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• The Bank
Federal Reserve Bank of St. Louis

Merchants national Ban

D ecernber ,


Dear B a n k e r s :
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Merchants National Bank ib i

Cedar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis

Member F.D.I.C.


Federal Reserve Bank of St. Louis


C.C. Hope Top Candidate
For FDIC Director Post

Nœ m «TERN





î x


DECEMBER 1985 • 92nd Year • No. 1467

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



Ag bankers meet in Dallas

See continued stress; hope land prices may bottom soon


EFT marketers must think retail

Thomas E. Sammon of NCR advises merchants’ mindset


The bank examination

James Shumaker of Kansas City gives FDIC perspective


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.


Bank Promotions
Twin Cities
South Dakota
North Dakota


Des Moines
Index of Advertisers

ABA Promotes Two

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
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.



Bank Promotions
ROMOTIONS and other an­
nouncements have been made
by the following banks and holding
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

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
Main Bank-Chicago office, 1965 North Milwaukee
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!


4900 OAK

Federal Reserve Bank of St. Louis



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
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
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
In the investment banking divi­
sion of UMB-KC, Robert W. Brickson and Stephen A. Robertson have
been promoted to assistant vice
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.
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.


Bank Facilities

Federal Reserve Bank of St. Louis


• 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,
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
Federal Reserve Bank of St. Louis

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
w ere
a p p ro x im a te ly
Installed in Mariucci Arena in
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.
Federal Reserve Bank of St. Louis


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.

Banker, December, 1985
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
products and
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
Consider the

Systems, Inc.
A Subsidiary of First Interstate Services Co.


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


ERIOUS problems will continue
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
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


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.

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
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

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.


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
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
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
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



EFT marketers
must think like
retail merchants
OR electronic funds transfer (EFT) to flourish at
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
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
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
Banker, December, 1985
Federal Reserve Bank of St. Louis

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


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
When you are talking POS, you are talking about re­
tailers’ life blood: how easy it is for a customer to buy
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
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
The cost of buying a PIN pad and card reader for
every terminal in a department store could be substan­
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
(Turn to page 35, please)
Northwestern Banker. December, 1985


The bank examination
— an FDIC perspective
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
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
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
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.
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.
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

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-

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.
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


“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

Banker, December, 1985
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
• 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
(Turn to page 35, please)


A Final Tribute to
Willis Alexander

1919— 1985


AST January we published in
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
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
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
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
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
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
“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.
tMarquette Bank
m m Minneapolis
Federal Reserve Bank of St. Louis


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
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
First Bank, St.
Paul, in the correspondent
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,
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.
four volumes cover consumer
W. Norman Swenson has been
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


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.





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

Banker, December, 1985
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
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
* * *
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
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.,
which is com-



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
They enjoy reliable reporting
and the prompt, personal attention
of their own ADT customer service
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
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.

■ \ yy I a
I/ \ I / \
' 1'
1----' '

Subsidiary of
American National Bank
of St. Paul

Largest processor of
independent banks in the
9th Federal Reserve District

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

Northwestern Banker, December, 1985

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
* * *
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,
M r. Leech,
who has 18 years
of experience in
the trust busi­
ness, has most |
recently served \
as president of
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
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
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
* * *
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
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
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
Banker, December, 1985
Federal Reserve Bank of St. Louis

surance broker relationship in the #
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



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.
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.
* *


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
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
M r. B ecker
began his bank­
ing career at
Norw est Cam-


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

Federal Reserve Bank of St. Louis

Bowers to the
position of in­
stallm ent loan
o ffice r.
Bowers joined
the bank in 1980
and has held a
variety of posi­
tions in the teller
area. She is cur­
rently an install­
ment loan repre­
* * *
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
Brian K. Smith
as commercial
banking officers
in the sales fi­
nance division.
Mr. Nyquist
joined Norwest



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.
* * *






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
Mr. Tengdin
joined the firm
in 1952 as a
Northwestern Banker, December, 1985


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.
M&I Western State Bank,
In this posi­
Oshkosh; Bryan K. Koontz, Wiscon­
tion, Mr. Han­
sin Bankers Association, Madison;
nah will oversee
Duaine Espegard, F irs t
all operations of
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
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
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.
# * *

Banker, December, 1985
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

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






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
The bank’s new identification sigw nals its participation in the nation­
wide First Interstate network.
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
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
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
other corporate legal matters includ­
ing liaison efforts with outside coun­
Promoted in Green Bay
Mr. Buri joined The Citizens
Barry James has been promoted
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
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


E. Dundee Road, Wheeling, 111. ®

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
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
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,
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
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
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,
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.
Federal Reserve Bank of St. Louis












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
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
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
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
Northwest Na­
tional from 1963
to April, 1985,
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
* * *

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
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


William Mullins
Vice President
Iowa Correspondent Services

(515) 245-7157
Federal Reserve Bank of St. Louis


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




Kenneth Malecha
Correspondent Banking Officer
(515) 245-7262

Eric Paul
(515) 245-7029
Locust at Sixth Avenue
Des Moines, Iowa 50309
Federal Reserve Bank of St. Louis

Member FDIC

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
Gronseth as vice
president. Mr.
Gronseth will be
responsible for
credit analysis,
loans, personnel
and purchasing.
He joins Dakota
State Bank after
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
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

Banker, December, 1985
Federal Reserve Bank of St. Louis

Two Named in Grand Forks

sponsibilities in the areas of corpo-#
rate financial analysis and strategic
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
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.

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,
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1985


R.B. Clark, pres., Greeley
D.A. Childears, exec. mgr., Denver

Colorado National Bankshares, Inc.
and the Colorado National Bank of
Will F. Nicholson, Jr., president
of Colorado National Bankshares,
Inc. was elected to the additional of­
fice of CEO of the company by the

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
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
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



Banker, December, 1985
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

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
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
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
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. ..
(Turn to page 36, please)

(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
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
Federal Reserve Bank of St. Louis


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.
(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

termination in undertaking the pro- •

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 £

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
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

(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
for FRASERBanker, December, 1985
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
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
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
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
firm, headquar­
tered in Denver.
Mr. Younge will have full P & L re­
sponsibility for the division, includ­
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’

$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
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

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
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



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

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.

Banker, December, 1985
Federal Reserve Bank of St. Louis


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

"Bankers Favor New Bank Tax Proposal

Four Banks Merge
in York County

HE Nebraska Bankers Associa­
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.
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
Northwestern Banker, December, 1985


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
Associate Publisher


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
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
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

Banker, December, 1985
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.
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
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
Federal Reserve Bank of St. Louis


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
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
• “A True Professional: The A tti­
• “The Gentle Art of Saying
• “Handling Conflict With Your
• “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
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
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.


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.
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


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 C A LL ........................... BRING MORE BUSINESS
Central States Health & Life Co. of Omaha
P.O. Box 34350 • Omaha, NE 68134-0350

Banker, December, 1985
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
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
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
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
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

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

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
of the Renwick office of the
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
president and cashier.
Federal Reserve Bank of St. Louis


Patrick H. Rensch

C. W. (Chuck) Poore, Jr.

Senior Vice President

Senior Vice President

A. William (Bill) Abts, Jr.

Wayne A. Rasmuss

Vice President


Micky Krupinsky


For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
ent Bankers • Underw
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

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





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
She had over 11 years experience
with installment loans with Have­
lock Bank, before joining a private
leasing company, and later, the

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

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-

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


Bank Programs for
Groupalndividual Life*Accident & Sickness



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

Banker, December, 1985
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- •

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
“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.


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
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1985


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.

Your Correspondent Business Bank
Des Moines, Iowa 50304
berFDIC,Federal R

Banker, December, 1985
Federal Reserve Bank of St. Louis

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
of service on January 1, 1986.
II United National Bank of Iowa,
was named chairman
Sidney, has announced the appoint­
was named vice
ment of Martin L. McCartney as
the bank. Rus­
president of the bank. Mike L. Keim,
and Charles
who formerly served as chairman
City were
^and president, will continue as chair­
named to the board, along with Mr.
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
cipated at this time.
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
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
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

Appointed in Dubuque
David R. Dudley has recently
been appointed second vice presi­
dent of Ameri­
can Trust and
Savings Bank,
Mr. Dudley
will be respon­
sible for the
bank’s agricul­
tural loan port­
folio th ro u g h
both direct loans
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,
Northwestern Banker, December, 1985


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
Mr. Holthaus
is responsible for
m anaging and
d ire c tin g th e
marketing func­
tions of product
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

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
Mr. Anderson
has been with
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.



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*

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.
for FRASERBanker, December, 1985
Federal Reserve Bank of St. Louis

Many Of
Your Bank
D epositors
H ealth
You Could Be
Them To The
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
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.
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 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
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.


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
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

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.
Banker, December, 1985
Federal Reserve Bank of St. Louis

Savings Bank, Eagle Grove, helped celebrate Homecoming 1985 by giving
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
Federal Reserve Bank of St. Louis


Iowa News



competition is designed to increase
public awareness of locally-owned
banks’ contributions to the commu­
Farmers State Bank in Marioijp
will judge the local entries to select
its own $100 winner.



for itj demonstrated commitment to dtyLoprrwt of the
artj in, Northcajt Iowa, through, it) actu«.
corttritutwricfmem 'tune antttalM to thial/e nuyLC and

P'tiuual liu
jtmtii ¡aurdn. tia/aijtpuimxr- waim hiuuhtuagktfi*.

National Bank Waterloo Wins
Arts Support Achievement Award
ORE recognition has been
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
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,
The national competition money and his wife, Katherine. The essay

Marion Bank Sponsors
High School Essay Contest

for FRASER Banker, December, 1985
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

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
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
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


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


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
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
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
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


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
Mr. Beermann said the final risk
involves the poor image of the com­
broker. Therefore, he sug­
Banker, December, 1985
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
The other morning speakers were
Ron Mortensen, president, and Sue
Mortensen, vice president, Advan­
tage Agriculture Strategies, Fort
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
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
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
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
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
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
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
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
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


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
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

No Parachute
That’s how most companies
release or retire employees.
Soften the blow.
Give your employees
outplacement services and
career consulting from

2330 Lincoln Way
Ames, Iowa 50010
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.
joined Valley Na­
tional Bank in
1979 and most
re c e n tly was
a ss is ta n t vice
p re s id e n t
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

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

James C. King
Raymond A. Schneider • Michael W. Murrane
816 Equitable Bldg. • Des Moines, IA 50309
Members of American Society of Farm Managers and
Rural Appraisers and Farm & Land Institute

Digitized Northwestern
for FRASER Banker, December, 1985
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


•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
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.

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.


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.
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

IO W A 5 0 3 0 4

M e m b e r F D IC


(800) 622-7262 In Iowa.
Northwestern Banker, December, 1985


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
for FRASERBanker, December, 1985
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
“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.


Index of

ericanDataTechnology, St. Paul............................23
BankersTrust Com
pany, DesMoines..........................46
Central StatesHealth&LifeCo., Omaha.....................42

sAssociates, Ames..........................................55
First BankM
lnneapolis/St. Paul. .
... .3
First InterstateBank, DesM
. . .45
First National Bank, Lincoln.......
First National Bank, Omaha.......
ross, KirkCom
pany, W
HBEFacilities, St. Louis ............................................6-7
aBankersInsurance&Services, Inc........................49
ent Co., DesMoines..............................56
LincolnBenefit Life.....................................................44
BU, Inc......................................................................4-0
arquetteBank, M
inneapolis .....................................20
erchantsNational Bank, Cedar Rapids.......................2
NorthCentral Com
panies, St. Paul ..............................59
est Corporation, Minneapolis..............................60
OfficeConcepts, Ltd., W
ordsAssociates, Inc................................................^
s, Inc.............................................10
ValleyNational Bank, DesMoines................................57

Compare For Yourself.
How Does Your Current
Credit Insurance Company
Measure Up To
North Central Life?
N orth Central
Life Offers

N orth Central
Life Offers

What Your

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Fast, Computerized Claim


Home Office Customer Service

Insurance Plans That Fit Virtually
Every Loan Situation

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Simple, Automated Premium
Reporting System

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Computer-based Measurement and
Control System to Help You Manage
Your Business

Special Programs for the Large
Nation-wide Toll-free WATS Service


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

Instant, Over-the-phone
Underwriting approval for over-limit
Sales and Insurance Training
Programs Designed for Bankers


Free Analysis of Your Current
Insurance Operations

Incentive Plans to Help Increase
your Productivity


“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

In Minnesota call 800-792-1030
All other states 800-328-9117
Federal Reserve Bank of St. Louis


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
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


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