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om Tombstones

to TV Spots—
A History of
Bank Promotion
Federal Reserve Bank of St. Louis

Program Prepares

Students for Ag

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
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.


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.


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


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.
Federal Reserve Bank of St. Louis

A d d re s s ___________________________________________
City, State, Z ip ____________________________________
Area Code/Telephone
Northwestern Banker, December, 1986


Farmers Mutual Hail
Elects New President

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.


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.




Mark Olson heads ABA

Minnesota banker succeeds Florida’s Don Senterfitt


“Tombstones” to TV spots

A history of bank promotion ideas



Ag banking careers

Community college program prepares students


ABA National Ag Conference

Exclusive report details role of politics in agriculture


Twin Cities
South Dakota
North Dakota


Nebraska NIBA
Convention Report
Des Moines
Index of Advertisers

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
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
It’s no secret why the
Plus System" network is the
choice of consumers when it
comes to obtaining cash
Federal Reserve Bank of St. Louis

throughout the United States,
Canada, Great Britain and
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
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.


Cole-Taylor Promotes 9 Executives
INE key executives within the
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
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
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
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/
Northwestern Banker, December, 1986
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
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


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
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

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.


of Kansas C ity, n.a.
Mem ber FDIC
Federal Reserve Bank of St. Louis


P.O. Box 226 Kansas City, Missouri 64141 (816) 556-7900



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
The appoint­
ment was an­
nounced by Rob­
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
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
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

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

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
the repayment of short-term debt.




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
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.

Federal Reserve Bank of St. Louis

R? Drovers Bank

of Chicago
47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000.

_______________________________________ A Cole-Tavlor Bank



Norwest Offers “Checkfree” Service
USINESS clients of Norwest
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
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.



4900 OAK



Northwestern Banker, December, 1986
Federal Reserve Bank of St. Louis






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.
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

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



Individual Assurance Company
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.


II we're not your
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
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
A proven commitment to extending

Northwestern Banker, December, 1986
Federal Reserve Bank of St. Louis

Participations that offer flexibility
and fast turnarounds.
Investment products and expertise
from the region's leading investment
International services that offer
access to First Interstate's worldwide
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
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
ARK W. OLSON was installed
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-
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
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


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
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

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
Federal Reserve Bank of St. Louis


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.


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1986


From “Tom bstones” to TV Spots:
A History of
Bank Promotion
Associate Editor

T THE turn of the century, banks considered ad­
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.

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.


BY 1913, financial advertising was a budding industry, as this
Northwestern Banker ad shows.

Northwestern Banker, December, 1986
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
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-


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
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
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


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
Ag Banking Careers
A N orthwestern B anker
interview with
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


Banker, December, 1986
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





Program of Study
80 W eeks
Second Semester

First Semester



Accounting 1 .................
English 1 .......................
Principles of Banking . .
Law & B anking.............
Personal Finance ........

Hr s.










Accounting 2 .................
Prin. of Economics 1. . .
Prin. of Marketing OR
Marketing Ag.
Products .......................
S alesm anship...............
Credit Administration .
S em inar.........................








Summer Session (8 Weeks)


On-the-Job Training

Third Semester - Consumer Credit Emphasis



D ata P rocessing ........
Intro, to Business . . . .
M anagem ent...............
Credit Files &
Bank F o r m s ...............
Insurance ...................

Hr s.










Third Semester - Agri-Banking Emphasis



M anagem ent...............
Agricultural Finance .
Credit Files &
Bank Forms ...............
Insurance ...................
Farm M anagem ent. . .
Animal S cience..........









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
Federal Reserve Bank of St. Louis






Fourth Semester - Consumer Credit Emphasis




Business M anagem ent.
Bank Management . . . .
Consumer C redit..........
Real E s t a t e ...................
S em inar.........................
Voc-Tech E lective........








Fourth Semester - Agri-Banking Emphasis




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........








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
(Turn to page 58, please)
Northwestern Banker, December, 1986


Are you thinking about providing
customers with additional bank services?


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!




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!


1- 800- 247-0940
OUTSIDE IOWA 1- 800 - 553-8018

R.W.A. Financial Services, Inc. 2224 E. 12th St. Box 3189
Davenport, Iowa 52808
Federal Reserve Bank of St. Louis



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








ANKERS attending the 1986 National Agricul­
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
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


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
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
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







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%.
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
The “Chapter 12” concurrent session drew another
(Turn to page 45, please)
Northwestern Banker, December, 1986


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.
Phone: (309) 655-5423

Northwestern Banker, December, 1986
Federal Reserve Bank of St. Louis

301 S. W. Adams • Peoria, Illinois 61631
WATS LINE 1-800-322-2212

Member FDIC

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.
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.
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
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
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1986


Illinois News

Named in Rockford
Douglas R. Hancock has been
named assistant vice president at
Colonial, Rock­
He will be in
charge of the in­
stallm ent loan
department. He
was previously
banking officer
B ank,
N .A .,
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
* * *
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
dent and admin­
istra to r of a
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
Decimus Corporation in Elk Grove Bank of EdgeVillage, a nationwide supplier of water.
data processing services to financial
Prior to join­
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,
chase from time to time up to $3.5 where he also
million of its own Class A common served as a com­
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
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

Banker, December, 1986
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
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
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.


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
Bank Building Corporation of St.
Louis, Mo. will design and build the
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

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



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.
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


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
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



Randy Eiynk has been added as
real estate mortgage lender at the
bank. He was previously associated
with Zapp Abstract and Title Com­

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
Federal Reserve Bank of St. Louis


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 ­
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
Joseph M. Ulrey, III has been pro
Banker, December, 1986
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.



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










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
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.


B A N K .




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

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

Appointed in Bloomington



as an assistant vice president in the
national central division, had been
an assistant vice president in the na­
tional west division since 1983.
* * *



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
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

Banker, December, 1986
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

A.L. Maxson has been appointed
to the board of MetroBank Bloom­
ington—Minneapolis—Airport. He
is vice president for Northwest
(Continued from page 27)
consists of 33 member banks with
75 service locations throughout Wis­

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.









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
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
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
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
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
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
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

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




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
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
He has more than four years lend- the NDBA office.

Northwestern Banker, December, 1986
Federal Reserve Bank of St. Louis

FBS Appoints Two


Two staff appointments have
been made at the North Dakota
Region for First Bank System,
Joni B. Bertel and Thomas K. m
Persson have been named regional
credit analysts for First Bank Sys­
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
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

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.




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
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.
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,

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

Norwest Bank Billings has named
two new members to its board of
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
Most recently,
she served as
NABW Elects Director
tr u s t o ffice r
Barbara Bruskotter, vice presi­ w ith N orw est
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
Prior to this
p o sitio n , Mr.
Niedling served as executive vice
president of First Interstate Bank of
Lea County in Hobbs, N.M. He has
Federal Reserve Bank of St. Louis

over nine years of lending experi­

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

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

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


Central Bancorp. Announces
Senior Executive Posts
A number of executives have been
elected to senior management posi­
tions at Central
The positions re­
flect the new cor­
porate structure
announced in
D on ald
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
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


trust officer and senior vice presi­
dent, trust group, Central Bank of
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
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

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.


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.


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

Northwestern Banker, December, 1986
Federal Reserve Bank of St. Louis




Elected vice president for the
trust services strategic business
unit is Donald J. Horst. With 25
years of banking experience, he is



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,
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
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
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;
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
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

(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.
Federal Reserve Bank of St. Louis


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
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
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


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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.

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Northwestern Banker. December. 1986
Federal Reserve Bank of St. Louis

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
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
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.
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
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


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
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

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
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.

Banker, December, 1986
Federal Reserve Bank of St. Louis

i t



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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1986


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
Associate Editor
E B R A S K A ’S Independent
Bankers gathered in Lincoln
last month for their 5th annual con­
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
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.

Banker, December, 1986
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
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—


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.


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
For more information, contact
Jan Primus at the school at (608)

Talk To The Municipal
Bond Professionals

William March

Robert E. Rob


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


Appointed in Grand Island
Federal Reserve Bank of St. Louis

Micky Krupinsky

John Trecek



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


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

Annual Correspondent Bank
Conference Held in Lincoln
Associate Publisher
OR THOSE who attended the
FirsTier Bank Lincoln Corres­
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
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
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
“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
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





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.”

(Continued from page 23)



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
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
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
Federal Reserve Bank of St. Louis


New Albia Bank to Open in January











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
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
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

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


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
Associate Publisher
ORE than 100 bankers from
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
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
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
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
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
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

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1986


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
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

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

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

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
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


There are farmers’
insurance companies
and firemen’s insurance
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
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.
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.
Northwestern Banker, December, 1986


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
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



representative and correspondent
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.’’
(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
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
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
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.
“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
Mr. Rice’s term was to expire
January 31, 1990.




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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
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environments throughout Iowa. And no
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Waterloo, IA 50704 • (319) 234-6641

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
j . d . McGOWAN
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
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
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

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
your county, and every county
Digitized for
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.

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



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
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
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.
Federal Reserve Bank of St. Louis


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
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



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 ..........
ship will ensure continued commit­ Bankers Trust Company., Des M oines. . .
ment of financial resources and con­ Carpenters Pension Fund of Illinois
tinued economic support for the fu­ Commercial National Bank, P e o ria ........
Bank, C hicago.............................
ture of the greater Grundy Center Drovers
First Interstate Bank, D enver...................
First Interstate Bank, Des M o in es..........
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 .........................
zation of present buildings will take IAC Group, Kansas C ity.............................
Bankers Insurance & Services, Inc..
place during this time. Plans call for Iowa
Iowa Public Records Search, Inc..............
continued use of both bank build­ Marquette Bank, Minneapolis .................
National Bank, Cedar Rapids
ings in Grundy Center and Hawk- Merchants
Municipal Bond Underwriters, Omaha . .
eye’s Holland office.
National Bank of Commerce, Lincoln . . .
Officials at both banks are eager North Central Life Co., St. Paul.................
Norwest Corporation, M inneapolis........
to answer questions depositors may Office Concepts, Ltd., W aterloo...............
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 . . .
provisions for dual FDIC coverages United Missouri Bank, Kansas C ity ........

(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

Banker, December, 1986
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
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...

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thousands of banks, have taught us the value of
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bank’s loan officer for what they do best—banking.
We call our approach, “A BETTER WAV”. And it
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It means generating profits—not problems.
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It means a “BETTER WW DESK” that puts solutions
to complicated rate calculations and approvals for
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It means training your loan officers and adminis­
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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
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“Am erica’s tt1 Credit Insurance Service Organization.’’

North Central Life Insurance Company

In Minnesota Call 800-792-1030, all other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

W eKnowlhem y
To Greener Futures.
Today’s financial world can be a lonely
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Talk to us today about our full line of
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We Know The Way. We Are Norwest.
" ‘ " N O ffW E S T B A N K S
Members FDIC
Federal Reserve Bank of St. Louis