Bank of St. Louis

First Bank Minneapolis

First Bank Saint Paul

First Bank Place
Minneapolis, MN 55480
(612) 370-5474

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


Norwest Bank Midland recently
announced the following elections
and promotions:
William J. Mandel, vice president, consumer

thia J. Strand,
vice president,
private banking
manager; Ross
H. Buffington,
a ssista n t v ice
president, financial institutions
group; Jeanne Lowe, assistant vice
president, consumer banking; Kathy
Bruckbauer, personal banking offi­
cer, consumer banking; Teresa
Gadach, financial officer, financial
department; Patricia A. Hannula
consumer loan officer, consumer
Mr. Mandel joined Norwest Bank
Midland in 1980 as an assistant vice
president of consumer banking. He
received a BA degree in social
sciences from the College of St.

and trust officer. He received a BS
degree in agricultural business from
Northwest Missouri State Universi­
ty Maryville, Mo. in 1980.
Ms. Lowe began at Norwest Bank
Midland in 1960 as a teller and in
1965 was promoted to teller super­
visor. From 1969 to 1973, she served
as staff support for several depart­
ments and was promoted to con­
sumer banking representative in
1975. She became a consumer bank­
ing officer in 1976.
Ms. Bruckbauer began her career
with Norwest Bank Midland in 1974
as a full service and savings draft
teller. In 1979 she advanced to
senior savings draft teller and later
to lead teller. In 1981, Ms. Bruck­
bauer joined the consumer banking
department as a consumer banking
Ms. Gadach began at Norwest
Bank Old St. Anthony in 1971
where she served as an installment
loan clerk and in 1979 was promoted
to staff accountant. In 1980, she was




Ms. Strand began her Norwest
banking career in 1983, as a private
banking officer at Norwest Minnea­
polis and joined Norwest Corpora­
tion in 1984 as a retail banking officer.
Mr. Buffington began his career
at Norwest Bank Atlantic, Atlantic,
in 1981 as assistant cashier
Reserve Bank
of St.August,
Louis 1985



prom oted to accounting group
leader and later became the account­
ing manager. She transferred to
Norwest Bank Midland in 1984, in
the position of accounting reconciled
Ms. Hannula’s Norwest Bank
Midland career began in 1980 as a
savings and draft teller and later
lead teller at the St. Louis Park of­
fice. In 1981, she was promoted to
personal banking representative at
the Government Center office.
* * *
Arthur J. Rolnick, vice president
and deputy director of research, has
been named senior vice president
and director of research at the Fed­
eral Reserve Bank of Minneapolis.
Mr. Rolnick joined the Minneapo­
lis Fed in 1970 as an associate econo­
mist. He was named assistant vice
president and manager of regional
and banking studies in 1979 and pro-*
moted to vice president and deputy
director of research in 1980. During
the 1981-82 academic year he was
granted a sabbatical leave and
served as a part-time visiting profes­
sor at Boston College.
Preston J. Miller, monetary advi­
sor, will succeed Mr. Rolnick as vice
president and deputy director of re-<
The Federal Reserve Bank also
announced two official staff promo­
Ronald E. Kaatz, 49, vice presi-*
dent of automation services, has
been named senior vice president.
He will have responsibilities for au­
tomation services, personnel, plan-1
ning and control, administrative ser-j
vices, building, and protection.
Susan J. Manchester, 39, assis­
tant vice president of data systemsl
services, has been named vice presi-|
dent of data systems and informa­
tion services.

Minnesota News





Norwest Corporation recently an­
nounced Lloyd P. Johnson, who be­
came president and CEO in March
1985, was elected to the additional
post of chairman.
As chairman, he succeeds John
W. Morrison who resigned after
serving in that position since 1981.
Prior to joining Norwest, Mr.
Johnson was vice chairman and
member of the office of the chief ex­
ecutive of Security Pacific National
Bank and its holding company, Se­
curity Pacific Corporation, Los
Angeles. He is a past president of
the California Bankers Association
and also of the San Francisco Clear­
ing House.
Norwest also announced the appointment of John E. Ganoe as vice
president and manager of standards
and procedures. Mr. Ganoe will
direct a task force to identify and
im plem ent standard operating
procedures for Norwest’s banking
Mr. Ganoe joined N orw est’s
banking region IV, in Iowa, in 1983
as regional controller, and during
1984 was named chief administra­
tive officer of Norwest Bank Des
Moines. Prior to joining Norwest, he
was chief financial officer of Banks
of Iowa in Des Moines.


American National Bank also an­
nounced Robert L. Nelson, vice
president/manager, aircraft divi­
sion, has recently graduated from
the Stonier School of Banking which
is sponsored by the American Bank­
ers Association.



The following four promotions
have been announced by MarquetteHolm Insurance Agency, a subsi­
diary of Bank Shares Incorporated:
To vice presidents—Loren L. Bakken, sales, and David N. Franske,
To assistant vice presidents—
Donna M. Collins, administration
and sales, and Maureen A. Sicard,
personal insurance.



Charlyne K. Hovi, manager of the
IDS Center Marquette Bank Min­
neapolis facility; Patricia A. Smoley,
personal banker and senior services
manager; Joseph W. Stauber, assis­
tant vice president in the loan re­
view department of the business ser­
vices group; Mark LeMay, assistant
trust officer; Sue A. Stredelman,
assistant vice president in the execu­
tive financial services division, and
Violet Zumwinkle, personal banking
officer and main lobby manager.






American National Bank of St.
Paul has announced the promotion
o f Donald R.
Rigsby to vice
president and as­
sistant manager
of the aircraft
department and
Susan AtkinsMr. Bakken joined the agency in
Harris to assis­
1980 and has been an account execu­
tant vice presi­
tive. Mr. Franske, who joined the
dent, special as­
firm in 1979, previously was the
set administra­
commercial insurance manager for
Mr. Rigsby joined American in the agency.
Ms. Collins, an eight-year em­
1966 as an installment credit officer
of the agency, previously was
and was promoted to assistant vice
assistant. Ms. Sicard
president in 1969. In 1975, he was
assigned to the aircraft department joined the agency in 1981 and has
which provides financing for private served as manager of personal insur­
and small corporate aircrafts on a ance.
* * *
nationwide basis.
Ms. Atkins-Harris began her ca­
Marquette Bank Minneapolis re­
reer with American in the internal cently announced the following pro­
auditing department in 1979. In motions and new hires: Neil M.
1981, she joined the commercial Brozen, unit bank controller; Mary
banking department as a credit an­ P. Dredge, assistant vice president
alyst and was promoted to commer­ in the cash management department
cial banking officer in 1983.
of the business services group;
Federal Reserve Bank of St. Louis





Mr. Brozen joined the bank from
Arthur Andersen & Company,
where he served as acting manager
and tax senior.
Ms. Dredge has been employed
for more than four years by Norwest
Bank Minneapolis, where she most
Northwestern Banker, August, 1985


Minnesota News

recently served as assistant vice
president, cash management depart­
Ms. Hovi, who joined Marquette
Bank Minneapolis in 1982, had been
manager of the Marquette Bank
Minneapolis Centre Village facility.
Ms. Smoley had served as an ad­
ministrative assistant for Marquet­
te Bank Minneapolis.
Mr. Stauber joined the bank from
ITT Industrial Credit Company,
where he served as an investment
Mr. LeM ay, previously had
served as an attorney for the law
firm of Hollander & Hadberg.
Ms. Stredelman had served as as­
sistant vice president in the com­
mercial banking department of
Norwest Bank St. Paul.
Ms. Zumwinkle has more than 36
years of banking experience and
most recently served as assistant
cashier and operations officer, Nor­
west Bank Camden.
* * *
St. Anthony Park State Bank, St.
Paul, has announced the election of
Bonnie Warren as bank auditor.
Most recently, Ms. Warren held
the position of cashier and opera­
tions officer of Town and Country
Bank in Maplewood. She has also re­
ceived a broad background of bank­
ing experience at the Grand Canyon
State Bank in Arizona and the Oak
Park Heights State Bank of Still­



Jackson L. Allen, Jr. has joined
First Asset Management, a Minnea­
polis-based member of First Bank
System, as director of marketing.
Mr. Allen was formerly vice presi­
dent of marketing for DeMarche A s­
sociates of Kansas City, a leading
consulting concern in the pension
fund industry.
First Asset Management is en­
gaged in managing money in the
pension and profit-sharing industry.
The firm currently manages em­
ployee benefit assets totaling $1.9



Bremer Financial Services, Inc.,
St. Paul, has announced the addition
of Therese Zangs Krech to its staff
as marketing officer. She will be re­
sponsible for market research activi­
ties and product management.
Previously, Ms. Krech served the
Norwest Corporation as a research
and market planner.
Federal Reserve Bank of St. Louis

Norwest Bank St. Paul, N.A. re­
cently announced the election of Ar­
nold A. Niemela as systems officer
and Margaret Reller as consumer
lending officer.
Mr. Niemela joined Norwest Bank
South St. Paul in 1969 and is pre­
sently located at Norwest Bank St.

Preferred Lenders are authorized
to guarantee qualifying small busi­
ness loans without sending the ap­
plication package to the SBA. The
lenders perform almost all servicing q
and liquidation actions—determin­
ing eligibility and credit worthiness,
loan size, structure, collection and li­
quidation—without referring to the
According to Stan Gove, First
Bank vice president and head of the
Government Guaranteed Loan Ser­
vices Division for the 15 Metropoli­
tan First Banks, the PLP désigna-®
tion will benefit all First Banks in
the Metropolitan/Twin Cities.



Ms. Reller joined Norwest South
St. Paul in 1969 and is presently
located at Norwest Bank St. Paul as
personal banker consumer lending



Sonia L. Ascheman has been
elected human resource coordinator
for the Central
Market of First
Bank System ,
Inc., which is
c o m p r is e d o f
First Bank Lake
in Minneapolis,
F ir s t
B an k
Grand and First
Bank Security in
St. Paul. She will
manage the hu­
man resource function for the Cen­
tral Market banks, which involves
the management and administration
of personnel services to the seven fa­
cilities included in that market.
Prior to this appointment, Ms.
Ascheman served as human re­
source representative for the Central
Market. She began her career in hu­
man resources in 1981 at the former
First Bank Minnehaha, now First
Bank Lake.



The U.S. Government Small Busi­
ness Administration (SBA) has
awarded “ Preferred Lender” status
to First Bank Minneapolis. The Min­
neapolis bank is one of only 71
banks across the United States to
receive the Preferred Lender Pro­
gram (PLP) designation and the
only bank so designated in the
Metropolitan/Twin Cities.



The Minneapolis chapter of the
American Bankers Association’s
American Institute of Banking,
serving bankers in the greater Hen­
nepin County area, was recently
honored with the institute’s highest
com m en dation —the Joseph E.
Chapman award.
Duane Ostlund, chairman and
Thomas Richards, executive direc­
tor of the Minneapolis chapter ac­
cepted the award on the chapter’s
behalf at the culmination of the Na­
tional AIB Leaders Conference,
which was held June 9-12 in Los

Rochester Addition Told
Stephen J. Arbour has assumed a
m anagem ent p o s itio n in the
commercial loan division of Norwest
Bank and will be located at Norwest
Bank Rochester. Mr. Arbour bega
his banking career with First Bank
Duluth. He moved to First Bank
Minneapolis in 1975, and, in 1978, to
First Bank Northfield as vice presi­
dent and manager of commercia
and agricultural loans. In 1980 he
became vice president, second offi­
cer, with responsibility for personnel
and credit. He moved to First Bank
Rochester in 1982 as vice president,
commercial loans. Most recently he
served as senior vice president in
commercial lending.

Added in Chanhassen
Denny Gearou has joined the
Chanhassen Bank as operations of­
ficer. He previously served for seve
years in operations and loans at th
Minnetonka Bank in Excelsior.

’ Face the future w ith familiar feces.
W hen investm ent profes­
sional Ralph Nelson and
correspondent banker Bill
Addington team up to
serve your bank, you’re
dealing w ith

people w ho have been
delivering outstanding
service over a long period
o f time.
The Investm ent Portfolio o f your bank represents a
significant portion o f its total assets. So w hen you m ake
investm ent decisions, it’s important that you deal w ith
people w ho know you, your investm ent philosophy,
and the asset/liability m anagement policy o f your bank.
It m akes a lot o f sense to tie your correspondent
needs to people w ho work as a team. Ralph is only a
phone call away and Bill works w ith your bank regularly
It is comforting to face the future w ith familiar faces.

Federal Reserve Bank of St. Louis


Marquette Bank

Member FDIC

Investments, 612-341-6542
WATS: 1-800642-7582


Minnesota News

Financial Mkts. Conference
Held in Minneapolis

A1 Mueller recently joined W est­
ern Bank, St. Paul, as assistant vice
president of the commercial loan de­
Mr. Mueller served as commercial
banking officer at First National
Bank of St. Paul prior to joining the
staff at Western Bank.
Mr. Mueller is a graduate of the
University of Minnesota with a
BBA degree.

Bob Brown, right, president of Norwest
Capital Markets, Inc., was moderator of a
panel discussion on the economy at the
first annual Financial Markets Conference,
sponsored by Norwest Investment Services,
Inc. June 18 in downtown Minneapolis. On
the panel were nationally-known money
market economists, left to right, Alan
Lerner, Bankers Trust Company; Ed Sawicz,
Discount Corporation of New York; and
David Jones, Aubrey G. Lanston & Co., Inc.
More than 225 Norwest customers attended
the day-long conference which also in­
cluded workshops, a reception and a lun­
cheon speech by Gary Stern, president of
the Minneapolis Federal Reserve Bank.

Marquette Lease Services, Inc.,
the lease financing subsidiary of
S h a res
Inc., has named
Evelyn Lange
a d m in istra tiv e
Ms. Lange has
worked in vari­
ous capacities at
Marquette Bank
Minneapolis, the
lead bank o f
B an k
S h a res
Inc., for nearly nine years. Most re­
cently, she served as an investment
operations officer in the financial
group of Marquette Bank Minnea­



•The Minnesota Chapter of Robert
Morris Associates—the national as­
bank loan and
credit officers—
has elected its
new slate of offi­
cers and direc­
t o rs for the
1985-86 year.
The following
b a n k e r s were
voted into office;
President, Philip P' GALLIVAN>JRJ. Gallivan, Jr., senior vice president
of Marquette Bank Minneapolis;
Vice President, John F. Crinklaw,
senior vice president of National
City Bank, Minneapolis; Secretary/
Treasurer, Michael R. McHugh, se­
nior vice president of Norwest Bank,
Bloomington. In addition, three
bankers were elected to the chap­
ter’s board for two year terms. They
are Richard L. Parnell, vice presi­
dent of First Bank Minneapolis;
Norman T. Sampson, president of
Norwest Bank Red Wing and past
president of the Minnesota chapter,
and Robert L. Stehlik, president of
First Bank Southdale.



Norwest Corporation announced
last month the completion of the
sale of the mortgage servicing opera­
* * *
tions of its subsidiary, Norwest
Mortgage, Inc., to GMAC Mortgage
JoAnn Mortenson has been re­ Corporation, a subsidiary of General
cently elected a commercial banking M otors Acceptance Corporation
officer and Howard R. Palmer a (GMAC).
The transaction included the ser­
credit officer of Norwest Bank Cen­
vicing rights to approximately $11
tral, N.A.
Ms. Mortenson joined Norwest billion in real estate mortgages, a
Bank Central in 1981 as a credit 160,000 square foot office building
analyst. She became a credit officer in Waterloo, Iowa, and seven com­
mercial mortgage production offi­
in 1982.
Mr. Palmer joined Norwest in ces.
Norwest Mortgage’s 42 residen­
1982 as a staff auditor for Norwest
Credit Services, Inc. Prior to joining tial loan production offices in 23
Norwest, he worked as an examiner states were not included in the sale.
with the North Dakota State Bank­ Norwest will sell to GMAC qualified
servicing rights to residential mort­
ing Department.
Northwestern Banker, August, 1985
Reserve Bank of St. Louis

gages originated by these offices for ®
a period of at least three years.



Norwest Corporation and Geraldw
D. Hines Interests have selected
Cesar Pelli, New Haven, Conn., as
the architect for the Norwest Center
in downtown Minneapolis.
The center, consisting of an office**
tower of approximately 40 stories
and one million square feet, will oc­
cupy the east portion of the block
bounded by Marquette Avenue, a
Nicollet Mall, and 6th and 7th
Streets. The new center will accom­
modate Norwest’s headquarters and
its lead bank, Norwest Bank Min­



W. Paul Schmechel has been
elected to the board of First Bank
System, Inc., Minneapolis. Mr.
Schmechel is chairman and CEO of
The Montana Power Company,
Butte, Montana, a position he has
held since 1984.

Fergus Falls Changes Told
The board of Security State Bank,
Fergus Falls, recently announced
the addition of two new staff mem­
bers and the promotions of three of­
New staff additions are Herbert
J. Wogsland, senior vice president
and Harold O. Hexum, insurance
Promotions include Douglas J.
Dietman, promoted to senior vice
president; Valerie Fick and Karen
Frederick both promoted to vice
Mr. Wogsland’s banking career
began with the Walsh County Bank
in Graffton, N.D. He was employed
by First Bank System for twenty
years concluding his career with
First as president and chairman of
First Bank Edina, Edina, Minn. He
will be joining the bank on August
Mr. Hexum served as vice president-Marketing of Video Brochures,
Inc. and was also associated with
the Travel Bureau. He joined the
bank’s insurance group in late July.
Mr. Dietman joined the bank in
1977 from the First National Bank
in Hastings, Minn. In addition to
being named senior vice president,
he was named senior lending officer.
Ms. Fick joined Security State

Minnesota News

Bank in 1968 as a secretary. She cur­
rently manages part of the bank’s
loan portfolio and supervises the
marketing and advertising function
of the bank.
Ms. Frederick joined the bank in
1967 as a proof operator. She cur­
rently supervises the operations
area of the bank and serves as per­
sonnel officer.

ager of the Minnetonka Office of
First Bank Hopkins. Mr. Erpelding
began his career with First Bank
Produce in 1966 in the operations
department. His most recent posi­
tion has been assistant vice presi­
dent and commercial lending officer
at the Hopkins Office.

Three Changes in Mankato
Norwest Bank Mankato recently
announced the following promotions
and addition to the staff.
Norbert J. Harrington has been
promoted to senior vice president/
commercial & agricultural depart­
ments. Mr. Harrington joined Nor­
west Bank Mankato in 1974 and was
most recently promoted to vice
president of the commercial depart­
ment in 1981.
Mark W. Murphy has been pro­
moted to assistant vice president/
commercial department. Mr. Mur­
phy joined Norwest Bank Mankato
in 1984 as client executive-financial
institutions group, and prior to this
was employed at Norwest Bank
Fairbault as head of the agricultural
department and Norwest Bank
Northfield as an officer.
Alan W. Mason has joined Nor­
west Bank Mankato’s staff as com­
mercial banking officer. Mr. Mason
has been involved in the finance in­
dustry since 1975, most recently
with First Newton National Bank in
Iowa as manager and assistant vice

Hopkins Bk. Names Five
First Bank Hopkins has recently
announced the following manage­
ment changes:
Bill Behrenbrinker has been
named assistant
vice president
and commercial
lending officer in
the commercial
departm ent at
the Hopkins Of­
fice. Mr. BehrenB. BEHRENBRINKER
brinker began
his banking career with First Banl
Hopkins in 1978 as a collector. Hi;
most recent position has been assis
tant vice president and manager o:
the Minnetonka Office.
Earl Erpelding has been namec
vice president and man
Federal Reserve Bank of St. Louis


dent of MBA, the school’s curricu­
lum has been continually upgraded
during the past 20 years, but it con­
tinues to be designed to develop
bank managerial skills in a one-week
course in two consecutive years. In
addition to the two weeks of study
at MSB, students are also required
to complete a comprehensive be­
tween year project.
The curriculum at MSB was de­
veloped by M B A in cooperation
with the American Bankers Associa­
tion as part of a professional devel­
opment program.

Three Elected in Park Rapids
Northwoods Bank of Minnesota,
Park Rapids, announced the election
Greg Hilding has been named o f three new
commercial lending officer in the bank officers.
commercial department. Mr. Hild­ Elected to the
ing began his banking career with positions of as­
First Bank Hopkins, in 1983 as a sistant vice pres­
idents are Brad
management trainee.
Paul Elsome has been named per­ Dammann and
sonal banking officer in the personal Dona Stansbury.
banking department. Mr. Elsome David Gast was
began his banking career with First elected to the po­
Bank Hopkins in 1984 as a personal sition of con ­
banker. Previous to that, he was a sumer loan offi­
sales representative for Josten’s cer.
Mr. Dammann joined the bank
Corporation in Kansas City, Kan.
June 1st and was most recently a
consumer loan officer with Norwest
Bank Redwood Falls.
Ms. Stansbury has been employed
at the bank since 1979 and was most
recently manager of the Nevis office.
Mr. Gast has been with the bank
since 1983 as a loan assistant.




Lynn Albinson has been named
personal banking officer and assis­
tant manager of the Minnetonka Of­
fice of First Bank Hopkins. Most re­
cently, Ms. Albinson was assistant
manager of consumer lending for
Minnesota Federal Savings and
Loan. She began her banking career
with Minnesota Federal in 1977.

MBA Holds 20th MSB Session
The Minnesota Bankers Associa­
tion (MBA) held the 20th session of
the Minnesota School of Banking
(MSB) June 23-28 at St. Olaf Col­
lege, Northfield, with 157 bankers
from throughout the state in atten­
According to MSB Director Tru­
man Jeffers, executive vice presi­



Brainerd Bk. Receives Award
First American Bank of Brainerd
was recently presented with the
Minnesota Keystone Award, joining
115 Minnesota firms recognized for
their ch aritable con trib u tion s
through a policy of giving more than
two percent of their pre-tax earnings
(Turn to page 53, please)
Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

W E’V E


W e’re
First Wisconsin,
a major provider
of acquisition financin
in the Midwe
And we’re different.. .cut from
the same cloth as traditional
bankers, but representing
a whole new world of banking
Bringing you the best in
future-driven bank financing
and wholesale

Helping you break
new ground with strategic,
creative financing.
And offering you total
team commitment—before your
acquisition and beyond.
Performance is our strong
suit. Call your First Wisconsin
correspondent banking officer
at (414) 765-4459.

FD IC © FW C 1985
Federal Reserve Bank of St. Louis


Merger in Appleton

Over SlVfe Million in New Business

United Banks of Wisconsin, Inc.
shareholders have voted overwhelm­
ingly to approve the company’s mer­
ger with Valley Bancorporation, Ap- <
Upon consummation of the mer­
ger, holders of United Banks of W is­
consin, Inc. common stock will re­
ceive either $29.25 per share or 1.27 1
shares of Valley Bancorporation
common stock for each share of
United Banks of Wisconsin Inc.
common stock.
Robert C. O’Malley will serve as 1
vice chairman of Valley Bancorpora­
each employee received two dollars tion, as president of United Bank,
for every new Inflation Fighter A c­ Madison and as regional vice presi­
count opened, plus each received dent for the Badger region. Madison
credit towards the grand incentive will serve as a corporate headquar- 1
bonuses. These prizes included three ters for Valley Bancorporation.
trips for two: ten days in Hawaii,
Valley Bancorporation had yearone week in Jamaica, and a three end assets of $1.18 billion. After
day weekend in Las Vegas, all ex­ completion of the merger, Valley
penses paid and fun money included. will have assets of approximately
The trips were given in addition to $1.8 billion and will deliver financial
normal vacation time.
services through 71 Wisconsin loca­
The year-long program, which tions.
was completed June 1, was a com­ Green Bay Promotes Three
plete success according to bank offi­
First Wisconsin Bank of Green
cials. After the first three months of
the program, the Inflation Fighter Bay announced the promotion of
Account had over a million dollars in Christine A. Neuman to vice presi­
deposits. At the end of October, dent, Tina Mongin-Dieterich to per­
1984 the balance had risen to over sonnel officer and Annita L. Weber
one and one half million. Said bank to personal banking officer.
Ms. Neuman joined the organiza­
President James M. Trumble, “ Not
in 1971, and became a customer
only did the introduction of this new
account assist in the asset/liability service officer of the First Wisconsin
management side of the bank, but Bank of West Green Bay when it
opened in 1974. Her most recent
also, the Medford residents were de­
lighted with the person-to-person position was assistant vice presi­
dent and auditor of both First Wis­
approach to introduce the account.
consin Banks in Green Bay.
All accounts of the bank were im­
Ms. M ongin-D ieterich join ed
pacted favorably.” New account per­
First Wisconsin in 1983, as the per­
sonnel with additional staffing
sonnel administrator. Prior to that
worked several weeks of overtime
she was employed in the personnel
processing new acccount applica­
field with Green Bay Packaging
Inc., and Associated Kellogg Bank.
Mr. Trumble also remarked on the
Ms. Weber joined the organiza­
enthusiasm of the bank staff to­ tion in 1979 and since that date has
wards the promotion. “ While some held the various positions of teller,
were at first reluctant to go door-to- personal banking representative and,
door, it soon became apparent that currently, assistant manager of re­
each was astonished by the resi­ tail banking.
dents’ acceptance; in fact, many
were invited for coffee, donuts and Appointed to Council
short visits!”
F&M Bank Menomonee Falls has

Bank Uses Door-to-Door Campaign

NCENTIVES are being used in all
businesses today, and manage­
ment uses them because they work.
Having a good product, motivated
sales people and exciting incentives
will bring in the business.
When the management of the
Medford National Bank, located in
the rural central Wisconsin commu­
nity of Medford, decided to imple­
ment an employee incentive pro­
gram, they wanted to kick it off in a
big way by introducing a new, com­
petitive and innovative product.
This resulted in the birth of the
Medford National Bank Inflation
Fighter Account.
The account was a completely
new product that had never been of­
fered in the area and one that would
benefit savers of all age groups. The
Inflation Fighter Account is a 32
day maturity savings account with a
minimum balance requirement of
only $100. The account’s interest
rate is tied to the bank’s index rate,
floating daily. The starting rate was
ten percent. The minimum rate
would never be less than the bank’s
regular passbook rate.
After deciding upon the new pro­
duct to be offered, the next items to
be addressed were employee involve­
ment, incentives, and a method to
introduce the new product to area
residents. It was agreed to use a
door-to-door campaign by all bank
officers and employees to introduce
the new account. Employees would
make visits to residents on their
own time. As a by-product of the
campaign, the bank initiated a
short, five question survey related
Winners of the three trips were
to banking and bank services.
Employees were also provided with Arlene Handel, who brought in 54
cards for cross-selling other bank new accounts totaling $263,844;
Marlene Schroeder, with 40 new ac­
services to new customers.
Employee motivation was accom­ counts totaling $103,693, and Laura
plished through the use of monetary Potaczek, with 23 new accounts to­
FRASERincentives. For example, taling $55,885.

, August,
Reserve Bank
of St.
Louis 1985

appointed William H. Wetterau to
the bank’s advisory council. Mr.
Wetterau is executive vice president
of Reinz Wisconsin Gasket.
(Turn to page 45, please)

Prior to joining Norwest, Mr.
Wuebben was plant director at
Yankton College.
Norwest Bank South Dakota also
announced that David K. Hepper
joined its staff in Brookings as an ag
banking representative.
Mr. Hepper had been with the
Miller School District as a voca­
tional ag instructor and FFA advi­
sor since 1982.

Changes Told in Sioux Falls

Huron, has appointed Pat Tschetter
real estate representative and Bettina Sinclair marketing representa­
Group Mtg. Agenda Announced
Ms. Tschetter joined F&M in
The agenda for the five South Da­
1976 and has served in a variety of kota group meetings has recently
positions before joining the real es­ been announced by the South Dako­
tate department in 1982.
ta Bankers Association’s headquar­
Ms. Sinclair has been employed at ters in Pierre. The program will be
F&M since 1979, starting as secre­ as follows:
tary to the farm and trust depart­
ments. Most recently, she has been
1:30- 2:00 Registration.
executive secretary to the president.
2:00 Call to order and welcome—
F&M Bank has also created a per­
F a lls M. MYERS
Burdette Solum, S D B A
sonal banking department and
M s.
M y e rs
district president,
joined First Bank of South Dakota named three women to the positions
Norwest Bank South Dako­
in 1978 as the Sioux Falls personnel
ta, N.A., Watertown.
They are Marilyn Hanson, who
manager and was elected personnel
“ Now That I Have a Bank
officer later the same year. She was will also serve as manager of the per­
Company, What Do
elected assistant vice president in sonal banking department, Phyllis
I Do With It?’ ’—Dr. Doug­
1980 and vice president and man­
las V. Austin, president,
Ms. Hanson joined the F&M in
ager of the commercial loan division
Douglas Austin and Associ­
1974 as a proof operator and has
I in 1983.
Inc., Toledo, Ohio.
Mr. Schock joined the bank on a also been a bookkeeper and a cus­
5:00 South Dakota Bankers A s­
part-time basis while attending col­
sociation Insurance Services
Ms. Ross has been at F&M since
lege. Following his graduation from
G. Hendrix,
Augustana College in 1981, he was 1947 and has been a proof operator,
vice president/insurance,
rehired by the bank as a manage­
South Dakota Bankers In­
ment associate. Mr. Schock was the 18th Street drive up bank, man­
surance Services, Pierre.
named a commercial lender in 1982 ager of the Huron Mall Branch and
6:00 Reception
and was elected a commercial loan
7:00 Dinner
Ms. Anderson was a bookkeeper
officer a year later. He was named
group dates and locations will
at F&M from 1968 to 1971, note
assistant vice president in 1984.
teller from 1972 to 1978 and has
Sep. 16—Rapid City
been a customer service representa­
Sep. 17—Mobridge
tive since 1983. She also has been
Sep. 18—Mitchell
employed by the Town and Country
Sep. 19—Sioux Falls
Bank, Winona, Minn, and from 1978
Sep. 20—Watertown
to 1983 by Norwest Bank, Fargo.

The board of First Bank of South
Dakota, N.A. has recently promoted
M a ry
Myers to senior
vice president,
Paul Schock to
vice president
and elected Stan
Biondi as com­
mercial loan offi­
cer at the main
office in Sioux



Mr. Biondi interned at the main
office in 1978 and following his grad­
uation, rejoined the bank in the en­
try level professional development

Staff Changes in Huron


Federal Reserve Bank of St. Louis


Norwest Bk. Changes Told

Honored For 24 Years

Norwest Bank South Dakota,
N.A. recently promoted Alfred Froiland and Brent Adney to personal
banking officers, Aberdeen; Steve
Simon to ag banking officer, Groton,
and Francis Wuebben to building
operations manager.
Both Mr. Froiland and Mr. Adney
joined Norwest in 1983 as personal
banking representatives.
Mr. Simon joined Norwest in 1983
as an ag banking representative in

According to Mr. Alex Knox,
president of the McCook County Na­
tional Bank in Salem, May 31, was
set aside as “ Doris Lindell D ay’ ’
from 10:00 a.m. to 4:00 p.m. at the
McCook County National Bank. Ms.
Lindell retired from the bank in
Salem where she has been employed
for over 24 years, working her way
up from teller to assistant vice presi­
dent, internal auditor and compli­
ance officer.


panel, and 1985-86 extension pro­
grams in farm financial manage­
First National Bank and Trust
Company of Dickinson has an­ ment.
Program participants will include
nounced two changes in the lending
Harlan Hughes, Arlen Leholm, Tom
Reff, and Billy Rice from the NDSU
Du Wayne Schwindt has been pro­
farm management staff plus area
moted to vice president and man­
farm management agents Norm
ager of the retail banking division.
Toman and Dwight Aakre. Agricul­
Mr. Schwindt has been with the
tural credit personnel from banks,
bank since 1970 and most recently
the production credit associations,
served in the commercial lending di­
Farmers Home Administration and
Federal Land Banks will participate
on the panel.
Each meeting begins at 3:00 p.m.
with registration and concludes with
dinner. Locations for the meetings
are as follows: Monday, August 26,
Interstate Inn, Dickinson; Tuesday,
August 27, Holiday Inn, Minot;
Wednesday, August 28, Ramada
Inn, Williston; Thursday, August
29, Ramada Inn, Bismarck; Tues­
day, September 2, K.C. club, Devils
Lake, and Wednesday, September 3,
Larry Freeman has been assigned Holiday Inn, Jamestown.
There will be a registration fee of
to the commercial lending division.
He joined the bank in 1984 as an in­ $10 to cover the meal costs and re­
lated expenses. R egistra tion s
stallment loan officer.
should be called in to the extension
farm management office, 237-7377,
Officer Elected in Bismarck no later than Thursday, August 22.
Bill Thovson has recently been
elected to the position of agricul­
tural loan officer of First Bank Bis­ Two Named in Fargo
At Dakota Bank and Trust Co. of
Mr. Thovson was previously em­ Fargo, Donald L. Scott has been
ployed with Norwest Bank Slayton, named executive assistant and
Slayton, Minnesota as an agricul­ Bruce P. Tellefson has been named
consumer loan officer.
tural loan officer.
Mr. Scott joined Dakota Bank in
He served as branch manager
Extension Service Sponsors
of the south office for 17 years and
Conferences for Lenders
was named assistant vice president
The Extension Farm Manage­ in 1971. He was named vice presi­
ment Service from North Dakota dent of Dakota First Capital Corpo­
State University will again this year ration in 1983.
conduct a series of half-day confer­
Mr. Tellefson joined Dakota Bank
ences for North Dakota lenders in­ in 1980, and joined the consumer
volved in making agricultural loans. lending department in 1984.
Topics to be addressed include:
North Dakota commodity outlook
for 1985-86, present financial condi­ Two Retire in Bismarck
Shirley Homuth and Ernest W.
tionfor FRASER
of North Dakota farmers—

Dickinson Changes Told
Federal Reserve Bank of St. Louis

Pederson have both recently retired
from Bank of North Dakota, Bis­
Mrs. Homuth was first employed
at the bank in 1948 in the securities q
section of the investment and trust
department. She has also worked as
chief securities clerk, assistant cash­
ier, assistant vice president, vice
president and most recently as se- ^
nior vice president in the paying and
receiving section of the investment
and trust department.
Mr. Pederson joined the Bank of
North Dakota in 1969 as assistant
manager of the special loan division.
He also worked as manager, vice
president, and mpst recently as se­
nior vice president of that division.

Buffalo Bank Observes 100th
The First State Bank of Buffalo is
observing its 100th anniversary this
year. For the occasion the bank
sponsored “ 105 in ’85,” a Buffalo
Barbeque that served 150. The bank
is one of the ten oldest banks in
North Dakota, organized in Septem­
ber of 1885 as the Bank of Buffalo
by S.G. More. Current president of
First State is Terry Tallackson.

Three Appointed in Bismarck
Three new members have been ap­
pointed to the Bank of North Da­
kota’s advisory board in Bismarck.
They are Myron Just, former North
Dakota State Agriculture Commis­
sioner; James H. Duncan, president
of the Citizens State Bank of Cava­
lier, and Frederick S. Gengler, presi­
dent of Western Savings Credit
Union in Dickinson.

New Bank Opens at Fordville
First American Bank and Trust of
Grafton, Fordville Office, held a
grand opening for their new building
Both Fordville bank manager
Harris Trosen and Dan Lessard,
bank president from Grafton, were
on hand to welcome visitors. The
bank has existed under various
names since its organization in

Grand Opening in Fargo
First Bank Fargo recently an­
nounced the completion of its re­
modeling project. The bank celebra­
ted with a week of activities inclu­
ding a luncheon and ribbon cutting.

noontime hours, including bands,
singing, dancing and theatrical
groups and artists.

Denver Will Host BMA’s
Trust Marketing Meeting

First Interstate Plaza Opens in Casper


IRST Interstate Plaza, con­
structed by First Interstate
Bank of Casper, was opened to the
community on June 14 during a ded­
ication ceremony and celebration
sponsored by the bank. The first
community plaza in Casper, it is lo­
cated downtown on the corner of
First and Center Streets.
The 8,400 plaza features raised
gardens constructed of red brick in
geometric patterns containing trees,
shrubbery and flowers. Park benches
are attached to the exterior walls of
the gardens. Lights placed along the
northern wall illuminate the plaza at

The landscaping and architectural
features of the plaza reflect those of
the First Interstate Motorbank fa­
cility north of the First Interstate
Bank Building. The landscaping de­
sign of that building won the annual
“ C o m m u n ity
B e a u t ific a t io n
Award” in 1983.
A unique feature of the plaza is a
raised and electrically wired band­
stand. It will be opened for local and
state groups to entertain plaza visi­
tors. A wide range of community
events have been scheduled for the
bandstand this summer during

Casper Bk. Elects New Pres.

state Bank of Casper since 1974, will
remain on the board. His retirement
will end a 27-year career with the
Mr. Pedersen served as chairman,
president and CEO of the First In­
terstate Bank of Great Falls, Mont.,
for eleven years prior to accepting
this position. He has been with First
Interstate since 1948, when he joined
First Interstate Bank of Oregon,
serving as regional vice president
for southern Oregon and later as
vice president in the national divi­
sion before joining First Interstate
Bank of Great Falls.

First Interstate Bank of Casper
recently announced the election of
Charles E. Peder­
sen to the posi­
tion of president
and CEO. Mr.
P edersen s u c­
ceeds Henry A.
Hitch, who an­
nounced his re­
tirement earlier
this year.
M r. H itc h ,
who has served
as for
FRASER and CEO of First Inter­
Federal Reserve Bank of St. Louis

The Bank Marketing Associa­
tion’s 14th Annual Trust and Per­
sonal Financial Services Marketing
Conference will be offered Septem­
ber 29 through October 2 in Denver.
All sessions will be at the Denver
Marriott City-Center.
Michael C. Baker, executive vice
president, Allied Bank of Texas,
Houston, and chairman of the con­
ference, said the theme, “ Exploring
New Frontiers of Profitability,”
acknowledges that trust depart­
ments must increase substantially
their bottom line contribution to the
bank. Supporting that theme will be
a number of general and special ses­
sion talks on developing a sales ap­
proach and team for the bank.
The popular dawnduster series
will be augmented this year by a
series of peer exchange groups, be­
ginning on Sunday afternoon.
Concluding the program will be a
session by Phillip D. White, associ­
ate professor of marketing, Gradu­
ate School of Business and Adminis­
tration, University of Colorado,
Boulder, who will summarize key
findings of the conference.
Registration information may be
obtained from BM A at 309 West
Washington St., Chicago 60606 or

United Missouri Given
“ Highest Grade” Rating
Fitch Investors Service, Inc.,
New York, has reaffirmed the F-l
(Highest Grade) rating assigned to
the commercial paper issued by Uni­
ted Missouri Bancshares, Inc., Kan­
sas City, Mo.
A Fitch spokesman said the rat­
ing reflects the strong financial con­
dition and operating performance of
the corporation; profitability con­
tinues to be maintained at levels ex­
ceeding peer group averages; UMB
has a strong capital base; asset qua­
lity is .excellent, and net charge-offs
have been maintained at relatively
low levels.
The company issues commercial
paper to finance current operating
expenses. United Missouri is a $2.9
billion multi-bank holding company.
Northwestern Banker, August, 1985


LEFT—MBA Pres. Richard C. Timmerman with convention speaker George C. Lodge, prof., Harvard Bus. School and John T. Cadby, exec,
dir., MBA, Helena. RIGHT—The MBA hosted an impressive lineup of speakers including from left, Frank Cappiello, Washington, D.C.;
Joseph J. Pinola, chmn. & c.e.o., First Int. Bancorp, Los Angeles, Calif, and Carter H. Golembe, chmn., Golembe Associates, Inc., Wash.

At Annual Convention:

in an upwards direction.” Mr. Cap­
piello was not all optimistic but con­
cluded “ the pluses far outweigh the
Joseph J. Pinola, chairman and
tivities. Add all of that to an out­
standing lineup of program speakers CEO, First Interstate Bancorporaand you create “ the ideal conven­ tion presented his views, “ Changes
tion,” noted Immediate Past Presi­ in America’s Financial Infra-Struc­
dent, Charles Pedersen, president, ture.” “ Our entire nation is chang­
ing, we’ve come from Pony Express
First Interstate Bank, Great Falls.
After the President’s Prayer to Postal Express to electronic ex­
Breakfast, featuring Charles “ Tre­ press,” Mr. Pinola stated. Mr.
mendous” Jones, the morning busi­ Pinola’s philosophy is “ We must
ness session was called to order. Mr. respond to change and leave as little
Pedersen, who chaired this year’s to fate as possible, as we are seeing
convention, led the attendees in the dawn of the new economic era.”
Mr. Pinola concluded with four
“ The Pledge of Allegiance,” during
the patriotic opener. Mr. Pedersen predictions for the banking indus­
prefaced the morning speakers as try. 1. The industry will continue to
“ challenging, enlightening and en­ have mergers, new networks and
tertaining,” as he introduced the non-bank banks. 2. Depersonaliza­
kick-off speaker Frank Cappiello, tion, although bad, will continue. 3.
Washington, D.C., who covered the Deregulation will continue. 4. There
topic, “ Plain Talk on the Economy.” will be steady growth in banking
Mr. C a p p iello, one o f the innovation.
Carter H. Golembe, chairman,
country’s leading financial analysts
and an expert on the national Golembe Associates, Inc., concluded
economy, said “ a recession is not in the morning business session. Mr.
the cards, business activity is in­ Golembe’s topic, “ The Changing
creasing and will continue to curve World of Regulation,” was informa-

Timmerman Elected President of MBA
Associate Publisher
ichard C. Timmerman, president
and CEO, First Bank, Butte,
was elected president of the Mon­
tana Bankers Association during
the M B A ’s annual convention in
Sun Valley, Idaho, June 26-28. Com­
pleting the list of officers for the
1985-86 term are: Vice President—
W.E. Schreiber, president, Moun­
tain Bank, Whitefish; Treasurer—
James D. Bennett, president, First
Citizens Bank, Billings; Executive
Vice President—John T. Cadby,
Helena, and Im m ediate Past
President—Robert H. Sizemore,
president, Western Bank of Chi­
nook. Mr. Sizemore will continue in
this position because out going pres­
ident, Charles Pedersen, will be mov­
ing to Wyoming.
Sun Valley, a spectacular moun­
tain resort, offers not only beauty
but a wide variety of recreational ac­


LEFT—MBA Pres. Richard C. Timmerman, pres. & c.e.o., First Bank, Butte and his wife Leslie. RIGHT—Representing First Bank Minnea­
polis are, front, Sherol Schlpper, funds trans., and Dick, a.v.p.; Sally Laux, v.p.; Rita and Dave Williams, a.v.p.; back, Jack Quitmeyer, v.p.,
First for
St. Paul and Kathy; Marge Lee.
Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

Montana News


LEFT—Jim Russell, v.p., American Natl., St. Paul and Kay with Jan and Tom Resch, v.p., United Fin. Savings, St. Paul. RIGHT—Mert
Malek, sr. v.p., Farmers St., Conrad and Elain with Dan Barz, pres., First Int. West, Billings and Diane.

LEFT—Bornie Erickson and Claude, chmn., First Security, Livingston with Janet and Homer Scott, Jr., chnrrn., First Int., Sheridan, Wy.
RIGHT—B. Meyer, chmn., Yellowstone Bank, Laurel and Bessie with Joan and Tom Scott, chmn., Security Banks of Mont., Billings.

LEFT—Karl Kehmeler, a.v.p , First Int., Denver; Tom Scott, chmn., Security Banks of Mont., Billings; Bob Waller, pres., First Int.. Billings
and Bob Swartz, v.p. corr. bkg., First Int., Denver. RIGHT—Gene Coombs, v.p., First Int., Bill ngs and Pennle with Chris and Jim Scott, exec.
v.p., First Int. Banesystem, Billings.

LEFT—Bob Waller, pres., First Int., Billings and Gall; Jim Russell, v.p., American Natl., St. Paul with Don Newson, a.v.p. and Carol Craven,
v.p. & mgr., both with SeaFirst, Seattle, Wash. RIGHT—Dick Holmes, v.p., Marquette Bank, Mpls. and Carol; representing the Garfield Co.
are, Dale Fellman, dir. and Jeannie, Harold Hageman, sr. v.p., and Betty, Evelyn and Curtis Chamberlin, dir.
Federal Reserve Bank of St. Louis

Northwestern Banker, August, 1985


Montana News

IN-COMING MBA pres., Richard Timmer­
man, pres. & c.e.o., First Bank, Butte ac­
cepts gavel from Charles Pedersen, out- go­
ing pres., MBA, and pres. & c.e.o., First Int.,
Great Falls during business ceremonies.

tive as he pointed out, “ the single
most important part of our changing
environment is the computer revolu­
tion.” Mr. Golembe also touched on
important topics like interstate
banking, deregulation and what the
financial industry can expect in the
The first speaker of the second
day’s session was Gary H. Stern,
president, Federal Reserve Bank of
Minneapolis. Mr. Stern’s topic,
“ The State of the Economy,” in­
cluded three trends that will shape
our future. 1. Continuation of mod­

Staff Changes in Bozeman
First Bank Bozeman recently an­
nounced the following staff changes:
Craig Hveem will be assuming the
responsibilities of vice president and
manager of the commercial loan de­
partment, Ted Bangert has been
elected commercial loan officer, Lori
Torstveit has been elected real es­
tate loan officer and J.C. Yarde has
been elected personal banking offi­
Mr. Hveem joined the staff at
First Bank Bozeman in 1972 as an
adjustor. He was promoted to real
estate loan officer in 1976 and to
assistant manager and assistant
vice president of real estate in 1979.
Mr. Hveem was again promoted in
1982 to assistant vice president of
commercial loans.
Mr. Bangert joined First Bank
Bozeman in August, 1977 as a note
teller. In December, 1977 he was
promoted to timepay adjustor, to in­
direct lender in 1979 and to install­
ment loan officer in 1980. Mr. Ban­
gert transferred to the commercial
loan department in 1985.
Ms. Torstveit began working for
First Bank Bozeman in April of
1985. Previously, she was real estate
FRASER for Norwest Bank of
Northwestern Banker, August, 1985
Reserve Bank of St. Louis

est inflation 2. Continuation or in­
crease in competition 3. Growth in
our economy of 3V2% in real terms.
Mr. Stern’s outlook on the agricul­
tural problem is less optimistic as he
stated, “ I don’t see agriculture get­
ting better w ithout continued
economic growth.”
Perhaps on a more realistic note,
George C. Lodge presented his views
on “ A m e r ic a ’ s C o m p e titiv e
Challenge.” Mr. Lodge, a member of
the Harvard Business School Facul­
ty, said, “ We are not looking to the
right places for the remedies, and
the response to the problem is irrele­
vant to the problem.” Mr. Lodge ad­
ded, “ Too many people don’t think
we have a problem. The remedy is
worse than the disease, and the
disease is admitting that we have a
Highlighting the afternoon ses­
sion was a presentation by Mark
Russell, co-host, NBC T V ’s “ Real
People.” His political satire and
comical viewpoints entertained the
bankers and spouses in attendance.
A short business session followed
during which officers were elected

Great Falls, Mont.
Mr. Yarde joined the personal
banking staff at First Bank Boze­
man in 1984. Previously, he was a
credit representative for General
Motors Acceptance Corporation,
Spokane, Wash.
First Bank Bozeman also an­
nounced Barb Clarke has been pro­
moted to assume expanded responsi­
bilities in the real estate department
as a real estate lender. Ms. Clarke
joined the staff in 1978.

Addition in Fort Benton
Calvin R. Miller recently joined
the staff of First Bank Fort Benton
as an ag representative.
Mr. Miller was Powder River
County Extension Agent over three
years before returning to MSU to re­
ceive an MS degree in applied eco­

Elected in Billings
Barbara Varnes was recently
elected administrative officer-cor­
respondent banking and business
development by the board of First
Interstate Bank of Billings, N.A.
Ms. Varnes began work with Se­

“IT’S good to be in Montana,” said Mark
Russell, Co-Host, NBC Real People and fea­
tured entertainer, as he welcomed MBA
registrants to Sun Valley, Idaho.

for the 1985-86 term. An evening
dinner, preceeded by a garden recep­
tion, featured dancing to the Many
Sounds of Nine.
The M BA announced that Kalispell will be the host city for the
1986 convention. Kalispell is just 35
miles west of Glacier National Park
and, including surrounding cities,
has a population of 50,000. The Out­
law Inn will accommodate the con­
vention activities. Kalispell is
served by N orth w est O rient

curity Trust & Savings Bank in
1963 as a switchboard operator; un­
til 1972 was a paying and receiving
teller and organized the Christmas
money booth. She was also in the
customer services area of the bank.
Since 1982, she has been an assis­
tant in the correspondent bankingbusiness development area.

Real Estate Bankers
Hold Conference
The 1985 Real Estate Bankers
Conference of the Montana Bankers
Association was held in Kalispell on
June 13-14. Eighty real estate bank­
ers were in attendance.
W.E. “ Buster” Schreiber, presi­
dent of Mountain Bank of Whitefish, welcomed the bankers to the
conference. Mark Semmens from the
Montana Economic Development
Board outlined how lenders can fi­
nance real estate through the
MEDB. Larry Riley, a Missoula at­
torney, spoke on time management.
John Cadby of the M BA and Kalis­
pell attorney John Gordon gave leg­
islative reports. Scott Potter, of Fi­
nancial Seminars Inc. of Bothell,
Wash., spoke about lending to the
self-employed borrower.


In October, Central Bank will
host Dr. Martin Feldstein, former
chairman of President Reagan’s
Council of Economic Advisers and
former president of the National
Bureau of Economic Research.

board of Affiliated Denver National
Bank has elected Charles L. Fergu­
son chairman and CEO.
“ Mr. Ferguson will continue to
serve as chairman and CEO. of A ffi­
liated First Colorado Bank and
Trust, N.A., Denver, a position he
has held for 12 years,” Mr. Hill said.
Mr. Hill further reported the bank
board designated Samuel D. Addoms to serve as president and COO
of Denver National Bank. C. Gale
Sellens, who has served as chairman
and CEO of Denver National Bank
since 1974 has joined the corporate
office of Affiliated Bankshares.
“ Mr. Sellens has been serving
part-time as an Affiliated division
vice president during the past five
years and now will devote full time
to these and added duties,” Mr. Hill
Mr. Ferguson has spent most of
his more than 20 years in banking
with Affiliated banks, including ser­
vice as executive vice president of
Denver National Bank. During his
12 years as CEO of First Colorado
Bank and Trust the assets of the
bank grew over 500% to $313 mil­
lion, and annual earnings increased
over 750%.
Mr. Addoms served as president
and CEO of Monfort of Colorado
before joining Denver National
Bank in 1980. Prior to his eight
years with Monfort, he was an offi­
cer of Continental Bank, Chicago,
during the period 1961-72 and
served as vice president in charge of
Continental’s business in a 13 state
Mr. Sellens served as president
and CEO of Affiliated Lakeside Na­
tional Bank from 1964 to 1974. Dur­
ing his 12 years as CEO of Denver
National Bank it enjoyed an asset
growth of 400% to over $300
million, effected a change in name
from Security National Bank to
Denver National Bank and moved
into new banking facilities in the
Denver National Bank Building,
17th Street and Lawrence in down­
town Denver.
Affiliated is a state-wide bank
holding company with assets of $2.4
billion and 29 banks serving the ma­
jor markets of Colorado.

Denver Bk. Names CEO

Elected in Denver

Leo Hill, president, Affiliated
Bankshares of Colorado, Inc., Boul­
der, announced last month that the

Will F. Nicholson, Jr., president
of Colorado National Bankshares,
Inc., Denver, has been elected to the

D.A. Childears, exec, mgr., Denver

Central Bank of Denver Initiates
* Executive Strategies Seminar Series
EN TRAL Bank of Denver has
begun bringing nationally re­
co g n ize d speakers to D enver
through its Executive Strategies
Seminar Series, The bank and its af­
filiates host the national authorities
twice a year to provide insights on
the issues having an impact on busi­
ness and the economy.
Recently, former Senate Majority
Leader Howard H. Baker Jr. ad­
dressed nearly 1,300 Colorado busi­
ness and civic leaders in his keynote
speech, “ The Outlook from Wash­
ington.” He offered his thoughts on
balancing the budget, lowering the
trade deficit and negotiating with
the Soviets.
In December, Malcolm S. Forbes
Jr. began the seminar series when he
appeared before a group of 1,000.
Mr. Forbes, who is president of
Forbes Inc. and deputy editor-inchief of Forbes magazine, focused
his remarks on “ Reagan vs. Volcker:
What Now for the Econom y?”
Central Bank designed the series
to provide its customers and pros­
pective customers, the business
community, its correspondent bank­
ing network and local civic leaders
with provocative and informative
observations about timely econom­
ic, business and social issues.
The Executive Strategies Semi­
nar Series evolved as a natural ex­
tension of the bank’s service to busi­
ness markets and the community. It
is presented in conjunction with
smaller, more highly specialized
group seminars offered throughout
the year. An example is the bank’s
Natural Resources Lending Divi­
sion, which offers industry specific
seminars twice a year.
Central Bank has outlined several
objectives in presenting the series:
to help customers stay abreast of
business and the economy,
for in

Federal Reserve Bank of St. Louis

to strengthen the bank’s presence in
the community, to provide a commu­
nity service, and to provide a forum
for interchange between business
people and bankers.
Donald H. Echtermeyer, senior
vice president of the correspondent
banking division, states, “ A major
position of our customers are com­
mercial business people who have a
vital interest in what’s happening in
the economy. By sponsoring the Ex­
ecutive Strategies Seminar Series
we can help them keep informed by
giving them exposure to people with
knowledgeable insights.”

Former Senate Majority Leader Howard
H. Baker Jr. calls for an annual balanced
budget at Central Bank of Denver’s spring
Executive Strategies Seminar.


Colorado News

additional office of CEO of the com­
pany by the board at its regular
June meeting.
Mr. Nicholson joined Colorado
National Bankshares, Inc. in 1970
and was elected president in 1975.
In addition to having served on the
com pany’s board since it was
formed in 1967, he also serves as a
director of three of the company’s
subsidiary banks.
Colorado National Bankshares,
Inc. also elected Garnier K. Puryear,
as senior vice president, subsidiary
administration and Steven W. Pettit
as senior vice president, loan admin­



Mr. Puryear is chairman of Colo­
rado National Bank-Exchange, Colo­
rado Springs, and will continue to
serve this position.
Mr. Pettit joined Colorado Na­
tional Bankshares, Inc. in 1982 as
vice president of subsidiary opera­
Additional promotions at Colo­
rado National Bankshares, Inc., in­
clude Steven L. Corder, Jeffrey D.
Negri, Dennis R. Santistevan, and
Kevon J. Zehner to the positions of
accounting officers and Curt Bullion
to the position of public affairs of­

Littrell Elected as CEO
Harold U. Littrell, president of
Colorado National Bank-Exchange,
Colorado Springs, has recently been
elected chief executive officer.
Mr. Littrell joined Colorado Na­
tional Bank—Exchange in 1954 fol­
lowing his discharge from the Air
Force. He was named to the board in
1974 and elected president and COO
of the bank in 1982.

Pres. Elected in Denver
David C. Harder has been elected
president of Colorado National
Mortgage Company, Denver.
Mr. Harder joined the company in
as vice president and subse­
Federal Reserve Bank of St. Louis

quently was named chief operating
officer. Receiving his masters degree
in education and BS in physical
education from Colorado State Uni­
versity, he is a director of Colorado
Mortgage Banker Association.

Denver Bk. Promotes Five
United Bank of Denver recently
announced the promotion of Richard
T. Fulmer to vice president; Shirley
S. Baird, Michael L. Cogswell and
Norma L. Ericson to assistant vice
presidents; Debra S. W oodcock and
Jeffrey M. Ryan to officer positions.
Mr. Fulmer, a taxable securities
trader in funds management, joined
the bank in 1978. He earned his BS
degree at Ohio State University.
Ms. Baird, Mr. Cogswell and Ms.
Ericson are personal bankers in con­
sumer banking. They have been as­
sociated with United Bank of Den­
ver since 1951, 1974 and 1955 re­
Ms. Woodcock, a manager in the
MasterCard/Visa area of consumer
banking, joined the bank in 1981.
Mr. Ryan has been with the bank
since 1984 and serves as a manager
in operations development and sup­
port services.

Staff Addition in Aurora
Kathleen W. Palmquist and Scott
D. Holzschuh recently joined Colo­
rado National Bank-Aurora as vice
president and cashier and assistant
vice president respectively.
Ms. Palmquist, who has 10 years
banking experience having previous­
ly been associated with the Colorado
National Bank of Denver and First
National Bank-Boulder, is respon­
sible for bank operations, invest­
ments, budgets, and purchasing.
Additionally, she serves as secre­
tary to the board.
Mr. Holzschuh was with Mid-Con­
tinent Computer Services where he
held the position of product man­
ager. His previous banking associa­
tion was with First National Bank
of Denver (now First Interstate).

Montrose Bk. Changes Told
United Bank of Montrose recent­
ly announced the election of Ted G.
Collin to the position of vice presi­
dent and manager of agri-business
and installment lending and that
Kenneth E. Keltz, senior vice presi­
dent, has been assigned new respon­
sibilities emphasizing the manage-

ment of the bank’s commercial and
real estate loan portfolios.
Mr. Collin, currently senior vice
president, Southwest Production
Credit Association, Montrose, is a ( )
13-year ag-banker with extensive ex­
perience in credit administration
and asset-liability management.
Mr. Keltz, a 20-year banking pro­
fessional, began his career in 1965 as
assistant cashier for the Montrose
National Bank, now United Bank of
Montrose. He has been a loan officer
since 1972.

Denver Bk. Promotes Five
Colorado National Bank of Den­
ver recently promoted the following
employees: John Zodrow to v ic e ^
president, Gary Naumann, Carol
Short, and William W. Bradish to
assistant vice president, and Harry
Schreiber and Renee M. Gammell to
Mr. Zodrow is the executive head
for the data processing department
which entails data processing for
Colorado National Bankshares, Inc.,
and its subsidiaries.
Mr. Naumann, who was formerly
with Wells Fargo Bank, has duties
in the commercial banking area
which include business development
and commercial lending.
Ms. Short currently works in the
preferred banking area and has 12
years of banking experience. She
was formerly with United Bank of
Mr. Bradish began working at the
bank in March as manager of man­
agement information systems where
he currently manages the systems
and programming division in the
data processing department for
Rocky Mountain BankCard System.
Mr. Schreiber, with five years
banking experience, began working
at the bank in 1980. His responsibili­
ties in the accounting department
include financial and regulatory re­
Ms. Gammell has been employed
at the bank for ten years working as
programmer-analyst, systems an­
alyst and technical liaison.

Addition in Glenwood Told
Colorado National Bank-Glenwood, Glenwood Springs, announced
the addition of John A. Kerr, Jr., as
vice president-lending.
Mr. Kerr, who has five years
banking experience, was previously

Colorado News

associated with Calumet National
Bank, Hammond, Ind.; First Bank
of Whiting, Highland, Ind.; and
Royal Bank of Canada. In his new
position he is responsible for pro­
cessing and monitoring commercial
loans and assisting with installment

Denver Bk. Advances Five
United Bank of Denver recently
promoted Gregory L. Majors to vice
Mr. Majors joined the bank in
1981 and most recently has served
as market manager in the energy
and minerals group.
In addition, Deborah A. Kembel,
Paul B. Holmes, Thomas A. Swank
and Joy L. Golobay were named to
officer positions.

Acquisition in Denver

sumer lending officer in 1983.
Ms. Gruenfeld started at the bank
as a drive-up teller in 1981, moved to
the position of international teller in
1982, and became a representative
in the real estate department in
1983. She currently handles all resi­
dential real estate lending for First
Ms. Wicks came to First National
in 1981 as a secretary in consumer
lending. In 1982, she was selected
for the management training pro­
gram and then moved into the ad­
vertising and public relations area of
the retail services division.

Lakewood Promotion Told
Regna D. Powell has recently
been promoted to assistant vice
president-marketing of Colorado Na­
tional Bank-Lakewood.
Ms. Powell joined the bank in
1974 as executive secretary and has
30 years banking experience.

United Banks of Colorado, Inc.,
Denver, announced details for the
acquisition of The Colorado Springs
National Bank. United Bank re­ Officer Promoted in Greeley
ceived approval on June 28, from the
Cynthia K. Sanger has recently
Federal Reserve Board to acquire
been promoted to new accounts offi­
The Colorado Springs National
cer of the Cache National Bank of
Bank which has assets of $220 mil­
Greeley. Prior to joining the bank,
lion. The company is presently wait­
Ms. Sanger served the Federal Re­
ing for certain regulatory waiting
serve Bank—Denver, the Greeley
periods to expire.
National Bank and the First Na­
N. Berne Hart, president and
tional Bank of Colorado Springs.
chairman said, “ We are planning,
She has been employed by the Cache
assuming no governmental delays
National Bank for seven years.
and satisfactory due diligence re­
view, to purchase the shares of the Promoted in Arvada
Bank on August 1.”
Colorado National Bank-Arvada
Approximately 99.5% of all out­
has announced the promotion of
standing shares have been tendered
Donald B. Grassia to the position of
for purchase pursuant to the $100
installment credit officer.
per share offer initiated by United
Mr. Gassia has seven years bank­
Banks on January 22 of this year.
ing experience having previously
To allow those who have not yet ten­
been associated with Lakeside Na­
dered to do so and to allow for regu­
tional Bank. In his current position
latory waiting periods, the tender of­
he will be responsible for supervis­
fer was to remain open until 5:00
ing the lending and collection de­
p.m., Denver time on July 31.

Three Promoted in Boulder
First National Bank in Boulder
has announced the promotions of
Douglas D. Drohman to assistant
vice president of consumer lending,
Lynette Gruenfeld to real estate
loan officer and Alice E. Wicks to
advertising and public relations offi­
Mr. Drohman joined the bank in
1979 as a credit service representa­
tive in consumer loans and also held
the positions of credit service super­
visor and consumer lending repre­
sentative. He was promoted to con­
Federal Reserve Bank of St. Louis


(Continued from page 36)

Marketing Department
Restructured in Appleton
Valley Bancorporation, Appleton,
has recently announced the restruc­
turing of the corporate marketing
department. Steve Hancock, former­
ly with United Bank, Madison, joins
the staff as assistant vice president,
with responsibilities for research,
name change conversions, sales sup­
port and marketing coordination for
financial services subsidiaries.
Area marketing officers were also
named to assist unit banks in their
region with the development and im­
plementation of a marketing plan.
Holly Hammett, Valley Bank, A p­
pleton, will assume the role in the
Fox region. She has been with Val­
ley Bank for the past nine years.
Nancy Wilhelm, assistant vice president/marketing of the Bank of Wis­
consin, Janesville, will serve the
Rock and Moraine regions. Kim
Babler, United Bank, Madison, will
serve the Badger region. He has
been with United Bank for the past
seven years and is presently an as­
sistant vice president/marketing.

Celebration in Shawano
Citizens State Bank of Shawano
celebrated its 75th anniversary in
style by having all of the bank’s 65
employees wear costumes from the
early 1900’s to the 1950’s during its
week-long celebration.
Other activities included a stu­
dent art and essay contest, a curren­
cy display from the United States
Treasury, pictures on display from
Shaw ano’ s past, refreshm ents,
square dancing, old time movies and
a fireworks display in a local park.

Promoted in Englewood
First Interstate Bank of Engle­
wood has appointed Debra Gunkel
as commercial loan officer. With
three years banking experience, Ms.
Gunkel most recently has worked as
credit analyst.

F&M Bk. Awards Scholarships

Littleton Appoints Director

Richard P. Klug, president and
CEO of F&M Bank Menomonee
Falls recently presented checks to
the F&M Bank area high school
graduates who were recipients of
scholarships from the bank’s 1985
scholarship awards.

United Bank of Littleton an­
nounced the appointment of Linda
Alvarado to the bank’s board.
Ms. Alvarado is president and
CEO of Alvarado Construction, Inc.

According to Mr. Klug, the schol­
arships have grown to a program
that disperses $2,500 annually to
students pursuing education in the
business field.
Northwestern Banker, August, 1985


Change comes fast in today’s
banking — so fast you need
an anchor of stability and
Meet the anchormen — the
experienced, professional corre­
spondent bankers of First National
Bank of Omaha.
The more things change, the
stronger is their commitment to

Call them toll-free — in
dependably and consistently
Nebraska 1-800-642-9907; outside
meeting all your correspondent
Nebraska, 1-800-228-9533.
banking needs.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
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Bank of Omaha at their disposal — one first national
omaha, nebraska 68102
member FDIC • 341 -0500
for you.


Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.
Northwestern Banker, August,
Federal Reserve Bank of St. Louis


determine in failures what actions
the board took in trying to correct
the problem.
The discussion with the two CofC
officials centered on some of the
same points. In Nebraska, 57 of the
state’s 124 national banks presently
required special supervision and
that could go above 60 by year-end.
Again, the need for properly trained
loan staffs and good loan documen­
tation were stressed. Some technical
discussion relating to banks’ hold­
ing and administration of real estate
was related to CEOs in the report.
Mr. Matzke said he felt the dis­
on loan documentation and cash
with the regulators were
flow analysis. It was stated that
80% of the nation’s ag banks are in very worthwhile as a “ two-way
the midwest. About 8.5% of the street” and that NBA members
banks in the 16-state midwest re­ should read carefully the detailed
gion are CAMEL-rated 4-5 (com­ report of the meetings. The report
was reviewed by the regulators and
pared to 6.6% nationwide).
While Nebraska-Iowa state bank NBA so there was agreement on
failures are due in part to the large what the meetings covered and what
number of banks in both states, was said.
Mr. Thacker, who returned from
about half the failures involved in­
sider abuse or misuse and in all his Washington headquarters post
cases, mismanagement or non-man­ recently to become regional director
agement was the major contributing of the new six-state midwest region,
made available to NBA copies of
In the area of examination and several important internal FDIC
bank management, the FDIC said it and CofC memos issued to their field
continues to find that the “ Three Cs examination personnel in the past
of Credit” are going unheeded by two years relating to proper meth­
many banks with operational weak­ ods for handling ag bank examina­
nesses. Small, rural banks find it tions.
Mr. Matzke said the entire report,
hard to get good managers. FDIC
continues to stress the need for more copies of the memos and the inter­
frequent and realistic pricing of col­ ested attitude of the district federal
lateral and closer analysis of land regulators should help Nebraska
banks to understand better the task
and machinery values.
The part of a loan backed by colla­ faced by the examiners, and the job
teral that cash-flows should be facing bankers in the months ahead.
separated from other parts of loans
to a borrower undergoing stress, and Roger Beverage Resigns
it was noted that a banker extending As Director of Banking
single lines of credit penalizes him­
Roger M. Beverage resigned last
self with the use of “ master notes.” month as Nebraska director of bankIt also was stated that if a bank
u post he
voluntarily writes down the value of had held since
land and equipment to a realistic January 2, 1984.
level, a bank examiner should not ar­ Mr. Beverage is
bitrarily write it down further.
opening a law
The discussion on bank directors firm named Bev­
offered caution and some direct e ra g e , J a m es
statements. The FDIC will look and Associates
closely in a bank failure at whether in Omaha, al­
the directors acted responsibly. though he plans
Board meetings should be monthly, to continue liv" BEVERAGE
not quarterly. The FDIC now has 50 ing in Lincoln
lawsuits pending against directors for some period of time.
of failed banks and another 120 are
Roger Hirsch, legal counsel for
under investigation. In view of di­ the department, has been appointed
rector problems, FDIC is trying to
make directors aware of their poten­ ROGER BEVERAGE. . .
tial liability. It points out that it will (Turn to page 52, please)

NBA Meets with FDIC and Comptroller
OSITIVE steps toward a better
understanding between banks
and their federal regulators were
taken recently by officers and staff
• members of the Nebraska Bankers
Association. In one day recently, the
five N BA representatives met in
Kansas City for three and one-half
hours with the FDIC staff and for
one hour with two Comptroller of
the Currency officials.
Representing the NBA were Mel
Adams, president; A.C. Hove, imme­
diate past president; Stan Matzke,
execu tive vice president; Bill
Brandt, general counsel, and Mary
White, communications director.
At the FDIC they met with Char­
les Thacker, newly-appointed re­
gional director; Paul Rooney, de­
puty regional director and most re­
cently the regional director in
Omaha; Jim Shumaker and Paul
Wiechman, both assistant regional
directors; Peter Kravitz, acting as­
sistant regional director, and Buddy
Chewing, CPA/review examiner.
At the office of the Comptroller of
the Currency, Midwest District,
they met with Dean Marriott, De­
puty Comptroller, and Peter Kraft,
district administrator.
A detailed, excellent briefing re­
port on both meetings was sent to
the chief executive officer of every
NBA member bank last month.
That report says the FDIC discus­
sion centered around three basic
• Current banking conditions
brought on by the distressed farm
• Bank examinations and bank
• Role of bank directors
On the first topic, the report says,
ag problems will continue for several
years, with conditions deteriorating
for another year before any improve­
ment is noted. Because of these
problems, banks need to concentrate

Federal Reserve Bank of St. Louis

Northwestern Banker

Mr. Lewis joined the bank in 1977
as assistant director of marketing.
He was named communications di­
rector in 1979 and was appointed a
second vice president in 1980.
Tim L. Kyndesen was appointed a
second vice president. He joined the
bank in 1983 and is employed in the
financial institutions/agricultural
lending division.

Omaha National Bank has an­
nounced several officer appoint­
ments. Named vice presidents were
John Todd Hall, Miles Havekost
and Roger Lewis.
Mr. Hall joined Omaha National
in 1974 as an assistant manager of
teller operations and later served as
manager of customer accounting.
He was named a second vice presi­
dent in 1979 and currently is man-

ager of personal banking and teller
operations at the main bank.
Mr. Havekost came to the bank in
1973 as a work measurement an­
alyst. He was named manager of
work measurement the following
year and later served as director of
general services until moving to the
operations division, where he cur­
rently serves as manager of corpo­
rate and financial operations.


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O FFIC ER C A L L .............................. BRING M ORE BUSINESS
TIM E M A N A G E M E N T ...................YOUR TIM E IS IM P O R ­
CREATIVE S E L L IN G ..................... N EW APPRO ACH TO


Central States Health & Life Co. of Omaha
P.O. Box 34350 • Omaha, NE 68134-0350
Reserve Bank
of St.August
Louis , 1985





Other officer appointments were
Paula K. Glissman, commercial
banking officer; Douglas S. Oldaker,
trust officer; Robert J. Riley, officer;
Kathryn M. Ritonya, operations
officer; Debra A. Sasse, correspon­
dent banking officer; Jerry E.
Beyke, assistant investment officer,
and Margaret M. Beck, Lorraine A .(
Naber and Linda J. Wilson, assis­
tant officers.
Ms. Glissman joined the bank’s
management training program in
1980 and was named as assistant (
commercial banking officer in 1982.
Mr. Oldaker came to the bank’s es­
tate and trust division in 1982 as a
trust administrator. Mr. Riley, who
joined Omaha National in 1983 as a,
junior commercial banking officer,
was named manager of the bank’s
Grover Plaza office earlier this
Ms. Ritonya came to the bank inj
1978 as a teller and later worked as
supervisor of customer service and I
assistant manager of the main bankl
Personal Banking Center before]
being named assistant manager o r
Omaha National’s Regency office h
1983. Ms. Sasse, who joined the

Nebraska News

bank in 1980, served as a credit lee Strunk were named second vice
analyst before being named an assis­ presidents. Mr. Akers joined Firs­
tant correspondent banking officer Tier Mortgage in 1981 as supervisor
in 1983.
of loan administration. In 1983 he
Mr. Beyke joined the estate and was named manager of the firm’s
trust division’s investment depart­ Oklahoma City branch office and in
ment in 1983 as a security analyst/ 1984 returned to Omaha as director
portfolio manager. Ms. Beck joined of branch operations. Ms. Strunk
Omaha National in 1984 with the ac- has served as branch manager and
^ quisition of the Blair Bank, where mortgage loan officer of FirsTier
she had been employed since 1974, Mortgage’s office in Wichita, Kan­
and currently serves as assistant sas, since 1981.
manager of the Blair branch.
Ms. Naber, who came to Omaha
l|| National in 1973, was manager of
the bank’s central Nebraska compu­
ter center in Grand Island before
being transferred to the bank’s
building services area in Omaha
earlier this year. Ms. Wilson, who
joined the bank in 1969, served as a
staff assistant and later as a repre­
sentative in client services before
being named manager of client ser­
vices in 1984.
Appointed as officers were Son* * *
dra S. Engel, Kathy S. Mauer and
Catherine M. Rosen. Ms. Engel, who
At American National Bank of joined FirsTier Mortgage in 1968, is
Omaha, Barry S. Major has been in charge of training and informa­
elected vice president—credit man­ tion administration. Ms. Mauer
ager and James W. Besore, vice joined the company in 1983 as su­
pervisor of loan administration. Ms.
president of commercial lending.
Mr. Major is a former vice presi­ Rosen, who came to FirsTier Mort­
dent in commercial lending of the gage in 1980, is construction loan
Brenton Bank and Trust Co. of disbursement officer.
* * *
Urbandale, Iowa. Prior to that he
was an examiner for the Federal De­
Cindy Hulbert has been promoted
posit Insurance Corporation.
Mr. Besore is a former employee to teller services officer at Nor west
of the Omaha office of the FDIC B ank O m aha.
H u lb e rt
with previous lending and manage­ M s.
ment experience with Iowa Savings began working
Bank and the Federal Intermediate as a proof opera­
tor in 1972 and
Credit Bank of Omaha.
was promoted to
* * *
cash center teller
and lead teller at
The Omaha State Bank has an­ the Cash Center.
nounced four changes in officer per­ She became main
sonnel. Michael Pate, formerly vice floor teller man­
president and cashier, will now serve ager in 1981.
as vice president and loan officer. Ms. Hulbert is presently serving on
Debra Hasiak, formerly assistant the board of directors of the Omaha
operations officer, has been pro­ Chapter of the American Institute
moted to assistant vice president. of Banking.
* * *
James O. McBride, formerly assis­
tant cashier, has been promoted to
Four students from Nebraska
cashier. Vera Kuss, formerly assis­
tant operations officer, has been pro­ have been awarded scholarships
from the Norwest Corporation
moted to operations officer.
Scholarship Program: Paula B. Ger* * *
lach and Conal Langford Hession of
Omaha, and Andrew G. Sherman
FirsTier Mortgage, Inc. has an­ and Colleen Redman of Grand Is­
nounced several officer appoint­ land.
George S. Akers and NattaA total of 108 scholarships, cover­
Federal Reserve Bank of St. Louis


ing tuition and academic fees for
full-time, post-high school education
programs were awarded by Norwest
this year to children of Norwest em­
ployees. Applicants were measured
on their educational performance
and leadership ability.
Ms. Gerlach is the daughter of
Robert L. Gerlach, second vice presi­
dent at Norwest Bank Omaha in the
business banking department. Mr.
Hession is the son of Mary Anne
Hession, human resources represen­
tative at Norwest Bank Omaha. Mr.
Sherman is the son of Gale C. Sher­
man, vice president and compliance
officer of the installment loan de­
partment at Norwest Bank Grand
Island. Ms. Redman is the daughter
of Lois Redman, discount teller for
commercial loans at Norwest Bank
Grand Island.



Norwest Bank Omaha West re­
cently announced the election of
Beth A. Heimann as business bank­
ing officer.
Ms. Heimann began working at
Norwest Bank Omaha in 1983 as a
credit trainee/credit analyst. She re­
ceived her BA from Creighton Uni­
versity, Omaha.

Scottsbluff Promotion Told
The directors of Scottsbluff Na­
tional Bank and Trust Company
have promoted Mary Settles to the
position of marketing officer.

Appointed to Advisory Board
Eight Grand Island businessmen
will serve on a new advisory board
established by Omaha National
Grand Island, according to Law­
rence Comine, Jr., vice president and
chief executive officer of the bank.
Members of the advisory board
are: Don Anderson, senior vice presi­
dent of Chief Industries, Inc., and
general manager of Chief Construc­
tion; Webster P. Augustine, a board
member of Commercial National
Bank for 33 years; Fred H. Bosselman, president of Bosselman, Inc.;
Doyle L. Hulme, general manager of
Sperry New Holland; Jerome Niedfelt, owner of Platte Valley Con­
struction Co.; J. Frank Powl, a direc­
tor of Chief Industries, Inc., Good­
will Industries and the Grand Island
Industrial Foundation, and Floyd J.
Sager, a consultant for Omaha Na­
tional Grand Island.
Northwestern Banker, August, 1985

in the municipal and governm ent'
bond division.
Matthew F. Rye was named per­
sonal finance officer in the customer
service division. He joined the First
National Personal Financial Center
in 1984.
Bryan Shank has been named
loan review officer in the central
credit department. He worked at
First National part-time while still a
student and joined the bank as a
loan review administrator in 1984.

Commerce Group Companies4
To Form Statewide MBHC

The board of Citizens State Bank,
recently announced the election of
James F. Nissen as president. Mr.
Nissen is currently the president of
Gateway Bank and Trust and will be
involved in the management of both
institutions. The board also an­
nounced the election of Kirk Kellner
as assistant vice president. Mr. Kell­
ner will have commercial lending re­
sponsibilities in the bank’s loan de­
* * *
Gateway Bank and Trust has
elected Eames Irvin, senior vice
president and trust officer and Bud
Olsson, vice president and commer­
cial loan manager.
Mr. Irvin, previously with Citi­
zens State Bank, will have manage­

ment responsibilities for the bank’s
trust and investment departments.
Mr. Olsson was previously associ­
ated with the National Bank of Com­
merce, Lincoln. His 13 years of ex­
perience there included an emphasis
in corporate lending.



Albert J. Harvey has been elected
assistant vice president and collec­
tion manager in the consumer lend­
ing division of First National Lin­
Mr. Harvey joined the bank in
1980 as a field representative in the
bank card department. He was
named consumer lending collection
manager in 1982.
Three officer promotions were
also announced. Donna M. Dudney
has been named underwriting officer

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

Steve W. Sutton
Vice President
Bank Programs for
Group*lndividual Life*Accident & Sickness


i t LIFE

Where BENEFIT is more
than a middle name
Lincoln, Nebraska 68508
Northwestern Banker, August, 1985
Federal Reserve Bank of St. Louis

James Stuart, Jr., president and
chief executive officer of Commerce
Group Companies, announced at a<
June 27 press conference in Lincoln
that the Securities and Exchange
Commission has approved the Com­
merce Group registration statement
for the information of a multi-bank i
holding company. Mr. Stuart said
the six affiliated one-bank holding
companies will be consolidated into
the new MBHC named First Com­
merce Bancshares, Inc.
Commerce Group is an affiliation
of the six one-bank holding compa­
nies and subsidiaries, each having
more than 50% common ownership.
A prospectus mailed to all share- <
holders June 26 presents an offer for
the exchange of stock tax free for
stock in First Commerce Baneshares, Inc. The stock exchange
ratios were examined by Golembe'l
Associates, Inc., of Washington,
D.C., which rendered its opinion
that the exchange ratios are fair to
stockholders of each of the present
Mr. Stuart said the following
banks and industrial loan and in­
vestment companies will be owned
by First Commerce Bancshares^
National Bank of Commerce, Lin­
City National Bank, Hastings
First National Bank, Kearney
Overland National Bank, Grand!
First National Bank, West Point
North Platte National Bank,|
North Platte
Commerce Savings Lincoln, Inc.,|
Commerce Savings Scottsbluff,|
Inc., Scottsbluff
Commerce Savings Columbus,)
Inc., Columbus
Mr. Stuart said “ management


Service Division
First National Lincoln’s
Automated Customer
Service Division can meet
your needs for management
information services.
Count on the First Team to
provide accurate, timely
reporting; innovative
systems; and the strength,
experience and expertise of
Lincoln’s largest bank.
For the most advanced
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think of us first.
First National Lincoln.

Ftrst National Lincoln
A FirsTier Bank

Member, F.D.I.C

13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 402-471-1023
Federal Reserve Bank of St. Louis


Nebraska News

believes that the companies and
their subsidiary banks, as part of a
larger organization, will be able to
compete more effectively with other
banks and financial institutions
than any of the banks alone, parti­
cularly in light of recently enacted
laws and new government policies
that have had the effect of increas­
ing competition.”
He added that “ there will not be
any direct change in the individual
banks as a result of the consolida­
tion.” Each bank will continue with
its own officers and board, he said.
Mr. Stuart pointed out that “ as­
suming a 100% exchange, First
Commerce will have assets of ap­
proximately $836 million and capi­
tal accounts of approximately $62
million,” which would make it the
fourth largest banking organization
in Nebraska.
The lead bank, National Bank of
Commerce Trust and Savings A sso­
ciation, was founded in Lincoln in
1902 and at last year-end had assets
of $431 million. The board of NBC
obtained a bank charter in 1965 for a
second Lincoln bank, called Lincoln
Bank South, with the majority stock
held by NCB stockholders. This was
the start, Mr. Stuart noted, of the
Commerce Group affiliated banks
and subsidiaries. NBC formed its
own holding company in 1968 and
through the 1960s and 1970s other
banks became affiliated with Com­
merce Group through common own­

NIFA Reports Financing
According to Dennis R. Vellek,
executive director of the Nebraska
Investm ent Finance A uthority
(NIFA) in Lincoln, a recent report
shows NIFA has been able in the
past three years to assist in the fi­
nancing of 375 farm loans for
$29,391,122 and 40 development
projects for $37,813,600, through
the issuance of tax-exempt revenue
Mr. Vellek stated these financings
have helped the farmer or businessowner receive a reduction in interest
rates by 4-5 percentage points over
what conventional financing would
have been. He added that these pro­
grams have resulted in an economic
boost to the state of Nebraska by
the creation of over 1,200 new per­
manent jobs and a property tax in­

of over $500,000.
Federal Reserve Bank of St. Louis

(Continued from page 47)
acting director of banking until Gov­
ernor Robert Kerrey appoints a new
Mr. Beverage took up his duties
as director of banking just a few
months after the failure of Common­
wealth Savings Company closed the
doors of that industrial loan firm in
Lincoln. It left deposit obligations of
$68 million, but only a small amount
was in the deposit insurance fund
set up in the late 1970s by the Neb­
raska legislature to insure industrial
bank deposits. The ensuing legal
and legislative snarls, threats, pleas
and efforts at trying to do some­
thing for the Commonwealth deposi­
tors has occupied headlines ever
since the Commonwealth collapse.
Mr. Beverage was thrust in the
midst of those efforts and has con­
tinued to seek an equitable solution
for the depositors. In the ensuing 18
months, Mr. Beverage's department
also was faced with the failure of
seven Nebraska banks as the farm
economy worsened.
A 1970 graduate of the Univer­
sity of Nebraska College of Law, Mr.
Beverage left private practice in
1979 to become executive vice presi­
dent of the Nebraska Bankers Asso­
ciation. He continued in that post
until June, 1982, when he resigned
to practice law in Bertrand, Nebr.,
and to manage the insurance real
estate busines of his father-in-law,
who had died at that time. He re­
turned to a Lincoln law firm in 1983
and shortly thereafter accepted the
Governor’s appointment as director
of banking.

Application Approved
In Fairfield
Roger Hirsch, acting director of
the Nebraska Department of Bank­
ing and Finance, has approved an
application from Hastings State
Bank for a full-service branch facili­
ty at Fairfield. The action falls
under the department’s emergency
powers and culminates Fairfield
Mayor Darrel Soucie’s efforts to
maintain banking services for the
town in the wake of the closing of
Fairfield State Bank on May 31.

NMA Elects Officers
New officers and directors for
1985-86 for the Nebraska Mortgage

Association were elected at the an­
nual spring conference held May 14
at the New Tower Inn in Omaha.
The organization has approximately
50 members from banks, mortgage #
corporations and savings and loans
in Nebraska.
The new officers are: president—
John Robbins, CFS Mortgage Cor­
poration, Omaha; first vice presi- i
dent—Carol Snyder, CFS Mortgage
Corporation, Lincoln; second vice
president—Gene Uher, American
Charter Federal Savings and Loan,
Lincoln; treasurer—Bob Culver, •
Norwest Bank Omaha, N.A. and sec­
retary—Steve Lancaster, Superior
Mortgage, Grand Island.
Three year directors are Rollie
J oh n son , C reative F in an cin g,
Omaha and Jim Burchell, Midlands
Mortgage Company, Omaha. Two
year directors are: Rich Copple,
Equitable Federal Savings and
Loan, Fremont and Mike Fosdick,
State Securities, Lincoln. One year
directors are Jim Sackett, Bankers
Life of Nebraska, Lincoln and Kathy
Montgomery, Northland Mortgage
Company, Omaha. The past presi­
dent is Art Burtscher of Gateway
Bank, Lincoln. Chairman for the
young members bankers committee
is Jim Essay, State Securities, Lin­
The purposes of the Nebraska
Mortgage Association are to encour­
age sound and ethical business prac­
tices among its members, to inform
its members of change of mortgage
laws and pending legislation, to
sponsor meetings for the discussion
of real estate mortgage problems
and to cooperate with public and pri­
vate agencies in the establishment
of sound real estate mortgage prac­

Norwest Will Merge
Nebraska Banks
Norwest Corporation has an­
nounced plans to merge its five Neb­
raska banks and its Nebraska trust
company into a single national bank­
ing association, named Norwest
Bank Nebraska, N.A. Pending regu­
latory approval, the merger is ex­
pected to become effective in Octo­
ber 1985. The Nebraska legislature
passed legislation to permit such
mergers in March 1985.
John Cochran, president of Norwest’s Nebraska banking Region V,
said the merger will enable Norwest
to employ its capital in the state

Nebraska News

more efficiently to make the com­
pany’s entire range of specialized
products and services available at
each location. After the merger, ex^ isting Norwest Banks in Omaha,
Hastings, Grand Island and Norfolk
will continue to operate under the
new name.
Mr. Cochran will serve as chair^ man, president and chief executive
officer of the merged bank. Presi­
dents of the principal individual
locations will be Charles T. Undlin
and Harold M. Walton, Omaha;
% John F. Farrell, Hastings; Norman
G. Nackerud, Grand Island, and
Thomas F. Finnigan, Norfolk.
A new board of directors, repre­
senting each of the Norwest commu­
nities, will be elected. In addition,
local boards at Millard (a suburb of
Omaha), Norfolk, Hastings and
Grand Island will be continued.
Local management will retain au­
thority to make lending decisions
and set rates appropriate for its
marketplace, according to Mr. Coch­
ran. Existing checks and other ma­
terial carrying the former bank’s
names will be honored.
Mr. Cochran said the merger itself
is part of an orderly process begun
some time ago to eliminate duplica­
tion of effort and to operate more ef­
ficiently. He expects very little dis­
ruption to employees and virtually
no changes in organizational struc­
The banks and trust company
that will form Norwest Bank Neb­
raska, N.A. had combined assets of
approximately $1.4 billion at yearend 1984. They are affiliates of Nor­
west Corporation, a $20 billion di­
versified financial services organiza­
tion with 81 commercial banks and
several specialized financial com­
panies operation in 43 states and
five other countries. The Nebraska
merger will reduce the total number
of Norwest Banks to 77.

Orleans Addition Told
Kurt A. Tarkington has joined
the R epu blican V a lley Bank,
Orleans, as a new loan officer. Mr.
Tarkington previously was an exam­
iner for the FDIC in the state of
(Continued from page 33)
to charitable and community philan­
thropic causes.
Keystone Award
for Minnesota
Federal Reserve Bank of St. Louis

program was established in 1976 as
the Minnesota Five Percent Invest­
ment Program. The purpose of the
program was to encourage and pro­
mote philantrophy in the communi­
ty by recognizing those corporations
and businesses committed to chari­
table giving at the five percent level.
In 1980, the chamber added the Min­
nesota Two Percent Community
Partnership Award and created Cap­
ital Project Awards.
All three
award programs were merged under
one program in 1983 and renamed
the Minnesota Keystone Awards.

Rochester Bk. Changes Told
First Bank Rochester recently an­
nounced the promotion of Laura J.
Duren to agricul­
tural lending of­
ficer and the elec­
tion of Lyle S.
Kuhlmann as di­
rector o f the
M s.
D u ren
began her bank­
ing career with
First Bank of
R o c h e s te r in
1983 as a management trainee.
Mr. Kuhlmann is the president
and majority stockholder of the
Byron Elevator Company in Byron,

Officer Elected in Hastings
The board of Norwest Bank Hast­
ings, N.A. recently announced the
election of Robert
D. Graham as
commercial bank­
ing officer.
Mr. Graham
is a graduate of
Mankato State
University where
he received his
BS degree in fi­
nance. For the
R. G R A H A M
past four years,
he has been associated with Farm­
er’s State Bank of Hamel, Minn. Mr.
Graham is joining Norwest Bank
Hastings as a lending officer in the
commercial loan department.

Zapp Bk. Accepted By HUD
Zapp National Bank, St. Cloud
has recently been accepted into the
Direct Endorsement Program of the
U.S. Department of Housing and
Urban Development (HUD).


Under the guidelines of this pro­
gram, Zapp National’s real estate
department is qualified to under­
write and close FHA mortgage loans
without prior HUD review. Benefits
to the consumer include significant­
ly reduced loan processing time.

Honored in Northfield
Frank Gates, agency manager of
First Insurance Northfield, has re­
cently been honored for his out­
standing performance in 1984.
Jim Hoiness, president of First
Bank System Insurance, presented
Mr. Gates with the president’s
award for producer of the year and
also agency manager of the year, in
addition to appointing Mr. Gates to
the president’s advisory council.
First Insurance Northfield is a
subsidiary of First Bank System In­
surance, which has a network of 56
agencies operating in Minnesota,
North and South Dakota and Mon­
tana. First Bank System Insurance
is the largest bank holding company
insurance operation in the United
States and the 14th largest insur­
ance broker in North America.

Banker Now Heads St. Paul
Cos. Investment Division
Roger R. Conant has been named
senior vice president - investments
for The St. Paul Companies, Inc., St.
Paul, Minn. His appointment is ef­
fective immediately.
Mr. Conant will have responsibili­
ty for the St. Paul investment divi­
sion and its investment portfolios,
including equities, fixed income, real
estate and oil and gas. He will report
to Executive Vice President Doug­
las W. Leatherdale.
For the last six years, Conant has
been employed by First Fidelity
Bank, most recently as executive
vice president of the New Jerseybased regional banking institution.

Named Vice President at
Centerre Bank, St. Louis
Edward L. Campbell has been
elected vice president in the corres­
pondent division at Centerre Bank
in St. Louis, John Peters MacCarthy, president and chief execu­
tive officer, announced last month.
Mr. Campbell, a 1978 graduate of
the University of W isconsin’s Grad­
uate School of Banking, joined Cen­
terre in 1953. He was an assistant
vice president prior to his promo­







Lawrence H.

Vice President
and Manager, Commercial
Banking Division

Senior Vice President
Sales and Business
Development Director



Vice President
Western Region

Vice President
Eastern Region


Donald H.

Commercial Banking
Central Region

Vice President
Central Region

Bank Acquisition Loans


Senior Vice

Vice President

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Iowa Convention Will Be a Winner
for the 99th annual convention
of the Iowa Bankers Association
shows this year’s meeting will be
another exciting one. In addition to
being one of the first major associa­
tions to hold a convention in the new
Des Moines Convention Center, the
program itself shows a lineup of out­
standing speakers and events.


IBA President William Logan,
president of The State Central Bank
in Keokuk, told member banks in an
advance letter that the program is
designed to tie in with his theme of
“ Teaming Up for the Future.”
Prominent speakers from the aca­
demic, business and financial world
will address the general sessions.
They include Barry Asmus, profes­
sor of economics at Boise State Uni­
versity, Boise, Idaho, a noted, en­
thusiastic speaker on the free mar­
ket and what’s right with America;
Donald G. Long, finance industry
consultant with IBM; Dr. John Mar­
ten, the humorous and brilliant staff
economist for Farm Journal maga­
zine; Dr. William G. Ouchi, profes­
sor of management at the Graduate
School of Management, University
of California at Los Angeles; Victor
A. Rice, chairman and CEO of Massey-Ferguson; A B A President-Elect
Donald T. Senterfitt, and Alex
Sheshunoff, president of Sheshunoff
& Company.
Joining them will be sports fi­
gures George H. Raveling, head bas­
ketball coach at the University of
Iowa; Bill Russell, a pro basketball
legend, and Tom Sullivan, a noted
Because of a conflict at the Des
Moines Civic Center, the traditional
Sunday night entertainment there
has been switched to Monday night,
when the world-renowned Preserva­
tion Hall Jazz Band from New
will present concerts at 6:00
Federal Reserve Bank of St. Louis

p.m. and 8:30 p.m.
The President’s Dance has been
moved to the Sunday night slot at
8:30 p.m. in the Marriott Hotel
Grand Ballroom following the recep­
tion that commences at 5:00 p.m. in
the Convention Center exhibit hall.
The Inaugural Dinner occupies the
usual spot at 6:30 p.m. on Tuesday,
again at the Marriott Grand Ball­
An added fillip for this year’s con­
vention is a Sunrise Fellowship Ser­
vice scheduled for 6:30 a.m. Monday
in the Convention Center auditori­
um. It will feature Vonda Van Dyke

of Minneapolis, who is guaranteed
to make your day with her singing,
her personal charm and her beautiful
insights into the spiritual life that
has guided her entire adult life.
Full advance registration details
have been mailed to all banks by the
IBA, with special enclosures for
spouses concerning the extensive ar­
ray o f activities arranged for
spouses this year. In addition, the
new convention center facility has
made it possible to increase the
amount of exhibitor space drama­
tically and there will be 104 exhibits
at the meeting.
The full program and related fea­
tures will be published in the Sep­
tember N orth w ester n B a n k e r . □

Pres. Named at Clarinda Bk.
Lowell Lines, executive vice presi­
dent and director of the Page Coun­
ty State Bank, Clarinda, has been
named president of the bank.
Mr. Lines succeeds John R. Hun­
ter who will continue with the bank
as senior vice president and director.
Mr. Lines has been with the bank
since 1968 and Mr. Hunter since

IPPA’s Traveling Exhibit Attracts
Attention of Many

THE exhibit pictured above is provided by the Iowa Press Photographer’s Association
(IPPA), a non-profit organization working to advance the professional skills of its members
and promote public interest in news photography. The exhibit, new each year, is a display
of photographs and picture stories that were judged the best from several hundred entries
in the print competition at the annual IPPA convention. Photographs in the exhibit cross
the spectrum of photography—news, sports, features, pictorials, portraits and illustra­
tions. Customers of banks, photo stores, malls and other public establishments find the
exhibit fascinating and entertaining. This exhibit can be set up in less than a 10-foot
square area and the cost is $150 for a two-week stay at your place of business. If inter­
ested, contact Drake Hokanson, P.O. Box 841, Iowa City, la. 52244 or call (319) 338-0496.


Iowa News

Pres. Appointed in Osceola
Osceola State Bank announced
the appointment of Bernard Dubin
as vice president. Mr. Dubin re­
places Paula Baker, senior vice pres­
ident, who left the post for duties
with the Federal Deposit Insurance
Corporation in Des Moines.
Mr. Dubin entered the banking
business as a teller at the Iowa State
Savings Bank in Creston in 1960.
He served in various capacities in
the bank and became executive vicepresident in 1971.

Promoted in Council Bluffs
First National Bank of Council
Bluffs recently announced the pro­
motion of Jerry
Jares to vice
president, Janice
P e te r s o n
auditing officer
and Jean Wilson
to operations of­
Mr. Jares is
currently man­
ager of the comj. ja r es
m ercia l, a g r i­
culture and residential real estate
departments. He received a B BA de­

gree from the University of Neb­
raska, Lincoln.
Ms. Peterson received a bache­
lor’s degree in accounting from
Dana College.
Ms. Wilson has been with First
National since 1982.

Correspondent Party

V.P. Appointed in Knoxville
Richard E. Magnuson has been
promoted to vice president of Com­
munity National Bank & Trust Co.,
Mr. Magnuson joined the bank as
assistant vice president, working
primarily in ag lending. Previously,
he had been employed by the Colombus PCA office in Osceola, Neb.
as branch manager.

VP Added in Clinton
David E. Harris has joined Iowa
State Savings Bank, Clinton, as vice
president of the agriculture loan de­
partment. Mr. Harris comes to the
bank from First Trust and Savings
Bank, Wheatland, where he served
as executive vice president.

Independence Bank To
Purchase Fairbank Bank
The Farmers State Savings Bank

Committed to
making your
bank stand
apart from the

MORE THAN 370 bankers and spouses
were guests of National Bank of Waterloo
last month at a reception and informal din­
ner at the bank. Guests arrived at 6:00 p.m.’
and after a reception in the main lobby they
were served box dinners. Guests were in­
vited to use any of the offices on the three
bank floors while eating dinner. This also
afforded visitors an opportunity to view
NBW’s extensive collection of all-Iowa art'
that is exhibited throughout the bank. Im­
mediately following dinner, guests and the
bank staff and directors adjourned to the
nearby Waterloo Community Playhouse to
enjoy an excellently staged presentation of
the ever-popular play “ Oliver.” Pictured1
above as they greeted guests in the main
lobby are Bill Rickert (left), sr. v.p. and head
of the farm and correspondent division, and
Scott Fetner, pres.

of Independence and the Fairbank
State Bank of Fairbank have signed
an agreement whereby the Farmers
Bank will purchase the assets and
assume the liabilities of Fairbank
State Bank according to Rudolph A.
Leytze, president of Farmers State
Bank. The agreement is subject to
approval of the Iowa Department of
Banking and the FDIC.

Federal Reserve Bank of St. Louis


Fairbank will become an office of
Farmers Bank and all present per­
sonnel of Fairbank will continue in
their present capacities. Earl Beilis,
long time president of Fairban1
State, plans to stay as a consultan
on a limited basis. Fairbank Stat
Bank is one of the oldest banks i
the area, having received its charte
in 1897.

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Bank and Metro Bancorporation,
has recently retired.
Mr. DeKoster joined the bank as
farm representative in 1946 and
after serving various capacities, wa^p
named CEO in 1956. He was elected
president in 1961 and has headed
Metro Bancorporation since its ori­
gin in 1983.
Betty Runyan Van Kerckhove,#
assistant cashier, recently retired
from the Waterloo Savings Bank.
Mrs. Van Kerckhove started in the
bank’s bookkeeping department in
1940 and has been assistant cashier#
since 1976.

Appointed in Lake Park

Hawkeye Bancorporation has an­
nounced the election of J. Michael
Earley to presi­
dent and chair­
man of the board
H aw keyeCapital Bank &
T rust of Des
M o in e s .
M r.
Earley, who has
been president
and chairman of
Hawkeye Bank
j . m . earley
& Trust of Des
Moines since 1982, will become chief
executive officer of the two Des
Moines banks, both of which are
members of Hawkeye Bancorpora­
This action is the first step
toward a proposed merger of the two
banks, which is presently being
studied. Hawkeye Bank & Trust of
Des Moines’ main office is located at
2401 University Avenue. The bank’s
assets totaled $63,983,000 as of De­
cember 31, 1984. Hawkeye-Capital
Bank & Trust, with December 31,
1984 assets of $105,824,000, has its
main office at East 5th and Locust.
According to a spokesperson, both
banks have grown significantly over
the past three years and they share
similar markets.
In addition to serving as presi­
dent of both banks, Mr. Earley will
serve as a member of Hawkeye Bancorporation’s senior management
committee and as bank relations of­
ficer for Hawkeye Bank & Trust of
Des Moines, Hawkeye-Capital Bank
& Trust, Hawkeye-Ankeny Bank &
Trust, and United State Bank,

Federal Reserve Bank of St. Louis

John Chrystal, president and
CEO of Bankers Trust, announced
the following promotions approved
by the board at the July meeting.
Patricia M. Ashbaugh has been
named trust officer. Ms. Asbaugh
joined Bankers Trust in 1975. She
transferred to the trust division in
1976 as an assistant trust security
clerk and was most recently named
assistant trust officer in 1984.
James R. Greenfield has been
named assistant vice president and
trust officer. He joined Bankers
Trust in 1982 as corporate trust of­
ficer of the employee benefit section.
Prior to joining the bank, Mr. Green­
field was staff accountant at Peat,
Marwick, Mitchell & Company; in­
ternal auditor at Drake University,
and sales analyst at Massey Fergu­

Davenport’s Peterson
Graduates from Stonier
James R. Peterson, assistant vice
president, correspondent banking at
Davenport Bank and Trust Com­
pany, has graduated from the
Stonier Graduate School of Bank­
ing. He was the only Iowa banker to
graduate this year from the presti­
gious school which lists many of the
nation’s top bankers as its alumni.
Stonier’s three-year curriculum
emphasizes development of bank
management skills while providing
valuable exposure to other banks
and their methods of operation.

Retirement at Waterloo Bk.
Dale K. DeKoster, chairman and
president of the Waterloo Savings

Security State Bank, Lake Park,1
has announced the appointment of
Kevin T. Kuehl
as assistant cash­
ier. Mr. Kuehl
started with the
bank in 1982 as
a bank trainee
and is also the
vice president
and treasurer of
the insurance
agency housed
in the bank.

Promoted in Sioux City
First National Bank in Sioux City]
has promoted two officers. Ronald]
A. Jorgensen has been named coni
troller, and Maryl L. Helmbrecht will]
serve as auditor. Mr. Jorgensen!
joined the bank in 1979 as staff ac-|
countant, and most recently servedj
as auditor. Ms. Helmbrecht, wh<
formerly was staff accountant,]
joined First National in 1981.

Staff Changes in la. City
Iowa State Bank & Trust Com-]
pany, Iowa City, recently announcec
the promotion of James P. Harvey
from consumer loan officer to secorn
vice president and the election oi
Susan J. Mulder to consumer loai
officer and John M. Chadima to fi|
nancial services officer.
Mr. Harvey joined the bank ii
1972 and currently manages th<j
Rochester office.
Ms. Mulder has been with thJ
bank since 1977 and serves as th]
bank’s student loan specialist.
Mr. Chadima joined the bank il
1981 and will supervise the newlj
organized financial services sectioi


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Iowa News

Mt. Pleasant Changes Told ®


Henry County Savings Bank,
Mount Pleasant, recently announced
the promotion of
two officers and
the addition of
one officer.
J a m es
H en ss
Steven K. Brimhall were pro­
moted to vice
M r.
H en ss
joined the bank
in 1973 in the installment loan de­
partment. He currently works pri­
marily with real estate and commer­
cial loan customers.

W h y? B ecause o f ou r professional service
and attention to yo u r needs.
Call Mark Christen or Peter D e Rosier toll d find ou t h o w corresp on d en t
banking should w ork.


Mr. Brimhall joined the bank in
1973 as an ag loan officer traineeg
after teaching school for one year in
the Mt. Pleasant school system. He
is currently responsible for the agri­
culture loan portfolio of the bank.
John L. Schroeder joined the banl
in the position of cashier. He pre­
viously worked in banks in Des j
Moines and Ames and most recently
as cashier of the Citizens First Na-|
tional Bank of W olf Point, Mont.

Mark Christen

H. Peter De Rosier

Kadera Retires After 37 Yrs.

Vice President

Vice President

Ed Kadera retired from Banks 01
Iowa Computer Services, Desl
Moines, on July 31st after 37 years]
in banking and data processing.
Mr. Kadera started his career at
Peoples Bank and Trust in Waterloc
in 1948 as a messenger and workei
in many areas of operations, auditj
ing and administration. He joinec
Merchants National Bank of Cedar
Rapids in 1963 as operations an]
alyst and transferred to the data
processing division in 1964.
A reception was held in Mrj
Kadera’s honor at the corporate of]
fice in the Life Investors Building ii
Cedar Rapids.

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D E S M O IN E S . IO W A 5 0 3 0 4

M em ber F D 1C


(800) 622-7262 In Iowa.
Banker, August, 1985
Reserve Bank
of St. Louis

ing conclusion of the convention,
David L. Miller, president, West
Des Moines State Bank, was ap­
pointed treasurer. Holding that
position the past year was Jock D.
Stevenson, president of First Trust
& Savings Bank in Cedar Rapids.
Five bankers were elected to
three-year terms on the I IB board of
directors: James R. Brown, execu­
tive vice president, Hardin County
Savings Bank, Eldora; Donal R.
Halvorson, president, St. Ansgar
State Bank, St. Ansgar; Robert P.
Holleran, president, Clinton Na­
IBAA PRES. B.F. “Chip” Backlund (center), pres., Bartonville Bank, Peoria, III., addressed tional Bank; Douglas McDermott,
the final luncheon gathering. Pictured, from left, are: Ned Job, retiring pres, of MB and president, Home State Bank, Jeffer­
pres., Iowa State Savings, Knoxville; Dick Berglund, MB exec, v.p.; Mr. Backlund; Larry
Grimstad, retiring v.p. of MB and exec, v.p., Security B&T, Decorah, and George Perry, new son, and W.D. “ Bud” Wilier, execu­
tive vice president, Decorah State
v.p. of MB and pres., City Natl., Shenandoah.
One important change from the
usual I IB conventions was the ab­
sence of Executive Director Diane
fered by IB A President Bill Logan, Gibbs Berglund. She had undergone
president of State Central Bank in back surgery just two weeks earlier
EETING at a time when struc­ Keokuk. Mr. Hansen was president and was still recuperating at home
tural change, deregulation and of the Iowa Bankers Association in in Des Moines at convention time.
a severely depressed ag economy are 1967-68 and served as Iowa superin­ Despite a painful condition prior to
adversely impacting all of their tendent of banking from August, the surgery, Diane had taken care of
bankers, members of the Iowa Inde­ 1971, to July, 1973. Mr. Hansen also all advance work for the I IB conven­
pendent Bankers elected as their served as chairman of the American tion from her home. Her husband,
leader for 1985-86 a strong, experi­ Bankers Association’s important ag attorney Richard W. Berglund, I IB
executive vice president and corpo­
enced, nationally-known ag lender committee.
rate secretary, managed the conven­
who has well-earned credibility
tion in her absence, ably assisted by
among all Iowa bankers—Oliver A.
Ruth Clasen, vice president of Iowa
Hansen. His reputation and visibili­
& Savings Bank in Emmetsty, in fact, are well-known and re­
spected at the national level as well.
Mr. Hansen is chairman and presi­
Mr. Hansen’s acceptance speech
dent of Liberty Trust & Savings
was presented to the audience by
Bank of Durant, an ag-oriented bank
tape, since he had agreed some
with $51 million assets in eastern
months ago, before being contacted
Iowa (Cedar County).
by the I IB nominating committee,
As IIB president, Mr. Hansen
to take a key part in the World An­
succeeds Ned K. Job, president of
George H. Perry, president of gus Forum in Edmonton, Canada,
the Iowa State Savings Bank in City National Bank in Shenandoah, on the same dates as the I IB con­
Knoxville, under whose administra­ was elected IIB vice president to vention. Mr. Hansen said the key is­
tion IIB experienced a year of succeed Larry Grimstad, executive sue for independent bankers today is
unusual cooperation and under­ vice president of Security Bank & interstate banking, whether regional
standing with the Iowa Bankers A s­ Trust Co. in Decorah. At a meeting or national.
sociation, based on the initiative of­ of the IIB board immediately followOther issues he identified in-

Oliver Hansen Named MB President


Federal Reserve Bank of St. Louis

AG PANELISTS were introduced by D e s M o in e s R e g is t e r farm editor Don Muhm (left, at
microphone), the moderator. Panelists, from left to right, were: John Chrystal, pres., Bank­
ers Trust, Des Moines; Iowa Congressman Neal Smith; Bob Plm, FmHA dist. dir., Des
Moines, and IBAA V.P. Tom Olson, pres., Lisco State, Lisco, Nebr.
Northwestern Banker, August, 1985


Iowa News

PICTURED at Bankers Trust Co. of Des Moines poolside reception were, from left to right: John Chrystal, pres, of Bankers Trust; Neil Mil
ner, IBA exec, v.p.; Larry Frowick, sr. v.p., Bankers Trust; Bob Ross, chmn., and his daughter, Nancy, and her husband, George Perry, pres.,
both men with City Natl., Shenandoah, and John Miller, v.p. and head of the Iowa division, Bankers Trust.


LEFT—MB Pres. Ned Job visits with Iowa Congressman Jim Leach prior to Mr. Leach’s convention address. RIGHT—Al Maser, pres., First
Natl., Le Mars, visits during reception with Bill Logan, pres, of the IBA and pres., State Central Bank, Keokuk.

eluded the crisis in agriculture, of
course, as well as the federal defi­
cits, and the need for venture capital
in Iowa.
Keynote Address
IIB President Ned Job stated in
his keynote address;
“ Competitive and economic pres­
sures, brought on by our state’s de­
teriorating agriculture sector, con­
tinue to shrink our banks’ net inter­
est margins, as well as the profits
margins of our customers. This
trend will no doubt continue in the
foreseeable future. I personally feel
it is going to get a lot tougher. There
will be no quick fix for our troubles.
The banking industry's problems to­
day, are the direct result o f years o f
mismanagement o f fiscal policy at
the Federal level.
Mr. Job discussed some of the
highlights of his year as president,
then said, “ But, I feel the main ac­
complishment, during my term as
your IIB president, was the re-es­
tablishment of better communica­
tions among all bankers within the
State and also establishing better
communication between the two
banking associations. Much ef­
M o r t h u /o c fo r n R a n k e r A n n i i c t
Federal Reserve Bank of St. Louis


fort was devoted to obtaining better cles around towns with troubled
communications and I, personally banks indicates that problem banks
want to thank, Bill Logan, the IBA now cover the entire state of Iowa.”
In previous talks, Mr. Huston
president, for the personal effort he
made, this past year, in also helping stressed how Iowa banks have main
to generate better communications tained a strong capital base on the
between all bankers within the average statewide. That strong capi­
tal base has, in fact, sustained many
banks through trying times and now
Superintendent Huston Speaks
Tom Huston, Iowa superinten­ is being threatened by the continu­
dent of banking, delivered what ing bad economy which impinges on
most bankers in the audience felt the ability to repay ag loans. As a
was the finest talk they have heard consequence, he said, capital base is
him give at a meeting of Iowa bank­ being eroded in some banks “ and we
ers. It was factual and candid, as may have to allow some banks to op­
always befits his style, but it had a erate at 4, 5 or 6 percent capital until
new sense of seriousness and urgen­ they can clean up some of their prob­
cy as he discussed the growing loan lems.”
Mr. Huston reported some detail
problems facing Iowa bankers. A
year ago he was warning his audi­ of a recent meeting he had in Chi
ences that the figure of 39 Iowa cago with representatives of th
banks with more than normal prob­ Fed, FDIC and Comptroller. H
lems would soon by 50, then 70, then noted that “ the regulators never di
would approach 100. He told bank­ understand until recently that regu
ers on July 19 that figure now is 188 lators might share some of th
Iowa state-chartered banks, which blame for bank failures.” He refute
represents about one-third of the the FDIC line that all bank failure
total state banks in Iowa. “ I make are almost entirely the fault of mis
that remark,” he emphasized, “ so management or abuse. He looks fo
that you and others will understand little leadership from the Comptrol
the problem is real My map with cir­ ler’s office “ in weathering thi

Io w a N e w s


LEFT—Alice Huston displays a small part of her Teddy Bear collection used to illustrate her interesting, humorous talk at the ladies lun­
cheon. RIGHT—Tom Huston, Iowa supt. of banking, attired in his cardinal and gold outfit (what else?), poses with Iowa State University
Ihead basketball coach Johnny Orr, the final general session speaker. (Coach Orr is the tall one!)

storm in Iowa” and expressed the
feeling that if the regulator has the
•wisdom to understand the actual ag
situation in Iowa and midwestern
states it is the Fed.
Mr. Huston said bank stock loans
need to be examined more carefully,
•adding that he “ told Chairman Volcker that before we’re out of this
we’re going to need more capital—
probably preferred. Mr. Volcker
says the power to inject capital lies
•in the FDIC and I believe he’s cor­
rect, but it’s power poorly placed. I
believe it belongs in the Fed, where I
believe the judgment is superior.”
Mr. Huston cautioned Iowa bank­
e rs to not discuss other banks or
their condition, not only because it’s
against federal law, “ but I ’m also
talking about good judgment.”
Rep. Leach Scores Big Banks
The Hon. James Leach (Rep.),
United States House of Representa­
tives from the Iowa’s First District,
said the nation’s two-year recovery
¿is “ U ” shaped—the east, south and
j west have recovered, and everything
Iin between has been left out.”
He charged that “ we have run our
[foreign trade policy the past five
years to save the international
monetary system,” which saved the
big banks from problems they
[brought on themselves with their
[billions of bad foreign loans. “ Their
[problems then hurt smaller banks,”
|he stated. Saving the monetary sys­
te m and
the big banks “ was done at
Federal Reserve Bank of St. Louis

the expense of our export-dependent
industries, including agriculture.”
Rep. Leach said $4.00 corn or an
infusion of capital from Congress
would have to save the Farm Credit
System—if it’s a few hundred mil­
lions or even a billion, then Congress
might do it, but if it requires more,
such as two to four billion— its
doubtful Congress will approve it.
Mr. Leach said he opposes the
non-bank banks, is against outside
corporations owning banks, and is
against a national trigger. He is
author of a bill that would limit the
size of banks by a concentration
Ag Panel
The A g Panel drew a full house at
its starting time of 8:00 a.m. Moder­
ator was the well-known, personable
Don Muhm, who has been farm edi­
tor of The D es Moines R egister for
25 years.
Thomas H. Olson, vice president
of IB A A and president, Lisco State
Bank, Lisco, Nebr., said, “ We must
look ahead to positioning ourselves
beyond this time of trouble in order
to maximize our opportunities as
they come.” He cited the need to
support short-term bills that give
genuine support to agriculture, such
as the House Farm Bill that was en­
dorsed by IB A A at a recent St.
Louis meeting. He said IB AA, the
A B A and the FCS all insist that
FmHA must keep in place its direct
lender program that Under Secre­

tary of Agriculture Frank Naylor
says will be allowed to expire De­
cember 31, 1985. He urged “ reduc­
ing our own risk by funding secon­
dary markets for our loans we gener­
John Chrystal, president of Bank­
ers Trust Company, Des Moines,
said “ Iowa agriculture needs a mas­
sive transfusion of stop
the hemorrhaging in agriculture.”
He warned that if such a transfer of
income, from whatever source—gov­
ernment subsidies or higher prices—
does not take place, then “ the infec­
tion will spread. There is no substi­
tute for good health in our agricul­
A d d r e s s in g the “ p ro fo u n d
changes taking place in the struc­
ture of agriculture,” Mr. Chrystal
said that as the number of farms
shrink, there will be a profound
change coming across rural commu­
nities. In turn, “ the number of sup­
pliers to farms will shrink and this
includes rural banks.” Those who do
survive, he said, including his own
bank at Coon Rapids, will “ do more
business (with larger farm units) on
lower margins. We just can’t con­
tinue supporting as many banks as
there are at present.”
Mr. Chrystal listed three ways for
farmers to settle debts today when
they are in trouble—higher prices to
get more profits, selling assets, and
by forgiveness. Government deficits
and other action have a deep effect
lorthwestern Banker, August, 1985


Io w a N e w s

LEFT—Jim Brown, exec, v.p., Hardin County Savings, Eldora, receives best golfer trophy from Bernie Miller, v.p., American T&S, Dubuque
RIGHT—Max Roy, sr. v.p., Drovers Bank of Chicago, and Virgil Matthias, v.p., Readlyn Savings.

on farming, he noted, and he said,
“ we should cut heavily into the de­
fense budget on the premise that
‘you shear where there’s wool.’ ’ ’ Mr.
Chrystal concluded by stating, “ The
number of people in farming is not
necessarily im portant, but the
pow er of farming is important.’ ’
Bob Pim, state director of the
Farmers Home Administration, Des
Moines, said, “ we misjudged the
seriousness of the problem (earlier).
We added 135 people in March and
50 loan processors. W e’ve loaned
$620 million in guaranteed or direct
loans in Iowa—2,000 guaranteed
loans, about 20% of all in the nation.
We have 230 Approved Lenders in
Iowa. My concern is that we do not
have a way to deal with families
where more credit is not the answer.
We need to find a way to help those
families make the adjustment.”
The Hon. Neal Smith (Dem.),
United States House of Representa­
tives from Iowa’s Fourth District,
stated, “ I don’t think you can solve
this ag problem with laws alone. I
think it all started years ago with
petro-dollar loans and with the big
banks and their international
loans.” Mr. Smith also feels that the
Fed embarked on a bail-out course
for the big banks, but this was done
at the expense of agriculture, agri­
business and the manufacturing
complex. “ The Fed has lost the
confidence of many in Congress,” he
stated, “ some of us longer ago than
Other Speakers
Arthur Burck, president of his
own firm in Palm Beach, Fla., dis­
cussed “ The Perils of Interstate
Ownership of Banks.”
David Broder, political reporter
for The Washington P ost gave an
summary of how he views
Reserve Bank
of St. August,
Louis 1985

the Washington scene and its main
cast of characters.
Johnny Orr, head basketball
coach at Iowa State University, re­
galed his audience with the typical,
straightforward humorous look at
the world of college basketball and
other athletics.
Delegates’ Luncheon
At the delegates luncheon con­
cluding the offical part of the pro­
gram Saturday noon, bankers heard
brief remarks from Michael Fitzger­
ald, treasurer for the State of Iowa,
and from O. Jay Tomson, director of
the Federal Reserve Bank of Chi­
cago and chairman of Citizens Na­
tional Bank of Charles City. I IB
President Ned Job introduced the
IB A A president, B.F. (Chip) Backlund, president of the Bartonville
Bank in suburban Peoria, 111.
Chip Backlund, a native of Neb­
raska, said his special goals this
year for IB A A are threefold: 1. To
reinforce the positive perception of
independent banks. 2. Expansion of
IB A A services and a doubling of the
association’s Washington quarters.
3. Dramatically improve the perfor­
mance of the IB A A PAC program.
He called the budget deficits “ a can­
cer,” stating that real interest rates
are about at an all-time high. “ The
net worth certificate could be the
vehicle for us this year,” he con­
Two poolside receptions were
staged for the approximately 400
adults attending the convention.
Thursday night was the President’s
Reception, hosted by Ned and Julia
Job. Friday night, the reception was
hosted as usual by Bankers Trust
Company, Des Moines.
At the spouses luncheon on Fri­
day, guests were entertained during
the meal with singing by the Okobo-

ji Summer Theater Group. Julia Job
gave an interesting, brief history
the Iowa flag, which was designe
by a native of Knoxville. Each lun
cheon guest was presented an Iowa
flag lapel pin from Mr. and Mrs.
Job. Alice Huston, wife of Iowa
banking superintendent Tom Hus
ton, gave a very entertaining, humo
rous talk about her collection of Ted
dy Bears—each of which was intro
duced by name!
At the Saturday spouses lun
cheon, guests were entertained by
an excellent color slide show by Mrs
Bea Smith, wife of Congressman
Neal Smith. Her pictures of the nation’s capital city and environs wer
of exceptional quality and interest­
ingly presented.
The 14th annual convention con­
cluded with the usual lakeside barbeque dinner.

Index of
AUGUST, 1985
Bankers Trust Company, Des M oines............................... 5
Central States Health & Life Co., Omaha ......................... 4
Deluxe Check P rinters....................................................14-1*
Financial Products, Inc......................................................... 1
First Bank, Minneapolis/St. P a u l....................................... 2
First National Bank, Lincoln................................................5
First National Bank, O m aha................................................4
First Wisconsin................................................................34-3
Gross, Kirk Company, W aterloo..........................................5
HBE Bank Facilities............................................................8IBA Securities.................................................................2, 3,
Iowa Bankers Insurance & Services, Inc.............................5
Lincoln Benefit L ife ..............................................................5
Marquette Bank, Minneapolis ............................................3
Merchants National Bank, Cedar R ap id s ....................
North Central Companies, St. Paul ................................... 6
Northern Trust Company......................................................1
Norwest Corporation, Minneapolis................................... 6
Office Concepts, Ltd., Waterloo......................................
Security Pacific Business Credit, Inc.................................. 1
Stonier Graduate School of Banking..................................1
United Missouri Bank, Kansas C ity ............................
Valley National Bank, Des Moines..............................

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