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DECEMBER 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WHAT’S A BILLION DOLLAR BANKING COMPANY DOING Growing. And helping lowans grow. Today, any of our banks can make single loans up to $7 million, backed by our combined assets of more than a billion dollars. And we know our way around Iowa and the midwest like a hometown banker. Need help? Banks of Iowa - is i IOWAS FIRST HOME-OWNED BILLION DOLLAR BANKING COMPANY MERCHANTS NATIONAL BANK/Cedar Rapids UNION BANK AND TRUST COMPANY/Ottumwa VALLEY NATIONAL BANK/Des Moines COUNCIL BLUFFS SAVINGS BANK/Council Bluffs FIRST NATIONAL BANK/Burlington Sioux City Cedar Dubuque Rapids_ KEY CITY BANK AND TRUST COMPANY/Dubuque FIRST NATIONAL BANK IN SIOUX CITY/Sioux City □es Moines • Davenport FIRST TRUST AND SAVINGS BANK/Davenport BANKS OF IOWA COMPUTER SERVICES/Cedar Rapids https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Council Bluffs Ottumwa« Burlington 222 Second Avenue S.E. Cedar Rapids, Iowa Tel: 319/398-4301 BANKS OF IOWA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION (unaudited) September 30, 1977 1978 Assets Cash and due from banks ............. Interest bearing deposits at banks Investment securities (market value $205,410,000 and $208,648,000) Other short-term investments . . . . $ 110,095,611 $ 97,719,401 4,110,820 206,589,751 66,275,000 205,548,594 28,300,000 Loans ............................................... Less: Allowance for loan losses Unearned income ................. $ 593,398,487 5,292,098 7,548,719 $ 516,969,334 4,778,534 5,758,594 Net loans ......... ..................... $ 580,557,670 Bank premises and equipment . .. Other assets .................................... 21,022,485 16,273,204 $ 506,432,206 15,462,498 15,049,088 TOTAL ASSETS ................ $1 ,000,813,721 $ 872,622,607 Deposits Demand ................................................. Savings ................................................. Time ...................................................... $ 329,988,599 222,878,459 296,085,942 $ 287,259,639 226,547,460 234,534,157 Total deposits ...................................... $ 848,953,000 $ 748,341,256 Short-term borrowings ........................ Accrued expenses and other liabilities Other borrowed money ...................... 54,860,000 10,657,276 11,258,486 35,969,000 9,142,518 10,802,326 $ 925,728,762 $ 804,255,100 Liabilities TOTAL LIABILITIES .............. Stockholders’ Equity: Capital stock, common, no par value; stated value $2.50 per share; authorized 6,000,000 shares; issued 1978 1,930,230 shares; 1977 1,930,500 shares .................... .................... $ Surplus ....................................................................................................... Undivided profits ....................................................................................... 4,825,575 22,938,050 47,556,671 $ 4,826,250 20,940,375 42,747,644 $ 75,320,296 $ 68,514,269 TOTAL STOCKHOLDERS’ EQ U ITY............................................. .................... $ 75,084,959 $ 68,367,507 Less cost of capital stock reacquired for the treasury, 1978 9,812 shares; 1977 6,082 shares ............................................. 146,762 235,337 TOTAL LIABILITIES AND EQUITY ............................................. .................... $1,000,813,721 $ 872,622,607 Directors B. L. Anderson President/B. L. Anderson, Inc. Duane A rn o ld Chairman of the Board and President/ Iowa Electric Light & Power Company R. D udley C onner President/Knapp and Spencer Company James E. C o q u ille tte President/The Merchants National Bank V. P Cullen Chairman of the Board/First National Bank E. H oward Hill Farmer John F. H odson Retired Vice Chairman/First Trust and Savings Bank C. Bernard Jacobs Chairman of the Board and Chief Executive Officer/ National City Bank of Minneapolis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Edward R. Lynn Administrator/Jennie Edmundson Memorial Hospital J. Locke M acom ber President/Valley National Bank F. Forbes O lberg Chairman of the Board and President/Banks of Iowa, Inc. John F. O ’Neill President/First National Bank Ben S ch w a rtz General Manager/Schwartz & Schwartz Enterprises Ed H. Spetm an Jr. President/Council Bluffs Savings Bank Max von S chrader Chairman of the Board/Union Bank and Trust Company Max von Schrader, Jr. President/Union Bank and Trust Company R obert H. W ahlert Chairman of the Board/Dubuque Packing Company 4 DECEMBER 1978 • 85th Year No. 1383 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES »XI MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER New officers of the ABA for 1978-79 are pictured w ith famed Diamond Head mountain in the background, follow ing their election at the recent ABA convention in Honolulu. From left: Exec. V .P .—W illis W. Alexander, Jr., W ashington, D.C.; Pres.-Elect—C.C. Hope, Jr., vice chmn. First Union Natl, of North Carolina, Charlotte; Pres.—John H. Perkins, pres., Continental Bank, Chicago; Chmn. of Governing Council (and immed. past pres.) A. A. Bud M illigan, pres., Bank of A. Levy, Oxnard, Cal., and Treas.—Thomas R. Smith, pres., F idelity Brenton B&T, Marshalltown, la. Convention report is on page 36. FEATURES 22 Inflation and recession Chief topics at 1st National, St. Louis, Conference 24 1979 a challenging year Time to tell banking’s story says 1st National, Chicago, chairman 31 ECOA review Interview highlights most frequent bank violations 33 Government agencies Frontier Airlines president takes a critical look 37 EFTS bill to be proposed National Boulevard Bank conference gets full report 38 Ag bankers report optimism ABA ag leaders warn about supply of funds DEPARTMENTS 6 10 14 27 40 42 43 44 46 Bank Promotions Corporate News Convention Calendar W hat’s New South Dakota North Dakota Montana Minnesota Twin Cities 57 62 64 68 72 73 75 84 90 90 Illinois Nebraska Omaha Lincoln Wyoming Colorado Iowa Des Moines Jokes Advertisers’ Index NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Publisher Editor Malcolm K. Freeland Phone 515-244-8163 Business Manager Ben Haller, Jr. Mike Freeland Associate Editor Linda L. Rhein & Deb Peck Advertising Assistant Auditor Field Representative Field Representative Field Representative Delene Finch Debbie Hibbert AI Kerbel Paul Masters Glen Hicks No. 1383 Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309, Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of addre«? Form 3579, manuscripts, mail items) to above address. N orthw Banker, D ecem ber Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 ...and guide our steps into the path of peace. sii DELUXE CHECK PRINTERS. INC SALES HEADQUARTERS PO BOX 43399. ST. PAUL MN 55164 STRATEGICALLY LOCATED PLANTS FROM COAST TO COAST https://fraser.stlouisfed.org 1 of St. Louis Federal Reserve Bank 6 Bank Promotions ROMOTIONS and other an P nouncements have been made by the following banks: holding company and appointed an advisory director of its principal subsidiary, Mercantile Trust Com pany N.A., St. Louis. Prior to her appointment last July to the top administrative post of the University of Missouri’s largest campus, Dr. Uehling served as provost and acting president of the University of Oklahoma, Norman. offices. Mr. Wascheck will have administrative responsibility for the bank’s daily activities in east Asia, Bank of America, San Francisco: with offices in Hong Kong. Both Four senior appointments in south report to executive vice president ern California and Asia divisions James B. Wiesler, head of the Asia have been announced by President division in Tokyo. Northern Trust Company, Chi A. W. Clausen. They are: cago: Directors have approved the Continental Bank, Chicago: C. following staff changes: H. H. Jackson to executive vice president and senior administrative Kent Garner, a banking officer in the John B. Snyder to general counsel officer—south at southern California energy and mineral resources group, in the legal department. headquarters in Los Angeles. Mr. has been assigned to the bank’s James R. Haring, Richard W. Jackson also is appointed to the representative office in Sydney to Heiden and Robert F . Tanner to vice bank’s management advisory coun assist customers in the mining and presidents in the trust department. oil and gas industries. cil. Charles E. Scribner is senior vice United Missouri Bank of Kansas president succeeding Mr. Jackson as First National Bank of Chicago: City: R. Crosby Kemper, chairman, head of the bank’s Orange County- A. Ray Einsel, former senior vice has announced the promotion of two Los Angeles coast region, which has president of Bankers Trust Compa officers and election of five officers. its headquarters in Orange. ny, New York, has joined First Ralph J. Schramp and Richard W. John A. Lucchesi and Heinz A. National as head of its card services Brooks were promoted to vice Wascheck to senior vice presidents group. He has responsibility for the presidents in the commercial divi in the Asia division. Mr. Lucchesi bank’s Visa service center, as well as sion. Mr. Schramp, who joined the will have day to day administration its point-of-sale terminal network. A of the bank’s activities in southeast bank spokesman said Mr. Einsel and southern Asia, Guam and Trust would be elected senior vice Territories, working from Manila president. Mr. Einsel, 38, was president of B. T. Credit Company, Inc., the credit card services subsidiary of Bankers Trust. Prior to joining BTC in 1975 he was senior vice president of Cleveland Trust Company; was associated with Mountain States Card Association from 1966 to 1970, and was with City R.J. SCHRAMP R.W. BROOKS National, Columbus, Ohio, from 1962 to 1966. bank in 1976, has served as manager Richard M. Morrow, president of of the bank’s facility at State Line Standard Oil Company (Indiana), and 1-435 since August, 1977. Mr. has been elected to the board of First Brooks joined the bank last March Chicago Corporation and F irst and has primary responsibilities National Bank. He became president working with businesses in the of Standard Oil October 1. Chicago, 111., area. Moni Mayer, an employe of Manufacturers Hanover Trust United Missouri since 1977, was Co., New York: Michael Bergerac, elected commercial banking officer. chairman and chief executive officer She works with businesses in south of Revlon, Inc., has been elected a Kansas City and Johnson County. Every nation provides basic human director of the bank and its parent services to its citizens. One way Winifred Spradling, an employe or another. In this country, many holding company, Manufacturers since 1976, was elected assistant such services are still handled Hanover Corporation. Before joining cashier in the personal banking in the private sector, on a voluntary Revlon in 1974 in his current division. basis. Through a program of corporate giving, plus contributions position, he served as president, ITT Juanita Pecoraro and Maria King from employees, the American Europe and corporate executive vice were named assistant operations people are doing their share to president, ITT, Inc. insure a better quality of life for all officers. Ms. Pecoraro is assistant of u s... the United Way. manager in bookkeeping. Ms. King T h a n k s bo you. Mercantile Bancorporation, Inc., is in the lock box division. lb w o rk s. |fe(£r: St. Louis: Dr. Barbara S. Uehling, T. Michael Porter, who joined the F o r a ll o r u s. chancellor of the University of bank in 1970, was elected bank U n ib ed w a y Missouri-Columbia, has been elected services officer in the computer ^ ^ 1 A Public Service of GxncJ This Magazine & The Advertising Council to the board of directors of the services division. HOTALL COUNTRIES CAN CAPITALIZE OH AN IDEA LIKE UNITED WAY. N orthw estern Banker, D ec e m b e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 7 “Florida Software Services' packages are flexible enough to allow for growth with the largest financial institutions and for the conversion of the smallest one. ” “We were impressed by the level of expertise demonstrated by your staff and their willingness to go to great lengths to assist us in every possible way." J a cq u elin e J. Sova, C harles S. Boyd, Farmer’s Bank and Capital Trust Company, Frankfort, Kentucky. “I was pleased to see a real example of Florida Softwares dedication to good documentation ... ” F. T. B arth olom ew The Fidelity Trust Company, Stamford, Connecticut “The continued support we have received since conversion has been both professional and helpful. In particular, the response time with help when we had questions was excellent.” Thom as W. Clark, The First National Bank of Catawba County, Hickory, North Carolina. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank of the Commonwealth, Detroit, Michigan. All across the country, “critics” like you are raving about Florida Software Services. From comprehensive programs so flexible they can be tailored to m eet the needs of any financial institution, to com plete standardization capability, from award-winning documentation to the finest support in the business, we’re the standard by which financial software is compared. But then, isn’t that just what you’d expect from the industry leader? Why not discover for yourself the software so many people are saying so much about? Write Florida Software Services, P. O. Box 2269, Orlando, Florida 32802, or phone (305) 831-3001. ill FLor/aa m s e r L fG G S c The Standard in Financial Software Systems r i i i i I I i i i i I h 1 P le a s e sen d m e in fo rm a tio n c o n c er n in g N am e ________________________ T itle________________________________________________ Financial I n stitu tio n -----------------------------------------------A d d ress------------------------------------------------------------------C ity--------------------------------- S t a t e ---------------- Zip C ode P h o n e --------------------------------------- ABA N o .----------------C om p u ter-------------------------------------------------------------------------------------W r i t e for i n f o r m a t i o n a b o u t a n y of t h e s e o u t s t a n d i n g s y s t e m s : C e n t r a l I n f o r m a t i o n Fi le , C e r t i f i c a t e s of D e p o s i t , D e m a n d D e p o s i t , C o m m e r c i a l Lo a n , S a v i n g s , I n s t a l l m e n t Lo a n . A u t o m a t e d D e a l e r F l o o r P l a n , A m o rtiz atio n Schedule, Financial M anagem ent, Supplies I n v e n t o r y C o n t r o l , S o u r c e P r o g r a m L i b r a r i a n . C o r p o r a t e T r u s t, M o r t g a g e L o a n E x t e n d e d , a n d G e n e r a l P u r p o s e P a y r o ll . FS-12 N orthw estern Banker, D ecem ber 1978 8 NEW MANAGEMENT TEAM at Manufacturers Hanover Trust Company, New York, effective next April 1, w ill consist of John F. McGillicuddy (seated), chmn. & c.e.o.; John R. Torell III (left) and Harry Taylor (center), both elected vice chmn. All three men will hold the same positions in both the Manufacturers Hanover Corporation and the subsidiary bank. Mr. M cG illicuddy also w ill continue as president of the holding company and the bank. John McGillicuddy Succeeds Gabriel Hauge As Manufacturers Hanover CEO Next April IRECTORS of Manufacturers D Hanover Corporation and its principal subsidiary, Manufacturers deputy general managers. They were also elected to the Trust Company’s general administrative board, its Hanover Trust Co., have elected senior internal policy-making group. John F. McGillicuddy, 47, chairman Donald G. McCouch, 36, and and chief executive officer, effective Donald H. McCree, 42, senior vice next April 1 when Gabriel Hauge, presidents, were elected to the chairman, reaches retirement age. additional positions of deputy Mr. McGillicuddy will continue to general managers of the international serve as president of the holding division. W. Trevor Robinson, 53, company and the bank after who last summer assumed Mr. assuming the new responsibility. McCree’s responsibilities for the Mr. Hauge would continue as a bank in London, was elected senior director of both the Trust Company vice president of the Trust Company. and the Corporation after his As of April 1, the Trust Company retirement. and the Corporation will function In other senior m anagement under an office of the chairman changes, Harry Taylor, 51, and John concept, with Messrs. Taylor and R. Torell III, 39, were elected vice Torell participating with Mr. McGill chairmen and directors of Manufac icuddy in the direction of all phases turers Hanover Trust and Manufac of both organizations. turers Hanover Corp., effective M anufacturers Hanover T rust immediately. Their elections coinci also announced the appointment of ded with the retirement of John A. five additional senior vice presidents: Wagge, vice chairman, at the end of Merrill O. Burns, financial services October. group; Nathaniel S. Howe, Jr., and Dwight G. Allen, 59, and Edward Edward A. Jones, Jr., national A. Farley, 54, were elected executive division; Irwin L. Kellner, econom vice presidents of the T rust ics, and Charles H. McCabe, Jr., Company. Mr. Allen succeeds Mr. marketing. Tilford C. Gaines, senior Taylor as head of the international vice president, will have the division and Mr. Farley succeeds additional designation of chief Mr. Torell as head of the economist. metropolitan division. Both had Mr. McGillicuddy has been a been senior vice presidents and member of the Trust Company’s N orthw estern Banker, D ecem ber 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis senior m anagem ent group, the general administrative board, since February, 1969, when he was a senior vice president in the national division. He was advanced to executive vice president and assis tant to the chairman later that same year. In January, 1970, he was elected vice chairman of the board and director of M anufacturers Hanover Corporation and Manufact urers Hanover Trust Company. He became president, February 1, 1971, just thirteen years after joining the bank as a management trainee. He is a director of numerous corporations including Cities Service Company, K raft, Inc., The Sperry and H utchinson Company, W estinghouse Electric Corporation, the Continental Corporation and AMF Incorporated. He is a trustee of Roosevelt Hospital, The American Museum of Natural History and the Brunswick School. He is president and a director of the National Multiple Scleroris Society. A native of Harrison, N.Y., Mr. McGillicuddy graduated from the Harvard Law School in 1955 and Princeton University in 1952. Mr. Taylor transferred to the New York office of MHT in September, 1976, from the United Kingdom where he had supervised the bank’s London branches. In December of the same year, he was elected executive vice president in charge of the international divison and a member of the general administra tive board. Mr. Taylor joined MHT as a vice president in the London office in 1969, was elected senior vice president in 1973 and senior vice president and deputy general mana ger in 1974. He was born in North Yorkshire, England. Mr. Torell has held several senior staff and executive positions since 1970 when he was a vice president and corporate lending officer in the national division. In 1971 he was named to head the corporate planning departm ent, and was advanced to senior vice president in 1973. In 1975 he was promoted to senior vice president and deputy general manager with responsibility for the metropolitan division’s retail and institutional banking activities. He was named to the general administrative board and promoted to executive vice president in charge of the metropolitan division in October, 1976. He is a graduate of Princeton University. 9 1 fie E F T System that’s ready for you to ¡dug in , now. V/SA With a broad consumer base...from the internationally accepted VISA name. With sharing programs and cooperative arrangements to keep your costs to a minimum. Rocky Mountain BankCard Association now makes it possible for you to begin offering convenience of Electronic Funds Transfer service to customers for a lot less than you might imagine. Through our already-established VISA/PlusR Automated Teller Machine system utilizing high-speed computers and special telephone equip ment, you can offer 24-hour-a-day 7-day-a-week transactions —both at your bank and through others in a shared environment. Your customers will be able to use a choice of cards for a variety of transactions. The VISA Banking Card, issued by you, can be used for purchases from demand accounts at merchants internation ally, and for ATM access, all over the Rocky Mountain area. And they'll be able to use your own personally designed 'Plus" card for shared ATM transactions in the Rocky Mountain area. Association with the well-established VISA credit card and the common “VISA/Plus" facility identification provides very high consumer acceptance and use levels —and will help you achieve high usage and revenue. We now have close to 500 correspondent banks, and more than forty-four thousand merchants fprocessing transactions and plastic card transac center for over sales through our cer two million card holders in the tl Rocky Mountain area. uailRb, diiu m u i c man i With an expert Electronic Banking Service Department to help you in every phase. We have over 11 years of experi Pen * r o n ic ence to help meet your electronic banking needs. Our Electronic Banking Service Department can help you develop, implement and sustain your part of the system. And we offer you in-depth experi ence in all phases of Outside EFT implementation. Colorado In Colorado >f|l| . 1 ^ ^System P lu s 1- 800 - 525-3717 1- 800 - 332-3320 With these phone numbers. We invite you to find out more. Specifically, how we can help you "plug" into our system. Give us a call. We'd like to give you a tour of our Service Center to show you the way you can begin providing your own modern, efficient electronic banking services. VISA Plus" Center https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Rocky Mountain BankCard Association P.O. Box 5952 T.A. Denver, CO 80217 N orthw estern Banker, D ecem ber 1978 10 Make points with your community . . . ADVANTAGE TIM E P* . . . donate a Matside® scoreboard to your school. Corporate News and other an PROMOTIONS nouncements have been made by the following firms: Associates Commercial Corpora tion, Chicago: Lawrence J. Pelka has been appointed senior vice presi dent, industrial division, accor ding to Ronald J. Krause, presi dent. Formerly a regional manager for a national financial institu v7 i tion, Mr. Pelka L.J. PELKA now will be re sponsible for Associates Commercial field and marketing operations in the United States and Canada. Banco Financial Corporation, Minneapolis: The election of Ronald D. Weis as assis tant vice presi dent and unit head of a new loan adminstration department, has been announ ced by Clarence A. Adams, presi dent. Mr. Weis will be assisted R.D. WEIS by Wallace E. Droegemueller, CPA, who was promoted from analyst to assistant loan administrator. Jeffrey A. Reed, a native of Willmar, Minn., and a recent Your school gets quality, 100% solid state equipm ent, with years of trouble-free scoring. The recognition panels are availa ble for the com plete line of Matside^ scoreboards. For a call by our district sales manager, call or write: DROEGEMUELLER ACORN Box 299 Brookings, SD 57006 T elephone 605-692-6145 N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J.A. REED Registers "Accepted Sale Registers by Bank Clerks Everywhere" For i n fo rm a tio n w r i t e THE ACORN PRINTING CO. O akland, Iowa graduate of Bemidji State University with a major in accounting, has joined Banco Financial as analyst. Bank Building Corporation, St. Louis: Joseph A. Smith, chairman and chief execu tive officer, has announced the appointment of H. Bernhard En gel, senior vice president, to the board of direc tors, filling the unexpired term held by Louis J. O r a b k a , who H.B. ENGEL died September 6. Mr. Engel, who holds a degree in architecture from the University of Kansas, joined Bank Building in 1965. He was director of design in 1968; was made general manager of the central division, located in St. Louis, in 1969; became group vice president in 1974, and was elected senior vice president in August of this year. LeFebure Corp., Cedar Rapids, la .: Jerry Dick has been appointed manager of the Minneapolis branch. The sales territory he will s upe r vi s e ex tends from the western third of W isconsin into Minnesota, Nor th Dakota, Mon tana and north J. DICK ern Wyoming. Prior to this appointment, Mr. Dick was a sales engineer in the Seattle area. He joined the company in 1974, and was elected to the prestigious Million Dollar Club in 1978. LeFebure is an operating division of Walter Kidde & Company, Inc., and has branch offices, service facilites and warehouses in major cities from coast to coast. The Minneapolis office is located at 6800 South County Road, Hopkins, Minnesota. McGladrey, Hansen, Dunn & Company, Rock Island, 111.: The certified public accounting firm of “Studies by B ank B uilding forecast the potential growth o f our new bank, its size, the construction tim etable and the cost♦♦♦” “B ank Building C orporation is k now n for assum ing full responsibility for the full project, and that was a m ajor reason for selecting them . A n oth er im portant factor was a guaranteed cost factor as w ell as a guarantee o n the job itself. “P rior to any design and construction contracts, they did a m ajor feasibility study. T h e com p leted report included short- and long-term space, p ersonn el and equipm ent requirem ents. “Our n ew 3 7 ,0 0 0 square-foot bank was finished substantially below our anticipated figure and w ithin the D am an B ow ersock, President M erchants National Bank Fort Sm ith, Arkansas tim e schedule, despite area labor problem s. W hen the detailed building resolution was signed, it was predicted that our investm ent in a new building w ould stim ulate our growth by now to $75 m illio n . . . instead M erchants N ational is currently at $96 m illio n . “W hen any o f our banker friends ask advice about building, I em phasize the critical im portance o f having the best possible professional assistance. W ith a m in im u m o f input from us, B ank B uilding determ in ed what we w anted, took over and created for us a beautiful and w ork-efficient b ank.’ “♦. ♦and w hen it was finished, w e were on tim e and w ithin budget and our grow th is w ell ahead o f projections** .SO.. NW-1278 B ank B uilding Corporation 1130 H am pton Ave. St. Louis, M O 6 3 139 T elep h on e: (314) 647-3800 Bank Building Corporation 4 / P le a se se n d in fo r m a tio n ab ou t h o w y o u c a n h e lp b u ild m y b u sin ess. We 11 build you a business. O FF IC E S : St. Louis, W ashington, D .C .; Flartford, C o n n .; C hicago, A tlanta, Dallas, D en v er, San Francisco https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State 12 Broeker Hendrickson & Co., has been incorporated into the McGladrey firm and the new name, effective November 1, became McGladrey Hendrickson & Co. The McGladrey firm has been one of the largest regional CPA firms across the midwest and the merger now gives the company 46 offices located in Indiana, Illinois, Wisconsin, Iowa, Minnesota, South Dakota, North Dakota, Montana, Wyoming, Colo rado, Nevada and California. Ap proximately 400 banks are served by the firm. burg, Va. NASBIC represents more than 350 SBICs throughout the nation. Membership ranges from small, privately held SBICs to the largest banks. where he was graduated from DePauw University with a BA degree in English. Christmas Club Has Gains The findings from a 1978 Unidex Mosler Safe Co., Hamilton, Ohio: Corporation national probability Robert W. Myron, director of the sample research study, conducted marketing com for Christmas Club Corporation, munications de E aston, Pa., show th a t the partm ent, has Christmas Club service continues to announced the grow on a national scale, with 12.1 % appointment of of all households in the country John N. Pearce maintaining an account, up from as ma r k e t i n g 11.8% in a comparable Unidex coordinator in benchmark study in 1976. that department. The 1978 study also verifies that MorAmerica Financial Corpora He will be invol Christmas Club accounts are even tion, Cedar Rapids, la.: Robert W. ved with all as more valuable as cross-selling pects of marketJN - PEARCE Allsop, president ing communications, including re devices in financial institutions than of the subsidiary they were indicated to be in 1976. sponsibility for sale and installation While MorAmerica both users and non-users of Capital Corpor brochures, from initial concept to Christmas Club accounts continue to ation, was elec completion, and the coordination of be about equal in checking accounts sales meetings and trade shows. ted president of (92% plus), basically unchanged for Mr. Pearce most recently was a number of years, there the the National Asemployed by Griswold-Eshelman/ similarity ends. s o c i a t i o n of Cincinnati, one of the midwest’s Small Business Significant increases in other largest advertising agencies. He was services Investment were recorded for Christmas a copy contact with total responsibil Club users Compa ni es at in the 1978 study. Use of ity for all copy prepared on several regular passbook savings grew from that group's reR W' ALLS0P cent annual meeting in Williams - accounts. He is a native of Chicago 85.7% to 89.0%—-six percentage points higher than among non-users (83.0%). Certificates of deposit rose to 41.9% from 29.9% with users in two years, and use of instalment loans climbed to 51.5% from 39.3% for users in the same two year span. “Other types of savings clubs” (e.g., vacation clubs) among Christmas Club users nearly doubled to 20.2% from 11.0%. Viewed another way, more than one out of every five Christmas Club users now has another type of savings club as well. The length of time Christmas Club accounts are active continues to increase with 9.8% in 1978 holding their accounts less than one year (compared with 15.2% in 1976) and 26.8% in 1978 holding their accounts 10 years or more (compared with 23.5% in 1976). The Lawrence System can put distant borrowers right in a bank’s Christmas Club has appointed The back yard. W ith over fifty offices in the U.S. and abroad, Lawrence Marketing Department, Villanova, manages loan collateral efficiently and economically, almost anywhere. Pa., as its marketing and public It means that you can safely broaden your geographical base, and relations agency. According to John thereby diversify your loan portfolio and increase your profits. H. Guinan, president of both For information write or phone Lawrence, the oldest and largest Christmas Club and Full Service system of its kind in the world. Lawrence Systems, Inc., 37 Drumm Bank Productions, “The Marketing Street, San Francisco, Ca., 94111. 415-981-5575 or 800-227-4644. Department is providing us with m arketing and public relations experience and know-how in develop ing our many programs to serve financial institutions throughout the A COLLATERAL M A N A G EM EN T SUBSIDIARY OF IN A country.” A SYSTEM FOR A BANK TO MAKE MONEY AWAY FROM HOME THE LAWRENCE SYSTEM N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 13 Helping correspondents feed the credit appetite When a good corporate customer turns to your bank for financing, you don’t want to turn him down. What to do when the amount required exceeds your lending limit? Talk to Manufacturers Hanover. Just explain the situation and your needs to us, and we will give every consideration to your request for all or part of the additional financing. And we will get back to you quickly with a decision. We respect the close ties you have with your corporate customers. With our resources, we can help you enhance these relationships —without muscling in on them. Even if we assume the lion’s share of the loan, you still get all the credit. The next time you need to supplement your own lending resources for agricultural or business purposes, contact your MHT Calling Officer. Or call (212) 350-6604. MANUFACTURERS HANOVER MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 14 Continental Wins “Best of Show Award” April 29-May 3— Conference of State Bank Supervisors 78th Annual Conference, The Homestead, Hot Springs, Va. May 6-8— Nebraska Bankers Association 82nd Annual Convention, Omaha Hilton. May 6-9— ABA National Marketing Confer ence, Hyatt Regency, Atlanta. May 16-17 — Independent Com m unity Banks of Illinois Annual Convention, Forum 30, Springfield, III. May 21-22— North Dakota Association, 95th Annual Convention, Grand Forks. June 6-8—Association of Bank Holding Companies 21st Annual Convention, Pfister Hotel, Milwaukee. June 7-9— Colorado Bankers Association 78th Annual Convention, Broadmoor Hotel, Colorado Springs. June 11-13 — 89th Annual Minnesota Bankers Convention, St. Paul Radisson. June 20-22— Wyoming Bankers Associa tion 71st Annual Convention, Jackson Lake Lodge, near Moran, Wyo. July 19-21— Iowa Independent Bankers Annual Convention, New Inn, Lake Okoboji, la. TOP HONORS - John V. Egan, Jr., v.p., Continental Bk., Chicago, accepts “ Best of Show Award” from Martin J. Wallen, Jr., sr. v.p. and dir. of mkt. for Old Kent Bank & Trust Co., and pres., of Bank Marketing Assn. The award was presented at the recent annual BMA convention in Chicago. Aug. 12-25—The Graduate School of Banking, University of Wisconsin-Madison, Wis. Aug. 19-31 — Pacific Coast Banking School, University of Washington, Seattle. Sept. 12-13— Illinois Bankers Association 88th Annual Convention, Chicago, III. 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 1979 Jan. 17-19—ABA International Banking Conference, Waldorf-Astoria, New York. Jan. 31-Feb. 2—ABA Bank Investments Conference, Chicago Marriott. Feb. 5—Association of Reserve City Bankers Midwinter Conference, Hotel, New York. Feb. 11-14— ABA National Trust Confer ence, Los Angeles Bonaventure. March 11-15— IBAA 49th Annual Conven tion, New Orleans Hilton. April 1-4—ABA Instalment Credit Confer ence, Chicago, Marriott. April 7-10—Association of Reserve City Bankers Annual Meeting, Canyon Hotel, Palm Springs, Calif. April 25-27 — ABA Governing Council Meeting, The Greenbrier, White Sulphur Springs, W. Va. for installment loans on: M o b ile Homes RECREATIONAL VEHICLES Snowmobiles Boats and Motors Travel Trailers M o tor Homes P R O T E C T TH ES E L O A N S A G A I N S T P H Y S IC A L D A M A G E LOSSES call or write: G.D. VAN WAGENEN CO. 1678 Northwestern Bank Bldg., M inneapolis, Minn. 55402 (612) 333-2261 N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Sept. 30-Oct. 3— NABW 57th Annual Convention, New Orleans Hilton. Oct. 6-10—American Bankers Convention, New Orleans. March 18-20—ABA National Credit Confer ence, Hyatt Regency. BLANKET SINGLE INTEREST INSURANCE A utom obiles Trucks (2 ton or less) Household Goods Farm M achin ery M otorcycles Plaza Sept. 23-25— Iowa Bankers Association 93rd Annual Convention, Veterans Memorial Auditorium, Des Moines. Charles Aidman Is New ABA Spokesman The new spokesman for the American Bankers A ssociation’s 1978-79 FULL SERVICE BANK advertising program is actor Charles Aidman. A veteran actor, Mr. Aidman is probably best known for his starring role in the “Spoon River Antholo gy,’’ which appeared on Broadway, toured the country, and received an Emmy nomination for its television version. He also directed the production and wrote its lyrics. Altogether he has appeared in over 200 television shows, including Playhouse 90, Philco Playhouse, U.S. Steel Hour, Marcus Welby, All In The Family, Gunsmoke, Little House On The Prairie, M.A.S.H., and Hawaii 5-0. He has also had parts in two additional movies of the week: “The Red Badge of Courage,” and “Amelia Earhart.” NOTICE Drovers Bank is now accepting overlines and participations from banks that find themselves temporarily short of funds. To get the facts: ( 312) 927-7000 Correspondent Banking Department Ask for John Crotty Andy Ruments Senior Vice President (Drovers Country Sheriff) Assistant Vice President (Drovers Country Deputy) Drovers Bank o f «««.< ,0 47th Street & A shland Avenue, C hicago, IL 60609 (312) 927-7000 M em ber FDIC M em ber Federal Reserve System Serving Banks throughout the Midwest https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CONTRACT signing in New York for 1980 W inter Olympic scoreboard and tim ing devices included these principals, from left: Dr. Aelred Kurtenbach, pres., Daktronics, Inc., Brookings, S. D.; Arch Swinyer, deputy dir. of m ktg., and Ronald McKenzie, pres., both erf Lake Placid Olympic Organizing Committee, and Alex Cheng, pres., Seagull, Inc., the west coast d istributor firm representing the suppliers. RIGHT— Daktronics employes in Brookings shown working on the right hand section of the ski jum p scoreboard. Daktronics Furnishes Olympic Scoreboards FLEDGLING midwest electron A ic sign firm th a t is ju st completing its 10th year in business has been awarded one of the most prestigious contracts in the world of sports. Daktronics, Inc. of Brook ings, S.D., has been awarded the contract to supply all of the nine major scoreboards for the 1980 Winter Olympics at Lake Placid, N.Y. Dr. Aelred Kurtenbach, president of Daktronics, made the announce ment after the formal signing took place in New York. The scoreboards will be used for ski jump, cross country, speed skating, bobsled (team sleds) and luge (single sleds), as well as alpine and biathlon skiing events. Alpine requires two scoreboards to cover downhill skiing, giant slalom and special slalom. Biathlon consists of cross country skiing, stopping on signal and firing a rifle with accuracy. Daktronics became involved in the Olympics bidding process through its west coast distributor, Seagull, Inc. The latter firm had Dr. Kurtenbach submit figures for the nine scoreboards, and also obtained bids for electronic timers from the Swiss Timing combine of Omega, Longines and Hoyer, all of Switzer land. The joint bids were submitted last spring in competition with others, resulting in the tim er contract for Swiss Timing and the scoreboard contract for Daktronics. N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dr. Kurtenbach told the N o r t h B a n k e r his firm’s staff of 102 people will begin installing the first of the scoreboards this month and completing the balance by April, 1979, so they can be used by competitors and officials during trial events this winter. Dr. Kurtenbach and his associate, Dr. Duane Sander, founded the firm in December, 1968, with $47,000 garnered between the two of them and from 63 South Dakota investors. Dr. Kurtenbach obtained his PhD in electrical engineering from Purdue University. Dr. Sander has the same degree, earned at Iowa S tate University in Ames. At the time they founded Daktronics, both men were full time electrical engineering professors at South Dakota State University in Brookings. Dr. Sander continues to teach there, while maintaining an active interest in the firm with his associate, Dr. Kurtenbach, who devotes full time now to running the rapidly expand ing firm. Soon after the company was organized they began selling con tracts for electronic voting systems to state legislatures and electronic controls for industrial applications. When the SDSU wrestling coach told them it was difficult to use the basketball scoreboard for the point scoring needed in wrestling, Dak tronics designed and patented a new type of wrestling scoreboard now w ester n used nationwide by high schools and colleges. It is pyramidal, standing at ground level so officials and co n testan ts alike can read it instantly. These scoreboards now are sponsored for high schools by a number of banks, who find them an excellent investment. Six years ago Daktronics began m anufacturing bank Time and Temperature signs, and has made many installations of exterior and interior signs for midwest banks. Board of Trade Expands The membership of the Chicago Board of Trade has voted to construct a 23-story annex directly south of the Board of Trade Building. The annex will add 32,000 square feet of trading space to the current floor’s 19,000 square feet for a total of 51,000 square feet, making the CBT’s trading floor the largest commodity exchange trading floor in the world. Robert K. Wilmoth, exchange president, said “Continued growth in the exchange’s volume eventually would have seriously over-taxed our current trading facilities.” CBT trading volume has more than tripled from the 8.1 million contracts traded in 1970 to an estimated 25-26 million contracts traded in 1978. The year 1978 will be the exchange’s ninth consecutive year of record volume. 17 G overnm ent Securities. We originated the idea of trading them in odd lots. Now Carroll McEntee & McGinley has many imitators. In 1970, when interest rates were almost as high as they are today, we were the first to recognize a need by bank trust departments, bank customers, broker/dealers, in vestment advisers and others to buy government securi ties in odd-lot denominations. To fill this gap, CM&M was formed to provide professional odd-lot services as a primary function and not as an afterthought. Thus, we became THE odd-lot firm, and frankly, we still are. When you call us about odd lots, we give instant competitive prices, usually without fees, prompt and accurate settlements, as fast as “ next day” if need be, and quick and courteous service. In addition, we have a sophisticated knowledge of the government securities market because we specialize in it. Based on these qualifications, we can boast that no other firm can handle odd-lot transactions better than CM&M. Although many firms may claim they can or might try to copy our methods, we are the originators! Of course, we are flattered that many firms want to imitate our style. So, when you are trading odd lots, doesn’t it make more sense to deal with THE original odd-lot firm, CM&M, than an imitator? We have offices in major cities throughout the country that will also handle all your round-lot trans actions of governments, agencies, and money-market instruments. When it comes to government securities, the reputation of Carroll McEntee & McGinley is second to none. So call CM&M, THE original odd-lot firm. CARROLL McENTEE & McGINLEY INCORPORATED 40 Wall Street, New York, N.Y. 10005 ( 212 ) 825-6780 We have branch offices in major cities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 18 Employe Open House Features Ronald and Amazed Kids OPEN HOUSE— Ronald McDonald of hamburger fame greets Allen P. Stults, chairman, American National Bank and Trust Company of Chicago, during open house festivities for employes which coincided with the bank’s 50th anniversary year. In addition to Ronald, bank tours, a display of $1 m illion, gifts, dinner and a children’s penny dip added to the evening’s festivities. Over 2,000 employes and their fam ilies attended. Among them were Daniel (left) and Michael Hennessy who are shown exchanging gasps at the sight of $1 m illion. The boys’ father is Michael J. Hennessy, second v.p. in American National’s correspondent banking department. MGIC Forms Mortgage Marketing Firm The seminar is designed to provide agreement, Maggie Mae will issue the pass-through securities via its practical, effective working knowled investment banking syndicate. At ge of risk and insurance management new subsidiary that time, sellers will transfer title to techniques to the executive responsi known as MGIC the mortgages to an independent ble for the b an k ’s insurance trustee and Maggie Mae will pay the program. Its content — which Mortgage Mar sellers from the proceeds of the issue. includes lectures, films, case studies keting Corpora Leon T. Kendall, who will serve as and panel discussions — should tion, or “Maggie president of MGIC Mortgage Mar increase the participant’s ability to Mae.” The an keting Corporation in addition to his protect bank assets and minimize nouncement was duties as president of Mortgage premium costs. made by Max H. Karl, chairman Guaranty Insurance Corporation, Special emphasis will be given to of MGIC Invest emphasized that the loans received advanced methods of controlling ment Corpora for Maggie Mae issues were on a loss, minimizing insurance broker M.H. KARL tion. “consignment basis” for purchase by and company services, and the Mr. Karl, who will also serve as investors. Bankers Blanket Bond. Additional chairman of MGIC Mortgage Mar Mr. Kendall said, “Maggie Mae topics include properly insuring keting Corporation, said the new will be capitalized at levels which we against losses such as those arising subsidiary will further expand the anticipate will gain a “AA” rating from directors and officers liability, development of the mortgage-backed from Standard & Poor’s, the same ERISA and other fiduciary liabili rating given jumbo pass-through ties, and electronic funds transfer securities market. “By helping small and medium offerings such as Bank of America system participation. sized lending institutions assemble and Home Savings.” The registration fee for the locally-originated mortgages into The pools will originally include 3j/2 day meeting is $255. This fee large pools for sale in the nation’s 80% loans only, but 90% loans are covers the seminar notebook, which capital markets,” Mr. Karl explain anticipated in the future. The contains worksheets and outlines of ed, “MGIC Mortgage Marketing geographic spread, with issuers from most of the presentations, two Corporation will enable them to tap as many as 20 different cities, should textbooks and a reception following Sunday evening’s activities. The fee non-traditional sources of mortgage hold special appeal to investors. does not include hotel accommoda funds which have so far been tions. Registration is limited to 70 accessible only to institutions who participants. can accumulate large loan portfoli Risk, Insurance Seminar Scheduled For Bankers For further information about the os.” MGIC Mortgage Marketing Cor A Risk and Insurance Manage Risk and Insurance Management in poration will accept loans from ment in Banking seminar will be held Banking seminar, contact Nancy selected sellers and pool the loans in January 28-31, 1979, at the Hilton Krakover, registrar, insurance and a single, sizeable offering. When Palacio Del Rio, San Antonio, protection division, American Bank market conditions are right, Maggie Texas, by the insurance and ers Association, 1120 Connecticut Mae will contact each seller to protection division of the American Ave., N.W., Washington, D.C. 20036, or call (202) 467-4049. establish a purchase price. Upon Bankers Association. GIC Investment Corporation, M Milwaukee, has announced the formation of a N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis What can Iowa’s largest bond and investment department do for you? Start with the fact that we actively underwrite municipal bond issu es throughout Iowa, and therefore can offer a broad portfolio of tax-free bonds with maturities and yields to m eet your needs. With that in mind, right now might be a good time to review your portfolio for tax swaps to upgrade your investment mix. There could be advantages in taking a tax lo ss this year in order to invest in higher yielding bonds. What about other types of investm ents? We have up-to-the-minute electronic a ccess to money market information to help you in considering government securities, repos, commercial paper, fed funds and negotiated certificates of deposit. And perhaps m ost important, the Iowa-Des Moines offers you an experienced, thoroughly professional staff to give your portfolio the individual attention it deserves. Put it all together and you know where to go to get a lot of help for your money, in the money market, right here in Iowa. You ca n g e t a lo t o f h elp for you r m on ey. Member FDIC An Affiliate of Northwest Bancorporation (BANCO) 7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis © 1 9 7 8 Iowa-Des Moines National Bank 20 Dr. Harl Reviews Revenue Act of 1978 on sale of capital gain assets—espec ially on sale of a principal residence. For persons 55 or over, the law permits—retroactive to July 26, 1978—a one time exclusion of up to $100,000 profit on a home sale and exempts profits on home sales from the minimum tax. • The new law increases the capital gains deductions allowed for individuals. The amount of gain one may exclude from tax increased from 50% to 60% effective November 1, 1978. And there’s a new alternative minimum tax for the excluded part of capital gains that will likely mean less extra tax on capital gains than the old minimum tax. • Carryover basis is delayed—This complex rule, which was part of the 1976 Tax Reform Act is delayed to apply only to property of persons dying after December 31, 1979. The ’76 Act stated that when assets were sold after death, the estate or heirs would have to pay income tax on the gain accruing after 1976. But the rules are still on the books, and if nothing is done, they’ll be effective for deaths after December 31, 1979— only 12 months away. • New individual and corporate tax rates are lower than before, and the personal income tax exemption is increased from $750 to $1,000 per person. But, for many folks, increases in social security tax will ITH tax season approaching, W lenders have an opportunity to alert customers to the important new provisions in the Revenue Act of 1978. “In fact, if you and your customers aren’t up to date on the new law, it may cost you thousands of dolN.E. HARL lars in missed deductions,” says tax authority Neil E. Harl of Iowa State Univerisity, Ames. “This is especially true this year because of the new law changes,” Dr. Harl states, some of which are already in effect. Most of the new changes become effective January 1, 1979, but others are retroactive.” For example, Dr. Harl says, the new law clarifies the 10 % investment tax credit on structures. Farmers now can take the credit without hassle from IRS on livestock confinement units and other single purpose structures specifically de signed and used solely for production of food and plants. This rule is retroactive to August 15, 1971, and should save farmers many thousands of dollars. Here are other major changes in the new law as listed by Dr. Harl: • Income tax burden is softened W e’ll H elp YOUR GOOD CUSTOMERS when YOUR requirements can’t meet THEIRS . . . if you’ll RECOMMEND W ESTERN CAPITAL CORPORATION for personal, confidential loan brokering TO CONVERT SHORT TERM DEBT TO LONG TERM LOANS FOR Farm Purchasing • Leasing • Refinancing W ESTERN CAPITAL CORPORATION '[Jj J j >fl WESTERN CAPITAL BUILD IN G • 3035 HARNEY • O MAHA. NEBR 68131 j f j Specialists in Loan Analysis, Packaging & Placement NEBRASKA 1- 800 - 642-9390 TOLL FREE N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OUTSIDE NEBRASKA 1- 800 - 228-2770 offset the tax savings, says Dr. Harl. Other new rules deal with transfer of life insurance policies, changes in retirement accounts which include greater income tax deduction for employer contributions to an IRA or annuity, and a new rule for taxing joint tenancy property at death for federal estate tax purposes. To further help bankers and other financial advisors, Dr. Harl has studied the new law in detail and narrated a single cassette on it. The tape contains just over one hour of his narration, summarizing the main income, estate and gift tax provi sions in the new law. The cassette comes complete with printed script containing examples of how the more complex new rules work, and is available by sending $12.95 (plus 3% tax for Iowa residents) to Bill Brantley & Associates, Inc., Box 397, West Des Moines, la. 50265. Manufacturers Hanover To Beef Up Pension Service M anufacturers Hanover T rust Company, New York, the fourth largest bank in the U.S., and Automatic Data Processing, Inc., the world’s largest independent computing services company, have agreed to provide a number of specialized pension services. Manufacturers Hanover, as trust ee, will offer corporate, Keogh and IRA pension plans under which ADP will handle processing and adminis tration, daily transaction reporting, and tax reporting in compliance with ERISA and Department of Labor regulations. Joseph L. McElroy, Manufactur ers Hanover Trust Company execu tive vice president, commented that, “The relationship with ADP allows us to round out the pension trust services the bank can offer to selfemployed individuals, professionals, and to small companies in the business community.” Manufactur ers Hanover’s trust division has investment responsibility for assets in excess of $10 billion. Through its network of computing centers, ADP provides a full range of data processing services to over 60,000 clients in industry, banking, government and the financial com munity. 21 What’s m ost im portant in a correspondent relationship? Q uality When you evaluate a corre spondent bank, you look not only for specialized financial and operational expertise, but also for a high quality of service. That’s why throughout the country, bankers rely on The Northern Trust Bank. We offer a complete range of advanced banking programs, supported by a tradition of excellence that is unsurpassed. How can we serve you? At The Northern Trust, all correspondent services are designed with your needs in mind. And these services are constantly being improved to keep pace with the latest technology and regulations. Accelerated Deposit Collection. To help your bank have more cash on hand, The Northern Trust accepts unsorted cash letters, offers late deadlines, and provides immediate availability on major financial centers throughout the country. Bond and Money Market Services. You have complete, accurate market information with just one phone call. FOCUS:” Your bank’s trust investment officers have daily access to the research that our own portfolio managers use, weeklff reports that can reduce their paperwork, and periodic seminars with top Northern Trust officers. Special Project Assistance. When you need help with operations analysis, float reduction, marketing, or other important projects, your Northern Trust calling officer and staff are available to assist you. They will put you in contact with other banking specialists who provide information and perspective for your special assignments. For a quality of corre spondent service that’s rare in banking today, contact the calling officer for your area at The Northern Trust Bank, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. The NorthernTrust Bank Bring your financial future to us. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 22 At 1st National, St. Louis, Conference Inflation and Recession Are Chief Topics Clarence C. Barksdale, chmn. & c.e.o., 1st Natl., St. Louis, with luncheon speaker, Gov. Pierre S. DuPont IV of Delaware. By BEN HALLER, JR. Editor and recession—their I NFLATION extent and timing—were chief topics of conversation from speakers addressing the 32nd Annual Confer ence of Bank Correspondents of First National Bank in St. Louis last month. Three of the principal speakers who examined these related subjects in detail, and the politics that accompany decisions surrounding them, were Delaware Governor Pierre S. DuPont IV; Murray L. Weidenbaum, PhD, highly-respected director of the Center for the Study of American Business, Washington University, St. Louis, and Darryl S. Francis, retired president of the St. Louis Federal Reserve Bank. Speaking at the noon luncheon, Gov. DuPont said, “The election did make a tremendous difference that will make a change in the quality of life in America for years to come. The winners,” he stated, “were Republicans, conservatives, tax cutters; the losers were Democrats, liberals, spenders. A redistricting is coming in 1981 and those just elected will have a hand in it.” Gov. DuPont said Republicans gained 307 seats total in 47 states around the nation. Blacks, he said, usually vote Democrat. Whereas former President Ford landed only 8% of their vote, this time Senator Percy got 50%. Of the seven Democrats who were defeated, he noted, six were liberal and were Financial Management Panel, from left: Edgar H. Crist, com m issioner of finance, State of Missouri; Richard F. Ford, pres., and William J. Chapman, exec, v.p., both with 1st Natl., St. Louis, and Alex Sheshunoff, pres., Sheshunoff & Co., Austin, Tex. N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis defeated by conservative opponents. He called the 1978 election one based on political philosophy after recent elections based on issues, such as Watergate and Viet Nam. “Clearly,” he emphasized, “we’re moving in the direction of smaller, less costly government in Washing ton.” To stress the character of the new Congress he said 20% of the 100 „ Senators are new faces, and more than 60 % of the Senators have been in office only since 1970. There were 100 new Congressmen elected who have never been to Washington and over half the 435 members of the House have been elected since 1970. The average age of the House now is 40 and the average age in the Senate ^ is 44. “These people came of age between Korea and Viet Nam,” he noted, “ and have a different Dr. Murray L. Weidenbaum, dir., Center for the Study of American Business, W ashington University, St. Louis, and Darryl R. Francis, retired president, Federal Reserve Bank of St. Louis. These two men presented the Economic Outlook panel. 23 Warren B. Wiethaupt, v.p ./m k tg . & planning, and David M. Culver, sr. v.p., both w ith 1 st Natl. Mr. Culver was moderator of the W hat’s New in Banking Panel. ideological base than World War II and before. They will stand up for fiscal responsibility.” He was critical of the Administra tion’s inflation effort, stating ‘‘Presi dent Carter’s inflation talk was aimed at the general public and business instead of where it belonged—in the lap of Congress and the President. I believe President Carter has made a firm mental commitment to mandatory wage and price controls. To me, wage and price controls are abhorrent—the worst thing for the fabric of our economy. We’ll have controls before the snow melts in the spring if we don’t cooperate with voluntary controls — but we need government restraint.” In closing, he stated, ‘‘I sense a new mood, the most important message to come out of the elections —people will no longer tolerate fiscal irresponsibility from their government and they won’t tolerate inflation.” Dr. Wiedenbaum said ‘‘I believe that the odds are now increasing for recession sometime in 1979,” adding that “a sustained slowdown in the pace of economic activity will help to control inflation.” In his forecast he looks for GNP in 1979 (after deducting inflation) to be higher than 1978, but only by 2%. Average inflation in 1979 will exceed 7%. Unemployment will turn up with job creation slowing down and head to 7% again. Interest rates will rise to over 12% through the spring, and will likely be lower a year from now than they are today. We are more apt to have a recession in 1979, but he sees an upsurge in capital spending and in the general economy in the 1980s. His fellow panelist, Dr. Francis, sees the same general conditions but. not a recession in 1979 —slower growth, yes, due to productive capacity being constrained. He predicts a prime topping 16% and higher rates later in calendar 1979 than Dr. Wiedenbaum. Dr. Francis interprets monetary policy signals as indicating high monetary expansion as a means of avoiding recession in 1979 and 1980. He thinks much of Neil Bergenthal (left), v.p.-m gr., ag dept., 1st Natl., St. Louis, w ith three ag panelists: John R. Block, dir., Illinois Dept, of Agric.; Jack Runyan, dir., Missouri Dept, of A gric., and Earl N. Haldeman III, a.v.p., 1st Natl., St. Louis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Other members of W hat’s New in Banking Panel were Charles H. Eggleston, a.v.p.; LeGrande W. Rives, v.p., and Clark M. Driemeyer, v.p ./co rp . fin ., all with the host bank. the wage and price controls already are mandatory because of govern ment contracts having this written into them. Four panels were presented, featuring studies of agriculture, financial management, investments and what’s new in banking. Chairman Clarence C. Barksdale, who presided at the noon luncheon, made a surprise announcement when he said that Frank K. Spinner, vice president and head of the investment division, is resigning from the bank to accept an appointm ent as president of Tower Grove Bank in St. Louis. Mr. Spinner was to also assume supervision of the correspon dent bank department. Mr. Barks dale announced that Paul Ross, vice president, would return to head the correspondent division, a position he previously held. Mr. Ross is well known throughout the area served by First National. The move was occasioned by the assignment of David M. Culver, senior vice president, to concentrate his efforts on national accounts. □ Investments Panel: Richard S. Zell, v.p.; John W. Fricke, a.v.p.; Frank K. Spinner, v.p., and John W. Rowe, v.p., all with 1st Natl., St. Louis. N orthw estern Banker, D ec e m b e r 1978 24 officers working out of Chicago headquarters. Conference Meetings Following the successful format of previous years, the conference featured three general sessions, the Industry Outlook Symposium at the Monday noon luncheon, and a major address at the closing luncheon by A. Robert Abboud, chairman and chief executive officer of First National Bank and First Chicago Corporation. Mr. Abboud’s address, accompa nied with a continuing series of illustrative slides, was titled “Basic Truths of Banking We All Know and Which We Must Widely Communi cate.” FOUR SENIOR OFFICERS OF First Natl, of Chicago, pictured at luncheon session. From “At least we do not communicate left: Nell McKay, vice chmn. & cash.; William T. Dwyer, v.p. and head of corresp. bk. div.; Homer J. Livingston, Jr., exec, v.p., and Richard Thomas, pres. (these truths) sufficiently effective ly,” he said, “so that knowledge of 1st National of Chicago Speakers Declare the truths may be known and accepted by legislators and the public at large. Unless we succeed in 1979 Will Be Challenging Year this endeavor, the future of our industry will be imperiled. We will By BEN HALLER, JR. ONCERN for the workability of choke under regulatory constraints wage and price controls, the Editor and will be replaced by competitors potential effects permitted to operate under much less of these controls and a higher and head of the correspondent bank restrictive rules.” “We sometimes forget the unique inflation rate on division, also welcomed the regis the 1979 econo trants and introduced his staff of and vital role performed by the my, and the chal line management officers. These nation’s 14,000 banks to their lenge to bankers included the regional office managers communities, to their regions, and to to communicate who will now have responsibility for the nation as a whole,” he added. the essential job correspondent bank calls out of those “People tend to take the convenience being performed distant offices. The central division, of full-service banking for granted, by the banking comprising the greatest number of and bankers are too busy doing the A. R. ABBOUD i n d u s t r y were states served, now is headed by job to be able to stand back and see presented to more than 750 bankers James Giffin, vice president, who how crucial their work is.” Mr. Abboud then delineated the in Chicago last month. They were introduced his staff of 11 calling wide range of basic and sophisticated attending the 32nd Conference of financial services performed by the Bank Correspondents hosted by the banking industry. Details of his First National Bank of Chicago at important message will be printed at the Conrad Hilton Hotel. greater length in a following issue. Executive Vice President Homer Industry Outlook J. Livingston, Jr. welcomed the visitors and revealed that major Mr. Livingston introduced eight officers from as many groups at the revisions have been made in First National’s banks and bankers divi traditional Industry Outlook Sym sion, resulting in a renewed emphasis posium and they gave their brief on correspondent banking. This ag outlooks for specific industries or gressive action offers correspondent portions of them. Although housing starts will taper off, other construc banks three further advancements in tion may continue at high levels. the bank’s long-standing service, Manufacturing production should Mr. Livingston stated. He listed continue at high levels due to these as: “First, a strengthening of capacity operation presently and no existing services. Second, a strength capital expansion underway. OPEC ening and expanding of staff to nations probably will increase oil deliver these services even better. Third, the addition of new services to William T. Dwyer, v.p. and head of prices 15% just to protect the dollar holdings they now have. Domestic help bankers compete today.” correspondent bank division, welcomes energy problems will continue in the William T. Dwyer, vice president visiting bankers. C N orthw estern Banker, D ecem ber 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 stormy second half with price hikes in meat and the bite of Social Security tax increases. 4. Business attitude as the key to employment. Manufacturers orders are backlogged even more than in 1973 preceding the 1974 recession, so this factor shouldn’t contribute to inflation. 5. Housing will experience a downturn, pushing us toward recession. 6. Manufacturers with labor contracts coming up have not taken precau tionary buying of inventory so they will probably settle more on unions’ terms and keep production going. 7. A need for a deeper tax cut. 8. Current expansion peaking out next March. 9. Corporate profits off 20% by early 1980 without accounting for inflation, which will be double digit. Nick De Leonardis, vice president, James Giffin, v.p. and recently appointed said bankers will have to live with head of central division serving banks, tight money for some time. Quality introduces his staff of calling officers. spreads will start to widen, he stated, and signs point to approach ing end of expansion with the prime 1980s, with re-emphasis on domestic peaking at 12 % at the end of the first quarter 1979. natural gas. At the final session, Mr. Living In his remarks as part of the ston gave results of the survey luncheon panel, Mr. Dwyer said that based on various factors available— participated in by approximately 600 government regulations, the econo of those attending. In the opinion of my and non-financial competition— 79%, President Carter’s wage and it is easy to predict a decrease in price guidelines will have little 1979 in community bank income. impact on the economy; 43% think However, he said, this discounts the imposition of mandatory controls resiliency and adaptability commun will increase inflation, and 27% ity bankers have shown in previous think mandatory controls will have years when other circumstances no effect on the economy. President forecast a decrease in income. He Carter got little praise, with 95% reviewed an analysis of 100 Illinois rating his administration’s economic banks who had an average return on assets of .88, while the top 25 had a return of 1.25. Further data he discussed showed the top 25 general ly succeeded better through the ability of management to control non-interest expense costs and in avoiding losses. Economic Outlook The several First National officers presenting the 1979 Economic Outlook dealt directly with interest rates, inflation, wage and price controls, stock market and related aspects that add up to a cloudy 1979, with possible better prospects in the early 1980s if the United States gets its house in order. W. David Woolford, assistant vice president and economist sees: 1. Employment gains, but no big spending. 2. A breather in consumer spending which won’t push us into a recession the first half of ’79. 3. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Edward M. Roob, sr. v.p. and head of inv. division, fields a question during panel discussion. performance as fair or poor, worse than last year’s poll showing 88%. Also, 62% of those replying look for inflation to be in the 8-10% range next year, and 23% think the prime rate will exceed 11%; 50% expect the Dow-Jones average to be in the 800-900 range, and 15% look for it to be 900-1,000. While 60% of the respondents expect general business conditions to be worse in 1979, 67.7% expect their 1978 earnings will be higher. □ ¡IIIm ' mm James E. Smith, exec. v.p. of First of Chicago Corp.; Homer J. Livingston, Jr., exec, v.p., who presided at general sessions, and George F. Will, syndicated political colum nist from W ashington, D.C., a principal speaker. N orthw estern Banker, D ec e m b e r 1978 INCE becoming fully operational last March, the “strikingly S beautiful and complete” Sandburg drive-in office of the First Galesburg National Bank and Trust Company in west central Illinois has attracted attention from numerous visiting bankers as well as residents of the area. Described by Richard M. Bishop, president, as a bank with high-flared ceilings, Finnish-styled wood paneling, mammoth stone fireplace, and contemporary archi tectural lines stressing similarity of material and moods, the new facility is distinctly a showcase combining the diverse worlds of fine arts and finance. Outfitted with a modern array of Mosler banking equipment, the new First Galesburg National office has 10 drive-in lanes, head-on with direct vision, making it the largest facility, so far as is known, in Illinois. Two of the 10 lanes have Trans-Vista® II customer units, 36180 windows with Tellerette drawers for commercial customers; and eight have PV-800 Teller Terminals for regular drive-in users. Easily accessible, the bank fea tures a Magna-Dual Night Deposi tory for 24-hour, seven days a week service and two walk-ups in the vestibule for after hours transac tions. In addition to spacious new accounts and reception areas, the facility has a capacity for eight inside tellers and 14 employes. Mr. Bishop says the Mosler-equipped drive-in lanes and vestibule walk-ups “mean 15 additional hours of service weekly for our customers.” Regular hours are 9 to 6, Monday through Thursday; 9 to 7 on Friday, and 9 to 1 on Saturday. “Customizing their approach,” Mr. Bishop continued, “Mosler mixed and matched systems for us. For the first time at any bank, the Sandburg drive-in office has an N orthw Banker, D ec e m b e r Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Peter F. Bezanson, chairman of MorAmerica Financial, noted that these substantial gains in net income and revenue were achieved with only a modest 9% increase in assets. Total assets grew from $177,127,000 to $192,911,000 during 1978. The return on stockholders’ equity was 17 % in 1978 compared with 13 % in 1977. Capital funds of the company grew 14%, advancing from $18,863,000 to $21,557,000. The company paid $542,000 (.40 cents per share) in dividends to its stockholders in 1978 compared with $488,000 (.36 cents per share) in integrated system. The commercial 1977. Cash dividends paid by and consumer systems are linked via MorAmerica to its stockholders have the Trans-Vista II to the PV-800. grown at an average annual rate of This cost cu ttin g arrangem ent 14.5% over the past five years. makes us more responsive to Unrealized appreciation on venture customer needs and gives the office capital investments increased 69% better use of its personnel. during 1978 from $3,253,000 to “With ample parking, it was $5,485,000. planned with future growth in mind. The operating results for 1978 Built into the bank’s superstructure were anticipated and in accordance is a framework on which new the company’s continuing five equipment can be added in modular with year plan. Similar increases in fashion when needed.” operating results are expected in Besides the up-to-date banking 1979. equipment in the Sandburg office, MorAmerica is a multi bank First Galesburg National’s new holding company owning Jackson office is fully manned with Mosler State Bank & Trust Co., Maquoketa, Photoguard® surveillance equip ment, an alarm system with hi-line and First Trust & Savings Bank, security, American II vault door, W heatland, both Iowa banks; Morris Plan, LeaseAmerica Corpora and undercounter steel by Mosler. tion, MorAmerica Capital Corpora The new facility is named in honor tion and MorAmerica Mortgage of Carl Sandburg, poet and native Corporation, all located in Cedar son of Galesburg. Rapids headquarters. “Natural architecture is what I call the Sandburg facility’s style,” says Ralph Broughton, the build ing’s architect and president of St. Louis Fed Appointees Armand C. Stalnaker of St. Louis Design+ , Inc. of Creve Couer, Mo. The natural tones of wood are has been redesignated chairman of tastefully accented by the colossal the board of directors of the Federal 38-foot Italian travertine marble Reserve Bank of St. Louis, and fireplace and chimney, which form William B. Walton of Memphis, Tenn., has been reappointed deputy the focal point of the building. chairman for one year. Mr. Stalnaker has served as chairman of the St. Louis board MorAmerica Registers since January 1, 1978. His redesig 48% Gain in Net Income nation will take effect on January 1 MorAmerica Financial Corpora and continue through calendar year tion, Cedar Rapids, la., reported 1979, the third year of a three-year consolidated net income at the close term he is serving as a Class C of the fiscal year on September 30 of director of the St. Louis Federal $1,527,000, a 48% improvement Reserve Bank. Mr. Stalnaker is over the $1,033,000 earned in 1977. chairman and president of General This represented an increase from 76 American Life Insurance Company. Mr. Walton, who is vice chairman cents per share in 1977 to $1.13 in the year just completed. Total of the board of directors of Holiday revenue increased 11% from Inns, Inc., has been appointed by $19,306,000 in 1977 to $21,382,000 in the Board of Governors to a second three-year term. 1978. What’s New O FACILITATE the installa T tion of m ulti-lane drive-up system s, LeFebure offers two different drive-up windows: one a bay window design, the other for flush installation. Both come com- plete with bullet-resistant glass, a formica countertop, a two-way sound system and an electrically operated deal drawer. Both units accommodate standard LeF ebure cash-handling pedestals, and are engineered to serve up to five lanes of traffic when combined with Tel-Air motor banking systems. LeFebure also has released new literature on improved models of several other of its extensive list of bank products and services. One leaflet describes a new line of safe deposit boxes. They are low in price, nests are modular designed so many of the eight different box combina tions may be installed together instantly, and have interchangeable number plates for additional installa tion flexibility. Key-changeable lock on both the customer and guard side is standard, with seven-tumbler locks. A second brochure features LeFebure’s two newest vault doors— its top of the line 7000 Series and the moderate-priced 5000 Series. Both provide 36-inch wide openings, full-length stainless steel hinge covers, many modern security features and a choice of architraves. The third new brochure lists three of LeFebure’s direct-vision motor banking systems —Tel-Air 9 and Tel-Air 50, which rely on below grade pneumatic tube systems, and Tel-Air 1000, which utilizes an overhead dispatching and receiving tube. All systems feature a big, side-opening carrier, low-profile ki osks and Tel-Air proven reliability. Inform ation on any of the products may be obtained from LeFebure, P. O. Box 2028, Cedar Rapids, la. 52406. 27 ASTMAN Kodak Company has announced a new pocket camera for premium markets. Called the Kodak “ W inner” pocket camera, it will be available early in 1979 at an in-mail price of less than $10 and can be used as a self-liquidator. The new camera is an E easy to use aim-and-shoot model that accepts Kodacolor and other 110-size film. Kodak expects demand to be high for this camera which will be promoted with the tagline “Win with Kodak Incentives,” according to Robert D. Stallman, the company’s director of premium trade relations. The new camera accepts flipflash, 8- or 10-shot arrays, has a one-year warranty and is available in an attractive cork-color styrofoam mail er pack that is shrink-wrapped for security. Attractive dark brown labels, featuring a handsome “Win ner” logo, complete the package. The “Winner” is also available in an outfit that includes a 12-exposure cartridge of Kodacolor II film. MONEY HANDLING equipment introduced in recent months was displayed at the recent ABA convention in Honolulu. Pictured above are three new models. LEFT— The Model 1780 autom atic coin wrapper, which produces up to 24 wraps of coin per m inute is built on a roll-about stand for easy m obility. A number of minim um settings is necessary for total coin packaging and changeover of denom inations. Infared stack detector senses a disturbed coin stack. CENTER— The Model 936 features a 600-coin per minute capability, stops autom atically when desired quantity of coins is reached. Brandt memory unit retains an accumulative total, and an instantaneous electronic readout giving batch and accumulative figures. RIGHT—The Model 825 “ Countess” takes paper items ranging in size from ZVi" x 6” , to 4” x 8, of varying thickness and paper conditions. Simple to operate, it features a double detection device with indicator light, an extended stacker for good access and v is ib ility of documents and a variable speed control. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ec e m b e r 1978 28 Bank Directors Group Merges Into BAI HE Bank Administration Insti T tute has announced that is is merging the two-year-old National Association of Bank Directors into BAI. BAI said it has acquired the mailing list and program m ing material from the Washington-based NABD, which was formed to assist directors in such areas as disclosure, conflict of interest and insider transactions. In taking over the 500-member NABD, the BAI said it will continue the trade group’s program of director seminars and schools, and at the same time is establishing a Center for Bank Director Education in Park Ridge, 111. Heading the center is Michael G. Glass, BAI vice president for community banking and an assistant to Ronald G. Burke, president of BAI Aiding in the merger transition is NABD’s former executive vice president, Peter G. Reilly, who resigned the staff job last July to become director of economic and financial programs for the American Gas Association in Arlington, Va. CSBS Official Criticizes Fed Speaking to the recent Correspon dent Bank Division of the American Bankers Association, E. D. “Jack” Dunn, commissioner of banking and finance of Georgia and president of the Conference of State Bank Supervisors, labeled the Federal Reserve Act Amendments of 1978 a totally unnecessary attem p t to centralize control of the entire banking system in the Federal Reserve and warned th a t the measure would, over time, spell the end of the private correspondent banking system. “Whether by design or not” Mr. Dunn stated, “this bill drives a wedge between large and small banks which plays into the hands of Congress and the Fed. It smacks of a divide and conquer tactic which broadly would result in greater federal control of the entire banking and financial system. And it is so unnecessary. The Federal Reserve unilaterally, or with minor statutory changes which would be readily acceptable, could lower reserve requirements for member banks and N orthw Banker, D ecem ber Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Elkhorn have promoted two of the bank’s officers, Philip R. Kron and Mr. Reilly will serve as one of 12 Larry Marzahl, to vice president, it directors on a new BAI advisory was announced by Karl J. Kudick, panel overseeing the d irecto rs’ bank president. program. The commission is being headed by James A. Webb Jr., chairman and president of the Nashville City Bank and Trust Co., Tenn. Mr. Webb had previously served as president of NABD. NABD was started in September, 1976, to focus attention of bank directors on their rights and responsibilities in the wake of L. MARZAHL P.R. KRON regulatory scrutiny being given to Mr. Kron, formerly assistant vice the director’s function. Mr. Burke said the new Center for president and senior loan officer, has Bank Director Education will devel been associated with State Bank of op “a somewhat more aggressive Elkhorn since 1970. He will continue program” than NABD, scheduling to have senior loan officer responsi more events in an effort to reach a bilities in his new position. Mr. Marzahl, who is now vice broader range of individuals. “We hope to achieve a higher president and cashier, joined State activity level,” Mr. Burke said, Bank of Elkhorn in 1969. He was adding that the center will concen formerly affiliated with Citizens trate on such areas as director State Bank, Genoa City, Wis. obligations, bank audits, recruit ment of new directors, bank profitability as well as overall board Comptroller Names Deputy Comptroller of the Currency John functioning and director steward G. Heimann has announced that ship. William A. Longbrake has been named deputy com ptroller for thereby correct its membership economic research and programs. He problem.” will supervise the following divi Dr. Dunn also expressed grave sions: banking research and econom concern about the potential adverse ic analysis, strategic analysis, bank impact on the private correspondent organization and structure, and banking system. “If you combine financial reports and statistics. this bill with recent EFT proposals Dr. Longbrake served as special and selective explicit pricing con assistant to the chairman, Federal cepts,” he said, “the net result would Deposit Insurance Corporation, since be a more dominant role for the Fed June, 1977. in the interbank transactions sys tem. This is particularly frightening Diebold Interfaces With when you relate it to various Docutel On-Line ATM proposals for credit allocation.” Diebold Incorporated has devel As one specific example of how this control would be implemented, oped a controller software package Mr. Dunn noted that amendments which enables the Diebold TABS® are already under consideration 9510 controller and Diebold TABS which would assure short-run 910 automatic teller system to attractiveness of Fed membership interface within an existing Docutel for smaller banks who normally on-line ATM network. The Diebold software package would clear through private corres pondent banks. Under the amend enables in stitu tio n s now using ments, smaller banks would pay a Docutel machines to integrate them subsidized lower charge for clearing into an on-line network rather than and other services which economical write off the units, or the host ly would force them to use the Fed software, and build the network from scratch. instead of private correspondents. For further information, contact Diebold, Incorporated, Public Rela Wisconsin Men Promoted tions Department, Canton, Ohio D irectors of S tate Bank of 44711. 29 Fed Offers New Pricing Schedule The Federal Reserve Board has released for comment a tentative, preliminary price schedule for check collection and automated clearing and settlement services. The prices, based on data from the first half of 1978, approximate those that would have been in effect at that time had the schedule been in effect then, the agency said. A table on the preliminary pricing schedule announced by the Federal Reserve appears on this page. For example, the price per item for processing within the District cash letters deposited directly at a processing Fed office would be 1.5 cents for a city check in the Boston Federal Reserve District, 2.2 cents in the New York District and 1.2 cents for the Kansas City District. The check collection prices are based on data recorded by the agency’s Planning and Control System, a uniform cost accounting procedure implemented last year to help the central bank determine expenses incurred in all System operations. A markup of 11 % was applied to the total of direct and indirect PACS costs, the Fed said, to cover imputed costs similar to the capital costs and taxes that a private business firm would have to bear in providing the service. The adjustment was calculated under the assumption that the Reserve Bank assets used in providing check collection services were financed 50 % by debt and 50 % by equity. That proportion was chosen because it is common in the financing of utilities, the Fed staff said. The cost of servicing the debt was assumed to be 9% annually. The agency set the after-tax cost of imputed equity at 7 %. The central bank did not include a charge for Federal Reserve float. The tentative prices for ACH clearing and settlement services were based on projections of the estimated unit processing cost of future volume levels of electronic payment items the agency considered probable. The price schedule proposed shows uniform prices for all of each Federal Reserve District, but the central bank said cost differences may exist among offices within a District, and be reflected in later schedules. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRELIMINARY PRICE SCHEDULE FOR FEDERAL RESERVE CHECK COLLECTION AND ACH SERVICES Cash Letters Deposited Directly at Pfocessinj Fed O ffic e s * Federal Reserve District City County Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 1.5 2.2 1.4 1.3 1.3 1.3 1.5 1,4 1.2 1.2 1.4 1.3 (1) 2.4 1.9 — 2.3 — 2.3 2.2 2.0 1.9 2.1 — (2) Cash letters Consolidated Automated Clearinj and Settlement with Shipment Sent from (cents per item) Directly at Processini Processini Fed Offices Fed Offices Other Non Packate Group RCPC Mixed Feds Mach. Sort Sort City 1.5 2.0 1.9 1.9 1.6 1.5 1.6 2.0 1.4 1.4 1.7 1.4 (3) 1.9 2.0 1.5 20 1.8 1.6 — 2.7 1.8 2.2 1.8 — (4) 3.7 4.5 3.6 3.5 3.6 3.4 40 3.5 3.6 3.4 3.8 3.6 (5) 3.9 5.6 4.2 4.1 3.1 3.9 3.4 3.3 4.6 3.5 5.0 4.2 .3 .6 .6 1.4 1.9 1.5 1.9 2.6 1.8 1.7 1.7 1.7 1.9 1.8 1.6 1.6 1.8 1.7 (9) — (6 ) — .2 .7 8 .5 .6 Services; Items Deposited other Fed Offices to — — — — — 1.2 — — .3 .3 (7) 1.6 — (8) Country — 2.8 2:3 — 2.7 — 2.7 2.6 2.4 2.3 2.5 — (10) Intra-ACH Inter-ACH RCPC 1.9 2.4 2.3 2.3 2.0 1.9 2.0 2.4 1.8 1.8 2.1 1.8 (11) 14 .3 14 2.0 1.5 2.0 1.4 14 1.4 2.0 2.0 2.0 14 1.4 1.4 14 14 1.4 (13) 2.0 2.0 2.0 2.0 2.0 2.0 (14) ‘ Includes Direct Send Cash Letter. Prices of other special deposit services will be available from each Federal Reserve Office. Prices indicated are applicable at locations offering these services. On the Road? So are we. Best Western Best Western Kahler offers you fine restaurants, clean comfortable accommodations and superb service as you travel. 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It takes a lot more than just a printin press to satisfy a banks forms needs 1 takes specialized equipment and ma terials, a rigid quality control program, and a production system that will provide forms quickly and correctly But mostly it takes professionals who under stand the unique forms needs of banks and how best to satisfy these needs. This is exactly what you get when you place your forms needs in the hands of the Pro Formers at Deluxe.These pro fessionals know how to design and produce forms that will help your internal operations function smoothly and efficiently. There are standard forms to fit practically any need, including: Overdraft Notices, Charge Back Forms, D ebit and Credit Forms, Cash In and Cash N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 O ut Tickets, Control Documents and Savings Deposits and Withdrawals; to mention a few. In all, there are more than 80 standard forms. If you cant find one to suit your needs, a cus tom form can be prepared for a modest one-time make up charge. Orders are pro duced within 10 days of re ceipt, or earlier if needed, and the standard Deluxe guar antee applies. If you are not completely satis fied, the job will be rerun at no charge! Make sure your internal operation runs smoothly. Use the Pro Formers from Deluxe. For a catalog, price list and information, contact: DELUXE CHECK PRINTERS. INC. FORMS D IVISIO N /P.O . BOX 43497/ST. PAUL, MINN ESOTA 55164 1-800-328-9584 for OM jy Ut^j Q E □ usai (,V< ^ an -- r77 - -¿ r ^ UMAUV^ ^ X UV/<A ^ ^ , , VHA tt/ lA w l '/l/l' l' _ u v ^ tv>A ^ " V ^ k^ - ^ ^ lX ^ ______- — r ^ ^ _ ^ — t i t * y / r„,_ WW^r" o o o most frequent bank violations An exclusive N o r t h w e st er n B a n k er interview IOLATIONS of the Equal V Credit Opportunity Act of 1975 (ECOA) still occur although most bankers are familiar with the law. Recently Congress has begun to put some pressure on federal regulators and the latter have stated that they are responding with tough, thorough compliance exams as required by law. Because of the importance of ECOA and the concern of many bankers with the details of compli ance, the staff of the Northwestern Banker interviewed a spokesperson https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for national bank examiners to tell bankers the most common areas of mistakes. The ECOA Act prohibits different treatment of borrowers because of their sex, marital status, race, religion, color, natural origin, age (provided the applicant has the ability to contract), receipt of public assistance or the good faith exercise of rights under the Consumer Credit Protection Act. Regulation B imple ments the act. The law also says that lenders may not discriminate on a prohibited basis during any aspect of a credit transaction—the pre-application per iod, taking of the application, evaluation, acting on it, maintenance of credit files or furnishing of credit information. “Most of the violations we find are not intentional,” said Coreen Arnold, national bank examiner for the 10th Federal Reserve district. “Our exam is an educational process,” she commented. “We give them an idea of how they can comply. Our report is usually lengthy.” The importance of complying with the act cannot be denied as “we are beginning to see more suits in this part of the country.” Ms. Arnold said a class action suit can cost $500,000 in punitive damages plus 1% of net worth. Individual suits can cost $10,000 in punitive damages plus actual court costs and attorney fees. The worst liability, however, is the bad publicity a bank gets, according to Ms. Arnold. “This costs a lot more.” N orthw estern Banker, D ecem ber 1978 32 “If the applicant can’t meet your standards, you can require a co-signer (picked by the applicant),” she explained. After each examination is comple ted, a regional council reviews the [Continued from page 31] examiner’s work. “A banker may Regulators find the most viola treated alike. Each inquirer must be question any thing we say,” Ms. tions in the area of applications, said given the opportunity, even encour Arnold said. “We ask for a letter Ms. Arnold. “We review all blank agement, to fill out an application citing specific law or a legal opinion from the bank attorney. forms (turn-down letters, applica and/or see a loan officer. As part of the examination, tions, lending policies, etc.). “Many times it is hard for the Generally, when an applicant regulators take a random statistical banker to accept our suggestions. applies for individual credit, the sample of loan files—35 accepted and bank may not ask the applicant’s 18 rejected loan applications from We are asking them to give up some marital status. Two exceptions to throughout the bank. These are things they used to call prudent this rule are: if the credit transaction compared with the written lending banking. “Each bank has 90 days to is to be secured and if the applicant policy or what the loan officers have respond to the examiner’s report,” resides in a community property said. The most controversial violation she said. “We take a tougher stance state or lists assets located there to here is in signature requirements, the second time through. The next support the debt. The law also states that a bank according to Ms. Arnold. The law time we examine the bank, we check may not discourage an applicant prohibits a blanket signature policy. the violations of the time before. It from applying for joint credit. Each application must be evaluated then becomes willful non-compli [See accompanying box of Do's and separately. ance.” □ Don'ts prepared by the ABA.] Ms. Arnold commented that the Do's and D on'ts* easiest way to be in compliance with the law is to follow the sample forms The following brief summary will introduce you to only some of the requirements of in the regulation. Many banks are Regulation B. To make sure you are in compliance with the many regulations and provisions of the Act, and for an analysis of how these may affect you, please refer to the still using the old financial applica text. tion form from the Federal Reserve, which does contain violations, she DO treat all applicants the same, regardless of sex or marital status. DO grant a separate account to all creditworthy applicants when they wish it, whether said. or not they are married. Because many banks take applica DO allow women to use their maiden names, married names, or hyphenated surnames if tions orally, interview ing loan they choose. officers is an important part of the DO consider reliable alimony, child support, and maintenance income in your credit regulator’s job. evaluations. DO include both spouses’ income so long as it appears likely to continue. “Many times they have very little DO note that both husband and wife are entitled to a credit history on user and joint information in their credit files,’’ Ms. accounts. Arnold said. “The law requires DO retain all applications and credit evaluation working papers for at least 25 months. documentation, even when oral DO consider state laws in community property states which are not inconsistent with applications are taken. This informa this regulation. DO notify applicants of your credit decision, either orally or in writing. tion should be retained for 25 DO continue to use fair criteria to evaluate each applicant’s ability to repay. months.” Another common violation is DON’T discriminate against any applicant on the basis of sex or marital status. making a general request about DON’T make any statements which might tend to discourage applicants, especially di vorced or widowed persons from applying. other income, Ms. Arnold said. The DON’T ask about an applicant’s spouse unless the applicant indicates that the spouse applicant must be advised first, will be using the account or will be contractually liable for it. whether the application is written or DON’T use sex or marital status in credit scoring systems. DON’T use the existence of a telephone listing in the applicant’s name in credit evalua oral, that alimony, child support, tions (except credit extended in a business firm’s name). etc., need not be revealed if the DON’T ask about childbearing intentions or capabilities. applicant does not wish to have it DON’T use statistics or assumptions concerning the probability of childbearing in considered as a basis for repayment credit evaluations. of the obligation. This option must DON’T terminate an account or require a re-application because of a change of name or marital status. precede the request. DON’T arbitrarily require the signature of one spouse on the account of the other. The examiners also talk with the DON’T discriminate against any applicant based on the fact that all or part of the appli people at the bank who set the cant’s income derives from any public assistance program. lending policies. DON’T discriminate against any applicant who has in good faith exercised any right under the Consumer Credit Protection Act or any State law upon which an “We use an outline, ask questions exemption has been granted by the Board. and try to determine their knowledge This list is just a brief summary—there are many exceptions! For a full discussion of of the law,” Ms. Arnold said. “If these exceptions as well as practical hints on how best to implement each provision, see they can’t tell you something, they the text. are probably doing it wrong. *Prepared by the American Bankers Association as part of its Compliance Manual. First contact personnel also are interviewed. All inquiries must be N orthw Banker, D ecem ber Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 33 S WE collectively work toward solutions of our A broad national problem s, there are both encouraging and disturbing elements. Chief among my concerns is the major role being played by the federal government in dealing with these problems. Since the Great Depression of the 1930s, the federal role in decision-making at the regional and local level has been an ever-increasing one. Right now, 21 % of our gross national product goes to the federal government, and it is estimated that government at all levels absorbs 41% of the GNP. Our federal government seems to be doing less and less with more and more. The number of federal, state and local government employees has risen from 11 million to 14.5 million in the last decade, a gain of about 33% that makes government the nation’s largest employer. During the same decade federal expenditures increased 165 %. We now have some 60 million people in the U.S. receiving federal checks. The likelihood that government involvement in our affairs will increase seems almost certain. Performance Record Unimpressive This is a discouraging prospect at best, because the government’s performance record as a problem solver is far from impressive. With the exception of the bureaucracy’s zeal and efficiency in collecting tax money, Washington can’t boast of many sparkling successes. Take our national rail transportation system for example. Since the creation of Amtrak in 1970 and Conrail in 1976, Amtrak has spent $2.5 billion and Conrail more than $2 billion, and rail service today is worse than when they took over the system. Amtrak’s operating deficit was $240 million last year and its latest budget shows a $470 million deficit. Conrail has just asked for another $1.3 billion to keep going. One reason for the repeated failures of government is that bureaucrats and policy makers aren’t held accountable for their actions. I don’t know where the people are who conceived, created and operated Amtrak and Conrail, but in good government fashion I ’ll bet they’ve all been promoted. In too many instances both new and old regulatory agencies are taking refuge in requirements that environmental and other social factors be considered in making decisions, to avoid making any decision at all. Endless procedural delay was not the intent of Congress but all too often th at’s what we are getting. The John K. Evans Case Consider the plight of John K. Evans who, according to a recent edition of Fortune, wants to build a petroleum refinery in the deepwater port of Hampton Roads in Virginia, a port that could accommodate huge tankers and which is already served by a network of railroads and pipelines. The refinery would be within 500 miles of half the population of the nation. Nine years ago, Mr. Evans began hacking away at the red tape. After 20 exhaustive and comprehensive engineering reports and environm ental impact statements for 65 government agencies, 10 public hearings and three lawsuits, the Army Corps of Engineers disapproved the project, declaring that the information available on the proposed refinery “is not sufficient.” The estimated cost of the 175,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Government Agencies • Inept • Ineffective • Expanding From an address by A. L. FELDMAN President and Chief Executive Officer Frontier Airlines Denver, Colo, and Chairman, Denver Branch Federal Reserve Bank of Kansas City, Mo. barrel-a-day refinery has risen from $85 million to $600 million during the delay and Mr. Evans, who is 71, says he intends to continue pressing the project as his personal crusade. I don’t know whether Mr. Evans is a rapacious businessman, or on the side of the angels, but at his age he should heed the maxim that one may outwit the federal government but one cannot out wait it! We have an example right on our own system — an airport where we’ve been trying to meet the environmental requirements to fly jet airplanes. After N o rth w e s tern Banker, D ec e m b e r 1978 34 At the same time, there are some encouraging things happening that just may slow these distressing trends. The message of the citizens of California is that fiscal restraint with the tax dollar is a fashionable, effective and desired alternative to the pork barrel; that the political monument of the future is a balanced budget, not a new ballpark. G O VER NM ENT A 6 B N C IE S three environmental impact studies and 14 years, we still can’t get a decision — and I ’ve concluded we aren’t getting close. What the National Environmen tal Protection Act says is that environmental concerns must be considered in the decision making process. That is as it should be. But it also seems implicit to me that a definite decision should be made — to proceed or not to proceed — rather than allowing the non-decision of procedural delay to resolve the issue by default. There are dozens of other examples where bureaucracies have made worse and worse decisions, at higher and higher cost, in more and more areas of our economic and social life. Compared to 10 years ago, is the postal service more efficient? Are our children better educated? Is the welfare problem closer to solution? Government Expands—Fails I want to make it clear that I ’m not against welfare for those who need it, a reduction in crime, the conservation of our environment, or education for our children. My concern is the continued expansion of government agencies in view of their terrible performance in dealing with these problems. I do not believe the design or implementation of corrective legislation will be any more effective in dealing with the problems of the Rocky Mountain area than they have been elsewhere in the nation. Not only have results been poor, but this growth of the public sector is draining our resources and making it harder for the private sector to perform by diverting huge amounts of capital away from more productive uses. At the end of World War II the federal budget deficit was $269 billion, and it was reduced to $251 billion by 1948. However, the last 30 years have seen our national debt triple! In the last five fiscal years alone the federal deficit has increased from $4.7 billion in 1974 to a projected $60.6 billion in 1979. This money has to come from someplace. I t’s estimated that in the decade ending 1977 the federal government took a “half trillion dollars out of the capital markets — approximately $260 billion in cumulative deficits and about $225 billion of net borrowings” for federal programs. Government’s expanding role into our lives and businesses, its ineffectiveness and ineptitude, the fact that some government agencies are using the laws and their own administrative procedures to paralyze decision making, and the dissipation of our resources which causes badly needed capital to drift away toward Washington are very disturbing to me. N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Airline Competition Is Good It has now become clear to many that competition — or the threat of competition — combined with the natural forces of the marketplace would do a better job of determining who should fly where, and at what price, than any regulatory body could. The Senate has recently passed a bill — and a similar one is going through the House — that will permit freer route entry and exit and greater pricing flexibility. Spurred by the apparent mood of Congress, the Civil Aeronautics Board has been more forthcoming in issuing new and competitive route awards, and has permitted the airlines to reduce fares to attract passengers. The early result of just a hint of freedom has been lower prices, a wider choice of flights and services, and rising orders for new aircraft. People who have never flown before can afford air transportation, and they are flocking to the nation’s airports in record numbers. The airlines, many of whom have opposed a less regulated, more competitive environment, are coming to realize the virtues of competition as they watch their airplanes fill up and their profits grow. Frontier was among the first in our industry to support regulatory reform, because we are convinced we can prosper in a more competitive environment, and I ’m equally convinced that getting the government out of our business will mean lower prices and better service for our customers. The big question is whether Congress will allow our industry to become completely deregulated, or whether it will recoil from the first twinge of pain when someone in our industry is threatened by economic injury. I share the view of the CAB chairman that one of the better things that could happen would be the abolition of the board. I ’d rather put my faith in Adam Smith than in that system. Better Balance Is Needed Proposition 13 and airline deregulation, although seemingly unrelated, move in the direction of recognizing the limits of what the government can do, and placing more faith in our system of individual enterprise. Is this a trend? Or just a few isolated examples of things that make me feel good? I don’t know. I hope it’s a trend, because it’s a trend we need. As we look toward the extraordinary growth of our intermountain region and the severe problems that attend that growth, the need for a better balance between the private and public sectors becomes essential. More of the economic and social potential of the intermountain region and of the nation as a whole will be realized if the private sector can recapture some of the ground it has yielded in the past. I ’m convinced that in a freer, more open system, the spur of competition and the zest of accomplishment are the things that will arouse the productiveness and inventiveness that we will need through this period of expansion. D _ -v -v , - - ^ * Leasing is a capital idea. Production machinery, data processing systems, materials handling equipment, whatever—the single strongest reason why a company should lease is to conserve working capital. In addition, the current line ot bank credit will not be disturbed. Remember. A company makes money by using equipment. Not by owning it. Now when you consider reasons for using Lease Northwest instead of some other leasing company, you get into things like competitive rates, quick credit decisions, and full customer service. Plus more. If your capital could use a good idea, talk to your Banco banker, or call Lease Northwest direct, Dave Michael at 612-372-7416, Mpls., Roger Meier, 402-536-2310, Omaha, or Jim Sheedy, 515-245-3392, Des Moines. We’re on your side. Lease northwest, Inc . Affiliated with Northwest Bancorporation We’re on your sid e. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 36 ABA Delegates Elect John Perkins President ORE than 14,200 persons M registered for the 104th annual convention of the American Bankers Association held in Honolulu during the last week in October. Delegates elected the following officers to lead the association during the coming year: President—John H. Perkins, pres ident, Continental Bank, Chicago. President-Elect—-C. C. Hope, Jr., vice chairman, First Union National Bank of North Carolina, Charlotte. Chairman of the Governing Council—A. A. Bud M illigan, president, Bank of A. Levy, Oxnard, Cal. Treasurer—Thomas R. Smith, president, Fidelity Brenton Bank & Trust Co., Marshalltown, la. Mr. Perkins succeeds Mr. Milligan in the office of president. Mr. Smith is starting the last year of his two-year term as treasurer. Willis W. Alexander, Jr., execu tive vice president, will continue to head the ABA full-time staff at headquarters in Washington, D. C. Mr. Hope was one of two bankers nominated earlier this year as a candidate for the office of president elect. Lee Gunderson, president of the Bank of Osceola in Osceola, Wis., withdrew from the race later in favor of Mr. Hope and is the announced candidate for that office at the 1979 convention. Delegates adopted a bylaw change under which the chairmen of the community bankers division or the agriculture bankers division will serve in alternate years on the ABA board of directors. The board was expanded through this bylaw change to a total of 26, in order to give the two major divisions serving small banks a seat on the association’s board. In his press conference at the N orthwfor estern Banker, D ecem ber Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 convention, Mr. Perkins said the ABA strongly supports President Carter’s desire to bring inflation under control. He expressed serious concern over “news reports which suggest the possibility of certain types of wage and price guidelines that could be ineffective and lead to frustration and eventually pave the way for wage and price controls as we have seen happen in just the recent past.’’ He said “the public learned that lesson very well from its experience with the Nixon controls. The most important thing the government can do now is to focus even more strongly on the fundamentals...the most important is fiscal restraint by the federal government—spending restraints sufficient to bring about a significant cut in federal deficits— that will also make a material contribution to the Federal Reserve’s efforts to control the money supply.’’ Mr. Perkins also looks for continued pressure from Congress in the area of banking legislation. This would involve efforts to resolve the Fed membership problem, efforts again to consolidate federal regula tory agencies into one giant overseer, and the mandated review of the McFadden Act on branching. In his remarks to the convention, Mr. Alexander called on ABA members to continue their drive for consensus in forging common legislative goals as they have done through the ABA Leaders Confer ences in the past two years. Keynote Address David Rockefeller, chairman of the Chase Manhattan Bank, New York, delivered the keynote address. He warned delegates that “our common interests are far greater than our differences.” He referred specifically to the onslaught against the banking industry by other financial systems that have deteriorated banking’s share of the financial market since World War II from over 50% to just one-third. With Congress willing to impede banks in every way and willing to grant broadened powers to all other financial institutions, Mr. Rockefeller told the bankers it is time they switch their attention from the divisive branching and interstate banking issues to developing a common front against the encroach ing real competition from s&ls, credit unions, savings banks, foreign banks, insurance companies, invest ment banks and those who issue commercial paper. He said the divisive issues of branching and interstate banking have been exaggerated beyond thentrue importance, stating that the fears of smaller banks that large money-center banks would spread across the nation and take over local m arkets are, in his opinion, unfounded. He cited the stiff competition his bank encountered when trying to enter upstate New York communities. Those banks, he said, relied heavily on their smaller size to advantage in providing regional and customer services. “The real danger in the interstate banking controversy,” he empha sized, “lies in whether we let it distract our attention from more im portant issues. R ather than bickering over internecine issues, I believe it is critical that commercial bankers pull together to compete aggressively in the business and banking marketplace.” The annual conventions for the next four years are scheduled as follows: 1979—New Orleans, Octo ber 6-10; 1980—Chicago, October 11-15; 1981 —San Francisco, October 3-7; 1982 —Atlanta, October 16-20. 37 SPEAKERS TABLE— Eliot Janeway, colum nist; Dan Quigley, e.v.p., host bank, and Preston Bloom, state senator, Peoria. TOP EXECUTIVES— Myron Ratcliffe, chmn., host bank; William Steiger, U.S. Congressman from W isconsin, and Henry Gardner, pres., host bank. - Consumer EFTS Bill Proposed BILL providing for greater con A sumer protection to users of electronic funds transfer systems k than a measure recently passed by Congress will be submitted to the Illinois legislature in February, Dan i Quigley, executive vice president of National Boulevard Bank, Chicago, and chairman of the Illinois EFTS commission, said last month. Mr. Quigley made the announce_i- ment at his bank’s annual conference for bankers and area business leaders. About 150 were in atten4 dance. The commission, based on hear ings around the state, was unani mous in feeling that a state law should contain more safeguards than > the current federal law. Illinois statutes do not regulate the use of remote banking and bill-paying machines, because the issue has been tangled with the continuing debate By MALCOLM FREELAND, Publisher on branch banking. The federal law would apply to Illinois unless the state adopts more extensive legisla tion. Mr. Quigley stated that the commission will make every effort to keep the questions of EFTS and bank structure separate in proposing its recommended legislation. State Senator Prescott Bloom of Peoria, who is a key member of the commission, concurred. Key Speaker Eliot Janeway, political economist and columnist, predicted a prime rate of 13 to 15% by the end of the first quarter of 1979. He appeared on the host bank’s program for the second consecutive year. Known in some quarters as a forecaster of “doom and gloom,” Mr. Janeway COFFEE BREAK— Bill Reynolds, host bank bond dept.; Bill Boehm, pres., Tama St. Bk., Tama, la.; Gener Carter, pres., First St. Bk. & Tr. Co., Park Ridge, and Pete DeRosier, v.p., host bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis said that auto sales, except for luxury models, will be down by 25 %. He held little hope for a vibrant mortgage market, except for the Washington, D.C. area, which he described as the home of double family payrolls. He says rentals are lagging behind home prices, and therefore will “go through the roof.” He holds out little hope for the stock market, predicting a Dow Jones average in the 600 range. Looking at the makeup of the new Congress, Mr. Janeway stated that the membership will be younger than at any time since the early 1960’s. Fifty percent will have served two terms or less, meaning a more conservative tone. Pressure to cut EFTS BILL . . . [Turn to page 39, please] CHECKING IN for conference were Joseph Connelly, pres., W estchester Tr. & Sav. Bk., and George L. Dearborn, v.p. & head of correspondent dept, for host bank. N orthw estern Banker, D ecem ber 1978 SERVICE to agriculture was discussed by Eugene C. Coombs, v.p., Security Bk., N.A. B illings; Walter W. Minger, sr. v.p., Bank of America N.A., San Francisco; Bernie Kersey, corr. bk. o ff., Iowa Des Moines N.B., Des Moines, and Llewellyn Jenkins, e.v.p., Manufacturers Hanover Tr. Co., New York. RIGHT— FFA President J. Ken Johnson visits with ABA President John H. Perkins. Agricultural Bankers Report Optimism Prevails Despite High Interest Rates The high cost of money and the escalation of interest rates was the focal point of many of the discussions conducted by some 2,000 registrants at the ABA Agricultural Bankers Conference in Nashville last month. Even though the bankers ques tioned how they will make loan commitments to their agricultural customers in 1979 and 1980, due to the high rates and tight money, an optimistic tone prevailed. Current prices for cattle and hogs are favorable, and grain prices are higher than most bankers anticipa ted. Perkins Report John H. Perkins, ABA president, and president, Continental Bank, Chicago, led off the program that featured some 70 experts who participated in general sessions, workshops and in-depth discussion sessions. Mr. Perkins sounded an alarm about the serious threat posed by inflation. He reminded registrants that they see dramatic examples of inflation daily in the form of high-priced farm machinery and escalating farm land values. He emphasized that bankers should back President C arter in his anti-inflation program, adding that avoidance of mandatory controls is a compelling enough reason to take a supportive stand. Four major factors that have to be reckoned with were listed by N orthw Banker, D ec e m b e r Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 By MIKE FREELAND Business Manager insufficient acreage, and (4) the poor manager. Ed Spetman, president of the President Perkins. They included (1) Council Bluffs Savings Bank, the federal budget deficit, (2) the Council Bluffs, la., reported that high proportion of gross national general credit in his area is “good” to product going to the federal “excellent.” He said that farmers government, (3) excessive growth of have definitely changed to the degree the money supply, and (4) the that they are becoming managers excessive cost and inflationary and m aking appraisal of the impact of government regulation. situation before they jump in. He added that operators are getting Credit Outlook “Farmers and bankers are much bigger, and it is not unusual for his more optimistic this fall because of customers to have 1,100 to 2,000 better yields, improved price levels acres of row crop. Land prices, and confidence gained by success in according to Mr. Spetman, are steady in his area with prices last year’s loan settlements.” This was the comment made by running from $1,500 to $2,000 per Charles N. Finson, president, acre. A th ird panelist from the National Bank of Monticello, Illi nois. Mr. Finson served as a member N o r t h w e s t e r n B a n k e r area was of a five-man panel on the William Herr from Southern Illinois agricultural credit outlook. He U niversity in Carbondale. Mr. warned that his bank’s greatest Herr reported the results of a problem is obtaining an adequate recent survey as follows; (1) farm supply of funds, and the flow of loan demand is strong and is funds from S & Ls is a part of the expected to remain strong, (2) even problem. He emphasized th a t though loan-deposit ratios have current problems fall into one of the increased in recent years, agricul following categories; (1) the farmer tural bankers indicated they are whose operation has expanded too willing to maintain or increase their fast and too far through capital ratios. Correspondent relationships purchase of more land or expensive have helped eased the burden of loan equipment and who can’t meet demand, (3) improved loan quality of annual debt service requirements, (2) farm loan portfolios was reported, the farmer who raised his standard of and (4) bankers expect further living radically during the higher interest rate increases between now income period of 1973 to 1976 and and the end of 1978. From the 1974 who has not readjusted to current to mid-1977 period, bank farm loan travel levels, (3) the farmer who has rates had held near the 9% level. 39 EFTS BILL . . . [Continued from page 37] government programs and expenses will come from both sides of the aisle, according to Mr. Janeway. In conclusion, he described 1979 as a year of hard decisions - a year of adjustments. Looking ahead, he sees the 1980’s as growth years. LEGAL ASPECTS of ag lending were discussed by Ray Weilage, Jr., chm n., Bank of Cody (Nebr.), Peder K. Ecker, attorney, Sioux Falls; John S. Osterman, pres., Farmers St. Bk., Kilgore (Nebr.), and Robert A. Warder, attorney, Rapid City. Outlook for Prices “First quarter prices in 1979 will find on-farm prices for corn at $2.25 to $2.30, on-farm prices for beans at $7.00 and wheat below $3.00.“ These were the predictions made by Daniel G. Amstutz, president, Cargill Investor Services, Inc., Chicago. Mr. A m stutz was a panelist on the popular “Outlook Session.” He explained that world supply of feed grains is up 5.6% and world demand is up 3 %. He believes that China may increase purchases, while Russia’s purchases may level off due to a good production year. Looking at the hog market, Harold Heinhold, chief executive of Heinhold Companies, Inc., Kouts, Indiana, sees a strong demand with prices at $50 to $52 by month end, $46 to $48 in January, $50 in February and $44 to $46 this spring. He urged bankers to have producers forward contract if they can build in a profit. Topper Thorpe sees a continued lowering of production and consump tion per capita of beef through the 1980s. Mr. Thorpe, who is general manager of Cattle-Fax, Denver, says the lack of expansion is due to three factors; (1) a government threat to increase imports, (2) adverse weather in the west accounting for lack of feed on ranges, and (3) financial stress and producers reducing loans. Five Year Projection “Agricultural Banking - Where Will We Be in 1983?“ was the topic of an in-depth discussion by Dr. Alan R. Tubbs, president, First Central State Bank, DeWitt, la. Dr. Tubbs expressed concern over the siphoning of funds from rural communities by both savings and loan associations and credit unions. He warned that if the trend continues, it will impact heavily on rural banks’ ability to service agriculture between now and 1983. Dr. Tubbs suggested that alternatives for rural banks should include access to the money market. He mentioned participation with the PCA and the plan announced by Bank of America for agricultural participations. Concluding his “look ahead,” Dr. Tubbs said th a t “ all things considered, agriculture has been and will continue to be an excellent place to invest deposit funds.” Political Leaders Three Congressional leaders were featured as a part of “Perspective ’79,” the theme for the annual bank conference. Dan Rostenkowski, U.S. represen tative from Illinois’ 8th district, told the audience that election results sent a message to Congress to spend more time at home visiting with co n stitu en ts. He has been an advocate of tax reform, trade reform, and national health care. William Steiger, U.S. representa tive from Wisconsin, reported on his activities as a member of the House Ways and Means Committee. He advocated cutting the federal deficit in 1979 to $15 billion and balancing the budget in 1980. He also suggests removing Medicade from the Social Security System and financing it through general revenues; elimina ting double taxation by at least raising the present $100 deduction for dividends to $500, and putting a freeze on the minimum wage now. Henry J. Hyde, U.S. Representa tive from Illinois’ 6th district, and a member of the House Banking Committee, said one of the first priorities of the new Congress will be the question of Fed membership for banks. HOSTS for Iowa Bankers Assn, reception were Carolyn and Dave McNichols of IBA, shown at right, Pictured from left are Leola and E.W. Claussen, pres., Farmers St. Bk., Schleswig, la., and Ed and Glenna Spetman, chmn. and pres., Council B luffs Sav. Bk. RIGHT— Featured speaker Dr. Alan R. Tubbs, pres., First Central St. Bk., DeWitt, la. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 40 South Dakota News R. L. PLOWMAN President J. I. MILTON SCHWARTZ Secretary Armour Pierre Sioux Falls Bank Makes Appointments United National Bank in Sioux Falls has appointed managers for its main office and two branch offices. Robert H. Currier has assumed a position as manager of the bank’s main office. He was previously director of personnel for the United Bank of Denver and was the founding president of Republic National Bank in Englewood, Colo. Mr. Currier has 29 years of banking experience. Wayne Wassink has been transfer red to the bank’s 41st Street branch as manager of that office. Mr. Wassink joined the bank in 1975 and has been branch manager of United’s Eastgate branch since 1976. Replacing Mr. Wassink as mana ger at United Eastgate is Jeff Walter. Mr. Walter joined the bank in 1976 and had worked in the instalment loan department at the main office. Selected by Kodak The photographic art decorating the walls of the First National Bank in Sioux Falls has been selected by 1st of Black Hills Opens New Branch The new North Branch of the First National Bank of the Black Hills, Rapid City, was s c h e d u le d to open this month north of 1-90 on Disk Drive, ac cording to bank the Kodak Co. for use in a national president Char les T. Undlin. advertising campaign. Kirk E. Dean Pictures of the First Sioux Falls has been named nature photos are being used to a s s is ta n t vice K.E. DEAN dem onstrate how the use of p re s id e n t and photography can brighten a build ing’s interior and add a “friendly, manager of the new office. He joined the bank in 1970 as a Northwest homey’’ image. Bancororation management trainee after working as a systems analyst at the corporate headquarters in Two Retire at Watertown R. H. Walrath, chairman and chief Minneapolis. Mr. Dean returned to the bank’s executive officer of the F irst main office in February and has been N ational Bank of W atertow n, recently announced the retirements an officer since 1972. He is a of Roy F. Nugent and Marie Jacobs. graduate of St. Olaf College in Mr. Nugent, vice president and Northfield, Minn. The North Branch was scheduled commercial loan officer, joined the bank in 1941. He started as a to open in temporary quarters until messenger, later working in several the new building is completed. The First National Bank of the departments of the bank. He was named assistant cashier in 1950 and Black Hills celebrated its 100th was promoted to assistant vice anniversary this year. president in 1956. Two years later he was named vice president in charge of personnel and operations. Mrs. Jacobs joined the bank in Charles T. Coyne 1957 and became general bookkeep Services for Charles T. Coyne, 93, er. She was later promoted to teller were held in Emery. One of the and eventually head teller at the oldest bankers in South Dakota, he downtown bank. In 1973 she was began his banking career 70 years named head teller at the Magic Mile ago in Midland. office of the bank. He purchased an interest in the Security State Bank of Emery in 1926 and was named cashier. The charter was changed to a state charter in 1941 and in 1946, Mr. Coyne and other stockholders of the Emery bank started the Security for ALL your Bank Supplies State Bank of Alexandria. Mr. Coyne was elected president • Bank Printing of both banks in 1948 and held these positions until recent months. He • Checks continued as a director of the Emery • Computer Supplies bank until his death. D O N I FORGET USAT U CHECKBOOK CO. JS. We have Plenty of “ TIME” for you! • Office Needs AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUNDf The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3162 Out of State Call Wats Line 1-800-228-9246 N orthw Banker, D ec e m b e r Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Onida Bank Installs Message Center The Onida Bank recently installed a Message Display and Information Center. The electronic display was designed, manufactured and install ed by Daktronics, Inc. of Brookings. South Dakota News 41 Promoted at National The board of directors of National Bank of South Dakota has advanced one officer, ac cording to Nels E. T urnquist, p re s id e n t and chief executive officer. Dwayne Backes has been elec ted assistant vice president and as sistant manager, Huron Branch. Mr. Backes began his banking career with National Bank of South Dakota in 1968 at the Platte Branch and also served in Wessington Springs. In 1975 he transferred to E a st Branch, Sioux Falls, as assistant vice president and assis tant manager. Joins Mitchell Bank Staff Lance Koth has joined the instal ment loan department of Commercial Bank, Mitchell, as a loan officer, according to Ron Jenkins, p resi dent. Mr . Koth graduated from M itc h e ll A rea Vocational School with an accounting de gree. A native of Wessington Springs, he previously worked for Associated Financial Services. International Bank Meet Slated for New York Comparative methods of managing banks’ international departments will be discussed in two panel sessions to be .featured during the American Bankers A ssociation’s 1979 International Banking Confer ence. The meeting will be held January 17-19 at The Waldorf-Astoria Hotel in New York City. Conference Chairman Charles C. Smith said more than 300 domestic and foreign chief executives and senior interna tional banking officers with policy making responsibility are expected to attend. Mr. Smith is also executive vice president of Bankers Trust Company, New York. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A strong ag lending pro gram requires both. Your knowledge of the land and the people who work it. And the correspondent resources we can provide. At Security National, we know ag lending. And we can make it work for you and your cus tomers. All it takes is a call. For ag lending, consumer credit, overlines, opera tions, trust services, and investments, we’re your resource. So, start corresponding with Security. You’ll be glad you did. “Now, th a t’s startin g som ething!” Jim Hongslo Vice President Correspondent Banking 712/ 277-6625 SECURITY NATIONAL BANK © IN SIOUX CITY, IOWA. MEMBER F.D.I.C. N o rth w e s tern Banker, D ec e m b e r 1978 42 H. L. Thorndal, bank president, said the decision to secure funds on the national market through a bond issue was prompted by increased demand for loans and by the prospect of the possible decline in the State General Fund balances due to the current public pressures for tax reduction, which, he added, could affect the Bank of North Dakota’s deposits. North Dakota News WAYNE A. STROUP HARRY J. ARGUE Pres. Garrison Exec. Dir. Bismarck New President Named For 1st of Park River The board of directors of the First State Bank of Park River recently announced the election of Gary L. Scofield as p re s id e n t and managing offi cer. He succeeds Gordon S. Lar son, who will retire at the end of this month. Mr. Scofield G L- SCOFIELD was formerly a liaison credit officer at First Bank System, Inc. in Minneapolis. He joined the company in 1973 as an agricultural representa tive at the Huron office of the National Bank of South Dakota. In 1974 he was elected assistant cashier at the Aberdeen National Bank, Aberdeen, S.D., and was promoted to liaison credit officer in 1976. Mr. Scofield graduated from South Dakota State University at Brookings with a BS degree in agribusiness. Mr. Larson began his banking career in 1935 and has been associated with the First State Bank of Park River since 1941. He has served as president of the bank since 1957. Liberty Names Two Leon Schaible and Ken Davis have joined the Liberty National Bank & Trust Co., Dickinson. Mr. Schaible, the new assistant cashier, was formerly assistant cashier at the Bank of Lemmon, S.D., for 3x/2 years. Previously he was associated with S.S. Kresge Co. in Sioux City, Iowa. He received a degree in business administration from the University of South Dakota at Vermillion. Mr. Davis is assistant auditor at N orthw Banker, D ec e m b e r Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Liberty. He joined the bank following graduation from Dickinson State College with a degree in business administration. He had previously done bookkeeping and teller work at the bank. Promotions Announced at Dakota Northwestern Two employes of the Dakota Northwestern Bank, Bismarck, were promoted to assistant vice president positions at a recent board meeting. Doris Herr will manage the bank’s new loan servicing department and John D. Larson will supervise the real estate division of the consumer loan department. Mrs. Herr joined the bank in 1967 and Mr. Larson has been with Dakota Northwestern since 1977. Bank of N.D. To Issue Bonds The Bank of North Dakota recently announced it will be issuing $50 million in mortgage-backed bonds to meet the increasing demand for home, agricultural and business loans in North Dakota for the coming year. Bank officials believe this is the largest bond issue ever originated in the State of North Dakota. The bond issue, said bank officials, is secured by Federal Housing Administration and Veter ans A dm inistration guaranteed mortgages on North Dakota homes. The funds are repayable over 15 years. Officials said the bonds received a AAA rating by New York rating services, the highest rating avail able, and noted this is one of the few times that either a bank issue or a collateralized bond issue has ever been rated. The bond sale is to be handled by Smith Barney, Harris Upham & Co., Inc. of New York. Area Credit Women Install Officers Carol Heintzman was recently installed as president of Credit W om en-International of FargoMoorhead. She is a personal banking officer at the Fargo National Bank & Trust Co. Other new officers include Maggie Watson, vice president; Lucille Brown, secretary, and Sharon Wieland, treasurer. Joins Bank Loan Staff W. E. Summers, president of the Stutsm an County S tate Bank, Jamestown, has announced that Elliott Meidinger has been named -A assistant instalment loan officer. Mr. Meidinger had worked parttime during the past year at the bank as a teller-bookkeeper. He is a 1978 graduate of Jamestown College with a degree in business administration. Cando Bank Observes 90th Anniversary The First State Bank of Cando recently celebrated 90 years of service to the area with a party at the Cando Armory. The bank was chartered in 1888 to C. J. Lord and H.I. Whited and was operated as the First National Bank until it was sold to First Bank Stock Corp. in 1932. Assets were transferred to the First State Bank of Cando in 1937. A new facility was built in 1977 and the bank has paying and receiving stations at Rock Lake and Bisbee. Liberty Bank Opens New Mall Facility Liberty National Bank & Trust Co., Dickinson, recently opened a new office at the Prairie Hills Mall. The office will handle all banking x 43 student personnel services from Missoula, Mont., and at a Living ston, Mont., bank. He came to North Dakota State University. Ms. Hegedus began her career Jamestown in 1977. Mr. Omdahl was with the Oregon with the bank in 1959 and has worked in various departments. She Bank in Salem before joining First is a member of the American Bank in 1974 as a commercial loan Institute of Banking and the Quota officer. Club. North Dakota News business except lending. Judy Binstock, who has been with the bank for the last 1V% years, will manage the new office as assistant cashier. The facility will open a two-lane drive-up with television control camera and voice equipment this month. Bismarck Bank Breaks Ground For Facility Groundbreaking ceremonies for the new State Bank of Burleigh County Trust Co., Bismarck, driveup facility were held recently. The facility is located on North 13th St. and will have three lanes for auto banking and a night depository. The building is expected to be completed by early spring. A. O. Barstad Services were held in Harvey for A. O. Barstad, 90, chairman of the First State Bank of Harvey. His banking career had spanned 62 years. Mr. Barstad came to North Dakota from Norway in 1903. His first bank job was with the First National Bank in Roseau, Minn., and he later served at Guthrie, Rugby and Silva. The First State Bank of Silva purchased the assets of the First National Bank of Harvey in 1936 and Mr. Barstad served as president until he was named chairman in 1973. Joins First Trust Co. 3 Promoted at 1st Bank The board of the First Bank of North Dakota, Jamestown, recently announced three staff promotions. Clifford Herrick and George Reece have been named vice presidents and Clarke Omdahl has been promoted to assistant vice president. Mr. Herrick previously served at the First National Bank of Alexan dria, Minn., and was a regional bank examiner for First System Services, Inc. He joined the Jamestown First Bank in 1968. Mr. Reece was formerly employed at the First National Bank of Montana News P. 0. CARUSO President Helena J. T. CADBY Secretary Helena Named at Billings Jerome B. Woods Jr. was recently named to the board of the Rimrock Bank of Billings, according to president Tom Scott. Joins Bank of N. D. Mr. Woods, who has had 15 years Dale B. Em erson has been of banking experience, is currently appointed data processing coordina an executive vice president at tor at the Bank of North Dakota, Security Bank, NA, in Billings. He Bismarck. Prior to joining the bank is a graduate of Colorado College in he was a data coordinator for the Colorado Springs. North Dakota Social Service Board. Sally L. Clague was named operations officer at the Rimrock Changes at 1st Bismarck Bank. She joined the bank when it Robert E. Westbee, president of opened in February, 1977, after 16 the First National Bank & Trust Co. years with the Yellowstone Bank in of Bismarck has named Denis J. Laurel. Trom as personnel officer and promoted Vera Hegedus, formerly New Board Members personnel officer, to assistan t Named at Great Falls operations officer. Mr. Trom joins the bank after James R. Eddington, president of serving the Bismarck School System the Eastside Bank of Montana, since 1968. He is a graduate of Great Falls, recently announced that Valley City State with a BS degree in Edward F. Novis and T. H. (Tom) English and has a MS degree in Thomas have been elected to the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis James Bierdeman, vice president and senior trust officer of the First Trust Company of North Dakota, has announced the addition of Timothy Lervick to the staff of the Bismarck office. His duties will include estate analysis, new business development, probate and trust administration. Mr. Lervick, a native of Crosby, received a BS degree in business economics from North Dakota State University and is a recent graduate of the University of North Dakota School of Law. He has been in the company’s Fargo office since Sep tember. board of directors. Mr. Novis is president of Novco Auto Supply, Great Falls. Novco is a wholesale distributor of automotive, truck and tractor parts and has branches in Missoula and Kalispell. Mr. Thomas has been active in the consulting engineering field since 1956. He was one of the founders of Thomas, Dean and Hoskins and has been president of that firm since 1965. Joins Staff as Auditor Fred I . Root has been elected auditor of Bank of Montana System, according to Charles W. Rubie, chairman and chief executive officer of the multi-bank holding company headquartered in Great Falls. Mr. Root most recently served as an auditor for the Bank of America’s World Headquarters located in San Francisco. He received a BS degree in finance from the University of Montana in 1971. N orthw estern Banker, D ec e m b e r 1978 44 M innesota News LESLIE W. PETERSON T. L. JEFFERS Pres. Exec. V.P. Trimont Minneapolis EFT Debit Cards for Independents A. Ritt, president of Mid way National Bank, St. Paul, Jhas OHN announced the formation of the sing, Minneapolis, has developed a total marketing plan to promote the use of this new service. It was first group of Minnesota indepen initiated August 15 and includes an dently owned commercial banks to extensive television campaign, point offer an EFT debit card service to of sale, outdoor, print and direct their respective customers. mail advertising. The new service is called “Money* The campaign is designed around mate” and includes the network of a St. Bernard dog, “Bernard,” who over 100 Passcard Savings Centers not only stars in the television and the sharing of 24-hour automa commercials but is also pictured on ted teller machines located at certain all Money*mate promotional mater of the participating banks. ials. The theme is “Bernard to the Banking customers are using their rescue with Money*mate.” magnetically encoded Money «mate Giant, 5V2 foot stuffed replicas of card at the Passcard Savings “Bernard” are on display at all Centers in retail locations to make Money *mate banks. A premium deposits, withdrawals, transfer funds promotion using a smaller “Bernard” and verify checks. Money *mate stuffed toy will be launched by the banks participating in the Passcard Money*mate banks. Savings Center network are: Midway National Bank, North Star State Bank, Southwest Fidelity State Bank, Fidelity Bank & Trust Co., Brainerd Banker Retires Zane H. Smith recently retired as Gambles Continental State Bank, Cherokee State Bank, Signal Hills vice president and cashier of the State Bank and the State Bank of F irst National Bank of Brain Anoka. e rd . He has In addition, the Midway National worked for First Bank, North Star State Bank, National for 47 Southwest Fidelity State Bank, of its 97 years in Fidelity Bank & Trust Co. and the operation. State Bank of Anoka offer the M r . S m ith convenience of 24-hour Money*mate started as a mes machines located at their respective senger for the bank offices. All Money *mate bank, later ser cardholders can use these 24-hour ving as collection machines to make withdrawals from clerk, bookkeeper, teller, assistant their checking accounts. cashier and cashier. Three Mankato banks are sched He was a messenger at the bank in uled to begin offering the Money* the early 1930s when “Baby Face” mate service to their customers Nelson and five men held up the old using newly installed 24-hour Mon- First National Bank Building. ey*mate machines starting with the National Bank of Commerce. The American State Bank and the Security State Bank of Mankato will New President start their program during the first Named in Winona quarter of 1979. C. W. Biesanz, chairman of the The Money *mate bank advertising board of Town and Country State agency, LeDuc-Carmichael Adverti Bank, Winona, recently announced N orthw Banker, D ecem ber Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 the appointment of Dennis L. Cleveland as president. An officer of Merchants National Bank of Winona for the past IOV2 years, Mr. Cleveland succeeds G. D. (Jerry) Herman who resigned to accept an appointment as executive vice president of the new Prairie State Bank in Eden Prairie. Mr. Cleveland was formerly vice president and commercial loan officer at Merchants. He is the third president of Town and Country since it was opened in the spring of 1971. He attended the University of Minnesota and North Dakota State University, Fargo. Mr. Cleveland has been past president and director of the Winona Chapter of the American Institute of Banking. Promoted at Dawson The board of the Northwestern State Bank of Dawson recently an nounced the pro motion of Phyllis C h ris tia n son from assistan t cashier to assis tant vice presi dent. Ms. Christian son has been associated with the bank for the last 33 years and P- CHRISTIANSON is supervisor of the bookkeeping and teller departments. Named at Red Wing Gary Underwood has been elected to the position of assistant vice pres ident at the First N o rth w e s te rn National Bank, Red Wing, accor ding to president Norman Samp son. M r. U n d e r wood will be manager of the b a n k ’s i n s t a l ment loan de- G.UNDERWOOD partment. He was previously em ployed with Phoenix Budget Loans in Red Wing and has SV2 years experience in the lending field. In other staff changes, Jerry Sibert, assistant vice president, was named manager of the real estate loan department, and Roger L. Popp was named vice president for loan administration and marketing. 45 "Part o f m y job is to anticipate your needs.” A “Staying ahead of changes is probably one of the most difficult things for a business to do. But it’s especially important in banking. Because banks need to be able to serve community needs quickly. “T h at’s w hy I think it’s important for me to see my correspondent bankers as often as possible. I can bring them the latest information on subjects such as economic trends, investments and new banking techniques. A nd they can bring me up-to-date on what is happening with their communities and customers. T h e exchange of ideas always helps me anticipate their needs. “T h e result: effective banking programs that help my correspondent banks serve their customers better. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lames James Russell, Russell, Correspondent Correspondent Bank Bank Officer, Twin City Metro Area. (6 1 2 ) 291-5581 A nd that’s really the most important part of my job. T h e plus for me is that I can become a good resource for my customers. A nd there’s nothing quite as satisfying as being needed.” Correspondent Bank Division Member F D IC A Full Service Bank W edoourjob. 'feu get the credit N orthw estern Banker, D ecem ber 1978 new officers were elected T HREE recently at the Midland National dent at the bank were Leeber D. Johnson, vice president and trust Cutrone Jr., international banking; officer, to serve for the coming year Bank of Minneapolis. Lynne H. Richard L. Guthart and Douglas C. as Metro director for the Saint Paul Hansen and Richard E. Struthers Jones, trust equity research, and NAB office. are trust officers and Katherine L. Jerald W. Raarup, money market *** Plante is a credit card officer. division. Ms. Hansen, a 1967 graduate of Other promotions include: John the University of Minnesota with an M. Carlotto and Cheryl H. Keindl, international relations degree, joined audit officer, commercial audit Sign-Raising Ceremony Midland’s trust department as a division; Larry R. Hill, tru s t For Battle Creek Office trust administrator in June. She was investment officer, fixed income previously a legal assistant at Gray, research and portfolio management Plant, Mooty, Mooty and Bennett. division; Kathryn W. Hughes, Mr. Struthers, a graduate of personal banking officer, personal Ripon College and the William banking center, and Richard E. Mitchell College of Law, joined the Jenkins, trust tax officer, trust tax First National Bank of Minneapolis division. as a clerk in 1970. He was previously *** employed as a legal assistant for Dorsey, W indhorst, H annaford, John T. Sochko has joined the Whitney and Halladay and as a tax First Minnehaha National Bank as law specialist for the Internal vice president Revenue Service. He joined Midland and comptroller, as an assistant trust adminstrator in according to T. April. H. Bartholomay, Ms. Plante joined the bank as a president. credit card representative in 1976 M r. Sochko and was promoted to credit began his bank A SIGN-RAISING ceremony marked card supervisor in 1978. She was ing career in the beginning of construction for the previously employed at Northwest 1957 at the West First National Bank of St. Paul’s ern National Bank of St. Paul and Broadway Office Battle Creek Office. Sign-raisers are Northwest Bancorporation. (from left) James Widen, manager of of First National J.T. SOCHKO the new office; Will Johnson, *** Bank of Minne architect; Richard Jude, sr. v.p., and apolis. He joined the Edina National Larry McGough, McGough Con struction. The 4,000 square foot J. Scott Hutton has been Bank in 1959 where he was elected building w ill be earth-tone face brick promoted to vice president of retail cashier in 1972. and the facia w ill be dark bronze and branch bank * Sit * alum inum . Solar bronze insulating ing administra glass w ill be used for the windows. tion at the First The Battle Creek facility, to be The White House has announced staffed with nine people, w ill include National Bank of that President Jimmy Carter has four drive-in lanes. Minneapolis. appointed G. Richard Slade, presi He has been dent of the Northwestern National manager of the Bank of Saint Paul, to serve as Saint bank’s personal Paul Metro chairm an for the First Bank System, Inc. has banking center National Alliance of Business. Mr. announced the promotion of Daniel for three years Slade has been actively involved in Samarzja to marketing officer and and has had Saint Paul civic affairs since joining advertising manager in the metro J.S. HUTTON eight years ex Northwestern in 1974. politan marketing department. perience in the instalment banking Subsequent to his appointment, Mr. Samarzja joined the metro and sales finance divisions. Mr. Slade has named a Northwestern m arketing departm ent in 1976 Promoted to assistant vice presi National Bank associate, Russell H. following five years of marketing N orthw estern Banker, D ecem ber 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S 47 Happy Holidays... From the Bankers o f American! Jim Reagan Bob Sipple Bob Jacobson Bill Langford John Young Don Johnson https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chuck Maddux Steve Rykkeli Mike McNeil Tom Mork Mary Kay Meehan C orrespondent Division IH 5th and Minnesota Streets St. Paul, Minnesota 55101 A m erican N atio n al Bank a n d Trust C o m p a n y Member F.D.I.C. N orthw estern Banker, D ecem ber 1978 48 ■ lic c i T h e K c < lc o a ( P e o p le Jro m So rtit Central Life Bob Gordon Bruce Glewwe Credit Insurance Special Agent Credit Insurance Dan Walsh Lynn Seward General Agent Credit Insurance N orthw Banker, D ecem ber Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Dick Nelson Auto Dealerships Larry Walsh General Agent Parker Rinehart Production Credit Association Mike Walsh General Agent 49 ••••••••s e r v in g t h e in s u r a n c e n e e d s ojf b a n k c u s t o m e r s i n % r t h D a k o ta a n d lllo n t a iia N orth Central Life "R edcoat's". Dedicated in surance professionals serving the loan p ro te ctio n needs of banks and their customers in North Dakota and M on tan a . Their jo b is to sh ow you h o w you can e ffectively and p ro fita b ly market credit, group mortgage and " M a jo r B o rro w e r" insurance to yo ur loan customers. They're backed by a team o f h o m e o ffic e pros w h o se c o m b in e d skills p rovide the u ltim a te in aid to a c c o u n t s . . . "R EDC OAT SERVICE". Exclusive w ith N orth Central Life, "REDCOAT SERVICE" is m any things, all designed to make y o u r bank's jo b easier in serving y o u r customers. "REDCO AT SERVICE" is innovative, ta ilo re d -to yo ur-needs insurance products and programs d e signed to fit y o u r bank and y o u r customers. "RED CO AT SERVICE" is sh ou ld ering y o u r in surance a dm in istrative and b o o kk e e p in g chores, and, w h e n necessary, training y o u r staff to do a better jo b o f understa nd in g y o u r custom ers' in surance needs. "RED CO AT SERVICE" is slashing th ro u g h red tape to get you and y o u r customers th e best service h u m a n ly possible. "RED CO ATSERVICE" is im m ediate, no-nonsense a tte n tio n to any q uestion, p ro ble m or service need th a t you m ig ht have. "RED CO AT SERVICE" is a co m p u te riz e d direct b illin g system and a series o f m o n th ly and quarterly reports that keep you u p -to -d a te on credit insur ance p ro d u c tio n , claims and comm issions, help you track yo ur p ro fita b ility and give you a p ro file o f th e business you are getting. W e take care of th e p a p erw ork so that you are free to take care o f y o u r customers. An d, im p o rta n tly, "REDCOAT SERVICE" is the "R edcoat Desk", N orth Central's u niqu e, to ll-free, direct national H O T LINE system th at links banks to o u r h o m e o ffice and makes available three vital benefits: 1. N O -LIM IT CRED ITO R INSURANCE. A p ro gram th at allows you to get im m e diate o ve r-th e -p h o n e approval fo r extended in surance coverages b eyond th e limits for w h ic h you n orm a lly can contract. 2. INSTANT RATE CA LCU LA TIO N S. N orth Central can solve y o u r c o m p lica te d rate problem s in a m o m e n t, via co m p ute r, speeding up th e loan a p p lica tio n process. 3. INSTANT ANSWERS. As promised, this gets you a fast response to any question, p ro b lem or service need you m ig h t have. Your "R e d c o a t" sets th e w h o le th in g up fo r you. A n d c o n tin u a lly w orks to solve any problems th at m ig ht arise as you go along. For m ore in fo rm a tio n on h o w you can p rotect yo ur customers and yo u r loans from the unexpected, call the N orth Central Life M arketin g D e p a rtm e n t at one o f the numbers show n below . W e w o r k hard to earn yo u r business. W isco nsin , N orth Dakota, South Dakota, Iowa, Nebraska - (800) 328-1612 M in ne so ta, (800) 792-1030; All O th e r Areas - (800) 328-9117. North Central Life Insurance Company N O R T H C E N T R A L LIFE B U ILD IN G 275 E A S T F O U R T H S T R E E T ST PAUL M IN N E S O T A 55101 P ro te c tio n a ll w ays https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 50 Minnesota News responsibilites with other financial institutions. He has a bachelors degree in business administration from the University of Wisconsin. *** Robert A. Pitner has been appointed vice president and director of marketing for the First Nation al Bank of Min neapolis. He will be a member of the bank’s policy and p la n n in g committee and report directly to the president, D. H. Ankeny, Jr., He was previousR.A. PITNER ly corporate marketing manager of Continental Illinois National Bank & Trust Co. in Chicago. He joined Continental Illinois, the nation’s seventh largest bank, in 1969, serving as marketing manager for the international banking depart ment where his responsibilities included leading various trade and investment missions to developing countries such as Korea and Taiwan. Mr. Pitner holds a BS degree in business from the University of Kansas and received an MBA degree in finance and marketing from the University of Wisconsin under a Fellowship for International Studies. At First National Bank Mr. Pitner plans to develop a strong corporate marketing thrust with emphasis on enhancing the development and marketing of sophisticated credit and non-credit services. *** West St. Paul State Moves to New Quarters PICTURED above are the new headquarters for the West St. Paul State Bank. RAND opening celebrations in G October officially launched the new West St. Paul State Bank’s new building at 66 E. Thompson. The new facility includes four drive-up tellers, a 24-hour lobby and additional parking. A detached facility is being kept in operation at the bank’s original location at 918 S. Robert St. Groundbreaking for the $600,000 project was held in November, 1977. Enclosing about 6,000 square feet, the bank is designed to be as energy efficient as possible. Clowns, refreshments and enter tainment attracted area residents to view the new facility. A big hit was the appearance of “Westie,” the bank’s cowboy-hatted bear mascot. University of Notre Dame and R. Michael Holt has been elected received a graduate degree from corporate vice president of employe Roosevelt University in Chicago. * * * relations and pay p ro g ra m s for Northwest BanPhilip Gallivan, head of Marquette corporation National Bank’s corporate banking (Banco). d i v i s i o n , an Prior to join nounced the ap ing Banco, he pointment of Jer was director of ry Gates as as co mp e n sa tio n sistant vice pres and employe ben ident in the com mercial loan de efits for the PillsR.M. HOLT bury Co., where partment. Prior to join he had been employed since 1975. Mr. Holt, a Minneapolis native, ing M arquette, was director of employe benefits for Mr. Gates served the American Hospital Supply Corp. as district mana in Evanston, 111., before joining ger for Citicorp Business Credit, Inc. Pillsbury. He is a graduate of the in their Minneapolis office. Previous N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK officers at the grand opening included (from left) “Westie,” the bank’s bear mascot; Rollin Crawford, v.p. & secy.; J. Robert Stassen, pres., and Jack Branch, e.v.p. ly he was an assistant vice president of Aetna Business Credit Inc. *** Northwest Bancorporation (Ban co) directors have approved three new appointments for the bank holding company. Richard H. Klovstad has been named director of the insurance and risk management department. Previ ously he was a group vice president of Banco, Inc., the audit services subsidiary of Banco. Timothy J. Coughlon has been appointed credit officer in the loan administration division. He joins Banco from the First Northwestern National Bank in Billings, Mont., where he was assistan t vice president of commercial loans. 51 i.ÿ '^ A ‘Traditions It is customary at this time o f year to remember the many fine friendships we ve established during the year. A n d so, we at M idland Bank would like to take this time, to extend to all our friends in correspondent banking, our wish fo r a very happy holiday and a truly prosperous new year. Stan Peterson HgMonltie money Mike Higgins Jackie Dunn NATIONAL Ba n k Of Minneapolis Banco An Affiliate of Northwest Bancorporation The Downtown Bank with Two Locations Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S e co n d Avenue S o u th at F o u rth S tree t T h ird Avenue S ou th at S ix th S treet N orthw estern Banker, D ecem ber 1978 52 Minnesota News David A. VenHuizen has been appointed financial systems officer. Previously he was an analyst in management sciences for Banco. Word Processing Group To Sponsor Symposium The Word Processing Association of Minnesota, Inc. will sponsor the “ 1979 Symposium and Exhibition” on word processing and automated office systems May 16-17. The event will be held at the Leamington Hotel in Minneapolis and will include 18 seminars and 49 exhibit booths. For additional information, contact Dorothy C. Sandburg, communications systems officer, First National Bank of Minneapolis, 120 S. Sixth St., Minneapolis, 55480. New President at NBC The board of the National Bank of Commerce in Mankato has announ ced the resignation of Jack Weber as president and director. He has been replaced by Dale Kuper who has been named president and elected a member of the board. Mr. Kuper previously served as senior vice president at Valley National Bank and has had other bank experience in the Twin Cities area. Mr. Weber has resigned to join a family food operation in the Twin Cities area. First Banks Introduce FASTBANK Service THE 17 First Banks of the Twin Cities m etropolitan area introduced the FASTBANK electronic funds transfer service last month. Customers are now able to make deposits, withdrawals and transfers between checking and savings accounts by way of electronic terminals at the courtesy counters of nine supermarkets in the metropolitan area. Transactions are initiated by either a FirstCard or Red Carpet Card. The FASTBANK service was first introduced in 1975 at two supermar kets in Fargo, N.D. Since its introduction, 21 units have been added in seven com m unities in North Dakota and South Dakota. Joins Bank as VP Richard L. “Rich” Johnson has been elected vice president of the Northwestern State Bank, North- field, according to W. C. Brosz, president. He succeeds James A. Sawyer. Mr. Johnson is a graduate of Sioux Falls College with a degree in business administration. He started with the Northwestern National Bank of Sioux Falls in 1967 in internal operations and data process ing. In 1973 he moved to the First National Bank of Wahpeton, N.D., where he had been involved inwall phases of lending. Mr. Sawyer and another North western State Bank employe, Thom as Blaisdell, assistant vice president, recently resigned their positions to purchase a Northfield beverage company. New Directors at Sherburn David E. Anderson, president and chief executive officer of the F armers S tate Bank of Sherburn has announced several changes in the board of directors. Newest director is Phil Theobald of Sherburn. Other new directors are Jon Samuelson and Daniel Lindsay, both of Minneapolis. They were elected to the board when Daniel J. Coughlan and Thomas P. Coughlan, both of Mankato, resigned after selling the controlling interest in the bank to Irwin L. Jacobs, Minneapo lis businessman. Jack Howard, who had been chairman of the board, has also resigned. Ronn Yahnke is presently board chairman. Changes at Lake Crystal The Lake Crystal National Bank has announced three changes in its personnel. Mary Landkamer has been pro moted to consumer loan representa tive. She has been with the bank since 1976, starting as the adminis trative assistant to the president. Vicky Chesney has been appointed executive secretary to the president. She joined the bank in 1976. Marsha Hawker has been appointed as the agricultural and commercial secretary. She joined the bank in 1973. Named Vice President Steven J. Stokke was named vice president in charge of loans and bank ^ operations at the Northern State N orthw estern Banker, D ecem ber 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53 C h ris tm a s aad Happy*rfeW'ifeaíT Ken Wales Bud O mlie Dick P am ell Ray J o h n so n Al High um Bill Hamilton J o h n Franklin Mike B on ch er Linda S ch u ster Walt Fries Frank B rosseau Dan S im kins https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 54 Minnesota News Bank, Thief River Falls, following a recent board meeting. He joined the bank in 1964 and has advanced through all the bank’s departments, including manager of the instalment loan department. Mr. Stokke is a graduate of the Area Vocational Technical School’s ac counting program. Joins Elbow Lake Bank Bradford B . Henry has been added to the staff of the First National Bank of Elbow Lake as an in stalment loan of ficer and insur ance agent, ac cording to presi dent Marvin G. Westrom. Mr. Henry was previously em ployed at the F irst N ational Bank of Shakopee in the instalment loan department. He is a 1975 graduate of Concordia College, Moorhead, with a degree in business administration. Named at Bloomington Gary A. Bourg has been named vice president—technical support for Northwestern National Bank South west, Bloomington. A graduate of Hastings College, Hastings, Neb., he joined Northwest BAI Studies Automated Savings- T o-Checking A two-part survey on the banking industry’s new automatic savingsto-checking accounts has been announced by Ronald G. Burke, president of Bank Administration Institute. An initial benchmark survey will be made in December to analyze the effects from the implementation of the new accounts; the second survey, to be conducted six months later, will compare the changes that have evolved since the startup period. Mr. Burke said BAI’s objectives are to determine the impact of automatic transfer services for those banks offering these new accounts. Some of the areas covered by the mail survey will include: service charges (minimum balances, etc.) and pricing policies, marketing N orthw estern Banker, D ec e m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bancorporation’s corporate office in 1969 as a systems analyst. He was named a corporate systems officer in 1973. Mr. Bourg is a graduate of the Stonier School of Banking at Rutgers University. Promotion Announced Gregory L. Tschida was promoted to assistant cashier at the Farmers and M erchants State Bank, Pierz, recently. Mr. Tschida, a grad uate of St. John’s University, Collegeville, started at the bank in September, 1976, as a man agement-loan of G.L. TSCHIDA ficer trainee. Promoted at Blaine Dean Tollefson, president of First Northtown National Bank, Blaine, has announced the promotion of three employes. Sandra Oliver has been promoted to marketing officer. She has been with the bank since 1970 and served in the personal banking area before joining the marketing department. Ann Ouellette and Bobb Bowersox have been promoted to personal banking officer in the retail banking department. Ms. Ouellette joined plans, operational considerations (computerized processing?) and costs, volume, account growth, customer demographics, projections as to the number of banks offering or planning to offer the service, and estimated potential consequences on profitability. All BAI member bank respondents will also be classified as to asset size and location. ABA Schedules 3 Regional Branch Manager’s Workshops Three regional workshops for branch managers have been schedul ed by the branch administration executive committee of the American Bankers Association. The first meeting will be held December 10-12 at the Hyatt Regency Hotel in Washington, D.C. The remaining two will be in San Francisco from March 4-6, and in Orlando, Fla., from April 22-24. First Northtown in 1974 and has had experience in several areas. Mr. Bowersox joined the bank in 1977 as a personal banking representative. First Southdale Hits $100 Million Mark FIRST Southdale National Bank, Edina, recently noted the achieve ment of $100 m illion in total resources at a luncheon for bank employes. Pictured are Lee Zagars, accounting department, and David A. Orlady, pres. Mr. Orlady singled out Mrs. Zagars as having the longest term of service of any First Southdale employe, having joined the staff in 1957. Using the theme “ Thanks a Hundred M illio n ,” the bank president paid tribute to the co m b in e d e ffo rts o f the 141 employes in helping First Southdale reach its present level. In announcing the new meeting series, Michael J. Gill, workshop chairman and vice president of Bankers Trust Co., New York, noted that the program has been designed *v to meet the needs of both branch managers and branch administrators — who must find ways to effectively train their team. Breakout sessions will be offered ’ in the specialty areas of: customer service, identification of a profitable account, analysis of a market area, competition, and marketing models. Registration fees are $195 for the first branch manager from any one bank, and $165 for each additional registrant. For more information, contact Maryann Johnson, assistant director, Branch A dm inistration Executive Committee, American Bankers Association, 1120 Connecti cut Avenue, N.W., Washington, D.C. 20036. 55 The ins and outs of the agricultural lending market. A correspondent bank that’s in the ag overline market one year and out the next is just the kind of correspondent bank you don’t need. Your agri business customers need credit they can depend on. Continental Bank is committed to the ag market. This year. Last year. Next year. Not because it’s a good crop year, or because loan demand is down in other industries. We’re in it for the same reason w e’re in the correspondent banking business. To build long-term banking relationships. Continental Bank has always provided corre spondents with seasonal loans and agricultural overlines. We’ve even developed a special cash flow kit for our correspondents. With step-by-step, common-sense procedures their farmers can follow to sound financial management. At Continental Bank, credit requests go directly to your account manager. The officer who can say “yes” or “no” on most loans. You get a decision fast. From the person who made it. When you call Hollis Rademacher at (312) 828-6506 and tell him you’re in the market for a farm credit... you can bet on one thing. We’ll be in the market, too. We’ll find away. CONTINENTAL BANK 231 SOUTH LA SALLE STREET, CHICAGO, IL 60693 Continental Illinois National Bank and Trust Company of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 56 Be On-Line with the Experts Now you can put the expense on us. Our in-house Computerized Bank Insurance Programs can eliminate expenses and increase your efficiency. Learn how you can increase your bottom-line by $5,000, $10,000, or $20 , 000 . BOB CARNEY CAROL JOHNSON DICK MORRAN CONTACT Insurance Programmers, Inc. The Tower, Suite 720, Rolling Meadows, IL 60008 • 312/593-3121 N orthw estern Banker, D ec e m b e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 57 Named to Fed Board George M. Ryrie of Alton has been elected to the board of directors of the Federal Reserve Bank of St. Louis and Tom K. Smith Jr., St. Louis, has been re-elected to the board. Mr. Ryrie is president, chief B. F. BACKLUND President Bartonville executive officer and a board W. J. HOCTER Exec. V.P. Chicago member of the First National Bank & Trust Co., Alton. He is also president and a board member of Charitable Foundation Inherits Bank in First Illinois Bancshares Corp., chairman of Midwest Information Park Ridge, Gets Holding Company OK Processors Corp. and chairman of the Airport National Bank in Bethalto. HE application of The Retire acquired legal title to the shares of Mr. Smith, senior vice president of ment Research Foundation, Park (Citizens) Bank on January 14, 1978, the Monsanto Co. in St. Louis, has Ridge, to become a bank holding as a result of the death of Bank’s been a director of the Federal company by retaining Citizens Bank principal shareholder. The shares of Reserve Bank of St. Louis since and Trust Company, Park Ridge, Bank were placed in a revocable 1974. has been approved by the Federal trust for Applicant by this individual Mr. Ryrie and Mr. Smith will Reserve Board. The Foundation during his lifetime and upon his begin their three-year terms on applied for the holding company by death legal title to the shares became January 1. retaining 99 % of the voting shares of vested in Applicant.” The shares had been owned and Bank Sponsors 24-Hour the bank. The Retirement Research Founda placed in the trust by John D. tion, according to the Fed announce MacArthur, long-time chief execu Time and Temperature A new service for residents of the ment, “a tax-exempt charitable tive of Bankers Life and Casualty foundation under S501(c) (3) of the Co., Chicago. With its $367 million Sterling-Rock Falls area has been Internal Revenue Code, is not deposits, Citizens Bank and Trust announced by Don Cousins, presi engaged in any business activities. Company is listed by the Federal dent of the Central National Bank of Rather, Applicant is engaged solely Reserve as Illinois’ 11th largest Sterling. Courtesy of the bank, the correct in the funding of research regarding bank, with approximately 0.5% of the problems of retired workers, total deposits in commercial banks in time and temperature is available any time of day or night by dialing although it has been semi-dormant the state. 626-6900. In the event of a power since its creation in 1950. Applicant failure a battery power supply autom atically takes over until Sterling Bank Names 3 investm ent sem inars. He was regular service is restored. Don E. Cousins, president of the previously with the Affiliate Bank of The automatic equipment was Central National Bank of Sterling, Madison, Wis. installed by Illinois Bell Telephone recently announced the appointment Co. of three new officers. Comptroller Puts Largest Willard C. Brenner has been Gets Trust Powers named assistant real estate loan Madison Park Bank in Peoria Banks in New Division officer. A graduate of McHenry recently was granted approval by the Comptroller of the Currency John County College in Crystal Lake, he state banking department to exercise G. Heimann has announced the received a BS degree from Northern limited trust powers. formation of a multinational banking Illinois University. He was formerly division to centralize the supervision associated with First Federal Sav of the nation’s largest national Joins Suburban Bank ings and Loan of Crystal Lake. banks. Stephen M. Bryan has assumed Randy Hundley, former Chicago The Comptroller said the creation the position of trust administration Cubs catcher, has joined Suburban of the new division was in response officer. He was previously employed Bank of Rolling Meadows as a to “the increasing proliferation and at the First National Bank & Trust business development representa scope of multinational operations by Co. of Centraba. He has a masters tive, announced bank president large banks.” degree in business administration Alvin S. Carlsen. The division will be located in from Eastern Illinois University. Mr. Hundley, a bank customer Washington and directed by the Robert D. Eversm an is an who spent nine of his 13 years in the deputy comptroller for multinational investment and financial planning major leagues catching for the banking, a newly created position. officer. A graduate of Iowa State Chicago Cubs, will represent the Named to that position by Dr. University and the National Trust bank in various community organi Heimann was Billy C. Wood, who School at Northwestern University, zations and assist businesses and has been regional administrator of he has taught American Institute of corporations with their banking national banks in Region 7 (Chicago) Banking courses and presented needs, Mr. Carlsen said. since 1975. Illinois News T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ec e m b e r 1978 58 Illinois News Roselle Bank Opens Schaumburg Facility PICTURED above is the new Schaumburg fa cility of the Roselle State Bank & Trust Co. OSELLE State Bank & Trust Co. recently held the grand R opening of its new Schaumburg Banking Facility in Schaumburg. This was preceeded by an open house for stockholders, area businessmen and representatives from other local financial institutions. Refreshments were served during the event and prize drawings for one $500 bill and five $100 bills were held. The new facility, 1080 S. Roselle Road, is the third location of the Roselle bank. Helene J. Wanat has been appointed manager of the new office. Assistant managers are Janet Bachi and Vernette Gieseke. Vice president Paul F. Boehne, public relations and marketing officer, has also relocated his office to the new facility. Roselle State Bank celebrated its 75th anniversary last year and now has assets exceeding $100 million. dent and chief executive officer of Michigan Avenue National Bank, has announced the following staff promotions: David S. Pifko, assis tant auditor; Eleanor Dank, assis tant secretary, trust department, N orthw Banker, D ecem ber Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 John L. Cooley, president of Merchandise National Bank, recent ly announced that Sherman A. Cone was elected an instalment loan officer at a recent board of directors meeting. Mr. Cone was most recently a new accounts representative at the bank’s Germania Club office on the Near North Side. Since joining the bank in 1967, he has also served as a senior interviewer, assistant supervi sor and accounting supervisor for the instalment loan department. * * * Emory Williams, chairman and chief executive officer of the Sears Bank & Trust Co., recently an nounced the fol lowing prom o tions: Edward F. Berkheimer Jr. and Nancy L. Rodighiero, land trust officer and assistant secretary, trust and Adeline Con ti to assistant division. vice president * * * and Roy Magnuson to operations E.F. BERKHEIMER Benjamin F. Bailar, executive vice officer. president and chief financial officer, * * * United States Gypsum Co., has been elected a director of Sears Bank & Trust Co. Mr. Bailar was previously associ ated with Continental Oil Co. and the American Can Co. He joined the United States Postal Service in 1972 and served as Postmaster General of the United States from 1975 to 1978. Earlier this year he assumed his present position with United States Gypsum Co. * * * L AWRENCE W. Nortrup, presi of m arketing. In addition to directing the marketing and public relations activities of the bank, she serves as a member of the commercial banking group. Prior to joining Lawndale, Mrs. P atterso n was associated with Jackson State Bank & Trust Co. in Maquoketa, la., and upon her move to Chicago, became director of marketing for Drovers National Bank of Chicago. *** George L. Barr, president of The Lawndale Trust and Savings Bank, announced the election of Janet D. Patterson to vice president following a meeting of the board of directors. Mrs. Patterson joined Lawndale Bank in January, 1978, as an assistant vice president and director A.E. CONTI R. MAGNUSON Four young area men have been presented awards for bravery by Gladstone-Norwood Trust and Sav ings Bank. They had participated in an auto and foot chase and ultimate capture of two purse snatchers, who knocked a woman to the sidewalk and stole a large sum of money. 59 rnmm Hill Hammock Vice President Rudy Frank Vice President Hal Sauer Loan Officer Let LaSalle help you maximize the profit potential of your excess funds. We can offer a full range of investment services for your bank and for your customers. Correspondent Service (312)443-2754 Government Investments (312)443-2800 Municipal Bonds (312)443-2700 Dick Brown Assistant Vice President LaSalle ...the bank on the move LaSalle National Bank, LaSalle Bank Building 135 S. LaSalle Street, Chicago, Illin o is 60690 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker. D ecem ber 1978 60 Recipients were Glenn Kolota, Greg Richter, Marv Novak and Larry Gironda. They ran after the attackers and caught one in the bank’s parking lot at Milwaukee and Central Avenues and the other in some nearby bushes. Bank president Kenneth Fox and vice president Vincent Barrett awarded savings bonds to the four youths for their part in the incident. *** Lawrence W. Nortrup, president and chief executive officer of Michigan Avenue National Bank, recently announced the election of Harold C. Huebner Jr. as vice president and trust officer in charge of the bank’s trust division. Mr. Huebner joined Michigan Avenue in September. Previously, he served as a trust officer for the Pioneer Bank & Trust Co. and was associated with the law firm of Giachini, Murphy & Huebner in Maywood. He received his LLB degree from DePaul University College of Law and is a member of the Chicago Bar Association. inmm STAY AT THE S)rive$(ofel THE BEST LOCATION IN TOWN . . . STEPS EAST OF MICHIGAN AVE, Lake your M ic h ig a n an d th e P a rk fro n t business door • distric t at A d ja c e n t and to | M ic hig a n A ve . sho ps • Spacious Ro o m s and S u ite s (som e w ith • b re akfast ice K it c h e n & Bar) C o m p lim e n ta ry • co n tin e n ta l C o m ple te • M eeting and hotel s e rv B a n q u e t fa c il ities u p to 3 0 0 p e rs o n s . DINING AT C S a w O e / V . S r - a o -T ^ A o T W R ITE TO D A Y / F0R b r o / & TA R IFF j / c h u r e D O N A LD 0. C R O N IN , Gen. M gr. 181 EAST LAKE SHORE OR. CHICAGO, ILL. 60611 (312) 7 8 7 -8 5 0 0 N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 William G. Ericsson Funeral services were held last month for William G. Ericsson, 50, president of the M ercantile N a tional Bank of C hicago. H is death was attrib uted to a coro nary. Before joining M e rc a n tile as p re s id e n t, he spent a brief period with WalW.G. ERICSSON ter E. Heller International Corp., Chicago. From 1959 until mid-1976, he was with the American National Bank & Trust Co., Chicago, where he had served subsequently as president. *** The Museum of Contemporary Art recently featured an exhibit which illustrated how the architectural and historical integrity of the Germania Club building has been preserved in the construction of the Merchandise National Bank’s new facility in the Chicago landmark. Women Show Gains in Banking A REVIEW of available data on women in banking by the National Association of Bank Women, Inc. indicates that the number of women finding career challenges in all avenues of banking is on the rise, with 69% of the banking work force currently composed of women. Having more than 20,000 bank executives as members, NABW witnesses that women are advancing in all aspects of banking—commercial lending, trust, personnel, operations, marketing, retail banking and business development. A comparison of three types of industry statistics shows that the largest gains in women’s movement into bank management have taken place in lower and middle management. Senior-level positions still are held by very few women. Latest statistics on women’s employment in banking come from the Department of Labor’s Bureau of Labor Statistics household survey. The sampling reveals that in 1977, 69% of the banking work force was comprised of women. That number, up 1% from 1976, compares to a 40.5% figure for women employed in the entire U.S. work force in 1976. Based on a head count at 2,500 commercial banks, the U.S. Department of the Treasury’s most recent statistics indicate the banking work force was 65% women—or 655,377 of a total of 1,002,269 bank workers —in 1975. The data show that 25% of the 215,114 bank officials and managers are women, representing 8% of all women employed in the banking industry. The majority of women in the banking work force are office and clerical workers. An actual head count of employees at reporting banks, the Treasury’s data are compiled from the EEO-1 forms that banks with more than 50 employees and government funds on deposit are required to file. Although the 2,500 commercial banks that report to the Treasury represent only 17% of the 15,000 banks in the U.S., they account for 79% of the total employment in the banking industry and the lion’s share of the monies on deposit in U.S. banks as well. Statistics from “Shortchanged/Update,” the report from the New York-based Council on Economic Priorities, say that the number of women holding officers’ positions has doubled since CEP’s 1971 report. Although women held 24% of all officials’ and managers’ positions in 1975, they occupied only 13% of all officers’ positions. Women held 6.4% of all officer positions when CEP conducted its 1971 study. In top-level, policy-making positions (senior officers), women represented 1.8% of the total senior management in 1975. The CEP study, a survey of the three largest banks in each of eight major cities, analyzed the employment record for women and minorities at the 24 banks. At the time of the study, the banks employed more than 200,000 people or about 15% of the total banking work force. 61 THERE'S MORE TO WRITING INSURANCE THAN WRITING INSURANCE ... Like testing for air pollution. Or helping a firm with a truck safety program. Or making water flow tests for fire protection. These are just som e o f the services Employers M utual C om panies offers its policyholders. We have our ow n specialists to p e rform them , and o u r ow n environm ental health laboratory located in our H om e O ffice building. Employers M utual Com panies was founded in the concern for the health and safety o f others. It started, in 1911, by w ritin g w o rke r’s com pensation insurance. Today Employers M utual w rites all lines o f insurance, but continues its tradition o f service. We w rite insurance, yes. And do much more. ms Employers Mutual Companies DES M O IN ES IOWA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 62 Nebraska News KARL E. DICKINSON R. E. HARRIS President Exec. Mgr. Lincoln Lincoln Report Executive Council Action of a member the State Department of Banking that would permit stock ownership of savings and loan associations. Association Executive Council meet NBA has drafted legislation provid ing November 9, in North Platte. ing for central filing of non-title The poll asks member banks liens; providing payment to banks whether they support, oppose or for time and expense involved in have a neutral stance on branching, conducting records searches for state multi-bank holding companies and agencies; and increasing the deducti increased authority for detached ble amount requirement on banker’s facilities. The poll lists several blanket bonds from $1,000 to $5,000. variations on each of three major NBA will seek to have that issues. legislation introduced during the The poll was mailed to member session. Other positions approved banks November 10. Responses were included opposition of any legislation to be sent directly to a Lincoln that would place a tax on intangible accounting firm for tabulation by goods, reduce the state’s usury Thanksgiving. limits, or prohibit insurance sales by Results of the poll will be used to banks. shape NBA positions on bank The Council heard a report from structure issues in the upcoming the Nebraska Bankers Political session of the state legislature. Other Executive Council actions Action Committee (BankPAC) out lining contributions and election included: results. In its first year, Treasurer • Approval of a bank robbery Robert E. Harris reported BankPAC reward fund, called Project HELP raised nearly $20,000. BankPAC (Help Enforce Loss Prevention). The contributed a total of almost $19,000 program will provide for rewards up to 32 state and federal campaigns, to $1,000 per informant for informa and candidates receiving BankPAC tion leading to the arrest and support won 27 of those races. The Council also endorsed two conviction of persons suspected of bank robberies, kidnap/extortion, or candidates for ABA elective offices: other crimes against Nebraska banks Lee Gunderson for president-elect and bankers. Rewards will be and Virgil Solso for treasurer. authorized by the Administrative Committee of the NBA Executive Council after consultation with law Sell Bank Interests enforcement agencies. Melvin E. Johnson, president of • Approval of a $220,680 budget for the 1979 NBA Statew ide the First State Bank, Oakdale, and Advertising Program. The new Ray E. Stanley, recently announced budget, which was raised beyond the the sale of their interests in the bank Marketing Committee’s recommen to Roland E. Reynolds and Ray L. dation to permit additional television Weilage and Associates. Mr. Johnson will continue as exposure, represents an increase of about $42,000 from the 1978 budget. president (5f the bank and Mr. • Approval of NBA positions on a Reynolds will be board chairman. number of state legislative issues. O ther officers include Michael The Council voted to oppose in its Sonnenfelt, vice president and secur entirety legislation being drafted by ity officer, and Vicki Ofe, cashier. Fship poll on bank structure highlighted the Nebraska Bankers in a l iz a t io n N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Two Directors Named Duane Acklie, president of the Bank of Norfolk, has announced the appointment of Virgil Froehlich and Tom Weihe to the board of directors. Mr. Forehlich is president and general manager of Affiliated Foods, formerly known as General Whole sale, Norfolk. Mr. Weihe is president of the Norfolk Rendering Works and general manager of the agri-products division of Beatrice Foods. Red Cloud Bank is 85 Peoples-Webster County Bank, Red Cloud, recently observed its 85th anniversary with an open house. The event was hosted by bank president John W. Sherwood and other bank personnel. New Sign at Trenton The State Bank of Trenton recently installed a new electronic time and temperature sign to replace the former dial type sign. The new sign includes the formal name of the bank. Bank VP, Director Reign in Columbus Reigning over “Discover Colum bus Days” this year were King Ferdinand IV, Noyes C. Rogers, and Queen Isabella IV, Minnie Asche. The two were crowned at the annual Columbus celebration. Miss Asche is a senior vice president at the First National Bank & Trust Co., Columbus. She was one of the first woman bank officers in Nebraska and is a charter member of the Nebraska chapter of the National Association of Bank Women. Mr. Rogers, a director of the First National Bank & Trust Co., founded the Rogers Motor Co., a Ford, Lincoln and Mercury agency, with which he is still associated. He also operates a tracto r and farm machinery equipment company in Columbus. Laurel Bank Holds 50th Year Party The Security National Bank of Laurel recently held a 50th anniver sary picnic for area residents at the Laurel City Park. Richard E. Adkins is the bank’s president. 63 j > W e can put EFT to work for you. Now. Our Instant Cash services package includes the card and a whole lot more. : > U.S. N ational can make it easy for you to become a part of today's grow ing electronic funds transfer (EFT) environm ent w ith a complete Instant Cash services package. The package includes the plastic card, the necessary equipm ent, the processing system, technical support an d back-up, even a ready-to-go m arketing program . A nd, w e're ready to p u t all . . . or part of it . . . to w ork for you now. To learn how you can make the m ost of our Instant C ash services . . . to make your account relationships more valuable, to m aintain your ban k 's identity as a leader in your m arket and to com pete m ore effectively; call a U.S. N ational C orrespondent Banker today at 402/536-2072. W e're ready to go to w ork for you now. USN a t io n a l Ba n k Of Omaha M em b er FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, D ecem ber 1978 64 activity and credit analyst training program. The revised organizational struc ture will allow Omaha National to be more responsive to the needs of its commercial customers and thus provide improved service, president Thomas H. Allen said. Mr. Thrasher joined the bank in 1970 as an administrative analyst in the controllers departm ent. He moved to the metropolitan banking department in 1972 and was named a commercial loan officer that year. He later served as a team leader and section head before being named metropolitan banking manager in p p r o v a l was given recently m anager of Omaha N ational’s 1976. Mr. Thrasher, who has an by the Federal Reserve Board on metropolitan banking department. the application of Loomis Company, He will be succeeded in that undergraduate degree in economics Omaha, to become a bank holding position by Dennis O’Neal, who from the University of Nebraskacompany by acquiring First State moves up from manager of the Lincoln and masters degree from Bank, Loomis, which has deposits of bank’s loan quality and credit University of Southern California, was prom oted to second vice $9.4 million. John Lauritzen, presi training department. president in 1973 and vice president dent of the bank, also is associated the next year. with seven other banks and a one-bank holding company. Mr. Mr. O’Neal, also a vice president, Lauritzen is best-known in the came to Omaha National last midwest as chairman of the First December from the American Na National Bank of Omaha. The new tional Bank in Chicago, where he holding company represents a was a senior vice president with restructuring of existing ownership major responsibility for commercial of the Loomis bank. lending and business development. He holds an undergraduate degree in *** accounting from the University of G.K. THRASHER D. O’NEAL Dayton and a masters degree in Gary Thrasher has been promoted In his new assignment, Mr. finance and economics from Miami to manager of a newly-organized Thrasher will serve as chairman of University of Ohio. resource and liability management the bank’s resource management *** department at the Omaha National committee, as well as head its credit Bank. Mr. Thrasher formerly was and loan review functions, collections Ray F. Slizewski, 66, consultant for Northwestern National Bank, died recently of a Two reasons massive heart attack . He is our service survived by his is fast and wife Josephine, a son, Ray F. Jr. dependable of Omaha, four daughters and 13 WES BOWEN grandchildren. TOM GROVE Mr. Slizewski, an active civic leader, was a for R.F. SLIZEWSKI mer Omaha city councilman, long time South Omaha business leader and transit board member. He began work in 1928 as a mail Working with this Big Nebraskaland boy for the old Stock Yards National Bank. He later worked for the South Omaha Savings Bank which through National Bank mergers became the Northwestern 24th & 0 • 402/731-4900 N ational Bank. He retired in Omaha, Nebr. 68107 October, 1976, as a vice president. Member FDIC Mr. Slizewski was a public member of the Omaha Transit Co. Omaha News A PACKERS N orthw estern Banker, D ecem ber https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 65 Our correspondent banking pros would love to go 0 on 0 with you gardless of prevailing financial conditions. This simple principle, one-on-one service, has enabled First National's Correspon First National's Correspondent Banking dent Banking Division to become the fastest Professionals are dedicated to meeting growing in the area. the individual needs of your bank and your customers, and there's only one We earned our reputation, and intend way to do that. Come on . .. We can't to keep it, by outworking the competition, wait to go on ® with you. and by providing unrivaled service re first national m r W ll^ .O T o m a n a ln Nebraska call us toll free at 800-642-9907. FromstatesadjacenttoNebraskacallustollfreeat800-228-9533 Member, FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 66 Nebraska News board for 10 years and in 1972 was named chairman of the Metro Area T ransit Board, overseeing the transition of the company from private to public. *** Jeff Moran has joined the Omaha investment banking firm of Chiles, Heider & Co., Inc. as a repre sentative in the marketing of mu nicipal and gov ernment securi ties. He was for merly a market ing officer in the c o rre sp o n d e n t J. M O R A N banking depart ment of the First National Bank of Omaha. A native of Huron, S.D., Mr. Moran attended the University of Nebraska-Lincoln. *** The executive committee of the First National Bank of Omaha has announced the appointment of Thomas N. Hawkinson as an assistan t tru s t officer. Mr. Hawkinson is a graduate of Creighton Uni versity School of Law. Prior to joining First Na T .N . H A W K IN S O N tional, he served as assistant staff judge advocate in the U.S. Air Force for four years. *** John A. Hoffman has been elected loan services officer at the United States National Bank of Omaha, chairman Donald J. Murphy has announced. Mr. Hoffman joined the bank in 1969 and held data processing and systems pos itions. He be came custom er J A- H O F F M A N service manager in 1977 and served that position until May when he assumed duties as loan accounting m anager in the loan services department. Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Instalment Credit Program Announced HE Nebraska Bankers Associa T tion will conduct its annual In stalment Credit Conference Jan uary 18-19 at the R am ada In n , Grand Island. Max Brodersen, assistan t cash ier, First Nation al Bank, Mc Cook, is chair man of the NBA BRODERSEN Committee on Instalment Credit and will preside at the meeting. Other committee members are: John B oughtin, assistan t vice president, Crete State Bank; Roger Christensen, assistant vice presi dent, Sioux National Bank, Harri son; Robert Everett, vice president, First National Bank, Bellevue; Pat Hughes, loan officer, Farmers State Bank, Lexington; John Lofgren, senior vice president, Citibank, Lincoln; Dale Marples, senior vice president, Omaha S tate Bank, Omaha, and Dennis Meek, vice president, Northwestern National Bank, Norfolk. The tentative program follows: Thursday, January 18 P.M. 1:00 Registration 2:00 First General Session—Pre siding, Max Brodersen, chair man. “Overview of Instalment Len ding’’—ABA speaker. 3:15 “Compliance with Consumer Lending Regulations —Panel. Bill Keller, FDIC, Omaha; Dave Buntain, attorney, Lin coln, and Tom Fischer, coun sel, First National Lincoln. Evening open. A.M. Friday, January 19 9:00 Second General S e s s io n Chairman Brodersen. Speaker to be announced. 10:00 Coffee break. 10:15 “ NBA Compliance H and book’’—Bill B randt, NBA general counsel. 10:45 “Community Reinvestment Act, Credit Denial, Marketing Requirements’’—Dennis Deischer, Office of Regional Comp troller, Kansas City. Noon Luncheon—Speaker: Red Mil ler, head coach, Denver Broncos football team. P.M. 1:45 Two brief skits illustrating Reg Z. 2:15 W orkshop sessions. Each registrant to bring own bank’s lending forms. Discussion—problems, sug gestions. 3:30 Adjournment. New Cashier Named Richard M. Fritz, president of the First National Bank & Trust Co. of Kearney, recently announced the election of Roger E. Hake as cashier. Mr. Hake joined the bank in 1974 and graduated from Kearney State College in 1976. DON’T FORGET US AT U.S. CHECKBOOK CO. for ALL your Bank Supplies We have Plenty of “ TIME” for you! 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Note the income for eight pricing methods at the bottom. total ACCOUNTS total N O*achecks total A TT CHECKS totai nuh debits total aht debits total N OHcredits total amt credits AvGNiJHCHECKS AVC, A11 CHECKS AVC, NiJHDEBITS avGaht itebits AVGNijh credits AVC, AHT credits AVC, MINIMUMBAL AVGAVERAGF BAL AVC, AVGAVAIL BAL T RM ET TH OD 1 TO OT TA AL LE FU üP m L hO l) 2 TOTAL FOR METHOD3 total ejr method it TOTAL EUR M ETHODS total EJR M ETHOD6 TOTAI for mETHOD 7 TOTAL EÜR METH00 8 3, 3S0 68,BBS 16,101,023,SO 71,58? 16,333,9(>S.Q2 10,038 16,030,886.36 ?0 ?33,UO ?t 228,18 1,597,912 708,01 1,505,08 1,261,69 3,503.00 6,179,10 9, a31, Ao 10,622,00 a, 930, "50 13,313.20 9,514.00 T,158.20 National Bank of Commerce The Bank with the Plus Member FDIC NBC C e n te r / 1 3 th & O S tre e ts / L in co ln , N e b ra s k a 6 8 5 0 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. December 1978 The board of directors of Citizens State Bank has announced the appointment of Dale E. Cushing as vice president. Mr. Cushing has had 28 years experience in the finance, banking and industrial loan field and is a licensed real estate broker. The board also announced the promotions of Douglas E. Haave and Michael J. Gardner to the position of assistant cashier. *** J. J. Masonbrink, president of Citibank & Trust Company, recently OUGLAS G. Alford has been holding company which owns Na announced the election of two new elected president of Mutual Sav tional Bank of Commerce, NBC officers. ings Co. of Lin Leasing Co., NBC Center and a third Allan J. Zach was named a loan coln. He moves loan and investment firm—Nebraska officer and compliance officer. Mr. to that position Savings of Scottsbluff. Zach has been with Citibank since from his post as James Stuart, Jr., president of 1976. He graduated from the senior vice presi Commerce Group, said “in January University of Nebraska in 1977 with dent and head of we will be changing the names of our a degree in business administration. th e m o rtg a g e industrials to Commerce Savings.” Jackie Willhoft was named opera loan division at Mr. Alford started with National tions officer. She has been managing National Bank of Bank of Commerce in 1962, has the bookkeeping department at Commerce. He headed the mortgage loan division Citibank. Ms. Willhoft, who joined su cceed s Dan since 1964, and recently became one the bank staff in 1974, graduated Van B u sk irk , D G- ALFORD of the only two Nebraskans who from the University of Nebraska in who has been named acting have earned the professional design 1976 with a major in education. president of Mutual Savings Co. of ation of Certified Mortgage Banker * * * Omaha. Mr. Van Buskirk will handle from the Mortgage Bankers Associa all chief executive responsibilities at tion. Mr. Van Buskirk had headed Walt Yetter has resigned as a the Omaha industrial loan and Mutual Savings of Lincoln since marketing officer at National Bank investment company while Gary November, 1976. Before joining the of Commerce to join Nebraska Neon Groves, the president there, is company, he had been with National and Plastic Co. of Lincoln as an recovering from an illness. Bank of Commerce since 1947 in account executive. His appointment The two Mutual Savings firms are installment and commercial lending. was announced last month by Bob separate loan and investment corpor He had served as vice president since Norris, president of Nebraska Neon. ations, each owned by Commerce 1966. Mr. Yetter will be responsible for Group, Inc. of Lincoln, a one bank * * * working with accounts in eastern Nebraska. Before joining National Bank of Commerce, Mr. Yetter was associ ated with Lincoln radio and Let Me H elp Y ou television stations. D W ith Y our C redit In su ra n ce Telephone-Quick Service on our WATS Line in Nebraska. Dial your Access Code, then 800-742-7335. • Group • Individual Life • Accident & Sickness /life e Where BENEFIT is more than a middle name L in co ln , N e b ra s k a 68508 Northwestern Banker. December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * * Work has begun on the rejuvena tion of a former Lincoln service station into a drive-in teller office for Lincoln Bank East. A $152,000 building permit was issued to James Stuart Jr., president of Commerce Group Lincoln East, Inc., a holding company which owns the bank. Mr. Stuart will own the building. Applications by both Lincoln Bank East and Mutual Savings Co., an industrial bank, on the site were approved last year by the State Banking and Finance Department. The Federal Reserve has not yet approved the location of a Mutual Savings branch on the site. 69 Specialists in structuring solutions to correspondent problem s... CHUCK LEFFLER ■ ■ M ill! FIRST NATIONAL LINCOLN P.O. Box 81008, Lincoln, NE 68501 Phone: (402) 471-1231 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 70 VP Named Leigh Director Thomas J. Bradley, president of the Bank of Leigh, recently announced the appointm ent of Charles Mullenhoff to the board of directors. Mr. Mullenhoff joined the bank in 1973 and was elected cashier in 1975. In 1977 he was promoted to vice president. He has been active in Leigh civic clubs and is on the Leigh Board of Education. Prior to joining the bank, Mr. Mullenhoff farmed and owned a feed store. Named at Grand island Galen Stehlik has been named trust officer and manager of the trust department at Overland National Bank in Grand Island. He is a graduate of the University of Nebraska College of Law and earned an undergraduate degree at the University of Nebraska-Lincoln. Mr. Stehlik was formerly in private law practice in Wilbur and Crete where he concentrated on real estate, probate and estate planning. First of Columbus Hits Banking Milestone HE First National Bank & T Trust Co. of Columbus recently reached a banking milestone when its assets totalled more than $100 million. According to William H. Riley, director of the Nebraska Department of Banking and Finance, only eight banks in the state have reached that level. Two of those banks are in Lincoln and three are in Omaha. Among the out-state banks, only the First National Bank & Trust Co. of Grand Island and the First National Bank & Trust Co. of Hastings have reached the $100 Mason City Lists Change John A. Turner officially retired as president of the Mason State Bank, Mason City, recently. He had taken over the bank in 1965 after the death of his brother and sold Mason State Bank in July to Michael Sullivan. Mr. Turner continued to assist the new owner until his retirement. Serving the Midwest... FIRST MID AMERICA INC. Municipal Bonds Fiscal Agents Corporate Bonds Listed and Unlisted Securities Government Agency Bonds Investment Bankina Municipal Bond Department 100 Continental Building 19th & Douglas Omaha, Nebraska 68102 Call collect 402-444-1900 Firsr M id Am erica million mark. In the 72 years since the bank was founded, First National has grown from $29,018 to the current level of total assets. Founded July 2, 1906, the bank was originally named the German National Bank. The name was changed to Central National Bank in 1918. In 1930 the Central National Bank bought out the original F irst National Bank. In 1961 the bank was officially named the First National Bank & Trust Co. George Prochaska is the president. New Location Planned For Clay Center Bank The Commercial State Bank, Clay Center, will have a new home in 1979, according to a recent announce ment by vice presidents Lesley Rothrock and Derwin Redline. Construction was scheduled to begin on the new facility located at the site of the old Clay County Sun building at the corner of Fairfield Street and Brown Avenue. The one story building will feature a brick exterior with 3,400 square feet of space, which will nearly triple the area of the present building. Completion is scheduled for May to coincide with the Clay Center Centennial celebration. Holding Company Formed Quail County Investment Corp., Pawnee City, has received consent to become a bank holding company through acquisition of the Pawnee County Bank. George D. Sedlacek George D. Sedlacek, 70, director and retired executive vice president of the Spencer State Bank, died in September. He had been with the bank since 1949. M em b er N ew York Stock Exchange, Inc. and oth er Principal Stock and C om m odity Exchanges CORPORATE AND MUNICIPAL BONDS • GOVERNMENT AGENCIES STOCKS • COMMODITIES • OPTIONS • INVESTMENT BANKING Omaha • Lincoln • Columbus • Grand Island • Hastings • Atlantic • Cedar Rapids • Des Moines • Fort Dodge • Kansas City • Chicago • Wichita Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Beatrice Banker Named William W. Cook Jr., president of the Beatrice National Bank & Trust Co., was recently re-elected vice president of the Nebraska Associa tion of Commerce and Industry at the NACI’s 66th annual meeting. 71 Introducing — Gary Stevenson Vice President Doug Scjwrffdt Correspondent Banking Officer Doug Schmidt He’s the new Correspondent Banking Officer at First National Bank in Sioux City. Doug joins Gary Stevenson on an experienced, professional team which under- stands how to tailor our services to your bank. Call them . They’ll be glad to explain the full range of correspondent services available from First National. First National Bank m 712-277-1500 Sioux City, Iowa 51101 • A BANKS OF IOWA BANK Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 72 Named Executive VP P. J. Quealy, chairman of the First Wyoming Bank, N.A.-Kemmerer, recently announced that F . D . (D o n ) Steadm an has been elected ex E. J. HAINES Pres. Laramie ecutive vice pres M. C. MUNDELL Secy. Laramie ident and that he will subsequent becom e a Bank Has new Major Owner, Executive VP ly member of the board. ANDER attorney John VidakoMr. Bourn will continue as Mr. Steadman F °' STEADMAN vich and several associates have president and Alan Pickering will was formerly the chief executive purchased the controlling interest in serve in the newly-created position of officer of a $22 million bank in the Jeffrey City State Bank. executive vice president. Mr. Picker Mr. Vidakovich announced the ing is a Florida native and a Millheim, Pa., since 1971. He current policies of the bank would be graduate of Stetson University previously served as a bank continued and the bank will make there. He has had extensive examiner for the Comptroller of the every effort to offer improved and experience in the fields of finance and Currency and has a BS degree in business administration from the expanded services. marketing feasibility. University of Wyoming. The new board of directors includes Mr. Pickering was formerly Mr. Vidakovich, B. T. McManus, associated with two member banks Newcastle Bank Lists Robert Hayes and Keith Bourn of Southeast Banking Corp., a Officer Promotions (bank president), Lander; Paul Florida holding company. Donald J. Jording, president of Blair, Cliff Bloomenrader and Tom The Jeffrey City Bank was Graham, Jeffrey City, and Lyle originally chartered in 1976 with Mr. the First State Bank of Newcastle, recently announced the following Bentzen, Sheridan. Bourn as president. promotions made by the board of directors: Donn J. Ross from vice president Change at Laramie 1st at the new bank’s location. and cashier to senior vice president; The two-level building will have Dale Z. Newlin from assistant E. J. Haines, president of the First National Bank of Laramie, approximately 8,400 square feet of cashier to vice president; Lois recently announced the retirement of space. Federal Reserve Board Johnson from assistant cashier to Frank H. Miller as vice president approval is pending. Completion is cashier; Bruce Brimmer from assis expected in the spring of 1979. and trust officer. tant cashier to assistant cashier and He will be replaced by Donald L. agricultural loan officer, and Ralph Preston, longtime Laramie resident Joins Laramie Bank Lyons to insurance and marketing and banker. officer. Thomas J. M angan recently Mr. Miller began his banking career in Evanston and in 1939 joined the staff of the First National Bank President Leaves Emil A. Zebre, chairman of the joined the Albany National Bank, Bank, Laramie. Fossil Butte National Bank, KemLaramie. In 1949, with the merger of He will serve in merer, recently announced the the First National Bank and the the instalm ent resignation of bank president Wil Albany National Bank, Mr. Miller loan department dealing primarily liam J. Kvenild. was named to his present position. Mr. Kvenild has accepted a Mr. Preston began his banking in personal loans position where he was previously career in 1961 and has served as vice and c o n su m er employed, and will return to the president and trust officer with the contracts. Mr. M angan American National Bank of River Bank of Laramie. He will head the ton. bank’s trust department and serve was formerly a family banking as trust officer. T .J . M A N G A N Jackson F. King representative at the Colorado National Bank in The funeral for Jackson F. King, Denver. 73, a longtime Casper banker, was Construction Begun held recently. He was a retired board On East Casper Bank chairman of the First National Bank Construction has begun on the of Casper. new Wyoming National Bank of Named at Cheyenne Mr. King joined the bank as East Casper located at the corner of Deeanna Ellsw orth has been manager of the bond department in Thelma Drive and East Second named an a ssista n t operations 1946. He was named president in Street. Chairman of the Wyoming officer at the First Wyoming Bank, 1956 and served in that position until National Corporation, Fred Good- downtown Cheyenne. She has been he became chairman and chief stein, turned the first shovel of dirt with the bank since 1973. executive officer. Wyoming News L Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 73 Colorado News J. ROBERT YOUNG G. L. SCARBORO Pres. Exec. Mgr. Basalt Denver N. Berne Hart Will Succeed Neil Roberts As United Banks of Colorado Chairman PLANNED change in top A management of United Banks of Colorado, Inc. will take place March 1, 1979, when N. Berne Hart will succeed Neil F. Roberts as chairman and chief executive officer. Mr. Roberts plans to retire at that time after a 41-year career in Denver banking. N .B . H A R T N .F . R O B E R T S Mr. Hart, 48, who has been president of United Banks since January 1, 1977, said “we are not planning any sharp changes. We have a fine top management group and I ’d say that United Banks is well positioned for the future.’’ Both Mr. Roberts and Mr. Hart have come up through the ranks with United Banks. Mr. Roberts, who is now 64, is capping a career that has spanned four decades in Colorado banking. After receiving his BA degree from Dartmouth College and an MBA from Harvard University he joined U. S. National Bank, predecessor to United Bank of Denver, in 1937, and worked his way up from there to the presidency of the bank, then the holding company. Mr. Hart has played a key role in the growth of both United Bank of Denver and United Banks. He has a degree in business administration and money and banking from Colorado College, and is a graduate of the Colorado School of Banking at the University of Colorado, Boulder. After joining United Bank of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Denver in 1954 as an executive trainee, Mr. H art headed the operations division and the personal banking division. In 1969 he was elected senior vice president and trust officer in charge of the trust banking division. He moved to the parent company on January 1, 1974, as a vice president, was elected executive vice president April 22, 1975, and moved up to the presidency January 1, 1977. Mr. Hart also serves as chairman of United Banks Service Company, is a director of UBC and a member of its executive committee, and is a director of United Bank of Denver and United Mortgage Company. Like Mr. Roberts, Mr. Hart also is a past president of the Colorado Bankers Association. He has also served on the ABA Governing Council and as ABA vice president for Colorado. United Banks has assets of more than $1.9 billion, operates 19 banks, two insurance companies and mort gage banking and data processing companies. Bank Board Will Look at Loan Production Offices Harry Bloom, Colorado banking commissioner, revealed last month that the Colorado banking board has tentatively set the dates of January 11 and 12 to hear testimony from both sides regarding loan production offices and to consider possible rules governing their operation. Mr. Bloom said this would cover loan production offices for out of state banks as well as Colorado banks. Currently, the state has no definition or law for such an office, since there is no mention of them in the statutes. Although no formal complaints have been filed, independent bankers apparently take a dim view of the loan production offices, and consider them to be branches. Colorado law prohibits branch banking, including a ban on manned autom ated terminals. United Bank of Denver has two loan production offices. Littleton National Bank has one such office. United Bank of Greeley has plans to open one, and other banks have made inquiry to the banking commissioner’s office about opening one. Named at Grand Junction The board of directors of the United States Bank of Grand Junction has announced the addition and election of two new bank officers. Brian R. Brannon was named vice president and trust officer. He received his undergraduate and JD degrees from the University of Iowa and previously served as the head of the First National Bank of Dubuque trust department. B .R . B R A N N O N D .W . G E E D E S David W. Geedes was named vice president with responsibility for real estate lending. He received a BA degree from Taylor University and an MS degree in finance from Northern Illinois University. He was formerly a vice president with the First State Bank & Trust Co. of Hanover Park, 111. New Board Member at First of Denver Theodore D. Brown, president and chairman of the First National Bank of Denver, recently announced the election of Adele Phelan to the board of directors. Mrs. Phelan is president of Denver’s Loretto Heights College. She completed her undergraduate work at Webster College, St. Louis, Mo., and has MA degrees in English and educational psychology. She joined the Loretto Heights faculty in 1967 as an English instructor. Northwestern Banker, December 1978 74 Let us take a moment from the holiday festivi ties to send you our best wishes for a happy holiday season and a prosperous 1979. If you plan to be in Des Moines — for some Christmas shopping or any other reason — be sure to stop in and say hello. We'll be pleased to see you. k Come Crow ¡¡¡¡¡¡¡¡:¡¡¡¡ W ith us ■>•!¡<<¡:>;>.¡j |¡iiiiliiijìiill ¡¡¡¡!¡ii¡:$ Im¡¡!!Íí!¡Í!í!!¡ uiud lim i Bankers Trust D e s M o in e s ’ la rg e s t lo c a lly o w n e d , in d e p e n d e n t b an k Seventh and Locust/Des, Moines, Iowa 50304/Member, FDIC Correspondent Banking, Second Floor, Ruan Center Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa News H. RAND PETERSEN NEIL MILNER President Exec. V.P. Harlan Des Moines ITS Adds 19 Terminals The Iowa Transfer System has increased the number of shared terminals in the state to 112 with the recent addition of 19 on-premise terminals which had previously operated in a non-shared environ ment. There are now 58 participa ting banks sharing these 112 terminals in 28 Iowa communities. The 19 new shared terminals expand or introduce Convenient Banking in 10 cities. Dale Dooley, ITS executive director, also reports that according to present plans there will be off-premise terminals operating by year-end in Ames, Knoxville and Ottumwa, bringing the list of cities with terminals to 31. Additionally, there are plans to expand the number of terminals in Waterloo by year-end. Dorothy May McCarty Services for Dorothy May McCar ty, 64, were held in Williamsburg. She was employed by Farmers Trust & Savings Bank, Williamsburg, from 1956 until 1977 and served as assistant vice president of the bank from 1974 until her retirement. Promotion Announced Peoples Trust & Savings Bank, Indianola, recently announced that T. J. Richards has assumed the duties of consumer loan officer. He has been assistant cashier and security officer with the bank since last January. Mr. Richards has worked for the bank for 5 Vi* years in both the Indianola and Martensdale offices. He is a 1977 graduate of the Des Moines Area Community College with an associate degree in banking. Operations Officer Named John Kiger has been appointed operations officer at the Clear Lake https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank and Trust Co., according to bank president Ray V. Hewitt. Mr. Kiger was formerly a teller and vault manager at the First National Bank, Iowa City, and later served as a regional auditor for Hawkeye Bancorporation. He served in the Navy and majored in finance at the University of Iowa. Jay Tomson Named to BAI Bank Director Committee O. Jay Tomson, president of Citizens National Bank, Charles City, has been appointed to the Bank A dm inistration In s titu te ’s Bank Director Advisory Commission. This commission is available to the BAI center for educational programs for advice and consultation in regard to bank directors. Mr. Tomson also is current president of the Iowa Independent Bankers. Cedar Rapids VP Purchases Business Peter Bailey recently resigned from Merchants National Bank after 20 years of service with the bank, including 10 years in the correspon dent bank division and the last 10 as vice president —investments. He has purchased the Morris Sanford & Co. store here. It was founded in 1851 as a book and stationery store by the man who printed the first Code of Iowa after the state entered the Union in 1846. Today, its emphasis is on books, cameras, office supplies and social stationery. The store was the first dealer outlet in Iowa for Eastman Kodak products when the film and camera firm was organized, and continues that relationship today. Elected at Davenport Joseph A. Grubisich Jr., a former assistant Iowa atttorney general, has been elected assistant vice 75 president and trust officer at First Trust and Savings Bank, Davenport, bank officials have announced. Mr. Grubisich had been the district prosecutor for the 7th Judicial District. He is a 1972 graduate of the University of Iowa College of Law and was associated with law firms in Davenport and LeMars before joining the state prosecutor’s office. Officials also announced that Gerald L. Wallis, vice president and senior trust officer at the bank, has been admitted to the Iowa bar. He came to the bank several months ago from a similar position at a bank in Texas. Applications Available For NABW Scholarships Applications are now being taken for the Iowa Group scholarships of the National Association of Bank Women (NABW). Deadline for submitting an application is March 1, 1979. The Group will be awarding three scholarships this year. Two recipi ents may attend either the School of Banking at the University of Iowa in June, or the Instalment Lending School at Drake University in August. One scholarship will be granted to an NABW member for these schools and the second award, the Helen Rhinehart Scholarship, will be awarded to a non-NABW member. The third scholarship, the Betty L. Steele Scholarship, is granted in honor of Iow a’s p ast NABW national president. A grant of $500 will be made for the purpose of enrolling an NABW member recipi ent in the Management Series Seminar and for use in individual study modules under this program. For application blanks and further inform ation, contact the Iowa Scholarship Chairman, Bonnie R. Britton, vice president and personnel officer, First National Bank in Sioux City, Sioux City, Iowa, 51102. Elkader H. C. Approved Approval has been given by the Federal Reserve Board to Keystone Bancshares, Inc., Monona, to become a bank holding company through acquisition of the Peoples State Bank in Elkader. Northwestern Banker, December 1978 76 Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 How. much did your bank /lo s e . today? If you’re still spending your time super vising day-to-day banking services, you’re losing money for your bank. You should be doing things that mean new business, better ways to in vest. That means leaving the day-to-day to people prepared to handle it efficiently and economically. Banks of Iowa Computer Services (BICS) has made it possible for banks of all sizes to take advantage of the most modem banking tools without the ex pensive overhead costs of other sys tems. BICS is more efficient and saves you money for a simple reason: adaptability. Because there is no one right answer for streamlining each bank, BICS tailors its systems to your particular needs and problems. Equally important, BICS offers the best support team available. Don’t be misled; com puters aren’t the total answer. And BICS gives you the most effec tive support team going — proved by the constant enhancement of existing systems — proved by the introduction of key industry innovations. And as for services — BICS offers you the single largest group of services you’ll find anywhere. Electronic Funds Transfer System Central Information System Proof of Deposit Savings Accounting Loan Accounting Personal Trust Accounting^ Bond Accounting Demand Deposit Accounting Certificates of Deposit Accounting General Ledger Accounting The largest group of services avail able. A banking system tailored to your specific needs. The best support team going. BICS. If you’re still handling the day-to-day services, you’re losing money for your bank. And for yourself. For more information call Joe Phernetton or BICS marketing at (319) 399-3600. BICS Banks of Iowa Com puter Services o A BANKS OF IOWA' SUBSIDIARY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 78 Iowa News application, particularly the distance between Bank and A pplicant’s subsidiary bank and the lack of commercial intercourse between the cities in which these banks are Hawkeye Bancorporation has re located, the Board has concluded ceived approval from the Federal that the relevant banking market in Reserve Board to acquire Second which to analyze the competitive National Bank of Eldora. The effects of this proposal should be decision issued November 3 is a limited to Hardin County, Iowa.” reversal of the Fed’s March 7 The application, therefore, was disapproval of the acquisition. approved. Hawkeye is a multi-bank holding Second National Bank of Eldora company headquartered in Des has assets of $15.5 million and will Moines. become the 20th member bank of Paul Dunlap, president of Hawk- Hawkeye Bancorporation. Donald eye, requested the Board to E . Poppen will continue as president reconsider its denial, which was of Second National. Judy McCarville based on “anti competitive” factors, is vice president and cashier. since Hawkeye also owns Farmers Savings Bank of Grundy Center, 22 miles to the east in adjoining Grundy County. Hawkeye contended in its request for reconsideration that the Rejoins Humboldt Bank Grundy Center market does not Randall P. Carlson has rejoined conflict with the Eldora market. On the First National Bank in Humboldt reconsideration, the Board agreed, in the agricultural department and stating: has been appointed assistant vice “The Board has reexamined its president and assistant agricultural earlier findings with regard to the loan officer. relevant banking market and, based He was previously associated with on the entire record in this the bank from July, 1976, to Hawkeye Will Acquire Second National, Eldora Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis November, 1977. Most recently Mr. Carlson was employed as a swine production specialist with Growthland AgDevelopment Co., which is an affiliate of the bank’s one-bank holding company, First Investors Services, Inc. Security National Corp. Declares Dividend The Security National Corp., Sioux City, board of directors declared a stock dividend of 10% at their recent quarterly meeting. It is payable December 28, 1978, to stockholders of record December 18, 1978. Also declared was a cash dividend of 17V2 cents per share to stockholders of record December 13, 1978, payable December 15, 1978. E. C. Thompson, president and chairman, pointed out that this will be the eighth stock dividend paid by the corporation since its formation in 1969. Security National Corp. is a bank holding company which owns con trolling interest in the Security National Bank of Sioux City and the Northwestern State Bank of Orange City. Banking for a brighter future. CAPITAL CITY BOOK Des Moines, Iowa 50309 515/244-5111 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P I CAPITAL CITY BAÍ1K Northwestern Banker, December 1978 80 Iowa News Iowa Bankers Association 1979 Calendar January 15f-18 January 22-25 February 5-8 February 9-10 Februrary 18-19 February 20-21 March 20-21 April 8-11 May 7 May 8 May 9 May 10 May 21 May 22 May 23 May 24 June 4-15 June 17-22 August 6-10 October 17-18 September 23-25 IBA Staff Training Seminars IBA Staff Training Seminars IBA Staff Training Group 1 Meeting - Sioux City Group 2 Meeting - Burlington IBA Marketing Conference - Des Moines IBA Ag Credit Conference - Ames IBA Washington D.C. Trip Group 8 - Davenport Group 4 - Cedar Rapids Group 7 - State Center Group 3 - Clear Lake Group 5 - Council Bluffs Group 12 - Okoboji Group 2 - Fort Dodge Group 6 - Des Moines Ag Credit School Ames Iowa School of Banking - Iowa City Installment Lending School - Des Moines Installment Lending Conference - Des Moines IBA Annual Convention - Des Moines Named at Sheldon Hawkeye Bank Promotes 3 Richard Schneider, president of the Security State Bank, Sheldon, recently announced the appointment of Kevin Livengood as an assistant instalment loan officer. Mr. Livengood was previously employed by Thorp Credit as manager of the Estherville office. He has worked for Thorp the past two years in Des Moines and Estherville. The board of directors of the Hawkeye State Bank, Iowa City, recently announced the promotions of three employes. Joan Lange was promoted from note teller to assistant cashier. She has worked at the bank for 7 X A years. Sandy Heitzman, a secretary for the past four years, was ifaS 110 East 7th Street Waterloo, Iowa 50705 Phone 319-234-6641 Ask for Dick or Jerry North Central Iowa Group Installs Officers The North Central Group of the N ational A ssociation of Bank Women met recently at Decorah and installed new officers. They are: Chairman—J . Elaine Anderson, vice president, Peoples Bank & Trust Co., Waterloo; vice chair man— Katherine Lalor, assistant cashier, First Security Bank & Trust Co., Charles City; secretary—Ruth Rodenbeck, assistant vice president, State Bank of Waverly; treasurer— Darlyene Iverson, student loan officer, Decorah State Bank, and membership chairman—Judy Ab bas, cashier, State Savings Bank, Aplington. Outgoing chairman was Sara Lee Yoder, cashier, Grundy National Bank, Grundy Center. The group will meet quarterly in Waverly. Joins Cambridge Bank TURNKEY BUILDING SPECIALISTS! Call It a trend. Call it a concept. Call it anything you want. A Turn Key program from the Kirk Gross Co. is by far the most desirable way to handle your building or remodeling program. Because when Kirk Gross Co. takes over, you get architectural design, interior design, and construction that is coordinated, functional, economical, and downright beautiful. You also get rid of a lot of problems you will have if you try to do all those things yourself. Because Kirk Gross Co. does it all. Our record speaks for itself. Check us out! ______ _______ J Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis promoted to administrative officer. Joyce Amelon, a teller at the bank’s Mall Shopping Center office for the past eight years, was promoted to assistant manager of that office. Ernie Shoen recently joined the Cambridge State Bank in Cambridge as an officer trainee. He had been employed as a business analyst for Dunn and Bradstreet in Council Bluffs for the past several years. Bettendorf Promotes 2 George C. Heninger, president of the Bettendorf Bank & Trust Co., has announced the promotions of Herbert R. Reddy to auditing officer and Susan Stew art to teller supervisor. Mr. Reddy, a 1972 graduate of St. Ambrose College, was awarded his CPA certificate in 1974. Since joining Bettendorf Bank and Trust in 1974, he has served as bookkeeping supervisor with man agement training in auditing and standard operating procedures. Mrs. Stewart is a graduate of Capitol City Commercial College, West Virginia, with majors in sociology and business. She joined the bank in 1972 and was promoted to head bookkeeper in 1973. ¡gil U » T . Some of the best people in the business send you their best wishes. Christy Armstrong, Dob Scott, Dernie Miller, and Leo Kane ore among rhe best w e hove at American Trust, so w e top them as front-liners to handle the full range of your bank's correspondent needs. When they send you greetings, it's because you're special, too. We appreciate your business and look forward to giving you more of the best. MEMBER: FDIC G FEDERAL RESERVE SYSTEM https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis American IT ru s t 0 Savings DanK TOWN CLOCK PLAZA/DUBUQUE, IOWA 5 2 0 0 1 PHONE COLLECT: 3 1 9 -5 8 2 -1 8 4 1 82 Iowa News Resigns at Mason City J. L. Menges, president of the American State Bank, Mason City, has announced the resignation of Robert R. Sudbrook as executive vice president. Mr. Sudbrook has been named president, chief executive officer and director of the Community National Bank of Mount Gilead, Ohio. He joined American State in 1976 and was previously an officer at the Jasper County Bank, Newton. Mr. Sudbrook is a graduate of Drake University and attended the University of Oklahoma Lending School. Security National Receives Minute Man Flag Security National Bank of Sioux City was recently honored by the United States Treasury Department for outstanding participation in the Payroll Savings Plan. J a y E. T o n e J r ., volunteer state chmn. for the program, left, presents the coveted Minute Man Flag to E d w a rd C . T h o m p s o n J r ., pres, of the bank. Security National, with 58 percent participation, was the first major bank in Iowa to be so honored. Mr. Thompson also serves as Iowa Volunteer Bank Chmn. and as a member of the ABA Savings Bonds Committee. THE Joins Commercial State As Executive VP John P. Jorgensen has been named executive vice president at the Commercial State Bank, Mar shalltown, George E. Taylor, the bank’s chairman and chief executive officer, has announced. Prior to his new appointment, Mr. Jorgensen was with the Commercial National Bank in Grand Island, Neb., for four years serving as vice president-commercial loan depart ment. He graduated from the University Retires at Dubuque of Nebraska in 1968 and had worked William G. Kruse, president of the for the Bank of America in San First National Bank, Dubuque, has Francisco until 1974. announced the retirement of F. Estelle Ahlers. She joined First National in 1958. Maquoketa Bank Hosts During her 20-year career, Mrs. Farm, Business Institutes Ahlers has worked in the new The Jackson State Bank & Trust accounts area at the bank’s main Co., Maquoketa, held its 19th office in downtown Dubuque. She was also responsible for new annual Farm Institute recently. According to senior vice president accounts activities during the Don Henningsen, 1,350 people were opening of each of First National’s three detached facilities. In 1976 served a dinner of beef and ham. Speakers included Dr. John F. Mrs. Ahlers was promoted to Marten, economist with the Farm personal banking officer. Journal, and Orion Samuelson, vice president and ag service director for BankPac Award WGN Radio and TV, Chicago. Boyd Hook, executive vice presi Presented to I BA dent of the bank, reported that 458 The Iowa Bankers Association people were served dinner at the was recognized for “ exemplary seventh annual Business Institute performance in support of BankPac” held recently. at the annual ABA convention in Craig Bentrott, assistant to the Hawaii. president, reviewed the local econo Iowa was one of 11 states to reach my and executive vice president at least 100% of its quota for Federal David Thieleke reviewed general BankPac contributions. Iowa bank business and industrial conditions. ers contributed $7,500 to those Guest speaker was Dr. Robert J. candidates running for federal office. Samp from the U niversity of A plaque recognizing this support Wisconsin in Madison. now hangs in the IB A office. Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United Guaranty Corp. Reports Record Figures Record level third quarter and nine months revenues and earnings were reported to directors and stockhold ers of United Guaranty Corporation, Greensboro, N. C., by W. L. Hemphill, president of the nation wide mortgage insurer. “The third quarter and nine-months operations were the best in the history of the company,” stated Mr. Hemphill, “and revenues and earnings reached new highs.” Before securities transactions, quarterly income rose to $3,833,000, or 79 cents a share, a new quarterly record, up 43 % from income of $2,680,000, or 56 cents a share, in 1977 ’s third quarter. Quarterly s e c u r i t i e s g a i n s we r e $25,000 in 1978 and $144,000 in 1977. A fter securities transactions, quarterly net income was $3,858,000, or 80 cents a share, versus $2,824,000, or 59 cents a share, in the same period of 1977. Per share figures reflect the five-for-four stock split on May 28, 1978. For the nine months ended September 30, income before securi ties transactions was $10,241,000, or $2.12 a share, about 36% above nine months income of $7,526,000, or $1.57 a share in 1977. Securities gains were $43,000 in 1978 and were $211,000 in 1977. Including securi ties transactions, net income for the first nine months of 1978 was $10,285,000, or $2.13 a share, a new high, compared with $7,737,000, or $1.61 a share, in 1977. Applications for insurance of new loans in the third quarter reached $867 million, compared with applica tions of $865 million in 1977. At September 30, 1978, consoli dated insurance in force totaled $9 billion, compared with $7.1 billion a year ago, an increase of 27%. 83 P ^m iM W$0:M$ÈÈri i'vPYi ’¿PhP^jè * aÍ i t f i i H Ä £ & £ $ ,£ ,$ . Ä Ü i PPPPPM -PÊ300M É|8 8 flfìj [■¿2p€,:rP4 .. . . from the Correspondent Department of The Toy N ^tC Tarp P-,4LPi4<t¿'**&:'■'.* ' Rich Breyfogle, Staves, Stan Fredericks, and (M y Roîhfsèr warm Season’s Greetings, ^ t h è p a s t year.; 3¡A/é’r a :l<dfâklnô;.;fôa!^ ‘t ^ - * .^ÔÜ--ifî- ^.^v'C£ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 84 He was formerly a retail loan officer at Valley National Bank and is currently serving on the board of directors of the Des Moines Chapter of the American In stitu te of Banking. *** Joins Waverly 1st As Assistant VP L. G. Hix, president of the First National Bank of Waverly, recently announced that Warren E. Clausen has joined the bank as an assistant vice president. Mr. Clausen, who has a BS degree in agricultural business from Iowa State University, works in the farm and commercial loan departments of the bank. Des Moines Chapter of the T HE American Institute of Banking Inc., Des Moines. Ed Cunningham, vice president, hosted its annual M anagement Plaza State Bank, is president of the Manufacturers Hanover and Lionel D. Edie Plan Merger Appreciation Night recently at the Des Moines chapter. M anufacturers Hanover T rust Des Moines Hilton. Company, New York, and the Recognition was given to David L. Nagel, president of the Brenton HE appointment of J. Craig investment counseling firm of Lionel Bank & Trust Co., Urbandale, who Krouch as an assistant cashier of D. Edie & Company, Incorporated, have announced an agreement in was named “AIB Banker of the Plaza State Bank principle for the purchase of Edie & Year.” Forest T. Lewis, president of has been announ Company. Plaza State Bank and Banker of the ced by bank pres Under terms of the agreement, Year for 1977, presented the plaque. ident Forest T. Edie & Company would become a Special guests included Richard L. Lewis. wholly-owned subsidiary of Manu Mr. Krouch is Killmon, AIB national president, facturers Hanover. Edie would of Huston and Larry D. McKeaigg, assigned as an continue to operate under the name executive councilman for District X officer in the of Lionel D. Edie & Company, of AIB, Kansas City, Mo. instalment loan Incorporated, and would retain its Guest speaker was Joe D. Batten, departm ent at own board of directors, on which J C- K R O U C H president and chief executive officer the bank’s main Manufacturers Hanover would be of Batten, Batten, Hudson & Swab, office in Merle Hay Mall. represented. It would remain under independent management, continu ing to determine its own investment philosophies and strategies. In discussing the purchase agree ment, Joseph L. McElroy, executive vice president at Manufacturers Hanover and head of its trust division, said that “Lionel D. Edie & Company will complement MHT’s own strengths in the trust and investment business, particularly with its national network of offices and its broad base of client relationships. ’’ Lionel D. Edie & Company has headquarters at 530 Fifth Avenue in New York City and offices in Atlanta, Chicago, Dallas, Houston, Los Angeles, Philadelphia, Phoenix and San Francisco, as well as a subsidiary, Edie S.A., in Geneva, Switzerland. The firm, founded in 1931 by the economist Dr. Lionel D. P IC T U R E D at the Management Appreciation Night event sponsored by the Des Moines Chapter of the AIB are (from left) Ed C u n n in g h a m , chapter pres.; D avid L. N a g e l, Banker Edie, employs 190 people and has of the Year; R ic h a rd L. K illm o n , AIB nat’l. pres., and L arry D. M c K e a ig g , exec, responsibility for approximately $6.5 councilman, D istrict X, AIB. billion in investments. T Northwestern. Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 “Central National’s dependability in commercial lending activities has enabled us to better serve our customers.’" % . t Richard L. Rump Executive Vice President Iowa State Bank Fort Madison, Iowa u -. r |iipi nil ( m¡ill i ip - ijiim m t j — iw r ■ ___... —— ’ W hen K enneth and Sharon Dix need ed a com m ercial loan for th eir n ew recreational vehicle business, they came to the Iowa State Bank. T heir banker, Dick R um p, relied on C entral N ational's corresp o n d en t b an k in g services to m ake th at loan possible. N ow everyone's smiling! We re determined to do the best for you. Central National Bank & Trust Com pany DES MOINES (515) 245-7111 MEMBER FDIC LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLL/WDM: 35TH & 1-235/501 E. ARMY POST RD. AFFILIATED WITH CENTRAL NATIONAL BANCS HARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December Î978 86 WORD PRDŒSSTIG: EUDLÜTOn DF TECHrOLDGV operate effectively—people, procedures and equipment. People Must Understand Roles The people component is comprised of both the individuals who produce the work to be typed and the word processing center personnel who create the documents, otherwise known as the correspondence specialists. It is vitally important that both the originators and the correspondence specialists fully understand thenrespective roles in order to effectively operate a word processing center. Word Processing Manages Text The procedure component of a word processing center is what differentiates word processing from a typing pool. A word processing center is a viable department within an organization—very similar to the data processing department. D ata processing m anages the data of an organization, word processing manages the text. Within a word processing center, there is a managed approach to creating all the documents that make the By MADGE OLSON Assistant Vice President Word Processing Center Merchants National Bank Cedar Rapids, Iowa Word processing is no longer a concept—it is one of the fastest growing industries in American business. Merchants National Bank opened its center in 1971. The evolution from 1971 to 1978 has been: from IBM M T/ST’s to Mag I ’s and Mag II ’s to IBM System 6; from clerk typist to secretary to correspondence specialist; from 525,420 lines to approximately 5 million lines; from individual dictation to Lanier Tel-Edisette Central Dictation; from Magnetic tape to Mag Card to Diskette—th at’s the story of Merchants National Bank Word Processing Center. As you can see, the equipment has changed, the media has changed, the job titles and production methods have changed. In fact, the only constant in word processing is “change.” However, as we deal with new technologies being announced almost m onthly by vendors, word processing is much more than incorporating the latest technologies. It takes three major components to of the entrance to the center shows B a rb C a rs te n s e n working at the 6/430. A V IE W Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deb Loudon is pictured with the IBM 6/450 and Lanier Transcriber. organization operate on a daily basis —legal documents, original letters, memoranda, forms, brochures, repetitive docum ents, mailing lists, envelopes, labels, reports and statistical reports. Word processing doesn’t begin and end with creating a high quality printed document—revision plays a major role as does simple record keeping applications. Record keeping and data keeping is no longer unique to data processing—small data-processing-like files can be built and maintained by word processing for quality playback. Procedures are written and updated to ensure that each project is professionally created and returned to the originator in a timely fashion. An accurate line count is taken and different types of work are weighed as to the difficulty factor and charged to the appropriate department. The center also has the responsibility of correcting gram m ar, sentence construction and paragraphing. Equipment is Highly Versatile MNB’s center uses the IMB text and records information processors. These machines combine a functional operator display and keyboard and 87 Jensen, Carr, Dougherty, andMeyer. They sound like a good lawfirm, until you need insurance. Ron Meyer Ron Dougherty Bill C arr Jim Jensen employee group insurance, like Blue-Cross-Blue490 participating banks already know these men Shield, Delta Dental, Group Life and Long Terms, an d Iowa Bankers Insurance and Services. These Disability, high limit AD & D, and credit life programs. banks are also aw are of the year-end dividend checks If you need insurance to cover your bank, its we wrote for fiscal year 1977 — a total of $140,837.07. ^officers an d employees, rem ember Jensen, Carr, Jensen an d Carr are responsible for bank and Dougherty and Meyer. They represent Iowa bank-m anagem ent insurance, which includes a Bankers Insurance and Services, Inc., which comprehensive bank insurance plan, blanket represents over $140,000 of dividend bonds, director and officers liability, trust errors paym ents for fiscal year 1977. a n d om issions, and lenders single interest. Dougherty and Meyer handle our bank 430 Liberty Building, Des M oines, Iowa 50309 515 243-0179 Selling insurance protection just to banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 88 Iowa N e w s incorporates a high speed, high quality ink jet printer to provide fast and easy processing of both text and records. The System 6 is totally compatible with the older Mag II technology. Therefore the transition did not require re-keying onto the new high density storage M a d g e O ls o n , manager of the Word Processing Center, (left) and M a ry C a y e W e b b , assistant manager. media. We are able to simply transfer data from one media to another electronically. The equipment is highly versatile and provides excellent results. Money Saved on Small Projects By use of the regular telephine, the three Lanier Tel-Edisettes may be accessed day or night, seven days a week from the bank, the home or while traveling, out of the state or out of the country if necessary. The cassettes are easy to handle and have excellent New President Named At Valley State Bank Bruce M. Kolbe has been named president, chief executive officer and a director of the Va l l e y S t a t e B a n k , Sioux City. A1 Maser was elevated from the position of presi dent to chairman of the board. William D. Ellis will continue as B .M . K O L B E vice president and cashier and as the bank’s chief operations officer. Mr. Kolbe joins Valley State after 15 years with the Security National Bank, Sioux City, leaving the Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tone quality. Also, numerous portables are in use throughout the organization and the cassettes are sent to the center for transcription. The IBM Mag Card Composer adds still another creative dimension to MNB’s center. We are able to create in-house forms, charts, brochures, invitations and high quality set documents. This typesetting concept within the center provides variety and a dollar savings for those small, necessary items where typesetting is needed. There are many vendors in the word processing industry today. In making equipment decisions, the vendor’s reputation is as important as the technology. MNB looks for a vendor who is willing and capable of doing far more than delivering equipment. Equipment configurations, service consultation and assistance in working out applications and installing new procedures, training and an overall educational program on all technology is a must. There are added advantages: productivity, cost, time, space saving and error-free documents, plus challenge and job satisfaction. The correspondence specialists have become skilled technicians. Word Processing Vital to Business Our bank is committed to word processing, which has grown from just a concept to a viable department within the bank. This has been made possible by top management’s total commitment and support. The industry is growing rapidly. Technology is changing with every new major product announcement. The word processing industry has become a dynamic, vital part of the American business scene. We are delighted to be a part of change and prog ress. □ □ A B O U T T H E A U T H O R — Madge Olson, manager of the Word Processing Center, was adm inistrative secretary to the head of the Merchants National Bank trust department for 18 years prior to being named manager of the center. She completed a two-year business college and a word p ro c e s s in g s u p e rv is o r co u rse at IBM E d u ca tio n a l headquarters in Dallas, Texas. position of vice president in charge of personal banking services. He is a graduate of Morningside College. News From Wheatland Peter F. Bezanson continues as chairman of the board of the First Trust and Savings, Bank, Wheatland, while Jerry Maples has moved up to president. Mr. Bezanson and Mr. Maples hold the same positions at Jackson State Bank & Trust Co., Maquoketa, where Mr. Maples is chief executive officer. Mr. Bezanson is also chairman and chief executive officer of MorAmerica Financial Corp., Cedar Rapids, which owns both banks. Other promotions announced at the recent annual meeting in Wheatland were Craig Bentrott, assistant to the president; Gene Frey, executive vice president and chief executive officer, and David E. Harris, vice president. 1st Central, Dewitt Names Assistant VP Alan R. Tubbs, president of the First Central State Bank, Dewitt, recently announced that Betty J. Green has been appointed assistant vice president in charge of customer relations. Mrs. Green, who has 27 years of banking experience, was previously employed at the Union Savings Bank, Grand Mound, and at the First National Bank of Clinton. She was made an officer in 1973. 89 If you're like most bankers you've got a very busy workload. That's why we'd like to remind you that we can help you with your correspondent banking. Computer work ... proof of deposit ... transit work ... collection of checks... even the opportunity to increase your profits with our new BANKEASY card. As this area's largest correspondent bank, we do them all. And we do them well. So do yourself a favor. Call or write us today. National Bank of W aterloo 100 East Park https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December 1978 90 Take Time Take Time to think It is the source of power. Take Time to play It is the secret of perpetual youth. Take Time to read It is the fountain of wisdom. Take Time to pray It is the greatest power on earth. Take Time to love and be loved It is a God-given privilege. Take Time to be friendly It is the road to happiness. Take Time to laugh It is the music of the soul. Take Time to give It is too short a day to be selfish. Take Time to work It is the price of success. Take Time to show appreciation It is the frosting on the cake of life. Take Time to dream It is hitching your wagon to a star. Take Time to do charity It is the key to heaven. No Misunderstanding Language is often a very confusing thing. The wife of an English professor said to her husband, “I would love for you to give me a diamond bracelet!” “My dear,” came the reply, “inexplicable circumstances, perfor ce, preclude the eventuality of my endowing you with such an estimable bauble.” “I don’t get it,” she replied. “PRECISELY!” Stale Bread Mess Sergeant: “I don’t know why you guys gripe about this bread. The boys at Valley Forge would have loved to have had it.” Private: “Sure they would. It was fresh then.” Good Doctor? One local doctor says he doesn’t believe in unnecessary surgery. He never operates unless he really needs the money. INDEX OF AD VERTISERS December, 1978 Acorn Printing Co....................................................... 10 Allison & Williams .................................................... 52 American Trust & Savings, Dubuque.........................81 American National Bank & Trust, St. Paul ...............47 Bank Building Corporation ....................................... 11 Bankers Trust Co., Des Moines ................................ 74 Banks of Io w a ..........................................................2, 3 Banks of Iowa Computer Service.........................76,77 Best Western Motels .......................................... . .29 Capital City State Bank, Des M oines.........................79 Carroll, McEntee& McGinley.................................... 17 Central National Bank & Trust Co., Des Moines ... .85 Continental Illinois National B&T, C hicago..............55 Northwestern Banker, December 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Daktronics................................................................. 10 DeLuxe Check Printers ............................................ 5 DeLuxe Check Printers Forms Division..................... 30 Drovers National Bank, Chicago .............................. 15 Employers Mutual Insurance Co.................................61 First Mid-America, Inc................................................ 70 First National Bank, Lincoln......................................69 First National Bank, Minneapolis .............................53 First National Bank, Omaha......................................65 First National Bank, St. Paul ....................................45 First National Bank, Sioux City ................................ 71 Florida Software....................................................... 7 Gross, Kirk & Company............................................. 80 Insurance Programmers ........................................... 56 Iowa Bankers Insurance & Services ...........................87 Iowa Des Moines National Bank................................ 92 Iowa Des Moines National Bank (Bond Division) . . . .19 Lease Northwest ...................................................... 35 Lincoln Benefit Life .................................................. 68 Manufacturers HanoverTr. Co., New Y o rk ................13 Midland National Bank, Minneapolis .......................51 National Bank of Commerce..................................... 67 National Bank of Waterloo ....................................... 89 North Central Companies...................................48, 49 Northern Trust Company........................................... 21 Northwestern National, Sioux City .......................... 78 Packers National, Omaha ......................................... 64 Rocky Mountain BankCard Assn............................... 9 Security National, Sioux C ity ....................................41 Toy National, Sioux C ity ........................................... 83 Kooker, E.F. & Associates ....................................... 82 United Guaranty Insurance Co....................................91 U.S. Checkbook Co..............................................40, 66 U.S. National, Omaha ...............................................63 Lake Shore Drive Hotel ............................................. 10 LaSalle National Bank ...............................................59 Lawrence Systems.................................................... 12 Western Capital, Omaha........................................... 20 VanWagenen, G.D......................................................14 “Don’t be conf used, Alice. Just think of us as an integral p art of the lending industry.’ One reason for United’s growth is our service. It’s both fast and efficient. Plus a nationwide network of conveniently located offices and experienced representatives. Give us a call today n j n ited G uaranty THE MORTGAGE INSURER United G uaranty Corporation, 826 N Elm, Box 21567, Greensboro, NC 27420 • (919) 373-0863 Contact: United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722 In Iowa, call (800) 292-0047. In States bordering Iowa, call (800) 553-8976 United Guaranty Residential Insurance Company • 421 S.W. 6th Avenue, Suite 900, Portland, Oregon 97204 In Washington and Idaho, call (800) 547-1064. In Oregon, call (800) 452-7697 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Forautomated savings-DD\ transfer we’re ready when you are. No question about it, banking is rapidly A changing and the Iowa-Des Moines can make it easy for you to cope with th ese changes with our many computer services. Our system is ready and immediately available, It offers various interest compounding m ethods and transfer options, flexible service charging, and a combined statem ent. What’s For instance, suppose you decide to offer the new Regulation Q automatic transfer sendee to your custom ers. You can go on our computer, without incurring major capital expenditures or programming c o sts. * Ca" streamline your °P eration while free,ng your staff for more meaningful ta sk s’ Call an Iowa-Des Moines Correspondent Banker and find out all the ways we can give you a lot of help for your m oney — now, and in preparing for your future. KDWA-. nesjwoines A A%NATIONAL BANK You can get a lot of help for your money. Member FDIC An Affiliate of Northwest Bancorporation (BANCO) 7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131 George Milligan Bob Buenneke https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bernie Kersey Dorothea Wolfe Lance Davenport Voldy Vanags John Rigler © 1 9 7 8 Iowa-Des Moines National Bank
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