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om Tombstones to TV Spots— A History of Bank Promotion https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Program Prepares Students for Ag —interview he holiday season is a time of warmth and good feelings. A time of optimism that happiness and prosperity will prevail. A time when day to day problems seem trivial compared to the gifts of family, friendship and love. We at Merchants National Bank hold this positive outlook the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis year round. With our experienced banking professionals, financial assets of over $660 million and a strong belief in the people of Eastern Iowa, we look forward to more great accomplishments in the future. Sleep well. The New Year holds m any exciting things. 3 f yo u ’re looking for a growth opportunity, consider the highest quality advanced bank management education recognize the critical need to balance theory and practice. GSB students have many opportunities to exchange ideas with faculty outside the classroom. available. The Program The Graduate School of Banking presents a challenging The Students educational experience exploring contemporary banking issues GSB students benefit from living and studying with more than and bank management practices. An ongoing evaluation of the 1,000 of their contemporaries. The acquaintances made pro curriculum by senior banking and academic advisors ensures vide a resource and a nationwide network that prove in up-to-date, state-of-the-art course material. Each level of the valuable throughout a graduate’s career. Many of the more GSB program employs microcomputer applications; the than 14,000 bank officers who have completed the program capstone of the three-year educational experience is a com now occupy senior level positions in banks across the nation. prehensive computer-assisted bank-management simulation. To enroll in the 1987 GSB session, call (608)256-7021 or return the coupon below to: Registrar, Graduate School of The GSB faculty consists of nationally-known industry ex Bankinq, 122 West Washington Avenue, Madison, Wisconsin, perts, distinguished academics and practicing bankers, who 53703. □ Yes! □ Yes! Have a GSB representative phone to register me for the 1987 session. Send me a brochure and application for the 1987 session. N a m e _____________________________________________ Title ______________________________________________ B a n k ______________________________________________ Presented by the Central States Conference of Bankers Associations and the University of Wisconsin-Madison. ©1986 GSB. All rights reserved. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A d d re s s ___________________________________________ City, State, Z ip ____________________________________ Area Code/Telephone Northwestern Banker, December, 1986 4 Farmers Mutual Hail Elects New President NORTHWESTERN DECEMBER 1986 • 93rd Year • No. 1479 Perry Rutledge has been named president of Farmers Mutual Hail Insurance Company of Iowa by direc tors at their recent board meeting a t # headquarters in Des Moines. He suc ceeds David A. Rutledge, who had served as president since 1980. MEMBER OF AUDIT BUREAU OF CIRCULATIONS MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER Officers of the American Bankers Association for 1986-87 are pictured on the cover following the election at the annual convention in San Francisco October 28. They are identified in the complete story with pictures that starts on page 13. D. RUTLEDGE FEATURES 13 Mark Olson heads ABA Minnesota banker succeeds Florida’s Don Senterfitt 16 “Tombstones” to TV spots A history of bank promotion ideas 18 B. RUTLEDGE Ag banking careers Community college program prepares students 21 ABA National Ag Conference Exclusive report details role of politics in agriculture DEPARTMENTS 25 27 28 30 33 34 35 35 Illinois Wisconsin Minnesota Twin Cities South Dakota North Dakota Montana Wyoming 36 39 40 42 47 54 58 Colorado Nebraska Omaha Nebraska NIBA Convention Report Iowa Des Moines Index of Advertisers NORTHWESTERN BANKER 1535 Linden Street, Suite 201, Des Moines, Iowa 50309 Publisher & Editor Associate Publisher Ben Haller, Jr. Robert Cronin Phone (515) 244-8163 Associate Editors Melinda Sauers Diane Nelson No. 1479 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription $2.00 per copy. $24 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, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Perry Rutledge started with Farmers Mutual Hail Insurance Company in 1952, was elected to the board in 1963 and vice president and* secretary in 1976. David Rutledge joined Farmers Mutual Hail in 1941, was named a director in 1963 and served as vice president of claims from 1975 until* his election as president in 1980. In other action, G.W. (Bill) Drey has been promoted to senior vice president in charge of the company’s crop hail department. Bill Rutledge* has been named secretary of the company and will continue his du ties as assistant vice president in the reinsurance department. Steve Rutledge, who works in the reinsur ance department, has been elected to the board to fill the vacancy created by the retirement of David Rut ledge. Walt Jones, who has been with the company since 1972, has been named manager of the research and development department. Mr. Drey has been with the com pany since 1948, serving as assis-( tant vice president in charge of re search and development since 1981 and a member of the board of direc tors since 1983. Bill Rutledge started with FMH in 1961 and became a director in 1977. W hos the ATM network leader? The Plus System* network lets its numbers do the talking. Do 65 million Plus System" cardholders and eight million Plus System" transactions a year tell you something about national market dominance? They should. Because the Plus System" network has tens of millions more cardholders and processes hundreds of thousands more transactions every year than any other nationally shared ATM network. It’s no secret why the Plus System" network is the choice of consumers when it comes to obtaining cash https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis throughout the United States, Canada, Great Britain and Japan. At the Plus System® network, the philosophy has always been to offer customers unequaled reliability. And to offer customers uncompromis ing security that ensures the confidentiality of every transaction. So when a cardholder requests cash from a conve niently located Plus System® ATM, he or she has the con fidence of knowing that the process is fast, safe and secure. Isn’t it time your financial institution joined the Plus System" network— the premier choice for national ATM sharing? For complete information regarding membership, please contact your local Plus System" member, or call Plus System, Inc. at (303) 573-7587. ^ PISystem lu s The premier choice. 6 Cole-Taylor Promotes 9 Executives INE key executives within the N Cole-Taylor Financial Group holding company as well as its indi vidual banks will be promoted as of the beginning of the 1987 calendar year, announced Sidney J. Taylor, chairman and chief executive officer of the Cole-Taylor Financial Group, headquartered in Northbrook, 111. “We are very excited about these promotions because they illustrate our philosophy of promotion from within our organization,'’ says Mr. Taylor. “We have been developing a succession plan for almost eight years. My partners Irwin Cole and I have been preparing for the future of this company which is principally a family-owned and operated busi ness. We want to keep building our corporation with executives who believe in the same ideals that first started the Cole-Taylor Financial Group.’’ Bradley M. Stevens, currently president and chief executive officer of Ford City Bank & Trust Co., will become president of Cole-Taylor Fi nancial Group. Frank E. Bauder who has been president of the hold ing company since it was formed in 1984, will continue his role as the chief financial officer. Mr. Stevens will assume responsibility for all of the Cole-Taylor banks and bank-re lated activities. He also will be elected chairman of the board of the Ford City Bank & Trust Co. William C. Olsen will succeed Mr. Stevens as president and chief exec utive officer of Ford City Bank & Trust Co. Mr. Olsen is now president and chief executive officer of Main Bank which has locations in Chicago and Wheeling. He will continue to serve Main Bank when he is elected chairman of the board. Jeffrey W. Taylor will be elected president and chief executive officer of Main Bank where he has been executive vice president. Richard E. Hamlin will be ap pointed senior vice president for the Cole-Taylor Financial Group with broad responsibilities in human re sources as well as involvement in or ganizational planning and manage ment development. Mr. Hamlin is now chairman and chief executive officer of the Bank of Yorktown where he will continue to serve as chairman. Mr. Hamlin also will be elected chairman of the Skokie Trust & Savings Bank. Bruce W. Taylor will be elected president and chief executive officer of the Bank of Yorktown where he has been execu tive vice president. Josephine May will become plan ning coordinator for the Cole-Taylor Financial Group Operations Coun cil. She will concentrate on opera tional matters and provide continu ing business development support. Ms. May is currently president and chief operating officer at the Bank of Yorktown and she will continue there when she is elected vice chair man. David M. Chan, currently presi dent of Cole-Taylor Operations Net work, will be appointed senior vice president of the Cole-Taylor Finan cial Group and he will assist Mr. Bauder in carrying out his duties as the chief financial officer. Robert F. Corey, the executive vice president of Drovers Bank of Chicago, will become the chairman of the trust committee and the chief investment officer for the holding company. The executive vice presi dent of Main Bank, Neis R. John son, will be appointed chief credit The Carpenters Pension Fund of Illinois, covering the State of Illinois and the eastern half of Iowa, announced today a financ ing program of new and rehabilitation construction projects. The Pension Fund is interested in providing financing of con struction and end loans at competitive rates. The servicing of these loans, ranging from $250,000 to $2,000,000, will be handled through local banks. The program is available for com mercial and residential projects. For further information, please contact: Frederick A. Westmark, Administrative Manager, Illinois Employee Benefits Cor poration, 28 North First Street, Geneva, Illinois, 60134, 312/ 232-7166. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis officer for the holding company. ^ “All of these promotions reinforce the vitality of our organization,’’ says Irwin H. Cole, deputy chairman of the Cole-Taylor Financial Group. “The company is shifting into gearQ so we can achieve new goals. Our master plan is to continue to grow while also sustaining Cole-Taylor Fi nancial Group as a desirable and re warding place to work.’’ # “We are a family business and we see Mr. Stevens’ role as the bond be tween two generations,” says Mr. Taylor. “My sons Scott, Bruce and Jeffrey, as well as my son-in-law# Daniel Bleil, play important roles in the operations of Cole-Taylor banks, and they will continue to grow by working through the steps of our organization.” # Cole-Taylor Financial Group is a multibank holding company with assets of more than $1 billion. The holding company consists of five banks and eight locations in the # Chicagoland area including Drovers Bank of Chicago; Main Bank located in Wheeling and Chicago; Skokie Trust & Savings Bank with two locations in Skokie on Oakton a n d # on Dempster; Bank of Yorktown in Lombard, and Ford City Bank & Trust Co. located in Chicago and Burbank. • Plus System Network Sees 113% Increase According to executives at PLUS SYSTEMS, Inc., Denver, Colo., th e ^ use of the automated teller machine network by travelers in the United States and Canada is running at twice the level it was a year ago. Traveling consumers using the # PLUS SYSTEM network during the month of August performed more than one million transactions, a 113 percent jump from the 469,000 _ transactions completed through the ® PLUS SYSTEM network during August of 1985. During the summer months of 1986, travelers made nearly 3 million transactions m through the PLUS SYSTEM net- 9 work. According to D. Dale Browning, president of PLUS SYSTEM, Inc., “Volumes have been increasing ^ about 15 percent a month, more than twice the rate we thought they would. This is due, in part, to our in creasing cardholder base, which should easily reach 70 million by the ^ end of this year. Profit from craftsmen. The Correspondent Bank Division at United Missouri Bank has a staff of experienced bankers. Craftsmen. Craftsmen who know the business of handling correspondent accounts. Craftsmen who can help your bank with everything from investment, brokerage and data processing services to bankcards, asset/liability m anagem ent, loans, cash letters/transit and more. So start to profit from our highly skilled people today. Call a United Missouri Bank Account Officer today. In U N ITED M ISSO URI BANK of Kansas C ity, n.a. Mem ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MW P.O. Box 226 Kansas City, Missouri 64141 (816) 556-7900 W* 8 Michael J. Litwin Is Promoted by Heller Michael J. Litwin has been named executive vice president, Commer cial Financial Services Group of Heller Finan cial, Inc. He will be based at the company’s head quarters in Chi cago. The appoint ment was an nounced by Rob M.J. LITWIN ert E. Koe, presi dent of the Commercial Financial Services Group. “Mr. Litwin’s signi ficant contributions to the success of the Central Asset Based Finance Division, along with his extensive background in leveraged funding, make him the ideal choice to manage Heller’s nationwide asset-based fi nancing operations,’’ Mr. Koe com mented. Mr. Litwin will be responsible for overseeing all aspects of Heller Fi nancial’s asset-based financing acti vities, which include corporate re structuring, and merger and acquisi tion financing. Besides the Chicago Central Division, the company maintains divisional offices in New York City (Eastern Division), Atlan ta (Southeastern Division) and Los Angeles (Western Division). Mr. Litwin, 39, joined Heller in 1971, and was appointed assistant general counsel in 1979. He was pro moted to senior vice president of the Central Division in 1982, and was named president of the division in 1984. Mr. Litwin received a Bachelor of Business degree from Western Illi nois University in 1969 and a Juris Doctor from John Marshall Law School in 1975. Currently, he serves as an executive director of the Na tional Commercial Financial Asso ciation. United Missouri Elects 3 Directors, 4 Officers The Board of Directors of United Missouri Bank of Kansas City, N.A. has elected three new directors. They are: William N. Deramus, IV, a direc tor of Kansas City Southern Indus tries, Inc., who also serves as presi dent and chief operating officer for two of the company’s subsidiaries, The Kansas City Southern Railway ^ Company and Louisiana & Arkan- 9 sas Railway Company. Clark G. Redick, a vice president and top executive for the Kansas City offices of AT&T. He has ^ worked for the company for 20 years w and currently serves as chairman of the AT&T executive council and principal spokesperson for all AT&T entities in the greater Kansas City ^ area. He is also head of the AT&T law department in Kansas City. Charles M. Skibo, president of US Sprint Communications Company, recently formed through the merger £ of US Telecom and GTE Sprint. UMB also announced the follow ing new officer elections: Stephen G. West to assistant vice president in the commercial loan di- £ vision of the bank. Formerly an as sistant vice president of the holding company, United Missouri Bancshares, Inc., Mr. West joined the company’s loan review division in 0 1985. He was previously a financial examiner for the state of Kansas. Mr. West holds a bachelor’s degree in Business Administration from Kansas State University. He also at- # tended the Agricultural School of Banking at Kansas State University Havecheckbook https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and the FDIC School for Examiners in Washington, D.C. Margaret F. Smith to corporate services officer in the corporate ser vices and cash management divi sion, where she is primarily respon sible for customer sales of the bank's cash management services. Mrs. Smith was affiliated with MidAmerica Payment Exchange prior to joining United Missouri in Janu ary. She is currently working on her bachelor’s degree in Business Ad ministration from the University of Missouri - Kansas City. Debra K. Shemwell to assistant operations officer in the operations research division, where she moni tors expenses and income of the de partment and also serves as special project analyst for Operations Man agement. Mrs. Shemwell joined United Missouri in 1983 after gradu ating from Northwest Missouri State University in Maryville. She holds a bachelor’s degree in Manage ment and Marketing. LaVena R. Spillars to assistant operations officer in the commercial bank operations division, where she is responsible for supervising per sonnel and workflow in the collec tions, freight payment and messen ger areas. Ms. Spillars joined United Boatmen’s Makes Changes Missouri in 1984. She was pre Donald N. Brandin, chairman and viously affiliated with a local data chief executive officer, Boatmen’s processing firm. Bancshares, Inc. announced recent ly that Samuel B. Hayes, III has joined the Boatmen’s National Bank Preferred Stock Offering of St. Louis as president and chief Northern Trust Corporation, Chi executive officer. Andrew B. Craig, cago, has filed with the Securities III who was previously chairman, and Exchange Commission a regis president and chief executive officer tration statement relating to a pro of the bank will continue as chair posed public offering of 1,050,000 man in addition to his primary re Series B Preferred Stock Interests. sponsibility as president of Boat Each of the preferred stock interests men’s Bancshares, Inc. consists of one-half share of the Cor poration’s Cumulative Convertible Preferred Stock, Series B. Cole-Taylor Group Names Goldman, Sachs & Co. and Lazard New Marketing Coordinator Freres & Co. is underwriter. Kay M. Witham was appointed Net proceeds will be used to pay a portion of the cost of the proposed marketing coordinator for Cole-Tayacquisition of First Lake Forest Cor lor Financial Group, Inc. Previously poration, a holding company for employed at First National Bank of three banks located in the northern Mount Prospect, Ms. Witham serv Chicago suburbs of Lake Forest and ed as marketing director of the bank Lake Bluff. In the unlikely event the for the past 2 years. She has served two years on the acquisition is not completed, the net proceeds will be used for general cor board of Northern 111. Chapter of the porate purposes, including the fund Bank Marketing Association, and ing of additional capital invest has been a member of the Cash Sta ments in or advances to subsidiar tion Advertising and Promotion ies, possible future acquisitions and Committee since it originated in 1980. the repayment of short-term debt. 4l) • mmm 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, road, arrangili arranging acquisition financing, handling overline loans, assisting with investments. Max Roy travels Iowa. Kathy Hardy makes calls in Wisconsin and Northern Illinois. Larry Nau visits banks in Central and Southern Illinois. And John Crotty concentrates on the Chicagoland area. Of course^each is available to any banker in the Midwest. 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. willtravel. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R? Drovers Bank of Chicago 47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000. MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C. _______________________________________ A Cole-Tavlor Bank SjjD 10 Norwest Offers “Checkfree” Service USINESS clients of Norwest B Banks throughout the Upper Midwest will be able to automate their accounts receivable more easi ly, making collections through elec tronic funds transfer (EFT) or credit cards, Norwest announced last month. The capability is a result of a re cent Norwest agreement with an EFT firm specializing in data pro cessing and ACH (automated clear ing house) consumer marketing. Norwest’s cash management divi sion and Checkfree Systems, Inc. of Columbus, Oh., have entered into the unique alliance which will allow Norwest’s commercial customers to collect payments directly from a consumer’s bank or credit card ac count, without requiring the compa nies to invest in extensive accounts receivable systems. According to Pat Collins of Norwest’s cash management division, the link between Checkfree and Nor west is unique because it is the Ohio firm’s first offering of the complete electronic service to customers of a financial institution. Checkfree cur rently provides the service directly to businesses, such as utility, insur ance and cable companies. Mr. Collins said Norwest decided to work with the Ohio company in order to give its commercial custo mers in its seven-state banking re gion “easier entry into EFT, thus af fording them the benefits of im proved cash flow, lower costs and improved customer service.” He said the Checkfree system saves companies’ time and resources by eliminating the necessity for ela borate data processing systems, pre paration of bills, processing, posting and check deposits. The system assures security, with no paper to be lost, stolen or mishandled. Mr. Collins pointed out that the service also benefits the individual consumer since it eliminates check writing and postage to mail in the payment. In addition, customers are given flexible payment options. Under the agreement, Checkfree provides marketing techniques and materials for the companies to sell Let’s talk about profitability. The Problem: A $32 million dollar national bank with a rural customer case, was experiencing a decline in profitability. For about two years the bank had experienced a high level of loan problems. Two other competing banks in this midwestern town of 11,000 had recently established branches in the growing southern part of town. The bank’ s deposit base was slowly, but surely eroding. Employee morale seemed very low. The bank’ s president called Swords Associates. Our Approach: We developed a strategic plan for the bank We met with the Board of Directors and key management staff. We assembled information, gathered from data collection assignments and combined this information with data collected on the competing banks. Next came a two day retreat with Directors and both upper and mid-level managers. We discussed the problems and opportunities with which the bank was faced. Swords Associates received excellent input from all participants. We formulated a comprehensive five year operating plan. We then developed a plan of implementation which identified each objective and established specific procedural plans necessary to realize the banks new goals At our final meeting with bank personnel, we solicited and received unanimous endorsement of the strategic plan from all involved. The banks president announced an incentive program in which all bank employees would be rewarded as each goal was achieved. Realizing that the success of the plan was dependent upon monitoring and comprehensive objective evaluation, the bank retained services to periodically review the progress being made and to fine tune the procedural plan as necessary. The Result: Over the last three years, operating revenues have increased 38%, the banks ROA has increased from .86% to 1.32%. A branch has been established in proximity to the banks competitors', directors and officers have instituted a successful calling program, deposits continue to increase, loan demand and quality is favorable, and 12 of 14 objectives have been achieved on time. M/A SWORDS ASSOCIATES. INC. PROFESSIONAL BANKING CONSULTANTS 4900 OAK • SUITE 301 Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • KANSAS CITY, MISSOURI 64112 • (816)753-7440 the service to their customers. When ^ the customer subscribes to the ser vice and chooses the method of pay ment (checking account or MasterCard or VISA), Checkfree creates a data base for the individual con- ^ sumer, notifies the financial institu tion of the customer’s agreement to the transfers and, on the collection date, sends the transaction to the in dividual financial institution. The ^ amount is paid, and the company is automatically credited with collec tion. The consumer is kept informed of the payments made from his or her account. £ Checkfree handles conversion, product design, research, customer service, marketing, training and im plementation for the companies, Mr. Collins said. f The Checkfree service is one in a series of new products offered to commercial customers by Norwest’s cash management division, which is headquartered at Norwest Bank 0 Minneapolis. BMA Debuts New Ad Book As part of an ongoing effort to aid • banks and thrifts in developing print ads that are creative, informa tive, and successful in drawing new business, Bank Marketing Associa tion is introducing a new monthly ® publication, A d Trends. ‘A d Trends has one purpose: to sift through a huge amount of infor mation, eliminate duplication, and report to marketing professionals on ® what their competition is advertis ing and marketing each and every month,” said Michael Warner, BMA vice president. Continental Bank Gets Approval to Buy Banks Continental Illinois Corporation, Chicago, was notified last month that the Federal Reserve Board has approved its applications to acquire First National Bank of Deerfield, The First Suburban Bank of Olym pia Fields and The First National Bank of Western Springs. Continental Illinois announced its plan to purchase the banks earlier this year. Pending approval by stockholders of the three institu tions and final review by the U.S. Department of Justice, closing dates for the transactions are sche duled for December, 1986. With IAC, "person to person" means more than a phone call. It also describes the regular contact you have with our Field Representative in your area—a person who is educated in the credit protection needs of today's banks, and is ready to supply in-bank training and assistance to you. O f course, if you do need to contact our home office a Service Representative assigned to you w ill answer your questions. And you can call toll-free. IAC offers you risk management services that give you the asset protection you need, and that relieve you of the difficult duty of confronting a surviving family with a large loan balance. Another advantage you enjoy is fast payment of claims. Because IAC recognizes how important this is, claims are processed and are generally received by the bank within one week. Sound interesting? Call us, toll free, to find out more ways an IAC Field Representative can be of help to you, "person to person." A Full Service Company for The Full Service Bank I ROUP Individual Assurance Company https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1600 Oak St. • Kansas City, M O 64108 Phone toll free in Missouri (800) 892-5890, other states (800) 821-5434. 12 II we're not your correspondent bank, you're w riting off the best service in the region. Frankly, you're short-changing your self and your customers by not using First Interstate Bank of Denver as a correspon dent bank. That's because no other bank in the Rocky Mountain region approaches our experience, resources, and breadth of products. You're missing the business know how of the region's oldest bank, one that understands your market and has helped large and small financial institutions suc ceed for over 100 years. You're missing the strength and flex ibility of the multistate First Interstate Bank system, with more than $49 billion in assets. And you're missing a range of com prehensive and technically advanced products that can be tailored to your needs today and tomorrow. Specifically, you're overlooking: Cash letter processing that gives you excellent availability and competitive pricing. A proven commitment to extending credit Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Participations that offer flexibility and fast turnarounds. Investment products and expertise from the region's leading investment department. International services that offer access to First Interstate's worldwide network. The most advanced cash manage ment systems, along with complete consulting and support. Third-party cash management ser vices that will meet the needs of your customers. And you can buy federal funds at national rates in amounts as low as $50,000 on approved credit. To learn more, call Bob Swartz now at (303) 293-5600. Whether your operation is large or small, you have a lot to gain from the best correspondent banking services in the Rocky Mountain region. G L » .» First Interstate Bank of Denver 633 Seventeenth Street, Denver, Colorado 80270 Member FDIC ABA OFFICIALS for 1986-87 are, left to right: Exec. V.P.—Donald G. Ogilvie; Immed. Past Pres.—Donald T. Senterfitt, vice chmn., SunTrust Banks, Inc., Orlando, Fla.; Pres.—Mark W. Olson, pres., Security State Bank, Fergus Falls, Minn.; Pres.-Elect—Charles Pistor, chmn. & ceo, RepublicBank, Dallas, Tex., and Treas.—Thomas P. Rideout, sr. v.p. & dir. of governmental affairs, First Union Corporation, Charlotte, N.C. These five form the associa tion executive committee. Mark Olson Heads ABA By BEN HALLER, JR. Publisher ARK W. OLSON was installed M as president of the American Bankers Association for 1986-87 during the association’s annual con vention in San Francisco in late Oc tober. Mr. Olson is president of Security State Bank in Fergus Falls, Minn. He succeeds Donald T. Sen terfitt, vice chairman of SunTrust Banks, Inc., Orlando, Fla., who con tinues as a member of the five-man executive committee. Named president-elect was Char les Pistor, chairman and chief execu tive officer, RepublicBank, Dallas, Tex., while Thomas P. Rideout, se nior vice president, First Union Cor poration, Charlotte, N.C., continues one more year as treasurer. Joining those four on the executive commit tee is ABA Executive Vice Presi dent Donald G. Ogilvie. Six bankers were elected to threeyear terms on the ABA board of di rectors. They are: • Hans H. Angermueller, vice chairman, Citibank, New York. • Charles D. Brummel, president, Security Bank, Coos Bay, Ore. • Hugh M. Chapman, president, C&S Corporation, Atlanta. • Thomas J. Stanton, Jr., chair- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis man and CEO, First Jersey National Corp., Jersey City, N.J. • Robert L. Stevens, president, Bryn Mawr Trust Company, Bryn Mawr, Pa. • Alan R. Tubbs, president, First Central State Bank, DeWitt, la. These six men join the 10 direc tors who continue to serve, and the five-man executive committee to form the 21-man ABA board of di rectors. In his address, Mr. Olson keyed on the need to revitalize banking laws to permit banks to compete equitably in the areas of lending, securities, and insurance. He said ABA will push aggressively for these product enhancements, as well as pursuing a close of the non-bank bank loophole. Mr. Olson said, “During this coming year we will ex amine the creation of an ABA Task Force whose job it will be to examine the influence on banking of competi tive, economic, technological and population changes. The goals of this Task Force will be to identify the changes that are having the greatest influence on banking today, to assist in a greater public understanding of those changes, and to stress the importance of banker education in preparing our industry to adjust to those changes. “Identifying change. Informing the public. Educating the industry. And, yes, seeking legislation when we need it. That’s what I perceive as the ABA mission. I hope you will join me in fulfilling it.’’ In his address, Mr. Senterfitt said, “To the doomsayers of bank ing I have a message, and I want them to listen very carefully. The banks of America are more than equal to these challenges, and we will maintain—nay, increase—our preeminent position in the financial world. I can describe the state of the industry in a few words. It is dyna mic! The report card is excellent! Our industry has remained strong through turbulent economic times.’’ Mr. Senterfitt detailed the asso ciation’s two major defeats of the past year. “The first is congres sional refusal to act on products and services legislation. The second is Washington’s failure to vote for the right kind of tax provisions for banks. The American Bankers Asso ciation ought not to settle for that. And it doesn’t have to.’’ Mr. Senterfitt said that despite its critics and detractors in Con gress, the Administration and among competitors, the ABA in tends to fight back this coming year in a strong move with a positive pro gram to gain the realignment of banking products and powers the in dustry needs and deserves to bring first-class financial service to the na tion’s business firms and homes. He made a strong call for personal in volvement by the CEO of every bank, and every bank officer who can contribute to working on behalf of improved legislation that will give banking the tools it needs to compete. He called for wholehearted support by all banks for the ABA bill introduced in the last session for ABA by Congressman Doug Bar nard of Georgia. Mr. Senteriftt said he had also made a personal appeal to President Reagan and to Treasury Secretary Baker to play key roles in the first major restructuring of the banking industry in 50 years. To make it all work, he stated, “I challenge the na tion’s largest banks, the nation’s smallest banks, and those in be tween to remember: Unity—a united effort—is the key...We have the re sources to get a tough job done. Let’s show that we have the will. Let’s go for it!’’ Mr. Ogilvie recounted the internal structuring and special projects Northwestern Banker, December, 1986 14 THE Minnesota Bankers Assn, and the Federal Reserve Bank of San Francisco co-hosted a reception for new ABA Pres. Mark Olson, pres, of Security State Bank, Fergus Falls, Minn., in the spacious lobby of the Federal Reserve Bank. In the receiving line, left to right, are: Brenda and Robert Parry, pres., & ceo, FRB, San Francisco; Leila and Truman Jeffers, exec, v.p. of MBA; Mary Lou and Roy Terwilllger, pres, of MBA and pres., Suburban Natl., Eden Prairie, and the guests of honor, Renee and Mark Olson. undertaken by ABA in the past two years to build a base for future ac tion; steps such as the wide-ranging study on the future of agriculture, which now provides Congress and the Administration, as well as ABA, with empirical data to help assess and develop ag policy alternatives; the study to establish a captive lia bility insurer; spearheading of the effort to establish standards for debit cards; expanding the use of video teleconferences for compliance and information purposes. Mr. Ogilvie stated: “It’s been almost four years now since a major banking bill was signed into law. While Congress has stood still, the marketplace hasn’t. Non-bank competitors have moved in. Technology has advanced. Con sumers have asked for more and bet ter service. Something eventually has to give. Either the law is changed, or banking will slowly lose sources, if we choose to put them to work. I sense that we’re more united, and more determined to get results, than we have been in many years. So Mark, and Charlie, and Don — and all of you — let’s get to it!” In his general session address, FDIC Chairman L. William Seidman outlined the following steps the FDIC is taking to help end the insur ance problem in banks’ board rooms: • Meetings with bankers, trade groups and insurers to foster better communication and understanding and explore solutions. • Discussions with insurers and reinsurers, in the United States and Europe, to encourage increased in surance availability. • Working with other regulators to develop guidelines for directors and officers, outlining their duties and responsibilities. Mr. Seidman noted that it would be difficult to sue a director who, in good faith, had complied with the FDIC guidelines. Chairman Seidman noted that FDIC lawsuits are not a major cause of the insurance dilemma. He stressed that lawsuits are brought by the FDIC against directors and officers only when there is evidence of real negligence or wrongdoing. “We do not file a lawsuit in every case where there is liability insur ance coverage, nor do we ignore a potential claim just because there is no insurance. More importantly, no lawsuit is filed without a thorough investigation,” he said. Mr. Seid man noted that investigations are lengthy and no suit can be filed without his personal review of the case. its vital economic function. Either bankers are allowed to compete, or banking will become just another smokestack industry with a bright past — and a very dim future. “But today we can say that our industry is headed in the right direc tion. We’ve cleared the decks of some major problems and now we’re ready to move forward. “That wasn’t the case a little over a year ago. Then we were separated by a single issue — interstate bank ing. Now, the rapid pace of change at the state level has almost made this issue moot. “We only have to look at the thrift industry to see what happens when the marketplace moves, and the laws and regulations fail to keep pace. We can’t let that happen to banking, and we’re not going to. “That’s why we’re on the move. Our industry — and your trade asso ABA CONVENTION. . . ciation — have some tremendous re (Turn to page 52, please) SUNDAY BREAKFAST with United Missouri Bank of Kansas City was hosted by (from left): Lyle Wells, vice chmn., and his wife, Anne, and Kathy and Mick Aslln, pres. & ceo. RIGHT—Phil Straight (standing), exec. v.p. of United Missouri is pictured with guests Bill Bunten (left), pres., 1st Natl., Wichita, Kan.; Ardyth Buttram, Ponca City, Okla., and Lanny Kimbrough, pres., Highland Park B&T, Topeka, Kan. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 PICTURED aboard The City of San Francisco excursion ship before taking guests on a Bay cruise were LaSalle National Bank of Chicago hosts (left to right): John Lynch, sr. v.p.; Homer J. Livingston, pres. & ceo and his wife, Margie, and Peter McGuire, v.p. & head of the corr. bkg. div. RIGHT—Del Rogers, v.p., and his wife, Evon, and Wayne Bismark, v.p., both men with the LaSalle Natl. corr. bkg. div., and guests Dorothy and Ed Arseneault, pres., Soy Natl. B&T, Decatur, III. 41 LEFT—This Iowa group is made up of, I to r.: Neil Milner, exec, v.p., Iowa Bankers Assn.; Bob Sierk, exec, v.p., 1st Natl., Iowa City; Christy Armstrong, retired pres., American T&S, Dubuque; H. Clark “Bud” Houghton, pres., 1st Natl., iowa City, and Carleton C. Van Dyke, pres., American Banc-Services, Inc., Sioux City. RIGHT—Leading the Nebraska delegation at the convention were Stan Matzke (left), exec, v.p., Nebraska Bankers Assn., and his wife, Dorothy, and Virginia and Kelly Holthus, pres, of NBA and pres. & ceo, 1st Natl., York. FIRSTIER BANKS of Omaha and Lincoln hosted their reception at the World Trade Club. From left are: Dick Yeshnowski, v.p., FirsTier Omaha, and his wife, Andrea; Larry Comine, sr. exec, v.p., FirsTier Omaha, and Jan and Orrin Wilson, sr. exec, v.p., FirsTier Lincoln. RIGHT—Greeting guests at the Illinois reception were William Hocter (left), exec. v.p. Illinois Bankers Assn., and June, and Joy and Chuck Waterman, pres, of Illinois Assn, and chmn. & ceo, South Holland T&S. IOWANS at the convention included, left to right: Russ Howard, pres., Iowa Bankers Assn, and chmn., Mahaska Inv. Co., Oskaloosa, and Lee; Bill Bunten, Iowa supt. of bkg. and pres., Peoples Savings, Crawfordsville, and Kay; Henry Royer, pres. & ceo, Merchants Natl., Cedar Rapids, and Ann; Bob DeWaay, exec, v.p., Merchants Natl., and Pam; Terry Martin, v.p., Merchants Natl., and Dixie; Wally Wollenhaupt, chmn., State Bank of Wapello, and Myrt, and Jerry Trudo, v.p., Merchants Natl., and Ruthie. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1986 16 From “Tom bstones” to TV Spots: A History of Bank Promotion By DIANE NELSON Associate Editor T THE turn of the century, banks considered ad A vertising unprofessional. For a bank to advertise was considered as unethical as for a doctor or lawyer to do so. Of course, the services of doctors and lawyers were required by most people from time to time, whereas the average citizen could do very well without a bank, or at least had no idea what to do with one if he had it. By the 1910’s, long before the medical and legal professions would enter the world of marketing, bank advertising was common. At first bankers were almost shy about promotion. They preferred creating new services to attract con sumers. Around 1900 one such idea was the use of small, individual safes for accounts. The rather gim micky concept of the depositor placing his own curren cy and coins into a tiny safe may have been the precur sor of the safety deposit box, which would become a promotional craze in later years. Christmas Clubs were begun in 1910, in an effort to encourage systematic saving in a culture unfamiliar with that habit. Such services were developed specifically to make the public comfortable with, and interested in, personal banking. A SUCCESSFUL ADVERTISING CAMPAIGN Must be based upon facts, conditions, competition and business possibilities in the bank’s territory. Cl The advertising of each bank I serve has my personal attention , is planned and prepared after a comprehensive analysis of local conditions. C The cost is kept within the amount the bank can ex pend for publicity. Information and estimates gladly furnished upon request. H. B. C R A D D I C K F in a n c ia l A d v e r ti s i n g 502-503 Andrus Bidg. MINNEAPOLIS, MINN. BY 1913, financial advertising was a budding industry, as this Northwestern Banker ad shows. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “Tombstone” Territory Of course there was still the problem that without advertising, consumers couldn’t know about a bank’s services. So, with typical dignified modesty, banks began simple advertising. The ads usually featured nothing but the name, city, capital, surplus and depos its of the bank, known in the advertising industry as “tombstone” ads! This was an improvement, but still not exactly the answer to the problem. In the words of 1913 writer George O. Smith, it became necessary for a bank to “adapt its methods of solicitation to the class of depositors it is desirous of obtaining.” A modern PR director might say it was time to analyze the consumer and market accordingly. Ad copy began changing to address particular types of prospects, but remained no more aggressive than a cor dial invitation. Mr. Smith recommended: “Individuals, firms and corporations considering a change in their banking connections are invited to open accounts with us.” To a reader of the time, this was probably quite catchy! Actually, the art of bank marketing was taking off during this period. By 1916 all large banks had publi city departments, and ad agencies actively sought bank clients. The N orthwestern B anker featured ar ticles on advertising and marketing. S.L. Frazier, in one such feature, recommended lively headlines, generous use of space and, above all, attractiveness. An ad’s message, he urged, should be “delivered pithi ly, pointedly, seriously or humorously, with a ‘punch,’ and some ‘pep.’ ” Direct Mail Direct mail was probably the most popular means of advertising, and banks were quite creative in their use of it. Letters (most moving if signed by the president!), attractive educational booklets, and colorful postcards were used. The consumer reluctant to deal with the red tape of opening an account was sent an imitation pass book already filled out for him. The citizen without a lot of ready cash might receive a check for fifty cents to be applied toward a new account. Meanwhile, banks continued their efforts to main tain a good image in the public eye. In 1913 Fred W. Ellsworth, publicity manager for New York’s Guaran- 17 THIS model of the “ Roto-Bank,” developed by Marine Midland Trust, New York, in 1960, illustrates the dizzying innovations in spired by the age of the drive-in. “ Tellers on a turntable” were in tended to solve space problems for banks. ty Trust Company, had three recommendations for building business. First, be flexible regarding your 10:00 to 3:00 hours. Second, have an attractive office. Third, be sure to have good-looking forms and letter head (he urged that stationery be “tasty and well ordered”). No doubt all these techniques were successful in their way, but a 1928 survey conducted by Liberty magazine showed only 5% of Americans used banks. The Crash of 1929 and subsequent bank closings did nothing for people’s confidence in financial institu tions. Bankers themselves were not always well liked; some even reported having to walk on side streets and alleys so their neighbors would not see them. They were hard pressed to restore the image of banking and rebuild the industry. Rejecting Depositors Sometimes, in fact, these two tasks even opposed each other. Around 1940 there was serious debate in the pages of the N orthwestern B anker about the matter of turning away depositors. Just as the case is today for many banks, bankers at that time could not always invest deposits at a high enough return to make the business worthwhile. To many, the idea of turning away business, even if that business meant taking a loss, was unthinkable. They feared losing their customers forever to the Postal Savings Bank, their government-established competitors. Hindsight shows us this didn’t happen, but the issue of where to draw the line in serving the customer has always been important, particularly in the area of lending. The thirties were not without innovation, however. For example, the N orthwestern B anker carried a series of articles on creative use of window displays, an increasingly popular advertising tool. Their three-di mensional visuals brought high impact to the bank’s educational messages. One suggestion featured models of a mother and two children in a window frame, with fan-driven paper flames behind them. Whether this really encouraged saving to prepare for possible https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis disaster is hard to say, but it surely attracted customers to read the attached copy. In the forties the typical bank’s advertising budget went half to newspaper ads, one-quarter to direct mail, and 7% to radio (only one in five people owned a radio). The rest went to various areas, including 2% for street car advertisements. The Cozy Approach With all the advancement in bank marketing, the tone of direct mail was still far from hard-sell. Bankers continued to use the cordial, charming approach to reach customers. In 1941 an article suggesting forms for promotional letters from the bank president set forth this recommendation: “I was very glad to notice you were in today to make a deposit on your savings account, in response to our recent invitation. And I hope you will continue with regular deposits. If you do adopt my suggestion of saving some set sum each week, I know that in a year or so from now you will have no reason to blame me for the suggestion.” And so continued the saga of convincing people to have savings accounts. For nearly fifty years the pro motional tasks of the bank had remained much the same, but in the 1950’s technology brought with it new services for the bank to sell. Along with the advent of drive-in movies and drive-in restaurants came drive-up banking. Banks developed great promotional schemes around their new auto teller windows, as in the case of a Palm Beach, Fla. bank, which brought a sunbather to the drive-up window in a helicopter. The “magic win dows” were open 9:30 to 2:00, and record business was 325 cars a day. New Services Crazes And banks fell all over themselves inventing crea tive promotional ideas. Among more typical services like “pennies for parking,” a lobby postage machine, and lounge chairs, one bank created a unique “free um brella service.” Six umbrellas were available for check out in the lobby, for up to five days use by patrons. Another bank blitzed customers with this array of ser vices: “night depository for individuals, bank by mail, personally imprinted checks,” and, in the bank buildBANK PROMOTION. . . (Turn to page 37, please) AN Ohio bank took specialty gifts to the limit in 1960. This chic item, although not too popular, caught national attention. Northwestern Banker, December, 1986 18 GETTING instruction from Robert L. Butcher, sr. v.p., Holstein State Bank (left), is ag-banking student Tim Meyer. RIGHT—Diane Riesenberg, consumer banking student, working on-the-job training at the drive up teller window at Security Savings Bank, Eagle Grove. The Hol stein and Eagle Grove banks have been extremely cooperative in the banking program. Program Prepares Students for Ag Banking Careers A N orthwestern B anker interview with DOUGLAS J. THOMPSON Banking Coordinator Iowa Central Community College Fort Dodge, IA Editor's Note: When the Agri and Consumer Banking Program was initiated, T h e N o r t h w e s t e r n B a n k e r presented the story to its readers, and reports were made periodically on its progress. This professionally conceived and delivered program has graduated ap proximately 100 students prepared for careers in agricultural bank ing. The following article relates some of the highlights of the 12-year old program. HE Agri and Consumer Banking Program at Iowa Central Community College in Fort Dodge, la., has graduated approximately 100 bankers in its twelve years of existence. Three important factors have made the community college’s two-year program a winner at the Fort Dodge Center. First, it was organized and given continuous support by Iowa bankers. Second, it is supervised and taught by an experienced banker. Third, it offers eight weeks of on-the-job training during the first year sum mer session. Bank Support The program was initiated in 1974 by the Iowa Bankers Association, with the help of several Iowa bankers, ICCC officials and the Iowa Department of T Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Public Instruction. Classes commenced in 1974 under the title Agri-Banking Program. During ensuing years, the department realized that the Agri-Banking Program was quite specialized and that students who were interested in banking, but not agriculture, were required to take the agricultural courses or not enter the program. At the advisory committee meeting Aug ust 26, 1978, an idea was discussed. The idea was to give non-farm youths an opportunity to take the bank ing program without the agriculture emphasis. The ad visory committee recommended unanimously that the expanded program be adopted and called the Agri and Consumer Banking Program. The program was put into effect the fall semester of the 1978-79 school year. Under the new program, all students take the same courses the first year. At the end of the first year, each student decides to take either the ag emphasis or the consumer emphasis. The offered curriculum is broad enough to accommodate either specialty. ^ Experienced Banker is Instructor Heading up the Fort Dodge Center program is Doug _ ® q £ £ 19 Program of Study 80 W eeks Second Semester First Semester Clock Number 6:151 10:101 46:150 46:154 46:155 Course Accounting 1 ................. English 1 ....................... Principles of Banking . . Law & B anking............. Personal Finance ........ Hr s. 54 72 54 54 54 288 Sem. Hrs. Number 6:152 22:181 40:121 70:102 3 4 3 3 3 46:105 46:151 46:171 16 Clock Hrs. Course Accounting 2 ................. Prin. of Economics 1. . . Prin. of Marketing OR Marketing Ag. Products ....................... S alesm anship............... Credit Administration . S em inar......................... Sem. Hrs. 54 54 3 3 54 54 54 36 3 3 3 1 306 16 Summer Session (8 Weeks) Number 46:131 On-the-Job Training Third Semester - Consumer Credit Emphasis Clock Number 6:161 40:103 40:130 40:147 46:157 46:160 Course D ata P rocessing ........ Intro, to Business . . . . Personnel M anagem ent............... Agri-Finance............... Credit Files & Bank F o r m s ............... Insurance ................... Hr s. Sem. Hrs. 54 54 3 3 54 54 3 3 36 36 2 2 288 16 Third Semester - Agri-Banking Emphasis Clock Number 40:130 40:147 46:157 46:160 70:111 70:113 Course Personnel M anagem ent............... Agricultural Finance . Credit Files & Bank Forms ............... Insurance ................... Farm M anagem ent. . . Animal S cience.......... Hrs. Sem. Hrs. 54 54 3 3 36 36 54 54 2 2 3 3 288 16 Thompson, who comes from a farm background and is a graduate of Luther College, Decorah, la. Mr. Thompson has career experience that includes • five years in park and recreation management and eight years of bank lending experience. In the financial field, he was employed as vice-president of Americana State Bank, Alden, Minn. Mr. Thompson took over the teaching duties in 1984 • from Forrest Johnson, who started the program in 1974. As coordinator, Mr. Thompson works closely with the advisory committee, which consists of six Iowans. They are: Donald Rainer (chairman) formerly vice-president at the Grimes office of Bankers Trust • Company, Des Moines, who has served on the commit tee since the beginning in 1974; Earl Henderson, senior vice-president, First Interstate Bank, Fort Dodge; James Patton, president, National Bank of Rockwell City, Rockwell City; Rick Liska, R.R. 1, Callendar, ® past graduate of the program; Trudy Koppen, center https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Clock Hrs Course 288 Sem. Hrs. 4 Fourth Semester - Consumer Credit Emphasis Clock Number 40:126 46:152 46:156 46:161 46:172 Hrs. Course Business M anagem ent. Bank Management . . . . Consumer C redit.......... Real E s t a t e ................... S em inar......................... Voc-Tech E lective........ 54 54 54 36 36 54 Sem. Hrs. 3 3 3 2 1 3 __ __ 288 15 Fourth Semester - Agri-Banking Emphasis Clock Number 6:161 46:152 46:161 46:172 70:104 Hrs. Course D ata P ro cessin g .......... Bank Management . . . . Real E s t a t e ................... S em inar......................... Crop P ro d u ctio n .......... Voc-Tech E lective........ 54 54 36 36 54 54 Sem. Hrs. 3 3 2 1 3 3 __ __ 288 15 manager, Credit Union Center, Fort Dodge, and W.G. Meinen, executive vice-president, Lake City State Bank, Lake City, (resigned from committee last year after 10 years of service.) On-The-Job Training is A Key A key part of the two-year program is the on-the-job training students get during one full summer. They spend at least eight weeks at a bank or related busi ness and receive four semester hours of credit for this experience. The on-the-job training is more than an ob servation session. Trainees are expected to work, and Mr. Thompson follows the progress of each student closely with the employer. Students are compensated while they are training on the job, and this amount, ac cording to Mr. Thompson, typically covers a portion of AG BANKING CAREERS. . . (Turn to page 58, please) Northwestern Banker, December, 1986 20 Are you thinking about providing customers with additional bank services? your The recent American Bankers Association ag bank conference, which took place in Nashville, raised the challenging issue that profit minded banks must begin offering more services. - Because you are an agricultural bank, R.W.A. Financial Services has good news for you! We provide the premier customer service fo r ag banks: a complete marketing service fo r your customers'farm commodities. - - R.W.A.'s program is unique, in that it fits into the framework o f your bank as an important profit center. We would like the opportunity to explain to you the other powerful features of R.W.A.'s lender-centered marketing service. Why do the largest lending institutions and commodity exchanges in the U. S. recognize R .W A . as the leader in providing market services? - What can R.W A.'s program do to more fully secure your loan portfolio? - What can this program do to enable your institution to be more attractive to the "Blue Chip" farmers with whom you are not currently doing business? There is another important asset that R.W.A. crucial to the success of this new customer service! provides which is R .W A . Financial Services can sell it to your area farm ers! N ot only do we provide an excellent state-of the-art program, we are experts in communicating this concept to your customers! CALL TOLL f F ^ L 1- 800- 247-0940 OUTSIDE IOWA 1- 800 - 553-8018 IN IOWA R.W.A. Financial Services, Inc. 2224 E. 12th St. Box 3189 Davenport, Iowa 52808 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 H LEFT—Michael E. Fitch (left), v.p., Wells Fargo Bank, N.A., San Francisco, and immed. past chmn. of ABA Ag Bankers Division; Robert W. Ranger (center), sr. v.p., Norstar Bank of Upstate New York, Utica, the new Ag Bankers Division chmn., with ABA Pres. Mark Olson, pres., Security State Bank, Fergus Falls, Minn. RIGHT—Mr. Ranger with opening general session speaker Dennis T. Avery, sr. ag advisor, U.S.' Dept, of State, Washington. Chapter 12 and C1CC Changes Cast Pall Over ABA Ag Conference By BEN HALLER, JR. Publisher • • ® ® ® ^ w ^ ANKERS attending the 1986 National Agricul B tural Bankers Conference at Nashville, Tenn., in mid-November portrayed a true picture of contrasts. Compared to the downbeat mood of the conference at Dallas last year, when community bank closings in the upper midwest were occurring with regularity, there have been far fewer closings in 1986. Also, every banker interviewed expressed cautious optimism that the bottom has been reached for banks so far as iden tifying problem loans in their banks. In contrast, however, they offered the caveat that no firm predictions can be made until the ill effects of two bad pieces of legislation for lenders are better known. The first is the new chapter 12 Bankruptcy which allows farmers and bankruptcy judges to determine reorganization plans. It took effect November 2 7 Thanksgiving Day—and the first Chapter 12 was filed one minute after midnight of that date in Iowa. The second Congressionally enacted law that is detrimen tal to lenders is the revision in the UCC Lien Law which removes the farm exemption and makes it necessary for lenders to adopt expensive procedures to protect their secured liens. Speakers at the Nashville Conference, as well as banker registrants agreed on one thing. Both bills will cause added expense being added to all borrowers’ bills, but marginal borrowers will probably be denied credit as lenders find it necessary to protect their inter ests and avoid regulatory criticism. But the overpowering importance of national poli tics was brought home dramatically by the presence at the Conference of Sen. Jesse Helms (R., N.C.), current chairman of the Senate Ag Committee; Rep. Ed Jones https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (D., Tenn.), a ranking member of the House Ag Com mittee; nine Congressional staff people, and 10 execu tives and other representatives of federal departments. The power of politics in agriculture was emphasized for registrants by the fact that four of the general session speeches and 12 of the 23 special sessions centered en tirely or in great measure on ag legislation. Sen. Helms said he sees a bottoming out in farm land values, although reports were being released at Conference time of further declines in most states. He asked bankers not to attack or tinker with the 1985 Farm Bill, stating that “Market orientation is the way to go. Fine-tune it, but don’t reverse direction.’’ Rep. Jones acknowledged that bankers are duly con cerned about protection of their security interests now that the UCC Lien Law was revised forcing bankers and all lenders to prenotify all potential buyers of farm products or for states to install a computerized central filing system. He did say if bankers’ warnings actually come true then the 100th Congress “will revisit’’ the Farm Bill. He gave tentative support to creation of a secondary market for bank ag loans, with the require ment that it be a private market, and a concern for its effect on the Federal Land Banks. He referred to the possibility of having the FCS as a secondary market for commercial bank ag loans. Rep. Jones was ques tioned by bankers about the rejection of banker efforts to amortize farm debt over a 20-year period like the FCS and said he would be willing to seek the same au thority for banks. Robert W. Ranger, chairman of the Conference and of the ABA Ag Bankers Division for 1986-87, presided at the three general sessions, the noon luncheon and the Tuesday night “75th Anniversary Celebration” that celebrated the anniversary of the Ag Division’s founding in 1911. A musical salute with a 32-piece orNorthwestern Banker, December, 1986 JL . LEFT—Michael Boehlje, PhD, professor & head, Dept, of Agriculture and Applied Economics, University of Minnesota, St. Paul, discussed “ Strategies for Financing Agriculture in the 1990s.” CENTER—“ Preparing for Changes in the Uniform Commercial Code” was the topic handled by Floyd E. Stoner (left), ABA fed. legisl. repr.; Neal Conover, chmn., 1st Natl., Creston, la., and Barbara Roberts, Secretary of State, State of Oregon, Salem. RIGHT—Thomas L. Flynn (left), a Des Moines, la. attorney, and James W. McBride, dir. & former pres., 1st Natl. B&T, Aurora, Nebr., discussed “ Chapter 12 of the Bankruptcy Code.” LEFT—“ Tactics for Financing Agriculture” was reviewed with audio-visuals and handouts by the father-son combination of Paul E. Lind- # holm (left), chmn. & CEO, and Steven Lindholm (center), v.p., Farmers and Merchants State Bank of Clarksfield, Minn. RIGHT—“ Long-Term Credit for Agriculture” was handled by John Lord, Jr. (left), sr. ag inv. lender, John Hancock Mutual Life, Boston; Steve Stahly (center), pres. & CEO, MABSCO Agriculture Services Inc., Des Moines, and James M. Schurr, sr. v.p., Farm Credit Corp. of America, Denver. chestra, followed by dancing, filled the evening. Dennis Avery, opening general session speaker, said “American farming and agribusiness have been poorly served by our agricultural forecasting efforts in the last 15 years.” He noted events of the past decade that led farmers and lenders to pursue a course of expansion that has brought American agriculture to its knees. Mr. Avery said that while doomsayers were making apocalyptic predictions based on short-term, faulty in formation, they were overlooking technological ad vances of longer-term consequence that really control the long-term destiny of agriculture world-wide. From his vantage point of monitoring ag produc tion, plans, variety developments and other research in nations all over the world, Mr. Avery painted a clear picture of the total production capabilities of all na tions. American exports, he said, cannot recapture the same level of export markets once held, but creative production and marketing can make a difference. He called for better five-year forecasts that fit a pattern of adhering to long-range forecasts to aid American farm ers. ABA President Mark Olson, president of Security State Bank in Fergus Falls, Minn., pointed to the value of A BA ’s recently-released “Transition in Agricul ture” study. This extensive analysis of the position of American agriculture and lenders, with a blueprint for Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis community banks’ future, is being used by many midwest ag banks to help position themselves for future security as a survivor lender bank in the com petition ahead. Mr. Olson also announced he will reconstitute the ABA Task Force, with an invitation to the Indepen dent Bankers Association of America to make it a unified Task Force, he said, as was done last year. Full de tails of Mr. Olson’s plan, and his other programs for the coming year were published in the December 8 Weekly Newsletter. Registrants were offered five Policy Forum topics and 18 Concurrent Session topics. Many were repeated during the two and one-half days of the Conference. One of the five “Policy Forum” topics that was pre sented both Monday and Tuesday was “Transition in Agriculture: A Strategic Assessment of Agriculture and Banking.” Sharing the platform were Dr. John A. Hopkin, Stiles Professor of Ag Finance at Texas A&M University, College Station, and Alan R. Tubbs, presi dent, First Central State Bank, DeWitt, la., who was ABA Ag Bankers Division chairman when the study was commissioned by ABA. Dr. Hopkin headed the re search team that put the study together. Both speak ers stressed heavily throughout their talks that agri culture is undergoing a major structural change and is not in a “normal” cycle. The study notes, “Cyclical • • ® 9 ^ q PICTURED at the Nebraska Bankers Association reception, from left to right: Chuck Stones, dir. of member relations, Kansas Bankers Assn., with his father, Harold Stones, KBA exec, v.p.; Stan Matzke, NBA exec, v.p., Lincoln; C.G. Kelly Holthus, pres, of the NBA and pres. & CEO, 1st Natl., York; Dale Goff, v.p., Richardson County B&T, Falls City; Don Blaha, pres.-elect of NBA and pres., 1st Natl., Ord, and Gary Garnick, exec, v.p., and Clark Hervert, v.p., both with 1st Natl., Ord. GUEST speakers and their hosts at Iowa Bankers Association breakfast were, from left: Floyd E. Stoner and Rusty L. Jesser, ABA fed. legis. repr.; Wes Ehrecke, IBA v.p. for govt, relations and agriculture, and Paul M. Quam, chmn. IBA ag comm, and exec. v.p. & CEO, Hayesville Savings Bank, Hayesville. RIGHT—Roger T. Stewart (center), sr. v.p., Maquoketa State Bank, Maquoketa, la., pictured with his wife, Jennie, was honored as winner of the 1986 ABA Bankers News Weekly Grand Award. Pictured with him are Edward L. Tubbs (left), chmn. of the bank, and his son, Alan Tubbs, exec. v.p. of the bank. patterns of surplus capacity, low income and migration from the farm have changed the fundamental structure of agriculture, rural communities and agriculture fi nance. Without new policies and practices, the stress in agriculture and agriculture finance will deepen.” The changes are as profound as the changes that ac companied the mechanization of agriculture, the study notes a move that precipitated the continuing drop throughout the 1900s from a nation with 25 million farms to one with approximately 2 million farms to day. For farmers and their lenders to survive, the study says, both must understand the “Transition in Agriculture” and adapt to it. That is the purpose of the study’s work book that is available to all community banks—to learn how to adapt, diversify and develop new management, lending and operational techniques. The “Long-Term Credit for Agriculture” Policy Forum drew a full house both times. John Lord, Jr., senior ag investment lender for John Hancock Mutual Life Ins. Co., Boston, said he’d “like to see banks re establish a correspondent relationship with life compa nies like the ones that used to exist. This could lead to larger pools for securitization of ag loans,” he stated. He added he’s looking for the Cooper Evans (Iowa rep resentative) bill that would provide a government guaranty (FmHA) for 90% and leave the lender at risk for 10%. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Steve Stahly, president and CEO of MABSCO Agri culture Services, Inc. (MASI), Des Moines was on the panel with Mr. Lord and described MASI’s one-stop credit where MASI takes up to 80% of the loan and the bank retains the rest on a 3 to 5-year basis up to 60% of valuation. He said “we have a triple A bank that will enhance the credit and can sell AAA bonds. This can be done,” he said, “without government involvement to establish a secondary market. We may securitize 90%, or even 100%.” Mr. Stahly said “MABSCO can’t do this alone in the United States but needs the invest ment of life insurance companies and others.” It was noted several times during the conference that ABA is pursuing the secondary market concept as well, either within private industry or as a govern ment-sponsored, privately run market. On the other hand, while taking part in the “Govern ment’s Role in Credit for Agriculture” concurrent ses sion, Frank W. Naylor, Jr. chairman of the Farm Credit Administration, McLean, Va., made it plain he opposes formation of any other ag loan secondary mar ket, whether by private lenders or by the federal gov ernment. The “Chapter 12” concurrent session drew another AG CONFERENCE. . . (Turn to page 45, please) Northwestern Banker, December, 1986 24 Get a correspondent relationship that’s as individual as you are. No two banks are exactly alike. And the same can be said for their correspondent banking needs. That’s why we develop each and every one of our correspondent bank plans on an individual basis. Whether it’s loan participations, computer services, discount brokerage, MasterCard/Visa, or our new and improved cash letter proc- essing service, you can depend on the fact we’ll work with you to adapt that service to better meet your individual needs. And we’ll be around to make sure it fits your needs in the future, too. Experience correspondent banking on a truly “individual” basis. Call one of our correspon dent bankers today. wellshowyou how Ç » Commercial National Bank of Peoria Member Midwest Financial Group, Inc. COMMERCIAL BANKING DIVISION Phone: (309) 655-5423 Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 301 S. W. Adams • Peoria, Illinois 61631 WATS LINE 1-800-322-2212 Member FDIC 25 cial institution members potential long-term operating cost reductions and customer access to hundreds of additional ATM locations. It will also potentially facilitate a second generation of EFT programs, pos sibly to include a network POS capa bility, so as to further benefit their members’ customer base. Appointed in Galena Howard Poitevin has been ap pointed as chief executive officer of the First Na tional Bank of has been elected the president of the Galena, effective Money Station. Henry W. Tymick, Nov. 1. vice president, W.N. Lane InterfiIn addition, nancial, Northbrook has been named Richard W eis vice president. Marten J. Noll, presi has been named dent, First Security Bank of Chica senior vice presi go, has been elected as secretary. dent of the bank Elected treasurer is Charles J. in charge of op Olson, senior vice president, Com erations. H. POITEVIN mercial National Bank, Chicago. Mr. Poitevin Midwest Payment Systems of joins the bank from Anita, la., Cincinnati, Oh., the data processing where he was president and CEO of affiliate of the Fifth Third Bancorp, the Anita State Bank. He also Cincinnati, will be Money Station’s served in the U.S. Air Force from computer processing vendor. 1952-56. Cash Station’s current switch pro vider, The First National Bank of Named in Skokie Harold A. Chmiel has been ap Chicago, reached an agreement to sell its interest in the Cash Station pointed vice president of corporate switch to the Fifth Third Bank of banking at Skokie Trust & Savings Cincinnati. First Chicago’s sale of Bank. He joined the bank in February as the switch helped smooth the way for the new network. Terms of the assistant vice president of corporate banking. His previous experience in deal were not disclosed. Officials said that Money Station cludes over 12 years at two Chicago will afford current and future finan area financial institutions. Illinois’ Leading ATM Networks to Merge HE two largest shared auto T mated teller machine networks in Illinois have agreed to merge, with member approval, creating one of the largest networks in the coun try, according to officials of the two systems. The two networks, Cash Station and Money Network, will form a new electronic funds transfer net work to be called Money Station. Money Station will have nearly 1.3 million ATM cardholders, 2.7 million transactions per month, over 250 member banks, savings and loans, and credit unions, and more than 800 ATMs. The consolidated network will be visible to customers during the sec ond quarter of 1987 with consolida tion details and transition efforts to be conducted for the balance of 1986 and early 1987. John J. Hunt, president and CEO of First National Bank of North brook and president of Cash Station, Illinois Bankers Attend RMA Annual Conference DIGNITARIES of the Chicago Chapter of Robert Morris Associates were among the 1,500 bankers and spouses who attended RMA’s 72nd annual Fall Conference held recently at the Hyatt Regency Hotel In Houston, Tex. Left to right: Chapter Pres, and Mrs. Lee Gubbins, Bank of Llncolnwood; Chapter First V.P. and Mrs. John T. Gerlits, Amer. Natl. Bank, Chicago; Chapter Treas. Harvey L. Herrst, Zion St. Bank; Joyce Ketlar; and Immed. Past Chapter Pres, and Mrs. Michael W. Kiss, First Natl. Bank, Highland Park. RIGHT—Officers of the Central Il linois Chapter of RMA are, left to right: Chapter Pres. Karl D. Tauber, The First Natl. Bank of Decatur; Immed. Past Chapter Pres. Guerry L. Suggs, First Natl. Bank, Springfield; Jane Tock; and Chapter First V.P. Steven J. Tock, First Natl. Bank in Champaign. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1986 26 Illinois News Named in Rockford Douglas R. Hancock has been named assistant vice president at AMCORE Bank Colonial, Rock ford. He will be in charge of the in stallm ent loan department. He was previously banking officer at AM CORE B ank, N .A ., D.R. HANCOCK Rockford, where he had been employed since 1973 in various lending capacities. in a similar position at Suburban Sam S. Fawley has been named Trust & Savings Bank in Oak Park, senior vice president and senior where she worked for the past six lending officer of years. Northbrook * * * Bank. He joins the James R. LaFrenere has been bank after serv named group manager of operations ing 36 years at A ffilia te d w ith H arris Banc Group, Inc. Trust where he He joins Affi was vice presi lia te d from dent and admin Cooper & istra to r of a S.S. FAWLEY Lybrand, where lending division. * * * he was a divi sional vice presi dent. Prior to Mark E. Frighetto has been pro that, he was di moted to vice president and compli v is io n a l v ic e ance officer at p r e sid e n t at J.R. LAFRENERE Community Decimus Corporation in Elk Grove Bank of EdgeVillage, a nationwide supplier of water. data processing services to financial Prior to join institutions. ing the bank, he * * * was a s sista n t vice president at First Colonial Bankshares has an M ichigan N a nounced that it intends to repur tio n a l B ank, Æ chase from time to time up to $3.5 where he also FRIGHETTO million of its own Class A common served as a com stock. mercial loan officer. ICBI Elects Officers at Convention Tory A. Campanella, president of The Northlake Bank, has been ap p o in ted ch ief operating offi cer, and William R. Duquaine, president of Co lonial Bank & Trust Company, has been named chairman and chief executive officer of The T.A. CAMPANELLA Northlake Bank. In addition, Mr. Duquaine and James P. Trunck, vice president of First Colonial Bankshares, have been elected to the bank’s board. * * * Laura L. Linhart has been ap pointed assistant vice president of teller operations at Ford City Bank & Trust Co. (Chicago and Burbank). She was most recently employed Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TTENDANCE records were broken at the Independent Community Banks in Illinois’ 12th annual convention and exposition held September 27-30 at the Ramada Renaissance Hotel and Prairie Capital Convention Center in Springfield. Nearly 400 bankers, spouses and exhibitors participated. Fred Paige, president, Farmers State Bank in Elmwood, was elected ICBI’s president at the associa tion’s annual business meeting held September 29. Elected first vice president of the ICBI was Dean Easton, president, Pontiac National Bank. Wilfred Cross, president, First National Bank of Oblong, was named Central Illinois regional vice president. John Crotty, senior vice president of cor respondent banking, Drovers Bank of Chicago, was re-elected Cook County regional vice president. James Caspary, president, First Na tional Bank, Clifton, was namedNorthern Illinois regional vice presi dent, and Ed Williams, president and CEO, Peoples National Bank, Lawrenceville, was elected Southern Illinois regional vice president. Marland Kelly, executive vice president, First National Bank, Sparta, was elected treasurer, and Darrel Hilst, executive vice president and trust ® officer, State Bank of Havana, main tains an active role on the executive board as immediate past president and chairman of the education com mittee. • Group chairmen th a t were appointed to the 1986-87 board of directors were: Anthony DeMaria, president, A ustin Bank, Chicago; John Ramey, president, Mt. Greenwood £ Bank, Chicago; William Stake, exec. v.p. & cashier, State Bank of Union; Robert Mar shall, president, Tonica State Bank; Joe Witte, exec, v.p., F irst T rust & Savings Bank, Watseka; Bob Beier, president, Farm ers & Miners Bank of Ladd; Dennis Neal, ex- £ ec. v.p., Havana National Bank; Ronald Lad ing, president, Strasburg S tate Bank; Wil liams Lykins, president, First National Bank, Raymond; Kenton Miller, exec, v.p., S tate Bank of Patoka; Lester Mittendorf, president, City National Bank, Metropolis; £ Mel Hebert, president, Crossroads Bank, Ef fingham. O ther board members include: Jerry Meyers, chairman, Hinckley State Bank; Jim Winningham, president, S tate Bank of Ar thur, and David Combs, president, F irst Na- £ tional Bank in Taylorville. 27 New London Bank Begins Expansion THE First State Bank of New London’s $2.5 million expansion of its main facility is expected to be finished in December 1987. HE First State Bank of New London has undertaken a $2.5 million expansion of its main office facility. Bank Building Corporation of St. Louis, Mo. will design and build the facility. The multi-phase expansion pro gram involves the demolition of an adjacent structure and construction of a new facility in its place. The ex isting 1909 main office facility will be totally renovated and both build ings will be tied visually and func tionally together into a single, 24,000 square foot building. The tra ditional two-story brick exterior will tie in strongly to the 1890-1920 vin tage downtown area of which it will be a prominent part. The renovation and expansion will allow First State Bank to pro vide more area for customer service. The new facility will give customers greater privacy in their transac tions, add over 600 safe deposit boxes and make available more space for computer operations. In addition, a special community ser vice area has been designed for the front of the bank. The new facility is T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis services and bank administration and performance. David C. Beck has been elected chairman and CEO of the corpora tion. He previously served as presi dent and CEO. He joined First In terstate in 1966 and was instrumen tal in the formation of the holding company in 1969. Richard D. Pauls has been elected chairman of the executive commit tee of the corporation. He will assume responsibility for the corpo ration’s new and non-traditional banking services, including the existing trust and insurance subsi diaries. He is also responsible for strategic planning and the corpora tion’s market planning, research and product development functions. He has been with First Interstate since 1967. R.D. PAULS H.G. WEBER Herbert G. Weber has been expected to accommodate the elected president and COO of First bank’s growth for at least the next Interstate Corporation of Wiscon sin. He previously served as execu 10 years. Demolition of the adjacent build tive vice president and chief finan ing began in August and the entire cial officer and has been with First project, including both the new Interstate since 1970. building and the renovation of the existing structure, is expected to be Joined in Menomonee Falls Alan W. Banach has joined F&M completed in December 1987. Bank Menomonee Falls as vice pres ident in the commercial department, First Interstate Corp. and Charles L. Vollmer has joined Realigns Sr. Management the bank as assistant vice president First Interstate Corporation of in the commercial department. Mr. Banach, prior to joining the Wisconsin has announced a realign bank, was with the Marine Bank ment of its se since 1973. Prior to joining the nior m a n a g e bank, Mr. Vollmer was with Capital ment in response Investments, Inc. of Milwaukee. to th e rapid growth of the Change in Spring Green com pany and The Bank of Spring Green has th e m ajor changed its name to “Valley Bank.” changes taking The change includes the adoption of place in the fi the Valley Bank logo designed for all nancial services banks affiliated with Valley Bancorindustry. D.C. BECK poration. The realign Currently, Valley Bancorporation ment will divide overall responsibili ty in the areas of corporate expan sion, the development and delivery WISCONSIN NEWS. . . of new and non-traditional banking (Turn to page 32, please) Northwestern Banker, December, 1986 28 FBS and TYME Announce Shared ATM Agreement will be held June 21-26, 1987 at St. Olaf College in Northfield. The com mercial lending school, also at St. Olaf, will be held August 9-14, 1987. The Midwest Banking Institute will be held July 19-24, 1987 at the Uni versity of Minnesota in Morris. Due to tremendous demand, it is suggested that applications be sub mitted as soon as possible. The February 1987 session of the MBA bank operations school at the Radisson Arrowwood Resort in Ale xandria is already full. However, ap plications for the 1988 session are now being accepted. The association’s newest school, the MBA compliance school, will be held March 25-27, 1987 at the Min neapolis Athletic Club. Details are currently being finalized and enroll ment will open soon. For more information on the banking schools, contact Wayne Berthiaume at (612) 338-7851. First Bank System and TYME Corporation have announced an agreement to share their respective automated teller machine networks. Effective December 1, 1986, the First Banks and FASTBANK mem ber banks who elect to participate can provide cardholder access to 702 TYME terminals in Wisconsin and Michigan. In addition, any TYME members who elected to do so can provide their cardholders access to 300 FASTBANK locations in Min nesota, North Dakota, South Dakota, Montana and Wisconsin. There are a p p ro x im a tely 1,000,000 cardholders in the FAST BANK network and 2,000,000 TYME cardholders. TYME Corporation, founded in 1975, was the first shared electro nics funds transfer system. The system now averages about two million transactions a month. TYME Corporation has 442 member Richfield Bank Introduces financial institutions. The FASTBANK network began New Service operations in 1978. Currently, the Richfield Bank and Trust Co. has ATMs handle about 1.1 million tran introduced a new service to consu sactions a month. FBS, which has mers called “One-Stop Banking.” sharing agreements with two other The service gives users access to a networks, is also a founding member wide range of banking services and one of 35 proprietary members through their telephones. who own the Plus System, Inc., an Using a tone-generating (touchinternational network of ATMs. tone) telephone, customers can ob One hundred sixty-five banks par tain account balances, find out what ticipate in the FASTBANK net checks have cleared and transfer work, including 79 First Banks funds between savings and checking located in M innesota, N orth accounts. They can also get current Dakota, South Dakota, Montana, interest rates paid by the bank, find Wisconsin, and Washington. out interest they’ve earned to date and verify their last deposits. The system uses a voice interface MBA Accepting Enrollments to link the customer’s telephone Enrollments are now being ac with the bank’s data system. cepted for the 1987 sessions of the Security in the use of the system Minnesota Bankers Association is provided by multiple levels of cus Minnesota School of Banking, com tomer codes to insure the privacy mercial lending school and the Mid and confidentiality of all transac west Banking Institute. tions. Consumers are invited by the The Minnesota School of Banking bank to call 861-1789 for a brief Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis demonstration of how the system works. Further consumer questions can be answered at 861-8380. The main reasons for the bank’s decision to proceed with the service were twofold. Improved productivi ty, in the form of reduced personhours spent answering balance in quiries, transfer requests, and check clearings, will result from the intro duction of the system. In addition, the bank’s main facil ity in Richfield has a heavy concen tration of customers over the age of 55. Telephone banking is seen as a very effective way to augment this segment with increased market penetration in the 25 to 45 age group, according to the bank’s vice president—marketing, James Ryan. The introduction is targeted first at existing customers in the balance of 1986 and the first quarter 1987 kick-off is aimed at non-customers. Direct mail will be the primary pro motional vehicle. Evaluation of the initial campaign response rate will be used to determine type and ex tent of on-going marketing efforts. Changes Told in St. Cloud Terry Kurowski has been named real estate department manager of Zapp National Bank, St. Cloud. He has been with the bank for three years. T. KUROWSKI R. EIYNK Randy Eiynk has been added as real estate mortgage lender at the bank. He was previously associated with Zapp Abstract and Title Com pany. Joined in Redwood Falls Norwest Bank Redwood Falls, N.A. has announced that Dean Bloemke has joined the bank as vice president, commercial loans. He has 13 years of lending experience. Prior to joining the bank, he spent the last 10 years with First National Bank of Waseca in a number of lend ing positions. ur family to yours, warmest wishes for a joyous holiday season. M l Marquette Bank m m Minneapolis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 First Bank System has elected M. Claire Canavan, senior vice presi dent of funds m a n a g e m e n t. She has been as so cia ted w ith the First Banks since 1976, when she joined First Bank Minneapo lis as a credit analyst. In 1977, she w as ap M.C. CANAVAN pointed commer cial banking representative and was promoted to commercial banking officer in 1978. In 1979, she joined the bank’s resources management/ strategic planning department and was promoted to assistant vice president of financial planning and systems in 1981 and to vice presi dent in 1983. She joined the metro treasury department of the capital markets group as vice president in 1984. She assumed responsibility for FBS’s fund management activi ties in March 1986. FBS also announced the following vice president appointments in its fund management departments. David R. Edstam has joined FBS as vice president of funding. He most recently served as manager of Bank of America’s global U.S. dollar interest rate swap group. Prior to that, he was associated with Seattle First National Bank where he man aged the money markets and trea sury department. Russell W. Swansen has joined FBS as vice president of investment portfolios. He was previously with Washington Square Capital in Min neapolis, where he served as vice president and portfolio manager. Prior to that time, he served as an investment officer for First Bank Minneapolis. Joseph M. Ulrey, III has been pro Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis moted to vice president of asset/liability management. He most recent ly was assistant vice president of funds management planning and analysis for FBS. He had served as an analyst in the asset/liability man agement area in the company metro politan financial planning and analy sis department. He has been asso ciated with FBS since 1981. * * * American National Bank of Saint Paul has announced the promotions and additions of staff to its bank. R.L. NELSON R. FLESVIG Robert Nelson has been promoted to senior vice president and will assume responsibility for overall group management of the commer cial division and the international division, along with his current re sponsibilities of construction air craft, sales finance and leasing. He will serve on the policy and planning committee and on the executive credit committee. He joined the bank in 1979. Richard Flesvig has been pro moted to vice president of credit ad ministration. He will chair the se nior credit committee and will be a member of the executive credit com mittee. He joined the bank in 1985 and has been a vice president in the correspondent division. Edwin J. Malloy joins the bank as assistant vice president in the execu tive and professional banking de partment. He previously was a branch manager for First Minnesota Savings Bank. Joining the bank as a trust officer with responsibility for employee benefits plan administration, is ^ Debra L. Rusch. She was previously employed by Richfield Bank & Trust in a variety of employee benefits ad ministrative positions. * * * Western Insurance Agency of St. Paul has acquired the Keller Insur ance Agency of Roseville. The new agency, which will be called Western/Keller Insurance Agency, is leas ing 1,200 square feet of space in the Western Bank Building at 1740 Rice St. in Maplewood. The agency has six full-time employees. In particular, Duane States and Bob Pagel, principals of the Kel ler Insurance Agency, bring a com bined 51 years of experience to the new agency. Western/Keller Insurance Agency is affiliated with Western Bank of St. Paul, a full-service bank with of fices in St. Paul, Maplewood and Oakdale. W estern Bank was founded in 1915 and has total assets of $75 million. * * * The First Bank- of Minnesota, West St. Paul, is now the First Na tional Bank of West St. Paul follow ing approval of the Comptroller of the Currency for a national bank charter. The bank was organized as a state chartered institution in 1923 and operated as the West St. Paul State Bank until its name was changed two years ago to the First Bank of Minnesota, West St. Paul. The two detached facilities lo cated at 918 S. Robert St. and 1025 Dodd Road will continue to offer the same banking services with the same personnel. The main office of ^ £ 0 # # • • ^ * A1 Rustan is a smart banker. The performance of the three North Dakota banks in his holding company, American State Bank and Trust of Dickinson, American State Bank of Kdldeer, and American State Bank of New England, proves that point. And Al knows a value when he sees one. That’s why American National Bank of Saint Paul is his correspondent partner for every settlement service for each of his banks. For Al, the value is not just the profit that American’s cash letter, early funds availablity, ACH, wire transfer and other services add to the bottom line. It’s the people and expertise behind the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis services. Al knows he can call on American correspondent bankers Bob Jacobson and John Seidel at anytime to get advice, solve a problem or answer a question. And Bob and John are a value no other correspondent can deliver. If you re looking for a transaction settlement correspondent that delivers more, perhaps it’s time for a change. A M E R I C A N N A T I O N A L B A N K . S A I N T P A U L 32 Minnesota News the bank, which was recently reno vated, is located at 66 E. Thompson Ave., West St. Paul. * * * The First Banks have promoted the following to vice president sta tus: Catherine P. Dudley and Chris tina M. Kennedy, human resources services; Michael M. Fordney, spe cial loans—commercial; Holland E. Glessing, wholesale/retail; Beth A. Gloppen, commercial loan opera tions; Marilyn A. Grochala, financial institutions; Peter W. Kooman, na tional east division, and Barton D. Warren, national west division. has maintained this commitment to assist small arts groups in a time of • declining support for their activi ties. Elected in Red Wing Paul W. Maahs has been elected ® consumer loan officer at Norwest Bank Red Wing, N.A. He joins the bank from Norwest Bank LaCrosse, N.A., where he held the same posi- ^ tion. Before joining Norwest in 1984 ^ in St. Paul, he began his career with a national consumer financial cor poration. Appointed in Bloomington P.W. KOOMAN B.D. WARREN as an assistant vice president in the national central division, had been an assistant vice president in the na tional west division since 1983. * * * M.M. FORDNEY R.E. GLESSING Ms. Dudley joined the bank in 1964 and had been an assistant vice president and manager in human re sources since 1984. Ms. Kennedy joined the bank in 1985 as an assis tant vice president and human re sources manager. Mr. Fordney has been an assis tant vice president in natural re sources since 1984. Mr. Glessing, who joined the bank in 1979, had been an assistant vice president in the retail/wholesale division since 1982. Ms. Gloppen, who joined the bank in 1979, had been an assistant vice president in commercial loan opera tions since 1984. Ms. Grochala joined the bank in 1979 and had been an assistant vice president in the financial institutions division since 1984. Mr. Kooman joined the bank in 1984 as an assistant vice president in the national east division. Mr. Warren, who joined the bank in 1981 Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St. Anthony Park State Bank has announced the election of Ross G. Kroeber as a new a ssista n t vice president. His banking career began at Community Na tional Bank of Grand Forks, N.D., where he worked in the in stallment lend ing department. Previously, he worked as an agricul tural loan officer with the Bremer Bank System, and most recently worked as a commercial loan officer at Northeast State Bank of Minnea polis. A.L. Maxson has been appointed to the board of MetroBank Bloom ington—Minneapolis—Airport. He is vice president for Northwest Airlines. WISCONSIN NEWS. . . (Continued from page 27) consists of 33 member banks with 75 service locations throughout Wis consin. Westby Bk. Shares Acquired William H. Rodd, chairman and CEO of Central Wisconsin Bankshares, Inc., a multi-bank holding company, headquartered in Wausau, and Lincoln V. Knutson, president of Westby-Coon Valley State Bank, Westby, announced that approval had been received from the Federal Reserve Bank, for Central Wiscon sin Bankshares, Inc. to acquire ap proximately 65% of the outstanding shares of the bank. The transaction is now subject to approval from a customary Justice Department re view and is expected to be com pleted by December 31, 1986. Total assets of the bank as of Sep * * * tember 30, 1986, were approximateFirst Bank System Foundation ly $45 million. On the same date, has announced that 34 Twin Cities Central Wisconsin Bankshares, Inc. arts organizations will receive had total assets of $704 million. This acquisition brings the total $85,000 in grants through its 1986-87 Small Arts Funding Pro banking affiliates of Central Wiscongram. The groups represent dance, sin Bankshares, Inc. to 14 with 31 music, theater, literary arts, visual locations throughout northern, arts and arts service organizations western and central Wisconsin. In and have operating budgets of under addition, plans for the affiliation of $400,000. The program was de the Bank of Plover, were announced veloped to acknowledge the signifi in early September, 1986. It is anti cance of small and medium-sized cipated that this acquisition will be arts organizations in the community completed in the first quarter of 1987, with consolidated assets ap as well as their artistic excellence. Since 1982, First Bank System proaching $800 million. 0 ($ # • • ^ ^ 33 Beresford Bank Acquires Seven Norwest Branches At closing ceremonies November 1 in Sioux Falls, First National Bank of Beresford completed the purchase of seven branches from N orw est Bank South Da kota. The agree ment to sell the bran ch es had been announced last January by F. FARRAR Norwest Corpo ration at the same time it announced the sale of eight of its banks in southern Minnesota. Regulatory ap proval was received in October. The offices purchased by First National Bank of Beresford are in Bristol, Britton, Hecla, Lake Pres ton, Newell, Parker and Springfield. First National Bank is owned by Frank Farrar, former Governor of South Dakota, who resides in Brit ton. Mr. Farrar owns banks in India na, Illinois, Kansas, Minnesota, Montana, North Dakota, South Da kota and Wyoming. Closing formalities for the sale, ef fective November 1, took place at Sioux Falls headquarters of Nor west Bank South Dakota, which now has 33 branches in 21 South Dakota communities. On the September 30 call date, the seven branches had total deposits of $58 million and 40 employees. When the sale agreement was an nounced last January, Lloyd P. Johnson, chairman, president and CEO of Norwest Corporation, Min neapolis, said the decision to sell the seven branches and eight banks was made because “we concluded that we simply have more banks than we need in these areas.” Mr. Farrar indicated at the time of the January announcement his in tention to keep existing staff and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and promoted to assistant vice president and retail banking man ager in 1983. Thomas L. Flynn has been elected assistant vice president of First Bank Rapid City. He joins First Bank of South Dakota after serving as the controller for Oklahoma Type writer Company, Inc. He brings with him five years of banking ex perience he gained while employed with First National Bank and Trust Company in Oklahoma City, Okla. Carol J. Rysavy has been named management personnel at the seven assistant vice president, trust ser branches. Norwest Corporation now has vices division, Sioux Falls. She $19.6 billion assets with 77 commer joined the trust department in 1969 cial banks and several specialized and most recently served as opera financial companies operating in 44 tions officer, a position she con tinues to hold. states and internationally. At First Bank Aberdeen, Bruce J. Haerter has been elected assistant Norwest Elects President vice president, and David A. RozenNorwest Corporation has an boom agricultural loan officer. Mr. nounced that Gary G. Olson has Haerter joined the bank in 1977 and been e le c te d was elected an installment loan of president of Nor ficer in 1980. Mr. Rozenboom joined west Bank South the bank in 1985, entering the entry Dakota, Sioux level professional development pro Falls. He was gram, and was promoted to an agri vice chairman. cultural loan representative earlier C .P. “ B u c k ” this year. Moore, who was president, con Norwest Ag Credit tinues as chair man and CEO. President Named Mr. O lson Norwest Corporation has named joined Norwest in 1963 at Norwest Don C. Anderson as president and Bank Huron. Since then he has chief operating served as branch administrator in officer of Nor the Sioux Falls branch system and, w est A g ricu l from 1982 to 1984, as president of tu ra l C redit, Norwest Bank Aberdeen. He re Inc., Sioux Falls. turned to Sioux Falls as vice chair He was senior man of Norwest Bank South Dakota vice president in 1985 when all Norwest banks in and agricultural the state were consolidated into a b u sin e ss s e g statewide bank. ment manager A native of Huron, Mr. Olson is a for N o rw est graduate of South Dakota Univer Bank South Da sity in Brookings, the Midwest kota. School of Banking and the Graduate C.P. “Buck” Moore, regional School of Banking in Wisconsin. president for Norwest banks in South Dakota and Montana, con tinues as chairman of Norwest Agri First Bank Announces cultural Credit. Staff Elections Headquartered in Sioux Falls, The board of First Bank of South Norwest Agricultural Credit has Dakota (National Association) has lending offices in Spencer, la.; Fair announced a number of staff elec mont, Minn., and Lexington and York, Neb. It is funded by Norwest tions. John R. Eikanger has been Corporation to supplement credit elected vice president, First Bank available to agricultural producers Madison. He joined the bank in 1979 and agri-businesses from Norwest as a management associate, was banks. Mr. Anderson joined Norwest in elected a loan officer a year later, Northwestern Banker, December, 1986 34 1974 at Norwest Bank Aberdeen fol lowing nine years as a cattle buyer with George A. Hormel & Co. in Minnesota, Montana, Nebraska, Ok lahoma and South Dakota. He moved to Sioux Falls in 1983 as executive vice president in charge of branch administration at Norwest Bank Sioux Falls. Following the consolidation of Norwest’s South Dakota banks in 1984, he was named senior vice president and agricultural business segm ent manager of the statewide bank. ing experience working at the Americana State Bank of Clara City, Minn. NABW Officers Elected The following have been elected the 1986-87 state officers for the South Dakota National Association of Bank Women: President—Patri cia Waring, Norwest Bank South Dakota, N.A., Sioux Falls; Vice President—Denise LaRue, First Western Bank, Sturgis; State Con ference Chair—JoAnne Fenner, First Bank of South Dakota, Rapid City; Membership Chair—Sue Tower, Citibank South Dakota, N.A., Sioux Falls; Scholarship and Awards Chair—Crystal Fedders, First National Bank in Sioux Falls; Public Affairs Chair—Laurel Mer rick, Norwest Capital Management & Trust Co., South Dakota, Sioux Falls, and Education and Training Chair—Ruth Ann Dannenbring, First Dakota National Bank, Yank ton. ^ * ^ ^ ^ Huron Bank Names V.P. David L. DeVos has been named vice president and manager, farm loan department, for Farmers & Merchants Bank, Huron. He fills the position previously held by Lynn V. Schneider, who was promoted to president recently. Mr. DeVos joins the bank after 12 years with the Farm Credit System, most recently as regional vice presi dent with the Watertown Regional Farm Credit Banks of Omaha, Neb. Norwest Changes Told The following staff changes have been announced by Norwest Bank South Dakota, N.A. Michael Turnwall, personal bank ing officer in Chamberlain, has been named trust officer in Aberdeen. A1 Westra of the Gregory branch has been named ag banking officer in Mitchell. Mr. Turnwall joined Norwest in 1979 in Chamberlain. Mr. Westra joined Norwest in Gregory in 1985. NDBA Offers Three Training Rental Programs The North Dakota Bankers Asso ciation has recently signed an agree ment with Bankers Video Service of Cedar Rapids, la., to make available to NDBA member banks, at a re duced fee, a subscription rental pro gram that includes tapes for train ing, marketing and information. The training programs included in this service focus on a number of im portant areas. The video based cus tomer education programs are de signed to help sell banking products and services through play in high NABW Elects Officers traffic libraries or in special cus The Sunrise Chapter of the Na tomer education seminars. The other subscription service tional Association of Bank Women has elected its officers for the NDBA offers is Bancvideo, a train 1986-87 fiscal year. Elected are: ing and consulting company for President—Linda Shane, Citibank, bankers that was organized by N.A., Sioux Falls; Vice President— former banker Lawrence Darby. Through the efforts of NDBA and Vicki Sieck, Norwest, Sioux Falls; Secretary—Colleen Dather, United other state bankers associations, the National Bank, Sioux Falls, and ABA BANCTRAINING Video Sys Treasurer—Jo Ann Oyen, First Na tem now offers tapes on a rental sub scription plan. Available in this ren tional Bank, Sioux Falls. tal program are 35 video classes covering all facets of banking. Joined in Milbank The NDBA has preview tapes Lon S. Oyster has joined the staff available for Bankers Video Service, of Dakota State Bank of Milbank as BancVideo and BANCTRAINING. assistant vice president and ag rep If you wish to preview these tapes before subscribing, please contact resentative. He has more than four years lend- the NDBA office. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FBS Appoints Two ^ Two staff appointments have been made at the North Dakota Region for First Bank System, Fargo. Joni B. Bertel and Thomas K. m Persson have been named regional credit analysts for First Bank Sys tem. Ms. Bertel was previously a credit review analyst for First Bank Fargo 0 this past year. Prior to that, she was a commercial lending associate at Continental Illinois Bank in Chi cago. Mr. Persson was previously em- ( | ployed as a national bank examiner for the Comptroller of the Currency, and prior to joining FBS worked as a financial consultant for a Fargo firm. Registration Opens For the fourth consecutive year, NDBA member bankers will be able to attend the Minnesota Commer cial Lending School to be held Aug ust 9-14, 1987, at St. Olaf College, Northfield, Minn. The openings for NDBA member banks are limited and will be filled on a first-reserved basis. Applica tions should be submitted directly to the Minnesota Bankers Association. ® ^ ^ ** 35 for the National Association of Bank Women. She was installed dur ing NABW’s recent 64th annual convention held in Las Vegas, Nev. Two Elected in Billings MBA Approves Ad Campaign The Montana Bankers Associa tion board of directors, by conferd ence call, has approved a $100,000 television and print advertising campaign to be run in two flights. The first was scheduled for late Oc tober. 0 The decision follows a showing of the proposed commercials to ap proximately half the membership at tending a series of eight area meet ings held recently. 0)i An overwhelming majority (near ly unanimous) approved the adver tising campaign and the assessment of the banks. The board approved an assessment of $100 minimum for 01» each bank plus $13 per million in total resources as of December 31, 1985. Elected in Billings First Interstate Bank of Billings, N.A. recently announced the elec tion of Kathy A. Maier as residential mortgage loan officer. She began work with Lomas & Nettleton Co. and Mid-Montana Ti tle and American Title & Escrow as a loan originator, loan closer and escrow secretary. She most recently worked in all areas of real estate lending with a Billings bank, prior to her recent promotion with First Interstate. Norwest Bank Billings has named two new members to its board of directors. Elected were Bruce H. Carpenter, president of Eastern Montana Col lege at Billings, and Raymond M. Hart, president of the Hart-Albin Company of Billings. Appointed in Great Falls Karen B. Hudson has been ap pointed assistant vice president and trust officer of First Interstate Bank of Great Falls. She will m an age th e tr u s t d e p a r t ment. Most recently, she served as NABW Elects Director tr u s t o ffice r Barbara Bruskotter, vice presi w ith N orw est K.B. HUDSON dent, First Banks—Missoula, Mis Capital Manage soula, has been elected national ment. Prior to that, she was a pro director of the Northwestern region curement officer for Boeing. serve as chairman of the bank’s board. He retired from “daily management’’ of the bank. Elected president in 1965, he became CEO in 1967. In 1983, he was named chairman. Mrs. Naramore has been a vice president of the bank since 1969. Named in N. Cheyenne Elected in Casper Richard I. Niedling has been elected as executive vice president in charge of the lending division of First Inter state Bank of Casper. He will oversee all con sumer and com mercial lending activities for the bank. Prior to this R.l. NIEDLING p o sitio n , Mr. Niedling served as executive vice president of First Interstate Bank of Lea County in Hobbs, N.M. He has https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis over nine years of lending experi ence. Pres. Named in Laramie Citizens Bank, Laramie, has an nounced the election of James E. Cowan as president. Prior to his ap pointment, he was executive vice p resid en t at N o rw est Bank Cheyenne. Gary L. Parmele has been named executive vice president and senior loan officer at First Wyoming Bank—North Cheyenne. He brings with him 15 years of banking ex perience. Payoff Approved in Baggs The board of the FDIC has ap proved paying off insured deposi tors in Valley State Bank, Baggs. The bank, which had total assets of $4.2 million, was closed October 17 by W yoming State Examiner Two Retire in Gillette Stanley R. Hunt and the FDIC Kenneth Naramore, chairman, named receiver. Deposits in Valley State Bank Stockmen’s Bank and Trust Com pany, Gillette has retired. His wife, amounted to about $4 million in Helen, vice president of Stockmen’s, 1,900 accounts, including $2,300 in four accounts that exceeded the has also retired. Mr. Naramore will continue to federal insurance limit of $100,000. Northwestern Banker, December, 1986 36 Central Bancorp. Announces Senior Executive Posts A number of executives have been elected to senior management posi tions at Central Bancorporation. The positions re flect the new cor porate structure announced in August. D on ald D. H offm an con tinues as chair man and CEO of Central Bancor poration. He also serves as chairman and CEO of the corporation’s lead bank, Central Bank of Denver. Robert A. Krane continues as president, COO and director of the corporation. Joseph R. Lincoln has been elected executive vice president. He is re sponsible for the division comprised of all the affiliate banks within the holding company. In addition, he continues as president and COO of Central Bank of Denver. He has been involved in banking for 36 years. J.B. OSBOURN trust officer and senior vice presi dent, trust group, Central Bank of Denver. Harlan L. Pepper has been elected vice president responsible for the in vestment services strategic busi ness unit. He continues as senior vice president, investment and funds division, Central Bank of Den ver. Elected vice president of Central Bancorporation, Donald H. EchterCharles A. Drummond has been meyer will have responsibility for elected senior vice president respon Division I, which includes the Cen sible for the retail financial services tral Banks of Academy Boulevard, strategic business unit. He con Chapel Hills, Colorado Springs, tinues as senior vice president, retail Garden of the Gods, Greeley, Pueblo banking division, Central Bank of and Rocky Ford. He has 27 years of Denver. His banking career involves banking experience. 23 years experience. George G. Patterson has been elected senior vice president and chief administrative officer. Pre viously, he served as executive vice president, administration support group, Central Bank of Denver. He has more than 25 years of banking experience. D.H. ECHTERMEYER Also elected vice president of the corporation, John M. Stafford will have responsibility for Division II, which includes the Central Banks of Aurora, Chatfield, East Aurora and Inverness and the First National Banks in Craig and Grand Junction. G.G. PATTERSON R.L. KROPF Robert L. Kropf has been elected senior vice president, credit adminis tration. He has served as vice presi dent, credit administration, Central Bancorporation and as director, se nior vice president and manager of the banking department of Colorado National Bank during his 27-year banking career. C.A. DRUMMOND James B. Osbourn has been elected senior vice president, respon sible for the commercial financial services strategic business unit. He continues as executive vice presi dent, loan administration group and director for Central Bank of Denver. His 33-year banking career spans a wide range of management responsi bilities. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J.M. STAFFORD D.J. HORST H.L. PEPPER Elected vice president for the trust services strategic business unit is Donald J. Horst. With 25 years of banking experience, he is J.E. BUSH G. PRYOR John E. Bush has been elected vice president, general counsel and secretary. He remains as senior vice president, general counsel and secre tary of Central Bank of Denver. Gary Pryor has been elected vice president, loan control. Before com ing to Central Bancorporation in 1986, he served as senior vice presi dent and credit officer and vice president, loan quality control, for Boatmen’s Bank in Kansas City, Mo. Merial I. Currier continues as audit director, a position she has held since 1985. Colorado News Several Named at First Interstate of Denver First Interstate Bank of Denver has announced a number of staff ap pointments. ® Frank J. Brainerd has been ap pointed senior vice president and general counsel. He had been senior vice president and legal counsel for Colorado National Bankshares, Inc. ® before joining the bank. He replaces David Butler who has been the bank’s general counsel since 1984. Mr. Butler has returned to private practice. ™ The bank has promoted the fol lowing nine bank officers to vice president status: Frances E. Draper, planning and analysis; Donald L. _ Grant, commercial finance support; 9 Cynthia L. Knutson, human re sources - education and develop ment; Mary D. Maguire, real estate; Darlene D. Romero, investment ^ banking; Richard J. Sullivan, trust v banking; Adilberto (Bert) Torres, Jr., human resources; Anne D. Warhover, credit, and Gordon C. Willis, private bank and trust. Promotions Told in Denver Central Bank of Denver has pro moted one employee to vice presi dent, two to as sistant vice pres idents and two to officers. Garth S. Gib son has been promoted to vice president in the retail banking area. He joined the bank in 1981 G.S. GIBSON as a product de velopment analyst and has served in a number of bank departments. Promoted to assista n t vice presidents were Donna Scarpella and Margie M. Walker. Ms. Scar pella joined the bank in 1973. She has held several positions including pension trust officer and trust operations. Ms. Walker has served as internal audit senior, corporate trust administration and corporate trust officer since joining the bank in 1982. Julie C. Gorman has been pro BANK PROMOTION. . . (Continued from page 17) ing itself, “germ-free air, and music by Muzak.” The night depository was big news, and in 1951 Peoples Bank & Trust of Cedar Rapids promoted “motor bank ing 24 hours a day”—probably without dreaming of the era when 24 hour banking would mean withdrawals as well as deposits. ® The motor banking craze was a grand opportunity for innovation. Perhaps the ultimate in auto banking, ambitious if not very popular, was the “Roto-Bank” developed by New York-based Marine Midland Trust. _ To cope with traffic and high land cost, the company ^ contracted with a turntable manufacturer to build giant rotating platforms to hold teller windows and cars. A bank could use the idea by paying Marine Midland one cent for every car which stopped at its m Roto-Bank. The four-car size was available for • $35,000. A 1960 survey by the Financial Public Relations As sociation (predecessor to the Bank Marketing Associa tion) showed a $20 to $50 million bank would spend ^ $6,300 to $61,100 per year on advertising. Many PR advisers complained that compared to other indus tries, banking was spending far too little. Statistics tended to confirm this; only 25% of Americans had checking or savings accounts. Some of the state asso£ ciations tackled the problem by starting state-wide promotions of the industry. Banks made more of an ef fort to be available to the public, with programs like “in-plant banking,” when a credit representative would go into a place of business to make loans to ^ employees. Ads tried to avoid technical terms and tended toward the cute and clever. ® https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 moted to commercial loan officer. The bank’s new corporate trust officer is Tamara L. Nelson, who joined the bank in 1980. Changes Told in Loveland Lee Tedesco and Allan J. Becker have been named vice presidents of The Home State Bank, Loveland. Both commercial loan officers, Mr. Tedesco has been with the bank for five years, and Mr. Becker for four years. Sandra Lafferty and Paul Wood have been appointed assistant cash iers. Ms. Lafferty has been em ployed with the bank for 12 years. Mr. Wood has been an employee for eight years. Carl Scholtz, an employee for five years, is now installment loan coun selor. In addition, Marlyn Gerken, se nior vice president, has retired after 16 years in the commercial loan de partment. He will continue to serve on the board. Raymond Golgart, vice president, has retired after 12 years with the bank. Specialty Gifts Take Over If there was a sixties promotional fad, it was the use of specialty gifts: calendars, maps, combs, match books, blotters, and so on. A “Pay by Pen” promotion offered free pens and encouragement to pay bills by check. An Ohio bank was nationally recognized for its offer of mink-covered checkbooks. A possible later off shoot of this was yet another technique to recruit sav ings accounts—the offer of premium gifts of value pro portionate to the deposit. A hope chest could be neatly outfitted with the cookbooks, electric blankets, and blenders earned by opening new accounts. Of course, the medium of television was a new field for marketing. A bold approach was taken in 1960 by 56 banks in Iowa, South Dakota and Nebraska, who joined together for a year-long TV campaign. They purchased slots on KVTV in Sioux City, during a news program and the show “Tombstone Territory.” The commercials featured general information on banking as well as a rotation of slides of the banks, identifying each one every two and a half weeks. But TV still came in last in use of media in the 1965 FPRA survey, which showed newspapers and calen dars as first and second choice. The survey also showed 92% of banks over $50 million used ag agen cies, and the money spent on marketing by banks was ten times greater than in 1946. Thirty-five years after the invention of the RotoBank, life is more complicated, the consumer is more shrewd, and banking is more competitive than ever. Whereas not so long ago, one in 20 Americans used the services of a bank, this age of the ATM and POS is quite different. The challenge of bank promotion beyond the eighties will test the ingenuity of the in dustry, which, up till now, has been more than ade quate for the task. □ Northwestern Banker, December, 1986 38 L e ft to r i g h t : L o r e n R . A n d e r s o n , E x e c u tiv e V ice P r e s i d e n t, A d m in is tr a tiv e S e rv ic e s ; R o y M . O tte , V ice P r e s i d e n t, B a n k I n v e s tm e n ts D iv isio n ; M ik e J a c o b s o n , V ice P r e s i d e n t, C o r r e s p o n d e n t L o a n D iv isio n ; D e n n is H . S te lz e r, P r e s i d e n t, N B C /C o m p u te r S e rv ic e s D iv isio n ; T h o m a s E . H e n n i n g , P r e s i d e n t, NBC. Our people set us apart from other correspondent banks. At NBC, you’ll find more than just a full range of corre spondent banking services. You’ll also discover a staff of ex perienced, capable, dedicated professionals who are anxious to serve you. Who are proven performers, with a strong h is tory of helping banks meet their correspondent needs. Who to gether make NBC a leader in, and your best choice for, corre spondent banking services. Call NBC today! And put us to work for you! NBC National B an k of Commerce NBC C enter, 13th & O S tr e e t, L in coln , N eb ra sk a 6 8 5 0 8 ( 4 0 2 )4 7 2 -4 1 1 5 M EM BER F.D.I.C. /^^¡x Vbank7« Northwestern Banker. December. 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 named assistant vice president and trust officer at the bank. Named in Ogallala Pres. Elected in Kearney Don Kearney has been elected president and trust officer of Platte Valley State Bank and Trust, Kear ney. He replaces Norman Schmidt, who passed away Sept. 16 after an extended illness. Mr. Kearney most recently was in charge of special projects for Hawkeye Bancorporation in Des Moines. Prior to th a t' he was senior vice president of Bankers Trust Com pany of Des Moines and president of Union Story Trust and Savings Bank in Ames, la. He was vice presi dent of Elm Creek State Bank 21 years ago. In addition to being president of Platte Valley State Bank and Trust and all its subsidiaries, Mr. Kearney will be responsible for the total lend ing function of the institution. First State Scottsbluff Assumes Bank of Gering The Federal Deposit Insurance Corporation has approved the as sumption of the deposit liabilities of Bank of Gering, Gering, by First State Bank, Scottsbluff. The failed bank's only office reopened on Oct. 24 as a branch of First State Bank and its depositors automatically be came depositors of the assuming bank, subject to approval by the ap propriate court. Bank of Gering, with total assets of $20.9 million, was closed on Oct. 23 by James C. Barbee, Nebraska Director of Banking and Finance, and the FDIC was named receiver. According to Mr. Barbee, the failure was a result of liberal lending poli cies, ineffective management, and a depressed agricultural economy. First State Bank assumed about $20.4 million in 3,800 deposit ac counts and agreed to pay the FDIC a purchase premium of $30,000. It also purchased certain of the failed bank’s loans and other assets for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Stephen Shull has been named manager of the consumer loan department at the First National Bank of Ogallala. He was consumer loan officer at N o rw est Bank N eb raska at Hastings and was associated with that bank for eight years. Prior to that he was with Dial Finance Cor $13.1 million. To facilitate the trans poration at Hastings and Council action, the FDIC advanced $7.2 mil Bluffs and Fort Dodge, la. for four lion to the assuming bank and re years. tained assets of the failed bank with a book value of about $7.8 million. NBA Receives Award for PEP Program Joined in Kearney Alan A. Hans has joined the Kearney State Bank and Trust Com The Nebraska Bankers Associa pany as a loan tion was one of four state banking officer. He will be di organizations honored recently by the American Bankers Association rectly involved for its commitment to improved in the consumer economic education through the Per loan area of the bank. His pre sonal Economics Program (PEP). The Nebraska PEP program re vious experience ceived the ABA’s first annual Ser was at the First vice Award, based on an evaluation National Bank A.A. HANS of its delivery system, administra and Trust Comtive support and participation, pany of North banker involvement, and overall ef Platte as a consumer loan officer. fort. According to C.G. “Kelly” Holthus, president of the NBA, nearly 5,000 Nebraska students were ex Scottsbluff National Buys posed to the Personal Economics Building in Gering Program last year across the state, Scottsbluff National Bank and receiving banker instruction on a Trust Company has purchased the variety of topics. Some 75 bankers building housing the bank’s Gering took part in the voluntary program branch at 1600 10th Street in Ger last year. ing. The bank has been operating out of the facility since its assump tion of the former Gering National Harvard E.V.P. Dies Bank on July 31. Scottsbluff National Bank pur Gerald D. Stahl, former executive vice president of Harvard State chased the Gering branch facility Bank, has died at the age of 67. He after reaching an agreement on had been with the bank since 1954 terms of the purchase with the FDIC. According to Executive Vice and retired in 1984. President Don Smith, who is also managing officer in Gering, the fa Changes Told in Fremont cility will remain a full-service bank. H.W. “Bud” Hendriksen has re tired as president of First National Bank & Trust Co., Fremont. He will continue as a member of the bank’s Added in O’Neill Verlin J. “Gus” Barker has joined board and the bank’s trust and audit committee and will maintain an of the First National Bank of O’Neill as vice president/ag loans. Prior to fice at the bank. Succeeding Mr. Hendriksen as joining the First National Bank, he was vice president of the First State president is James A. Hansen. In addition, Jeff Hores has been Bank of Gowrie, la. Northwestern Banker, December, 1986 40 John Woods, chairman of the board of FirsTier, Inc., has an nounced his resignation. He has served as chairman for the last 10 years and was instrumental in the formation of FirsTier, Inc., which included the merger of the Omaha National Bank and the First National Bank of Lincoln. Mr. Woods said he will devote his time to pursue other activities. Succeeding Mr. Woods is Charles W. Durham. He will remain chair man of the holding company until a replacement is found and certain other activities of the bank restruc tured. Mr. Durham has been a director of the FirsTier Bank of Omaha and FirsTier holding company for the last 17 years. He is chairman of Durham Resources, a holding com pany with interests in public utili ties, real estate, banking and invest ment banking. They are: Laddie J. Kozeny, Omaha, a 65 year employee of Pack ers Bank, who will also serve the board as chairman emeritus; Donald E. Dworak, and James R. Riha, who both serve Packers Bank as execu tive vice presidents; Rudy F. Stovsich, Omaha; Paul E. Chatelain, Bellwood; R.A. Anderson, Hordville, and Douglas A. Friedli, Lyons. In a joint statement, Mr. Kohout and Mr. Vandeberg emphasized the new board’s mission, which is for Packers Bank to remain active as a correspondent bank, to become “the premier financial institution in South Omaha,” and to expand its presence in the entire Omaha finan cial market. They stated that no staff changes were planned at this time. man of the bank’s newly-formed ex ecutive committee, and chairman of Kearney Bank Board the loan committee. Begins 7th Year The Kearney State Bank and Trust Company student board of directors has elected a new chair man, Kevin McKenzie, a senior at Kearney Catholic High School. Dan Domandle, a junior at KCHS has been named vice chairman, and Susan Sidner, a Kearney High »H l School senior, will be secretary for E.A. KOHOUT R.P. VANDEBERG the eight-member board which Mr. Kohout has held senior posi serves through December 1986. Rounding out the board are junior tions with Omaha National Bank (now FirsTier Bank Omaha), Nor- Vilma Rodriquez and senior Penny west Bank South Omaha, and Nor- Smyth of KCHS, juniors Christa west Bank Nebraska. He has over Boroff and Todd Holt, and senior Rich Cady, all of KHS. 30 years of banking experience. The student board will be in Mr. Vandeberg has held positions with United Missouri Bank of Kan volved in the bank’s customer rela sas City, Mo.; National Bank of tions and marketing programs and Commerce, Lincoln; and presently is will act as a sounding board in the president and CEO of First National bank’s future activities. * * * Bank and Trust Company, Falls City. He has more than 30 years of NBA Videotape Library banking experience. Duane W. Acklie of Lincoln has Mr. Acklie also announced the Offers New Tapes announced the completion, through election of nine new directors of The Nebraska Bankers Associa his group of investors, of his offer to Packers Bank and Trust Company. tion videotape library has once purchase stock of Packers Bank and They are: Pennie Z. Davis, H. again increased the variety of tapes Trust Company, Omaha. The offer, Douglas Riley, Ben Butler, and Clar offered to members for use in the inwhich was subject to regulatory ap ence L. Werner, all of Omaha; D.L. house training of employees. proval by the Federal Reserve Sys Sommerhalder, Lincoln; James M. The NBA library is offering NBA tem, was made on July 10, 1986 and Wolf, Albion; Thomas E. Wolf, member banks one free tape use concluded on September 8. Regula North Bend; Dwight L. Clements, with any new enrollment. Then, for tory approval was granted on Octo Elmwood, and Mr. Acklie. every 12 or more tapes used in a oneber 15. Remaining directors are Paul L. year period, a $50 credit certificate, Long-time Omaha banker, Ed Merker, Omaha; Tonn M. Ostergard, which can be applied to the next ward A. Kohout, was recently Lincoln; Mr. Kohout; and Mr. Van renewal year or toward the use of named president and CEO of Pack deberg. two tapes in the next renewal year, ers Bank and Trust Company. Rod Mr. Acklie also announced the ap will be awarded. ney P. Vandeberg of Falls City, was pointment of seven advisory direc For more information contact the named chairman of the board, chair tors. NBA office at (402) 474-1555. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i t 41 A Anchormen, Change comes fast in today’s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to Cali them toll-free — in dependably and consistently Nebraska 1-800-642-9907; outside meeting all your correspondent Nebraska, 1-800-228-9533. banking needs. And the faster things change, the faster the anchormen respond — with the latest financial technology at their fingertips and the historic financial strength of First National of omaha Bank of Omaha at their disposal — one first national center, omaha, nebraska 68102 for you. member FDIC • 341 -0600 © firs! national bank Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1986 42 Nebraska News THE 1986-87 NIBA officers are, from left to right: Past Pres.—Fred Often, pres., Commercial State Bk., Hoskins; Pres.—Roy Yaley, pres., Neb. State Bk., South Sioux City; 1st V.P.— Jim Bohart, v.p. & cash., Harvard State Bk.; 2nd V.P.—Bill McQuillan, exec. v.p. & cash., City Natl. Bk., Greeley; Treas.—Robert C. Fricke, v.p. & cash., Farmers & Merchants Natl. Bk., Ashland, and Exec. V.P.—Kurt Yost. Missing from the picture is NIBA Sec.—J. William Henry, exec, v.p., 1st Natl. Bk., Omaha. Nebraska’s Independent Bankers Meet for 5th Annual Convention By MELINDA SAUERS Associate Editor E B R A S K A ’S Independent N Bankers gathered in Lincoln last month for their 5th annual con vention. Fred Otten, 1985-86 NIBA presi dent and president, Commercial State Bank, Hoskins, welcomed bankers the first night and said at tendance for this convention was the best turnout ever. Gordon Achilles, banking aide to Congressman Doug Bereuter, spoke at the breakfast buffet. “It’s very important that Nebraska bankers have a voice in Washington at a time when banking laws have been by passed by events in the market place,’’ he said. Mr. Achilles said Congress works in three areas for bankers: in an om budsman role; in a legislative role, and in a representative role repre senting interests of all Nebraska bankers. Briefing bankers on a nurtlber of legal issues was John Guthery, legal counsel for Perry, Perry, Witthoff, Guthery, Hasse and Gessford, P.C., firm in Lincoln. Mr. Guthery touched on recent case decisions, Chapter 12 and lender liability. Time is going to be the key in Chapter 12, he said, and advised bankers to line up some good ap praisers. On the lender liability issue, he said many banks are being sued for putting people out of business. He suggested that bankers give borrowers as much notice as they can. He advised bankers to “write the documents as if 12 jurors were going to read them.’’ At the luncheon, Richard Jarvis, assistant regional director for the FDIC, delivered the remarks of Charles Thacker, regional director for the FDIC, who couldn’t attend the convention due to an illness. Mr. Jarvis said the FDIC and bankers share a common goal — maintaining a safe, sound and healthy banking environment. Last year was not a good year for Neb raska bankers, he said. “The non performing loan situation has not slowed; however, profitability has shown a slight increase.’’ On a positive note, Mr. Jarvis said most of the farm banks are well situated in Nebraska to deal with the ag problems, while on the nega tive side, the number of problem banks in Nebraska is increasing; thus, there is a need for long-range planning on the bank’s part. Man agement and directors should formulate plans for the future that inelude present and future market areas, growth strategy, budgeting and a loan review procedure. “Hope fully, there is a light at the end of the tunnel and it’s not an oncoming train,’’ he said. Also speaking at the luncheon was James Barbee, director of bank ing for Nebraska. In an emotional presentation, Mr. Barbee said, “We are going to be tested to the limits, LEFT—Fred Often, NIBA past pres, and Roy Yaley, NIBA pres, with Chuck Doyle, IBAA pres, and Tom Olson, IBAA pres.-elect. RIGHT— Luncheon speakers Richard Jarvis, asst. reg. dir. for the FDIC, and James Barbee, dir. of banking, were excellent. Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis || # • • • • ® ® ® ~ ® Nebraska News but we are going to get through this ® and recover,” He said, however, that it will not be a quick recovery, Mr. Barbee added that there are no big plans for the coming year, but said he will not be leading the charge * on interstate banking and is con vinced there should be a state de partment of banking. Even though bankers want an annual examina_ tion, he noted that 18 months is his ® goal for an examination by his de partment or the FDIC. Explaining “Taxation and You” to the bankers with slides was John m Cederberg, CPA in the Lincoln office ^ of Touche Ross and Co., and na tional director for bank taxation. He said the most favorable provision change in the tax reform act of 1986 ^ was the 25-year window period it has given bankers for loss. If a bank has a loss, it has 10 years back and 15 years forward. Of most concern to bankers, he ^ said, was the question of collateral and collateral values. Mr. Cederberg said he foresees all sorts of problems that may affect some assets direct ly, including buildings, net operat0 ing losses, controlling shares of cor porations, tax on borrower’s sale of assets and taking possession of stock representing control. Unfortunately, he said, bankers 0 are going to find themselves paying more taxes and warned that rela tionships with borrowers are going to be far more complicated. “We have not come up with any new op41 portunities to reduce and defer taxes for the banking industry,” he said. Officers for 1986-87 were elected at the annual meeting. The new offi cers are: President—Roy O. Yaley, # president, Nebraska State Bank, South Sioux City; President-Elect— 0 James A. Bohart, vice president and cashier, Harvard State Bank; Vice President—William L. McQuillan, executive vice president and cashier, City National Bank, Greeley; Secre tary—J. William Henry, executive vice president, First National Bank, Omaha, and Treasurer—Robert C. Fricke, vice president and cashier, Farmers and Merchants National Bank, Ashland. Kurt Yost continues as NIB A executive vice president at headquarters in Lincoln. At the banquet, which concluded this year’s convention, Mr. Otten said the NIBA has been working on ways in which to encourage more support in the association. One way he suggested is to come up with an annual award for a banker who has given much support to the associa tion. This year’s “ President’s Award” was presented to F. Phil Giltner, president of First National Bank, Omaha, and his wife Gretchen. Chuck Doyle, president of the In dependent Bankers Association of America, and CEO, Gulf National Bank, Texas City, Tex., delivered an inspirational message at the ban quet. He said independent bankers must convince people to become in volved. “You and I have the job of making people feel expected to be in the independent bankers associa tion. Don’t let people tell you it costs too much.” He went on to say, “We had hoped for reasonable legislation in banking and we didn’t get it. We can’t look to Congress for leader ship. They just respond to a crisis.” He said recovery is going to come at home. “We are the principal lend ers to the people who make this country run.” □ president of Farmers State Bank in FirsTier Bank Grand Island, a Wallace. branch of FirsTier Bank Omaha, has appointed Dennis L. Barkley vice NABW Group Wins 1st Place president and CEO. He has served The Western Nebraska group of # as acting CEO since July when Law the National Association of Bank rence Comine, Jr., former CEO, was Women, led by Melva Guard of appointed senior executive vice Scottsbluff National Bank and president and COO at FirsTier Trust Company, took first-place Bank Omaha. honors in the group excellence • award. The Western group com Named in North Platte peted against 117 other groups na James L. Farmer has been named tionally in the under-50-members vice president in commercial and ag category at the NABW annual con ^ loans at American Security Bank in vention held recently in Las Vegas, North Platte. He formerly served as Nev. 43 Graduate School Applications Being Accepted Applications are now being ac cepted for the 43rd annual session of the Graduate School of Banking to be held at the University of Wis consin, in Madison, August 9-22. The school is sponsored by the Nebraska Bankers Association and 15 other members of the Central States Conference Bankers Associa tion. For more information, contact Jan Primus at the school at (608) 256-7021. Talk To The Municipal Bond Professionals William March Robert E. Rob President Exec. Vice President Patrick H. Rensch C.W. (Chuck) Poore, Jr. Sr. Vice President Sr. Vice President Bill Abts, Jr. Wayne A. Rasmuss Vice President Secretary-Treasurer Appointed in Grand Island https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Micky Krupinsky John Trecek Representative Counsel For municipal bond OFFERINGS, BIDS and APPRAISALS, call on the professionals who specialize in tax-free bonds. Municipal Bond Underwriters, Inc. Investment Bankers • Underwriters 208 South 19th Street, Omaha, Nebraska 68102 (402) 341-1144 In Nebraska Call Toll Free (800) 642-4413 Northwestern Banker, December, 1986 44 Nebraska News LEFT—Taking part in the panel discussion at the recent FirsTier Lincoln Correspondent Bank Conference were, from left: Jack Maddux, livestock producer, Wauneta, Nebr.; State Senator Carson Rogers, swine producer, Ord, Neb.; Dale Tinstman, dir., Iowa Beef Processors, Dakota City, Nebr.; Panel Moderator Dr. Roy Arnold, vice chancellor, ag and natural resources, Univ. of Nebraska, Lincoln and Jim Cole, sr. commodity analyst, USDA, Wash., D.C. RIGHT—Host Gary Bieck, v.p. & mgr., ag. fin. group, FirsTier, Lincoln, welcomes guests to the con ference. Annual Correspondent Bank Conference Held in Lincoln By ROBERT CRONIN Associate Publisher OR THOSE who attended the FirsTier Bank Lincoln Corres F pondent Conference last month, many will remember the big win over Kansas State and the very cold temperatures and two inches of snowfall. But much more was hap pening in Lincoln than tailgate par ties and the football game. More than 400 bankers and spouses attended the annual confer ence at the Lincoln Cornhusker Inn. Pre-conference activities included a cocktail-buffet, which offered excel lent food and hospitality by the Firs Tier staff. The following morning bankers were treated to a buffet breakfast and an excellent panel dis cussion on the livestock, grain and feed outlook for the coming months. If your favorite color wasn’t red, then the morning panel discussion may have caused you some prob lems because those in attendance were dressed in red—red coats, ties, sweaters and even shoes. Moderator Dr. Roy Arnold, vice chancellor of agriculture and natural resources at the University of Neb raska in Lincoln, introduced the first speaker, Jim Cole, senior com modity analyst with the USDA in Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Washington, D.C. Mr. Cole’s comments were based on his views of the global supply pic ture of grain which he called “im proved or not improved, depending on your point of view over 1985 and 1984.” In his estimation, the world will continue to produce 1 0 -1 5 per cent more grain than is consumed. Ironically, parts of Latin America and large sectors of Africa are starv ing while here in the United States and Europe we are having difficulty finding storage space for grain. “We will produce in excess of 30 million tons of grain and have nowhere to store it,” said Mr. Cole. The over supply of grain is a United States problem, he added. “When we see grain being stored in river barges and on the ground, this is a strong indicator that we have a storage problem,” he commented. According to Mr. Cole’s outlook, there are some countries that need to be watched from a competitive standpoint. Argentina’s production of corn and sorghum is a concern, as is Australia’s wheat production. Western Europe is heavy into the wheat and barley areas, and China is a major exporter of corn. Jack Maddux, rancher-livestock producer from Wauneta, called the grain storage situation in his area “a real surprise.” “I didn’t realize you could pile corn on the ground and keep it for a year or two, but there are a lot of people doing it and just covering it with tarps,” he said. Senator Carson Rogers, also a swine producer in Ord, didn’t think the corn being stored on the ground was a good idea, but with the short age of storage facilities, that’s the way it will be for awhile, he conceded, until other facilities become available. Mr. Maddux gave some interest ing figures concerning the cattle in dustry. In regards to the beef supply picture, in 1981 there were 115 mil lion head of cattle produced and in 1987, that number will have fallen to 100 million, according to Mr. Mad dux. “You have to go back some 25 years to find lower cattle numbers than we’ll have January 1,1987,” he said. “One of these days we’re going to have a substantial change in the supply of beef for the consumer,” said Mr. Maddux, pointing out the recent decline of per capita con sumption of beef. According to his figures, he sees a time when this nation will experience 65 pounds of beef per capita consumption which, compared to today’s standards, is down some 15 pounds. In his conclusion, Mr. Maddux said “every 12 to 15 years the cattle industry goes through a low per capita consumption period and it’s going to happen again.” Mr. Maddux warned bankers that these # # # • • ® ® _ ™ ^ Nebraska News _ changes will affect the cattle mar9 ket, the supply market and their cus tomers. Mr. Rogers gave his analysis of the pork industry by saying “We ^ will be eating less pork because there is less pork around this year.” Mr. Rogers said the high prices in the industry are good for the most part and have allowed many pro£ ducers to gain a fair profit but, with low feed costs, the price of hogs could go down. “I would rather make a dollar every day on $50 hogs,” he said, rather than making £ it all at once. Dale Tinstman, director with Iowa Beef Processors, Dakota City, # told the bankers he was glad to see both the beef and pork industries operating at a profitable level. “Feeders are making money, pork producers are making some money and the packers are making some money and that’s the way it ought to be,” said Mr. Tinstman. He said the cattle and pork industry look very good for 1987. Since the outlook for the cattle and pork industry looks favorable, the panel put forth a call to bankers to display less negativism in the fi nancing of some of their livestock borrowers. The forthcoming trend is a profitable one in the livestock sec tor and bankers were encouraged to • ® ^ w q work with those particular custo mers, “because the future of the live stock market is bright,” said one panel member. □ Elected in Brunswick Brian Hinze has been elected vice president of Brunswick State Bank. He previously served with the Fed eral Land Bank in Hartington, Nor folk and Omaha. Name Change Told Citizens State Bank, in Decatur, has changed its name to First Neb raska Bank, Decatur. LEFT—Les Peterson, pres., Farmers State Bank, Trimont, Minn., visits with Deri Derr, formerly staff director of the ABA Agricultural Bank ers Division, who is now managing executive for the Apple Growers Association International. CENTER—“ A/L Management for the Ag Banker” was discussed by Douglas G. McDermott (left), pres. & CEO, Home State Bank, Jefferson, la., and Dale Bickenstaff, exec, v.p., Moore Financial Group, Boise, Idaho. RIGHT—John Saunders (left), v.p., First Bank of DeKalb County, Stewartsville, Mo., introduced Gary G. Maas, pres., Agri-Careers, Inc., Massena, la., whose topic was “ Managing the Transition into the Future.” AG CONFERENCE. . . (Continued from page 23) ® 45 overflow crowd each session. ABA ’s Rusty Jesser, a federal legislative representative; James W. McBride, director, First National Bank of Aurora, Nebr., and Thomas L. Flynn, Des Moines attorney, described the new bill and its potential effects. The Common Denomi nator they see is the ability of borrowers to walk out on debt that exceeds the current valuation of their loan collateral and make the bank swallow the loss. They all feel this will injure many banks, and will hurt farmers in the long run by curtailing credit, especially to marginal borrowers. “Preparing for Changes in the Uniform Commercial Code” was the other new legislation topic played to an overflow crowd. Neal Conover, chairman of First National Bank, Creston, la., was joined by Mr. Jesser and Elarbara Roberts, Oregon’s secretary of state, in dis cussing this change in the lien law. They reviewed the options of prenotification and central filing, which Oregon is prepared to operate. Just over 500 bankers and guest speakers were re https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis gistered, dlong with nearly 300 spouses, for a total of approximately 800. Iowa led attendance figures again with 99 registrants and 77 spouses, for a total of 176. Nebraska was second with 40 registrants and 30 spouses, for a total of 70. Six other midwest states, with total attendance in parentheses, were Kansas (67), Illinois (64), Indiana (52), Missouri (33), Minneso ta (32), and Oklahoma (29). These eight heavy farm states had 523 total registrants, or 65.4% of the total number present. In contrast, the host state, Tennes see, had only four bankers from three banks, three agrelated firm registrants, and one spouse for a total of eight people. Nine southern states ranging from Arkansas and Louisiana across to Virginia and South Carolina sent a total of 85 registrants and spouses, or 10.6% of the total. There was a large delegation of ABA support staff, of course, accompanied by Con gressmen and staff personnel, and government agency representatives for a total of 48 from the District of Columbia. The 1987 National Ag Conference is scheduled for November 15-18 in Washington, D.C. The 1988 site has not yet been selected, but Des Moines has made a bid to be host city. □ Northwestern Banker, December, 1986 festive holiday season and prosper ous new year, may we say a special "thank you” to all whom we’ve served during 1986. 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. From your friends at Bankers Trust — John Chrystal, Dennis Wood, Tom Smith, Ben Eilders, Don Jordahl and Steve Brewer. Bankers Trust Des Moines, Iowa 50304 Member FDIC, Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 New Albia Bank to Open in January • ® _ * ^ q ^ ^ 0 0 0 0 M AROLD L. Mick & Catherine He knows our area and is recognized 1 M. Bay of Monroe County, an as a sound banker.” Garland K. Car nounced November 11 that the ver of Des Moines will continue as shareholders of Peoples Tri-County chairman to assist the investors and Bancorporation met the night before Mr. Oberts in obtaining their final re and unanimously decided to open gulatory approvals and opening the the new Peoples State Bank in Albia bank. The new owners have invested despite the corporation’s failure to secure permission to open an Eddy- $2,000,000 capital. “Not only is it ville office. Mr. Mick stated that unusual for a new bank to be started they have been swamped with re in Iowa, it is also rare when a new quests from Albia and Eddy ville bank is started with no borrowed citizens and officials to proceed to capital,” said Catherine Bay, add open the bank. He said individuals ing, “The Albia and Eddyville inves from all over the county have tors believe in our communities and pledged to support the new bank. we are determined that sound The State Superintendent of depository and lending services be Banking, William R. Bernau, ap provided for the people in our trade proved the application for a new area.” Peoples State Bank was incorpo Albia bank charter on November 5. The applications for Federal Re rated following the failure earlier serve and F.D.I.C. approval were this year of Peoples National Bank predicated upon the new bank hav & Trust Co., which had deposits of ing an Eddyville office. It is ex- approximately $50 million when it pected that the Federal Reserve and was closed in February by the the F.D.I.C. will approve amended Comptroller of the Currency. Since applications so that the Albia bank there were no bidders on the bank, can open during the first week of FDIC paid off depositors. Jim January, 1987, according to Mr. Oberts was president of Peoples Na Mick. tional for the last five weeks before Mr. Mick stated, “The state bank it was closed. Peoples National had ing department survey substanti served the Albia community since ated the need for a new bank in 1907 and maintained an office in Ed Albia and a banking facility in dyville, which is about 20 miles Eddyville. Our community needs a northeast of Albia. sound and competitive banking al Except for charters issued in a ternative and we are dedicated to purchase and assumption of a failed providing financial services for all of bank, this is the first new state char Monroe County and the Eddyville ter issued since 1977 when one was area.’’ (The superintendent, while granted for First Bank & Trust of approving the Peoples State Bank Carter Lake, which has since con charter, gave permission to operate verted to a national charter as First an Eddyville office to First Iowa Bank, N.A., and has moved into State Bank of Albia.) Council Bluffs. Mrs. Bay and Mr. Mick also an nounced that Jim Oberts would be First Iowa State, Albia, the president of the new Peoples State Bank. Mrs. Bay said “We are Gets Eddyville Office The First Iowa State Bank of pleased that Jim Oberts has accepted our offer to return to Albia Albia was given approval on and actively manage our new bank. November 5 of its request to open an https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis office in Eddyville, 20 miles north east of Albia. Permission was granted by State Superintendent of Banking William R. Bernau. At the same meeting, Mr. Bernau announced approval of the charter for the proposed new Peoples State Bank of Albia, which had also re quested an office in Eddyville as part of its charter application. The superintendent was allowed by law to authorize an office for only one bank in an un-banked town. All of this activity was occasioned by the February 6 closing of Peoples National Bank & Trust Co. of Albia, a $50 million deposit institution that had been in business since 1907, but failed due to the weight of ag loans that turned bad. Peoples National had an office in Eddyville. Eddyville has prospered in recent months with the opening of two ma jor food processing plants there. Ray Davis, executive vice presi dent of First Iowa State Bank, said he anticipates no difficulty in ob taining the $440,000 increased capi tal that is needed to compensate for the $19 million of additional deposits his bank has gained since the closing of Peoples National. The needed in crease, which is a stipulation in the superintendent’s Eddyville office approval, has been anticipated by First Iowa State Bank, Mr. Davis said, because of the positive growth factor experienced by his bank. First Iowa deposits when Peoples Na tional closed were $37 million, and were $56 million on November 5. Mr. Davis said First Iowa State Bank has an option on an older bank building in Eddyville that once housed the Manning & Epperson State Bank, which closed in mid-1931. Plans are to renovate that building with an architectural plan complementary to the unique archi tecture of the headquarters bank in Albia. Hired in Cresco David Skattebo has been hired as vice president of First Interstate Bank of Cresco, N.A. During the past year he has been employed by Farm Credit Service in Mason City as a special accounts loan officer. He also spent four years with the Northeast Iowa Pro duction Credit Association as a branch manager of the Waukon and Decorah offices. N o r th w e s te r n Banker, December, 1986 48 Iowa News LEFT—Taking part in the IBA Ag Marketing Conference in Ames last month were, from left: Conference Chairperson Leslie Miller, a.v.p., Davis Cnty. Sav., Bloomfield; Sue Atkinson, pres., MGI Learning Systems, Lyons, Nebr.; Roger Hoick, pres. & c.e.o., Kellogg-Sully B&T; Ray Harman, s.v.p., First Natl., LeMars and Rod Kroeger, MGI Learning Systems. RIGHT—Presenting a “ Look at Chapter 12” is Harry Dixon, attny., Dixon, Dixon and Manahan, Omaha, Nebr. IBA Holds 2nd Annual Ag Marketing Conference By ROBERT CRONIN Associate Publisher ORE than 100 bankers from M around the state were in atten dance for the second annual Iowa Bankers Association Ag Marketing Conference held in Ames recently. The program, “Successful Ag Mar keting: Decisions and Directions,” was developed by the IBA Ag Com mittee, which is chaired by Leslie Miller, assistant vice president of Davis County Savings Bank, in Bloomfield. The two-day conference featured noted speakers from around the area. Important topics covered were charting and analysis, factors influ encing the market, the recently signed farm bankruptcy bill and the soon-to-be law, S.F. 2050. The general session included a panel discussion which featured farmers Kent and Jane Brown of Merrill and William Secor, Jr. from Fort Dodge. The question of whether a farmer should go “in house” or use a charting system to control his marketing was dis cussed. Mrs. Brown, who heads up a local marketing club in her area, said, “It’s the farmer’s responsibility, not the banker’s, to make proper mar keting decisions.” Mrs. Brown, who began computer charting out of her home two years ago, said, “It wasn’t Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis easy at first, but we are beginning to see results.” A special session was held to help promote Iowa products featuring various Iowa commodity organiza tions. Included in the parade of Iowa products were representatives from the Iowa Soybean Association, which has over 6,000 members in Iowa; the Iowa Sheep Industry, with over 10,000 producers in the state and the Turkey Industry, which has experienced an 11 percent growth over the past year. The Iowa Pork Producers, Iowa Poultry Association, Iowa Corn Growers and the Dairy Association were also represented. The Iowa Cattlemen’s Association gave a spe cial presentation on a commercial feeding and grazing program for the state. Joel Brinkmeyer, executive director, said the program is de signed to “steer” farmer/rancher livestock into the state. Although the concept is not new, Mr. Brink meyer said it is new to have an orga nized effort in the state. “Iowa is a good state to have cattle commer cially fed and grazed,” he said. According to the Iowa Cattle men’s Association, there are 47 feed ers and grazers interested in the pro gram. The criteria to be part of this program are: The participant must be part of the ICA, have access to a certified livestock weighing scale, have projection capabilities, main tain an animal health program, have an accurate method of charging feed to the owner, have access to a good water source and have adequate working facilities. There are approx imately 3,000 head under the new program, according to Mr. Brink meyer. Included in the afternoon session was a look at the economic implica tions of marketing in the interna tional arena. Dennis Starleaf, agri cultural economist, Iowa State Uni versity, Ames, who gave the presen tation, said, “The United States is going from a net creditor to a net debtor, and this can’t go on forever. The reason for our high trade im balance is based on the fact that the U.S. is financing its debt by borrow ing from foreign nations. “If a country is going to borrow abroad, it must import more than it exports and that is the situation the U.S. is in,” and, according to Mr. Starleaf, “to eliminate the huge trade imbalance, we must eliminate the federal deficit and/or discontinue borrowing from other countries.” “Breaking Away from Tradi tional Marketing” was presented by Wayne Seaman, general manager and Tom Feldmann, marketing man ager, both with West Central Coop, Ralston, la. Their program, pre sented in tandem, explained the ef fective ways in which to market grain. They are: Cash Markets. Op tions Market. Price Later. Basis Agreement - The difference between a cash price at one point versus the price at another point (basis agree ment reflects storage, interest, risk and transportation, said Mr. Sea man). Minimum Price Purchase Agreement - which guarantees the Max J. Larson, President. “ At First N ational Bank in Sioux City, we’re proud of the productive relationships we’ve devel oped with many banks in our area. Through these partnerships, our staff of professional bankers provides our friends with 9>ckwise Patty Stansbury, Gary Stevenson, Phyllis Foster, Ed Den Beste, Ivey Thompson, Mark Paradise, Jan Foresee, Lon Kelling. a competitive edge in their local marketplace with services like loan overlines, investments, credit card services, and data processing. While many people refer to these banks as “ respondents” , we prefer to call them friends. If you’re looking for a friend, give us a call at (712) 277-1500. We’d like to get to know you.” — Max J. Larson President Best Wishes for a Happy Holiday Season to All Our Friends! First National Bank in Sioux City 151 Member FDIC • Sioux City • A 'BANKS OF IOWA' BANK • (712) 277-1500 StiengthìòuCan BankOn. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1986 50 Iowa News LEFT—Ag Conference speakers included, from left: Dennis Starleaf, prof, of economics, Iowa State University, Ames; Tom Feldmann^ mktg. mgr., West Central Coop, Ralston and Wayne Seaman, grl. mgr., also with West Central. RIGHT—A panel discussion entitled, “ Whc) should a customer trust: In house vs. a charting service,” featured, from left: Farming couple Kurt and Jane Brown, Merrill, and Farmer Wil liam Secor, Jr., Fort Dodge. producer a minimum price with the option to gain future income should the price go higher. Payment In Kind. The most timely topic of discus sion during the conference was the issue of the so called “double jeo pardy” bill which will take effect December 24, 1986. One word describes the feeling among bankers - unclear. The bill, S.F. 2050, is designed to protect the agricultural dealer but upsets bankers because it reverses the traditional secured in terest concept. There is justified fear of a paper blizzard taking place after December 24. Bankers attending the conference posed many questions about the bill to Tom Salsbery, attorney with a Des Moines law firm. Wes Ehrecke, vice president of governmental rela tions for IBA, called the legislation “unconstitutional” and is seeking a law suit to strike down S.F. 2050. The best advice given was to pre pare for the worst. Due to the passage of the new Chapter 12 of the Bankruptcy Code, a special session was presented dur ing the closing portion of the mar keting conference. Although not all of the details are clear, Harry Dixon, an attorney specializing in the bank ruptcy area, said “This will be a big Thanksgiving for farmers,” for the bill went into effect November 26. Mr. Dixon, who is with the Omaha law firm that bears his name, said the bill, HR-5316 established 52 new q bank judgeships in the U.S. includ ing two new U.S. Trustees for the state of Iowa. According to Mr. Dixon, these trustees will monitor all bankruptcy q cases in the state. “Since farmers have a tendency to be very private, and could feel intimidated by these trustees, we may see some filing dis couraged because of this fact,” said <§ Mr. Dixon. “With the use of U.S. Trustees in each case, this could eli minate quick filing, thus benefiting the lender,” he said. The Chapter 12 bill does have a “sunset provision” of seven years, expiring on October 1,1993. □ Iowa Supreme Court Backs Superintendent of Banking tendent had acted within the legisla tive guidelines set by Iowa law. The Supreme Court’s decision last month reaffirmed Judge Bainter’s decision, stating that “The regula tion of banks is left by the legisla ture to the superintendent’s sound discretion.” help them to better select the bank £ products and services which best meet their needs. Mrs. Van Ryswyk, assistant cash ier, has been employed with the bank since 1980. She has worked in 4) several departments in the bank, most recently as ATM operations manager and assistant financial banker. The Iowa Supreme Court ruled last month in favor of the Iowa superintendent of banking in a law suit instituted against him by a group of stockholders of the former Mount Pleasant Bank & Trust Com pany, which failed in 1982. In their suit, the stockholders claimed that the superintendent didn’t supervise the bank properly and didn’t take quick enough action. The bank failed August 6, 1982, when a large customer, Prairie Grain Co. at Stockport, failed. That failure triggered unsurmountable losses for the bank, and then Superintendent of Banking Thomas H. Huston closed the bank. The suit was filed by stockholders Gerald L. Nordbrock, Harley W. Batie, Gene L. Osborn, Irving R. Dana and William L. Larson. Later, Henry County District Judge Har lan Bainter ruled that the superin- Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mt. Vernon Banker Dies Jay A. Fordyce, president and trust officer of Mount Vernon Bank & Trust Company, Mount Vernon, passed away on October 16. He had served continuously at the bank from 1935 until the date of his death, a span of 51 Vis years. Named in Indianola Deloris Van Ryswyk has earned the new responsibilities and title of financial banker at Peoples Trust and Savings Bank, Indianola. As fi nancial banker in the customer and investment department, she will be working with bank customers to Named in Waterloo The Waterloo Savings Bank, Waterloo, has announced that Matt R oegn er has been named con sumer loan offi cer. He most re cently was asso cia te d w ith C redithrift of America, located in Des Moines. Mr. Reogner is a graduate of the U n iv ersity of Iowa. 51 Theproblemwithmost bankinsuranceisthatitwasn’t conceivedbybankers. There are farmers’ insurance companies and firemen’s insurance companies. Even companies founded by travelers. But IBIS insurance was designed by Iowa Bankers only for Iowa banks. In fact, IBIS is owned by all Iowa banks. A nd dollar for dollar, you can’t do better. W hether it’s property and casualty insurance or creditor protection. Employee group health, life, or disability. IBIS professionals tailor each plan to meet your bank’s needs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A t rates you don’t have to be a banker to appreciate. Dividends? Last year we paid over $515,000 to Iowa banks. For more information, call 1-800-532-1423 toll-free. And find out how much better insurance from bankers can be. IowaBankersInsurance &Services,Inc. Northwestern Banker, December, 1986 52 Iowa News Security National Corp. Names Presidents Security National Corporation, Sioux City, has announced the pro motions of two officers within the h o ld in g com p an y to bank presidents. Scott Otis has been named presi dent of the First National Bank of Akron and has been elected to serve as president of the bank’s board. He began his banking career in 1979 as a financial analyst for Postal Fi nance Company. In 1980 he joined the Security National Bank of Sioux City, part of the holding company, and served as a personal h an k in g S. OTIS M. ROZELL representative and correspondent banker. Myron D. Rozell has been pro moted to president of the First State Bank of Mapleton and has been elected to serve as chairman of the bank’s board. He joined the bank in 1985 as senior vice president. Prior to that he served as a loan officer, assistant vice president and vice president of administration at the Federal Land Bank in Fort Dodge. BAI Chapter Holds Meetings Central Iowa Chapter of Bank Administration Institute held its October meeting at Simpson College in Indianola. Paul Tyler delivered a message on lender liability. Fortyseven people attended. The November meeting was held at the Hyperion Field Club, Des Moines. Peat, Marwick, Mitchell & Company spoke on the topic of “Tax Update and 1099 Reporting.’’ ABA CONVENTION. . . (Continued from page 14) “As still a further precaution, we have been testing a procedure whereby the potential defendants would be advised of our findings and given an opportunity to submit a written statement before any final Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis litigation decisions are reached,’’ Mr. Seidman said. “Our intention is to file suit only when we have found evidence which will make a case and lead to -a financial recovery,’’ he added. Mr. Seidman urged the banks to consider the example of the mutual funds in providing a separate bud get to independent directors, noting that: “Outside directors often need extra help to deal with the complexi ties of banking.’’ He said the direc tors could use the funds to retain in dependent counsel to assist them. “They could choose periodically to retain an outside auditor, an accoun tant or a consultant,’’ he said. “A separate budget means some additional cost to the banks, but this may be recovered through a lower insurance premium, better operations and fewer lawsuits,’’ he said. Mr. Seidman concluded with an update on the FDIC insurance fund noting that its year-end 1986 balance will be about $18.8 billion dollars, despite record failures and expenditures. He added, however, that it is unlikely there will be an in surance rebate for 1986. “Cash out lays for dealing with 1986 and prior year failures will approach $4.2 bil lion, ’’ he said. Also addressing a general session was Comptroller of the Currency Robert L. Clarke, who delivered a rather blunt, challenging message to the nation’s bankers. He pointed out how globalization of the financial in dustry filters down to every level of banking and commerce in each com munity, noting especially the rapid gains made in international banking by the Japanese. He said, “The largest banking company in the world now is Japanese. Four of the five largest banking companies in the world are Japanese. Seven of the first 10, and 14 of the top 25 largest banking companies in the world are Japanese.” Mr. Clarke recalled that an ABA speaker 25 years ago said, “You can’t do today’s job with yester day’s methods and hope to be in business tomorrow.” Yet, he noted, we are trying to do just that. “A sa result, our banking system hasn’t the equipment—nor the flexibility— to meet the competition.” Mr. Clarke closed by stating, “Over the past four years or so, the American Bankers Association has advocated a number of changes that are needed. Yet, the A.B.A.’s ^ advocacy on your part has been andW continues to be weakened by lack of commitment—disinterest—and even outright opposition among some of its members. a “Your place, and the place of theW American banking structure, in the new financial world that’s coming together will, in large part, be de termined by whether and how soon # the changes the A.B.A. seeks on the part of bankers are made. Without your commitment, your interest, and your support, those changes may never come. Yet, if you call for# change individually and as an indus try, the changes are sure to come. “They are sure to come if you shift your tendency to look at what is good for me, today, in my market, # to looking at what will be good for banking, and the markets you serve, tomorrow. The choice is yours to make,” Mr. Clarke stated. General sessions also featured# other individual speakers and panels. One panel of bankers looked at potential structure in future years, while a second panel com posed of two senators, a retired gen- # eral and a retired admiral examined “Global Influences—U.S. Options.” Speakers for the final morning in cluded FHLBB Chairman Edwin J. Gray and former Secretary of State # Henry A. Kissinger. Throughout the several days of the convention, registrants and spouses had a wide selection from a menu of industry sessions,' public ^ policy sessions and spouse sessions. Intermixed with these was a variety of entertainment, along with the usual extensive exhibition hall that offered the latest in bank equip- ^ ment, services and electronics from the nation’s leading service suppli ers and manufacturers. The 1987 convention will be held October 17-21 in Dallas, Tex. □ • Fed Governor Rice Resigns Federal Reserve Board Governor Emmett Rice has announced his resignation from the Fed, effective December 31. In a letter to Presi dent Reagan, Mr. Rice said he was resigning for personal reasons. A former banker and government economics official, he was appointed to the board by President Carter in 1979. Mr. Rice’s term was to expire January 31, 1990. ^ ~ ^ f Award winning interior design and furnishings Complete architectural, design and construction services Specializing in turn-key development of financial facilities Yes, since 1971, Kirk Gross Company has designed, built or remodeled over 1 MILLION square feet of financial institutions — one million, one hundred seventy one thousand and one hundred and fifty square feet to be exact. The Kirk Gross Company specializes in turn-key development of v / V / W y y t / v J financial facilities, interior design and furnishings for complete commercial environments throughout Iowa. And no - i / \ 1 \ t — one can make each and every square foot t— *| of space work harder for you than Kirk Gross Company. No one else in Iowa has as much experience in designing, remodeling and building financial institutions. So you know when you come to Kirk Gross Company, your project w o n 't be the first we've ever done — just one of the best. We've got over a million ways to prove it — just give us a call. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kirk Gross Company 4015 Alexandra Drive • Box 2097 Waterloo, IA 50704 • (319) 234-6641 54 disclosed. Both First Interstate^ Bank of Des Moines, N.A. and First^ Interstate of Iowa, Inc. will con tinue to be the property’s primary tenants. The building will retain its identity as the First Interstate^ Bank Building. ® * * * A new international banking de partment has been formed at First Interstate Bank of Des Moines, N.A. The department will allow statewide support of First Inter state Bank’s customer endeavors in import and export activities with a full range of international banking services. These services will include documentation, verification and negotiation, letters of credit, foreign collections and other related interna tional services. J. Daniel McGowan II has been appointed vice president of inter national bank ing. He will be responsible for the management of the depart ment and the marketing and development of in t e r n a t io n a l services throughout j . d . McGOWAN Iowa. He joined the bank in 1982 as vice president of metropolitan commer cial services. Prior to joining the bank, he was president and CEO of Industrial Supplies, Inc. Upon completion of the building remodeling, the department will be located in the new International Trade Center. Oliver H. Hagen, president and CEO, First Interstate of Iowa, Inc., has announced the completion of the agreement among First Interstate of Iowa, Inc. and two of its subsid iaries, First Interstate Bank of Des Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Moines, N.A. and First Interstate Building Corporation of Iowa, and Graham Investm ent Co., Des Moines, for the purchase by Graham of the First Interstate Bank Build ing and retail/office parking struc ture at Locust and Sixth Ave., in Des Moines. The sale price was not The board of First Interstate of Iowa has elected Bradford Sharpe as vice president with fu n ctional re sponsibility as director of mar keting. His du ties will include providing mar keting support for First Inter state Bank of B.W. SHARPE D es M oines N.A., (of which he was elected vice president in October), and the affili ated banks throughout Iowa. # He was previously employed by Commerce Bancshares of Kansas C ity as corporate m arketing manager. Hawkeye Sponsors Student Advisory Board EIGHT students from Drake University have been selected to serve on Hawkeye Bank & Trust of Des Moines’ Drake Student Advisory Board. The purpose of the board is to pro mote a positive relationship between Drake students and the bank. The board has assisted in the production of a welcoming brochure for Drake students and the planning of a bank ing class for the new college program. The students named to the board are, seated left to # right: Suzanne Geer, a senior majoring in accounting and corporate finance; Gene Gettys, a sophomore majoring in psychology and economics; Michel Owens, a sophomore majoring in international relations and foreign policy, and Deanna Carroll, a sophomore majoring in actuarial science. Standing left to right are: Bret Sinak, a junior majoring in insurance and finance; Lois Grote, a senior majoring in music education, and Kevin Croft, a sophomore majoring in actuarial science. Melinda Brown, a senior majoring in speech communica-# tions and business, is not pictured. In today’s market, loan custom ers tend to move their business around. As a result, monitoring their activity is vital to your bank. But maintaining accurate, up-to-date information on financing arranged by them through your competitors is nearly impossible. Unless you sub scribe to Iowa Public Records Search’s Loan Activity Bulletin. The Loan Bulletin is a twicemonthly report of a ll the loan activity in FRASER your county, and every county Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis important to you. Each report con tains all liens filed with the Secretary of State, the name of debtor, secured party, file number, and the date and hour of filing. And the price is right, too — as low as $12.50 per county, per month. To order, or for information on our other search services (telephone searches, judgment searches, bank ruptcy searches, and more), give us a call. We’re Iowa Public Records Search. We’ll follow your loan cus tomers everywhere. IOWA PUBLIC RECORDS SEARCH, INC. 2 C o rp o ra te Place 501 4 2 n d S tr e e t /e s t D es M o ines, Io w a 5 0 2 6 5 b lo n h n n o 1 56 Iowa News Earlham Chairman Dies Ralph B. Hunter, 95, chairman and former president of the Earlham Savings Bank, died of pneumonia November 12 in a Des Moines hos pital. Funeral services and burial were in Earlham, where he was a life long resident. In recent years he had resided at Wesley Acres in Des Moines. Mr. Hunter founded the Earlham Savings Bank in 1931 and then founded the First State Bank in Stuart in 1944. His grandson, William W. Hunter, is president of the Earlham Savings Bank, as well as vice president of the First State Bank in Stuart. NABW Installs Officers The Southwest Iowa group of the National A ssociation of Bank Women has installed officers for the 1986-87 year. Serving as president is Arline Gans, Farmers Savings Bank, Ir win; vice-president, Evelyn Rank, Citizens State Bank, Clarinda; secre tary, Cindi Keithley, Houghton Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Bank, Red Oak, and treasurer, to sell 23 of its subsidiaries and ac Jan Wilwerding, Harlan National tivities, and to date has agreements^ Bank, Harlan. Past President Judy on some 15 subsidiaries, including Nelson of Security Trust and Sav 10 banks and five nonbank activi ings Bank, Shenandoah, served as ties. installing officer. Hawkeye Reports Third Quarter Loss In its third quarter financial statement, Hawkeye Bancorporation reported a third quarter loss of $24.8 million. $4.3 million of the loss was reported to be from operations, including loan losses. The remaining $20.5 million is a projected loss to be realized on sales of assets. Part of Hawkeye’s agreement with its credi tors was that its subsidiaries and ac tivities designated to be sold be put into a separate division of the com pany called “discontinued opera tions.” Hawkeye’s financial state ments must include a reasonable estimate of what operating losses these activities will sustain over the next 12 months if they remain un sold. The figure will be adjusted every quarter as sales of the activi ties take place. Hawkeye has agreed NABW Awards Banker Jo Ann Merfeld, assistant vice president, Citizens National Bank, Charles City, received the third place award in the National Associa tion of Bank Women’s 1986 Jean Arnot Reid scholarship program. She plans to use the scholarship funds for a second year enrollment at The American Bankers Associa tion National Agricultural Bank Management School and at the Wis consin School of Banking. This year, 117 NABW members # competed for seven scholarships. Joined in Waukon Gary Blumhagen has joined^ Farmers & Merchants Savings Bank in Waukon as ag lending officer. Prior to joining the bank he was as sociated with the Federal Land Bank in West Union. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 Iowa News Joins iowa City Bank Jerry L. Vanni has joined Iowa State Bank and Trust Company, Iowa City, as special trust officer. Most recently, he was assistant vice president and manager of the Iowa City American Federal office. Dubuque B&T Announces Promotions, Awards Dubuque Bank & Trust Co. has promoted two officers to vice presi dent. Jerry H. Snuttjer, who joined the bank a year ago, has been appointed vice president, insurance divi sion. He is re sponsible for the operation and management of J. SNUTTJER DB&T In su r ance. Melvin E. Miller has been pro moted to vice president, trust in vestments, for the bank’s trust de partment. M.E. MILLER R.F. NEUWOEHNER Dubuque Bank & Trust has also announced Robert F. Neuwoehner, senior vice president for business development, has received an honor able mention for the 1986 National American Bankers A ssociation Bankers News Weekly Award. He has also been awarded the 1986 American Bankers A ssociation Presidential Citation from Lynn S. Fuller, president and CEO of DB&T, for his commitment to the economic development of Dubuque and his contribution to the bank. Purchase Agreement Signed For Hawkeye Bank Arnold Schultz, president and chairman of the board of Grundy National Bank of Grundy Center, and Dwight Stewart, president of Hawkeye Bank and Trust of Grundy Center, have announced that an agreement has been signed for the purchase of Hawkeye Bank and Joined in Knoxville Trust by Grundy National Bank. The agreement has been entered Stuart L. Job has joined the Iowa into by their respective bank boards State Savings Bank, Knoxville a s f and officials of Hawkeye Bancorpo- vice president. ration. The purchase is subject to approval by regulatory authorities. Hawkeye Bank and Trust was one of 17 banks offered for sale last June INDEX OF ADVERTISERS by the Des Moines-based multi-bank holding company. December, 1986 Mr. Schultz said, “Local owner American National Bank, St. P a u l .......... .31 ship will ensure continued commit Bankers Trust Company., Des M oines. . . .46 ment of financial resources and con Carpenters Pension Fund of Illinois 6f .24 tinued economic support for the fu Commercial National Bank, P e o ria ........ Bank, C hicago............................. 8-9 ture of the greater Grundy Center Drovers First Interstate Bank, D enver................... 19 area.’’ First Interstate Bank, Des M o in es.......... 57 41 First National Bank, O m a h a ..................... Regulatory approval is expected First National Bank, Sioux C i t y .............. to take six months. Mr. Schultz said Graduate School of Banking, Madison . . details concerning staffing and utili Gross, Kirk Co., W aterlo o ......................... 53 11 zation of present buildings will take IAC Group, Kansas C ity............................. 51 Bankers Insurance & Services, Inc.. place during this time. Plans call for Iowa Iowa Public Records Search, Inc.............. 55 continued use of both bank build Marquette Bank, Minneapolis ................. 29 National Bank, Cedar Rapids ings in Grundy Center and Hawk- Merchants Municipal Bond Underwriters, Omaha . . 432# w eye’s Holland office. National Bank of Commerce, Lincoln . . . 38 59 Officials at both banks are eager North Central Life Co., St. Paul................. 60 Norwest Corporation, M inneapolis........ to answer questions depositors may Office Concepts, Ltd., W aterloo............... 56 have. One of the most common ques Plus System, Inc., D enver......................... tions expected to be asked concerns RWA Financial Services, Inc..................... FDIC coverage. There are special Swords A ssociates, Inc., Kansas City . . . 10 provisions for dual FDIC coverages United Missouri Bank, Kansas C ity ........ 7 AG BANKING CAREERS. . . (Continued from page 19) the student’s college expenses, which are $450 per se mester plus fees, books and supplies. Banks that have been extremely cooperative with the program are: First Interstate Bank of Fort Dodge; Security Savings Bank, Eagle Grove and Goldfield; Humboldt Trust and Savings Bank, Humboldt, and Holstein State Bank, Holstein. Trainees usually start in the bookkeeping depart ment, work as a teller and perform other duties, de pending upon the individual’s experience and ability. The two-year course is segmented into four semes ters, in addition to the summer trainee session. Classes typically begin August 20 and conclude the following Northwestern Banker, December, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis after the merger is approved. Mr. Schultz said savings and checking depositors will have six months of dual coverage, and time depositors will also have dual coverage until the majority of the time deposit. Grundy National Bank, chartered* in 1934, has served Grundy Center for more than 50 years. With the ac quisition of Hawkeye Bank and Trust, it will become the largest, bank in the county. According to re- * cently published statements of con dition, Grundy National Bank’s as sets totaled $44,596,375, while Hawkeye Bank and Trust reported^ $27,871,000 in assets. * May. By the time the student completes the four It semesters, 67 semester hours have been earned for graduation. The practical curriculum offers the follow ing four-semester schedule: The Track Record Of those completing the two-year course, 50% have * entered the banking profession—all with Iowa banks. Another 20% have gone with finance companies and credit unions. Of the remainder, 5% have returned to farming, 10% have entered other phases of agri-busi- _ ness, 5% have gone into insurance and 10% have found other occupations, several of the latter as junior ac countants. The program currently has fifteen students enrolled, leaving room for additional students who may begin ^ the program in the January or August semesters. □ WeTake Care of the Paperwork... So You Can Take Care oFVbur Customers. At North Central, years of experience working with thousands of banks, have taught us the value of simplicity. How to eliminate the hassles and administrative red tape of most typical credit insurance programs. And, how to free up the energies of your bank’s loan officer for what they do best—banking. We call our approach, “A BETTER WAV”. And it means just that. It means generating profits—not problems. It means installing a proven, loan-related insurance program that can protect your en tire loan portfolio. It means a computerized claims system that settles your customers’ claims nearly 50% faster than the industry average. It means a “BETTER WW DESK” that puts solutions to complicated rate calculations and approvals for overlimit loan applications, just a quick, toll-free phone call away. It means training your loan officers and adminis trative people to make them more productive and professional. And it means that w e take care of the paperwork so that y o u ’re free to take care of your customers. And that’s what banking’s all about. Right? We don’t have the answer to headaches caused by the common cold. But if you’re looking for a remedy to headaches caused by the common credit insurance program, call “Am erica’s tt1 Credit Insurance Service Organization.’’ North Central Life Insurance Company NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 64139, ST PAUL, MN 55164 In Minnesota Call 800-792-1030, all other states 800-328-9117. Protection all ways https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W eKnowlhem y To Greener Futures. Today’s financial world can be a lonely place for a banker. And now more than ever, it takes a strong financial leader to help you make the most of your chosen path. •At Norwest Banks, we have the experience to®keep you moving in the right direction. We’ve strengthened our commitment to correspondent banking. And when you call on Norwest, we make that commitment work Jor you. We can provide the service you need to serve your marketplace—no matter how big or how small. So whether you need bank acquisition financing, data processing, cash letter services, or investment alternatives, we’ll work with you to find the best solutions. Talk to us today about our full line of services. When it comes to correspondent banking, we know the way ■ We Know The Way. We Are Norwest. " ‘ " N O ffW E S T B A N K S Members FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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