The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
J • The Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merchants national Ban D ecernber , 198~ 5 Dear B a n k e r s : _ Hiffprent. One . e w y e a r c o m e s c h a n g e ; 1C o r r e s p o n d e n t S e r v i c e s D i v r With e v e r y new yea , ce in o u r C o r r e s p o n d will retire, s u c h t r a n s i t i o n w *l l t a k e p l a c 86 J o h n E • « e ffe c tiv e cion E ffe c tiv e J a n u a r y , responsibility as w a n a g 5erry N . T r u d o _ has assumed r esp 1, Novem ber we 1985. R V Of w îs h him th e v e r y b e s t m th e J o h n fo r respondent tu t i t -,o n m an y , ip r r v b r i n g s to h is P A s s u c c e s s o r to ° n ' J e r r y jo in e d IVtNB lp o s t v U t e b a n k i n g e x P ^ r ‘ f e n C e *a c o m m u n ity b a n k e r *n P a s n u m e r o u s y e a r s f * aU n -( v e r s i t V o f Iow a ^ 19^ jew D g raduation from t r c ,a) Loan and C re d it D iv s ib iltty 1971 , m our y e a r s of b a n k s is Co jo in e d J e r r y 00^ banK n^Q w ell c o rre s p o n d e n t ^ m a p y We u e to b a n k s h a v e - £c t h is y e a r s s e r v e of respondent g a n d . d staff w i l l la te n te ent s e r v ic e s y o u c o n t m d y o u r e n jo y . co n 4d ( n g o n b e h a lf o f all JP 9 t w is h y o u t u n i t y to a n d lh e m s g r e e t i n g » Warme a n d co rre sp o n d th e We ¿rfter s e r v in g Io w a. U p o n s u m e d r e s p o n e p a r tm e n t. in is io n . J e rry s se rvin g to m a n y s. y o u . J e r r y e n t e r p r o v i d e . e a k S p e a o p p o r s e a s o of Set d e d -,c a l l o n k n o w w _,_r A s anrf h is — o u r a n d v e r y b e s t m t d e th e g p e to fa m ilie s th e c o m in g y e a r , ta k e th is b r i g h t e s t regards H e n r y Royej P resident HENRY ROYER, JERRY N. TRUDO, TERRY M . MARTIN P re s id e n t V ic e P re s id e n t 8. M a n a g e r V ice P re s id e n t DENNIS O. EARHART, STANLEY R. FARMER, GARY L. BARTLETT, ROBERT J. LOUVAR, V ice P re s id e n t A s s is ta n t V ice P re s id e n t A s s is ta n t V ice P re s id e n t A s s is ta n t V ice P re s id e n t Merchants National Bank ib i Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member F.D.I.C. A BANKS OF IOWA BANK ' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 C.C. Hope Top Candidate For FDIC Director Post Nœ m «TERN j ^ Î m k î x / DECEMBER 1985 • 92nd Year • No. 1467 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER FIVE prominent participants in the ABA National Agricultural Bankers Con ference in Dallas last month are pictured at the platform in this photo. Clockwise, from lower left, are: Frank W. Naylor, Jr., Under Secretary of Agriculture, Washington, D.C.; Alan R. Tubbs, pres., First Central State Bank, DeWitt, la.; Mar vin R. Duncan, senior deputy governor, Farm Credit Administration, McLean, Va.; Michael E. Fitch, vice president, Wells Fargo Bank, N.A., San Francisco, who suc ceeded Mr. Tubbs as chmn. of the ABA Ag Bankers Division and as this year’s conference chairman, and Michael Boehlje, head, Department of Agricultural and Applied Economics, University of Minnesota, St. Paul. LEADING the Nebraska Independent Bankers Association for 1985-1986 are, from left: Pres.-Elect— Roy O.Yaley, pres., Nebraska State Bank, South Sioux City; Ex ec. Vice Pres.— Kurt Yost, Lincoln; Pres.— Fred Otten, Pres., Commercial State Bank, Hoskins, and 1st Vice Pres.—James Bohart, v.p. & cash., Harvard State Bank. FEATURES 11 Ag bankers meet in Dallas See continued stress; hope land prices may bottom soon 14 EFT marketers must think retail Thomas E. Sammon of NCR advises merchants’ mindset 16 The bank examination James Shumaker of Kansas City gives FDIC perspective 19 Final tribute to Willis Alexander Respected ABA leader dies at age 66 • C.C. Hope, Jr., retired vice chair man of First Union Corp., Charlotte, N.C., and the 1979-80 p resi d e n t of th e American Bank ers Association, was reported to be the top candi date for the posi tion of at-large director of the Federal Deposit Insurance Cor poration last month. Although Mr. Hope had completed all the usual FBI clearances, at press time he had not yet been formally nominated b £ the White House to the third seat on the three-man FDIC board. Mr. Hope, long active in ABA af fairs and well-known throughout the industry, would be the Democrat a j0 pointee to the board. The newly-confirmed chairman of the FDIC is L. William Seidman, most recently Dean of the College of Business at Arizona State Unive® sity. For many years he was manag ing partner of Seidman & Seidman, a New York CPA firm. Senate hearings were underway last month on confirmation of thi® nomination of Robert L. Clarke, a prominent Houston, Tex., attorney to be the new Comptroller of the Currency. The C of C is auto^ matically an FDIC director. ® Both Mr. Seidman and Mr. Clarke have stated they will review the con troversial new disclosure rules pre viously announced by the FDIC ancL Comptroller’s offices. ® DEPARTMENTS 5 21 22 27 28 32 32 33 Bank Promotions Minnesota Twin Cities Wisconsin Illinois South Dakota North Dakota Wyoming 34 36 39 42 44 47 56 58 Colorado Montana Nebraska Omaha Lincoln Iowa Des Moines Index of Advertisers ABA Promotes Two NORTHWESTERN BANKER 1535 Linden Street, Suite 201, Des Moines, Iowa 50309 Publisher & Editor Associate Publisher Ben Haller, Jr. Robert Cronin Phone (515) 244-8163 Associate Editors Carla Lukenblll Diane Nelson Becky McBurney No. 1467 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription $1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Donald G. Ogilvie, executive vie® president of the American Bankers Association, has announced the pro motion of two long-time executives in a move designed to strengthen management of the association’^ Banking Professions Group. Effective immediately, Robert A. Wallgren, 43, is promoted to the new position of Group Director, B anking Professions. Succeeding Mr. Wall® gren as director of the Consumer Fi nancial Services Group is John C. Wolff, 34, formerly manager of ABA’s Security and Risk Manage ment Division and ABA’s Paymen® Systems Policy Board. 5 J Bank Promotions ROMOTIONS and other an P nouncements have been made by the following banks and holding companies: American National Corporation, Chicago: Michael E. Tobin, chair man and CEO, has announced that directors elected Ronald J. Gray^heck, 51, to president of the corpora tion and of its principal subsidiary, American National Bank and Trust Company of Chicago. Mr. Grayheck has been senior executive vice presi d e n t and head of commercial bank ing at American National since 1977 and has been a director since 1982. An officer at the bank since 1962, Mr. Grayheck received both his un d e rg ra d u a te and MBA degrees from the University of Illinois at Champaign-Urbana. Mr. Grayheck replaces Keene H. Addington, who has resigned to pur s u e other interests. Mr. Addington joined the bank in 1975 and was president and COO the past seven years. Cole-Taylor Financial Group, Chi cago: Daniel Kirsch has joined the group’s corpo rate business de velopment staff as vice president at Main Bank, it was announced recently by Sid ney J. Taylor, chairm an and CEO. Mr. Kirsch will be located at D. KIRSCH Main Bank-Chicago office, 1965 North Milwaukee Avenue. Mr. Kirsch served previously as vice chairman at Manufacturers Bank in Chicago. He received his de gree from the University of Illinois. United Missouri Bancshares, Inc., Kansas City, Mo.: Dan S. Spencer, Jr., vice chairman and advisory di rector of the lead bank, United Mis souri Bank of Kansas City, N.A., has been elected a director of the holding company. He holds a Bache Let’s talk . .. if your personnel costs are greater than they should be, we believe we can help .. . so, let’s talk! M/A SWORDS ASSOCIATES. INC. PROFESSIONAL BA N K IN G CONSULTANTS 4900 OAK SUITE 301 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis KANSAS CITY, MISSOURI 64112 (816)753-7440 lor’s degree from Kansas University and an MA in Economics from Creighton University in Omaha. The holding company and the bank have reorganized the Comp troller’s department to consolidate accounting activities, implementing the change with these elections and promotions: William M. Teiwes to executive vice president, comptroller and chief financial officer of the holding com pany. He continues as executive vice president and comptroller for the bank. He joined the bank in 1964. Marshall D. Hendrickson to se nior vice president/administration of the holding company with responsi bility for risk management, security and regulatory compliance for the 22 affiliate banks. He joined the bank in 1962. Gary L. Lasche’ to vice president and assistant comptroller of the bank and promoted to vice president for the holding company. He con tinues as assistant comptroller for the company. He is responsible for regulatory and financial reporting for UMB-KC and the holding com pany. He moved from a Des Moines bank to UMB-KC in 1983. In conjunction with the Comptrol ler’s Department reorganization, these additional changes were an nounced: Roberta Byers, Cynthia A. Par ker, Debra J. Porter and Ken Sandrock to vice presidents; Carol A. Eber and Dennis Sines to assistant vice presidents, and June Banks, Karen Beets and Jill D. Cederburg to assistant accounting officers. United Missouri Bancshares also announced that James Triplet has joined the company as a loan review officer, working with the 22 affili ates. He was associated with the Missouri Division of Finance prior to joining UMBI in August. United Missouri Capital Corpora tion, a wholly-owned subsidiary of UMBI, has announced the election of Joseph M. Kessinger as executive vice president and manager. He had been associated with a Kansas City corporate financial consulting firm before joining the corporation in September. In the investment banking divi sion of UMB-KC, Robert W. Brickson and Stephen A. Robertson have been promoted to assistant vice presidents. Northwestern Banker, December, 1985 Firm up your plans for the future. At HBE, the first step in planning your new buildim* is planning your future.Before our architects can begin, we recommend a thorough study of your entire operation. Our expert team of analysts dig into your departmental relationships, work flow, volume of transactions and data processing needs. With these details, we can “plan, .n* immediate operational efficiencies. Yet our analysts go further and spell out the staffing requirements you’ll face in the years ahead. These findings enable our architects to design with an eye toward *he future and build today the solutions to tomorrow’s needs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis After determining this facility's long-term ex pansion needs, HBE developed a plan to join the existing traditional facility to a contemporary structure next door. The design provided a new “one building" look which maximized employee productivity and customer convenience. Interior design is an im portant part of the planning stage. In the above project our client's exquisite antique furniture was incorporated into the design. These two different lobbies were both planned as a result of HBE walk-in traffic studies. Both were designed to be spacious enough to handle peak hours, Sim ilar objectives, but distinctly different styles. For more information, return this form to HBE, 11330 Olive Street Road, St. Louis, MO 63141 Get a better build or contact Sally Eaton at 1-800-HBE-4677. TITLE NAME NAME OP FINANCIAL INSTITUTION Bank Facilities ADDRESS STATE ZIP CODE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHONE NO. • ABA 1986 National Assembly for Community Banking, Feb. 16-19, San Diego. Specifically for CEOs. Three bankers will recount innova tive actions they took to solve proJ|| lems and increase profits. Four 1-hour sessions on microcomputer applications in bank—asset-liability management, strategic planning, commercial lending and selling prf| ducts and services. Concurrent workshops and peer groups ses sions. Call ABA at 202/467-4013. • ABA 1986 Executive Round Table, April 2-5, Comelback Iri^ Scottsdale, Ariz. Exclusively for mid-size bank CEOs—limited to 75 1984-85 American Bankers Association (ABA) Education Policy & Development Council Chairman C. Ivan Wilson (far left), chairman of the board of First City Bank - Corpus Christi, bankers. Mergers, acquisitions, stra Tex., presents ABA Professional Development Program accreditation certificates to repre tegic planning, financial delivery sentatives of four state bankers associations at the ABA Convention in New Orleans, the systems. Call ABA at 202/467-673® first states to be so accredited. Also pictured are (I to r); Bryan K. Koontz, exec, dir., Wisconsin Bankers Association; • BAM 1986 Electronic Banking Dean A. Treptow, pres., Wisconsin Bankers Association, and pres., the Brown Deer Bank, Product Strategies Conference, Brown Deer, Wis.; Frank E. Brawner, exec, v.p., Oregon Bankers Association; Robert C. March 2-5, San Francisco. Market Anderson, exec, v.p, Washington Bankers Association; Charles D. Brummel, president, Oregon Bankers Association, and pres., Security Bank, Coos Bay, Ore.; and Berne K. Jen ing strategy, the competition, ca|^ sen, exec, dir., Idaho Bankers Association. applications, concurrent workshops, pricing and positioning strategies, ences being offered in coming exhibits. Call Terry Ann Cunning Management Conferences months by the American Bankers ham at 312/782-1442. Offered by Associations • RMA Workshop on Loan Pri# Association, Bank Marketing Asso Following is a brief resume of ciation and Robert Morris Associ ing and Profitability Analysis, Jan. 24, The Eldorado Hotel, Reno, Nev. several management level confer ates: Four States Get PDP Accreditation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 Open to RMA and non-RMA alike. For lenders, credit department man agers, senior analysts. Profitability model will be used. Pricing deci0 sions, risk, cost of funds, capital allocation, effects of the deposit rela tionship. Fee $190 for RMA, $240 non-RMA. Call Jackie Winans at RMA, 215/665-2850. • duces bank checks, short-run computer forms, one-write account ing systems and a variety of other stationery products for business and office use. Electronic Displays Keep Hockey Fans Informed Both the University of Minne sota’s Golden Gophers and the Pio Deluxe Check Printers, Incorpo neers of the University of Denver rated, St. Paul, Minn., has pur- will use equipment designed and 0 chased all of the capial stock of Col manufactured by Daktronics, Inc. of Minneapolis and Norwest Banks. well Systems, Inc., a privately held Brookings, S.D., to keep spectators, The University of Minnesota also business forms printer based in players and the media informed dur uses Daktronics equipment to score Champaign, 111. Colwell has been in ing hockey games this season and and time Gopher basketball and business since 1927, and its sales in for years to come. volleyball games. A scoring, timing and information 01984 w ere a p p ro x im a te ly Installed in Mariucci Arena in $33,000,000. Minneapolis are two solid state elec display similar to the University of Colwell concentrates primarily on tronic scoreboards which display Minnesota’s was installed at the short-run business forms and re game time, goals, shots on goals and University of Denver. The sponsor lated supplies for medical and dental penalties. Incorporated into one of of the Pioneer’s hockey display is 0 offices throughout the country. It the scoreboards is Daktronics the Rocky Mountain News, a daily serves this market through direct unique Starburst TM color message/ Denver newspaper. The message/ animation system. A 24 x 96 matrix animation display will be used for mail solicitations. Eugene R. Olson, chief executive of lamps, with a multi-colored other arena activities as well. Both the Minneapolis and Denver officer of Deluxe, stated that the ac- screen, provides a full color mes installations tire controlled by the # quisition of Colwell complements sages and animation for viewers. Deluxe’s present business forms The scoreboard sponsors include Venus 4000 TM color operating sys product line. Deluxe presently pro- WCCO Broadcasting, Coca Cola of tem. Deluxe Acquires Firm Face to face. That’s the way Drovers likes to conduct business with its correspondent banks. Day in, day out our calling officers are on the road, arranging acquisition financing, handling overline loans, assisting with investments. Max Roy travels Iowa. Wisconsin sees a lot of Skip Jackson. Larry Nau visits banks in Illinois. Kathy Hardy and John Crotty concentrate on the Chicagoland area but are always available to any Midwest banker. If you’d like to see eye to eye with your correspondent banker, call Drovers toll-free at 1-800-621-8991. In Illinois call 1-800-572-2498. U V C I 111 L C I V J d l L O , d i will trawl. Drovers Bank of Chicago 47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C. A Cole-Taylor Bank This key can help your people do more than you ever thought possible. I t’s p a rt of TSI’s Office Automation System, a sophis ticated hardw are and soft ware package designed to increase productivity at both small and large institutions. H ere’s how: The system puts complete customer infor mation at each teller’s finger tips. And gives you platform workstations th at access TSI’s complete family of on-line services and serve your per sonal computing needs as well. The on-line teller system speeds service w ith immedi ate access to information. It cuts operational costs by auto matically preparing receipts and documents. And it speeds teller balancing with an elec tronic journal feature. Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The platform automation system assists your consumer loan officers in several ways. It provides access to all on line custom er and account information. Performs finan cial and loan calculations automatically to speed ser vice. And helps your platform personnel cross-sell additional products and services. The man agem ent autom a tion system, m ean while, helps you make accurate commercial lending decisions. And gives you autom ated sup port for those critical resource planning and asset/liability m anagem ent tasks. Finally, TSI’s Office Auto mation System even saves you money by cutting hardware costs. W ith these multifunc tion workstations, a single unit replaces an on-line CRT and a personal computer. For more information, call (303)293-5500. Because you can never be too productive. TSI. Consider the Profitabilities. TransAction Systems, Inc. A Subsidiary of First Interstate Services Co. 11 PRINCIPAL speakers at the opening general session of the ABA Natl. Ag Bankers Conference were, from left: Marvin Duncan, sr. dep. gov., Farm Credit Administration, McLean, Va.; Jerome K. Green, pres. & ceo, J.l. Case, Inc., Racine, WIs., and Michael E. Fitch, chmn. of ABA Ag Bankers Dlv. and 1985 Conference Chmn. and v.p., Wells Fargo Bank, N.A., San Francisco. RIGHT—Al Tubbs (left), pres. First Central State Bank, DeWitt, la., received additional congratulations and thanks for tireless work on behalf of the ABA from ABA Pres.-Elect Mark £lson, who is also pres., Security State Bank, Fergus Falls, Minn. Mr. Olson announced that Mr. Tubbs had been presented recently with tne prestigious Silver Eagle Award from ABA for his work. At ABA National Ag Conference JVg speakers look to future with hopes for Farm Bill, improved economy # By BEN HALLER, JR. Publisher ERIOUS problems will continue S to plague agricultural banks and ^ieir farm customers in the year ahead, according to speakers and registrants alike at the ABA’s 1985 National Agricultural Bankers Con ference at the H yatt Regency in Dal• s last month. The greatest concern expressed is for the approach that Congress and the Administration will take on two critical issues—a bailout of the Farm Credit System • i d fashioning the new Farm Bill. All speakers underscored the ne cessity for Congress and the Admin istration alike to face up to the re sponsibility for decreasing the fed• al deficits in a positive manner and to a significant degree—now! They also tied in with this basic premise the devaluation of the dollar to aid the lopsided foreign trade imbal•lc e, and taking steps aggressively to increase American export sales, especially for the ag sector. Added to the voices of general session speakers who painted the fl'oad brush strokes of the realities of ag problems and American poli tics were dozens of concurrent ses sion speakers who probed the many areas of potential improvement in ^ e economy, bank profit and farm gains. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis However, hope springs eternal for farmers, and ag bankers who finance them. Two general session speakers who brought a more positive, opti mistic viewpoint to the platform were keynoter Jerome K. Green, president and CEO of J.l. Case, Inc., Racine, Wis., and John F. Marten, the well-known humorous staff eco nomist for Farm Journal magazine, West Lafayette, Ind. (Their com ments were reviewed briefly in the December 2 Weekly Newsletter.) Mr. Green reviewed and made available to registrants a 111-page report on his company’s recent sur vey, “Farmer Attitudes Toward Agricultural Lenders.” The survey among 679 North American Class IA farmers in the United States and Canada has many positive factors in it from those respondents favoring commercial, local ag bankers. John Marten gave his own assessment of commodity prices and his insights as a farmer and economist into the farmland value question. He feels land will drop slightly more in com ing months to a point roughly 40% of where it was at the peak of infla tion, and will then stabilize, with new loan contracts and valuations based on the reduced land value. His example was a northern Illinois farm that peaked at $4,500 an acre, is now down to $2,200 an acre, but could probably be bought for $1,600 to $1,700 an acre. The seriousness of the 500 ag bankers attending the meeting, along with approximately 300 spouses, was evidenced by full at tendance at every general session, the 24 concurrent sessions pre sented over a three-day period, and the 35 round table discussions. The first general session, for example, found registrants assembling for coffee and pastries by 7:00 a.m. and the session starting promptly at 7:50 a.m. After two major ad dresses, the bankers went directly into a series of concurrent sessions at 10:30 a.m., adjourning in time for the noon luncheon and two Congres sional speakers, then spending all afternoon with concurrent sessions from 2:00 p.m. to 3:15 p.m. and 3:30 p.m. to 4:30 p.m. Many of the latter had overflow crowds and were held in session until the final minute with question and answer sessions and floor discussion. The same busy schedule prevailed throughout Tues day and up until adjournment Wed nesday noon. Iowa again led the states in atten dance with 179 registered in ad vance, consisting of 101 bankers, 78 spouses, 90 bankers and 77 indivi dual banks. Kansas was second with 92 in total, and Nebraska was third with 78, made up of 44 bankers, 34 spouses, 41 bankers and 32 indivi dual banks. Illinois was fourth with 49 and the host state of Texas was way back at 36 total registrants. One of the standing-room-only sessions was “Restructuring Agri culture,” moderated by Alan R. Tubbs, president of First Central Northwestern Banker, December, 1985 12 LEFT—Panelists for the “Workable Loan Review Systems” concurrent session were Dwight Conover (left), pres., and his brother, C.B. Neal Conover (right), chmn., 1st Natl., Creston, la., and Rodney L. Dixon, field mgr., Office of the Comptroller of the Currency, Des Moines, la. RIGHT—Panelists for the “Dealing with Bank Examiners” concurrent session were (from left): Ron R. Poor, pres., City B&T, Moberly, Mo.; A. David Meadows, assoc, dir. of div. of bank supervision, FDIC, Washington, D.C., and John Ryan, bank & fin. consultant, Arky, Freed firm, Miami, Fla. 0 State Bank, DeWitt, la., who was 1984-85 chairman of the ABA Ag Bankers Division. The two panelists were Michael D. Boehlje, head, De partment of Agricultural and Ap plied Economics, University of Min nesota, St. Paul, and Frank W. Nay lor, Jr., Under Secretary of Agricul ture for Small Community and Rural Development, USD A, Wash ington, D.C. Dr. Boehlje was a pro fessor of ag economics at Iowa State University in Ames, la., for a num ber of years until his appointment to the U of M at the start of the current school year. Dr. Boehlje outlined the options available in three key areas: 1. Things the ag industry must do to TWO Panelists for the “Restructuring Agri culture” session were Michael Boehlje (left), head, Dept, of Agricultural and Ap plied Economics, University of Minnesota, St. Paul, and Frank W. Naylor, Jr. (center background), Under Secy, of Agriculture for Small Community and Rural Development, USDA, Washington, D.C. Moderator was Alan R. Tubbs, pres., First Central State Bank, DeWitt, la. Digitized Northwestern for FRASER Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis adjust itself. 2. How participants (including government) can ac complish those adjustments. 3. The role of the public sector. Mr. Naylor reviewed the two actions underway at the time in Washington to deal with those options—the FCS bailout bill and the new Farm Bill. He stated flatly that neither the House nor the Senate Bill would be accep table to the President in their pre sent form and would be vetoed. He said if major flaws aren’t resolved in time to have the bill passed by Christmas then it would mean hold ing over to January 20, after which there are two sets of holidays and then a realistic time frame becomes April or May—long beyond the time when farmers and ag bankers alike must be making their loan agree ments prior to planting time. Mr. Naylor said “the issue of fed eral intervention (in the FCS prob lem) being necessary revolves around FCS assisting itself and hav ing access to the window.” He said if the FCS bill “has $6 billion credit help in it, it will never see the light of day.” He sees no help for commer cial banks in the bill, stating their best bet is the FmHA guaranteed loan program, which has been improved. More complete details of their presentations were given in the Devember 2 issue of the N orthwest ern B anker Weekly Newsletter. The conference program actually got underway on Sunday with a Musical Fellowship Service featur ing an address by Dr. Norman Vin cent Peale and a concert by the Texas A&M University Singing Cadets. Alan R. Tubbs, chairman of the ABA Ag Bankers Division in 198485 and president of First Centra^ State Bank in DeWitt, la., was singled out for special recognition several times. Michael E. Fitch, Mr. Tubbs’ successor as chairman, and also vice president of Wells F arg # Bank, N.A., San Francisco, gave an excellent tribute to Mr. Tubbs for his work as Chairman and for extra curricular duty representing ABA at numerous Congressional heai# ings, as a member of Secretary of Agriculture John Block’s banker ad visory committee, and other assign ments he accepted. ABA PresidentElect Mark Olson, president, Secur® ty State Bank, Fergus Falls, SPEAKING at the final general session was Jo Ann Doke Smith, pres., Natl. Cattlemen’s Assn., Denver, Colo. A fifth generation farmer/rancher at Ocala, Fla., Mrs. Smith and her husband operate a 1,000 cow herd. 13 LEFT— Pictured at Nebraska reception were Jack Moors, chmn., American Natl., Sidney, and Helen, with Virginia and Kelly Holthus, pres.-elect, Nebraska Bankers Assn, and pres. & ceo, 1st Natl., York. RIGHT—Taking part in program at Iowa breakfast were, from left: Wes Ehrecke, IBA govt, rel./ag dir., Des Moines; Ai Tubbs, pres., First Central State Bank, DeWitt; Harold Stones, exec, dir., Kansas Bank ers Assn., and Paul Quam, IBA ag comm. chmn. and sr. v.p., Hayesville Savings, Hayesville. Minn., announced that Mr. Tubbs had been presented ABA’s highest •honor, the prestigous Silver Eagle Award for his service. Kenneth W. Lee, associate director of ABA’s Corporate Financial Services Group, presented a gift on behalf of the •bommittee to Al and Myrna Tubbs. Also addressing the opening gen eral session after Mr. Green was Marvin Duncan, senior deputy gov ernor of the Farm Credit Adminis tra tio n , McLean, Va. He outlined his analysis of the FCS situation, in cluding his formula for making the FCA totally independent from FCS by becoming an adversarial regula t o r , with duties comparable for FCA to the role of the Comptroller of the Currency with national banks. Concluding the morning session was a Newsweek Periscope Panel te a tu rin g four of the magazine’s top reporters. At the Monday noon luncheon, Reps. Sid Morrison (R., Wash.) and Harold L. Volkmer (D., Mo.) also t o o k a look at potential Farm Bill legislation. Both said they support the ABA position outlined by Alan Tubbs at Congressional hearings _that the FCS should not be made tv e ll at the expense of commercial lenders. Neither held out much hope about how the Farm Bill would be resolved, except to state that it is “a ^long-term problem” and the non®farmer majority of Congress remem bers too clearly how the 1981 expen sive farm bill didn’t work and are seeking a different approach. ^ Mr. Fitch and Mr. Tubbs mode rated a panel presentation given by John Hopkin, managing principal of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hopkin & Associates, Inc., of Col lege Station, Tex., and three of his associates at Texas A&M, on results of the in-depth ag study commis sioned by ABA. Results of this survey have been made available to all member banks. Speakers at the final session in cluded John Marten, Jo Ann Doke Smith, president of the National Cattlemen’s Association, Denver, Colo., and Tommy Lasorda, colorful manager of the Los Angeles Dod gers. Mrs. Smith and her husband operate a cow/calf ranch of 1,000 cows at Ocala, Fla. She is a fifth generation in the cattle breeding and feeding business. Many of the concurrent sessions offered ag bankers an assortment of new ways to deal aggressively in to day’s climate and produce a profit, or an improved, more solid customer base—or both. Bankers unable to attend the con- PANELISTS for the “Effective Loan Agree ments” concurrent session were A. Gene Nelson (left), prof. & head, Dept, of Agricul tural and Resource Economics, Corvallis, Ore., and Gary E. Wrage, pres., Roseland State Bank, Roseland, Nebr. ference, or who missed concurrent sessions while attending another of their choice, may obtain individual tapes or a complete set of about 30 tapes of the entire conference by contacting ABA. The 1986 National Agricultural Bankers Conference is scheduled for November 16-19 at Opryland Hotel, Nashville, Tenn. □ ABA Competitech Describes D&O Liability Insurance The American Bankers Associa tion Community Bankers Council developed a new Competitech, “Bank Directors’ and Officers’ Lia bility Insurance: What You Have — If You Can Get It,” to help bankers understand director and officer insurance coverage. This issue of Competitech pro vides an overview of directors’ and officers’ (D&O) liability insurance policies. It explains the terms most commonly found in bank D&O poli cies, discusses the scope of the coverage afforded by those policies, and reviews the procedures typically followed by the insurers in handling claims. Also covered in this publication are the reasons for a hardening of the market for D&O coverage. For more information or copies of this Competitech booklet contact ABA Order Processing, 44-B Indus trial Park Drive, Waldorf, MD, 20601, (202) 467-4118. To order, re quest publication number 024804. Cost of the issue is $30; ABA mem ber discounted price is $20. Northwestern Banker, December, 1985 14 4> EFT marketers must think like retail merchants OR electronic funds transfer (EFT) to flourish at F the point-of-sale (POS), financial institutions must start thinking like merchandisers, abandon proprie tary POS network dreams, and embrace a “single streaming” concept. A single-streaming system is one which integrates all forms of non-cash consumer payments — credit, check authorization or guarantee, direct debit and elec tronic check — allowing all to be handled at a single POS terminal and single phone line. With single streaming, proprietary bank cards would still exist, but merchants would determine which cards and pay ment forms would be accepted at the terminals in their stores. In other words, all POS transactions would be fed to regional network switches, which would act as “gate ways” to a nationwide consumer payment mechanism. This switch architecture, with common subsystems, would let retailers adopt simple and uniform opera tional procedures and give them the freedom to deter mine which payment mechanisms should be accepted by store, consumer, and geographic area. Acceptance of various payment mechanisms could then be coordi nated with other marketing plans. This nationwide system could and should embrace automated teller machine (ATM) processing, even though ATM transactions aren’t official consumer payments. Further, the business conducted over future single stream networks will extend to electronic food stamps and “cents-off” coupons, hook-ups to retail marketing data bases, and inter-store electronic mail. Load Cables to Cut Costs The idea is not to run multiple phone lines into a store, but to load as much traffic as possible onto a single cable to cut costs. Success for each institution will depend on its ability to leverage off communica tions utilities. That means POS networks will evolve into information transfer networks, with software and data bases much different from what exists today. We have to think past fund transfers to other valuable items which can be handled electronically. Working with retailers and bankers has convinced me that a single-streaming system built through finan Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By THOMAS E. SAMMON Assistant Vice President EFT Systems Division NCR Corporation Dayton, Ohio cial and retail cooperation makes both economic and marketing sense. To illustrate data base possibilities, we can sketch the marketing intelligence potential that 9 could be opened up by a single-stream network which offered universal customer access. The ability to log items purchased by customers, by store, buying dates, and frequency would put at retailers’ disposal a custo mer central information file. It could be tapped to pro- 0 duce lists for direct-mail marketing, to assess an ad’s impact, or to analyze demographics. Time for Action Is At Hand Though years of talk about an EFT/POS explosion has so far yielded little in the way of concrete results, • the time for action is close at hand. Given the invest ment base, it is impossible for financial institutions to back away from the commitment to electronic transac tions, which requires POS development to become tru ly cost effective. ® Statistics bolster this view, and we contend that ter minal sharing is gaining acceptance. For instance, U.S. depository institutions are collectively spending more than $2 billion a year for ATMs, or about $70 annually per active ATM user (there are about 35 million). Some® 450 retail banking networks now support more than 54,000 ATMs. Of these networks, 118 are shared (local, regional or national), which has boosted the percentage of shared-access ATMs to 40 percent of the installed base. By year end 1983, shared regional ATMs were® handling about 3.75 billion transactions a year. Spurred by challenges from non-bank financial com petitors, such as Merrill Lynch and Sears, banks are keenly interested in increasing the number of convenient self-service terminals for routine transactions. So, * with some banks approaching a saturation point for on-premise ATMs and with ATM sharing on the up swing, banks have been eyeing supermarkets, conveni ence stores and other retail outlets as terminal out-^ posts in their war to increase convenience, reduce ex penses, generate new accounts, and possibly beef-up interchange fee income. Members of most of the nation’s top regional net works now are coordinating efforts to keep ATM acti-^ vity high and to build a POS base through advertising. Yet, as a consumer product, EFT/POS is like a bar of 15 A SINGLE-STREAMING system integrates all forms of non-cash consumer payments — credit, check authorization or guarantee, direct debit and electronic check — allowing all to be handled at a single POS terminal and single phone line. soap or a tube of toothpaste, since consumers will “buy” EFT/POS only if the cost is low and available in ^nost places. This means EFT providers can only profit if transaction volumes are large. Marketing Distribution And what kind of marketing distribution channel does one associate with this profile — high-volume, ^ow-value, disposable or use-once prodcuts? The an swer is not the one suggested by bankers who insist they must maintain tight control over proprietary EFT/POS networks. That’s like Proctor and Gamble building dedicated stores to sell Crest toothpaste, be c a u s e management can’t stand the thought of Crest sharing shelf space with Colgate products. Bank insistence on proprietary POS networks has been driven by fear that anything less might lead to a loss of control over depository accounts and associated p ric in g mechanisms. So, some banks have tried to dominate entire delivery systems, including: owner ship of computers, terminals, and software; determin ing POS user and transaction rules and eligibility, and oricing. This focus has caused EFT network develop m e n t to veer somewhat away from the “lowest cost utility” approach. Banks recognize that what they say over their tele phones determines their value, not who owns the ^>hone lines or whether those same lines are available to Competitors. But they haven’t viewed POS networks as a utility. Yet, retailers have the common distribution channel with location, labor, and incoming traffic. Lever Broth e r s uses this distribution channel, Coca-Cola uses it, and banks should, too. But, since most retailers are in terested only in installing non-proprietary POS devices in their stores, to accommodate the largest possible percentage of the customer base, single streaming is ^sssential. When you are talking POS, you are talking about re tailers’ life blood: how easy it is for a customer to buy https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis their merchandise. That’s why retailers are insisting on having a say in the design and operation of POS net works. Potential Retail Benefits A single-stream POS network has many potential retail benefits. For example, it offers a means to: in crease customer convenience, gain competitive edge, cut expenses by boosting check-out productivity, re duce liability for bad checks, speed access to money. One study even points to POS terminals driving up average ticket sale values. But, because POS has a major impact on retailercustomer relationships, merchants expect a voice in the design of EFT/POS systems as well as in POS pric ing and policies. Among issues of concern to retailers are the handling of insufficient funds turndowns, mer chandise returns, requirements for using personal iden tification numbers (PINS), and other cost-related fac tors. The cost of buying a PIN pad and card reader for every terminal in a department store could be substan tial. While EFT/POS offers obvious advantages to both retailers and banks, consumers will determine its ulti mate success. That’s another reason we believe the time is right for POS. A third or more of all bank customers now use self-service ATMs and transaction volumes grow every year. Retailers also have made self-serve a way of life in supermarket lanes, at gas pumps and car-ren tal checkouts. There are even automated ticket dispen sers for airline and ski lift tickets. Consumer Differences However, consumers do view debit and credit cards differently — a factor to be considered in designing single-stream systems. We must also emphasize the EFT MARKETERS. . . (Turn to page 35, please) Northwestern Banker. December, 1985 16 The bank examination — an FDIC perspective By JAMES R. SHUMAKER Assistant Regional Director for Nebraska and Kansas FDIC Regional Office Kansas City, Mo. Ed Note. Mr. Shumaker delivered the following ad dress at the invitation of the Nebraska Bankers Asso ciation at three of the four recent N BA group meet ings. The importance of the constructive, helpful points he made in his talk was evidenced by the ex tended question and answer period that followed. His professional analysis of FDIC's policies and proce dures is presented here for the benefit and interest of all our readers. ANY of you have not been examined by the FDIC M for two to three years. It is hoped that a brief re view of FDIC’s policies and procedures in selected areas will reduce undue concern over the probable re sults of an examination. Our comments will be directed at three areas: Problem Banks and Enforcement Ac tions, Directors’ Liability Lawsuits, and the FDIC’s Perspective in Analyzing and Classifying Loans. Problem Banks — Enforcement Actions “Problem Banks’’ are heavily weighted with agricul tural banks in this region. I would like to preface my remarks on Problem Banks with the assurance that the FDIC fully recognizes the significant problems in the agricultural sector and the tremendous responsibility you, as officers of agricultural banks, have in limiting the human cost to your customers of these problems while insuring the continuing safety of your respective institutions. A bank’s community has legitimate and reasonable credit needs for productive purposes. Banks are char tered to serve those needs and insured to allow them to commit reasonable funds to those productive pur poses, without fear of large-scale deposit withdrawals, based on some rumor, and resulting in insolvency. This is the foundation of the relationship between banks and the public they serve, their chartering authority and their deposit insurer. Clearly, if a bank serves an economically troubled area, it is going to encounter some problem credits. That is a bank with problems. There is a subtle, but important, distinction to be made between a bank with problems and a problem bank. Banker, December, 1985 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Many of you who have not been examined by the FDIC in the last two or three years are concerned at what point an institution ceases to be considered a bank with problems and becomes a “Problem Bank.” Such a determination is made based on examinations of your institutions that evaluate the bank’s capital adequacy, asset quality, earnings, liquidity and man agement. There are no magic formulas or key ratios that establish a bank as a “Problem Bank.” For those of you who have not been examined re cently, I would like to give a brief composite of the two types of banks we generally see at examinations. BANKA Institution has generally been accorded a “ 1” or “2” $ composite rating. The bank has recently seen a large expansion in its “Watch List” loans and non-perform ing loans due to successive crop failures which have diminished the borrowers’ cash flow. Bank has had high loan losses between examinationa. Analysis o f|) most troubled borrowers shows operations to have been profitable in the past and debt should be service able over a reasonable future period given only average crops and prices. Officers have periodically reviewed the borrowers’ position and the plan of repayment is # clearly understood by both the bank, its directors and the borrowers. Loans are adequately documented; however, limited marketability has slowed actions by the bank to foreclose and has limited ability of borrow ers to sell collateral to reduce debt. Earnings are trend-# ing downward and Reserve for Loan Losses has in creased to an all time high level. Capital margins are weakening but are at a satisfactory level. The Board has become concerned over deteriorating asset quality and has increased the frequency of its meetings to pro-# vide oversight. BANK B Institution has generally been accorded a “ 1” or “2” rating. The bank has seen some expansion in non-per-# forming loans but generally reflects satisfactory to good earnings and above average capital margin. Directors meet quarterly as mandated by law. Reserve for loan losses stands at 1% and bank provision is equal to charge offs taken at examination. Borrowers# are generally old time customers, well known to the of ficers; hence, concern over collateral documentation and financial condition analysis is limited. Formal re payment programs are not in place as borrower pays down after sale of his crops but has a continuing bor-# rowing relationship. Interest is frequently capitalized, as note maturities do not meet cash realization periods. Comparison of Banks A and B • I would suggest that B looks stronger on the surface but should have more concern about an examination than Bank A. Bank A has recognized and is working with its troubled borrowers with active involvement ol^ its directors. Bank B is “going with the flow” and it has not taken even preliminary steps to determine either the risk or loss evident in the portfolio. Bank B banks are prominent on our “Problem” bank list, while Bank A banks dominate our banks with problems. ^ Obviously, we have no viable administrative remedy if the bank is generally doing everything right. Ulti- 17 Rnately, of course, we have to consider the welfare of the bank’s creditors and are obliged to ask a bank with problems for more capital if it has slipped to an unsafe and unsound level. If, however, the bank has dealt con sisten tly with fringe borrowers or has otherwise dealt loosely in loan administration, then it is truly a prob lem bank. It was a problem bank even before economic conditions shoved it to the front for all to see. The FDIC discloses to a bank’s board of directors She Composite Uniform Bank Rating assigned at each rull scope examination. Our Division of Bank Super vision has adopted a policy that presumes either a for mal or informal corrective program now will be entered into with banks accorded Composite Rating of “3”, S‘4”, or “5” unless specific circumstances argue strongly to the contrary. Further, the policy of the Di vision of Bank Supervision is that it shall recommend to the FDIC Board of Directors that formal action pur suant to Section 8 of the Federal Deposit Insurance qAct be taken against all insured State nonmember banks rated “4” or “5” where evidence of unsafe or un sound practices is present. Exceptions to the policy are to be considered only when significant improvements or other circumstances strongly mitigate the need for ^u ch an action. Belief that a bank has recognized its problems and will implement corrective action is not a basis for an exception. Directors’ Duties and Responsibilities Earlier this year, FDIC instituted a nationwide policy of sending letters to directors of banks accorded Uniform Bank Ratings of 3, 4 or 5, reiterating their d u tie s and responsibilities. The letters also highlight the potential liabilities that may accrue to directors for failure to adequately discharge their responsibilities. These letters elicited some negative response from the banking community and adverse coverage in the •nedia, including the allegation that the FDIC follows a policy of “almost automatic” lawsuits against direc tors and officers of failed bank. Not pointed out by these critics, however, is the fact that FDIC has a legal responsibility as Receiver of failed banks to maximize Recoveries for shareholders, uninsured depositors, the FDIC, and other insured creditors. These critics ap parently object on the basis that such lawsuits make it more difficult to find outside directors willing to serve nn bank boards because of the potential financial liabil ity . Nevertheless, with respect to the allegation, there is no “automatic” process of using the judicial system to initiate litigation against directors and officers of Tailed banks. Any litigation authorized by our Board ^ o u ld occur only after an exhaustive investigation of the reasons for failure. Historically, the FDIC (in its legal capacity as Receiver) has sought recovery from directors in about two-thirds of failed bank cases. Fur thermore, these lawsuits are not arbitrary or frivolous, out instead are based entirely on charges of negligence, conflict of interest, or some other breach of fiduciary duty, occasionally in connection with the directors’ im proper oversight of the lending function. If directors ijjiave acted reasonably, responsibly and with due dili gence for the protection of shareholders and deposi tors, they have nothing to fear whatsoever. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ ABOUT THE AUTHOR—James R. Shumaker holds a BA degree In economics from Otterbein College in Westerville, Ohio and is a graduate of the Graduate School of Banking in Madison, Wis. He served the FDIC as a bank examiner from 1966 to 1977 in the Col umbus Region of the FDIC. This region was then composed of the states of Ohio, Kentucky and West Virginia. From 1977 to 1983 he served as review examiner in the Columbus, Ohio office. From 1983 to April, 1985 he served as chief review examiner for the Kan sas City Region. In April, 1985 he was appointed assistant re gional director with responsibility for corporation activities in Nebraska. In November, 1985 he assumed similar responsibilities for Kansas. Regional Director Charles E. Thacker comments, “Mr. Shu maker’s strong examination and problem bank experience is evi denced by his participation in the development of the present FDIC examination report, assisting in developing instructions for the preparation of the examination and his participation in the rewriting of the Corporation’s Manual of Examination Policies.” Loan Evaluation The primary purpose of bank supervision is to pre serve the safety and soundness of the banking system. Loan portfolio review is usually the primary focus of our safety and soundness examinations. Bank exami ners evaluate loans based on their prospects for timely repayment. Regardless of the size and complexity of a loan, to analyze a credit, examiners evaluate the source of repayment, available collateral protection and the willingness and ability of the borrower to repay the loan — the so-called “3 C’s” of credit analysis: charac ter, capacity (cash flow), and collateral. These same factors are applied to all loans regardless of whether they are extended to agricultural, energy, real estate, or any other commercial entity. This procedure and loan classification standards has not changed over the years. In evaluating problem loans, examiners attempt to apply standards consis tently in a cautious and prudent manner. The classifi cation process is designed to identify the loans that will require careful management by the bank in order to be collected. Loan classifications are expressions of different degrees of a common factor: risk of nonpay ment. The fact that a loan is classified, however, does not change the financial capacity of the borrower. Fur ther, we emphasize that adverse classification of a line should not be interpreted as a request for foreclosure or any other specific servicing action. The only time that FDIC will ask a bank to take a particular loan off its books is when the loan is con sidered uncollectible and is classified as a loss. Even in those circumstances, bank management, not the FDIC, decides what action to take to achieve recovery. Causes of Problem Loans Problem loans have a variety of causes. Of concern are problems arising from the disregard of the basic sound lending principles embodied in the 3C’s pre viously mentioned. A loan is repaid from cash gener ated from the conversion of assets, profits, refinanc ing, or the infusion of capital. The key idea is to schedule repayment of the loan so that it coincides with the anticipated cash flows of the borrower. In case of disruption or failure of this primary repayment source, a lender should have a secondary source of re payment, such as collateral. Regardless of what ap pears to be adequate collateral protection, failure to establish at inception or thereafter enforce a program Northwestern Banker, December, 1985 18 “Documentation is extremely important, and we consider monitoring cash-flow information to be vitally important.” of repayment frequently leads to troublesome or awk ward servicing problems and, in many instances, is re sponsible for serious loan problems including eventual losses. Economic conditions, both national and local, are continously changing, and bank management must be responsive to these changes in its management of the loan portfolio and loan underwriting practices. Loan Review of Ag Lending I would now like to specifically address our loan re view and classification procedures as they relate to agricultural lending situations. We recognize fully the significant problems in the agricultural sector, and the tremendous responsibility you have in dealing with them. I would like to give a brief synopsis of a weak farm credit as seen in reviewing numerous loan write ups in hundreds of examination reports. Our ongoing analysis reflects that most of today’s weak farm credits are evidenced by situations where borrowers’ total debts have increased to a level that surpasses yearly servicing potential. Debtors’ gross in comes are inadequate to meet interest expense, liqui date yearly operating loans and provide for regular reductions of term debt. In many cases, current income from livestock and grain collateral is totally inade quate, and secondary collateral protection (equities in machinery and equipment and real estate) has declined drastically in the past two years. Our analysis indicates further that lack of attention to servicing ability (cash-flow) prior to granting operat ing and expansion loans is a primary factor that has led to many of these problem farm credits. This type of lending practice is potentially dangerous under any economic circumstances, but events that have oc curred since the mid-1970’s accelerated and heightened the problems that were bound to result. We recognize the problems in the agricultural sec tor, and we continue to enhance our examiner training in order to better understand and deal with them. The majority of our examiners come from farm back grounds, and we supplement this basic knowledge with continuing formalized training at various schools and workshops. The vast majority of you are very capable lenders and we, as regulators, have learned much from the give and take in discussions with you. Lender Needs Same Data As Examiner At this point, I would like to emphasize that we see no need for a “banker vs examiner” situation regard ing the analysis of loans. Regardless of who is perform ing the analysis, a careful review of an adequately structured and documented credit line should lead to a similar assessment of risk. Generally, a lender will want to see the same kinds of information that an ex aminer will want to see. It is our intention to be realistic, fair and objective when analyzing loans. We do not classify agricultural loans on a “formula” basis but on a line-by-line basis. There are no “set” ratios that “trigger” a certain classification. Our policies and practices for analyzing and classifying loans do not change in reaction to eco nomic conditions. We do not recommend or order Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis forced sales of collateral. Once risks are identified, cor rective decisions are left to bank management and the board of directors. Major problems that examiners encounter when at tempting to analyze agricultural credits include: (1) inadequate structuring, and (2) less-than-complete documentation relative to fi nancial information, loan officer file comments and description and perfection on liens on collateral. Proper Structuring Gives Control As regards structuring, we realize there are geo graphical differences as to handling credits, but the “one note for purpose” rule generally results in better line control. As an example, advancing one note for the 0 purchase of stock cows and one note for the purchase of a plow, with each note set on an appropriate pay-out, offers much better control than does advancing one six-month note for each purpose and then rolling the unpaid balances, along with other debt, into a yearly # renewal note. Unfortunately, we see too much of the latter example. If unpaid balances are “blended” and rolled into “master renewals” for a period of years, meaningful analysis becomes virtually impossible. The only thing we can ascertain is that the debt level is go- # ing up. The proper structuring of a line allows for bet ter control, does much to display which operations are making/losing money, and provides for a more timely identification of problems. If a line is properly structured, it may allow an ex- • aminer to identify more accurately what portion(s) of a line present risk, and this may result in a lower dollar volume of classification. It will also help the bank’s management and board of directors see and under stand what is happening in a line. • Documentation Vitally Important Documentation is extremely important, and we con sider obtaining and monitoring of cash-flow informa tion to be vitally important. The ability to service debt ^ has always been a primary consideration, and recent 9 declines in collateral values make the ability-to-service factor even more important. • Cash-flow statements need not be overly compli cated, but they should be prepared in adequate detail, ^ and they must be monitored continually. If properly prepared and watched, cash-flow staements will show whether operations are generating ongoing profits or losses. • In addition to more use of cash-flow statements, q examiners would like to see more detail regarding col lateral in credit files. Specifically, our analysis would be enhanced by a better description of livestock, ma chinery and land (crop vs pasture, irrigated vs dry), and by a better description of outside debt to include £ principal and interest payments, lender and outside lenders’ collateral position. • Loan officer remarks are a very important source of factual information. Comments should be written, in THE BANK EXAMINATION. . . (Turn to page 35, please) 19 A Final Tribute to Willis Alexander WILLIS W. ALEXANDER 1919— 1985 • By BEN HALLER, JR. Publisher AST January we published in LSalute our first issue of the year our to Willis!” on the occasion of the retirement of Willis Alexan der from his duties as executive vice president of the American Bankers ^Association after serving with dedi c a t i o n in that post for 15 years. That feature, written to honor a good friend of all in banking, began, “How do you say farewell to a friend ^y o u don’t want to see take his wleave?” Now, in this last issue of the year, we pay tribute again to Willis, who died October 27 at the age of 66 of ^cancer diagnosed just 60 days ear lier. It would be redundant to repeat all of that earlier article, but high lights of his life certainly show the ^h ig h caliber of man he was. Willis was born into a banking family in Trenton, Mo., in 1919. His https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis father, Willis Alexander, Sr., had founded The Trenton Trust Com pany in 1915. At the age of 14 young Willis and his brother, Maurice, ac companied their father, then presi dent-elect of the Missouri Bankers Association, to Chicago in 1933 for the ABA convention at the old Stevens Hotel (now the Conrad Hil ton). The father served the following year, 1934-35, as president of the MBA, a position Willis, Jr., filled 25 years later. Then, in October, 1968, Willis, Jr., returned to the Conrad Hilton Hotel, 35 years after his first trip there, and was elected president of the ABA. It was during his term as ABA president that the full-time staff position as executive vice president became vacant. Willis filled in at that job and stayed with it for 15 years, distinguishing himself and the ABA throughout that period. He elected to announce his retire ment at a final session of the 1984 convention in New York City, tak ing almost everyone by surprise. One measure of the esteem with which Willis Alexander was re garded was the number of tributes paid to him at funeral services in Reston, Va., where he made his home, and in his native city of Tren ton. Federal Reserve Board Chair man Paul Volcker delivered the eulogy, paying particular tribute to Willis’ quiet, effective manner in dealing with any issue, always with respect for others involved in the discussion. The crowd of several hundred at the service was made up largely of those who knew Willis as the effective staff leader of ABA in Washington. The service at First Baptist Church in Trenton was filled to capacity and the overflow crowd there was made up of those who were Willis’ associates in his long time capacity as president and in more recent years as chairman of Trenton Trust, elderly townspeople who were friends of his parents, former classmates, fellow citizens, many of whom had been his custo mers all their lives and had been helped in various ways through his bank, or his personal efforts in civic work. The touching eulogy delivered by his son, Eric, was a simple but classic tribute from a son to his father whom he respected. Eric, who lives in Bend, Ore., spoke on behalf of his two sisters, Mrs. Barbara Babb of Chesterfield, Mo., and Mrs. Tricia Elliott of Ale xandria, Va. Willis also is survived by his wife, Sandy, of Reston, and their two daughters, Meg and Mary Kay. Willis learned first-hand from his parents and later in his own church all the values and disciplines that speak of trust, honesty, justice, con sideration for others—those values that flow from living one’s belief in his God. Those who were privileged to know Willis Alexander can easily envision the warm and happy greet ing he must have received as his re ward—“Well done, my good and faithful servant.” □ Mercantile to Merge Seven St. Louis-Area Banks Mercantile Bancorporation, Inc. will merge six of its banks in St. Louis and St. Louis County with Mercantile Trust Company N.A., Donald E. Lasater, Mercantile’s Chairman and Chief Executive Offi cer, announced recently. In addition to Mercantile Trust, the proposed merger includes: Mer cantile Commerce Trust Company, St. Louis; Clayton Mercantile Na tional Bank, in Clayton; Lewis & Clark Mercantile Bank, in north St. Louis County; Mercantile Bank of South County N.A. and Gravois Mercantile Bank, both in south St. Louis County, and Mercantile Na tional Bank of St. Louis County, in Chesterfield. “The main purpose of our action is to improve service to existing and potential customers of these banks. Upon completion of the merger, customers will be able to conduct their banking and financial business at the most convenient location of any of the resulting 22 Mercantile Trust Company banking offices,” Mr. Lasater said. Northwestern Banker, December, 1985 From our family to yours, warmest wishes for a joyous holiday season. ■li M tMarquette Bank m m Minneapolis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 year,” said committee chairman Scott Hutton, First Bank Edina, ‘‘which we feel is very important in addition to salaries.” The survey found a wide range of benefits are of fered to bank employees. Elected in Owatonna V.P. Appointed in Hutchinson Kenneth A. Cain has been ap pointed vice president and cashier at F irst National Bank of Hutch inson. For the past five years Mr. Cain has been an a s s is ta n t vice p re s id e n t of First Bank, St. Paul, in the correspondent K. CAIN banking and pri vate banking divisions. Prior to that he was vice president and cashier of Beatrice National Bank and Trust Company of Beatrice, Neb. for 15 years. He began his banking career in 1957 in Sioux City, Iowa. Elected in Pine City Edward W. Palmer has been 0 elected executive vice president and cashier of Pine City State Bank. As chief operating officer, he will be pri marily responsible for the lending, operations, personnel and daily • management functions of the bank. Mr. Palmer most recently served as vice president and cashier of Pine City State Bank, which he joined in 1983. Prior to that, he spent 13 O years serving in various positions in First Bank System, Inc., at loca tions in South Dakota, Montana, Minnesota and North Dakota. * Promoted in St. Cloud David T. Shay has been promoted to assistant vice president in com mercial loans at The First American # National Bank of St. Cloud. He joined the bank in 1980. VP Named in Edina # Bruce Gehrke has been named assistant vice president, commercial division of First Bank Southdale, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gene B. Drake has been elected assistant vice president of the com mercial loan department at Norwest Bank Owatonna, N.A. Edina. Prior to joining the bank, he Mr. Drake spent two years with served as vice president of commer the First Bank Worthington, Minn., cial and agricultural lending at First as an assistant vice president in Bank Northfield. commercial lending and manager of Mr. Gehrke began his banking the consumer department, and five career in 1973 at First Bank Roches years with the First Bank of South ter as a management trainee. He Dakota in Sioux Falls as a loan of was named commercial loan officer ficer and consumer loan manager. at First Bank Bismarck in 1976. Mr. Gehrke transferred to First Bank Edina in 1979 where he served as assistant vice president, commercial MBA Lending Manuals lending. He joined First Bank Available Northfield in 1981. The Minnesota Bankers Associa tion Lending Procedures and Forms Manuals have undergone eight up dates since they were originally dis Added in Blaine John VanSon has joined the staff tributed in 1980 and are currently of First Bank Northtown, Blaine, as being updated for the ninth time. a commercial lending representa Nearly 600 banks subscribe to the tive. He began his career with First m anuals, which include four Bank System in 1983 as auditor volumes, according to Truman Jef fers, MBA executive vice president. with the Great Falls Region. The four volumes cover consumer W. Norman Swenson has been lending, agricultural lending, real elected assistant vice president, commercial lending at First Bank estate lending, and commercial lend Northtown. He transferred to the ing. The manuals are available for bank from First Bank Lake, where $500 per set plus a yearly updating he was manager of the Bloomington fee. Lake Office. Prior to that, he was vice president of operations at First Bloomington Lake National Bank. 1st American of St. Cloud He began his career with First Selected for PLP Bloomington Lake National in 1966. First American National Bank of St. Cloud has become one of only two banks in Minnesota selected to Salary Survey Available participate in the federal govern According to the 1985 Minnesota ment’s ‘‘preferred lender program.” Bankers Association Salary and The program, operated by the U.S. Benefits Survey, most banks con Small Business Administration, duct salary reviews annually for offi allows selected banks to approve cers (98%) and non-officers (88%), SBA loans at the local level. Seven and 36% have a formal salary ad ty-one of all banks in the U.S. have ministration program. 176 Minne received the designation. Bank officials said the PLP desig sota banks participated in the sur vey, which outlines average salary nation by the SBA will allow a faster and other information for 66 differ response on loan requests by allow ing the bank to approve SBA loans ent positions. The survey is sponsored annually locally. In addition, First American by the MBA Human Resource Com will be able to process SBA loans for mittee. It is available to MBA mem rural banks in central Minnesota, said John Herges, vice president ber banks only and costs $390. “A new 25 page section on bank and manager, commercial loan de employee benefits was added this partment. Northwestern Banker, December, 1985 22 Marquette Bank Minneapolis has recently named Peter N. Miller, vice president of marketing for the trust services group; Andrew R. Guzman, vice president and director of mar keting; Leslie Milbrandt, retail op erations officer, and Kenneth R. Mil ler, assistant vice president, com mercial lending, for M arquette Lease Services. In his new position, Mr. Peter cial institutions across the country. Ms. Milbrandt joined Marquette Bank Minneapolis in 1974 and has served in a variety of positions for the bank, including operations offi cer and consumer service represen tative. In 1982, she transferred to Marquette Bank Rochester as an as sistant to the vice president of mar keting. She was promoted to direc tor of marketing the following year, and most recently served the bank as a marketing officer. Mr. Kenneth Miller had served as the district sales representative for Fleet Credit Company of Minneton ka. He has also served as an account executive for ITT Industrial Credit of St. Paul. * P. MILLER A. GUZMAN L. MILBRANDT K. MILLER Miller will supervise all product development and market support services for the trust services group. Prior to joining Marquette Bank Minneapolis, he had served as an as sistant vice president for the IDS Trust Company of Minneapolis. Mr. Guzman will direct all mar keting efforts and supervise all in ternal and external support services for the Marquette Banks. He also will oversee the banks’ product man agement and sales management ef forts. Mr. Guzman, who specializes in target marketing for the affluent and emerging affluent markets, has been associated with several finan Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * American National Bank, St. Paul, recently announced the addi tion of Richard E. Pringle as vice president-bond, and Lynn Lyndsay as assistant vice president-interna tional. Mr. Pringle has over 37 years ex perience in the financial business. Prior to joining American, he was employed by First Bank Saint Paul as manager and administrative offi cer of the brokers clearance and re gistrar departments. Mr. Lyndsay was most recently with the international banking divi sion of First Bank Saint Paul. Prior to that he was employed by First Chicago in international credit and foreign exchange. * * * Norwest Corporation has pro moted David Jarvis, chief financial officer of the corporation, to vice chairman. Most recently, Mr. Jarvis was executive vice president. Mr. Jarvis joins Richard S. Levitt as one of two vice chairmen of the corporation. As chief financial offi cer, he heads Norwest’s finance and pricing committees and has respon sibility over planning, corporate de velopment, control, accounting, taxes, treasury, investment, risk ad- i ministration, investor relations, and property management, including the development of Norwest Center. Mr. Jarvis joined Norwest in 1981 as a senior vice president and was < named executive vice president in 1982. * * * Francine Tarrant has been elected 1 personal banking officer of First B ank G ran d with responsibil ity to supervise the retail con venience bank ers and retail support staff. Ms. T arrant came to First Bank Grand in 1985 as retail F. TARRANT support supervi sor, with 13 years of prior banking experience with financial institu - 1 tions in Chicago, Illinois. Ms. Tar rant has most recently served with the Midtown Bank and Trust Com pany of Chicago as assistant cashier and manager of its Broadway Bank.' * * * Sandra M. Pesheck has been elected commercial lender for First, Bank Security. She has most re cently served as credit review of ficer of F irst Bank Lake, with credit review re sponsibilities for the Central Clus ter of First Bank S y stem , Inc., S. PESHECK which is com- 23 r How ADT became the largest processor of independent banks in the area It started 20 years ago. That’s when our parent, Amer ican N ational Bank of St. Paul, pioneered data processing services to com m unity banks th roughout the 9th Federal Reserve District. A nd ADT h a s n ’t s to p p e d growing since. B a n k e rs seem to like o u r approach to data processing. They appreciate the fact that becoming an ADT client requires no heavy up-front investment. And that we always keep them current with new banking technology and regulations. They enjoy reliable reporting and the prompt, personal attention of their own ADT customer service representative. Each month, they get to tell us what we’re doing right or how we can make improvements. And in the end, they know that their total data processing costs with ADT are lower than other DP alternatives. ADT h as b e e n su c c e ssfu l because we help our clients become successful. To see what we can do for you, call Dick Aird at 800/2373762 Extension 112. Or contact one of our data centers listed below. A M E R IC A N ■ \ yy I a I/ \ I / \ ' 1' ' 1----' ' Subsidiary of American National Bank of St. Paul TECHNOLOGY Largest processor of independent banks in the 9th Federal Reserve District Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ADT Minot • Jerry Lee • 701/852-1274 ADT Fargo • Doug Marquart • 701/237/5164 ADT Sioux Falls • Rich Miller • 605/336-8704 Y Northwestern Banker, December, 1985 24 Minnesota News prised of First Bank Lake, First Bank Grand, and First Bank Securi ty. Prior to that, Ms. Pesheck had served as operations officer at First Bank Security since 1983. She began her career with First Bank System in 1976 in the accounting department of First Bank Duluth, where she became comptroller’s as sistant before transferring to First Bank Edina in 1981 as operations assistant. * * * Joan Knutson was elected to the board of the Exchange State Bank, St. Paul. Ms. Knutson has served on the White Bear Lake Area School Board for eleven years, eight years as treasurer and the last three as chair. She also is a member of the Board of Education of Special Inter mediate School District 916, the Vocational-Technical School serving nine Northern and Eastern suburbs of St. Paul in Ramsey and Washing ton Counties and has served as chair the last two years. * * * in 1970 as a secretary. She was named assistant cashier in 1974 and promoted to the position of assis tant vice president in 1979. In March of 1985, she was named man ager of the retail banking division. * * * Robert E. Leech has been named senior vice president and head of the personal tru s t area of F irst Trust Company, Inc. M r. Leech, who has 18 years of experience in the trust busi ness, has most | recently served \ as president of R. LEECH First Bank of South Dakota in Sioux Falls, where he was also responsible for the bank’s statewide trust activities. Mr. Leech has been associated with First Bank of South Dakota since 1981, when he joined the bank as senior vice president and trust man ager. Prior to that time, he was vice president and managing trust offi cer for Brenton Banks, Inc., in Des Moines, Iowa. * * * The Independent State Bank of Minnesota recently elected Charles C. Hokans as as sistant vice pres ident in the mar The Minnesota Bankers Associa keting area. His tion’s Executive Vice President Tru primary respon man Jeffers has sibilities include announced the market analysis, appointment of public relations Joseph E. Dwuzand the promo nik as program tion of bank ser coordinator for vices. C. HOKANS MBA. For the Mr. Hokans se v e ra l has an extensive background in mar p a s t keting with over twelve years of ex years, he has worked in the perience in the banking industry. area of sales and * * * J. DWUZNIK development of Betty Chapman has been pro training programs for financial insti moted to the position of vice presi tutions. Mr. Dwuznik’s responsibili dent of F irst ties will include coordination of B ank N o rth MBA’s educational programs for field, and will member banks attended annually by c o n tin u e to some 12,000 bank employees. serve as man * * * ager of the retail b an k in g d iv i Randall B. Nielsen has been ap sion. pointed vice president of Park Insur Ms. Chapman, ance which is affiliated with Parkwho had preBank, St. Paul. viously held the b. c h a p m a n Mr. Nielsen’s responsibilities will position of assis tant vice president, began her bank be to manage the insurance agency ing career at First Bank Northfield operations and develop a strong in Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis surance broker relationship in the # community. Most recently, Mr. Nielsen was with Frank B. Hall and Company of Minnesota and prior to that Ameri can Hardware Mutual Insurance • Company of Minneapolis. * * * First Bank Lake recently elected Barbara L. Pacholl as assistant vice 0 president and manager of credit re view for the Central Cluster of First Bank System, Inc., and David W. Rymanowski as commercial loan of ficer. • B. PACHOLL D. RYMANOWSKI Ms. Pacholl most recently served as senior credit review officer and manager of credit review. Prior to 9 that, she was a loan review analyst at First Bank Minneapolis. She began her career with First Bank System in 1979 as a credit examiner. ^ Mr. Rymanowski began his career 9 with First Bank Lake in 1983 as a management associate in the profes sional development program. * * * ^ First Bank Saint Paul has recent ly promoted Sophie Bell to vice pres ident. Ms. Bell, who joined the bank as commer cial banking offi cer in January 1983, had been a ss is ta n t vice president in the regional banking group since Aug ust 1983. S. BELL F ir s t B ank Saint Paul has also signed a letter of • intent to sell the building complex to a St. Paul-based real estate partner ship, the Minnesota Street Associ ates Limited Partnership. Sale of the property, which includes the ® buildings and land located at 332 Minnesota Street, was expected to take place in early November. “We continually review ways to maximize the use of our assets,” ® said Dale S. Hanson, president of Minnesota News • First Bank Saint Paul. “The funds generated by the sale of the First Bank Saint Paul building will be re invested in other higher earning op portunities for the bank.” • First Bank Saint Paul will con tinue to lease 65% of the building, including the first eight floors. All First Bank employees using the complex will remain in their present ® locations and will retain use of all bank facilities. To maximize use of its financial resources, First Bank System has sold 23 First Bank buildings during ® the past year, including the First Bank Place West building in down town Minneapolis. Other Twin Cit ies First Bank Buildings which have been sold include First Bank Grand ® in St. Paul, First Bank Edina and First Bank Southdale in Edina. # * * Jack G. Williams, Jr., recently joined National City Bank as assis tant vice presi dent of loan re0 view. Mr. Wil liams comes to N atio n al C ity Bank with six years of banking ^experience and is a member of the Robert Mor ris Association. j, WILLIAMS * * * First Bank Minneapolis has ap pointed Ronald A. Larson as head of th e le a s in g group; Edwin iJenkins as vice president, and Patricia Good win as vice presi dent of corpo r a te communica tions. As g ro u p head, Mr. Larr . LARSON son is respon- sible for coordinating all transporta tion and high tech equipment lend ing and leasing activities at the bank. The bank has two divisions that focus on those capabilities. Mr. Larson also becomes a member of the FBM senior management group. Mr. Larson joined First Bank Minneapolis in 1970 after complet ing his BA in business administra tion at Moorhead State University in Minnesota. He has held various commercial banking positions at FBM, and most recently managed the high technology lending and leasing division. Mr. Jenkins, who joined the bank in 1977 as residential loan represen tative, had been assistant vice presi dent in the mortgage banking ser vices division. Ms. Goodwin, who joined the bank in 1981 as public relations specialist, had been assistant vice president and director of corporate communications since 1983. * * * Norwest Bank Midland recently elected Harvey S. Becker and Walter O. Rukke as vice president, and Glenn A. Sansburn as commer cial real estate officer. M r. B ecker began his bank ing career at Norw est Cam- G .SANSBURN Mr. Rukke began his banking career with Norwest Bank Midland in 1972 as an accountant. Mr. Sansburn re cently joined Norwest Bank Mid land’s commercial real estate de partment. * P. GOODWIN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bowers to the position of in stallm ent loan o ffice r. Ms. Bowers joined the bank in 1980 and has held a variety of posi tions in the teller area. She is cur rently an install L BOWERS ment loan repre sentative. * * * Norwest Bank St. Paul, N.A. has elected Mark D. Nyquist as assis tant vice presi dent of commer cial b a n k in g , and Douglas N. H afner and Brian K. Smith as commercial banking officers in the sales fi nance division. Mr. Nyquist joined Norwest B. SMITH D. HAFNER Bank Billings, Montana in 1982 and has recently moved to St. Paul and joined Norwest Bank St. Paul. Mr. Hafner joined Norwest Bank St. Paul in 1985 after having worked for 1st Bank of Spring Lake Park. Mr. Smith joined Norwest Bank St. Paul in 1985 from Midway Na tional Bank. * * * W. RUKKE E. JENKINS 25 * * Norwest Bank University-Mid way, N.A. recently elected Lois K. Allison-Williams Company, an in vestment banking firm established in 1919, a n nounced the pro motion of Robert C. Tengdin to chairman. For merly, Mr. Teng din had been president of the company. Mr. Tengdin joined the firm R. TENGDIN in 1952 as a Northwestern Banker, December, 1985 26 Minnesota News industry leaders, consultants and educators. The 1985-86 MB I board of directors are: Minnesota: Wayne F. Berthiaume, Minnesota Bankers Association, Minneapolis; Richard O. Hawkins, University of Minneso ta; Dr. John Imholte, University of Minnesota, Morris; Truman L. Jef fers, Minnesota Bankers Associa Gregg S. Hannah has joined Mar tion; Dale Mehrkens, Goodhue quette Capital Management Corpo County National Bank, Red Wing; and Gary Vanderwerf, Windom ration as presi State Bank; Wisconsin: Stanley Leedent. dle, M&I Western State Bank, In this posi Oshkosh; Bryan K. Koontz, Wiscon tion, Mr. Han sin Bankers Association, Madison; nah will oversee and Duaine Espegard, F irs t all operations of American Bank, Amery; North Marquette Capi Dakota: Harry J. Argue, North tal Management D akota B ankers A ssociation, Corporation, a Bismarck; Ronald Braseth, First w h o lly -o w n e d National Bank, Hettinger; and s u b sid ia ry of Q. HANNAH Brian Houkom, Norwest Bank Marquette Bank Minneapolis specializing in a broad Wahpeton; South Dakota: Gene range of investment services. He Holsing, First State Bank, Warner; will be involved with all long-range Richard Palmatier, First Bank of planning for the corporation, and South Dakota, Madison; and J.I. also will concentrate on corporate Milton Schwartz, South Dakota and account management as well as Bankers Association, Pierre; Mon tana: John T. Cadby, Montana the investment strategy process. Previously, Mr. Hannah had been Bankers Association, Helena; Mike associated with Norwest Bank Min Jamison, First National Bank, Miles neapolis for twelve years. During City; and Howard Torgerson, Farm that period, he served in a number of ers & Merchants Bank of Montana, investment and management capaci Rudyard. For more information, contact the ties in the capital management and trust group. In his most recent posi sponsoring state banking associa tion at Norwest, he was vice presi tions. dent and manager of the employee benefit investment division of the in Elected to BEEF Board stitutional services department. In a related move at Marquette Mark Korell, president and chief Capital Management Corporation, executive officer of First Bank Sys Richard B. Hume, the former presi tem Mortgage Corporation, has dent, has been named chairman of been elected to a three year term to the board. serve on the board of the Business * * * Economics Education Foundation (BEEF). He has assisted the Foun The Midwest Banking Institute is dation by providing materials for now accepting applications for its the school year program and was in 1986 session to be held July 20-25, attendance at B EEF’s summer 1986, at the University of Minne institute, Minnesota Business Ven sota, Morris. The Institute is open ture, which was held at St. Olaf Col to mid-management level agricul lege. First Bank System has had a long tural lending personnel from mem ber banks of the Minnesota, Wiscon standing commitment to BEEF sin, North Dakota, South Dakota, through the participation of past and Montana Bankers Associations. board members as well as persons Students are required to attend the involved with Minnesota Business two one-week sessions held in two Venture. George Dixon held the consecutive years and those who sa position of chairman of B EEF’s Ad tisfactorily complete all the require visory Council, Pete Ankeny and ments, receive a certificate of com Clarence Frame were active in the funding of Minnesota Business Ven pletion. The curriculum of MB I is devel ture and Lloyd Brandt served as oped by a combination of banking chairman of the board of BEEF. sales trainee and subsequently held a variety of sales, management and executive positions. He was named a vice president in 1959 and a director and senior vice president in 1965, before ascending to the presidency in 1977. # * * Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BEEF was organized in 1976 to ® provide a mechanism for business, labor and government to work with secondary schools in relating the “real world” to the business and economics curriculum. ® CLS Advisory Bd. Meets The Minnesota Bankers Associa tion Commercial Lending School £ (CLS) Advisory Board met Oct. 16 to review the student and teacher evaluations of the 1985 CLS session which was held at St. Olaf College in Northfield on Aug. 11-16, and to £ begin plans for the 1986 session. Ac cording to CLS A dm inistrator Wayne Berthiaume, the 1985 ses sion was rated extremely high. “This means we’re accomplishing # our goals for a professional two-year program on commercial lending,” he said. Excellence Award Dan Dupar (left), 1984-85 president of Robert Morris Associates’ (RMA) Wisconsin Chapter, and first vice president, First Wisconsin National Bank, Milwaukee, recently received an RMA Standard of Excellence Award on behalf of his chapter from RMA Executive Vice President Clarence R. Reed (right). The award was presented during RMA’s recent Fall Conference (convention) in Boston. RMA’s Wisconsin Chapter was the top scorer in Category B (chapters without sub chapters) of the program. Implemented in 1984, the Standard of Excellence Program enables leaders of RMA’s local units to evaluate their year’s activities and perfor mance and to identify areas for improve ment. Performance by the local units is rated in five key areas: planning and admin istration; organization; educational and professional activities; membership recruitment; and communications and public rela tions. £ £ 0 £ 27 Spring Green Bk. Affiliates §> In a recent joint announcement, John W. Johnson, president of Bank of Spring Green, and Gus A. Zuehlke, chairman and CEO of Valley Bancorporation, said Spring Green 0 Bankshares, Inc. and its subsidiary, Bank of Spring Green, will affiliate with Valley Bancorporation. The Bank of Spring Green serves the Spring Green and Plain areas and O other parts of Sauk, Iowa and Rich land counties. The plan calls for Valley to use its common stock in the transaction. The proposed affiliation with • Valley Bancorporation is subject to approval by the board of governors of the Federal Reserve System and the shareholders of Spring Green Bankshares, Inc. and Bank of • Spring Green. Mr. Johnson stated his board has long been concerned with the grow ing financial requirements of their expanding community. He pointed • out that his board chose the holding company affiliation as a method of acquiring greater financial strength for the Bank of Spring Green, as well as obtaining the services of • various holding company profes sionals who will assist the bank in providing the best service possible. The bank will continue to be man aged by its existing board and offi® cers. Name Change in Eau Claire _ The former American National ® Bank and Trust Company of Eau Claire, recently acquired by First In terstate Corporation of Wisconsin, Sheboygan, changed its name to ^ First Interstate Bank of Wisconsin w amid celebrations that included sign unveiling ceremonies, cake cutting and open houses at the bank’s six of fices. ^ The bank’s new identification sigw nals its participation in the nation wide First Interstate network. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis services office when it opened, in 1983, and was regional vice presi dent responsible for commercial bus iness development in northeastern Wisconsin. That office was recently relocated at the First Interstate Bank, 908 South Fisk Street, Green Bay. Before joining First Interstate Bank, Mr. James was employed as a commercial loan officer and assis tant branch manager at Merchants National Bank and Trust, Indiana Through the Wisconsin company’s polis, Indiana, and as a commercial franchise agreement with First loan officer and assistant vice presi Interstate Bancorp of Los Angeles, dent at Citizens National Bank, the Eau Claire bank will offer a core Evansville, Indiana. group of products common to all First Interstate Banks and will gain V.P. Joins F&M access to many additional resources of the nation’s eighth largest bank Menomonee Falls James C. Hazzard has joined ing company. President of the Eau Claire bank, F&M Bank Menomonee Falls as se Richard Cramer, was joined by nior vice presi David Beck and Richard Pauls, dent, personal president and chairman, respective banking. He was ly, of First Interstate Corporation of formerly senior Wisconsin, in unveiling one of the vice president, head of commu new signs. The franchise agreement, in effect nity banks’ divi for over a year in Wisconsin, gives sion as well as First Interstate of Wisconsin exclu vice president, sive license to use the First Inter H eritage W is state name while retaining Wiscon consin Corpora J. HAZZARD tion and director sin ownership and management. of marketing of Heritage Corpora tion. Prior to being named vice presi President Named in Casco dent of Heritage Wisconsin, Mr. Valley Bank of Casco has recently Hazzard was president and chief ex named Rudolph P. Hanamann to the ecutive officer of Heritage Bank, position of president and CEO. Mr. Menomonee Falls. Hanamann succeeds William D. Bushner who was named president of Valley Bank of Oregon. Promoted in Sheboygan Mr. Hanamann has been with F.J. Buri has been promoted to Valley Bancorporation for 12 years. corporate in-house counsel at First He began his association with the Interstate Corporation of Wiscon Valley Bank of Casco as a teller sin. He provides counsel and re trainee and advanced through search on legal matters involving various positions until being elected the organization and its affiliates, to the board in 1976 and being serves as assistant secretary of the named executive vice president in corporation and is responsible for 1979. other corporate legal matters includ ing liaison efforts with outside coun sel. Promoted in Green Bay Mr. Buri joined The Citizens Barry James has been promoted Trust Company, predecessor of to senior vice president of First In terstate Bank in Green Bay. He su First Interstate Trust Company of pervises all lending for the institu Wisconsin, in 1981. He worked there tion as well as the personal banking as an employee benefits officer before joining the parent bank hold area. Mr. James joined First Interstate ing company as corporate legal ad Bank in Green Bay in 1982 as assis visor in 1983. tant vice president in the commer cial lending area. He moved to First WISCONSIN NEWS. . . Interstate’s Green Bay commercial (Turn to page 36, please) Northwestern Banker, December, 1985 28 E. Dundee Road, Wheeling, 111. ® 60090. Sponsored by ICBI Over 100 bankers attended the ICBI seminar entitled, “Issues and Answers’’ on November 12 in Oak Brook and November 20 in Springfield. The seminar was designed specifi cally for community banks and dis cussed an array of timely subjects vice president and is a veteran of including mortgage extensions, agri Approval in Rockford cultural loans and collateral, FDIC Officials of Americorp Financial, over 23 years in banking. Mr. Yaeger joined the DeKalb regulatory enforcement, and bank Inc., a Rockford based multi-bank holding company, announced recent Bank as executive vice president in er’s rights. Several expert instructors compli ly they have received approval from July after a lengthy career with the Marine Bank of Springfield, where mented the seminar including Paul the Office of the Comptroller of the Currency and the Board of Gover he was vice president in charge of E. Presney, ICBI legal counsel, Presney, Kelly and Appleton, nors of the Federal Reserve for the commercial lending. Springfield; Joseph M. Ambrose, at acquisition of Illinois National Bank torney, Gale Saint & Associates, & Trust Co., Rockford and its conso Two Named in Lombard Bank of Yorktown, Lombard, re Bloomington; Warren Bowlby, as lidation with American National Bank and Trust Co., Rockford. The cently named Gerald B. Klein as sistant regional director, FDIC, Chitransaction was to be consummated senior vice president and Kenneth J. cago, and Benjamin Shaprio, part on or about November 18, following Zilka as vice president of commer ner, Sidley & Austin, Chicago. a mandatory 30-day waiting period. cial lending. ICBI Officers Told The transaction also has been ap proved by stockholders of Illinois Independent Community Banks National, stockholders of Illinois in Illinois has named Darrel W. National’s parent company, Rock Hilst as ICBI president at the asso ford Bancorp; and by Americorp Fi ciation’s annual business meeting nancial, Inc., American Bank’s held September 23, in St. Louis. Mr. parent company and sole stock Hilst currently serves as executive holder. vice president and trust officer, The bank resulting from the con State Bank of Havana. solidation of American Bank and Il Other officers elected include: linois National will have assets of First Vice President, Fred O. Paige, G. KLEIN K. ZILKA approximately $700 million, ranking Mr. Klein began his career with president, Farmers State Bank, it eighth in size among all Illinois Elmwood; Treasurer, Paul F. Cran banks and the largest bank in Illi the bank in 1969 as assistant vice dall, executive vice president, Han president, consumer lending. nois outside Cook County. Mr. Zilka was formerly assistant over State Bank, Hanover, and Re The com pany’s total assets president, commercial lending, gional Vice Presidents: John J. Crotfollowing the consolidation transac vice and has been with the bank for two ty, Jr., senior vice president in the tion will be in excess of $900,000,000. years. He previously served as assis correspondent banking division at In addition to American National Drovers Bank of Chicago; C. Dean Bank and Trust Co., Americorp Fi tant vice president, commercial Easton, president, Pontiac National lending at La Grange Bank & Trust nancial, Inc., also owns Colonial Company, La Grange, Illinois. Bank, Pontiac; Wilfred J. Cross, Bank of Rockford, First National president, First National Bank, Ob Bank of Woodstock, Carpentersville long, and Norris E. Blankenship, Savings Bank, First National Bank Dawson Fund Established president, Ramsey National Bank, of Pekin, Illinois and a non-bank Ramsey. A fund for the family of Kenneth subsidiary, Americorp Financial Life Insurance Company of Arizona. Dawson, the Wheeling policeman After the consolidation, Americorp who was fatally shot on November Celebrated in Northbrook will be the 10th largest multi-bank 5, has been established by Main Cole-Taylor Financial Group, Bank-Wheeling. holding company in Illinois. To get the effort started, Main Northbrook, recently celebrated the Bank, a member of the Cole-Taylor first anniversary of its purchase of Financial Group, Inc. has made a the Wheeling Trust & Savings Pres./CEO Named in DeKalb donation of $1,000. William C. Bank, 350 East Dundee Road. Dewey R. Yaeger was recently Olsen, president of Main Bank, said Though the actual anniversary date elected president and CEO of the contributions can be sent to the was in August, the celebration was DeKalb Bank, DeKalb. Mr. Yaeger Kenneth Dawson Fund Main Bank, delayed due to major renovation most recently served as executive account number 00226190-20, 350 work being done in the bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # 0 6 • • 0 0 0 0 ^ q 29 Congratulations are in order, too, for the following members who dis tinguished themselves by generat ing over $ 1,000 in new member dues, thus earning president’s club status and a free convention registration: John Ekdahl, Old Kent Bank & Trust Company, Grand Rapids, Mich.; Donna Gould, Jefferson Fed eral, Meriden, Conn.; Jay Keller, Keller Marketing, Alliance, Oh.; An drea Knight, Illinois National Bank, Springfield, 111.; Ira Nathanson, Consolidated Group Marketing, Morton Grove, 111.; John Ruedi, Champaign National Bank, Cham paign, 111., and Jan Strode, Great American First Savings Bank, San Diego, Calif. Illinois News Marvin Neland, the acquisition of First Security, which will be re named Affiliated Bank/DuPage, in creases the total assets of Affiliated Banc Group to more than $690 mil lion. “ It also provides Affiliated with even greater access to the ever growing commercial market along the northwest corridor—the nucleus of a high concentration of small and medium sized businesses,” Mr. Ne land said. In addition to Affiliated Bank/DuPage, A ffiliated Banc Group also includes North Shore National Bank of Chicago, Western National Bank of Cicero, the Frank lin Park Bank, The Morton Grove Bank, The State Bank of Burling ton, 111., and the First National Bank of Coal City, 111. * * * # • ^ ^ ^ ^ ^ First Colonial Bankshares Corpo ration, Chicago, recently announced it has agreed in principle to the pur chase of all assets of The Colonial Group, Inc., including the All American Bank of Chicago and Northwest Commerce Bank of Rose mont. Terms of the purchase were not disclosed. As of September 30,1985, the two banks had combined assets of $110 million. According to holding company chairman and CEO C. Paul Johnson, First Colonial, which currently owns 32 percent of the common stock of The Colonial Group, Inc., would, upon consummation, have consoli dated total assets of $596 million based upon September 30, 1985 figures. Mr. Johnson said All American and Northwest, which have been op erating as affiliated members of First Colonial, would become the third and fourth wholly-owned bank subsidiaries of the holding company along with Colonial Bank and Trust Company of Chicago and Michigan Avenue National Bank of Chicago. “This transaction will streamline and simplify First Colonial’s owner ship and operating structure,” Mr. Johnson said. * * * Affiliated Banc Group, Chicago, whose multi-bank holding company is Franklin Capital Corporation, re cently completed its acquisition of the $21 million-asset First Security 0 Bank of Addison, located at 350 W. North Avenue, Addison. According to group chairman 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fred W. Heitmann Jr. has been named chairman, and Lee W. Jen nings has been elected to the board of North west N ational Bank of Chicago. Mr. Heitmann, who served as p re s id e n t of Northwest Na tional from 1963 to April, 1985, F. HEITMANN began his career with the bank when it first opened in 1941. He is a past president of the Il linois Bankers Association and past chairman of the Illinois State Com mission of Higher Education. Mr. Heitmann was instrumental in the formation of the Illinois State Board of Higher Education, on which he served as chairman, and led the ef fort that created the concept of gua ranteed student loans in Illinois. Mr. Jennings, a business consul tant and former managing partner of Peat, Marwick, Mitchell & Co., served with the CPA firm since 1977. He left this position in August to form his own venture. * * * In celebration of its 80th year of service, Lake View Bank & Trust Company of Chicago, a Lane Bank, plans to raise funds for local not-forprofit organizations while educating residents on the history of the Lake View community. The Saga, which is published and distributed by Lake View Bank, is a history of the Lake View communi ty. All funds raised by the distribu tion of The Saga will go to five local not-for-profit organizations: The Chicago Area Council of the Boy Scouts of America—Lake View Dis trict; Five Hospital Homebound El derly Program; The Girls Scouts of Chicago—Lake View District; Lake View Citizens’ Council; and Ravenswood-Lake View Historical Society. Commenting on the project, bank president and CEO Richard G. Walker said this is the bank’s way of showing its appreciation to the com munity. * * * North Shore National Bank of Chicago, a member of the Affiliated Banc Group, is one of the first banks in Chicago to “humanize” electronic banking through its talking automa tic teller machine (ATM). * * * The talking ATM is located at Thomas D. Tietz, president, First North Shore National’s drive-up fa United Bank of Sidney, Sidney, cility, 1737 W. Howard Street in Montana, was the recent winner of a Chicago. The ATM features a human male free convention registration (value: $495) to the 70th Annual BMA Con voice that gives instructions and vention in Hawaii as well as up to seasonal messages to bank custo $1,000 in airfare. Mr. Tietz won mers during ATM transactions. The after having his name drawn from a voice messages are also supported hatful of new bank marketing mem by graphic and written communica bers who have joined since last tion that appears on the ATM screen. year’s convention. Northwestern Banker, December, 1985 We iv ish you a happy WoCiday Season a n d a bright prosperous Michael Austin Vice President and Manager Iowa Correspondent Services (515) 245-7251 7" William Mullins Vice President Iowa Correspondent Services (515) 245-7157 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f Kenneth Danilson Vice President Iowa Correspondent Services (515) 245-7348 William Duma Vice President Iowa Correspondent Services (515) 245-7253 Diane Grotenhuis Administrative Assistant Iowa Correspondent Services (515) 245-7353 O First Interstate Bank Kenneth Malecha Correspondent Banking Officer (515) 245-7262 Eric Paul Investments (515) 245-7029 Locust at Sixth Avenue Des Moines, Iowa 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC 32 after working the previous two sum mers as a teller at First Bank Lidgerwood. In 1979, she transferred to First Bank of South Dakota as a tel ler at the main office in Sioux Falls. ^ In 1980, she joined the trust ser vices division, being named adminis trative assistant in 1981. She was named an administrator in 1984. 75th Anniversary Celebrated E.V.P. Appointed in Leola Leola State Bank of Leola an nounced the appointment of Ralph Ramsey to the position of executive vice president and director. Mr. Ramsey began his banking career with Dakota State Bank, Milbank, in 1970. He served as presi dent of Big Stone State Bank, Big Stone City, for five years and most recently was a vice president at Da kota State Bank of Milbank. V.P. Appointed in Milbank Dakota State Bank of Milbank announced the appointment of T h o m as N. Gronseth as vice president. Mr. Gronseth will be responsible for credit analysis, commercial loans, personnel and purchasing. He joins Dakota State Bank after T. GRONSETH five years with Norwest Bank South Dakota, N.A. as agricultural lending officer. Montana State University. Mr. Hayhurst joined Norwest in Aberdeen in 1981 and transferred to Sioux Falls as funds management officer in 1984. First Bk. Elects Two First Bank of South Dakota, N.A. has elected Patricia A. Nadolski, re tail banking officer, First Bank Ver million, and Cynthia C. Nassen, per sonal trust officer in the regional trust division, Sioux Falls. Ms. Nadolski joined First Bank Vermillion in March of this year as a retail banking representative. She previously was employed by the Steele State Bank in Cherokee, Iowa for the past eight years, serving most recently as vice president. Ms. Nassen joined First Bank System on a full-time basis in 1979 at First Bank Fairmont, Minnesota, On October 26, 1985, the Farmers & Merchants State Bank of Plankinton and White Lake hosted a barbe# cue for the customers of the two banks and approximately 950 people attended. The dinner was prepared and served by the members of the staf# and their spouses and children to this large crowd and was very well received by the public. The bank was organized in 1914 by a group of interested Plankintol# citizens and many of those children and grandchildren of the orginators are still in the Plankinton communi ty. In 1914 the bank was purchased by Henry Gerhard and Fred Gei# hard and in 1956 Ruth Ann Gerhard Page and her husband, Hershell Page, came to Plankinton to work in the bank. Mr. Page assumed the presidency of the bank in 1960 a n # has been the president ever since. Norwest Bk. Changes Told Norwest Bank South Dakota, N.A., announced the transfer of Cur tis W. Zaske from Brookings to the Sioux Falls Stockyards branch as assistant vice president, agricul tural banking; the promotion of Dee Black to ag banking officer in Stur gis, and the promotion of Keven S. Hayhurst to finance officer. Mr. Zaske joined Norwest Bank in Brookings in 1977. He was pro moted to assistant vice president and assistant manager in 1982. Mr. Black joined Norwest in 1984 as an ag banking representative in Rapid City and then transferred to Sturgis later that year. Prior to join ing Norwest, he was a research as sistant in Bozeman, Montana at Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Two Named in Grand Forks sponsibilities in the areas of corpo-# rate financial analysis and strategic planning. Dr. Lambie brings considerable administrative expertise to the board having served as chief of staff# of both the United Hospital and St. Michaels Hospital. The board of First National Cor poration and First National Bank in Grand Forks recently announced the appointment of Randy Newman as senior vice president and the elec tion of Dr. John Lambie to the board. Mr. Newman joined the staff at First National Bank in 1981 work ing in the investment area. He was Officer Named in Bismarck • David M. Carlson has been named promoted to the position of vice president in 1983 with expanded re agricultural loan officer of Norwest sponsibility for asset and liability Bank Bismarck. Mr. Carlson joined management. Mr. Newman will con the bank in 1984 and is a graduate o f^ tinue his duties in the investment North Dakota State University with area of the bank with expanded re a BS in agricultural economics. 33 however, the present value of actual collections should be less than 45%, the FDIC insurance fund will absorb the shortfall. V.P. Named in Cheyenne Ron D. Bunnell has been named vice president of human resources at First Wyoming Bancorporation, Cheyenne. Mr. Bunnell’s most recent posi tion was employee relations and safety manager at Wycon Chemical Purchase in Green River sity of Wyoming. Prior to joining Company. Previous to that position # First Wyoming Bank,N.A.-Green the Chugwater Bank, Mrs. Short he served as employee relations River and First National Bank of was assistant vice president of com manager at Black Thunder Mine, Green River have reached an agree mercial loans at First Wyoming Wright, Wyoming. ment whereby First Wyoming will Bank-Wheatland. purchase and assume the banking Two Promotions Told •Operations of First National Bank. FDIC Pays Off The announcement was made today First Interstate Bank has recent by David R. Johnson, chairman, Lender Depositors ly announced the promotion of The FDIC recently announced it Larry Cooper, former assistant vice president and CEO of First Wyom ing Bancorporation, the parent com is preparing to pay off insured de president in the personal banking p a n y of First Wyoming Bank; and positors in the Yellowstone State department, to the position of assis Roy G. Dinsdale, chairman of the Bank-Lander. tant vice president in the commer The bank was closed on Novem cial loan department of the Sheridan First National Bank. The consummation of the sale is, ber 1, 1985, by Stanley R. Hunt, office. Mr. Cooper has been em among other matters, subject to for- Wyoming State Examiner, and the ployed at the bank for seven years. ^ n a l approval of the appropriate reg FDIC was named receiver. Prior to working in the personal Mr. Hunt said, “The bank’s equi banking department, he worked in ulatory authorities. Upon completion of the sale, the ty capital was dissipated by severe bank operations. employees of both banks will work loan losses caused by depressed con First Interstate also announced together within the First Wyoming ditions in the community. Insider the promotion of Connie Pabst to S y stem . “We feel that the employees transactions and poor lending prac the position of casheir of the Gillette of both banks are important to the tices resulted in its insolvency.” office. Ms. Pabst was previously a Deposits in Yellowstone State loan processor. success of the ongoing operations of First Wyoming Bank,” stated Alan Bank-Lander amounted to about \V. Graban, chairman of First $19.2 million in 3,200 accounts. The ^Vyoming Bank, N.A.-Green River. FDIC estimates that all but about Conversion in Cheyenne $335,000 of the deposits, in 13 ac The Comptroller of the Currency counts, Eire within the federal insur announced the conversion of Wyom ance limit of $ 100,000, or are other ing State Bank to Norwest Bank Changes Told in Chugwater wise secured. Owners of such unin East Cheyenne, N.A. The bank is ® First National Bank of Chug sured deposits will share propor located at 3600 East Pershing water has entered into an agreement tionately with the FDIC in the pro Boulevard in Cheyenne. whereby it will sell its assets and ceeds realized from liquidation of banking operations to First Wyom the bank’s assets. i n g Bank-Wheatland. The announceThe FDIC board determined that Name Change in Jackson American State Bank announced ®ment was made by Roy G. Dinsdale, a payoff of insured depositors was chairman, and major owner of the required because no acceptable bids as of Nov. 1 it is to be known as the Bank of Jackson Hole. parent company of the First Na were received for the failed bank. The new name “relates more di tional Bank of Chugwater; and J. The board also voted to make a ^Kenneth Kennedy, chairman of prompt advance payment to unin rectly to the unique area we serve ^F irst Wyoming Bank-Wheatland. sured depositors, based on the esti and further emphasizes the commit of First Wyoming Bank-Wheatland. mated present value of assets to be ment the bank and stockholders The consummation of the sale is, liquidated, equal to 45% of the unin have to this community and entire among other matters, subject to for- sured claims. valley,” Melvin D. Hutchings, presi ^ n a l approval of the appropriate reg If actual collections on the assets, dent of the bank, said in making the ulatory authorities. on a present value basis, exceed this announcement. The bank, which was opened in Mr. Dinsdale also announced the estimate, uninsured depositors ulti appointment of Donna M. Short as mately will receive additional pay Jackson in 1983, was recently pur president and CEO of First National ments on their claims. The estimate chased by a local investment group ^Bank of Chugwater. Mrs. Short ob for the advance is believed to be con headed by Jackson Hole artist Con tained a BS degree in general busi servative, and it is hoped that actual rad Schwiering. It is located at 990 ness management from the Univer collections will be higher. If, West Broadway. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1985 34 R.B. Clark, pres., Greeley D.A. Childears, exec. mgr., Denver Colorado National Bankshares, Inc. and the Colorado National Bank of Denver. Will F. Nicholson, Jr., president of Colorado National Bankshares, Inc. was elected to the additional of fice of CEO of the company by the board. ciated with Peoples Bank and Trust of Alpena, Michigan and Continen The FDIC recently announced the tal Illinois Bank of Chicago. deposit liabilities of The Aurora The board also announced John Bank, Aurora, have been assumed Meyer, who is retiring as president, by OMNIBANK Iliff, N.A., Aurora. has been elected chairman. The failed bank’s only office was Mr. Meyer began his career with B. ROCKWELL W. NICHOLSON to reopen November 4, 1985, as OM The Longmont National Bank in NIBANK Iliff, N.A., and its deposi 1954, and was elected president in Subsequent to his election, Mr. ^ tors automatically were to become 1957. Nicholson announced the election of depositors of the assuming bank, Nicholas R. Petry, chairman of subject to approval by the appropri Petry-Vappi Construction Com ate court. Changes Told in Denver pany, as chairman of the board of The Aurora Bank was closed on Bruce M. Rockwell announced his the bank. William W. Grant, presi- ® November 1, 1985, by Richard retirement as chairman of Colorado dent, and Gamier K. Puryear, execu Doby, Colorado State Bank Com National Bankshares, Inc. and the tive vice president, are the principal missioner, and the FDIC was named Colorado National Bank of Denver. executive officers of Colorado Na receiver. He will become executive director of tional Bank of Denver. OMNIBANK Iliff, N.A. was to the newly formed Colorado Commu Mr. Nicholson, with extensive ex- 9 assume about $14.7 million in 3,100 nity Foundation. perience in real estate and construc deposit accounts, including $ 1.0 mil Mr. Rockwell joined the Colorado tion, was first associated with the lion in 19 accounts in excess of the National Bank in 1953. He worked management of Colorado National federal insurance limit of $ 100,000. in various departments of the bank Bankshares in 1970, became its ^ The assuming bank has agreed to and was elected president in 1970. president in 1975, and was elected to w pay the failed bank’s loans and other In 1976, he became chairman of both the additional position of chief exassets for $9.5 million. To facilitate the transaction, the FDIC will ad vance $5.0 million to the assuming bank and will retain assets of the failed bank with a book value of about $7.6 million. Assumed in Aurora Addition to United Bank Changes Told in Longmont Colorado National Bank-Longmont has elected Larry H. Stevens as president. Mr. Stevens joins the bank from Colorado National Bank-Boulder where he served as senior vice president-loan administration. Mr. Stevens has previously been asso- HE steel framework for the soon-to-be enclosed bridge over Lincoln Street is the newest T addition to the United Bank Center atrium in Denver. This 66-ton structure, measuring L. STEVENS J. MEYER Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 feet in height, connects One and Two United Bank Centers. It took approximately one week to construct and is 16 feet above the street. Escalators will be installed connecting# this “skyway” to the Lincoln Street level of the atrium and Three United Bank Center. The 40,000 sq.-ft. United Bank Center atrium is scheduled to be completed in the fall of 1986. Colorado News •ecutive officer in June of 1985. Barry Willett has also joined the staff of Colorado National Bankshares, in the position of vice presi dent, serving as loan review man a g e r for the Colorado National Bank of Denver. In this position, he is re sponsible for the ongoing internal loan review function of the bank. Mr. Willett has 19 years of bank i n g experience. He most recently was with Colorado National BankLakewood, where he held the posi tion of vice president-senior lender. Colorado, has named Ronald L. Zim merman senior vice president and COO, and Judith M. McKee, ac counting officer. Mr. Zimmerman joined the com pany in 1982 as vice president of marketing. He was previously asso ciated with Wells Fargo Leasing and Seafirst Leasing. Ms. McKee joined Colorado Na tional Leasing in 1983 as accounting manager. Three Promoted in Boulder Seven Named in Denver United Bank of Denver recently named Dean K. Lehman, vice presi ed en ti Conrad J. Freeman, Michele M. Look and Marlene McDaniel, as sistant vice presidents; Susanne S. Shailer, Stanley C. Stephan and Richard A. Wahlborg, operations, •personal trust and investment, and commercial banking officer, respec tively. Mr. Lehman, a product develop ment manager in marketing, joined • t h e bank in 1980. Two Named in Golden Colorado National Leasing, Inc., Mr. Sherman has nine years bank ing experience having previously been associated with the Bank of Boulder. Joining the bank in 1978, he has held positions of bookkeeper, assistant bookkeeping supervisor, and installment loan officer. CBA/ABA Sponsor Teleconference The Colorado Bankers Associa tion and the American Bankers As sociation recently addressed the timely loan issue through a nation wide video teleconference held at the Clarion Hotel Denver Airport. Some of the very best in this field were present to share their many years of experience in addressing this challenge through the nation wide, live-satellite broadcast. Moderating the national panel was Robert P. Chamness, partner, McKenna, Conner and Cuneo, San Francisco, California. The panelists included: Daniel W. Persinger, vice president, head of special asset ad ministration, Continental Bank, Chicago, and former deputy general counsel, FDIC; J. Michael Woody, executive vice president, First Na- Colorado National Bank-Boulder has promoted Anette Taylor to assistant vice president-marketing and account services manager; Vicki J. Kalicki, loan operations officer, and Steve C. Sherman, assistant vice president-consumer loan admin istrator. Ms. Taylor joined the bank in 1973 as teller with subsequent pro motions to teller supervisor and op erations officer. Ms. Kalicki started her banking career in 1975 when she joined the bank as commercial loan secretary. During her tenure with the bank, she has held positions of executive secretary and loan operations offi COLORADO NEWS. .. cer. (Turn to page 36, please) EFT MARKETERS. . . (Continued from page 15) • importance of price to customer acceptance. Many consumers have a psychological difficulty with the idea of purchasing things like groceries on credit. For this kind of purchase, they seem to prefer direct debit cards which they view as the electronic • equivalent of checks. And, any retailer can tell you how cost-conscious customers are. They price shop and a penny’s difference can make them pick one product over another. So, if electronic POS transactions cost more than paper checks, customers will keep writing • checks. So how will banks and retailers move from today’s limited POS experiments to tomorrow’s national net works? The move will begin with increased communications • among regional networks. In many states, like Florida and Iowa, the switch technology base is being built very rapidly. But, there are still link-up and reliability concerns, which are especially important to retailers. - F o r instance, a retailer isn’t going to be very comfor^ table with a system which requires a transaction to be passed over 14 computer systems. Not only could that drive transaction time up to a minute, it could reuse serious reliability problems without a backup system. ^ We are close, but we still have a ways to go. A fullyw implemented EFT/POS system could save banks $6 billion a year by eliminating paper-based systems. But https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35 some banks don’t even explicitly price check services yet. The trend to increasing emphasis on fee income at financial institutions may influence POS develop ments as much as anything else. □ THE BANK EXAMINATION. . . (Continued from page 18) chronological order, and should be included in the loan file. In general, comments should reflect the ongoing condition of the line. Examples include: At the start of a crop cycle - how many acres of corn; irrigated or dry land; is the land leased or owned; if leased, cost of the lease; projected yields. Mid-way through the crop cycle - is there hail damage; what are re-projected yields. If funds were advanced for purchase of feeder livestock what are the weights; what are the projected dates of sale; estimates of finishing costs; estimated margins. If there are deviations from projected budgets, what are borrower’s/lender’s plans. Documentation relative to collateral is extremely important. In general we would like to see more fre quent and timely livestock inspections, and more fre quent and realistic pricing of collateral — particularly machinery and land. More use and file notations of re cent comparable sales would be extremely helpful. I want to emphasize that examiner judgment, coupled with line structure and documentation, are all impor tant. If the lender is not completely familiar with a line, it is extremely difficult for the examiner to arrive at an accurate classification. □ Northwestern Banker, December, 1985 36 termination in undertaking the pro- • ject. Brookfield Bank to Open ^ The Comptroller of the Currency has approved the opening of Tri City National Bank of Brookfield. The proposed location of the bank is 17100 W. Bluemound Road in £ Brookfield. V.P. Elected in Great Falls president in 1979, and department Robert A. Butcher has been elected manager in 1984. vice president and manager of the Promoted in Billings agri-business de First Interstate Bank of Billings, p a rtm e n t at N.A., recently promoted David J. F ir s t B ank Ferries to real estate loan officer. Great Falls. Mr. Mr. Ferries joined the bank in 1985 Butcher joined as a construction loan representa First Bank as a tive, prior to which he had been an m anagem ent assistant vice president, mortgage trainee in 1976, lending, at First Security Corpora was elected an tion in Salt Lake City, Utah and also agricultural loan at First Federal Savings & Loan in officer in 1977, Sheridan, Wyoming. a ss is ta n t vice COLORADO NEWS. .. (Continued from page 35) tional Bank of Oklahoma City; J.W. Young, vice president, credit policy, Mellon Bank, Pittsburgh, and Den nis McCuistion, McCuistion and As sociates, Irving, Texas. Local panelists were J. Barclay Blue, president, First Colorado Bank & Trust, Denver; Roger Par ker, vice president, United Bank of Denver, and Charles Malone, Malone and Brown, P.C. Seminar by Central Bk. Dr. Martin Feldstein, former chairman of President Reagan’s council of eco nomic advisers and H a rv a rd University eco nomics profes sor, addressed more than 1,000 Denver business and civic leaders recently at the Central Bank’s Fall Executive Strategies Seminar. As today’s leading American eco nomist, Dr. Feldstein focused on what’s next for the economy, inter est rates, the deficit and American DigitizedNorthwestern for FRASERBanker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Elected to Board First Wisconsin National Bank, Eau Claire, recently elected Larry G. Schnack to its board of direc to rs . M r. Schnack, newly in a u g u ra te d chancellor of the U n iv e rsity of W isconsin-Eau Claire, has a his tory of teaching and administra L. SCHNACK business in his keynote speech, “ In tive experience. ternational Economy and American He was acting chancellor from June of 1984 to his inauguration as chan Business.’’ The Feldstein seminar is part of cellor on Oct. 18, 1985. the Central Banks’ ongoing Execu tive Strategies Series. Through the series, the Central Banks’ bring na Named Vice President at 1 tionally recognized speakers to Col Rocky Mountain Bank Note orado to discuss timely economic, Eric Younge has been named vice business and social issues. president and general manager of the Forms Pro ducts Division V.P. Added in Denver Rick Bramer has recently joined of Rocky Moun Colorado National Bank-Tech Cen tain Bank Note. The announce ter as vice president-lending. Mr. Bramer has 15 years banking ment was made experience, having previously been by John Hol associated with Pueblo Bank & man, president Trust and United Bank of Grand and chief execu tive officer of the Junction. firm, headquar E. YOUNGE tered in Denver. Mr. Younge will have full P & L re sponsibility for the division, includ WISCONSIN NEW S.. . ing sales, manufacturing and mar (Continued from page 27) keting functions. This RMBN divi-® Pond Project Sponsored sion currently has sales of about $12 F&M Bank Menomonee Falls was million and services financial insti among the community sponsors of tutions with high-quality, quick tur the Mill Pond Project to renovate naround, short-run MICR encodedthe pond area in Menomonee Falls. forms. The appointment is part of* The project was formally begun the company’s plan to become a ma with a ground-breaking ceremony on jor supplier of forms to financial in October 18. Richard P. Klug, presi stitutions. Mr. Younge has 15 years experi-^ dent and CEO of the bank, praised the involved government and civic ence in marketing, manufacturing^ bodies for their cooperation and de and operations. Bank Building Unveils ‘Financial Plaza’ 37 $193,180,578, up 10.5% from $174,764,787 last year, while net earnings were $27,451,504 or 64<t per share, up 16.0% compared to $23,656,296, or 550 per share a year ago. The company has 42,932,924 shares outstanding with par value of $ 1.00 per share. Direct Phone Number Eases Reg J Compliance Communications between paying and collecting banks complying with Regulation J now can be simplified because of a special telephone num ber added to U.S. Operations list ings in The Rand McNally Bankers Directory. The number will appear for the first time in the Final 1985 edition, published in December. A VARIETY of financial service companies would be grouped in a tight-knit mall atmosphere around the commercial bank, utilizing the Financial Plaza concept. MALL type of financial services, appropriately labeled as a Fi nancial Plaza, has been designed by the Advanced Concepts Group of Bank Building Corporation, St. Louis. Announcement of the inte grated Financial Plaza was an nounced at a press conference dur ing the American Bankers Associa tion’s recent annual convention in New Orleans by Rex H. Dunlap, president of the Financial Facilities Group of BBC. Mr. Dunlap said the new design will aid some banks to compete more effectively with other types of finan cial services marketers by adopting a one-step setting that offers ser vices of selected firms under the tacit sponsorship of the bank. He said the research for the Ad vanced Concepts Group was con ducted by Battelle Laboratories and Marketeam Associates. Mr. Dunlap said the Financial Plaza operates within the confines of current banking law, yet offers all financial services. He said it will bring a broad range of independent financial service providers—such as investment, insurance, legal, tax, real estate and travel service firms— in an unparalleled facility, anchored by the bank itself. With this new concept, Mr. Dun lap stated, “The bank can attract A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis new customers by offering its ser vices in a one-stop, full-service envir onment.” Stating that “Research suggests the ‘stocks and socks’ idea does not appeal to the affluent cus tomer,” Mr. Dunlap suggested that “people prefer to be more indepen dent in their choice, but they also welcome the third-party endorse ment by their bank as a trustworthy source.” Mr. Dunlap concluded by stating th a t the A dvanced Concepts Group’s Financial Plaza will allow the bank and affiliated financial tenants to benefit from common traffic flow. He said the bank, “in stead of footing the bill as a single building owner and sponsoring the services, will charge enough rent presum ably to com pensate it enough for giving up the right to of fer those services itself.” The Rand McNally Bankers Directory contains operations information on all U.S. banks - over 15,000 head offices and their branches - to make verification and notifica tion fast and efficient. Paying banks utilizing this line will be able to notify collecting insti tutions directly about dishonored items, and eliminate the expense of using Fed Wire. Rand McNally says this can save up to $4.25 per item and can avoid potential liability for Deluxe Sales, Net Are Up the returned check by making sure Deluxe Check Printers, Incorpo critical information is relayed to the rated, St. Paul, Minn., reports that collecting institution in a timely sales for the first nine months of fashion. The new phone number will ap 1985 reached $562,073,865, up 11.3% from $504,984,525 a year pear in Volume 3 (Operations) of the ago. Net earnings for the period four-part director. Further informa were $75,608,033 or $1.76 per share, tion can be obtained by calling Rand up 18.8% from la s t y e a r ’s McNally’s Financial Publishing Division at (312) 673-9100 or writing $63,620,773, or $1.45 per share. Sales for the third quarter were P.O. Box 7600, Chicago, IL 60680. Northwestern Banker, December, 1985 38 A Th Anchormen, 0 Change comes fast in today’s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to dependably and consistently Call them toll-free — in meeting all your correspondent Nebraska 1-800-642-9907; outside Nebraska, 1-800-228-9533. banking needs. And the faster things change, the faster the anchormen respond — with the latest financial technology at their fingertips and the historic financial strength of First National firsl n a tio n a l b a n k of omaha Bank of Omaha at their disposal — one first national center, omaha, nebraska 68102 for you. member FDIC • 341 -0500 © Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse. Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 ing, stating that Nebraska would not be the aggressor state, but would be aggressed upon by moneycenter financial organizations. The consensus opinion among bankers voting to oppose interstate banking was that more time was needed for last year’s changes to the law governing branch banking to be implemented and that there ap peared to be relatively little demand for such a change in the state’s bank structure. "Bankers Favor New Bank Tax Proposal Four Banks Merge in York County HE Nebraska Bankers Associa T tion recently announced its sup p o r t of proposed legislation to On October 15 the previously an nounced merger of The First Na tional Bank of York, Farmers & Traders Bank of Waco, Blue River Bank of McCool Junction, and The First National Bank of Bradshaw became a reality, creating The First National Bank of York. The latter three banks became full service branches of First National, which becomes the 12th largest commer cial bank in Nebraska with assets of approximately $115 million. The merged banks have a com bined 390 years of service to York County, Nebraska. The combined capital of the banks, including re serves, is $11,338,000, for a capital asset ratio of 9.78%. Robert V. Jones will serve as chairman of the merged banks, with C.G. “Kelly” Holthus as president. They stated there will be no change in the personnel at the branches. Thomas G. Damkroger has been elected vice president and branch manager at Bradshaw, K.D. Patitiz has been elected vice president and branch manager at McCool Junc tion, and M.L. “Spike” Sjolander has been elected vice president and branch manager at Waco. The merged banks will employ approxi mately 80 persons. All of the directors of The First National Bank of York will continue to serve in that capacity, and W.C. Johnson, senior partner in the law firm of Cline, Williams, Wright, Johnson & Oldfather of Lincoln. change the way the state taxes banks and other financial institu tions which has been developed by a special task force of the legislature’s ^revenue committee. The plan calls for banks to be taxed at the rate of 40 cents per $ 1,000 of deposits, with a cap tied to the corporate income tax rate for the •taxable year. The tax is a type of deposits franchise tax, similar to a plan in use in the state of Vermont. “We feel this plan presents a fair and reasonable method of resolving •certain legal problems surrounding the question of bank taxation. It also represents an improvement over the present system which has ^proved to be inconsistent across the •b o ard and unpredictable in its reve nue yields,” said NBA President Mel Adams of Ogallala. Mr. Adams complimented the tax ^ ta sk force, chaired by Omaha Sena t o r Vard Johnson, for its work on the plan. “We are convinced that this proposal represents a reason able, well thought-out plan which ^will tax banks on their ability to pay,” he said. Mr. Adams said he hopes the issue will bring to rest past contro versies over how banks are taxed. ^Because of a U.S. Supreme Court decision dealing with how states can tax income from government securi ties, Nebraska’s previous franchise tax rule was ruled unconstitutional. ^ “The NBA took no position on the 1982 legislation which estab lished the current method of bank taxation, but we are aware that it has not been satisfactory to either ^ th e state or to banks whose invest ment portfolios contain fewer taxexempt securities,” he said. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Adams commented that the calculations used to determine the income tax cap (48.8% of the maxi mum corporate income tax rate) take into account the fact that com mercial banks are a market for local municipal bonds and also recognize that Nebraska banks would give up certain other tax advantages cur rently permitted by law. The State Attorney General’s of fice has been asked for an opinion on the constitutionality of the proposed tax legislation, which is expected to be presented to the Nebraska legis lature when it convenes in regular session in January. The NBA’s decision to support the plan was based on a vote taken recently during an NBA Banking Leadership Conference to discuss the proposal. More than 100 bankers participated in the conference and the motion to support the plan car ried unanimously. The NBA also announced it will maintain its present position in op position to interstate banking legis lation for the coming year. “Based on a vote taken on Octo ber 29 during a banking leadership conference, a m ajority of the 100-plus bankers present do not believe that the Association should change its position on interstate at this time,” Mr. Adams said. Bankers attending the conference heard presentations by spokemen for and against interstate banking. Speaking for proponents was Auro ra, Nebraska banker James A. McBride, who contended that tech nology and the marketplace have dictated the time has come to re move geographical barriers in bank ing. Kenneth A. Guenther, execu tive director of the Independent Bankers Association of America, spoke out against interstate bank- V.P. Named in Sidney American National Bank of Sid ney has named Dwight B. Stubbs as senior vice president. Most recently, Mr. Stubbs was senior vice presi dent of First State Bank of Gothen burg. Northwestern Banker, December, 1985 40 Nebraska News LEFT— Participants in the “Regulator Update” workshop included, front: Philip Schmidt, Federal Reserve Bank; James Barbee, Director of Banking, and Cary Hiner, Asst. Regional Dir., FDIC, back, Kevin Blakely, Omaha fid. office dir., OCC; Fred Often, moderator & pres., Commercial State Bank, Hoskins, and Paul Wiechman, asst. reg. dir., FDIC. RIGHT—Governor Robert Kerrey, was the guest speaker dur ing the noon luncheon. NIBA Holds 4th Annual Convention By ROBERT O. CRONIN Associate Publisher i Congressman Bereuter’s com ments during the morning breakfast session highlighted the recent bail out proposal of the Farm Credit Sys tem. Congressman Bereuter stated, “A hearing of some sort is coming shortly, but not before the end of the year—the governor was very slow in coming to the house.” Congressman Bereuter raised the question to the bankers in atten dance, “Why should there be a bail out of a system that will lend to one farmer, and not give the same type of treatment to the commercial lender who does business with his next door neighbor?” Congressman Bereuter concluded, “We need a reg ulatory and structural overhaul, es pecially when it comes to bail out procedures.” Mr. Guthery, a member of Perry, Perry, Witthoff, Guthery, P.C., Lin coln, spoke on legal issues that face many bankers today. He stressed the importance of knowing w hat# rights are available for the lender and lendee. Mr. Guthery’s topic, “Recent Court Decisions: What They Mean To Your Bank,” touched on many interesting legal case# studies that have affected banks. Mr. Guthery went into some detail when explaining the importance of proper wording and legal signatures on documents. • During the noon luncheon, Gover nor Robert Kerrey spoke on many issues concerning the state of Neb raska. Although he agreed these are difficult times, Governor K errey^ said there are things the state can do to make itself stronger. Much of what Governor Kerrey said was based on his belief, “Schools are still a strong part of our community, a n d ^ children need to be up on modern technology, math, physics, and ENJOYING themselves during the NIBA Convention were, left: Tom Olson, V.P., IBAA, and pres., Lisco State Bank; Mark Buckley, NIBA Past-Pres. & Pres., First National Bank, Wil cox, and Congressman Doug Bereuter. Congressman Doug Bereuter gave his views on the recent Farm Credit System^ problems and said “we can expect further deterioration before it gets any better.” HE N ebraska Independent T Bankers Association held its 4th annual convention last month in Lincoln. The convention featured top speakers and informational ses sions designed to promote knowl edge and an awareness among Neb raska bankers concerned with agri cultural and economic conditions that face them daily. The two-day convention featured an FHA workshop hosted by Kirk Jamison, state director, and Bob Jedlica, Chief Farmers Programs, FHA; a federal update from Con gressman Doug Bereuter; an infor mative session hosted by John Guthery, president, Nebraska Bank Attorneys Assoc., and a key panel discussion entitled “Regulator Up date.” Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News ®other related courses.” Governor Kerrey told the lun cheon gathering he wants to form a state agricultural bank under the ^N ebraska Agricultural Authority in *1986. He called it a “new government/corporate entity, that will be a vehicle to sell bonds, hold land and be involved in agricultural process i n g . ’’ He explained, “This will not be * a traditional bank, but will be viewed as a source of equity.” The “Regulator Update” panel in cluded: James Barbee, Nebraska di^ rector of banking; Kevin Blakely, di rector, Omaha field office, Comptrol ler of the Currency; Philip E. Schmidt, vice president, Federal Re serve Bank of Kansas City, and two ^ FDIC assistant regional directors— Cary Hiner (for Nebraska) and Paul Wiechman (from office of deputy re gional director), both from the Kan sas City regional office. 9 Many issues were discussed dur ing the question and answer session including the proposal from the FDIC of the new disclosure law that publishes a record of those banks # that are having difficulties. This law goes into effect in January, 1986, and is opposed by many bankers who fear what many customers will read into these disclosure state# ments and panic. Mr. Blakely argued, “Many banks underesti mate the loyalty of their customers and are more concerned with the doors staying open than a poor • rating.” Paul Wiechman added, “The FDIC is here to insure the safety and soundness of the banking indus try, including for the customer who • deposits his money in that bank.” He concluded that many bankers have taken the abbreviation for FDIC and are reading it as “Forever Demanding Increased Capital.” • A banquet, featuring B.F. “Chip” Backlund, IBAA President, con cluded this year’s NIBA Conven tion. Chairing this year’s convention ® was Mark Buckley, past-president, NIBA, and president, First Na tional, Wilcox. Passing on his du ties, Mark welcomed new officers for the 1985-86 term during the annual * membership meeting. The new officers are: Pres.—Fred Otten, president, Commercial State, Hoskins; Pres.-Elect—Roy O. Yaley, ^ president, Nebraska State, South * Sioux City; 1st V.P.—James Bohart, vice president & cashier, Harvard https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 State; Secy.—F. Phillips Giltner, managing partner of Fred A. Lockpresident, First National, Omaha; wood and Co., Certified Public Ac and, Treas.—Robert C. Fricke, presi countants. dent, Farmers and Merchants Na tional, Ashland. Kurt Yost continues as NIBA ex ecutive vice president at headquar ABA Banctraining Offers ters in Lincoln. □ Professional Video Package Adams Banks Plan Merger The directors of the five Adams Banks—Bank of Brule, Brule; Chase County Bank & Trust Company, Im perial; First Security Bank, Suther land; Security State Bank, Madrid, and Keith County Bank & Trust Company, Ogallala—have approved a plan to request the merger of their banks under the name “Adams Bank & Trust.” This is an opportunity which has just recently been made available by the State Legislature to Nebraska banks. Prior to the consolidation, the request must be reviewed by the Nebraska Dept, of Banking, the Federal Reserve Bank and the FDIC. Bank chairman Mel Adams said a response is not anticipated until after Dec. 31. Pres. Named at Norwest Norfolk Dennis R. Morrison has been named president of Norwest Bank Nebraska’s Nor folk facility. He replaces Thomas Finnigan who re signed to pursue other business in te re sts. Mr. Morrison joined Norwest in 1979 as controller at Norwest Bank D. MORRISON Des Moines. In 1982 he was named regional vice president/ controller for Region V, which includes Nebraska and west ern Iowa. In 1984, he was promoted to Region V vice president/banking and development. Prior to joining Norwest, Mr. Morrison was associ ated with Mercantile Bancorporation and Arthur Anderson Com pany, both in St. Louis, Missouri. Pres. Elected in Gering Fred A. Lockwood has been elected president of Gering National Bank and Trust Company, Gering. Most recently, Mr. Lockwood was A new video training series, titled “Professionalism In Banking,” will soon be released by the American Bankers Association as a part of its 1986 BANCTRAINING Video Sys tems offerings. The “Professionalism In Bank ing” package contains six video classes on issues relevant to today’s bank employee. The series includes: • “ Is My Money Safe With You?” • “A True Professional: The Look” • “A True Professional: The A tti tude” • “The Gentle Art of Saying ‘No’” • “Handling Conflict With Your Boss” • “You Can Bank On It!” The series sells for a special price of $995 if purchased before January 15,1986 (after that time the package will be sold for $1,095). Non-ABA member prices are $1,325 and $1,460, respectively. If purchased individually, ABA BANCTRAIN ING video classes are sold for $395 to members and $525 to non-mem bers. ABA BANCTRAINING Video Systems video classes are produced by the American Bankers Associa tion, Financial Shares Corporation of Chicago, and Creswell, Munsell, Fultz & Zirbell, Inc., Des Moines, I A, a Young and Rubicam Com pany. For further information on “Pro fessionalism in Banking,” or any of the other BANCTRAINING video classes, call toll free 1-800-247-0010. (In Iowa, call collect 1-515-246-3582.) Video classes average 20 minutes in length and are available in VHS, Beta I, Beta II, or %-inch format. RMA Names New Director D. John Stavropoulos, executive vice president, The First National Bank of Chicago, has been named to fill a one-year unexpired term on the national board of Robert Morris As sociates, the national association of bank loan and credit officers. 42 Michael L. Dahir has been named vice president and chief financial of ficer of FirsTier, Inc. Mr. Dahir joined Omaha National in 1974 as a credit analyst. He later served as a commercial loan officer and was promoted to vice president in 1977. He was named head of the leasing department in 1980 and the investment department in 1982. He was promoted to senior vice presi- dent in charge of the lending divi sion in 1984. Most recently, Mr. Dahir headed Omaha National Bank’s lending division. He is suc ceeded in this position by Robert A. Suddick. Mr. Suddick came to Omaha Na tional in 1968 as a management trainee and later served as a team leader in commercial banking. He was promoted to vice president in TIMES HAVE CHANGED ... BUT HAS YOUR CREDIT INSURANCE CARRIER? 1974 and was named manager of the corporate group within the commer cial banking department in 1983. Mr. Suddick was named head of th e # resource management and credit re view department in 1984. * * * Douglas County Bank & Trust Company has announced the promo-( tion of Robert Gross to senior vice president of the loan divi sion, Peggy J. Blake to vice president of per sonnel, E liza beth A. Csejthey to assistant vice president/faciliR QR0SS ty manager of the 72 & Maple facility, Daniel Hamann to commercial loan officer, and ( Trish Kuper to assistant operations officer. CENTRAL STATES OF OMAHA FEATURES: PRODUCT KNOWLEDGE...........KNOW YOUR PRODUCT TAKE 5 AND PROSPER...............A PROVEN 5 STEP SALES SYSTEM FOR ALL YOUR FINANCIAL INSTITUTIONS SERVICES COMMUNICATION SKILLS . . . . THE KEY TO SUCCESS IS COMMUNICATION BASIC SUPERVISION.................FOR EXPERIENCED AND THE NEW OFFICER C A LL ........................... BRING MORE BUSINESS TO YOUR INSTITUTION TIME MANAGEMENT................. YOUR TIME IS IMPOR TANT, DON’T WASTE IT CREATIVE SELLING ................... NEW APPROACH TO FULFILL NEEDS LET OUR PROFESSIONAL STAFF GO TO WORK FOR YOU AND YOU’LL SEE THE DIFFERENCE WHERE IT COUNTS ... YOUR BOTTOM LINE. FOR ALL YOUR FINANCIAL INSURANCE NEEDS PLEASE CALL: DICK KIZER, JOHN BENSON AND MARGARET DONOVAN AT: 402/397-1111 Central States Health & Life Co. of Omaha P.O. Box 34350 • Omaha, NE 68134-0350 Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Gross joined DCB&T in 1971 as a loan officer in the commercial loan department and was promoted to vice president in 1975 and supervisor of the loan department. In 9 1982, he was promoted to manager Nebraska News • o f the loan division and a member of the management committee. Mrs. Blake joined the bank in 1973 working in the bookkeeping de^partm ent and was later promoted to ^ a n executive secretary. In 1978, she was transferred to the customer ser vice department as an assistant cashier and in 1984, promoted to ^personnel officer. Ms. Csejthey joined DCB&T in 1968 as a teller trainee. She was pro moted to master teller in 1973 and in 1976 was promoted to assistant ^cashier of customer service. Ms. Csejthey has been in the installment loan division since 1978 when she was promoted to installment loan of ficer. q Mr. Hamann began at DCB&T in 1983 as a credit analyst in the com mercial loan division. He was pre viously employed by Hawkeye Bancorporation as a bank management ^trainee in Boone, Iowa. Ms. Kuper began at DCB&T in 1982 in the commercial loan division and was then transferred to the per sonnel department in 1984. She • joined the bookkeeping department in 1985. * * * • Mr. Haggard joined the bank in 1981 as a vice president serving as a commercial lending officer and more recently, loan manager. His new duties will include more involve ment in overall management of the bank. Mr. Weber joined the bank in * * * 1959 and has served in numerous capacities since that time. Presently Felicia C. Gibson, an assistant of he serves the bank as a commercial ficer at Omaha National Bank, has lending officer, heading the install been e lec te d ment loan department, and serving Nebraska presi as marketing officer, security offi dent of the Na cer, as well as his duties as cashier. tional Associa tion of Bank Women, Inc. As state presi Talk To The Municipal dent, Ms. Gib Bond Professionals son will coordi nate the activi ties of nine local F. GIBSON NABW groups in Nebraska. She previously has served as president of the Omaha Mid Plains Chapter, as state confer ence chairman and as state public af Robert E. Roh William March Executive Vice President President fairs chairman. Charles R. Gowin has been named president of the new subsidiary. He formerly was senior vice president and director of operations for Peo ples Bank and Trust Company, a North Carolina-based bank with 60 branches. Conferences Postponed The NBA Head Teller/Teller Staff Conferences originally scheduled for October 22-24 have been postponed until April, 1986, due to the NBA’s heavy conference schedule in Octo ber. FirsTier, Inc., a Nebraska-based financial services company, has formed a new subsidiary which will ultim ately • p r o v id e d a ta processing ser vices to all Firs VP Named in Pender Tier su b sid ia Michael C. Minert has been ries, as well as named vice president of Pender •sell data services State Bank, Pender. He previously to outside finan served as vice president and office cial institutions manager of the Renwick office of the C. GOWIN and other comHawkeye Bank and Trust, Hum anies in the region. boldt, Iowa. The new subsidiary will be called FirsTier Data Services, Inc. Other FirsTier affiliates include Omaha Three Named in North Platte National Bank, First National Bank The McDonald State Bank, North _ _ & Trust Co. of Lincoln and FirsTier Platte, has announced the addition "^Mortgage Co. of Paul Bachman to its staff as vice “Consolidating data processing president, serving in the commercial for all FirsTier affiliates under one lending area with special emphasis subsidiary will provide us with sig on agricultural lines of credit. Mr. Bachman had been president nificant operating efficiencies,” said John Woods, chairman and CEO. and CEO of the North Platte Pro “We also plan to develop a line of duction Credit Association. software applications which we can McDonald State Bank also an successfully market not only to nounced the promotions of Ken (o ther financial organizations but to Haggard as executive vice presi companies outside our industry as dent, and Don Weber as senior vice well.” president and cashier. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 Patrick H. Rensch C. W. (Chuck) Poore, Jr. Senior Vice President Senior Vice President A. William (Bill) Abts, Jr. Wayne A. Rasmuss Vice President Secretary-Treasurer Micky Krupinsky Representative For municipal bond OFFERINGS, BIDS and APPRAISALS, call on the professionals who specialize in tax-free bonds. Municipal Bond Underwriters, Inc. Investm ent Bankers • Underw riters 208 South 19th Street, Om aha, Nebraska 68102 (402) 341-1144 In Nebraska Call Toll Free (800) 642-4413 Member of the Securities Investor Protection Corporation S 1 K Northwestern Banker, December, 1985 44 ficer. Mr. Hendriksen replaces Richard Fritz, who announced his resignation earlier this week. The bank board also appointed in terim officers James F. Nissen, chairman and CEO, Dana Henricksen, vice chairman and Art Burtscher, vice chairman. Mr. Nissen is currently president of three banks in Lincoln which are under common ownership with First National, and president of a bank management firm. Lincoln ® ® ^ 9 Sponsored by the NBA Denise Otto recently joined the City Bank staff. Mrs. Otto was ap pointed assistant vice president and will assist City Bank customers with installment and commercial loans. She had over 11 years experience with installment loans with Have lock Bank, before joining a private leasing company, and later, the FDIC. States Infantry during World War II. He moved from El Paso, Tex., to Sumner in 1949 and had been active in banking, insurance and real estate there for the past 36 years. He is survived by his wife, Har riet, who is a vice president and di rector of Security State Bank. Other survivors include three sons, three grandsons, one sister and four brothers. Edwin C. Driscoll Changes Made in Fremont Edwin C. Driscoll, 70, cashier for 36 years at Security State Bank in Sumner, Nebr., died at his home in Sumner on October 4. He was also a director of the bank. Mr. Driscoll was a native of Blair, Nebr., and served in the United H.W. H endriksen has been elected president of First National Bank and Trust Company of Fre mont. He has been associated with the bank for over 40 years in various capacities and most recently has served as the bank’s senior trust of- Call Steve Sutton For Complete Credit Insurance Service . . . Call Toll Free in Nebraska 800-742-7335 or call collect 402-475-4061 Jb Bank Programs for Groupalndividual Life*Accident & Sickness LIN C O LN rt LIFE Where BENEFIT is more than a middle name Lincoln, Nebraska 68508 Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Steve W. Sutton Vice President The Nebraska Bankers Associa tion’s bank management committee will sponsor the 1986 Bank Execu- • tive Conference on February 19-23. The conference, formerly known as The Bank Presidents Conference, will be held at the Loews Paradise Valley Resort in Scottsdale, Ari- • zona. Correspondents Use Micro To Access MHT Services Manufacturers Hanover Trust Company, New York, introduced Valuex, the first comprehensive per sonal computer-based correspon dent banking system for community banks, thrifts, and credit unions, at the American Bankers Association convention in New Orleans. Valuex gives local financial insti tutions single-source electronic ac cess to a broad range of MHT and other investment alternatives — as well as automated operating and in vestment services at a discount. It also has a unique electronic messag ing capability that enhances the level of service which smaller banks generally receive from their larger correspondents. Previously, com munity banks communicated with their New York and regional corres pondents primarily over the tele phone. “Valuex is Manufacturers Han over’s invitation to community bankers to enter the future of corres pondent banking,” said Merrill O. Burns, executive vice president and head of MHT’s worldwide corres pondent banking business. Valuex is an Interplex product, developed by MH Financial Man agement Systems, Inc., a whollyowned subsidiary of Manufacturers Hanover Corporation. 45 LONG DISTANCE SERVICE Correspondent Banking Division The Correspondent Banking Division of First National Lincoln can offer unmatched service in helping you meet the needs of your valued customers. Draw on the First Team to provide a full range of innovative products; fast, accurate turnaround; and the strength, experience and expertise of Lincoln’s largest bank. For correspondent services you can rely on, think of us first. First National Lincoln. Call us today. First N a tio n a l Lincoln A FirsTier B ank Member FDIC 13th & M Streets • P.O. Box 81008 Lincoln, Nebraska 68501 Phone 800-742-7376 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1985 46 festive holiday season and prosper ous new year, may we say a special “thank you” to all whom we’ve served during 1985. 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. BankersTrust Your Correspondent Business Bank Des Moines, Iowa 50304 M em berFDIC,Federal R eserveSystem Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 fitability for the past 30 years. The National Bank of Waterloo, along with Midway Bank & Trust, are wholly-owned subsidiaries of Iowa National Bankshares Corporation. INBC has capital in excess of $28,000,000, and Gilbertville Sav ings Bank has capital in excess of $ 2 ,000,000. Assumption in Auburn will retire from the bank after 28 years of service on January 1, 1986. II United National Bank of Iowa, Mr. Krause was named chairman Sidney, has announced the appoint and Ms. Gallagher was named vice ment of Martin L. McCartney as president/cashier of the bank. Rus president of the bank. Mike L. Keim, sell G. Olson of Allison, and Charles who formerly served as chairman W. McManigal of Mason City were ^and president, will continue as chair named to the board, along with Mr. man. Mr. McCartney joined the bank in Krause, Mr. Galloway, and Ms. Gal 1982 as an agricultural loan officer. lagher. He was elected to the bank's board #and promoted to vice president in Acquired in Waterloo 1984. He is also a member of the A.W. Breitbach, president of Gilboard of the Union National Bank in bertville Savings Bank and R. Scott Massena, Iowa. Fetner, president of The National In addition to his lending duties, Bank of Waterloo, announced an ac •M r. McCartney has been actively in quisition agreement between the volved in establishing the bank’s two banks. new office in Sidney, Iowa. The bank According to Mr. Breitbach, Gilopened the Sidney office in tempo bertville Savings Bank will become rary quarters in June of 1984, and a full-service office of NBW and will •M r. McCartney said they will be continue to be under his manage moving into their newly constructed ment. Loan availability will be en facility around the first of the year. hanced since NBW has a much greater legal lending limit. Also, ser vices to Gilbertville’s customers will •Pres. Added in Wilton be expanded to include trust ser Jerry Johnson has recently joined vices and access to automated teller Wilton Savings Bank as president. banking. Mr. Fetner stated that GilbertMr. Johnson, ville Savings Bank’s customers will «who re p la c e s experience very few changes in their TRod B u rn e tt, present services since the bank uti was most recent lizes a number of systems of NBW ly executive vice including data processing and loan president of the processing. Management of both «T am a S ta te banks have worked very closely *Bank. He is a through the years and many custo graduate of Ells mers have accounts in both banks. worth CommuniNo change in bank personnel is anti ^ C fFalls, n e e and ‘3 J. JOHNSON cipated at this time. ^Iowa The acquisition agreement, which has been in banking business in has been approved by the boards of Tama since 1969. both banks, is subject to the appro val of regulatory authorities and the ^Changes Told in Rockwell stockholders of Gilbertville Savings The Community State Bank in Bank. Details of the agreement will Rockwell was acquired on October 1 be disclosed in a stock registration by W.A. Krause of Hampton; Rich statement scheduled for completion ard W. Galloway of Rockwell, and during the first quarter of 1986. ^Susan A. Gallagher of Hampton. Both Gilbertville Savings Bank Mr. Galloway assumed the presiden and The National Bank of Waterloo cy replacing Mary M. Gallagher who have solid records of consistent pro Pres. Named in Sidney https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The FDIC recently approved the assumption of the deposit liabilities of Auburn Savings Bank, Auburn, by Carroll County State Bank, Carroll. The failed bank’s only office was to reopen on November 12, 1985, as a branch of Carroll County State Bank and its depositors automati cally will become depositor of the assuming bank, subject to approval by the appropriate court. Auburn Savings Bank was closed on November 8, 1985, by Thomas H. Huston, Iowa superintendent of banking, and the FDIC was named receiver. Carroll County State Bank will assume about $6.8 million in 1,900 deposit accounts, and has agreed to pay the FDIC a purchase premium of $167,000. It also will purchase certain of the failed bank’s loans and other assets for $4.8 million. To fa cilitate the transaction, the FDIC will advance $ 1.8 million to the as suming bank and will retain assets of the failed bank with a book value of about $2.2 million. Total assets of the failed bank amounted to $7.0 million. Appointed in Dubuque David R. Dudley has recently been appointed second vice presi dent of Ameri can Trust and Savings Bank, Dubuque. Mr. Dudley will be respon sible for the bank’s agricul tural loan port folio th ro u g h both direct loans D. DUDLEY and participation loans with American Trust’s corres pondent bank customers. Prior to joining American Trust, he served as president of the Federal Land Bank Association of Manchester, Iowa. Northwestern Banker, December, 1985 48 Iowa News IBA Addition Told The Iowa Bankers Association, Des Moines, has recently added Dick Holthaus to the staff as the IBA’s new marketing direc tor. Mr. Holthaus is responsible for m anaging and d ire c tin g th e marketing func tions of product R. HOLTHAUS research, devel opment, pricing, promotion, adver tising, placement and public rela tions for both the IBA and affiliate corporations. He also works with the IBA marketing committee in planning and hosting the annual marketing conference. Prior to joining the IBA, Mr. Holthaus was employed by Mer chants N ational Bank, Cedar Rapids, heading up its marketing department from 1972 until 1982. He then went to American Federal in Des Moines, as vice president and marketing director. Mr. Holthaus brought national at tention to Merchants National Bank in 1980 when he created a 50% IRA promotion. He developed the strate gy and implemented the two day promotion which netted over 5,000 new accounts for the bank. He was also responsible for planning and ex ecuting the bank’s 100th year cele bration while at Merchants National and will be responsible for much of the IBA’s centennial activities dur ing 1986-87. Two Elected in Algona First Interstate Bank of Algona recently elected Terry Vaudt as vice president and cashier and Joyce Petersen as loan compliance officer. Mr. Vaudt previously served as vice president and manager of First Interstate Bank’s Bode office. He has been with the First Interstate Bank for ten years. Mrs. Petersen has previously served as a loan supervisor and has been employed by the bank for five years. Committed to making your bank stand apart from the Waterloo Bk. Appoints Three® Peoples Bank and Trust Company of Waterloo recently appointed Bruce S. Anderson as senior vice presi dent, Ronald J. Anderson as vice president of the lending division, and Douglas D. Boyce as trust officer. Mr. Anderson has been with B. ANDERSON the Peoples Bank since 1975. As senior vice president, he will be in charge of all operational areas of the bank, including opera tions, asset liability/management, personnel, and marketing. Mr. A n-# derson will retain his title and re sponsibilities as vice president of Peoples Bankshares, Ltd., the multi bank holding company that owns Peoples Bank and Trust. # R. ANDERSON D. BOYCE Ron Anderson joins Peoples Bank with eighteen years experience in the financial industry. He has pre-i vious lending experience, including being in charge of mobile home lend ing departments, lending sales, con sumer loans, and other lending func tions. Mr. Anderson will be respond sible for all loan activities at the Peoples Bank, and will serve as loan division head. Mr. Boyce joins Peoples Bank’s trust department after six years as a* consultant and accountant covering administration, insurance, invest ments, tax planning, and retirement plan administration for health care professionals in the Mason City* area. E.V.P. Added in Van Horne David Coulter has joined V an^ Horne Savings Bank as executivew vice president. His banking career includes serving as loan officer at the Hudson State Bank from 1981 to 1985 and working as a bank ex-^ aminer for the Iowa Department of Banking from 1978 to 1981. DigitizedNorthwestern for FRASERBanker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Many Of Your Bank D epositors Need H ealth Insurance You Could Be TheBankTo Introduce Them To The Protectors B eing “Just A B ank” I sn’ t Enough Iowa Bankers Insurance and Services, Inc. has developed a health insurance program for bank depositors. The name of this program is The Protectors. The program includes a compre hensive major medical plan and a Medicare supplement. Costs are com petitive with other individual and supplemental insurance programs on the market. Your participation in this program requires little or no investment of your time, personnel or capital. An IBIS representative will visit your bank on a regular schedule, explain The Protec tor plans to interested and eligible depositors, and enroll them. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa Bankers Insurance and Ser vices, Inc.’s affiliation with Iowa banks is a long-standing, dynamic relation ship. You know our integrity, the qual ity of our service. The Protector health insurance program is underwritten by Time Insurance Company of Milwaukee, Wisconsin. Time Insurance is con sistently rated A + “excellent” by the AM. Best Company, an insurance industry analyst. • The Protector health insurance pro gram provides your bank with a way to increase customer loyalty and revenues. • The Protector plans can attract new customers. • The Protector health insurance program enhances your image as a full-service bank. Let IBIS introduce you to The Protectors today! Call Chris Wehde at 515-286-4395 or W hy Participate In T he P rotector H ealth Insurance Program ? • The Protector plans provide your customers with quality, convenient and affordable health insurance. IOWA B A N K E R S IN SU R A N C E & SERVICES, INC. 104 EAST LOCUST DES MOINES, IOWA 50308 50 Iowa News MB Committees for 1985-1986 LIVER A. Hansen, chairman chairman of the membership com and president, Liberty Trust mittee and George H. Perry, presi and Savings Bank, Durant, has re dent, The City National Bank, She cently released the I IB Committees nandoah, will chair the program de for 1985-86. velopment committee. Mr. Hansen will serve as chair The PAC committees will be man of the administrative commit headed by Arnold Schultz, chairman tee. John Chrystal, president and and president, The Grundy National CEO, Bankers Trust Company, Des Bank, Grundy Center and James W. Moines, will serve as chairman of Lipton, president, Ida County State the legislative committee and W.D. Bank, Ida Grove. Larry Grimstad, Wilier executive vice president, De executive vice-president, Security corah State Bank, Decorah, will Bank and Trust Company, Decorah, serve as vice chairman. will serve as chairman of the insur O. Jay Tomson, chairman andance study committee, while James president, Citizens National Bank, R. Brown, executive vice-president, Charles City, will chair the Task Hardin County Savings Bank, EldoForce on Bank Structure in Iowa ra, will serve as chairman for the committee and Robert P. Holleran, educational committee. Finally, Douglas McDermott will president, Clinton National Bank, Clinton, will chair the public rela serve as chairman of the bankers’ tions committee. bank study committee. Mr. McDer Larry Arendt, president, Gibson mott is president and trust officer, Savings Bank, Gibson, will serve as Home State Bank, Jefferson. O Recognized in Albia Addition in Council Bluffs Grace Buol and Robert Kaldenberg were named Woman of the Year and Boss of the Year, respec tively at the Albia Business and Professional Women’s annual meet ing Tuesday night. This is the third year the group has named a Woman of the Year and the second year they have named a Boss of the Year. Mrs. Buol is the former editor of the Albia NEWSpapers. She retired October 18, after nine years with the papers. Mr. Kaldenberg has worked at the First Iowa State Bank for 31 years, 17 of which have been as bank presi dent. He has also farmed and worked at the John Deere Ottumwa Works. Chris E. Fenimore has recently joined State Bank and Trust in Council Bluffs as an assistant vice president and trust officer. Prior to joining the bank, Mr. Fenimore served as a trust officer at Hawkeye Capital Bank and Trust in Des Moines for 13 months. Retires from Postville Bk. • W.A. Kneeland has announced his retirement from the Postville State Bank after 51 years of service with the bank. Mr. Kneeland served a ^ president of the bank from 1958 to 1978 when he was elected chairman of the board. During his 70 year banking career, Mr. Kneeland was active in many banking organiza-^ tions. He served as a member of the state banking board from 1961 to 1965 and was elected Group 4 chair man and treasurer of the Iowa Bank ers Association. Mr. Kneeland alsq^ was very active in the savings bond program, serving as regional chair man for many years. Six Named in Cedar Falls • Six new members have been elected to the board of Midway Bank & Trust, Cedar Falls. These members join the regular board members for a total of twelve d ire c t tors. The new members include: Joy Corning, state senator representing Cedar Falls; Rev. Homer Larsen, pastor of Nazareth Lutheran Church in Cedar Falls; Kenneth Lockard,® president of Lockard Construction, Inc.; Dr. James A. McCutcheon, dentist in Cedar Falls; Carol A. Reese, secretary-treasurer of Peter man & Haes, Inc., and William J.® Rickert, senior vice president of The National Bank of Waterloo. Eagle Grove Bk. Celebrates Homecoming Retires in Sac City Dale H. Ninneman, vice president and cashier of the Sac City State Bank has announced his plans to re tire at the end of this year. Mr. Nin neman has been employed by Sac City State for all 38 years of his banking career. He joined the bank in 1947 following his military dis charge at the close of World War II. He has held various positions with the bank, and was promoted to vice president and cashier in 1967. Northwestern Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Savings Bank, Eagle Grove, helped celebrate Homecoming 1985 by giving SECURITY helium-filled balloons to children as well as decorating floats with them. This a ll£ seemed pretty mundane until the bank received a letter, addressed to Security Savings Bank, with balloon fragments enclosed and opening with the salutation, “ Dear Bankers.” The letter said: “ We would like to inform you that today we found these balloons in a hay field behind our home. The strings were all tangled together and the red balloon was still in flated. We were wondering if this was part of a business promotion and if they were really released at the location printed on the balloon? We live about seven miles north of M e n o 0 minee, Michigan.” The letter was signed by a family whose rural address is Menominee, Michigan and was posted in Green Bay, Wisconsin. Just this once, w e ’re going to blow our own horn. We’ve been selected as the Remodeling Designer o f the Year by Commercial Remodeling magazine. IVot just the best in Iowa . . . or the Midwest. Kirk Gross was selected the best in the nation. We specialize in new construction and remodeling of Financial Institutions. Contact us today and let us design a winner for vou. 4015 Alexandra Drive Waterloo, Iowa 50704 319-234-6641 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 Iowa News 1985 OUTSTANDING ACHieV€M€NTAWARD competition is designed to increase public awareness of locally-owned banks’ contributions to the commu nity. Farmers State Bank in Marioijp will judge the local entries to select its own $100 winner. AS A BUSINESS AWARDED TO TH6 NATIONAL BANK OF WATERLOO for itj demonstrated commitment to dtyLoprrwt of the artj in, Northcajt Iowa, through, it) actu«. corttritutwricfmem 'tune antttalM to thial/e nuyLC and VLjlWtflltj P'tiuual liu jtmtii ¡aurdn. tia/aijtpuimxr- waim hiuuhtuagktfi*. National Bank Waterloo Wins Arts Support Achievement Award ORE recognition has been M given to the National Bank of Waterloo for its unique and extensive support of Iowa artisits. The most recent is the 1985 Outstanding Achieve ment Award for Business/Corporate Support for the Arts, sponsored by the Iowa Arts Council with support from the Meredith Corporation, head quartered in Des Moines. As noted in earlier issues, the National Bank of Waterloo has undertaken in recent years vigorous support of Iowa art ists and has their work—paint ings in all forms, sculptures and other art forms—distri buted in offices, lobbies, meet ing rooms and public areas throughout every floor of the bank. The bank maintains an extensive filing system on each art piece and frequently fol lows up on the progress of the various artists, who are from all over the Hawkeye state. So that other Iowans may benefit also from NBW’s ex tensive art collection, the bank’s correspondent bank di vision currently is sponsoring a portable display of selected pieces of its art at various com munity banks in northeast Iowa. The exhibit has been solidly booked ahead since the program started a few months ago. NBW personnel trans port, set up, repackage and ship the exhibit to the next bank that has reserved the ex hibit. Joanne Fetner, whose hus band, Scott Fetner, is presi dent of National Bank of Waterloo, is chairman of the bank’s Art Acquisition Com mittee and is one of six persons named recently to the Iowa Arts Council board by Iowa Governor Terry Branstad. is offered by the Independent Bank ers Association of America, consist ing of a first prize of $2,500, second Farmers State Bank of Marion prize of $1,500 and third prize of has announced to Linn County high $1,000. The latter prizes will be school seniors the annual senior es awarded during the IBAA 1986 an say contest through which they nual convention at Las Vegas next have the opportunity to win the March 9-13. The competition is $ 100.00 cash prize offered by the named the Howard and Katherine bank, as well as to be entered in the Bell Scholarship Fund, in honor of national $5,000 scholarship fund Howard Bell, who retired in recent years as IBAA executive director, competition. The national competition money and his wife, Katherine. The essay Marion Bank Sponsors High School Essay Contest DigitizedNorthwestern for FRASER Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Addition in Waverly ^ Kent A. Hall has joined the staff of The First National Bank of Waverly as assistant vice president. Mr. Hall started his banking ca reer in 1977 at The First State Banl# of Manly, Hanlontown office, of which his father was president. While a student at Waldorf College, he was employed by the Forest City Bank & Trust Company as a trainee# In 1981, he joined the staff of Norwest Bank, Atlantic, as assistant cashier and loan officer, and then transferred to Norwest Bank, Mason City, where he continued as 2# lending officer in agriculture, com mercial, real estate and consumer loans. Early Bank Assumed Iowa’s 10th bank failure of 1985 occurred November 1 when the s ta t^ banking department closed the Ear ly Savings Bank due to insolvency caused by a string of ag loans gone sour. The FDIC, as receiver, sold the deposits of $ 11.8 million and certaim assets to Citizens First Nationar Bank of Storm Lake for the high bid of $10,001. FDIC paid in $3.8 mil lion cash to complete the transac tion. ^ The new institution will be op erated as the Early branch of Citi zens First National and located in the same offices as the failed Early Savings Bank. £ Early (Sac County) is 17 miles directly south on Hwy. 71 from Storm Lake (Buena Vista County). Last year-end Early Savings had as sets of $12,919,000, loans op $8,257,000, and capital accounts of $1,267,000. The Citizens First National Bank of Storm Lake assumed about $11.8 million in 2,700 deposit accounts, ir^ eluding $58,000 in two accounts in excess of the federal insurance limit of $100,000. To facilitate the trans action, the FDIC advanced $3.8 mil lion to the assuming bank and re^ tained assets of the failed bank with a book value of about $4.6 million. Iowa News ABOVE—Paul Quam, agriculture chrmn. and v.p., Hayesville Sav ings Bank, Hayesville; Howard Beerman, Heinold Commodities, Inc., Chicago; Arthur Davis, Davis, Hockenberg, Wine, Brown and 0Koehn, Des Moines; and Leslie Miller, ag loan officer, Davis Coun ty Savings Bank, Bloomfield, began Monday morning’s general session. 53 ABOVE—Gilbert Stanek, farmer/bank director, Fort Dodge; Neal Conover, chrmn., First National Bank, Creston; and Don Hofstrand, area farm mgmt. specialist, Mason City, discussed how to “Provide Marketing Education to Bank Customers.” •Ag Marketing Conference Receives Enthusiastic Response ® By CARLA LUKENBILL Associate Editor i i Q UCCESSFUL Marketing: I t’s W Impact on Ag Lending Deci s i o n s ” was the theme for the Ag Marketing Conference, October 28 and 29, at the Gateway Center in Ames. This conference, sponsored by the Iowa Bankers Association, ^was a result of the numerous re quests by ag lenders for increased education on the various ag market ing tools available to them at this critical time. ^ Leslie Miller, ag loan officer, Davis County Savings Bank, Bloomfield, presided as conference chairman for the two-day event. Arthur Davis, senior partner of ^th e Davis law firm in Des Moines, began Monday’s general session with a presentation entitled, “The Legal Ramifications of Providing Marketing Advice.” • Mr. Davis discussed the word “partners,” used to describe the rela tionship between borrower and lender or, in this case, farmer and banker. Today, however, he feels #this word is no longer in existence and seems dangerous. “We are see ing more lawsuits filed by desperate farmers who are losing their farms to lenders and thus having the ten•dency to blame the lender rather than saying it is my fault,” he added. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “So why get involved in the sub ject of farming with borrowers?” he asked. The reason is simple. Bank ers need to know about farming be cause it is good for their business and without this knowledge the bor rowers will take their business else where. Mr. Davis cites four courses of ac tion for bankers to take in order to protect themselves from a lawsuit or lending problems: 1. Do not give marketing advice; therefore, no one can come back on you or try to sue you. 2. Give marketing advice but charge a fee for it. The banker will need to check regulatory require ments in order to charge a fee, though. 3. Continue giving advice but disclaim or have an agreement about the advice which says that the borrower can’t rely on the bank from a liability standpoint. Most custo mers will sign this sort of an agree ment and it is considered better than charging a fee, which implies that the bank considers itself an expert. 4. Take defensive notes. This is the best way to keep record of what you advise a borrower and, by having the borrower sign a disclaimer state ment, you then have a written re cord of your discussion. This, how ever, can be a mixed blessing if the banker did give some poor advice, as the farmer also has a written record. Mr. Davis concluded by warning bankers that not every borrower will be honest and, therefore, it is essen tial to be conservative, take notes and have all notes signed. Howard Beermann, director of the agricultural hedging and commer cial services division of Heinold Commodities Inc., Chicago, followed Mr. Davis, with his presentation en titled, “ Introducing B rokerageDoes a Bank Need to Offer It?” Mr. Beermann broke this subject into two questions: “Should banks offer a farm marketing service?” and “Should banks become an intro ducing broker?” He said the bank gains several benefits by responding positively to the two questions. Some of the bene fits include: attracting new custo mers, generating fee income from market planning, providing colla teral value protection, offering pro fessional hedging strategies, offer ing complete marketing plans utiliz ing both cash markets and futures markets, providing proper education in complete marketing, providing loans for legitimate hedge margin re quirements and providing a closer working relationship with the custo mer. Mr. Beermann said several risks, however, also are involved with of fering these services. First, when of fering advice in marketing, the ques tion arises—should you dictate at what price, what quantity and by what means to forward price? Mr. Northwestern Banker, December, 1985 54 Iowa News ABOVE— Richard Brock led bankers through numerous marketing strategies that can benefit a bank’s decision-making process. Beermann said the best suggestion is to counsel, not advise, unless it di rectly affects loan repayment. He suggests helping the farmer deter mine what a given price means to him in total dollars of cash flow, loan repayment, profit and net worth. “Allow choices for the farmer: offer futures, options or cash contracts, use a structured plan or traditional hedge, as well as helping the farmer determine a forward pricing policy,” he added. Mr. Beermann felt a second risk involved lawsuits from customers who sold, perhaps at the bank’s urg ing, at a reasonable price but later the price went higher. The banker needs to ask several questions of the farmer such as: “What percentage did he sell?” “What was his original objective?” “Was it to sell at top?” “Did he have a plan?” “Did he fol low the plan?” “Was the hedge pro fitable to the enterprise?” Mr. Beermann went on to say pro fessional marketing is not “trying to beat the market, making a profit on the futures, or becoming a trader or speculator in the futures.” He suggests helping the customer for ward the price market properly with a plan, but not speculate in the mar ket and then call it hedging. “Help the customer become a risk-man ager,” he added. A third risk is that there is no for ward pricing by the borrower. Mr. Beermann stated, “If the price is high at sale time, everyone is happy.” “If the price is low, the bank’s risk of loss is high,” he added. Mr. Beermann said the final risk involves the poor image of the com modity broker. Therefore, he sug https://fraser.stlouisfed.org Banker, December, 1985 FederalNorthwestern Reserve Bank of St. Louis gests operating as a marketing ser vice, not just a commodity broker age, and naming the new service: “Marketing Center,” “One Stop Fi nancial Service” or “Complete Fi nancial and Marketing Service.” Mr. Beermann concluded by ex plaining how a broker may be intro duced into an organizational struc ture and the mechanics of the intro ducing broker or marketing services firm. The other morning speakers were Ron Mortensen, president, and Sue Mortensen, vice president, Advan tage Agriculture Strategies, Fort Dodge. Their presentation focused on “Using Options as Price Insur ance.” Ms. Mortensen began by de fining an option as an agreement be tween two parties granting the pur chasing party the right, but not the obligation, to buy or sell the under lying commodity under specific con ditions in exchange for the repay ment of a premium. She said there are two kinds of options: 1. Put—by buying a put the party has the right to assume a short futures position. This protects the party from prices going down and if futures price goes down, the put will increase in value. 2. Call—by buying a call the party has the right to assume a long fu tures position. A call also protects the prices from going up and if fu tures price goes up, the call will in crease in value. Ms. Mortensen said there are sev eral reasons to consider buying op tions: 1. An option establishes a floor price or a ceiling price, while not actually making a sale. 2. There is no loss beyond the initial premium which is the most one can lose. 3. There are no margin calls. 4. Deli very is not required, unlike a for ward contract with an elevator. 5. There is less emotion present due t o f the flexibility. M onday’s afternoon session began by a telephone conversation with Rusty Jesser, ABA federal leg islative representative in Washing-0 ton, D.C. A panel discussion entitled, “Pro viding Marketing Education to Bank Customers,” followed Mr. Jesser’s conversation. Members of the® panel included Gilbert Stanek, farmer/bank director, Fort Dodge; Neal Conover, chairman, First National Bank, Creston, and Don Hofstrand, area farm management specialist,® Mason City. Gilbert Stanek began by stating that over one-half of the people who need marketing education do not re-^ ceive it. “This number includes® bankers themselves,” he added. He said bankers need to focus on two things: 1. Stressing the market alternatives. 2. Working with th e ^ farmer and his wife. Mr. Stanek said when the bank develops marketing strategies with the farmers three things need to be considered: £ 1. Discipline—“You have to have a marketing plan in writing that says exactly what the farmer is going to sell.” 2. Offensive strategy—in which^ the farmer capitalizes on any addi tional products and, if obvious change is needed, allows him to ad just. 3. Defensive strategy—in which^ the farmer must limit his potential. If the farmer’s plan won’t work you may have to come down, he added. Mr. Stanek concluded by saying bankers must make a marketing^ plan a condition of the loan, develop a master role note and constantly check recordkeeping so there is an account of where the farmer is spending his money. # Neal Conover said there are two different types of farms: self-suffici ent and manufacturing. He said farmers are trying to be manufactur ing farmers with a self-sufficient# mindset and bankers are lending to them. Mr. Conover said farmers need to know their production skills, asset utilization, efficiency measures,® marketing ability and cost contain ment comparison. “We need to get down to the real Iowa News tlsues and educate on a broader sense,” he concluded. Don Hof strand concluded the panel discussion by saying the dif ference between good marketing vs. £ad marketing is the difference be tween profit vs. loss. He said there are several don’ts in marketing education such as: 1. Don’t have just a price outlook meeting for farmers, as you can’t guarantee it is right. 2. Don’t use a general approach with charting as it only shows partial answers. 3. Don’t teach just the mechanics of hedging out rather how to deal with hedging in a marketing plan. Mr. Hofstrand said a good mar keting program should include a government program, financial needs, price environment, seasonal trends, and futures and options mar ket. He added that the banker and firmer have to be willing and able to monitor and adjust the marketing plan. As Mr. Hofstrand said, “ It is best to market when you can get a single run rather than thinking you ^w ays need a homerun because, if you will recall, the person with all the homeruns also has the record for the number of strikeouts.” Ann Jorgensen, consultant, Farm j^ome Office, Garrison, followed the panel discussion with her view of “When to Use a Marketing Ser vice.” Because modern farming requires ^ t t e r marketing and financial man agement skills, Ms. Jorgensen and two partners started Farm Home Offices as a way to provide farmers with products designed for use in Hieir offices such as recordkeeping worksheets. Ms. Jorgensen feels the reasons farmers aren’t following cash flow and marketing plans is because just Earning the mechanics of a market ing plan is not enough. Ms. Jorgen sen said it takes time, practice, and a demonstration-type approach where the borrower can walk #irough examples using actual num bers with the lender. She concluded that the majority of farmers are a long way from using a marketing service because they do ®ot have their records in order. Ms. Jorgensen adds that farmers need to concentrate on good information, historical data and the interrelation ship between production and mar keting to be successful. Dave Anderson, president, Rec https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Check, Nevada, addressed bankers next on “The Pros and Cons of Re cordkeeping Systems.” Mr. Anderson felt there are sev eral advantages of recordkeeping sys tems such as tailoring each indivi dual borrower’s operation, offering personalized income and expense re ports, and offering complete cash flows, financial statement and de tailed loan documentation and analysis for agricultural operators. Mr. Anderson said when offering a recordkeeping system bankers need to base it on having solid credit information, accurate records, main tenance, customers filling out the in formation themselves since they know the operations best, standar dized information coming in through the use of forms, total support main tained for the system from top man agement on down, and continuing education for all employees and bor rowers on the system. Mr. Anderson concluded with a show of hands as to how many bank ers were currently using the RecCheck system. Approximately onehalf of the bankers in attendance raised their hands. Monday’s general session con cluded with “Proven Marketing Success Stories,” which featured a bank panel including: Paul Quam, senior vice president, Hayesville Savings Bank, Jeffrey Graves, as sistant vice president, Liberty Trust and Savings Bank, Durant, and Roger Engelkes, executive vice president, The Grundy National Bank, Grundy Center. Tuesday’s general session was led by Richard Brock, president, Brock Associates, Milwaukee, Wisconsin. Mr. Brock said the banker has five roles in farm marketing: 1. Be ing torn between doing nothing, being an advisor or a dictator. 2. Having a thorough understanding of the market. 3. Educating clients about what they can expect in the market. 4. Working with the client as a partner not an adversary. 5. Making sure all parties understand the game plan and are adequately financed. Mr. Brock explained that in order to have an effective marketing plan one must set realistic goals and write them down. When making goals, he added, avoid making deci sions based on greed, wishful think ing, fear and ego, as 95% of all mar keting problems are due to emo 55 tions. He felt that a balance sheet approach was the most effective way to organize information. Mr. Brock also explained three ap proaches to developing a price out look: 1. Fundamental—essential to de termine a general idea of the esti mated value of a product. 2. Technical—essential for timing sales and purchases. 3. Behaviorial—do the opposite of the crowd. Mr. Brock concluded the morning by going through ten easy steps for dealing with grain and livestock case studies. Tuesday’s afternoon session fea tured a loan documentation and bankruptcy workshop led by Tom Flynn, an attorney with Wimer, Hudson, Flynn and Neugent, Des Moines, and Frank Pechacek, an at torney with Smith, Peterson, Beck man and Willson, Council Bluffs. The workshop provided lenders with the opportunity to ask ques tions on such topics as foreclosures, bankruptcy workout procedures, se curity agreements and loan docu mentation. □ No Parachute That’s how most companies release or retire employees. Soften the blow. Give your employees outplacement services and career consulting from DEEMS ASSOCIATES 2330 Lincoln Way Ames, Iowa 50010 515/292-0404 Northwestern Banker, December, 1985 commodations, etc., contact th # IBA office in Des Moines. * * * J. Locke Macomber, chairman o£ Valley National Bank, has announced th a t Janette Hender son has been elected vice pres ident in the lend ing division. Ms. Henderson joined Valley Na tional Bank in 1979 and most re c e n tly was J. HENDERSON a ss is ta n t vice p re s id e n t in the lending divisi * * * The Iowa Bankers Association is tact Dick Holthaus at the IBA office once again sponsoring the annual in Des Moines. * * * Best of Iowa Bank Marketing com petition. Marketing programs com The Iowa Bankers Association’s pleted by Dec. 31, 1985 are eligible to compete in one of three categor Mid-Winter Management Confer ies: products and services, institu ence, “Reaching New Heights in tional (name changes, openings, etc.) Vail,” will be held Feb. 26-28, 1986 and community relations. Advertis in Vail, Colorado. Evening meetings ing awards will be made in eight will be held each day, with a welcome categories. Banks are judged in reception on the 26th, and cockgroups based on asset size. Entries tails/dinner on the 27th and 28th. must be made by Dec. 31, 1985. Days are free for skiing, shopping Winners will be announced at the and other recreation. Registration IBA Marketing Conference sche fees are $130 for members, $175 for duled for March 23-25, 1986. For subscribers and $260 for nonmem more information or to enter, con- bers. For more information about ac- The Iowa Bankers Association is sponsoring the Iowa Commercial Lending School Feb. 2-8, 1986 Iowa State University in Ames. Tui tion is $700, which includes room, meals, casebook and study mater ials. The purpose of the school is to prepare entry-level, exempt an# mid-level commercial bank officers to serve effectively and profitably the needs and desires of the Ameri can public and American business. For more information about enrol# ment qualifications and curriculum, contact the IBA office in Des Moines. * KING MANAGEMENT COMPANY Farm Management Division King M anagement Company offers professional, client-oriented, farm management and counseling service free from any fundamental conflict o f interest. Specialists in professional farm management, farm acquisition for investm ent, farm appraisals and consultation. James C. King Raymond A. Schneider • Michael W. Murrane 816 Equitable Bldg. • Des Moines, IA 50309 515-282-3100 Members of American Society of Farm Managers and Rural Appraisers and Farm & Land Institute Digitized Northwestern for FRASER Banker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * Robert G. Millen, president a n ? chief executive officer of First Inter state Bank of Des Moines, has announced the appointment of Margaret Hoogerheide as trust officer. She will be responsible for the develop ment of new per sonal trust rela tionships. Ms. M. HOOGERHEIDE Hoogerheide was previously a ssi# tant vice president and trust officer at Bankers Trust in Des Moines. Elected in Evansdale Kathleen J. Brown has recentl^ been elected operations officer of First Security State Bank, Evans dale. Ms. Brown will be assisting with the operations of the bank’s Waterloo office and the accounting functions of the Evansdale office. Iowa News 57 •Retires in Cedar Rapids Jack Parmenter, senior vice presi dent and cashier, First Trust and Savings Bank, f^ e d a r Rapids, w ill retire January 1, 1986. Mr. Parmen ter joined the entral National ank of Des Moines in 1948 serving in all areas of bank J. PARMENTER operations. He is credited for installing the first bank computer system in Iowa including an E.F.T. system between Central National and Home State Bank, Jef ferso n . Mr. Parmenter was elected assistant cashier at that time and served in the computer department until 1965. In 1965, he was elected vice presi d e n t of Farmers State Bank of Marion, Iowa, and was promoted to vice president and cashier in 1966. In 1980, Mr. Parmenter was elected to his most recent position at •F irst Trust and Savings Bank, Cedar Rapids. IN TWO YEARS, WE’VE DOUBLED THE NUMBER OF OUR CORRESPONDENT BANKING CUSTOMERS. Why? Because of our professional service and attention to your needs. Call Mark Christen or Peter De Rosier toll free...and find out how correspondent banking should work. Officer in Dubuque Dubuque Bank and Trust Com pany announced the appointment of Steven J. Krog... .... ieier as ag lend I | ing officer. Mr. Krogmeier joined th e D u b u q u e Bank and Trust n July of this year, after pre viously working for the Eastern Iowa Production C re d it AssociaS' KR0QMEIER tion as a senior loan officer. Mr. Krogmeier is a graduate of Iowa State University with a degree in agricultural education. I Director Elected in Manly John J. Gallagher was recently Elected a director of First State Bank, Manly, filling the vacancy created by the retirement of Robert W. Peterson. Mr. Gallagher has ^>een employed by the bank for the past four years and currently serves as vice president and cashier. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mark Christen H. Peter De Rosier Vice President Vice President There’s Nothing Like Money in the Bank... The Valley Bank Valley National Bank ili D E S M O IN E S IO W A 5 0 3 0 4 M e m b e r F D IC A B A N K S O F IO W A B A N K Call TOLL FREE (800) 622-7262 In Iowa. Northwestern Banker, December, 1985 58 Iowa News Alan Tubbs Honored by ABA A GIFT was presented to Alan and Myma Tubbs (left) by Kenneth W. Lee (at mike), of ABA. Editor's Note: Alan R. Tubbs, president, First Central State Bank, DeWitt, la., was given special recognition at the 1985 Na tional Agricultural Bankers Conference conducted last month in Dallas, Tex., by the American Bankers Association. Part of that recognition came when Kenneth W. Lee, associate director of ABA's Corporate Financial Services Group, presented a gift to A l and his wife, Myma, pictured above. Al's parents, Edward L. Tubbs, chairman of Maquoketa State Bank, and Grace, were in the audience to witness the honor accorded their son. Many Iowa bankers already know of the outstanding service A l Tubbs has given to them through serving as 1984-85 chairman of the ABA A g Bankers Division and many other assignments, but for those who may not be aware of Al's unceasing efforts on behalf of Iowa bankers and farmers, we want to share the text of Mr. Lee's tribute as he presented the gift to A l Tubbs: “ Three years ago, I attended my first Agricultural Bankers Conference in Chicago, Il linois. Since then, I have had the pleasure of work ing with many dedicated bankers determined to ac complish results for the benefit of the industry. “No one has been more sincere in their effort than has Alan Tubbs. Early in our relationship, Al and I made an agreement. Essentially, that agreement was ‘We will inform you of all activities in which we would like your involvement and it’s up to you to let us know if we are asking too much.’ To this day, I cannot recall Al having declined a single request that we have made of him. “During the four years Al has served on the Officer Added in Goldfield Security Savings Bank has re cently named Galen Jennings as loan officer for the Goldfield office. Mr. Jennings has been manager of the Boxholm office of Boone State Bank and will bring 10 years of lend ing experience to the bank. The hiring of Mr. Jennings as an additional loan officer for Security’s Goldfield office represents an expan sion for the office that has been needed due to the additional work load as a result of the merger of the former Goldfield State Bank and Se DigitizedNorthwestern for FRASERBanker, December, 1985 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Agricultural Bankers Division Executive Commit tee, he has assisted us in meetings with officials of the Department of Agriculture—including an ad visory committee to Secretary Block. He has met and discussed agricultural banking with industry leaders, instructed foreign bankers, presented numerous testimony before Congress, met with President Reagan, appeared in ABA adver tisements for national TV programs, conducted private briefings for members of Congress, traveled to other countries speaking in behalf of the industry, instructed at ABA and State Banking Association Schools, served on the ABA Government Relations Council and served in the ultimate capacity as chair man of your Agricultural Bankers Division (1984-85). “Wherein, the industry has been a winner because of Al’s efforts, someone has had to lose. I regret to say that all too often Al’s family was the loser. Al approaches his responsibilities as a husband, father and community member with an even greater degree of sincerity than that with which he has ap proached his professional career. But, because of his major involvement in ABA and Agricultural Bank ing, there were times when Myrna, his beautiful and understanding wife, did not receive the attention she deserved; and there were times when Al’s athletically inclined sons did not have the comfort of knowing that their father was in the stands or on the sidelines during some of those critical games and special events. (By the way, Myrna really knows how to feed growing boys — Brigham, their oldest son, a mere high school junior, is a strapping 6 feet 8 inches tall, and Abram, their youngest son, is a 6 feet 2 inch freshman! How many of you have University basketball coaches who would like for Myrna to be director of their athletics cafeteria?) “So, on behalf of the Agricultural Bankers Divi sion staff and fellow committeemen, I would like to present this gift to you, Al, for your willingness to serve and for the effort you have put forth on behalf of the industry; and to you, Myrna, for your pa tience and support of Al and for the times when you had to serve as both mom and dad; and also to Brig and Abe for sharing with us their dad during this important development period of their lives. “Please join me in demonstrating our apprecia- <*t tion to Al and his family.” curity Savings Bank 17 months ago. At Security, Mr. Jennings will be working most closely with the Gold field office, though he will also have some occassions to work in the Eagle Grove office. v Index of Advertisers DECEMBER, 1985 Am ericanDataTechnology, St. Paul............................23 BankersTrust Com pany, DesMoines..........................46 Central StatesHealth&LifeCo., Omaha.....................42 Deem sAssociates, Ames..........................................55 DroversBankofChicago...........................................8-9 First BankM lnneapolis/St. Paul. . ... .3 30-31 First InterstateBank, DesM oines . . .45 First National Bank, Lincoln....... First National Bank, Omaha....... G ross, KirkCom pany, W aterloo.. HBEFacilities, St. Louis ............................................6-7 Iow aBankersInsurance&Services, Inc........................49 K ingM anagem ent Co., DesMoines..............................56 LincolnBenefit Life.....................................................44 M BU, Inc......................................................................4-0 M arquetteBank, M inneapolis .....................................20 M erchantsNational Bank, Cedar Rapids.......................2 NorthCentral Com panies, St. Paul ..............................59 Norw est Corporation, Minneapolis..............................60 OfficeConcepts, Ltd., W aterloo....................................48 Sw ordsAssociates, Inc................................................^ TransActionSystem s, Inc.............................................10 ValleyNational Bank, DesMoines................................57 Compare For Yourself. How Does Your Current Credit Insurance Company Measure Up To North Central Life? What N orth Central Life Offers What N orth Central Life Offers What Your Company Offers Ef □ El L Ef u EÍ □ Ef □ Ef c u Ef □ Ef □ What Your Company Offers Fast, Computerized Claim Settlements era Home Office Customer Service Department Insurance Plans That Fit Virtually Every Loan Situation s in Simple, Automated Premium Reporting System s in Ef □ Computer-based Measurement and Control System to Help You Manage Your Business Special Programs for the Large Borrower Nation-wide Toll-free WATS Service Ein Instant, Over-the-phone Rate Calculations For Difficult Loans Personalized Training For Your Support Personnel Simplified Procedures Manuals For Administrative People Complimentary Sales Aids, Brochures and Point-Of-Purchase Materials Instant, Over-the-phone Underwriting approval for over-limit coverages Sales and Insurance Training Programs Designed for Bankers sin Free Analysis of Your Current Insurance Operations Incentive Plans to Help Increase your Productivity STD “Captive Company” Capability Professional, Experienced Account Field Representatives No Company, Anywhere in The United States, Can Give our Bank As Much Help in Running A Smooth, Profitable Credit Insurance Operation As North Central Life America’s #1 Credit Insurance Service Organization Protection all ways North Central Life Insurance Company NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET BOX 64139, ST. PAUL, MN 55164 In Minnesota call 800-792-1030 All other states 800-328-9117 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SOME OF TH E BEST FINANCIAL INSTITUTIONS IN AMERICA ARE RUNNMG FAT. We know, because we were one of them. But since we put our Profit Improvement Program into action in 1983, we have trimmed the fat in our operation and increased non-interest income by over 60%. Now we can help trim the fat for you. By examining your non-interest income and expense areas we can help cut the fat out of your operation — cutting your operating costs and improving income. Unlike other profit improvement programs, we also work together with your staff to help implement our program — in both unit and branch operations. So you can be assured of achieving your profit goals. To cut the fat out of your operation, contact your https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Norwest Client executive, or the Profit Improvement Program staff at 612/372-589 And put the fat on your bottom line where it belongs. Financial Institutions Group 317 Second Avenue South—Suite 400 Minneapolis, MN 55479 H K H lilf f f f NORWEST CORPORATION
@FedFRASER