Full text of The Northwestern Banker : December 1984, 91st Year, No. 1455

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Federal Reserve Bank of St. Louis

—f

John Mangold

Dick Retz

Jerry Trudo

Doug Keiper

Lynn Whiteman

Terry Martin

Stan Farmer

HRISTMAS ...
. . . the Holy season.

Time for counting our many
blessings and remembering our
friends who have shared the
events o f the p a st year with us.
From all of us at Merchants
National to all o f you7 Merry
Christmas!

Merchants National Bank isi
Cedar Rapids, Iowa 52401

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Member F D l C

A BANKS OF IOWA BANK

•

As field representatives of the G.D. van
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to our customers. Teaming with our internal
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To those banks who would like to discover the
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•
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12 South Sixth Street
1-800-742-5658 (Minnesota)
Minneapolis, MN 55402 1-800-328-2052 (Out-of-State)
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Offices In:
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Phoenix
Billings Omaha
Northwestern Banker, December, 1984

N O R D W ESTER N

X he knowledge of
the gnomes is very
close to home.

DECEMBER 1984 • 91st Year • No. 1455
MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION
OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

FEATURES

Bank officer salary survey

Exclusive survey de tails top three o ffic e rs ’ incom e

A/L management ■ Part IV

G etting to the heart of ALM

Federal Home Loan
Mortgage Corporation
111 East Wacker Drive,
Suite 1515
Chicago, Illinois
60601-4580
(312)861-8455

Ag lenders meet

ABA conferees call for d e fic it reduction

Steady growth in ’85

Representatives and their
territories are:
Judy Graves: Chicago,
Northern Illinois, Indiana
DickHammond: Minnesota,
Iowa, North & South Dakota
Jeanne Redford: Wisconsin,
Southern Illinois
John Sable: Ohio, Michigan
Ann Alexander, Marketing
Administrator, Chicago

First Chicago conference speakers o p tim is tic

Convention calendar

Detailed listin g s for 1985 state and national m eetings

DEPARTMENTS
24
25
27
28
32
32
33

Illin o is
W isconsin
M innesota
Twin Cities
South Dakota
North Dakota
M ontana

34
35
37
38
40
47
55

Through our system
o f regional offices,
Freddie Mac makes it
easy to do business
locally. And, because
our representatives
live there, they
understand your
particularneeds. Our
North Central Region
office is:

W yom ing
Colorado
Nebraska
Omaha
Lincoln
Iowa
Des Moines

THE GNOMES
KNOW sm

Freddie
Mac

NORTHWESTERN BANKER
306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Consultant

Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1455 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.
Northwestern
Banker, December, 1984
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Federal Reserve Bank of St. Louis

Federal
Home Loan
Mortgage
Corporation
Owned by A m erica's Savings institutions

o
O

We m ake house calls.
The gnomes of Freddie Mac are not only well-versed but also welltraveled. ■ Indeed, we are always eager to meet with our
customers. And each of our regional offices is tailored to suit
local needs. ■ Whether you want to sell your mortgages for
cash or swap them for PCs, we’re ready to structure the
deal that’s right for you. Just say when— our bags are packed.
This is not an offer to sell or a solicitation o f an offer to buy PCs. PCs are sold only by means o f an offering circular. PCs are not guaranteed by the
United States or by any Federal Home Loan Bank and do not constitute debts or obligations o f the United States or any Federal Home Loan Bank.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, N.W. ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
© 1984, FHLMC

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THE GNOMES
KNOW sm

Freddie
Mac
Federal
Home Loan
Mortgage
Corporation
Owned by A merica’s Savings Institutions

member of PSI. Royal Bank w a ^
granted the entire country o r
ified organizations and to link di Canada as an exclusive licensed
rectly with the PSI national switch area. As the largest bank in Canada,
in Denver. The third parties will be with assets in excess of $64 billion,
members of the corporation, but will Royal Bank has more than 150C^
have limited rights which do not in branches located throughout all the
clude board participation or voting provinces of the nation.
privileges.
This move, for example, would
allow ITS, Inc., headquartered in
9
Des Moines, la., to become such a FBS Venture Capital
member of PSI. ITS is a statewide Granted SBIC License
shared system, with the switch in
FBS Venture Capital Company
Des Moines, and is a founder of Na- has been granted a license by the
tionet. ITS earlier this year an U.S. Small Business Administrator®
nounced signing of a formal agree to operate as a Small Buisiness In
ment to link with CIRRUS through vestment Company (SBIC).
Norwest Corporation, Minneapolis.
The license allows the company
If ITS elected to accept the limited access to a new vehicle for funding
membership offered by PSI, its small business start-ups and expan®
member banks in Iowa would then sions in Minnesota, Arizona and Col
have to individually choose whether orado.
to be aligned with the CIRRUS na
FBS Venture Capital Company,
tionwide system or with Plus, but founded 24 years ago, is a partner
they could not be in both under PSI ship between the $21 billion banlP
rules. ITS has not taken any action holding company First Bank Sys
on PS I’s move.
tem, Inc. and Community Invest
Third, PSI directors approved the ment Enterprises, Inc. It has offices
application of the Royal Bank of in Minneapolis Minnesota, Scotts
Canada, headquartered in Montreal, dale Arizona and will open one irr
to become the 35th proprietary Denver Colorado in early 1985.

Plus System Adds New Membership
T THEIR meeting in Denver
last month, directors of Plus
A
System, Inc., approved three impor
tant strategic decisions, it was an
nounced by D. Dale Browning, presi
dent.
First, directors reclassified Nationet and the Exchange networks
from the status of “competing net
works” to noncompeting networks
since neither is truly national in
scope, according to PSI definition.
The board kept in place its classifi
cation of CIRRUS and the American
Express EXPRESS CASH net
works as the two national shared
ATM networks which are national
competing systems. Participation in
either of these two systems is pro
hibited to Plus System, Inc. mem
bers.
Second, directors adopted a by
laws change to offer a limited mem
bership status to depository-owned
third party processors. This would
permit qualified depository institu
tions serviced by such processors to
become PSI members. This would be
accomplished by enabling the pro
cessor members to sponsor the qual

Diebold Fuel Pump POS Unif^
Installed in Nebraska

B usiness Credit
A n a ffilia te of

rv -'T'jr

\ , < - 1VV

-V-,

■ lisi

■ligi

Bankers
expect us to
provide financing from a
different perspective. We put
lendable resources to work quickly by
establishing the value of a customer’s assets
(tangible and intangible) and structuring a flexible
loan package. W e’ll lend alone or in participation with you.
Remember our name.
Call our Minneapolis office at 1-800-BARCLAY.

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

A member-local of Farmland In
dustries in Waverly, Nebr., just
north of Lincoln, has installed a cardactivated, automated fuel terminal®
and fuel system. The TABS^ 904
Automated Fuel System, manufac
tured by Diebold, Incorporated of
Canton, Ohio, has been installed.
The National Bank of Commerce®
in Lincoln provides data processing
support for the system, which can be
accessed by the 400,000 cardholders
of the statewide Nebraska Electronic^
Transfer System (NETS), including
the more than 100,000 cardholders
of NBC’s Bank-in-the-Box ATM net
work.
Customers simply insert their^
debit card and Personal Identifica
tion Number (PIN) and select the
kind and amount of fuel to be pur
chased. Once the fuel has been
pumped and the transaction com-^
pleted, the card is re-inserted to ob
tain a receipt, printed with a de
tailed description of the transaction.
The amount of the sale is debited
automatically from the customer’s ||
account and credited to Waverly’s.

Whenacustomerdies,
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Federal Reserve Bank of St. Louis

as well as uncomplicated
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It’s also insurance that,
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For complete IBIS creditor pro
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Northwestern Banker, December, 1984

FIRST.

THEGOODNEWS
.TwoFirsts m ake

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

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

First Bank

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

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Federal Reserve Bank of St. Louis

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

Members

9
«

Bank Officer Salary Survey

A
N o rth w ester n
B anker
S urvey

To Our Readers:
Our Northwestern Banker Annual
Salary Surveys, while not purport
i n g to be totally scientific, have
proven to be reliable, working refer
ences for thousands of readers over
the years because our reader partici
pants, knowing their confidentiality
®will be respected, have cooperated
willingly by furnishing needed infor
mation. For their cooperation and
confidence in this Salary Survey and
i/ie preceding ones published by us
*over several decades, we express our
sincere thanks.
Ben Haller, Jr., Publisher

returned, of which 17 were not iden
tified by size and/or state and 10
were not complete enough to use.
The remaining 518 questionnaires
thus form the basis for this survey,
distributed by the following sizes:
Assets in
Millions
Under $15
$16-$30
$31-$50
$51-$100
$101-$150

No. of
Replies
171
139
108
81
19

518

Procedure
The replies were divided first by
states, then by asset size within
each state. The next step was to re
c c o r d in g to results of the cord all data from the question
1985 Annual Salary Survey con naires relating to CEOs, then 2nd
ducted by the N orthwestern Officers, then 3rd Officers. After
• B anker , banks across a nine-state data for each of these three categor
area of upper midwest and mountain ies were recorded, the figures were
states plan to increase salaries of then assembled onto three Recap
their top three officers an average of sheets—one for each of the three of
5.5%, and salaries of their other of ficers surveyed. This gave an oppor
fic e rs and staff members by 5.3%. tunity to look at CEOs, for example,
These results and other data are re of all nine states to determine how
viewed in the following study and much variation existed from state to
charts.
state.
£
Basis
These figures then were trans
A total of 545 questionnaires were ferred to a final Recap page that
T he N orthwestern B anker

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Federal Reserve Bank of St. Louis

showed the average salary figures
for all CEOs, 2nd Officers and 3rd
Officers by the five asset sizes noted
earlier. Those final average figures
are the ones appearing in accompa
nying charts. The variations con
tained within each state and among
the states are discussed in the fol
lowing text.
It was obvious that in those
states and those categories where
smaller numbers of responses were
available, the possibility existed for
wider than normal error. However,
for purposes of comparison, each
portion of the survey was completed
on the same basis, then consolidated
with and/or compared to other simi
lar data from the survey. Despite a
few significant variations, it was in
teresting to note how final averages
for the largest banks (19 of them)
follow the upward progressive sal
ary pattern noted in the other four
size groups.
The balance of the information
was compiled for this survey in a
similar way. Explanations of charts
and other pertinent details also are
covered in the text that follows.
The Questionnaire
The survey itself asked these
three questions:
1. What is the planned salary in
Northwestern Banker, December, 1984

CHART NO. 1A
This chart for CEOs and Charts 1B and 1C for 2nd and 3rd O ffice rs show banks grouped by five asset sizes. The figures in
parentheses d ire ctly below the asset size show the number of questionnaires used to com pile the s ta tis tic s on that line. C ol
umn 2 gives a com parison between 1984 salaries and 1985 projected salaries, w ith the resulting increase, follow e d in Column
3 by the percentage increase for tha t group. In Colum ns 4 and 5, average d o lla r am ounts are shown for “ ’84 Bonus” and
“ Other Incom e.” The figures in parentheses d ire ctly behind these am ounts show the percentage of respondents who paid
those am ounts. In Column 6, the firs t figure shows percentage of respondents who own some stock in the bank or holding
company. The figure in parentheses indicates the percentage of respondents who own 50% or more of the stock.
CHIEF EXECUTIVE OFFICERS
Assets in
Millions

Salary
’85 - ’84

% Increase
’85 to ’84

Estimated
’84 Bonus

Other Income

Common Stock
Ownership By

Up to $15
(171)

$36,675
-34,913

5.05%

$ 8,447 (62.3%)

$5,092 (41.5%)

72.5% (41%)

5.05%

$ 9,319 (67.6%)

$7,477 (25.9%)

71.2% (10.1%)

4.95%

$11,180 (59.6%)

$6,914 (26.6%)

70.6% (20.8%)

4.48%

$ 9,020 (54.3%)

$4,639 (13.6%)

54.3% (11.1%)

6.0%

$9,717 (42.1%)

$3,533 (15.8%)

47.4% (11.1%)

5.1%

$9,537 (60.9%)

$5,531 (28.9%)

68.0% of 518

$31-$50
(108)

$55,557
-51,980

$51-$100
( 81)

$65,698
-62,828

$100-$150
( 19)

$78,148
-73,722

CD * *
CO

1,762
$49,173
-46,792
2,381

2,577

2,870

4,426
(518)

Question 1
Q. What is the planned income in
3.
How many full-time employees1985 for the following, and their
on your staff (please count each two 1984 income (1st Officer, 2nd Offi
half-time employees as one full-time cer, 3rd Officer)?
#
employee)?
In the 1984-85 salary comparisons
Respondents also were asked to in Chart No. 1, the figure in paren
check appropriate asset size of their theses under the asset size is the
2.
Other than your top three offibank and give the name of their number of completed questionnaires
cers, what percentage increase do state. They were asked not to sign used for that category. They total®
518 for CEOs and 510 for 2nd Offiyou plan for: Other Officers; Non-Of their names.

1985 for (CEO, 1st Officer, 2nd Offi
cer); 1984 salary; % increase; esti
mated 1984 bonus; other 1984 in
come—e.g., insurance & real estate
commissions; % of bank’s common
stock owned by each of the three of
ficers?

ficer Staff?

CHART NO. 1B
2nd OFFICERS
Assets in
Millions

Salary
’85 - ’84

% Increase
’85 to ’84

Estimated
’84 Bonus

Other Income

Common Stock
Ownership By

Up to $15
(171)

$24,089
-22,878

5.3%

$5,601 (61.0%)

$4,557 (31.7%)

34.1%

$16-$30
(136)

34,643
-32,762

5.7%

$4,972 (58.8%)

$5,400 (30.1%)

49.3%

$31-$50
(109)

$37,611
-35,581

5.7%

$5,550 (59.6%)

$3,631 (18.3%)

35.8%

5.97%

$5,731 (51.2%)

$2,246 (12.2%)

34.1%

6.0%

$9,936 (47.4%)

$2,100 (10.5%)

47.4%

5.7%

$6,358 (52.42%)

$3,587 (22.7%)

39% of 510

1,211

1,881

o
o

2,030
$47,713
-45,023

$100-$150
( 19)

$55,789
-52,751

2,690

3,038
(510)

DigitizedNorthwestern
for FRASERBanker, December, 1984
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Federal Reserve Bank of St. Louis

11
CHART NO. 1C
3rd OFFICERS
Assets in
Millions

Salary
’85 - ’84

% Increase
’85 to ’84

Estimated
’84 Bonus

Other Income

Common Stock
Ownership By

Up to $15
(124)

$19,364
-18,316

5.79%

$3,247 (67.0%)

$3,063 (19.4%)

20.2%

$16-$30
(127)

27,029
-25,348

6.66%

$3,516 (56.7%)

$3,577 (24.4%)

16.5%

$31-$50
(104)

$31,401
-29,924

4.94%

$5,378 (50.0%)

$4,376 (15.4%)

22.1%

5.75%

$4,218 (51.2%)

$2,858 ( 8.5%)

22.0%

5.6%

$9,244 (44.4%)

-0-

5.6%

5.75%

$5,121 (53.86%)

$3,469 (16.9%)

19.3% of 455

1,048

1,681

o
o

1,477
$39,156
-37,027

$100-$ 150
( 18)

$45,590
-43,168

2,129

2,422
(455)

cers. Since 63 banks reported no 3rd already the highest average as
^Officer, that total is 455.
noted, shows its CEOs will get the
One comparison not shown on the least salary increase in 1985 (3.2%)
chart that is worthwhile considering
is the relationship of salary in each
CEOs
asset size to the next. For example,
Din looking at CEOs, the second asset
Relationship
1985
size ($16-$30 million) shows an aver
Salary
Increase
age salary 34% higher than the sala
A $36,675
ry paid in banks up to $15 million.
34% over A
49,173
In the next three asset sizes, the in13% over B
55,557
©crease per asset size is less but is
18.2% over C
65,698
consistent in its increase. In the
19% over D
78,148
compilation below, the five asset
similar relationship existed
sizes are listed A (up to $15 million) among asset sizes for 2nd and 3rd
through E ($100-$ 150 million):
Officers. These percentages differ
II Thus, though the number of re from the CEO chart above, but the
plies for larger banks is fewer than two show some distinct similarities
for the smaller bank size banks, the to each other. In addition, note that
validity of those replies is borne out as with CEOs, the 2nd and 3rd Offi
by the consistency of the increasing cers show a substantial percentage
©salary levels established in the pre salary jump for banks $16-$30 mil
ceding four categories.
lion (Size B) over banks under $15
Regarding the 1984 and 1985 sal million (Size A):
ary averages compared by states,
2nd OFFICERS
the variation for the nine states in
©the survey in the under $15 million
1985
Relationship
category ranged from a low of
Salary
Increase
$32,725 in Montana for CEOs, to a
A $24,089
high of $38,766 in Illinois for 1984
B 34,643
44% over A
salaries, a range of $6,000. However,
8 .6 % over B
C 37,611
®five of the nine states were closely
D 47,713
27% over C
grouped around the nine-state aver
E 55,789
17% over D
age of $34,913 shown in the chart. In
3rd OFFICERS
looking at the estimated 1985 sala
Relationship
1985
ries, that range diminishes to about
Salary
^>5,500 between the North Dakota
Increase
low of $34,540 and the Illinois high
A $19,364
of $39,993. Montana, which had the
B 27,029
40% over A
lowest CEO average salary for 1984,
C 31,401
16.1% over B
in d ic a te d the highest percentage in
D 39,156
24.7% over C
crease (7.7%) for 1985, while Illinois,
E 45,590
16.4% over D

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of all the respondents.
In the same asset size of up to $15
million, Illinois shows its 2nd Offi
cers with the lowest average—
$20,478 — in 1984 and moving up
even with a 5.86% increase to just
$21,678 averge in 1985, still the low
est among 2nd Officers in all nine
states. The highest 2nd Officer sala
ries in 1984 were South Dakota
($24,959) and Nebraska ($24,440).
They continue to be the highest in
1985 salaries, as well—South
Dakota $26,412 and Nebraska
$25,543.
Among 3rd Officers in the under
$15 million category, Illinois con
tinued to rank the lowest—$16,0 1 4 while Montana was the highest by
far with $21,917. Iowa, Minnesota,
North Dakota and South Dakota all
were grouped around $18,500, and
Wyoming trailed close behind at ex
actly $18,000. All these figures were
for 1984. The 1985 projected salaries
keep the states in about the same
order. An exception is Illinois, where
3rd Officers will apparently go to an
average of just $16,621 (a 3.8% sala
ry increase), while Montana 3rd Of
ficers will jump 6.5% to $23,142.
The disparity between the two
states jumps from $5,903 in 1984 to
$6,521 in 1985. Of the Illinois re
spondents, 57% of the CEOs are ma
jority stockholders and may be
carrying a higher debt load at this
time in their banks. In the next
three asset sizes, the salary ratios of
2nd and 3rd Officers to the CEO are
much closer to the average for all
nine states, and in the largest asset
Northwestern Banker, December, 1984

12
CHART NO. 2
“ W hat percentage increase do you plan for...”
Assets in
Millions

Other Officers

Non-Officer Staff

Up to 15%
$15 - $30
$31 - $50
$51 - $100
$100 - $150

4.85%
5.38%
5.11%
5.56%
5.58%

5.27%
5.57%
4.97%
5.50%
5.49%

CHART NO. 3
“ How many fu ll-tim e em ployees on your s ta ff (please count each tw o half-tim e
employees as one-full tim e em ployee)?”
Assets in
Millions
No. of Employees
Assets per Employee
Up to 15%
$15 - $30
$31 - $50
$51 - $100
$100 - $150

7.31
13.7
19.93
39.73
75.97

size, the latter two officers in Illinois
slightly exceed the average.
The salary disparity from one
state to the next in the $16-$30 mil
lion size is similar to the under $15
million asset group. However, as one
moves into the next two higher asset
sizes, the differences from one state
to another are more sharply accentu
ated for the high and low. In the
$31-$50 million group, CEOs 1984
salaries range from an average of
$46,885 in North Dakota up to an
average of $61,100 in Minnesota. In
the $51-$100 million group, CEO
1984 salaries range from $54,727 in
Nebraska upward to $65,000 plus in
Minnesota and Wisconsin and a
high of $70,016 in Illinois.
In the $100-$ 150 million asset
group the variation runs only from
$70,250 low in North Dakota to
$76,683 in Iowa for a high.
Mention should be made of the
number of banks which indicated
they are not planning any salary in
crease in 1985. Those banks must be
included in the averages, of course.
A complete record was not kept of
banks in all states who indicated
there would be no salary increase in
1985; however, in just Iowa and
Nebraska alone, the number was sig
nificant. Among CEOs in the small
est bank category (up to $15 million
assets), 27% of the Iowa respon
dents and 38.6% of the Nebraska re
spondents said the CEO would not
have a salary increase! This austeri
ty program also carries over to 2nd
and 3rd Officers and staff, but to a
lesser degree.

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

per
per
per
per
per

bank
bank
bank
bank
bank

$1,053,283
$1,679,057
$1,801,789
$1,909,551
$1,675,131

The use of bonuses varies from
bank to bank, and those averages
are shown in Chart No. 1 as well. In
a few cases, bonuses form a signifi
cant portion of a CEO’s income—oc
casionally to one-third—but in most
cases it was listed as a flat percent
of base salary.
Assessing the extent of owner
ship of common stock is difficult at
best in such a brief survey, so the
figures in the last column of Chart
No. 1 tell two stories only. The first
figure at the far right of each asset
CHART NO. 4
Showing relatio nship of No. 2 O fficer
salary to CEO salary. (E.G., 2nd Officer salary in banks under $15 m illion
assets = 65.7% of CEO's salary.)
Assets in
Millions

#2
to CEO

Up to $15
$16-$30
$31-$50
$51-$100
$101-$150

65.7%
70.5%
67.8%
72.6%
71.4%

Average =

69.6%

Showing relatio nship of No. 3 O ffice r
salary to CEO and No. 2 salaries.
Assets in
Millions

#3
to CEO

#3
to #2

Up to $15
$16-$30
$31-$50
$51-$100
$101 -$150

52.8%
55.0%
57.6%
59.6%
58.3%

80.4%
78.0%
83.5%
82.0%
81.7%

Average = 56.7%

81.1%

group shows the percentage of re -^
spondents who said they own somew
stock in their banks. The second fi
gure in parentheses is the percen
tage of respondents who own 50% or
more of the common stock.
^
Question 2
Q. Other than your top three offi
cers, what percentage increase do
you plan for Other Officers, Non-Of
ficer Staff?
#
Chart No. 2 shows the resulting
percentage increases for these two
groups. Among all other officers, the
average is within a range of only .73
of 1% from high to low. Among th e #
bank staffs in column two, that
high-low range from one size bank to
the next is only .6 of 1% from high
to low, a consistency that persisted
throughout all responses by s ta te s #
and asset size.
Question 3
Q. How many full-time employees
on your staff (please count each tw o £
half-time employees as one full-time
employee)?
Chart No. 3 gives these results
and the figures should be considered
as guidelines only. A wide range o f#
number of employees was noted
within asset groups because some
banks responding were ones with as
sets just above $16 million, for ex
ample, while others in the same as-#
set grouping had just under $30 mil
lion assets; consequently, the num
ber of employees would vary. The
average of assets per employee,
therefore, was arrived at by tak in g #
the middle point of each asset group
($7.5 million in the under $15 million
group, for example, or $40 million
for the $31-$50 million group) and
dividing that dollar amount by th e #
average number of employees for
the size group. Those figures shown
in Chart No. 3 are extremely close to
the ones published in earlier surveys
based on actual deposit size of each ®
bank responding.
The smallest size group, under
$15 million, had 171 responding
banks with an average of 7.3 em
ployees per bank and $1,053,283 as-®
sets per employee. That figure was
lower than the other four asset
groups as shown.
Chart No. 4
^
One additional chart is the one
this survey always presents show
ing the percentage relationship of
salaries for the 2nd and 3rd Officers
to the CEO and those percentages q
are shown in Chart No. 4.
□

A Plain
English
Guide to
Asset/Liability
Management

A Plain English
Guide to
Asset/Liability
Management

Written bv Bankers for Bankers

ABOUT THE AUTHORS
Paul Lindsey is president and CEO of Farmers N ational Bank of
^G e n e s e o , III., an ag ricu ltural-orie nted fin a n cia l in stitu tio n . Mr.
^ L in d s e y has over 15 years experience in the banking industry and
has been instrum ental in helping Farmers National to nearly dou
ble in size in only seven years from $60 m illio n in to ta l assets in
1977 to its present size of $115 m illion. He is also a member of the
ba nk’s A sse t/L ia b ility M anagem ent C om m ittee (ALCO) and a
^ m e m b e r of the bank’s board of directors. Farmers N ational has
® h a d a form al a ss e t/lia b ility m anagem ent program in effe ct since
1978.
Bill Goedken is president and CEO of F.N.Bankware, Inc., a f i
nancial in s titu tio n con sulting and m icrocom puter softw are firm
in Omaha, Nebr. Mr. Goedken holds CPA and CMA ce rtifica tio n s,
_ a n d is an MBA graduate of the University of Iowa. Before jo ining
^ F .N .B a n k w a re , Mr. Goedken was a senior co n su lta n t w ith Touche
Ross & Co., an in te rna tiona l CPA firm . He has over 10 years exper
ience in the banking and savings and loan industries, a s s e t/lia b ili
ty m anagem ent, and fin a n cia l in s titu tio n operations.
Jim Riha is senior vice president and c o n tro lle r of Packers Na
t i o n a l Bank of Omaha, Neb. Packers is an urban retail bank in a
^ h ig h ly com petitve m etrop olitan m arket and has assets of $120
m illio n. Mr. Riha is a graduate of the Colorado School of Banking
and the S tonier G raduate School of Rutgers. As both CFO and
ch ie f ad m in istra tive o ffice r of Packers, Mr. Riha is responsible for
all fin a n cia l operations of the bank, including a sse t/lia b ility man
agem ent. He is also a member of the bank’s A sse t/L ia b ility Man• a g e m e n t C om m ittee (ALCO).

ceptable level of risk. If we were to “blow-up” the
ALM circle shown in Figure 1 and examine the details,
the ALM process could be illustrated as in Figure 11.
In our previous discussion, we examined only the
current gap positions, that is, the maturity and repric
ing gap positions on the current balance sheet. The cur
rent gap position is also called the static gap. The sta
tic gap position is important because it shows how the
current balance sheet structure matures or reprices.
However, for planning purposes, static gap is of
limited use because your balance sheet structure
changes from month to month and, in fact, changes
from day to day. Accordingly, your gap position
changes as well. Your bank’s planning process should
include an analysis of future or dynamic gap positions
which are based on projected future balance sheets. By
analyzing future gap positions, we are better able to
plan ahead to avoid undesirable situations and take ad
vantage of new opportunities as they arise.
To determine future gap positions, it is necessary to
FIGURE 11

THE ASSET/LIABILITY'
MANAGEMENT PROCESS

Part IV
#

Ed. Note: This is the fourth in a five-part series pre
senting to our readers the entire booklet titled, “A
Plain English Guide to Asset/Liability Management. ”
Part I I I last month discussed Gap Management as one
of the Four Approaches to Practicing ALM. The series
®continues with the following material and will con
clude in the next issue with Asset/Liability Manage
ment Models and Questions and Answers about ALM.

Let’s Get To The Heart of ALM
OW that we have examined the various approaches
used today, let’s take a closer look at ALM and
N
expand upon the concepts outlined earlier. We will ex

pand on the Gap Management approach because it is
^ th e approach most often used today.
In Figure 1, we emphasized that Long-Range Strate
gic Planning, ALM, and Budget/Profit Planning are all
interrelated. Although we shall focus on ALM, we will
also show how the other functions integrate with the
0 ALM process. Remember, ALM is the “action plan’’
designed to meet your goals while maintaining an ac

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Northwestern Banker, December, 1984

first project a future balance sheet which is based upon
the projection of the following three factors:
1) Projected interest rates,
2 ) Projected total growth for the bank (assets and
deposits), and
3) Projected asset/liability mix.
Each of these factors affect ALM strategy and,
therefore, profitability. We shall examine each of these
factors; however, first we must decide on a time frame
to do the projections. Most banks use only a one-year
time frame with twelve monthly projections. Others
may use a six-month time frame, while still others use
twenty four months. The time frame you select de
pends on whether you are emphasizing short-term or
long-term strategies. To keep our example simple, we
shall use a six-month time frame with monthly projec
tions.
Projected Interest Rates
The first step in our projection process is to project
what we expect future interest rates will be. This is dif
ficult at best. It would be a banker’s dream come true
if he/she could accurately predict interest rates consis
tently. However, we do have to face the reality of an
uncertain world.
As a starting point, let’s look at the interest rates on
our current balance sheet (Figure 3). Note these are
weighted-average rates. For example, the $5,716,000
of U.S. government securities is at 10.75%. This is the
weighted-average rate of all the various U.S. govern
ment securities (3 month T-bills, T-notes, etc.) totaling
the $5,716,000. However, we must determine the fu
ture rate at which we can purchase a new T-bill, the fu
ture rate we would charge for a new installment loan,
etc.
Thus, we need to project the rate at which, on aver
age, new U.S. government securities may be purchased
in each month of our projection. We must also project
the rates for each balance sheet category (except for
non-rate categories). It is important to note that pro
jected rates are not weighted-average rates of the en
tire portfolio, but rather the rates for new purchase of
assets and liabilities for each month in our projection.
Figure 12 shows a sample projected interest rate
scenario for our six-month time horizon.
Projected Bank Growth
Projected bank growth is also an important element
of ALM and long-range scenario planning. Without
knowing what your bank’s goals are in terms of growth
rate or size, specific ALM strategies cannot be mean
ingfully formulated. Typically, a bank defines growth
in terms of the following:
• Total assets
• Total deposits
• Total net income
The first two items are balance sheet measures of
growth. They are the targets that ALM strategies and
the detailed action steps aim to achieve. Growth in net
income, to a large extent, depends on the growth of as
sets and deposits and at what rates they are projected
to be.
For our example in Figure 13, total assets and de
posits are projected month by month for a six-month
time horizon. Your bank may have seasonal patterns in
asset and deposit growth. Accordingly, independent
projections of these items allow for seasonal patterns.

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FIGURE 3

POOL OF FUNDS APPROACH
SAMPLE BANK U.S.A.
FIGURES ARE IN THOUSANDS
ASSET DESCRIPTION

LIABILITY t EBUITY DESCRIPTION

CASH l DUE FROM BANK

AMOUNT:
RATE:

2,418
0.001

U.S. GOVERNMENT’S

amount:
rate:
amount:
rate:

AMOUNT:
RATE:
amount:
rate:

5,716
10.751
4,932
11.121
5,131
6.571
2,745
9.551

amount:
rate:

18,524
9.511

AMOUNT:
RATE:
amount:
rate:
amount:
rate:
AMOUNT:
rate:
amount:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

7,533
14.25Z
2,513
13.801
5,241
14.351
7,232
14.501
2,560
12.25Z
2,340
13.331
(300)
0.001

AMOUNT:
RATE:

27,119
14.18Z

DDA’S

amount:
rate:
amount:
rate:
amount:

NON ACCOUNTS
AGENCY ISSUES
MUNICIPAL’S
FED FUNDS SOLD
SUBTOTAL INVESTMENTS

SAVINGS
MONEY MARKET ACCOUNTS
—

—

COMM. LOANS-FIIED
AGRI LOANS
INSTALLMENT LOANS
REAL ESTATE LOANS
OTHER LOANS
ALLOW FOR LOAN LOSS
SUBTOTAL LOANS

30 MONTH CD’S
CD’S > 4100,000
OTHER CD’S

------------ ----

—

SUBTOTAL CD’S
—

AMOUNT:
rate:

TOTAL DEPOSITS
FED FUNDS PURCHASED

OTHER ASSETS
—

AMOUNT:
RATE:

1,350
O.OOZ
1,325
O.OOZ

—

AMOUNT:
RATE:
—

OTHER LIABILITIES
FIXED ASSETS

SUBTOTAL OTHER LIAB.

—

19,436
10.68Z

9.55Z
2,450
O.OOZ

amount:

RATE:

'll

—

AMOUNT:
rate:
amount:
RATE:
—

—

5,450
10.00Z
5,435
10.25Z
4,278
12.453 #
2,895
11.00X
1,378
8.90Z

44,446
7.05Z

0A
™

—

2,450
O.OOZ

—

2,675
O.OOZ

CAP. STOCK V RET. EARN. AMOUNT:
rate:

AMOUNT:
RATE:

50,736
11.05Z

TOTAL LIAB.

11.05Z
WEIGHTED AVG. RETURN ON ASSETS
WEIGHTED AVG. COST ON FUNDS (HURDLE RATE) 6.171
DIFFERENCE (SPREAD)

25,010
4.23Z®

amount:
rate:

SUBTOTAL OTHER ASSETS AMOUNT:
RATE:
TOTAL ASSETS

—

AMOUNT:
RATE:
AMOUNT:
rate:
AMOUNT:
rate:
AMOUNT:
RATE:
AMOUNT:
rate:

6 MONTH CD’S
COMM. LOANS-VARIABLE

RATE:
AMOUNT:
rate:

SUBTOT. DDA’S AND SAV. AMOUNT:
RATE:
HONEY MARKET CD’S

8,250
O.OOZ
7,340
5.25Z m
5,635 W
5.50Z
3,785
9.55Z

1EBUITY

AMOUNT:
RATE:

3,840 w
O.OOZ
50,736
6.17Z

•

4.831

Projected Asset/Liability Mix
1
We have now projected individual future interest
rates and growth in total assets and total deposits.
Now we must project our future purchases of assets
and liabilities which determine our projected asset/
liability mix. If we were to re-examine Figure 3, we can
see the various individual asset balances composing
the current total asset balance. The same is true for de
posit and liability accounts. The composition of all the
individual balances to total assets or total liabilities is
called the Asset/Liability Mix. The Asset/Liability
Mix as well as the maturity and repricing schedules as
shown in Figure 5 and Figure 7 influence the gap posi
tions.
Since the account balance and rate structure changes (
from day to day, the “mix” changes as well. The change
in mix in turn changes the gap positions. We have seen
that a negative repricing gap position is not the best
position to be in if rates are expected to rise. Our sam
ple projected rate scenario in Figure 12 shows a gener- (
ally rising rate scenario. Thus, we need to influence the

15
•

FIGURE 12
PROJECTED INTEREST RATE SCENARIO
SAMPLE BANK U.S.A.

FIGURES ARE IN PERCENTAGES

ASSET DESCRIPTION

MONTH
1

MONTH
2

MONTH
MONTH
3
4
5

MONTH
6

MONTH
LIABILITY DESCRIPTION

MONTH
1

MONTH
2

MONTH
3

MONTH
4

MONTH
5

MONTH
6

U.S. GOVERNMENT'S

10.BSZ

10.851

11.001

11.101

11.301

NON ACCOUNTS

5.251

AGENCY ISSUES

10.951

11.001

11.201

SAVINGS

5.501

MUNICIPAL'S

7.501

7.401

7.501

MONEY MARKET ACCOUNTS

9.501

10.001

10.251

FED FUNDS SOLD

9.501

9.701

10.001

HONEY MARKET CD'S

9.BOI

10.101

10.301

® C 0 H M . LOANS-VARIABLE

13.751

14.001

14.201

6 MONTH CD'S

10.201

10.251

COMM. LOANS-FIXED

14.00Z

14.001

14.251

30 MONTH CD'S

10.501

11.001

AGRI LOANS

14.201

14.251

14.501

C D ’S > »100,000

10.551

11.101

14.401

14.601

OTHER CD'S

8.601

B.60Ï

8.601

REAL ESTATE LOANS

13.001

13.501

FED FUNDS PURCHASED

9.551

9.901

10.001

10.501

OTHER LOANS

15.001

MONTH
4

MONTH
5

MONTH
6

•

©projected asset/liability mix as much as practically
possible to reduce our negative repricing gap position.
Whatever future mix is projected, the individual ac
counts must sum up to the total asset and total deposit
amounts we had projected earlier.
•
Let’s examine a single line item to see how this pro
cess is done. For U.S. government securities, we cur
rently have $5,716,000 on the books (Figure 5). Re
member, we also had $500,000 due within 30 days. If
we did nothing with this account, by the end of the
• first projected month we would have $5,216,000 in the
account because $500,000 of U.S. governments are ma
turing within 30 days. But notice in Figure 13, we pro
jected total assets to increase from $50,736,000 on the
current balance sheet to $51,110,000 by the end of the
• next month. If we choose to do nothing with the U.S.
government securities, our growth must come from in
creases in other asset categories. Thus, we must look
to each of the other asset and liability accounts to yield
the total assets and deposits projected by the end of
• t h e next month.
Each balance sheet account (and thus the projected
asset/liability mix) may be projected in one of two
ways:
1) Project the balance in each account in each projec® tion period similar to projecting total assets and to
tal deposits. For example, if we project a balance of
$5,500,000 in municipals at the end of Month 1, we
must purchase $569,000 of municipals during
^
Month 1. This amount is determined as follows:
Balance at current month
$5,131,000 (From Figure 5)
Municipals maturing in Month 1
200,000 (From Figure 5)
Municipals at end of Month 1
(assuming we do nothing)
$4,931,000
5,500,000 (From Above)
Desired balance at end of Month 1
Purchase requirement for Month 1 $ 569,000

Note the purchase of $569,000 would be at an aver
age rate of 7.5% (from Figure 12 ). Thus, you can see
how future purchases are tied in with future rates.
2 ) Project the purchases for each account in each
projection period. This method is the reverse of

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FIGURE 13
GROWTH AND BUDGET ITEMS
SAMPLE BANK U.S.A.
FIGURES ARE IN THOUSANDS
DESCRIPTION
TOTAL ASSETS

CURRENT
MONTH

MONTH
1

MONTH
2

MONTH
3

*50,736 *51,110 *51,300 *51,380 *51,600 »51,730 *52,050
44,446

44,680

44,750

44,900

45,200

45,300

45,550

NON-INTEREST INCOME ITEMS:
Loan/Fee Incoie
Trust Incoie
Other Incoie

13
2
11

14
2
11

15
2
11

15
2
12

NON-INTEREST EXPENSE ITEMS:
Salaries t Mages
Data Processing
Occupancy Expense
Advertising l Marketing
Dther Expenses

53
12
30
6
45

53
12
30
7
46

53
12
30
7
47

53
12
30
7
48

53
12
30
7
49

55
12
30
7
50

TOTAL DEPOSITS

method 1 above. Here you would purchase $569,000
of municipals in Month 1 to attain a computed end
ing balance of $5,500,000.
When you begin to do this for each account, you
quickly see the volume of data required for ALM. We
believe this process is necessary because you cannot
manage what you don’t know. Fortunately, computers
eliminate a large portion of the computations and re
cord keeping.
If we want to reduce our negative gap positions be
cause rates in our example are expected to rise, we
must project increases in short-term assets and long
term liabilities to the extent practically possible.

The Projected Financial Statements
We now have the essential elements for projecting
our financial statements:
• The current balance sheet amounts and rates
(Figures 3, 5, and 7)
Northwestern Banker, December, 1984

16
FIGURE 14

CURRENT AND FIRST PROJECTED MONTH
SAMPLE BANK U.S.A.
FIGURES ARE IN THOUSANDS
CURRENT
MONTH

ASSET DESCRIPTION
CASH

DUE FROM BANK

MONTH
1

LIABILITY

AMOUNT:
RATE:

2,418
O.OOZ

2,450
O.OOZ

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

5,716
10.751
4,932
11.122
5,131
6.571
2,745
9.551

5,216
10.B5Z
5,000
11.10Z
5,500
6.75Z
2,875
9.50Z

AMOUNT:
RATE:

18,524
9.511

18,591
9.50Z

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

7,533
14.251
2,513
13.BOI
5,241
14.351
7,232
14.50Z
2,560
12.25Z
2,340
13.33Z
(300)
O.OOZ

7,575
13.75Z
2,525
14.OOZ
5,344
14.35Z
7,325
14.50Z
2,575
12.40Z
2,370
13.75Z
(330)
O.OOZ

AMOUNT:
RATE:

27,119
14.18Z

27,3B4
14.132

AMOUNT:
RATE:
AMOUNT:
RATE:

1,350
O.OOZ
1,325
O.OOZ

1,325
O.OOZ
1,360
O.OOZ

SUBTOTAL OTHER ASSETS AMOUNT:
RATE:

2,675
O.OOZ

2,685
O.OOZ

CAP. STOCK

50,736
11.05Z

51,110
11.02Z

TOTAL LIAB.

11.05Z
6.17Z

11.02Z
6.12Z

4.B8Z

4.90Z

EQUITY DESCRIPTION

DDA'S
NOW ACCOUNTS

U.S. GOVERNMENT'S
AGENCY ISSUES
MUNICIPAL'S
FED FUNDS SOLD
SUBTOTAL INVESTMENTS
COMM. LOANS-VARI ABLE
COMM. LOANS-FIXED
AGRI LOANS
INSTALLMENT LOANS
REAL ESTATE LOANS
OTHER LOANS
ALLOW FOR LOAN LOSS
SUBTOTAL LOANS
FIXED ASSETS
OTHER ASSETS

TOTAL ASSETS

SAVINGS
MONEY MARKET ACCOUNTS

DIFFERENCE (SPREAD)

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8,250
O.OOZ
7,340
5.25Z
5,635
5.50Z
3,785
9.55Z

MONTH
1
8,300
O.OOZ
7,240
5.25Z
5,745
5.50Z
4,000
9.50Z
-

25,010
4.23Z

25,285
4.26Z

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

5,450
10.00Z
5,435
10.25Z
4,278
12.45Z
2,895
11.OOZ
1,378
8.90Z

5,400
9.80Z
5,300
10.22Z
4,465
12.25Z
3,125
10.80Z
1,105
8.75Z

AMOUNT:
RATE:

19,436
10.68Z

19,395
10.58Z

TOTAL DEPOSITS

AMOUNT:
RATE:

44,446
7.05Z

44,680
7.OOZ

FED FUNDS PURCHASED

AMOUNT:
RATE:
AMOUNT:
RATE:

0
9.55Z
2,450
O.OOZ

0
9.50Z
2,530
O.OOZ

HONEY MARKET CD'S

30 MONTH CD'S
CD'S > $100,000
OTHER CD'S
—

SUBTOTAL CD'S

OTHER LIABILITIES

WEIGHTED AVG. RETURN ON ASSETS
WEIGHTED AVG. COST ON FUNDS

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

SUBTOT. DDA'S AND SAV. AMOUNT:
RATE:

6 MONTH CD'S

AMOUNT:
RATE:

CURRENT
MONTH

—

SUBTOTAL OTHER LIAB.

—

— ----------- --

AMOUNT:
RATE:

2,450
O.OOZ

2,530
O.OOZ

RET. EARN. AMOUNT:
RATE:

3,840
O.OOZ

3,900
O.OOZ

50,736
6.17Z

51,110
6.12Z

EQUITY

AMOUNT:
RATE:

17
4)

FIGURE 15
BALANCE SHEET BROKEN OUT BY REPRICING
SAMPLE BANK U.S.A.
END OF THE FIRST MONTH
FI6URES ARE IN THOUSANDS

NONTH
1

ASSET DESCRIPTION
CASH R DUE FROM BANK

NONTH
2

NONTH
3

NONTH
4

NONTH
5

NONTH
6

AFTER
NONTH 6
2,450
0.001

AHQUNT:
RATE:

TOTAL
LIABILITY l EQUITY DESCRIPTION
2,450
0.001

U.S. GOVERNMENT S
AGENCY ISSUES
MUNICIPAL'S
FED FUN05 SOLD

SUBTOTAL INVESTMENTS

AN0UNT:
RATE:
AN0UNT:
RATE:
AN0UNT:
RATE:
ANOUNT:
RATE:

2, B75
9.501

AnOUNT:
RATE:

2,975
9.591

ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:

7,575
13.751
375
13.801
375
14.351
G50
14.101
50
10.551
230
13.151

ANOUNT:
RATE:

9,255
13.771

100
1 2 .2«

800
11.501
218
11.751

1,018
11.551

400
12.401
275
12.141

675
12.291

345
10.651

400
11.641
600
10.201
323
6.231

1,323
9.671

100
10.741

3,516
10.441
3,462
11.151
5,177
6.781

5,216
10.851
5,000
11.101
5,500
6.751
2,875
9.551

12,155
9.081

18,591
9.501

690
14.011
2,231
14.491
3,445
14.781
2,275
12.641
971
14.421
(3301
0.001

7,575
13.751
2,525
14.001
5,344
14.351
7,325
14.501
2,575
12.401
2,370
13.751
(330)
0.001

COIW. LOANS-FIIED
_

A6RI LOANS
INSTALLMENT LOANS
REAL ESTATE LOANS
OTHER LOANS

ALLOW FOR LOAN LOSS

SUBTOTAL LOANS

415
13.851
455
14.251
650
14.251
50
10.551
230
13.151

1,800
13.911

325
14.001
455
14.201
645
14.201
50
10.551
234
13.151

1,709
13.911

175
14.201
650
14.251
645
14.251
50
10.551
240
13.251

1,760
14.001

225
14.101
775
14.181
645
14.351
50
10.551
235
13.401

1,930
14.041

320
14.201
403
14.331
645
14.351
50
10.551
230
13.601

1,648
14.101

9,2B2 27,384
14.621 14.131

OTHER ASSETS

SUBTOTAL OTHER ASSETS

TOTAL ASSETS

ANOUNT:
RATE:
ANOUNT:
RATE:

1,325
0.001
1,360
0.001

ANOUNT:
RATE:

2,685
O.OOI

2,685
0.001

26,572
9.261

51,110
11.021

ANOUNT:
RATE:

12,230
12.751

2,818
13.061

2,384
13.451

2,105
13.451

3,253
12.261

1,748
13.901

• Our projections of interest rates (Figure 12)
• Our projected growth for the bank (Figure 13)
• Our projected asset/liability mix
0
Thus, we can project balance sheets and income
statements. We can also determine the projected bal
ance sheet rates since they are a weighted-average of
what currently exists on the books and have not re
priced, and new additions to the balance sheet at the
0 new projected rate.
Figure 14 shows a comparison of the current balance
sheet and a projected balance sheet one month from
now. Notice that the U.S. government securities bal
ance declined by $500,000 while the weighted-average
0 r a te rose to 10.85%. The increase in the weightedaverage rate results because $500,000 of 9.45% securi
ties matured (rolled off the books) in Month 1 (see
Figure 5) leaving the remainder of the portfolio at a
rate of 10.85%.
•
Also, notice how the other balances and rates have
changed. The changes are a result of our desired
growth, projections of rates, and desired A/L mix.
We could extend our projections for one year and
also include an income statement. This would give us
0 an Action Plan and a possible budget for our budget/
profit planning process.

The Future Gap
^

Once we have made our projections for each account
in each period, the future or dynamic gap positions can

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Federal Reserve Bank of St. Louis

NONTH
5

NONTH
6

AFTER
NONTH 6

SUBTOT. D D A S AND SAV. ANOUNT:
RATE:

4,000
9.501

21,285 25,285
3.271
4.261

ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:

5,400
9.801
900
10.201
1,568
12.101
450
11.401
1,105
8.751

900
10.201
196
14.001
550
11.451

900
10.251
225
13.931
600
10.501

900
10.301
200
13.451
900
10.501

865
10.151
200
13.451
625
10.551

835
10.101
200
13.451

1.B76
11.601

5,400
9.801
5,300
10.201
4,465
12.251
3,125
10.811
1,105
8.751

ANOUNT:
RATE:

9,423
10.171

1,646
11.071

1,725
10.821

2,000
10.711

1,690
10.691

1,035
10.751

1,876
11.601

19,395
10.581

TOTAL DEPOSITS

ANOUNT:
RATE:

13,423
9.971

1,646
11.071

1,725
10.821

2,000
10.711

1,690
10.691

1,035 23,161 44,680
3.941
7.001
10.751

FED FUNDS PURCHASED

ANOUNT:
RATE:
ANOUNT:
RATE:

0
9.551
2,530
0.001

ANOUNT:
RATE:

2,530
0.001

CAP. STOCK l RET. EARN. ANOUNT:
RATE:

3,900
0.001

NONEY NARKET ACCOUNTS

HONEY NARKET CD'S

30 NONTH CD'S
CD'S > $100,000
OTHER CD S

SUBTOTAL CD'S

SUBTOTAL OTHER LIAB.

TOTAL LIAB. 1 EQUITY

ANOUNT:
RATE:

8,300
0.001
7,240
5.251
5,745
5.501

TOTAL

4,000
9.501

SAVINGS

OTHER LIABILITIES
FIXED ASSETS

NONTH
4

8,300
0.001
7,240
5.251
5,745
5.501
4,000
9.501

6 NONTH CD'S
CONN. LOANS-VARIABLE

NONTH
3

ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:
ANOUNT:
RATE:

DDAS
NON ACCOUNTS

NONTH
2

NONTH
1

13,423
9.971

1,646
11.071

1,725
10.821

2,000
10.711

1,690
10.691

1,035 29,591 51,110
10.751
3.091
6.121

FIGURE 16
REPRICING GAP AND CUNULATIVE GAP NEASUREHENTS
SANPLE BANK U.S.A.
END OF THE FIRST NONTH
FIGURES ARE IN THOUSANDS

DESCRIPTION

NONTH
1

nONTH
2

NONTH
3

NONTH
4

NONTH
5

NONTH
6

AFTER
NONTH 6

TOTAL

11 ASSETS CONING DUE:

12,230.

2,818

2,384

2,105

3,253

1,748

26,572

N/A

2) LIABILITIES CONING DUE:

13,423

1,646

1,725

2,000

1,690

1,035

29,591

N/A

3) REPRICING SAP POSITION 11 - 2)

(1,193)

1,172

659

105

1,563

713

(3,019)

N/A

41 CUMULATIVE GAP POSITION

(1,193)

638

743

2,306

3,019

(21)

N/A

then be computed. Future gap is a measurement of the
“gap” on the projected balance sheets.
Let’s look at an example. Based on our projections
of growth, interest rates, and asset/liability mix, we
projected a balance sheet for Month 1 as shown in
Figure 14. We can now measure a repricing gap posi
tion on this projected balance sheet as shown in
Figures 15 and 16. Notice the 30-day repricing gap
position. It is different from the current 30-day posi
tion calculated in Figure 7. This results because our
projected growth, asset/liability mix, etc. influence the
projected gap positions.
Obviously, we have more control over certain asset
A/L MANAGEMENT . . .
(Turn to page 57, please)
Northwestern Banker, December, 1984

ABA President Jim Cairns (center) and ABA Ag Division Chairm an Al Tubbs (right) present
Fred Greer, sr. v.p., Citizens and Southern Natl. Bk., A tlanta, w ith the Eagle Award. This
award recognizes Mr. G reer’s past c o n trib u tio n s to a g ricu ltu ra l banking and to the ABA Ag
Division.

Ag Lenders Meet in Kansas City
By STEVE BURCH
Associate Publisher
HE 1985 FARM Bill, deteriora nue bonds issued by state and local
ting farm credit conditions, debt governments. “The benefit of diver
restructuring and the effects of the sification is the spreading of risk,
federal budget deficit were among which is the first principle of pru
the topics to draw the most atten dence in any financial business. By
tion during the American Bankers spreading these risks, banks can be
Association National Agricultural made stronger financial institutions
Bankers Conference held in Kansas and in turn be a source of strength
City last month. “We look for this to the community,” he concluded.
conference to serve as a bridge to the
During the conference the nearly
future and to provide innovative 1,000 bankers in attendance met in
solutions to the financial stresses an issues forum to develop a consti
plaguing our industry,’’ challenged tuency consensus on credit related
Conference Chairman Al Tubbs, provisions of the 1985 Farm Bill.
president of First Central State The bankers agreed unanimously
Bank, DeWitt, Iowa. As a demon that the majority of all agricultural
stration of that commitment to the financial stresses could be linked di
future of agriculture, Mr. Tubbs pre rectly to the huge federal budget de
sented a $3,500 check to Future ficit. Resolutions were drafted and
Farmers of America President Steve sent to both the administration and
Meredith on behalf of the ABA Ag congress calling for a reduction in
Division.
Newly-elected ABA President
Jim Cairns told the bankers that as
they had helped to build their rural
communities in the past, they now
are faced with the responsibility of
helping to reshape the communities
to ease the transition brought about
by the restructuring of agriculture.
To do this he emphasized the need
for expanded banking powers. “Ad
ditional sources of income and more
flexible rules governing the way we
are allowed to do business are per
haps the keys to playing a positive
role in community leadership.” He
referred specifically to the need to U.S. Senator Mark Andrews, R-ND, ad
provide insurance and securities pro dresses bankers during conference lun
ducts and the underwriting of reve cheon.

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

the deficit. The forum also recom-^
mended four proposals aimed at re
ducing government involvement in
agricultural commodity and credit
markets. 1.) Due to existing inef
ficiencies in FmHA lending, th e ^
forum called for reductions in gov
ernment lending and increases in
FmHA guarantees. This would
make it possible for private sector
lenders to handle a larger share oi0
the credits temporarily not bankable
on their own merit. 2.) As high com
modity reserve levels have resulted
in roadblocks to marketing efforts,
the forum called for substantial re- 0
ductions in commodity reserves. 3.)
The bankers also called for an end to
interest rate subsidies on storage fa
cility loans. 4.) And finally, the
forum recognized the need to move#
toward a free market and called for
the restructuring of target price sup
ports an loan levels.
The results of the 1984 ABA Agri
cultural Credit Survey were sum-#
marized by William Herr, chairman,
Agribusiness Economics Depart
ment, Southern Illinois University.
The survey shows that while 12 per
cent of the agri-bankers reported in-#
creases in the overall quality of their
farm portfolio, 60 percent reported a
decrease with 12 percent citing no
change. The bankers discontinued
3.4 percent of their ag borrowers in®
1984 and 3.6 percent of the farmers
in their trade area went out of busi
ness while another 2.6 percent went
through bankruptcy. While these
measures may seem disturbing, Mr.®
Herr points out that they do not rep
resent a significant increase over the
past three years. “This no doubt is
due in part to the continuing efforts_
of farm borrowers and their lenders®
to restructure the financial organiza
tion of many farms and thereby con
tain the more serious symptoms of
financial distress.”
^
Other major findings of the sur
vey include: 1.) Demand for credit is
strongest for operating loans and
those secured by farm real estate.
For other types of loans—machine-^
ry, livestock, crop storage—morew
bankers report declines than report
increases. This pattern is expected
to continue in the current year end
ing mid-1985.
q
2.
) Ag bankers report that avail
able loan funds are ample. Over onehalf reported their bank’s own funds
exceeded demand for loans.
3.
) At mid year, interest rates o n ^
bank farm loans averaged 14.4 per-

LEFT— Nebraska Bankers A ssociatio n President Skip Hove welcom es Kent Warneke, Omaha W orld Herald; Gary Wrage, chmn., Roseland
St. Bk., and NBA Executive D irector Stan Matzke to the NBA reception. RIGHT— ABA Ag Division Chairm an AI Tubbs, pres., First Central
St. Bk., DeW itt, visits w ith conference speaker Mike Boehlje, professor, Iowa State Univ., and Wes Ehrecke, ag director, Iowa Bankers As
sociatio n during the annual IBA ag breakfast.

LEFT—Tim Taylor, pres., First Am erica Bk., H olland, Mich.; Oliver Hansen, pres., Liberty Tr. & Sav. Bk., Durant, la.; Mike Fitch, v.p., W ells
Fargo Bk., San F rancisco, and C onference Chmn. AI Tubbs p a rticip a te in panel analyzing cred it related provisions of 1985 Farm Bill.
RIGHT— Ag C om m odities o u tlo o k panel Included Harold Heinold, chmn., Heinold C om m odities; Topper Thorpe, gen. mgr., C attle Fax, and
John Marten, econ., Farm Journal Magazine.

LEFT— Dan Hermesch, a.v.p. Citizens St. Bk., Hiawatha, Kans., visits w ith Glenn Burmeister, pres., Hom estead Mgmt. Systems, Des
Moines, la., in exh ib it area. RIGHT— M anning the N ational Bank of W aterloo exh ib it were Dave Anderson, pres., Rec-Chek, Nevada, la.,
and Willis Crees, sr. v.p., and LeRoy Bell, data process, off., both w ith Natl. Bk. W aterloo.

cent. This was about .8 percent
higher than in mid-1983. At the time
of the survey more ag bankers ex
pected interest rates to firm than
the number expecting rates to de
cline.
4.) Farmland values declined on

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

average by more than 15 percent be
tween mid-1983 and mid-1984. Fur
ther declines are expected in the cur
rent year, however, the rate is ex
pected to slow to eight percent.
A highlight of the conference was
a panel discussion among the editors

of U.S. News & World Report maga
zine. Panel members were Managing
Editor Lester Tanzer and Deputy
Editors John Gibson and Gerald
AG LENDERS . . .
(Turn to page 21, please)
Northwestern Banker, December, 1984

HOSTS for the First National C hicago Conference included, in left photo (I. to r.): James K. Suhr, sr. v.p./head, U.S. Financial In stitu tio n s
Group; Barry F. Sullivan, chmn. & ceo, and Thomas M. King, v.p./head, C om m unity Banking In s titu tio n s Division. RIGHT— Another host
was Philip H. Britt (standing center), v.p./head M idwest Financial In s titu tio n s Division, pictured w ith speakers J. Lynn Aylsworth (left), srW
v.p./head, U.S. C apital Markets Group, and Stephen C. Diamond (right), sr. v.p./head, Asset Based Finance Group.

At First National Chicago Conference:

Speakers Predict Steady Growth in ’85
senior vice president and head of the
U.S. Financial Institutions Group.
After reviewing briefly the program
ONTINUED growth at a slower format for the day, Mr. Suhr an
pace in 1985 was the general nounced that First National, which
consensus of speakers at the First has specialized for some years in as
National Bank of Chicago’s 38th sisting its correspondents with stra
Annual Conference of Bank Corres tegic planning, will offer a workshop
pondents held at the Chicago Mar title d “ S tra te g ic Leadership:
Through Planning and Implementa
riott Hotel last month.
In addition to expressing support tion” on three separate occasions in
for a slower, continued rise in econo January and February, 1985.
These workshop for midwest bank
mic activity, the speakers, all of
ficers of the host bank, gave speci CEOs, he said, are being offered for
fics on various Market Oulooks, The banks up to $500 million deposit size
Capital Ratio Challenge, and a series to assist them in sharpening the
of five workshops aimed at utilizing bank’s strategic planning process by
means of a practical, workbook ap
and profiting from bank services.
Most registrants arrived on Sun proach developed from First Na
day and were guests for a reception tional’s own experience. Midwest
hosted in First National Bank’s bank CEOs were being notified of
headquarters building. The follow the coming workshops by a mailing
ing morning, bankers were wel shortly after the Conference.
Dr. Roy E. Moor, senior vice presi
comed formally by Chairman Barry
F. Sullivan, and by James K. Suhr, dent and chief economist, expects
By BEN HALLER, JR.
Publisher

business loan demand to be up about
15% over 1984, “driven mainly by
the need for expansion and moderni-#
zation.” He added these qualifica
tions: 1. Growth is seen mainly in
small and medium size companies. 2 .
The mix of business in this loan de
mand is cloudy. 3. One factor for all®
debtors to consider is the foreign
deficit. 4. Increased toughness of
foreign competition, even with a
modest decline in dollar value.
He described the ag picture a^®
“almost unremittingly weak. I anti
cipate no government program that
will help the ag sector.” He said
foreign market share in agriculture
will continue to decline. His forecast^
a year ago for a 9% growth of con
sumer demand in 1984 was accur
ate—his 1984 forecast is for a 5%
growth. “People are paying off theii^
debts,” he added, “and householcP
balance sheets are improving.”
In the deposit battle, Dr. Moore
sees continued competiition for indi
vidual use of funds, indicating “fu r^
ther pinching of interest r a t ^
spreads in 1985 and the need for fur-

Roob

LEFT— Mr. Suhr (standing) introduced the Market O utlooks Panel. From left, they are: Edward M. Roob, sr. v.p./chmn., A/L Mgmt. Comm.;
Dr. Roy E. Moor, sr. v.p./head/chief econ., econom ics dept.; Nicholas J. De Leonardis, v.p./chmn., money comm., m unicipal fin. div., and
Walter C. Bean, v.p. & tr. inv. off. and dir. of equities. RIGHT— Luncheon speaker Thomas J. Peters (center), is flanked by E. Neal Tro gd o ^
(left), sr. v.p., and George L. Davis (right), exec, v.p./head, U.S. banking dept.

DigitizedNorthwestern
for FRASERBanker, December, 1984
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Federal Reserve Bank of St. Louis

^
w

ther cost containment.” Personnel
cost increases that he forecast accur
ately a year ago as 4.5% for 1984
will be the same for 1985, he said.
He sees the Fed as continuing its
fight against inflation, but with sen
sitivity to the recovery pattern.
‘‘Now we can trace out the conse
quences to our industry,” Dr. Moor
said. ‘‘First, Tighten down. 2. Scru
tinize loan quality. 3. Look to new
production and markets. 4. Expand
our own bank inter-personal rela
tionships to maximize the benefits
of each other to all banks.”
Other Bank Speakers
Nicholas J. De Leonardis, vice
president and chairman of the
money committee in the municipal
finance division, used a series of
charts to emphasize certain factors
that must be considered in evaluat
ing the bond market outlook. One
showed the relationship of the fed
eral deficit to GNP and savings;
another showed state and local gov
ernment credit demands continuing
level at $17 billion—unchanged,
while yet another showed the shift
of corporate short-term debt to long
term debt as 0.55% in November
‘71, 1.07% in November, ‘84 and
forecast as 1.19% November ‘85.
Walter C. Bean, vice president
and head trsut investment officer,
described the mix of stocks and
bonds utilized for various accounts.
F. Gerald Byrne, vice president
and section head of the financial
markets division, is in charge of
world-wide funding operations for
First National. He sees credit de
mand as high, but abating to some
degree. Money growth rate will be
below target by the end of ‘84, and
the Fed’s response will be steady as
you go with a Fed Funds rate of 9 to
9%%.
William J. McDonough, executive
vice president and chief financial officer of First National, discussed
‘‘The Capital Ratio Challenge.” He
said ‘‘the attitude that capital ade
quacy should be determined by what
meets minimum requirements of law
is dead wrong.” Through a series of
charts, he examined the deteriorat
ing quality of loans as reflected by
statistics for seven bank group sizes
showing chargeoffs, nonperforming
loans and inability to generate capi
tal internally, all of which give regu
lators plenty of cause for concern re
garding the risk to depositors. (His
talk will be reviewed in detail in the
next issue.)

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Federal Reserve Bank of St. Louis

Luncheon Speaker
Luncheon speaker was Thomas J.
Peters, author of In Search of Excel
lence, who is president of The Palo
Alto Consulting Center and lecturer
at the Stanford Graduate School of
Business. He has authored a new
book, The Passion for Excellence:
The Leadership Difference, which
will be available next April. Mr.
Peters used several examples,
backed up with slides, to portray
people and cities who have accom
plished a turnaround by exhibiting
qualities of leadership.
One slide said Leadership should
be: cheerleader, enthusiast, nurturer, coach and facilitator, and it
should not be: cop, referee, devil’s
advocate, naysayer or pronouncer.
He also advocated MBWA—Manag
ing By Wandering Around . . ” there
is no excuse for any senior manager
being in his office more than 25% of
the time. What do you do when in
the office? Write memos that take
up the time of people out there doing
the work! So, at least when you’re
out wandering around you’re not
creating confusion.”

Mr. Peters said ‘‘the absolutely
distinctive, successful people h a v e passion, zest, trust, care, listening
ability—that seem to have gotten
lost in the last 20 years.”
A series of concurrent workshops
were conducted throughout the af
ternoon session. The Conference was
concluded with the annual banquet,
with the closing address given in in
teresting, and his usually perceptive
style by the well-known TV broad
cast journalist, David Brinkley. □

10th Fed Elects Directors
Three men, two from Denver and
one from Manhattan, Kan., have
been elected to the board of direc
tors of the Federal Reserve Bank of
Kansas City (10th Fed).
The three—Ralph F. Cox, chief op
erating officer-resources and a board
member of Atlantic Richfield Co.,
Denver, Donald D. Hoffman, chair
man and CEO of Central Bank of
Denver, and Duane C. Acker, presi
dent of Kansas State University in
Manhattan—were elected in mail
balloting that ended November 20.

Ag Lenders Meet . . .
(Continued from page 19)
Parshall. In reflecting on the magni civil service pensions and Medicare
tude of the presidential election benefits. ‘‘Clearly, cuts in Social Se
landslide, Mr. Tanzer observed, curity benefits will be off-limits.”
‘‘In God We Trust...It’s the Fed
“ ... and God so loved the Republi
cans that he sent them Walter Mon eral Reserve That We’re Not Too
dale.” The panel agreed that Presi Sure About,” was the phrase used
dent Reagan’s priorities for his se by the panel to address expected
cond term will be his determination monetary policy during the coming
to shrink the size of the federal gov months. Chairman Volcker wants to
ernment; his desire to be remem keep the current economic recovery
bered as the president who whipped going at all costs with the exception
inflation and kept it whipped; and as of a return to high inflation and the
the president who restored U.S. mili panel forecasted a continued four
tary might, and finally the president percent rate of inflation.
‘‘Options on Beans for People
is determined to negotiate an arms
Who Don’t Know Beans About Op
pact with the Soviet Union.
The panel also agreed that Presi tions,” was just one of the 25 con
dent Reagan will enjoy a six month current sessions presented during
honeymoon period with the new the conference. Other topics ranged
Congress and then will be forced to in subject matter from microcom
go over the head of Congress and di puter applications and debt restruc
rectly to the people for support on turing to learning how to deal with
the major legislative goals of the ad emotional stresses of customers.
The conference concluded with a
ministration. The panel reported
that the ‘‘smart money” in Wash commodities outlook panel chaired
ington is betting on a slight tax in by Orion Samuelson, vice president,
crease combined with spending cuts WGN Radio and Television Chicago.
to be initiated soon in response to Panel members included: Harold
the damaging effects caused by the Heinold, Heinold Commodities;
federal budget deficit. They expect a John Marten, Farm Journal Maga
package of budget cuts that will zine, and Topper Thorpe, Cattle□
cover such areas as farm programs, Fax.
Northwestern Banker, December, 1984

FBS Forms Brokerage
Services Subsidiary
First Bank System, Inc., Minnea
polis has filed applications with the
Securities and
Exchange Com
mission, the Na
tional Associa
tion of Securities
D e ale rs
and
other applicable
regulatory au
thorities to oper
ate its discount
brokerage activi
ties as a broker/
dealer subsidiary.
The new subsidiary will be known
as FBS Brokerage Services, Inc. and
will be a NASD member with re
gistered stockbrokers distinguish
ing it from other locally-based bank
discount brokerage operations that
now exist in the Upper Midwest.
FBS Brokerage Services will offer
its services through First Banks in
Minnesota, Montana, North Dako
ta, South Dakota and Wisconsin.
John Michael Riley, who has over
23 years of experience in banking
and brokerage activities, will
become president and chief ex
ecutive officer of FBS Brokerage

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Federal Reserve Bank of St. Louis

Services. Prior to joining First Bank
System, Mr. Riley was vice presi
dent of Marine Midland Bank in
New York heading its discount
brokerage activities. He has also
managed the discount brokerage ac
tivities of The Society Banks, Ohio,
which grew to become one of the
largest bank discount brokerage
operations in the United States.

HEMAR Issues $817 Million
In Student Loan Insurance
The nation’s largest private guar
antor of student loans has issued in
surance on student loans worth
more than $817 million in its fiscal
year ending September 30, Richard
C. Hawk, chairman of the Higher
Education Management and Re
sources (HEMAR) Foundation, an
nounced recently.
The Higher Education Assistance
Foundation guaranteed loans worth
$817,147,860 in the previous 12month period. The total represents
349,078 loans to students and their
parents across the country and a
44% increase in dollar volume over
the amount of loans guaranteed the
preceding year.
“The Guaranteed Student Loan

Program is by far the largest source
of financial aid for students today —
up to 42.9% according to the most
recent figures from the College
Board,” said Mr. Hawk.
Other federal programs provided
28.2% of student financial aid in the
1983-84 school year, Mr. Hawk said,
with 15.5% coming from colleges
and universities, 6 .6 % from state
grants and 6 .8 % from Veterans
benefits.
Through its relationships with
2,000 financial institutions nation
wide, the HEMAR affiliate guaran
tees repayment of the loans made by
the financial institutions under the
federal Guaranteed Student Loan
Program.
HEAF’s promose of repayment to
the financial institutions is backed
by the organization’s $45 million
Guarantee Fund which has grown
every year since it was created in
1977.
Under the Guaranteed Student
Loan Program, students enrolled in
eligible post-secondary institutions
— including colleges, universities,
vocational or technical schools —
may borrow up to $2,500 per year
($12,500 total) as undergraduates
and up to $5,000 per year ($25,000
total) as graduate students from a

23
participating lending institution or
program.

Sallie Mae Introduces Microcomputer
Student Loan Management System

EMC Group Shows Gains

HE Student Loan Marketing
T
Association (Sallie Mae) is now
offering a new microcomputer-based

Net income for EMC Insurance
Group Inc., Des Moines, for the
third quarter of 1984 amounted to
$776,000, up $823,000 from a loss of
$47,000 for the third quarter of 1983.
Net income per share for the quar
ter was 13 cents, compared with a
one cent loss for the third quarter a
year ago.
For the nine month period ended
Sept. 30, 1984, net income was
$3,198,000 (53 cents per share), up
13% from the nine month total of
$2,830,000 (47 cents per share) in
1983.
The increase in net income for the
first nine months of this year re
sulted primarily from earnings con
tributed by the company’s reinsur
ance, non-standard risk auto, and
life insurance subsidiaries, as well as
some improvement in property and
casualty operation in the third quar
ter.
Assets of EMC Insurance Group
Inc. as of Sept. 30, 1984, totaled
$176,212,000, having increased
$17,260,000 during the first nine

student loan management system
designed to increase the efficiency
and profitability of the student lend
ing operations of banks and other in
stitutions.
Dennis A. Kernahan, senior vice
president, marketing, said, “Based
on Sallie Mae’s experience as the na
tion’s largest investor in Guaran
teed Student Loans, we are now pro
viding lenders with an inexpensive,
stand-alone microcomputer system
for automated student loan process
ing.’’ The Portfolio Sales and Ser
vicing System (PortSS) allows
lenders to process loans more effimonths from $158,952,000 at Dec.
31, 1983.
The increase in assets was mainly
attributable to additional reinsur
ance business transferred to the re
insurance subsidiary from Employ
ers Mutual Casualty Co., which
owns 92 percent of the stock of EMC
Insurance Group Inc.

ciently, reduce turnaround time and
respond more rapidly to customer
inquiries, he noted.
“ By enhancing productivity,
PortSS also can enable lenders to or
iginate and manage a larger volume
of student loans without having to
hire additional staff,” Mr. Kernahan
added.
Noting that the PortSS system
has been successfully piloted with
eight lending institutions around
the country, Mr. Kernahan said the
system will save lenders the cost of
designing their software system to
accommodate the unique character
istics of Guaranteed Student Loans.
He further noted that, because
PortSS runs on a microcomputer,
lenders using the system will not
need to tie up their mainframe com
puter complexes to process student
loans. PortSS is being offered na
tionwide by Sallie Mae in conjunc
tion with forward purchase com
mitments, under which the corpora
tion agrees to purchase student
loans from the originating lender
within a specified period of time.

Drovers Bank has ju st made discount
brokerage available to its correspondent bank
customers. This means fees generated for you,
and substantial savings for your customers.
And Drovers specialists can advise you how
to
IU market this new and valuable service in
your area.
Discount brokerage: another reason
Drovers is one of the fastest growing
correspondent banks in the
midwest.
Call John Crotty or Kathy Hardy at
midv
1-800-621-8991. In Illinois, 1-800-572-2498.
1-80C
Remember, fees for you, savings for your
customer. And it all starts with a phone call
to Drovers.

erase
V __ J

Drovers Bank of Chicago

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Federal Reserve Bank of St. Louis

47th & Ashland Avenue, Chicago, IL 60609 • 1-312-927-7000.
MEMBER FEDERAL RESERVE SYSTEM AND FDIC

Two Appointed at MFG

Elmhurst Executive Named
Walter S. Johnston has joined the
management staff of Elmhurst Na
tional Bank as a vice president - cor
porate banking division. Mr. John
ston will be responsible for servicing
the bank’s commercial loan portfolio
and assisting in the banks overall
expansion through loan origination
and new business development.
Mr. Johnston began his banking
career 14 years ago with Amalga
mated Trust and Savings Bank as a
credit analyst and since then has
also been with Beverly Bank, Lakeview Trust and Savings Bank, and
First National Bank of Chicago.

V.P. Appointed in Skokie
Phillip K. Duncan has been ap
pointed vice president, corporate
banking, at the Skokie Trust & Sav
ings Bank, announced LeRoy J. Plaziak, president.
In his new position, Mr. Duncan
will be responsible for the operation
of the corporate banking division.
He previously was at First Illinois
Bank of Evanston where he was vice
president, commercial loans.

Dixon Bank Receives
Added Capitalization
City Bank and Trust Company,
Dixon, which in mid-August was ac
quired by Premier Financial Ser
vices, Inc., Freeport, has announced
an additional $1.5 million in capital
funds has been provided by the new
ownership.
Announcement of the additional
capitalization was marked by a
media briefing at the bank on Nov
ember 13 featuring City Bank and
Trust Company President Marlin
Misner; Premier Financial Services
President Richard Geach, and
Richard W. Durkes, retiring chair
man of the board.
City Bank and Trust Company
has total assets of $50,000,000. Its
total deposits as of September 30,
1984 were $45,000,000.

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

Appointment of two officers to
the Midwest Financial Group, Inc.,
Peoria, staff was announced recent
ly by David E. Connor, president
and CEO.
Appointed were: Paul R. Arndt to
the newly created position of direc
tor of human resources; and, Ted C.
McNaney to loan administration of
ficer.
Mr. Arndt, a vice president of
Elected at Mid-City Natl.
Commercial National Bank of Peo
At Mid-City National Bank of ria, joined CNB in 1977 after serv
Chicago, John M. McKinley has ing as personnel and marketing di
been elected vice
rector of Toy National Bank in
p resid en t and
Sioux City, Iowa, for nearly 14
auditor and Wil
years.
liam M. Ogle
Before joining MFG in August,
was elected vice
Mr. McNaney was a bank consul
president and fa
tant specializing in loan review and
cility manager
loan workout functions. He also was
a t One E a s t
with First Trust and Savings Bank
Wacker Drive.
of Davenport, Iowa, for eight years,
A lso a t th e
serving first as vice president in the
Wacker Drive lo J.M. MC KINLEY
commercial loan department and
cation, Irene K.
later as executive vice president and
Wojtczak was named assistant vice member of the board of directors. He
president and assistant facility man has had extensive experience as a se
ager, and Jo Ann McCauley was nior examiner with the Iowa Depart
named loan officer.
ment of Banking.
Mr. McKinley joined the bank in
1980 as an auditor after seven years
as a senior auditor with Walter E.
Evanston Bank Joins
Heller.
Mr. Ogle joined Mid-City in 1983 Lenders Commitment Program
and formerly was vice president and
First Illinois Bank of Evanston
chief operating officer for a house has allocated loan funds for econom
hold chemical products manufac ic development as part of the Illinois
turer.
Lenders Commitment Program, anMs. Wojtczak has been with the nounced Howard B. Silverman, pres
bank seven years. Ms. McCauley ident and CEO.
joined the bank just this year and
The program will be administered
previously was an officer with the through the Illinois Department of
former United of America Bank.
Commerce and Community Affairs
and has commitments of more than
Amalgamated Addition Told $1 billion from nearly 300 financial
institutions in Illinois.
William J. Buckley, 56, has joined
Amalgamated Trust & Savings
Bank, Chicago,
Elmhurst Natl, to Obtain
as vice presi
$12MM
For Student Loans
dent, operations.
Mr. Buckley
Elmhurst National Bank will ob
joins A m alga
tain up to $12 million for student
mated from Con
loans it originates under a new com
tinental Bank,
mitment agreement from the Stu
Chicago, where
dent Loan Marketing Association
he has served in
(Sallie Mae) of Washington, D.C.
the area of oper
Sallie Mae officials estimate that its
a tio n s
since
commitment to the bank could facili
W.J. BUCKLEY
1970. A gradu
tate origination of nearly 5000 stu
ate of Quincy College, Chicago, Mr. dent loans over the next three years.
Buckley received his certificate from
Elmhurst National Bank will ob
the Graduate School of Banking, tain the funds by selling student
Madison, Wise., in 1976.
loans it makes to Sallie Mae.

•

25
as a teller in 1979. Ms. Green joined
the bank’s staff in 1966 as a book
keeper and eventually was named
bookkeeping supervisor. Ms. Porfilio
joined the Pembine-Wausaukee
bank in Crivitz in 1977 and was
named senior loan officer in March
of this year.

First Interstate to
Acquire Insurance Agency

to the office of president for the
Wisconsin Installment Bankers As
sociation.

The Gottsacker Insurance Agen
cy, Inc. and First Interstate Corpo
ration of Wisconsin, both headquar Edgerton Executive Named
tered in Sheboygan, have announced
Thomas O. Veum has been named
an agreement whereby First Inter
executive
vice president of First
state’s subsidiary, First Interstate
State
Bank
of Edgerton.
Bank of Wisconsin, would acquire
Mr. Veum joined the bank in 1971
the agency.
The agreement was announced as cashier, was elected to the board
jointly by David C. Beck, president in 1973 and was named vice presi
of First Interstate of Wisconsin, and dent in 1976.
Donald E. Huber, president of the
insurance agency. They indicated
that a definitive agreement had been Four Promoted at
reached between First Interstate Pembine-Wausaukee Bank
and the agency shareholders. Clos
Robert E. Gravelle, executive vice
ing under the agreement is condi president of the Pembine-Wausau
tional upon the completion of cer kee Bank, recently announced the
tain obligations of the agency. Wil promotions of four staff members.
liam A. Gottsacker, former principal
Louise M. Policello, named vice
owner of the agency, has brought a president, joined the Wausaukee
lawsuit to block its sale. The closing bank in 1975 and was named assis
will not take place until the lawsuit tant cashier in 1979.
is resolved in Sheboygan County
Circuit Court.
feMr. Beck said the potential acqui
ijli
sition would enable First Interstate Bllil
n
Bank to offer personal insurance
-3>
products through all of its banking
%
. Jm
outlets. The firm would remain an
independent agency, retaining all
contracts with insurance companies.
The agency would continue its pre
sent operation as a wholly-owned
L.M. POLICELLO
F.L. SCHMIDT
subsidiary of the bank, he said.

Menomonee Falls Banker
Named to WBA Committee
Alan J. Kunz, senior vice president/personal banking of F&M
Bank, Menomonee Falls, has been
named a member of the Wisconsin
Q Banking Education Committee of
the Wisconsin Bankers Association.
Mr. Kunz will also be serving as a
director of the Wisconsin Bankers
Association Consumer Lending
0 School.
Mr. Kunz also was recently elected

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Federal Reserve Bank of St. Louis

Independent Bankers
Elect New Officers
The Independent Bankers Associ
ation of Wisconsin recently elected
new officers at its annual meeting.
David Ballweg, president of Com
munity State Bank in Union Grove,
has been named association presi
dent. Vice president is Howard
Turk, president and CEO of Union
Bank of Blair. E. David Locke,
president and CEO of McFarland
State Bank, was appointed secre
tary-treasurer.

F&M Bank Introduces
Easy Equity Credit

F&M Bank of Menomonee Falls
has introduced a new product to its
marketplace. The new product is
named Easy Equity Credit and is a
credit program available to both
business and personal customers.
According to Richard P. Klug,
president of F&M Bank, Menomo
nee Falls, the product is unique in
that the equity used for the line of
credit can be any asset of an indivi
dual - or business. This could be Cer
tificates of Deposit, the home, life in
surance, or virtually any asset an in
dividual or business may have as an
investment, but cannot or should
not turn into cash at the time they
need money.
The Equity Credit line is ac
tivated by the customer writing a
check. Information on the account’s
activity is forwarded to the custo
mer on a monthly basis via a state
ment from the bank.
According to Mr. Klug, the line of
credit instrument, which can range
from $ 1,000 to $ 100 ,000 , was devel
oped through the joint efforts of sev
B. GREEN
J. PORFILIO
eral bank form experts in the state.
Named assistant cashiers were The representative of F&M Bank,
Fay L. Schmidt, Betty Green and Menomonee Falls, was Alan J.
Kunz, senior vice president - per
Janis Porfilio.
Ms. Schmidt started at the bank sonal banking division.
Northwestern Banker, December, 1984

Little bank, little bank
let me com e in
ven the three little pigs were sm art enough to know
that the wolf w asn’t m aking a social call when he
knocked on their doors. Are you?

At American, we have the resources to be your corre
spondent partner and the desire to help you succeed.
We do not use your m oney to com pete for your
custom ers.
W hen upstream correspondent banks knock on your
door, exam ine them carefully. Be sure to find out if
they’re there to help or to eat.

AMERI CAN
N A T I O N A L

Northwestern Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B A N K *

S A I N T

PAUL

Elected in Willmar

Dodge Center Bank Names
New President and CEO
4)

•

_
9

1979 graduate of the University of
Minnesota.

Brant Massman has been elected
assistant vice president in charge of
the agricultural lending department
of First Bank Willmar.
Mr. Massman joined the bank’s
staff in 1980 as a management asso
ciate, and has served as agricultural
lending officer since 1981.
Also announced at the bank was
the election of Ivan P. Kvam as a
member of the board. Mr. Kvam is
president of Kvam Implement, Inc.

John H. Rolf has been elected Brainerd Agency Honored
president of Norwest Bank Dodge For 50 Years of Service
Norwest Opens Ag Credit
Center. He suc
First American Agency of Brain Office in Fairmont
ceeds L. Ken
erd, the insurance agency for First
neth Erickson,
Norwest Agricultural Credit, Inc.,
American Bank of Brainerd, recent
previously presi
Minneapolis,
a unit of Norwest Cor
ly received a commemorative plaque
dent and CEO of
poration
specializing
in lending ser
honoring the agency for 50 years of
the bank, who
vices
to
agricultural
producers and
continuous service with the St. Paul
has accepted a
agribusinesses,
has
announced
the
Companies. Bob Daniels, represen
position as client
opening
of
branch
offices
in
Spencer,
tative for the St. Paul Companies,
ex ec u tiv e for
presented the plaque to Agency Iowa, and Fairmont.
western North
The company will provide lending
Manager Art Rinke, who has been
Dakota in Norservices,
including short term sea
J. ROLF
manager of the agency since 1967.
west’s financial
sonal loans, annual operating lines
institutions group. Edgar M. Morsof credit and intermediate term
man, Jr., president of Norwest Bank Promoted in Rochester
loans to qualified farmers, ranchers
Barbara A. Jacobson has been and businesses.
Rochester, will serve as CEO of the
Dodge Center Bank in addition to promoted to assistant vice president
Arlan Tengwall, chief executive
of First Bank
his duties in Rochester.
officer of the credit company, said
the two market areas were selected
Mr. Rolf, who will also serve as Rochester, ac
because each has a “solid agricul
chief operating officer in Dodge cording to Ran
tural production base.’’
Center, is a 1978 graduate of the dolph S. Koppa,
He said Norwest Agricultural
University of Minnesota. He started president. She
Credit will provide “attractive and
with Norwest at the Dodge Center began her bank
competitive financing,’’ emphasiz
bank in 1978, was named assistant ing career with
ing larger lines of credit and tailored
vice president in charge of loan ad First Bank Ro
to individual needs of producers and
ministration in 1980 and was pro chester in 1973
as a teller. Most
agribusinesses.
moted to vice president in 1982.
In addition to provision of credit,
Mr. Morsman has served as presi- recently she was B.A. JACOBSON
the new branches will provide custo
dent of Norwest Bank Rochester named manager
of First Bank’s Elton Hills office.
mer referral to a wide range of other
since 1982.
Norwest financial services, includ
Mr. Erickson, who has been presi Rochester Officer Elected
ing
leasing and estate planning, he
dent of Norwest Bank Dodge Center
Randy M. Olson has been elected said.
since 1980, will be headquartered in
credit review officer of Norwest
Named vice president and man
Bismarck, North Dakota.
Bank Rochester.
ager of the Fairmont office is Eliza
He will have re
beth Wohlenhaus
Johanson. She
sponsibility for
Two Join St. Cloud Staff
loan administra
previously was a
Zapp National Bank, St. Cloud, tion in Roches
vice president in
has announced the addition of Robert ter and will be
the agricultural
W. Treadway as commercial lending assistin g Nor
departm ent at
officer and Daniel Hesterman as west Banks in
Norwest Bank
loan review officer.
Red
W ing,
Mankato.
Mr. Treadway, a 1979 graduate of Dodge C enter
Norwest Agri
the University of Wisconsin, pre and Owatonna.
cultural Credit
R.M. OLSON
viously was associated with Farm He previously
opened similar
E. JOHANSON
ers Home Association.
was with First Bank in Austin and branch offices in
Mr. Hesterman previously held a prior to that was a bank examiner York and Lexington, Nebraska, last
similar position at Bank of Minnea for First Bank Systems in Minnea year in addition to its home office in
polis and Trust Company. He is a polis.
Sioux Falls, South Dakota.

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

F&M Marquette National Bank
has announced the promotion of
Richard B. Hume
to senior vice
president, man
ager of invest
m ents and a
member of the
m anagem ent
committee of the
bank. In addi
tion, Lance R.
Green
was
r . b . HUME
named vice pres-

L.R. GREEN

D.W. PETERSON

C. WHITEFORD

G.S. SCALIA

ident and marketing director; Wil
liam T. Bailey was named assistant
vice president, loan administration;
Duane W. Peterson, assistant vice
president, correspondent banking,
and Connie Whiteford and George S.
Scalia, trust officers.
Mr. Hume, whose responsibilities
will include the investment advisory
and bank advisory functions of Mar
quette Capital Management Cor
poration, most recently served as
vice president and senior trust offi

Northwestern
Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

cer for F&M Marquette National.
Mr. Green, 37, brings 17 years of
banking experience to F&M Mar
quette. Most recently he was re
gional vice president for Norwest
Bancorporation in charge of market
ing in northern Minnesota, north
west Wisconsin and the Upper
Peninsula of Michigan.
Mr. Bailey has served in various
positions for Marquette Bank and
its affiliates since 1966. Mr. Peter
son previously served as vice presi
dent at First National Bank of
Beresford, South Dakota.
Ms. Whiteford had been serving
as personal banking officer for the
bank. Mr. Scalia previously was
manager of the F&M Marquette
Brookdale branch office.
* * *

Succeeding Mr. Hearon as presi
dent of National City Bank is Walter
E. Meadley, Jr., who will also b e-^
come chief operating officer. Mr.
Meadley previously was executive
vice president of asset and liability
management.
Mr. Jacobs will continue as a di- 1|
rector of National City Bank and the
C. Bernard Jacobs, widely-known holding company.
Commenting on his retirement,
throughout the upper midwest for
Mr.
Jacobs noted, “There is a strong
the outstanding
management
team aboard that i s #
job he has done
fully competent to direct and imple
in building Na
ment the continued growth of the
tional City Bank
bank and the bank holding company
of Minneapolis
and it is time to turn over the reins
from its charter
of leadership to that group.’’
#
ing in 1964 to a
Mr.
Jacobs
was
instrumental
in
$415 million as
founding National City Bank in
set institution,
1964. He was its chief executive of
will retire De
ficer from the day it opened until
cember
31.
Mr.
_
_
T
,
, .
C.B. JACOBS
1982 when he became president and
Jacobs
is chair
chief
executive officer of the Bancor
man of the bank and is president and
chief executive officer of its holding poration. Under his leadership, Na
company, National City Bancorpo tional City Bank has grown to its
present position of in excess of $415
ration.
Lowell W. Andreas, chairman of million assets, the figure recorded
National City Bancorporation, will for 1983 year-end. It is now the sixth
assume the additional duties at the largest bank in the State of Minne
holding company as president and sota and one of the most profitable
banks in the upper midwest.
(
chief executive officer.
Mr. Jacobs moved to Minneapolis
James H. Hearon, III, has been
advanced to chairman of the bank in 1964 with a solid banking career
and will continue as its CEO. Mr. that began at Continental Bank of
Hearon also will become senior vice Chicago in May, 1936. When he re
president and chief administrative signed in February, 1964, to help<
form National City Bank and beofficer of the Bancorporation.

W ith the warmth of the holiday spirit we extend
our gratitude our appreciation and our greetings.

A F&M Marquette National Bank
Correspondent Banking

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Federal Reserve Bank of St. Louis

30
Minnesota News
come its executive vice president
and CEO, he was a vice president in
the correspondent bank division
where he was serving banks for 15
years in the Ninth and Seventh Fed
eral Reserve Districts.
A native of Davenport, la., where
he was born May 15, 1918, Mr.
Jacobs started with Continental at
the age of 18. Following service in
WWII, he enrolled at Northwestern
University, Evanston, graduating in
1948. Later, he was a graduate in
the class of 1955 at the University of
Wisconsin Graduate School of
Banking. At Continental, he was
named an assistant cashier in 1950,
a second vice president in 1955 and
vice president in 1959.
In addition to his heavy duties at
National City Bank and the holding
company, Mr. Jacobs has served
also as a director of Banks of Iowa,
Inc., Des Moines, Archdiocesan
Catholic Charities, Courier Dis
patch, Inc., and several other local
business firms.
* * *
Dean R. Tollefson has recently
joined the St. Anthony National
Bank of St. An
thony Village as
chairman of the
board and chief
executive officer.
Prior to join
ing the bank, he
had a long career
with First Bank
System in num
erous and vari- D.R. TOLLEFSON
ous
assign
ments. Most recently he served as
president and CEO of the First
Bank Northtown, Blaine.
* * *

Norwest Corporation has named
Diane A. Merrifield vice presi
dent and man
ager, mass market/retail bank
ing.
Previously as
sistant vice pres
ident, Ms. Merrifield began her
career
with
Nor-, D.A.
_ MERRIFIELDn
, .
irir71
west in 1971 at
Norwest Bank St. Paul.
*

Lee M. Ashfeld has been named
president of The Highland Bank,

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

Saint Paul. He succeeds John D.
Turner, who has been promted to
chairman, according to Frederick L.
Wall III, former chairman of the
bank.
Mr. Ashfeld has been serving as
president of the First National Bank
of Wayzata and prior to that time
was with the Citizens Bank and
Trust Company of Hutchinson.
Mr. Turner has been president of
the Highland Bank since 1972.

Daniel D. Poppe has been ap
pointed vice president of Americana
State Bank of Edina, according to
J. Peter Myers,
president.
M r. Poppe,
who will be a
commercial lend
ing officer for
the bank in addi
tion to other re
sponsib il iti es,
* * *
formerly was a
vice president in
D.D. POPPE
First Bank Minneapolis recently charge of com
announced several promotions and mercial lending, real estate and busi
ness development at the New Hope
advancements.
Promoted in the domestic bank State Bank.
* * *
ing group were: Richard L. Shepley
to executive vice president and head
Karen M. Doolittle has joined
First Bank System, Inc. as vice
president and corporate risk man
ager.
Ms. Doolittle most recently was
associated with Super Valu Stores,
Inc. as director of risk management
and senior vice president of Risk
Planners, Inc., the company’s insur
ance agency subsidiary.
R.L. SHEPLEY

J.M. WARDER

of the group; Edward R. Landes to
senior vice president and head of the
regional banking group; J. Robert
Hoffman to senior vice president
and head of the corporate group;
Robert H. Scott, III to senior vice
president and head of the corporate
banking services department, and
Martin F. Cooney to vice president
and head of the corporate D divi
sion.
Five division heads were also
named in the domestic banking
group. Those vice presidents named
to head divisions were: Colleen
McCoy-Deppa, manufacturers divi
sion; Sara M. Lilienthal, high tech
nology division; Kathryn B. Brewer,
public and structured finance divi
sion; Terry L. Adams, credit pro
ducts division, and James R. Rice,
national west division.
John M. Warder was named vice
president in the urban development
department. He served as chairman
and CEO of First Bank Plymouth
before joining the urban affairs
department in 1983.
In the personal trust services de
partment William E. Lavin, Jr., has
been named vice president. He
joined the bank in 1976.
* * *

Alan F. Naylor has been named
head of credit administration, and
Richard A. Diehl has been promoted
to vice president in the municipal
trading division of First Bank Saint
Paul.

A.F. NAYLOR

R.A. DIEHL

Mr. Naylor has been with First
Bank Minneapolis since 1957, most
recently as senior vice president for
the regional group.
Mr. Diehl has been assistant vice
president for municipal underwrit
ing and trading at First Bank Saint
Paul since 1982.
* * *
Norwest Bank Minneapolis an
nounced recently the appointment
of nine vice presidents.
A. William Charleton joined Nor-

31
dated Gas, a subsidiary of American tive policy efforts fit well with these
Natural Resources Corp., Detroit. needs.” Mr. Ulland, 42, joins First
From 1971 to 1973 he was director Bank System after 16 years in the
of state communications reporting Minnesota Legislature. He was first
to the governor of South Dakota, elected to the House of Representa
with duties including tourism and tives in 1968 at age 26. Mr. Ulland
economic development. He was was elected to the Senate in 1976
press secretary to the secretary of and chosen Senate minority leader
state of Michigan from 1969 to in 1982.
A graduate in economics from
1971.
Carleton College with an M.B.A.
* * *
from the Wharton School of Finance
and Commerce. Mr. Ulland has
George H. Dixon, chairman and taught strategic planning at the
chief executive officer of First Bank University of Minnesota Duluth
School of Business and Economics
Sy s te m ,
has
for the last six years. He also owns
named Jam es
and operates a large Christmas tree
Ulland, the ma
farming operation.
jority leader of
the M innesota
Senate, senior
vice president
Two Appointed in Duluth
for c o rp o ra te
Evelyn Piano has been appointed
relations. Mr.
vice president in marketing and
Ulland assumed
Julie Reinemann, mortgage loan of
his new respon
ficer, at First Bank Duluth. Ms.
sibilities with
Piano will also direct regional mar
First Bank November 15 and will of keting activities for the Northern
ficially resign from the Senate Janu Minnesota First Banks in Cloquet,
ary 9.
Hibbing, Virginia and Babbitt.
Mr. Ulland will be in charge of in
ternal communication, public and
governmental relations and public
affairs. The newly created position
will report directly to Chairman Dix
on. “First Bank System believes the
appointment of Mr. Ulland will sig
nificantly aid us in carrying out two
major institutional policy thrusts,’’
Mr. Dixon told reporters at a news
conference at First Bank Place.
E. PIANO
J. REINEMANN
“First, our system is one of the
important and growing businesses
An employee with the First Bank
in the Upper Midwest and the West. System since 1981, Ms. Piano most
Its opportunity to grow is restricted recently served in Minneapolis as
by laws which prevent it from pro assistant vice president of product
viding additional financial services development.
in existing markets and in markets
Ms. Reinemann joined the bank in
which it doesn’t presently serve. Yet 1977 and most recently served as op
our nonbank competitors are al erations supervisor/mortgage loan
lowed to enter our markets virtually closer.
without regulation,” Mr. Dixon
said.
“We believe these barriers to
growth and job creation in our re Four Elected in Red Wing
Goodhue County National Bank
gion must be reduced. Jim Ulland’s
legislative skills and background are of Red Wing recently announced the
election of Phyllis J. Froiland and
particularly strong.
“ Second, the very high rate of Glen H. Bakken as customer service
change in commercial banking and officers; John O. Botten as agricul
financial services has greatly ex tural loan officer, and Dwayne E.
panded our need to communicate Ostrem as consumer loan represen
more effectively both internally and tative, all at the bank’s Rushford Of
externally. Mr. Ulland’s demon fice. All four employees formerly
strated communication skills and were associated with the First Na
his leadership in interstate legisla tional Bank of Rushford.
Minnesota News

#
^

west Bank Minneapolis in 1982 and
currently manages the Latin Ameri
can areas of the international bank
ing department in Minneapolis.
Luis Ernesto Fernandez Moreno
joined Norwest Bank Minneapolis’
Mexico Representative Office as
manager in 1981.
Michael Sadak has served as rep
resentative for Norwest Asia, Ltd.
in Hong Kong since May 1983.
Judith A. Owen serves as a divi
sion manager in the bank’s regional
corporate banking department. She
joined Norwest Bank Minneapolis in
1982.
Robert A. Amundson is manager
of consumer operations, and has
been with Norwest Bank Minneapo
lis since 1982.
David J. Peterson joined Norwest
Bank Minneapolis in 1968 as a staff
auditor and now is manager of asset
servicing in the trust operations de
partment.
Thomas D. Wright is a principal
trust administrator in the capital
m anagement services area for
Norwest Bank Minneapolis.
John Matyi joined Norwest Bank
Minneapolis in 1979 after working
as a commercial banker for First
Bank St. Paul.
Jeannine McCormick is senior
portfolio manager/analyst in trust
investment services. She joined Nor
west Bank Minneapolis in 1982.
*

Norwest Corporation has named
Stephen L. Byrnes vice president
and head of its
m arketing ser
vices division,
effective Decem
ber 1. He will re
port to Robert
A. Krane, vice
chairman.
Mr. B yrnes’
responsibilities
will include ad
S.L. BYRNES
vertising, com
munications, market research and
sales training.
Currently vice president, market
ing, in the company’s banking
region IV, located in Iowa, Mr.
Byrnes joined Norwest in 1979 as
vice president, business develop
ment, at Norwest Bank Bismarck, in
North Dakota.
Prior to joining Norwest, Mr.
Byrnes was from 1973 to 1979 direc
tor of public affairs, advertising and
marketing at Michigan Consoli
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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

Rapid City V.P. Named

RMA Siouxlands Group
Elects New Officers
The Siouxlands Group of Robert
Morris Associates, the national as
sociation of bank loan and credit of
ficers, has elected its new slate of of
ficers and directors for the 1984 1985 year.
At the election meeting held re
cently at the Minnehaha Country
Club, the following bankers were
voted into office:
Chairman—Jerre Jordahl, senior
vice president, United National
Bank, Sioux Falls.
Vice Chairman—Bruce D. Lemon,
senior vice president, Norwest
Bank, Norfolk, Neb.
Secretary-Treasurer —Bill Kauff
man, vice president, Citibank, Sioux
Falls.
In addition, the following bankers
were elected to the group’s board:
Jim Berg, assistant vice president,
First National Bank, Sioux Falls;
Don Vaudt, executive vice presi
dent, Toy National Bank, Sioux
City, Iowa; William A. Deam, execu

tive vice president, American State
Bank, Yankton; Donald M. Acker,
commercial loan officer, Security
National Bank, Sioux City, Iowa;
Patrick H. McGraw, vice president,
First Bank of South Dakota, Sioux
Falls, and Steven G. Patterson,
president, First National Bank, Sib
ley, Iowa.

First Bank of South Dakota has
promoted Thomas Rau to vice presipresident
at
First
Bank
Rapid City.
M r.
Rau
jo ine d
First
Bank Rapid City
in 1977 in the in
stallment lend
ing area at the
Northeast Office
and most re
T. RAU
c e n tl y
was
elected timepay manager in 1981.

First Bank System
Acquires Three Agencies

First Bank System, Inc., Minnea
polis, has received approval from the
Federal Reserve Bank of Minneapo
Officer Elected in Humboldt lis to acquire three insurance agency
Dana Dykhouse has been elected offices operated by Mouw Enter
agricultural loan officer of Western prises, Inc. in Gayville, Vermillion
Bank - Hum
and Wakonda, South Dakota. The
boldt.
agencies will become part of FBS In
Mr. Dykhouse
surance, the company’s insurance
is a 1979 gradu
brokerage subsidiary.
ate of South Da
The three insurance agency offi
kota State Uni
ces will be consolidated with the
versity in Brook
company’s existing local agency,
ings with a de
First Insurance Vermillion.
gree in agricul
William Mouw, former owner of
tural business.
the acquired offices, will join First
His past experi
Insurance Vermillion as an agent.
D. DYKHOUSE
ence is in agri
First Insurance Vermillion will con
cultural lending and branch admin tinue to be managed locally by John
istration.
Gors.
Minn., and PCAs in Aitkin, Minn.,
and Fargo.

Norwest Names Client
Executive for Western N.D.
Norwest Corporation has an
nounced that L. Kenneth Erickson, #
previously presi
dent and chief
executive officer
of Norwest Bank
where he served as senior supervi Dodge Center,
Langdon President Named
sory officer in the deputy governor’s Minnesota, has
The board of directors of First office. Prior to his association with accepted a posi
Bank Langdon has elected Joel E. the Farm Credit Association, Mr. tion as client ex
Krueger president. He succeeds Wil Krueger served as education and ecutive for west
liam F. Pich who recently accepted a credit consultant to the government ern North Dako
position with a bank in southern of Kenya for Agricultural Coopera ta in Norwest’s
Minnesota.
L.K. ERICKSON
tive Development International, financial instituMr. Krueger most recently was Washington, D.C. He also previous tions group.
In his new position, Mr. Erickson ^
associated with the Farm Credit Ad- ly held positions with the Federal
m instration, Washington, D.C., Intermediate Credit Bank, St. Paul, will head a team of bankers provid- ^
Northwestern
Banker, December, 1984

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Federal Reserve Bank of St. Louis

33
ing comprehensive services to Nor- nounced last month that the Bank of dustrial Commission to act quickly
west financial institutions custo North Dakota, Bismarck, is develop on the new bond issue.
mers in western North Dakota. He ing a $ 133-million Student Loan
will be headquartered in Bismarck. Bond Issue.
Mr. Olson reported the new bond Jamestown V.P. Named
Mr. Erickson, who has been presi
Paul H. Olson has been promoted
dent of the Dodge Center bank since program is intended to meet addi
to
vice president and manager, agri
tional
loan
funding
demands
on
the
1980, operated an insurance agency
in Bottineau before joining Norwest state’s guaranteed student loan pro business loans,
for
N o rw est
at Norwest Bank Hillsboro in 1967. gram.
Bank of North Dakota President B ank J a m e s
He transferred to Norwest Bank
Denison in Denison, Iowa, in 1976 H.L. Thorndal said the new bond is town, N.A.
Mr. Olson has
as executive vice president and sue is intended to provide an addi
moved to Dodge Center when he was tional $44-million in student loan been associated
elected president of the bank there. funding and to refinance the 1981 w ith N orw est
Corporation since
student loan bond issue.
He noted the previous bond was a 1982 and joined
short-term (3-year) issue but said In th e s ta f f in
Bank of North Dakota
dustrial Commission members were Jam estow n in
P.H. OLSON
Develops Bond Program
hopeful for a longer term bond at a 1983, serving
most recently as assistant vice pres
North Dakota Industrial Commis- low rate of interest.
Mr. Olson said he expects the In- ident.
0 sion Chairman Allen Olson an

First Security, Havre
Completes Remodeling

Les Alke Joins MBA Staff
Les Alke, formerly the commis
sioner of financial institutions for
Montana, has joined the staff of the
• Montana Bankers Association as a
special consultant.
Mr. Alke has signed a six-month
contract with the MBA to counsel
the association on matters related to
® state and federal regulations, legis
lation and to lobby on behalf of the
association. He began work on Octo
ber 15.

Helena V.P. Retires
^
w

R. Dan Johnson, vice president in
the commercial department of First
Bank Helena, retired November
30 after 27 years
of continual ser
vice.
In 1957, Mr.
Johnson joined
the bank as in
stallm ent loan
manager and assistant vice pres
ident. He was
R D- JOHNSON

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Federal Reserve Bank of St. Louis

First Security Bank of Havre re
cently completed a remodeling pro
ject in the basement of the bank to
make room for a new in-house com
puter. The bank’s new Burroughs
930 will allow the bank to process all
the materials previously processed
by Norwest.
Completion of the project has also
promoted to vice president, commer permitted the bank to reopen its art
cial department in 1970, a position gallery which features the talents of
several local artists. The gallery is
he held until his retirement.
open during normal banking hours.

Cutbank V.P. Retires,
Advancements Announced
Kenneth McConwell has been
named vice president and cashier of
F irst National
Bank, Cut Bank.
He
re p la c e s
Anita Neil, who
re c e n tly
re
sig n ed . M rs.
Neil has been an
employee of the
bank since its
charter in De
cember, 1960.
c .w . COPELAN
Mr. McCon
well most recently held the same
position at Miners Bank of Mon
tana, Butte, and was also with
Citizens Bank of Montana, Havre.
Also announced at the bank was
the hiring of Clinton W. Copelan as
agricultural representative. Mr.
Copelan most recently was in soft
ware production for small business
technology in Napa, Calif.

Samuel Noel Joins
Norwest’s Montana Region
Norwest Corporation has an
nounced the appointment of Samuel
R. Noel as vice
president and se
n io r re g io n a l
credit manager
for the Montana
region.
J a c k s o n L.
Schutte, presi
d ent of N or
w est’s Region
VIII, which has
S.R. NOEL
its headquarters
in Billings, said Mr. Noel will over
see the administration of credit
throughout the region. The regional
credit managers also are responsible
for reviewing and developing sys
tems for credit quality, setting re
gional credit limits, assisting Nor
west affiliates with difficult credit
Northwestefn Banker, December, 1984

34
problems and setting up training
programs for credit officers.
Prior to joining Norwest, Mr. Noel
was president and chief operating of
ficer for the Bank of Montana Sys
tem, Great Falls. He also spent
many years in various positions
with the Rainer National Bank and
Seattle First National Bank where
he was manager of the correspon
dent bank department.

First Banks Donate Book Sale Proceeds*

Miles City Director Elected
Wayne D. Helland has been elected
to the board of
directors of First
Interstate Bank
of Miles City, ac
cording to Terry
Wagner, presi
dent.
Mr. Helland
has been en
gaged in farming
in the AngelaW.D. HELLAND
Rock S prings
area since 1954.

FBS Acquires Butte
Insurance Agency
First Bank System, Inc., Minnea
polis has received approval from the
Federal Reserve Bank of Minneapo

WBA Establishes
Clare Mundell Scholarship
The Wyoming Bankers Associa
tion has established the M. Clare
Mundell Scholarship in Banking and
Finance at the University of Wyom
ing College of Commerce and Indus
try. The scholarship was created to
honor the dean emeritus of the col
lege who recently retired as execu
tive director of the WBA.
Income from the scholarship’s
trust fund will be used for grants to
junior and senior students in the
College of Commerce and Industry,
who are majoring in the field of

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

A A

IB i
MONTANA’S State Centennial C elebration got o ff to an early start as the result of a $5000
donation from the First Banks of M ontana. A ccording to John Reichel, m anaging director^
of First Bank’s W estern Region, First Banks of M ontana are donating the proceeds from
the sale of its book “ M ontana: A P ictorial H isto ry” and expects the am ount of donation to
clim b as the book’s sale continues. Pictured at the presentation are: Lt. Gov. George Tur
man, who is directin g the s ta te ’s centennial preparation; William Strausberg, managing
d ire cto r of First Bank’s Eastern Region; Anneke-Jan Boden, author of the book; John
Reichel, and Governor Ted Schwinden.
t

lis to acquire The Bartels Agency,
one of the largest agencies in Butte.
Established in 1955, The Bartels
Agency writes over $1.5 million in
premium and has annual revenues in
excess of $250,000. The agency will
operate from its current location and
will be known as FBS Insurance

banking or finance.
Mr. Mundell retired from the Uni
versity of Wyoming in 1972 after 37
years on the faculty, the last 22 as
dean. He then became executive di
rector of the WBA, a position he
held until his retirement in July of
this year.

Jackson V.P.s Named
Jackson State Bank recently an
nounced the appointment of David
R. Landis and Laurene W. Sinn as
vice presidents, and the addition of
Robert D. Macdonald as vice presi
dent.

Montana, Bartels Agency.
Robert R. “Bob” Kocher, who has
been with The Bartels Agency for 12 •
years, will become the agency man
ager. Clarence G. “Clancy” Bartels,
the agency’s founder and former
owner, plans to retire early next
year.
#
Mr. Landis, who has been with
the bank over six years, will also
serve as cashier. He will handle oper- ®
ations, marketing and advertising.
Ms. Sinn has held numerous posi
tions during her 27 year career with
the bank.
Mr. Macdonald, who will serve in ^
commercial lending, most recently
was in the commercial lending de
partment of Bank of America in San
Francisco.
A

Two Promoted in Lusk
At First Wyoming Bank, Lusk,
Rodger Jones has been promoted to #
vice president and Dick Ivey will re
place Mr. Jones as instalment loan
officer.
Mr. Jones joined the Lusk bank
from Fort Collins last January, #
where he had been working in the
First Wyoming Bank audit depart
ment.
Mr. Ivey also joined the bank in
January in the bank’s management •
trainee program.

ton, as vice president, commercial
loans,
and Constance H. Flynn has
Michael P. Cotter has been named
joined
as loan officer.
president of Mission State Bank,
Mr.
Lyng previously held key
Lakewood, according to Charles R.
positions
with United Banks of Col
Sillstrop, chairman.
orado
and
Security Bank, Billings,
The new commercial bank, located
Mont.
in the Mission Trace Shopping Cen
Ms. Flynn has nine years banking
ter, South Wadsworth Boulevard
experience,
most recently with First
and Hampden Avenue, is scheduled
National
Bank,
North Grand Junc
to open mid-December.
tion.
Mr. Cotter previously was man
ager of the commercial banking de
partm ent with First Interstate
Two Additions Announced
Bank of Denver.

Lakewood President Named

At Southeast Denver Bank
President Appointed At
0 New Aurora Bank
Scott W. Brennan has been ap
pointed president of the new Central
Bank of East
A urora, N.A.,
• currently under
construction at
East Mississippi
and South Cham
bers Road in
• A u ro ra .
The
bank was sched
uled to open No
vember 5.
S.W. BRENNAN
Prior to his
• appointment as president, Mr. Bren
nan served as vice president and
m anager of C entral Bank of
Denver’s custom financial center.

Elected in Grand Junction
Colorado National Bank - Orchard
Mesa, Grand Junction, recently
elected M. Christian Hummel and F.
Clinton Maxfield to the board.
Mr. Hummel is vice president and
general manager of Mesa Beverage
Company. Mr. Maxfield is a CPA
and managing partner of Maxfield,
Miller and Company, CPAs.

Two Join Littleton Bank
^

John C. Lyng has joined Colorado
National Bank - Arapahoe, Little-

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Federal Reserve Bank of St. Louis

First National Bank of Southeast
Denver has announced the addition
of Shauna T. Mc
Caffrey as vice
president of fi
nancial services
and Kathy Behnke as operations
officer.
Ms. McCaffery, a certified
financial plan
ner, Lpreviously. S.T. MC CAFFERY
was vice presi
dent at Central Bank of Denver’s
custom financial center.
Ms. Behnke most recently was
with Colorado National Bank in
Aurora.

United Bank of Denver
Announces Advancements
United Bank of Denver recently
announced that Dennis S. Blum was
named manager
of international
banking. It was
also announced
th a t T im othy
Kenczewicz and
Terry L. Mueller
were named vice
presidents; John
R. Hall and Judy
F. Reeves were
D.S. BLUM
named assistant
vice presidents; and Edward R.

35
Kaminski, Dawn L. McNally, Cecilia
H. Prinster, Mary “GiGi” V. Rey
nolds and Chris Smith were pro
moted to officer positions.
A vice president in executive
banking, Mr. Blum joined United
Bank in 1979 from Manufacturers
Hanover Trust Company, New York.
Mr. Kenczewicz, an officer in the
trust group, joined the bank in 1981.
Mr. Mueller, a commercial banker
in national financial accounts, joined
United Bank in September of this
year. He had been with Canadian
Imperial Bank of Commerce.

Minibank Switch Network
Completes Conversion
A.O. Smith Data Systems, Brown
Deer, Wise., has announced that it
has completed a major switching
conversion for the Minibank Switch
Network in Denver. The Network
will now be supported on Tandem
Non-Stop II processors, according
to Kenneth A. Byrne, A.O. Smith
Data Systems vice president-mar
keting.
Minibank has utilized A.O. Smith
services since December of 1981.

Four New Banks
Receive Charter Approval
Four proposed banks recently re
ceived approval for national bank
charters from the Comptroller of the
Currency. The new banks include:
Central Bank of Garden of the
Gods, N.A. in Colorado Springs.
President and CEO—Dennis D.
Nathan.
Central Bank of Westminster,
N.A., in Westminster. President and
C EO -K irk L. Maze.
High Plains Bank of Elizabeth,
N.A., in Elizabeth. President and
CEO—A.J. Anderson.
First Interstate Bank of West
minster, N.A., in Westminster. Pres
ident and CEO—William J. Fortune.

One Promoted at
Colorado National Leasing
Edward J. Vanderslice has been
promoted to vice president of Col
orado National Leasing, Inc.,
Golden.
Mr. Vanderslice previously was
associated with Colorado National
Bank of Denver as accounting of
ficer, and with Colorado National
Bankshares, Inc.
Northwestern Banker, December, 1984

M ic B ro siu s
B an k o f S ta p leto n

R u s s R abeler
F a rm ers State B a n k , D o d g e

C huck L effler, Jr.
S e c u r ity State B an k o f H olb rook

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

G eorg e H aase, Jr.
C rofton S tate B a n k

W illard B eh ren d s
State B a n k o f E lk C reek

R an d y B u r n s
H om e S tate B an k , H um boldt

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

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

D on B ell
C raw ford State B a n k

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

W ayne H o sk in so n
T he S io u x N a tio n a l B a n k , H a rriso n

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

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37
debts of Mr. Anderson, federal law
requires Omaha National to dispose
of its interest in the four banks
within a two-year period. Therefore,
it is anticipated that this interest in
the banks will be considered for sale
before the expiration of the two-year
period. In the meantime, the banks
will continue to be operated as sepa
rate institutions and not as part of
Omaha National or FirsTier, Inc.,
Omaha National’s holding company.

Omaha National Acquires
Four Nebraska Banks

of these banks realize that this ac
tion does not reflect any inadequacy
Omaha National Bank reached an whatsoever on the financial stand
^agreem ent November 2 with Roger ing of the banks themselves,” Mr.
L. Anderson of Lincoln to acquire Woods said. “The banks will con
control of .four Nebraska banks in tinue under present management
exchange for indebtedness that Mr. and will be able to operate normally
Anderson had with Omaha Na- for the benefit of depositors, borro
flltional, according to John D. Woods, wers and the communities the banks
board chairman and chief executive serve.”
officer of Omaha National.
Deposits also continue to be in
The four banks are the City Bank sured to $100,000 by the Federal
& Trust and Havelock Bank in Lin- Deposit Insurance Corporation.
coin; Fillmore County Bank in Gene
Since the transfer of control from
va; and City Bank & Trust in Crete. Mr. Anderson to Omaha National
“ It is important that customers Bank resulted from the personal

Gr3fld Opening Held
# AN RAND OPENING ceremonies
^ 1 were held last month at First
National Bank and Trust, Syracuse,
following the completion of its new
bank building. Over 1,500 custom®ers, bankers and area citizens at
tended the two-day open house.
First National’s new two-story fa
cility offers full banking service, in
cluding a drive-in/walk-in facility lo^cated in the bank parking lot. It is
constructed of brick to blend with
the traditional building materials of
the surrounding businesses, with
contrasting colors used to empha
s i z e the bank’s entryways.
The focal point of the 19,400
square foot banking facility is a lin
ear atrium that runs the length of
^ th e building’s center. The atrium is
^aligned with the bank’s main en

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Elected to NETS Board
Lou Titus, president of First Na
tional Bank of Holdrege, recently
joined the board of the Nebraska
Electronic Transfer System. Mr.
Titus replaces Harold Larmon, who
retired from the board.
The NETS board recently voted
to move the computerized switching
center to Lincoln, where it will be
housed in the offices of the Nebraska
Bankers Association. Relocation of
the NETSWITCH from Omaha to
Lincoln is expected to be completed
by January, 1985.

EXTERIOR and interior views of First National Bank’s new facility.

trance and helps to direct customer
circulation.
On the main floor are located the
teller line and secretarial areas, with
offices located along both sides of
the atrium. Legal offices positioned
in the remaining portion of the first
level share conference facilities with
the bank.
The bank’s second floor houses
the bank’s new IBM 36 computer
system, and also contains staff
areas, accounting offices and expan
sion space. Much of the second floor
is illuminated by natural light dis
persed by the atrium’s transparent
skylight.
A full basement level, designed to
allow further bank expansion, pro
vides a community room for the
public’s use.

FOCAL point of the new fa c ility is a linear
atrium , con stru cted along the length of the
b u ild in g ’s center.
Northwestern Banker, December, 1984

The executive committee of First
National Bank of Omaha has an
nounced the pro
m o tio n
of
Charles R. Walk
er to vice presi
dent.
Mr. W alker
has been with
the bank since
August of 1983
as a second vice
is imp
^
p resid en t. He
C.R. WALKER
currently serves
as division head in charge of retail
banking division.
A native of Missouri, Mr. Walker
is a graduate of Creighton Universi
ty ’s School of Law.
* * *
Lyle D. Knudson has joined Norwest Bank Omaha, N.A. as vice
p re sid en t and
manager of the
agricultural
banking depart
ment.
Mr. Knudson
joined the Fed
eral Land Bank
at York in 1972;
worked at Norwest Bank H ast
L.D. KNUDSON
in g s for six
years, and then went to the Bank of
Doniphan in 1979. In 1980, he joined
Norwest Bank Minneapolis, N.A. as
assistant vice president and was
promoted to vice president and
manager of the correspondent bank
ing agricultural credit division in
1982.
* * *

Northwestern
Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Packers National Bank recently
announced the promotion of Lonnie
Rocchietti to as
sistant vice pres
ident.
Ms. Rocchiet
ti joined Packers
following several
years credit ex
perience as man
ager of a local
union. She will
be in charge of
L. ROCCHIETTI
the bank’s in
stallment loan department.

Six Omaha businessmen have
been elected to the board of direc
tors of Omaha National Bank, ac
cording to John D. Woods, board
chairman and chief executive officer.
The six are Thomas F. Madison,
executive vice president and chief
operating officer of Northwestern
Bell Telephone Company; A.J. Scribante, president of Majers Corpora
tion; William M. Theisen, vice chair
man of the board of Diversifoods
Inc.; Hugh L. Tinley, president of
Farmers National Company; Michael
B. Yanney, senior partner of Yan-

M.B. YANNEY

G.K. THRASHER

ney, Hughes Investments, and G ary ^
K. Thrasher, executive vice presi
dent of Omaha National Bank.
Mr. Madison, who joined North
western Bell in Minneapolis in 1954
was vice president and chief execu- 0
five officer in Minnesota before
being named to his present position
last year.
Mr. Scribante is the founder of
Majers Corporation, a national mar- 0
keting and research consulting firm
with headquarters in Omaha.
Mr. Theisen founded Godfather’s
Pizza in 1973 and began franchising
the restaurants in 1975.
#
Mr. Tinley joined Farmers Na
tional Company in 1947 and earlier
this year was named president of the
firm.
Mr. Yanney was associated w ith #
Omaha National for 17 years and
was executive vice president when
he left the bank in 1978 to form his
own bank management company.
Mr. Thrasher is executive vice#
president in charge of banking oper
ations at Omaha National Bank. He
joined Omaha National in 1970.

Mutual Savings Applies For
Commercial Bank Charter

T.F. MADISON

A.J. SCRIBANTE

Mutual Savings Company of
Omaha has made application w ith ^
the Department of Banking to
change its charter from an industrial
to a commercial bank, to be located
at 1004 South 74th Plaza. A hearing
on the application has been set for 0
January 8 in Lincoln.

THE
ANSW ER
MEN

CORRESPONDENT banking can be confusing, frustrating,
time-consuming. Not so at First National Bank of Omaha.
Just call to get the answers from one of our six experienced
correspondent bankers. Six men with the very latest
financial technology at their fingertips dispensing profession
al, dependable, confidential service.
So call us for the answers to your correspondent
banking questions — on electronic data
processing, cash letter processing, overlines,
fed-fund transactions and more.
In Nebraska, call 1-800-642-9907. Outside
Nebraska, call 1-800-228-9533. You'll get the
answers from us, the answer men.

TIlSl HCIlIOnO! GGPIK
of omaha

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Member FDIC
Northwestern Banker, December, 1984

Mr. Jacobson received his BS in ^
agricultural education and econom
ics from the University of Nebraska
at Lincoln in 1976. He taught vo-ag
classes in Shickley public schools
and was farm management instruc- q
tor at the Hastings campus of the
Central Technical Community Col
lege. He joined City National Bank
in Hastings in 1980 as assistant vice
president and ag rep. He was pro- £
moted to vice president an ag rep in
January, 1982, then was advanced
to executive vice president and se
nior loan officer in 1983.
* * *
A
HE transfer of two senior officers
T
within banks owned by Com
merce Group, Inc., was announced
last month, with both appointments
effective December 1.
Max Callen, vice president and

M. CALLEN

M.B. JACOBSON

head of the correspondent loan divi
sion at National Bank of Commerce
in Lincoln since 1982, has assumed

new duties as executive vice presi
dent and senior loan officer at City
National Bank & Trust Co., H ast
ings.
Michael B. Jacobson, who held
the post in Hastings being assumed
by Mr. Callen, has moved to Lincoln
to take over Mr. Callen’s duties as
head of the correspondent loan divi
sion. Mr. Jacobson also has been ap
pointed senior vice president of
Commerce Group, Inc.
Mr. Callen was graduated from
the University of Nebraska at Lin
coln in 1972. He joined NBC’s com
puter company in 1974, later work
ing in the commercial lending divi
sion. Mr. Callen joined the cor
respondent bank division in 1979 as
assistant vice president, was ad
vanced to vice president in 1981 and
head of the department in 1982.

Call
Steve Sutton
For Complete
Credit Insurance
Service . . .
Call Toll Free in Nebraska 800-742-7335
or call co lle c t 402-475-4061
Bank Programs for
Group*lndivldual Life»Accident & Sickness

LINCOLN

ÌÙ LIFE

W h e r e B E N E F I T is m o r e
than a m i d d l e n a m e
Lincoln, Nebraska 68508

Northwestern
Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Steve W. Sutton
Vice P resident

First National Lincoln President
William C. Smith has announced
that Stanley Ma
ly, HI, has been
appointed vice
p re sid en t and
manager of the
bank’s adminis
trative services
division. F o r
merly vice presi
dent in the mar
keting division,
S. MALY,
Mr. Maly will
also assume full responsibility for
the bank’s marketing and advertis
ing activities. Robert W. Sinkey,
former manager of the marketing
division, has been named special
consultant to senior management.
A graduate of the University of
Nebraska-Lincoln, Mr. Maly joined
First National Lincoln in 1976 as a<
member of the commercial banking
division. He was named commercial
banking officer in 1978, and prior to
joining the marketing division in
1982, was vice president in the na-<
tional/international banking divi
sion.
Mr. Sinkey joined First National
in 1975 after many years as execu
tive vice president of Swanson, Sin-<
key, Ellis, Inc., Lincoln-based ad
vertising firm.
Two officer appointments have
also been announced. Sharon A.
Breunig has been named operations
manager of the bank’s 13th & L fa
cility, and Peggy Marti has been ap
pointed installation officer in the au
tomated customer services division. (
Miss Breunig is a native of Wahoo and a graduate of the University
of Nebraska-Lincoln. She joinedFirst National in 1982 as a per
sonnel specialist.
,
A Lincoln native, Mrs. Marti at-

The Experienced Professionals
o f First National Lincoln.

Ready to meet your investment needs.
Put your trust in the Municipal and Government Bond specialists
of The First Team. Fast. Knowledgeable. Experienced. First
National Lincoln — Nebraska’s most active dealer bank.

The F irst

FIRST NATIONAL LINCOLN
A FirsTier Company

13th & M Streets • P.O. Box 81008
Lincoln, NE 68501 • Phone (800) 742-7376

Member, F.D.I.C.

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

Nebraska News

tended the University of NebraskaLincoln and Southeast Community
College. She joined First National in
1980 and currently serves as advisor
for the bank’s Junior Achievement
club.
* * *
The board of directors of City
Bank & Trust Company of Lincoln
has recently announced the follow
ing promotions and election of new
officers:
Allan J. Zach, senior vice presi
dent, lending and personnel officer;
Michael R. Hansen, vice president,
commercial lending and compliance
officer; Thomas R. Gewecke, assis
tant vice president, installment
lending, security and building main
tenance officer; Terri Jo Siebler,
cashier; Marsha Robinson, assistant
cashier, manager new accounts, and
Denise Essman, manager, bookkeep
ing.

State Banking Department
Works on Long-Range Plan
N ebraska B anking D irector
Robert Beverage along with several
Nebraska bankers and consultant
Robert Theobold, have been work
ing on a long-range plan for the
banking department. According to
Mr. Beverage, the group has been di
vided into three smaller groups,
each looking into a specific area: 1)
the advisability of forming a bank
board or banking commission to

j r

WES BOWEN

function in some capacity with the
department; 2 ) the relationship of
the banking department to the
state’s financial services industry in
general, and 3) the department’s ex
amination function and the use of
modern technology to assist in mon
itoring certain bank ratios to reduce
the examination workload of the de
partment.
Bankers assisting Mr. Beverage
in this process include: Alice Dittman, Lincoln; Don Stull, Alliance;
Tom Olson, Lisco; Jim Nissen, Lin
coln; Jim McBride, Aurora; Chuck
Leffler, Lincoln; John Green, Wauneta; Jerry Roe, Bennington; Ray
Tiedje, Norfolk; Bill Cook, Beatrice,
and (representing the NBA) A.C.
Hove, Jr., Minden, and William
Brandt, general counsel.

Several officer appointments have
been announced at Omaha National
Bank Grand Island by John D.
Woods, board chairman, and CEO of
Omaha National.
Lawrence Comine, Jr., was named
vice president and chief executive of
ficer of Omaha National Grand Is
land. Formerly vice president in
charge of the commercial lending
department at Omaha National, Mr
Comine joined the bank in 1958. He
worked as a teller, credit analyst and
manager of advertising and public
relations before being named a com-

national b an k

TOM GROVE

SERVING
AT
YOUR PLEASURE
24th & “L”

Omaha, Nebraska 68107
Member FDIC

Northwestern
Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G.L. KLEIN

D.D. NIETFELD

P.A. ORENDORFF

D.R. BOEHLE

G.T. SUHR

Omaha Natl.-Grand Island
Officer Appointments Told

packers

402/731-4900
OR
1-800/642-9980

S.M. BEACHLER

PAT CONWAY

mercial loan officer in 1972. He®
served as manager of one of Omaha
National’s suburban offices and as a
team leader in correspondent bank
ing and commercial lending before^
being named department head ofw
commercial lending in 1979.
Named vice presidents were Den
nis L. Barkley, who is manger of
loan administration; Stephen M .^
Beachler, who supervises all per
sonal bankers and retail credit func
tions; Gary L. Klein, who is manager
of the Agricultural Loan Division;
Dick D. Nietfeld, who is a senior^
loan officer, and Patricia A. Orendorff, whose duties include supervis
ing teller and safe deposit opera
tions, purchasing, property main
tenance, bookkeeping and person- £
nel.

Nebraska News

R.K. RABE

G.E. GANNON

C. BROWN

S. JEFFERS

W.C. DIETRICH

M.D. FREI

Æ A *
¡j*"
JÉ

s,J Ìlss:

êÊÊÊÊÊÊ

NOW EVEN
SMALL
BANKSCAN
OFFER
BIG BANK
ESTATE
PLANNING.

. M ÊÊm

R. STURGEON

Named second vice presidents
were David ft. Boehle and Gene T.
Suhr, who are agricultural loan of
fices, and Richard K. Rabe, who is
trust and investment manager.
Gary E. Gannon was named a
marketing officer; Cheri Brown was
named manager of the bank’s South
Locust office, and Sharon Jeffers
was named manager of the FirsTier
Center office.
Named assistant officers were
William C. Dietrich, Michael D. Frei
and Terrance L. Schutte, who are all
credit analysts. Also named an
assistant officer was Richard A.
Sturgeon, who is a junior commer
cial banking officer.
All of the officers are former
employees of either Commercial Na
tional Bank or Commerical Savings

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Federal Reserve Bank of St. Louis

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

First National Bank

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

Northwestern Banker, December, 1984

Nebraska News

Bank of Millard and Norwest
Announce Merger Agreement
HE BANK of Millard in Omaha
T
and the Minneapolis-based Nor
west Corporation announced Nov

merger, with William Nelson con-_
tinuing in a senior management po
sition with the merged bank.
As of September 30, 1984, the
Bank of Millard had assets of $65
million and deposits of $57 million.^
Norwest Bank Omaha West had as
sets of $137 million and deposits of
$123 million.
At the time the merger was an
nounced, Norwest Bank Omaha £
West was in the process of moving
from its original location at 4131
Center Street to a new building at
45th and Center. That move will
take place; however, headquarters £
now will be located at the Bank of
Millard building and the 45th and
Center location will be an office.
a recommendation made at the^|
Leadership Conference conducted
by the NBA in Kearney on Novem
ber 16.
At the Kearney conference, CEOs
heard four speakers present argu-#
ments for and against interstate or
regional banking. Following those
presentations, the 140 registrants
took part in round table discussions.
Six tables had a consensus support-#
ing interstate banking, and eight op
posed, with a head count of 67 op
posed and 51 supporting.
A position statement was then
prepared urging the NBA to official-#
ly oppose interstate banking in the
next legislative session and passed
110-0. It is that recommendation
that the executive council had on the
December 16 agenda.
#

approvals and is expected to be con
cluded early next year. Terms of the
transaction were not disclosed.
Mr. Cochran stated the merger
ember 5 that a definitive agreement
has been signed for the Bank of Mil would “unite two financial institu
lard to merge with Norwest Bank tions with compatible philosophies
and similar backgrounds” and
Omaha West.
Norwest Corporation currently would be “mutually beneficial” to
operates three banks in Omaha and both banks, their customers and em
a total of six in Nebraska.
ployees.
Grove Nelson, chairman of the
Harold M. Walton, who has been
Bank of Millard, pointed out that
p re sid en t and
“ both are strong banks and,
chief executive
officer of the
although they serve different
Norwest Bank
markets, they use similar ap
proaches to personal customer ser
for 10 years, will
continue in that
vices.”
Grove Nelson and his brother,
capacity in the
William (Bill) Nelson, the Millard
merged bank.
bank president, and members of
John R. Coch
their families own a majority of the Hal Haver New President
ran, regi onal
bank’s outstanding common stock. At Oklahoma Bank
president of the
H. WALTON
Mr. Cochran said the Nelsons will
corporation, said
Joe E. Burns, Jr., chairman of
the merger is subject to regulatory remain as directors following the First National Bank and Trust Co.,(
Ponca City, Okla.,
Co. except Mr. Comine and Mr. about the benefits of BMA and the has announced
Sturgeon, who previusly worked for effects brought about by the BMA/ the recent ap
Omaha National in Omaha. Omaha ABA merger, and Marilyn Mac- p o i n t m e n t of
National acquired Commercial Na Gruder Barnewell, president of Mac- Harold G. Haver
tional and Commercial Savings last Gruder Agency, Inc. Her topic was as president and
summer.
“Are You Sending the Right Mes chief executive
sage to the Right Customer” and officer of First
ational. Mr.
Iowa-Nebraska BMA Chapter “Financial Planning for the Commu N
Haver will also
nity
Bank.”
Holds Marketing Conference
serve on th e
h . haver
board.
Approximately 40 members of the Interstate Issue Goes to
Mr. Haver most recently was as*
Iowa-Nebraska Chapter of Bank
sociated with the American Na-,
Marketing Association were on NBA Executive Council
hand for the October marketing con
The executive council of the Neb tional Bank in Omaha as president
ference held at the Marriott Hotel in raska Bankers Association was and chief executive officer. Prior to
scheduled to consider the issue of in that time he held the same title at
Omaha.
Guest speakers included Lanny terstate banking at its December 16 United Central Bank and Trust Co.
Kimbrough, a member of BMA’s na meeting in Lincoln. The matter went in Mason City, Iowa, from 1976 to
tional board of directors, who talked to the executive council as a result of 1983.

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

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Northwestern Banker, December, 1984

long with our best wishes for a
festive holiday season and prosper
ous new year, may we say a special
“thank you” to all whom we’ve
served during 1984. It’s our hope
that this most pleasant association
may continue.
If you plan to be in Des Moines
during the holiday season, stop by
and say hello. We’d be pleased to
see you.

Bankers
Trust

Come Crow

With Us

Des Moines, Iowa 50304

Member: FDIC/Federal Reserve System

Use our toll-free WATS line: 800-362-1688

Northwestern Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

47
at Mt. Pleasant. He has also com
pleted studies at the ABA National
Trust School at Northwestern Uni
versity in Evanston, 111., and the
ABA Commercial Lending School at
the University of Oklahoma, Nor
man.

Promoted in Iowa City
First National Bank, Iowa City,
recently announced the promotion
Fairfield President Named
Tri-County State Bank in Chamber- of Maggie Elliott m . m
Dean Holst has been named presi lain, South Dakota, where he has to commercial
loan officer, and
dent and chief executive officer of been approximately five years.
the appointment
«>First National Bank in Fairfield. He
of Randall P.
will succeed Earl Rodibaugh, who
Bezanson to the
plans to retire in January, 1985. In Readlyn President Honored
board.
addition, Steve Cracker, formerly
For 50 Years In Banking
Ms. El l i o t t
vice president, has been advanced to
has
been with
0 executive vice president and chief
Burton Stumme, president of
the
bank
since
Readlyn
Savings
Bank
and
an
em
operating officer, and Randy Lewis
1977,
serving
ployee
of
the
bank
for
50
years,
was
R.P. BEZANSON
has joined the bank as assistant vice
honored last month by the bank for primarily in cus
president.
his half century of service. Nearly tomer service and lending areas.
Mr. Bezanson currently serves as
600 people attended the open house
a professor of law at the University
in Mr. Stumme’s honor.
Following in his father’s foot of Iowa College of Law.
steps, Mr. Stumme started with the
bank at the age of 21 as a parttime Correctionville Executive
bookkeeper. His father, who had Retires After 39 Years
been with the bank since 1910, died
Clair Hatfield, executive vice
shortly after Burton joined the staff.
president
of Corn Belt State Bank,
Mr. Stumme left the bank during
Correctionville,
will retire at the end
World War II, returning there after
of
1984.
Mr.
Hatfield’s
career with
E. RODIBAUGH
serving two years in the Navy. In
addition to his position at the bank, the bank spans 39 years, during
he has been active in numerous com which time he held virtually every
position in the bank including his
munity organizations.
After 50 years with the bank, Mr. present post as executive vice presi
Stumme commented that he has no dent. Mr. Hatfield will continue his
plans for retiring, but says he is con association with the bank as a direc
tor.
sidering “slowing down a bit.”

R. LEWIS

Mr. Holst joined the bank 11
® years ago and has been serving most
recently as vice president. Prior to
joining the Fairfield bank, he spent
seven years with State Bank of
^F reeport in Illinois.
Mr. Rodibaugh has been with the
bank 36 years, serving as executive
vice president from 1960-1983 and
as president and CEO since Decem^ b e r, 1983.
Mr. Cracker joined the bank in
1979 and prior to that time was with
Clinton National Bank and also
served as a national bank examiner
^ fo r six years.
Mr. Lewis joins the bank from

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Federal Reserve Bank of St. Louis

Doyle Ruble Heads Iowa
State Savings, Clinton
Doyle V. Ruble, Jr., assumed new
duties on November 1 as president
of Iowa State Savings Bank in Clin
ton. Mr. Ruble previously was exec
utive vice president at Hawkeye
Bank & Trust in Burlington.
Mr. Ruble’s entire 18-year bank
ing career has been spent with
Hawkeye Bancorporation. He served
with the Hawkeye Bank in Burling
ton all of those years except for
1972-73 when he was vice president
and senior trust officer with First
National Bank in Clinton, which is
also an affiliate of Hawkeye Bancor
poration.
Mr. Ruble received his BA in Eco
nomics degree from Iowa Wesleyan

Royce Corp. Purchases
Walnut State Bank
Controlling interest in the Walnut
State Bank has been purchased by
Royce Corp. Herbert Mertz has re
tired as president after 53 years
with the bank, along with Arthur
Mertz, vice president and a director;
Ann Paasch, cashier and director,
and Marie Mertz and Oscar R. Peter
son, directors, who have also retired.
New officers include: George E.
Norden, president and a director;
Donald Bauerkemper, cashier, and
Barry James, Ted Becker, Dr. Law
rence R. James and Albert Schirm,
directors.
Remaining on the staff are: How
ard Hansel, vice president, and Jean
M. Knudtson, Janice Krumm and
Carla Johnk, tellers.
Northwestern Banker, December, 1984

Iowa News

The dates for June have not yet been ^
announced.

Ankeny Director Elected

ARTIST’S draw ing of bank project.

Expansion Begins in Storm Lake

Eldon E. Leonard has been elected
to the board of directors of HawkeyeAnkeny Bank &
Trust, according
to Kenneth W.
Keniston, presi
dent and CEO.
Mr. Leonard
served the U.S.
Navy from 1944
to 1946 and
spent 34 years
with John Deere
. ^^klAriri
Des
Moines
Works until his retirement in 1982.

*
has received approval from the Midway Bank, Cedar Falls
Comptroller of the Currency to re Announces Merger Agreement
locate its main office from Manilla
Phil Berg, president of Midway
to Denison and retain the Manilla lo Bank and Trust of Cedar Falls, and
cation as a branch office.
R. Scott Fetner, president of Iowa
National Bankshares Corp, recently
announced that the boards of direc
Financial Planning Institute
tors have reached an agreement in
Dates Set for 1985
which the Midway Bank and Trust
A Financial Planning Institute, Company would become a wholly
presented in six parts, is being spon owned subsidiary of INBC, parent
sored by the Iowa Bankers Associa company of The National Bank of
tion. Scheman Center, Ames, is the Waterloo.
The Midway Bank and Trust with
location for the institutute, which
will feature one part a month during two offices, opened for business in
1961 and has assets in excess of
the months of January through
$35,000,000. The National Bank of
June next year.
Course agenda consists of Parts 1) Waterloo was chartered in June
introduction to financial planning; 2 ) 1933 and has assets of approximate
risk management; 3) investments; 4) ly $250,000,000. Terms of the agree
tax planning and management; 5) ment to merge will be made avail
retirement and estate planning, and able to shareholders of both banks
6 ) counseling skills, computer analy within the next sixty days. The
merger is subject to approval of
sis, and case studies.
Faculty for the institute includes: regulatory authorities and share
David C. Craig, partner, and Marvin holders of The Midway Bank and
Winick, m anaging p artn er of Trust Company.
Mr. Berg stated that the Midway
Brown, Winick, Graves, Donnelly
and Baskerville in Des Moines. Bank and Trust has been a close
From the Iowa State University friend of NBW for many years
Staff, the following instructors will through the daily processing of bank
participate in the institution: Tahira activities through the NBW data
K. Hira, assistant professor in the center and other correspondent
Department of Family Environ banking relationships.
Mr. Fetner stated that after the
ment; Mark L. Power, assistant pro
fessor of insurance; August R. Ral merger, Midway will be able to pro
ston, associate professor of insur vide not only trust services to the
ance and risk management; Roger Cedar Falls community, but farm
D. Stover, associate professor of management, agricultural loans and
banking and finance, and Howard E. a further expansion of retail and
Van Auken, assistant professor of fi commercial activities such as loans
for business, car and home pur
nance.
Dates for the institute are Janu chases, etc. The merger agreement
Manilla Approval Received
ary 15-17; February 19-21; March calls for an exchange of stock by the
National Bank of Iowa, Manilla, 19-21; April 23-25, and May 20-22. two institutions.

ECURITY Trust and Savings
Bank, Storm Lake, has an
nounced plans for a major expansion
and renovation project for its main
office at Lake Avenue and Fifth
Street. Construction was to begin in
October with completion in the fall
of 1985.
The project consists of expanding
the main floor banking area into the
former Lake Cafe and Mode-O-Day
spaces. The wall between the pre
sent bank and the Lake Cafe will be
removed, to create a spacious and
functional bank lobby with addi
tional offices on the north side. The
Lake Cafe basement will be reno
vated to create an expanded book
keeping department and comfort
able staff lounge. The existing third
floor of the bank building will be re
moved. The second story will remain
essentially as is, with the Odd Fel
lows Hall remaining above the for
mer Lake Cafe & Mode-O-Day stores.
There will be a new entry to the Odd
Fellows Hall at the southeast corner
of the bank. The project has been de
signed by Huntington Harmsen Ew
ing, P.C. in conjunction with Walter
Becker, Bank Design Consultant of
Alta, Iowa.
Exterior design of the remodeled
facility will feature extending the
existing terra cotta masonry north
across the former Lake Cafe and
Mode-O-Day stores. In addition,
new face brick and windows will be
applied to the second floor of the
bank and the former Lake Cafe and
Mode-O-Day buildings.

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

Strength
in Service.

Mark Sorensen

Assistant Vice President
Ag Lending

Lon Kelling
Ag Lending Rep.

Roma Kroll
Assistant Vice President
Investments

(L) Max Larson
President
(R) Jim Anderl
Sr. Vice President

Doug Schmidt
Vice President
Commercial
Lending

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• Item Clearance Services to maximize available funds.
• Investment Services to handle Fed Funds, money transfers, security purchases
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• Loans for a full range of services, including overline and liquidity loans, assistance with your
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• Credit Card Services for merchants and consumers for both MasterCard (including
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First National Bank m
Member FDIC • Sioux City • A ‘BANKS OF IOWA’ BANK

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

Iowa News

Maquoketa State to Expand Facility

Credit will provide “attractive and^
competitive financing,” emphasiz
ing larger lines of credit and tailored
to individual needs of producers and
agribusinesses.
In addition to provision of credit^
the new branches will provide custo
mer referral to a wide range of other
Norwest financial services, includ
ing leasing and estate planning, he
said.
^
Steve C. Hull, vice president and
manager of the Spencer office, is a
former agricul
tural loan officer
Norwest
THIS a rc h ite c t’s draw ing shows M aquoketa State Bank as it w ill appear after the com ple with
Des
tion of an extensive rem odeling project tha t w ill double the bank’s current flo o r space. The Ba n k
project w ill also involve razing the bank’s annex building and incorp oratin g it into parking
Moines.
area. As in the bank’s three previous expansion projects, grow th and increased volum e of
Norwest Agri
business have created the critic a l need for ad ditiona l space. A rch ite cts for the project are
C hrysalis of W isconsin and co n stru ctio n w ill be perform ed by G.L. Stockham & Son, Inc. of cultural Credit
opened similar
M aquoketa. C om pletion of the project is scheduled for O ctober, 1985.
branch offices in
services, including short term sea York and Lex
Norwest Opens Ag Credit
sonal
loans, annual operating lines ington, Nebras
Office in Spencer
of credit and intermediate term ka, last year in
Norwest Agricultural Credit, Inc., loans to qualified farmers, ranchers addition to its home office in Sioux#
Minneapolis, a unit of Norwest Cor and businesses.
Falls, South Dakota.
poration specializing in lending ser
Arlan Tengwall, chief executive
vices to agricultural producers and officer of the credit company, said
agribusinesses, has announced the the two market areas were selected
|
opening of branch offices in Spencer, because each has a “ solid agricul Marie Wilson Leaves IBA
and Fairmont, Minn.
tural production base.”
Marie Wilson, director of educaThe company will provide lending
He said Norwest Agricultural tion/human resources for the Iowa
Bankers Associ
ation, has left
that position to
accept the post
of executive di
rector of the Ms.
Foundation for
Women in New
York. She was to
start in her new
position DecernM WILSON
ber 1.
Marie had been with the asssociation three years and among her ac
complishments were the Iowa
School of Banking which was up
graded to include the new ABA cur-_
riculum; the development of th ^
Commercial Lending School which
will be held Feb. 24 through March
2 , 1985; the Iowa Young Bankers
program which was expanded to in^
elude the Iowa Young Consumer
Project and PEP, and the IBA con
ducted a successful annual conven
tion attracting over a thousand par
ticipants. The human resource de^
partment was upgraded and ex
panded internally and provided con
sulting for member banks, IBA, and
affiliates. Numerous educational
programs were expanded for bank|
ers and staff.

Committed to
making your
bank stand
apart from the

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

Iowa News

Three Join Staff at
Peoples Bank, Waterloo
Peoples Bank and Trust Company
of Waterloo has announced the addition of Dennis R.
Wubbena as per
sonnel director;
James M. Honan
as
assistant
cashier and con
sumer loan offi
cer, and J.P.
Kemps as assis
tant cashier and
commercial loan
D.R. WUBBENA
officer.

1984-1985 at their September meet
ing at the Citizen’s National Bank in
Charles City.
The new officers are: Chairman—
Diane Kupferschmidt, personnel di
rector, Waterloo Savings Bank; Vice
Chairman—Ruth Ann Uetz, assis
tant vice president, First Security
Bank and Trust Company, Charles
City; Secretary—Jo Ann Merfeld, ag
loan officer, Citizens National Bank,
Charles City; and Treasurer—Delores
McLaughlin, vice president, United
Central Bank and Trust Company,
Mason City.
The speaker for the evening was
Mary Garst, director, Chicago Fed
eral Reserve Board. Mrs. Garst
spoke on the Federal Reserve
System and about experiences of
women in management positions.

Madrid V.P. Retires
Eloise Pearson, vice president and
secretary of City State Bank, Mad
rid, will retire this year after 44
years with the bank.
Ms. Pearson, who joined the bank
J.M. HONAN
J.P. KEMPS
as a bookkeeper in 1940, will con
Mr. Wubbena, who holds a doctor tinue to serve as a director.
ate degree in vocational and techni
cal education from the University of Traer Banker Named
Minnesota, most recently was assis To NABW Post
tant professor of the Department of
Darlys M. Hulme, senior vice
Marketing School of Business at the
president
of Farmers State Bank,
University of Northern Iowa, Cedar
Traer, has been
Falls.
Mr. Honan joins the bank after appointed North
six years in the finance business in Central Regional
NABW member
Kansas.
Mr. Kemps joins Peoples Bank ship chair for the
after serving as credit manager for a 1984/85 term. It
major financial corporation in San will be her re
sponsibility, with
Diego, Calif.
the assistance of
the NABW staff
First Security, Evansdale
in Chicago, to coOpens Waterloo Office
o r d i n a t e the
R.K. Hansen, president of First membership activities of the states
Security State Bank, Evansdale, of North Dakota, South Dakota,
has announced the opening of an ad Nebraska, Minnesota, Wisconsin
ditional office located at 3731 Kim and Iowa. Ms. Hulme attended the
ball Avenue in Waterloo.
62nd Annual Convention of the Na
In addition, First Security Real tional Association of Bank Women,
tors L.T.D., a Better Homes and Inc. held October 1-4 in Honolulu,
Gardens franchise, commenced oper Hawaii.
ation October 1. The real estate
agency is a subsidiary of First Se
Two Appointed in Dubuque
curity State Bank.
Dubuque Bank and Trust Com
pany
has announced the appoint
NABW North Central
ment of Michael J. McCullough as
Chapter Elects Officers
assistant vice president, mortgage
The North Central Iowa group of loan officer and John K. Schmidt as
the National Association of Bank auditor.
Mr. McCullough is a graduate of
Women installed new officers for
Northwestern
Banker, December, 1984

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M.J. MC CULLOUGH

J.K. SCHMIDT

the University of Northern Iowa
and previously served as assistant
vice president with Peoples Federal
Savings and Loan in Waterloo.
Mr. Schmidt is a CPA and a grad-#
uate of the University of Northern
Iowa. He previously was with Peat,
Marwick, Mitchell and Company in
Des Moines.

Griswold Executive Named
J. William Daulton has been
named executive vice president and
a director of Griswold State Bank,
according to Mike Keim, chairman.
Mr. Daulton, whose background
spans 32 years of experience in bank
operations, management, agricultur
al and commercial lending, spent the
majority of his career as a vice presi
dent and cashier of the McCook
County National Bank, Salem,
South Dakota.

IBA Commercial Lending
School — Feb. 24-March 2
The Iowa Bankers Association
Commercial Lending School is sche
duled to be held February 24 through
March 2 at Iowa State University in
Ames.
The curriculum for the Iowa Com
mercial Lending School was devel
oped in cooperation with the Ameri
can Bankers Association, industry
experts from throughout the coun
try, ABA staff members, the School
Advisory Board and IBA staff mem
bers. Each course is an integral part
of the entire program place to pro
vide continuity through the entire
week and meet the school objectives.
The IBA Commercial Lending
School (200 level) also serves as a
preparatory school for the more ad
vanced Commercial Lending School
(300 level).
Tuition is $650, which includes
room, meals, casebook and study
materials. The entire fee must ac
company the application. For more
information or registration contact
Judi Carber, IBA, 430 Liberty
Bldg., Des Moines, Iowa 50308.

•

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Federal Reserve Bank of St. Louis

Iowa News

PICTURED at the Executive Forum held in Des Moines by C ontinental Bank of Chicago last m onth are, from left to right in these two
p h o to s— Ed Bottum, vice chmn. of host bank; Bob McKee, pres., Brenton Natl., Des Moines; Harold Becker, chmn., G uaranty B&T, Cedar
Rapids; Bob Vasko, v.p., and Mary Nihlean, bkg. off., C ontinental Bank; Roger Rinderknecht, pres., Brenton State Bank of Jefferson; Ed
Boss, v.p., C ontinental Bank; Russ Holt, dir. and ret. pres., Brenton State, Jefferson, and Phil Adams, 2nd v.p., C ontinental Bank.

Continental Hosts Executive Forums

chandising is the key. They pay at
tention to their merchandise mix,
price
and quality, as well as to proBy BEN HALLER, JR.
motion/advertising
which stresses#
Publisher
convenience, service and merchan
OUR Executive Forums were worst of the trade deficit is behind dise presentation. For financial
hosted in Wisconsin, Illinois us and expects the dollar value to institutions like banks, he con
and Iowa last month by Continental come down a little to help ease the cluded, “Success is not assured but
Bank of Chicago. Meetings were deficit. He reported that plant capa the key to success is the skills you#
held in Madison, Wis.; Rosemont, city is running at 83% and should already have.”
□
111. (O’Hare Airport area); Des stay there.
Moines, la., and Bloomington, 111.
Mr. Boss said there is enough
Hollis W. Rademacher, executive slack in the economy to prevent any Peoples Bank Offers
vice president and recently-named inflation increase if the Fed eases Business Consulting Service#
chief credit officer of the Continental off. (Fed discount window rate
R.K. Sverdahl, president of Peo
and its holding company, Continen dropped one-half point to 8 %% a ples Bank and Trust Company of
tal Illinois Corporation, opened the week later.) He predicted a real Waterloo, has announced that Peo
first meetings with welcoming re growth for the year 1984 of 5 V2% ples Bank is now offering a new ser
marks. Ed Bottum, vice chairman of and 3 V2% for next year. Since the vice through their financial services'
the bank, was the welcoming speak Fed targets are set from fourth quar division. Mr. Sverdahl stated, “To
er at later meetings.
ter figures, he said, the fed must in meet the need of new and growing
Three speakers from Continental’s crease the base for money supply or businesses in the Waterloo/Cedar
officer staff were augmented by Ed boost the money supply.
Falls metropolitan area, we have es
ward E. Furash, president of Furash
Using a series of slides to illus tablished a business consulting ser-'
& Co., who addressed the groups of trate the figures in examples he was vice. This service will offer support
bank executives on the topic, “Maxi using, Mr. Gunlicks discussed capi to businesses in the form of business
mizing Your Bank’s Value: Strate tal solutions and interest rate man planning, monthly operations analy
agement solutions.
gies for Success.’’
sis, and general consulting.”
The bank speakers and their top
Mr. Furash reviewed the analysis
To administer the new program,'
ics were: Edward H. Boss, Jr., vice formula used by his consulting firm Peoples Bank has hired Jon M.
president and senior financial econo to assist management in analyzing a Jones, a gradu
m ist—“ Economic Outlook;’’ Ed bank’s forward position in the mar ate of the Uni
ward F. Dobbins, Jr., senior attor ketplace. He cited lessons learned versity of North
ney—“ Legislative Update,” and from successful retailers who se ern Iowa, with a
William L. Gunlicks, senior vice lected, then filled, a specific niche in BA in financial
the retail markets for the products m a n a g e m e n t .
president—‘‘Financial Solutions. ’’
Mr. Boss forecast a continued up and management style of their com Prior to joining
swing in business, but one at a panies.
the bank, Mr.
Among the firms he reviewed Jones worked
slower pace than experienced in
1984. This will be accompanied by a were Bloomingdale’s department for the Small
small drop of two or three points in stores of New York, K-Mart and Business Devel
the prime rate, which will then go up Kinney Shoes, all used as examples opment Center
J M- J0NES
again next spring as loan demand of individual market segments. All at UNI, serving as a consultant to
picks up. Mr. Boss said he feels the of them, he stated, prove that mer- local businesses.

Northwestern
Banker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Des M o i n e s t i l
Janette Henderson has been
named assistant vice president and
John K. Wieland has been promoted
to commercial lending officer of Val
l e y National Bank.

& Trust of Des Moines. Mr. Good
win is a native of Des Moines and
has a BS degree from Iowa State
University and an MBA from Stan
ford Business School.
* * *
Valley National Bank has filed ap
plication with the Comptroller of the
Currency to relocate its branch at
1200 35th Street to 3738 Westown
Parkway in West Des Moines.

J. HENDERSON

J.K. WIELAND

UCB Systems Officer Named
AIB Banker of the Year

55
expansion of Brenton’s financial ser
vices, is to be in effect on or before
January 1, 1985.
R. Dean Duben will head the
metro bank division as senior vice
president of Brenton Banks, Inc.,
while retaining the presidency of
Brenton First National Bank of
Davenport.
Roger Winterhof will head the
agri division as senior vice presi
dent. Robert D. McKee, Brenton Na
tional Bank of Des Moines presi
dent, will replace Mr. Winterhof as
senior vice president of loan admin
istration for Brenton Banks, Inc.
Mr. McKee also serves on the execu
tive committee of Brenton Banks,
Inc. and on its board of directors.
In conjunction with the imple
mentation of the new plan, J.C.
“Buz” Brenton will be elected presi
dent and CEO of Brenton National
Bank of Des Moines, replacing Mr.
McKee. He will also retain his posi
tion at Brenton Banks, Inc., as ex
ecutive vice president and treasurer.
The company will name a finan
cial vice president to be responsible
for capital planning, investment
banking relationships, budget con
trol and financial analysis. The in
vestment function will be central
ized with the hiring of a vice presi
dent-investment asset/liability man
agement who will control taxable
and nontaxable securities for all
Brenton Banks.
A centralized marketing structure
will be implemented with the ap
pointments of a metro manager and
agri marketing manager and pro
duct manager. Under this arrange
ment, Brenton will more expedi
tiously offer comprehensive finan
cial services to its target markets.

Sandra Lamb was recently chosen
Banker of the Year—1984 by the
Des Moines Chapter of the Ameri
can Institute of Banking. She is
customer support officer for UCB
Systems, Inc., Des Moines, and just
started her tenth year on the AIB
board.
Ms. Lamb currently serves as the
chapter’s permanent secretary, a po Two Directors Named
sition she has held since 1978.
Two new directors were recently
added to the board of National Bank
of Waterloo. Appointed were: James
Stephen L. Byrnes, vice president Brenton Banks Announces
R. Walker, president of Walker’s
marketing in Region IV headquar Reorganization Plan
Shoe Stores, and Donald E. Richter,
ters of Norwest Corporation office in
president
of Richter Stock Farm and
C.
Robert
Brenton,
president,
and
Des Moines, has been named vice
0 oresident and head of Norwest’s William H. Brenton, chairman, of Richter Truck Lines in Reinbeck.
marketing services division at Min Brenton Banks, Inc., have an
neapolis headquarters, effective nounced the adoption of a compre
December 1. (Full story in Twin hensive strategic organizational
plan developed under the guidance
Cities News section of this issue.)
of Arthur Andersen and Company’s
0
* * *
planning consultants. Under the
new plan, all 16 Brenton Banks will
William A. Goodwin, president of operate in either a metro or agri divi
Iowa Concrete Block & Material sion, depending on each bank’s loca
Alompany has been named to the tion and service center. The new
% oard of directors of Hawkeye Bank structure, which will facilitate the
J.R. WALKER
D.E. RICHTER
Ms. Henderson, who will be in
0 -harge of the credit department and
note cage, joined Valley Bank in
1979 as staff auditor and was pro
moted to auditing manager in 1980.
Mr. Wieland joined the bank in
01982 as credit analyst and was pro
moted to senior credit analyst in
September of this year.
* * *

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1984

Convention Calendar
A B A — Am erican Bankers A ssociatio n
A IB — Am erican In stitu te of Banking
BAI — Bank A d m in istra tio n Institute
BM A— Bank M arketing A ssociatio n
IBAA— Independent Bankers A ssociation
of Am erica
N ABW — N a tion al A sso cia tio n of Bank
Women, Inc.
RMA— Robert M orris Associates

National Conventions & Schools
Feb. 3-6— BAI P roductivity Conference,
W estin Bonaventure, Los Angeles.
Feb. 4-6— RMA Executive Series-Risk, Kan
sas City.
Feb. 6-8— RMA Executive Series-Human Re
sources, Kansas City.
Feb. 24-27— BAI Bank S ecurity Conference,
A dam ’s Mark, Houston, Tex.
Mar. 6-10— IBAA N ational Convention, San
A nto nio C onvention Center, San Antonio,
Texas.
Mar. 10-14— ABA C om m unity Bank CEO Ex
ecutive Development Program, Am fac
Hotel, M inneapolis.
Mar. 18-20— RMA Effective Selling S kills
Seminar, Denver, Colo.
Mar. 26-29— BAI Check Processing Confer
ence, Dearborn, Mich.
Apr. 14-18— BAI Bank A udit Conference,
Sheraton, W ashington, D.C.
Apr. 28-May 1— BMA Advertising C onfer
ence, The W istin Hotel, Chicago, III.
Apr. 30-May 3— BAI A ccounting & Finance
Conference, Hyatt Regency, San Fran
cisco.
May 5-8— RMA Com m ercial Loan Docum en
tatio n W orkshop, Kansas City.
May 13-17— BAI Bank Tax Conference,
Hyatt Regency, W ashington, D.C.
May 26-31— BMA E ssentials of Bank Mar
keting School, U niversity of Colorado,
Boulder.
May 26-31 — BMA School of Trust and Per
sonal Financial Services Sales & Mar
keting, University of Colorado, Boulder.
May 26-June 7— BMA School of Bank Mar
keting, University of Colorado, Boulder.
June 2-5— BAI T rust/F inancial Products
Conference, Inter-C ontinental, Boston.
June 23-28— BMA School of Banking Mar
keting C olloquium , University of C olo
rado, Boulder.
July 17-12— ABA N a tion al A g ric u ltu ra l
Bank M anagement School, Iowa State
University, Ames.
Aug. 11-24— G raduate School of Banking,
University of W isconsin-M adison.
Oct. 19-23— ABA Annual Convention, New
Orleans.
Nov. 10-13— BMA 70th Annual Convention,
Sheraton-W aikiki, Honolulu, Hawaii.

State Conventions & Schools
Colorado:
Feb. 17-19— CBA Retail Banking C onfer
ence, Colorado Springs.
Mar. 10-13— CBA W ashington V isit, W ash
ington, D.C.
Apr. 11— CBA/BAI Annual Spring C onfer
ence, Denver.
Apr. 21-23— CBA Ag Banking Conference,
C olorado Springs.

Banker, December, 1984
Northwestern
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

June 6-8— CBA Annual Convention, Broad
m oor Hotel, C olorado Springs.
June 13-15— NABW State Conference, Shera
ton Hotel, S team boat Springs.
Illinois:
Feb. 6— IBA A sset/Liability Management
Conference, Holiday Inn East, Springfield.
Feb. 7— IBA A sse t/L ia b ility M anagement
Conference, Drake Hotel, Oakbrook.
Feb. 20-21 — IBA Com m ercial Credit C onfer
ence, Holiday Inn East, S pringfield.
Mar. 13-14— IBA Bank O perations C onfer
ence, Hotel Pere M arquette, Peoria.
Mar. 27, 28— IBA A sse t/L ia b ility M anage
ment Conference, H oliday Inn, Decatur,
and Sheraton Hotel, Naperville.
May 4-6— NABW State Conference, Clocktower, Rockford Area.
May 6-7— IBA Trust Conference, A rlington
H eights H ilton, A rlingto n Park.
May 20-31— Illin o is Bankers School, South
ern Illin o is University, Carbondale.
June 5-7— IBA Annual Convention, M arriott
Chicago Hotel.
Sept. 11-12— IBA Retail Banking Confer
ence, Clarion Hotel, St. Louis.
Sept. 25-26— IBA A g ricu ltu ra l Credit Con
ference, H oliday Inn, Decatur.
Oct. 9-10— IBA M arketing Conference, Ramada Renaissance Hotel, S pringfield.
Nov. 20-21 — IBA Bank M anagement Confer
ence, H oliday Inn, Decatur.
Iowa:
Feb. 12-14— EFT Conference, Des Moines.
Feb. 24-Mar. 2— IBA Commercial Lending
School, Iowa State University, Ames.
Feb. 27-Mar. 1— IBA Mid-W inter Manage
ment Conference, Keystone, Colorado.
Mar. 3-5— IBA Marketing Conference, Des
Moines.
Mar. 18-20— IBA Ag Credit Conference,
Scheman Center, Ames.
Apr. 13-17— IBA W ashington D.C. Trip.
May 8-10— NABW State Conference, The
Savery, Des Moines.
May 20-21 — Iowa Young Bankers Con
ference, Des Moines.
June 10-21— IBA Ag Credit School, Ames.
June 23-28— Iowa School of Banking, Iowa
City.
July 18-20— MB Annual Convention, The New
Inn, Lake Okoboji.
Sept. 22-24— IBA 99th Annual Convention,
Des Moines.
Nov. 13-14— IBA Consumer Lending/Retail
Banking Conference.
Minnesota:
Mar. 4-5— MBA Senior Bank Management
Conference, Radisson St. Paul Hotel.
Mar. 10-14— MBA/ABA C om m unity Bank
Executive Development Program, Hyatt
Regency, M inneapolis.
Mar. 27-28— MBA A g ricu ltu ra l Conference.
Apr. 17-18— MBA O perations Conference.
May 2-4— NABW State Conference, Duluth
Radisson, Duluth.
May 7-10— MBA W ashington Legislative
Conference, W ashington, D.C.
June 10-12— MBA Annual Convention, Am
fac Hotel, M inneapolis.

June 23-28— M innesota School of B a n k in g ^
St. O laf College, N orthfield.
#
July 21-26— M idwest Banking Institute, Uni
versity of M innesota, Morris.
Aug. 11-16— MBA C om m ercial Lending
School, St. O laf College, N orthfield.
Aug. 22-25— Independent Bankers of M in ^
nesota Annual C onvention, Breezy P o in i#
Resort, Brainerd.
Montana:
Jan. 31-Feb. 1 — MBA Senior Bank Manage
ment and Counsel Conference, Helena.
Feb. 7-8— MBA Ag Bankers Conference, B o z e #
man.
Feb. 25— MBA C om pliance Seminar, Big
Sky.
Apr. 4-5— MBA Marketing Conference, Great
Falls.
May 1-3— MBA Retail Bankers C onference!#
Missoula.
May 8-10— NABW State Conference, Heri
tage Inn, Great Falls.
May 16-17— MBA Trust Conference, Helena.
May 23-24— MBA Commercial Bankers Con
ference, Great Falls.
#
June 13-14— MBA Real Estate Conference,
Kalispell.
June 25-28— MBA Annual Convention, Sun
Valley, Idaho.
Nebraska:
®
Jan. 15-16— NBA Lending Conference,
Kearney Holiday Inn.
Feb. 12-13— NBA Personnel Conference,
Kearney Ramada Inn.
Feb. 20-24— NBA Bank President’s C o n fe r^
ence, Rancho Bernardo Resort, S an ^
Diego, Calif.
Mar. 20-21 — NBA Ag O utlook Conference,
Kearney Holiday Inn.
Apr. 11-14— NABW State Conference, Cornhusker Hotel, Lincoln.
^
May 8-10— NBA 88th Annual Convention,
Lincoln Cornhusker.
North Dakota:
Jan. 28-29— NDBA Chief Executive O fficer
Conference, Kirkwood M otor Inn, B is ^
marck.
^
Jan. 29-30— NDBA Bank Management Confe re n c e /L e g is la tiv e R e ce p tio n -D in n e r,
Kirkwood M otor Inn, Bismarck.
Feb. 20-22— Bank of North Dakota MidW inter Break, Bismarck.
a
Apr. 8-10— NDBA W ashington Legislative
Visit, Hyatt, Regency on Capitol Hill.
Apr. 11-12— NDBA A gricultural Credit Con
ference, Seven Seas, Mandan.
Apr. 23-26— NABW State Conference, River
side Sheraton, Minto.
a
Apr. 24-26— NABW State Convention, MinotW
Apr. 28-30— NDBA/SDBA Trust Conference,
Sheraton Inn, Aberdeen, S.D.
May 1-3— ICBND and M innesota Indepen
dent Bankers Joint W ashington V isit.
May 9-10— NDBA M arketing C o n fe re n c e ^
Holiday Inn, Bism arck.
May 19-24— NDBA North Dakota School of
Banking, University of North Dakota,
Grand Forks.
June 10-11 — NDBA Annual Convention,
Holiday Inn, Bism arck.
a
Sept. 16-19— NDBA Group M eetings.
^
Sept. 25-27— ICBND Annual Convention,
Bismarck.
South Dakota:
Jan. 30— SDBA Legislative Reception a n #
Dinner, Kings Inn, Pierre.

57
Reginald J. Smith has been pro
moted to assistant vice president,
and Kevin D. Powers has been
elected assistant cashier in the bankThe initial response to the service card division. Mr. Smith joined the
has been tremendous, according to bank in 1981 and has been assistant
Tom Atkins, vice president in the secretary of United Missouri Mort
Bankcard Division. The Division gage Company. Mr. Powers pre
had received more than 2,500 appli viously was with Morris Plan Com
cations by the end of October and pany in Overland Park.
Also at the bank, James L. Baska
Mr. Atkins expects the company
will issue 6,000 cards by the end of and Fred J. Ball were elected to the
board of directors. Mr. Baska is
the year.
United Missouri’s first venture president and CEO of Associated
into the private label credit card Wholesale Grocers, Inc. Mr. Ball is
business was last year when it president, CEO and COO of Ball’s
signed with a national chain of hard Super Food Stores, Inc.
ware stores.

^United Missouri Signs Up Sutherland
Lumber for Private Label Credit Card
NITED Missouri Bank’s BankU
card Service has signed a con®cract with Sutherland Lumber Com
pany to offer a new, private label
credit card.
Under the contract signed by
Sutherlands and United Missouri,
® he Bankcard Division will receive
and review all credit card applica
tions, determine credit limits, issue
the cards and process all credits and
^debits for customer accounts. Suth
e rla n d s has 82 retail yards through
out the country now offering cards.
Feb. 21— SDBA Bank M anagem ent Confer_ ence, H oliday Inn, M itchell.
® A pr. 3-4— SDBA Ag Credit Conference,
Kings Inn, Pierre.
Apr. 8-11 — SDBA/NDBA Annual W ashing
ton D.C. Legislative Trip.
Apr. 18-20— NABW State Conference, Hil_ ton Hotel, Rapid City.
® A pr. 28-30— SDBA/NDBA Trust Conference,
Sheraton Inn, Aberdeen.
May 12-14 — SDBA A nnual C onvention,
Rushmore Plaza Civic Center, Rapid City.
Sept. 16— SDBA Group 5 M eeting, Rapid
City.
^ 5 e p t. 17— SDBA Group 4 Meeting, Mobridge.
Sept. 18— SDBA Group 3 Meeting, M itchell.
Sept. 19— SDBA Group 1 Meeting, Sioux
Falls.
^ S e p t. 20— SDBA Group 2 Meeting, Water*
town.
Wisconsin:
Feb. 15-16— WBA Group One Meeting, Radisson, St. Paul, Minn.
Feb. 24-Mar. 3— WBA M id-W inter Retreat,
^
Frenchm an’s Reef Resort, St. Thomas Is
land.
Apr. 10-11— WBA A g ricu ltu ra l Bankers Con
ference, The C oncourse Hotel, Madison.
May 13-16— NABW State Conference, M id
way M otor Lodge, Green Bay.
® M ay 21-22—WBA Bank M arketing C onfer
ence, H oliday Inn & Holidom e, Stevens
Point.
June 16-19—WBA Annual Convention, Marc
Plaza Hotel and Hyatt Regency, Milwaukee.
^Wyoming:
Jan. 31-Feb. 1—WBA Western Ag Lenders
Institute, Casper Hilton.
Feb. 7-8—WBA Credit Conference, Casper.

•

May 3-5— NABW State Conference, Lander.
June 16-18— WBA Annual Convention, Jackson Lake Lodge, Moran.

United Missouri Bank
Announces Promotions
United Missouri Bank of Kansas
City, N.A., has announced the fol
lowing promotions:
Donald E. Kirkpatrick and Harold
E. Hatch have been promoted to
senior vice presidents. Mr. Kirkpat
rick joined United Missouri, former
ly City National Bank and Trust, in
1965 and is responsible for opera
tions for the investment division of
the central securities department.
Mr. Hatch had been serving as se
nior vice president and secretary of
United Missouri Mortgage Com
pany.
New vice presidents include:
Boyd L. Carpenter, who will serve as
a liaison for operations activities be
tween the holding company and all
affiliate banks, and Dan Cunning
ham, who is manager of the private
label division of the bankcard de
partment. Mr. Carpenter was affili
ated with a bank in Nebraska prior
to joining UMB in September. Mr.
Cunningham previously was with
Household Finance Corporation as a
branch and district manager.

A/L Management . . .
(Continued from page 17)

and liability categories than others. We also have some
"o n tro l over rates, but perhaps only within a narrow
band of a few basis points. The object of ALM is to for
mulate a strategy for those assets and liabilities over
which you have control so that goals may be attained
^ t an acceptable level of risk.
w Once an acceptable strategy (or unacceptable out

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BMA Picks Honolulu for
1985 Annual Convention

The Bank Marketing Association
has announced the selection of its
1985 Convention Council which will
coordinate the programming for the
Association’s 70th Annual Conven
tion to be held Nov. 10-13 at the
Sheraton-Waikiki Hotel in Honolulu.
Selection of the 16-member con
vention council was made by BMA
President Smith W. Brookhart III,
who also is president and chief exec
utive of Centerre Bank of Branson,
Mo.
Named by Mr. Brookhart to serve
as chairman of the BMA Convention
Council is George M. Morvis, presi
dent of Financial Shares Corpora
tion, Chicago, a bank consulting
group.
'
REAL ESTATE APPRAISER
Experienced real estate appraiser needed to
supervise operation of appraisal department
and review and critique appraisals on com
mercial real estate loans. Must be desig
nated member or candidate for membership
of either the Society of Real Estate Apprais
ers or the American Institute of Real Estate
Appraisers and have 4years appraisal exper
ience, including 3 years of commercial ex
perience. Send resume and salary require
ments inconfidence to:
F.B. Bruner, Human Resources Dept.
United Federal Savings Bank of Iowa
Locust at Fourth, Des Moines, Iowa 50308.

come) has been determined, the three key projection
factors (growth, rates, and asset/liability mix) may be
changed to determine a new strategy or outcome. This
process of changing factors to determine a new set of
results is called “what-if” analysis. If done by hand,
examining several different scenarios via “what-if”
analysis can be a time consuming process and can,
more often than not, lead to untimely and costly imple
mentations of a specific course of action.
NEXT MONTH: Asset/Liability Management
Models, and Questions and Answers on ALM.
□
Northwestern Banker, December, 1984

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

Protection all ways

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NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 43139, ST PAUL, MN 55164

In Minnesota call 800-792-1030.
In Iowa, Wise., North and South Dakota 800-328-1612.
All other states 800-328-9117.

DigitizedNorthwestern
for FRASERBanker, December, 1984
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

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Complimentary Sales Aids,
Brochures and Point-Of-Purchase
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Free Analysis of Your Current
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Federal Reserve Bank of St. Louis

“You’l l know
just how good
ou rsecu iities
operation is b y
checking the
com petition”
William G. Jurgensen,
Senior Vice President,
Norwest Bank Minneapolis, N.A.,
Member Norwest Financial Institutions Team

asset mix.
“No one knows this better than Norwest Banks.
Which is probably why, today we lead the way in
providing competitive securities, offering a full array
of taxable and tax exempt investment options.
“First off, we’re committed to being the best in
our business and to the investment needs of our
customers. So we work that much harder to put
together securities packages that are compatible with
your investment strategy.
“Being a major government security dealer
and bank municipal underwriter allows us to deal
more aggressively in all securities. Whether you’re
interested in T-Bills, T-Notes, T-Bonds, Commercial
Paper, Government Agency Securities, or Municipal
Bonds and Notes.
“We pride ourselves on being able to offer some
of the most competitive pricing available. Fact is, we
specialize in odd-lot trades.
“Best of all, our Norwest name gives us the clout
to compete all across the securities board. That
includes staffing up with some 22 top-notch traders
and 45 sales professionals who know the securities
business—inside and out. And then equipping them
with state-of-the-art technology for up-to-the-minute
trends and pricing information.
“Norwest Banks also provides safekeeping and
portfolio analysis services for all your securities. An
added convenience in this fast-paced investment
market.
“So if you’re interested in finding out more about
our securities operation, call 612-372-9464 for the
name of your Norwest Securities Sales Representative.
Or simply call your Financial Institutions Client
Executive at the nearest Hub Bank.”
Hub Bank Locations:
Norwest Bank Bismarck, N.A.
Norwest Bank Des Moines, N.A
Norwest Bank Duluth, N.A.
Norwest Bank Fargo, N.A.
Norwest Bank La Crosse, N.A.
Norwest Bank Mankato, N.A.
Norwest Bank Marshall, N.A.

Norwest Bank Mason City, N.A.
Norwest Bank Midland, N.A.
Norwest Bank Minneapolis, N.A
Norwest Bank Omaha, N.A.
Norwest Bank Rochester, N.A.
Norwest Bank South Dakota, N.A

Members FDIC

Financial Institutions Group

NORWEST CORPORATION

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis